NSGold Corp (NSX – $0.27) released analytic results on the final six drill holes from its 2011 drill campaign at its 100% owned Mooseland gold property in Nova Scotia, Canada. All six holes were drilled on the West Zone and intersected substantial quartz veining. 56 samples assayed more than 1 gram of gold per tonne of which 6 assayed over 10 grams per tonne (see table at bottom).
Four out of the six holes were drilled outside the known main area of the deposit, so this is another confirmation that the current resource will be expanded. An updated resource estimate for Mooseland is expected to be released in the second quarter of this year.
2011 Drill Campaign
In June of 2011, NSGold received an NI 43-101 resource estimate for Mooseland of 390,000 ounces of gold in the inferred category. No indicated or measured mineral resources were identified, primarily because the drilling intercept spacing was not sufficient to establish grade continuity to the levels required by those categories.
|Total||2,500,000||4.9||390,000||Summary of the resource estimate for Mooseland with a cut-off grade of 3 grams per tonne.|
This resource estimate, prepared by MineTech International, was based on drill core assay results from 26 holes, totaling 6,507 metres completed by NSGold in 2010; 135 diamond drill holes, totaling 32,696 metres, completed by Hecla Mining in 1986-1988; and 6 diamond drill holes, totaling 1,168 metres, completed by Azure Resources Ltd. in 2003.
Additionally, the report also showed that the West Zone was open at depth and towards the west and that the East Zone was also open at depth and towards the east. This gave room for resource expansion.
As a result, a second drill campaign, totaling 5,020 metres, was initiated. Between August 2011 and November 2011 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. Most of the new holes tested promising areas of Mooseland that had only been sparsely drilled or explored in the past. To help the geologists find additional drill targets, a LiDAR survey was conducted on the property in September of 2011.
* 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.
Fifteen holes intersected mineralized veins and produced a total of 135 samples that assayed more than 1 gram per tonne of gold of which 17 assayed over 10 grams per tonne.
New Resource Estimate
MineTech has again been retained to produce an updated resource estimate for Mooseland, which will of course include all the results from the 2011 drillings.
Upcoming Corporate Deal?
Earlier this week, Hans Van Hoof, the President and CEO of NSGold, sent a Letter to Shareholders, in which there was one sentence that particularly caught our attention: “NSGold Corp. will be the vehicle for our next potentially transformational deal, one that I hope will also alleviate the shares’ illiquidity.”
So that makes us wonder if there’s already a new corporate deal on the horizon?
It’s clear that now the NSX Silver spin-out is completed, management will again concentrate on growing the Company.
The increased resource estimate for Mooseland, along with a possible corporate deal should have a positive effect on the stock price.
Drill intercepts from holes NSG-36-11 through NSG-41-11 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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