NevGold (NAU.V) has released the assay results from holes 2 and drilled at Cadillac Valley, part of the Limousine Butte gold project in Nevada. Hole 2 encountered in excess of 126 meters containing 0.83 g/t gold while hole 3 drilled 60.4 meters containing 0.23 g/t gold.
NevGold also released the results from the second portion of hole 1 at Cadillac Valley. The upper portion of that hole was excellent as the drill bit intersected 58.2 meters of 2.13 g/t including 5.9 meters containing 12.32 g/t gold, all in oxides. The results of the entire hole have now been released and the entire mineralized interval was extended to 175.2 meters (starting at a depth of 212 meters) containing 0.86 g/t gold. If we would isolate the 58.2 meters of 2.13 g/t gold, the residual grade would be just 0.23 g/t gold. That would meet the cutoff grade for Nevada-based heap leach gold operations, but it’s clear the upper part of that hole will be the money maker.
While the mineralization appears to be relatively deep in hole one, we need to put things into perspective and the image below shows hole 1 was actually drilled at what appears to be the ‘deeper’ portion of the mineralization.
No mining engineer would consider to start mining in the area where hole 1 was drilled and as you clearly notice, the mineralization encountered in holes 2 and 3 are closer to surface. Of importance will be the two holes planned on the left hand side of the image as well as the three holes in between hole 2 and 3 as those holes are targeting mineralization closer to surface.
The first few holes of NevGold’s Limousine Butte drill program are confirming the exploration theory and the mineralized footprint on the Cadillac Valley zone of the project has now been confirmed for a strike length of about a kilometer and a width of roughly 400 meters. The thickness of the mineralization and the grade still varies but as NevGold has drilled just a few holes, we are still in the early stages of fully understanding the mineralized system here and building tonnage at an average grade above cutoff levels is what matters.
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