NSGold reports additional results from Cheticamp Property

BEDFORD, NS, Dec. 20, 2012 /CNW/ - NSGold Corporation (TSXV: NSX) is pleased to announce that it has obtained promising results on two more of its seven exploration licenses in the Cheticamp area of Nova Scotia.

Sampling from the Mountain Top Mine area, known to host at least 12 mineralized showings, returned significant values from quartz-sericite schist taken from two of these sites as detailed in the table below:

Sample #	Gold (g/tonne)	Silver (g/tonne)	Copper (%)	Lead (%)	Zinc (%)
806253	4.73	23.2	0.10	0.39	4.62
806263	3.39	138.0	0.72	6.94	1.03

Amax Minerals Exploration Limited ("Amax") in 1979 reported sampling of boulders of massive galena in several locations on this property that returned assay values up to 1,334 grams per tonne silver, 42.3% lead and 8% zinc. Amax also reported sampling of boulders of massive arsenopyrite that returned assay values up to 4.11 grams per tonne gold, 160.4 grams per tonne silver, 1.27% lead and 1.77% zinc. Significant gold, silver and copper values have been reported by other companies that have explored elsewhere on the property. The source of this mineralization has yet to be found.  A number of soil geochemical and geophysical (EM) anomalies remain either untested or under-explored.

NSGold also recently collected rock samples from another area of its Cheticamp Project known as the Core Shack Showing.  In particular three samples taken from mineralized quartz-sericite schist returned significant values as detailed in the table below:

Sample #	Gold (g/tonne)	Silver (g/tonne)	Copper (g/tonne)	Lead (%)	Zinc (%)
806277	5.49	15.2	0.19	0.27	2.53
806278	3.74	86.0	0.15	0.62	0.51
806279	3.94	9.9	0.02	0.05	0.29

Amax carried out a limited drill program at the Core Shack area in 1979 with the best reported drill intercept being 4.11 gram per tonne gold, 40.8 g per tonne silver, 1.76% lead and 2.39% zinc over 4.5 meters. The limits of this mineralization have not been adequately explored.

NSGold previously reported significant precious and base metal results from rock samples taken from two other of its Cheticamp exploration licenses, Fisset Brook and Rocky Brook (see NSGold news release dated August 1, 2012).

NSGold Chief Executive Officer, Glenn Holmes, commented;

"These latest sampling results, together with those reported in August 2012, demonstrate the potential for the Cheticamp land package to host a significant combined precious and base metal deposit.    NSGold intends to complete a thorough review the historic exploration results with the view of designing a follow on exploration program for the New Year."

At the Cheticamp Property base metal and precious metal mineralization occurs in an altered meta-sedimentary sequence (mainly quartz-sericite schist with some chlorite schist) within altered volcanics. Numerous additional showings, as well as two former producing mines (the Galena Lead/Zinc Mine and the Mountain Top Copper/Gold Mine), occur on nearby claims, also owned by NSGold, in a similar geological environment. NSGold has excellent claim coverage in these areas.

The rocks of the Cheticamp Highlands region are of the Aspy Terrane which correlates with the Gander and Dunnage Zones of Newfoundland, host to the Buchans area deposits, and the Miramichi Zone of north-central New Brunswick, host to the Bathurst area deposits.

Mooseland Gold Project

NSGold also announces that it has completed the Fall 2012 drilling program at its wholly-owned Mooseland Gold Project located in Halifax County, Nova Scotia. This program was partially funded with a Mineral Incentive Program grant from the Nova Scotia Department of Natural Resources

A total of 15 diamond drill holes were completed, including two that encountered old mine workings and were abandoned. Drill hole depths ranged from 66 to 80 meters and all encountered multiple zones of quartz bearing argillites that contained varying amounts of arsenopyrite, both in and around the quartz veins. Logging of the core is now complete and core samples are being sent to Laboratoire Expert Inc. in Rouyn-Noranda for analysis.

The purpose of the Fall 2012 drill program was to obtain additional data for the near surface gold mineralization for purposes of evaluating the potential for open pit mining of the West Zone.  The West Zone has been previously drill tested at depth and extends along strike approximately 1,000 meters, however, past drilling campaigns (110 holes totaling 29,000 meters) were not designed to target the gold bearing veins within 75 meters from the surface.  The Mooseland gold deposit occurs within a typical Meguma structure with steeply dipping limbs. The gold bearing quartz veins at Mooseland occur on both limbs of the fold with similar widths and grades.  Of particular significance from a potential open-pit mining perspective is the relatively shallow depth (generally 0.5-1.5 meters) of overburden covering the West Zone deposit and the geometry of the near surface saddle veins.

Qualified Person

Perry MacKinnon P. Geo., Chief Geologist, for NSGold, a qualified person as defined by National Instrument 43-101 has reviewed the information provided in this news release.

About NSGold

NSGold Corporation is a mineral exploration company actively exploring for gold in Nova Scotia, Canada. NSGold's principal property is the Mooseland Gold Property. NSGold's shares are listed on the TSX Venture Exchange under the symbol NSX.

Forward-Looking Statements

This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation.  Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of NSGold Corporation ("NSGold"), or the assumptions underlying any of the foregoing.  In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements.  Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved.  No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that NSGold or its shareholders will derive.  Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond NSGold's control.  These risks, uncertainties and assumptions include, but are not limited to, those described under "Risks and Uncertainties" in NSGold's Management Discussion and Analysis for the Year ended December 31, 2011, which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements.  NSGold does not intend, nor does NSGold undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

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

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