Nevada Exploration Inc. and Northgate Minerals Corp. Sign Letter of Intent on the Awakening Gold Project, Nevada
April 14, 2010
Nevada Exploration Inc. (“NGE”) (TSX-V:NGE) and Northgate Minerals Corp. (“Northgate”) (TSX:NGX, NYSE AMEX:NXG) have signed a non-binding Letter of Intent (“LOI”), whereby Northgate may earn a joint venture interest in NGE’s Awakening Gold Project (“Property”).
Under the terms of the LOI, Northgate will have the option to earn a 51% interest in the Property by funding $4,100,000USD in qualifying expenditures and making $435,000USD in cash payments over 5 years. A cash payment of $87,000USD is due upon the signing of a definitive agreement, and the Year 1 work commitment of $500,000USD is a firm obligation. If Northgate completes the initial 51% earn-in, Northgate may earn an additional 14%, for a total of 65%, by completing a feasibility report. Once NGE and Northgate complete a definitive agreement, the companies will issue a further news release with additional details.
Wade Hodges, President and CEO: “This deal will be an important milestone for NGE. It will allow us to focus on our strength of using groundwater chemistry to identify new, previously undiscovered, gold bearing hydrothermal systems with significant upside potential, and allow Northgate to focus on its strength of property development and production. As we advance our current portfolio of properties and identify new projects, we will be looking to continue to use this model to match our projects with competent partners.”
About the Property
The Property consists of 420 claims (approximately 34km2) and is located 50km NNW of Winnemucca, Nevada, on the NW flank of the Slumbering Hills, in Humboldt County, Nevada. The Property covers the NW part of the historic Awakening mining district and adjoins the north end of the Sleeper Mine. The Sleeper Mine produced 1,660,000 ounces of gold and 2,300,000 ounces of silver from 1986 through 1996, and is currently owned by X-Cal Resources Ltd. X-Cal is actively developing the Sleeper project and has recently reported an updated NI43-101 compliant resource.
NGE’s Property is largely covered by a thin veneer of alluvium, and as a result, most of the Property has seen little historic exploration activity. In 2005, NGE’s regional groundwater chemistry reconnaissance program identified anomalous groundwater chemistry on the Property, specifically high levels of gold and other trace metals in the groundwater north of the Sleeper Mine. Based on the results of a further detailed groundwater chemistry survey, in 2008 and 2009, NGE completed systematic exploration for Sleeper-style mineralization on the Property using detailed gravity geophysics, air magnetic geophysics, and soil geochemistry, and the combined exploration dataset has identified several high priority targets showing responses similar to those reported at the Sleeper Mine.
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 proprietary groundwater chemistry exploration technology to explore for gold in Nevada’s covered basins where traditional exploration techniques are challenged. NGE has completed the first ever comprehensive survey of Nevada’s groundwater focused on discovering new gold deposits, and has demonstrated that Nevada’s gold deposits exhibit recognizable and measurable groundwater chemistry signatures. NGE has used its proprietary technology to identify, acquire, and advance 10 new exploration properties exhibiting groundwater chemistry similar to known gold mines.
ABOUT NORTHGATE MINERALS CORP.
Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. Northgate’s vision is to be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties. Northgate is forecasting gold production of 316,000 ounces in 2010.
For further information please visit our website at www.NevadaExploration.com or contact:
Wade A Hodges
President & CEO
Nevada Exploration Inc.
Tel: (775) 359-7740
Fax: (775) 359-7741
Wade A. Hodges, President & CEO, is the Qualified Person, as defined in National Instrument 43-101, and has prepared the technical and scientific information contained in this News Release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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.