On May 8th, 2018, NuLegacyGold Corporation reported that the start of its 2018 drilling program has commenced on its flagship 98 sq km Red Hill property. The 2018 drill program had a bit of a late start due to the amount of snow on the ground in Nevada.
Originally, drilling was planned to begin March 15, so in total drilling was delayed by about six weeks. However, as chief executive officer James Anderson recently pointed out in an interview, the delay could have served as a benefit for the company. With the additional six weeks, the technical team was able to go back and re-log the drill holes that were previously drilled. With that layover, management had more time to plan on where to drill with the hopes to target some of the higher grades within their deposit.
12 holes (15,000 feet of drilling) is planned. The company is sitting in a very compelling position as this drill program isn’t initial exploration holes as the company has conducted extensive drill programs over the course of 3 1/2 years on its flagship property. In fact, the company has found a lot of gold during this span in their south, central, and North iceberg zones. (Click here to read their corporate presentation and go through some of their highlight drill holes)
In last year’s drill program, NuLegacymade a significant discovery called Serena with assays as high as 10, 15, and 25 grams but over narrow widths. As chief executive officer James Anderson has stated, this initial 15,000 feet drill program will be targeting the intersection of a particular type of limestone unit called the Devonian Wenban with low angle faults that serve as feeder structures.
Now let’s take a step back and learn about the company’sland position.
NuLegacy was able to acquire its 100% owned 100 square kilometer land package in one of the friendliest mining jurisdictions in the world, Nevada. NuLegacy’s flagship propertyis right near Barrick’s pipeline and Cortez Hills operations which produce about 1,000,000 ounces of gold per year. This is an important point, as unlike most junior mining companies, NuLegacy is right next to mines that produce 20% of the gold for the world’s largest gold mining company. Think about that!
On top of that, Barrick made another significant discovery 7 km away from NuLegacycalled “Gold Rush” which is currently quoted by Barrick at 10,000,000 ounces at 10 grams. Clearly, NUG doesn’t have small operations surrounding them.
By being right near Barrick, NuLegacyhas done a brilliant job of establishing a team that has helped discover or advance nearby operations. Three of the company’s directors were senior ex Barrick employees. Alex Davidson was head of global exploration for Barrick, and part of the discovery team that found Lagunas Norte in Peru. Ed Cope was head of North American exploration for Barrick and was part of teams that have found 50 million ounces of gold – mostly in Nevada. And Alan Hill built many of Barrick’s most productive mines all over the world. Most recently, the company added Charles Weekly to its team. Charles worked with Barrick for over 20 years, in Carlin, and across the valley from NuLegacy at “Gold Rush”. So clearly, the company’s team does not lack experience in the area.
The 2018 summer looks extremely exciting for Nulegacy Gold (TSX-V:NUG), we will follow up with another report in one months time.
Full Disclosure: NuLegacy Gold Corp. is a paid client of the Gold Telegraph.