Novus Gold Corp

Company News

Jan 13, 2010

WIDE GOLD ZONE IDENTIFIED BY DRILLING ON REN PROPERTY IN NORTHWEST TERRITORIES
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Overview

Novus Gold Corp. is a Canadian-based gold explorer, which has assembled a proven team, with the capabilities to find, finance and develop gold assets which have world class size and grade potential. The Canadian Shield in Canada and the Caribbean Platform in the Dominican Republic are two regions that the company has selected to begin acquisitions and work.

People

Mike Magrum, President and CEO of Novus Gold

Mike Magrum is the President and CEO of Novus Gold and is instrumental (as a qualified person under National Instrument 43-101) in the technical management of all of Novus’ current Gold properties. He is also responsible for the project generation and acquisition of key Gold properties across North America. Mr. Magrum is a geological engineer who has been working in gold exploration since 1974. He is a graduate of the Haileybury School of Mines and the University of Alaska. His worldwide experience covers most of the gold mining camps in North America plus extensive work in Nicaragua, the Dominican Republic, Argentina and Indonesia. He was a founding director of Seabridge Gold, which acquired a major gold property portfolio containing multi-million-ounce gold resources and currently has a market capitalization of approximately $1 billion.

Robert McMorran, Director and CA

Robert McMorran, Director and CA, is the president of Malaspina Consultants Inc., an accounting and administrative management services business serving junior public companies since 1997. Mr. McMorran obtained his Chartered Accountant designation in 1981 while articling with Coopers & Lybrand's Vancouver office. In 1982 he left C&L and joined Denison Mines Limited's Coal Division where he spent five years primarily working on the Quintette Coal Project located in northeast B.C. In 1987 Mr. McMorran joined Cheni Gold Mines Inc., a TSE listed junior precious metal company as the corporate controller, where he spent ten years, eventually being promoted to President/CEO. Mr. McMorran has held numerous board positions and senior officer appointments since starting Malaspina, including his tenure as the Chief Financial Officer of the highly successful Canada Dominion Resources Group of flow-through limited partnerships.

Jim Walchuck, Director, (BSc., PEng)

Jim Walchuck, Director, (BSc., PEng) is a mining professional with more than 28 years of national and international experience in the minerals industry, including work in North America, Slovakia, the UK, Ghana, and Tanzania. As the president and CEO of Tournigan Gold Corp, Walchuck raised $45,000,000 in 2006 for the purpose of developing Tournigan’s two key assets and helped increase Tournigan’s market cap from $20M to approximately $200M over a one year period. Mr. Walchuck was the Manager Mining for Barrick at the Bulyanhulu Gold Mine in Tanzania from 1999 to 2002. There he oversaw the building of a multi-million-ounce, high-grade underground mine in 24 months and achieved over 2 million man-hours without a lost-time accident. Prior to his 6-year involvement with Bulyanhulu (first as Sr. Project Manager with Sutton Resources then as Manager Mining for Barrick), Mr. Walchuck was Manager of Mining and then Manager - Corporate Operations for Royal Oak Mines. This was preceded by a 5-year term as Chief Mining Engineer for Tarkwa Goldfields in Ghana. A member of the Professional Engineers of Ontario for 28 years, Mr. Walchuck holds Bachelor Degrees in both Science and Engineering.

Gunther Roehlig, Director

Gunther Roehlig, Director, is also the President and CEO of Terra Ventures, a junior Uranium mining and exploration company. In his role as President and CEO of Terra, Mr. Roehlig plays a pivotal role in all of the company's business development and corporate financings. He has more than 15 years of experience in the financial & investment industry, with a successful track record in restructuring, managing and financing junior public companies. Fluent in English and German, Mr. Roehlig also has experience in European business and financial markets. He currently serves on the board of directors for a number of public junior resource companies.

Property

Ren Gold Property, Northwest Territories
Location: 380 Km north northeast of Yellowknife, Northwest Territories
Size: 24,674 acres



History

Two gold showings were discovered in the REN claims area in 1964 by Point Lake prospecting Syndicate (AR 017346, 017348). Ten years later another two gold showings were found by Texas Gulf Incorporated (AR 080527). Twenty-six holes were drilled totalling 3,145 metres.

The claims lapsed in 1986, and Cominco acquired them in 1987. They entered into a joint venture with Westview Resources Incorporated. In 1988, a 240 line-km airborne magnetic and EM survey was completed and ground geophysics and geological mapping and sampling followed up on anomalies. Eleven BQ-sized holes totalling 1,280 metres tested seven conductors (AR 082743). In 1989 four holes totalling 1,372 metres tested the Main Zone. One hole intersected 9.3 g/t Au over 6 metres.

In 1990, 200 line-km of HLEM, magnetic, and gradiometric surveys were completed (AR 082944) and eighteen diamond drill holes totalling 2,396 metres tested eleven conductors. Six holes were drilled in the Main Zone and its north strike extension. A new showing (Grizz) was tested by three holes. It may be an extension of the Main Zone iron formation.

Bedrock and Mineral Deposit Geology

The area is within the Slave Geological Province and is underlain by sedimentary and volcanic rocks. Greywacke and mudstone turbidites are interbedded with iron formation; these rocks are north trending and steeply dipping. Intermediate to felsic volcanic rocks outcrop on the claims. Mackenzie diabase dykes crosscut all rock types.

In the Main Zone, four zones of auriferous iron formation between 10 and 35 metres thick were intersected to a depth of 290 metres. The strike length may exceed 500 metres.

Significant Results

The Banner Zone, a new showing in iron formation, was discovered in 1989. Chip samples assayed up to 198 g/t Au and the zone could be traced by magnetometer for 600 metres. Westview Resources Incorporated reported in 1990 that the Main Zone indicates the potential for a 1.8 to 2.7 million tonne deposit in the 10 g/t Au range.

Current Activity

• Novus and Terra announce wide gold zone identified by drilling on REN Property


• Gold assay values ranging between 2 to 3 g/t were reported for intersections that ranged from 10.61 to 32.76 metres


• High-grade gold, up to 22.40 g/t gold across 0.65 metres, was also intersected within the zone


• $1,500,000 drilling program on nine holes completed December 2009
  
• Novus Gold has 49% working interest (Terra Ventures has remaining 51% working interest) in 14 mineral exploration claims comprising 24,674 acres

Qualifying statement on potential resource estimate
The potential resource estimate cited in this press release was prepared by Westview Resources Incorporated in 1990. At the time, Cominco was a partner in the property. Details of the calculations are not available; therefore it is not possible to compare the categories of resource with those required by NI 43-101. The company believes that the estimate is relevant to an appraisal of the merits of the property because the estimate was based on all drill data available at the time, and because there is no evidence of any subsequent work on the property. No more recent data or resource estimates are available in the public domain. No work has been done by a qualified person to classify the potential resource estimate as a current resource or reserve. The company is not treating the potential resource as a current mineral resource or reserve. The potential resource estimate should not be relied on.
From: A Guide to the Mineral Deposits of the Northwest Territories.

La Yagua Copper/Gold Property, Dominican Republic

Overview

The La Yagua concession is 9,900 hectares (24,500 acres) in area and is located 20 kilometers SW of La Paciencia in rocks belonging to the Duarte formation. This concession is considered to be along strike the producing Cerro de Maimon mine (6 million tonnes of 2.5% copper, 1.2 g/t gold and 38 g/t silver). Preliminary prospecting on this concession has located a zone of silicified and massive sulfide. The silicified and massive sections yielded 2.3 g/t and 8.6 g/t gold, respectively. Access to the property is from the main Duarte highway and secondary roads, approximately 1 hour from the capital city, Santo Domingo.

Current Activity

August 2009 – Novus Gold Discovers Gold-Copper Zone Outlined In Its Dominican Republic Property

• Recently completed exploration program has led to the discovery of a one kilometer long, north-south trending, gold and copper mineralized structure outlined by gossans.


• Grab samples of oxidized material grade up to 13 grams gold per ton, 41 grams silver per ton and more than 50% of the samples graded more than 1% copper (10,000 ppm geochemical).


• The mineralized zone displays classic VMS (volcanogenic massive sulphide) characteristics: rock alteration consists of quartz-sericite, sericite and chlorite and is stratabound between an andesite footwall and a dacite hanging wall.


• The mineralization on the La Yagua property is located on the same stratigraphic interface as the Cerro de Maimon mine (Globestar Mining) located 19 km away that is exploiting a VMS deposit (6Mt of 2.5% Cu, 1.2 g/t Au, 38 g/t Ag and 1.5% Zn).


• There is potential for 14 kilometers of this favorable interface on the Novus property.

La Pacienca Gold Property, Dominican Republic

The La Paciencia concession is 8,600 hectares (21,250 acres) in area and is located 10km West of the Pueblo Viejo gold deposit. Underlying rocks belong to the Los Ranchos formation, the same as Pueblo Viejo. The only recorded work on the property is stream sediment sampling with minor prospecting. Results indicate a presence of gold, copper and zinc mineralization. There has been no prospecting on the hill tops, where silicified mineralization such as in Pueblo Viejo, is expected to be found. Access to the property is from the main Duarte highway and secondary roads, approximately 1.5 hours from the capital city, Santo Domingo.

Politics

The Dominican Republic (DR) is a stable Caribbean country that shares 2/3 of the island of Hispaniola with Haiti. Mining activity has a long history going back, going back to Christopher Columbus in 1492. Gold was shipped back to Spain the year following Columbus’s arrival on the island.

In modern times, the Dominican government extracted 5.5 million ounces of gold from the Pueblo Viejo deposit between 1971 and 1984. They mined only the oxide facies of this 30 million ounce gold resource and when the sulfides were encountered, were unable to extract the gold. The deposit is presently owned by Barrick and Goldcorp (60/40). On February 27/08, Barrick submitted a feasibility to the Dominican government, for the development of this gold resource. They projected 20.4 million ounces of gold, 117.3 million ounces of silver, 423.6 million pounds of copper and 2,700 million pounds of zinc to be mined over a 25 year mine life. The mine will create approximately 3,500 jobs and have a capital cost of 2.7 billion dollars.

Paper

Shares Issued & Outstanding: 33,584,500
Warrants: 6,662,000 @ $0.30 until April 11, 2011
Brokers Warrants: 1,325,000 @ $0.30 until April 11, 2011
Options: 2,000,000 @ $0.15
1,358,500 @ $0.30

Cash in treasury ~$2,200,000

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