Nevada Exploration Inc. Completes Phase I Drilling at Bull Creek Project and Commences Phase I Drilling at Awakening Project
August 18, 2008
Nevada Exploration Inc. (TSX-V: NGE) (“NGE”) today announced that it has completed Phase I drilling at its Bull Creek gold project. Drilling at Bull Creek included 17 wide-spaced holes; visual results suggest significant oxidation and alteration; assays are pending. The Company today also announced that it has begun Phase I drilling at its Awakening gold project. Drilling at Awakening will be directed at the targets identified by NGE’s proprietary water chemistry exploration technology combined with soil chemistry, gravity geophysics, and airborne magnetic geophysics.
“We continue to aggressively advance our drilling program, taking advantage of our access to two drill rigs,” said Wade Hodges, President and CEO of NGE. “While waiting on drill assay results from two properties we are able to continue to drill our other prospective properties all reporting unusually high concentrations of gold in groundwater.”
BULL CREEK DRILLING
Reverse circulation (“RC”) drilling at Bull Creek started on June 4, 2008. NGE drilled 17 widely spaced holes across the project; distances between holes ranged from 300m to 1.6km (1/5 to 1mi). Bedrock proved to be shallow – less than 70m (200ft) over much of the property. Visual results included significant thicknesses of oxidized, altered siltstone, shale, and volcanic rock, with significant clay alteration, silica veining, and silicification over significant areas. Assays for all holes are pending and NGE expects to report assay results in the fourth quarter of 2008.
NGE’s Awakening project is located approximately 53km (33mi) north-northwest of Winnemucca, Nevada, and 5km (3mi) north of the Sleeper Gold mine. Elevated gold and trace elements were identified in the groundwater at Awakening during a reconnaissance groundwater chemistry sampling program and NGE established a land position consisting of 271 claims (13.5sq-km, 8.5sq-mi.) covering the target.
NGE has used its hydroprobe equipment to complete a detailed water chemistry survey to accurately model the project’s hydrogeochemistry. NGE extended sample coverage well beyond the edges of the project to define the boundaries of the area of unusual water chemistry and to provide information about normal, background water chemistry. The results of the detailed water survey have increased both the magnitude and the extent of the area of higher-than-normal water chemistry, and have confirmed that the Awakening target is large enough to potentially contain an economic resource.
NGE has completed a detailed gravity geophysics survey of the property to estimate the depth to bedrock, identify possible fault offsets, differentiate changing rock types, and establish likely water flow patterns. The gravity survey successfully identified significant areas where bedrock is believed to be close to the surface, as well as areas of high relief suggestive of major, block faulting.
To complement the gravity data and further examine the relative changes in the target area’s covered rock types, NGE completed an airborne magnetic geophysics survey across the project. The magnetic data shows a pronounced geologic fabric suggesting varied rock types, covered fault zones, and possible alteration, lying beneath a thin veneer of sand and gravel.
In order to prioritize the geophysical targets identified by the combined gravity and magnetic datasets, and to confirm the presence of gold in a medium other than groundwater, NGE also completed a soil geochemistry program across the property. The soils program identified several areas with elevated gold and trace metals coincident with, and adjacent to the higher-than-normal gold in groundwater, further suggesting the presence of nearby gold mineralization.
NGE reports that the combined Awakening exploration dataset suggests a major structural fabric coincident with higher-than-normal gold, both in groundwater and in soils. To test the high priority targets, NGE has permitted and bonded 30 drill sites. NGE expects the Phase I program to consist of 10 to 20 RC drill holes, ranging in depth from 75m to 300m (250ft to 1,000ft). NGE has two RC drill rigs under contract with current drill costs averaging less than $40.00/ft, whereas the industry average is approximately $65.00/ft.
Jean-Francois Pelland, director of NGE and partner of the law firm McMillan LLP., has been appointed as corporate secretary of NGE replacing David Carbonaro, who will continue to act as a legal, strategic and financial advisor to NGE.
NGE is an exploration company focused, through its wholly-owned Nevada incorporated subsidiary Pediment Gold LLC, on gold exploration in the gravel-covered areas of Nevada. When groundwater flows near a concealed gold deposit it retains a unique kind of chemical ‘memory’ or ‘fingerprint’ of such an encounter and acquires in a unique kind of water chemical ‘scent’. NGE uses an innovative proprietary groundwater technology that identifies and then follows the scent back up-stream to its gold-bearing bedrock source. NGE then applies conventional exploration techniques to further define and then drill the potential new bedrock source of gold to make a discovery. NGE is the first to consistently apply this technology to a comprehensive survey of Nevada’s groundwater. NGE’s experienced and historically successful exploration management team 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.
For further information please contact:
Wade A. Hodges
President, CEO & Director
Nevada Exploration Inc.
Tel: (775) 359-7740
Wade A. Hodges 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.