NioGold Mining Corp. TSX.V – NOX
The adjoining Cadillac-Malartic-Val-d'Or gold camps have produced 45M oz gold with more than 50 previous producing mines and 7 currently operating mines.
NioGold is an extremely compelling gold play, management has a well thought out plan for success and they are operating in the heart of one of the most prolific gold producing areas in the world – 170 million ounces of gold have been pulled out of the Abitibi gold belt.
Since 2006 drilling (45,000 m) and historical data compilation on the Marban Block property has proven up Indicated resources of 598,000 ounces gold in addition to Inferred resources of 361,000 ounces gold.
The projects are located close to the full-service mining towns of Val-d'Or and Malartic. There is easy access to gold milling facilities, a provincial highway, railroad, power lines, telecommunication systems and an experienced labor force. Having all the necessary infrastructure and a trained skilled workforce nearby facilitates cost effective exploration and development.
Quebec is consistently ranked as one of the best places to explore for and develop a mine. Quebec supports its mining industry by maintaining a mining tax system designed to stimulate investment. A company operating in the province could receive up to 38% in tax credits for work performed in the field.
In July 2010, NioGold successfully negotiated an important partnership with Aurizon Mines Ltd. (TSX:ARZ) to further develop the Marban Block property gold resources. A three-year $20M drilling program (200,000 meters) on the Marban Block is currently underway with a $5.9M program approved for the first year.
Aurizon can earn a 50% interest in the Marban Block by spending $20 million over three years – $5 million must be spent in the first year. Aurizon also has to complete an updated resource estimate, and based on that resource estimate, make payments equal to $30 (or $40 if the price of gold is above US$1,560 per oz.) multiplied by half the number of gold oz. in the measured and indicated category, and a further $20 (or $30 if the price of gold is above US$1,560 per oz.) multiplied by half the number of gold oz. in the inferred category.
Aurizon can then earn an additional 10% interest by completing a feasibility study and a further 5% – for a total of 65% – by arranging financing to bring the project into production.
NioGold will be the operator during the initial earn-in period but Aurizon will become the operator after it earns its 50 percent of the project. The work program at Marban will be prioritized towards increasing the resources that can potentially be mined by open pit.
Michael Gustin, of Mine Development Associates in Reno, Nev., in December 2009, prepared a resource estimate on the Marban Block for NioGold. The report outlined indicated resources of 598,000 oz. gold and inferred resources of 361,000 oz. gold.
Gustin's report divided Marban's resources between open pit and underground. At a 0.5 gram gold cutoff grade open-pit indicated resources were 6 million tonnes grading 1.6 grams gold for 303,000 oz. contained gold, and inferred resources of 4.4 million tonnes at 1.3 grams gold for 179,000 oz. contained gold.
Underground resources used a 2.5-gram gold cutoff grade and were 2.1 million tonnes at 4.3 grams gold for 296,000 oz. contained gold in the indicated category, and 1.5 million tonnes grading 3.9 grams gold or 182,000 oz. gold in the inferred category.
Most major deposits on this belt have been mined to plus 1,000 meters. Niogold's were mined at much shallower depths (maximum 500 meters) so the company believes there is a lot of blue sky potential on their properties for resource estimates to increase as drilling penetrates below the 500 meter level.
Michael A. Iverson, Chairman & CEO
Michael Iverson has been President and Director of Triple K Ventures Ltd from March 1975 to the present. He has also served as President and Director of R.P.F. Custom Wood Fibre Ltd since 1985. In November 1997, Mr. Iverson joined Sasha Ventures Ltd., a public company serving as President and Director. In addition to these substantial positions, Mr Iverson has been Chairman, Director and Chief Executive Officer of Fortuna Silver Mines from March 1998 to December 2004 remaining as a board member to present. Mr. Iverson is also Chairman and Director of Niogold Mining Corp formally known as Moreno Ventures Inc. since 1998 to the present.
Rock LeFrancois, P.Geo. President & COO
Rock Lefrançois is a professional geologist that brings strong technical and management skills to the Company. Mr. Lefrançois has over 20 years of experience in the search and valuation of various types of precious and base metal deposits across the North and Central American Cordilleras and the Abitibi Greenstone Belt. During his career he has served as senior geologist for mid-tier mining companies, notably Cambior and Aur Resources. His local knowledge of the Val d'Or and Malartic mining camps was an asset in acquiring key ground to build NioGold's land package in the area.
Michelle Marrandino, Director
Mr. Marrandino brings 20 years experience in fund raising and management consulting to NioGold's Board of Directors. His diverse knowledge, experience and contacts in the oil & gas, mining and hi-tech private and public sectors of these industries have assisted many companies in reaching their potential and desired mandates.
Toby Lim, Director
Toby Lim is called to the British Columbia Bar and has been an associate lawyer practicing securities and corporate law at Anfield Sujir Kennedy and Durno, a Vancouver based law firm, since 1998. He has worked with numerous public and private companies in relation to initial listings, financings, acquisitions, mergers, re-organizations and spin-off transactions, and has served as a director or officer of a number of public companies. He received his Bachelor of Laws degree from Osgoode Hall Law School in Ontario in 1996, and a Bachelor of Commerce with honours from the University of British Columbia in 1992.
Simon Ridgeway, Director
Mr. Ridgway is an accomplished mine developer with over 30 years experience in the mining industry. During the 1990s, Mr. Ridgway led the discovery and development of two gold deposits in Honduras and Guatemala, both of which were subsequently sold and put into production by Glamis Gold, now Goldcorp.
He is a co-founder of the Gold Group, a stable of mining and exploration companies having a head office in Vancouver, Canada. The companies under his management include a full spectrum from grassroots exploration (Radius Gold Inc.), through advanced-stage definition drilling (Focus Ventures Ltd.) to production and cash flow (Fortuna Silver Mines Inc.). Since 2003, his group has raised over $300-million in the European and North American capital markets. Most recently, Fortuna Silver Mines closed a $35-million bought-deal to finance the development of a new silver mine in Oaxaca, Mexico.
NioGold has consolidated a large land package in the heart of an established gold mining district (their landholdings are located along Highway 117, a stretch of road called the Golden Highway because it links a large number of current and historic gold mines, gold development projects and gold milling facilities) and has attracted the attention of a deep pocketed partner committed to building shareholder value, for both companies, through the drill bit.
Currently there are two drill turning on the Marban Block Joint Venture (JV) property, a third is scheduled to start very early in the new year. The two drills have been working since September 1st and are each drilling roughly 90 meters a day. The average hole depth is 300 meters and the first core went to the lab to assayed at the end of September.
NioGold has several very distinct advantages:
- Management – highly skilled, well known and respected industry veterans
- The Abitibi Greenstone belt is one of the world's largest archean greenstone belts (over 270 kilometers long) and only 10 percent of it has been explored
- Infrastructure in the area is excellent
- They are operating in mining friendly Quebec
- NioGold has undeveloped gold zones and historic mines giving the company a chance to rapidly develop resources and adding bluesky exploration potential
There is a very large drill program, 50,000 – 60,000 meters, presently underway. I expect results to start flowing very soon and then continue for the foreseeable future.
NioGold and its Marban Block JV should be on every investors radar screen.
Is it on yours?
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This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.
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