Midas LetterNioGold Progresses Towards 1 Million Ounces Gold
By James West
MidasLetter.com
Friday, Novemeber 13, 2009
Sharesof NioGold Mining Corp (TSX.V:NOX) have doubled since January of thisyear, and the company’s recently announced plans to explore some newclaims in a joint venture with Alexandria Minerals could see heightenedinterest in the company.
The four claims lie within the area of influence governed bythe option and joint venture agreement between NioGold and Alexandria,on which NioGold is earning a 50-per-cent interest in the 93 claimsconsisting of Alexandria's Siscoe East property, which lies between andaround the past-producing Siscoe and Sullivan mines. Alexandria willmeet its commitment to maintain its 50-per-cent interest in theseclaims by paying to NioGold $15,000 cash and 120,000 shares ofAlexandria treasury stock.
The newly added claims surround the Sullivan mine property,which produced approximately 1.2 million ounces of gold during the1900s from five veins which trend northwest onto the joint venture’sproperty, 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 byNiogold, drill hole SE-09-004 intersected 43.67 g/t Au over 1.3 m at412 m downhole, interpreted as a possible northwest extension of theSullivan zone.
NioGold controls a large land package in the famed Abitibi goldregion in Canada, a stone’s throw from Osisko Mining’s CanadianMalartic Project, which contains 6.28 million ounces plus an indicatedresource of 1.4 million ounces and an inferred resource (including theBarnat deposit) of 2.75 million ounces.
The Malartic Gold Camp and the Abitibi District
ProbablyCanada’s second most famous mining district after Red Lake, Ontario,the Abitibi gold district has so far yielded over 170 million ounces ofgold.
Within the Abitibi district the Cadillac, Malartic and Vald’Or camps have produced 45 million ounces, and there are 15 millionmore in reserve. NioGold has united the ground containing 4past-producing gold mines into a 115 square kilometer land package thatcreates the opportunity to systematically explore the underlyinggeophysical geological stratigraphy that controls mineral depositionthroughout the belt, and develop an efficient strategy to approach themassive land position as a potential major new mine.
In 2007, Mine Development Associates calculated a NI43-101-compliant mineral resource for the Kierens and Norlarticdeposits. The two nearby ore bodies contain an estimated 342,000 ouncesof gold, based on a largely inferred resource of 3.94 million tonnes,averaging 2.7 grams of gold per tonne. This resource remains open atdepth. Historic resource calculations exist for the North deposit, andfor the Gold Hawk and North-North deposits.
During the 2008 exploration season, NioGold drilled 67 holesfor a total of 24,718 metres, 98% of which was concentrated in andaround the historic Marban Mine. These drill results have significantlyincreased this resource. A new NI 43-101 report that will upgrade thesize 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 longerintercepts of lower grade mineralization is consistent with the geologyof the largest producing mines in the area. Although the widths aregenerally narrow, the abundant access provided by the previous minesdrifts and adits means a much lower cost and shorter timeline toproduction startup.
Since 2006, NioGold has completed over 45,000 meters ofdrilling on the Marban property, spending a total of $7 million onexploration. NioGold’s goal for the next two years is to doubledrilling to 100,000 meters and define 2,000,000 oz. gold.
Camflo West Property
NioGold’s portfolio of advancedexploration targets includes the Camflo West property which liesimmediately northwest of the Marban Block. The Camflo mine, twokilometers to the southeast of the Marban Block, produced 1.9 millionounces of gold during its productive years and was the catalyst to helpBarrick fund its Nevada gold property acquisitions. A historicnon-43-101 compliant resource calculation estimates 23,000 ounces stillpresent in the Audet zone.
Minor exploration of the Camflo property continues to turn uppromising grades, though a more thorough drill program will be requiredto significantly expand or establish any 43-101 compliant resource.NioGold’s drilling has allowed for a revised geologic interpretationthat indicates a significant folding of the Norbenite fault occurs inthis area, resulting in additional fracturing and fluid movement thathas potential for additional gold dissemination. So Camflo West is moreor less an ace up the exploration sleeve for NioGold.
Visit NioGold online at https://www.niogold.com.
SOURCE:
https://www.midasletter.com/news/09111301_NioGold-progresses-towards-1-million-ounces-gold.php