September 30th, 2010 Reno, NV - NuLegacy Gold Corporation announces it has optioned approximately 25 square miles in the south end of the Cortez Segment of the Battle Mountain-Eureka trend in Nevada from Barrick Gold Exploration Inc. The property is located between Barrick Gold's Cortez Hills operation to the north and the US Gold's Tonkin Springs operation to the south.
The acquisition of the Barrick property, situated to the west of and contiguous to the 'Red Hill Prospect' NuLegacy Gold optioned from Miranda Gold in the fall of 2009, is a partial consolidation of a 15+ square mile 'JD' carbonate window most of which occurs within the two properties. The JD Window is the largest and least explored of the five major carbonate windows in the Cortez Segment and NuLegacy Gold believes that the JD Window has geology similar to that which hosts the existing four Carlin-type deposits in the Segment, which have their largest and best resources at depths between 500 and 1,200 feet.
The principal terms of the option for Barrick's Portion of the Red Hill Prospect are:
- NuLegacy spends $5 million over 5 years to earn a 70% interest,
- Once NuLegacy has earned the 70% interest Barrick will have a one-time 90 day option period in which to "back-in" to a 70% interest.
- If Barrick exercises that option it must spend $15 million on the property within 5 years to earn-back the 40% and end up with a 70% interest. Thereafter NuLegacy's remaining 30% interest will be 'carried to production'.
Much of the drilling on the Barrick ground was conducted years ago when the operators were searching for low cost near surface (less then 500 feet) heap-leachable oxide gold resources and operating without the benefit of modern geophysical, geochemical, and geological interpretation and deeper drilling techniques. As a result the property has numerous shallow drill holes that are concentrated in a few areas with large portions of the property having only scattered holes. A respectable number of these shallow (less than 450 feet in depth) drill holes have attractive gold intercepts in or near the bottom of the holes and there are several surface gold anomalies that have not been drilled. While there are few deeper holes drilled to date, several have significant intercepts (i.e. the 45 foot intercept of 0.237 ozs/ton gold on the Miranda portion of the Red Hill Prospect) indicating that the properties are capable of hosting potentially economic mineralization.
NuLegacy Gold Corporation is a Nevada focused gold exploration company financed and operated by a corporate governance team that has successfully identified, discovered and developed numerous gold resources. The company has under option the Red Hill Prospect in the well established and prolific Cortez gold trend and the Wood Hills South Prospect in the emerging Pequop gold trend. The company's objective is the discovery and sale of significant multimillion-ounce gold deposits utilizing highly focused exploration programs employing sophisticated techniques for targeting the follow-up drilling to previous exploration successes.
On Behalf Of The Board Of Directors Of NuLegacy Gold Corporation
Albert J. Matter, Chief Executive Officer
For further information please contact Albert Matter at firstname.lastname@example.org or Roger Steininger, COO at email@example.com
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. 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 Company's Chief Operating Officer and a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.