METALLURGICAL TESTS: Ore from old Carolin mine amenable to modern gold recovery techniques

BRITISH COLUMBIA – As part of its advanced Ladner gold project near Hope, New Carolin Gold Corp. has had samples from the former Carolin gold mine tested by SGS Canada. Testing demonstrated that a 96.3% recovery rate for gold is possible by pre-treating gold concentrate under pressure oxidation (POX) followed by carbon-in-leach (CIL) recovery. The overall recovery of gold by flotation-pressure oxidation-cyanidation combined with cyanidation of the flotation tailing is 94.5%.

New Carolin ordered the metallurgical tests as part of the preliminary economic assessment for the old Carolin mine and the McMaster zone. The Carolin mine operated from 1982 to 1984, producing 43,500 oz of gold for owner Carolin Gold Mines. It was closed as the result of a falling gold price, poor gold recovery rates and low head grades due to dilution.

Recent work at the McMaster zone consisted of 1,600 metres of drilling in 2009-10. Underground work included of re-opening and inspecting the underground workings and re-building the 900 portal. The McMaster zone has an inferred resource of 3.58 million tonnes grading 0.69 g/t Au using a 0.50 g/t cut-off.

At the same cut-off the former Carolin mine has an inferred resource of 12.35 million tonnes grading 1.53 g/t Au.

A model of the Carolin mine is posted at NewCarolinGold.com.