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RC drilling on the Iceberg Deposit in Nevada, USA

Wildcat Hole Helps NuLegacy Extend Iceberg Gold Prospect in Nevada

While a measured exploration strategy and the working of high quality prospects is certainly a smart approach in this market, it doesn’t hurt to throw a dart at the board now and then.

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RENO, NEVADA–(Marketwired – July 22, 2014) – NuLegacy Gold Corporation (TSX VENTURE:NUG)(PINKSHEETS:NULGF) is pleased to report that step-out drilling of its Iceberg gold deposit in the Cortez trend of Nevada has discovered a new southern zone of gold mineralization and has confirmed a further north-west extension to the Central zone of the deposit.

“These results, together with those reported June 23 and July 8, 2014 confirm extensive and widespread gold mineralization in the Iceberg gold deposit. The deposit now has an apparent strike length in excess of 3,000 meters (circa 10,000 feet) and is open in all directions,” commented Dr. Roger Steininger, NuLegacy’s COO responsible for exploration programs. “This phase of the 2014 drilling program confirms significant quantities of gold are present in up to three distinct gold horizons in the Iceberg deposit which greatly increases the possibilities of delineating a threshold(i) gold resource.”

NuLegacy Gold is a junior exploration company actively exploring in the prolific Carlin-type gold district in Nevada, USA. The company discovered the Iceberg deposit within its Red Hills property in December 2010. The Iceberg deposit is located along the Cortez trend within the Carlin-type gold district and is compared to Barrick Gold’s Goldrush deposit only 4 km northwest of the Iceberg. We have included a map of the region below.

The companies business model is to focus on favorable properties that could lead to discovery. The company optioned the property from Barrick Gold to earn a 70% interest by spending $2.9 million in exploration by the fall of 2015. If this requirement is completed Barrick could earn back this interest by spending $15 million over 5 years, remain as a minority in the joint-venture or convert NuLegacy’s 30% to a ‘carried over to production’ interest.  Upon discovery of the Iceberg deposit, NuLegacy moved all of their attention to this project in hopes of selling it back to Barrick Gold.

Plan view of NuLegacy's Iceberg deposit with respect to Barrick Gold's Goldrush deposit

Plan view of NuLegacy’s Iceberg deposit with respect to Barrick Gold’s Goldrush deposit

New South zone: Hole RHB-27 was a wildcat exploration hole stepped out 970 meters/3,200 feet to the south along the strike of the Iceberg deposit’s North and Central gold zones and returned two intervals of gold within the Devonian carbonates: 0.40 grams of gold/ton over 12.2 meters/40 feet and 1.11 grams of gold/ton over 6.1 meters/20 feet within 0.50 grams of gold/ton over 18.3 meters/60 feet (see table below).

The company drilled a “wildcat’ exploration hole 970 meters to the south of it’s Iceberg deposit. Wildcat exploration holes are drilled on unproven ground. It’s equivocal to throwing darts on a dartboard. These are high risk and could result in returning nothing of significance. Luckily for NuLegacy, the hole returned fairly reasonable gold grades comparable to other Carlin-type gold deposits over several intervals.

The presence of two mineralized intervals in silicified carbonates with favorable oxide gold grades establishes the Iceberg deposit extends a full 970 meters south of the previously identified zones of gold mineralization. RHB-27 is at the southern end of a geochemical ‘gold in soil’ anomaly that indicates a much larger exploration target than previously recognized. The three gold zones (North, Central and South) of the Iceberg deposit now extend over 3 kilometers and have all of the characteristics of a well-mineralized Carlin-type gold deposit. Additional drilling will be planned to establish the dimensions of this new South zone and determine its connection to the Central zone.

Although the company stated the hole was a wildcat exploration hole, they did have some guidance. So it technically isn’t a true “wild cat”.  The hole was drilled in the southern end of a gold soil anomaly, so there is some scientific reasoning to the drill planning.

Expansion of Central Zone: Hole RHB-26, another large 200 meters/660 feet step-out to the northwest of the Central zone returned 0.18 grams of gold/ton over 47.3 meters/155 feet from 93.0 to 140.3 meters. This lengthy interval effectively extends the mineralization in the Central Zone to 950 meters of strike length, and leaves the Central zone open in all directions.

Assay Highlights
Hole Zone From To Length Grade
Number (m) (m) (m) grams/t gold
RHB-27 South 56.4 68.6 12.2 0.40
and 82.3 100.6 18.3 0.50
including 83.8 89.9 6.1 1.11
RHB-26 Central 93.0 140.3 47.3 0.18
NB. These intercepts are not necessarily the true width as there is insufficient data at this time to calculate their true orientation.

 

The results posted here are comparable to most carlin-type deposits, but we should also take note that these only represent the apparent thickness.  

Holes RHB-21 and 22 contained intervals of anomalous gold with strong Carlin-type gold deposit trace element signatures. The results of all the holes from this phase of the 2014 drilling program (May 7 to July 9) will be integrated into the current exploration model (90 to 110 million tonnes grading between 0.7 g/t and 1.0 g/t of gold(ii)) to determine the selection of the next set of drill holes targeted to expand the Iceberg deposit. Updated sections will be posted on our website when the integration and analysis has been completed.

Reverse circulation drilling on the Iceberg Project was conducted by Boart Longyear Company of Elko, NV under the direction and supervision of NuLegacy Gold’s COO, Dr. Roger Steininger (CPG 7417). All of the drill hole samples are analyzed for gold and a trace element suite by American Assay Labs. of Sparks, NV. Sufficient commercially prepared standards, blanks, and duplicates were inserted to assure quality analytical results. Data verification of the analytical results included a statistical analysis of the duplicates, standards and blanks that must pass certain parameters for acceptance to ensure accurate and verifiable results.

Carlin-type gold deposits occur near the surface in soft sediment and limestone. RC drilling is a fast, effective drilling technique to evaluate and prospect for these types of deposits. The company also has ensured that proper QA/QC procedures were in place for accurate and precise assay results.

NuLegacy Gold Corporation is a Nevada based company focused on creating shareholder value by delineating gold resources in its Iceberg oxide gold deposit. The Iceberg gold deposit, located on a 60 square km option of Barrick Gold Corporation’s prolific Cortez gold trend, has similar geology to that of Barrick’s immediately adjacent multi-million ounce Goldrush(ii) gold discovery.

NuLegacy Gold is currently trading at $0.12, sitting fairly comfortably between it’s 52-week range of $0.07 to $0.18.

Gold prices have been slowly advancing over $1300/oz  during the last month, and the attention is slowly turning back towards gold miners. While a measured exploration strategy and the working of high quality prospects is certainly a smart approach in this market, it doesn’t hurt to throw a dart at the board now and then. This “wildcat” could help NuLegacy significantly expand it’s gold prospects at Iceberg.

On Behalf Of The Board Of Directors Of NuLegacy Gold Corporation

James E Anderson, Chief Executive Officer

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Geology for Investors seeks to demystify mineral exploration and mining projects for mining company investors. All of our writers and contributors are experienced and educated in geology and the geosciences.