NuLegacy Gold suspends Red Hill exploration due to lack of results, funding

NuLegacy Gold (TSXV: NUG) saw its shares plummet Friday in Toronto after announcing that it is suspending further exploration of its Red Hill property in Nevada, citing a lack of meaningful results in the second hole of the 2023 program.

The company has been focused on exploring for high-grade Carlin-style gold deposits located on this 108 sq. km district-scale property, which it says is on trend or adjacent to three of Nevada Gold Mines’ most profitable multi-million ounce gold mines (Pipeline, Cortez and Goldrush).

The second hole of the 2023 program intercepted approximately 110 metres of Wenban stratigraphic unit that is said to host 75% of the gold in the Goldrush deposit. The Wenban horizion was first confirmed by NuLegacy’s geologic team back in November 2020.

While there were numerous faults and a continuous breccia zone, there was no strong Carlin-type alteration throughout or below the main target, and thus no strong geochemical signature to guide further targeting, NuLegacy said in Thursday’s press release.

Importantly, there were no significant intervals of gold in the hole — “significant” being an interval of 10 feet or more of 0.1 g/t gold or higher.

NuLegacy also attributed the suspension to the failure to fully complete the September common share offering, from which it was seeking to raise C$2.5 million. The company said it will now explore various options for the Red Hill Property.

Shares of NuLegacy Gold were down by 60% as of noon ET, giving the Nevada-focused junior a market capitalization of C$5.3 million ($4 million).