Nevada Exploration Connects Groundwater Plumes to Bedrock Gold Mineralization at Kelly Creek


July 21, 2017


Nevada Exploration Inc. (“NGE” or the “Company”) (TSX-V: NGE; OTCQX: NVDEF) is pleased to report that the Scorpion sampling program at the Kelly Creek project is encountering significant enriched gold at the bedrock-alluvium contact.  The results of the Scorpion sampling program have established that the elevated gold and gold-associated trace-element geochemistry at Kelly Creek is consistent with the size and characteristics of the hydrothermal system associated with the nearby Marigold and Lone Tree gold deposits.

NGE’s Scorpion drill rig was custom-designed to provide low-cost, early-stage drilling for the purpose of collecting groundwater, alluvium, and bedrock geochemistry samples at NGE’s gold projects in Nevada’s highly-prospective and under-explored covered basins.  Based on the results of the Scorpion sampling program at Kelly Creek, NGE is successfully using its Scorpion drill rig to vector in to bedrock-hosted mineralization that can now be followed with conventional exploration methods.

NGE has completed 53 Scorpion drill holes at Kelly Creek, totaling approximately 4,560 m (15,000 ft).  The drill holes ranged in depth from 23 - 146 m (75 - 480 ft); and 38 of the 53 drill holes intersected bedrock.  In addition to sampling alluvium and bedrock at 1.5 m (5 ft) intervals, NGE collected approximately 490 groundwater samples, generally at 9 m (30 ft) down-hole intervals.  The Scorpion holes were focused along four fences across NGE’s primary targets defined by earlier, wider-spaced groundwater sampling on a regional structure known to control mineralization at the Marigold gold mine, as well as along four additional fences across parallel target areas.  Hole spacing varied from 50 - 400 m (160 – 1,312 ft) along the fences, which were spaced between 150 - 1,000 m (490 - 3,280 ft) apart.

The results of Scorpion sampling at Kelly Creek confirm that the enriched gold in groundwater seen in earlier programs is now supported by elevated gold and related geochemistry in both alluvium and bedrock at depth, as well as increasing concentrations of gold in groundwater at depth.  Together, the groundwater results define a hydrogeochemical plume of elevated gold and related elements measuring 2.2 km (1.4 mi) in strike length and 1.6 km (1 mi) in width, beneath 45 - 245 m (150 - 800 ft) of alluvial cover, which has now been closed off in one direction.  The bedrock and alluvium sampling results within the hydrogeochemical plume have defined areas of significant enrichment of gold and related trace elements, including most significantly one drill hole containing 11 m (35 ft) averaging 0.095 ppm Au at the bedrock-alluvium contact from 111 - 120 m (365 - 400 ft), which included two 3 m (10 ft) intervals averaging 0.149 ppm Au and 0.120 ppm Au respectively, as well as shorter intervals at the bedrock-alluvium contact containing from 0.100 ppm Au to 0.153 ppm Au in six other drill holes.

By establishing the presence of bedrock-hosted material containing potentially ore-grade gold values with similar host rock, alteration, structural and geochemical characteristics to the orebodies associated with the Marigold (>8 Moz Au) and Lone Tree (>5 Moz Au) gold deposits, NGE believes the Scorpion sampling results confirm that the hydrothermal system that generated both deposits was also active in the Kelly Creek project area, which is now under cover.  Most importantly, based on the results of groundwater, alluvium, and bedrock sampling, NGE believes that the geochemical footprint at Kelly Creek is consistent in terms of size to suggest that the hydrothermal system was active at a similar scale as at Marigold and Lone Tree, and potentially associated with a similar volume of mineralized material.

Discussing the results, NGE’s CEO, Wade Hodges explains: “This is the next important milestone for NGE.  We’ve followed up on the targets identified by our shallower groundwater sampling with deeper sampling using our new Scorpion drill rig, and we are successfully vectoring in to a mineralized system that has the scale to be associated with a Tier 1 gold deposit.  Our process is working, and we are now well positioned to proceed with conventional step-out drilling to follow the mineralization at the bedrock-alluvium contact, which remains open in several directions including at depth, as well as to continue the broader program to the north.  We are pioneering the use of low-cost drilling to systematically model 3D groundwater and alluvium geochemistry to explore in covered settings.  By deliberately varying our drill hole spacing, we are establishing the appropriate sampling density to provide the up-until-now missing scale of information to transition from regional-scale exploration to project-scale drilling based on the distribution of gold and related elements in each sampling medium.  With this knowledge, we are improving our workflow to most effectively deploy our Scorpion drill rig, and we look forward to leveraging this experience as we continue to drill at Kelly Creek and our other Nevada projects.”


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’s team has spent the last decade integrating the use of hydrogeochemistry (groundwater chemistry) with conventional exploration tools to develop a Nevada-specific regional-scale geochemistry exploration program.  With innovative technology, NGE has completed the world’s largest groundwater sampling program for gold exploration, collecting more than 5,000 samples, to evaluate Nevada’s covered basins for new gold exploration targets.  To advance follow-up targets, NGE has overcome the high drilling costs that have previously prohibited the wide-spread use of drilling as a prospecting tool by developing its Scorpion Drill Rig, Nevada’s first truck-mounted small-diameter RC drill rig specifically tailored to the drilling conditions in Nevada’s basins (analogous to RAB drilling in other parts of the world).

By integrating hydrogeochemistry and early-stage low-cost drilling with conventional exploration methods, NGE is generating and advancing a significant portfolio of gold exploration projects in Nevada.  NGE and its exploration partners have now drilled more than 18,000 metres on targets defined by its exploration program, and at several projects have discovered new large hydrothermal systems, with spatial extents covering several square kilometres, defined by system-appropriate alteration in bedrock over significant drill intervals (>100 feet) containing widespread low-level gold (>100 ppb) and supporting trace-element lithogeochemistry consistent with the geologic and geochemical footprints of Nevada’s large gold deposits.  These are the types of footprints that are associated with multi-million-ounce gold deposits in Nevada, and with these results NGE believes that it has demonstrated the validity of its integrated exploration program to discover and advance new high-quality gold targets in otherwise blind settings.

By overcoming the challenges and radically reducing the costs of exploring in Nevada’s covered basins, NGE is taking meaningful steps to open this important new search space up for district-scale exploration.  NGE’s business model is to create shareholder value by leveraging its properties and technology through generative exploration, joint ventures, and other exploration partnerships.


For further information, please contact:

Investor Relations
Nevada Exploration Inc.
Email: info@nevadaexploration.com
Tel: +1 (604) 601 2006
Website: www.nevadaexploration.com

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.

Wade A. Hodges, CEO & Director, 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.

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.

A more complete discussion of the risks and uncertainties facing the Company is disclosed in the Company’s continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.