VANCOUVER, Feb. 1 /CNW/ - NSGold Corporation (NSX : TSXV) announced today that it has completed its due diligence and is making
the initial option payment under the option agreement pertaining to two
prospective gold properties located in Nova Scotia. The properties,
Moosehead and Ecum Secum, are located along an anticlinal structure
that is known as a favourable host of gold prospects. The agreement
covers a total of 74 claims encompassing 1,197 hectares.
The Moosehead and Ecum Secum properties are located approximately 25
kilometres east of Sheet Harbour, 5 kilometres apart, along the
Tangier-Harrigan Cove anticlinal structure along which at least two
other former producing gold mines occur. Historic workings from quartz
veins at Ecum Secum have provided local prospectors numerous coarse
gold samples. Several shafts on the Moosehead property, the deepest of
which is 61 metres, identify historic mining efforts, the most recent
of which was in 1915. Underground development at that time yielded a
recorded 509 ounces of gold from 3,408 tons of ore. Bulk samples taken
in the same era reported 0.28 ounces per ton gold from 10.13 tons and
0.2 ounces per ton gold from 12.28 tons of ore. This equates to gold
grades of 9.6 grams per tonne and 6.8 grams per tonne respectively. No
drilling or geophysics has been recorded as being carried out on either
property. NSGold intends to carry out a trenching and drilling program
on these properties in 2011.
NSGold can acquire a 100% interest in the two properties by making
aggregate option payments of $120,000 payable in instalments based on
project milestones over a period of 3 years or until one or both of the
properties is advanced to production. The properties are subject to a
Net Smelter Royalty of 1.5% on commencement of production which is
capped at $1,000,000.
Perry MacKinnon, P.Geo., Chief Geologist for NSGold, a qualified person
as defined by National Instrument 43-101, has reviewed and approved the
information provided in this news release.
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.
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.
SOURCE NSGOLD CORPORATION
For further information:
Glenn A. Holmes
Chief Financial Officer, NSGold Corporation