Additional pitted 'melon seed' gold nuggets collected from the Mt. Roe Project
417 m of exploration trenching completed on Mt. Roe Project
Trenching confirms potential sources of 'specimen' gold nuggets
Visible gold discovered in vein structure in area of known 'specimen' gold at Mt. Roe
Recovery of gold nuggets 12 km from Mt. Roe Project on the Prinsep Project
VANCOUVER, June 28, 2018 /CNW/ - NxGold Ltd. ("NxGold" or the "Company"), (TSX-V: NXN) is pleased to provide an update on its 2018 exploration program at the Mt. Roe Project and the Prinsep Project located in the Pilbara region of Western Australia. The Company has recently completed an initial program of trenching and targeted follow-up work at Mt. Roe, and undertaken early reconnaissance at Prinsep. The data collected is currently being compiled to direct the next phases of work.
Mt. Roe Project
Fifteen trenches totalling 417 metres ("m") in length were used to initially evaluate approximately 1.8 kilometres ("km") of the 7 km of prospective strike extent for the target sediment, ('conglomerate'), horizon.
Eight trenches, totalling 238 m, were focused on exposing and tracing the known sedimentary exposures in the 'Conglomerate Area'.
A single trench, totalling 28 m exposed geological units in the 'Dryblower Area'.
Three trenches, totalling 120 m, were used to trace the target horizon to the southeast.
Two trenches, totalling 31 m, were used to evaluate an area of known 'specimen' gold nuggets.
Locations of these initial trenches are presented in Figure 1 and gold nuggets recovered during this program from the Mt. Roe Project area in Figure 2.
A first pass orientation of the Prinsep Project was undertaken to assess the prospects of NxGold's land package that sits 12 km northwest of the company's Mt. Roe claims. A site where forty-five gold nuggets were detected was confirmed highlighting the prospectivity of the Princep Project. Further work to better understand the geology and gold morphology at Prinsep will follow. (See figure 4 & 5 to view the gold recovered from Prinsep and the project location).
Christopher McFadden, Chief Executive Officer commented, "We have continued to discover gold nuggets across the Mt. Roe property and the results from the initial exploration trenching work is very encouraging. The geological features are continuing to provide insight on this exciting project. Additionally, sourcing forty-five gold nuggets on the Prinsep licences is also very exciting. Now that we have closed our successful $4.3 million financing, we are looking forward to undertaking expanded follow-up work on our Projects that will be guided by this initial work."
As a result of the initial trenching, sedimentary rocks interpreted to be the source of the 'melon seed' gold nuggets have been locally exposed over approximately 160 m of strike, including immediately adjacent to locations of recently collected gold nuggets (see Figure 2) many with classic 'melon seed' shape and texture. A second phase of trenching is now proposed in this area to expose a larger volume of highly prospective sedimentary rock units for the purpose of larger scale sampling in the near future.
Target Trend Trenches
Compilation of the detailed information gathered from these preliminary trenches remains underway and is expected to guide the next phase of exploration. From this preliminary trenching program along trend more detailed mapping of structures affecting the trend is warranted in conjunction with an expanded trenching program.
A single trench was used to expose units expected to be at a similar stratigraphic level as the target sedimentary horizon and further evaluate the source of abundant gold nuggets at surface in this area. Numerous shear and vein structures were exposed and sampled withresults pending.
Specimen Target Area
Two trenches bracketing 10m of strike in an area of intense, historic specimen gold nugget workings exposed numerous vein structures, one of which contained coarse visible gold (see Figure 3). Trench samples across the vein structures have been submitted for analysis, results are pending.
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.
Gold nuggets are usually detrital; hackly 'specimen' nuggets are inferred to be locally derived whereas rounded and/or flattened nuggets are more travelled. In the case of the 'conglomerate gold' model these more travelled nuggets can be inferred to be locally derived if paleo-placer source rocks occur in the area.
The scientific and technical information in this news release has been prepared or approved by Darren Lindsay, 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.
For further information: Travis McPherson, Vice-President Corporate Development, NxGold Ltd., +1 604 428 4112, [email protected]