New Guinea Gold: Update on Crater Mountain Project, Papua New Guinea
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/23/10 -- New Guinea Gold Corporation (TSX VENTURE: NGG)(FRANKFURT: NG8) -
Gold Anomaly Ltd, an Australian Securities Exchange listed Company (GOA), the operator of the Crater Mt Joint Venture, announced on June 22, 2010 that excavator and bulldozer benching was well underway at the Nevera Prospect. Sampling and geological mapping is in progress (see below for details).
Bob McNeil CEO and Chairman of New Guinea Gold Corporation (TSX VENTURE: NGG) commented: 'NGG holds a 10% free carried interest in the Crater Mt project to Bankable Feasibility. Previous drilling has defined wide intervals of 0.6g/t gold to 6.55g/t gold (see Gold Anomaly's release) and Crater Mt has the potential to be a major gold system. A 10% carried interest could be a significant asset if Gold Anomaly defines a major system and I believe it is in the interests of NGG shareholders to keep them informed of progress on this project'.
The information contained in this report relating to exploration results at Gold Anomaly's Crater Mountain Project is based on information compiled by Mr Robert McLean, Managing Director of Gold Anomaly Limited. Mr McLean is a Member of the Australian Institute of Mining and Metallurgy and has the relative experience in relation to the mineralisation being reported upon to be a 'Qualified Person' as defined by National Instrument 43-101. Mr McLean has read and consents to the inclusion of the information herein.
For further information on this release or on other NGG projects such as the Sinivit Gold Mine, contact Forbes West toll free at (888)6555532, email forbes@sherbournegroup.ca, info@newguineagold.ca, or access our website - ww.newguineagold.ca.
ON BEHALF OF THE BOARD
R.D.McNeil, CHAIRMAN & 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.
Gold Anomaly's release follows:
Registered Office and Postal
Address
Level 4, 15-17 Young st
Sydney, NSW, 2000
Australia
Gold Anomaly Limited ABN 75 067 519 779 Ph (02) 9241 4224
Fax (02) 9252 2335
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June 22 2010
Company Announcements Office
Australian Securities Exchange
CRATER MOUNTAIN SAMPLING UPDATE:
Sampling of Artisanal Mining Area Complete
Latest Developments
On June 18 2010, the earthmoving machinery contracted to cut new benches on Gold Anomaly's Nevera prospect in Papua New Guinea had reached and penetrated the artisanal mining area of the mineralized system. The machinery cut across the base of the prominent spur mined in shallow underground workings over the past 6 years by artisanal miners and progressed into the deep gully hosting the majority of the mining activity. Continuous 5 metre channel samples have been taken while the rock is still fresh from the machinery cuts. The machinery is preparing to continue southwards to the vicinity of (BHP's) diamond drill hole NEV-01.
To view a picture of the Road cut across spur with part of artisanal mining area in background, please visit the following link: http://media3.marketwire.com/docs/RoadCutAcross.pdf.
Channel sampling of the face is now complete.
Channel sampling of the face is now complete. The rocks exposed are massive feldspar porphyry, which is strongly altered with an overprint of argillic alteration and deep weathering. Patches of mild silicification are apparent. Fracturing and jointing is of variable but mostly medium intensity and is marked by dark iron oxides, with prominent near-vertical fractures commonly trending east of north forming the 'lines' favoured by the artisanal miners which are opened up and mined along with the ancillary joints, yielding highly variable returns of gold. There is evidence that the artisanal miners have reached depths of approximately 60 metres below surface.
The bulk of the planned benching is expected to be completed in the next few weeks. Geological mapping and sampling will to continue for several months beyond that date. The aim is to define weathered zone supergene gold targets in the 'Hematite Cap' area which includes the artisanal mining zone which can be fast tracked to develop a small scale mine and processing facility using gravity recovery of gold.
The benching will also provide new information on the lithological and structural controls of the deeper potentially large-scale gold potential which will be the focus of the next phase of drilling.
To view a Map of the Proposed Benching Program, please visit the following link: http://media3.marketwire.com/docs/Proposed_Benching_Program.pdf.
When the benching is complete exploration director Peter MacNab, with consulting structural geologist Bob Findlay and consulting geologist Greg Corbett, will progress the conceptual model and refine the deep drilling program.
About Crater Mountain
Gold Anomaly's Crater Mountain project is a widespread gold target area based on gold and base metal anomalies in soils and rock chips over a 3.5km by 2.5km area with a coherent gold-in-soil (greater than 20ppb) anomaly centered on the Nevera volcanic complex.
Previous drilling located an extensive zone of gold mineralisation on the disrupted and brecciated sediment-volcanic contact approximately 300 metres east of an artisanal mining zone.
The mineralised contact zone has only been intersected in 5 holes as listed below
Previous Drilling Results
-- NEV 02 ; 121 metres at 1.77 g/t Au
-- NEV 05 ; 151 metres at 1.38 g/t Au, incl 24 metres at 6.55 g/t Au
-- NEV 08 ; 178 metres at 1.30 g/t Au, incl 32 metres at 2.76 g/t Au
-- NEV 10 ; 129 metres at 0.61 g/t Au, incl 25 metres at 1.60 g/t Au
-- NEV 11 ; 205 metres at 0.86 g/t Au, incl 25.5 metres at 2.36 g/t Au
The mineralisation contact zone is interpreted to dip west below the high grade artisanal gold mining zone and is potentially up to 150m wide and open at depth and along strike.
Near surface artisanal gold mining has been carried out since 2005 following the discovery of high grade gold mineralisation in trench sampling. While all intervals are anomalous, the best ones are:
Trenching
-- 48 metres at 10.20 g/t Au
-- 26.5 metres at 6.27 g/t Au
-- 45 metres at 2.90 g/t Au
-- 35 metres at 3.10 g/t Au
Production from artisanal mining has been from rudimentary shallow workings and gravity separation. The artisanal underground mining has recently been shut down by government authorities. Gold Anomaly will investigate developing its own mining operation after completion of the current road works and benching program.
The project work is being directed by exploration director Peter MacNab who is onsite. Mr MacNab is a widely experienced exploration geologist who has worked in PNG for over 40 years and is a widely respected expert in PNG geology. He was the discoverer of the giant Lihir deposit (45m ozs gold) as well as being the discoverer and co-discoverer of other world class deposits in PNG including Wafi (7m ozs gold), Frieda River (7.5m tonnes Copper,14.3m ozs gold), Misima (3.7m ozs gold) and Simberi (5.7m ozs gold).
About Gold Anomaly
The company's immediate focus is commencement of gold mining activities at the high grade gold project at Sao Chico in Brazil and the continuing evaluation of the potentially large Crater Mountain gold project. It is also progressing its Fergusson Island gold project in Papua New Guinea and seeking a joint venture partner for its encouraging vein style polymetallic discovery (zinc-tin-copper-silver dominant) at Croydon in north Queensland.
Postal Address: Registered Office
Level 4, 15-17 Young St
Sydney, NSW, 2000
Australia
Gold Anomaly Limited ABN 75 067 519 779 info@goldanomaly.com.au
For further information regarding Gold Anomalyplease
contact:
Ken Chapple or Greg Starr
Executive Director Executive Chairman
Mb +61 (0) 418 758 301 Mb +61 (0) 414 906 611
Or visit the GOA website www.goldanomaly.com.au
The information contained in this report relating to exploration results at Gold Anomaly's Crater Mountain project is based on information compiled by Mr Robert McLean, Director of Gold Anomaly Limited. Mr McLean is a Member of the Australasian Institute of Mining and Metallurgy and has the relevant experience in relation to the mineralisation being reported upon 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. Mr McLean consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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.
Contacts:
New Guinea Gold Corporation
Forbes West
Toll Free: (888)6555532
forbes@sherbournegroup.ca
info@newguineagold.ca
www.newguineagold.ca