NuLegacy Gold Corp. [NUG-TSXV] said Tuesday April 27 that it has identified compelling geochemical trends that point towards a very large mineralized system within the Rift Anticline target at its 100%-owned Red Hill property in Eureka County, Nevada.
“Widespread strongly elevated pathfinder elements paint a very encouraging picture at Red Hill,” said Dr. Quinton Hennigh, a technical adviser to NuLegacy. “Arsenic, 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,” he said.
NuLegacy shares advanced on the news, rising 11% or $0.015 to 15.5 cents on volume of 646,490. The shares are trading in a 52-week range of 23 cents and $0.05.
NuLegacy is focused on confirming high-grade Carlin-style gold deposits within the 6.0-km2 Rift Anticline target in the northwest corner of its flagship 108-km2 district scale Red Hill property in the Cortez gold trend of Nevada.
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). Nevada Gold Mines is a joint venture between two of the world’s largest gold producers Barrick Gold Corp. [ABX-TSX; GOLD-NYSE] and Newmont Corp., [NGT-TSX; NEM-NYSE].
The 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.
NuLegacy recently launched a 2021 Rift Anticline exploration program, which is expected to include 12 holes, some of which are designed to follow up on four holes drilled in winter 2020.
The current drill program is designed to test the down-dip part of this strong geochemical trend, especially where the CMZ fault cuts across favourable host stratigraphy.
“Given that we are seeing very thick sections of prospective Wenban5 and Roberts Mountain formations, we think we have the right ingredients to find a very large Carlin gold deposit at Rift Anticline,” Hennigh said.
The current drill program is being funded by a private placement financing that recently raised $12.5 million from a sale of 100 million units priced at $0.125 per unit. Each unit consists of one common share and one warrant good to buy one share at an exercise price of 20 cents for 36 months.
Key NuLegacy shareholders include Barrick Gold and OceanaGold [OCG-TSX; OCGT-ASX], which own 5.4% and 8.5% respectively.