NuLegacy Gold Corp. (NUG-TSXV), in co-operation with its principals and shareholders, is planning a fall financing of $2 million. It said 80% of the proceeds will be used to drill up to five reverse circulation drill holes at its flagship Red Hill property in Nevada.
The project is situated on the Cortez gold trend, an alignment of deposits that ranks among the world’s most productive gold mining belts.
Red Hill is also located about seven kilometres southeast of Barrick Gold Corp.’s [ABX-TSX, GOLD-NYSE] Goldrush deposit, part of the Nevada Gold Mines joint venture operations held by Barrick and Newmont Corp., [NGT-TSX, NEM-NYSE].
The company has indicated that it hopes to launch the program before the end of this year. The budget set for the program is between $1.75 million. Full details of the financing are expected to be announced within the next several weeks, the company said.
The five holes have been selected by NuLegacy’s newly constituted geological exploration/discovery team. The overhauled team includes Dr. Roger Steininger, NuLegacy’s co-founder, exploration manager Charles Weakly, and drill superviser William Mounts.
NuLegacy has complemented that group by engaging three former members of Barrick Gold Explorations’ senior leadership team, including Nancy Richter, Michael Penick and Robert Leonardson. Richter is a former U.S. Exploration Manager with Barrick Gold Exploration Inc. Penick’s last position at Barrick was Manager Global Minesite Exploration.
All three were intimately involved with the discovery of both the Goldrush and Fourmile deposits, which are considered to be analogous to NuLegacy’s Red Hill property.
“The new team undertook a thorough review of NuLegacy’s 13-year exploration history at Red Hill, and their conclusion support our proposition that:
The Cortez trend is a continuous periodic north-northwest trending deposition of favourable gold mineralized slope facies/carbonate host rocks in steep dipping faults, which can be traced from the Pipeline mine through the Cortez mine and Goldrush deposit into NuLegacy’s Red Hill property.”
Pending completion of the financing, the proposed five-hole fall 2023 drill program will consist of approximately 3,000 metres of reverse circulation holes with average depths of 600 metres focused on the Mid-rift, South West-rift, and South Iceberg target areas.
“The global review by the new geo-team has improved NuLegacys confidence in the continuity of major Carlin-type gold structures between the Pipeline, Cortez Hills mines and Goldrush deposit onto the Red Hill property and thus the potential for a large Carlin-style deposit at Red Hill,” the company said in a press release.
If successful, the company said it will raise further funds to begin delineation drilling with a view to optimizing its values, and encourage those Nevada-based producers who have expressed some interest to take over and expand the considerable funds it will take to fully explore such a deposit.
NuLegacy shares rallied on the news, rising 25% or $0.005 to $0.025 on volume of 100,000. The shares are currently trading in a 52-week range of $0.055 and $0.010.