Nulegacy Gold Corp. (NUG-TSXV) ranked among the most actively-traded stocks on the TSX Venture Exchange Friday after the company released drill results from its 100%-owned Red Hill property in Nevada.
Results released Friday are from the first three of eight holes completed on the northwest quadrant of the Anticline target area. The company recently said four holes were drilled to depths of between 950 metres and 746 metres.
Highlight assays included hole RA21-01, which returned numerous intervals of between 10-50 ppb gold over 211.8 metres.
â€œAlthough no economic gold grades were encountered in these three holes, very long intervals of anomalous gold indicate the presence of a large hydrothermal system within the target area,â€™â€™ the company said in a press release. â€œAlteration typical of Carlin type gold systems is present in conjunction with these anomalous gold intervals.â€™â€™
The shares fell on the news, tumbling 37% or $0.035 to $0.06 on volume of 6.34 million. The shares were previously trading in a 52-week range of 23.5 cents and $0.09.
NuLegacy is focused on confirming high-grade Carlin-style gold deposits within the 6.0-square kilometre Rift Anticline target in the northwest corner of its flagship 108-square kilometre district scale Red Hill property in the Cortez gold trend of Nevada.
The Cortez gold trend is an alignment of deposits that ranks among the worldâ€™s most productive gold mining belts.
The Rift Anticline target is located on trend and adjacent to the three multi-million- ounce Carlin-type gold deposits (the Pipeline, Cortez Hills and Goldrush deposits) which are ranked among the worldâ€™s 30-largest, lowest cost and politically safest gold mines and are three of Nevada Gold Minesâ€™ most profitable mines.
Earlier this year, Nulegacy said it had identified compelling geochemical trends that point towards a very large mineralized system within the Rift Anticline target.
â€œWidespread strongly elevated pathfinder elements paint a very encouraging picture at Red Hill,â€ said Dr. Quinton Hennigh, a technical adviser to NuLegacy. â€œArsenic, antimony and thallium, along with gold clearly show highest abundance proximal to the shallowly west dipping CMZ fault system that underlies much of the property, especially the Rift Anticline target area,â€ he said.
On Friday, the company said assays from RA21-01, -02 and -03 have been received. Due to slow assay turnaround, Nulegacy plans to pause its drill program after the completion of hole RA21-05 which is currently in progress, so that gold assays and multi-element analytic results can be returned and reviewed.
Further drilling will be guided by modeling of the vectors generated by these results.