New Guinea Gold Clarifies Disclosure of Technical Information
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/25/11 -- New Guinea Gold Corporation ('New Guinea Gold' or the 'Company') (TSX VENTURE: NGG)(FRANKFURT: NG8) announces that as a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify its disclosure.
The Company's MD&A from December 2011 and website cite the Sinivit indicated and inferred resources reported in the Company's January 30, 2006 Technical Report as 713,000 tonnes grading 5.6 g/t gold and 340,000 tonnes at 3.2 g/t gold, respectively. It is herein clarified that this was the mineral resource inventory prior to the initiation of mining in 2007. As reported in the table 'Production Summary Sinivit - February 28, 2011' in the December 2011 MD&A a cumulative total of 310,734 tonnes has been mined and loaded in vats or on heaps for leaching. The 2006 mineral resource, specifically the low Cu oxide zone indicated resource in Table 19.1, should therefore be reduced by these tonnes in addition to subsequently mined material in 2011. The Company plans to update the Sinivit mineral resources including Kavursuki in a new technical report as soon as possible through its independent consultant, Mining Associates Pty Ltd of Brisbane.
It is further emphasized that the total indicated resource reported in the December 2010 MD&A and on the Company's website includes both oxide and sulphide mineralized material. The Sinivit vat or heap leach gold recovery process cannot effectively treat the copper rich sulphide (primary) mineralization. Therefore, the Northern Sulphide Zone comprising 201,600 tonnes grading 9.42 g/t Au at a 5 g/t cut-off grade, as reported in the 2006 Technical Report, does not constitute leachable material for the current Sinivit mine and gold recovery operation. This is the only mineral resource estimate of sulphide mineralization which has been completed to date. Preliminary metallurgical work on the sulphide mineralization reported in the 2006 Technical Report has not been augmented with more recent studies, nevertheless, the high grade of the sulphide mineralization and the initial indications of high gold recoveries in a sulphide concentrate suggest this material has potential for future exploitation. This type of mineralization will also be re-estimated in the planned mineral resource update; however there are no plans for further metallurgical testing of the sulphide mineralization at this time.
The Company wishes to clarify that there have been no National Instrument ('NI') 43-101 compliant estimates of either oxide or sulphide mineral resources or reserves for Sinivit since the 2006 Technical Report which was completed before the initiation of mining and production of gold dore. Therefore, the Company will file a new Technical Report for Sinivit and Kavursuki within 45 days of this news release and will promptly announce any changes to its mineral resource estimates that result from the preparation of the report.
The Company retracts the statement in its news release of May 3, 2011 'approximately 23,000 ounces (gold) remain in unmined oxide resources at Sinivit'. The statement is based on the Company's current mine plan and metallurgical recovery experience gained over the past four years of operating at Sinivit; however, the Company emphasizes that it cannot be stated in NI 43-101 compliant terms of tonnes and grade and therefore should not be relied upon. It is uncertain whether this amount of gold will be produced.
The Company has also used the term 'feasibility study' in its news release of July 19, 2011. The term has not been applied in the normal usage of NI 43-101 where an established in situ indicated or measured mineral resource is subject to technical and financial evaluations before its initial exploitation. The material intended for study as mentioned in the news release is the mined, crushed and leached oxide material already placed in the vats and heaps. The quantity of this material is well known as tabulated in 'Production Summary Sinivit - February 28, 2011' in the December 2011 MD&A and contains the gold unrecovered by the initial leaching process. The contemplated study would assess the viability of finer grinding and treatment by standard gold carbon-in-leach processing to recover this gold. Additional oxide resources such as identified at Kavursuki are anticipated to be amenable to this standard technology; however, inferred mineral resources at Kavursuki are not mineral reserves and do not have demonstrated economic viability.
The Kavursuki prospect lies 1.5 to 2.0 km to the north of the Sinivit mine and is within the Sinivit mining lease. Since the 2006 Technical Report which reported a historical inferred resource estimate at Kavursuki of 219,300 tonnes grading 2.1 g/t gold, there has not been a new mineral estimate, or any estimate of potential ranges of grades and tonnes for additional exploration targets at Kavursuki. Subsequent diamond drilling and trenching results on the prospect, such as have been reported in news releases on May 5, 2011 and July 19, 2011, have outlined oxide-type gold mineralization over a strike length of 900 m. However, no new mineral resource estimate has been carried out and it is uncertain if further exploration will result in the determination of additional mineral resources. The Company therefore retracts the statement that the Kavursuki prospect 'could equal or exceed the original Sinivit oxide resource' or similar wording found in the December 2011 MD&A and news releases of May 5, 2011 and July 19, 2011 as this may imply unwarranted guidance on the size (quantity) of the Kavursuki mineralized zone.
This news release was prepared by Colin McKenzie, P.Geo., a Director of the Company and a Qualified Person in accordance with NI 43-101. Current exploration and mineral resource evaluations on the Sinivit property are being carried out under the supervision of Ian Taylor, AusIMM(CP)., of Mining Associates Pty., an independent Qualified Person in accordance with NI 43-101.
About New Guinea Gold Corporation
New Guinea Gold is a premier junior explorer and miner in Papua New Guinea, with direct and indirect interests in eight gold and two porphyry copper-gold-molybdenum properties. With 90,000 metres of drilling completed, gold or copper-gold-molybdenum mineralization has been discovered on all of the properties. The Company's premier property, the Sinivit Mine, has been producing gold since August 2007 and the Company is focused on expanding the exploration program, increasing production from the mine and developing the gold, copper and tellurium resources.
Information on this release or other New Guinea Gold projects such as the Sinivit gold mine contact info@newguineagold.ca or access our website: www.newguineagold.ca.
ON BEHALF OF THE BOARD
Colin McKenzie, Director
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 New Guinea Gold, 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.
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
Colin McKenzie
Director
61(7)5592.2274
61(7)5592.2275 (FAX)
info@newguineagold.ca
www.newguineagold.ca