VANCOUVER, BC, Aug. 20, 2020 /CNW/ - NxGold Ltd.
("NxGold" or the "Company"), (TSXV: NXN) is pleased
to provide updates on its Kuulu project in Nunavut and the Mt Roe project in Western Australia.
Philip Williams, NxGold's Chief
Executive Officer, commented: "NxGold recently entered the uranium
sector through the purchase of an option to acquire the high-grade
Ben Lomond and Georgetown projects
in Australia from Mega Uranium
Ltd., and the Mountain Lake project in Nunavut from IsoEnergy Ltd. At the same
time, the Company remains focused on maximizing the potential of
its legacy gold assets; Kuulu and Mt Roe. Both assets remain
prospective and the Company has detailed plans to advance each
project while also evaluating project level and corporate
opportunities to unlock value. The overriding message is all
options are on the table for these projects and, with our recent
capital raise and existing funds, NxGold is well positioned to
secure the best possible outcome for shareholders."
About Kuulu (Under Option to Earn up to 70%)
The Kuulu Project (formerly known as Peter Lake) is located 40 km northwest of the
port town of Rankin Inlet in
Nunavut, Canada. The
property covers 4,174 hectares less than 20km along trend from
Agnico Eagle Mines Limited's ("Agnico") world class
Meliadine gold mine.
Kuulu is located in the Archean aged Rankin Inlet Greenstone
Belt in the Churchill Structural Province of the northern Canadian
Shield, a comparable geological environment to the prolific Abitibi
greenstone Belt in the southern Shield. Known mineralisation in
this belt includes the series of gold deposits making up the
Meliadine gold system owned by Agnico. The property is bisected by
large scale faulting events including the inferred continuation of
the Dickson-Pyke Fault, the main structural control on the
Meliadine gold deposits.
On the property, widespread gold mineralization has been
identified using drift prospecting: regional and focused till
sampling and boulder sampling. At least 3 of the 6 new gold zones
identified by the previous owners had quartz boulders and quartz
vein stock-work float within 1 km or less of these till anomalies
consistently up-ice, representing high priority drill targets.
Following up on till anomalies, numerous clusters of high-grade
boulders have been located in broad areas; the angular nature of
the boulders suggest that the boulders haven't travelled far and
therefore may be proximal to a potential bedrock source.
On the eastern side of the property, nine of the twenty angular
quartz vein float samples collected in the Hinge, RB, and GD zones
assay greater than 1 gram per tonne ("g/t") gold with local highs
of 16.8 and 38 g/t gold. Fifteen of the fifty-one angular quartz
float rock samples collected from the western side of the property
assay greater than 1 g/t gold with highs of 27, 65, and 451 g/t
gold. These high potential target zones represent priority drill
targets and are locally named the "Island", "RIL", and "282"
zones.
On November 28, 2017 NxGold
delivered a notice of force majeure to the property vendors and on
September 25, 2018 NxGold delivered a
notice of force majeure to Nunavut Tunngavik Incorporated (NTI) due
to the continued delay in the renewal of the existing Land Use
Licenses, KVL311B01 and KVRW12E01 pertaining to the Kuulu project.
This action enables NxGold to maintain its rights under the Earn-In
Agreement and under the Mineral Exploration Agreement without
having to incur the spending obligations.
About Mt Roe (80% Owned)
The Mt Roe Project is located approximately 30km south of
Karratha in the Pilbara region of West Australia. The Pilbara
region is known for its iron ore deposits and substantial
associated infrastructure. In addition to exploration projects for
shear hosted gold systems, since 2016 the Pilbara has also been
known as an emerging area for significant gold potential
specifically in paleoplacer-style or Witswatersrand-style
conglomerate hosted gold deposits.
The Company's Mt Roe Gold project encompasses two sets of
tenements, the Sholl and the Prinsep blocks, covering 1,232ha of
land immediately adjacent to Novo Resources Karratha Gold project
and Artemis Resources Silica Hills property.
On the Sholl tenements, conglomerate and related sedimentary
rock units have been identified below an inferred equivalent of the
Mount Roe basalt. Gold nuggets found on the property are a
mixture of flattened 'melon-seed' nuggets characteristic of
conglomerate hosted gold while others are more coarse specimen type
nuggets. Gold nuggets found in certain areas of the property
exhibit the same characteristics as recent nugget discoveries in
conglomerate host rocks by Novo Resources, Artemis Resources, De
Grey Mining and Kairos Minerals Ltd.
The Prinsep tenements have received an initial pass of stream
samples followed by two phases of soil sampling and
prospecting. This work has resulted in the definition of a
large (600m x 100m) anomalous gold in soil anomaly surrounding
a much stronger more restricted gold in soil anomaly. This
area has also returned select high grade grab samples from sub-crop
and outcrop. Based on the work to date a number of drill ready and
near drill ready targets have been developed with additional areas
that require follow up activities to determine if they remain of
interest.
Stock Option Grant
The Company also announces that is has granted 50,000 incentive
stock options (the "Options") to Mark Raguz, a Director of the Company. Mr.
Raguz was appointed to the Company's Board of Directors at the
annual general and special meeting of the shareholders held on
August 5th, 2020.
The Options were granted on August
20th, 2020, are exercisable at a price of
$0.52, vest in three equal annual
instalments commencing on the grant date, and have a term of five
years. The Options were issued pursuant to the Company's
Omnibus Long-term Incentive Plan and are subject to regulatory
approval.
Qualified Person Statement
The scientific and technical information contained in this news
release was prepared by Peter
Mullens (FAusIMM), NxGold's VP Business Development, who is
a "Qualified Person" (as defined in NI 43-101 – Standards of
Disclosure for Mineral Projects). Mr. Mullens has
verified the data disclosed.
About NxGold
NxGold is a Vancouver-based
exploration company. The Company recently entered into options
agreements with Mega Uranium Ltd. (TSX: MGA) to acquire a 100%
interest in the Ben Lomond and Georgetown uranium projects in Australia, and IsoEnergy Ltd. (TSXV: ISO) to
acquire a 100% interest in the Mountain Lake uranium project in
Nunavut, Canada. In addition, the
Company owns 80% of the Mt. Roe gold project located in the Pilbara
region of Western Australia and
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) in Nunavut.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
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.
