VAL-D'OR, Quebec, Sept. 7, 2010 (GLOBE NEWSWIRE) -- NioGold Mining Corporation (TSX-V:NOX) Frankfurt:NG1) is pleased to announce that drilling operations have commenced on the Marban Block property under the terms of the Aurizon Mines Ltd. ("Aurizon") option agreement. A C$5.9 million program was approved for the first year of the option that includes 50,000 metres of diamond drilling. Two drill rigs were mobilised on the property on August 30, and a third drill rig will be added later in the program.
As reported on July 6, Aurizon can earn a 50% interest in the Marban Block property, subject to underlying royalties, by:
- Incurring expenditures of C$20 million over three years, of which a minimum of C$5.0 million is a firm commitment to be spent in the first year;
- completing an updated NI 43-101 compliant mineral resource estimate;
- making a resource payment equal to the sum of C$30 (or C$40 if the price of gold is then above US$1,560) multiplied by 50% of the number of total gold ounces in the Measured and Indicated resource categories plus C$20 (or C$30 if the price of gold is then above US$1,560) multiplied by 50% of the number of total gold ounces in the Inferred resource category.
Aurizon can earn an additional 10% interest, for an aggregate of 60%, by delivering a feasibility study, and an additional 5%, for an aggregate 65%, by arranging project financing for capital expenditures estimated by the feasibility study to place the project into commercial production. NioGold will be operator during the initial earn-in period, and Aurizon will provide input on exploration programs and will become operator after their initial 50% interest has been earned.
The first year drilling program will be mainly directed at better defining and increasing the near surface gold resources at the Marban and Norlartic deposits:
- Marban Deposit:
- 30,000m of shallow drilling, from surface to -300m vertical depth, to complete drill hole pattern at 50m spacing and select in-fill drilling at 25m spacing;
- 5,000m to 10,000m of drilling along depth extent of the Marban Mine Zones and Mine Sequence, principally between ‑300m to ‑500m vertical depth.
- Norlartic Deposit: 5,000m to 10,000m of select shallow drilling, from surface to ‑200m vertical depth, to complete drill hole pattern at 50m spacing.
- Exploration: 5,000m of drilling to investigate the lateral extent of deposits and high‑grade quartz-gold vein systems along the Gold Hawk Horizon.
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 1930s and presently encompass seven producing gold mines and a major mine development project (Canadian Malartic, Osisko Mining). NioGold's land holdings within the Abitibi presently cover 120 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.
The NioGold Mining Corporation logo is available at
This news release was prepared by Rock Lefrancois, P.Geo. (OGQ), the Company's President and COO, and Qualified Person as defined by National Instrument 43-101. For information on NioGold Mining Corporation contact:
FORWARD-LOOKING STATEMENTS
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The TSX Venture Exchange or the Frankfurt Stock Exchange did not approve nor do not accept responsibility for the adequacy or accuracy of this news release.
CAUTIONARY NOTE TO U.S. INVESTORS
The United States Securities and Exchange Commission 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 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. U.S. investors are urged to consider closely the disclosure in our Form 20-F. The news release contains 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.
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CONTACT: NioGold Mining Corporation (604) 856-9887 (604) 662-4505 Toll-free: (877) 642-6200