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NuLegacy completes option on Barrick’s Iceberg

2015-10-13 07:38 ET – News Release

Mr. James Anderson reports

NULEGACY PROVIDES NOTICE TO BARRICK GOLD

NuLegacy Gold Corp. has provided notice to Barrick Gold of the completion of NuLegacy’s option to earn-in to a 70-per-cent undivided interest in the 60-square-kilometre property that hosts the Iceberg gold deposit.

The property, located in the Cortez gold trend of Nevada, is adjacent to three of Barrick’s multimillion-ounce Carlin-type gold deposits that are its lowest cost and politically safest gold assets. The option agreement required NuLegacy to spend $5-million (U.S.) of direct property expenditures (and corresponding indirect expenditures) to earn the 70-per-cent interest from Barrick by Dec. 31, 2015.

The company is pleased to report that these expenditures, which included 74 drill holes and numerous geophysical and chemical surveys, have established the Iceberg gold deposit as a National Instrument 43-101-compliant exploration target of 90 million to 110 million tonnes of 0.9 to 1.1 grams of gold per tonne.

Under the terms of the option Barrick Gold has 90 days in which to elect to either earn back to a 70-per-cent working interest by expending $15-million (U.S.) in direct property expenditures over the next five years (and converting NuLegacy’s remaining 30-per-cent interest to a carried-to-production interest) or remain a 30-per-cent minority working interest partner.

The earn-in

Preliminary exploration and drilling began in 2011 and resulted in the discovery of the Iceberg deposit late in 2012. The return of lengthy intercepts of good to high-grade Carlin-type gold mineralization within favourable carbonate horizons over a substantial northwest/southeast strike of 3,000 metres indicated the deposit area was big enough to potentially contain a sizable resource that warranted more closely spaced delineation drilling. The majority of the delineation drilling focused on the higher-grade north and central zones of the Iceberg that extend approximately 1,200 metres within the 3,000-metre northwest/southeast strike of the favourable gold-bearing horizons.

A detailed report on the earn-in exploration program is being prepared for posting to the company’s website.

We seek Safe Harbor.