Connect with us

Hi, what are you looking for?

Monday, May 20, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

NevGold finds high-grade gold underneath the surface at Nutmeg Mountain

Drilling has uncovered high-grade feeder structures at depth with high potential

NevGold finds high-grade gold underneath the surface at Nutmeg Mountain
Drills on Nutmeg mountain. Image via NevGold Corp.

NevGold Corp. (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) announced high-grade, heap-leach gold results intercepted from the surface at its Nutmeg Mountain gold project in Idaho on Thursday.

The preliminary drill results indicate potential for increased grade and growth opportunities in the resource, which starts at the surface and needs minimal stripping. The drill program is progressing as planned and within budget, and updates on the drill results will be provided consistently in the upcoming months.

“We see significant upside potential from a size and grade standpoint with over 100 vertical meters of resource potential outside of the US$1500/oz Au pit shell used in the 2020 resource,” said Brandon Bonifacio, CEO of NevGold.

“A lot of the material drilled at the project is higher grade with lower strip ratio than many open-pit, heap-leach gold projects that are either in operations or the development phase in the Western USA.”

The project has a 2020 mineral resource estimate of indicated 910,000 ounces of gold, with a tonnage of 43.5 million tonnes at a grade of 0.65 g/t Au. Additionally, there are 160,000 inferred ounces of gold, with a tonnage of 9.1 million tonnes at a grade of 0.56 g/t Au.

Read more: Gold is still the best hedge against inflation: NevGold CEO

Read more: NevGold to hit the ground running at Limousine Butte in 2023: Caesars Report

NevGold intercepts high-grade gold from surface

The company has intercepted high-grade, heap-leachable gold from surface, with minimal stripping required. Hole NMD0003 intercepted 0.72 g/t Au over 79.3 meters from 10.4 meters depth , including 2.32 g/t Au over 13.4 meters from 25.6 meters depth.

Hole NMD0001 intercepted 0.56 g/t Au over 23.9 meters from 24.1 meters depth, including 0.89 g/t Au over 11.4 meters from 25.6 meters depth. The mineralization exhibits positive, heap-leach characteristics with both free gold and oxidized material. Additionally, 4.33 g/t Au was intercepted near the bottom of the hole, but the hole was lost in mineralization.

Cross-section looking northeast through Nutmeg Mountain with US$1500/oz Au pit shell outlined in red. Image via NevGold.

The potential for high-grade mineralization at depth is significant. Hole NMD0003 intercepted multiple, large vein or breccia zones at 251 meters and 469 meters depth, with assays pending. This area of the project is entirely untested and represents a significant expansion opportunity, as the average historical hole depth at the Project is only 75 meters. The company sees potential for significant resource expansion at depth, and follow-up drilling is required as the quartz textures seen in the core indicate a potential high-grade feeder structure is present at depth.

“This drilling has identified new potential feeder structures at depth that have high-grade potential. It is also noteworthy that this is the first drill program on the project to use oriented core, a technology that is essential to understanding the structures that control the gold mineralization,” said Derick Unger, VP of exploration for NevGold.

Core Photos – NMD0003, hydrothermal vein-breccia that starts at 251.3 m (824.5 ft.), representing a possible feeder structure and target for high-grade mineralization at depth. Image via NevGold.

Open, near-surface mineralization along strike was intercepted at a large step-out of 140 meters from the nearest drill collar. Hole NMD0002 intercepted significant anomalous mineralization starting at 4.6 meters depth and extending to 93.6 meters depth with grades up to 0.43 g/t Au. The mineralization is open in all directions, and additional drill holes are planned in this area to test additional targets identified by geochemical and geophysical data previously collected at the project.

The company is focused on testing the identified targets and expanding the known mineralization areas.

NevGold’s shares have risen 15 per cent to trade at $0.46 on the TSX Venture Exchange.

 

Nevgold is a sponsor of Mugglehead news coverage

Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Joseph Morton on Twitter

joseph@mugglehead.com

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Gold

Gold has been on the rise this year and is currently worth over US$2,400 per ounce

Mining

“Blackouts and energy poverty for Wyoming’s citizens and beyond” will be the administration's legacy, Governor Mark Gordon says

Gold

Acquiring Newfoundland's Valentine gold mine was a major accomplishment for the company last quarter

Gold

President and CEO George Bee, who just spoke with Proactive Investors, has had a 40-year career in the mining industry