NSGold Corporation (NSX – $0.27) announced that it completed the Phase 1 drilling program at its Mooseland gold property. In total, 26 holes, comprising about 6,500 metres, were drilled on the West and East zone of Mooseland.
Samples from the drill core are continuously being shipped to Laboratoire Expert for analysis. However, NSGold’s results are coming in slower than anticipated. Because of the high gold and silver prices there’s lots of mining and drilling activity. And as a result, the lab is very busy with analyzing samples from many different Companies.
Nevertheless, NSGold is ambitious and wants all the core samples from Mooseland shipped to Laboratoire Expert by mid-January 2011. Additionally, the Company aims to have a 43-101 compliant resource estimation by the end of the first quarter of 2011. This is a first major milestone for the Company. If the resource estimate is anywhere close to the non-43-101 compliant estimates, it’s bye-bye to 27 cents shares.
Leipsigate Gold Property
Now that work is completed at Mooseland, the drilling equipment is shipped to another NSGold property, Leipsigate. This is a gigantic property of 2,168 hectares, covering most of the Leipsigate District in Lunenberg County, Nova Scotia.
Like Mooseland, the Leipsigate mine has a long and vivid history. It was in operation from 1884 until 1946 with a total production of 9,650 troy ounces of gold from an estimated production of 30,000 tons of ore. The property has at least seven historic shafts, of which the deepest reached a depth of approximately 100 metres.
Despite lots of mining activities, there has been very little drilling to determine the full potential of Leipsigate. In a November 1983 report, the potential mineral reserve was estimated at 612,000 tonnes grading 13.7 to 17.1 grams (0.44 to 0.55 troy ounces) of gold per tonne.
Note that the above gold resource estimate is historic in nature and was compiled before National Instrument 43-101 Standards of Disclosure for Mineral Projects came into effect. The resource estimate has not been verified by an independent “Qualified Person” and are presented for information purposes only.
NSGold will drill two holes to test the potential of two gold bearing structures known to cut across the property.
On The Lookout For More Attractive Properties
In another release, earlier this week, NSGold announced that it entered into an option agreement whereby it can acquire a 100% interest in two gold properties in Nova Scotia called Moosehead and Ecum Secum.
Both properties were producing mines at one point in their history and caught the attention of the NSGold’s geologist in terms of the amount of historically recovered gold and the right kind of geology.
NSGold can acquire both properties for a total amount of $120,000. The option agreement between NSGold and the current owner allows NSGold to lock-up the claims and do sufficient work on the properties like drilling and sampling. If the Company finds out that there’s enough gold in the ground, it will pay $120,000 to become the owner of the properties. If there isn’t, NSGold can walk away at any time.
NSGold will publish drill core analysis as they become available from Laboratoire Expert. These should give us an indication of the quality and quantity of the Mooseland gold grades.
By the way, we will publish our initial Company Report on NSGold on Monday. Make sure to read the 10-page report for a complete overview of this promising junior mining Company.
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