Nulegacy Gold (OTC:NULGF) reports drill results along the Long Fault, reducing the distance between the North Zone of the Iceberg Deposit and the recently discovered Serena Zone. We maintain a Buy rating.
Summary of Drill Results from the North and Serena Zone:
- Drill hole IN17-5 (North Iceberg zone), a 100-meter step-out toward Serena zone, returned a 21.3 meter interval of 2.80 g/t gold, including a 4.6 meter interval of 9.67 g/t gold.
- Drill hole SR17-4 (Serena zone), 45 meters east of the SR17-01 discovery hole (with a 50.3 meter interval of 1.0 g/t gold), toward the North zone, returned a 21.3 meter interval of 0.85 g/t gold.
- Drill hole SR17-2 (Serena zone), ~45 meters west of SR17-01, returned a 12.2 meter interval of 0.67 g/t gold and 6.1 meters of 0.60 g/t gold.
- NuLegacy notes the “possible convergence” between the North and Serena zones as the undrilled gap is reduced to 230 meters from 375 meters.
Drill results were consistent with other Carlin-style gold deposits. Gold mineralization was located along the east-west Long Fault structure. Mineralization was found in the sedimentary Devonian Horse Canyon Formation in moderately brecciated grey jasperoid with fine-grained silts. While it may be too early to draw conclusions about a potential convergence of the North zone of the Iceberg Deposit and the recently discovered Serena zone, the reduced gap between the zones clearly supports additional in-fill drilling. NuLegacy also reported that drill hole SR17-03 to the north of SR17-01, as well as three step-out drill holes from the North zone, returned either no significant gold or anomalous values of gold. We are interested in the potential for further drilling to the east along the Long Fault and along the West Iceberg and Western Slope faults. We maintain our Buy rating.