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NioGold Mining Corp (NOX.V) - continues to produce intriguing gold assays
Comment by Objective Capital , Feb 06, 2009
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Niogold continues to produce intriguing gold assays from its properties in the Malartic gold camp of western Quebec. This week, the company announced assays from eleven drill holes completed during the 2008 season on the Marban West Extension property. Seven holes yielded noteworthy gold values, led by hole MB-08-091, which produced 11.60 grams of gold over 1.1 metres, and a broader, somewhat deeper zone that produced 2.48 grams of gold over 21.7 metres.
Drill hole MB-08-085 produced 7.20 grams of gold per tonne over a 4.8-metre interval, contained within a 100.8-metre zone that averaged 0.79 gram of gold per tonne. Five other drill holes yielded between 6.25 grams and 10.71 grams of gold per tonne over intervals measuring between 1.1 metres and 1.3 metres in width. Two tests produced assays averaging 3.5 grams of gold per tonne over intervals of 1.0 to 2.4 metres and the final hole failed to intersect significant quantities of gold.
In late January, Niogold produced assays from five holed drilled in the 2008 programme in the area surrounding the Marban mine. Hole MB-08-078 produced 1.78 grams of gold per tonne over 47.4 metres, with higher-grade interval embedded, including a 1.0-metre interval that yielded 42.8 grams of gold per tonne. A second hole, MB-08-080, produced 26.7 grams of gold per tonne over 1.2 metres and a third test, MB-08-081, produced 17.72 grams of gold per tonne over 4.3 metres.
Objective's view:
Niogold has now completed 90 holes into its Marban project since late in 2006 and assays indicate the mineralised zone at Marban is significantly larger than previously believed. At least ten easterly-striking, moderately-dipping mineralised zones are present within an area measuring 1,200 metres long and 350 metres wide, including three newly-recognised features to the north of, and above, the Marban mine.
The latest assays continue to support our base-case valuation for the Marban project and Niogold, albeit within these currently pessimistic times. Also supporting our valuation is Niogold's intention to continue exploration in 2009, commencing with a drill programme in the first quarter designed to test the eastern and vertical extents of the Marban gold system. The work is expected to lead to a formal resource estimate later this year.
