McEwen Mining Inc. Withdraws From Grass Valley Exploration Agreement, and Nevada Exploration Inc. to Gain 100% Ownership of Grass Valley Property
July 31, 2014
Nevada Exploration Inc. (TSX.V:NGE) (“NGE”) announces that it has received formal notice of McEwen Mining Inc.’s (“MUX”) election to withdraw from the Generative Exploration Agreement (the “Agreement”) under which NGE and MUX have been working to advance new exploration targets in a 25,000 hectare (95 sq mi) study area in Grass Valley in north central Nevada (the “AOI”). Under the agreement, MUX established the Grass Valley Designated Property (the “Property”). As provided by the Agreement, NGE has delivered notice to MUX of NGE’s desire for MUX to convey the Property to NGE by quitclaim deed, subsequent to which NGE will hold a 100% interest in the Property.
The Project consists of approximately 59 square kilometres (23 sq mi) of unpatented mining claims, and is located along the western side of Grass Valley in central Nevada, approximately 16 kilometres (10 mi) south of Barrick Gold Corp.’s Cortez Hills, the world’s largest primary gold producer in 2011.
Since entering into the Agreement in February 2012, MUX and NGE have worked together within the AOI and on the Property to: (1) collect groundwater, rock, soil, and vegetation geochemistry samples; (2) map exposed range front geology; (3) complete a detailed gravity geophysics survey; and (4) acquire and reprocess historic seismic geophysical data. Earlier this year, MUX completed one 811 metre (2,660 ft) drill hole on the Property. Also in 2014, approximately 2,400 metres (8,000 ft) of drill cuttings and drill logs from six geothermal exploration drill holes completed between 2005 to 2008 by a geothermal exploration company) became available for public review. Five of the six geothermal drill holes were located on the Property, and NGE is very pleased to be able to incorporate this important geological data, together with the data acquired by MUX and its drill hole, into the Project exploration dataset.
While only a very limited subset of the geothermal drilling was analyzed for trace element geochemistry, NGE is very encouraged by the presence of significant intervals of silicified limestone containing arsenopyrite and “vuggy” silica, as well as anomalous arsenic concentrations ranging from 100ppm to 534ppm over a large area. These values are significantly higher than the arsenic concentrations found in the MUX drill hole. To maximize the value of the data from the geothermal drilling, NGE expects to submit approximately 370 drill samples from the geothermal drilling for complete geochemical analysis.
Discussing the transfer of ownership of the Property, and the recently acquired drilling data, Wade Hodges, Chairman and CEO explains: “With each additional new dataset, we believe more strongly that Grass Valley represents one of the most compelling grass roots exploration projects anywhere, and we are excited to now own 100% of the Property. In addition to the new data MUX collected on the Property, the recently acquired geothermal drilling logs and cuttings give us the opportunity to analyze the covered bedrock in the south end of the Property without incurring any drilling costs. The results will add considerably to our ability to vector the geology and geochemistry at the Property.”
NGE expects to issue a further news release in the coming months once its exploration team has completely analyzed the geothermal drill cuttings and obtained all exploration data from MUX.
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 135 square kilometres (52 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, Chairman & 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.