-- Posted Tuesday, 12 April 2011 | | Source: GoldSeek.com
TORONTO, ONTARIO--(Marketwire - April 12, 2011) - Northern Gold Mining Inc. (TSX VENTURE:NGM, NTGMF.PK) "Northern Gold" or "the Company") announced today that is has reached a definitive agreement to acquire a 96.4% interest in the Linton Claim Group consisting of eight patented mining claims adjacent to the eastern boundary of the Garrison Gold Property. The acquisition of this strategic group of claims increases the size of the Garrison Gold Property to 476.1 hectares.
The Linton Claim Group is underlain by rocks of the Timiskaming Assemblage and identified as metasediments in regional mapping and these are the same rock types that host the Garrcon Deposit. Both the Destor-Porcupine and the Munro Faults strike eastward from the Garrison Property across the Linton Claim Group.
"This property acquisition provides Northern Gold with significant new exploration potential and expansion in the eastern strike extension of the same rocks that host the Garrcon Deposit and the Jonpol Deposit," said Martin Shefsky, President and CEO of Northern Gold Mining Inc. "Considering that prospective lithologies and structures extend eastward onto the Linton Claims, they will be included in the ongoing Induced Polarization geophysical survey."
The Claims are being purchased in two transactions. The first transaction consists of the purchase of a 100% interest in seven of the claims. They are being purchased for a cash payment of $91,000 plus 107,692 common shares of Northern Gold Mines Inc., and a 1% NSR. This Agreement is subject to closing and approval by the TSX Venture Exchange.
The second transaction is the purchase of a five sevenths interest in the eighth claim for a cash consideration of $20,000 and a 1% NSR, to be apportioned to the vendors on a pro rata basis. This Agreement is subject to closing.
Figure 1 shows the location of the Linton Claim Group in relation to the Garrison Gold Property and the gold deposits already identified. Four diamond drill holes drilled by previous operators on the property were drilled from south to north through metasedimentary rocks into the hanging wall of the Munro Fault. The drill holes were all reported to have anomalous gold mineralization in the metasedimentary rocks. Please click on the following link to go to the figure or it can be seen in the PDF version posted on Sedar @ www.sedar.com.
Figure 1 - Linton Claims and Garrison Gold Property:
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. The Company is in the second year of an option agreement under which it may earn up to an 80% interest in the Garrison Gold Property from ValGold Resources Ltd. ("ValGold") (TSX VENTURE:VAL). For more information on the option agreement, please see the Company's news release dated 14 September 2009. In a Press Release dated April 7, 2011, The Company and ValGold announced that they have entered into a definitive agreement, subject to closing and regulatory approval 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Martin R. Shefsky
Northern Gold Mining Inc.
President and CEO
416.366.7300 416.366.7301 (FAX)
mshefsky@northerngold.ca
