In my ongoing recommendation and coverage of NuLegacy Gold (TSX-V:NUG) (OTC-NULGF) I have regularly stressed why I like the company’s “wildcatting” strategy. Management of this Nevada-oriented gold explorer has never made any bones about its “swinging for the fences” strategy, as it has significantly ramped up its drilling at its 38 sq. mi. Red Hill property.
Simply put, NuLegacy is looking for the next “elephant” in Nevada. For a recap and my past updates,go to https://nationalinvestor.com/featured-opportunities/
Yesterday (Monday, August 27), the company’s shares surged higher following the announcement of the best drill intercept ever; a HOME RUN that is pivotal in a few respects. That can be read in its entirety at https://nulegacygold.com/news/news-releases/2018/nulegacy-gold-provides-exploration-update-on-serena-zone/
The headline is impressive enough. The company drilled 16.9 grams of gold per ton (roughly half an ounce) over 8.7 meters, within an impressive broader intercept of (total) 6.59 grams over 22.1 meters. In a state where the majority of gold is mined from deposits grading a fraction of those numbers, that’s impressive enough in itself.
But it’s the location of this latest hole–and what a reconfigured geological model suggests–that has the company and wise, opportunistic investors especially excited.
First of all, the hole reported yesterday (SR18-02C as you see above) is the latest step-out hole in the Serena Zone area at Red Hill. It was drilled 100 meters to the west of the last hole at Serena and considerably raises the odds of an economic deposit–perhaps a
Goldrush-like one–being in this vicinity (NOTE: As a reminder, Goldrush is Barrick Gold’s high-grade, multi-million ounce gold deposit that has been identified across the valley; a stone’s throw from Red Hill.)
Speaking of this latest hole, Ed Cope, a NuLegacy director and one of several Barrick alumni with NuLegacy (he was former V.P. of Exploration for North America at Barrick) said, “This is an outstanding result for several reasons. It signals that the Serena zone is wide open to the west, towards the geophysically well-defined Western Slope anomaly that has minimal previous drilling. Secondly, the grade is excellent, and reminiscent of the grades Barrick found while drilling Goldrush several years ago. And finally, it is proving the concept that following newly recognized ‘mineralizing’ low angle fault structures to the west to where they intercept the best stratigraphic host rocks is working – and we will continue to refine this work in the fall.”
Another aspect of this drilling location of late is that the company–inspired by NuLegacy’s District Geologist Charles Weakly (former Barrick Regional Geologist and who led the discovery of Goldrush)–has its best understanding yet of where and why to focus its drilling going forward.
As you can see in the graphic above (and this is true in many typical geological settings) a variety of “host” structures can be encountered. Specifically in this area, there are several different kinds of limestone. The seemingly most attractive ones are “dirty” as NuLegacy’s C.E.O. James Anderson termed it when we spoke yesterday. This means that at the time they were formed the limestone was mixed with various kinds of carbonaceous material, making the limestone porous.
So as later geological events caused hot, gold-bearing fluids to spread in these areas, it tended to flow into these kinds of limestones–represented in the above by Dw-5, meaning one type of the Devonian-Wenban material as it has been labeled. Think of any liquid flowing through/into a sponge…or a solid piece of rock.
NuLegacy management has been very forthright with the market over its high-risk–but potentially high-reward–drilling strategy. In both my own (which you can recap at https://nationalinvestor.com/featured-opportunities/) and the company’s discussions of the recent past (check out NuLegacy’s site at https://nulegacygold.com/ for even more background) we’ve highlighted the increasing understanding of both the geology and location of what is now the top Red Hill target: the Serena Zone and surrounding area. And I think it’s fair to say that–after yesterday’s news–NuLegacy can claim some (still early) vindication!
Reiterating his own confidence, Weakly added in This week’s comments, “Everything we saw at Goldrush exists on the Red Hill property. The results of SR18-02C confirm two things: that high grades of gold over significant widths exist at Red Hill – in the Serena Zone – and likely other areas as well; and that our methodology for finding higher grades is improving constantly.”
Weakly has right to be confident: 85% of the 11 million ounces of gold identified thus far at Goldrush is hosted by this Dw-5 material!
As if it shouldn’t already have been the case, eyes will especially be on NuLegacy’s soon-commencing Fall drilling program following this big news!
As always, you know where to send your comments and questions!
All the best,
Chris Temple — Editor/Publisher
The National Investor
You can get information anywhere. Here, you get knowledge.
Robex Resources Inc. (TSX-V: RBX) (FWB: RB4) is pleased to report... READ MORE
Ucore Rare Metals Inc.(TSX-V:UCU) (OTCQX:UURAF)... READ MORE
Mistango River Resources Inc. (CSE: MIS) is pleased to announce i... READ MORE
Evergold Corp. (TSX-V: EVER) is pleased to announce that it has c... READ MORE
Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) reported i... READ MORE