April 18, 2012 Reno, NV - NuLegacy Gold Corporation provides an update on the ongoing exploration programs at its Red Hill (Eureka County) and Wood Hills South Projects (Elko County) in Nevada.
The Red Hill Project, which straddles the Cortez Gold Trend, is immediately adjacent to and southeast of Barrick Gold's new multi-million ounce RH-Goldrush gold discoveries. The Wood Hills South Project is contiguous to the West Pequop and Long Canyon gold deposits recently acquired by Newmont for approximately $2.3 billion.
"We have an aggressive drilling program underway with two drills currently operating at Red Hill," says Dr. Steininger, NuLegacy's COO responsible for all exploration activity. "Analyses from these holes should start arriving in late May. I am also extremely encouraged by the progress at Wood Hill South Project. The initial interpretation of the results from the recent drilling combined with the newly obtained gravity survey, the IP/resistivity and soil geochemistry surveys point to several areas with the potential of hosting significant gold mineralization that will be targeted in our next round of drilling."
Red Hill Project:
The four clustered gold-bearing Carlin-type systems that have been identified on the Red Hill Project have similar geology as the Carlin-type system hosting Barrick's RH-Goldrush discovery. The four systems [Long Fault (LFA) and Central Pediment (CPA) Anomalies, the Central Mineralized Zone (CMZ) and Jasperiod Basin (JB)] can be viewed at http://nulegacygold.com/RH_Carlin-type_Systems.pdf
and the drill map at http://nulegacygold.com/RH_drill_targets.pdf
The first reverse circulation (RC) hole of the 2012 Red Hill Project drilling program (RHB12-004) was completed in the Central Pediment anomaly (on the 60 sq. km Barrick option -- ABX-T) to a depth of 2,500 feet in limestone with abundant calcite veining. It is the first of several holes planned to test the Deep IP anomaly in the Central Pediment (located just to the west of the BRH-013 - view at http://nulegacygold.com/Deep_IP_view.pdf
) once the results of this hole confirm that the anomaly has the same gold bearing carbonaceous/pyritic material as BRH-013.
Three additional RC holes (RHM12-015 through 017) have been completed in the Long Fault Anomaly ("LFA") and a fourth is in progress (on the 10 sq. km Miranda option -- MAD:TSXV). The three holes have encountered variable alteration and some pyrite with hole RHM12-017 containing about 100 meters of brecciated, silicified, and iron stained limestone starting at about 200 meters in depth.
At least two more RC holes are planned for the Long Fault Anomaly once the results of these first four have been analyzed and incorporated into the Red Hill exploration model. Upon the completion of the fourth hole (RHM12-018) the RC drill will be moved to the Central Mineralized Zone for two holes and then on to the East Pediment (30 sq. km Idaho option) for two holes.
The first core hole of the 2012 program (RBM12-013C) is being drilled to the south at -75 degrees to intersect/transverse the mineralized zone found in the reverse circulation hole BRH-13 (45 feet of 0.24 oz. of gold/ton at a depth of about 1,880 feet depth). It is currently at a depth of approximately 1,800 feet.
Several intervals of the favorable black carbonaceous pyritic limestone are present in the core above the BRH-13 mineralized horizon. This core will provide a more detailed view of the geology, assist in determining controls for this higher grade gold mineralization, and help determine its extent and grade. The hole is expected to be finished by the end of April after which the core will be sawed and sent for assays with results anticipated by mid-June.
The compilation of all the geophysics (from NuLegacy and previous operators including Barrick Gold) from the Central Pediment and northern part of the East Pediment has been completed. Analysis of the compilation suggests that hole BRH-13 is along the northern margin of an east-west up lifted block and that the gold values from the hole may be leakage from the large system represented by the deep IP anomaly in the Central Pediment. When integrated with the historic and current drill data, it should assist in the development of further specific drill targets. Approximately 25 holes in total are planned in this campaign.
Wood Hills South Project:
The 100 sq. km property (optioned from Renaissance Gold - REN-T) has similar geology to the adjacent Long Canyon discovery: it appears to have been offset by basin and range faulting and may otherwise have been a direct extension of the West Pequop property (view at http://nulegacygold.com/s/WoodHills_Maps.asp
A gravity survey was commissioned to assist in planning an effective follow-up drilling program for the anomalous gold mineralization found in eight of the first 10 holes (of the 20 hole reconnaissance drilling program) reported February 7, 2012. Hole WHS11-007 returned the most significant results: an impressive near surface and oxidized 10.7 meter interval that averaged 0.40 g/t gold within approximately 60 meters of anomalous gold mineralization with associated Carlin-type trace elements.
The 15 sq. km high-resolution detailed microgravity survey centered on hole WHS11-007 is now complete. The initial results indicate a beneficially complex structural setting with numerous interpreted faults between and below the surrounding carbonate blocks, with the favorable areas appearing as gravity lows.
These lows identify the areas where the carbonates may contain the right combination of fault zones, decalcified areas, and/or karst features to serve as channel-ways and hosts for the gold bearing hydrothermal solutions allowing the gold bearing solutions to permeate and form large volumes of higher grade gold mineralization (as at the Long Canyon deposit just across the valley). The initial interpretation of the micro-gravity survey suggests that such a favorable area is about 150 meters east of hole WHS11-007. The gravity survey also outlines several other undrilled areas that represent similar targets.
Results from the additional soil geochemistry survey outline several gold anomalies in the area of holes WHS11-001 through 007. The trace element analyses also present several interesting anomalies. All of the new soil geochemistry is being incorporated with previous surveys and the new geophysics to develop drill targets to follow up on WHS11-007 and the several other significant anomalies that represent important targets for the next round of drilling.
Analyses from the second batch of 10 holes (of the 20 hole reconnaissance drill program) have been received; several definite gold anomalies were encountered with none rivaling the WHS11-007 results.
Reverse circulation drilling on the Red Hills is by Envirotech Drilling LLC of Winnemucca, NV; core drilling by National EWP, LLC of Woodland, CA, all under the direction and supervision of NuLegacy Gold's COO, Dr. Roger Steininger (CPG 7417). All of the samples will be analyzed by American Assay Labs (Sparks, NV) for gold and a suite of 36 trace elements.
NuLegacy Gold Corporation is a Nevada focused exploration company exploring for Carlin-type replacement gold deposits on its two highly prospective district scale properties; the 100 square km Red Hill Project and the 80 square km Wood Hills South Project. Both projects have geology similar to that of the adjacent multi-million ounce gold discoveries that were made subsequent to our acquisition of the properties. The NuLegacy exploration and drilling programs underway employ proprietary techniques for targeting multi-million ounce deposits.
ON BEHALF OF THE BOARD OF DIRECTORS OF NULEGACY GOLD CORPORATION
Albert J. Matter, Chief Executive Officer
For further information please phone 604-638-4959 or contact Albert Matter at email@example.com or Roger Steininger, COO at firstname.lastname@example.org; or visit our website at www.NuLegacygold.com
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This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com including our prospectus dated November 10, 2010. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The technical disclosure in this press release has been reviewed by Dr. Roger Steininger, the Chief Operating Officer of the Company and a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.