VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2011) - New Guinea Gold Corporation ("NGG" or the "Company") (News - Market indicator)(FRANKFURT:NG8) has retained Mining Associates, a Brisbane, Australia based mining consulting group, to prepare an Independent Strategy Study (the "Report") for the ongoing and future development of the Sinivit Gold Mine. The report is scheduled to be completed in early March 2011.
The Company expects the Report to cover and make recommendation regarding all aspects of possible future development such as, but not necessarily limited to, the following:
- Program to define remaining oxide gold mineralization, including the Kavursuki Zone which is presently being explored.
- Program to define deeper gold/copper/tellurium sulphide mineralization and possible development and extraction of these metals when the oxide mineralization is depleted.
- Review present processing, with the objective of converting the gold recovery process to CIP/CIL (or a variation thereof) to recover remaining gold in the vats which cannot be recovered by the current leaching process. This would also allow for better gold recoveries in the processing of the remaining oxide mineralization, including mineralization defined at Kavursuki.
- Review possible procedure for recovery of tellurium which is presently not recovered by the vat leaching process and recommend forward strategy with respect to tellurium.
- Recommend drilling program to explore the chargeability and resistivity anomalies defined in the recent Induced Polarization survey. Chargeability anomalies may reflect sulphide mineralization at depth and resistivity anomalies may reflect silicification which accompanies the gold mineralization at Sinivit.
- Recommend drilling program to explore a possible porphyry copper system just west of the Sinivit Mine. This system is also defined by a significant chargeability anomaly.
- Recommend an exploration program to explore the Sinivit mineralized structure which extends for approximately 10 km, both to north and south of the present mine.
Bob McNeil, Acting CEO commented:
"This independent report will allow management and the Board to more effectively plan and finance the ongoing and future development at Sinivit. The report will be in National Instrument 43-101 format but initially may not be compliant and will not be released in its entirety. However, it is expected that the conclusions and recommendations by Mining Associates will be released by mid/late March 2011.
"The Sinivit project is now at the stage where an independent report on the future development of the project is warranted. Sinivit encompasses a major mineralized system but to date development has been piece-meal. We hope that this report will provide the impetus for a major increase in exploration and development and define a comprehensive development plan for the Sinivit Project.
"At Kavursuki, exploration, including both excavator trenching and diamond core drilling is continuing. Although a considerable body of data has already been collected and substantial gold mineralization has been encountered in both trench and drill holes, at this stage more information is required on continuity of the oxide gold mineralization. Once continuity is confirmed a meaningful assessment of the potential of this zone can be completed."
The information in this release was prepared under the direction of Robert D. McNeil a Fellow of the Australasian Institute of Mining and Metallurgy and a "qualified person" as defined by National Instrument 43-101. Mr McNeil has read and approves the information contained herein.
Other News
The Company reports that effective February 9, 2011, Robert McNeil resigned as Director of the Company, but will continue as acting CEO until a new appointment is made.
For further information on this release or on other NGG projects, email info@newguineagold.ca, or access our website - www.newguineagold.ca.
ON BEHALF OF THE BOARD
R.D. McNeil, ACTING CEO
Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of NGG, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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