Exploration Programs Commence on Cyprus Copper-Gold Enriched VHMS Projects and Moura Lead-Zinc, Copper, Silver Project, Portugal
The Republic of Cyprus
In Cyprus the Company has now been granted title to eleven exploration permits, and has an additional nine permits in the application stage, covering a total of approximately 75 square kilometres. All of the permit areas cover the contact between the Upper and Lower Pillow Lavas or between the Lower Pillows and the Basal Group. These are the most productive geological environments for Cyprus style VHMS deposits. The permit areas were selected based on the presence of ancient workings, slag piles and/or the presence of anomalous geochemical signatures.
Phase I exploration on the Cyprus permits will commence at the beginning of February, and will include mapping, soil and rock geochemical sampling, IP and magnetic surveys along with reconnaissance rotary drill testing of any anomalies generated.
One of the permits, Philani, hosts a partially defined orebody of high grade copper and zinc massive sulphide mineralization with significant gold values (this resource predates National Instrument 43-101 ("NI 43-101") and was not prepared in accordance with its requirements). Confirmation and step out drilling will be carried out on the Philani project once all of the historical data compilation has been completed.
The following table contains a summary of the significant values returned from samples collected during the most recent property evaluation trip. The results of that work clearly illustrate the potential of the Cyprus type massive sulphide bodies to host significant gold mineralization along with high grade copper, zinc and silver.
Sample # |
Sample type |
AU g/t |
Cu % |
Pb % |
Zn % |
Ag g/t |
KS1 |
25m chip |
0.754 |
0.003 |
0.034 |
0.001 |
7.2 |
KS2 |
15m chip |
1.399 |
0.002 |
0.005 |
0 |
19.3 |
KS4 |
Grab |
1.304 |
0.037 |
0.019 |
0.051 |
7.7 |
PH27 |
10-11m drill chips |
0.334 |
1.667 |
0.013 |
0.7 |
4.1 |
PH28 |
11-12m drill chips |
2.184 |
7.364 |
0.2668 |
7.15 |
67 |
PH29 |
12-14m drill chips |
1.637 |
8.043 |
0.1134 |
13.38 |
43.1 |
PH30 |
14-16m drill chips |
1.156 |
6.568 |
0.0807 |
17.59 |
36 |
PH5 |
Grab |
4.046 |
0.5999 |
0.0553 |
0.2343 |
>100.0 |
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 the two 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.
Moura Project, Portugal
The Moura Licence is approximately 187 square kilometres and is located 180 kilometres eastsoutheast of Lisbon. The licence encompasses two deposits (Enfermarias and Preguica), and 11 known mineral occurrences, within a 25 kilometre long lead-zinc-silver belt. The mineralization is strata-bound and is hosted by Lower Paleozoic carbonates within the Ossa -- Morena Zone of the Iberian Hercynian Orogen. The Moura area has an extensive exploration history commencing in the 1940's, with the majority of the work being completed before 1980.
Northern Lion is initiating a geophysical survey combining Induced Polarization (IP) and Ground Magnetics. The survey will initially cover two areas of interest that display zinc and copper geochemical soil anomalies, neither geophysical surveys nor drilling has been completed within these areas previously. Based on the success of the geophysical survey drill targets will be selected for testing.
Quality Control and Assurance
The Company's field activities in Cyprus are to be supervised by Dr. Kyriacos Louca, under the direction of Jim Chapman, P.Geo. (BC), and the Moura programs are under the supervision of Joan McCorquodale, P. Geo. (BC), consultants to the Company and "qualified persons", as defined by NI 43-101, who are responsible for the technical content of this news release.
Separately, the Company has granted incentive stock options to directors, officers, employees and consultants of the Company, to purchase 1,000,000 common shares of the Company. The options are exercisable for a period of five years at a price of $0.15 per share. The options were granted under and are subject to the terms and conditions of the Company's April 28, 2003 Stock Option Plan, as amended.
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 exploration permits in Cyprus and 100% interest in its Moura Licence in Portugal, the Company holds a 100% interest in several 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 info@northernliongold.com 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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
Cyprus Sampling Confirms Gold Potential of High Grade Massive Sulphide Mineralization- 6.4 % Cu, 11.6 % Zn and 1.4g/t Au Sampled Over 6 Metres at Philani Project
Vancouver, British Columbia: Northern Lion Gold Corp. (the "Company" or "Northern Lion") wishes to provide this update on the Republic of Cyprus exploration program. As reported in the Company's news release of September 25, 2009, several new properties were evaluated by Northern Lion personnel and two additional properties are now under option. One of these projects, Philani, hosts a partially defined orebody of high grade copper and zinc massive sulphide mineralization with significant gold values recently identified (this resource predates National Instrument 43-101 ("NI 43-101") and was not prepared in accordance with its requirements). The Company has obtained the right to earn a 100% interest in the Philani and Kokkinounavros ("Red Hill") projects through a combination of cash payments, work commitments and share issuance.
The following table contains a summary of the significant values returned from samples collected during the most recent property evaluation trip. The results of that work clearly illustrate the potential of the Cyprus type massive sulphide bodies to host significant gold mineralization as well as high grade copper, zinc and silver.
Sample # |
Sample type |
AU g/t |
Cu % |
Pb % |
Zn % |
Ag g/t |
KS1 |
25m chip |
0.754 |
0.003 |
0.034 |
0.001 |
7.2 |
KS2 |
15m chip |
1.399 |
0.002 |
0.005 |
0 |
19.3 |
KS3 |
Grab |
0.027 |
0.14 |
0.041 |
0.078 |
<0.3 |
KS4 |
Grab |
1.304 |
0.037 |
0.019 |
0.051 |
7.7 |
PH27 |
10-11m drill chips |
0.334 |
1.667 |
0.013 |
0.7 |
4.1 |
PH28 |
11-12m drill chips |
2.184 |
7.364 |
0.2668 |
7.15 |
67 |
PH29 |
12-14m drill chips |
1.637 |
8.043 |
0.1134 |
13.38 |
43.1 |
PH30 |
14-16m drill chips |
1.156 |
6.568 |
0.0807 |
17.59 |
36 |
PH31 |
16-20m drill chips |
0.173 |
1.697 |
0.0145 |
2.56 |
6.9 |
PH5 |
Grab |
4.046 |
0.5999 |
0.0553 |
0.2343 |
162 |
Samples KS1 and KS2 were collected from an open cut on the Red Hill project, through an area of intensely argillic altered material, with KS2 collected approximately 10m above KS1. This property is at a grass roots stage of exploration, with limited historic workings. All of the PH samples are from the Philani project, which has undergone limited drilling and contains a small resource (this resource predates NI 43-101 and was not prepared in accordance with its requirements). Samples PH27 through 31 are drill chips from hole DDH EXPL-1. At Philani the area of massive sulphide mineralization currently outlined by drilling covers 40m by 30m, is roughly elliptical in shape and remains open along the long axis. One of the recent Northern Lion permit application areas entirely surrounds the Philani project and is considered prospective for additional massive sulphide deposits nearby, as this is a hallmark of Cyprus style massive sulphide deposits.
An option agreement has been signed with the owner, Michael Poullaides, of the Philani, and Red Hill projects whereby the Company may earn a 100% interest in the properties through a combination of cash payments, share issuances and work commitments according to the following schedule, subject to TSX Venture Exchange approval.
Philani Project
Due Date |
Cash Payment |
Shares |
Exploration Expenditures |
On signing |
€12,000 (paid) |
|
|
1st Anniversary |
€5,000 |
|
€20,000 |
2nd Anniversary |
€10,000 |
|
€30,000 |
3rd Anniversary |
€10,000 |
|
€50,000 |
4th Anniversary |
€25,000 |
|
€75,000 |
5th Anniversary |
€650,000 |
200,000 |
€50,000 |
Total |
€712,000 |
200,000 |
€225,000 |
Red Hill Project
Due Date |
Cash Payment |
Exploration Expenditures |
On signing |
€10,000 (paid) |
|
1st Anniversary |
€5,000 |
€15,000 |
2nd Anniversary |
€5,000 |
€25,000 |
3rd Anniversary |
€10,000 |
€40,000 |
4th Anniversary |
€10,000 |
€40,000 |
5th Anniversary |
€225,000 |
€30,000 |
Total |
€265,000 |
€150,000 |
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 the two pillow lava sequences. All of the Company's applications overlie this important contact. Gold mineralization associated with the massive sulphide ores has not historically been evaluated. During management's initial visit to the area in April 2008, six grab samples were collected from within the Company's Asproyia project and their application areas. Highlights included 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. In conjunction with the recent sampling these results indicate that there are significant gold values associated with the massive sulphides.
Quality Control and Assurance
The Company's field activities in Cyprus are to be supervised by Dr. Kyriacos Louca, under the direction of Jim Chapman, P.Geo. (BC), a consultant to the Company and a "qualified person", as defined by NI 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. 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 properties in Cyprus, the Company maintains a 100% interest in its Moura, lead, zinc, silver project in Portugal. The Company also holds a 100% interest in several 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 info@northerliongold.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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
Cyprus Project Expanded - New Permits Granted Additional 50 Square Kilometres of Permitting Applied For
Vancouver, British Columbia: Northern Lion Gold Corp. (the "Company") wishes to provide this update on the Republic of Cyprus exploration program. As previously reported on September 25, 2009, the Company has been evaluating additional areas along the Troodos Ophiolite Complex to add to the land position currently under option. The Department of Mines in Cyprus has granted the Company six new permits totaling 23.46 km2. These areas were selected on the basis of known deposits, abundant old workings and favourable geology. The targets are Cyprus type massive sulphide bodies that are believed to host significant gold mineralization as well as copper, zinc and silver.
Gold mineralization associated with the Cyprus massive sulphide ores has not historically been evaluated. As previously announced on June 17, 2008, during management's initial visit to the area in April 2008, six grab samples were collected from within the Company's Asproyia project and their application areas. Highlights included 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.
Follow-up reconnaissance soil sampling over the area of the Asproyia permit in September 2009 has returned highly anomalous values in gold, copper and silver in areas of no known workings. A total of 77 samples were collected from the Asproyia area of which 27 returned moderately to strongly anomalous results, as shown in the following table. These results indicate that there are likely to be significant gold values associated with the Cyprus style massive sulphides deposits.
| Sample # | Cu PPM |
Zn PPM |
Ag PPB |
Au PPB |
| CY9-1 | 672.10 | 236.20 | 137.00 | 29.6 |
| CY9-12 | 153.30 | 88.20 | 223.00 | 29.6 |
| CY9-17 | 4782.05 | 76.70 | 45.00 | 4.4 |
| CY9-18 | 455.62 | 1041.70 | 259.00 | 25.1 |
| CY9-23 | 179.05 | 310.90 | 482.00 | 198.5 |
| CY9-28 | 123.71 | 68.90 | 62.00 | 16.9 |
| CY9-38 | 326.02 | 695.80 | 362.00 | 46.0 |
| CY9-43 | 103.11 | 130.10 | 155.00 | 294.4 |
| CY9-59 | 1152.09 | 195.30 | 125.00 | 48.1 |
| CY9-69 | 947.45 | 155.60 | 178.00 | 313.4 |
| CY9-86 | 2015.87 | 43.70 | 27.00 | 2.6 |
| CY9-93 | 2251.03 | 63.20 | 59.00 | 10.5 |
| CY9-108 | 2907.59 | 134.10 | 482.00 | 298.0 |
| CY9-114 | 1157.72 | 136.10 | 170.00 | 31.1 |
| CY9-115 | 1751.51 | 149.60 | 388.00 | 16.0 |
| CY9-116 | 389.42 | 1523.50 | 713.00 | 330.1 |
| CY9-117 | 294.64 | 1208.00 | 640.00 | 84.4 |
| CY9-118 | 2505.70 | 56.80 | 44.00 | 40.1 |
| CY9-143 | 316.63 | 311.00 | 661.00 | 219.7 |
| CY9-159 | 512.95 | 169.80 | 55.00 | 21.2 |
| CY9-176 | 5677.43 | 47.10 | 42.00 | 2.9 |
| CY9-181 | 452.31 | 828.20 | 238.00 | 32.7 |
| CY9-184 | 171.07 | 130.40 | 37.00 | 12.8 |
| CY9-185 | 3015.72 | 58.10 | 36.00 | 4.0 |
| CY9-194 | 1484.25 | 44.80 | 49.00 | 9.4 |
| CY9-198 | 1649.10 | 40.90 | 299.00 | 100.2 |
| CY9-200 | 218.96 | 174.00 | 84.00 | 29.7 |
Quality Control and Assurance
The Company's field activities in Cyprus are to be supervised by Dr. Kyriacos Louca, under the direction of Jim Chapman, P.Geo. (BC), a consultant to the Company and a "qualified person", as defined by National Instrument 43-101 ("NI 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. 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 properties in Cyprus, the Company maintains a 100% interest in its Moura, lead, zinc, silver project in Portugal. The Company also holds a 100% interest in several 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 info@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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
Northern Lion completes sampling program in Greek Cyprus
Vancouver, British Columbia: Northern Lion Gold Corp. (the "Company") wishes to provide this update on the Republic of Cyprus exploration program. Management and consultants have just returned from Cyprus where they conducted a review of the Company's Asproyia project, monitored the Company's land applications and evaluated additional exploration opportunities. Numerous projects were visited and over 100 samples were collected, the results of which are pending. Several of these new exploration opportunities are being reviewed for their potential to host significant gold mineralization as well as copper and silver.
During management's initial visit to the area in April 2008, six grab samples were collected from within the Company's Asproyia project and their application areas. Highlights included 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, first by the Phoenicians and then the Romans and has continued ever since,. The evidence of this long history of mining is seen by the extensive slag heaps and numerous ancient surface and underground workings.
The major deposits of Cyprus are the dominantly 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 styles of 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. Gold mineralization associated with the massive sulphide ores has not historically been evaluated; however as the above mentioned sample shows there may be significant gold resources to be discovered.
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 Acme Laboratories Ltd., Vancouver, BC. Acme laboratories is accredited to international quality standards through the International Organization for Standardization /International Electrochemical Commission (ISO/IEC) 17025.
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 properties in Cyprus, the Company maintains a 100% interest in its Moura, lead, zinc, silver project in Portugal. The Company also holds a 100% interest in several 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 info@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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Northern Lion Enters into Loan Agreement
Vancouver, British Columbia: Northern Lion Gold Corp. (the "Company") announces that it has entered into a loan agreement (the "Agreement") with New World Resource Corp. ("New World"), pursuant to which it will advance up to Cdn$500,000 to New World.
Under the terms of the Agreement, the Company will advance Cdn$300,000 to New World upon TSX Venture Exchange acceptance. One additional draw of Cdn$200,000 will be available to New World at New World's discretion. The loan, together with the interest accrued thereon, will be payable on or before September 30, 2009. The loan will bear interest at a rate of 10% per annum, accruing daily.
The loan will be secured by a pledge (the "Pledge") of all of the shares of New World's subsidiary, New World Resource Bolivia S.A., which has an option to acquire a 75% interest in a joint venture project on the Lipeña mining concession in Bolivia from Empresa Minera Marte S.R.L. The Company will have the opportunity to take over the Lipeña option agreement if New World is unable to repay the loan. On October 15, 2008, New World announced an initial resources estimate for the Lipeña copper-gold project, which is supported by an independent technical report titled "Resource Estimate Lipeña Project South Lipez Province Bolivia" dated November 25, 2008 by Ronald G. Simpson, P.Geo and Jim Chapman, BSc.P.Geo. The technical report is available on SEDAR under "New World Resource Corp.".
New World is a reporting issuer listed on the TSX Venture Exchange. John Lando and Lyle Brown are directors of both the Company and New World and Mr. Lando is the President of both companies. The terms of the Agreement and Pledge were negotiated by the independent directors of the Company, and both Mr. Lando and Mr. Brown declared their interests in the transaction and abstained from voting on it.
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.
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 .
This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, statements regarding future opportunities to take over the Lipeña option agreement 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 the future value or desirability of the Lipeña project including, without limitation, unfavorable exploration results, potential defects in title, fluctuations in currency exchange rates, fluctuating prices of commodities, operating hazards and risks, and environmental and governmental regulations; whether the Lipeña option agreement remains in good standing and in full force and effect; whether the Company has sufficient finances or is able to obtain sufficient finances to take over the Lipeña option agreement; 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.