NSGold Corporation (NSX – $0.31) surprised us with an early Christmas present. The Company announced additional results from its recently completed Phase 1 drilling campaign at its Mooseland Gold Project.
Two events in the press release stood out. First, in drill hole number 5 a 3.7 meter intersection was found, grading 26.97 grams of gold per tonne (see table below). This is high grade gold and 3.7 meters is a good minable width. Obviously, the Company will need to do some additional drilling in order to find out if the intersection is consistent. But, and this is important, it gives them a target zone.
Secondly, the results so far show that throughout the Mooseland deposit there are many zones with quartz structures that run several meters wide and that are known to be gold bearing. What we’re seeing is that these quartz structures have gold values roughly between 0.1 and 1.0 grams, while being accompanied by areas with much higher gold values. This is due to the so-called “nugget effect”.
A mineralization is often referred to as being nuggety, or possessing a high nugget effect, when gold is both found in fine grains and in large nuggets. As a result, the drill results from a particular zone can be extremely divers ranging, for example, from 0.6 grams per tonne to 120 grams per tonne, dependent on where exactly the nuggets are located. This often complex and localized occurrence of gold is a common feature of many vein-style gold deposits and makes the property perfectly minable.
NSGold received results for 6 drill holes from a total of 26. So far, all results are from the West Zone of Mooseland. Remember that a previous reserve estimate for Hecla Mining (not compliant with 43-101 criteria instituted after 1998) found even higher gold grades for the property’s East Zone.
We’re happy with the results we’re seeing at the moment. The minable nuggety quartz structures are what we hoped to find and the 3.7 meter wide grade gold intersection is a nice bonus. These West Zone results are promising, and we believe even better results are yet to come from the East Zone.
|247.10||247.60||0.50||1.89||Drill holes NSG 1-10 to NSG 13-10 are from the West Zone, while NSG 14-10 to NSG 26-10 are from the East Zone.|
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