NuLegacy Gold Corporation
TSX VENTURE : NUG

NuLegacy Gold Corporation

July 05, 2011 21:30 ET

NuLegacy Reports Initial Assays from 2011 Drilling on Red Hill Prospect, Nevada

RENO, NEVADA--(Marketwire - July 5, 2011) -

NuLegacy Gold Corporation (TSX VENTURE:NUG) reports it has completed six reverse circulation holes totaling 2,572 meters (8,440 feet) of the ongoing 10,500 meter (35,000 feet) drilling program on its Red Hill Prospect. Three holes each in the Central Mineralized Zone (CMZ) and the Long Fault Anomaly (LFA) (www.nulegacygold.com/red_hill_prospect/red_hill_drill_targets_map_lg.html) were drilled to approximately 450 meters and all contained anomalous gold intercepts as well as a few higher grade intercepts over lengths ranging from 9.6 to 79.2 meters.

Gold and trace element analyses have been received for the three CMZ holes, and one and a half of the LFA holes. Once all of the trace element data, detailed geology and results from additional drilling are available a more comprehensive evaluation will be reported.

LONG FAULT ANOMALY: The higher grade assay results from RHM 11-006 are particularly encouraging as they suggest the possible margins of a Carlin-type (www.nulegacygold.com/images_lg/red_hill_prospect_signature_characteristics_carlin_deposits.html) gold system:

Intercept in g/T Intercept in oz/t
Hole From To Length Au From To Length Au
(meters) (meters) (meters) g/T (feet) (feet) (feet) (oz/t)
RHM11-06 182.9 260.6 77.7 anomalous 600 855 255 anomalous
Includes 190.5 202.7 12.2 0.449 625 665 40 0.014
Includes 198.1 199.6 1.5 1.874 650 655 5 0.060
N.B. - anomalous is between 10 and 100 ppb Au (0.010 and 0.10 g/T) and all reported assays are calculated using a 0.1 g/T gold cutoff. The foregoing intercepts are not necessarily true widths as at this time there is insufficient data with respect to the shape of the mineralization to calculate its true orientation in space.

Hole RHM11-006 encountered the Horse Canyon Formation (www.nulegacygold.com/red_hill_prospect/pdf/Horse_Canyon_Formation.pdf) in the hanging wall of the Long Fault Anomaly with the gold bearing interval occurring within favorable carbonaceous pyrite-bearing carbonates and siltstones. The Horse Canyon Formation hosts economic gold mineralization in numerous gold deposits of central Nevada, including the nearby Cortez Hills and Horse Canyon mines in the Cortez Segment (www.nulegacygold.com/red_hill_prospect/carbonate_windows_cortez_segment_lg.html).

Of particular importance is the 1.5 meter interval of 1.874 g/T gold which indicates higher grade material exists in this geological environment, and the thickness of the mineralized interval at 77.7 meters indicates a significant gold-bearing hydrothermal system has been identified. These results continue to validate the Induced Polarization surveys that defined the Long Fault Anomaly (www.nulegacygold.com/red_hill_prospect/west_pediment_long_fault_anomolies_lg.html) and the initial interpretation is very encouraging.

These are the first of a number of holes to be drilled in this part of the property to follow up on the encouraging results from the 2010 drilling program (news release Jan. 13, 2011). The additional drilling will focus on areas likely to contain higher-grade gold mineralization.

CENTRAL MINERALIZED ZONE: Two styles of gold mineralization occur in the Central Mineralized Zone; mineralization in the 12-14 million year old basalts and the older Carlin-style gold mineralization in the underlying Paleozoic sedimentary rocks.

The three holes at CMZ were drilled as an initial test for Carlin-style gold mineralization located below the 100-150 meter thick basalts. The gold and 36 trace element analyses have been received for the three holes, all of which encountered anomalous gold over lengths of 9.6, 15.4 and 79.2 meters respectively, with wider trace element anomalies.

The most significant of these holes is RHB11-03 which was drilled to the east of the basalt cap. The hole contains an interval of oxidized and intensely altered sedimentary rock with 25 meters of greater than 0.10 g/T (see table). Of equal import are the extensive Carlin-style associated trace elements including arsenic to 1800 ppm, mercury 3 ppm, antimony to 200 ppm, and strongly anomalous thallium and zinc. The intensity of the alteration and mineralization in this hole indicates the presence of a Carlin-style gold bearing hydrothermal system that will warrant additional drilling to evaluate.

Intercept in g/T Intercept in oz/t
Hole From To Length Au From To Length Au
(meters) (meters) (meters) g/T (feet) (feet) (feet) (oz/t)
RHB11-03 44.7 70.1 25.4 0.143 145 230 85 0.005
N.B. - anomalous is between 10 and 100 ppb Au (0.010 and 0.10 g/T) and all reported assays are calculated using a 0.1 g/T gold cutoff. The foregoing intercepts are not necessarily true widths as at this time there is insufficient data with respect to the shape of the mineralization to calculate its true orientation in space.

The Central Mineralized Zone is on the Barrick Gold portion of the Red Hill Prospect (TSX:ABX) and the Long Fault Anomaly is predominantly on the Miranda Gold Corp. portion (TSX VENTURE:MAD). The Red Hill drilling is being conducted by Boart Longyear of Elko, Nevada. All of the analytical work is being performed by American Assay Labs of Sparks, NV. Sufficient commercially prepared standards, blanks, and duplicates are inserted to assure quality analytical results.

NuLegacy Gold Corporation is a Nevada based exploration company focused on the discovery of Carlin-type replacement gold deposits on its two highly prospective district scale properties (the 45 square mile Red Hill (www.nulegacygold.com/red_hill_prospect/red_hill_prospect_map_lg.html) and the 35 square mile Wood Hills South (www.nulegacygold.com/wood_hills_south_prospect/wood_hills_south_nevada_map_lg.html)). The exploration and drilling programs underway employ sophisticated techniques for targeting multi-million ounce deposits.

ON BEHALF OF THE BOARD OF DIRECTORS OF NULEGACY GOLD CORPORATION

Albert J. Matter, Chief Executive Officer

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. See the cautionary statement "Forward-Looking Statements" and "Risk Factors" in the Company's prospectus dated November 10, 2010 available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The technical disclosure in this press release has been reviewed by Dr. Roger Steininger, the Chief Operating Officer of the Company and a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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