Nevada Exploration Inc. (“Nge”) Closes Private Placement To Accelerate Drilling Program And Provides Operational Update
January 24, 2008
Nevada Exploration Inc. (TSX-V: NGE) (“NGE”) is pleased to announce that it has closed a non-brokered Private Placement consisting of 1,020,000 units, valued at $1.00/unit, for total gross proceeds of $1,020,000. NGE is also pleased to report on its operational progress, which includes the addition of a second drill rig to its Fletcher Junction property and the addition of two new exploration properties.
NGE issued today 1,020,000 units, valued at $1.00/unit, for total gross proceeds of $1,020,000. Each unit consists of 1 common share of NGE plus ½ warrant to purchase a common share of NGE at an exercise price of $1.50 per common share of NGE for a period of 24 months.
Wade Hodges, President and Chief Executive Officer of NGE, said that “NGE management is particularly pleased to complete a non-brokered private placement with strategic investors who continue to support NGE’s unique exploration model. These additional funds will allow us to ramp up our exploration plans based upon continued positive results, thereby adding incremental value with minimal dilution.”
Specifically, NGE will use the proceeds to accelerate both drilling and property acquisitions over the next 12 to 18 months. NGE is well positioned to continue to explore for new gold discoveries for its shareholders.
NGE continues to apply its unique exploration approach, which emphasizes a proprietary water chemistry methodology as one element of a highly efficient and effective exploration program designed to leverage always scarce exploration resources into high return gold discoveries.
NGE has acquired two additional properties - both evidencing highly anomalous gold in groundwater, and has added additional claims to two previously acquired properties. NGE’s total land position now consists of approximately 60 sq-mi on 11 separate properties. NGE plans to continue acquiring land covering additional targets as identified by highly anomalous gold in ground water.
Fletcher Junction Drilling
As previously announced, reverse circulation drilling operations started at Fletcher Junction on November 12, 2007. Fletcher Junction is the property of merit described in NGE filing statement dated February 16, 2007 produced as per National Instrument 43-101 and available on www.sedar.ca. Drill production has been slower than initially anticipated. Drilling is ongoing and the fourth drill hole is now complete. All four holes drilled to date have been completed to depths of between 900 feet and 1,000 feet have intersected the expected lithologic contacts, and have encountered hydrothermally altered bedrock as shallow as 450 feet.
The drilling program has been designed to test the large 9,000 foot by 3,000 foot target area with wide-spaced vertical holes to determine the size of the expected hydrothermal system and its primary, potentially-ore controlling characteristics. While visual results to date have been positive, much work remains before a proper assessment of the Fletcher Junction system can be made. Assay results are pending and substantive results for Fletcher Junction are expected during the second quarter of 2008. .
A second Reverse Circulation (RC) drill rig has been added to the Fletcher Junction project with the capacity to drill to depths of up to 2,000 feet. Although current plans still call for less than 1,000 foot drill depths, having two RC drill rigs on the same property will speed up drill testing of Fletcher Junction and will simplify the logistics of supporting two rigs, allowing NGE to use the two rigs most efficiently. By the time phase-one drilling is completed at Fletcher Junction it is expected that both drill rigs and geologic support crews will be operating smoothly, so that the rigs can be deployed to separate properties and accelerate the rate at which NGE can drill test its portfolio of properties. Targeting and permitting activities continue well in advance of drill availability to assure a steady flow of drill ready projects.
Ken Tullar, Chief Operating Officer of NGE, concluded that “NGE continues to position itself to lead the junior resource mining sector by building upon past conventional exploration success with a carefully designed program of Progressive Innovation, and by attracting the optimal human and material resources to capitalize on our strong market support. ”.
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 a highly experienced and historically successful exploration management team. NGE has developed a proprietary groundwater chemistry exploration technology and is the first to complete a comprehensive and consistently applied survey of Nevada’s groundwater chemistry specifically directed toward the discovery of new gold deposits. Management believes that the results of NGE’s groundwater chemistry program are significant in that they are demonstrating that Nevada’s known gold deposits exhibit recognizable groundwater chemistry signatures. NGE has identified and acquired several exploration properties with similar groundwater chemistry and is in the final stages of testing whether such water chemical signatures can be followed “up stream” to discover new gold deposits in much less time and for much less money than the conventional exploration approaches currently used by other exploration groups. NGE continues to refine and apply this technology to identify, acquire, further delineate and then drill test its own highly prospective exploration properties to return the maximum value of making a new gold discovery to shareholders. NGE is also in a unique position to add value to the Joint Venture opportunities presented by more conventional exploration groups.
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.