Northern Gold Mining

Published : September 15th, 2009

And Valgold complete option agrement on Garrison Gold property

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NORTHERN GOLD AND VALGOLD COMPLETE OPTION AGREMENT ON GARRISON GOLD PROPERTY

 

Toronto, Ontario (September 14, 2009):  Northern Gold Mining Inc. (TSX-V NGM) has entered into an Option Agreement with ValGold Resources Ltd. (TSX-V VAL) covering the Garrison gold property, thirty-five patented claims in Garrison Township approximately 40 kilometres north of Kirkland Lake and 100 kilometres east of Timmins, Ontario. According to President and CEO Martin Shefsky, "This transaction is transformational for Northern Gold. It strengthens our holdings in Northern Ontario, and provides Northern Gold with a known resource and the potential for an even larger gold deposit".

The Garrison gold property is located in Garrison Township, Ontario, readily accessible from Highway 101.  The property covers an area of approximately 374.5 hectares along 2.5 kilometres of the Destor-Porcupine Fault Zone.  The Destor-Porcupine Fault Zone is spatially related to major gold deposits in an area from Timmins, Ontario to Normetal, Quebec, including the Holt-McDermott and Holloway gold mines of St. Andrew Goldfields Ltd.  

Four mineralized gold zones (JP, JD, RP and East) have been identified on the Garrison gold property. A NI 43-101 compliant technical report on the property filed on SEDAR (www.sedar.com) on 13 May 2008 by ValGold Resources Ltd. concludes that these four mineralized zones contain both an indicated resource and an inferred resource. The JD and RP zones have only been tested to a vertical depth of 250 metres, as revealed during compilation of the historic data. Two holes (N-88-87 completed by Jonpol in 1988, G-06-37 completed by ValGold in 2006) intersected the main JP zone at a depth of 600 metres. Both returned intersections confirming down-dip continuation of the gold mineralization. All four zones require additional in-fill and step-out drilling.

According to the NI 43-101 technical report, Hillsborough Resources extracted a 50,477 tonne bulk sample from the central part of the JP zone at an average recovered grade of 8.3 grams per tonne. A smaller bulk sample of 79 blast rounds (approximately 3,160 tonnes) was extracted by Jonpol Exploration from the JP zone in 1990 and returned calculated assays of 10.9 and 18.5 grams per tonne when sent for metallurgical testing.

The initial focus for Northern Gold will be a fifth gold zone, the Garrcon Zone, which is situated on the immediate north side of the Destor-Porcupine Fault. Following TSX-Venture approval of the option agreement, Northern Gold plans to diamond drill this zone. Northern Gold's due diligence over the past few months included compiling and digitizing all available data. This resulted in preparation of a 3-D model of past drilling to assist in determining optimal diamond drill hole location. Although there has been insufficient exploration to define a mineral resource on the Garrcon Zone, it is described in the NI 43-101 technical report as having the potential to host a bulk tonnage, open-pit operation with the potential for up to 30 million tonnes ranging in grade from 1 to 3 grams per tonne gold.  The potential quantity and grade is conceptual in nature and as a result it is uncertain if further exploration will result in the discovery of a mineral resource.

Under the terms of the agreement, Northern Gold may earn up to an undivided 80 percent interest in the Garrison gold property. Northern Gold may acquire a 50 percent undivided interest in the property by making cash payments to ValGold of $1,000,000 over four years, with all or part of the payments being made in Northern Gold stock at Northern Gold's option, using a 20 day value weighted average price, upon regulatory approval.  To earn the 50 percent interest Northern Gold must also complete work on the property in the amount of $4,000,000 over four years, with $500,000 being spent on the property in the first year of the agreement and not less than $750,000 to be expended in each of the subsequent years. After earning the 50 percent interest, Northern Gold may increase its interest to 80 percent by making additional cash payments of $1,000,000 over four years (again with all or part of the payments being made in Northern Gold stock equivalent, using a 20 day value weighted average price) and completing additional work on the property in the amount of $4,000,000 over four years. 

Since Northern Gold will now be concentrating on exploration of the Garrison Gold Property, management has decided against further exploration of the Timmins properties. The option agreement for those properties with the Dixon-Meunier-Pegg syndicate was terminated on 15 August 2009. According to Mr. Shefsky, "the investment of manpower and financial resources into a transformational property like the Garrison made it unrealistic for Northern Gold to continue exploration of its Timmins properties. We appreciate the opportunity given us to advance these properties for the past two years, and wish great success to Mssrs. Dixon, Meunier, and Pegg."

This Press release has been reviewed by Brad Leonard P.Geo., exploration manager for Northern Gold Mining Inc., who is the "Qualified Person" as defined by NI 43-101 for this project.

Northern Gold Mining Inc. is a Toronto based junior resource company dedicated to gold exploration in Northern Ontario.

For further information please contact:

Northern Gold Mining Inc.

Martin R. Shefsky                                                          Jeffery P. Boykin

President and CEO                                                        VP Investor Relations/Regulatory Affairs

Tel: (416) 366 - 7300                                                      Cell: (647) 269 - 7300

Fax: (416) 366 - 7301                                                     Tel: (416) 366 - 7300

E: mshefsky@northerngold.ca                                        Fax: (416) 366 - 7301

Web site: www.northerngold.ca                                       E: jboykin@northerngold.ca

 

CAUTIONARY STATEMENT: The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, future plans and objectives of Northern Gold Mining Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Northern Gold Mining Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Northern Gold Mining Inc. with securities regulators.

 

 

 

 

 

 

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Northern Gold Mining Inc.

20 Vicroia Street
Suite 800

Toronto ON M5C 2N8
Canada

 

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Northern Gold Mining

EXPLORATION STAGE
CODE : NGM.V
ISIN : CA66516M1095
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Northern Gold is a gold exploration company based in Canada.

Northern Gold holds various exploration projects in Canada.

Its main exploration properties are KIRKLAND LAKE, BOURKES GROUP, KIRKLAND LAKE, KIRANA GROUP, GARRISON and GARRISON - JONPOL / MONETA in Canada.

Northern Gold is listed in Canada. Its market capitalisation is CA$ 3.1 millions as of today (US$ 2.3 millions, € 2.1 millions).

Its stock quote reached its highest recent level on April 08, 2011 at CA$ 0.64, and its lowest recent point on December 23, 2015 at CA$ 0.01.

Northern Gold has 314 920 000 shares outstanding.

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10/10/2012Announces Board Changes and Officer Appointments and Reports...
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8/18/2011(Garrison)Announces Three Additional Drills (Five in Total) on Its Gar...
7/26/2011Reports Assays for Six Drill Holes at Its Garrcon Gold Depos...
5/26/2011(Garrison)More Than Triples Land Holdings at and Near Its 100% Owned G...
5/16/2011(Garrison)ValGold and Northern Gold Close Garrison Property Sale
4/28/2011(Garrison)Intersects 61.0 m @ 2.32 g/t Gold Including 1.0 m @ 127.70 g...
4/26/2011(Garrison)Announces Significant New Gold Assay Results in Ongoing Dril...
4/12/2011(Garrison)Expands the Garrison Gold Property by 27% With Acquisition o...
4/7/2011(Garrison)and ValGold Announce Agreement to Consolidate 100% Ownership...
4/1/2011(Garrison)Announces Significant New Gold Assay Results
3/1/2011(Garrison)Hits 209 Meters of 1.44 g/t Including 1 Meter of 97.88 g/t, ...
2/24/2011(Garrison)Reports That Metallurgical Testing of the Garrcon Deposit Ha...
2/22/2011(Garrison)Hits 58 Meters of 1.08 g/t Gold Including 2 Meters of 13.07 ...
12/29/2010(Garrison)Initiates a New Mineral Resource Report and Preliminary Econ...
5/10/2010(Garrison)Initiates Phase II Drilling on Garrison Gold Property
3/31/2010(Garrison)Initiates Permitting Process for Advanced Exploration/Develo...
2/23/2010(Garrison)Hits 84.2 Metres of 1.49 g/t Gold Including 37.2 Metres of 2...
12/10/2009(Garrison)Hits 56.1 Metres of 2.14 g/t Gold Including 3.4 Metres of 16...
8/14/2008ANNOUNCES ADDITIONAL HIGH GRADE GOLD ASSAYS 552.96 g/t (16.1...
7/29/2008ANNOUNCES COMMENCEMENT OF DIAMOND DRILLING AT THE NEW HIGH G...
7/22/2008NEW DISCOVERY OF HIGH GRADE GOLD 2305 g/t (67.22 oz/t) ON N...
1/8/2008(Kirkland Lake)DRILLS 404.92g/t Au (11.81 opt) over 0.3m(1.0ft.) AT BOURKES
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12/22/2015Oban Mining Completes Acquisition of Northern Gold
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10/6/2015Northern Gold Announces Updated Bulk Sample Results
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4/23/2015Northern Gold Strengthens Board of Directors
2/26/2015Northern Gold Announces Updated Bulk Sample Results – Recove...
2/26/2015Northern Gold Announces Updated Bulk Sample Results-Recovers...
1/26/2015Northern Gold Announces Updated Bulk Sample Results - Recove...
10/27/2014Northern Gold Announces Initial Bulk Sample Results
10/14/2014Northern Gold Announces Closing of $5,000,000 Secured Debt F...
9/19/2014Northern Gold Announces Results of Annual and Special Meetin...
9/19/2014CORRECTION FROM SOURE: Northern Gold Announces Results ofAnn...
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8/27/2014Northern Gold Announces $5,000,000 Secured Debt Facility and...
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6/9/2014Northern Gold Announces Change in Management
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5/2/2014Northern Gold Files 43-101 Technical Report for its Garrison...
10/10/2013Intersects 38.35 g/t Au Over 8.0 m at Garrcon Deposit
9/26/2013Reports Results of Jonpol Metallurgical Testwork
9/18/2013Intersects 7.41 g/t Au over 6.5 m at Jonpol East Zone
8/29/2013Intersects 5.47 g/t Au OVER 17.3 m at Jonpol Deposit
8/21/2013Announces Issuance of Securities to Wahgoshig First Nation
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7/30/2013Extends Gold Mineralization at Buffonta and Completes Initia...
7/10/2013Intersects 4.52 g/t Au over 11.5m at Gold Pike Property
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2/14/2013Named to TSX Venture Top 50
2/7/2013Completes Acquisition of Victory Gold Mines Inc.
1/21/2013Discovers 600-Metre Long High-Grade Gold Zone at Garrcon Eas...
12/12/2012to Acquire Victory Gold
10/25/2012Intersects Two 2-Metre Intervals of 9.85 g/t Au and 15.02 g/...
10/5/2012Announces Closing of $10.0 Million Brokered Private Placemen...
9/21/2012Announces $10.0 Million Private Placement of Flow Through Co...
7/20/2011Continues to Intersect Long Intervals of Gold Mineralization...
7/11/2011Intersects 3.0 m of Gold Assaying 660.0 g/t Including 1.0 m ...
6/23/2011Increases Garrcon Deposit Indicated Resource Five-Fold to 72...
4/19/2011Continues to Expand Exploration Ground With the Acquisition ...
6/15/2010Announces Assay Results of New Mineralized Zone Samples Grad...
9/15/2009And Valgold complete option agrement on Garrison Gold proper...
1/21/2009SIGNS LETTER OF INTENT WITH VALGOLD RESOURCES LTD.
9/3/2008EXPLORATION UPDATE
8/12/2008ANNOUNCES COMPLETION OF VTEM AIRBORNE SURVEY AND THE ADDITIO...
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