26th October 2009
PRESS RELEASE
SINIVIT MINE UPDATE
SINIVIT MINE UPDATE
New Guinea Gold Corporation (NGG or the “Company”) advices that gold production from the Sinivit Mine, Papua New Guinea, for the quarter ending September 30, 2009 was 1,857.7ozs gold. Silver production was 344.5ozs. Production was lower in this quarter than the previous quarter due to two factors:
•
The dispute with former mining contractor HBS Machinery (see Press Release dated August 11, 2009) resulted in only approximately 50% mining/earthmoving capacity during the quarter. This reduced capacity inhibited the completion of new vats, and being able to bring on line a new vat every month.
•
Ongoing unseasonable rainfall, which together with the fact that mining/vat construction had to be carried out with normal “road trucks”, rather than articulated multi wheel drive trucks, (which could operate more safely around the mine in wet weather).
Rainfall throughout the quarter totalled 1,476.5mm or approximately 58 inches. On an annualised basis this equates to approximately 240 inches – as against a long term annual average of approximately 150 inches.
The past quarter is also normally
the height of the “dry season” and relatively little rain is usually expected.
Mine equipment is now back to strength with the additional equipment as noted below being now on site and in operation (see Press Release dated October 7
th
2009):
•
Two CAT 730 6x6 articulated Dump Trucks,
•
One Hitachi 2 by 450 H 45 tonne excavator, and
•
One CAT D5G bulldozer
This equipment now compliments three road trucks, three 20/30t excavators, a loader, and two bulldozers,
which were already on site.
Mr McNeil CEO and Chairman commented:
“the reduced gold production was disappointing, but not
unexpected in view of the reduced equipment availability and high unseasonable rainfall. The additional
“off road” equipment and larger excavator should result in increased gold production by end of fourth
quarter 2009 and into 2010. New Guinea Gold is operating the equipment itself under a purchase/part
lease arrangement with an Australian lessor, and we are seeking to convert this arrangement to a formal
leasing arrangement with a Papua New Guinea leasing group. If this is successful we would expect the
capital we have already invested in this machinery to be refunded to the Company.”
The information in this release was prepared under the direction of Robert D. McNeil a Fellow of the Australia
Institute of Mines and Metallurgy and a “qualified person” as defined by National Instrument 43-101. Mr
McNeil has read and approves the information contained herein.
Full details of the Sinivit Project are described in an Independent N1 43-101 report dated January 2006 which is
available at
www.newguineagold.ca
.
For further information on this release or on other NGG projects such as the Sinivit Gold Mine, contact Forbes
West toll free at 888 655 5532, email
forbes@sherbournegroup.ca
or Judith O’Quinn at 604 662 3598, email
ngg@telus.net
or access our website –
www.newguineagold.ca
ON BEHALF OF THE BOARD
“R.D.McNeil”
CHAIRMAN & CEO
Neither 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 release.
SINIVIT MINE UPDATE
