- Completes UAV high resolution magnetics survey
- Additional chip samples indicate anomalous trend at the
Eagle target area
- Discovery of Sun vein requires follow-up sampling
- Initiates follow-up stream sampling program
VANCOUVER, Oct. 15, 2018 /CNW/ - NxGold Ltd.
("NxGold" or the "Company"), (TSXV: NXN) 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."
Next Steps:
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.
Mapping samples:
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.
About NxGold
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.
Technical Disclosure
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.
SOURCE NxGold Ltd.
