NIOGOLD TO ACQUIRE
NICOLET-SOUTH PROPERTY ADJOINING NEVADO AND BOWMORE IN THETFORD MINES DISTRICT,
SOUTHERN QUEBEC
Val-d�Or Quebec, February 11, 2010: NioGold Mining Corporation
(TSX-V:NOX, Frankfurt:NG1) is pleased to
announce that it has signed a Letter of Intent (�LOI�) to acquire a 100%
interest in the Nicolet-South property consisting of 284 mining claims covering
over 17,000 hectares (170 km2). The property is located 50 km southwest
of Thetford Mines, Eastern Townships, Quebec, some 150 km east of Montreal.
Thetford Mines, and in general the Eastern Townships, situated in the southern
Quebec Appalachian Belt, have a century long mining history for chromite,
asbestos and copper. The region was the site of Canada's first
placer gold rush in the 1850's, decades before the Klondike. Despite the
fact that several gold occurrences were discovered in volcanic, intrusive and
sedimentary rocks, no major bedrock sources were uncovered to account for the
placer gold.
The Thetford Mines area is presently enjoying a major staking rush rumoured to
be the result of gold discoveries in sedimentary formations together with
felsic volcanic and/or intrusive complexes.
The Nicolet-South property is interpreted to cover sedimentary and
volcano-sedimentary assemblages of the St-Daniel M�lange, bordering the
Thetford Mines Ophiolite Complex. The project area was worked for base
and precious metals by a number of individuals and companies since the early
1900�s up until the 1960�s. The work included prospecting, grab sampling,
trenching, limited diamond drilling and artisanal mining. The claims
cover mineral occurrences with documented values of up to 2.2 grams per tonne
gold, 203 grams per tonne silver, and 7.6% copper in rock samples and up to 77
grams per tonne gold in stream sediment heavy mineral concentrates (source:
Ministry of Natural Resources of Quebec).
�We acquired the land for its geological environment favourable to host
disseminated sediment-hosted gold mineralisation. Sedimentary formations
in Quebec have been overlooked in the past for their gold potential but are now
strong contributors to major new gold deposits in the Province, such as
Canadian Malartic (Osisko Mining) and �l�onore (Goldcorp),� said Rock
Lefran�ois, NioGold President & COO. �We intend to be part of this
new Appalachian gold play.�
Under the terms of the LOI, NioGold can earn a 100% interest in the claims by
paying C$40,000 and issuing 500,000 common shares to the vendor on the signing
of a definitive option agreement, subject to a four month hold period from
their date of issuance, and incurring at least C$500,000 of exploration and
development expenses within three years. The vendor retains a 2% net
smelter returns royalty (NSR) on the claims. The NSR is subject to a
buy-back clause, whereby NioGold can purchase 1% for C$1,000,000 at any
time. Registration of the claims by the Quebec government is still
pending, but should be confirmed shortly. The transaction is subject to
the approval of the TSX Venture Exchange.
NioGold Mining Corporation � � On The 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,
Quebec. The Cadillac - Malartic - Val-d�Or area has produced over 45M
ounces of gold since the 1930�s and presently encompasses seven producing gold
mines and a major mine development project (Canadian Malartic, Osisko
Mining). NioGold�s land holdings within the Abitibi presently cover 115
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.
This news release was prepared by Rock Lefran�ois, P.Geo. (OGQ), the Company�s
President & COO and Qualified Person as defined by National Instrument
43-101. For information on NioGold Mining Corporation contact:
Michael A. Iverson, Chairman & CEO
miverson@niogold.com
Tel: (604) 856-9887
Dale Paruk, Vice-President
dparuk@niogold.com
Tel: (604) 662-4505
Toll-free: (877) 642-6200
This Press 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.