NuLegacy Gold Corp. (NUG-TSXV) has reported results from a summer drilling program on its 100%-owned Red Hill property, which is located on the Cortez gold trend in north central Nevada.
Drill hold SR18-02C, a 70 degree angle core hole drilled as a 100-metre step-out to the west of the currently defined Serena zone, returned 8.7 m of 16.92 g/t gold within a broader interval of 22.1 m grading 6.59 g/t gold, starting at a vertical depth of 258 metres.
“This is an outstanding result for several reasons,” said Ed Cope, a NuLegacy director and a former vice-president of Exploration- North America at Barrick Gold Corp. [ABX-TSX, NYSE-ABX]. “It signals that the Serena zone is wide open to the west, towards the geophysically well-defined Western Slope anomaly that has minimum previous drilling. Secondly, the grade is excellent, and reminiscent of the grades Barrick found while drilling Goldrush several years ago. And finally, it is proving the concept that following newly recognized “mineralizing” low angle fault structures to the west to where they intercept the best stratigraphic host rocks is working – and we will continue to refine this work in the fall.”
NuLegacy, an 11%-owned affiliate of Barrick Gold, has discovered the Iceberg Carlin-style gold deposits at Redhill, which is located 100 kilometres southeast of Elko. The company has also identified several more highly prospective exploration targets that are being drilled this year.
The company’s other key shareholder is OceanaGold [OCG-TSX, OCGT-ASX], which has a 16.2% interest.
The Redhill project is immediately adjacent to Barrick’s huge Goldrush gold discovery, which is also located on the Cortez gold trend, an alignment of deposits that ranks among the world’s most productive gold mining belts.
The 98 square kilometre Red Hills project includes a number of exploration prospects which are clustering around a conceptual threshold resource target (referred to as the Iceberg deposit) of 90 to 110 million tonnes, grading between 0.7 g/t and 1.1 g/t gold.
In September, 2016 NuLegacy said assay results had confirmed that that a target previously known as the Avocado anomaly hosts a Carlin type deposit. (Carlin-style deposits feature micron sized-gold particles that are not visible to the naked eye).
A 2017 summer drilling program added two new gold zone discoveries – the Serena and VIO zones (described by the company as the only new gold discovery in Nevada during 2017) – to the inventory of gold-bearing zones on the Red Hill property, while expanding or adding to the previous discoveries in the North and Central Iceberg deposits.
Heading into 2018, NuLegacy previously said its main aim was to produce a NI 43-101 compliant resource estimate for the Iceberg deposit. This year, the company’s exploration plans were expected to include include 40,000 feet of reverse circulation and core drilling in 40 holes. The budget for that program is $5 million, it said.
In an August 27, 2018 press release, the company said recent results have convinced NuLegacy’s exploration team to focus on the opportunity to expand the Serena zone. The company is planning to drill at least four follow-up holes within the 10-12-hole program beginning in mid-September.
On Tuesday, NuLegacy eased 9.09% or $0.02 to 20 cents. The 52-week range is 13 cents and 25 cents.