NSGold acquires 265 more mineral claims in Nova Scotia
2016-10-06 11:12 ET - News Release
Mr. Glenn Holmes reports
NSGOLD ACQUIRES ADDITIONAL 10,600 ACRES OF PROSPECTIVE MINERAL CLAIMS IN NOVA SCOTIA
NSGold Corp. has acquired an additional 265 mineral claims in Nova Scotia, covering an area of approximately 10,600 acres (4,300 hectares). A total of 115 claims were staked in the area north of the company's 100-per-cent-owned Mooseland gold property, and 150 claims were staked to the west of the Dufferin gold property. These two claim groups are referred to respectively as the Mooseland North property and the Dufferin West property.
Mooseland North property, Nova Scotia
The Mooseland North property is located in Halifax county, two kilometres from NSGold's core asset, the Mooseland property. The Mooseland gold deposit occurs within a typical Meguma structure with steeply dipping limbs and is located 12 kilometres from the Moose River gold project currently being developed by Atlantic Gold Corp. The gold-bearing quartz veins at Mooseland occur on both limbs of the fold with similar widths and grades. Total inferred mineral resources for the Mooseland property are estimated at 454,000 ounces of gold using a cut-off grade of 2.6 grams per tonne (see NSGold news release dated June 5, 2012). This estimate is based on drill core assay results from historic and recent drilling programs totalling 45,382 meters in 183 drill holes. A summary of the June, 2012, resource estimate is provided in the attached table.
MOOSELAND SUMMARY OF NON-DILUTED INFERRED MINERAL RESOURCES Cut-off grade Average diluted grade (g/t) Tonnes above cut-off (g/t) Ounces West zone 2.6 1,460,000 5.52 259,000 East zone 2.6 1,060,000 5.72 195,000 --- --------- ---- ------- Total 2.6 2,520,000 5.6 454,000 === ========= ==== =======
NSGold holds the Mooseland property free and clear, subject only to a gross metal royalty payable to Globex Mining equal to 4 per cent of all metals produced from the property. Globex also has the right to receive a 5-per-cent interest in the issued and outstanding share capital of NSGold at the time the Mooseland property enters into production. The Mooseland property entirely comprises Crown-owned land with no privately owned portions. The equity market is currently valuing the Mooseland gold resources at less than $3 per ounce (that is, market capitalization per ounce of gold).
During 2012, NSGold prospected in the area of the Mooseland North property, and found and assayed a boulder containing quartz, black argillite and coarse arsenopyrite that returned 1.07 grams per tonne and 4.53 grams per tonne gold in two separate samples from the boulder. Of historical interest is the fact that Faribault's 1898 geology map of the wider Mooseland-Moose River areas is marked gold in the area of the central Mooseland North claims. Located 13 kilometres east along the anticline from Mooseland North is the historic Killag gold deposit, and 10 kilometres along the anticline to the west-southwest is the historic Gold Lake gold deposit. This anticline also hosts the Goldenville gold deposit, the largest past-producing gold mine in Nova Scotia, having produced in excess of 200,000 ounces. It was determined in 2012 that additional exploration work and claim staking were warranted for Mooseland North; however, these plans were put on hold as a result of the downturn in the market.
In light of the improved market sentiment for junior gold equities, coupled with the recent renewed interested in the Nova Scotia Meguma gold deposits, NSGold has significantly expanded its coverage of the Mooseland North area and is planning a prospecting program for this fall.
Dufferin West property
The newly staked Dufferin West mineral claims are positioned along the Salmon River anticline, host to the Dufferin gold deposit. The Dufferin West property covers approximately eight kilometres of the anticline and is adjacent to that structure for another three kilometres. At least eight shallow, historic shafts occur on these claims, as well as a number of trenches.
NSGold also acquired a separate block of six mineral claims that adjoin the Dufferin mine lease, and are downdip of the Salmon River and Dufferin Crown Pillar anticlinal structures.
Gold mining in Nova Scotia
The first reported gold discovery in Nova Scotia was at Mooseland in 1858, which lead to a gold rush which resulted in the discovery of more than 80 gold deposits in the Meguma structural terrane of the northeastern Appalachians. Collectively, the mines of the Nova Scotia goldfields yielded production in excess of one million ounces of gold, predominantly during the period 1880 to 1930.
In recent years, there has been a renewed interest in the Nova Scotia goldfields. The largest project is the Moose River consolidated project held by Atlantic Gold Corp., which is currently in the construction phase. Atlantic Gold is building a two-million-tonne-per-annum gold processing plant and open-pit mine with a reported initial capital cost of $137-million. NSGold's Mooseland property is located 12 kilometres from the Moose River property.
On Sept. 9, 2016, Resource Capital Gold Corp. announced that it is acquiring a 90-per-cent ownership interest in the Dufferin gold mine, as well as surrounding historical gold mines including the Tangier and Forest Hill mines. Resource Capital Gold reported that its immediate focus will be resuming production at Dufferin and that the milling facilities at Dufferin are planned to act as a central processing hub for the surrounding projects. NSGold's Mooseland property is located 65 kilometres from the Dufferin mine.
Qualified person
Perry MacKinnon, PGeo, chief geologist for NSGold, a qualified person as defined by National Instrument 43-101, has approved the scientific and technical disclosure in this news release.
About NSGold
NSGold is a mineral exploration company exploring for gold in Nova Scotia, Canada. NSGold's principal property is the Mooseland gold property.
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