Nevada Exploration Drilling Enlarges Target at South Grass Valley Project, Battle Mountain – Eureka Trend, Nevada
January 23, 2019
Nevada Exploration Inc. (“NGE” or the “Company”) (TSX-V: NGE; OTCQB: NVDEF) is pleased to provide an update from its ongoing core drilling program at South Grass Valley, including assay results from drill hole SGVC005 and early logging from hole SGVC006.
As wide-spaced step-outs, SGVC005 and SGVC006 now establish that the thick intervals of favourable “lower-plate” carbonate host rocks exhibiting intense hydrothermal-alteration and significant concentrations of Carlin-type gold deposit (CTGD) pathfinder elements seen in holes SGVC002, SGVC003, and SGVC004 (together defining a NNW-SSE strike length of at least 2,500 metres), extend at least 400 metres in an E-W direction. By adding this third dimension (width), these results further quantify the large scale of this important new exploration target.
As described in the Company’s news release dated December 13, 2018, SGVC005, located 400 metres west of SGVC004, encountered a sequence of carbonaceous and calcareous lower-plate stratigraphy right from the top of bedrock at 159 metres (below the gravels) to the bottom of the hole at 595 metres, including an intensely-altered 100-metre-thick debris-flow breccia unit containing secondary pyrite and multiple cross-cutting fracture zones. Similar to SGVC004, the assay results for SGVC005 show anomalous and highly-anomalous Carlin-type gold deposit pathfinder elements across a thick (225 metre) interval, with increasing gold and pathfinder values within narrow fractures (gold up to 132 ppb, thallium up to 1.79 ppm, antimony up to 326 ppm, mercury up to 2.69 ppm, and arsenic up to 1,000 ppm, together the highest concentrations seen at the Project to date). NGE has added the downhole strip log for SGVC005, with assays for gold and CTGD pathfinders, plus core photos, to the Project datafile available at: https://www.nevadaexploration.com/_resources/January_2019_South_Grass_Valley_Data_Package.pdf?v=0.438.
From SGVC005, at the south end of the Project, NGE returned to the north end of the Project for SGVC006, 600 metres northwest of SGVC002. SGVC006 entered lower-plate limestone at 158 metres below the gravels, which continued to the bottom of the hole at 650 metres. The upper part of SGVC006 showed alteration features similar to the upper part of SGVC002, with decalcification, dissolution, and disruption textures. The bottom 230 metres of SGVC006 encountered black, carbonaceous, debris flows with significant diagentic pyrite exhibiting intense silicification, brecciation and high levels of secondary pyrite. Together the alteration seen in SGVC006 suggests these units were subject to significant hydrothermal fluid flow. All SGVC006 core samples have now been submitted for assay.
Once the assay results from SGVC006 are available and the logging is complete, the Company expects to provide a detailed summary of the results from this initial six-hole program and its plans for the next phase of drilling at the Project.
Discussing the results from SGVC005, NGE’s CEO, Wade Hodges: “First: significant thicknesses of CTGD host rocks have been encountered in 5 of 6 holes drilled to date. Second: rock types do not easily correlate between any holes implying significant structural complexity over a large area. Third: significant volumes of gold-bearing CTGD hydrothermal fluids circulated along the complex structural controls as documented by significant thicknesses of CTGD alteration, oxidation and pathfinder geochemistry. It is also important to note that processes that deposit gold from CTGD hydrothermal fluids do not affect arsenic (As), antimony (Sb), mercury (Tl) and thallium (Tl) deposition in the same manner. Gold will be most effectively deposited from CTGD hydrothermal fluids where all three above conditions intersect. Pathfinder elements will be deposited along fluid conduits at generally greater distances from where the gold was deposited. We are now focused on locating those areas where all three processes intersected to effect larger volumes of higher-grade gold mineralization.“
About Nevada Exploration Inc.
NGE is an exploration company advancing a portfolio of new district-scale gold exploration projects along Nevada’s Battle Mountain-Eureka (Cortez) Trend. NGE is led by an experienced management team that has been involved in several significant discoveries in Nevada, including the discovery of Lone Tree and Rabbit Creek (part of the Twin Creeks Mine). NGE’s team has spent the last decade integrating the use of hydrogeochemistry with conventional exploration tools to develop a Nevada-specific regional-scale geochemistry exploration program.
With new proprietary technology, NGE has completed the world’s largest groundwater sampling program for gold exploration, collecting approximately 6,000 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, a small-footprint, 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 overcoming the challenges and radically reducing the costs of exploring in Nevada’s covered basins, and is taking significant steps to open this important new search space up for district-scale exploration.
For further information, please contact:
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.