VANCOUVER, Nov. 26, 2018
- Follow-up stream sediment sampling completed highlighting key prospects
- Soil grids completed over Swan, Eagle and Hawk target areas
- Larger target area developing through systematic exploration
VANCOUVER, Nov. 26, 2018 /CNW/ - NxGold Ltd. ("NxGold" or the "Company"), (TSXV: NXN) is pleased to provide an update on its exploration program at the Mt. Roe Project located in the Pilbara region of Western Australia. The Company has recently completed a follow-up phase to the initial anomalous stream sediment samples continuing its systematic approach to target area identification and drill target refinement at the Mt Roe Project. This follow-up work included additional stream samples, gridded soil samples and rock (grab) samples.
A total of 47 stream silt samples (see Figure 1 and Table 1) were collected following up on the initial encouraging results which identified numerous target areas including an approximately 1.2 km long section of the Sholl ridge, host to the Eagle, Kangaroo and Bulldog target areas and coincident with a large magnetic high feature identified from the detailed UAV-magnetics survey (details of which are described in the News Release dated 15 October 2018). As a result of this recent sampling, the target areas have been further refined to approximately a 500m, 350m and 250m section of the Eagle, Bulldog and Kangaroo target areas, respectively. Assay results from gridded soil samples from the Eagle area are pending. The Eagle area is expected to be a primary focus for drill targeting given the presence of the magnetic high anomaly, coincident stream anomalies and high-grade rock (grab) samples.
The Hawk, Swan and Sun target areas were expanded by the additional stream samples. Results from the gridded soil samples are pending from the Hawk and Swan areas. Additional work is required to better understand controls of the anomalous stream sample distribution.
The areas chosen for grid-based soil sampling utilised an 80 m line spacing and 40 m sample spacing with lines oriented to the north-west with a total of 139 soil samples being collected (Figure 1). The target areas of initial interest include the Hawk area (26 samples) located near the known "80oz" prospector's patch, the Eagle area (86 samples) where earlier trenching programs exposed a gold bearing structure, and the Swan area (27 samples), which hosts numerous gold nugget patches and structures exposed in trenching that returned anomalous gold and copper values (see the News Release dated September 10, 2018). Assay results from this work program are pending.
Christopher McFadden, Chief Executive Officer commented, "In a relatively short period of time since acquiring the property this year, our team has evaluated the property for different mineralisation styles and advanced to the drill target delineation stage through the systematic exploration of the Mt Roe tenements. This approach will also be used to evaluate the Prinsep tenements and the pending tenements on Mt. Roe which are expected to be granted shortly. The identification of vein structures in the Eagle, Hawk and Swan areas among others, supports the existence of primary gold mineralisation on the property. "
UAV Orthophotography and Magnetics Survey
Images from this survey are available on the Company's website (www.nxgold.ca).
Initial program on Prinsep tenements
A total of 7 stream sediment samples were collected and a soil grid with 80 m line spacing and 80 m sample spacing was sampled for 60 samples collected. This was an initial work program focused on historical areas worked by prospectors using metal detectors. Results from this program remain pending.
Upon compilation of all the work completed this year-to-date, NxGold believes it will be in a position to complete a target prioritisation review to prepare for scout-drilling that will test the continuity of known conglomerate and prospective gold target areas.
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 on-going sampling programs of stream sediments, soils, rocks and chip samples involve a quality assurance and quality control (QA/QC) program that includes the collection of field duplicates and insertion of certified reference materials at frequency of roughly one in ten samples. Rock samples, stream samples and some chip samples are selective in nature and are not representative of mineralisation on the property. All samples have been sent to Intertek Genalysis in Perth, WA for preparation and analysis. Rock and chip samples were analysed using a 50g fire assay for gold and a 10g aqua regia, 32-element inductively coupled plasma optical emission spectroscopy ('ICP-OES'). Samples with visible gold or returning >10 g/t gold by fire assay are subject to a screen fire assay analysis. Stream sediment samples were analysed using 1000g bulk leach extractable gold analysis with Leachwell accelerant followed by ICP-MS with a 10g sample split for aqua regia 32 element ICP-OES analyses.
Stream samples were field screened fine fraction (minus 80 mesh) with a collected mass of 10-12kgs. Soil samples were field screened to minus 4mm with a collected mass of approximately 4kg. All samples were split by a two-tier riffle splitter in a secure storage facility into a laboratory sample and a retained reference sample.
NxGold advises that the Mt Roe Gold project is an early stage exploration project utilising an evolving gold deposit model for a paleo-placer style of mineralisation. Abundant exploration work is required to understand the previously unrecognised sedimentary geology and confirm if the source(s) of the coarse gold is located within NxGold Ltd.'s tenements. There is no certainty of the discovery nor definition of a mineral resource.
The scientific and technical information in this news release has been prepared or approved by Darren Lindsay, P.Geo., 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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