Imwauna Gold Project (100% NGG)

The Imwauna project is located within the Normanby Property, southeast Papua New Guinea. In September  2009 , NGG entered into an Option Agreement with a Private Company giving the Private Company the right to acquire a 50% legal and beneficial interest in the Normanby's (EL 1091) Imwauna property for a series of cash payments totalling $1 million , plus the purchase by way of Private Placement of $1 million worth of New Guinea Gold common shares. In addition, the Private Company must complete exploration expenditures totalling a minimum of $5 million over two years.

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/Feasibility Study is in progress in 2009.

Subject to a positive result from that study, mine construction could commence in late 2010 with a possible gold production of the order of 50,000 to 100,000 ozs/year in 2011.  The resource is likely to be largely open pittable and free-milling.. The viability of this possible production including the capital cost of the project, will be indicated in the Preliminary Assessment Study. Alternatively NGG will be well placed to receive a favourable acquisition offer.

Bob McNeil Chairman and CEO commented: “Imwauna is a very exciting project for NGG and management regards it as the Company’s premier project.  It has significant advantages of being relatively high grade especially for possible open pit mining, and mineralisation commences at surface. In addition the potential to increase resources is excellent.  As noted above, the viability of the project and likely production rate depends on the outcome of the Preliminary Assessment”.

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.

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