Nevada King Gold (NKG.V) provided an update on their wholly-owned Atlanta Gold Mine, including plans for drilling and survey highlights.
The Atlanta Gold Mine is road accessible and is located 264 km northeast of Las Vegas. In the early 1970s, Bobcat-Standard Slag constructed the Atlanta open-pit mine and produced 110,000 oz of gold and 800,000 oz of silver. After this production, a handful of explorers collected 58,000m of diamond and reverse circulation drilling, much of which is still available on the property.
Based on some recent rock chip sampling and geological mapping which identified 0.3-1 g/t grade along the wall of the pit which extends 100m eastward, Nevada King is planning some drilling in this area which has not been explored thus far. Beyond just the eastern side of the pit, NKG is planning drilling on the northern and southern side of the pit.
Cal Herron, Chief Operating Officer of Nevada King Gold, stated, “After examining the historical drill and surface sample data for the Atlanta Gold Project, it is apparent that the Atlanta gold resource is just one part of a much larger, caldera-related epithermal gold-silver system. Prior operators largely focused on the Atlanta pit area (0.15km2 or 15 hectares in size), while little attention was paid to regional exploration. I see excellent potential not just for expanding the existing Atlanta pit resource, but also for locating new areas of gold mineralization elsewhere within our 100% owned, 52km2 (5,166 hectares) property package.”
A gravity survey which included 1326 gravity stations was conducted by Magee Geophysical Services last month, the results of which are expected in the coming weeks. Nevada King also sent 1,900 soil samples to American Assay Lab in Reno, and the analysis is also expected in the coming weeks.
A recent NI 43-101 estimated 11 million tons, grading 1.3 g/t Au and 11.9 g/t Ag using a 0.35 g/t Au only cut off, containing 460,000 oz of gold and 4,220,000 oz of silver, with another 142,000 oz of gold and 1,240,000 oz of silver inferred at a lower grade.
NKG has contractors who have been rehabilitating the roads, the waste dump pads, and pit benches in preparation for upcoming drilling. They are also building a new road on the southern end of the pit.
The mine is located in Nevada, which the Fraser Institute ranked #1 on their Investment Attractiveness Index. Nevada King Gold, which was recently created through the merging of Victory Metals and Nevada King Mining, is the fourth largest mineral claim holder in Nevada.
Following the announcement, NKG.V’s share price did not change significantly.