Nevada Exploration Inc. Uses Water Chemistry At Bull Creek To Discover Another Previously Unknown Hydrothermal System
February 23, 2009
Nevada Exploration Inc. (TSX-V: NGE) (“NGE”) is pleased to announce it has completed reducing the data for its Phase I drill program at Bull Creek, and has posted a series of detailed maps and cross sections on the company’s website: http://www.NevadaExploration.com. NGE’s initial identification of anomalous groundwater chemistry at Bull Creek has resulted in another successful test of the company’s groundwater chemistry exploration program: the discovery of a large area of hydrothermally altered bedrock containing geochemically anomalous gold-associated trace elements. These features of exploration significance are similar to those found at the nearby Sleeper Mine, which produced 1,700,000 ozs of gold and 1,900,000 ozs of silver from 1986 to 1996.
Phase I drilling at Bull Creek was specifically designed to test the concept that an undiscovered, potentially gold-bearing hydrothermal system is responsible for the anomalous gold and trace-elements discovered in the groundwater. NGE collected hydroprobe water samples to delineate the project’s groundwater chemistry, and completed a detailed soil sampling program to both verify and model the surface geochemistry. To further develop the project’s exploration model, NGE completed both a detailed gravity geophysical survey, to delineate areas where shallow bedrock was most likely located, and a detailed airborne magnetic geophysical survey, to better understand the different rock types and possible fault zones concealed by the large expanse of sand and gravel. As a final input to the Bull Creek exploration model, NGE used seismic reflection geophysics to test for deep-seated fault zones. NGE combined these data sets to develop the conceptual targets for Phase I drill testing.
During the Phase I program, NGE completed 18 reverse circulation (RC) drill holes. The holes ranged from 0.4km (0.25mi) to over 1.6km (1.0mi) apart, and were scattered across the 41km2 (16mi2) property area. The holes ranged in depth from 100m (300ft) to 300m (1,000ft). The drilling defined shallow bedrock along the eastern margin of the property, which ranged in depth from 15m (50ft) to 100m (300ft). Although the drilling encountered >200m (>650ft) intervals of hydrothermally altered and geochemically anomalous volcanic rock, the drilling did not encounter any potentially ore-grade gold values at the locations tested. However, the increase in alteration intensity and geochemically anomalous trace-elements seen in wide-spaced drill holes moving from west to east across the eastern half of the property suggests the edge of a significant new hydrothermal system of exploration significance has been discovered and additional drilling is warranted farther to the east; this conclusion is also supported by detailed gravity and air magnetic data.
These concept test, Phase I drilling results at Bull Creek are another important milestone for NGE: they show how groundwater chemistry can be used to efficiently and effectively reduce large, sand and gravel covered valley basins to much smaller, discrete exploration targets exhibiting a high potential for the discovery of new, potentially gold-bearing hydrothermal systems that justify more focused and intense exploration expenditures. These results add value to NGE’s ten other projects that were identified using the same groundwater chemistry exploration methodology, and they establish NGE as a source of high quality exploration projects for Joint Venture partners.
NGE is currently reducing data for the Hot Pot project and will provide a detailed news release summarizing the results when data reduction is completed.
Including Hot Pot, NGE has now completed Concept Test, Phase I drilling at three properties identified by anomalous groundwater chemistry. In each case, Phase I drilling has discovered large areas of completely covered, previously unknown, shallow, hydrothermally-altered and geochemically-anomalous bedrock. In each case, geological and geochemical patterns provide direction for additional drilling; however at this point, to complete further drilling, NGE requires 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. Positive results at each stage assure NGE’s commitment 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 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 several interested royalty and joint venture partners. While NGE remains focused on gold exploration, water chemistry is also very important to the search for geothermal power. NGE’s water chemistry database uniquely positions it to add value to the completely separate, growing geothermal industry in exchange for funding to pursue its primary business of gold exploration. Discussions with interested geothermal companies are in progress. NGE 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.