It took the lab a while but they have now finally released the initial assay results of the Limousine Butte drill program to NevGold (NAU.V) which published the results from the first four holes of the 2021 drill program on the Resurrection Ridge area of the project.
As you can see below, all four holes encountered oxide gold mineralization and although the headline result of almost 62 meters containing 2.19 g/t gold (including 11.6 meters containing 8.51 g/t gold indicating the remaining 50 meters still had an average grade of 0.72 g/t gold which definitely exceeds traditional cutoff grades in Nevada), it’s interesting to see all four holes yielded good to excellent results.
All mineralized intervals exceed the cutoff grades typically used in Nevada and with tthich layers of mineralization like 44 meters of 1.3 g/t or even 79 meters containing 0.65 g/t gold, NevGold kicks off the Limousine Butte exploration season with a strong start as all four holes contain relatively thick intervals with good gold grades.
This is an excellent start and as NevGold has added a second drill rig to the program we should now see a rather continuous news flow of additional assay results. NevGold promised to release an updated resource estimate after the drill program has been completed and we expect to see a substantial improvement from the historical resource of 241,000 ounces of gold in the measured and indicated resource category and the 51,000 ounces in the inferred category. Not only will the company be able to reduce the cutoff grade compared to the 0.41 g/t gold used in the historical resources, the core holes will increase the confidence in the geological structures while NevGold can easily expand towards the west and the east from the four reported holes as the pilot shale will be drill-tested for additional mineralization.
The results from the first four holes confirm this is an excellent start of the exploration program at Limousine Butte, and we are already looking forward to the next batch of results.
Disclosure: The author has a long position in NevGold. NevGold is a sponsor of the website. Please read our disclaimer.
