Nevada Exploration (NGE)

[JD400]

One of the new developments that just emerged this week is Nevada Exploration Inc.'s (NGE:TSX.V) Grass Valley, Nevada, project, which was generated by an innovative technique called hydrogeochemistry that focuses on the gravel covered basins of Nevada. Groundwater is collected and tested for gold and all the various poisons, such as arsenic, antimony, thallium and mercury, which are normally associated with Carlin-style deposits. Where tests show a gold-in-groundwater anomaly, geologists can take a closer look at the bedrock underneath.

The interesting thing about the Grass Valley anomaly is that instead of striking northwest-southeast as is the norm within the Cortez Trend, the Grass Valley anomaly strikes southwest-northeast. This play is stunning because although it is within eyesight of the Cortez Hills deposit, it's in a geological setting where no one would think of wasting any money to explore. Yet, this new technique pointed to an anomaly that shows a 10- to 15-mile strike, a linear anomaly, likely associated with a hidden fault that appears to host an oxidizing gold deposit that is the source of the full set of Carlin-style elements.

McEwen Mining has elected to earn 70% by carrying the prospect generator 30% to a production decision. This is a high-stakes play, which could make a big difference for McEwen Mining itself, which is also developing a number of smaller deposits in Mexico and at the southern end of the Cortez Trend.

Full story here
http://www.mining.com/web/the-original-bottom-fisher-finds-high-risk-and-reward-in-nevada-2/