New Guinea Gold Corporation: NI 43-101 Technical Report-Sinivit
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/05/11 -- New Guinea Gold Corporation ('NGG' or the 'Company') (TSX VENTURE: NGG)(FRANKFURT: NG8) announces that as a result of a request by the British Columbia Securities Commission, we are issuing the following press release to announce the lodgment of a National Instrument (NI) 43-101 compliant Technical Report. The Company commissioned Mr. Ian Taylor BSc(hons), MAIG, MAusIM(CP) of Mining Associates ('MA') of Brisbane, Australia to compile the Technical Report on the Sinivit Gold Project ('the Project' or 'Sinivit') located in New Britain, Papua New Guinea ('PNG'). Mr. Taylor is independent of the Company and is a Qualified Person as defined by NI43-101.
MA has, over the last 12 months, provided on-going support to the project in the areas of geology and production grade control and has recently completed an update of the Sinivit Resource Model. The scope of the report covers an estimate of the mineral resources remaining at Sinivit Mine as well as an appraisal of the geology and exploration potential of the Sinivit Gold Project within the confines of the current exploration tenement.
This report is based on a review of all technical data supplied by NGG and a total of six site visits made by Mr. Ian Taylor over the past 12 months as part of the technical support contract. During this time, Mr. Taylor verified various technical and geological aspects of the Project, in particular, detailed knowledge of the open pit mining operations.
Acting CEO, Greg Heaney, commented: 'It is pleasing to note that this study has confirmed the Company's confidence in the Indicated and Inferred Resources at Sinivit and Kavursuki. The resource estimates here are consistent with our current mine plan and further support our decision to progress with the Definitive Feasibility Study into an agitated leaching operation'.
Resource Estimates
The mineral resources for the Sinivit Gold Project have been estimated by MA for the preparation of this report and quoted above a 1.5g/t gold cut off. Southern Oxide, Central Oxide, Western Oxide (part of central oxide pit) and Northern Oxide are equivalent to the Southern Area as quoted in the 2005 Resource Estimates.
These mineral resource estimates have been classified in accordance with the categories set out in NI43-101.
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Inferred Resources by Area above 1.5g/t cut off
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Gold capped Copper uncapped
Area K tonnes (g/t) (%) Gold (koz)
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Southern Oxide 47 2.8 0.40 4.2
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Central Oxide 26 5.5 0.32 4.6
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Northern Oxide 7 2.8 0.08 0.6
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Northern Sulphide 1,004 4.0 0.37 129.8
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Kavursuki 613 2.3 0.03 44.5
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Total 1,697 3.4 0.25 183.7
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Indicated Resources by Area above 1.5g/t cut off
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Gold capped Copper uncapped
Area K tonnes (g/t) (%) Gold (koz)
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Southern Oxide 103 4.4 0.67 14.6
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Central Oxide 184 3.8 0.17 22.7
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Northern Oxide 67 3.1 0.06 6.5
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Northern Sulphide - - - -
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Kavursuki - - - -
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Total 354 3.8 0.29 43.8
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Note: To view the 'Sinivit Long Section' figure associated with this release, please click the following link: http://media3.marketwire.com/docs/ngg1005.pdf.
Notes to accompany resource statement:
1. The resource is based on holes drilled to August 31 2011;
2. The resource is depleted with mining to June 30th 2011;
3. East-west section interpretations at a 0.5g/t halo, from which three
dimensional wireframes were constructed for each domain;
4. Assay results were composited to 2 metre down-hole intervals;
5. Capped gold grade estimates were made, grade capping was varied for gold
domains, between 97.5 and 99th percentile dependent on vein. Copper was
estimated with uncapped data;
6. Base of Oxidation has been projected 10m below topography with local
adjustments where drill data existed;
7. Block Model extents cover interpreted mineralisation with a block size
of 20mN x 5mE x 8mRL for estimation with sub-blocking for volume to of
5mN x 1.25mE x 2mRL;
8. Grade interpolated into a constrained block model by domain using
ordinary kriged estimation in one pass with anisotropy applied.
Estimates were validated against informing samples and nearest neighbour
estimates;
9. Historical Density records were not sighted, historical resources have
used 2.5 and 2.6, and current resource uses 2.6 for fresh material and
2.5 for oxidised material. Average Kavursuki Ore measures 2.64;
10. Resources have been classified in compliance with NI43-101 - Standards
of Disclosure for Mineral Projects as Indicated and Inferred. Categories
are allocated by block by domain, based on sample spacing and type,
number of informing samples, geological continuity and Krige estimate
confidence.
11. Mineral resources are reported above a cut-off of 1.5g/t gold;
12. Mineral resources remaining within the current pit design total 135,000t
at 4.44 g/t gold for 19,200 ounces. No mining dilution or loss has been
applied. This comes with a penalty of 0.35% copper. These in-situ
resources remaining have not been modified with mining or metallurgical
factors.
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Indicated Resources Remaining within Designed Pit Shell
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PIT Weathering Tonnes Gold (g/t) Gold (oz) Copper (%)
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SOX Oxide 8,600 5.32 1,460 0.64
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Fresh 29,300 6.77 6,370 0.97
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COX Oxide 33,200 3.06 3,260 0.10
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Fresh 54,600 3.91 6,860 0.16
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NOX Oxide 1,500 2.52 120 0.03
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Fresh 7,800 4.64 1,160 0.08
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TOTAL 135,000 4.44 19,230 0.35
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Figures have been reported to significant figures; (discrepancies
may occur in the addition of rounded figures).
No inferred or measured has been defined with the Design Pit Shells.
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For further information on this release or on other NGG projects such as the Sinivit Gold Mine, please contact info@newguineagold.ca, or access our website - www.newguineagold.ca.
ON BEHALF OF THE BOARD
Greg Heaney, 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.
A copy of the 43-101 compliant Technical Report by Mining Associates Pty Limited ('MA') was filed on SEDAR today. MA is an Australian based Mineral Resources Consultancy which is independent of New Guinea Gold as defined in National Instrument 43-101. Ian Taylor BSc (Hons), MAIG, MAusIMM(CP), who has over 17 years experience in the minerals industry served as the Independent Qualified Person responsible for the preparation of the independent report in accordance with NI 43-101.
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
Greg Heaney
Acting CEO
61(7)5592.2274
61(7)5592.2275 (FAX)
info@newguineagold.ca
www.newguineagold.ca