NevGold (NAU.V) has provided an exploration update on its Nutmeg Mountain project in Idaho. The company released the assay results from home NMD0004 which encountered gold mineralization right at surface, intersecting 66.8 meters containing 0.74 g/t gold, including a higher grade interval of 11.3 meters containing 1.4 g/t gold starting less than 10 meters down-hole.
That high-grade section isn’t new information as this was already disclosed by the company in June, but in that previous release, NevGold only received and published the assay results of the hole to a depth of 51.5 meters and this update reflects the assay results from the second portion of the hole. The initial interval of 51.5 meters at 0.80 g/t has now been extended to 66.8 meters at 0.74 g/t gold which means the second portion of the hole contained 15.3 meters at an average grade of 0.54 g/t gold and that obviously still is higher than the cutoff grade of 0.3 g/t gold NevGold used in its most recent resource estimate.
In its press release, NevGold mentions the new gold mineralization could also be amenable to heap leach processing. A sample of hole NMD0004 was delivered to McClelland Laboratories to complete additional metallurgical test work.
Disclosure: The author has a long position in NevGold. NevGold is a sponsor of the website. Please read the disclaimer.
