New Guinea Gold has raise Can$5,04 million which will be used for working capital for the Sinivit project and to fund a second drill at the Imwauna project.

The Sinivit Gold Project is 50km south-southwest of Rabaul in the Baining Mountains of the Gazelle Peninsula, East New Britain Province, Papua New Guinea.

The company received its government development approvals in mid 2005 to start development of Sinivit. This involves mining the oxide cap of a quartz, telluride, copper, gold system.

Although the initial project has a relatively short life, New Guinea Gold has an active exploration/development program with the objective of defining additional gold mineralization. The known mineralization is open at depth and there are numerous other, as yet unexplored, targets within the Sinivit properties.

It is expected to take three months from the start of commissioning to build up to achieve the projected annualised production rate of 35,000 ounces of gold. All major equipment is on site, key personnel are at site, all permits such as cyanide use and licensing of explosive magazines are in place, infrastructure and roads are essentially complete, and the final shipment of key chemicals is on site.

News sourced from International Mining Project News - www.im-mining.com