NioGold Mining Corporation (TSX: NOX) Advances Marban and Malartic Gold Projects on Historic Gold-Rich Cadillac Belt in Quebec

By Dr. Allen Alper
on 1/29/2014

Dale Paruk, Vice-President of Corporate Development, Mike Iverson, President and CEO and Yan Ducharme, Vice-President of Exploration for NioGold Mining Corporation (TSX: NOX)

Yan Ducharme, Vice-President of Exploration for NioGold Mining Corporation (TSX: NOX), took time to speak with Metals News at the recently held Cambridge Resource and Investment Conference in Vancouver about the progress they are making at the Marban and Malartic projects in Quebec.

Mr. Ducharme said, “We have started our 2014 exploration program and with the money we have we are aiming to drill 10,000 meters and will re-sample 2000 meters.” The company is interested in re-sampling some of the previously drilled holes in the Gold Hawk zone to bring it to readiness for a resource estimate. Said Ducharme, “The program is to investigate some targets that we have been sitting on for a while.” The work NioGold completed in the last three years has moved the Marban Block forward significantly. Ducharme said, “We have done a lot of work on the Marban block which is now at 1.53 million ounces of measured and indicated gold resources and 0.6 million ounces of inferred gold resource.” These results have increased the size of the resource from the original findings in a way that positions the company for future growth. Said Ducharme, “We have more than doubled the resource with our partnership with Aurizon.”

Now that Aurizon Mines (bought by Hecla Mining in 2013) is no longer involved in the project, NioGold Mining has retained 100% control of the Marban Block. Ducharme said, “At NioGold, we are redoubling our effort to find the resources that are available in this historical district. We are still looking to increase the resources on the Marban Block property and in the area immediately around it. Last year, we drilled the North zone, completed some infill drilling on the Kierens deposit and also tested the area between the Kierens and Norlartic deposit.”

Ultimately, the company has a strategic plan about how developing the property. Said Ducharme, “We are looking for satellite zones to the three main deposits. We also want to investigate some other targets.” To increase their understanding of the surroundings of the deposits, the company has proceeded with an aggressive drill program. Ducharme said, “We have drilled many holes to assess the location of the Norlartic deposits southeastern extension. We have a strike length of 1200 meters. We want to find the next place on that trend to define a resource.”

NioGold is also looking at targets on their other properties in the same area, notably the Malartic Block and at the Malartic H property. Mr. Ducharme said, “These properties contain targets that are near surface and we want to drill them. We have gold showings in the hinges of a Z-shaped fold and we need more drilling to understand the geometry of the gold bearing structures. In the past, we have drilled in this area and the drilling program was successful.” Ducharme said, “We drilled in one of the hinges and obtained 0.90 g/t over 54.5 metres and 5.42 g/t over 5.7 metres. These results are near surface.”

NioGold is also using all the available historical data to help pinpoint drilling targets. Said Ducharme, “For example, for the Audet zone, we have data from 1937 up to the early nineties and it seems that there are two parallel auriferous trends in the area. We want to drill those trends to get more knowledge of the gold system and to see if we can develop a resource on it.”

Part of the company’s success is due to their location in Quebec, known for the vast gold resources. Said Ducharme, “The eastern Abitibi region right now is very active.” This mining-friendly jurisdiction of Quebec is a major hub for mining exploration and production with rich resources. Said Ducharme, “Our properties are along the Cadillac break fault deformation. The map is dotted with past producing mines and current mines.” Ducharme is convinced that they have one of the best opportunities in the region with their multiple properties and deposits that are quickly expanding. Mr. Ducharme said, “Of the projects with a resource, we have one of the best locations.” Ducharme said that their deposit is a perfect target for other mining companies to consider. He said, “We are located at 15 minutes west of Val d’Or and could partner with a local producer where ore could be shipped by truck or train to any of the several nearby mills.” Potential buyers will appreciate the infrastructure nearby. Said Ducharme, “The Marban Block has excellent infrastructure with road, railway, power and an experienced labor force all readily at hand.”

Dale Paruk, Vice-President of Corporate Development, added that he believes the company has not been viewed by the market for the amount of resources already outlined. He said, “NioGold is quite undervalued. The market cap is under $20 million, but we have more than 2 million ounces of gold and $4 million dollars in the bank. There is tremendous potential for growth.” Mr. Paruk believes that potential investors will appreciate the amount of work that is planned for this year and the changes that are coming in the region with the market picking up. He said, “We are starting a new drill program and we will have lots of news this year.”

Part of that news will come from other companies in the area. Dale said, “A couple of days ago Goldcorp Inc. made an offer to purchase Osisko Mining Corp. which is across the highway from us. This shows that there is a lot of interest in the sector and our region.”

The increased interest in resources in the area plus their financial position and plans for 2014 make NioGold an interesting story to investigate. Said Mr. Paruk, “We have almost $4 million in the bank, and we will be drilling about 10,000 meters this year.”

Disclosure:

The Alper family owns NioGold stock.

http://www.niogold.com/

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Investor Relations
Dale Paruk, Vice President Corporate Development

T: +1.604.662.4505
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