Nevada King Obtains 100% Precious Metals Right on Iron Point & Commits to a 5,000 Meter Drill Program Targeting Highly Prospective Lower Plate Carlin-Type Gold Mineralization
Nevada King Obtains 100% Precious Metals
Right on Iron Point & Commits to a 5,000
Meter Drill Program Targeting Highly
Prospective Lower Plate Carlin-Type Gold
Mineralization
VANCOUVER, BC
,
May 10, 2021
/CNW/ -
Nevada King Gold Corp.
(TSXV: NKG) ("
Nevada King
"
or the "
Company
") is pleased to announce it has signed a termination and release agreement (the
"
Agreement
") with Ethos Gold Corp. ("
TSX-V:ECC
") ("
Ethos
"), whereby Ethos will renounce all of
its precious metal rights under the Earn-in Agreement dated
May 16, 2019
on the Iron Point
Project's
Carlin
-type gold targets in exchange for 6.5 million common shares of
Nevada King
.
Highlights:
Nevada King
takes back 100% control of the precious metal rights (gold and silver) at Iron Point
from earn-in partner Ethos in exchange for issuing Ethos 6,500,000 common shares of NKG.
Ethos has entered into a voluntary 12-month lockup on the shares.
To date, Ethos has spent over
C$2.2M
on advancing the Iron Point gold target. In 2019, Ethos
completed five deep holes at Iron Point. These holes encountered lower plate stratigraphy with
anomalous gold mineralization.
Nevada King
is excited by the potential for discovery of
Carlin
-type gold mineralization in the
lower plate at Iron Point and is making plans to advance the project further, including drilling a
minimum of 5,000 meters in 2021.
Dr.
Quinton Hennigh
, Director of
Nevada King
, commented, "
Nevada King's
Iron Point project lies at
the intersection of the prolific
Battle Mountain
-Cortez and
Getchell-Twin Creeks
gold trends, (see
Figure 1). In 2019, a diamond drill hole confirmed the presence of favorable lower plate stratigraphy
at moderate depths of approximately
450 m
. Anomalous gold and pathfinder elements were also
encountered suggesting potential for a very large
Carlin
system at Iron Point. Historically, Iron Point
has been the subject of multiple exploration programs including by major gold companies almost
exclusively focused on the upper plate. There has been almost no focus to date on the potential of
the lower plate and for the first time all historic exploration data has been compiled and combined
with recently collected drill and geophysical data to facilitate vectoring to a potential lower plate
Carlin
-type discovery.
Nevada King
is in an excellent position to test several high-priority drill targets
that are emerging from this exercise. We look forward to commencing an aggressive exploration
campaign at Iron Point, one of
Nevada King's
multiple high-quality gold projects in north-central
Nevada."
Collin Kettell
, Founder & Chief Executive Officer of
Nevada King
, stated, "At the direction of Dr.
Quinton Hennigh
and
Lewis Teal
, Ethos has spent two years and over
two million dollars
advancing
Iron Point's gold target's. With gold prices poised to break new records, we feel the time is now to
use
Nevada King's
strong technical team to fasttrack our exploration efforts. Based on its location, a
large mineralized footprint of gold in upper plate rock, confirmation of the presence of lower plate
stratigraphy, we feel that the deep gold target at Iron Point merits significant attention with the goal
of unlocking value for our shareholders. Securing the Ethos joint venture interest will put
Nevada King
in a strong position to best realize the value from any potential future discovery while allowing Ethos
to continue to participate in the Iron Point gold potential as an equity holder of
Nevada King
.
Renewed interest and discovery success in deep lower plate hosted targets by major operators like
Barrick and Newmont further supports our excitement in the discovery potential at Iron Point."
Summary
Nevada King
entered into an Earn-In Agreement on
May 16, 2019
in which Ethos was granted the
exclusive and irrevocable right to acquire a 50% undivided interest in and to the precious metals
mining rights at the Iron Point project in
Humboldt County, Nevada
. On
May 5, 2021
, Ethos and
Nevada King
entered into the Agreement whereby Ethos has agreed to renounce all of its rights
under the Earn-in Agreement and as a result, the Earn-In Agreement will be terminated.
As consideration for the renunciation of its rights under the Earn-In Agreement,
Nevada King
has
agreed to issue to Ethos, 6,500,000 common shares of
Nevada King
. The shares will be subject to a
voluntary hold period of twelve (12) months from the date of issuance. The completion of the
Agreement and the issuances of the consideration shares remains subject to TSX-V approval and
will be completed shortly following TSX-V approval, if granted.
Figure 1: Iron Point is located at the intersection of the Cortez/Battle Mountain Trend and the
Getchell Trend, which have combined historic production of 200 million oz of gold. (CNW
Group/Nevada King Gold Corp.)
Figure 2: Iron Point Project claims map. (CNW Group/Nevada King Gold Corp.)
Recent advancement of the Iron Point Project
Over the past two years, Ethos undertook considerable work to advance the Iron Point Project
including:
A Phase I drill program consisting of 5 exploratory holes, totaling
2686.5m
. Importantly, one of
these deep core drillholes, VM-008C, successfully intersected Lower Plate carbonate strata
beneath the Roberts Mountain Thrust fault (RMT) at depth of
422m
. Significant alteration typical
of
Carlin
-type systems was present throughout the Lower Plate section to end of hole at
710m
. The bottom
5.8m
of this hole graded 0.17 g/t Au suggesting the system may be
intensifying at depth.
Geophysical data collection including a detailed gravity survey, a drone-based airborne
magnetic survey, and an eight line controlled source audio-magnetotellurics survey were
completed.
Compilation of historic drill data from numerous campaigns spanning a period of 60 years. Over
500 drillholes are now compiled in the database, the first time in the history of the property.
Data was standardized to serve as the foundation for 3D modeling.
Surface Geochemistry Compilation.
Collation of historic surface sampling, soil and rock, into a unified database and analysis using
ioGas software. This exercise identified a strong NNW lineament of pathfinder geochemistry
associated with Carlin-style gold mineralization.
3D modeling using Leapfrog software. This model will provide a basis for future drill targeting.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by Dr.
Quinton Hennigh
, who is a Qualified Person as defined by NI 43-101.
No finder's fee is payable in connection with the Transaction. The Transaction is considered a
"Reviewable Transaction" under TSX Venture Exchange Policy 5.3 as
Craig Roberts
, a Director of
the Company is also the CEO and a Director of Ethos.
About Nevada King Gold Corp.
Nevada King
is the fourth largest mineral claim holder in the
State of Nevada
, and the fastest
growing mineral claim holder in
the United States
.
Nevada King
owns a 100% interest in the Atlanta
Mine, located 100km southeast of
Ely, Nevada
, and the Iron Point Vanadium Project, located 35km
east of
Winnemucca, Nevada
. The Atlanta Mine is a historical gold-silver producer. The Iron Point
Vanadium Project is located within a few miles of Interstate 80, has high voltage electric power lines
running through the project area and a railroad line passing across the northern property boundary.
Nevada King
is well financed to advance the Iron Point Vanadium Project through resource
estimation and initial feasibility study work.
Nevada King
has a proven capital markets and mining
team led by Executive Chairman
Paul Matysek
.
Please see the Company's website at
www.nevadaking.ca
.
Cautionary Statements Regarding Forward Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release contains certain "forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of applicable securities legislation. All
statements, other than statements of historical fact, included herein, without limitation, statements
relating the future operations and activities of
Nevada King
, are forward-looking statements.
Forward-looking statements are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or
statements that events, conditions, or results "will", "may", "could", or" should" occur or be achieved.
Forward-looking statements in this news release relate to, among other things, the Company's
exploration plans and the Company's ability to potentially expand mineral resources and the impact
thereon. There can be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in such statements. Forward-
looking statements reflect the beliefs, opinions and projections on the date the statements are made
and are based upon a number of assumptions and estimates that, while considered reasonable by
Nevada King
, are inherently subject to significant business, economic, competitive, political and
social uncertainties and contingencies. Many factors, both known and unknown, could cause actual
results, performance or achievements to be materially different from the results, performance or
achievements that are or may be expressed or implied by such forward-looking statements and the
parties have made assumptions and estimates based on or related to many of these factors. Such
factors include, without limitation, the ability to complete proposed exploration work given the global
COVID-19 pandemic, the results of exploration, continued availability of capital, and changes in
general economic, market and business conditions. Readers should not place undue reliance on the
forward-looking statements and information contained in this news release concerning these items.
Nevada King
does not assume any obligation to update the forward-looking statements of beliefs,
opinions, projections, or other factors, should they change, except as required by applicable
securities laws.
SOURCE
Nevada King Gold Corp.
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For further information:
contact Collin Kettell at [email protected] or (301) 744-8744.
CO: Nevada King Gold Corp.
CNW 09:57e 10-MAY-21