NevGold Corp. (TSXV: NAU) (OTCQX: NAUFF) discovered new and untested areas of its Limousine Butte Project in Nevada during a six month period where it analyzed and re-interpreted data from its 2022 drilling campaign.
The company announced an updated geological model and 2023 drill targeting on Thursday, and is also close to updating its NI 43-101 Technical Report for the project, which it anticipates being complete in July.
“We have incorporated the new drill data into the geological database, and we have re-envisioned the entire Limousine Butte Project,” said Brandon Bonifacio, CEO of NevGold.
“There are a number of new, high-priority targets that are focused on expanding the mineralized areas at Resurrection Ridge and Cadillac Valley, and finding new areas of mineralization within the larger project boundary.”
New geological mapping and 3D modeling of the drilling results from 2022 have revealed some important findings about the Exchequer Fault, which is a major geological feature near the Cherry Creek Project. It has been discovered that the fault has moved sideways in a particular direction, creating a displacement along the Cherry Creek Range.
This sideways movement is most noticeable just south of the Golden Butte mine, where there is not much gold mineralization. This new understanding of the fault has highlighted promising areas for exploration: one is to the southwest of Resurrection Ridge, called the “Connector Zone,” and the other is to the northeast of Resurrection Ridge, leading to the gold deposits at Coffee Mug.
Geologic map of Limousine Butte highlighting the major right-lateral (eastward movement) faults that offset the entire mountain range including mineralization. Image via NevGold.
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More drilling required to explore Connector Zone
Another significant discovery at Resurrection Ridge is the identification of dolomite units that have been pushed over the more promising Pilot Shale unit in the northeastern part of the target area. This explains why previous drilling to the east of the old Golden Butte pit encountered gold mineralization beneath the older dolomite unit.
In the past, this drilling was not followed up on because different interpretations of the faulting in the area led to confusion. There may be other areas within the project where similar geological features exist, and these areas now present new opportunities for future drilling and investigation.
After reevaluating the geology in the 2 kilometer gap known as the “Connector Zone” between the Resurrection Ridge and Cadillac Valley areas, the company found that the Exchequer Fault has caused a significant sideways shift. This shift has created a separation between the two target areas. Unfortunately, previous drilling in this zone did not consider this fault offset.
To explore the possibility of new gold-rich areas between Resurrection Ridge and Cadillac Valley, NevGold will need to conduct additional drilling on both sides of the Exchequer Fault, particularly where it is expected to intersect favorable rock formations.
Cadillac Valley received considerable attention during the 2022 campaign. The findings revealed substantial deposits of gold in the form of thick layers of oxidized minerals. These deposits extend over a wide area, measuring more than 1.6 kilometers from northeast to southwest, and spanning over 450 meters horizontally.
Following careful analysis and the creation of a three-dimensional model using the 2022 data, the company has identified potential for discovering additional mineral deposits in the southern and eastern regions, as well as within the already established large mineralized area.
Downhole at Cadillac Valley. Image via NevGold.
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West Cadillac uncovers pilot shale which contained gold
In the West Cadillac area, early drilling in 2022 discovered a type of rock called Pilot Shale that contained unusual amounts of gold at the northern part of the Black Mountain Range. This discovery was made beneath unproductive dolomite rocks.
Further study of the geological features and computer modeling in this area has revealed that the Exchequer Fault intersects with other faults that run in a northwest direction. These intersecting faults show potential for containing gold mineralization.
Additionally, the Coffee Mug, Ticup and Epex targets have been reevaluated based on new knowledge about the Exchequer and Black Metals faults and their significant role in the creation of Carlin-type gold deposits at the project.
These faults are important channels for mineralization, and they have played a crucial role in the mining history of the nearby Cherry Creek Project. The recent research conducted by the company indicates that the Exchequer Fault, which moves sideways, has caused a displacement of the gold deposits from the Resurrection Ridge area towards the Coffee Mug zone.
Additionally, this fault appears to be closely linked to the gold mineralization at the Epex site. Similarly, at the Ticup location, mineralization occurs where the Black Metals Fault intersects and displaces the Pilot Shale rock formation.
Looking west through Resurrection Ridge. Image via NevGold.
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Drill program for 2023 to focus on expanding mineral deposits
The drill program for 2023 will continue to focus on expanding the mineral deposits at Resurrection Ridge and Cadillac Valley. Additionally, there will be drilling at preliminary exploration sites like the Connector Zone, Coffee Mug and other identified targets throughout the property.
A significant aspect of the updated geological model involves studying the distribution of jasperoid, a type of rock that forms during the deposition of gold. Jasperoid can either host mineralization itself or act as a clue leading to mineral-rich areas. By mapping and modeling the jasperoids found at the Project, several promising drill targets have been identified for the upcoming 2023 program.
Resurrection Ridge still holds great promise for expanding the area with significant amounts of near-surface, oxidized gold deposits. In the 2023 drilling campaign, the main focus will be on exploring the northern and eastern regions beyond the already identified oxidized gold mineralization.
The plan view of Limousine Butte in Nevada. Image via NevGold.
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The 2023 drilling campaign will expand mineralized area at Cadillac Valley
In the 2023 drilling campaign, one of the main objectives will be to expand the known mineralized area by exploring the open ground to the south and east of the previous discoveries in Cadillac Valley South.
Geophysical data and limited historical drilling suggest that there is potential for further discoveries beyond holes CV22-006 and CV22-007, extending further south. Additionally, there will be a focus on exploring the open areas within the existing mineralized zone, with the aim of connecting different zones of gold mineralization.
The Connector Zone is a recently discovered target that extends for more than 2 kilometers between Resurrection Ridge and Cadillac Valley. There has been very little previous drilling in this area, but due to the sideways movement along the Exchequer Fault, there is a possibility of connecting the mineralized zones in Resurrection Ridge and Cadillac Valley.
The updated understanding of the orientations and significance of the Exchequer and Black Metals faults in these areas has revealed new opportunities for exploration that have not been previously tested by drilling. The initial targeting process will involve additional geological mapping, surface sampling and geophysical surveys to guide the exploration efforts.
NevGold shares were flat at $0.40 on Thursday on the TSX Venture Exchange.
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