Northern Lion Gold Corp.

Northern Lion Gold Corp.

May 05, 2011 09:15 ET

Northern Lion Receives Final Assay Results From First Hole at St. Nik Project, Republic of Cyprus-4.5 Au g/t, 19.08 Ag g/t and 1.04% Cu Over 28.6 Metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) - Northern Lion Gold Corp. (TSX VENTURE:NL)(FRANKFURT:N3E) (the "Company" or "Northern Lion") wishes to announce the receipt of the final assay results from the first hole to test the St. Nikolas Project in the Republic of Cyprus. The St. Nikolas project forms part of the Company's existing land package of 20 permits covering over 56km2.

This near surface gold, copper and silver mineralization over 28.6 metres starts at 10 metres below surface and includes a higher grade zone of 5.8 grams per tonne ("g/t") gold, 26.8 g/t silver and 1.5% copper over 12.3 metres. The weighted average gold grade of 4.5 g/t also includes a Company assigned gold, copper and silver grade of zero g/t from 31.9 to 33.4 metres due to the intersection of a 1.5 metre wide Roman era cavity. As the overlying and underlying samples are strongly mineralized in gold, silver and copper, the un-mined grade would likely have been substantially higher. The mineralized interval consists of both oxidized and fresh sulphide material which has locally been strongly silicified.

The majority of the recovered massive sulphide material occurs within this interval, with the overlying mineralization consisting of a zone of stockwork veining and brecciation. Both the massive sulphides and the oxidized stockwork zones have been identified in the flanking holes 11SN03 and 05, to the north and south.

The hole was drilled at an inclination of -55 degrees and an azimuth of 274 degrees. The true thickness is unknown at this time; however the pillow lava host rocks in the area are generally sub-horizontal.

The following table provides the individual assays through the mineralized zone.

Hole #FromToIntervalAu
ppm = parts per million

John Lando comments, "We are very encouraged by the results of the first hole at St Nikolas as they demonstrate the gold potential of the Cyprus VMS deposits along with significant copper and silver values."

The mineralization within the St. Nikolas project is hosted by Pillow Lavas, near the contact with the overlying sediments. Previous work by Noranda in 1978 and BRGM in 1984, located a massive sulphide body of unknown dimensions consisting dominantly of chalcocite, chalcopyrite, sphalerite and pyrite, containing significant precious metal values. The historical data is incomplete and no drill chips remain; however the Noranda drilling reported up to 6 g/t gold along with 4.82% copper over a five metre interval, and in a separate hole up to 67 g/t silver over one metre.

The St. Nikolas project was entered into on the basis of historical information derived from the ongoing evaluation of data acquired from the Geological Survey of Cyprus, and information supplied by the Company's consultants in Cyprus. A small amount of mining was carried out within the property in the 1950's by the Hellenic Mining Company, when it reportedly extracted 3,500 tonnes of ore grading 1.5% copper from an adit near the present road. A series of gossanous outcrops are exposed over an area of 300 by 100 metres. The post mineralization sedimentary cover is pervasive in the western portion of the permit area resulting in the poor exposure of the underlying volcanic sequence.

Seven holes totaling 505 metres have been completed at St Nikolas, covering a strike length of over 200 metres in a northwesterly direction. All holes have now been sampled and the Company is awaiting final assays.


The history of mineral exploitation (copper, gold and other metals) on the island of Cyprus dates back to the Bronze Age, approximately 5,000 years ago. The Phoenicians were the first to process copper on the island, followed by the Romans and this activity has continued to the present day. The evidence of this long history of mining is readily observed in the abundant ancient surface and underground workings along with extensive slag heaps. Mineral exploration in the Republic of Cyprus has been at a very low level over the last few decades, and management believes that there is a high probability of additional massive sulphide bodies being present that did not outcrop, as nearly all of the known deposits did.

The metal deposits of Cyprus are dominantly copper-bearing volcanogenic hosted massive sulphide "VHMS" deposits. These deposits are hosted within the pillow lava sequence of the Troodos Ophiolite Complex. The pillow lava sequence is divided into Upper and Lower Pillow Lavas, with the majority of massive sulphide bodies located along the contact between pillow lava sequences, and the remainder between the Lower Pillow Lavas and the Basal Group. All of the Company's applications overlie these important contacts. Gold mineralization associated with the massive sulphide ores has not historically been evaluated.

Quality Control and Assurance

The Company's field activities in Cyprus are under the direction of Jim Chapman, P.Geo. (BC), consultant to the Company and "qualified person", as defined by National Instrument 43-101, who is responsible for the technical content of this news release.

About Northern Lion

Northern Lion Gold Corp. is a Canadian mineral exploration company, listed on the TSX Venture Exchange and the Frankfurt Exchange. The Company is committed to building a strong portfolio of projects within mining-friendly and infrastructure-rich areas of Europe.

In addition to its exploration permits in Cyprus, the Company holds a 100% interest in its Moura Licence in Portugal and a 100% interest in one project in the historic Bergslagen mining district of southern Sweden.


John Lando, President

This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and, except as required by law, the Company is under no obligation to update or alter any forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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