Nulegacy Gold Corporation (NULGF)

[Edge83]

NuLegacy Reports Assays from the Avocado Deposit
February 7, 2017 - Reno, NV - NuLegacy Gold Corporation reports the assay results from the stratigraphic core hole drilled during the 2016 winter exploration program (AV-4C).

The Avocado Stratigraphic Twin: In preparation for the 2017 follow-up drilling program to the discovery of the Avocado gold deposit in the fall of 2016, the stratigraphic core hole AV-4C was drilled as a 'twin' to the reverse circulation (RC) discovery hole AV-2 (as reported Sept. 13, 2016). The 2,038-ft. core hole twin (AV-4C) was completed on Dec. 3, 2016 just 65 ft. east of the AV-2, which in itself is quite a feat (accomplished by Boart Longyear) as the ground was extremely fractured and presented difficult drilling conditions.

The assay results and the stratigraphic analysis of AV-4C (as outlined below) indicate the next set of holes should be drilled to the north and north-west of AV-2 and AV-4C (View plan map at http://nulegacygold.com/i/pdf/AVplanmap.pdf) in pursuit of the higher-grade source of the 655 ft. bloom of 1/4 gram gold encountered in AV-2. This will be the first target this spring with an initial 10,000 ft. (five [RC] holes) drilling program.

The Assay Analysis: The following table outlines the important gold intervals encountered in AV-4C. As noted above, drilling conditions were challenging, which is often the case in Carlin-type gold systems since the intense fracturing is a pre-condition to favourable gold emplacement.

Assay details - February 7, 2017

Hole NumberDeposit	From(m)	To(m)	length(m)/net/Length(ft) Grade (g/t)(m)	 
 AV-4C	Avocado 	403.4	441.8	42.5	30.3	99.4	0.56 
 including	"	424.9	437.1	12.2	9.7	31.8	1.54 
 including	"	427.4	435.1	7.7	5.1	16.7	2.57

These intercepts are not necessarily true widths as there is insufficient data at this time with respect to the shape of the mineralization to calculate its true orientation.
This resulted in the loss of several 'internal' portions (please view link at http://nulegacygold.com/i/pdf/AV4C.pdf) of the higher-grade interval encountered in the contact zone between the Devonian Horse Canyon formation and the Devonian Wenban, one of the important gold hosts in the Cortez trend and in the Avocado and Iceberg deposits.

Despite the internal loss of core (thus reducing the extent of reportable assay intervals), the grades of the reported intervals are respectable and included several 'spikes' to as high as ~ 8 grams of gold/ton over narrow intervals. The assay results are impressive for:
Containing high-grade intervals: e.g. 2.57 grams of gold over the 5.1 meters recovered from 7.7 meters drilled with grade spikes to greater than 8.0 grams gold, thus confirming the Avocado's Carlin-type gold system's ability to produce high grades, A lengthy interval of 30.3 meters of 0.56 grams of gold recovered from 42.5 meters drilled.

The fact that oxidized material mixed in with the sulphide material was encountered at this depth, and, for what's missing, a portion of the long interval of low grade (1/4 gram gold bloom) reported in the discovery hole AV-2.
Conclusions: With AV-4C being to the east of AV-2 (and missing some of the gold bloom), the indicated gradient direction to drill is to west, north-west, which is supported by the stratigraphic analysis provided below.

The Stratigraphic Analysis: Understanding the stratigraphy is vital to the vectoring decisions for the next exploration program because it identifies the rock types, their ages, structure and the sequence of their formation. There are specific units within the Devonian sequences in the Cortez trend (view the stratigraphic-column at http://nulegacygold.com/i/pdf/StratCol.pdf) that are the most favorable for hosting gold mineralization.

The core drilling, while considerably more expensive than a RC hole, was intended to provide fully intact rock units1 (view at http://nulegacygold.com/i/pdf/AV4C.pdf ), whereas RC drilling produces crushed-rock "chips" (view at http://nulegacygold.com/i/pdf/AV2.pdf) that provide significantly less detail and are thus more difficult to interpret.

The core of AV-4C revealed a more comprehensive picture of the stratigraphy of the deposit, and provided a much better understanding of the rock units that were initially encountered in the RC holes drilled into the Avocado. The stratigraphic/geologic results are summarized in the following bullets, and to quote our partner Barrick Gold are "quite intriguing."
The mineralized interval in AV-4C is of similar thickness to that in AV-2, but as noted in the table above has a higher gold grade,
AV-2 encountered two intervals of >1.0 g/t Au. AV-4C encountered only the upper gold-bearing zone, and it appears that the core hole drilled through a fault zone that contained weakly anomalous gold and some jasperoid before encountering Wenban unit 4 in the footwall, which is a unit not known to host significant gold mineralization,
The gold bloom in AV-4 is not as thick as in AV-2, which is not uncommon in Carlin systems as the size and shape can change significantly over short distances, and supports the conclusion of drilling to the west and northwest.
Throughout the Cortez trend and at Iceberg, the contact zone between Devonian Horse Canyon and the Devonian Wenban formations is one of the important gold hosts. This contact was identified and is well mineralized in AV-4C as reported in the table above,
The Devonian units are extensively brecciated, which produces the favorable horizons for gold mineralization and are commonly developed during Carlin-type gold deposit formation. This aspect was not readily recognizable in the RC holes;
Faulting and fracture zones are pervasive throughout the AV-4C core hole, which accounts for the difficult drilling conditions. Faulting is an important mechanism of ground preparation for gold mineralization in Carlin gold systems and is extremely difficult to identify in RC chips. There appears to be a consistent down-drop of fault blocks to the west,
Numerous intensely altered intrusives are present, which, because of the intense alteration, were not perceived in the RC holes. Igneous activity that produces these intrusives and the associated zones of weakness they follow are a common constituent of prolific Carlin-type gold deposits,
Alluvial cover is thinner than previously believed, with bedrock at only 429 feet. The volcanics in the RC hole chips were originally interpreted as boulders in the alluvium, suggesting deeper alluvium than was actually encountered,
A more comprehensive report on all the Avocado drilling (four holes so far) with maps and cross sections is being prepared by the geological team under the guidance of NuLegacy's Chief Geoscience Officer, Dr. Roger Steininger. It should be available in early March on NuLegacy's website in the section titled "Chief Geoscience Officer Speaks." A review of all of the Company's 2016 exploration programs, along with a preview of the program planned for 2017, will be presented in late February.

In anticipation of a wet cold winter in north-central Nevada, we prepared our main access roads in the fall of 2016 with extra ballast. As a result, we expect to be able to commence drilling as planned in mid-April 2017.

About NuLegacy: NuLegacy Gold Corporation is an advanced stage Nevada exploration company focused on expanding its Carlin-style near-surface Iceberg oxide gold deposit with an established exploration target of 90-110 million tonnes of 0.9 to 1.1 grams of gold per tonnei, and exploring for additional gold deposits on the 38sq. mile (98-sq. km) Red Hill property located in the Cortez gold trend of Nevada.

The Iceberg gold deposit has similar geology to that of Barrick Gold's multi-million-ounce Pipeline deposit the discovery of which is credited to NuLegacy's Chief Geoscience Officer, Dr. Roger Steininger. The Iceberg is located on trend and adjacentii to three of Barrick Gold's multi-million ounce Carlin-type gold deposits (the Pipeline, Cortez Hills and Goldrush deposits) that are amongst Barrick's lowest cost and politically safest gold assets.