True Gold Mining Inc.
TSX VENTURE : TGM

True Gold Mining Inc.

June 03, 2013 07:00 ET

True Gold Intersects 1.01 g/t Gold Over 62.0 Metres in Drilling 600 Metres North of Kao

New assay results reveal potential to expand the Karma Project's largest deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 3, 2013) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to announce that new assay results returned encouraging gold intersections 600 metres north of the Karma Gold Project's ("Karma Project") Kao deposit ("Kao") and highlight the potential to expand the deposit, which currently contains a 360,501-ounce Indicated resource averaging 0.897 g/t gold in 12.5 million tonnes1 of oxide material.

"We are very excited by these results as they reveal the potential to support the Company's key overall objective to add near-surface gold mineralization in close proximity to the Karma Project's five gold deposits," said Dwayne Melrose, President & CEO, True Gold. "Gold mineralization identified through this drilling is strikingly similar in grade and width of zones compared to mineralization at the Kao deposit."

The reverse circulation ("RC") drill campaign around True Gold's 100%-owned Kao deposit is aimed at identifying additional gold mineralization along north and west-northwest structural corridors. Drilling on an east-west cross-section of holes spaced 150 metres apart, approximately 600 metres north of the main Kao resource area, returned promising widths and grades of gold mineralization similar to the Kao deposit along with narrower intervals of higher grade mineralization (in six holes representing 700 metres across strike).

Gold mineralization remains open to the north and northwest, and both areas will be tested through upcoming drill programs. This drilling potentially adds an additional 40% of the strike length of the Kao deposit, which is currently 1,400 metres along strike by 900 metres in width.

Assay highlights from recent drilling include:

  • 1.01 g/t Au over 62.0 metres, in KAO-13-RC-406, including
    • 1.39 g/t Au over 38.0 metres, including
    • 2.04 g/t Au over 12.0 metres
  • 0.76 g/t Au over 24.0 metres, in KAO-13-RC-395 including
    • 4.35 g/t Au over 2.0 metres
  • 0.60 g/t Au over 16.0 metres, in KAO-13-RC-397, including
    • 1.01 g/t Au over 6.0 metres
  • 34.20 g/t Au over 2.0 metres, in KAO-13-RC-402
  • 0.36 g/t Au over 14.0 metres, in KAO-13-RC-404
  • 0.38 g/t Au over 30.0 metres, in KAO-13-RC-405
  • 0.82 g/t Au over 14.0 metres, in KAO-13-RC-407

True Gold has completed 2,839 metres of RC drilling in 20 holes to date at the Kao extension as part of an initial 7,500-metre drilling program for 2013 on the Karma Project. With the initial 2013 program at Kao largely concluded, True Gold plans to invest $400,000 to complete another 4,200 metres of drilling in an effort to expand the footprint of Kao mineralization up to 2.4 kilometres to the north, a site of strong historical soil and rock geochemical results. The 1.8-kilometre zone between the newly released drill holes 600 metres north of Kao and the area of anomalous soil and rock geochemistry contains no previous drilling or sampling results, due to excessive overburden.

To review a drill map for the Kao extension and future drilling around Kao, please click on this link: http://www.truegoldmining.com/sites/default/files/Map1320.pdf

For a full table of recent results related to gold mineralization, please click on this link: http://www.truegoldmining.com/sites/default/files/DrillResults1320.pdf

Gold mineralization at Kao is entirely hosted within granodiorite and takes the form of up to eight parallel, shallow east-dipping zones ranging from three to 50 metres thick, and a set of steeper west-northwest trending structures controlling higher grade mineralization.

The 856-square-kilometre Karma Project is located in Burkina Faso, West Africa, and includes five closely spaced deposits - Kao, Goulagou I and Goulagou II, Rambo and Nami - with a proposed central processing facility. The Karma Project is currently undergoing a feasibility study, which entails the development of a fully engineered construction and operating plan. It will include considerations for social management planning, environment, geotechnical engineering, hydro-geology, water management, metallurgical testing, process design, and mine planning.

The Company has not made a production decision and the Company's strategic plan to develop a stand-alone heap leach operation at the Karma Project is subject to the results of its feasibility study, which is currently underway. Further, if and when the Company makes any production decision, it will disclose the basis of such decision in accordance with the requirements of NI 43-101. See True Gold news release dated March 27, 2013 titled, "Karma Project Update: Activities Related to Feasibility Study Progressing."

(1) See the Company's news release dated October 3, 2012 and independent NI 43-101-compliant Technical Report titled "Technical Report and Updated Resource Estimate on the Karma Project, Burkina Faso, West Africa," dated effective October 1, 2012, filed on SEDAR (www.sedar.com) November 7, 2012.

Ian Cunningham-Dunlop, P. Eng., is the Company's Senior Vice President Exploration and designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and verified that the information contained in this release is accurate and approves of the written disclosure of same. All holes were drilled at 090, 225 or 270 degrees azimuth, with dips of either -60 or -90 degrees, and to an average depth of 150 metres. True widths are estimated to be 70 to 90% of the intersected widths. Samples were assayed by ALS Chemex in Ouagadougou, Burkina Faso, West Africa. ALS Global laboratory operations are covered by ISO 9001:2008 certification. Assays were by Fire Assay with AAS finish and repeats of all AAS assays over 5.0 g/t by Fire Assay with gravimetric finish. Control samples (accredited standards, blanks and duplicate samples at the preparation stage) were inserted on a regular basis every ten samples. Results were monitored on receipt of assays.

About True Gold

True Gold Mining Inc. is where gold comes to life. We are committed to growing a successful gold exploration, development and production company, by focusing on projects with low costs, low technical risks and solid economics. The Company's board, management and technical teams have proven track records in gold exploration, development, operations and production worldwide.

Additional information about the Company and its activities may be found on the Company's website at www.truegoldmining.com and under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD

Dwayne Melrose, President & CEO

Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of Canadian securities legislation. Such forward-looking statements are based on certain assumptions and are subject to risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, with respect to statements regarding the potential increase to deposits hosting mineral resources, the assumptions set forth in this news release and in the Company's news release of October 3, 2012, March 27, 2013 and risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration and development results or the results of the Feasibility Study on the Karma Project will not be consistent with the Company's expectations, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, labour disputes, the potential for delays in exploration and permitting activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, political risk and other risks and uncertainties, including those described under Risk Factors in each management discussion and analysis and in the Company's annual information form which are available under the Company's profile at www.sedar.com. Forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Burkina Faso will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

This news release may use the terms "measured", "indicated" and "inferred" as these terms are defined under Canada's National Instrument 43-101. U.S. Investors are advised that, while such terms are recognized and required by Canadian regulations, they are not recognized by the United States Securities and Exchange Commission ("SEC") and may not be comparable to similar information for United States mining or exploration companies. As such, certain information contained on this news release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC. U.S. investors are cautioned not to assume that any part or all of the mineral deposits described in these categories will ever be converted into proven or probable reserves, as defined in the SEC's Industry Guide No. 7.

Neither 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.

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