Shares of NevGold (TSXV: NAU) reached their highest value in nearly a month as the company released its latest drill results from the Cadillac valley target area at its Limousine Butte project in Nevada.
The latest results from the company’s ongoing 10,000-metre drill program included a drill hole (CV22-006) that intercepted gold about 650 metres away from previously known mineralization. The company says the new Cadillac valley south area discovery requires follow-up drilling.
Highlights from the drilling included 19.8 metres grading 1 gram gold per tonne starting from 205.7 metres in hole CV22-004 and 73.1 metres grading 0.51 gram gold starting from 131.1 metres in hole CV22-006.
“We are continuing to build a meaningful, near-surface, high-grade oxide gold story at Limousine Butte. Intercepting another thick, continuous hole… significantly expands the mineralized footprint at Cadillac Valley,” said NevGold CEO, Brandon Bonifacio, in a press release on June 2.
“The thesis is building that we have a large oxide gold system with higher grade material than many heap-leach projects in production or development in the western U.S.,” he added.
Located about 105 km from Ely in Nevada, the projects cover about 66.50 sq. km. The area produced about 100,000 oz. gold from the Golden Butte pit between 1989 and 1990 and has historical drilling totalling approximately 900 holes for 120,000 metres.
Limousine Butte has a historical (non NI 43-101) resource estimate of 9.6 million tonnes grading 0.78 gram gold per tonne for 241,080 oz. of contained gold in the measured and indicated category. A historical inferred resource adds 2.3 million tonnes grading 0.7 gram gold for contained metal of 50,700 oz. gold.
Highlights of drill results from the project released on Apr. 6 included 58.2 metres grading 2.13 grams gold per tonne starting from 212 metres in hole CV22-001 and 126.2 metres grading 0.83 gram gold starting from 127.4 metres in hole CV22-002.
The oxide gold mineralization hits at the Cadillac Valley, first in April and now with the latest batch of results, “reflect the large, pervasive oxide gold system with the potential for much higher-grade mineralization than many gold heap leach projects” in Nevada, wrote Haywood Securities analyst, Geordie Mark, in a research note on June 3.
With regards to hole CV22-006, he wrote: “We believe (the) stratabound gold mineralization could deliver continuity to the south, in faulted blocks that could become progressively shallower.”
At press time in Toronto on June 3, shares of NevGold were trading at 71¢, up more than 20% after closing at 57¢ on June 1.
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