Business & Finance
Business and Finance
Business and Finance 
Tue, June 1, 2010
Mon, May 31, 2010
New Guinea Gold Announces Drill Results in Central Oxide Zone Extension at Sinivit Mine in Papua New Guinea
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2010) - New Guinea Gold Corporation ("NGG" or the "Company") (TSX VENTURE:NGG)(FRANKFURT:NG8) is pleased to announce that Reverse Circulation drilling at the northern end of the oxide part of the Western Mineralised "Vein", (Central Oxide Zone - see accompanying diagram), has defined an extension to this zone, not presently included in the pit plan.
Hole CGC 226 intersected 4m at 101g/t gold, within a wider zone of 12m at 36.6g/t gold, from 18m to 30m downhole. The hole terminated in mineralisation at 30m. This outstanding intersection is backed up by adjacent holes with intersections such as 16m at 2.9g/t gold and 12m at 4.6g/t gold. These holes complement the results released on May 19, 2010. Results from all seven holes in this program are listed below:
| Hole No | From (m) | To (m) | Length (m) | Gold (g/t) | Cut off Grade (g/t gold) | Final Depth (m) |
| CGC 225 | 2 | 2 | 12.8 | 1.0 | ||
| 22 | 24* | 2 | 2.72 | 1.0 | 24 | |
| CGC 226 | 2 | 2 | 1.19 | 1.0 | ||
| 18 | 30* | 12 | 36.6 | 1.0 | 30 | |
| including | 18 | 22 | 4 | 101.0 | - | |
| CGC 227 | 4 | 20 | 16 | 2.9 | 1.0 | |
| 26 | 30* | 4 | 1.5 | 1.0 | 30 | |
| CGC 228 | 20 | 22* | 2 | 1.24 | 1.0 | 22 |
| CGC 229 | No results above 1.0g/t | 16 | ||||
| CGC 230 | 12 | 12 | 4.6 | 1.0 | 20 | |
| CGC 231 | 2 | 2 | 2.71 | 1.0 | 14 | |
| * denotes end of hole | ||||||
Note: Some holes were terminated at shallow depths due to poor drilling conditions.
To view the figure associated with this press release, please visit the following link: [ http://media3.marketwire.com/docs/ngg0531fig1.pdf ].
HOLE LOCATION DATA
| Hole ID | Northing (AMG) | Easting (AMG) | RL | Area |
| CGCO225 | 9489024.629 | 394287.370 | 926.311 | Central Oxide – North "West wall" |
| CGCO226 | 9489030.187 | 394295.503 | 926.315 | Central Oxide – North "West wall" |
| CGCO227 | 9489029.738 | 394306.985 | 925.365 | Central Oxide – North "West wall" |
| CGCO228 | 9489022.632 | 394307.681 | 924.926 | Central Oxide – North "West wall" |
| CGCO229 | 9489019.989 | 394304.228 | 924.989 | Central Oxide – North "West wall" |
| CGCO230 | 9489027.017 | 394313.736 | 924.715 | Central Oxide – North "West wall" |
| CGCO231 | 9489019.851 | 394312.874 | 924.427 | Central Oxide – North "West wall" |
| CGCO232 | 9489023.415 | 394319.982 | 924.164 | Central Oxide – North "West wall" |
| CGCO233 | 9489027.150 | 394325.434 | 924.436 | Central Oxide – North "West wall" |
| CGCO234 | 9489026.334 | 394340.142 | 924.585 | Central Oxide – North "West wall" |
| CGCO235 | 9489025.485 | 394331.984 | 924.484 | Central Oxide – North "West wall" |
All RC samples are partly prepared at site by splitting to 500 grams. Further preparation and analysis is completed at accredited laboratory, ALS Chemex laboratories, in Townsville, Queensland, Australia.
Convertible Note
The first part of the Agreement signed with NMC Mining Corporation (NMC) and its PNG subsidiary Normanby Mining PNG Ltd on April 16, 2010, i.e. a loan of CAD$3 million to NGG, is now expected to close early this week. NMC have advised NGG that they expect to close the first tranche of a fund raising early this week and be in a position to pay out the CAD$3 million "Bolder Investment Partners" convertible note (see page 2, MD&A for year ending December 31, 2009) later this week. In the meantime NGG is continuing to pay interest to the note holders until such time as the payout is completed.
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 ("NI") 43-101. Mr McNeil has read and approves the information contained herein.
Full details of Sinivit are described in an Independent NI 43-101 report dated January 2006 which is available at [ www.newguineagold.ca ] and in its recent Press Releases.
For further information on this release or on other NGG projects, please access our website - [ www.newguineagold.ca ].
ON BEHALF OF THE BOARD
R.D.McNeil, CHAIRMAN & CEO
Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of NGG, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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.