Nevada Exploration Inc. Announces Phase II Drilling at Hot Pot
July 14, 2008
Nevada Exploration Inc. (TSX-V: NGE) (“NGE”) is pleased to announce that it has commenced a Phase II reverse circulation (RC) drilling program at its Hot Pot gold project (the “Property”), located between Winnemucca and Battle Mountain, Nevada, 6.5km (4 mi) east of Newmont’s Lone Tree gold mine and 13km (8mi) north of Goldcorp and Barrick’s Marigold gold mine. The Phase II program will consist of 25 to 30 RC drill holes, ranging in depth from 70m (200ft) to 180m (600ft), and is designed to test the drill targets identified by NGE’s proprietary groundwater chemistry technology, Phase I RC drilling, soil vapor-phase, soil geochemistry, seismic, detailed gravity, and airborne magnetic data.
Anomalous gold and trace elements in groundwater were initially identified at Hot Pot during a reconnaissance groundwater chemistry sampling program. These early results, combined with regional gravity and air magnetic data, prompted NGE to lease approximately 7.8 sq-km (3 sq-mi) covering this previously unexplored area from a private land owner. NGE’s interest in the Property is subject to a 3% NSR to the land owner and a 1.25% NSR to Royal Gold Inc.
Nine RC holes were completed at the Property during a Phase I drilling program in 2005. The nine holes were spread over a large area, with nominal 800m (0.5mi) spacing. All nine drill holes successfully encountered hydrothermally altered bedrock at depths less than 70m (200ft) with anomalous gold and associated trace-element chemistry. The results from the wide spaced, Phase I program provided evidence that with just a few groundwater samples, NGE’s groundwater exploration technology was able to identify a previously unknown, completely covered target with significant exploration potential. This marked an important milestone in the early development of NGE’s groundwater exploration program.
Building from the encouraging Phase I results, NGE has applied a progression of conventional exploration methodologies to investigate the expected structural and mineralized controls responsible for the gold in groundwater anomaly, specifically to identify Phase II drill targets; work included:
- The industry’s first regularized, grid-based groundwater chemistry sampling program using NGE’s direct-push groundwater sampling methodology – this detailed survey modeled the groundwater chemistry across the Property and the results increased both the magnitude of the anomaly and the size of the target;
- Two detailed soil vapor-phase and soil geochemistry surveys designed to detect the possible vertical migration of gold and trace elements from the underlying bedrock - the two soil surveys successfully delineated several potential structural targets, similar in size and shape to those identified at the nearby Lone Tree and Marigold gold mines, that exhibit anomalous gold and trace metal soil geochemistry coincident with, and adjacent to the anomalous gold in groundwater;
- Two parallel seismic lines across the property, which successfully detected the presence of significant underlying fault zones with strike lengths exceeding 0.8km (0.5mi) and depths extending to several thousand feet; and
- A detailed gravity survey of the Property, which successfully identified areas where bedrock is believed to be very close to the surface <70m (<200ft), as well as areas of high relief, suggestive of major, block faulting – the gravity data correlates well with the Phase I drilling data and NGE considers it to be a good predictor of bedrock depth.
NGE is pleased to report that the combined Hot Pot exploration dataset suggests a major structural fabric beneath the Property coincident with anomalous gold in bedrock, gold in groundwater, and gold in soils. Based upon these results, NGE plans to complete a 25 to 30 hole, Phase II drill program to test the high priority targets.
A drill rig from an independent contractor became available for a short time this spring and was able to complete the first 10 holes of the Phase II program. As expected, bedrock continues to be very shallow: 30m to 150m (85ft to 500ft) over much of the property. Drilling continues.
NGE is an exploration company focused, through its wholly-owned Nevada incorporated subsidiary Pediment Gold LLC, on gold exploration in Nevada. NGE is led by an experienced and historically successful exploration management team.
NGE has developed a proprietary groundwater chemistry exploration technology specifically designed to discover new gold deposits. NGE is the first to apply this technology and the first to complete a comprehensive survey of Nevada’s groundwater. Management believes the results of the survey are significant in that they demonstrate that Nevada’s known gold deposits exhibit measurable and recognizable groundwater chemistry.
NGE has identified and acquired 11 exploration properties with groundwater chemistry similar to that at known gold mines, and is now testing whether such groundwater chemistry can be followed “up-stream” to discover new gold deposits.
The TSX-V has in no way passed upon the merits and does not accept responsibility for the adequacy or accuracy of this press release.
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Kenneth N. Tullar is the Qualified Person, as defined in National Instrument 43-101, and is responsible for the preparation of the technical and scientific information contained in this News Release.
Cautionary Statement on Forward-Looking Information:
This release contains certain "forward-looking statements" including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in mineral exploration, the need to obtain additional financing, environmental permits, the availability of needed personnel and equipment for exploration and development, fluctuations in the price of minerals, and general economic conditions.