Nevada Exploration Inc. (“NGE” or the “Company”) (TSX-V:NGE)
(OTCQB:NVDEF) is pleased to report that the results of the
Company’s Scorpion drill program have confirmed that the
hydrothermal system that was active at Kelly Creek is gold-bearing
over larger areas than previously known, with discrete zones of
enriched gold in groundwater anchored to at least two clusters of
>0.1 g/t gold in bedrock covering areas consistent in size with
the geochemical footprints of the nearest major gold deposits, Lone
Tree (5 Moz) and Marigold (8 Mozs). When combined with the
results of earlier drilling, NGE’s updated geologic model suggests
that the gold-bearing hydrothermal system at Kelly Creek is likely
the extension of the system responsible for Lone Tree and Marigold,
and is of a size to support major additional mineralization.
A comprehensive technical presentation accompanying this news
release is available at:
http://www.nevadaexploration.com/_resources/presentations/Kelly_Creek_Technical_Presentation_January_2018.pdf
Summarizing the results, Wade Hodges, CEO: “We have specifically
built an exploration program to look for large gold deposits.
Being the first to open-up Nevada’s covered basins to systematic
gold exploration, we are not looking for one to two million ounce
deposits, we are on the hunt for five to ten million ounce
deposits, and bigger. Big deposits are the product of big
mineralized systems, which create big footprints, and so that is
what we are exploring for. With our Scorpion drilling results
at Kelly Creek, along with an improved geologic model supported by
historic drilling and a comprehensive package of geophysics, we
have successfully established that the mineral system we’ve
identified at Kelly Creek was pregnant (gold-bearing) over a
significant area, and that the system had active fluid pathways
that both intersected and affected large volumes of favourable host
rock at a scale consistent with what you see at Nevada’s largest
gold deposits.
“We have found exactly what we are looking for: a big
mineralized gold system with a big footprint. Our results at
Kelly Creek combine all the critical components necessary to source
a world-class gold deposit. Just as importantly, the 3D
groundwater results have defined discrete, parallel zones of gold
enrichment that cut through this otherwise large system, giving us
clear and focused targets to test for the final variable: are there
places where the pregnant fluids and the suitable host rock units
and deposition conditions came together to result in higher-grade
mineralization? Answering this question will be the specific
goal of our next round of deeper drilling at the Project.
“This is what systematic exploration looks like, and this is how
big deposits are found. We are sticking to our plan, and we
are excited by the results – especially as Kelly Creek is just the
first of three projects we’re advancing using the same
workflow.”
Scorpion Drilling Results
The favourable geologic setting (host units and structural
controls) associated with the adjacent Lone Tree and Marigold
deposits project northwards to the Kelly Creek Project area,
beneath relatively shallow cover. Earlier drilling and
groundwater sampling had confirmed that this relatively shallow,
prospective structural and bedrock setting was also associated with
enriched gold in groundwater, alluvium, and bedrock. The
Scorpion drilling program was designed to collect 3D groundwater,
alluvium, and top of bedrock samples across this prospective
covered bedrock area, with the objective of constraining the target
by vectoring into areas of gold mineralization in bedrock that are
large enough to be associated with the footprint of a world-class
gold deposit.
The Scorpion program consisted of 61 holes totalling 5,864 m of
drilling, with an average hole depth of 95 m. Of the 61
holes, 41 holes encountered bedrock, at an average depth of 84 m,
which allowed for widespread bedrock mapping and sampling.
From the 61 holes, 552 water samples were collected, on average
every 10 m downhole, providing important 3D geochemistry across the
project, especially in areas of deeper bedrock where the Scorpion
could not sample bedrock directly.
The results have established that the lateral extent of the
gold-in-groundwater footprint at Kelly Creek is of a comparable
size, and perhaps larger, than that seen at Lone Tree, consistent
with the presence of a large, robust, mineralized system.
Zones of enriched gold in groundwater form focused, parallel
NNW-trending lineaments (also reflected more broadly in arsenic and
antimony in groundwater) bounded by the primary N-S structural
fabric that runs parallel to Lone Tree and north from
Marigold. These linear zones of enrichment that cut through
this large favourable system are consistent with the geometry of
mineralization hosted within secondary zones of structural
extension (Riedel-style shears), marking potential conduits of
enhanced vertical hydrothermal fluid flow that are known to provide
important ore-controls at many large deposits in Nevada (including
Lone Tree).
The results of the Scorpion bedrock sampling combined with the
bedrock samples from earlier drilling together define two clusters
of >0.1 g/t gold in bedrock, covering areas at least 700 m x 300
m and 1,000 m x 600 m respectively, associated with the discrete
lineaments of increased gold-in-groundwater enrichment, which
provide new strong evidence that the hydrothermal system at Kelly
Creek is mineralized over a larger area than previously known.
Establishing the Critical Components for a Major Gold
Deposit
By combining the latest Scorpion drill results with the results
of earlier deeper core drilling and the geophysical structural
interpretation (based on the combined gravity, air magnetic,
seismic, and CSAMT datasets), NGE has updated the geologic model at
Kelly Creek to test for the critical components known to support
gold mineralization at a scale of 5 to 10 million ounces in this
part of Nevada (i.e. Carlin-type gold deposits). Based on the
combined exploration datasets, NGE is pleased to report that:
- The primary and secondary structural fabric seen in the
geophysics, core drilling, and hydrogeochemistry, plus the thick
sections of alteration and geochemistry seen in the drilling,
support the presence of major reactivated high-angle structural
conduits associated with a hydrothermal system of a size necessary
to support the formation of a major mineralized system;
- Veining and structural damage seen in the core drilling confirm
that the permeability of the units proximal to the favorable
structural conduits has been improved over large areas and is
well-suited to support gold deposition;
- Thick and wide-spread intervals of hydrothermal alteration,
oxidation, decalcification, and carbon remobilization confirm a
large hydrothermal system was active at Kelly Creek, and mark the
style of alteration and mineralization associated with Carlin-type
gold deposits, which together are indicative of a favorable
mineralizing environment;
- The geochemical footprint seen across the project, which
includes large areas of gold mineralization in bedrock, is
consistent in terms of the size and geochemical package with the
footprints associated with many of Nevada’s large mineral systems,
which confirms: (i) that the system’s hydrothermal fluids were
pregnant; (ii) that the pregnant fluids were present across large
areas of the system; and (iii) that the pregnant fluids could
potentially source economic gold mineralization where provided with
favourable depositional conditions, namely suitably-permeable
iron-rich host rocks; and
- Thick sections of bedrock units known to support mineralization
nearby at Lone Tree and Marigold were encountered by all of the
widespread and deeper core drill holes, which confirm that
favourable, iron-rich, and suitably permeable host rocks are
present across the entire project area and at depth.
NGE believes that these results confirm that all the critical
components needed to host a world-class 5 - 10 Moz deposit are
present at the Kelly Creek Project, and that the combined dataset
suggest the gold-bearing hydrothermal system at Kelly Creek is
likely the extension of the system responsible for the adjacent
Lone Tree (5 Moz) and Marigold (8 Mozs) deposits, with the
potential to support significant additional mineralization.
Next Phase of Work
The next phase of work at Kelly Creek will consist of deeper
drilling to test for areas where gold-bearing hydrothermal fluids
were able to exploit favourable structural and permeability
conditions to impregnate favourable iron-rich host rocks (all of
which are now known to exist) at the scale required to source a
major deposit. This deeper drilling will target the discrete
lineaments of enriched gold in groundwater defined by the 3D
Scorpion program suggestive of possible Riedel shear structures
that could provide the confluence of critical components needed to
host higher-grade mineralization. By integrating 3D
geochemistry with conventional project-scale geology, the results
highlight how NGE is using a combination of low-cost drilling and
hydrogeochemistry (groundwater chemistry) to provide an otherwise
missing crosshair to focus and advance this large, blind,
gold-bearing system with clear next-stage drill targets.
Breakfast with Wade Hodges and Other Upcoming Vancouver
Events
NGE is pleased to invite its stakeholders to visit with its
management at several upcoming events in Vancouver to discuss the
results of our ongoing programs and exciting results at Kelly Creek
and South Grass Valley:
Metals Investor Forum - Friday, January 19th and Saturday,
January 20thRosewood Georgia HotelPresentation Time: 14:20-14:30 on
Saturday, January 20, 2018REGISTRATION REQUIRED:
https://www.metalsinvestorforum.com/
Breakfast with Wade Hodges: The ABC’s of Finding Big Gold
Deposits - Sunday, January 21st2018 Vancouver Resource Investment
ConferenceVancouver Convention Centre WestBREAKFAST: 7:30 to
8:30RSVP for Breakfast to: info@nevadaexploration.comREGISTRATION
REQUIRED FOR EVENT:
https://cambridgehouse.com/e/vancouver-resource-investment-conference-2018-69/register
2018 Vancouver Resource Investment Conference - Sunday, January
21st and Monday, January 22ndVancouver Convention Centre WestBOOTH:
719REGISTRATION REQUIRED FOR EVENT:
https://cambridgehouse.com/e/vancouver-resource-investment-conference-2018-69/registerFULL
AGENDA:
https://cambridgehouse.com/e/vancouver-resource-investment-conference-2018-69/agenda
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 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 5,500 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 generating
and advancing a 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 (>300 m) containing widespread
low-level gold (>0.1 g/t) 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.
For further information, please contact:
Investor RelationsNevada Exploration Inc.Email:
info@nevadaexploration.comTel: +1 (604) 601 2006Website:
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.
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