NuLegacy Gold Stops Exploration After Failing To Find Gold, Despite Spending Tens Of Millions
NuLegacy Gold Corporation (TSXV: NUG) appears to have hit the the end of the road, announcing yesterday before the market close that it would be suspending its 2024 exploration program at its flagship Red Hill property in Nevada.
The exploration suspension follows the company failing to intersect any noteworthy mineralization in the second hole of its 2023 exploration program. The hole, drilled to a depth of 2,000 feet (610 metres), failed to intersect any strong Carlin-type alteration throughout or below the main target, providing no guide for further targeting.
The company did indicate that it intersected 111 metres of Wenban Unit 5 (which hosts gold in deposits in the region) in the the main target zone along with numerous faults and a breccia zone over 30 metres thick, however no significant gold mineralization was hit. “Significant” gold was defined as at least 10 feet (3 metres) of 0.1 g/t gold or better.
NuLegacy also pointed to its failure to raise $2.5 million under a financing announced in September. That financing raised proceeds of $1.2 million under a total of three tranches. The company meanwhile states that to date it has spent over $50 million and ten years time narrowing its search of the property to this current zone that was being drill tested.
It is unclear what the next steps for the company will be, with no further guidance provided.
NuLegacy Gold last traded at $0.025 on the TSX Venture.
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