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:
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”.
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