NSGold signs Letter of Intent to acquire Silver Hill property located on the Getchell Trend, Nevada

    




 BEDFORD, NS, Sept. 27, 2012 /CNW/ - NSGold Corporation  is pleased to announce that it has entered into a Letter of Intent with  Cerro Rico Ventures LLC providing for the acquisition by NSGold of 100%  ownership of the Silver Hill property located in Humboldt County,  Nevada. 

 The Silver Hill property is located on the Getchell Trend, a major  Nevada linear structure that has provided structural preparation for  the introduction of gold and silver mineralization related to  Cretaceous intrusive rocks that are found along the trend. Granodiorite  intrusive rocks and skarns developed around the intrusive rocks are  located near the Getchell and Pinson deposits to the north of the  property and at the Adelaide deposit to the south of the property. The  Getchell deposit (approximately 25 miles to the NNE) and Pinson deposit  (approximately 20 miles to the NNE) are both multi-million ounce gold  deposits with Getchell exceeding 10 million ounces. The Adelaide  deposit located approximately 3.5 miles to the SSW has reported  historic gold and silver production. 

 The Silver Hill property is comprised of 72 unpatented claims  encompassing a 2,500 to 3,000 foot long shear zone that transects the  western flank of Edna Mountain. The presence of silver, copper, arsenic  and tungsten in the mineralized shear zone, which is thought to be part  of the Golconda Thrust, suggests potential for sediment-hosted and/or  skarn-related gold mineralization, similar to the Adelaide and McCoy  deposits to the southeast, or possibly related to adjacent intrusive  activity and gold-silver mineralization found near skarns at the  Chimney Creek, Getchell, Pinson and Preble mines to the north. 

 NSGold's management considers the Silver Hill property to be highly  prospective for the following reasons: 




      1. Permissive stratigraphy - lower-plate rocks occur on the property,
         which are the same formations that host gold-silver mineralization
         at the Pinson, Preble and Adelaide deposits,
      2. Structural preparation is extensive, as evidenced by both
         high-angle Basin-Range faults and the Golconda Thrust on the
         property,
      3. Nearby granodiorite intrusive rocks - such intrusive rocks are
         associated with both tungsten-bearing skarn and gold-silver
         mineralization at all of the mines in the Getchell Trend (Chimney
         Creek, Getchell, Pinson, Preble and Adelaide),
      4. Strong silver and associated metals - sampling by several
         independent geologists and prior owners established the presence
         of high-grade silver associated with gold, copper, arsenic and
         tungsten, and
      5. Location - Silver Hill is located within the Getchell Trend, a
         well-known lineament in Nevada proven to host economic gold-silver
         deposits.




 Glenn Holmes, Chief Executive Officer of NSGold Corporation, commented; 

 "We are excited to have been able to secure the option on the Silver  Hill property.  With the property being located in one of the most  supportive mining jurisdictions in the world coupled with it being on  an under-explored part of the prolific Getchell Trend, Silver Hill will  be a great addition to NSGold's property portfolio.  Our team continues  to review other prospective acquisition opportunities as we work to  further enhance NSGold's property portfolio." 

 Under the terms of the Letter of Intent, NSGold may, at any time during  the ten-year term of the definitive Option Agreement, purchase a 100%  interest in the Silver Hill property by making a cash payment of  US$1,250,000.  The Letter of Intent also provides that NSGold is  required to make a payment of US$50,000 upon execution of the  definitive Option Agreement, and to make advance minimum royalty  payments as follows: US$25,000 on or before the first anniversary of  the signing of the definitive Option Agreement, US$35,000 on or before  the second anniversary of signing, and $50,000 on or before the third  and subsequent anniversaries. The advance minimum royalty payments will  be credited against a 3% production royalty based on net smelter  returns from production or sale of minerals. NSGold will have the right  to purchase 2% of the production royalty for US$1,500,000 prior to the  commencement of production. The Letter of Intent further provides for  certain bonus payments by NSGold in the event that it exercises the  purchase option and certain resource thresholds are achieved. A bonus  payment of US$1,000,000 will be payable to the optionor if NSGold  delineates or publishes a measured or indicated resource on the Silver  Hill property compliant with National Instrument 43-101 which includes  a contained gold or gold equivalent content in excess of 1 million  ounces. An additional bonus payment of US$2,000,000 will be payable by  NSGold to the optionor if the contained gold or gold equivalent content  is in excess of 2 million ounces. 

 NSGold's right to acquire the Silver Hill property is conditional upon  the parties negotiating and signing a definitive Option Agreement. 

 Qualified Person 

 Perry MacKinnon P. Geo., Chief Geologist, for NSGold, a qualified person  as defined by National Instrument 43-101 has reviewed the information  provided in this news release. 

 About NSGold 

 NSGold Corporation is a mineral exploration company actively exploring  for gold in Nova Scotia, Canada. NSGold's principal property is the  Mooseland Gold Property. NSGold's shares are listed on the TSX Venture  Exchange under the symbol NSX. 

 Forward-Looking Statements  

 This news release contains statements that may constitute  "forward-looking information" or "forward-looking statements" within  the meaning of applicable Canadian securities legislation.  Forward-looking information and statements may include, among others,  statements regarding the future plans, costs, objectives or performance  of NSGold Corporation ("NSGold"), or the assumptions underlying any of  the foregoing.  In this news release, words such as "may", "would",  "could", "will", "likely", "believe", "expect", "anticipate", "intend",  "plan", "estimate" and similar words and the negative form thereof are  used to identify forward-looking statements.  Forward-looking  statements should not be read as guarantees of future performance or  results, and will not necessarily be accurate indications of whether,  or the times at or by which, such future performance will be achieved.   No assurance can be given that any events anticipated by the  forward-looking information will transpire or occur, or if any of them  do so, what benefits that NSGold or its shareholders will derive.   Forward-looking statements and information are based on information  available at the time and/or management's good-faith belief with  respect to future events and are subject to known or unknown risks,  uncertainties, assumptions and other unpredictable factors, many of  which are beyond NSGold's control.  These risks, uncertainties and  assumptions include, but are not limited to, those described under  "Risks and Uncertainties" in NSGold's Management Discussion and  Analysis for the Year ended December 31, 2011, which is available on  SEDAR at www.sedar.com, and could cause actual events or results to differ materially from  those projected in any forward-looking statements.  NSGold does not  intend, nor does NSGold undertake any obligation, to update or revise  any forward-looking information or statements contained in this news  release to reflect subsequent information, events or circumstances or  otherwise, except if required by applicable laws. 

 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. 

NSGOLD CORPORATION


CONTACT:  Glenn A. HolmesChief Executive Officer, NSGold Corporation(902) [e-mail] 


    

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