VANCOUVER, Aug. 17, 2017 /CNW/ - NXGOLD LTD. ("NxGold" or the "Company"), (NXN:TSXV) advises that it has yet to receive the required renewal to the existing Land Use Licences KVL311B01 and KVRW12E01 in respect of its Kuulu Project, Nunavut and as a result will not be able to undertake its previously announced proposed drilling program during the summer. The Company is continuing its dialogue with the Kivalliq Inuit Association and remains optimistic that it will be able to secure the required renewals in due course at which time it will resume its maiden drill program at Kuulu.
As previously announced on June 19, 2017, the Company obtained a positive decision from the Nunavut Impact Review Board ("NIRB") for the Kuulu project and has since obtained an "Approval Without a Licence" from the Nunavt Water Board ("NWB") which allows the Company to undertake non-drilling exploration activies on the project. The Company has also applied for a Type B water licence from the NWB to support drilling activities on the project area and expects to receive the licence in the near-term.
The Company is pleased to announce that it will soon commence exploration activities at its Chicobi project located in the middle of the prolific Abitibi Greenstone Belt in Québec. The Company has committed to an 11 kilometer high resolution seismic survey as an industry partner to the Seismic Discovery Program co-ordinated by the Mineral Exploration Research Centre at the Harquail School of Earth Sciences, Laurentian University. The Chicobi seismic survey is expected to be completed by the end of September.
Following completion of the seismic survey the Company intends to complete VTEM and magnetic surveys over high priority parts of the Chicobi project area and then commence a program of approximately 200 humus, soil and top of bedrock sampling in select areas of the Chicobi property.
Chris McFadden, CEO of NxGold stated; "While we continue to work closely with the Kivalliq Inuit Association and the local community to seek renewal of the licences as soon as we can in order to drill the highly prospective Kuulu Project, we will expedite technical focus onto the Chicobi project for the remainder of summer and into fall. We are excited about the imminent commencement of the seismic survey as well as the geophysical and soil sampling programs planned for Chicobi in order to identify the highest priority drill targets across the approximately 60,000 hectare land package."
NxGold is a Vancouver-based exploration company. NxGold 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). Additionally, the Company has entered into an earn-in agreement to earn up to a 100% interest in the Chicobi Project located within the prolific Abitibi Greenstone Belt in Québec.
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. 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]