NuLegacy (CVE:NUG)
NuLegacy (CVE:NUG) has announced that it has commissioned Mine Development Associates of Nevada to prepare a NI 43-101 compliant resource inventory for the Iceberg gold deposit at Red Hill. The resource inventory will be constrained to approximately 35% of the 3km strike length. This is the area in which there is sufficiently high drill density to determine a resource and an announcement is expected in Q1 2018. Holes from up to year end 2017 will be used which includes those from the current programme.
NUG’s stated aim continues to be to determine a multi-million ounce resource on the property. However, as this resource inventory only covers a portion of the known mineralisation it will likely serve as a base case in our view. Having a defined resource will better enable NUG’s budgeting for determining the remainder of the resource.
We believe that the resource calculation will demonstrate the progress made to date and the significant oxidised mineralisation that has been discovered. From here there is attractive optionality to expand the resource either via infill drilling of the known deposits or by further exploration of the two new zones drilled for the first time in 2017. Meanwhile the prospect of discovering high grade mineralisation remains the most exciting potential catalyst for the stock.
We reiterate our Speculative Buy recommendation.