VANCOUVER, April 26, 2017 /CNW/ - NXGOLD LTD.
("NxGold" or the "Company"), (NXN:TSXV)
is pleased to announce plans for an initial and first phase
exploration program on the Kuulu Gold Project ("Kuulu") which the
Company expects to commence in summer 2017.
The first phase exploration campaign will consist of the
following programs:
- A minimum 4,000 m, 30 hole diamond drill program utilizing
two-drill rigs;
- Project-wide helicopter-borne high resolution Versatile
Time-Domain Electromagntic (VTEM) Plus and magnetic survey and low
altitude, slow flying drone magnetic survey; and
- Project-wide systematic rock and till sampling.
Diamond Drilling:
A two diamond drill rig program comprising a minimum of 4,000 m
in approximately 30 holes is planned for the Summer 2017
exploration program at Kuulu. Approximately half of the
drilling is planned at high priority targets which include areas
with the highest concentrations of newly discovered gold rich
quartz float material including the RIL and RB zones on the Western
and Eastern sides of the Dickson-Pyke fault, respectively. At
these zones high grade gold quartz carbonate boulders have been
identified with gold grades ranging from 1.1 – 17.8 g/t and 3.8 –
38 g/t, respectively. The remaining metres will be allocated
to the Island, 282, GD and Hinge zones where the Company will
target magnetic high linears that exhibit offsets, flexures or
breaks. The Island and 282 zones are the areas with the
highest gold grades in boulders which range from 1.6 – 451 g/t gold
at Island and 2.3 – 282 g/t gold at 282 (see Figure 1).
NxGold will commence drilling upon receipt of water licence from
the Nunavut Water Board which the Company expects in July 2017.
Electromagnetic and Magnetic Surveys:
NxGold will cover the entire Kuulu project with 1,100 line-km on
50 m spaced traverses controlled by tie lines at 500 m
spacing. This VTEM Plus and magnetic survey will provide high
resolution electromagnetic and magnetic data for the direct
detection and delineation of sulphide-associated gold
mineralization; and facilitate the mapping of bedrock lithologies
and structure which in turn influence the emplacement or hosting of
potentially economic gold mineralization.
Additionally, a low altitude, slow flying drone magnetic survey
consisting of 1,876 line-km at line spacing of 25 m covering the
entire Kuulu project will be flown. This survey will provide
even higher resolution imagery which is an integral layer for drill
targeting and will help identify potential dilation zones which
could lead to accumulations of gold mineralization.
The Company expects to initiate these surveys in mid-May upon
receipt of required authorizations and expects them to take 30-35
days to complete.
Systematic Rock and Till Sampling:
Concurrently with diamond drilling, the Company will undertake a
project-wide, systematic rock and till sampling program which will
focus around the Dickson-Pyke fault which is the regional fault
structure in the area and hosts Agnico Eagle Mines Ltd.'s Meliadine
Gold Project located immediately down trend to the southeast from
the Kuulu project (see Figure 2).
Management Appointment:
The Company is also pleased to announce the appointment of
Darren Lindsay as Vice President,
Exploration & Development.
Mr. Lindsay has over 20 years of experience in mineral
exploration across four continents. Mr. Lindsay has worked for both
junior and senior companies, including Newmont Mining Corporation,
Miramar Mining Corporation, BHP Minerals Canada Ltd., Inmet Mining
Corporation, and Kodiak Exploration Limited. He was directly
involved in resource expansions, belt-scale exploration and
feasibility level studies of the gold deposits in Hope Bay,
Nunavut.
Chris McFadden, Chief Executive
Officer, commented "We are extremely excited to get up to Kuulu and
begin comprehensive exploration on this highly prospective gold
project. With all of the surface signs present indicating
high grade gold mineralization at the project, we now look forward
to the systematic drill testing of high priority targets on the
project this summer once we obtain our water licence and receive
all required authorizations. We would also like to welcome
Darren to our team and look forward to working with him and
utilizing his expertise in gold exploration, especially in
Nunavut. We are in the advanced-stages of planning initial
exploration for the newly acquired 60,000 ha Chicobi project in the
heart of the Abitibi Greenstone Belt in Quebec and will provide an update in the
near-term. With approximately $5
million cash-on-hand, we remain well-funded for our current
2017 plans."
The Company also announces the grant of a total of 250,000
options to acquire up to that same number of common shares of the
Company to the Vice President, Exploration & Development,
pursuant to the Company's stock option plan. The options are
for a five-year term, expire on 25 April
2022, and are exercisable at a price of 45 cents per share.
About NxGold
NxGold is a Vancouver-based
exploration company. NxGold has 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). The
Kuulu Project is located approximately 40 km northwest of
Rankin Inlet, Nunavut. The
Kuulu Project covers 4,174 hectares immediately along trend from
Agnico Eagle's advanced Meliadine Gold project.
Additionally, the Company has entered into an earn-in agreement to
earn up to a 100% interest in the Chicobi Project located within
the prolific Abitibi Greenstone Belt in Quebec.
Technical Disclosure
The scientific and technical information in this news release
has been prepared or approved by Garrett
Ainsworth, a Director of the Company, a "qualified person"
within the meaning of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects. For details of the Kuluu
Project including the sampling procedures, quality assurance
program and quality control measures, analytical or testing
procedures applied during the execution of the work reported on in
this news release please refer to the "Technical Report on the
Peter Lake Project" bearing an effective date of January 10, 2017 and available on the Company's
profile at www.sedar.com.
This news release Agnico Eagle's Meliadine Gold Project. Mr.
Ainsworth has been unable to verify the information contained
herein regarding Agnico Eagle's Meliadine Gold Project and such
information is not necessarily indicative of the mineralization on
the Kuulu project in which the Company has an exclusive right to
earn up to a 70% interest in.
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. 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.