Nevada Exploration Inc. and Spruce Ridge Resources Ltd. Agree to Terminate the Fletcher Junction Option Agreement
September 30, 2013
Nevada Exploration Inc. (TSX.V:NGE) (“NGE”) announces that NGE and Spruce Ridge Resources Ltd. (“Spruce Ridge”) have agreed to terminate the Exploration and Option to Enter Joint Venture Agreement (“Agreement”) at the Fletcher Junction gold project in Mineral County, Nevada. After completing two core drill holes, totalling approximately 1,200 metres (4,000 feet), Spruce Ridge has indicated that it believes the results do not lead to a vector that can be easily followed with the resources Spruce Ridge has available. NGE has agreed to accept a payment of $22,000USD from Spruce Ridge to settle Spruce Ridge’s outstanding obligations under the Agreement. With the termination of the Agreement, Spruce Ridge retains no interest in the project.
Specifically, discussing its decision, Spruce Ridge reported: “The second diamond drill hole at Fletcher Junction (FJ15) gave results very similar to the first hole (FJ14); gravels overlying bedrock contained locally anomalous gold. The bedrock, which (also like FJ14) comprised a sedimentary sequence composed of reworked pyroclastic and epiclastic volcanic rocks, was assayed where there were signs of silica-sulphide mineralization, and these sections yielded only minimal gold values, but did contain anomalous silver, arsenic, mercury, molybdenum and antimony, all pathfinder elements for epithermal gold systems, and all very similar to the concentrations in FJ14. The results do not lead to a simple vector indicating which direction to go towards the gold source; following up these indications would have entailed a multi-hole core drilling program, with each hole approximately 2,000 feet deep. The Company would require considerable funding to meet its commitments and the dilution to existing shareholders would be significant.”
NGE wishes to thank Spruce Ridge for advancing the Fletcher Junction gold project with these two very important drill holes. The significant intervals of highly anomalous trace-element concentrations in the first drill hole showed few visible marks and these important geologic units were only identified by the lab assays results. Only approximately 40% of the core samples from Spruce Ridge’s second drill hole have been assayed. NGE plans to assay the remaining approximately 60% of the second drill hole and to provide another project update once it has updated the project’s exploration dataset with these additional lab results.
About 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 covered 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 new gold projects, and with interests in over 120 square kilometres (46 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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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.