October 13, 2015 - Reno, NV - NuLegacy Gold Corporation reports it has provided notice to Barrick Gold of the completion of NuLegacy's option to earn-in to a 70% undivided interest in the 60 sq. km property that hosts the Iceberg gold deposit.
The property, located in the Cortez gold trend of Nevada, is adjacenti to three of Barrick's multi-million ounce Carlin-type gold deposits that are its lowest cost and politically safest gold assetsii. The option agreement required NuLegacy to spend US$5.0 million of direct property expenditures (and corresponding indirect expenditures) to earn the 70% interest from Barrick by December 31, 2015.
We are pleased to report that these expenditures, which included 74 drill holes and numerous geo-physical and chemical surveys have established the Iceberg gold deposit as an exploration target of 90-110 million tonnes of 0.9 to 1.1 grams of gold per tonneiii. (NB. These figures are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.)
Under the terms of the option Barrick Gold has 90 days in which to elect to either earn-back to a 70% working interest by expending US$15.0 million in direct property expenditures over the next 5 years (and converting NuLegacy's remaining 30% interest to a carried-to-production interest) or remain a 30% minority working-interest partner.
The Earn-in: Preliminary exploration and drilling began in 2011 and resulted in the 'discovery' of the Iceberg deposit late in 2012. The return of lengthy intercepts of good to high-grade Carlin-type gold mineralization within favourable carbonate horizons over a substantial northwest/southeast strike of 3,000 meters indicated the deposit area was big enough to potentially contain a sizable resource that warranted more closely spaced delineation drilling. The majority of the delineation drilling focused on the higher grade North and Central zones of the Iceberg that extend approximately 1,200 meters within the 3,000 meter northwest/southeast strike of the favourable gold bearing horizons. Please follow these links for a selection of multi-meter multi-gram assays in these two zones as previously reported by NuLegacy:
Selected multi-meter multi-gram intercepts North zone
Selected multi-meter multi-gram intercepts Central zone
A detailed report on the earn-in exploration program is being prepared for posting to our website.
ON BEHALF OF NULEGACY GOLD CORPORATION
James E Anderson, Chief Executive Officer
For further information, please phone 604-638-4959 or contact James Anderson at email@example.com, Albert Matter at firstname.lastname@example.org or Roger Steininger, COO at email@example.com; or visit www.nulegacygold.com.
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. There are no known resources or reserves in the Iceberg deposit and the proposed exploration programs are exploratory searches for commercial bodies of ore. In addition, the presence of gold deposits on properties adjacent or in close proximity to the Iceberg Deposit is not necessarily indicative of the gold mineralization on the Iceberg Deposit. 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 annual management's discussion and analysis dated July 28, 2015 for the year ended March 31, 2015. 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.
i The similarity and close proximity of these deposits in the Cortez Trend is not necessarily indicative of the gold mineralization in the Iceberg deposit.
ii As extracted from Barrick's Q4-2013 and Q1-2014 reports.
iii The potential quantity and grade is based on reasonable assumptions made from a compilation of 149 historical drill holes and 38 NuLegacy holes drilled in and around the Iceberg