NFX and Maximus Resume Drilling at Larder Lake Gold Project, Ontario
Up to 16,000m of drilling in 24 holes To Test Historic Resources & New Targets
Toronto and Vancouver – June 5, 2006: NFX Gold Inc. (TSX Venture Exchange Inc.: NFX)
and Maximus Ventures Ltd. (TSX Venture Exchange Inc.: MXV) announced today that diamond
drilling has commenced at the Larder Lake gold project near Larder Lake, Ontario. The 2006
drill program has located sites for an initial 10 holes, with up to 24 holes possible by the end of
the year (6,600 to 16,000 meters), all focused on resource expansion and regional exploration
around the historic Cheminis gold mine. The Cheminis gold mine is hosted in similar rocks and
is on the same zone of faulting as the Kerr Addison gold mine and the Kirkland Lake district
(respectively 2 kilometers east and 19 kilometers west of the property), which in the aggregate
have produced approximately 37 million ounces of gold.
2006 Exploration Objectives
The objectives of the 2006 drill program are to test:
1. For high grade gold mineralization below and adjacent to the Cheminis gold mine, as
well as the Fernland and Bear Lake prospects;
2. Several shallow, near-surface zones of gold mineralization for their potential to host
resources that might be amenable to open pit mining; and
3. Shallow and deeper gold targets on three regional-scale fault zones north of the Cheminis
mine for Kerr Addison type deposits.
The regional scale faults are part of the Larder Lake Break, a larger zone of connected faults that
extends over 200 kilometers east from Kirkland Lake, through Larder Lake, to Val d’Or, along
which numerous large gold mining districts are located. Target areas for the drilling are shown
on the map at the end of this release.
“The presence of three essentially untested faults, close to zones of known gold mineralization,
enhances the potential for new discoveries on the Larder Lake property,” said Frederick
Graybeal, President & CEO of Maximus. “Further exploration for new ore zones near the
existing Cheminis resource is justified by improved gold prices, a better understanding of
potential geologic controls on gold mineralization within the region and the recognition of three
parallel, essentially untested, Kerr-Addison style, regional faults that appear to act as the
pathways for mineralizing fluids.”
Cheminis Mine
The Cheminis mine hosts an in situ Measured and Indicated Mineral Resource of 1,619,082 tons
grading 0.175 oz/ton gold and an in situ Inferred Mineral Resource of 924,275 tons grading 0.189
oz/ton gold (see NFX’s National Instrument 43-101 Technical Report dated November 20, 2003,
prepared by MRB & Associates, available on SEDAR). These estimates were prepared by G. M.
Hogg in 1998, in accordance with National Policy 2A, the requirement in 1998 when the resource
estimates were made, and as such, are not NI 43-101 compliant.
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Most of the 876 holes drilled previously at Larder Lake have focused on the fault strand that
controls gold mineralization at the Cheminis mine and Fernland, Bear Lake and Barber Larder
prospects. However, an analysis of assays and geologic information in the property database by
consultants to NFX and Maximus has identified 3 additional altered and mineralized fault zones
north of the Cheminis mine. These three fault zones extend across a cumulative 11 kilometers of
the project and a compilation of historic data indicates very limited drilling along these important,
ore controlling structures. The northernmost of these structures may extend through the site of
the now-closed Kerr Addison mine (11 million ounces of gold produced at a grade of 0.29 oz
Au), located 2 kilometers to the east of the project property boundary.
Further information on the Larder Lake Property can be found in a Maximus report titled
"Technical Report, NI-43-101 & 43-101F1, LARDER LAKE PROPERTY, Larder Lake, Ontario",
dated February 20, 2006, prepared by MRB & Associates, and also filed on SEDAR.
Larder Lake Property
The Larder Lake project consists of the Cheminis, Bear Lake, and Fernland properties (all 100%
NFX owned) and the Barber Larder property (75% NFX owned). Under the joint venture option
letter agreement between NFX and Maximus signed on November 24, 2005, and closed on March
3, 2006 Maximus acquired the right to earn a 60% interest in NFX’s interest at Larder Lake by
expending $6 million on exploration thereon by December 31, 2008. Minimum expenditures
must total $700,000 by July 31, 2006 to continue the option. As part of the option and joint
venture agreement, NFX has issued to Maximus 8,000,000 NFX warrants expiring in annual
blocks or under certain NFX market share price thresholds, as described by Maximus in an April
21, 2006 news release.