NuLegacy to arrange $2M financing for Red Hill drilling NuLegacy to arrange $2M financing for Red Hill drilling
2023-08-22 20:34 ET - News Release
Mr. Albert Matter reports
NULEGACY PROVIDES UPDATE
NuLegacy Gold Corp. has provided an update on its flagship 108-square-kilometre Red Hill property in the Cortez gold trend of Nevada (approximately seven kilometres southeast of Barrick's multimillion-ounce Tier 1 Goldrush gold deposit).
Financial plans: NuLegacy, in cooperation with its principals and shareholders, is planning a fall financing for circa Cdn $2 million (the "Financing") with 80%+ of the net proceeds allotted towards drilling up to five reverse circulation drill holes at Red Hill, preferably before year-end 2023 (budgeted at US$1.25 million/Cdn$1.75 million). The balance of net proceeds from the Financing will be used for general corporate and working capital purposes. Full details of the Financing to be determined within the context of the market are expected to be announced within the next several weeks.
These five holes have been selected by our newly reconstituted geological exploration/discovery team highlighted below.
New exploration/discovery team: Since the conclusion of the 2020-21 exploration program, we have overhauled our exploration team to maintain NuLegacy's deep knowledge of the property and also to bring in legacy regional and successful expertise. The team now consists of:
- Dr. Roger Steininger, NuLegacy's Exploration Director, and co-founder, credited with the Pipeline discovery,
- our Exploration Manager, Mr. Charles Weakly, past Regional Geologist at Barrick Gold Exploration and instrumental in the expansion of Goldstrike,
- our Drill Supervisor, the famed Mr. Willam Mounts, who's had the good fortune to be present at more major gold mine discoveries than any other member of the team, quite possibly more than all of them combined!
And we have complemented that group by engaging three former members of Barrick Gold Exploration's senior leadership team, who were intimately involved with the discovery of both the Goldrush and Fourmile deposits, considered to be analogous to NuLegacy's Red Hill property - just 7 km directly across the Horse Creek Canyon valley and on trend with Red Hill.1
Joining with their former colleague, Charles Weakly, to complete the task of making a discovery at Red Hill are:
- Ms. Nancy Richter, former US Exploration Manager, Barrick Gold Exploration Inc. - see news release dated Feb. 22, 2023.
- Mr. Michael Penick, whose last position at Barrick Gold was Manager-Global Minesite Exploration - see news release dated March 21, 2023, and
- The legendary Mr. Robert Leonardson, BSGE, MSG, Michigan Tech, and Geological Advisor at Barrick's Goldstrike and Cortez mines - see news release dated April 11, 2023.
Refreshed targeting: The new team undertook a thorough review of NuLegacy's 13-year exploration history at Red Hill, and their conclusions support our proposition that: "...t he Cortez trend, (an on-echelon cluster of three of the world's thirty largest gold deposits) is a 'continuous periodic north-northwest trending deposition of favorable 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 onto the NuLegacy's Red Hill property..."
- The gold mineralization found to date at Red Hill is localized at the intersections of high and low-angle faults and associated with the metamorphically altered halo around an intrusive and local to moderate scale folding, similar to the Goldrush/Fourmile deposit area.
- The highest priority drill targets are likely in the Mid-rift and associated South Iceberg zones (proposed phase 1 drill sites in figure below) as interpreted by vectoring from proximal drilling data and geophysical and chemical survey results.
Several recommended additional analyses are nearing completion and are corroborating the initial selection of targets.
Following his reassessment of the 2021-22 drill programs (see full exploration summary at: https://bit.ly/explsummary), Charles Weakly remained confident that the Mid-rift and South Iceberg were the places to explore. At that point, we decided to get some external advice ... and who better to have than a subset of the people who'd been involved in the discovery of the "analogue" for the Red Hill - the Goldrush itself: Nancy Richter, Mike Penick and Bob Leonardson?
Their detailed review of the data (supported by subsequent field work) indicates that our first hole in the Mid-rift hit a gap in the Wenban5 (Dw5).
Examples of some of the more robust reported intercepts include:
- 9.6 grams/tonne over 5.1 meters (WS19-02),
- 16.9 grams/tonne over 8.7 meters in the Serena zone (SR18-02C),
- 11.0 grams/tonne over 12.2 meters, and,
- 25.2 grams/tonne over 4.6 meters (RHB40 and RHB58 respectively)2 in the north Iceberg zone as illustrated just below, with 5-foot intervals - individual 'hits' as high as 40+ grams/tonne.3
- Furthermore, and very importantly, the "dream" team's review highlighted a Cretaceous diorite intrusive associated with metamorphic alteration, with dike zones known to occur along the Iceberg Corridor and the Mid-rift target area, as inferred from surface mapping of metamorphic alteration to the east of the Iceberg fault. Such an intrusive is often associated with the highest grades in Carlin-type systems as is the case at the northern end of Goldrush in the Fourmile deposit, just ten kms or so to the north-west of NuLegacy's Red Hill/Mid-rift zone.
- Four of the five planned drill targets are focused proximally to or above these larger intrusive bodies where the other positive targeting elements intersect as illustrated in the cross-sections linked at: drill target plan map & cross-sections .
Proposed drilling program: Pending completion of the Financing, the proposed 5-hole fall 2023 drill program (as illustrated in the listed links to their cross-sections) is approximately 3,000 meters (~10,000 feet) of RC (reverse circulation) holes with average depths of 600 meters (2,000 feet) focused on the Mid-rift, South-West-rift, and South Iceberg target areas at a budgeted cost of US$1.25 million.
Possible outcomes: The global review by the new geo-team has improved NuLegacy's 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 gold deposit at Red Hill.
If we are successful, after a 13-year pursuit, in discovering a Carlin-style gold deposit at Red Hill like our neighbors to the northeast, we will seek to:
- raise further funds to begin delineation drilling with a view to optimizing our values; and,
- encourage those Nevada based producers who have expressed some interest to take over and expend the considerable funds it will take to fully explore and develop such a deposit.
About NuLegacy Gold Corp.
NuLegacy Gold's focus is discovering a high-grade Carlin-style gold deposit on its flagship 108 sq. km (42 sq. mile) district scale Red Hill Property in the Cortez gold trend of Nevada directly on trend and adjacent i to three, multi-million ounce Carlin-type gold deposits (Pipeline, Cortez Hills and Goldrush) that are ranked amongst the world's thirty largest, lowest cost, highest grade and politically safest gold mines and are three of Nevada Gold Mines' most profitable mines.ii
Dr. Roger Steininger, a Director of NuLegacy, is a Certified Professional Geologist (CPG 7417) and the qualified person as defined by NI 43-101, Standards of Disclosure for Mineral Projects, responsible for approving the scientific and technical information contained in this news release and the attached links.
We seek Safe Harbor.
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