TORONTO, ONTARIO -- (Marketwire) -- 01/31/13 -- NORTHERN GOLD MINING INC. (TSX VENTURE: NGM) ("Northern Gold" or the "Company") is pleased to announce that it has entered into two mining claim acquisition agreements pursuant to which Northern Gold can acquire a 100% interest in a significant mining claim located in Garrison Township, Ontario (the "Garrison Claim") and an 80% interest in one lease ("CLM352") comprised of a block of eleven (11) mining claims located in Harker Township, Ontario. The acquisition of the Garrison Claim and CLM352 increases Northern Gold's expanding land package to a total of approximately 50,175 acres in the Larder Lake Mining District.
Pursuant to the terms of a mining claim acquisition agreement between the Company and Jacques Robert and Randall Salo (collectively, the "Vendors"), Northern Gold can acquire the Garrison Claim in exchange for:
-- CDN$15,000 payable to the Vendors;-- 20,000 common shares of Northern Gold issuable to the Vendors; and-- a one percent (1%) net smelter return royalty ("NSR") from production on the Garrison Claim, to be granted to Vendors. Northern Gold shall have the right and option to purchase one-half of one percent (0.5%) of the NSR for the amount of $250,000.
In addition, pursuant to the terms of a mining claim acquisition agreement between Northern Gold and Plato Gold Corp. ("Plato"), the Company can acquire an 80% interest CLM352 in exchange for:
-- CDN$200,000 payable to Plato; and-- 250,000 common shares of Northern Gold issuable to Plato.
Following completion of the transaction, Plato will retain a 20% participating interest in CLM352. If at any time, either party's interest is reduced to 10% or less, such interest shall be surrendered and the forfeiting party shall be granted a one percent (1%) NSR from production on CLM352. The non-forfeiting party shall have the right and option to purchase the entire 1% NSR for $1,000,000.
Both transactions are subject to receipt of all approvals required by the parties, including that of the TSX Venture Exchange (the "TSXV").
Northern Gold also announces today the results from 23 diamond drill holes totaling 9,179 metres from the 2012 surface diamond drilling program on its large tonnage, low-grade Garrcon Gold Deposit on the Golden Bear Project, 100 km east of Timmins, Ontario. Three of the 23 drill holes reported were hole extensions totaling 556 metres.
Garrcon Deposit Drilling Highlights include:
-- 0.81 g/t Au over 83.0 m (101 to 184 m)-- 2.07 g/t Au over 66.0 m (556 to 622 m) -- incl. 6.91 g/t Au over 5.0 m (598 to 603 m)
-- 1.08 g/t Au over 39.0 m (277 to 316 m)
Hole GAR-12-205, collared on line 12+25, is a vertical hole with a depth of 642 metres. This infill hole intersected a 66-metre interval grading 2.07 g/t Au in Temiskaming meta-sediments of the Shaft Zone starting at a depth of 556 metres. This new mineralized interval is 50 metres west of hole GAR-12-204 (1.54 g/t Au over 111 m starting at 517 m, released May 9, 2012).
Hole GAR-12-230, collared on line 7+50W, is also a vertical infill hole with a depth of 558 metres. It intersected a 39-metre interval grading 1.08 g/t Au in the Green Zone starting at a depth of 277 metres. This mineralized interval coincides closely with the mineralization encountered in hole GAR-11-162 (0.36 g/t Au over 54 m starting at the down hole depth of 342 m (vertical depth of 242 m, released March 2, 2012).