Key Highlights
High-Grade, Open-Pit, Oxide, Heap-Leach Gold Mineral Resource in the
Significant Growth Captured Over Last 12 Months: compared to the 2020 historical resource estimate, the Company increased the pit-constrained tonnage by over 32%, with further upside identified with high priority drill targets.
Mineralization Starts at Surface with Low Strip Ratio: mineralization at
Higher Grade Core Within the Resource: increasing the cut-off grade from the base case of 0.30 g/t Au to 0.60 g/t Au, the Project has 560kozs of Indicated Resources at 0.92 g/t Au, and 81kozs of Inferred Resources at 0.87 g/t Au. Exploring for more potential high-grade mineralization will be a key focus as the project is advanced with further drilling and subsequent resource estimates.
Low Sensitivity to Gold Price: as seen in Table 2, the Project has low sensitivity to gold price. Decreasing the cut-off grade from the base case of 0.30 g/t Au to 0.20 g/t Au, the Project has 1.13Mozs of Indicated Resources at 0.53 g/t Au, and 365kozs of Inferred Resources at 0.39 g/t Au.
Next Steps: the Company plans to complete further drilling, metallurgical testwork, and an updated MRE to advance the Project to a Preliminary Economic Assessment ("PEA").
Table 1:
Classification Cutoff Grade (g/t) Tonnes Gold Grade (g/t) Ounces Gold
Indicated 0.30 51,660,000 0.61 1,006,000
Inferred 0.30 17,860,000 0.48 275,000
Notes:
Effective date of this mineral resource estimate is
All mineral resources have been estimated in accordance with
Mineral Resources reported demonstrate a reasonable prospect of eventual economic extraction, as required under NI 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the estimated Mineral Resources will be converted into Mineral Reserves. The potential development of the Mineral Resources may be materially affected by environmental, permitting, legal, marketing, and other relevant issues.
Mineral Resources are reported at a cut-off grade of 0.30 g/t Au for an open-pit mining scenario. Cut-off grades are based on a price of
Ounce (troy) = metric tonnes x grade / 31.10348. All numbers have been rounded to reflect the relative accuracy of the estimate.
The quantity and grade of reported Inferred Mineral Resources are uncertain in nature and there has not been sufficient work to define these Inferred Mineral Resources as Indicated or Measured Mineral Resources. It is reasonably expected that many of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration, however, there is no assurance that further exploration will result in all or any part of the Inferred Mineral Resources being converted into Indicated Mineral Resources.
Tonnages and ounces in the tables are rounded to the nearest thousand and hundred, respectively. Numbers may not total due to rounding.
Table 2: Nutmeg Mountain Open-Pit Constrained Resource Sensitivity by Gold Cut-Off Grades
Cut-Off GradeAu g/t Classification Tonnes Gold GradeAu g/t Ounces Gold
1.00 Indicated 5,430,000 1.31 230,000
1.00 Inferred 590,000 1.36 26,000
0.80 Indicated 10,060,000 1.12 362,000
0.80 Inferred 1,260,000 1.11 45,000
0.60 Indicated 19,020,000 0.92 560,000
0.60 Inferred 2,920,000 0.87 81,000
0.50 Indicated 26,320,000 0.81 689,000
0.50 Inferred 5,360,000 0.72 124,000
0.40 Indicated 37,020,000 0.71 842,000
0.40 Inferred 9,440,000 0.60 182,000
0.30 Indicated 51,660,000 0.61 1,006,000
0.30 Inferred 17,860,000 0.48 275,000
0.25 Indicated 59,930,000 0.56 1,079,000
0.25 Inferred 23,660,000 0.43 327,000
0.20 Indicated 66,920,000 0.53 1,130,000
0.20 Inferred 28,890,000 0.39 365,000
Technical Overview
Details of the MRE are provided in a technical report entitled "Technical Report on the Nutmeg Gold Property" with an effective date of
In
The work completed to date by the Company has identified several high priority drill targets for future drilling. Historical drilling was mainly focused on the outcropping and near-surface disseminated mineralization, which is primarily located on the patented mining claims and other privately owned ground. (Figure 1)
Figure 1 - Plan view map of
Figure 2 - Cross-section looking north through the MRE block model with all blocks above a 0.10 g/t Au cut-off. Mineralization starts at surface, with a high-grade core outcropping. As shown, there is further mineralization beneath the
Figure 3 - Cross-section looking north through the MRE block model with 0.60 g/t Au cut-off. Mineralization in the higher-grade core of the resource starts at surface. To view image please click here
Figure 4 - MRE Block Model with deposit zones and classification. 74% of pit-constrained tonnage is in the Indicated category, with 26% of pit-constrained tonnage in the Inferred category. To view image please click here
Nutmeg Mountain Deposit Geology and Model
Most gold mineralization that has been identified at the Project to date occurs within a north-trending graben, which is where most of the drilling has been concentrated. The graben is bounded by faults on the east and west, and sedimentary units change in thickness and character across the bounding faults. Mineralization is associated with multi-phase hydrothermal brecciation and veining, strong silicification, acid alteration, and faulting. Much of the surface alteration is composed primarily of opaline silica and appears to be replacement of Payette Formation sandstone.
There are four principal zones of mineralization.
Drillhole Data and QAQC Procedures
Prior to the Company's work, the Project was evaluated by several historical work programs starting in the 1980s including geological mapping, geochemical and geophysical surveying, several metallurgical bulk samples and 934 core, RC, and rotary drill holes totaling 70,254 meters. In early 2023,
There is minimal documented QA/QC procedures or data available for drill programs prior to 2008. The Company drill program utilizes full industry-standard survey control and QAQC programs and is designed to systematically validate as much of the historical drilling as possible through collar surveys, re-logging, and re-sampling.
Reasonable Prospects of Eventual Economic Extraction
To support reasonable prospects for eventual economic extraction for the MRE, GMRS used the estimated block model to generate an optimized pit-shell using the following assumptions: a gold price of
Environmental, Social, and Governance Opportunities
As part of its commitment to environmental, social, and governance (ESG) practices, the Company has commenced a review of alternate energy potential near the Project. These alternate sources include geothermal, solar, and wind power generation. In particular, the Project is in an area of high geothermal energy potential with two geothermal projects already operating nearby. There are also a number of solar and wind power generation projects in
Next Steps
The Company plans to complete further drilling, metallurgical testwork and, as appropriate, a further updated MRE to advance the Project towards a PEA in 2024.
NevGold VP Exploration,
Qualified Person Statements
Mr.
Figure 5 - Map of
Technical Disclosure
The Company has filed on SEDAR+ an updated Limousine Butte Technical Report titled "Technical Report on the Limousine Butte Gold Property", with an effective date of
The amended AIF also reflects the Nutmeg Mountain Technical Report filed on SEDAR+ entitled "Technical Report on the Nutmeg Gold Property", with an effective date of
ON BEHALF OF THE BOARD
"Signed"
For further information, please contact
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Neither the
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Forward looking statements in this news release include statements with respect to estimates of mineral resources, the Company's future exploration plans with respect to the Project, the intention to complete an updated MRE and a PEA and the timeline for completion, and the upgrade of inferred mineral resources to indicated mineral resources. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements, which include the dangers inherent in exploration, development and mining activities; the uncertainty of mineral resource estimates; not achieving an updated MRE, a PEA and other exploration goals or estimates; actual exploration or development plans and costs differing materially from the Company's estimates; obtaining additional financing from time-to-time to continue operations; compliance with government regulation; stock market volatility that may adversely affect the price of the Company's securities; and the ability to obtain and maintain any necessary permits, consents or authorizations required for mining activities. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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