NIOGOLD TO INTENSIFY DRILLING IN MALARTIC WITH TWO MORE DRILLS
January 13, 2011
Val-d’Or, Quebec - January 13, 2011 - NioGold Mining Corporation (TSX-V:NOX) (“NioGold” or the “Company”) is stepping up its exploration activity in the Malartic gold camp, Abitibi region of Quebec. The Company plans to drill in excess of 55,000 metres on its land holdings during 2011. Two drill rigs are currently in operation and two more will be added by the end January.
Marban Block property
Two drill rigs are in operation at the Marban gold deposit since late August under the terms of the Aurizon Mines Ltd. (“Aurizon”) option agreement. To date, 47 holes and two (2) extensions of previous holes were completed for a total of 13,000 metres. Results for 15 holes were reported and more results are expected to be released shortly. The initial phase of the program is confirming the geological and structural model and the continuity to the gold mineralised zones at Marban.
A third drill rig will be added by month’s end to complete 5,000 metres of shallow definition drilling on the Norlartic gold deposit, more specifically within upper 200 metres from surface.
Aurizon can earn up to a 65% interest in the Marban Block property under the terms of an option and joint venture agreement signed last July (see news release dated July 6, 2010). The initial 50% interest can be earned by incurring expenditures of C$20 million over three years, completing an updated NI 43-101 compliant mineral resource estimate, and by making a resource payment for 50% of the total gold ounces defined by the mineral resource estimate. NioGold is the project operator during the initial earn-in period.
The first year program of Aurizon’s earn-in includes 50,000 metres of diamond drilling mainly directed at better defining and increasing the near surface mineral resources at the Marban and Norlartic gold deposits.
Malartic camp exploration
Following the closing of a C$7.5 million financing in December (see news release dated December 23, 2010), the Company has budgeted for a minimum of 20,000 metres of exploration drilling for 2011.
Several targets have been identified on the Company’s extensive Malartic camp land holdings with a priority given to investigate under-explored sectors where favourable geological and structural settings were identified from comprehensive compilation work.
The 2011 campaign is scheduled to start in late January with an initial 4,000 metres of drilling planned to investigate sedimentary formations in the southern portion of the Malartic Block claims. The targets lie immediately to the north of the famous Cadillac fault and the Canadian Malartic, Barnat and Jeffrey Zone gold deposits being developed by Osisko Mining Corporation.
“The Company is very pleased with the initial drilling results on the Marban Block under the partnership with Aurizon and there will be a lot more developments to come in 2011. The successful closing of a $7.5 million financing in December will allow the Company to be aggressive on pure exploration drilling in 2011 and probe areas in the heart of the mining camp that have been overlooked in the past” commented Rock Lefrançois, NioGold President & COO.
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 stretch of the prolific Abitibi gold mining district, Province of Quebec, Canada. The Cadillac, Malartic and Val-d’Or mining camps have produced over 45 million ounces of gold since the 1930’s and presently encompasses seven producing gold mines and a major mine development project (Canadian Malartic, Osisko Mining). NioGold’s land holdings within the Abitibi presently cover 125 km2 and encompass three former gold producers, namely the Norlartic, Kierens (First Canadian), and Marban mines that collectively produced 600,000 ounces of gold. NioGold has outlined Indicated resources of 598,000 ounces gold and Inferred resources of 361,000 ounces gold in and around these deposits.
NioGold’s experienced and qualified technical team will ensure the successful advancement of the Company’s projects towards the highest quality mineral resources. NioGold invites you to visit the company website at www.niogold.com. For information on NioGold Mining Corporation contact:
Michael A. Iverson, Chairman & CEO Dale Paruk, Vice-President
miverson@niogold.com dparuk@niogold.com
Tel: (604) 856-9887 Tel: (604) 662-4505
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