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To date, NGE has completed the following exploration stages at Hot Pot (images are from Hot Pot):

 

Phase I Drilling

  • Nine, Vertical Reverse Circulation Drill Holes

In 2005, based upon encouraging results from a reconnaissance ground water chemistry sampling program, NGE completed a Phase I drilling program at Hot Pot to examine the target’s underlying geology and its potential for mineralization.  The program consisted of nine, widely-spaced RC drill holes ranging in depth from 92m (300ft) to 190m (620ft), for a total of 1,195m (3,900ft).

All nine drill holes successfully encountered hydrothermally altered bedrock containing anomalous gold and associated trace-element chemistry.  In all nine holes, bedrock was covered by less than 70 metres (230ft) of alluvium.

These encouraging results marked an important milestone in the development of NGE’s groundwater chemistry exploration program because they demonstrated how, with just a few groundwater samples, NGE’s hydrogeochemistry exploration program was able to identify a previously unknown, completely covered target, with significant exploration potential.

 

Hydrogeochemistry

  • 200 Groundwater Chemistry Samples

In 2006 and 2007, NGE used its Hydroprobe equipment to complete the exploration industry’s first, regularized groundwater chemistry sampling program over a completely sand and gravel covered target area.  NGE has collected 200 samples on a 400m (1,300ft) grid across the property.

The results of the survey increased both the magnitude of the groundwater chemistry anomaly and the size of the target.  The concentrations of gold in the groundwater are in the same order of magnitude as that found in the groundwater associated with the major gold mines located elsewhere in the Kelly Creek Basin.

 

Soil Geochemistry

  • 1,211 Samples along 11 Survey Lines

In 2006 and 2007, NGE completed soil geochemistry surveys at Hot Pot to detect the possible vertical migration of gold and trace elements from the underlying bedrock.  NGE collected 1,211 samples – half were collected every 50m (164ft) along 11 east-west sample lines, and the other half were collected on a wider spaced grid.

The soil geochemistry results delineated several potential structural targets similar in size and shape to those identified at the nearby Lone Tree and Marigold gold mines.  The anomalous gold and trace element soil chemistry is coincident with the anomalous gold and trace element chemistry in groundwater.  The surveys confirmed the presence of anomalous gold and trace elements in a medium other than groundwater, and have further suggested the presence of structurally controlled gold mineralization beneath the property.

 

Seismic

  • Two 4 Kilometre Seismic Lines

In 2007, NGE completed two 4 km (2.5 Mile) east-west seismic geophysics lines across the property to test for deep-seated, steeply dipping fault zones.  Geophone receiver groups were spaced every 55 feet along the lines, and 2.2 pound explosives were detonated at 160 foot intervals to generate the seismic energy.

The program was successful in that the results show shallow bedrock, steeply dipping fault zones, clear geologic offsets along faults, and several horst and graben features.  The seismic lines confirmed that the groundwater chemistry target is underlain with a structural fabric that could be a conduit for mineralization.

 

Gravity

  • 522 Gravity Stations (200m Grid)

In 2008, NGE completed a detailed gravity geophysical survey at Hot Pot to estimate the depth to bedrock, identify possible fault offsets, and differentiate changing rock types.  NGE obtained gravity readings at 522 stations on a 200 meter grid for a total of 20 km2 (8 mi2) of new gravity data.

The survey successfully identified significant areas where bedrock is believed to be shallow, and delineated sharp changes in the slope of the underlying bedrock that coincided with the potential fault zones identified by seismic geophysics.

 

Phase II Drilling

  • Ten, Vertical Reverse Circulation Drill Holes

In 2008, NGE completed a Phase II shallow drilling program at Hot Pot to drill through alluvium and a short distance into bedrock to examine target’s underlying geology and further explore the property’s potential for mineralization.  The program consisted of ten, RC drill holes ranging in depth from 50m (165ft) to 175m (575ft), for a total of 1,086m (3,565ft).

All ten drill holes successfully encountered hydrothermally altered bedrock containing anomalous gold and associated trace element chemistry.  Bedrock was covered by less than 83 metres (275ft) of alluvium in seven of ten holes and less than 152m (500ft) in the other three.