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NioGold Progresses Towards 1 Million Ounces Gold
By James West
MidasLetter.com
Friday, Novemeber 13, 2009
Shares of NioGold Mining Corp (TSX.V:NOX) have doubled since January of this year, and the company’s recently announced plans to explore some new claims in a joint venture with Alexandria Minerals could see heightened interest in the company.
The four claims lie within the area of influence governed by the option and joint venture agreement between NioGold and Alexandria, on which NioGold is earning a 50-per-cent interest in the 93 claims consisting of Alexandria's Siscoe East property, which lies between and around the past-producing Siscoe and Sullivan mines. Alexandria will meet its commitment to maintain its 50-per-cent interest in these claims by paying to NioGold $15,000 cash and 120,000 shares of Alexandria treasury stock.
The newly added claims surround the Sullivan mine property, which produced approximately 1.2 million ounces of gold during the 1900s from five veins which trend northwest onto the joint venture’s property, and which was mined underground to a depth of 1.6 kilometres, at a grade of 7.7 grams per tonne Au. In a first round of drilling by Niogold, drill hole SE-09-004 intersected 43.67 g/t Au over 1.3 m at 412 m downhole, interpreted as a possible northwest extension of the Sullivan zone.
NioGold controls a large land package in the famed Abitibi gold region in Canada, a stone’s throw from Osisko Mining’s Canadian Malartic Project, which contains 6.28 million ounces plus an indicated resource of 1.4 million ounces and an inferred resource (including the Barnat deposit) of 2.75 million ounces.
The Malartic Gold Camp and the Abitibi District
Probably Canada’s second most famous mining district after Red Lake, Ontario, the Abitibi gold district has so far yielded over 170 million ounces of gold.
Within the Abitibi district the Cadillac, Malartic and Val d’Or camps have produced 45 million ounces, and there are 15 million more in reserve. NioGold has united the ground containing 4 past-producing gold mines into a 115 square kilometer land package that creates the opportunity to systematically explore the underlying geophysical geological stratigraphy that controls mineral deposition throughout the belt, and develop an efficient strategy to approach the massive land position as a potential major new mine.
In 2007, Mine Development Associates calculated a NI 43-101-compliant mineral resource for the Kierens and Norlartic deposits. The two nearby ore bodies contain an estimated 342,000 ounces of gold, based on a largely inferred resource of 3.94 million tonnes, averaging 2.7 grams of gold per tonne. This resource remains open at depth. Historic resource calculations exist for the North deposit, and for the Gold Hawk and North-North deposits.
During the 2008 exploration season, NioGold drilled 67 holes for a total of 24,718 metres, 98% of which was concentrated in and around the historic Marban Mine. These drill results have significantly increased this resource. A new NI 43-101 report that will upgrade the size of the resource is due in coming weeks.
Some highlights from the 2008 drill program include:
- MB-08-037: 5.55 g/t Au over 1.1 m within 0.69 g/t Au over 20.4 m
- MB-08-038: 7.63 g/t Au over 4.0 m within 0.88 g/t Au over 67.8 m
- MB-08-042: 78.90 g/t Au over 3.0 metres (metallic sieve method)
(363.07 g/t Au over 3.0 metres from fire assay /gravimetric finish).
- MB-08-046: 4.18 g/t Au over 3.6 metres.
- MB-08-051: 9.84 g/t Au over 3.1 metre within 3.10 g/t Au over 14.8 metres;
- MB-08-052: 8.56 g/t Au over 1.2 metre;
- MB-08-053: 8.34 g/t Au over 1.3 metre within 2.47 g/t Au over 12.1 metres
- MB-08-072: 18.11 g/t Au over 3.7 metres (HWUM)
- MB-08-073: 31.68 g/t Au over 2.2 metres (HWUM)
- MB-08-074: 7.65 g/t Au over 4.6 metres included in 1.06 g/t Au over 73.4 metres
- MB-08-078: 1.78 g/t Au over 47.4 metres (WZ) incl. 42.8 g/t Au over 1.0 metres
- MB-08-080: 26.70 g/t Au over 1.2 metre (WZ); within 17.72 g/t Au over 4.3 metres (MZ).
The high grade encounters over smaller widths within longer intercepts of lower grade mineralization is consistent with the geology of the largest producing mines in the area. Although the widths are generally narrow, the abundant access provided by the previous mines drifts and adits means a much lower cost and shorter timeline to production startup.
Since 2006, NioGold has completed over 45,000 meters of drilling on the Marban property, spending a total of $7 million on exploration. NioGold’s goal for the next two years is to double drilling to 100,000 meters and define 2,000,000 oz. gold.
Camflo West Property
NioGold’s portfolio of advanced exploration targets includes the Camflo West property which lies immediately northwest of the Marban Block. The Camflo mine, two kilometers to the southeast of the Marban Block, produced 1.9 million ounces of gold during its productive years and was the catalyst to help Barrick fund its Nevada gold property acquisitions. A historic non-43-101 compliant resource calculation estimates 23,000 ounces still present in the Audet zone.
Minor exploration of the Camflo property continues to turn up promising grades, though a more thorough drill program will be required to significantly expand or establish any 43-101 compliant resource. NioGold’s drilling has allowed for a revised geologic interpretation that indicates a significant folding of the Norbenite fault occurs in this area, resulting in additional fracturing and fluid movement that has potential for additional gold dissemination. So Camflo West is more or less an ace up the exploration sleeve for NioGold.
Visit NioGold online at http://www.niogold.com.
SOURCE: http://www.midasletter.com/news/09111301_NioGold-progresses-towards-1-million-ounces-gold.php
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Gold Mining
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