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Enter Symbol
or Name
USA
CA



Northern Gold Mining Inc
Symbol NGM
Shares Issued 118,978,915
Close 2011-08-17 C$ 0.39
Market Cap C$ 46,401,777
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Northern Gold adds three drills on Garrison property

2011-08-18 10:38 ET - News Release

Mr. Martin Shefsky reports

NORTHERN GOLD ANNOUNCES THREE ADDITIONAL DRILLS (FIVE IN TOTAL) ON ITS GARRISON GOLD PROPERTY/GARRCON DEPOSIT

Two additional diamond drills and one reverse circulation drill will be added to Northern Gold Mining Inc.'s 2011 exploration program, which is presently utilizing two diamond drills. The current exploration program of 30,000 metres (see news release of Feb. 2, 2011) will be increased to 50,000 metres (44,000 m DD and 6,000 m RC) by the end of 2011.

Since Jan. 1, 2011, there have been 15,465 metres of drilling completed as of July 31, 2011. This drilling was completed in 51 holes and five hole extensions. Year to date through July 31, 2011, Northern Gold has released assay results from 24 of these drill holes representing 6,728 metres of drilling. The 2011 drill program has focused on expanding resources and infilling within the resource footprint as outlined by ACA Howe International Ltd. (Howe) in its NI 43-101-compliant technical report presenting revised resource estimates, and first preliminary economic assessment (PEA). The technical report was posted on SEDAR on Aug. 8, 2011, and announced by the company earlier in its June 23, 2011, news release. There were no changes between the June 23 news release announcing the NI 43-101/PEA and the final report posted to SEDAR on Aug. 8, 2011. The Howe report, which incorporated all of Northern Gold's 2010 drill program and five holes from its 2011 program, increased the indicated category resource to 24.9 million tonnes at a grade of 0.9 gram per tonne for a total of 720,000 ounces of gold. This represents an increase of 576,000 ounces in the indicated category over the first Garrcon resource estimate posted on SEDAR on Nov. 5, 2010.

The overall favourable results from the Garrcon deposit drilling, as demonstrated by the resources and PEA contained in the Howe report, provided the company with the confidence to expand its drilling program at this time. The RC rig will be utilized in infill drilling, providing faster drilling rates (estimated 100 m/shift versus 30 m/shift for DD work) and a much larger sample size (a portion of which will be used for assaying and the remainder of which will be stored and used for bulk metallurgical testing at a later date). Hole twinning and statistical analysis of the RC assays versus DD assays will be part of the quality assurance/quality control work to confirm comparability and confidence in the RC infill drilling program.

The company is planning to use two DD rigs and one RC rig to continue infill drilling and expanding resources along strike and to depths of between 300 and 400 metres within the existing resource footprint. The additional two DD rigs will be used for eastern step-out drilling along strike beginning this month. To the east of the resource footprint Northern Gold has stripped three additional areas this summer to expose more outcrops of the fine-grained metasediments that closely resemble the rocks hosting the Garrcon deposit. These newly uncovered rocks also contain stockwork quartz veining similar to that observed within the resource footprint. Visible gold has been observed in some of these stockwork-type quartz veins. Grab samples from some of the veins assayed from less than a gram to more than 15 grams, which is another similarity of the new areas with the rocks and mineralization hosting the Garrcon deposit. The rocks underlying much of the company's Linton claim group at the east end of the Garrcon group also appear to be the same fine-grained metasediments hosting stockwork-type quartz veins from which prior operators reported anomalous gold values in earlier drill holes. Although at this time, there is no confirmed continuity of mineralization from the Garrcon deposit eastward and grab samples and historical assays should not be relied upon as definitive proof of continuity of gold mineralization. The planned step-out drilling will test several targets along 1.5 kilometres of eastern strike extension, from the eastern edge of the Garrcon deposit resource footprint to the eastern edge of the Linton property boundary looking to establish the extent, and possible continuity of gold mineralization.

Major Drilling International Ltd. will continue drilling on the property with the two drills that have been on site since Northern Gold resumed drilling in May of 2010. Asinii Drilling of Notre-Dame-Du-Nord, Que., has been awarded the drilling contract for the two additional diamond drills and the RC rig.

The technical aspects of this news release have been reviewed by Michael Gross, MS, PGeol, vice-president of exploration for Northern Gold, who is the qualified person as defined by NI 43-101 for this project.

We seek Safe Harbor.

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