New Guinea Gold re-starts exploration at Sinivit and Imwauna

    
    Trading Symbols: TSX-V: NGG
    Frankfurt: NG8.FSE
    Web Site: www.newguineagold.ca
    

VANCOUVER, Feb. 18 /CNW/ - New Guinea Gold Corporation (NGG or the Company) has recommenced exploration at its Sinivit and Imwauna Projects in Papua New Guinea. Exploration expenditure estimates (actual budgets are still to be confirmed by Joint Venture partners) for 2010 are as follows: Sinivit - $2 million; Imwauna - $2.5 million, Sehulea (Weioko) - $1 million. In addition we expect Vangold to spend at least $2 million on its projects in 2010, and Barrick Gold to spend $5 million on the Coppermoly Joint Venture.

    
    SINIVIT EXPLORATION
    -------------------
    Sinivit Exploration can be divided into five parts, Sinivit oxide, Sinivit
sulphide, Kavarsuki, Tellurium and Other.

    -  Sinivit Oxide - We are presently drilling at the northern extension of
       the northern oxide (see recent Press Release for high grade surface
       trench results at Northern Oxide Zone), using NGG's RC drill rig.
       Results should be announced in March. This will be additional
       mineralisation to the original Resource. We are planning a second
       phase of 30m deep RC drilling from the base of the pit, when the pit
       reaches a depth equivalent to the limit of the former RC drilling.
       This work will be carried out over the next 12 months, and will define
       oxide, transitional and sulphide mineralisation directly below the
       pit.

    -  Sinivit Sulphide - Copper, gold, tellurium mineralisation extends to
       depth over a known strike length in excess of a kilometre. To better
       target significant major sulphide concentrations, which is difficult
       to do at present using diamond core drilling, we intend to complete a
       3D Induced Polarisation (IP) survey in April. The IP measurements will
       be recorded for the grid lines shown on the attached plan. Note, the
       mine is in the centre of the plan. Drilling would then test the
       anomalies that have been defined.

       IP is a method whereby conductivity and resistivity of the sub-surface
       rock can be recorded. Sulphides will normally have a higher
       conductivity than surrounding wall rocks and can then be located by
       this method. This method was used successfully at Mt Nakru (see
       Coppermoly releases for details - NGG has a 23% interest in
       Coppermoly).

       The cost of the IP program is estimated at US$100,000.

       To view map, please see the following url:
       http://files.newswire.ca/821/NGGC_Sinivit.pdf

    -  Kavursuki  -  The Kavursuki zone is 1km to 2kms north of the northern
       oxide zone. It represents a possible major addition to the oxide
       resource and in particular a low copper resource. The IP will cover
       this zone as well as Sinivit (see attached plan). Previous exploration
       including substantial bulldozer trenching and twelve diamond drill
       holes for a total advance of 1,258.45m was completed over a distance
       of 900 metres along the Kavursuki Prospect. Significant trenching
       results include the following:

       -  28m at 4.84 g/t Au including 14m @ 7.11 g/t Au
       -  10m at 1.36 g/t Au
       -  8m at 2.1 g/t Au
       -  7m at 1.24 g/t Au

       Historical drill results that intersected significant oxide
       mineralisation are:

                  -----------------------------------------
                              From          Interval  Gold
                   Hole No    (m)    To (m)   (m)    (g/t)
                  -----------------------------------------
                   90KVD003   2.10    3.70    1.60    1.42
                  -----------------------------------------
                   90KVD005   5.35    6.60    1.25   13.45
                  -----------------------------------------
                             30.60   37.40    6.80    1.87
                  -----------------------------------------
                   90KVD007  11.20   17.20    6.00    1.18
                  -----------------------------------------
                   90KVD009  43.15   48.40    5.25    8.04
                  -----------------------------------------

             (See attached figure for trench and drill locations)

       Trenching is well underway to expose the surface of this zone over its
       entire 900m length. RC drilling will follow in April and May.

       The area is rugged, with perhaps 50m vertical extent of the zone
       exposed on hill slopes in some areas.

    -  Tellurium
       ---------
       As noted in a recent Press Release, Tellurium has an attractive
       theoretical in ground, or in vat value at Sinivit, both in the crushed
       oxide mineralisation presently in vats and in the mineralisation yet
       to be mined.

       An extensive sampling program of material in vats, previously drilled
       RC drill holes, diamond core holes and channel sampling in the pits is
       underway to provide a better understanding of the overall tellurium
       content of the system.

       We expect to dispatch samples to an interested buyer in the USA in
       early March for metallurgical testing to determine if the tellurium
       can be economically recovered.

    -  Other Exploration outside Sinivit and Kavarsuki
       -----------------------------------------------
       The Sinivit or Wild Dog structure can be traced for over 10 kms with
       anomalous gold/copper/tellurium.

       The IP survey will cover the area immediately south of the mine.
       Excavator trenching will also be completed over this zone during the
       next half year.

       To view map, please see the following url:
       http://files.newswire.ca/821/NGGC_Sinivit.pdf


    IMWAUNA - 7238550 CANADA LTD JOINT VENTURE
    ------------------------------------------
    

The "Feasibility Study", required by the PNG Government for the Imwauna Project is well underway (will not be a compliant NI 43-101 report) and should be completed by late March 2010.

We have commenced planning for underground exploration to confirm mining characteristics and grade. This work could commence in Third Quarter 2010. We have also commenced excavator trenching along the "line" of the vein system. We previously had trenched every 25m - we will reopen and resample these trenches (dug in 1998). In addition, in higher grade areas we will dig intervening trenches every 12.5m. The trench results will give accurate information on the surface mineralisation and help plan an open pit.

We plan to commence diamond core drilling in the near future in the southern high grade area to provide more detailed information on this zone, plus samples for metallurgical testing. The above results should become available from early April.

Our Joint Venture Partner, 7238550 Canada Ltd, will provide CAD$200,000 to NGG early in March, to cover the cost of the "Feasibility Study", and will reimburse the exploration costs for the exploration presently being carried out after EL 1091 is renewed by the PNG Government, which is expected in late April/early May 2010.

Weioko (EL 1069 Sehulea) has now been included in this joint venture with work commitment for both Imwauna and Weioko increased to CAD$8 million in total.

    
    VANGOLD
    -------
    

Vangold have approved a CAD$230,000 program for Mt Penck which will commence in March. The camp will be constructed; a detailed survey of all drill holes, trenches, etc plus a new exploration grid will be completed; an IP survey will be completed in late April/May 2010, followed by geochemical sampling of the extended grid and trenches.

The above surveys are expected to define major drill targets additional to Kavola South. Drilling could commence as early as May 2010.

We are also planning IP surveys for parts of Fergusson and Allemata licences.

Vangold will advance NGG CAD$100,000 by the end of February to allow the above work program to commence.

    
    COPPERMOLY
    ----------
    

A recent Press Release summarises the Coppermoly position. Barrick are expected to commence drilling about April 2010.

    
    GOLD ANOMALY LIMITED
    --------------------
    

A recent Press Release summarises the work in progress at Crater Mountain. Gold Anomaly have agreed we can release their ASX Releases as our Press Release, using their Q.P. to authorise the exploration results.

The information in this release was prepared under the direction of Robert D. McNeil a Fellow of the Australasian Institute of Mining and Metallurgy and a "qualified person" as defined by National Instrument 43-101. Mr McNeil has read and approves the information contained herein.

Full details of the Sinivit Mine are described in an Independent N1 43-101 report dated January 2006 which is available at www.newguineagold.ca and in its recent Press Releases.

    
    ON BEHALF OF THE BOARD

    R.D.McNeil
    CHAIRMAN & CEO
    

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.

%SEDAR: 00004817E

SOURCE NEW GUINEA GOLD CORPORATION

For further information: For further information: on this release or on other NGG projects such as the Sinivit Gold Mine, contact Forbes West toll free at (888) 655-5532, email forbes@sherbournegroup.ca or Judith O'Quinn at (604) 662-3598, email ngg@telus.net or access our website - www.newguineagold.ca

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