- Twenty-four reconnaissance stream sediment samples contain
gold grains.
- Additional sediment exposures in 508 m of follow up
trenching/stripping.
- Specimen Area target structure traced approximately
50 m.
VANCOUVER, Aug. 8, 2018 /CNW/ - NxGold Ltd.
("NxGold" or the "Company"), (TSXV: NXN) is
pleased to provide an update on its 2018 exploration program at the
Mt. Roe Project located in the Pilbara region of Western Australia. The Company has recently
completed a reconnaissance stream sediment sampling program to
identify (i) auriferous sections of the inferred paleo-placer
target horizon; and (ii) areas that have the potential to host lode
gold style mineralisation. A preliminary follow-up
trenching/stripping program was also completed expanding the
exposure of sediments at the target horizon and continuing to
evaluate the target horizon to the southwest.
Christopher McFadden, Chief
Executive Officer, commented: "Our systematic approach to
evaluating the Mt. Roe properties continues to support gold being
shed from the Mt. Sholl ridge. The stream silt samples define
key portions of the ridge with the potential to host gold
mineralisation. The identification of vein structures in the
'Specimen Area', among others, supports the potential existence of
primary gold mineralisation on the property. Both of these
targets are being evaluated and we look forward to continuing to
unlock the potential of this prospective project."
Stream sediment samples
A total of 45 stream sediment samples were collected which
included 5 control samples (field duplicates or quartz sand
blanks). At each sample site, approximately 10 kilograms
('kg') of - 80 mesh (-1.77 millimetre ('mm')) material was sieved
on site (fine fraction); a 1.5-2.0 kg subsample of this fine
fraction was collected in a separate sample bag for gold and
multi-element analyses. The remaining fine fraction material
was processed through a sluice box with the resulting fines panned
for the qualitative detection of heavy minerals. Hackly
textured or pristine gold grains are interpreted to be indicative
for the potential for lode style mineralisation weathering into the
drainage basin hosting the sample site. Rounded or modified
grains are interpreted to be either (i) derived from the inferred
paleo-placer horizon; or (ii) grains more distal from a lode style
mineralisation source. Assay results of the subsamples are
pending.
Figure 1 shows the distribution of those samples which returned
visible gold grains with an inset showing an example of gold grains
recovered from a sluiced then panned stream sediment sample (grid
scale dark lines 1.0 cm, light lines 2 mm).
Trenching/Stripping
Sixteen trenches and trench extensions totalling 508 m in length were used to further expose the
conglomerate/pebbly sandstone/sandstone target horizon, to step
along strike and expose the target horizon, and to further expose
potential high-grade structures. The target horizon is shown
in Figure 1. The trenching/stripping evaluates a strike
length of approximately 2.0 km of the targeted contact of interest.
Of these, seven trenches (150
m) were focused on exposing and tracing the known
sedimentary exposures in the Conglomerate Area, five trenches
(206 m) were used to trace the target
horizon to the southeast and four trenches (152 m) were used to further evaluate potential
gold bearing structures in the "Specimen" Area.
Conglomerate Area: Conglomerate/pebbly
sandstone/sandstone rocks inferred to be the source of 'melon seed'
nuggets have been exposed by a series of trenches and stripping
covering a total area of 420 m
squared in two locations approximately 150
m apart. These exposures are currently being
considered for larger scale sampling that would be required to
better determine gold grade in a prospect that contains coarse or
nugget gold.
Specimen target area: Three trenches were cut to
perpendicularly cross the mineralised structure identified in the
previous trenching program (see News Release dated: June 28, 2018); additional structures were
exposed in these short trenches (35
m). A long trench was excavated to cross numerous
zones of float quartz in the immediate vicinity of the Specimen
area. Vertical and horizontal one metre chip samples were
collected from these trenches in addition to selective samples
collected from the veins. A total of 29 samples were
collected including four control samples (certified reference
material or duplicate). These samples were sent for gold and
multi-element analysis. Results are pending.
Option Grant
The Company has also granted 4,200,000 incentive stock options
to certain officers, directors, consultants and employees of the
Company (the "Options") pursuant to the Company's Stock
Option Plan.
The Options were granted on August 8,
2018 (the "Grant Date"), have a term of five years,
vest in three annual instalments commencing on the Grant Date, and
are exercisable at a price of $0.20
per common share of the Company. All of the stock options
granted are subject to TSXV acceptance.
About NxGold
NxGold is a well-funded Vancouver-based exploration company. The
Company owns 80% of the Mt. Roe gold project located in the Pilbara
region of Western Australia. The Company has also entered
into an earn-in agreement with Meliadine Gold Ltd. to earn up to a
70% interest in the Kuulu Project (formerly known as the Peter Lake
Gold Project) in Nunavut.
Neither TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Technical Disclosure
The sampling programs of stream sediments, soils, rocks and chip
samples involve a quality assurance and quality control program
that includes the collection of field duplicates and insertion of
certified reference materials at frequency of roughly one in ten
samples. Rock samples and some chip samples are selective in nature
and are not representative of the property as a whole. All samples
have been sent to Intertek Genanalysis in Perth, WA for analysis.
NxGold advises that the Mt Roe Gold project is an early stage
exploration project utilising an evolving gold deposit model for a
paleo-placer style of mineralisation. Abundant exploration work is
required to understand the previously unrecognised sedimentary
geology and confirm if the source(s) of the coarse gold is located
within NxGold Ltd.'s tenements. There is no certainty of the
discovery nor definition of a mineral resource.
The scientific and technical information in this news release
has been prepared or approved by Darren
Lindsay, Vice President Exploration and Development, of the
Company, a "qualified person" within the meaning of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
Cautionary Statement Regarding "Forward-Looking"
Information
This news release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
"Forward-looking information" includes, but is not limited to,
statements with respect to activities, events or developments that
the Company expects or anticipates will or may occur in the future
including whether the proposed acquisition will be completed.
Generally, but not always, forward-looking information and
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or the
negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on
numerous assumptions, including among others, that general business
and economic conditions will not change in a material adverse
manner, that financing will be available if and when needed and on
reasonable terms, and that third party contractors, equipment and
supplies and governmental and other approvals required to conduct
the Company's planned exploration activities will be available on
reasonable terms and in a timely manner. Although the assumptions
made by the Company in providing forward-looking information or
making forward-looking statements are considered reasonable by
management at the time, there can be no assurance that such
assumptions will prove to be accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ
materially from any projections of future events or results
expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves or resources, reliance on key
management and other personnel, potential downturns in economic
conditions, actual results of exploration activities being
different than anticipated, changes in exploration programs based
upon results, and risks generally associated with the mineral
exploration industry, environmental risks, changes in laws and
regulations, community relations and delays in obtaining
governmental or other approvals.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in the forward-looking information or implied by
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company undertakes
no obligation to update or reissue forward-looking information as a
result of new information or events except as required by
applicable securities laws.
SOURCE NxGold Ltd.
