US Gold Engages Nevada Exploration to Complete a Hydrogeochemistry Exploration Program at its Gold Bar and Tonkin Properties
June 6, 2011
Nevada Exploration Inc. (“NGE”) (TSX-V:NGE) is pleased to announce that US Gold Corporation (“US Gold”) (NYSE: UXG) (TSX: UXG) has engaged NGE to conduct a hydrogeochemistry exploration program on US Gold’s large land position surrounding its Gold Bar and Tonkin Properties in Nevada (“Project Area”).
US Gold’s Gold Bar and Tonkin Properties are located on the south-central part of the prolific Eureka-Battle Mountain gold trend in north-central Nevada. US Gold’s land position is located approximately 16 km (10 miles) SE of Barrick’s Cortez gold mine complex (14.5 MMOz as of December 31, 2010) and approximately 35 km (22 miles) NW of Barrick’s Ruby Hill gold mine (1.1 MMOz as of December 31, 2010). The Project Area totals approximately 430 sq-km (165 sq-mi) and contains considerable areas of highly prospective but covered bedrock. US Gold has chosen to work with NGE specifically because of NGE’s expertise in exploring for gold mineralization in covered bedrock settings using its industry leading hydrogeochemistry exploration technology.
Under the agreement, NGE will complete a groundwater sampling and analysis program across the Project Area to identify new exploration targets, and in return, US Gold will pay NGE agreed upon rates for its services, as well as grant to NGE a 0.5 to 1.0% Net Smelter Return Royalty on resources within the Project Area that are not already contained in NI 43-101 compliant resource areas referred to in reports published prior to the date of the agreement.
Discussing the agreement, Wade Hodges, NGE’s President and CEO: “Working with US Gold marks a new chapter for NGE. We are leveraging our significant investment in our technology to advance US Gold’s project and expose our shareholders to considerable upside while getting paid to do so. This is an opportunity to demonstrate the value of our exploration technology to explore for gold in covered bedrock settings.”
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 30M 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.
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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.