Hot Pot Gold Project Reverts to Nevada Exploration Inc.
August 16, 2011
Nevada Exploration Inc. (“NGE”) (TSX-V:NGE) reports that International Enexco Ltd. (“Enexco”) (TSX-V:IEC) has withdrawn from the Exploration and Option to Joint Venture Agreement on NGE’s Hot Pot Gold Project in the Kelly Creek Basin, in north-central Nevada, and as a result, Enexco retains no interest in the project.
In 2009 and early 2010, Enexco completed an 11 hole, 3,462 metre (11,360 ft) core drilling program at Hot Pot to collect stratigraphic information and test for mineralized structures beneath the alluvial cover. Enexco’s drilling successfully encountered weak, but widespread anomalous gold values in all 11 holes. Importantly, the results showed that the anomalous gold values at Hot Pot are associated with increased copper values, an association that is related to ore-grade gold mineralization within the Marigold mine complex 9 km (6 miles) to the south-southwest. In addition, the results included anomalous silver concentrations, including one 4.57 metre (15 ft) interval averaging 15.5 gpt silver, as well as several other trace element distribution patterns indicative of a large hydrothermal system.
NGE believes that Enexco’s exploration program has added valuable stratigraphic and structural information to the Hot Pot project and that the results have further confirmed the alteration and mineralization characteristics at the project are similar to the ore controlling features at Marigold. With the Hot Pot project now back under NGE’s control, NGE is pleased to be able to combine the project with NGE’s much larger Kelly Creek property to the north – more information and map available at:
http://www.nevadaexploration.com/properties/kelly_creek/overview/. Together, these two NGE projects total approximately 78 sq km (30 sq miles) and cover much of the northern part of the Battle Mountain – Eureka Gold Trend within the prolific Kelly Creek Basin, between multi-million ounce gold deposits on the north (Twin Creeks, Getchell, Turquoise Ridge, and Pinson) and south (Lone Tree, Marigold, Trenton Canyon, Converse, Buffalo Valley, Copper Basin, and Phoenix). Recently, a geothermal exploration group completed a multi-million dollar geophysical survey across the project area. NGE is combining the new geophysical data with the Enexco drilling results and expects to soon present the updated exploration dataset to interested groups to find a new exploration partner for this important pediment target.
Nevada Exploration Inc.
NGE is an exploration company focused on gold in Nevada. NGE is led by an experienced management team that has been involved with the discovery of more than 30 million ounces of gold in Nevada.
NGE is aggressively applying the latest in “blind deposit” exploration technology to identify, acquire, and advance new exploration properties in Nevada’s highly prospective, yet underexplored covered basins. Specifically, NGE has developed proprietary hydrogeochemistry (groundwater chemistry) exploration technology to explore for gold in Nevada’s covered basins where traditional exploration techniques are challenged.
Using its industry leading exploration technology, NGE has assembled a portfolio of nine new gold projects, and with over 20,000 hectares (75 sq mi), is evolving as a major player in this world class jurisdiction. NGE’s business model is to leverage its properties and technology to create shareholder value through generative exploration, joint ventures, and other exploration partnerships.
For further information please contact:
Vice President Corporate Development
Nevada Exploration Inc.
Tel: (775) 359-7740
Wade A. Hodges, President & CEO, Nevada Exploration Inc., 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.