May 4, 2011
There are 2 new research write-ups on NioGold Mining (TSX-V: NOX). The first is a full recommendation from Northern Securities with a target price of .85. The second is an excerpt from NCP Northland Capital Partners research report on Aurizon – focusing on the joint venture with NioGold Mining. Click on the links for the full articles as they are posted on the NioGold website.
Northern Securities - http://niogold.com/wp-content/uploads/2011/05/20110504-NioGold-Report.pdf
NioGold Mining (TSXV:NOX
.34)
SpecBuy
.85 (New)
Market cap: $33M
We are initiating coverage of NioGold (report attached), an undervalued gold exploration focused on the Abitibi Gold Belt. NioGold Key aspects of the company include a joint venture with Aurizon Mines (TSX:ARZ) on its Marban Block, which currently has a 959,000 oz gold resource. Aurizon is earning 50% by spending $20M on exploration over 3 years. The JV agreement also calls for a resource payment to be made based on an updated 43-101 estimate that, as an example, would result in payments of $25 to $35M if the current resource is increased to 2M ounces. The JV with Aurizon alone justifies NioGold's current market capitalization, but the company also has a JV with GeoMega Resources (TSXV:GMA), whereby Geomega ie earning in to NioGold's Montviel and Pump Lake rare earth properties. GeoMega currently has a market cap of $60M, but the market is not attributing much value of this JV to NioGold. Furthermore, we believe there is significant discovery potential on NioGold's 120 square kilometers of land holdings, as only about 20% of seen advanced or deep exploration. With Osisko (TSX: OSK) next door, NioGold is certainly in the right neighborhood for gold discoveries.
Rob Bruggeman MBA CFA
Institutional Equity Sales
Northern Securities
B: 416 644-8174
C: 647 654-1759
Excerpt from NCP Northland Capital Partners research report on Aurizon
http://niogold.com/wp-content/uploads/2011/05/Pages-from-Aurizon_Mines_Ltd.pdf
For further information please contact:
Dale Paruk
NioGold Mining
Tel: 604-662-4505
Toll-free 1-877-642-6200
Email: dparuk@niogold.com
