positive results from 13,834 metres (m) of diamond drilling, comprising 45 drill holes at the Cosmo Gold Mine ("Cosmo") located in the Northern Territory, Australia. These results are part of Newmarket's 2016 growth exploration program and include significant drill intercepts for the Sliver Lode and the newly discovered Redbelly and Taipan Lodes, all of which are adjacent to existing underground mine development. The results for the Sliver Lode strongly support the potential to extend Mineral Resources down-plunge from existing Mineral Reserves. Currently, three underground drill rigs are in operation at Cosmo to advance exploration programs.
Highlights and Key Drill Intercepts at Cosmo Gold Mine
-- Continued drilling of the Sliver Lode has returned high-grade intercepts
of 8.76 g/t Au over 7.55m (Estimated True Width "ETW" 6.8m) in hole
CE64062 and 3.61 g/t Au over 14.4m (ETW 12.4m) in hole CE64073. These
and other results strongly support the potential to extend SliverMineral Resources down-plunge. -- Discovery of the Redbelly Lode has returned significant drill intercepts
including 4.29 g/t Au over 11.8m (ETW 10.0m) in hole CE64064 and 5.18
g/t Au over 8.75m (ETW 6.8m) in hole CE64070. The new Redbelly gold
discovery is located only 25m from existing underground infrastructure
below the F1 Fault.
-- Discovery of the Taipan Lode has returned high-grade gold intercepts
including 6.23 g/t Au(1) over 21.45m (ETW 9.0m) in hole CE64083
(including 11.34 g/t Au(1) over 10.15 m (ETW 4.3m), 12.07 g/t Au over
5.2 m (ETW 2.9m) in hole CE64087 (including 101 g/t Au over 0.4 m (ETW
0.2m)), 5.86 g/t Au over 13.15m (ETW 5.9m) in hole CE64078, 10.31 g/t Au
over 6.0m (ETW 2.9m) in hole CE64079 and 8.92 g/t Au over 5.8m (ETW
3.3m) in hole CE64086. The Taipan discovery is in close proximity to
underground development below the F1 Fault.
-- Completion of 200m of underground development (640 Western Drill Drive)in April 2016 to provide platforms for continued underground exploration
drilling.
(1) Visible gold present in drill intercept. All drill results are presented in Table 1
Douglas Forster, President & Chief Executive Officer of Newmarket Gold(NMKTF) stated, "Successful exploration programs at the Cosmo Gold Mine have focused on outlining additional mill feed in close proximity to current mine development and infrastructure. Continued positive results reaffirm our emphasis on internal growth opportunities, and
