NSGold Corp. (NSX – $0.43) announced analytic results of seven more drill holes from the 2011 drill program on its 100% owned Mooseland gold property in Nova Scotia, Canada. All seven holes intersected substantial quartz veining. In fact, 46 samples assayed more than 1 gram per tonne of gold (see table at bottom).
This is really good news because these holes were drilled outside the known ore zones. As a result, Mooseland’s current resource of 390,000 ounces of gold, will undoubtedly be expanded.
The 2011 Drilling Program
The 2011 drilling program at Mooseland is now complete with 16 diamond drill holes, totalling 5,020 metres, drilled. Eight holes were drilled on both the East Zone (holes NSG-25-11* and NSG-27-11 through NSG-33-11) and West Zone (holes NSG-34-11 through NSG-41-11) of the property.
* Note that NSG-25-11 was a deepening of NSG-25-10 and that hole 26 isn’t included in the 2011 program, because it was already drilled in the 2010 campaign.
Together with results for the first three drill holes, announced mid-October, we’ve now seen grades of ten holes from the 2011 drill campaign, which are in-line with previous results. Numerous mineralized quartz structures show gold values of less than 1 gram per tonne, while others contain gold values of +10 grams per tonne. This is due to the nugget effect.
Results for six more holes are expected back from the lab shortly.
Special Shareholders Meeting for Spin-Out
In other news, NSGold announced that it will hold a special meeting of shareholders on December 22, 2011 to approve a change in the way shares of NSX Silver Inc. are distributed. Remember that NSGold will spin-out its Mexican Dios Padre property into a new publicly traded Company called NSX Silver, in order to better reflect the silver asset’s true value.
Shareholders are asked to approve the distribution of the new shares through a return of paid-up NSGold capital. This way, the distribution will be treated as non-taxable for most of NSGold’s shareholders where in most other cases, withholding tax would have to be paid.
The rest of the spin-out procedure is progressing as planned. The Company received a few questions from the regulators and has provided them with the necessary answers.
After the December 22nd meeting, NSGold’s Board of Directors will execute the spin-out as fast as possible.
I’ve written it many times before, when you invest in a company it’s important it has a management team that cares about its shareholders. The change of NSX Silver’s distribution procedure is a perfect example of this. Many companies simply wouldn’t have cared and let shareholders pay 25%, or whatever, withholding tax.
Obviously, besides a good management team, a company’s business is equally important. With a spin-out in front of us that will better reflect all the Company’s assets, with an increasing resource at Mooseland and with plenty of other work being conducted on other properties, NSGold is doing more than OK in that area as well.
Drill intercepts from holes NSG-29-11 through NSG-35-11 of greater than 1 gram per tonne from NSGold’s 2011 drill campaign at its 100% owned Mooseland gold property in Nova Scotia, Canada.
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