Northern Lion Gold Corporation - QwikReport - Sat Sep 4, 2010

NORTHERN LION GOLD CORPORATION : http://www.northernliongold.com/ : QwikReport

Cyprus

Northern Lion Explores in the Republic of Cyprus

Location

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The Island of Cyprus is located in the Eastern Mediterranean 64 kilometres south of Turkey and 97 kilometres west of Syria. The population is approximately 1.0 million and the island covers an area of about 9000 km2 making it the third largest island in the Mediterranean.

Formerly under British rule, Cyprus gained its independence from Britain in 1960. Civil unrest between the island's Greek and Turkish communities and a coup against the Cypriot government backed by the Greek military, culminated in an invasion by Turkish forces in 1974. The country remains split with the Turkish forces occupying approximately 36% of the island. The "Green Line", or buffer zone, is monitored by the United Nations (UN). This buffer zone cuts through the capital of Nicosia.

Geological Setting

The island's morphology features a central plateau surrounding Nicosia, with mountain ranges to the north and south.

The Troodos Ophiolite Complex trends southeasterly through the center of the island and has hosts all of the known Volcanogenic Hosted Massive Sulphide (VHMS) deposits.

The Troodos Ophiolite Complex represents a preserved section of ancient oceanic crust along with underlying upper mantle rocks. Uplift and unroofing of the complex has produced a symmetrical batholithic plutonic body flanked by volcanic units of the Lower and Upper pillow lavas and overlying sediments. The volcanic units are believed to be around 100 million years old (Late Cretaceous). The Ophiolite formed along the edge of the northward moving subduction zone where the African plate encountered the Eurasian plate. The Troodos Ophiolites are unique in that they display a complete sequence of ultramafic plutonic rocks through the dyke complexes to the marine floor pillow lavas and overlying sediments.

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Typically ophiolites found elsewhere in the world are often missing sections of the stratigraphy or have been extensively deformed and metamorphosed. Geological processes such as erosion, and tectonic influences such as faulting have played their part in re-working the landscape and provide a plumbing system for the emplacement of the massive and disseminated sulphide orebodies.

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Economic Potential

The structural environment facilitated the movement of hydrothermal fluids and resulted in the emplacement of significant base and precious metal ore deposits. Cyprus boasts rich and abundant natural resources including gold, copper, zinc, pyrite, asbestos, gypsum and chromite, which have been mined since antiquity.

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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, 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.

The main economic base metal 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 Volcanic Complex. The pillow lava sequence is divided into Upper and Lower Pillow Lavas, with the majority of massive sulphide bodies occuring in the Lower Pillows, or near the contact between the two pillow lava sequences. All of Northern Lion's permits and applications overlie this stratigraphy.

Ochres are manganese poor ferruginous sediments generally associated with sulphide ores located between the Lower and Upper Pillow Lavas and are known locally to contain high grade gold values. The umbers are manganese rich ferruginous mudstones overlying the Upper Pillow Lavas. Umbers and ochres have historically been mined for dyes.


Skouriotissa Mine, Skouriotissa, Nicosia District, Cyprus An operating copper-gold-pyrite mine (VHMS-type Cu deposit). Impressive piles of slags at Skouriotissa mine are evidence of ancient mining activities.

Northern Lion Properties

Northern Lion Gold has optioned 2 exploration permits from Katla Exploration Ltd. covering 5.4km2 area near the village of Asproyia in the Paphos District of the Republic of Cyprus. It has also optioned a 100% interest in 2 permits in the Klirou district from M. Poullaides covering 0.83km2. In addition the company has applied for and been granted an additional 5 permits covering 20.75km2 adjacent to and surrounding the existing permits. A further 10 permit applications are currently in process over prospective areas.

2010 Exploration Program

Field crews were mobilized to Cyprus in late January 2010 and exploration commenced on the Philani and Kokkinovounaros (Red Hill) projects. This work consists of detailed geological mapping, soil and rock sampling, to be followed by geophysical surveys.

At Philani a small high grade body of massive sulphide mineralization has been identified through drilling by BRGM in the early 1980's and confirmed by the property owner in 1 hole in 2008. Sampling of the chips from the 2008 hole by the company confirmed a 6m thick interval of massive sulphides which grades 6.4% Cu, 11.6% Zn, 1.4g/t Au and 38g/t Ag. None of the early drilling by BRGM was analysed for gold and so the company plans to twin several of the earlier holes to confirm grades and test for gold content. Surface grab samples from a gossan adjacent to the massive sulphide body returned 4g/t gold.

At Kokkinovounaros some pre-WWII gold workings focused on a substantial gossan covering the peak of a small hill. In the 1950's Hellenic Mining acquired this area under an exploration Permit and through a combination of geochemical and geophysical techniques identified a massive pyrite body approximately 500m to the northwest of Red Hill. This became their main focus of attention and was ultimately mined and contained a copper rich zone at the northwest edge of the main body of pyrite. During this period 5 holes were drilled on the Red Hill workings and analysed for gold, all of which assayed over 1g/t for the entire hole to a maximum depth of 50m below surface. None of the other holes drilled in the area by Hellenic or the Geological Survey were analysed for gold. Other significant results from this area include 143m of 0.4% copper to the south of Red Hill and 40m of 1% copper in a hole to the northwest of the open pit.

Refs.:

Rocks & Min.: 23:129; 64:48

Dana 7:II: 465,467

Bureau of Mines Mineral Trade Notes (Sep, 1947).

http://www.lrz-muenchen.de/~ressourcen/activities/cyprus/cyprus_deposits.html

http://www.taesp.arts.gla.ac.uk/Landscape/SIA/TS01.htm

Philani Project

Joint Venture Partner and drill collar on the Philani Project

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 Red Hill and Red Water 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 from a 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
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 from surface	4.046	0.5999	0.0553	0.2343	162

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. Northern Lion's previous surface sampling returned over 4g/t gold from a gossan located peripheral to the massive sulphide body. The current mapping has shown the anomalous gossan to be one of a series located along a northwest trend, none of which had been previously tested.

Research in the files of the Cyprus Geological Survey has uncovered historical drill data that indicates a hole located to the west of the massive sulphide body that appears to intersect a feeder zone. This hole encountered 24m of 0.4% copper, but was not analysed for gold. It is also proximal to the 4g/t gold assay from the surface gossan.

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 and Red Water 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 and Red Water 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

Project Manager Sampling Philani outcrop that returned 4 g/t gold and 162 g/t silver

Red Hill, Red Water and Red Rock Projects

Red Hill, Red Water and Red Rock Prospects covering over 1 km of strike length

At Red Hill some pre-WWII gold workings focused on a substantial gossan covering the peak of a small hill. The data compilation program has located geological mapping, geophysical survey data and historical drill logs from both the Geological Survey and the Hellenic Mining Company which are located within the present permit controlled by Northern Lion.

In the 1950's Hellenic Mining acquired this area under an exploration permit due to the presence of the Red Hill gossan. Through a combination of geological, geochemical and geophysical surveys they identified a massive pyrite body (Red Water) approximately 500m to the northwest of Red Hill. This became their main focus of attention and ultimately produced 330,000 tons of pyrite. It contained a copper rich zone along the northwest edge of the main body of pyrite, which appears to be controlled by a major northwest trending structure. A strong northerly trending structure is visible in the open cut workings at the Red Hill gossan, which is located at the intersection of these two linears. No work appears to have been done to test the extensions of the northerly trending structure.

During this period five holes were drilled on the Red Hill workings over a 125m strike length and analysed for gold, all of which assayed over 1 gram per tonne ("g/t") for the entire hole to a maximum depth of 50m below surface. No other holes drilled in the area by Hellenic Mining Company or the Geological Survey were analysed for gold. Additional significant results from this area include 143m of 0.4% copper to the south of Red Hill and 40m of 1% copper in a hole to the northwest of the Red Water open pit (this area is referred to Red Rock).

Detailed mapping and soil sampling are currently underway on the areas to the north and south of the Red Hill gossan. Drill testing of the gold target at Red Hill will be undertaken in the near future.

An option agreement has been signed with the owner, Michael Poullaides, of the Philani, and Red Hill and Red Water 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 and Red Water 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

Open Cut at Red Hill

Looking south from Red Hill

Looking North at Red Water, Mined in the 1950's for pyrite

Red Water past producer of pyrite - looking East

Pitha Project

The Pitha project forms part of Northern Lion's 100% held Exploration Permit EA4329 which incorporates the Pitha and Peristerka massive sulphide bodies. Peristerka which consisted of two adjacent vertical massive sulphide bodies, was mined in the 1960's for pyrite, but also contained a high grade copper and zinc portion in the western orebody. At Pitha (1km to the west) the area was partially pre-striped preparing for production when the Turkish invasion halted activities. The company operating Peristerka went bankrupt when their ore stockpile sitting at the port of Famagusta was seized during the invasion. Historical drill data indicates a vertically oriented massive sulphide body of in excess of 500,000 tons. No gold assays were carried out during the period when the massive sulphide was drilled.

In order to determine the gold potential of this area a chip sampling program was carried out over the exposed benches, and any exposures of massive sulphide visible in the pit. The Pitha massive sulphide body is located in the Basal Group rocks within 200m of the contact with the overlying Pillow Lava Series. Dykes within the Basal Group in this area trend north northeasterly and have a near vertical dip, as do the major structural trends.

A total of 132 chip and grab samples were collected from all prospective exposures of altered and mineralized rocks, along with a suite of samples from fresh outcrop for reference material. The results of this work show an excellent clustering of gold and copper values at the west end of the pit, with the highest values shown in the following Table. Anomalous gold and copper values were returned from an area of 75m by 60m as shown on the accompanying map. Follow up sampling will concentrate on defining the western limits of this mineralization and exploring to the north and south along the local structural trend. To this end a grid has been established to the north of the pit with east-west lines covering the potential extension of this mineralization. Soil sampling has been completed over this grid and results are anticipated this month.

South of the Pitha pit (0.75km) another historical showing known as Mandres was partially evaluated at the same time as the Pitha stripping. Surface sampling by Northern Lion crews has shown anomalous gold values up to 2.5g/t over 2m in gossanous outcrops.

The following table contains a summary of the significant values returned from the chip samples collected. 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 #	Length (m)	Au g/t	Ag g/t	Cu %	Pb ppm	Zn ppm
11904	0.4	0.336	15.8	1.615	86	279
11917	grab	1.03	7.6	2.88	158	512
11919	0.25	4.67	33.6	3.91	847	3940
11920	grab	0.452	5.9	0.68	112	706
11921	0.2	3.12	40.0	0.85	1125	726
11922	grab	3.04	21.3	0.29	1580	1290
11923	grab	0.37	4.7	0.1	234	250
11926	grab	0.436	1.9	0.05	28	240
11930	2.2	0.751	15.0	0.04	1850	230
11932	grab	0.598	14.8	0.1	93	334
11934	1.3	1.12	6.5	0.4	88	281
11940	grab	0.781	2.4	0.13	639	1335
11941	4.5	1.045	22.7	0.76	441	955
11942	4.4	0.423	10.0	0.05	210	787
11945	2.3	0.614	8.1	0.03	115	530
11946	grab	2.59	38.4	0.03	403	736
11951	0.3	0.695	7.6	0.07	3110	908
11954	5.6	0.676	25.4	0.13	1550	1930
11955	grab	0.37	4.2	0.12	396	1285
11957	3.5	0.012	0.2	1.465	10	5440
11958	1.7	0.989	40.5	0.67	168	1080
11960	0.4	0.558	2.4	0.01	83	150
11961	0.2	0.73	11.9	0.19	197	898
11962	3.2	2.64	62.1	0.09	255	317
11963	2.2	0.88	25.6	0.14	513	518
11965	1.4	1.16	28.0	0.07	260	156

Sample Maps of the entire Pitha Pit and the west end of the Pitha Pit:

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Sha Project

The Sha Project is held 100% by a fully owned subsidiary of Northern Lion. To date Northern Lion has completed limited exploration within this project area. However, the area contains several past producers and extensive favorable horizons that will require further follow up.

The alteration colours of the west wall of the Sha Pit

The Sha Pit was mined from 1937 to 1943 for gold, no production numbers have been recorded.

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This page was created on Sat Sep 4, 2010 at 9:42:11 PM Pacific Time.