Niogold buys properties near Mt. Laurier district in Quebec
2007-02-20 11:09 ET - News Release
Mr. Michael Iverson reports
NIOGOLD ACQUIRES 85 SQUARE KILOMETRE LAND POSITION OVER IRON OXIDE-COPPER-GOLD-URANIUM PROSPECT IN QUEBEC
Niogold Mining has entered into an option agreement with Ressources Maxima Inc. to acquire a 100-per-cent interest in 146 mining claims covering 8,500 hectares located 200 kilometres southeast of the town of Val d'Or, Que., and 50 kilometres north of the Mt. Laurier uranium district, Quebec. The project was named Pump Lake.
Under the terms of the option agreement, Niogold can earn a 100-per-cent interest in the claims over a three-year period by paying a total of $100,000 and issuing a total of 500,000 common shares to Maxima and incurring at least $500,000 of exploration expenses. Once Niogold has earned its 100-per-cent interest, Maxima will retain a 2-per-cent net smelter return royalty on the property. Niogold will have the right to buy back half of the royalty (1-per-cent NSR) for $1.0-million.
Pump Lake is an early stage project that displays characteristics comparable to the iron oxide-copper-gold (IOCG) class of mineral deposits. These include the association of iron oxides (magnetite, hematite), copper, gold and uranium and the proximity to intrusive rocks. World-class examples of IOCGs are found at Olympic Dam and the Cloncurry district (Australia), Candelaria (Chile), Salobo (Brazil) and the Kiruna district (Sweden).
Prospecting by Maxima during the past two years resulted in the discovery of several copper-gold-silver, magnetite and uranium occurrences within the project area. The most significant mineral occurrences discovered to date on the Pump Lake claims by Maxima are listed in the table below:
Best results from Maxima
Prospect name Sample No. (rock grab samples)
Carbonatite Stream 31070503 0.14% U3O8
Melancon 02070604 4.27% Cu, 5.10 g/t Au, 11.5 g/t Ag
23060401 3.94% Cu, 1.53 g/t Au, 21.1 g/t Ag
18080402 6.00% Cu, 0.53 g/t Au, 4.7 g/t Ag
No. 14 18080404 3.37% Cu, 0.50 g/t Au, 16.2 g/t Ag
04070502 2.94% Cu, 0.33 g/t Au, 11.6 g/t Ag
22080401 1.38% Cu, 0.40 g/t Au, 33.3 g/t Ag
Lake Edge 23070503 2.43% Cu, 21.7 g/t Ag
23070502 0.74% Cu, 0.97 g/t Au, 0.07%
The mineral occurrences are spread out over the landholdings and are found within or on the margins of an intrusive complex. Values of up to 4.27 per cent copper, 5.10 grams per tonne gold and 11.5 grams per tonne silver were obtained from the Melancon showing. Prospecting by Maxima has also identified a radioactive zone tentatively interpreted to be related to a northerly trending structural zone traversing the central portion of the landholdings. Limited sampling along the structural zone has returned values of up to 0.14 per cent U3O8.
Michael Iverson, president and chief executive officer of Niogold, states: "We are very excited about this project. Pump Lake has the IOCG signature, which are typically large-tonnage polymetallic systems. The combination of copper, gold and uranium makes it a highly attractive target. Maxima has been successful in uncovering several showings by prospecting the lakeshores and along the forestry roads. We are eager to find out what's hidden in the woods. Niogold's initial exploration efforts on Pump Lake will consist of a high-resolution airborne magnetic/electromagnetic/radiometric geophysical survey and stream sediment and soil sampling geochemical surveys during the spring. Ground follow-up on priority targets during the summer will lead to a drill program later in the year.
Due diligence
Niogold has reviewed and verified Maxima's sampling data, including assay certificates and sample locations. Niogold personnel has conducted field examination of several of the mineral occurrences. Bourlamaque Assay Laboratories Ltd. in Val d'Or performed assaying for gold. Bourlamaque Assay Laboratories is an independent assay laboratory that maintains an internal quality control program and participates annually in Canmet round-robin proficiency testing. The ALS-Chemex Laboratory in Val d'Or is an accredited assay laboratory, performed analysis of all other elements.
This news release was prepared by Rock Lefrancois, PGeo (OGQ), the company's vice-president, and qualified person as defined by National Instrument 43-101.
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