- Seeking to resolve Kuulu access issues
- Programmes of Work pending approval for Roe Gold Project
- Application for Excess Tonnage approved
VANCOUVER, Feb. 19, 2019 /CNW/ - NxGold Ltd.
("NxGold" or the "Company"), (TSXV: NXN) is pleased to provide exploration activity guidance for the first
half of 2019. Meeting requests, applications and notices required for the execution of exploration activities throughout 2019
have been submitted to the appropriate regulatory bodies and organisations. The expectation is that in 2019 NxGold will be able
to resolve the current inability to explore at its Kuulu project in Nunavut and at the same time
will advance select targets at the Mt. Roe Gold Project to the drill evaluation stage of exploration.
Kuulu Project:
The Kuulu Project has received a positive Nunavut Planning Commission (NPC) conformity decision, a positive Nunavut Impact
Review Board (NIRB) decision and a Type B Water License from the Nunavut Water Board (NWB) for water use for camp and drilling
purposes. In addition, a land use license from the Lands Department of the Kivalliq Inuit Association (KIA) is required for
NxGold to undertake exploration activities on the Kuulu project area. This licence has not yet been obtained but the Company
continues to work with the KIA and the local community in an effort to obtain the necessary licence which has been granted the
previous seven years on the same tenements. The underlying Earn-in Agreement with Meliadine Gold Ltd. (private) is in good
standing and remains under force majeure until the Company can access the ground under the Land Use License terms. The underlying
Mineral Exploration Agreement with Nunavut Tunngavik Inc. also remains in good standing with rents paid up to date with
expenditure requirements under force majeure due to the inability to undertake work.
Mt. Roe Gold Project: Prinsep tenements:
Programme of Work applications ('PoW') have been submitted that contemplate activities including detailed soil sampling across
the 1.8 km length of the horizon of interest that has previously returned two roughly 500 m
sections hosting elevated gold values in rock grab samples (see News Releases dated: January 22,
2019 and December 18, 2018). Subsurface evaluation using rotary air blast drilling is also
contemplated by the PoW submission.
Mt. Roe Gold Project: Sholl tenements:
PoW applications have been filed for work that covers trenching for shallow high-grade mineralisation in the Kangaroo, Hawk,
Eagle and Upper Pineapple areas and rotary air blast drilling in the Eagle area. Proposed work on these tenements includes silt
sampling drainages on the recently granted tenements (see News Release dated: December 18, 2018),
initial and additional soil sampling in the Crow, Eagle, and Hawk areas. Evaluation of induced polarisation geophysics to refine
targets on known auriferous structures may also be undertaken.
In addition, the Company is pleased to report that it has received approval of its applications for the ability to remove
excess tonnages of material from the Mt. Roe tenements from the Western Australian Department of Mines, Industry Regulation and
Safety. These approvals will allow the company to undertake disturbance works significantly in excess of the volumes
normally allowed under prospecting licences.
The above work programs on the Mt. Roe Gold Project are designed to refine targets for potential drilling evaluation by
midyear.
The Company is planning to commence field work by mid-March on the assumption that all the necessary applications are approved
in time.
Christopher McFadden, Chief Executive Officer, commented, "We are looking forward to
progressing discussions with the KIA in Nunavut with the objective of being able to obtain the
necessary licence so we can commence exploration on the exciting Kuulu project as soon as we can. We are highly aware of the
issues raised by the community and are hopeful we can reach a mutual understanding that will allow our proposed activities to
commence. In Australia we are looking forward to continuing the detailed and systematic exploration approach on the recently
granted tenements and are hoping to start work as soon as conditions in the field are cooler and all necessary applications and
paper-work has been completed with the relevant authorities.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
About NxGold
NxGold is a Vancouver-based exploration company. The Company owns 80% of the Mt. Roe gold project located in the
Pilbara region of Western Australia. The Company has also entered into an earn-in agreement with Meliadine Gold Ltd. to
earn up to a 70% interest in the Kuulu Project (formerly known as the Peter Lake Gold Project) in Nunavut.
Technical Disclosure
NxGold advises that the Mt Roe Gold project is an early stage exploration project and there is no certainty of the discovery
nor definition of a mineral resource.
The scientific and technical information in this news release has been prepared or approved by Darren
Lindsay, P.Geo., Vice President Exploration and Development, of the Company, a "qualified person" within the meaning of
National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Although efforts have been made to review the
historical soil data the sample location nor values have been verified by the qualified person as of the date of this release and
therefore readers are cautioned about interpretations of that data.
Cautionary Statement Regarding "Forward-Looking" Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation.
"Forward-looking information" includes, but is not limited to, statements with respect to activities, events or developments that
the Company expects or anticipates will or may occur in the future including whether the proposed acquisition will be completed.
Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the
negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on numerous assumptions, including
among others, that general business and economic conditions will not change in a material adverse manner, that
financing will be available if and when needed and on reasonable terms, and that third party contractors, equipment and supplies
and governmental and other approvals required to conduct the Company's planned exploration activities will be available on
reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or
making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such
assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ materially from any projections of future events or results expressed
or implied by such forward-looking information or statements, including, among others: negative operating cash flow and
dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, reliance on key
management and other personnel, potential downturns in economic conditions, actual results of exploration activities being
different than anticipated, changes in exploration programs based upon results, and risks generally associated with the mineral
exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining
governmental or other approvals.
Although the Company has attempted to identify important factors that could cause actual results to differ
materially from those contained in the forward-looking information or implied by forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking information and statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly,
readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to
update or reissue forward-looking information as a result of new information or events except as required by applicable
securities laws.
SOURCE NxGold Ltd.
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