NioGold Mining Corp continues to generate encouraging assays from its Marban Block property in northwestern Quebec. The company has assays from seven new holes completed during its 2008 drill programme on the property. Two holes each encountered the near-surface wedge zone and the dip extension of the Mine zone. Four tests intersected a new high-grade mineralised zone within the Hanging Wall Ultramafic zone, located above and north of the Wedge zone.
The one test of the Wedge zone yielded 6.14 grams of gold per tonne over a 2.4-metre interval, and the one Mine zone hole produced 7.65 grams of gold over 4.6 metres, within a broad 73.4-metre interval averaging 1.06 grams of gold per tonne.
NioGold's assays from the Hanging Wall Ultramafic zone include 31.68 grams of gold per tonne over 2.2 metres, 18.11 grams of gold over 3.7 metres and 16.6 grams of gold over 1.2 metres, all at core length depths of less than 100 metres. The holes were drilled perpendicular to the structural trend and NioGold believes its intervals are close to true width values.
One of the seven holes failed to yield significant gold values.
Objective's view:
NioGold's drilling continues to demonstrate the potential for the Marban Block property to host high-grade gold mineralisation, potentially of economic interest. We view the latest results as continuing to support our base-case valuation of the project and NioGold in these clearly pessimistic times.
