NV Gold Corporation
TSX VENTURE : NVX

May 12, 2011 09:00 ET

NV Gold Reports Increase in Gold Resource at Afgan-Kobeh

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2011) - NV Gold Corporation (TSX VENTURE:NVX) (the "Company") is pleased to report the positive results of its new NI 43-101 compliant resource estimate on its 100 percent owned Afgan-Kobeh gold project located in Eureka County, Nevada. The updated resource includes the results from the Company's 25-hole, 2,355 metre reverse-circulation drill program completed in 2010 (Results released November 23, 2010). The estimate was prepared by Mine Development Associates ("MDA"), of Reno, Nevada, an independent consultant for the Company.

Highlights:

By comparison to the previous resource estimate at the Property completed by MDA as of March, 2004, the new resource estimates reflects:

  • a 32% increase in Indicated gold resource to 66,000 oz (3,206,000 tons @ 0.021 oz/ton) (previously 50,000 oz (1.850,000 tons @ 0.027 oz/ton));
  • a 62% increase in Inferred gold resource to 55,000 oz (3,972,000 tons @ 0.014 oz/ton) (previously 34,000 oz (1.290,000 tons @ 0.026 oz/ton)).

These increases arise from a combination of an increase in resources from the positive drilling results and a decrease in the cut-off grade to 0.006 oz/ton from the 0.01 oz/ton used in the previous resource estimate.

Estimated resources at various cut-off grades are shown in the following tables.

Indicated Resources
Tonsoz Au/tonTotal oz AuCut-off (oz Au/ton)
3,687,0000.01968,0000.005
3,206,0000.02166,0000.006
2,537,0000.02462,0000.008
2,152,0000.02758,0000.010
Inferred Resources
Tonsoz Au/tonTotal oz AuCut-off (oz Au/ton)
5,207,0000.01261,0000.005
3,972,0000.01455,0000.006
2,343,0000.01945,0000.008
1,677,0000.02339,0000.010
Notes:
  1. 0.006 oz Au/ton cut-off is designed to capture mineralization potentially available to open pit extraction and heap leach processing.
  2. The effective date of the Afgan-Kobeh gold resources is May 1, 2011.
  3. The reportable resources are highlighted in bold. Modeled mineralization is tabulated at additional cut-offs to provide grade-distribution information, as well as to account for conditions other than those envisioned by the reportable cut-off.

The Company plans to complete a 30-35 hole, 2,800 meter drill program designed to increase and upgrade the resource, as well as initiate a preliminary economic assessment (PEA) at Afgan-Kobeh.

"These results support our belief that Afgan-Kobeh could be developed into a mine," commented John Watson, President and CEO of NV Gold Corporation. "With the current gold price, the near-surface location of the deposit and the oxide geology of the property, we think the project has a strong chance of success."

Mineral resources, which are not mineral reserves, do not have demonstrated economic viability.

The Afgan-Kobeh mineral resources were modeled and estimated by MDA by evaluating the drill data statistically, utilizing geologic interpretations provided by the Company to interpret gold mineral domains on cross sections spaced at 100-foot intervals across the extents of the modeled mineralization, rectifying the mineral-domain interpretations on long sections spaced at 20-foot intervals, analyzing the modeled mineralization geostatistically to aid in the establishment of estimation parameters, and interpolating grades into a three-dimensional block model.

Michael M Gustin of MDA is a qualified person under National Instrument 43-101 and has approved the technical information in this release.

On behalf of the Board of Directors,

John E. Watson, President and CEO

For further information, visit the Company's website at www.nvgoldcorp.com.

Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including a resource estimate and statements regarding the resource at the Afgan/Kobeh project being amenable to heap-leaching, the expansion and upgrading of existing resources, the initiation of a preliminary economic assessment by the Company and the potential of the Afgan/Kobeh project to host an open pit gold operation. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include the risk that cyanidation may not achieve acceptable recovery rates on other parts of the resource or that these recovery rates may not be able to be replicated in a commercial scale operation, that additional exploration may not expand or upgrade the resource, that the Company may not pursue a preliminary economic assessment due to disappointing results or financial conditions, that the anticipated economics of the Afgan/Kobeh project will not be sufficiently profitable to warrant commencing production, the uncertainty of continuity of observed mineralization assumed in mineral resource estimates, particularly inferred resources, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.

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 and accuracy of this release.

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