NioGold Mining Shareholder Update
January 6, 2014 (Source: Accesswire) — NioGold Mining Corporation (TSX-V: NOX) (OTCQX: NOXGF) (“NioGold”) is pleased to provide the following update to shareholders.
2013 was a difficult year for junior gold companies, but NioGold has persevered and is well positioned to capitalize on the positive developments of the past few years. Our flagship project, the Marban Block Property, hosts no less than three identified deposits, namely the Marban, Kierens and Norlartic deposits, and is once again 100% owned and controlled by NioGold.
The Marban Block has seen a considerable investment of $11.6 million in exploration expenditures over the past three years, solely funded by a prior joint venture partner and at no cost to NioGold. This drilling has grown the original 2010 resource estimate to the current 1.53 million oz gold (32.1 million tonnes at 1.48 g/t), a 255% increase, in the measured and indicated resource categories, plus an additional 599,000 oz gold (16.5 million tonnes at 1.13 g/t), a 165% increase, in the inferred resource category (see news release dated July 23, 2013). During this period, NioGold also completed preliminary metallurgical testing on the Marban deposit with very encouraging recoveries of up to 97% (see news release dated April 24, 2012).
In March 2013 NioGold completed a $2,549,700 flow-through financing at a price of $0.45 per share, of which approximately $1,300,000 remains to be spent in 2014, providing a ready supply of funds for further exploration. NioGold is currently planning an exploration drilling program covering approximately 10,000 m, with the aim of upgrading the resource estimate on the Marban Block and targeting promising showings on the Malartic Block property (notably around the former Malartic Hygrade mine) and the Malartic H property. As at the end of the financial year (August 31, 2013), NioGold had working capital of approximately $4.2 million including approximately $1.4 million in flow-through funds to be expended.
In 2013, infill drilling on the inferred resource of the Kierens and Norlartic deposits and in the gap between them indicated a strong potential at Kierens for extension at depth, and a potential to build some lenses of resources near the underground drifts connecting the former Kierens and Norlartic mines. Drilling in the gap between the Marban and Norlartic deposits further extended the Norlartic trend over a strike of 1200 m, and appears to confirm a possible convergence between the Norlartic zone and the hanging wall of the Marban deposit – which could potentially have the added benefit of reducing the amount of waste rock in a possible open-pit design for the Marban deposit. In all, the 2013 drill results have identified several very promising areas with the potential to generate and grow new resources (see news release dated October 8, 2013).
NioGold also continues to be on the lookout for quality acquisitions. In 2012, the Company acquired a number of claims hosting the past producing Malartic Hygrade mine, as a contiguous extension of our existing Malartic Block Property (see news release dated May 3, 2012). Recent re-sampling of 10 holes drilled by the previous owner returned strong results, with expected narrow high-grade values as well as unexpected wide low-grade intervals near surface, all less than 2km northwest of the Kierens deposit (see news release dated December 4, 2013).
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“I am very pleased with what we’ve accomplished,” said Michael Iverson, NioGold’s President and CEO. “Our work has revealed a strong potential for growth in all three deposits at the Marban Block Property, as well as the new-found gold showings on the adjacent Malartic Block Property. These opportunities in the Val-d’Or area are excellent – the area is dotted with current and historic producing mines and has a well developed infrastructure to go along with it. On behalf of NioGold, I would like to thank all of our shareholders for their support, and look forward to building shareholder value in a productive and prosperous new year.”
NioGold Mining Corporation – << On Canada’s Golden Highway >>
NioGold Mining Corporation is a mineral exploration company focused on gold. The Company’s flagship projects are located in the Cadillac – Malartic – Val-d’Or region of the prolific Abitibi gold mining district, Quebec. The Cadillac, Malartic and Val-d’Or mining camps have produced over 45 million ounces of gold since the 1930’s and presently encompasses six producing gold mines including Osisko Mining’s new Canadian Malartic operations. NioGold’s land holdings within the Abitibi presently cover 130km2 and encompass four former gold producers, namely the Norlartic, Kierens (First Canadian), Marban and Malartic Hygrade mines that collectively produced 640,000 ounces of gold.
NioGold’s experienced and qualified technical team are overseeing the advancement of these projects, targeting expansion of the resource base.
NioGold invites you to visit the company website at www.niogold.com.
For information on NioGold Mining Corporation contact:
Michael A. Iverson, Chairman & CEODale Paruk, Vice-President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release includes “forward looking statements”, as that term is defined in Section 27A of the Unites States Securities Act of 1933, as amended, and Section 21E of the United States Exchange Act of 1934, as amended, that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning the Company’s intentions, plans, estimates, expectations or beliefs regarding the future. Although the Company believes that any forward looking statements in this news release are reasonable, there can be no assurance that any such forward looking statements will prove to be accurate. The Company cautions readers that all forward looking statements, including without limitation those relating to the Company’s future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.
Any forward looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward looking statements. Except as required by law, the Company assumes no obligation to update any forward looking statements, whether as a result of new information, future events or otherwise.
CAUTIONARY NOTE TO U.S. INVESTORS
The United States Securities and Exchange Commission (the “SEC”) permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this news release, such as ‘measured resources’, ‘indicated resources’ and ‘inferred resources’, which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. The news release may contain information about adjacent properties on which we have no right to explore or mine. U.S. investors are cautioned that mineral deposits on adjacent properties may not be indicative of mineral deposits on our properties.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>