Tue Jun 17, 2008 Northern Lion Secures Option for Cyprus Property
Vancouver, British Columbia: Northern Lion Gold Corp. (the "Company") announces that it has entered into an option agreement (the "Agreement") with Katla Exploration Ltd. ("Katla") to acquire a 90% interest in an exploration permit covering a 312 hectare area (the "Property") near the villages of Pano Panayia and Asproyia in the Paphos district ("Greek-Cyprus") of the Republic of Cyprus.
Under the Agreement, the Company will earn a 90% interest in the Property by making payments totaling US$175,000 and issuing 220,000 common shares of the Company to Katla over two years, and incurring expenditures on the Property totalling US$2,625,000 over a period of three years.
The Agreement is subject to the approval of the TSX Venture Exchange.
Katla has also, on the Company's behalf, submitted an application to the Department of Mines for an additional seven exploration permits in Greek-Cyprus covering an aggregate 3,190 hectares. The Company will hold a 95% interest in the additional property, subject only to reimbursement of Katla for its expenses.
During management's initial visit to the area, six grab samples were collected from within the new application areas. Highlights include one sample which returned 4.1% copper, and another sample which returned 7.3 grams per tonne ("g/t") gold and 17.6 g/t silver.
The history of mineral exploitation (copper, gold and other metals) on the island of Cyprus dates back to the Bronze age, approximately 5,000 years ago, and has continued through the ages, first by the Phoenicians and then the Romans. The evidence of this long history of mining is seen by the extensive slag heaps and numerous ancient surface and underground workings as well as other manifestations of small-scale underground workings.
The major deposits of Cyprus are the copper-bearing volcanogenic hosted massive sulphide "VHMS" deposits. These deposits are hosted within the pillow lava sequence of the Troodos ophiolite. The pillow lava sequence is divided into Upper and Lower Pillow Lavas according to their place in the stratigraphy, with the majority of massive sulphide bodies forming between the two pillow lava sequences. All seven of the Company's applications overlie this important contact. The other major mineralization on Cyprus, apart from the massive sulphide deposits and associated stockwork mineralization, are the interstitial and overlying sedimentary umber and ochre deposits. Ochres are manganese poor ferruginous sediments generally associated with sulphide ores located between the Upper and Lower Pillow Lavas, while umbers are manganese rich ferruginous mudstones overlying the Upper Pillow Lavas. Umbers and ochres have historically been mined for dyes and are known locally to contain significant gold values.
Company President, John Lando, commented: "We are very impressed with the geological potential in Cyprus. An excellent opportunity for new discoveries is clearly present. Cyprus has been known throughout history to be rich with copper and has over 5,000 years of production history. Due to the geo-political instability, there has been very little activity since the early 1960's. Now that Greek-Cyprus is a member of the European Union, we believe there is a truly exceptional opportunity for new discoveries by applying modern exploration technologies in a copper-rich environment."
Quality Control and Assurance
The Company's field activities in Cyprus are to be supervised by Dr. Kyriacos Louca, under the direction of Joan McCorquodale, P.Geo. (BC), a consultant to the Company and a "qualified person", as defined by National Instrument 43-101 ("NI 43-101").
Samples were sealed and delivered personally by Joan McCorquodale, P.Geo. (BC) to OMAC Laboratories Ltd., Athenry Road, Loughrea, Co. Galway, Ireland. OMAC laboratories is accredited to international quality standards through the International Organization for Standardization /International Electrochemical Commission (ISO/IEC) 17025.
The total sample is jaw crushed dry to <2 mm, following which a 500 gram representative sample is obtained using a Riffle splitter and pulverized so that 90% passes 100 micron. Samples are then analyzed for gold and undergo forty four element ICP analysis using Aqua Regia digestion. The gold analytical method employed by OMAC uses a 50-gram sample for Pb-fire assay followed by atomic absorption spectrometry finish.
Joan McCorquodale, P.Geo. (BC), a consultant to the Company and a "qualified person" as defined by NI 43-101, is responsible for the technical content of this news release.
About Northern Lion
Northern Lion Gold Corp. is a Canadian mineral exploration company, listed on the TSX Venture Exchange and the Frankfurt Exchange. The Company is committed to building a strong portfolio of projects within mining-friendly and infrastructure-rich areas of Europe. The Company is well funded to continue to define and explore its existing projects and to acquire and explore new projects.
In addition to its new properties in Cyprus, the Company continues work on its 95% held Cercal license and its 100% held Moura licenses in Portugal. The Company also holds a 100% interest in seven projects in the historic Bergslagen mining district of southern Sweden. These properties were acquired in 2006, and data compilation and review, limited soil sampling and an airborne geophysical survey have recently been completed. Results from the airborne survey are expected shortly and will be used to help delineate targets for drilling.
NORTHERN LION GOLD CORP.
For information with respect to Northern Lion or the contents of this news release, please contact John Lando or Don Flahiff at (604) 669-2701, toll free at 1-800-663-0510, or email to .
This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and, except as required by law, the Company is under no obligation to update or alter any forward-looking information.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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