wow! October grades: In September I was concerned the company might run low on funding before releasing an MRE priced at currentish Au prices [the old MRE was at $1250 USD gold].
I'm no longer worried, after seeing the October 17 and October 2 news releases. NKG may easily get big/sophisticated investor support at a decent share price.
Hole 37
(1.9 g/T over 114m) Hole 34 (
2.2 g/T over 96m,)"
in a previously untested area within the southern extension of the West Atlanta Graben Zone."
from the news release: hole 37 indicates "strong potential for extending the Atlanta resource zone southward" into the South Quartzite Ridge Target...an undrilled target area measuring approximately 1,000m long x 200m wide that is contiguous to the Atlanta resource area and on trend with the major faults that are interpreted as the primary plumbing for the mineralizing fluids that deposited high-grade gold at Atlanta."
their exploration manager says "should mineralization ultimately continue southward along trend of the SQRT... gold mineralization [that may be found] found south of Section 22-4N would have a marked impact on the resource potential at Atlanta by increasing mineralized tonnage and reducing the overall strip ratio ...The Company is currently constructing drill pads south of Section 22-4N to test the southern extension of the 100m thick, high-grade oxidized replacement horizon found in today’s drilling."
My Conclusions: - the geologic model is rapidly evolving and high-potential target areas have just been identified adjacent to the existing resource area, and NKG is building pads to drill the newly found target areas.
- A new MRE will show a huge increase, for several reasons:
- huge footage drilled over several years.
- completely new areas of mineralization (e.g., 10.17. news release).
- A cut-off grade somewhere around USD $1950 Au, compared to the old one that assumed $1250 Au.
- There's power and water at the site, and it's in Nevada so it should be permittable.
- When a PEA is finally produced it will be decent!