Garrcon Deposit

Garrcon Metallurgy Report 2011

Garrcon Geology

The Garrcon Deposit on the Garrison Gold Property includes the historic Shaft, South and North Zones containing gold mineralization. It occurs within the Timiskaming Assemblage adjacent to the Destor-Porcupine Fault and is described as a zone of brecciated, silicified, very fine and fine grained pyroclastic tuffs and crystal tuffs, intruded by very fine grained hypabysaldacites and syenites, and some mafic volcanics with disseminated sulphides (pyrite and arsenopyrite) and irregular quartz veinlets. Metallurgical test work conducted by SGS Mineral Services (“SGS”) on two composite core samples from the Garrcon recently confirmed the free milling nature of the mineralization and overall excellent gold recovery rates (see Press Release - 022411.pdf).

Sulphide-bearing gold mineralization in the Garrcon North and Garrcon Shaft/South zones is hosted by Timiskaming-age metasedimentary/volcanic rock sequences, occurring adjacent to the Destor-Porcupine Fault Zone. These sedimentary/volcanic rock sequences have been hydrothermally altered and mineralized in distinct zones that persist to depths greater than 500 meters vertically. Native gold grains and sulphide-bearing gold mineralization occurs in quartz carbonate vein stockworks. In this environment, native gold may be associated with or enclosed within sulphides or occur as native grains within cross-cutting quartz veins.

Principle minerals are native gold, pyrite, magnetite, specularite and pyrrhotite with subordinate chalcopyrite, sphalerite, galena and arsenopyrite. Gangue minerals are vein quartz and carbonate (mainly dolomite with minor ankerite and calcite). Pervasive wall rock alteration is common adjacent to the veins, usually consisting of carbonisation (ankerite or ferroan dolomite) and sulphides (pyrite, arsenopyrite, and pyrrhotite).

In the Garrcon Technical Report, Howe indicates that Garrcon mineralization extends over a broad zone that is about 760 meters long and averaging approximately 275 meters wide. Most of the length of the mineralized footprint is bounded on the south by the Destor-Porcupine Fault and on the north by a unit of mafic volcanic rock intercalated within the Timiskaming Metasediments/pyroclastic volcanics.

Previous Work

The Garrcon shaft was sunk in 1935 and 1936 by the Consolidated Mining and Smelting Co. of Canada (Cominco) and the Shaft and South zones were tested for high grade gold mineralization with about 1,300-2,200 meters of drifting and cross cutting on the thirty-seven and seventy-four meter levels. During the 1940’s and 50’s, sporadic exploration work was done including magnetic surveys and diamond drilling. Diamond drilling by Cominco and Lac Minerals in the mid to late 1980’s identified broad sections of gold mineralization. Gold prices at that time failed to encourage any further work. In 2006 and 2007 ValGold Resources conducted additional drilling to depths exceeding 500 meters vertically and again confirmed broad zones of gold mineralization averaging from 0.75 to 1.5 grams per tonne.

Northern Gold has benefited from the previous work done by Cominco, Lac Minerals and ValGold with the development of a shaft and underground workings and the completion of 54 historic diamond drill holes totalling 14,560 meters. Most of the historic data from Cominco’s work is available and all of the logs, drill core and many of the pulps and rejects exist. Data from the 54 diamond drill holes plus 11 holes drilled by Northern in 2009 provide the foundation for the NI 43-101 Technical Report containing the first time resource calculation for the Garrcon Deposit. Additionally, historic mining infrastructure can be found at both advanced stage deposit sites including a ramp and shaft located at the Jonpol Deposit site.

The NI 43-101 Technical Report for the Jonpol completed in October of 2009 recommended that the Garrcon Deposit should be seriously evaluated for its open pit bulk tonnage potential and warrants additional expenditures including a recommended program of diamond drilling, metallurgical research, geophysics and other exploration activities.

Highlights

Northern Gold’s highly successful diamond drilling program during the fall and winter of 2009 confirmed the broad sections of consistent gold mineralization on the Garrcon as reported by previous operators. This drilling, in conjunction with the 54 holes drilled by previous operators, resulted in a first time resource announcement in September 2010. The estimate reported an indicated resource of 3,780,000 tonnes of ore grading at 1.2 grams per tonne or 144,000 ounces of gold and an inferred resource of 18,500,000 tonnes of ore grading at 0.9 grams per tonne or 530,000 ounces of gold. Although similar gold mineralization was encountered by a few deep holes to depths in excess of 500 meters, Northern Gold is currently focusing on drilling the top 200-250 meters of mineralization. This is expected to enable the company to develop sufficient resources to enable the company to reach a production decision at the earliest possible time.