VAL-D'OR, Quebec, Feb. 11, 2010 (GLOBE NEWSWIRE) -- NioGold Mining Corporation (TSX-V:NOX) (Frankfurt:NG1) is pleased to announce that it has signed a Letter of Intent ("LOI") to acquire a 100% interest in the Nicolet-South property consisting of 284 mining claims covering over 17,000 hectares (170 km2). The property is located 50 km southwest of Thetford Mines, Eastern Townships, Quebec, some 150 km east of Montreal.
Thetford Mines, and in general the Eastern Townships, situated in the southern Quebec Appalachian Belt, have a century long mining history for chromite, asbestos and copper. The region was the site of Canada's first placer gold rush in the 1850's, decades before the Klondike. Despite the fact that several gold occurrences were discovered in volcanic, intrusive and sedimentary rocks, no major bedrock sources were uncovered to account for the placer gold.
The Thetford Mines area is presently enjoying a major staking rush rumored to be the result of gold discoveries in sedimentary formations together with felsic volcanic and/or intrusive complexes.
The Nicolet-South property is interpreted to cover sedimentary and volcano-sedimentary assemblages of the St-Daniel Melange, bordering the Thetford Mines Ophiolite Complex. The project area was worked for base and precious metals by a number of individuals and companies since the early 1900's up until the 1960's. The work included prospecting, grab sampling, trenching, limited diamond drilling and artisanal mining. The claims cover mineral occurrences with documented values of up to 2.2 grams per tonne gold, 203 grams per tonne silver, and 7.6% copper in rock samples and up to 77 grams per tonne gold in stream sediment heavy mineral concentrates (source: Ministry of Natural Resources of Quebec).
"We acquired the land for its geological environment favorable to host disseminated sediment-hosted gold mineralisation. Sedimentary formations in Quebec have been overlooked in the past for their gold potential but are now strong contributors to major new gold deposits in the Province, such as Canadian Malartic (Osisko Mining) and Eleonore (Goldcorp)," said Rock Lefrancois, NioGold President & COO. "We intend to be part of this new Appalachian gold play."
Under the terms of the LOI, NioGold can earn a 100% interest in the claims by paying C$40,000 and issuing 500,000 common shares to the vendor on the signing of a definitive option agreement, subject to a four month hold period from their date of issuance, and incurring at least C$500,000 of exploration and development expenses within three years. The vendor retains a 2% net smelter returns royalty (NSR) on the claims. The NSR is subject to a buy-back clause, whereby NioGold can purchase 1% for C$1,000,000 at any time. Registration of the claims by the Quebec government is still pending, but should be confirmed shortly. The transaction is subject to the approval of the TSX Venture Exchange.
NioGold Mining Corporation – On The Golden Highway
NioGold Mining Corporation is a mineral exploration company focused on GOLD. The Company's flagship projects are located in the Cadillac - Malartic - Val-d'Or stretch of the prolific Abitibi gold mining district, Quebec. The Cadillac - Malartic - Val-d'Or area has produced over 45M ounces of gold since the 1930's and presently encompasses seven producing gold mines and a major mine development project (Canadian Malartic, Osisko Mining). NioGold's land holdings within the Abitibi presently cover 115 km2 and encompass three former gold producers, namely the Norlartic, Kierens (First Canadian), and Marban mines that collectively produced 600,000 ounces of gold. NioGold has outlined Indicated resources of 598,000 ounces gold and Inferred resources of 361,000 ounces gold in and around these deposits.
NioGold's experienced and qualified technical team will ensure the successful advancement of the Company's projects towards the highest quality mineral resources. NioGold invites you to visit the company website at www.niogold.com. ;
This news release was prepared by Rock Lefrancois, P.Geo. (OGQ), the Company's President & COO and Qualified Person as defined by National Instrument 43-101.
This Press Release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The TSX Venture Exchange or the Frankfurt Stock Exchange did not approve nor do not accept responsibility for the adequacy or accuracy of this news release.