VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 31, 2011) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES
PNG Gold Corporation ("PNG Gold" or the "Company") (TSX VENTURE:PGK) announces it has met the exploration expenditure requirements under its option agreement with New Guinea Gold Corporation ("NGG"), and has notified NGG of its desire to exercise its option to acquire the remaining interest it does not already own in Exploration Licenses (EL) 1091 and 1069, the Imwauna and Sehulea properties, respectively. Both properties are on Normanby Island, Milne Bay Province, Papua New Guinea.
PNG Gold currently owns a 50% interest in both properties in accordance with the terms of a purchase and sale agreement between the two companies announced April 20, 2010 (see NGG News Release). The option agreement gives PNG Gold the right to earn the remaining 50% interest in the properties and requires the Company to spend $Cdn 8,000,000 in exploration and related expenditures by August 20, 2013. Through its ongoing drilling program on the Imwauna prospect and other exploration and development activities on both properties, the Company has met its total expenditure obligation almost two years ahead of schedule.
Dick Whittington, President and CEO of PNG Gold, says: "This is a major milestone for the Company and the fact that we have met the expenditure requirement two years ahead of schedule highlights our enthusiasm for the exploration potential of both the Imwauna and Sehulea properties. We look forward to maximising the potential of both properties with our aggressive exploration program. I would like to thank New Guinea Gold for their support in helping us achieve our objective."
About EL1091 and EL1069
EL1091 hosts the Imwauna gold deposit which is the focus of the Company's continuing drill program (see PNG Gold News Release October 13, 2011). The license is 68 km2 in area and is located near the centre of Normanby Island, in southeastern Papua New Guinea. The property also encompasses a number of other vein-type gold prospects, notably Kela's prospect which the Company plans to drill later this year.
The Sehulea property, EL1069, covers 30 km2 in two geographically separate blocks on Normanby Island. The larger block is 10 km to the northeast of the Imwauna property on the north coast of the island. It hosts the Weioko gold prospect which has been drilled by the previous operator, NGG. PNG Gold is currently mobilizing a drill to the property to undertake a minimum 4 hole program.
Qualified Person
Mr. Colin McKenzie, P.Geo, the Chief Operating Officer of the Company, is the qualified person who prepared the technical information contained in this news release in accordance with National Instrument 43-101.
About PNG Gold Corporation
PNG Gold Corporation is an exploration company with an advanced stage drilling program in Papua New Guinea. PNG Gold holds a 50% interest in the Imwauna and Sehulea properties on Normanby Island, Milne Bay Province, Papua New Guinea, and has earned its option to acquire the remaining 50%. The Company expects the transfer of the remaining 50% interest will be completed expeditiously, after which it will be the sole owner of both properties. PNG Gold trades on the TSX Venture Exchange under the symbol PGK. PNG Gold's mission is to become the premier exploration and development company in Papua New Guinea.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington, President & CEO
No regulatory authority has approved or disapproved the information contained in this news release.
Forward-Looking Statements
Certain information set forth in this news release contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements relate to matters such as results of exploration and development of the Normanby Property and completion of financing and are subject to numerous risks and uncertainties, certain of which are beyond the control of PNG Gold, including, but not limited to, the impact of general economic conditions, industry conditions, financial market conditions, dependence upon regulatory and shareholder approvals, and the uncertainty of completing intended financing and obtaining additional financing. Exploration of mineral properties is subject to the inherent risk that it may not result in commercial discovery. Readers are cautioned that the assumptions used in the preparation of forward-looking statements, although considered reasonable at the time of preparation, may prove to be incorrect and, as such, undue reliance should not be placed on forward-looking statements. PNG Gold expressly disclaims any obligation to update forward-looking statements contained herein except as required by applicable law.
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 release.
Contact Information:
Dick Whittington
President and CEO
(604) 669-4899
www.pnggold.com