TORONTO, ONTARIO--(Marketwire - Jan 31, 2013) - NORTHERN GOLD MINING INC. (TSX VENTURE:NGM) ("Northern Gold" or the "Company") is pleased to announce that it has entered into two mining claim acquisition agreements pursuant to which Northern Gold can acquire a 100% interest in a significant mining claim located in Garrison Township, Ontario (the "Garrison Claim") and an 80% interest in one lease ("CLM352") comprised of a block of eleven (11) mining claims located in Harker Township, Ontario. The acquisition of the Garrison Claim and CLM352 increases Northern Gold''s expanding land package to a total of approximately 50,175 acres in the Larder Lake Mining District.
Pursuant to the terms of a mining claim acquisition agreement between the Company and Jacques Robert and Randall Salo (collectively, the "Vendors"), Northern Gold can acquire the Garrison Claim in exchange for:
- CDN$15,000 payable to the Vendors;
- 20,000 common shares of Northern Gold issuable to the Vendors; and
- a one percent (1%) net smelter return royalty ("NSR") from production on the Garrison Claim, to be granted to Vendors. Northern Gold shall have the right and option to purchase one-half of one percent (0.5%) of the NSR for the amount of $250,000.
In addition, pursuant to the terms of a mining claim acquisition agreement between Northern Gold and Plato Gold Corp. ("Plato"), the Company can acquire an 80% interest CLM352 in exchange for:
- CDN$200,000 payable to Plato; and
- 250,000 common shares of Northern Gold issuable to Plato.
Following completion of the transaction, Plato will retain a 20% participating interest in CLM352. If at any time, either party''s interest is reduced to 10% or less, such interest shall be surrendered and the forfeiting party shall be granted a one percent (1%) NSR from production on CLM352. The non-forfeiting party shall have the right and option to purchase the entire 1% NSR for $1,000,000.
Both transactions are subject to receipt of all approvals required by the parties, including that of the TSX Venture Exchange (the "TSXV").
Northern Gold also announces today the results from 23 diamond drill holes totaling 9,179 metres from the 2012 surface diamond drilling program on its large tonnage, low-grade Garrcon Gold Deposit on the Golden Bear Project, 100 km east of Timmins, Ontario. Three of the 23 drill holes reported were hole extensions totaling 556 metres.
Garrcon Deposit Drilling Highlights include:
- 0.81 g/t Au over 83.0 m (101 to 184 m)
- 2.07 g/t Au over 66.0 m (556 to 622 m)
- incl. 6.91 g/t Au over 5.0 m (598 to 603 m)
- 1.08 g/t Au over 39.0 m (277 to 316 m)
Hole GAR-12-205, collared on line 12+25, is a vertical hole with a depth of 642 metres. This infill hole intersected a 66-metre interval grading 2.07 g/t Au in Temiskaming meta-sediments of the Shaft Zone starting at a depth of 556 metres. This new mineralized interval is 50 metres west of hole GAR-12-204 (1.54 g/t Au over 111 m starting at 517 m, released May 9, 2012).
Hole GAR-12-230, collared on line 7+50W, is also a vertical infill hole with a depth of 558 metres. It intersected a 39-metre interval grading 1.08 g/t Au in the Green Zone starting at a depth of 277 metres. This mineralized interval coincides closely with the mineralization encountered in hole GAR-11-162 (0.36 g/t Au over 54 m starting at the down hole depth of 342 m (vertical depth of 242 m, released March 2, 2012).
Table 1 - Garrcon Assay Results * - These results are significant drill assays from the 20 drill holes and 3 drill hole extensions on the Garrcon Deposit. All holes are infill with the exception of drill holes GAR-12-240, 241, 242, and 243 which are step-out holes east of the Garrcon Deposit resource outline.
|*Mineralization occurs as multi-directional stockwork veining, therefore all reported assay intervals are downhole lengths and not true widths. High grade assays are cut to 34.0 g/t for comparison purposes.|
|Table 2 - Location and Initial Orientation of Drill Holes |
|Section Line |
|Section Line |
|GAR-12-46X||13+20 W||9+31 N||326.8||-45.5|
|GAR-12-131X||5+99 W||10+40 N||157.5||-45.6|
|GAR-12-156||10+26 W||8+99 N||118.6||-88.2|
|GAR-12-158||10+75 W||9+28 N||154.7||-75.7|
|GAR-12-159||11+27 W||10+28 N||237.4||-89.3|
|GAR-12-171X||7+96 W||11+09 N||171.9||-88.8|
|GAR-12-186||9+49 W||9+63 N||338.1||-44.1|
|GAR-12-202||10+25 W||9+99 N||340.0||-79.1|
|GAR-12-205||12+25 W||9+22 N||330.9||-89.2|
|GAR-12-216||15+25 W||10+88 N||349.1||-68.3|
|GAR-12-230||7+50 W||11+42 N||326.4||-88.5|
|GAR-12-231||6+96 W||11+46 N||129.4||-88.4|
|GAR-12-232||9+00 W||9+70 N||163.7||-71.6|
|GAR-12-233||8+51 W||9+67 N||163.4||-69.1|
|GAR-12-234||14+25 W||10+50 N||340.0||-70.0|
|GAR-12-235||14+25 W||9+99 N||340.0||-70.0|
|GAR-12-236||11+26 W||9+39 N||160.0||-75.0|
|GAR-12-238||6+00 W||11+44 N||0.0||-90.0|
|GAR-12-239||5+50 W||11+11 N||0.0||-90.0|
|GAR-12-240**||0+01 W||8+40 N||340.0||-45.0|
|GAR-12-241**||0+00 W||7+90 N||340.0||-45.0|
|GAR-12-242**||0+50 E||7+90 N||340.0||-45.0|
|GAR-12-243**||0+50 E||7+90 N||160.0||-45.0|
|**Drill holes listed are infill holes with the exception of these step-out holes|
Updated Garrcon Deposit drilling cross sections and a drill plan will be posted on the Company''s website later this week at: http://www.northerngold.ca/files/Garrcon-Cross-Sections.pdf.
Quality Assurance/Quality Control
Northern Gold has implemented comprehensive, industry standard quality-assurance, quality-control protocols for diamond drilling, core recovery, handling, sampling, shipping and assaying. Details of these best practice principals can be viewed on the Company''s website at: http://www.northerngold.ca/QA-QC.php.
The technical aspects of this press release have been reviewed and approved by Gary Nassif, M.Sc., P.Geo., Manager Exploration Services of Northern Gold Mining Inc., and the "Qualified Person" as defined by National Instrument 43-101 for this project.
About Northern Gold
Northern Gold is a TSX Venture Exchange-listed gold company based in Toronto, Ontario. The Company''s main focus is the exploration and development of its prospective mineral properties in the Timmins Gold Camp in northeastern Ontario. Led by an experienced management team, Northern Gold has a portfolio of advanced exploration projects, including the Jonpol and Garrcon Deposits and the newly acquired Buffonta Property. The recent acquisition of the Harker-Holloway Gold Property and proposed amalgamation with Victory Gold Mines Inc. add to the Company''s regional consolidation strategy along the Destor-Porcupine Fault Zone.
CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, Northern Gold''s objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in Northern Gold''s public documents filed on SEDAR. Although Northern Gold believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Northern Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.