Nevada Exploration Inc. Reports New Drill Data Confirming the Presence of a Large, Gold-Bearing Hydrothermal System at Grass Valley
October 26, 2015
Nevada Exploration Inc. (TSX.V: NGE) (“NGE” or the “Company”) is pleased to announce that it has received new analytical results from eight drill holes at its 100% owned Grass Valley Project. This new drill hole information confirms the presence of a large, gold-bearing hydrothermal system consistent with the geologic setting of a Carlin-style gold deposit.
The Grass Valley Project consists of approximately 15.5 square kilometres (6 square miles) of unpatented mining claims, located along the western side of Grass Valley in central Nevada, approximately 16 kilometres (10 miles) south of Barrick Gold Corp.’s Cortez Hills mine, one of the largest primary gold producing mines in the world. NGE identified the Grass Valley Project in 2012 as part of a targeted reconnaissance groundwater chemistry survey using NGE’s groundwater sampling technology. Applying this technology, the Company delineated a 16 kilometre (10 mile) long by 3 kilometre (2 mile) wide target at the Grass Valley Project defined by elevated concentrations of gold and gold-associated trace elements in groundwater.
In 2014, NGE acquired approximately 2,400 metres (8,000 feet) of drill cuttings and drill logs from seven historic (2005 to 2008) geothermal exploration drill holes located on and around the southern end of the Grass Valley Project (the “geothermal holes”). Obtaining these samples has provided NGE a significant opportunity to analyze the bedrock geology beneath the southern part of the Grass Valley Project without incurring any drilling cost. NGE has now received complete geochemical analyses for 367 sample intervals from the geothermal holes, along with analyses for 30 drill sample intervals (representing 182 metres or 600 feet) from another drill hole that had been drilled at the north end of the Grass Valley Project but had not yet been assayed.
The new results show a clear geologic change between the drill hole to the north and the geothermal holes to the south. The geothermal holes show marked enrichment in arsenic, antimony, and sulfur, elements commonly associated with Carlin-style gold deposits. Geothermal drill hole TG3 encountered the most continuous interval of anomalous geochemistry from the top of hole to the bottom at 297 metres (975 feet), with gold concentrations ranging from 3 ppb to 45 ppb (AVG 12 ppb), arsenic concentrations ranging from 60 ppb to 636 ppb (AVG 289 ppb), antimony concentrations up to 85 ppb (AVG 38 ppb), and sulphur concentrations ranging from 2,150 ppm to 36,300 ppm (AVG 19,761 ppm). The other geothermal drill holes showed narrower zones of elevated silver (up to 16.7 g/t), arsenic (up to 1,925 ppm), antimony (up to 86 ppm), and mercury (up to 1.1 ppm). Additionally, TG3 encountered significant intervals of silicified limestone and elevated concentrations of sulfur coincident with the visual identification of increased pyrite, which is likely arsenopyrite, based on an associated increase in iron and arsenic.
NGE believes the new data confirm the presence of favorable host rock in a complex structural setting containing meaningful concentrations of gold and gold-associated trace elements, and exhibiting the features and scale of hydrothermal alteration consistent with a Carlin-style gold deposit, all at a much shallower depth than previously believed. NGE believes that the addition of the new results, along with the other work to date on the Project, solidify the Grass Valley Project as one of the most important new exploration projects in Nevada.
Wade Hodges, CEO explains: “The importance of this new data is that it increases our confidence that we are looking at a system of the size required to support a large deposit, exhibiting all of the correct Carlin-style geology, geochemistry, structure, and stratigraphy consistent with gold mineralization in this part of Nevada. With this evidence, we believe strongly that Grass Valley represents one of the most compelling grass roots exploration projects in Nevada today. Furthermore, these results provide another concrete example of how we are using our groundwater chemistry technology to lead the industry to identify and advance new covered gold projects in Nevada.”
For a more thorough explanation of the Grass Valley Project please visit the Presentation Page of the company’s website: http://www.nevadaexploration.com/presentations/
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. 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 large portfolio of new gold projects, and has established itself 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 and development.
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Wade A. Hodges is the Qualified Person, as defined in National Instrument 43-101, and has prepared the technical and scientific information contained in this News Release.
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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.
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.
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