Reverse Circulation Drill Has Arrived At South Grass Valley Project

VANCOUVER - Nevada Exploration Inc. (NGE) that a reverse circulation drill rig has arrived to install a pre-collar for SGVC015, the next planned hole of current drilling program at South Grass Valley Carlin-type gold project.

SGVC015 is located along the northernmost fence of drillholes at the project and is designed to test the intersection of a complex series of major NW-trending fault and fold zones connected to the primary N-S Water Canyon structural corridor (WCSC). The drillhole is expected to fill a 1,200-meter gap between previous drillholes SGVC011 and SGVC012, and is specifically targeting the down-dip projection of a 430-meter-thick section of favorable Hales Formation seen in SGVC011 that contained intense argillization, silicification, and brecciation associated with highly anomalous pathfinders, in this case eastwards, closer to the WCSC, immediately below large gold and pathfinder geochemistry anomalies at surface.

In addition at the North Grass Valley, the Company believes it exhibits the features to host a potentially gold-bearing hydrothermal system at a scale consistent with Nevada’s large Carlin-type deposits. NGE has compiled all regional and project scale data at the project and has begun discussions with interested partners to fund the next stages of work at the Project.

At the Company’s Kelly Creek Project, NGE’s partner Austin Gold Corp. has informed NGE that it completed four reverse-circulation drill holes totaling approximately 1,200 meters in the southern portion of the project, and that the samples are being prepared to submit for assay. NGE expects to provide additional information on the logging, assays, and other geologic information provided by the drilling once received.

In parallel to its Carlin-type gold projects, NGE has also been working to advance its epithermal-style Awakening gold project located immediately north of Paramount Gold Nevada Corp.’s Sleeper Gold Mine in Humboldt County, Nevada, which produced 1.66 million ounces from 1986 to 1996 and has a remaining measured and indicated mineral resource of 3.14 million ounces (297 Mt at 0.33 g/t Au). Since acquiring the project, NGE and an early partner have completed large geophysics, geochemistry, and stratigraphic orientation programs to establish the major geologic features across the project. Based on the results, NGE believes it has demonstrated support that the favorable lithological, structural, and alteration features associated with the mineralization at Sleeper continue northward, under relatively shallow cover at Awakening, coincident with anomalous gold in groundwater.

To consolidate what NGE believes to be one of the most prospective low-sulfidation epithermal gold projects in Nevada, NGE has entered an Exploration Lease and Option to Purchase Agreement (the “North Sleeper Agreement”) with a private party to purchase a 100% interest in 38 unpatented mining claims totaling approximately 3.5 square kilometers (the “S310 Claims”), that fill what was a hole in NGE’s land position. Under the North Sleeper Agreement, the Company has the option to purchase 100% of the S310 Claims. If the Company does not terminate the North Sleeper Agreement prior to February 7, 2023, a work commitment of 600 meters of drilling before February 7, 2024, becomes a firm commitment, after which if the Company elects to proceed, an additional 1,000 meters of core drilling is required to be completed prior to February 7, 2025.