NxGold Ltd. (TSXV:NXN) (“NxGold” or the “Company”) is pleased to provide an update on its on-going 2018 exploration program at the Mt. Roe Project located in the Pilbara region of Western Australia.
NxGold Ltd. (TSXV:NXN) (“NxGold” or the “Company”) is pleased to provide an update on its on-going 2018 exploration program at the Mt. Roe Project located in the Pilbara region of Western Australia. The Company has recently completed 566 line kilometres of high resolution drone based (“UAV”) magnetics and a high resolution orthophoto of the Mt Roe Project and has received and compiled all assay results from the Phase II trenching and mapping program. The Company is currently undertaking an interpretation and targeting exercise utilizing the geophysical data in conjunction with the previously collected mapping and sampling data. Additionally, the exploration team is preparing to mobilise for a detailed follow-up silt sampling and prospecting program to further refine the potential source areas for the numerous gold anomalies announced previously (NR Sept. 10, 2018).
Highlights of the follow-up mapping and trenching programs include the collection of forty-five samples (51% 1-2m chip samples in trenches, 36% grab samples or shorter length chip samples in trenches, with 13% grab samples from mapping). Sample values ranged from detection limit to 150 ppb gold with the more consistent elevated values coming from the Eagle target area. A newly discovered vein exposure on the East side of the property, the Sun target area, had only one sample collected which returned anomalous gold (80 ppb), silver (600 ppb) and copper (1791 ppm). Samples from the limited chip sampling in the exposed Conglomerate Area were not expected to return any anomalous values due to the suspected nuggety nature of the target mineralisation and the small sample sizes. Target areas discussed in this release are presented in Figure 1.
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 80 oz 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.”
The Company is currently mobilising for a follow-up program of silt sampling and prospecting to better refine potential sources of the anomalies identified to date. In parallel, the newly acquired geophysical data will undergo a targeting exercise immediately following processing and interpretation; this will allow the field team to follow up on the derived geophysical targets during the current field mobilisation. In addition, induced polarisation will be evaluated as a target refinement method across several areas of identified mineralisation to determine its usefulness in defining larger covered targets in the immediate area. The results of this work will refine drill targets before the end of the year.
UAV Orthophotography and Magnetics Survey
A drone based, high resolution, 566 line kilometre orthophoto and magnetic survey has been completed on the Mt Roe Gold Project by Thompson Aviation, of New South Wales Australia, utilising Rada Engineering and Aerial Vision Australia. Both the Prinsep and Sholl tenements were surveyed as follows: Prinsep flown on 50 m line spacing with 100 m tie-lines with a sensor height of 25 m, Sholl flown with 25 m line spacing, 100 m spaced tie-lines and 25 m sensor height. Currently the processed data is undergoing interpretation which will be followed by a targeting exercise and subsequent field evaluation. Images of the surveys will be made available on the NxGold website.
Phase II Trenching and Mapping
Eagle target area: Initial trenching exposed two multi-metre wide stockworks of cm scale veining within a locally iron stained and hematite stained calcrete unit. Follow-up trenching focussed on stepping in both directions along the interpreted strongest grade vector; an additional trench was used to evaluate abundant quartz fragments adjacent to a seasonal stream bed. Twenty-eight chip samples, 1 m or 2 m intervals on the northern wall were collected along the lengths of the trenches and as more selective samples of features of interest; assay values ranged from detection limit to 150 ppb gold. Four samples of interest returned 30 ppb, 40 ppb, 40 ppb and 150 ppb gold; these all have similar alteration characteristics with two of the samples on trend of the previously announced higher grade samples (NR Sept 10, 2018) with the 150 ppb sample located roughly 40 m southwest in a different stockwork with local dark quartz and similar alteration characteristics to the main prospect zone. Vein orientations vary from relatively flat northerly dipping to moderately-dipping NW and SE veining forming the higher density stockworks; local N-S structural features are known to contain rare visible gold which returned a value of 102 g/t Au and 12.7 g/t silver (‘Ag’) (NR Sept 10, 2018, sample 18SH024). Next steps in this area include evaluating induced polarisation surveys to determine higher density stockwork veining and concentrations of disseminated sulphide mineralisation.
Conglomerate Area: 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 420 m2 in two locations roughly 150 m apart. During the Phase II program seven samples were collected as selective chip samples across features of interest that included fault zones, zones of veining and characterisation samples from the upper sediment horizon, lower sediment horizon and the tuff/mudstone separating the two coarser sediment zones. Gold values ranged from detection limit to 10 ppb. Compared to regional sampling the Conglomerate sediment samples are characterised by anomalous level of nickel, phosphorus and titanium. Next steps in this area could include larger volume sampling or drilling to define conglomerate continuity; neither of these are contemplated for the near term.
Regional Ridge evaluation:
Three additional trenches were completed in the Kangaroo target area tracing the unconformity contact zone. Four selective samples were collected returning 10 ppb to 20 ppb gold values. The 20 ppb gold result was from a 5 cm wide grey quartz vein hosted in calcrete.
Six samples were collected for assay during the mapping portion of the program. These samples retuned detection limit to 80 ppb gold values. One sample (#2249) returned 10ppb gold from a massive white quartz vein in a creek near the Bulldog target area. The best sample was a composite grab sample from a 5 m section of a pinch and swell vein traced for 50m on the East side of the ridge (Sun target area); this sample returned 80 ppb gold, 600 ppb silver and 1791 ppm copper. Given the proximity to the Silica Hills prospect of Artemis Resources (there is no certainty that NxGold has similar styles of mineralisation in the Mt. Roe Property), the previously announced anomalous silt samples from this area, and that Sun may form part of the +1.5 km anomalous gold zone from the Sholl Ridge (NR Sept 10, 2018) this is an important area for additional field follow-up in the near term.
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 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.
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.