VAL-D'OR, Quebec, May 26, 2010 (GLOBE NEWSWIRE) -- NioGold Mining Corporation (TSX-V:NOX) (Frankfurt:NG1) (Other OTC:NOXGF) is pleased to announce that it has signed a Letter Agreement with Geomega Resources Inc. ("Geomega"), a private mining company based in Montreal, Quebec.
Under the terms of the Letter Agreement, Geomega has the option to earn up to 75% interest in the Montviel and Pump Lake properties by making a cash payment of C$100,000 to NioGold on signing of the Letter Agreement, issuing 1,500,000 shares of Geomega over a three year period following the completion of an IPO, and incurring at least C$3,350,000 in exploration expenditures over four years.
The Montviel property is located approximately 215km NNE of Val-d'Or, in the Abitibi region of Quebec, and consists of 68 mining claims covering 3,777 hectares. The Pump Lake property is located approximately 200km SE of Val-d'Or and 100km north of Mont-Laurier, in the Upper Laurentides region of Quebec, and consists of 324 mining claims covering 18,630 hectares. Both projects are easily accessible by gravel roads and encompass large multi-phase alkaline-carbonatite intrusive complexes. Carbonatites are exploited for a wide variety of metals and minerals such as rare earth elements (REE), niobium-tantalum (Nb‑Ta), zirconium-hafnium (Zr‑Hf), iron-titanium-vanadium (Fe‑Ti‑V), uranium-thorium (U‑Th) and industrial minerals including apatite as a source of phosphate (P) for fertilizer.
The Montviel complex, with a core of 8km by 3km, has only been briefly explored since its discovery in 1958. Past diamond drilling (31 holes, 4,423m) intersected potentially economic concentrations of Nb, REE and P within a central iron-magnesium-rich carbonate phase. Best intersections include 0.31% Nb2O5 over 20.1m (with 0.74% Nb2O5 over 4.6m), 1.10% REE over 9.1m and 6.35% P2O5 over 107.0m. Fifteen (15) Nb-REE-P, U-Th, Cu, Cu-Au-Ag and Fe occurrences have been uncovered on the Pump Lake property, associated with the recently recognised Lesueur complex.
Both projects are being optioned by Geomega for their untapped REE potential. REE and other strategic metals, such as Nb and Ta, have many high technology applications where the demand for these metals is expected to grow in the near future.
The Letter Agreement is also subject to the following conditions:
- Geomega shall have completed an IPO and other private placements for a minimum amount of C$2,000,000 at the latest on September 30, 2010 or, subject to a penalty of up to 150,000 shares, on December 31, 2010;
- both parties sign a Definitive Agreement;
- Geomega shall meet the minimum listing requirements of a Tier 2 Mining Issuer pursuant to the policies of the TSX-V; and
- the transaction shall have been approved by the TSX-V.
NioGold Mining Corporation – On Canada's 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 eight 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.
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NioGold invites you to visit the company website at www.niogold.com. ;
FORWARD-LOOKING STATEMENTS
This news 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.
CAUTIONARY NOTE TO U.S. INVESTORS
The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as 'measured resources', 'indicated resources' and 'inferred resources', which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F. The news release contains information about adjacent properties on which we have no right to explore or mine. U.S. investors are cautioned that mineral deposits on adjacent properties may not be indicative of mineral deposits on our properties.
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