Nevada King Drilling Identifies Extension of Gold Mineralization Eastwards from Atlanta Gold Mine Resource
Nevada King Drilling Identifies Extension of
Gold Mineralization Eastwards from Atlanta
Gold Mine Resource
VANCOUVER, BC
,
Nov. 16, 2021
/CNW/ -
Nevada King Gold Corp.
(TSXV: NKG) (OTCQB:
VKMTF)
("
Nevada King
" or the "
Company
") is pleased to announce maiden drill results from the
first eight reverse circulation ("
RC
") holes of a 63-hole RC program recently completed at its Atlanta
Gold Mine Project (Figure 1). The project is located 264km northeast of
Las Vegas, Nevada
, in the
prolific Battle Mountain Trend.
Highlights
Highlight assays from these first eight RC holes include intercepts of:
22.9m
grading 2.17 g/t Au in hole AT21-41A from
38.1m
to
61.0m
35m
grading 1.17 g/t Au in hole AT21-
41B
from
38.1m
to
73.2m
30.5m
grading 1.39 g/t Au in hole AT21-050 from
48.8m
to
79.3m
These intercepts confirm historical mineralization reported in RC holes drilled in the 1980s that
were not included in the Gustavson 2020 pit-constrained resource model due to high detection
limits on the Au assays and inexact historical collar locations (see "NI-43-101 Technical Report
on Resources" prepared by Gustavson Associates filed in the Company's SEDAR filings).
The 2020 Gustavson work estimates a pit-constrained measured and indicated resource of
460,000 oz Au grading 1.3 g/t Au and an inferred resource of 142,000 oz Au grading 0.83 g/t
Au at
Atlanta
.
This drilling demonstrates an eastward extension of gold mineralization from this resource zone
along the southern margin of the existing open pit, with the gold mineralization remaining open
for further extension to the east.
Referring to Figure 2 below, the current Gustavson resource model does not extend eastward
of the historical hole intercepts seen in angle core holes AC-02 and AC-03, both drilled by
Goldfields in 1981. AC-02 and AC-03 returned
12.5m
@ 1.834g/t Au and
9.6m
@ 3.01 g/t Au,
respectively. Nevada King RC hole AT21-050, which returned
30.5m
@ 1.39g/t, was positioned
in between these two historical intercepts in order to tie the Gustavson resource in with the
other
Nevada King
holes sited progressively eastward.
Additional drill results are anticipated to be received shortly.
Cal Herron
, Exploration Manager of
Nevada King
stated, "These initial, positive drilling results
confirm the potential for expanding the current gold resource further to the east and south of the
Gustavson 2020 resource. Early historical drill results indicated this potential, but uncertainty
regarding assay quality and hole location prompted Gustavson to exclude the historical data from its
resource model. As shown in Section A-A', the gold mineralization is fairly uniform in grade and
thickness from hole to hole. Taken together, these initial eight holes compare favourably with
Gustavson's
Atlanta
resource model. We now see good potential for expanding the resource
eastward, as there is good continuity in gold grade in the initial drilling with-respect-to the overall
deposit. When assay results for the 10 holes drilled south of this drill section line are received, we
will then be able to determine the potential for further expanding the resource southward. The drill
results so far validate the geologic model we constructed earlier this year based on surface mapping
and sampling. We will soon see how far we can extend our model as additional drill results come in
over the next month."
Figure 1. Location of Nevada King’s 2021 RC drill holes relative to historical drill holes and the 2020
Gustavson gold resource zone and pit perimeter. Current historical open pit shown by black hatched
line. The 2021 drilling program was designed to extend the Gustavson resource to the east, south,
and north. (CNW Group/Nevada King Gold Corp.)
Figure 2. Cross section “A-A” showing gold distribution in the Nevada King RC holes drilled across
southern end of the historical Atlanta open pit. Eastern margin of 2020 Gustavson gold resource
model is defined by historical holes noted in orange. (CNW Group/Nevada King Gold Corp.)
Atlanta Gold Mine Drill Results
Geologic mapping and sampling conducted by
Nevada King
in the first half of 2021 identified several
mineralized high angle faults and dikes along the eastern margin of the
Atlanta
open pit that had not
been drill-tested by past operators and were well east and outside of the Gustavson 2020 resource
model. These northerly trending structures projected southward from the pit margin and indicated
good potential for extending gold mineralization south of the pit. The initial eight RC holes reported
today were drilled across the southern extension of these mineralized structures along an E-W
fence and were designed to:
Check for a southern extension on the mapped and sampled mineralization.
Verify historical drill results dating back to the early 1980s that were excluded from the
Gustavson resource model.
Better define the geometry of gold mineralization still left around the margins of the
Atlanta
pit.
Determine whether this mineralization ties into the Gustavson resource zone and is of sufficient
grade and thickness to potentially be added to the existing resource. This point is very important
in that all the ground east of the Gustavson resource zone (see Figure 1) is currently classified
as waste (strip). Any mineralization we can add within this strip zone will both boost tonnage
and decrease the strip ratio.
As illustrated in Figure 2, these initial holes positively addressed all four of the objectives listed
above.
Assay results from
Nevada King's
phase 1 drilling program are reported below. Intercept lengths for
the vertical holes are close to true thickness given the low dip angle of mineralized zones being
tested. Intercept lengths are reported as contiguous lengths that include all assay intervals within the
reported intercept utilizing a 0.30 g/t external cut-off grade. The three angle holes range from -45 in
AT21-042A to -57 in AT21-
041B
.
Table 1.
Drill
Hole ID
From (m)
To (m)
Aggregate
Length (m)
Average
Grade g/t
AT21-41A
38.1
61.0
22.9
2.17
AT21-41B*
38.1
73.2
35.0
1.17
AT21-043A*
19.8
33.5
13.7
1.90
AT21-050
48.8
79.3
30.5
1.39
AT21-043
10.7
29.0
18.3
0.95
AT21-042
9.1
36.6
27.4
0.79
AT21-042A*
18.3
50.3
32.0
0.80
AT21-044
4.6
24.4
19.8
0.48
*Denotes angle holes
Gold mineralization is hosted within a gently west-dipping, strongly silicified collapse breccia horizon
that developed directly underneath a clay-altered granitic sill along the contact with strongly
brecciated and silicified dolomitic rocks. The strongest silicificiation and highest grade mineralization
tend to occur within intensely silicified collapse breccia developed along the contact between the
Silurian-age Laketown Dolomite and the underlying Ordovician-age Ely Springs Dolomite, particularly
when this breccia zone is in direct contact with the granitic sill. Flow-banded rhyolitic dikes
associated with explosive tuff dikes composed of vesiculated rhyolite porphyry and strongly silicified
dolomitic breccia clasts typically occur around the margins of the granitic (quartz monzonitic) sill and
are frequently mineralized. East of the sill contact, mineralization is largely confined to the Laketown-
Ely Springs silicified contact, although variably decalcified dolomite and seemingly unaltered dolomite
host low grade gold values in places. There is certainly good evidence for strata controlled
replacement-type silicification and mineralization that is very similar to that seen in many of the
Carlin
-type deposits in northern Nevada.
As shown in Figure 2, the mineralized horizon is down-dropped to the west along a series of
northerly-trending normal faults that generally coincide with what has been historically identified as
the Atlanta Mine Fault. This "step-down" block faulting pattern has in the past been interpreted as a
45 degree west-dipping shear zone termed the Atlanta Mine Fault, and past explorers based their
drill strategies on this assumption. However, this historical structural model for mineralization at
Atlanta
did not take the structures exposed east of the Atlanta Fault into account, nor did it actually
conform to the historical drill data. Historical holes drilled well north of the
Atlanta
pit consistently
show a gently west dipping mineralized contact defined by the quartz monzonite sill overlying the
silicified collapse breccia zone, as is seen in Figure 2 between holes AT21-042 and AT21-044. This
difference in geologic interpretations – step-down block fault model vs. 45 degree west dipping fault
model – is important when evaluating the historical drilling done north and south of the Gustavson
resource zone along trend of the Atlanta Fault zone. It is also important for evaluating the strong
surface mineralization that occurs along the high ridge east of the
Atlanta
pit. The geometry of rock
and soil anomalies along this ridge conform to a gently west-dipping plane and may represent the
up-thrown eastern extension of the mineralized horizon seen in Figure 2. If this is indeed the case, it
would provide a shallow target east of the current resource zone that has not been historically
tested. Surface samples collected by
Nevada King
along this ridge zone run up to 2g/t Au in outcrop.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by
Calvin R. Herron
, P.Geo., who is a Qualified Person as defined by National Instrument 43-101 ("
NI
43-101
").
About Nevada King Gold Corp.
Nevada King
is the third largest mineral claim holder in the
State of Nevada
, behind
Nevada Gold
Mines
(Barrick/Newmont) and
Kinross Gold
. Starting in 2016 the Company staked large project
areas hosting significant historical exploration work along the
Battle Mountain
trend located close to
current or former producing gold mines. These project areas were initially targeted based on their
potential for hosting multi-million ounce gold deposits and were subsequently staked following a
detailed geological evaluation. District-scale projects in
Nevada King's
portfolio include (1) the 100%
owned Atlanta Mine, located 100km southeast of
Ely
, (2) the Lewis and Horse Mountain-Mill Creek
projects, both located between
Nevada Gold Mines'
large
Phoenix
and Pipeline mines, and (3) the
Iron Point project, located 35km east of
Winnemucca, Nevada
.
The Atlanta Mine is a historical gold-silver producer with an NI 43-101 compliant pit-constrained
resource of 460,000 oz Au in the measured and indicated category (
11.0M
tonnes at 1.3 g/t) plus an
inferred resource of 142,000 oz Au (
5.3M
tonnes at 0.83 g/t). See the NI 43-101 Technical Report
on Resources titled "Atlanta Property,
Lincoln County, NV
" with an effective date of
October 6,
2020
, and a report date of
December 22, 2020
, as prepared by Gustavson Associates and filed
under the Company's profile on SEDAR (
www.sedar.com
).
Cautionary Statements Regarding Forward Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release contains certain "forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of applicable securities legislation.
All statements, other than statements of historical fact, included herein, without limitation,
statements relating the future operations and activities of
Nevada King
, are forward-looking
statements. Forward-looking statements are frequently, but not always, identified by words such as
"expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar
expressions, or statements that events, conditions, or results "will", "may", "could", or" should"
occur or be achieved. Forward-looking statements in this news release relate to, among other
things, the Company's exploration plans and the Company's ability to potentially expand mineral
resources and the impact thereon. There can be no assurance that such statements will prove to
be accurate, and actual results and future events could differ materially from those anticipated in
such statements. Forward-looking statements reflect the beliefs, opinions and projections on the
date the statements are made and are based upon a number of assumptions and estimates that,
while considered reasonable by
Nevada King
, are inherently subject to significant business,
economic, competitive, political and social uncertainties and contingencies. Many factors, both
known and unknown, could cause actual results, performance or achievements to be materially
different from the results, performance or achievements that are or may be expressed or implied
by such forward-looking statements and the parties have made assumptions and estimates based
on or related to many of these factors. Such factors include, without limitation, the ability to
complete proposed exploration work given the global COVID-19 pandemic, the results of
exploration, continued availability of capital, and changes in general economic, market and
business conditions. Readers should not place undue reliance on the forward-looking statements
and information contained in this news release concerning these items.
Nevada King
does not
assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or
other factors, should they change, except as required by applicable securities laws.
SOURCE
Nevada King Gold Corp.
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For further information:
Collin Kettell at [email protected] or (301) 744-8744.
CO: Nevada King Gold Corp.
CNW 07:30e 16-NOV-21