VSA Morning Miner, 04/06/19
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NuLegacy Gold (CVE:NUG)
NuLegacy Gold (NUG CN) has provided an update in relation to its planned exploration programme for 2019. Despite making significant progress towards generating encouraging and prospective new targets, the additional depth of the targets under the Eocene basalt cover means higher drilling costs. Given the size of the new targets and the amount of drilling that would be required NUG believe that it would be more effective to progress discussions with potential JV or merger partners rather than looking to finance a programme at multi year lows.
This comes as a disappoint given our recent expectation that drilling was due to commence imminently, however, our fundamental view that the Red Hill property is potentially host to attractive large scale and high-grade mineralisation remains unchanged.
We reiterate our Speculative Buy recommendation.