Vancouver, British Columbia – June 6, 2011- NSGold Corporation (TSXV:NSX) announces plans for an exploration program at its Dios Padre Silver Project located in east central Sonora State, Mexico. NSGold will implement a focused program in two distinct phases, designed to delineate the existence of a possible 60 million ounce silver resource. This program has been recommended by David A. Bending, M.Sc., P.Geo., NSGold’s independent geological consultant, who recently completed a 43-101 Technical Report on the Dios Padre Project. In this report, Mr. Bending comments that “the Dios Padre Project area holds important potential for high grade silver deposits and larger low grade bulk mineable silver and gold – silver deposits.”
Hans van Hoof, Chairman of NSGold commented, “While there has been a significant amount of exploration work and past production at Dios Padre, as referenced in the 43-101 Technical Report, as well as various historical resource estimations, this work pre-dates the implementation of National Instrument 43-101. The good news is that we believe that only a modest drill program is required to develop a 43-101 compliant resource for this exciting project, with an initial target of 60 million ounces of silver. We are immediately commissioning the recommended work program with the objective of having a resource estimation completed later this year. With the recent exercise of warrants, the Company is fully funded to carry out this program.”
“We are also very excited about the associated metals identified in our initial sampling, for which our predecessors carried out no formal assessment. For me, it is this aspect, as well as the potential for new silver zones on the property, which represent a real value-add opportunity for NSGold’s shareholders. We look forward to reporting the results from the upcoming sampling and drilling programs.”
The known prospects are localized in the Dios Padre porphyry and are highlighted on surface by extensive areas of alteration in the surrounding rock. Similar zones have been seen in other areas of the property and are as yet unmapped. These alteration zones show the characteristics commonly associated with a large mineralized system, and are similar to the main Dios Padre breccia or collectively a larger porphyry Copper – Gold target. NSGold believes that either such model on its own merit warrants priority evaluation.
NSGold will proceed with a two-phased exploration program. The Phase I program will establish a base line for subsequent work by delineating the known and potential sources of ore-grade material on the property through mapping and sampling on surface and underground, as well as geophysics and limited drilling. The budget for this program is $700,000. Phase II, which will be predicated on the results of Phase I, is tentatively budgeted at $3 million and will consist of surface and underground drilling targeting the known resource in the Dios Padre Breccia. The objective of Phase II will be to determine the geometry and grade of the primary deposit mineralized area and the potential of several secondary deposits.
Surface Sampling Results
Multiple surface samples were recently taken from different areas of the Dios Padre Property under the supervision of Mr. Bending. The assay results from these samples indicate anomalous silver and gold values occurring over a broad area within the project site. Of particular significance, samples from two long channel samples from the previously-mined Santa Gertrudis Pit yielded silver values of 103 grams per tonne (g/t) silver (3.3 ounces per ton (opt)) and 2.08% lead over 35 meters and 178 g/t silver (5.7 opt) with 3.3% lead over 30 meters respectively. The results from these channel samples, taken in areas considered mined-out by earlier operators, are detailed in the table below. Widths quoted are true widths.
Historically, a succession of mining operations in the mine pit and underground had targeted only high-grade resources. The last efforts, which operated from 1966 through 1972, used a cut off grade of 3 ounces per ton (93.75 g/t) in the pit.
These values are derived from two continuous channel samples and were taken across strike, in the pit wall; one (lower level) 35 meters and the other (upper level) 30 meters in length. This initial sampling program is part of the study to establish benchmarks for NSGold’s upcoming exploration program being supervised by Mr. Bending.
In addition, random samples taken on the upper level assayed 215 g/t (6.9 opt) silver and 0.95% lead, and 150 g/t (4.8 opt) silver and 0.86% lead.
All samples were collected under the supervision of Mr. Bending, M.Sc., P.Geo., and the sealed bags delivered to ALS Minerals’ laboratory in Hermosillo, Mexico. Analysis of the samples was completed by ALS Minerals in Vancouver, Canada.
NI 43-101 Report
The NI 43-101 technical report prepared by Mr. Bending on the Dios Padre Project will be filed on SEDAR within 45 days.
Exercise of Warrants
NSGold also reports that since the end of March 2011, it has received $1.1 million cash from the exercise of warrants.
Perry MacKinnon P. Geo., Chief Geologist of NSGold, has reviewed the information provided in this news release and approved its dissemination.
NSGold Corporation is a mineral exploration company actively exploring for gold in Nova Scotia, Canada and silver in Mexico. NSGold’s principal properties are the Mooseland Gold Property, located in Nova Scotia, and the Dios Padre Property located in the Municipality of Yecora, State of Sonora, Mexico, including the historic Dios Padre Silver Mine located approximately 260 km east of Hermosillo. 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, NSGold Corporation
This news release contains statements that may constitute “forward-looking information” or “forwardlooking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of NSGold Corporation (“NSGold”), or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that NSGold will derive. Forward-looking statements and information are based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond NSGold’s control. These risks, uncertainties and assumptions include, but are not limited to, those described under “Risks and Uncertainties” in NSGold’s Management Discussion and Analysis for the Year ended December 31, 2010, which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. NSGold does not intend, nor does NSGold undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
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