Replies to post #2720 on iHub Mining Sector Entrance Lobby

[Tackler]

New Guinea Gold delivers rig to Weioko prospect

2005-11-07 19:43 ET - News Release

Mr. R.D. McNeil reports

NGG ACQUIRES OWN DRILL RIG

New Guinea Gold Corp.'s first diamond core rig has been delivered to site in Papua New Guinea at the Weioko prospect, Sehulea project.

NGG and Kanon Resources decided in late 2004 to acquire two diamond core drill rigs -- the initial rig being wholly owned by NGG and the second rig owned by Kanon. Kanon is owned 50/50 by NGG and Vangold Resources Ltd. and Kanon's rig is expected to be delivered to site at the Mt. Penck project in December, 2005. NGG will operate both rigs and has the expertise on staff and through consulting arrangements to efficiently manage drilling operations. NGG also plans to acquire a further two drill rigs in early 2006.

The acquisition of drilling capability will allow NGG and Kanon to markedly increase drilling in 2006 and should provide the market with a steady flow of drill results. The intention is to focus the drilling throughout 2006 on defining resources to National Instrument 43-101 standards at key NGG and Kanon projects. It should also allow a marked reduction in costs, as drill contract rates have substantially increased in the past two years, due to increased demand.