Nevada KING Intercepts 3.35 G/T of Oxide GOLD over 64.1 Metres and 3.94 G/T of Oxide GOLD over 41.2 Metres Starting at Surface Within the Atlanta Pit, Battle Mountain Trend, Nevada
NEVADA KING INTERCEPTS 3.35 G/T OF
OXIDE GOLD OVER 64.1 METRES AND 3.94
G/T OF OXIDE GOLD OVER 41.2 METRES
STARTING AT SURFACE WITHIN THE
ATLANTA PIT, BATTLE MOUNTAIN TREND,
NEVADA
VANCOUVER, BC
,
Jan. 20, 2022
/CNW/ -
Nevada King Gold Corp.
(TSXV: NKG) (OTCQX:
NKGFF) ("
Nevada King
" or the "
Company
") is pleased to announce results from three new vertical
RC holes drilled within the historical
Atlanta
pit (Figure 1) collared between holes AT21-066 (
released
December 1, 2021
) and AT21-062 (
released
January 12, 2022
). The Atlanta Mine Project
is 100% owned by
Nevada King
and is located 264km northeast of
Las Vegas, Nevada
, in the
prolific Battle Mountain Trend.
Highlights
Highlight intervals are summarized below with additional results provided in Table 2.
Hole No.
From (m)
To (m)
Interval (m)
Au (g/t)
AT21-063
+
7.6
48.8
41.2
3.94
includes
38.1
47.3
9.1
9.23
AT21-064
3.0
67.1
64.1
3.35
includes
50.3
62.5
12.2
6.88
AT21-065
3.0
51.8
48.8
2.32
Table 1: Highlight results from Atlanta Gold Mine
The true thickness of the reported intervals are estimated to be in the range of 70% to 85% of reported intervals.
+
Denotes hole terminated in mineralization due to lost circulation.
Vertical RC drill hole AT21-063, drilled from within the
Atlanta
pit, encountered
41.2m
averaging 3.94 g/t Au
starting at
7.6m
depth. The mineralized rock is oxidized and includes a
high-grade intercept of
9.1m
averaging 9.23 g/t Au
starting at 38.1m.
The adjacent vertical RC hole AT21-064 (17 metres to the N of AT21-063) encountered
64m
averaging 3.35 g/t Au
starting at
3m
depth. The mineralized rock is also oxidized and includes
a high-grade intercept of
12.2m
averaging 6.88 g/t Au
starting at 50.3m.
A third adjacent vertical RC hole AT21-065 (17 metres to the N of AT21-064) encountered
48.8m
averaging 2.23 g/t Au
starting at
3m
depth, and is also oxidized.
These three holes are part of a fence of five holes (Figure 2) drilled along a 70 metre long
north-south line that despite its location at the bottom of the pit had never been drill tested.
Holes AT21-066 and ATR-21-062 also drilled on this fence line graded
54.9m
averaging 2.62
g/t Au
and
54.9m
averaging 5.34 g/t Au
, respectively (see
December 1, 2021
, and
January
12, 2022
, news releases).
The envelope targeted by this five hole fence line was previously categorized as waste in the
Company's current National Instrument 43-101 ("
NI 43-101
")
Atlanta
property resource
estimate, prepared by Gustavson in 2020.
This newly identified at surface high-grade gold mineralization ties together with known high-
grade historical gold intercepts at depth, better confirming the accuracy of high-grade historical
intercepts. The Atlanta Mine Fault Zone is now drill defined over a strike length of approximately
1km, extending
550m
to the north-northwest of the historical pit where
Nevada King
drilled
AT21-003 (
released
November 22, 2021
)
assaying
9.1m
averaging 8.26 g/t Au
(Figure 1).
This high-grade mineralization is currently open to the north and south where sizeable additional
gaps exist in the historical drilling pattern (Figure 1). The
150m
gap between AT21-062 and
AT21-
041B
spatially coincides with the zone of shallow subsidence seen at the SW end of the
historical pit and is a high priority target for the next phase of drilling.
Similar potential for discovering additional gold resources and with a likely collateral reduction in
the strip ratio is seen south of the historical pit (Figure 2), where the combination of
Nevada
King
and historical holes now identifies mineralization that is well outside of the Gustavson
resource model, but within the conceptual pit. Furthermore, this mineralization tracks south of
the Gustavson conceptual pit, where mineralization remains open.
Cal Herron
, Exploration Manager of
Nevada King
, stated: "In summary, the Phase I drill program at
Atlanta
was a smashing success, exceeding our goals and expectations. Given the strong gold
mineralization in AT21-062 through AT21-066, the glaring gap south of these holes, as well as the
high-grade hit in AT21-003 located
550m
to the north-northwest,
Nevada King
is well on its way
towards building a shallow, robust, oxidized resource along the 1km trace of the Atlanta Mine Fault
Zone. It is important to remember that while today's high-grade shallow mineralization occurs within
the confines of the Gustavson 2020 conceptual pit, it was not included in the Gustavson 2020 NI 43-
101 resource model. Our team is working towards finalizing an upcoming 2022 drill program at
Atlanta
, which will involve a high density drilling component following up on this high-grade corridor."
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. Drill section I-I’ crosses the length of the historical open pit along trend of the Atlanta Mine Fault
Zone and ties the higher grade mineralization seen in the bottom of the pit to the lower grade
mineralization extending south of the pit. (CNW Group/Nevada King Gold Corp.)
Figure 2. Longitudinal section I-I’ looking east in the plane of the Atlanta Mine Fault Zone showing
gold distribution in the Nevada King RC holes drilled in the bottom of the historical Atlanta open pit.
Blue dashed line denotes upward limit of 2020 Gustavson gold resource model while the black
dashed line represents the limit of the Gustavson conceptual pit. (CNW Group/Nevada King Gold
Corp.)
Drillhole Details
Drill
Hole ID
From (m)
To (m)
Averaged
Length (m)
Average
Grade g/t Au
AT21-062
*
9.1
64.0
54.9
5.34
includes
30.5
41.2
10.7
11.19
AT21-063
+
7.6
48.8
41.2+
3.94
includes
38.1
47.3
9.1
9.23
AT21-064
3.0
67.1
64.1
3.35
includes
50.3
62.5
12.2
6.88
AT21-065
3.0
51.8
48.8
2.32
AT21-066
*
3.0
57.9
54.9
2.62
includes
51.8
54.9
3
13.35
AT21-041A
*
38.1
61.0
22.9
2.17
AT21-041B
*
38.1
73.2
35
1.17
AT21-072
*+
35.1
42.7
7.6+
0.77
AT21-047
*
67.1
74.7
7.6
0.73
AT21-048
*
29.0
64.0
12.2
0.40
AT21-051
*
32.0
51.8
6.1
0.37
AT21-052
13.7
15.2
1.5
0.98
Table 2:
Gold intercepts for
Nevada King's
RC holes drilled along Longitudinal Section I-I'.
All except AT21-
041B
are vertical.
The true thickness of the reported intervals are estimated to be in the range of 70% to 85% of reported intervals.
+
Denotes hole terminated in mineralization due to lost circulation.
*
Denotes Nevada King hole previously released.
Drill
Hole ID
From (m)
To (m)
Averaged
Length (m)
Average
Grade g/t Au
88-08
152.4
161.6
9.1
0.59
88-10
70.1
118.9
48.8
0.37
88-01
27.4
57.9
30.5
1.95
88-05
12.2
53.4
35.1
0.98
KR98-12
6.1
33.5
27.4
0.79
and
57.9
82.3
24.4
0.66
A86-05
16.8
59.5
42.7
1.27
A86-06
^
0
24.4
24.4+
4.83
includes
9.1
12.2
3.1
9.29
Table 3:
Historical RC drill holes along Longitudinal Section I-I' using a 0.300 g/t Au external
cut-off grade. True thickness of mineralized intercepts is currently unknown and must be
determined with additional drilling. All except KR98-12 are vertical, and except for KR98-12
collar locations are uncertain, particularly for A86-05 and A86-06.
^
Denotes hole that bottomed in mineralization.
Overview
Vertical RC holes AT21-062 through AT21-066 were drilled along a south to north line
70m
long
with holes spaced about
17m
apart (Figure 1). As seen in Table 2, the gold grades gradually
decrease from AT21-062 to AT21-065, then start to increase at AT21-066. The overall mineralized
intercept lengths are similar, ranging from
41m
to
64m
. All except AT21-063 fully penetrated the
silicified zone and bottomed in unmineralized dolomite. All except AT21-065 possessed higher
grade sample intervals greater than 5g/t Au. With these five closely spaced holes,
Nevada King
established a gold gradient along a
70m
stretch of the Atlanta Mine Fault Zone, with the grade
vector clearly pointing southward from AT21-062 toward the southwestern corner of the
Atlanta
pit.
In order to chase the mineralization southward, the Company will be constructing new roads within
the next two months to accommodate additional core and RC drilling when the weather moderates
in March.
The 2021 drilling program conclusively demonstrated the existence of low and moderate grade
gold mineralization north, south, and east of the Gustavson 2020 resource model such that good
potential exists for significantly reducing the strip ratio upon mining. Additional drilling in 2022 will
be needed in order to realize this potential, but exploration moving forward will focus more on
expanding the shallow, higher grade potential seen along the Atlanta Mine Fault Zone. As of this
release, all RC holes drilled in 2021 by
Nevada King
at
Atlanta
within and along strike of the
Gustavson 2020 resource model have been disclosed. Results for three core holes drilled in
November 2021
are still pending.
Drill Results Along Section I-I' and in the Vicinity
Assay results from
Nevada King's
RC drilling along Section I-I' and within the vicinity are reported
above in Table 2, while historical hole intercepts are contained in Table 3. Averaged intercepts
utilize a 0.30 g/t external cut-off grade. The reported intercepts are down-hole lengths and may not
represent true thickness of mineralization. However, the silicified replacement zone hosting most
of the gold mineralization at
Atlanta
generally dips from 10
o
to 30
o
west, so vertical holes and
steeply eastward inclined angle holes come close to true thickness. High-grade hits (>5 g/t Au)
such as those reported along Section I-I' may be controlled by high angle faults or veins like ones
sampled along the
Atlanta
pit benches, so additional close-spaced drilling is needed in order to
determine strike and dip of these high grade intervals.
The drill section in Figure 2 shows a series of fault blocks progressively downdropped to the north,
but in reality the faults cut across the section at a low angle and possess northerly strikes, so the
series of fault blocks are actually downdropped to the west as shown in previous releases utilizing
E-W oriented section lines. Gold mineralization is hosted in strongly silicified collapse breccia
within the Laketown Dolomite underneath the base of a quartz monzonite porphyry sill and
associated tuffaceous facies. A late stage WNW-striking, moderately north dipping fault
downdropped the dolomite section next to the Eureka Quartzite unit.
The high-grade mineralization hit in AT21-062 projects southward along the Atlanta Mine Fault
zone into an area of low historical drill density measuring about
100m
long by
50m
wide that
possesses only one qualified historical hole. Located
43m
south of AT21-062, historical angle core
hole DHRI-11-01C drilled by Meadow Bay in 2011 hit
21.3m
grading 2.01g/t Au starting at
74.7m
depth, which indicates mineralization along the Atlanta Mine Fault Zone continues southward
toward
Nevada King's
vertical RC hole AT21-041A (Figure 2). Bobcat drilled two, well mineralized
vertical RC holes A86-05 and A86-06 somewhere in the vicinity of AT21-064 and AT21-062 (Figure
2) in 1986, but inaccurate collar locations kept both holes out of Gustavson's 2020 resource model
and off of Section I-I'. A86-06 reported 24.4m+ grading 4.83g/t (Table 2) starting at surface, so it
probably collared south of AT21-062 at the bottom of the pit as opposed to
60m
further westward
where historical maps plot the hole.
The gap in historical drill hole coverage south of AT21-062 is largely attributed to lack of access
caused by pit wall collapse soon after cessation of mining in 1985. Furthermore, shallow
subsidence most likely due to collapse of historically-mined underground stopes along the Atlanta
Mine Fault zone further exacerbated pit wall instability. Lack of access coupled with the prospect
of encountering shallow stopes limited historical exploration drill tests to deep intersections
beneath this
150m
long portion of the vein zone, so no reliable shallow historical drill data exists
within this part of the property. Moving forward into 2022,
Nevada King
will be stabilizing portions
of the collapsed pit wall in order to track the shallow high grade mineralization hit in AT21-062
further southward.
Historical holes drilled along the southern portion of Section I-I' reported significant gold intercepts
but were not included in the Gustavson resource model due to low hole density, inaccurate collar
locations, and suspect assays.
Nevada King's
vertical RC hole AT21-041A was positioned near a
historical open drill hole thought to be Bobcat's vertical RC hole 88-01. The
22.9m
grading 2.17g/t
in AT21-041A is fairly close to the
30.5m
grading 1.95g/t reported in 88-01, so the 88-series
Bobcat holes appear to be reasonably accurate with respect to both location and assaying. We can
therefore use the 88-01 series holes as guides for following mineralization north and south of the
historical pit, particularly to the north where vertical hole 88-10 encountered
48.8m
averaging
0.37g/t. The reported intercept is low grade, but examination of the chip trays revealed both 88-10
and adjacent hole 88-08 were drilled with a tricone bit, meaning there was severe loss of the fine
fraction within the silicified zone. We can use the 88-series holes for establishing location of gold
mineralization, but they must be twinned with a center-return hammer or core in order to establish
reliable grade.
Nevada King's
examination of its own RC samples revealed up to a 50% drop in Au
grade with loss of loose-bound oxides, clay, and strongly decalcified dolomite comprising the fine
fractions.
Looking at the overall distribution of gold along Section I-I', a tapering-off in gold grade appears at
the northern and southern ends of the section. This is in part due to the Atlanta Mine Fault Zone
jogging eastward out-of-section at the northern end and westward out-of-section at the southern
end. At a more macroscopic level, we are probably seeing pinching and swelling of the
hydrothermal system itself along strike of the Atlanta Mine Fault Zone, which is common in fault-
dominated epithermal systems. In 2022,
Nevada King
will be following the main structural trend
looking for additional swell segments along the Atlanta Mine Fault Zone. The Company already
has idenitified what appears to be a second swell zone north of the historical pit along Section B-B'
(
released
November 22, 2021
) that requires detailed drilling, while the potential south of Section I-I'
remains entirely untested and unknown.
The Company is currently waiting on assay results from three core holes, while the 2021 RC
drilling results are now fully diclosed. Overall,
Nevada King
found more gold and higher grades
than were expected given the historical data.
Nevada King's
denser drill hole patterns within
shallow portions of the
Atlanta
epithermal system reveal a near-horizontal silicified replacement
horizon hosting the bulk of gold mineralization that was progressively down-dropped westward
along a series of high-angle, northerly trending faults collectively referred to as the Atlanta Mine
Fault Zone. These high-angle faults served as the "feeder" structures for channeling gold-bearing
fluids into the low-angle, silicified collapse breccia zone that occurs along the basal contact of a
gently west-dipping quartz monzonite sill. This model for mineralization at
Atlanta
differs
substantially from the historical structural model that posited gold mineralization along a 45
o
west-
dipping listric fault (the Atlanta Vein) that flattened with depth and did not recognize the westward
step-down fault displacement of the low-angle replacement horizon. In essence, the historical
model attributed gold mineralization within the
Atlanta
pit (and Gustavson 2020 resource model) to
a single fault zone, whereas
Nevada King's
model contends the bulk of gold mineralization is
confined to the low-angle replacement zone while higher grades occur along high-angle faults
cutting across and off-setting the replacement horizon. This difference in structural models is
important in that
Nevada King's
scenario adds substantial, shallow tonnage east of the Atlanta
Mine Fault Zone where the Gustavson resource model excluded all mineralization.
Nevada King's
model also holds promise for substantially increasing both tonnage and grade along the
40m
to
80m
wide Atlanta Mine Fault Zone, where narrow fault blocks
20m
-
40m
wide hosting the
replacement horizon have been progressively down-dropped westward. Historically, this structural
zone was largely defined by angle holes drilled eastward into the apparent 45
o
west-dipping
Atlanta Vein. However, in
Nevada King's
structural model, it would be difficult to fully penetrate the
narrow, downdropped fault slices of the replacement horizon hosting the bulk of gold
mineralization with holes drilled eastward at -45
o
to -55
o
angles. Closely spaced vertical holes are
the best method for fully penetrating the replacement horizon and defining the high-angle fault
offsets along which higher grades are anticipated.
Holes AT21-062 through AT21-066 drilled at the bottom of the
Atlanta
pit display good lateral
continuity of low grade and high grade mineralization, thereby dispelling any false notion that the
outstanding interval reported in AT21-062 was a lucky, isolated hit. The
54.9m
of 5.34g/t Au in AT-
21-062 is actually part of an increase in gold grade trending southward along the Atlanta Mine
Fault Zone toward what appears to be the center of historical underground mining activity. The high
grade hits in these closely spaced RC holes are very similar to the
9.1m
at 8.26g/t Au reported in
AT21-003 (
released November, 22 2021
) drilled
550m
to the north along the Atlanta Mine Fault
Zone. Taking the historical drill data from Meadow Bay, Kinross, Goldfields, and Bobcat into
account, high grade intervals ranging from 5g/t to 129.02g/t in 33 holes (core and RC) over
intercept lengths of
1.52m
to
27.4m
average
6.9m
grading 9.40g/t. These historical intercepts are
scattered along a 1km strike length of the Atlanta Mine Fault Zone and extend to depths of
350m
,
so healthy high-grade hits at
Atlanta
are not merely serendipitous.
Nevada King's
high-grade
intercepts are certainly ballpark with the historical average, so the Company now feels comfortable
with changing the direction of its exploration program at
Atlanta
to concentrate more on expanding
the high-grade potential, both with respect to building grade in the open pit resource and defining
resource more amenable to underground mining.
Moving into the 2022 exploration season, the Company will be drilling vertical holes spaced
beween
17m
and
25m
apart utilizing RC precollars through the overburden and core tails within the
mineralization in order to define higher grade chutes along the Atlanta Mine Fault Zone. Starting at
shallow levels within the fault zone, drilling will gradually track the higher grade mineralization
down-dip toward the many historical high grade intercepts produced by previous explorers. At the
same time, RC drills will continue to expand the shallow, low grade resource northward, eastward,
and southward.
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 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
).
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.
Cautionary Statements Regarding Forward Looking Information
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 20-JAN-22