VANCOUVER, Sept. 10, 2018
- Selective sample of vein structure in Specimen Area returns 102 g/t Gold ('Au') [range, detection limit to 102 g/t Au]
- Stream sample analyses identify +1.2 km Sholl Ridge gold anomaly
- Follow-up mapping and Phase II trenching results remain pending
- Detailed UAV-magnetics survey initiated
VANCOUVER, Sept. 10, 2018 /CNW/ - NxGold Ltd. ("NxGold" or the "Company"), (TSXV: NXN) is pleased to provide an update on its 2018 exploration program at the Mt. Roe Project located in the Pilbara region of Western Australia.
- The Company has recently received and compiled all assay results from the preliminary mapping and Phase I trenching programs and the laboratory analyses from the stream sediment samples (see News Release August 08, 2018).
- Selective sample of vein structure in Specimen Area returned visible gold up to 102.2 g/t gold and 12.7 g/t silver.
- Sample results from the follow-up mapping and Phase II trenching programs remain pending.
- Additionally, the Company has initiated a detailed 566-line kilometre UAV magnetics and orthophoto survey covering both the Prinsep and Sholl tenements of the Mt. Roe Gold Project.
Christopher McFadden, Chief Executive Officer commented, "Our phased approach to evaluating the Mt Roe properties continues to support gold being shed from the Mt. Sholl ridge. The stream silt samples are defining key portions of the ridge with the potential to host gold mineralisation. The identification of vein structures in the 'Specimen Area', Dryblower area, and 80oz area among others, supports the existence of primary gold mineralisation on the property. With the addition of the UAV geophysical survey we continue our methodical approach towards a discovery."
Highlights from the preliminary mapping and Phase I trenching program are listed in the table below, descriptions of each area follow with a full results table appended.
Selective sample of structure; visible gold
1m horizontal chip across inferred structure approximately 10m from 18SH024
Selective sample of 5cm wide vein in shear in Dryblower gully; all samples in this area are above background
<0.1m wide, +13m long vein in shear zone
~1.5m chip across thickness of upper pebble conglomerate-quartzite bed
Highlights of the assay results from the stream sediment sampling program.
# gold grains
In area of known nugget collection
In area of known nugget collection
In area of known nugget collection
In area of epithermal veining
In area of known nugget collection
The preliminary mapping program resulted in the collection of twenty-eight property wide distributed samples consisting of eleven quartz vein samples, five breccia samples and twelve lithological type samples with minor veining or mineralisation. Sample results ranged from below detection limit to 70 parts per billion ('ppb'). Three rock samples, NXS0003, NXS0020 and NXS0021, in the '80oz Area' returned the values of 27, 20 and 30ppb gold respectively. One sample, NXS0028, of silicified basalt breccia returned 70ppb Au on Mt. Sholl and one sample, NXS0001, on the north edge of the tenements returned 56ppb Au from a sample from a 1m wide, 20m long quartz vein with iron and copper oxide staining. Areas of interest are noted on Figure 1.
The Phase I stripping/trenching program (see News Release, June 28, 2018) resulted in the collection of 27 selective rock samples; the distribution of these samples is as follows: ten samples from the Dryblower Area, six samples from the Conglomerate Area, four samples from the Specimen Area, and seven samples from regional trenches. Twenty-one, one metre horizontal chip samples were collected from the trenches in the Specimen Area covering the lengths of each trench. Areas of interest are noted on Figure 1.
Specimen Target Area:
Initial trenching exposed two multi-metre wide stockworks of cm scale veining within a locally iron stained and hematite stained calcrete unit. Vein orientations varied from relatively flat northerly dipping to moderately-dipping NW and SE veining forming the higher density stockworks. A local N-S up to 5cm wide vein structure is traceable for approximately 10m. A small section of this structure was found to host visible gold (NR June 28, 2018) which returned a value of 102 g/t Au (samples 18SH024) and 12.7g/t silver ('Ag') [range, detection limit to 102 g/t Au]. A sample of wallrock returned 40ppb Au. The trenches were chip sampled in one metre intervals along the north wall of each trench; the chip sample along strike from 18SH0024 returned 0.710 g/t Au (sample 18NX004). Phase II trenching has been completed and samples collected with results pending.
Conglomerate/pebbly sandstone/sandstone rocks inferred to be the source of 'melon seed' nuggets have been exposed by a series of trenches and stripping covering a total area of 420m2 in two locations roughly 150m apart. During the Phase I program five samples were collected as chip samples along the base of the upper sediment horizon, and across the width of the sediment beds; one sample of quartz material in fold hinges and limbs of small scale folds in basement units was also sampled. Although one sample returned 17ppb gold, no significant values were expected from such small volume samples targeting a coarse gold system. These samples were collected to evaluate for a fine gold component in the coarse sediment layers. These exposures are currently being considered for larger scale sampling that would be required to better determine gold grade in a prospect that contains coarse or nugget gold.
This area was recently prospected for gold nuggets using metal detectors and a dryblower by previous tenement holders. It is an area known for hackly nuggets which can be indicative of a local source. NxGold completed a trench in this area as part of the Phase I trenching program exposing a distinct trench sub-parallel (NW trend) shear hosted quartz vein as well as a 12m section of sheeted flat veins dipping shallowly to the East in the hanging wall of a fault defining the contact between an intermediate volcanic flow and a mafic volcanic flow. This shear hosted a pinch and swell quartz vein up to 0.10m wide and traceable for 13m containing copper oxide minerals. This copper oxide bearing vein (18SH010) returned 1.54% Cu, 15.2 g/t Ag and 0.39 g/t Au from a selective sample. The trench sub-parallel shear vein, average width 0.05m exposed in the trench end wall and traceable for 2m in the floor, returned 0.22 g/t Au from a selective sample. In general, all of the sheeted veins returned slightly anomalous gold values (range from 10ppb to 80ppb Au).
Results of gold analyses and multi-element analyses have been received for the previously announced stream sediment sampling (NR dated August 8, 2018). The results confirm the presence of a 1.2km kilometre gold anomaly shedding on both sides of the Mt. Sholl ridge. Additionally, gold anomalies in the '80oz Area', an anomaly on the north boundary of the tenements and an anomaly in the Dryblower area from an unknown source were confirmed (Figure 1). A follow-up stream program is currently being proposed to better isolate potential sources which will be run in conjunction with a detailed prospecting program. A comparison table indicating presence of visible gold grains and assay results is included below.
UAV orthophotography and magnetics survey
A drone based orthophoto and magnetic survey has been initiated on the Mt Roe Gold Project. The Prinsep tenements are to be flown on 50m line spacing with 100m tie-lines with a sensor height of 25m. The Sholl tenements are to be flown with 25m line spacing, 100m spaced tie-lines and 25m sensor height. These surveys will cover approximately 566 line-kilometres and provide a high-quality base map for mapping and sampling as well as a high density geophysical survey for structural and lithological interpretation and target refinement.
Correction to July 15, 2018 News Release - NxGold Closes C$4,270,525 Private Placement
The Company wishes to announce a correction to its June 15, 2018 news release entitled "NxGold Closes C$4,270,525 Private Placement". The Company previously reported that in connection with the offering, the Company paid finders a cash fee up to 7.0% of the gross proceeds raised by the finders and finders were granted common share purchase warrants (the "Finder Warrants") entitling them to subscribe for that number of Common Shares equal to up to 7.0% of the aggregate number of Units sold by the finders.
The Company would like to clarify that in connection with the offering, it paid certain finders an aggregate of $213,544.09 in cash and granted 1,186,356 Finder Warrants. Each Finder Warrant is exercisable at a price of C$0.18 until June 14, 2021.
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 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. Note that the preliminary mapping program did not use a procedure of regular insertion of control samples and was completed by a third-party consultant. Samples collected during the Phase I trenching program had only limited insertion with full QA/QC program implementation by the stream sediment sampling and Phase II trenching and prospecting program. Rock 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 Genanalysis 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.
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, 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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