Epstein-Research Blog | Exclusive Chairman Interview, Albert J. Matter, NuLegacy Gold | Talkmarkets - Page 3
Founder, Chairman, CEO, President, Treasurer, Analyst at Mockingjay, Inc.
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In 2011 Peter Epstein, CFA, left a $3 billion hedge fund where he was a senior natural resources analyst to help increase awareness of a number of natural resource companies in which he's invested in. 


Exclusive Chairman Interview, Albert J. Matter, NuLegacy Gold

Date: Sunday, February 21, 2016 9:58 PM EDT

Presumably, NuLegacy is entertaining proposals on its 70% stake in the Iceberg deposit. Without being specific, what are the types of scenarios being contemplated? 

AJM: Yes, we are entertaining a number of proposals. The primary scenario being discussed is having a Major take an equity stake in NuLegacy…at a premium to market.

Numerous intermediate to large miners have expressed interest in investing with us to advance our project. These discussions are covered by confidentiality agreements, all we can say is that we expect to finance the remainder of our exploration programs by issuing stock to a strategic partner at a premium to market.

The perception by some is that it’s been a long-time waiting game, waiting for Barrick, now waiting for something else to happen. How much cash liquidity does the Company have to carefully weigh options?

AJM: It took 5 years to earn-in 70%, and 90 days for Barrick’s decision (more about that later). Capital was hard to raise, so we’ve spent it very carefully. We have C$1.25 million in the treasury, enough to last 18 months.

We expect to be able to announce several milestones over the next several months; a possible investment from a Major, starting drilling to expand the Iceberg deposit, hoping to identify new deposits, and the calculation of a maiden resource. It should take 12-18 months to demonstrate the value of NuLegacy’s nascent Carlin-type deposit, and capitalize on that value through a merger or sale to a producing miner.

With increasing geopolitical risks, Majors want a position in Nevada. Notice how quickly the new CEO at Goldcorp positioned them in the Carlin trend via their investment in our cousins to the north Gold Standard Ventures.

NuLegacy’s best assays in the North Zone demonstrate high-grade. How do those holes stack up to Barrick’s nearby mines and Goldrush development project?

AJM: They stack up quite favorably… and that’s a good use of the word. If you compare the stacking of the gold-bearing horizons at Barrick’s Goldrush deposit (immediately adjacent to 3 of Barrick’s mines on strike with the Iceberg deposit), you will note that the Iceberg deposit’s gold-bearing horizons are much nearer-surface than those of the Goldrush deposit. That deposit currently has a published resource ~15 million ounces grading over 4.0 g/t.

Also noteworthy is that the Iceberg deposit’s higher grade gold is oxidized material (rainwater going to that shallow depth has ‘rusted it’), as opposed to Goldrush’s sulfide material.

If you visit this link, you’ll find an article I wrote with the assistance of a senior geologist at a Major, which affirms that, ‘it’s significantly cheaper to extract gold from near-surface oxidized material versus deeper sulphide/refractory material.’

Combined with other intercepts in the North & Central zones, this high-grade gold mineralization confirms that the Iceberg deposit is similar to Carlin-type deposits in the Cortez trend composed of large envelopes of decent grades (0.2 to greater than 1.0 g/t), within which are significant areas of much higher grades. 

Highlights of Central Zone assays indicate lower grades than that of the North Zone. How does the Central Zone fit into the overall picture? 

AJM: The Central Zone, with modestly lower grades than the North Zone, has an established strike length of over 650 meters (2,130 feet). Numerous holes have intercepted the 3 known gold-bearing horizons on the property. The main target horizon is at a relatively shallow 300-500 feet and will add considerably to our maiden NI 43-101 resource calculation later this year.

There have also been a handful of slightly deeper holes drilled in the Central Zone, most of which encountered gold-bearing sulfides. This indicates larger and higher grade zones may exist at depth, similar to other deposits in the Cortez trend.

Why should readers invest in NuLegacy now, as opposed to later when there’s more clarity on the future of the Iceberg deposit? 

AJM: In our view, the risk-reward ratio for an investment in NuLegacy Gold, (TSX-V: NUG) (OTC: NULGFhas never been better. Not only is our exploration property in the Cortez trend valuable to a range of potential suitors, we believe assets in Nevada will command premium valuations. 

This does not constitute investment advice but we feel our stock is undervalued. Once the market recognizes the value we’ve already created, our stock price should appreciate to reflect that NuLegacy has,

++ Discovered the best undeveloped prospect in Nevada, with excellent high-grade results and characteristics often associated with low operating costs,

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