Nevada Exploration Announces Exploration Agreement with International Enexco to Drill at Hot Pot Gold Property
June 8, 2009
Nevada Exploration Inc. (“NGE”) (TSX-V:NGE) is pleased to announce that it has entered into an Exploration and Option to Joint Venture Agreement (“Agreement”) with International Enexco Ltd. (“Enexco”) (TSX-V:IEC) on the Hot Pot Gold Property. The Agreement calls for Enexco to complete a work program that includes 6,000 meters (19,600ft) of drilling over three years to earn a 51% interest in the Property, with the option to earn an additional 19%, for 70% total, by drilling another 3,000 meters (9,800ft) during the fourth year. Enexco’s minimum annual work commitment during the first three years is 1,500 meters (4,900ft) of drilling. Enexco plans to test several steeply-dipping structural targets with a number of angled core holes. Enexco expects to mobilize one of its company-owned core drills to the Property and commence drilling within the next 30 days.
Wade Hodges, President and CEO: “We are very excited to work with Enexco to take Hot Pot to the next level. With this Agreement, NGE is executing on its strategy to identify and develop new, high-quality exploration properties for the mining industry. We have used our proprietary groundwater chemistry exploration program to establish an exploration pipeline of 11 properties. Partnering with groups such as Enexco to drill our properties allows us to focus on identifying and advancing new properties. By leaving the later, more-traditional exploration stages for our partners, we are leveraging our investment in groundwater chemistry exploration to maximize shareholder value.”
ABOUT HOT POT
The Hot Pot property is located 6.5km (4mi) east of Newmont’s Lone Tree mine and 13km (8mi) north of Goldcorp’s Marigold mine (9,000,000 ounces combined). NGE identified the Hot Pot target in 2004 using its groundwater chemistry exploration technology. Regional gravity data indicated the area was underlain by a bedrock high covered by a thin layer of sand and gravel. The concept was confirmed by nine shallow reverse circulation holes in 2005 which revealed shallow, hydrothermally altered bedrock with anomalous gold and trace element geochemistry similar to Lone Tree. NGE completed two seismic geophysical lines in 2007 that identified several deep, north-trending, steeply-dipping fault zones. In 2008, NGE complete a detailed gravity geophysical survey that delineated sharp changes in bedrock slope coincided with the fault zones identified by seismic geophysics. Later in 2008, NGE drilled another ten shallow reverse circulation holes and intersected altered, geochemically anomalous bedrock, but the program ended before deeper, angle holes could be drilled to test the steeply-dipping structural targets. Enexco’s drilling will focus on testing these targets. The work completed to date at the Hot Pot Property is described in more detail in NGE’s news release: “Results of Hot Pot Drilling”, dated April 2, 2009, and on NGE’s website: www.NevadaExploration.com.
ABOUT NEVADA EXPLORATION INC.
NGE is an exploration company focused on gold in Nevada. NGE is led by an experienced and historically successful exploration management team. NGE has developed a proprietary groundwater chemistry exploration technology and has demonstrated that Nevada’s gold deposits exhibit recognizable and measurable groundwater chemistry signatures. NGE has completed the first comprehensive survey of Nevada’s groundwater to discover new gold deposits and has acquired 11 exploration properties exhibiting groundwater chemistry similar to known gold mines.
For further information please visit our website at www.NevadaExploration.com or contact:
Wade A. Hodges,
President, CEO & Director
Nevada Exploration Inc.
Tel: (775) 359-7740
Fax: (775) 359-7741
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.
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.
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 and Marigold Gold Mines, which are ‘Adjacent Properties’ 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.