Nevada King Intercepts 54.9m of Oxide Gold Grading 2.62 g/t Starting at Surface From Within the Atlanta Pit, Battle Mountain Trend, Nevada
Nevada King Intercepts 54.9m of Oxide Gold
Grading 2.62 g/t Starting at Surface From
Within the Atlanta Pit, Battle Mountain Trend,
Nevada
VANCOUVER, BC
,
Dec. 1, 2021
/CNW/ -
Nevada King Gold Corp.
(TSXV: NKG) (OTCQB:
VKMTF)
("
Nevada King
" or the "
Company
") is excited to announce that one of its reverse
circulation (RC) exploration drill holes intercepted 54.9 metres grading 2.62 g/t of oxide gold
mineralization starting at surface from within the north-east corner of the
Atlanta
open pit at the
100% owned Atlanta Gold Mine Project located 264 km northeast of
Las Vegas, Nevada
, in the
prolific Battle Mountain Trend. This hole is one of several vertical holes drilled along the western
edge at the bottom of the pit (Figure 1) in an area that had not previously been drill-tested.
Highlights
Vertical RC drill hole AT21-066 drilled from within the
Atlanta
pit encountered
54.9m
grading
2.62 g/t Au
starting at
3m
depth.
*
The mineralized rock is oxide material and includes a high-
grade intercept of
3m
averaging 13.35 g/t Au
from
51.8m
to
54.8m
.
The newly idenitifed mineralization in AT21-066 is located within the confines of the Gustavson
2020 conceptual open pit but, importantly, is not currently included in the pit-constrained
resource model. These results clearly demonstrate high-grade potential along the western
margin of the historical Atlanta Mine open pit and show the possibility of increasing mineralized
tonnage while decreasing strip ratio in a mining scenario (see Figure 2).
Furthermore, this intercept ties the western margin of the Gustavson resource model (which is
west of and 100-
150m
below the pit floor) to the at-surface mineralization within and around the
pit, particularly in areas that had not been previously drilled.
The
Atlanta
project currently has an estimated pit-contrained 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
. (See "NI-43-101 Technical Report on Resources" prepared by Gustavson
Associates filed in the Company's SEDAR filings.)
*
True thickness of Au mineralization is currently unknown and must be determined with additional drilling.
Cal Herron
, Exploration Manager of
Nevada King
stated, "
Nevada King's
2021 drilling program at
Atlanta
was designed to accomplish two primary objectives: (1) expand the Gustavson resource
model to the north, south, and east of the historical pit, and (2) determine whether higher grade
mineralization seen in deeper portions of the resource model extend upward toward the surface.
Nevada King's
drill holes along section line C-C' (Figure 2) are cleary significant steps towards
accomplishing these objectives. The near-horizontal mineralization outcropping along the eastern pit
wall was expected, as we see similar type mineralization along sections A-A' (
released
November 16, 2021
) and B-B' (
released
November 22, 2021
). However, the long,
moderate grade intercept of
54.9m
averaging 2.62g/t Au in AT-21-066 was completely unexpected,
as there was no indication of this grade and thickness based on historical holes drilled in the vicinity.
This hole clearly demonstrates shallow high-grade oxide mineralization beneath the historical pit that
falls within the current conceptual pit. More drilling is planned to define the geometry and grade of
this shallow mineralization and significantly add to the current gold resource at
Atlanta
."
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 C-C’ crosses the center of the historical open pit and ties the higher grade
mineralization seen in the Gustavson resource model on the west to the low grade mineralization
seen along the eastern pit margin. (CNW Group/Nevada King Gold Corp.)
Figure 2. Cross section C-C’ showing gold distribution in the Nevada King RC holes drilled across the
centre of the historical Atlanta open pit. Eastern margin of 2020 Gustavson gold resource model is
located west and below intercept in AT21-066. Gold mineralization hit in AT21-066 extends the
Gustavson resource model further eastward and up to the bottom of the pit. As was seen in both
sections A-A’ and B-B’, the mineralized contact beneath the quartz monzonite sill is downdropped
westward. (CNW Group/Nevada King Gold Corp.)
Drill Results Along Section C-C' and in the Vicinity
Assay results from
Nevada King's
RC drilling along Section C-C' and within the vicinity are reported
below in Table 1. The reported intercepts are down-hole lengths and do not represent true thickness
of mineralization. However, the intercepts in AT21-61 and AT21-62 may be close to true thickness,
but additional drilling is needed for ascertaining the actual geometry of the mineralized zone.
Averaged intercepts utilize a 0.30 g/t external cut-off grade.
Table 1.
Drill
Hole ID
From (m)
To (m)
Averaged
Length (m)
Average
Grade g/t
Au
AT21-066
3.0
57.9
54.9
2.620
AT21-061
3.0
36.6
33.6
0.598
AT21-060*
<0.300
AT21-030
<0.300
AT21-030A*
9.1
91.5
21.3
0.718
AT21-032
<0.300
AT21-032A*
57.9
67.1
9.2
0.873
*
Denotes angle holes.
The western wall of the
Atlanta
pit consists of partially consolidated tuffaceous sandstone and tuff,
both of which are soft and friable. Consequently the original mine benches were rapidly eroded away
soon after cessation of mining in 1985 and access to the lower portions of the open pit was lost.
This in large part explains why no exploration drilling was done in the pit by Goldfields (1989-1991),
Kinross (1996-1998) and Meadow Bay (2011-2018). Instead of cleaning the pit out, these former
explorers opted for long, westward-directed angle holes that collared outside of the pit along its
western margin, but this meant the mineralized intercepts would be deep, the shallowest being about
100m
beneath the pit floor. This also meant any serious resource calculation would stop well
beneath the pit floor and would not include any mineralization within and east of the pit. In addition,
the semi-consolidated volcanic sandstone introduced technical challenges for the RC drilling in terms
of hole stability and sample contamination, thus increasing cost and raising sample QAQC issues.
In early 2020, the southwestern corner of the
Atlanta
pit started to collapse, such that by early 2021
about
10m
of surface subsidence had occurred. This localized vertical subsidence is most probably
due to collapse of underground stopes mined-out during the early 1900s. Assuming high grade
material was mined from these shallow stopes,
Nevada King
decided to re-open the pit access ramp
and drill along the northern extension of the collapse zone, which runs along the lower pit bench
immediately west the pit floor. AT21-066 is the northernmost of five vertical RC holes drilled along
this bench.
The two RC holes shown on the western end of section C-C' in Figure 2, KR-98-15 and KR-98-16,
were drilled by Kinross in 1998 at the western edge of the pit. Angle hole KR-98-15 cut
19.8m
averaging 1.799g/t Au from
135.7m
to
155.5m
, with the highest grade interval running 3.72 g/t over
1.7m
. This gold hit in KR-98-15 was the shallowest intercept within the central portion of the
Gustavson 2020 resource model, and at that time there was no drill information east of the intercept
that would allow Gustavson to extend the mineralization up to the pit floor. There was certainly no
indication of potential for the type of intercept returned in
Nevada King's
AT21-066:
54.9m
grading
2.62 g/t Au
from
3m
to
57.9m
, with a high-grade core of
3m
averaging 13.35 g/t Au
from
51.8m
to
54.8m
. Kinross hole KR-98-16 cut
22.9m
grading 2.500g/t from
163.1m
to
186.0m
including a high
grade core of
12.2m
averaging 4.051g/t, but this relatively good gold intercept still pales in
comparison to AT21-066. The intercept in AT21-066 was totally unexpected in view of the historical
drill data and lack of historical exploration interest in this part of the deposit. We now see good
potential for significantly expanding the existing resource model upward and eastward into the pit
area with this discovery of moderate to high grade oxidized mineralization. Core drilling across and
along strike of this shallow gold zone will better define both geometry and grade of mineralization in
coming months.
Geologic mapping and sampling earlier this year identified several different zones of gold
mineralization hosted within strongly silicified brecciated Laketown Dolomite along the eastern pit
wall, but the geometry of these mineralized zones was unclear. Angle hole AT21-030A drilled
underneath the mineralized exposures and we can now see the near-horizontal nature of the
mineralization, very similar to what was encountered along section A-A' (
released
November 16, 2021
). These remnant zones of mineralization occur within a series of down-
dropped blocks along the eastern pit wall. Nearby angle hole AT21-032A (see Table 1) hit the same
lower mineralized zone that was encountered in AT21-030A. The holes shown in Table 1 containing
<0.300g/t Au penetrated the Ely Springs Dolomite unit that typically underlies the mineralized zone.
Even though these holes did not make the 0.300g/t cut-off, they still host sections containing Au
mineralization within the 0.200-0.300 g/t range. Bottle roll tests will determine whether or not this
sub-grade material could be included within the resource model.
Reconnaissance sampling east of section C-C' indicates mineralization continues eastward for about
200m
along a high ridge bounding the pit's eastern margin. This large area of silicification and low
grade gold mineralization is now interpreted as being the upthrown eastward extension of the same
near-horizontal mineralized zone that comprises the Gustavson resource model. The outcropping
mineralization has not been historically drilled so
Nevada King
will initiate road construction and
drilling east (and upslope) of AT21-030 in 2022.
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 01-DEC-21