Imwauna Gold Project
The Imwauna project is located within the Normanby Property, southeast Papua New Guinea. NGG has transferred 50% of its interest in the Imwauna (EL 1091) and Sehulea (EL 1069) projects to NMC Mining Corp (Normanby). Normanby, currently, under an Option Agreement, can earn that 50% interest in EL's 1069 and 1091 after completing exploration expenditures of CAD$8 million. NGG has been issued shares in Normanby equivalent to 45% of the outstanding capital of Normanby: NGG’s ownership of Normanby will be reduced to zero when the CAD$8m expenditures have been completed. (NGG will retain it’s 50% direct interest)
The Imwauna project contains defined gold mineralization scattered over approximately 10 square kilometres, and occurs in the same geological zone and is along structural trend from Placer Dome’s former Misima Mine (5 million ounces of gold).
Based on 138 drill holes, the Imwauna Inferred Mineral Resource is, at present, 1,800,000 tonnes at 12.2g/t gold and 20g/t silver for contained metal 706,000 ozs gold and 1,160,000 ozs silver (see Independent NI 43-101 report dated July 2008.)
The resource commences at ground surface and has been defined to varying depths between 50 and 150m below surface. High grade bonanza zones have been defined. The resource is open in most directions and drilling in 2009 is aimed at expanding the initial resource, Drill targets have been defined at depth below the limits of present drill holes.
A Preliminary Assessment / Definitive Feasibility Study was lodged in Papua New Guinea at Mineral Resources Authority on 19th April 2010. This study is not NI 43-101 compliant and is classified as a Preliminary Assessment Study under Canadian Corporate Law.
The study concludes that further evaluation work is required prior to completing a Bankable Feasibility Study, a 'Decision to Mine' and the application for a Mining Lease.
Planning commenced for underground exploration to confirm mining characteristics and grade. This work could commence in Third Quarter 2010. Also commenced excavator trenching along the “line” of the vein system. Previously had trenched every 25m – we will reopen and resample these trenches (dug in 1998). In addition, in higher grade areas we will dig intervening trenches every 12.5m. The trench results will give accurate information on the surface mineralisation and help plan an open pit.
Plan to commence diamond core drilling in early 2010 in the southern high grade area to provide more detailed information on this zone, plus samples for metallurgical testing.
Readers are advised to refer to the Press Release and Technical Report Sections of this web-site for complete information including detailed drill and trench results.