Fletcher Junction Drill Results Identify New Gold-Bearing Hydrothermal System, and Confirm Water Chemistry Exploration Concept
June 23, 2008
Nevada Exploration Inc. (TSX-V: NGE) (“NGE”) is pleased to announce completion of phase I reverse circulation (RC) drill testing of its Fletcher Junction property. Management is pleased to report that all 9 drill holes completed to target depth encountered hydrothermally altered rocks containing geochemically anomalous gold and gold-associated trace elements, as well as anomalous gold and trace-element groundwater chemistry. The bedrock, the alteration, and the suite of gold-associated trace elements are similar to those found at the nearby Aurora mining district, noted for historic, high grade underground production. NGE believes the first phase drilling results at Fletcher Junction justify a much larger, phase II drilling program specifically designed to intersect ore-grade mineralization in what appears to be the center of the large hydrothermal system.
While significant intervals of potentially ore grade mineralization were not encountered in phase I drilling, management believes that the results at Fletcher Junction are substantive in that they demonstrate how NGE has used its unique and proprietary groundwater exploration technique to discover a new gold-bearing, hydrothermal system in a covered bedrock setting. Commenting on the results, Wade Hodges, President & CEO, said: “What we have done at Fletcher Junction is use our water chemistry technology to identify and vector into a previously undiscovered, gold-bearing hydrothermal system where only unaltered basalt covering alluvium were known to exist previously. This is an important milestone for NGE and the advancement of our exploration concept. We are very excited to follow-up on similar gold in groundwater anomalies at our other 10 properties where we will not be faced with the technical and logistical challenges of targeting beneath and drilling on top of basalt.”
ABOUT FLETCHER JUNCTION DRILLING
Fletcher Junction is the property of merit described in the NGE filing statement dated February 16, 2007, produced as per National Instrument 43-101 and available on http://www.sedar.com/. This report is in the process of being updated with the technical results of phase I drilling, results are summarized below.
The Fletcher Junction target was identified by sampling highly anomalous gold-bearing water from springs flowing out from beneath a recent basalt flow. A subsequent surface geochemistry survey along the edge of the basalt revealed a number of mineralized quartz boulders containing very high concentrations of gold. NGE believed the highly anomalous concentrations of gold in both the spring water and the quartz boulders along the edge of the basalt flow suggested the presence of a mineralized target beneath the basalt and alluvium.
The nature of the geologic setting, specifically the basalt covering the target, precluded the use of many conventional drill targeting techniques: soil geochemistry is not possible as there is no soil on top of the basalt; ground and air magnetic surveys are ineffective because the highly magnetic response of the basalt masks the response of the underlying geologic units; and prior to drilling, the unknown thicknesses of basalt, on top of alluvium, on top of possible hydrothermally altered volcanic rock, on top of denser bedrock complicate interpreting gravity data. The challenges associated with using conventional exploration techniques at Fletcher Junction afforded an excellent opportunity for NGE to demonstrate the power of water chemistry as an exploration tool.
Because the blocky basalt covering the target is rough, and the permitting requirements of the US Forest Service are burdensome, the first round of drilling at Fletcher Junction was designed to take advantage of natural travel corridors on top of the basalt, thus limiting the need for road construction, minimizing the environmental disturbance, and shortening the permitting process. The objectives of the first round of drilling were: 1) to test the initial 2,750m by 900m (9,000ft by 3,000ft) target with wide spaced, vertical holes to determine the size of the expected hydrothermal system and the nature of its primary, potentially ore controlling characteristics; and 2) to validate the concept that gold in groundwater can be used to identify a previously undiscovered, completely concealed, potentially gold-bearing hydrothermal system, where conventional techniques could not.
Thirteen holes, spaced an average of 500m (1,650ft) apart, were drilled with depths ranging from 152m to 295m (500 ft to 965ft) for a total drill footage of 3,416m (11,208ft). Nine of the 13 holes intersected bedrock at depths ranging from 122m to 253m (400ft to 830ft) – average bedrock depth was 213m (700ft). The four holes that did not encounter bedrock were stopped short of their intended target depths due to drilling difficulties. Two holes were abandoned in such a way that it will be possible to re-enter them at a later date. Final assay results have been received for 10 of 13 drill holes – the rest are expected within the coming weeks.
NGE is presently preparing a new Plan of Operations, to be submitted to the US Forest Service, for a 36 hole drilling program, which will include new road construction to get the drills as close to the target as possible. As the Fletcher Junction permitting process continues, NGE is using its two RC drill rigs at its other properties.
Subject to NGE’s employee stock option plan, NGE granted to one of its financial advisors the option to subscribe for 200,000 shares of NGE at a subscription price of $0.78 per share within a maximum of 5 years following the date of grant.
NGE is an exploration company focused, through its wholly-owned Nevada incorporated subsidiary Pediment Gold LLC, on gold exploration in Nevada. NGE is led by a highly experienced and historically successful exploration management team. NGE has developed a proprietary groundwater chemistry exploration technology and is the first to complete a comprehensive and consistently applied survey of Nevada’s groundwater chemistry specifically directed toward the discovery of new gold deposits. Management believes that the results of NGE’s groundwater chemistry program are significant in that they are demonstrating that Nevada’s known gold deposits exhibit recognizable groundwater chemistry signatures. NGE has identified and acquired several exploration properties with similar groundwater chemistry and is in the final stages of testing whether such water chemical signatures can be followed “up stream” to discover new gold deposits in much less time and for much less money than the conventional exploration approaches currently used by other exploration groups. NGE continues to refine and apply this technology to identify, acquire, further delineate and then drill test its own highly prospective exploration properties to return the maximum value of making a new gold discovery to shareholders. NGE is also in a unique position to add value to the Joint Venture opportunities presented by more conventional exploration groups.
The TSX-V has in no way passed upon the merits and does not accept responsibility for the adequacy or accuracy of this press release.
For further information please contact:
Wade A. Hodges
President, CEO & Director
Nevada Exploration Inc.
Tel: (775) 359-7740
Wade A. Hodges is the Qualified Person, as defined in National Instrument 43-101, and is responsible for the preparation of the technical and scientific information contained in this News 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.