October 1, 2009 Reno, NV - NuLegacy Gold Corporation has signed a new exploration agreement with option to form a joint venture with Miranda U.S.A. Inc. on Miranda's Red Hill property. Previous drilling at Red Hill intersected 45 feet of 0.237 ounce Au per ton (13.7 meters of 8.105 grams per tonne Au).
Under the terms of the agreement, NuLegacy is committed to spending $500,000 (U.S.) on or before Dec. 31, 2010. NuLegacy may earn a 60-per-cent interest in the Red Hill project by financing US$4 million in qualified expenditures over a five-year period and an additional 10-per-cent interest by completing a bankable feasibility study or financing $10-million (U.S.) in additional exploration. NuLegacy will finance all exploration including a drill program that is expected to take place during the second half of 2010.
"NuLegacy is a private company led by a well-respected management team that has been successful at identifying, discovering and financing gold resources. Miranda is pleased to have a new partner on this project, especially a partner that understands Carlin-style gold systems and the importance of the previously intersected gold mineralization," stated Ken Cunningham, president and chief executive officer of Miranda.
Detailed project information: Red Hill is a sediment-hosted gold project located 15 miles (24 kilometers) southeast of the 12-million-ounce Cortez Hills gold deposit within the Cortez trend. The project covers an extensive area of hydrothermally altered lower plate carbonate rocks. In 2006 drill hole BRH-013 intersected 80 feet of 0.146 ounce Au per ton (24.4 meters of 4.987 grams per tonne Au) from 1,920 to 2,000 feet (585.4 to 609.8 m), including 45 feet of 0.237 ounce Au per ton (13.7 m of 8.105 g/t Au) from 1,920 to 1,965 feet (585.4 to 599.1 m). Gold mineralization is hosted in silty carbonate rocks of the Denay formation associated with altered lamprophyre dikes; and high levels of arsenic, antimony, mercury and thallium. These features are indicative of a potential Carlin-style gold system.
Miranda geologists believe high-quality drill targets exist at Red Hill. Three of those targets are described below:
- A 2,300-foot-by-4,600-foot (700 m by 1,400 m) area that shows hydrothermally altered bedrock, a gold/mercury soil anomaly, a gravity low and a mapped syncline. Deep mineralization in BRH-013 is inferred to project into this anomaly with bedrock exposures indicating a shallower target zone. No drilling has tested this target.
- Gold mineralization in BRH-013 indicates the presence of a potential Carlin-style gold system. Widely spaced drill holes have not adequately tested this area.
- Three historic drill holes in an area of antimony prospects and altered dikes on the east side of the project end in 35 to 150 parts per billion gold above the Denay formation, the host for gold in BRH-013. The Denay below these shallower anomalous intercepts should be tested with deeper drilling.
The technical data disclosed in this press release has been reviewed and verified by Miranda's senior geologist Steven Koehler, CPG, BSc, geology, and a qualified person as defined by National Instrument 43-101.
NuLegacy Gold Corporation is a Nevada focused gold exploration company financed and operated by a well-respected management and corporate governance team that has successfully identified, discovered and developed numerous gold resources. 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 programs.
On Behalf Of The Board Of Directors Of NuLegacy Gold Corporation
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