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NSGold research and analysis

Contributed by eResearch

By Bob Weir

Dios Padres

NSGold Corporation has reported on the progress at its Dios Padres silver project in the State of Sonora, Mexico.

The Company recently completed a comprehensive geological survey over the property, including a systematic rock geochemical sampling program, a ground-based 3D Induced Polarization geophysical survey (3D-IP), and a magnetic survey that was done simultaneously with the 3D-IP.

The geophysical survey identified high-chargeability anomalies corresponding to surface geochemical anomalies of copper, gold, silver and arsenic (a pathfinder element in gold exploration).

The 3D-IP geophysical survey revealed a large conductive anomaly lying just north of the most recent historic mining operations, striking east-west. This anomaly is a prime target for future exploration.

The next phase of the exploration program will begin on receipt of an updated Technical Report on Dios Padre (expected later in January 2012). The Company is fully funded for this phase of the program.

Spin-Out of NSX Silver Inc.

NSGold is spinning out to its shareholders the shares of NSX Silver Inc., a wholly-owned subsidiary of NSGold. The spin-out involves the separation of the Company’s gold and silver assets, with NSX Silver Inc. holding the Company’s silver assets.

NSGold has announced that, in order to complete the spin-out, it is required to file an updated Technical Report (compliant with NI 43-101) for the Dios Padre property. The report will include the results of the aforementioned surveys, as well as a recommended exploration program for the property. The report has been commissioned, and is expected to be filed on SEDAR at www.sedar.com, later in January 2012.

THE COMPANY

NSGold is a Canadian mineral exploration company, exploring for gold in Nova Scotia, and in the process of acquiring a silver property in Mexico.

The Company’s flagship property is the 100% owned Mooseland gold project. NSGold also holds, under an option agreement, five early-stage gold and base metal exploration properties in Nova Scotia: Leipsigate, Indian Path and Blockhouse (all former gold-producing properties), and French Village and Cheticamp (gold and base metals).

NSGold has entered into a definitive option agreement with Cia Minera Pena Blanca SA de CV (“Pena Blanca”), whereby NSGold can acquire 100% ownership of the Dios Padre silver property in the Municipality of Yecora, State of Sonora, Mexico. The property includes the historic Dios Padre silver mine.

The Dios Padre property, covering an area of 285 hectares (three contiguous claims), is situated in the Sierra Madre Oriental in a Cretaceous volcanic stratigraphic sequence, host environment for significant gold and silver deposits. The deposit would require underground mining at lower levels. NSGold is currently in the process of spinning out its wholly-owned subsidiary NSX Silver Inc.

RECOMMENDATION AND TARGET PRICE

Our Recommendation and Target Price for NSGold shares are Under Review, pending the separation of the Company’s gold and silver assets.

eResearch Analysts:
Yuri Belinsky, B.A., M.A
Bob Weir, B.Sc., B. Comm, CFA