NV Gold Doubles Size of Current Drill Program

VANCOUVER - NV Gold Corporation reported that based on positive visual indications, it is increasing its current reverse circulation (RC) drill program at its 100% owned Sandy Gold Project, located within the Walker Lane, Lyon County, Nevada, to approximately 3,100 m from the originally planned 1,500 m. In addition, the Company has received positive results up to 18.1 g/t gold in rock grab samples from recent a surface sampling program.

"Our first RC few holes at Sandy yielded extensive intervals of cuttings displaying intensely hydrothermally altered rock, quartz vein material and considerable pyrite," commented Dr. Quinton Hennigh, Director of NV Gold. "We have also confirmed that the target area is mantled by late volcanic rocks and that the buried mineralizing system is quite extensive. In short, we think we have discovered a major epithermal mineralizing system on our Sandy claims. Recent surface rock chip samples indicate this system can generate high gold grades. Based on this encouragement, we have decided to double our current drill program to over 3,000 m to give this target a more thorough initial test."

RC drilling at the Sandy Gold Project in the Walker Lane, 15 kilometers east of Dayton within the wider Comstock Mine district, is in progress with 11 RC drill holes encompassing 2,671 m (8,765 feet) completed to date. Many samples have been delivered to the assay laboratory and are awaiting assay, and labs currently are on a 90-day turn around for receipt. After review of the RC drill chips, the Company believes that drilling has encountered a large epithermal gold system defined by extensive argillic to propylitic alteration with intervals of moderate to intense quartz and pyrite veining. Some of the quartz vein intercepts from the current drill program have measured up to 30 m (100 ft) wide. Quartz vein cuttings often display multi-phase brecciation, a sign of boiling in the system, a good indicator for potential high-grade mineralization. Most of NV Gold's drill holes have far exceeded the depth of historical drilling conducted in 1993.

Thus far, the newly identified mineralized vein system has a strike length of over 800 m, and is hosted by a thick andesite volcanic package. Some of the underlying shaly basement rocks also showed visual evidence of veining and hydrothermal fluid flow. The alteration footprint at the surface has a strike length of 2,400 m and a width of approximately 300 to 500 m. Most of the property remains undrilled, and the system remains open at depth and under late volcanic cover. Based on positive visuals in RC drill cuttings, the Company has elected to double the planned drill program to better understand the total extent of the epithermal vein system by drilling deeper and through fresh volcanic cover, especially in the northeastern strongly silicified portion of the property.