Nevada Exploration Inc. and McEwen Mining Inc. Establish New Gold Project South of Barrick’s Cortez Mine
September 24, 2012
Nevada Exploration Inc. (“NGE”) (TSX.V:NGE) is pleased to announce that McEwen Mining Inc. (“McEwen Mining”) has elected to designate a new gold project in Grass Valley, Nevada, as a Designated Property according to the generative Exploration Agreement previously announced on February 27, 2012. The Grass Valley 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 (see attached map), the world’s largest primary gold producer in 2011.
As per the terms of the Exploration Agreement, McEwen Mining has granted NGE a 30% carried interest in the Grass Valley Designated Property and paid NGE $73,500 USD. McEwen Mining is the project manager, has sole discretion on the nature and timing of all exploration and development activities, and is solely responsible for payment of all costs incurred in respect of the project. If McEwen Mining elects to continue to maintain the Grass Valley Designated Property, McEwen Mining will pay NGE $100,000 USD on the first through fourth anniversaries of acquiring the Designated Property, and then $250,000 USD on each subsequent anniversary. If McEwen Mining completes a Production Decision Report on the Designated Property that McEwen Mining deems sufficient to base a decision to commence production, the Designated Property will advance under a Joint Venture agreement, at which time both parties will be required to fund their pro rata share of project expenditures or be diluted. If either party’s interest is diluted below 10%, such party’s interest converts to a 2% NSR.
Grass Valley Property
NGE identified the Grass Valley target during its hydrogeochemistry sampling program completed as part of the generative Exploration Agreement with McEwen Mining. This previously unexplored, broad, elongate target area is coincident with a NNE lineament of upwelling groundwater that contains anomalous concentrations of gold and other trace elements associated with Carlin-type mineralization (e.g As, Sb and Tl), which suggests a possible underlying mineralized NNE trending structural zone. This inferred fault system lying along the west side of Grass Valley and controlling the anomalous hydrogeochemistry projects northward to the Cortez Hills Breccia Complex where the structural controls to mineralization and deep oxidation are still under investigation.
Four miles to the west of the Grass Valley Project, mineralized Lower Plate host rocks are exposed as a window through Upper Plate rocks at the Toiyabe mine site, a small Carlin-type gold deposit that produced approximately 89,000 ounces of gold from three small pits. Several of the SSE-trending folds exposed in the Toiyabe Mountains, and laying parallel to the Cortez-Battle Mountain Trend, project from the east flank of the Toiyabe Mountains to beneath the Grass Valley Property where they are cut by the major NNE-trending fault zone(s) inferred from the anomalous hydrogeochemistry.
Regional gravity data suggests the bedrock at the Grass Valley Project is covered by a thin veneer of sand and gravel to an estimated depth of approximately 100 metres (300 feet), which suggests both favourable exploration conditions and production economics should the project result in an economic discovery.
The combination of: (a) inferred NNE structures projecting from the Grass Valley Property to the Cortez Hills Breccia Complex; (b) SSE trending fold structures associated with the mineralized lower plate bedrock at the Toiyabe Mine projecting beneath the Grass Valley Project; (c) the expected shallow bedrock; and (d) the presence of elevated concentrations of gold and other trace elements associated with Carlin style mineralization in the groundwater at the Grass Valley Project together define a compelling new exploration target in an area of Nevada known for large, world class gold deposits, and NGE is very pleased to be working with McEwen Mining to advance the project.
For more information about NGE’s regional exploration program, which was responsible for identifying the Grass Valley Property, please refer to the presentations and material available on NGE’s website: http://www.nevadaexploration.com/investor_info/presentations/
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 “blind 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 ownership interests covering more than 19,000 hectares (73 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.
For further information please contact:
Vice President Corporate Development
Nevada Exploration Inc.
Tel: 1 (888) 263 2110
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.