December 20, 2010 Reno, NV - NuLegacy Gold Corporation (NUG:V) reports the results of an Induced Polarization/resistivity survey and a coincident soil sampling program completed recently on its Woods Hills South Prospect. The 35 square mile Wood Hills South Prospect is in the newly emerging Pequop trend in north-east Nevada, and is contiguous to the AuEx Ventures properties (West Pequop and Long Canyon) that, among other interests, Fronteer Gold recently acquired 49% of for approximately $250 million.
NuLegacy's initial review of the geology of the Wood Hills South Prospect (70% optioned from Renaissance Gold Inc., successor to AuEx Ventures, in December, 2009) indicated it could be similar to that of the emerging West Pequop and the established Long Canyon gold discoveries. The current geophysical and soil sample results support that initial conclusion.
"Our interpretation of the geophysics and geochemistry present a representation very similar to the geology of the gold deposits in the Pequop Mountains immediately to the east. We are extremely encouraged by the results of the exploration program at Wood Hills South," says Dr. Roger Steininger, COO of NuLegacy Gold.
"Plans are being developing for our 2011 program and will include more mapping along the range front to solidify our knowledge of the geology and structure. Additional soil sampling is planned to expand on our initial widely spaced survey lines to better define the anomaly, and an aggressive drilling program will test our interpretation and start identifying areas favorable for gold mineralization."
During 2010 NuLegacy completed bedrock mapping, outcrop sampling, soil sampling, and an IP/resistivity survey at the south edge of the Wood Hills and onto the pediment to the south.
The geophysical results indicate discontinuous blocks of material under the thin pediment gravel cover that are likely limestone and dolomite formations containing breaks as a result of faulting and/or solution movement. These breaks are potentially favorable sites for gold mineralization.
As well, the coincident (on the same lines as the IP/resistivity survey) soil sampling program, sampled every 150 fee, returned anomalous gold analyses in the soils corresponding to the interpreted breaks in the bedrock formations. All of the soil samples were analyzed by American Assay Labs, Sparks, NV for gold and 36 trace elements. Included with the soil samples were sufficient standards, blanks and duplicates to insure the analyses received were of good quality.
Of the 783 samples collected, 423 contained detectable gold (3 ppb, or greater) to a maximum value of 41 ppb Au. The average of all detectable gold was 7 ppb, a threshold value of 10 ppb Au was determined, and 75 samples contained what is interpreted as anomalous gold values. The trace elements are being evaluated.
The interpretation that the pediment area is favorable for hosting gold mineralization is further supported by the stratigraphy of northern third of the Wood Hills Prospect with its surface exposures of gold and silver bearing jasperoids in Paleozoic carbonate rocks. These gold-bearing silicified zones and the associated trace element suite are characteristic of the margins of large areas of gold mineralization throughout Nevada.
In summary the Wood Hills South Prospect has discontinuous breaks in what is likely a bedrock of limestone and dolomite formations, anomalous gold in soil samples corresponding to the apparent breaks, and favorable stratigraphy for hosting gold mineralization. Thus our interpretation is that the best areas for potential gold mineralization at Wood Hills South are likely under the thin gravel cover on the pediment. To view a map of the location of the IP/resistivity survey and coincident soil sampling lines click here.
The proposed operating budget for the Wood Hills Prospect during the next two years will be in excess of $1.5 million. A more detailed discussion of these results will be posted in the "COO Update" section of our website early in 2011.
Pending: The drill samples from the recently completed drilling program on the Red Hills Prospect (four holes) are in for gold and multi-element analyses (36 elements) at American Assay Labs and it is anticipated that analytical work will be completed and reported by mid-to-late January 2011. As well the two additional IP/resistivity survey lines recently added to the Red Hill Prospect are expected to be ready for reporting shortly.
NuLegacy Gold Corporation is a Nevada focused gold exploration company. It is financed and operated by a management and corporate governance team that have 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. Our objective is to discover significant multi-million 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 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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