MiningNewsVideos

VIDEO: NuLegacy Gold Corp Close Proximity to Fruitful Deposits

MidasLetter Live
|

NuLegacy Gold Corp (CVE:NUG) (OTCMKTS:NULGF) (FRA:7NU) CEO James Anderson talks about how close they are to very productive Barrick Gold Corp (NYSE:ABX) (TSE:ABX) deposits.  Not only is the proximity of the NuLegacy projects to the Barrick deposits significant (~7km away), the mineralization and overall geology is also quite similar as well.

TRANSCRIPT:

James West:    Hey, welcome back to Midas Letter Live. My guest this segment is James Anderson; he’s the CEO of NuLegacy Gold Corp., trading on the TSX Venture under the symbol NUG. James, thanks for joining us today.

James Anderson: Oh, thanks very much, James. It’s a pleasure to be here.

James West:    James, let’s start with an update: what is new with NuLegacy? I see you’ve started drilling at Red Hill?

James Anderson: Yeah, that’s right, and that’s essentially what’s new. There was a lot of snow on the ground here over the last, oh, six to eight weeks; we had some substantial late snowfalls in Nevada, so that slowed us down. We were originally targeting a March 15th target date to start drilling, so that was pushed back about six weeks, but as I discussed with a lot of the crew in Reno, I think that was actually a benefit for us. It’s given us six additional weeks to go back and re-log a lot of the drill holes that we drilled last year and previous years, and I think we’ve got a really good handle on exactly where we want to drill in order to target some of the higher grades of this deposit.

James West:    Sure, okay. Tell me a bit about how you guys originally obtained this project, and what was attractive about it to you guys at the outset?

James Anderson: Originally, so what we’ve managed to acquire through a series of agreements principally with Barrick, is a 100 square kilometre tract of land where we control 100 percent working interest in it. The thing that attracted us to this area originally is simply the tenor of the deposits that are nearby. So within the Cortez trend, Barrick produces about a million ounces of gold per year from two really large operations called Pipeline and Cortez Hills. So you think about that for a second: I know all of the junior companies like to talk about the big deposits that were right next door, but the ones that we’re right next door produce 20 percent of the gold of the world’s largest gold producing company. So I think that’s quite a statement about, you know, just how important these deposits are.

In 2010, Barrick made another significant discovery right across the valley, so about 7 kilometres away from where we’re working; that’s called Gold Rush, and you can see on that slide, Gold Rush is currently quoted by Barrick at 10 million ounces, but at 10 grams – so it’s very big and very high grade. That is Barrick’s most important development project anywhere on the planet. It sits just across this broad valley from where we’re working, but it’s not just closeology; we’ve got the same rock type, same style of mineralization, same Devonian carbonate host rocks, and we’ve found a lot of gold here over the last few years.

James West:    Fantastic. So then, being that sort of proximal to a big deposit like that and finding the same sort of rock types and geology etcetera, it’s how far exactly from where you guys are? Like, it’s, when you say ‘across a broad valley’ it’s not like 500 miles across a broad valley?

James Anderson: That would be a very broad valley! It depends on how you measure it exactly; it depends on whether you’re measuring it from the claim boundary or the middle of their deposit or the tip of their deposit. From the tip of their deposit to the middle of what we call the Avocado deposit or gold area, it’s about 7 kilometres, or four and a half miles.

James West:    Interesting. So then, you’ve got 15,000 feet of drilling planned at this stage; what is your expectation in terms of the outcome? Are you proving up, are these infill holes, are these step-out holes, are they initial exploration holes?

James Anderson: Yeah, they’re not really initial exploration holes; we’ve been drilling this for about three and a half years now. I invite your readers to go to our website and look at some of the drill results that we’ve posted. On our presentation, you’ll see some of the highlight drill holes. So you know, we’ve found a lot of gold over the years in our south, central and north iceberg zones; last year we made a significant discovery called Serena, which was originally a 375-metre step-out from the northern part of our north zone. But I can tell you that the really high-grade portions of these deposits can be quite elusive.

Now, we’ve had assays as high as 10 or 15 or 25 grams, but over relatively narrow widths. So what we’re targeting this year is the intersection of a particular type of limestone unit that’s very productive in this area, called the Devonian Wenban 5. The intersection of that with some low-angle thrust vaults that we’re able to identify both in geophysics and in very painstaking geology as well.

So at the intersection of those, we expect to find bigger intervals of those very, very high grades, just like they do across the valley. I will say one other thing, too: that three of our directors are senior ex-Barrick people, but we also have people on the ground that are ex-Barrick as well, including a fellow who joined us just about six months ago named Charles Weakly. Charles worked with Barrick for over 20 years in Carlin and across the valley at Gold Rush, and he feels very confident that we have exactly the same set up in terms of stratigraphy and in terms of controls and mineralization. So he’s very confident that we’re going to be able to have some of these very exciting, high-grade results this year.

James West:    Great. Well, that’s a great update, James. We’re going to follow with interest. We’ll come back to you in a quarter’s time and see how the drilling is panning out. I’d like to thank you for your time today.

James Anderson: Thank you so much for the opportunity. We’ll talk real soon.

MORE GREAT MINING CONTENT BELOW:

MidasLetter Live

Midas Letter LIVE!

Midas Letter LIVE is the video channel from Midas Letter Financial Group's headquarters studio in the Exchange Tower in the heart of Canada's Financial District in downtown Toronto, Ontario, where we interview the CEO's from the top emerging companies on the Canadian publicly traded company landscape.
More Info...

[email protected]

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.