Press Release For immediate distribution
Vancouver, British Columbia – July 12, 2010 -NSGold Corporation (NSX : TSXV) is pleased to announce that its common shares commenced trading on the TSX Venture Exchange on June 30, 2010 under the stock symbol “NSX”.
NSGold recently completed a private placement, raising gross proceeds of $4.1 million (see news release dated June 23, 2010). NSGold will use the proceeds from the private placement to fund the acquisition, exploration and development of NSGold’s flagship property, the Mooseland Gold Project in Nova Scotia, and for general corporate purposes.
There are currently 30,105,871 common shares of NSGold issued and outstanding, of which 11,700,000 shares are held in escrow in accordance with the policies of the TSX Venture Exchange.
The NSGold management team is led by Hans van Hoof, President and Chief Executive Officer, and Glenn Holmes, Vice-President and Chief Financial Officer.
Hans van Hoof is a past Chairman and Senior Executive Officer of Soros Funds Limited in London. Mr. van Hoof has also held senior positions at various European financial institutions, including PVF Pension Funds, Paribas Capital Markets and Bankers Trust. His roles during the past 22 years include Deputy Head of global equity derivatives, Managing Director responsible for M&A arbitrage, derivatives arbitrage and venture capital investments. In 2002, Mr. van Hoof founded VHC Partners alternative investment management group, active in hedge fund management, corporate and project finance advisory services, private equity investments and charitable projects.
Glenn Holmes is a mining executive with more than 23 years’ experience in the financial management of listed mining companies. Mr. Holmes’ work experience includes structured project debt financings, corporate acquisitions, mining feasibility studies and financial restructurings. Mr. Holmes joined NovaGold Resources Inc. (TSX -NG) in 1987 as Corporate Controller and was subsequently appointed Vice-President, Finance and Secretary-Treasurer. Most recently, Mr. Holmes was Chief Financial Officer and Vice-President Finance of Etruscan Resources Inc. (TSX – EET).
Mooseland Gold Project
NSGold’s flagship property is the Mooseland Gold Project, which consists of 51 mining claims totaling 954 hectares in Halifax County, Nova Scotia. The first recorded gold discovery in Nova Scotia was made at Mooseland in 1858, and the property recorded total historical production from 1863 to 1934 of 3,865 ounces of gold recovered from 9,058 tons of crushed material (J. Bates, 1982). More recently, Mooseland was the target of a succession of focused exploration programs by Hecla Mining Company of Canada and Acadia Mineral Ventures, Ltd. (1987-1992) and Azure Resources Corp. (2003-2004). These companies completed a total of 36,858 metres of diamond drilling on Mooseland. Mining infrastructure on the Mooseland property includes a three-compartment shaft sunk to a depth of 125 metres complete with a steel head frame and a ramp to a depth of 50 metres.
A total of 36,858 meters of diamond drilling has been completed on the Mooseland property. Several historical resource and reserve estimates have been produced for the Mooseland gold deposit over the past 30 years. As set out in the following table, which is extracted from a 43101 Technical Report on the Mooseland Gold Property dated April 8, 2010, prepared by Douglas Roy, M.A.Sc., P. Eng. of Minetech International Limited (a “Qualified Person” under National Instrument 43-101), this drilling and associated work identified historical reserves of 640,000 tons grading 0.47 ounces per ton (un-cut) or 16 grams per metric tonne in two separate zones (East Zone and West Zone). This historical reserve estimate for the Mooseland property was prepared by Kopp for Hecla Mining in 1988 (internal report) and is based on gold-bearing drill intersections diluted to minimum mining widths of five feet (1.51 meters). The arithmetic value of the grades and tonnages as determined by Kopp in 1988 is equivalent to approximately 307,000 ounces.
The above gold resource estimates are historic in nature and were compiled before National Instrument 43-101 Standards of Disclosure for Mineral Projects came into effect. The resource estimates have not been verified by an independent “Qualified Person” and are presented for information purposes only. They are not compliant with NI 43-101 and should not be relied upon. Moreover, work required to verify and classify the historical resource estimates as current mineral resources or mineral reserves in accordance with NI 43-101 has not been carried out by NSGold Corporation and NSGold is not treating these estimates as current mineral resources or mineral reserves, as defined in sections 1.2 and 1.3 of NI 43-101. Finally, NSGold does not make any representations or warranties as to the accuracy of the historical resource estimates.
NSGold plans to commence a Phase 1 exploration program later this summer that will focus on obtaining data necessary to verify and classify the historical resource estimate pursuant to NI 43-101. This program is budgeted at $2 million and includes (i) developing the decline to 160 metres vertically below surface (about 700 metres laterally) and tying-in with the existing Hecla mine shaft, (ii) surface diamond drilling in the East Zone to determine stratigraphy and structure, (iii) surface and underground diamond drilling in the West Zone, and (iv) metallurgical test work.
NSGold can acquire a 100% interest in the Mooseland Gold Project and five early-stage properties described below by making three payments to Globex Mining Enterprises Inc. (TSX – GMX), each in the amount of $250,000. To date, NSGold has made one payment of $250,000 to Globex. The second payment of $250,000 is due on September 1, 2010, while the final payment of $250,000 must be made by NSGold on the earlier of 30 days after commencement of production on Mooseland or September 1, 2011.
Globex holds a 4% gross metal royalty on all metals produced from the Mooseland Gold Project and the five early-stage properties. In addition, Globex has the right, subject to regulatory approval, to receive a 5% interest in the issued and outstanding share capital of NSGold in the event that any of the Mooseland Gold Project or early-stage properties enters into production.
The option from Globex to NSGold also includes the following five early-stage gold and base-metal exploration properties:
(i) Leipsigate Gold District, Lunenburg County, Nova Scotia;
(ii) Indian Point Gold Project, Lunenburg County, Nova Scotia;
(iii) Blockhouse Gold Project, Lunenburg County, Nova Scotia;
(iv) French River Project, Victoria County, Nova Scotia; and
(v) Cheticamp Project, Inverness County, Nova Scotia.
The first three are former gold-producing properties, each characterized by Meguma-type gold occurrences, while the latter two are gold and base-metal exploration properties.
The technical information in this release in respect of the Mooseland Gold Project has been reviewed by Douglas Roy, M.A.Sc., P.Eng., a Qualified Person as defined in National Instrument 43-101.
NSGold Corporation is a mineral exploration company actively exploring for gold in Nova Scotia, Canada. NSGold’s flagship property is the Mooseland Gold Project. NSGold’s shares are listed on the TSX Venture Exchange under the symbol NSX.
For further information, please contact:
Glenn A. Holmes
Chief Financial Officer,
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.