NSGOLD COMPLETES SURFACE DRILLING ON THE WEST ZONE AT MOOSELAND GOLD PROJECT

VANCOUVER, Oct. 21 /CNW/ - NSGold Corporation (NSX : TSXV) is pleased to announce that the Phase 1 surface  drilling on the West Zone of its wholly owned Mooseland Gold project in Halifax County, Nova Scotia has been completed.  The drill rig is now being relocated to the East Zone and is expected to commence drilling later this week.

Phase 1 Drill Program - West Zone

A total of thirteen (13) diamond drill holes have been completed on the West Zone for a total of 3,596 meters.  Two of these holes (NSG 12-10 and NSG 13-10) are twins of 1988-89 drill holes to verify the previous results obtained. These drill holes were selected in consultation with MineTech International of Halifax, Nova Scotia.  Samples for the first 6 holes have been shipped to Laboratoire Expert of Rouyn - Noranda and assay results are pending.

Of particular significance are that three (3) of the drill holes intersected substantial quartz saddle structures; NSG 4-10 with 12.6 meters and 6.4 m, NSG 6-10 with 10.5 meters and NSG 7-10  with 22 meters of 50% quartz veining.  These intercepts are interpreted as sections of the same vein approaching the crest of the fold or saddle. Such thickness has not been seen in any of the previous drilling programs and represents a potential large tonnage target.  Several flakes of visible gold (VG) were observed in the cores of holes NSG 4-10 and NSG 7-10.

Of further significance are the reports that visible gold (VG) was observed in most of the drill holes logged to date and that all holes intercepted significant vein systems.  Hans van Hoof, Chairman and CEO of NSGold commented;

"I'm extremely pleased with the progress of the Mooseland drilling program thus far and in particular with the extent of quartz structures by holes NSG 4-10, 6-10 and 7-10 and the potential they represent.  These widths exceed anything reported in the historic drilling."

"We already knew that we had a great deposit because of the extensive work of our predecessors, however, the additional data being gained in the current drilling phase shows we are definitely on the right track towards establishing a case for future gold production at Mooseland."

"I'm looking forward to reporting the gold assays from the initial holes in the coming weeks."

The objective of this Phase 1 drilling program is to confirm and expand the resources defined by earlier work executed by a joint venture consisting Hecla Mines and Acadian Mineral Ventures in 1988-89 and by Azure Resources in 2002-03. This program targets the mineralization on the western flank Tangier Fault system and is part of a more comprehensive program intended to define the Mooseland resource in preparation for future development. Drilling on a similar program is expected to begin on the larger (1,500 to 2,000 m strike length) East Zone of Mooseland this week.

The Mooseland deposit consists of a series of bedding parallel quartz veins and associated sulfides hosted within a sharp nosed steeply dipping anticline.  The geometry of this structure is that of an inverted "V", striking 1,000 meters along an East - West trend.  The thickness of the individual veins within the structure ranges from 0.1 to 10 meters. The 11 new drill holes cover an area of approximately 200 meters along strike ,with the deepest hole (NSG 10-10) being 350 meters.  This represents only a small fraction of the West Zone but is located in an area that was until now under explored.

Assaying and Quality Control

Core assays are performed on core split on site using a hydraulic core splitter, with standard fire assay procedures and atomic absorption finish. Where indicated by the presence of visible gold or sulfides, testing is performed on screened metallics. Certified reference material, duplicates and blanks, are inserted in the sample sequence for quality control. Assay checking on pulp and coarse rejects are carried out on approximately 10% of samples.  Primary exploration assaying is being performed by Laboratoire Expert at their Rouyn - Noranda laboratory.  Umpire assays will be performed at the ALS Chemex lab in Val d'Or.

Drill hole planning, implementation and the quality control program is being supervised by Perry MacKinnon  P. Geo., Chief Geologist, a qualified person as defined by National Instrument 43-101 in conjunction with MineTech International Inc of Halifax NS.

The information provided in this press release has been reviewed and approved by Qualified Person, Perry MacKinnon, P. Geo.

About NSGold

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.

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For further information:

Glenn A. Holmes
Chief Financial Officer, NSGold Corporation
[phone]
[email protected]