Nevada Exploration Inc. (“NGE”) Reports Results Of Hot Pot Drilling
April 2, 2009
Nevada Exploration Inc. (TSX-V: NGE) (“NGE”) is pleased to announce it has completed data reduction for its Concept Test drill program at Hot Pot and has posted a series of detailed maps and cross sections summarizing work to date for review on the company’s website - http://www.NevadaExploration.com. The initial identification of anomalous groundwater chemistry at Hot Pot during 2004 has resulted in the further definition and extension of a large area of hydrothermally-altered bedrock containing geochemically anomalous gold and gold-associated trace elements. Although gold in potentially economic amounts has not yet been encountered, several features of exploration significance similar to those associated with the nearby Lone Tree and Marigold gold mines (~ 9,000,000 ounces of gold) justify further exploration.
Work by independent investigators identified anomalous gold in the groundwater associated with the nearby Lone Tree gold mine (see Grimes, 1995 on the company’s website under NGE is Not Alone…). In 2004, regional reconnaissance groundwater sampling by NGE principals discovered another area of similarly anomalous groundwater chemistry near Hot Pot. In addition, regional gravity data suggested that the Hot Pot area was underlain by a bedrock high that was covered by a thin layer of sand & gravel.
In 2005, nine reverse circulation drill holes were completed to depths ranging from 92m (300ft) to 190m (620ft) for a total of 1,195m (3,900ft). The widely-spaced, shallow holes confirmed bedrock to range in depth from 33m (100ft) to 112m (370ft). The bedrock was hydrothermally altered and contained anomalous gold and trace elements similar to that associated with the Lone Tree gold mine. The area of anomalous groundwater chemistry was also confirmed and enlarged.
In late 2006, NGE acquired its first hydroprobe (see Exploration Concept on the company’s website) and in 2007 sampled the groundwater at Hot Pot on a more detailed 400m (1/4 mi) grid. The results reported more highly anomalous gold and trace elements in groundwater and further expanded the area of exploration interest. For comparison, the highest gold in groundwater reported from the nearby Lone Tree gold mine was 2,100ppt (parts per trillion) gold. Hydroprobe sampling at Hot Pot returned a high of 5,020ppt in groundwater.
In 2007, two seismic geophysical lines were completed that identified several deep, north-trending, steeply-dipping fault zones. In 2008, a detailed gravity geophysical survey was also completed that successfully mapped the relative depth to the underlying bedrock by measuring the density contrast between 200m sampling points. The gravity survey delineated sharp changes in the slope of the bedrock that coincided with the fault zones identified by seismic geophysics.
In 2008, NGE completed 10 vertical, reverse circulation drill holes to test small segments of the steeply-dipping fault zones identified by seismic and gravity geophysics. Three vertical holes were spaced 100m (330ft) apart on each of three lines. The holes ranged in depth from 50m (165ft) to 175m (575ft) for a total of 1,085m (3,565ft). The shallow drill holes encountered hydrothermally altered bedrock containing anomalous gold and trace elements. Deeper, angle drill holes designed to cross cut the areas where the steeply-dipping fault zones had been projected were planned, but the drilling contractor was unable to complete the program.
Also in 2008, an energy company, with business interests separate from NGE, started a deep test hole on the Hot Pot property and the hole is still in progress. In exchange for NGE seismic data, NGE was granted access to drill cuttings from the 1,372m (4,500ft) drill hole. Significantly, the deep drill hole encountered hydrothermally-altered, calcareous siltstone underlying the Hot Pot Project. The thickest continuous interval of strongly calcareous siltstone is 189m (620ft) and started at the relatively shallow depth of 350m (1,150ft). Calcareous siltstone can be a very favorable, potential host rock where it is cut by high-angle faults. Hydrothermal alteration includes local bleaching, clay, de-calcification and secondary pyrite. Geochemical analyses of cuttings from the deep test hole are pending.
Although potentially economic quantities of gold mineralization have not yet been encountered, drilling to date has been wide-spaced and could have easily missed the type of high-angle fault zones that control significant known gold mineralization elsewhere in the region. The widely-distributed, highly anomalous gold in groundwater together with the large area of hydrothermally-altered and geochemically anomalous bedrock strongly suggests that higher values for gold in bedrock than have been discovered to date may still be located nearby. The next step is more closely-spaced, shallow, vertical drill holes and/or deeper, angle holes targeted to intersect steeply-dipping, potentially ore-bearing fault zones and favorable bedrock units.
Concept test, drilling results at Hot Pot are another important milestone for NGE: they demonstrate that groundwater chemistry can be used to efficiently and effectively reduce large sand- and gravel-covered valley basins to much smaller areas having a high potential for the discovery of new, gold-bearing hydrothermal systems for more focused exploration.
Five holes have been completed at the Awakening project, but none were completed to target depth. Drilling has been suspended due to difficult ground conditions pending the availability of different drilling equipment. Analytical results for all drill holes, combined with surface sampling and geophysical results are currently being reduced and will be released as completed.
As previously announced, NGE has completed Concept Test drilling at three properties, but to complete further drilling, NGE will require additional financing. NGE is actively looking at ways to advance its exploration program while balancing both shareholder risk and dilution in a challenging financial environment. NGE remains committed to the continued development of its industry leading, groundwater chemistry exploration program. To preserve capital, NGE has stopped all drilling, minimized field and office staff, and significantly reduced management salaries. NGE has paid all major land holding costs until September 1, 2009, and all accounts payable are current. NGE has begun discussions with interested royalty and joint venture partners, and is also considering an equity financing.
NGE is an exploration company focused 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 and is the first to complete a comprehensive survey of Nevada’s groundwater to discover new gold deposits. Management believes the results of NGE’s groundwater chemistry program are significant in that they demonstrate that Nevada’s gold deposits exhibit recognizable and measurable groundwater chemistry signatures. NGE has identified and acquired exploration properties exhibiting groundwater chemistry similar to known gold mines and is now testing whether such water chemical signatures can be used to discover new gold deposits. NGE continues to refine and apply this technology to identify, acquire, further delineate, and then either drill test or joint venture prospective exploration properties to return maximum shareholder value.
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. This presentation contains information about the Lone Tree Gold Mine, which is an ‘Adjacent Property’ on which we have no right to explore or mine. All investors are cautioned that mineral deposits on adjacent properties are not proof of mineral deposits on NGE properties.