Large Carlin-style Hydrothermal System Discovered 

RENO, NV - Nevada Exploration Inc. reported that the early results from its ongoing core drilling program at its South Grass Valley Project in Nevada has established the presence of a large hydrothermal system defined by intense and widespread hydrothermal alteration across three drill holes, together nearly 2,500 metres apart, and that the assay results from the first two holes received to date confirm this widespread alteration is associated with significant (>200 meter) intervals of enriched Carlin-type gold deposit (CTGD) pathfinder elements.  With thick intervals of hydrothermally-altered, favorable “lower-plate” carbonate host rocks, containing characteristic CTGD pathfinder elements across multiple wide-spaced drill holes, this first phase of drilling has successfully achieved the objective of confirming the presence of a district-scale Carlin-style hydrothermal system, and NGE is now beginning the next phase of drilling to vector towards potential mineralization.  Based on these positive results, the Company has enlarged its land holdings at the Project, staking approximately 400 hectares of additional claims, for a total district-scale land package of 4,500 hectares (45 km2).

CEO Wade Hodges said, “The lower-plate bedrock we encountered in SGVC002 contained a plus-200-meter interval of intense, CTGD-style, hydrothermal alteration.  From SGVC002 we moved almost 1,300 meters to the south-southeast to SGVC003, where we again encountered lower-plate limestone containing similarly intense and thick intervals of CTGD-style alteration.  We’ve now completed SGVC004 and are still seeing lower-plate limestone exhibiting these same important alteration features a further 1,200 metres to the south of SGVC003, and nearly 2,500 meters south of SGVC002.  By any definition, this is a large system.

After confirming the intersection of favorable lower-plate bedrock and a large Carlin-style hydrothermal system, the next box we needed to check was to confirm that the system contains a significant budget of CTGD pathfinder elements.  With assay results back for SGVC002 and SGVC003, we are excited to share that the system does contain large zones of anomalous and highly-anomalous CTGD-style pathfinder elements.  This is exactly what we needed to see from these early, wide-spaced drill holes, and these CTGD pathfinders give us the information we need to continue to systematically de-risk and advance the Project.

At the same time as we’re excited about our early results at South Grass Valley, I think it’s especially important, and appropriate, at this milestone to highlight their significance in terms of what they say about our under-cover exploration program as a whole.  Here in Grass Valley, we began with a 500 km2 covered search space, with little to indicate the potential for a large Carlin-style system hidden beneath the gravel.  By incorporating groundwater sampling at each stage of investigation, we’ve been able to systematically evaluate and constrain this blind, covered search space, down to a discrete target, and with only a handful of drill holes, intersect a district-scale, Carlin-style system that is now ready for a significant follow-up drill program.  These are the quality and size of exploration targets that the industry is desperate for, and we are proving that we have the technology and experience to lead the industry in finding them under cover here in Nevada.  Accordingly, we believe that these early results at South Grass Valley speak not only to the merits of the Project, but also to the value of our larger program and the other projects in our pipeline.”