Nevada Exploration Inc. Letter to Shareholders
January 16, 2016
It is an exciting time to be a shareholder of Nevada Exploration Inc.! The Company is engaged in gold exploration in Nevada, USA, where more gold is mined per unit area than in any other jurisdiction in the world. The Company’s goal is to discover new gold deposits hidden under the sand and gravel in the valleys of Nevada. The Company’s management team is experienced, knows what they are looking for, and has an incredible discovery track record in Nevada where they have already been directly involved in gold discoveries totaling more than 15% of the gold ever mined in Nevada.
Nevada has produced more than 200 million ounces of gold, which has allowed Nevada to claim the title of the world’s highest gold producer per unit area. However, continued exploration using well-worn tools in already well-explored settings keeps delivering lower and lower rates of discovery. Nevada Exploration Inc. was founded specifically to find ways to reverse the industry trend of spending more to find less, and we believe the key to finding the next wave of discoveries in Nevada is to develop new exploration methods to cost effectively explore in Nevada’s covered valleys.
The gold mineralizing events responsible for Nevada’s prolific gold endowment occurred long before the block faulting that created the basin-and-range topography of valleys and mountains that shape Nevada today. Accordingly, the distribution of Nevada’s gold deposits is largely independent of the distribution of mountains and valleys. Approximately 70% of all the gold ever mined in Nevada has come from the 40% of the state that is exposed in the mountains. More than half of Nevada’s bedrock is hidden under sand and gravel in its valleys and has been significantly underexplored due to the limitations of conventional exploration methods. As a result, there should be an equivalent amount of gold in Nevada's valleys waiting to be discovered. Nevada Exploration Inc. believes that Nevada’s remaining gold endowment presents one of the most compelling exploration opportunities today. The key to exploiting this opportunity is finding the tools to explore under cover, in the valleys.
Nevada Exploration Inc. (“NGE”) has spent more than ten years developing new technology to explore for gold in Nevada. What NGE has been able to do is adapt groundwater chemistry exploration methods used in other industries to search for gold in Nevada’s covered valleys. NGE systematically analyzes samples of groundwater to detect unusual concentrations of gold and other elements and then follows that groundwater to its covered bedrock source. Sampling groundwater provides a direct link to the chemistry of the covered bedrock. The US Geological Survey tested this concept at the hidden Twin Creeks gold discovery over twenty years ago. This US Geological Survey work provided proof of concept: groundwater samples taken closer to the Twin Creeks gold deposit had elevated levels of gold and other metals associated with the gold deposit.
NGE built on the initial observations of the US Geological Survey and started a hydrogeochemistry database with more than 40,000 historic public-domain (legacy) groundwater samples to build the largest hydrogeochemistry database in Nevada. Radical improvements in laboratory equipment, driven largely by environmental concerns, allowed NGE to improve sampling, analytical, and quality control protocols. NGE has now created the infrastructure to conduct reconnaissance and detailed groundwater sampling focused on the remaining prospective covered areas within Nevada and is well-along in completing the first ever comprehensive and systematic groundwater sampling program in Nevada. NGE has pioneered the use of its wholly-owned Geoprobe specifically for sampling groundwater in the unique conditions encountered in Nevada. NGE has added more than 5,000 new groundwater samples, which include high-quality, ultra-trace gold analyses plus 80 other trace elements, to the legacy database. The Company has successfully used its hydrogeochemistry database to develop an exploration pipeline that is now producing specific targets worthy of being advanced using more conventional exploration methods.
NGE has actively advanced five projects which include two in Lander County and three in Humboldt County. The Company’s Lander County projects are located in Grass Valley between 10 and 32 miles south of Barrick Gold Corporation’s Cortez Gold Mine, one of the world’s largest and lowest cost gold mines. These projects represent compelling new gold exploration targets in a region of Nevada known for large, world-class gold deposits.
Two of the Company’s Humboldt County projects are located in 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, Converse, Trenton Canyon and Copper Canyon). NGE is now one of the largest property holders in the Kelly Creek Basin, along with Newmont Mining Corporation which controls the majority of the alternating sections. The bedrock in the Kelly Creek Basin is covered by a layer of sand and gravel. Due to its close proximity to world-class gold deposits and the widely-distributed, highly anomalous gold in groundwater, the large Kelly Creek Basin project area represents a compelling exploration target in an important part of Nevada.
NGE’s last project in Humboldt County is located directly north of the Sleeper Gold Mine, a former high-grade open-pit gold producer that operated from 1986 until 1996. Projections of favourable lithology, structure, and alteration at regional, district and property scales suggest that potentially important gold-silver mineralization may be located within economic depths beneath the cover at this project.
The Company now plans to continue the exploration work completed to date, refine the targets and ultimately drill test some of its projects where appropriate. Additionally, the Company plans to raise its profile in the industry and the market to both increase its shareholder base and attract opportunities to leverage its significant investment in the hydrogeochemistry exploration technology by devoting a larger part of its finances on this agenda. Nevada Exploration Inc. is one of only a few companies uniquely positioned to benefit from potentially several discoveries made from the development and application of a new and innovative exploration technology to the covered basins of Nevada. The biggest rewards in the industry often occur when a new discovery is made!
We welcome you as shareholders to participate in the potentially significant rewards of building a successful gold exploration company.
Nevada Exploration Inc.
Dennis L. Higgs, B.Comm.
Nevada Exploration Inc. periodically sends news via email to its shareholders and interested investors. If you would like to receive these communications, please sign up to receive Nevada Exploration news releases at: www.nevadaexploration.com/investor_info/sign_up/
For further information please contact:
Nevada Exploration Inc.
Tel: +1 (604) 601 2006
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 news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws, including, without limitation, expectations, beliefs, plans, and objectives regarding projects, potential transactions, and ventures discussed in this release.
Wade A. Hodges, CEO of 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.
In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions, regarding, among other things, the assumption the Company will continue as a going concern and will continue to be able to access the capital required to advance its projects and continue operations. While the Company considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.
In addition, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. 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.
A more complete discussion of the risks and uncertainties facing the Company is disclosed in the Company’s continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.