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NKG: Phase 4 Drilling Expanded Doubled; Further Strong SPE Results

What you need to know:
• Nevada King has expanded its Phase 4 Drill Program by 100% from 20,000m to 40,000m.
• The Company also reported assays at Silver Park East, which continue to define large-scale, shallow mineralization above cut-off grade.
• NKG has received BLM approval to drill Western Rim and is expanding permit locations across the Property to test promising targets.
• We visited site on April 16th and left impressed by both the potential of these targets and NKG’s exploration team (read our site visit note here)

This morning, Nevada King Gold (NKG:TSXV, NKGFF:OTC) provided a positive update on exploration and permitting at its Atlanta Gold Project in Nevada. The Company has doubled its Phase 4 Drill Program from 20,000m to 40,000m, reported strong assay results from Silver Park East, and is advancing permitting to expand drill sites on the Property. We are maintaining our BUY rating and target price of C$0.40/share on Nevada King Gold.

The 100% increase in the Phase 4 campaign to 40,000m will target both the main mineralized zone at Silver Park East and the 350m step-out reported in February from RAB drilling (see our note here). Recall, drill results this year at Silver Park are expected to guide a decision to advance to a resource estimate. The expanded program will also allow NKG to fully test the potential at Western Rim, follow higher grades at Atlanta South, and infill at Atlanta North. NKG has mobilized the RC rig to Atlanta South for initial Phase 4 drilling. The 40,000m planned does not include ongoing RAB drilling, which NKG will continue to utilize for efficient and cost-effective target generation.

This morning’s release also included 18 new drill holes in the Silver Park East area from both infilling and step-out drilling, which continue to define a large footprint of shallow mineralization. Drilling was highlighted by 0.30 g/t Au over 39.6m (from 10.7m), including 0.62 g/t over 13.7m (AT26SP-61) and 0.14 g/t Au over 158.5m (from 13.7m), including 0.37 g/t over 16.8m (AT26SP-62) in the extension area, further supporting February’s RAB drilling. Hole 62 was an angle hole and extended mineralization to a true depth of 172m, confirming continuity of the zone, while holes 58 and 63 (see below) hit the same mineralization slightly deeper and an additional ~300m southwest, now ~650m southwest of the main SPE area. Amongst the 18 holes drilled, 11 returned intercepts exceeding Atlanta’s MRE cut-off grade, while results from step-out drilling outlined mineralization at depths that have not been previously tested.