| ||Thu Dec 9, 2010|
Northern Lion Acquires High Grade Massive Sulphide Project, Republic of Cyprus
Vancouver, British Columbia: Northern Lion Gold Corp. (the "Company" or "Northern Lion") wishes to announce the signing of an option agreement to acquire a 100% interest in the St. Nikolas Project in the Republic of Cyprus. The St. Nikolas project will augment the Company's existing land package of 17 permits covering over 53km2.
The mineralization within the St. Nikolas project is hosted by Upper Pillow Lavas, at the contact with the overlying sediments. Previous work by Noranda in 1978 and BRGM in 1984, located a massive sulphide body of unknown dimensions consisting dominantly of chalcocite, chalcopyrite, sphalerite and pyrite, containing significant precious metal values. The historical data is incomplete, however the Noranda drilling reported up to 6 grams per tonne ("g/t") gold along with 4.82% copper over a five metre interval in hole DD-4, and up to 67g/t silver over one metre in hole CH-3.
The property vendor has recently completed a rotary hole proximal to the location of Noranda's hole DD-4 in order to confirm the general tenor of the previous results. This hole intersected sulphide mineralization at a depth of 19 metres consisting of chalcocite, chalcopyrite, sphalerite and pyrite. As a result of the equipment used there is very significant contamination of the samples collected, and thus the results can only be used in a qualitative manner. Samples were collected at one metre intervals as the drilling progressed, however because only the top five metres of the hole had been cased there was extensive mixing of the overlying sedimentary lithologies with the mineralization, resulting in dilution of the mineralized interval. Northern Lion personnel examined the chips and sludge collected from each one metre interval and sent a representative sample to ALS Chemex Labs in Romania for analyses.
From surface to five metres the lithology consists of chalks and marls of the Lefkara Formation. The volcanic sequence commences at five metres depth with umbers; and from 5 to 19 metres the samples collected returned less than 1g/t gold within each interval. From 19 to 29 metres all of the intervals sampled contained greater than 1g/t gold to a high of 8.78g/t, and up to 60g/t silver, showing a good correlation with the Noranda results. Copper values averaged 1% between 19 and 29 metres.
The St. Nikolas project was entered into on the basis of historical information derived from the ongoing evaluation of data acquired from the Geological Survey of Cyprus, and information supplied by the Company's consultants in Cyprus. A small amount of mining was carried out within the property in the 1950's by the Hellenic Mining Company, when it reportedly extracted 3,500 tonnes of cuprous pyrite grading 1.5% copper from an adit near the present road. A series of gossanous outcrops are exposed over an area of 300 by 100 metres, however the post mineralization sedimentary cover is pervasive in the western portion of the permit area resulting in poor exposure of the volcanic sequence.
Mapping, soil and rock sampling along with an Induced Polarization ("IP") survey are currently underway on the property in order to provide targets for the 2011 drill program which is expected to commence in January.
Option Agreement Terms
An option agreement has been signed with the owner, George Poullaides, whereby the Company may earn a 100% interest in the St. Nikolas project by incurring exploration expenditures consisting of a minimum Euro 50,000 and making the aggregate cash payments of Euro 70,000 on or before October 13, 2014.
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. The Phoenicians were the first to process copper on the island, followed by the Romans and this activity has continued to the present day. The evidence of this long history of mining is readily observed in the abundant ancient surface and underground workings along with extensive slag heaps. Mineral exploration in the Republic of Cyprus has been at a very low level over the last few decades, and management believes that there is a high probability of additional massive sulphide bodies being present that did not outcrop, as nearly all of the known deposits did.
The metal deposits of Cyprus are dominantly copper-bearing volcanogenic hosted massive sulphide "VHMS" deposits. These deposits are hosted within the pillow lava sequence of the Troodos Ophiolite Complex. The pillow lava sequence is divided into Upper and Lower Pillow Lavas, with the majority of massive sulphide bodies located along the contact between pillow lava sequences, and the remainder between the Lower Pillow Lavas and the Basal Group. All of the Company's applications overlie these important contacts. Gold mineralization associated with the massive sulphide ores has not historically been evaluated.
Quality Control and Assurance
The Company's field activities in Cyprus are under the direction of Jim Chapman, P.Geo. (BC), consultant to the Company and "qualified person", as defined by National Instrument 43-101, who 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.
In addition to its exploration permits in Cyprus, the Company holds a 100% interest in its Moura Licence in Portugal and a 100% interest in two projects in the historic Bergslagen mining district of southern Sweden.
NORTHERN LION GOLD CORP.
John Lando, President
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 firstname.lastname@example.org or visit the web site at www.northernliongold.com.
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.
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