VANCOUVER, May 22, 2018
- Larger prospective contact strike identified.
- Intensive prospector activity evident adjacent to prospective contact on both sides of project area.
- Fine gold discovered at surface.
- Geological model developed to test for additional horizons at depth.
VANCOUVER, May 22, 2018 /CNW/ - NxGold Ltd. (the "Company") (TSX-V:NXN) is pleased to announce it has completed the initial mapping program at its 80%-owned Mt. Roe Gold Project located in the Pilbara Gold Region near Karratha, Western Australia. Due to the encouraging results from the Mt. Roe Project, the Company has given notice to withdraw from the Chicobi Project in order to focus on its Mt. Roe and Kuulu Gold Projects.
The initial mapping program at Mt. Roe has significantly increased the prospective contact from 4km to 7km, greatly increasing the potential scale of the gold target horizons present in the project. Intense prospector activity, marked by numerous detector holes, were mapped adjacent to the prospective conglomerate contact (Figure 1).
In addition, NxGold has recovered fine gold at surface which is in addition to the numerous 'melon seed-style' gold nuggets interpreted to be associated with the now extended prospective conglomerate contact (Figure 2). The gold was recovered by sluicing approximately 100kg of remnant scrapings adjacent to the conglomerate contact at Dry-Blower Gully.
Hand samples and thin sections of conglomerate material from exposed conglomerates, gritty sandstones and sediments associated with a mapped distinctive volcanic horizon inferred to occur stratigraphically below the conglomerate exposure are being reviewed. A geological model which will be updated as more data is uncovered has been developed which will inform work to test for the thickness of the prospective horizon and distribution of gold.
The Company's next steps include the exposure of the conglomerate unit and its upper and lower contacts, systematic stream and gully sampling along the inferred conglomerate contact to evaluate the gold enrichment, and is contemplating a systematic soil sampling program to further identify potential sources of fine gold on the property. Results of these activities will be reported when available.
Due to the positive results to date at the Company's Mt. Roe project, it has given notice to withdraw from the Chicobi project in order to focus its capital and effort on the Mt. Roe Gold Project in Western Australia. The Company is also continuing its efforts to obtain the final outstanding surface access licences so it may progress the Kuulu Project in Nunavut and remains confident in its position regarding the project.
Christopher McFadden, Chief Executive Officer commented, "To increase the strike of the prospective conglomerate contact in the heart of this new gold play by 75% is encouraging. Work is ongoing to better understand the geology and gold morphology, including sampling near one area of the exposed conglomerate. Additionally, the discovery of fine gold is encouraging as it highlights the potential for a primary-hosted gold system in addition to the conglomerate-hosted model potential which is clearly evident at our Mt. Roe Project. With these results, the Company has made the decision to focus its efforts solely on the Mt. Roe and Kuulu projects and as a result has provided notice of our intention to withdraw from the Chicobi earn-in."
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
NxGold is a Vancouver-based exploration company. The Company owns 80% of the Mt. Roe gold project located in the Pilbara region of Western Australia. The Company has also entered into an earn-in agreement with Meliadine Gold Ltd. to earn up to a 70% interest in the Kuulu Project (formerly known as the Peter Lake Gold Project) in Nunavut.
The scientific and technical information in this news release has been prepared or approved by Darren Lindsay, Vice President Exploration and Development, of the Company, a "qualified person" within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Cautionary Statement Regarding "Forward-Looking" Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future including whether the proposed acquisition will be completed. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on numerous assumptions, including among others, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company's planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, reliance on key management and other personnel, potential downturns in economic conditions, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, and risks generally associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
SOURCE NxGold Ltd.
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