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"This property acquisition provides Northern Gold with significant new exploration potential and expansion near its Garrison Gold Property and significantly improves the potential economics for both properties if an economically viable area of gold mineralization can be delineated on the Sims Claims," said Martin Shefsky, President and CEO of Northern Gold Mining Inc. "St Andrews Goldfields Holt Mine, located south of the Destor-Porcupine provides an indication of the potential for finding and delineating economic gold mineralization in structures associated with, but south of, the Destor-Porcupine Fault.
The Sims Claim Group is underlain by Archean Age mafic to intermediate metavolcanic basalts and alkalic intrusive rocks classified by previous workers as syenite and syenite porphyry. The Imperial Fault, with a northwesterly strike appears to be a linking structure between one or more of the west-southwesterly striking faults that appear to splay off the south side of the Destor- Porcupine Fault east of St Andrews Goldfields Holt Mine and the Destor-Porcupine Fault to the northwest of the Sims Claim Group. (See Figure 1 below.) The significance, if any, of this apparent link remains to be determined.
Previous work on the claims by Barrick Gold and others included surface mapping and sampling, an IP Geophysical Survey and diamond drilling (13 drill holes) to explore the property. Most of the significantly anomalous gold mineralization (>0.25 g/t) identified to date was encountered in syenite, syenite porphyry and in the Imperial Fault shear zone. Occasionally, mineralization exceeding 0.1 g/t was encountered in the metavolcanic basalts
The Claims are being purchased for a cash payment of $72,000, a 1.5% NSR royalty on all production and 100,000 common shares of Northern Gold. Northern Gold has the right to buy back the NSR for $1.5 million. The Agreement is subject to closing and the approval of the TSX-Venture Exchange.
Figure 1 (seen by clicking on the accompanying link or by going to the PDF version on SEDAR of the Company's website) shows the location of the Sims Claim Group in relation to the Garrison Gold Property and the recently acquired Linton Claim Group. http://media3.marketwire.com/docs/ngm0419fig1.pdf.
About Northern Gold Mining
Northern Gold Mining Inc. is a TSX-V listed, publicly traded junior resource company based in Toronto, Ontario, dedicated to the discovery and development of high value mineral deposits in the proven mining camps of Kirkland Lake and Timmins in North Eastern Ontario. Northern Gold is focused on developing two advanced stage gold deposits on the Garrison Gold Property. The Property is located within the Abitibi greenstone belt along the Porcupine-Destor and the Munro Fault systems. The Property hosts several gold mineralized showings in addition to the two advanced stage exploration targets, the Jonpol and Garrcon Deposits, for each of which NI 43-101 compliant mineral resources have been calculated, and the less advanced 903 gold mineralized area. Historic diamond drilling by previous operators was completed in all three referenced areas. The Jonpol Technical Report was posted on SEDAR October 21, 2009 and the Garrcon Technical Report was posted on SEDAR November 5, 2010. The Garrison Gold Property has historic mining infrastructure at both the Jonpol and Garrcon Deposits and producing mines are located in close proximity to the property. On April 7, 2011, the Company and ValGold announced that they have entered into a definitive agreement whereby Northern Gold will acquire 100% ownership of the Garrison Gold Property.
The technical aspects of this press release has been reviewed by Michael Gross M.S., P.Geol., Vice President Exploration for Northern Gold, who is the "Qualified Person" as defined by NI 43-101 for this project.
CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward- looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.