Focuses On Marketing 108 sq km. Red Hill
~ Suspends field exploration to conserve cash ~
To my friends, family and NuLegacy shareholders/stakeholders:
As some of NuLegacy’s long-time supporters I want to provide with you some background on the news release distributed very early Monday, June 3, 2019 before the market opening.
NuLegacy’s BOD has decided NuLegacy can no longer finance what we believe has become a big company project. When we started out on this adventure to find a Carlin-style deposit on the Red Hill property (back when the CDN dollar was at par with the US dollar) we were drilling shallow reverse circulation holes (750 to 1,000 feet) into the near-surface Iceberg targets costing US $75 to $100,000 per (and at par that was CDN $75 to $100 thousand). While we had some reasonable initial success, we were not able to generate a meaningful measurable gold resource.
Under the recent guidance of Ed Cope and with the insights of Charles Weakly (both formerly significant contributors to Barrick Gold’s exploration success) our geo-team made tremendous progress in the understanding of the Red Hill’s geology during the last two years resulting in a ‘breakthrough’ analysis evidencing both structural and stratigraphic connectors between NuLegacy’s Red Hill Carlin gold systems and Barrick’s Goldrush/Fourmile Carlin gold systems which are:
• On trend;
• Strongly mineralized systems with the same stratigraphy; and
• With the high-grade gold at the structural confluence of high-angle faults and low-angle thrust faults within Wenban5.
Unfortunately, these targets are all significantly deeper and they require much more expensive core drilling (versus reverse circulation).
While we are very encouraged by the new targets, realistically it will take a considerable number of deep core holes to confirm if the new Rift zone hosts a significant Carlin deposit. With the CDN dollar now at $1.35 to the US dollar these $200 to $250 thousand US dollar deep core holes will cost CDN $300,000 plus per hole, or 3 million or more shares of NuLegacy per hole for the direct drilling/assay/field costs alone at the current 10 cents per share.
Test marketing of a possible financing with a dozen or more of our best investors/prospects has shown that while they were all very impressed with the progress we’ve made on understanding the geology, without a meaningful resource to underpin the decision, there is no appetite to financing such an expensive and highly dilutive drilling program in the current gold market environment.
So, a BOD determination was made that we will suspend drilling before the rigs arrive this coming week to conserve the company’s cash in order to fund the process of enrolling a sale/merger or joint-venture candidate.
Thank you and cheers,
Albert J. Matter
NuLegacy Gold Corporation | NUG:TSXV | NULGF:OTCQX
C: 604.512.7003 | www.nulegacygold.com
The foregoing is not intended to be relied upon as advice to investors or potential investors and does not constitute an offer to sell or the solicitation of an offer to buy any security nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. In addition, the foregoing contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions based on 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. 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.