NuLegacy Gold Corp (TSXV:NUG) released assay results from the first ten holes of its planned 40 hole (10,000m), 2016 drill program. Holes were primarily focused on stepping out from areas of known mineralization at the Central and North zones of the Iceberg gold deposit. While these step-out results were not, spectacular, particularly with respect to grade, they are likely additive to the growing resource at Iceberg and suggest that exploration upside remains. With an active exploration program, a prospective land package in the Cortez trend and a planned resource update later this year, NuLegacy is expected to have steady news flow this year, which should provide positive momentum for the stock.
North and Central zone results are likely additive to the developing resource. Eight of the ten holes were focused on expanding the existing resource areas. Results from the central zone were highlighted by 0.52 g/t gold over 35.1m (RHB-72) including 4.6 meters of 2.19 g/t gold, and 0.61 g/t gold over 25.9 meters (RHB-73). While results from the North zone where highlighted by 0.58 g/t gold over 33.5 meters (RHB-76) and 0.74 g/t. gold over 12.2 meters (RHB-79). The results delineated wide areas of mineralization, averaging 19.8m for the highlight intercepts and 31.3m for wider areas of mineralization. The weighted average grade for the highlight intercepts of 0.51 g/t Au does not compare favourably to the targeted grade of 0.9 – 1.1 g/t Au. That being said, these results are small sample set of the overall drilling at Iceberg, and did expand the known resource areas at both the North and Central zones.
True exploration hole, identifies a new area of mineralization. As is the companies practice, a portion of the drill program is dedicated to discovering new areas of mineralization in untested areas. RHB-81 was drilled 300m west of the Central zone testing a geo-chemical and geo-physical anomaly. The hole returned 0.31 g/t over 7.6m (RHB-81) which suggests this could represent a new area of mineralization; however it remains early days for this area.
Company description: NuLegacy Gold Corp is an exploration company which main asset is the Iceberg gold deposit with a 90-110 million tonnes of 09 – 1.1 g/t Au exploration target. Located in the Cortez gold trend of Nevada, this 98 km 2 property is adjacent to three of Barrick Gold’s (TSX:ABX, NYSE:ABX) multi -million ounce Carlin-type gold deposits.
Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick,
Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and the Yukon. Part of Red Cloud Klondike Strike Inc.'s business is to connect mining
companies with suitable investors that qualify under available regulatory exemptions (the "Red Cloud KS Business"). Red Cloud Klondike
Strike Inc., its affiliates and associates, and their respective officers, directors, representatives, researchers and members of their families (collectively,
"Red Cloud KS") may hold positions in the companies mentioned in this publication and may buy or sell, or buy and sell their securities
or securities of the same class on the market or otherwise. Additionally, Red Cloud KS may have provided in the past, and may provide in the future,
certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Red Cloud KS has prepared this publication for general information purposes only, NOT as part of the Red Cloud KS Business. This
document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided
by Red Cloud KS for the purposes of this publication has been derived from sources believed to be accurate, but cannot be guaranteed. Opinions or analysis
contained in this publication may be subject to change and Red Cloud KS does not undertake to advise the reader of such changes. This publication does
NOT take into account the particular investment objectives, financial situations, or needs of individual recipients and other
issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their
own investigations and take their own professional advice before investment. Red Cloud KS will not treat recipients of this publication as customers
or clients by virtue of having viewed this report.
Company Specific Disclosure Details
1) A member of Red Cloud KS team has visited/viewed material operations of the issuer.
2) In the last 12 months, Red Cloud KS has been retained under a service or advisory agreement by the subject issuer.
3) In the last 12 months, Red Cloud KS has received compensation for investment banking services.
4) Red Cloud KS or a member of the Red Cloud KS team or household, has a long position in the shares and/or the options of the subject issuer.
5) Red Cloud KS or a member of the Red Cloud KS team or household, has a short position in the shares and/or the options of the subject issuer.
6) Red Cloud KS or a member of the Red Cloud KS team own more than 1% of any class of common equity of the subject issuer.
7) A member of Red Cloud KS team or a member’s household serves as a Director or Officer or Advisory Board Member of the subject issuer.