NuLegacy Gold (NUG.V) has taken advantage of some exciting drill results to top up its treasury, and the company closed a C$2.3M capital raise which was conducted at C$0.125 per unit. Each unit consisted of one common share and half a warrant, valid for two years. In the first year the warrant can be exercised at C$0.15 but this increases to C$0.25 in the second year (subject to accelerated expiry clauses).
As the private placement has now been completed, NuLegacy was able to lift the embargo on the next batch of drill results (which were held at the lab to make sure nobody could take advantage of this information). Nobody expected to see the 40 meters at 4 g/t gold to be repeated, and anything around the 0.9 g/t mark should be seen as positive as that’s the lower end of the expected grade in NuLegacy’s exploration target.
The results were a bit better than what we would have expected with hole 50 returning 15 meters of 1.68 g/t gold and a longer intercept of almost 72 meters containing 0.78 g/t gold starting at just 38 meters from the surface. Hole 50 is an interesting hole as 1) the hole has a relatively high average grade for an oxide deposit, and 2) it’s located roughly 100 meters to the west of the discovery hole 40 which yielded 41 meters of 3.91 g/t gold. It’s still early days, but the zone around the holes 40 and 50 will very likely be given some more attention now as the mineralization seems to be continuous over this 100 meter distance (which will have to be confirmed by one additional drill hole in between these two existing holes).
NuLegacy will become a new sponsor of the website, so you can expect a more in-depth report from us shortly.
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Disclosure: The author holds a long position in NuLegacy Gold. NuLegacy currently isn’t a sponsor of the website but will very likely become one. Please see our disclaimer for current positions.
