Nevada Exploration Demonstrates Value Of Groundwater Chemistry With Discovery Of Gold-Bearing Hydrothermal System At Fletcher Junction
December 18, 2008
Nevada Exploration Inc. (TSX-V: NGE) (“NGE”) is pleased to announce it has received the final assay results for the 13 hole, Phase I drill program at Fletcher Junction, and has reduced the data to a series of maps and cross sections that can be reviewed at:
http://www.nevadaexploration.com/_resources/FJ_Phase_I_Drilling_Techncial_Summary_12-18-08.pdf?v=0.411. Management is pleased to report that the initial identification of anomalous groundwater chemistry at Fletcher Junction has resulted in a successful concept test: the discovery of a large area of hydrothermally-altered bedrock containing geochemically anomalous gold and gold-associated trace elements. These features of exploration significance are similar to those found at the nearby Aurora Mining District, which contained 3,200,000 total ounces of gold.
As detailed in previous news releases, Phase I drilling was designed to test the concept that an undiscovered gold-bearing hydrothermal system is responsible for the anomalous gold in groundwater found at Fletcher Junction. To minimize exploration costs during early concept development, NGE positioned the Phase I drill holes along natural access corridors on top of the Aurora Crater lava flows. Vertical, percussion drill holes successful identified the lateral movement of anomalous groundwater; eroded, altered rock; and altered, geochemically anomalous bedrock. NGE has submitted a new Plan of Operations to the US Forest Service to complete a target-delineation, Phase II drill program consisting of angled core holes designed to test the vertical fault zones believed to contain the ore-grade gold mineralization that sources the anomalous gold in groundwater, alluvium, quartz boulders, and bedrock at Fletcher Junction.
The Fletcher Junction Phase I drill results are significant and represent an important milestone for NGE: they demonstrate how NGE is using groundwater chemistry to successfully discover new, untested, gold-bearing hydrothermal systems in covered bedrock settings. These results add value to NGE’s other ten projects that were identified using the same groundwater chemistry exploration technology, and they establish NGE as a source of quality exploration projects for potential Joint Venture partners.
NGE is currently reducing data for Hot Pot, Bull Creek, and Awakening, and will provide detailed news releases summarizing the drilling results for each project as they become available. In each case, concept test, Phase I drilling on targets identified by anomalous groundwater chemistry have discovered large areas of shallow, hydrothermally-altered bedrock containing anomalous gold and trace-element chemistry. In each case, additional drilling is justified.
During 2007 and 2008, increased exploration, development, and mining activity in Nevada led to increased exploration costs and delayed results throughout the industry. NGE has completed drilling at three properties, but to complete further drilling, NGE will require additional financing.
NGE management believes that under the prevailing market conditions, it is prudent to preserve capital. NGE has stopped all drilling, minimized field and office staff, and reduced management salaries. NGE has paid all major land holding costs until September 1, 2009; and all accounts payable are current. NGE is actively looking at ways to advance its exploration program while balancing both shareholder risk and dilution in a challenging financial environment. NGE remains committed to the continued development of its industry leading, groundwater chemistry exploration program. NGE has begun discussions with interested royalty and joint venture partners, and is also considering an equity financing.
NGE is an exploration company focused on gold exploration in Nevada. NGE is led by an experienced and historically successful exploration management team. NGE has developed a proprietary groundwater chemistry exploration technology and is the first to complete a comprehensive survey of Nevada’s groundwater to discover new gold deposits. Management believes the results of NGE’s groundwater chemistry program are significant in that they demonstrate Nevada’s gold deposits exhibit recognizable and measurable groundwater chemistry signatures. NGE has identified and acquired exploration properties exhibiting groundwater chemistry similar to known gold mines, and is now testing whether such water chemistry signatures can be followed “up stream” to discover new gold deposits. NGE continues to refine and apply this technology to identify, acquire, further delineate, and either drill test or joint venture prospective exploration properties to return maximum shareholder value.
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.