Deeper Drilling at Marban Reveals Added Upside With 5.3 G/T Au Over 12.8 Metres

VAL-D'OR, Quebec, June 22, 2011 /PRNewswire/ -- NioGold Mining Corporation (TSX-V:NOX) ("NioGold") and Aurizon Mines Ltd. ("Aurizon") are pleased to report on the latest drilling results at the Marban Block property, located in the Malartic gold camp, Abitibi region of Quebec.

Highlights from 23 new drill holes include 5.3 grams of gold per tonne over 12.8 metres (MB-11-191) obtained along the depth extension of the footwall shear zone at the Marban deposit at approximately 400 metres depth. The intersection has opened up significant potential to increase the gold resources at depth at Marban.

Highlights of Marban deposit drilling results:

• 37.1 grams of gold per tonne over 1.4 metre (MB-11-182);
• 5.3 grams of gold per tonne over 12.8 metres (MB-11-191);
• 5.1 grams of gold per tonne over 6.0 metres (MB-11-192).

Highlights of Norlartic deposit drilling results:

• 3.0 grams of gold per tonne over 14.4 metres (NL-11-049).

The initial program under the terms of the Aurizon option agreement commenced on August 30, 2010, and includes 50,000 metres of diamond drilling. Three drill rigs are currently in operation on the project. To date, 152 holes and five (5) extensions of previous holes have been completed for a total of 40,888 metres. Results from 92 holes have been previously released, results from 23 holes are included in this release, and results are pending for 42 completed drill holes.

Marban deposit drilling

One hundred and fifteen (115) holes and five (5) extensions of previous holes, for a total of 33,325 metres, have been completed on the Marban deposit since the start of the program in August. Results for 76 holes (MB-10-102 to -175, MB-06-002ext and MB-07-005ext) were previously released. Results received for an additional 17 holes (MB-11-176 to -192) are tabled on the following pages. Results are pending for 27 holes.

The first phase of drilling at Marban was mainly focused on drilling at 50-metre spacing within the top 300 metres from surface over a 1,050-metre strike extent of the Marban gold mineralised system. The program has now shifted to deeper drilling to test the down dip extension of the mineralised zones, mainly from 300 to 500 metres vertical depth, as well as select in-fill drilling at 25-metre spacing.

Two significant gold mineralised intersections were obtained along the down dip extension of a major shear zone recognised along the footwall (south) contact of the Marban Mine Sequence. The footwall shear is sparsely investigated below 300 metres vertical depth over the 1.4 kilometre strike length of the Marban gold mineralised system. Hole MB-11-191, located on section 4+00 degrees E, returned a gold mineralised intersection of 5.3 g/t Au over 12.8 metres from the footwall shear at a vertical depth of 420 metres. Hole MB-11-192 cut the same zone at a vertical depth of 380 metres, 40 metres above the intersection in hole MB-11-191. The zone in hole MB-11-192 averaged 5.1 g/t Au over 6.0 metres. These intersections have opened up significant upside to increase the gold resources at depth at Marban.

Norlartic deposit drilling

Twenty-one (21) drill holes (4,319 metres) were completed on the Norlartic deposit during the winter. Results for 15 holes (NL-11-040 to -045 and -047, -052 to -057, -059 and -060) were previously released. Results for the final six (6) holes (NL-11-048, -049, -058, and -061 to -063) are tabled on the following pages.

This initial phase of drilling at Norlartic served to better define the entire width of the Norbenite shear gold mineralised envelope within the top 200 metres from surface, and more specifically along the western 500-metre strike extent of the Norlartic deposit. Best results of the 21-hole program include:

• 3.1 grams of gold per tonne over 10.7 metres (NL-11-040);
• 6.8 grams of gold per tonne over 4.6 metres (NL-11-042);
• 1.9 gram of gold per tonne over 58.3 metres (NL-11-047);
• 3.0 grams of gold per tonne over 14.4 metre (NL-11-049);
• 7.4 grams of gold per tonne over 9.3 metres (NL-11-052);
• 5.6 grams of gold per tonne over 6.7 metres (NL-11-054);
• 2.1 grams of gold per tonne over 28.0 metres (NL-11-057);
• 10.8 grams of gold per tonne over 3.0 metres (NL-11-059);
• 3.1 grams of gold per tonne over 10.9 metres (NL-11-060).

Fence drilling between Norlartic and Marban deposits

The remaining 16 drill holes (3,244 metres) completed to date on the project investigated the southeast strike extension of the Norbenite shear, which hosts the Kierens and Norlartic deposits. Results were previously released for hole NL-11-046 that returned an interval of 21.2 metres averaging 1.23 g/t Au intersected along the southeast extent of the Norlartic deposit. The remaining holes will be released once all assay results are received and interpretation of the sector is completed.

Aurizon Option

Aurizon can earn up to a 65% interest the Marban Block property under the terms of an option and joint venture agreement dated July 5, 2010 between NioGold and Aurizon. The initial 50% interest can be earned by incurring expenditures of C$20 million over three years, completing an updated NI 43-101 compliant mineral resource estimate, and by making a resource payment for 50% of the total gold ounces defined by the mineral resource estimate. NioGold is the project operator during the initial earn-in period (see news release dated July 6, 2010).

Technical Info, QA/QC and Qualified Persons

Reported intervals are in core lengths but are anticipated to approximate true width, except where structural complexities occur, as the holes were drilled near perpendicular to the principal local structural orientation.

Diamond drill holes were drilled with NQ-size core in order to obtain larger sample volumes of the mineralised zones, except for holes that traversed underground workings which were completed using BQ-size core. The core was sealed delivered by the drilling contractor to NioGold's facilities located at the Norlartic mine site. The core was photographed for reference, logged and mineralised sections were sawed in half. Sample lengths vary between 0.5 to 1.5 metres. Half core samples were bagged, sealed and delivered to ALS Chemex in Val-d'Or, Quebec, an accredited laboratory. The remaining core is stored on site for reference. Samples were assayed by the fire-assay method using an atomic absorption finish on a 50-gram pulp split. A quality assurance and quality control program (QA/QC) was implemented by NioGold and the laboratory to insure the precision and reproducibility of the analytical method and results. The QA/QC program includes the insertion of standards, blanks and field duplicates in the sample batches sent to the laboratory and a systematic re-assaying of samples returning values above 2 g/t Au by the fire-assay method using a gravimetric finish. As well, pulps grading above 0.5 g/t Au are sent to Bourlamaque Assay Laboratories Ltd. in Val-d'Or for check assaying.

The drilling program is conducted under the supervision of Yan Ducharme, M.Sc., P.Geo. (OGQ), the Company's Exploration Manager and a Qualified Person as defined by National Instrument 43-101. This news release was prepared by Rock Lefrancois, P.Geo. (OGQ), the Company's President and a Qualified Person as defined by National Instrument 43-101.

NioGold Mining Corporation - On Canada's Golden Highway

NioGold Mining Corporation is a mineral exploration company focused on GOLD. The Company's flagship projects are located in the Cadillac - Malartic - Val-d'Or stretch of the prolific Abitibi gold mining district, Province of Quebec, Canada. The Cadillac, Malartic and Val-d'Or mining camps have produced over 45 million ounces of gold since the 1930's and presently encompasses seven producing gold mines and a major mine development project (Canadian Malartic, Osisko Mining). NioGold's land holdings within the Abitibi presently cover 125 km2 and encompass three former gold producers, namely the Norlartic, Kierens (First Canadian), and Marban mines that collectively produced 600,000 ounces of gold. NioGold has outlined Indicated resources of 598,000 ounces gold and Inferred resources of 361,000 ounces gold in and around these deposits.

NioGold's experienced and qualified technical team will ensure the successful advancement of the Company's projects towards the highest quality mineral resources. NioGold invites you to visit the company website at www.niogold.com. For information on NioGold Mining Corporation contact:

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

FORWARD-LOOKING STATEMENTS

This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties.

CAUTIONARY NOTE TO U.S. INVESTORS

The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as 'measured resources', 'indicated resources'  and  'inferred resources', which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F. The news release contains information about adjacent properties on which we have no right to explore or mine. U.S. investors are cautioned that mineral deposits on adjacent properties may not be indicative of mineral deposits on our properties.

SOURCE NioGold Mining Corporation