Chairman's Chats

A Love Song To Nevada



To our Friends, Family and NuLegacy Shareholders/Stakeholders,

Hi Folks,

With the benefit of 'hind-sight' the Globe & Mail has pointed out that the major gold miners 'neglected investor safety'...by pursuing gold deposits in questionable jurisdictions around the world.

The three year bear market in gold has made everyone sensitive to political risk and that should increase the value of properties and gold resources in safe jurisdictions.
 


NuLegacy shareholders can take some satisfaction from having supported the company when it turned away offers of opportunities in other jurisdictions to focus entirely on Nevada - and acquired its option to earn 70% of the 60 sq. km Red Hill property (host to the Iceberg gold deposit) from Barrick in 2010 while the majors where focused internationally.
 
With all the finger-pointing in the wake of the collapse of the Barrick-Newmont merger discussions it's easy to be distracted from the fact that Barrick's 'main assets', which are amongst the largest and lowest cost gold mines in the world, are also in the safest mining jurisdiction in the world.

The following extract from Barrick's 1st quarter report is like 'a love song to Nevada'! The yellow highlighting is mine.

"Goldrush and other opportunities in Nevada

Nevada is a cornerstone of Barrick's success, and a number of growth opportunities are under consideration.

The Goldrush project near the Cortez mine is in the prefeasibility stage and the study remains on schedule for completion in mid-2015. The company is evaluating a number of development options, including underground mining or a combination of both underground and open-pit mining. Recent drilling has encountered deep, very high-grade mineralization, including an intersection of 103 feet averaging 0.725 ounce per ton, which continues to expand the size and grade potential to the north. Barrick is assessing the feasibility of an exploration decline to better define the existing resource and test for additional mineralization beyond the northern extent of the deposit.

At Cortez Hills, drilling in the Lower zone is in the final stages of a program to upgrade and expand the resource base. The Lower zone is characterized by strong and continuous ore zones. Following completion of the scoping study, a prefeasibility study to evaluate deeper mining below the currently permitted level is expected to be completed by late 2015. Below this level, the Lower zone is mostly oxide and higher grade than the zones above. Drilling has yet to determine the limits of the Lower zone and further drilling is planned for the second quarter. Results to date have met or exceeded expectations.

Turquoise Ridge contains over 6.7 million ounces (100-per-cent basis) in reserves at an average grade of 0.51 ounce per ton, the highest reserve grade deposit in the company's operating portfolio. This exceptional reserve base provides an excellent opportunity to both accelerate and expand production, but the operation is currently restricted by haulage and ventilation constraints. One option being considered is an additional shaft to reduce haulage distances. This could increase production by 75 per cent for five to eight years. A prefeasibility study on this scenario is expected to be completed in late 2014.

The Cortez district continues to yield promising exploration opportunities beyond Goldrush. Barrick has earned a 70-per-cent interest in the Spring Valley project approximately 60 miles west of Cortez by conducting exploration drilling and scoping activities. The project has advanced to the prefeasibility stage and could potentially be a new stand-alone gold mine. The company also recently secured the last remaining block of prospective land in the Cortez district.

In addition, it has the option to attain a 75-per-cent interest in the Gold Ridge project, located just north of the Pipeline deposit at Cortez, by completing a scoping study. This is an earlier-stage opportunity in a key district which has encouraging geological characteristics."


And as Barrick's CEO, James Sokalsky said on the 1st quarter's conference call late Wednesday afternoon, "We have great opportunities in front of us, and I do think that the market is underappreciating how many opportunities we have in the future, particularly in Nevada."

To be certain it is unlikely that NuLegacy would be able to option such a property in the Cortez today...and once having confirmed a threshold resource it should readily qualify as one of Barrick's 'growth opportunities...under consideration'.

Albert
Albert J. Matter | Executive Chairman, Director
NuLegacy Gold Corporation (NUG:V)
C: 604.512.7003
 

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. There are no known resources or reserves on the Iceberg Deposit or the Red Hill project and the proposed exploration programs are exploratory searches for commercial bodies of ore. All of the forward-looking statements made in this summary are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com including our annual management's discussion and analysis dated July 26, 2013 for the year ended March 31, 2013. 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 The scientific and technical information contained herein has been approved by Dr. Roger C. Steininger, NuLegacy's Chief Operating Officer and a "qualified person" as defined by NI 43-101, Standards of Disclosure for Mineral Projects.

_______________________________
iIn the Thursday April 24, 2014 edition.
iiBased on recent acquisition history in the gold mining industry, NuLegacy anticipates that a threshold target of ~1.5 million NI 43-101 qualified ounces of near-surface oxide gold could support a Barrick decision to earn-back. This figure represents NuLegacy's target goal and does not constitute an estimate of resources for the Iceberg deposit at this time. Currently there are no known NI 43-101 resources on the Iceberg and there are no assurances that additional exploration will confirm the existence of an economic resource.

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