Northern Gold hits more shallow gold at Garrcon

Vancouver – Northern Gold Mining (NGM-T) has pulled a several long, low-grade and near surface gold intercepts from its Garrison gold property in Northeastern Ontario.

The results come from a 30,000-metre drill program that the company is working through, with a focus on the shallow Garrcon deposit. The 385-hecatre Garrison project sits roughly 100 km east of Timmins in the Abitibi Greenstone belt.

Hole 10-20 hit 255.5 metres grading 0.31 gram gold per tonne from 1.5 metres, hole 10-23 returned 323.3 metres carrying 0.51 gram gold from 6.7 metres, and hole 10-24 intersected 115.8 metres averaging 0.36 gram gold from 4.2 metres.

In November the company released further long, low-grade hits from its drill program. Hole 10-17 returned 212 metres carrying 0.35 gram gold from 1 metre, hole 10-18 cut 219.8 metres averaging 0.69 gram gold (or 0.6 gram gold cut to 30 grams gold) from 6.6 metres, and hole 10-21 intersected 40 metres grading 0.45 gram gold from 10 metres depth.

The company is working through an option agreement to earn 80% of the Garrison property that it entered into in fall 2009. Northern Gold can earn the first 50% by making payments to ValGold Resources (VAL-V) of $1 million and spending $4 million in exploration work over 4 years, and can earn the other 30% by an additional $1 million in payments and $4 million in exploration.

In September Northern Gold, along with ValGold Resources, released the first resource estimate for the Garrcon deposit. The resource stands at 3.78 million indicated tonnes grading 1.2 grams gold for 144,000 contained oz. gold, and a further inferred resource of 18.5 million tonnes grading 0.9 gram gold for 530,000 oz. gold, both using a 0.5 gram gold cut-off.  

The Garrison project also hosts the Jonpol deposit, with four contiguous high-grade mineralized zones. A September 2009 estimate put 250,000 tonnes grading 7.77 grams gold in the indicated category and 1.6 million tonnes grading 4.93 grams gold in the inferred category.

Between 1985 and 1992, Jonpol Explorations drilled more than 80,000 metres, sunk a 184-metre inclined shaft, completed 148 metres of drifting on the 150-metre level of the Main JP zone and carried out a bulk sample of the JP zone.

The Garrcon deposit hosts quartz-pyrite vein stockworks while the Jonpol is a sulphide-rich narrow vein system.

So far Northern Gold has established a resource strike of 760 metres by 275 metres for Garrcon, while it remains open to the east, at depth and possibly to the west.

The company is continuing its drill program on Garrcon through the winter with two diamond drills on-site.

Northern Gold’s share price dipped 3.5¢ on the latest results to close at 31¢. The company has a 52-week share price range between 11¢ and 48¢ and 88.7 million shares outstanding.