- 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.
Next Steps
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.
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, 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.