VANCOUVER, June 29, 2018 /CNW/ - NxGold Ltd.
("NxGold" or the "Company"), (TSX-V: NXN) announces
that, as a result of a review by the Investment Industry Regulatory
Organization of Canada ("IIROC"),
the Company wishes to clarify its latest news release dated
June 28, 2018.
The Company has made numerous references to gold nuggets and or
visible gold in the news release without providing a grade of the
mineralized zone(s) or the method of sampling. IIROC
considers this to be vague, overly promotional and misleading
disclosure. A clarification on how a "potential source" can be
"confirmed" was also requested.
NxGold clarifies that it has identified the presence of
the inferred or potential 'conglomerate gold' host sedimentary
sequence proximal to an accumulation of 'melon seed' shaped gold
nuggets.
NxGold clarifies that it has identified a quartz vein
structure bearing visible gold as a potential source for gold
recovered in an area known for abundant historical metal detector
diggings. The observed visible gold in a vein structure is not
representative of the whole vein exposure in the trench. As
mentioned in the June 28, 2018 news
release sampling has been undertaken on the trench and will be
reported as the results become available and are reviewed.
NxGold advises that the Mt Roe Gold project is an early stage
exploration project utilising an evolving gold deposit model for a
paleo-placer style of mineralisation. Abundant exploration work is
required to understand the previously unrecognised sedimentary
geology and confirm if the source(s) of the coarse gold is located
within NxGold Ltd.'s tenements. There is no certainty of the
discovery nor definition of a mineral resource.
NxGold clarifies that the use of metal detecting is a binary
indicator, presence or absence, of detrital gold being shed from
potential host lithologies. The presence, or absence, of gold
nuggets does not indicate with any certainty the presence of a
mineralised zone. The method involves walking topographical
features such as hilltops, drainages and gullies that cross
lithological contacts and units of interest seeking a response from
a metal object. A response from the detector is indication of a
metallic object being present which can vary from bullet casings
and pull tabs to gold nuggets. Finding these gold nuggets, in a
strict sense, are selective in nature and are not representative of
the property as a whole; not every signal is the result of a gold
nugget and much of the area covered by detectorists provided no
indication of the presence of metallic objects. Figure 1
included in the initial release shows areas where gold has been
found by detectorists, a very limited section of the property.
NxGold clarifies that metal detecting on the property is
undertaken by qualified individuals, nugget locations are captured
with a handheld GPS unit, general size and morphology are also
recorded, photos and weights are also captured. Areas covered are
tracked through the handheld GPS unit. Any trash recovered is
properly disposed of. Gold nugget samples are not sent for
analysis.
NxGold confirms chip samples and grabs samples have been
collected from the initial trenching program, the results of which
will be reported along with the sample type, methodology, QA/QC
protocol followed, and laboratory and analysis methods used once
the results have been received and reviewed.
Neither TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
About NxGold
NxGold is a Vancouver-based exploration company. The
Company owns 80% of the Mt. Roe gold project located in the Pilbara
region of Western Australia. The Company has also
entered into an earn-in agreement with Meliadine Gold Ltd. to earn
up to a 70% interest in the Kuulu Project (formerly known as the
Peter Lake Gold Project) in Nunavut.
Technical Disclosure
Metal detecting is an exploration method that is a form of
selective sampling; gold nuggets and other metallic material, such
as pull tabs, bullet casing, etc…, are collected based on a signal
received from the metal detector and dug from generally small
volumes, <1kilogram, of identified overburden material. Results
of this exploration method are not necessarily representative or
indicative of locally derived mineralisation.
Grades are not reported from metal detected samples as the
method is used to determine the presence or absence of detrital
gold. This then guides additional exploration activities undertaken
to determine if a local source or mineralised zone is present.
There is no certainty that a source will be identified and if a
source is identified it may not become a mineral resource.
The scientific and technical information in this news release
has been prepared or approved by Darren
Lindsay, Vice President Exploration and Development, of the
Company, a "qualified person" within the meaning of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
Cautionary Statement Regarding "Forward-Looking"
Information
This news release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
"Forward-looking information" includes, but is not limited to,
statements with respect to activities, events or developments that
the Company expects or anticipates will or may occur in the future
including whether the proposed acquisition will be completed.
Generally, but not always, forward-looking information and
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or the
negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on
numerous assumptions, including among others, that general business
and economic conditions will not change in a material adverse
manner, that financing will be available if and when needed and on
reasonable terms, and that third party contractors, equipment and
supplies and governmental and other approvals required to conduct
the Company's planned exploration activities will be available on
reasonable terms and in a timely manner. Although the assumptions
made by the Company in providing forward-looking information or
making forward-looking statements are considered reasonable by
management at the time, there can be no assurance that such
assumptions will prove to be accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ
materially from any projections of future events or results
expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves or resources, reliance on key
management and other personnel, potential downturns in economic
conditions, actual results of exploration activities being
different than anticipated, changes in exploration programs based
upon results, and risks generally associated with the mineral
exploration industry, environmental risks, changes in laws and
regulations, community relations and delays in obtaining
governmental or other approvals.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in the forward-looking information or implied by
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company undertakes
no obligation to update or reissue forward-looking information as a
result of new information or events except as required by
applicable securities laws.
SOURCE NxGold Ltd.