NuLegacy Gold (TSXV: NUG) saw its shares drop Friday in Toronto after announcing that it’s suspending exploration at its Red Hill property in Nevada, citing a lack of meaningful results in the second hole of the 2023 drill program.
The company has been focused on exploring for high-grade Carlin-style gold deposits on this 108-sq.-km district-scale property, which it says is on trend or adjacent to three of Nevada Gold Mines’ (NGM) most profitable multi-million ounce gold mines (Pipeline, Cortez and Goldrush). NGM is a joint venture between Barrick Gold (TSX: ABX; NYSE: GOLD) and Newmont (TSX: NGT; NYSE: NEM).
The second hole of the 2023 program intercepted about 110 metres of Wenban stratigraphic unit that is said to host 75% of the gold in the Goldrush deposit.
While there were numerous faults and a continuous breccia zone, there was no strong Carlin-type alteration throughout or below the main target, and thus no strong geochemical signature to guide further targeting, NuLegacy stated in Thursday’s press release.
There were also no significant intervals of gold in the hole — “significant” being an interval of 10 feet or more of 0.1 gram gold per tonne or higher.
The Wenban horizon was first confirmed by NuLegacy’s geologic team back in November 2020.
NuLegacy also attributed the suspension to the failure to fully complete the September common share offering, from which it was seeking to raise $2.5 million. The company said it will now explore various options for the Red Hill Property.
Shares of NuLegacy Gold were down by 60% as of mid-day, giving the Nevada-focused junior a market capitalization of $6.3 million.
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