Oct 20 2010
New Guinea Gold Corporation (TSX VENTURE:NGG)(FRANKFURT:NG8) on behalf of the NMC/NGG Joint Venture, carried out extensive surface rock chip sampling in the Kela's area to the northwest and north of the Imwauna gold resource showing anomalous gold in soils and the location of Imwauna.
The sampling, which is expected to be the pre-cursor for excavator trenching and drill testing returned many significant results – 20% of all samples were greater than 4g/t gold and 42% were greater than 1g/t gold. These results are encouraging and confirm that other parts of the general Imwauna area could contain significant gold resources.
The Imwauna Project is beneficially held 50% by NGG and 50% by NMC. NMC may earn a further 50% of the project by spending on exploration a further $7,550,000 before June 22, 2013. NMC must spend approximately $2 million before June 22, 2011. NMC plans to re-commence drill testing in mid November 2010.
NMC holds approximately 27 million shares and warrants in NGG and NGG in turn holds 15,682.269 shares in NMC. The latter shareholding represents approximately 31% of the issued shares in NMC.
The information in this release was prepared under the direction of Robert D. McNeil a Fellow of the Australasian Institute of Mining and Metallurgy and a "qualified person" as defined by National Instrument ("NI") 43-101. Mr McNeil has read and approves the information contained herein.
Source: New Guinea Gold Corporation