NevGold Corp.’s (TSXV: NAU) (OTCQX: NAUFF) recent drilling campaign has intercepted mineral patterns that are highly prospective for gold mineralization.
On Thursday, NevGold intercepted strongly oxidized, silicified sandstone with quartz veining from surface at its Nutmeg Mountain gold project in Idaho.
When fluids carrying gold pass through these types of rocks, the gold can become trapped in the quartz veins, making it easier to extract during the mining process.
The quartz veins that contain hard-rock gold were formed by the passage of hot water (200-400 degrees celcius) through fractures in the schist, located up to 15 kilometers beneath the surface. As the hot water rose through the bedrock of schist, it deposited both quartz and gold along its path. This deposition occurred as the water gradually cooled, creating veins of gold within the quartz.
Specifically, hole NMD0004 intercepted the rock formation. This discovery is similar to other holes drilled in the current program, including NMD0003, which intercepted gold at a depth of 10.4 meters and at 25.6 meters.
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Historical drill holes show similar characteristics
Historical drill holes in the 2020 resource area also have similar characteristics. Hole NMD0004 has intercepted over 120 meters of strongly oxidized, silicified sandstone from the surface. This is significant because it shows that there is potential for resource growth. The project has over 100 vertical meters of identified resource potential outside of the USD$1500 per ounce Au pit shell that was used in the 2020 resource estimate.
“The signatures that we are seeing at or near surface are encouraging. Our technical group is gaining a strong understanding of the regional and localized structures and textures having spent the past 10 months re-logging historical drilling, and after each drillhole is completed in this program,” said Brandon Bonifacio,” CEO of NevGold.
The focus of the 2023 drill program is to advance Nutmeg Mountain to an updated Mineral Resource Estimate. There is significant resource growth potential along strike and at depth. With the new discovery in Hole NMD0004, the potential for further growth of the project is very promising.
GoldMining Inc. (TSX:GOLD) (NYSE:GLDG) released a technical report on the Almaden Gold Property in 2020 called “Technical Report – Almaden Gold Property.”
The report contained a Historical Mineral Resource Estimate that is being treated as such by NevGold.
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NevGold considers the Historical Mineral Resource Estimate to be reliable, relevant, and professionally done based on the assumptions made at that time. However, a qualified person from NevGold has not done enough work to classify GoldMining’s Mineral Resource Estimate as current mineral resources. As a result, NevGold is not treating this estimate as current mineral resources or mineral reserves.
Currently, NevGold is conducting drilling and geological work, which should provide sufficient data to complete an updated Mineral Resource Estimate at the Project. This updated estimate will take into account all the new information gathered by NevGold and will provide a more accurate representation of the current mineral resources and mineral reserves at the site.
NevGold shares rose 4.2 per cent and are trading presently at $0.375 on the TSX Venture Exchange.
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