NGM Resources Ltd

Published : August 10th, 2007

SALE OF EGERTON PROJECT

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Suite 4, Level 3, South Shore Centre

83-85 The Esplanade

South Perth

PO Box 859

South Perth

WA 6151

                                ABN 27 107 131 653           

                                             Tel: 08 9367 6471

Fax: 08 9367 2355

Email: info@ngmresources.com.au

                     Website: www.ngmresources.com.au

 

 

10 August 2007

 

JOINT ASX/MEDIA RELEASE

 

 

SALE OF EGERTON PROJECT

 

SUMMARY

 

  • NGM has reached an agreement to sell 100% of its Egerton gold project in Western Australia to Xploration Ltd
  • NGM to focus on its nickel projects in Madagascar and uranium projects in Niger and Queensland
  • NGM will receive 2.25 million shares in Xploration which is planning to list on ASX

 

NGM Resources Limited (ASX: NGM) is pleased to announce the company has signed an Agreement with Xploration Limited (an unlisted public company), for Xploration to acquire 100% of NGM’s Egerton gold project in Western Australia.

 

NGM Managing Director Dr Russell Penney said the Agreement would allow NGM to benefit from the potential at Egerton through a shareholding in Xploration, but importantly, would mean NGM can focus on development of its other projects.

 

“The sale of Egerton is very much part of our strategy to focus on our new uranium projects in Niger, West Africa and Queensland, and our newly acquired nickel projects in Madagascar” Dr Penney said.

 

Xploration is a niche gold exploration company, focused upon near surface, high grade narrow vein deposits in proven gold fields, which offer potential for high margin production.

 

The Xploration Agreement:

 

Detailed terms include:

 

·       NGM will receive 2,250,000 ordinary fully paid shares in Xploration Limited in return for 100% of the Egerton gold project.

·       The sale and purchase is subject to completion of satisfactory due diligence by Xploration Limited and to the receipt of Ministerial approval for the sale of the tenements.

·       The sale and purchase is also subject to Xploration Limited listing on ASX within eight months of the signing of the agreement (which was completed on 9 August 2007):

·       Xploration Limited will contribute to the exploration costs at Egerton in proportion to the monthly expenditure commitment on the tenements until the sale is completed.

 

Previous exploration by NGM at Egerton

 

The Egerton gold project is situated 235km north-northwest of Meekatharra in the Proterozoic Egerton inlier. Exploration by NGM identified the structural controls on gold mineralisation and conducted discretely targeted drilling. NGM’s drilling has proved up measured, indicated and inferred resources at Hibernian of 116,400t @ 6.4 g/t Au for 23,800 contained ounces of gold. This resource includes 78,500 tonnes @ 7.0 g/t Au in the measured and indicated categories. A number of very high grade gold intersections were encountered in drilling, including: 2m @ 229.70 g/t, 2m @ 55.38 g/t, 2m @ 28.61 g/t, 3m @ 128.64 g/t and 2m @ 71.78 g/t and 3m @ 68.64 g/t, within broader high grade intersections grading 4m @ 36.60 g/t and 12m @ 20.33 g/t. All of these intersections (except the 3m @ 128.64 g/t Au) are in pyritic quartz veins and are not believed to be supergene enriched.

 

First stage metallurgical test work has shown that 42% of the gold could be recovered by gravity concentration and a further 53.5% by vat leaching, giving an overall recovery of 95.5%

 

The Hibernian deposit has in general only been tested to 70m vertical depth, beneath the old workings. Potential exists to find additional resources in repeated shoots below this, and to increase resources by targeted drilling within the known resource area. NGM believes that the project has potential for the development of a small underground high grade gold mine.

 

 

About NGM

 

NGM Resources Limited (ASX:NGM) is a diversified exploration company with a key focus on uranium. Head quartered in Perth, the company has agreements covering nickel exploration projects in Madagascar and uranium exploration projects in Queensland and Niger, West Africa.

 

In Niger, West Africa, NGM Resources has an agreement to acquire private company Indo Energy, which holds three granted tenements and three applications for uranium concessions. All six concessions are in the highly prospective Tim Mersoi basin in Niger, the world’s sixth largest producer of uranium.

 

In Queensland, NGM Resources has an agreement to explore and ultimately earn 100% interest in the Marsh’s Creek uranium project, 150km west of Townsville. Marsh’s Creek lies in a highly prospective uranium province, which was explored by Utah Development from 1977-1980.

 

In June, NGM reached agreement with BHP Billiton to acquire 100% of their four nickel exploration projects in Madagascar. The agreement covers 5,000 km2 of ground holdings.

 

In addition, the company holds more than 3,000 km2 of tenements within the North Telfer region of Western Australia.

 

NGM Resources’ board and management are technically and commercially experienced in exploring and developing projects both within Australia and internationally. The company is actively pursuing new opportunities to maximise shareholder value.

 

About Xploration Limited

 

Xploration is a niche gold exploration company, focused upon near surface, high grade narrow vein deposits in proven gold fields, which offer potential for high margin production.

 

Xploration Limited is well advanced in its capital raising and shortly intends to release an IPO and list on the ASX.

 

 

For further information, please contact:

 

Russell Penney

Managing Director

Tel: +61 (0) 9367 6471

 

Warrick Hazeldine

Purple Communications

Tel: +61 (0) 9485 1254

 

Visit: www.ngmresources.com.au

 

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Dr Russell Penney, who is a Fellow of The Australasian Institute of Mining and Metallurgy.

Dr Russell Penney is a full-time employee of the company.

 Dr Russell Penney has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he  is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Russell Penney consents to the inclusion in the report of the matters based on his information in the form and context in which it appears”.

 

 

 

 

***

The new Spam Act commenced on 10 April 2004. This Act is aimed at reducing the amount of unauthorised emails you receive.  You have been receiving e-mails containing information and news releases from us on behalf of our clients because you are an important contact of Purple Communications, a boutique stakeholder communications consultancy.   If you do not wish to receive such emails from Purple, please click mailto: purple@purplecom.com.au subject=UNSUBSCRIBE or reply to this email and put UNSUBSCRIBE in the subject line and we will not email you again.

 If you do not reply, we will continue sending you relevant news and information via email. However, all future emails will allow you to unsubscribe.

 

Issued by

Purple Communications

Level 3, 28 Kings Park Road, WEST PERTH WA 6005

Ph: 08 9485 1254     Fax: 08 6263 0455

purple@purplecom.com.au    

 

 

NGM Resources Ltd

EXPLORATION STAGE
CODE : NGM.AX
ISIN : AU000000NGM8
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NGM is a gold and copper exploration company based in Australia.

NGM holds various exploration projects in Australia.

Its main exploration properties are NIGER PROJECTS in Niger, MARALAMBO in Madagascar and ANKETELL in Australia.

NGM is listed in Australia. Its market capitalisation is AU$ 34.3 millions as of today (US$ 34.8 millions, € 24.8 millions).

Its stock quote reached its highest recent level on May 18, 2007 at AU$ 0.85, and its lowest recent point on March 20, 2009 at AU$ 0.01.

NGM has 180 447 359 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
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Corporate news of NGM Resources Ltd
7/23/2009Update on NGM's Drillilng Program - Niger
8/10/2007SALE OF EGERTON PROJECT
6/27/2007To Explore For Nickel in Madagascar
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