Oct 14 2015
NuLegacy Gold Corporation reports it has provided notice to Barrick Gold of the completion of NuLegacy's option to earn-in to a 70% undivided interest in the 60 sq. km property that hosts the Iceberg gold deposit.
The property, located in the Cortez gold trend of Nevada, is adjacent(i) to three of Barrick's multi-million ounce Carlin-type gold deposits that are its lowest cost and politically safest gold assets(ii). The option agreement required NuLegacy to spend US$5.0 million of direct property expenditures (and corresponding indirect expenditures) to earn the 70% interest from Barrick by December 31, 2015.
We are pleased to report that these expenditures, which included 74 drill holes and numerous geo-physical and chemical surveys have established the Iceberg gold deposit as a NI 43-101 compliant exploration target of 90-110 million tonnes of 0.9 to 1.1 grams of gold per tonne(iii).
Under the terms of the option Barrick Gold has 90 days in which to elect to either earn-back to a 70% working interest by expending US$15.0 million in direct property expenditures over the next 5 years (and converting NuLegacy's remaining 30% interest to a carried-to-production interest) or remain a 30% minority working-interest partner.
The Earn-in: Preliminary exploration and drilling began in 2011 and resulted in the 'discovery' of the Iceberg deposit late in 2012. The return of lengthy intercepts of good to high-grade Carlin-type gold mineralization within favourable carbonate horizons over a substantial northwest/southeast strike of 3,000 meters indicated the deposit area was big enough to potentially contain a sizable resource that warranted more closely spaced delineation drilling. The majority of the delineation drilling focused on the higher grade North and Central zones of the Iceberg that extend approximately 1,200 meters within the 3,000 meter northwest/southeast strike of the favourable gold bearing horizons. Please follow these links for a selection of multi-meter multi-gram assays in these two zones as previously reported by NuLegacy:
Selected multi-meter multi-gram intercepts North zone.
Selected multi-meter multi-gram intercepts Central zone.
A detailed report on the earn-in exploration program is being prepared for posting to our website.
On Behalf Of NuLegacy Gold Corporation
James E Anderson, Chief Executive Officer
Dr. Roger Steininger, NuLegacy's chief operating officer is a Certified Professional Geologist (CPG 7417) and the qualified person as defined by NI 43-101, Standards of Disclosure for Mineral Projects responsible for preparing and reviewing the scientific and technical information contained in this news release