May 29th, 2012, Reno, NV -- NuLegacy Gold Corporation provides an update on the ongoing exploration programs at its Red Hill and Wood Hills South Projects in Nevada, U.S.A.
Red Hills Project Summary: The 100 sq. km Red Hill Project straddles the Cortez Gold Trend and is adjacent to Barrick Gold Corp.'s new and rapidly expanding multi-million ounce Goldrush discovery to the north-west.
With an early start after a dry winter and double shifting of the drill crews, 12 of the 20+ hole 2012 drilling program have been completed this spring on NuLegacy's Red Hill Project. The program is designed to test the cluster of four gold-bearing Carlin-style systems1 identified to date on the Red Hill that have similar geology as the Carlin-style system hosting Barrick's Goldrush discovery.
Partial assays are arriving for the first holes drilled; we anticipate being able to provide complete results for the first four holes by early June, and then reporting two to four holes every couple of weeks thereafter. It is anticipated that the drilling will resume later this summer when the results of these 12 holes have been received and have guided the selection of the follow-up drilling sites.
Red Hill Details: The first core hole of the program (RHM12-013C) was drilled just west of the Long Fault Anomaly2 to intersect and transverse the mineralized zone discovered in the historical reverse circulation hole BRH-13 (45 feet of 0.24 oz. of gold/ton or 13.7 m of 8.11 g gold/T).
RHM12-013C was angled to the south at -75 degrees and was completed to 2,645 feet [800m]. The core has three intersections of favorable (black carbonaceous pyritic limestone) material; two are above and one around the BRH-13 mineralized horizon (1,800 feet/550m) and extending to about 2,600 feet [793m]. The core will provide a more detailed view of the geology and assist in determining controls for this higher grade gold mineralization. The black carbonaceous pyritic limestone typically hosts the higher grade gold mineralization in Carlin-type gold deposits. The entire core has been sawed and shipped to the lab for analyses and assay results are anticipated by end-June/early July.
The first reverse circulation (RC) hole of this year's Red Hill exploration program (RHB12-004) was drilled into the Central Pediment Anomaly (within the 60 sq. km Barrick Gold option -- ABX-T) to a depth of 2,500 feet [760m] and intersected limestone with abundant calcite veining. It was designed as a reconnaissance test of a portion of the recently discovered deep induced polarization anomaly (the Central Pediment Anomaly NR Jan 18, 2012).
Six reverse circulation exploration holes have been completed in the Long Fault Anomaly (within the 10 sq. km Miranda option -- MAD:TSXV). Several of these holes show significant intersections of favorable material: i.e. hole RHM12-017 contains a 315 foot [96m] zone of silicified, brecciated, quartz veined, and iron-oxide rich rock (which is often associated with ore-grade oxidized gold mineralization in Nevada), along with two deeper 20-30 foot intervals of quartz-pyrite. The last two of the six holes were completed on the eastern margin of the Long Fault Anomaly; they contained significant pyrite in favorable rocks units.
The two holes drilled in the Central Mineralized Zone (RHB12-005 and 006) were completed to 1,500 feet (457m) and contain significant zones of alteration. Both holes encountered abundant iron oxides in limestone (from near-surface to 900 feet [275m] in hole 005 and 600 feet (180m) in hole 006), below which the mineralization contains disseminated pyrite . This may be an extension of the gold mineralization encountered last year in RHM11-003 (26 meters of 0.14 gold g/t).
The last two holes on the Red Hill Project were completed on the East Pediment and are currently being logged.
Wood Hills Summary: The 100 sq. km Wood Hills South Project is contiguous to the West Pequop gold deposits and multi-million ounce 'Carlin-type' Long Canyon gold deposits recently acquired by Newmont Mining Corp for approximately $1.8 billion.
The Wood Hills Project (optioned from Renaissance Gold (REN-T) successor to AuEx Ventures Inc.) has similar geology to the adjacent Long Canyon gold discovery. The Project's gold-bearing system appears to have been offset by basin and range faulting, thus it is our view that the gold mineralization is likely an extension of the Pequop Gold Trend immediately to the east. (http://nulegacygold.com/s/WoodHills_Maps.asp).
Wood Hills Details: We have finished logging the drill chips from the 20-hole 2012 reconnaissance drilling program and concluded a detailed analysis of all of the data that we have developed on the property.
Our micro-gravity survey results, combined with all of the other geochemical and geophysical data generated to date, are being used to develop the targets for the next round of drilling focusing on the areas of potentially higher-grade mineralization. We anticipate having a drilling plan developed by early June for permitting and drilling by mid-August/early September this year.
The interpretations of the gravity surveys have outlined several large gravity lows. These appear to be the favorable disruptions in the limestone blocks (caused by a combination of fault intersections, collapse features, and/or decalcified zones) that may have served as channel-ways and hosts for the gold bearing solutions to permeate and possibly form larger volumes of higher grade gold mineralization (as at the Long Canyon deposit just across the valley).
Hole WHS11-007 - an impressive near surface and oxidized 10.7 meter interval that averaged 0.40 g/t gold within approximately 60 meters of anomalous gold mineralization with associated Carlin-style trace elements - appears to have been drilled in silicified limestone approximately 150 meters east of a large gravity low favorable area. Several other holes containing anomalous gold also appear to be on the margins of some of these favorably disrupted zones, indicating there are several more areas of gold mineralization. The next round of drilling will be designed primarily to follow-up on the WHS11-007 intercept and these other favorable targets.
Reverse circulation drilling on the Red Hills is by Envirotech Drilling LLC of Winnemucca, NV; core drilling by National EWP, LLC of Woodland, CA, all under the direction and supervision of NuLegacy Gold's COO, Dr. Roger Steininger (CPG 7417). All of the samples are being analyzed by American Assay Labs (Sparks, NV) for gold and a suite of 36 trace elements.
NuLegacy Gold Corporation is a Nevada focused exploration company exploring for Carlin-type replacement gold deposits on its two highly prospective district scale properties; the 100 square km Red Hill Project and the 80 square km Wood Hills South Project. Both projects have geology similar to that of the adjacent multi-million ounce gold discoveries that were made subsequent to our acquisition of the properties. The NuLegacy exploration and drilling programs underway employ proprietary techniques for targeting multi-million ounce deposits.
ON BEHALF OF THE BOARD OF DIRECTORS OF NULEGACY GOLD CORPORATION
Albert J. Matter, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com including our prospectus dated November 10, 2010. 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 Chief Operating Officer of the Company and a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.
1View the four systems (Long Fault Anomaly, Central Pediment Anomalies, Central Mineralized Zone and Jasperiod Basin) at http://nulegacygold.com/RH_Carlin-type_Systems.pdf and the drill map at http://nulegacygold.com/RH_drill_targets.pdf
2View graphic at http://nulegacygold.com/i/pdf/plan_view_5.pdf