- Larger prospective contact strike identified.
- Intensive prospector activity evident adjacent to
prospective contact on both sides of project area.
- Fine gold discovered at surface.
- Geological model developed to test for additional horizons
at depth.
VANCOUVER, May 22, 2018 /CNW/ - NxGold Ltd. (the
"Company") (TSX-V:NXN) is pleased to announce it has
completed the initial mapping program at its 80%-owned Mt. Roe Gold
Project located in the Pilbara Gold Region near Karratha, Western
Australia. Due to the encouraging results from the Mt. Roe
Project, the Company has given notice to withdraw from the Chicobi
Project in order to focus on its Mt. Roe and Kuulu Gold
Projects.
Mt. Roe:
The initial mapping program at Mt. Roe has significantly
increased the prospective contact from 4km to 7km, greatly
increasing the potential scale of the gold target horizons present
in the project. Intense prospector activity, marked by
numerous detector holes, were mapped adjacent to the prospective
conglomerate contact (Figure 1).
In addition, NxGold has recovered fine gold at surface which is
in addition to the numerous 'melon seed-style' gold nuggets
interpreted to be associated with the now extended prospective
conglomerate contact (Figure 2). The gold was recovered by
sluicing approximately 100kg of remnant scrapings adjacent to the
conglomerate contact at Dry-Blower Gully.
Hand samples and thin sections of conglomerate material from
exposed conglomerates, gritty sandstones and sediments associated
with a mapped distinctive volcanic horizon inferred to occur
stratigraphically below the conglomerate exposure are being
reviewed. A geological model which will be updated as more
data is uncovered has been developed which will inform work to test
for the thickness of the prospective horizon and distribution of
gold.
The Company's next steps include the exposure of the
conglomerate unit and its upper and lower contacts, systematic
stream and gully sampling along the inferred conglomerate contact
to evaluate the gold enrichment, and is contemplating a systematic
soil sampling program to further identify potential sources of fine
gold on the property. Results of these activities will be reported
when available.
Chicobi Update:
Due to the positive results to date at the Company's Mt. Roe
project, it has given notice to withdraw from the Chicobi project
in order to focus its capital and effort on the Mt. Roe Gold
Project in Western Australia. The Company is also continuing
its efforts to obtain the final outstanding surface access licences
so it may progress the Kuulu Project in Nunavut and remains confident in its position
regarding the project.
Christopher McFadden, Chief
Executive Officer commented, "To increase the strike of the
prospective conglomerate contact in the heart of this new gold play
by 75% is encouraging. Work is ongoing to better understand
the geology and gold morphology, including sampling near one area
of the exposed conglomerate. Additionally, the discovery of fine
gold is encouraging as it highlights the potential for a
primary-hosted gold system in addition to the conglomerate-hosted
model potential which is clearly evident at our Mt. Roe Project.
With these results, the Company has made the decision to focus its
efforts solely on the Mt. Roe and Kuulu projects and as a result
has provided notice of our intention to withdraw from the Chicobi
earn-in."
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.
About NxGold
NxGold is a 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.
Technical Disclosure
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.
