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Nevada Exploration Soil Sampling Extends South Grass Valley Target Additional 1,500 metres, Battle Mountain – Eureka Trend, Nevada
https://www.nevadaexploration.com/news/2019/nevada-exploration-soil-sampling-extends-south-grass-valley-target-additional-1500-metres-battle-mountain--eureka-trend-nevada

January 30, 2019

Nevada Exploration Inc. (“NGE” or the “Company”) (TSX-V: NGE; OTCQB: NVDEF) is pleased to announce that the results of a mercury soil sampling program combined with the results of its earlier hydrogeochemistry (groundwater) sampling program have extended the geochemistry support for its NNW-trending target at South Grass Valley another 1,500 metres beyond the 2,500 meters established based on the results of its ongoing drilling program, for a total of 4,000 metres, which still remains open.

Mercury is one of the characteristic pathfinder elements associated with Carlin-type gold deposits (CTGDs): thallium, antimony, mercury, and arsenic. As the most volatile of the CTGD pathfinders, mercury is the most easily transported vertically, in vapour phase. Because of its vertical mobility and strong association with CTGDs, testing for mercury in soils to detect covered CTGD mineralization is a logical tool for focusing exploration efforts at covered targets. As part of a deposit case study at the Cortez Hills deposit at the north of end of Grass Valley, soil sampling demonstrated that mercury concentrations in soil increase immediately above the footprint of gold mineralization.

NGE identified its blind, covered exploration target at South Grass Valley using hydrogeochemistry, specifically responding to highly-anomalous concentrations of gold in groundwater. With bedrock getting deeper towards the north end of the target area, and with NGE’s groundwater sampling predominantly limited to shallow depths (< 60 metres), the distance above bedrock that NGE collected groundwater samples varied considerably across different areas of the Project, which introduces a potential source of variability for the gold and related pathfinder element concentrations in the groundwater samples. Accordingly, while the absolute gold-in-groundwater concentrations at the north end of the Project, where samples were collected further from the bedrock surface, are not as high as at the south end, where samples were collected closer to the bedrock surface, the concentrations at the north end are still highly anomalous and coincident with the NNW projection of a structurally complex package of favourable lower-plate carbonate host rocks based on air magnetic and gravity geophysics, which together provide evidence that the CTGD-style hydrothermal system recently discovered by the Company may extend northwards beyond the limits of NGE’s initial phase of drilling.

To compliment the hydrogeochemistry data and provide an additional source of geochemistry data to focus the next phase of drilling, NGE completed a mercury soil sampling program across the Project. NGE completed 13 E-W sample lines spaced every 400 metres, with an average length of about 3,000 metres, and with sample locations spaced every 50 metres along the lines, for total of approximately 930 samples.

In terms of the distribution of mercury-in-soil concentrations, the results of the program show:

background concentrations as low as 6 ppb;

a median (50th percentile) concentration of 37 ppb;

the majority (72%) of samples contain concentration less than 50 ppb;

100 ppb corresponds to the 93.6 percentile (top 6.4%) of all samples collected; and

the 100+ ppb samples cluster almost exclusively within the Company’s NNW target area, and importantly extend northward beyond NGE’s initial area of focus, coincident with the anomalous concentrations of gold in groundwater that continue in this direction.

Discussing the results of the mercury soil sampling program, Wade Hodges, NGE’s CEO: “We know that at Cortez Hills, at the north end of the valley, mercury in soils does a great job of mapping the extent of this large covered deposit; and we know based on our recent drill assay results that we’re getting highly-anomalous concentrations of mercury along with elevated gold in thick intervals of favourable lower-plate bedrock containing significant concentrations of CTGD pathfinders associated with intense hydrothermal-alteration. Combining mercury in soils with hydrogeochemistry has given us further evidence that the hydrothermal system we’ve discovered at South Grass Valley may continue another 1,500 metres, beyond the 2,500 meters we’ve seen in the drilling so far, for a total of 4,000 metres (which is still open). For context, with the addition of Fourmile, the mineralization along Barrick’s Goldrush-Fourmile camp extends for 7,000 metres. We’ve set our bar at looking for projects that offer plus five million-ounce potential, and each new layer of information is reinforcing that our target at South Grass Valley is large enough to support this scale of mineralization.”


The Company has submitted a permit application to provide additional drill sites at the north end of the Project, as well as additional locations at the south end of the Project to infill around the drill holes completed to date. At this time, NGE is currently drilling SGVC007, located 400 metres east of hole SGVC006. For more information about the Company’s current drilling program at South Grass Valley, please see the recent news release dated January 23, 2019: https://www.nevadaexploration.com/news/nevada-exploration-drilling-enlarges-target-at-south-grass-valley-project-battle-mountain--eureka-trend-nevada

As NGE continues drilling at South Grass Valley, per NI 43-101, 2.3(2), the Company must remind its stakeholders that the Project remains an exploration target for which the potential quantity and grade of any mineral resource is still conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

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:

Nevada Exploration Inc.
Email: [e-mail]
Telephone: [phone]
Website: www.nevadaexploration.com