NV Gold Highlights Positive CSAMT Geophysical Results and Expedites Permitting for a Fall Drill Program at its Slumber Gold Project in Nevada
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Vancouver, British Columbia, V6C 3B6
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www.nvgoldcorp.com
NV Gold Highlights Positive CSAMT Geophysical Results and Expedites Permitting
for a Fall Drill Program at its Slumber Gold Project in Nevada
September 21, 2020 - Vancouver, British Columbia – NV Gold Corporation (TSXV:
NVX; US: NVGLF) (“NV Gold” or the “Company”) is pleased to present its interpreted
results from a controlled source audio -magnetotelluric (“ CSAMT”) geophysical survey
completed in early September 2020 at its Slumber Gold Project in Nevada. NV Gold is
expediting permitting of a fall exploration drill program to test some compelling targets
that have emerged.
Highlights of Slumber Gold Project and Recent CSAMT Geophysical Program
• Preliminary 2019 exploration drill program identified a potentially large, buried
gold-bearing hot spring system .
• Newly acquired CSAMT survey data compliment earlier gravity and ground
magnetic geophysical data as well as drilling results from late 2019.
• CSAMT survey identifies m ultiple high priority drill targets thought to be
associated with the hydrothermal plumbing of the hot spring system.
• NV Gold now interprets that its 2019 drill holes stopped short of these newly
identified high priority targets.
• NV Gold is expediting permitting for a 2020 Fall exploration drill program to test
a series of structural targets under areas drilled in 2019.
“Our recent CSAMT data clearly defines multiple promising drill targets immediately
below our 2019 drill holes ,” commented Peter A. Ball, President & CEO of NV
Gold. “Our technical team, consisting of Dr. Quinton Hennigh and Dr. Odin
Christensen , felt the use of the CSAMT would help highlight structural targets at
Slumber like it has at other epithermal projects around the globe . Given its similar
geology to other epithermal systems in the area such as the famous historic Sleeper
high grade bonanza gold deposit 21 miles to the east, we believe Slumber may
potentially host a buried high grade gold system at depth .”
About Slumber Gold Project
The Slumber Gold Project covers an area about 3.9 square kilometers comprised of 55
unpatented lode mining claims owned by the company and 5 unpatented lode mining
claims leased from a third party.
Important geologic features observed at Slumber include outcrops of chalcedony-cemented
conglomerate and sandstone with textures consistent with sinter -cemented sediment
overlying modern geothermal systems and with outcrops found over other epithermal
mineral systems. These rocks display elevated concentrations of gold and pathfinder
elements. Chalcedony-cemented conglomerate overlies a stratigraphic section comprised
of Tertiary rhyolite tuff and tuffaceous sedimentary rocks that infill a northeast -trending
graben and unconformably overlie pre -Tertiary basement rocks. Previous exploration
drilling (1985-93), focused on shallow bulk -minable gold mineralization, consisted of 15
shallow (average depth ~115 m) vertical reverse-circulation (“RC”) holes drilled on or near
these silicified outcrops. Seven of fifteen holes contained anomalous gold intercepts of 0.3
g Au/t over thicknesses ranging from 2-32 m.
In 2019, NV Gold completed an initial 7 -hole, 1 ,091 m drill test of the Slumber Gold
Project. The drill program was driven by surface geological evidence and available
geophysical information. The program encountered anomalous gold mineralization in four
of the seven holes. The most notable intercept was a 39.6 m interval grading 0.34 g Au/t
and 1.3 g Ag/t beginning at 36.6 m down hole , including 22.8 m grading 0.47 g Au/t and
1.6 g Ag/t beginning at 53.4 m down hole encountered in hole SL-02. Hole SL-01, situated
approximately 450 m northeast of hole SL-02, encountered five mineralized intervals from
surface to 167.7 m. Mineralization remained open in all directions around these holes.
Quotation from an October 28, 2019 Company news release :
“Our initial drill program at Slumber has identified a promising gold system. This
blind target was identified by geophysics,” commented Dr. Quinton Hennigh,
Director of NV Gold . ” Anomalous mineralization encountered over significant
lengths in holes SL -02 and SL -01, some 450 meters apart, suggests the presence of a
large gold -bearing hydrothermal system in the sub -surface. Its characteristics exhibit
similarities to several other high -grade mid -Miocene gold systems in the region. The
Company plans further data review and more refined geophysical interpretation, to
target potential high -grade structures that have given rise to the anomalous plu me we
have encountered in the recent drilling.”
Encouraged by the results of the initial 2019 drill program, NV Gold contracted a CSAMT
survey of the project area to assist in drill targeting at depth.
Zonge International of Reno, Nevada, performed the CSAMT (controlled source audio -
magnetotelluric) survey on the Slumber Gold Project area in September 2020. The survey
was completed with data acquisition along 6 lines, each 1000 m in length, spaced at 200 m
apart, with a station-spacing along lines of 25 m. The data quality was considered to be of
good to excellent quality. The CSAMT survey data complement s the known gravity,
ground magnetic geophysical surveys, and drilling conducted in late 2019.
Figure 1: Map of Slumber project area, colored by the Analytic Signal of Total Magnetic Intensity. The
white ellipse highlights the area of low magnetic response, interpreted to reflect magnetite -destructive
hydrothermal alteration. Black lines are the lines of the CSAMT survey.
Subsequently, Thomas V Weiss and Associates Inc. of Centennial, Colorado, was engaged
to complete a comprehensive geophysical interpretation incorporating the gravity, ground
magnetic and CSAMT geophysical datasets. Results of the three surveys provide d
extensive complementary information to generate the cross section maps of the Slumber
Gold Project area geology at depth.
The ground magnetic survey highlight ed an elliptical area of low magnetic response, and
was interpreted to be due to magnetite-destructive hydrothermal alteration. The form of the
magnetic anomaly suggests a central area of dilation within a larger zone of structural
deformation ( Figure 1). High-grade ore shoots in epithermal deposits frequently ar e
concentrated in dilatant zones along faults. This zone is now a priority exploration
target.
Interpretation of the new CSAMT data highlights several high-angle high-resistivity zones
within a north-northeast-oriented focus area generally coincident with the area of reduced
magnetic response. Such high -resistivity zones, surrounded by zones of greater
conductivity, are a key feature characteristic of epithermal veins. These relationships are
illustrated on one representative geophysical cross-section in Figure 2. Similar features are
present on five of the six CSAMT lines.
Figure 2. Slumber Project Area CSAMT Line 4 viewed looking northeast. Cooler colors image rock masses
with greater resistivity. The image has been interpreted to show several high-angle resistive zones,
surrounded by more conductive rock. The blue resistive cap corresponds to silicified outcrops.
When compared to past drilling, the new model suggests that past drilling, primarily
targeted by surface geologic features, did not test deep enough as illustrated in Figure 3.
Figure 3: Slumber Project Area CSAMT Line 4 viewed looking northeast. Cooler colors image rock masses
with greater resistivity. The traces of several historic drill holes are shown and indicates that the holes were
not drilled deep enough to intersect possible zones of high-angle veining and mineralization.
Based upon the integrated interpretation of the known geology and geophysics, the NV
Gold technical team and Board Directors, consisting of Dr. Quinton Hennigh and Dr. Odin
Christensen, are finalizing the fall drill program to test the potential identified deeper
targets. The planned exploration drill program will initially include up to eight (8) RC drill
holes, all to target a minimum depth of at least 300 m for a total program of approximately
2,400 m. Permitting for the drilling program is in progress, with a potential start date during
the fall of 2020.
About CSAMT
The various measured electrical and magnetic responses from a CSAMT survey are used
to model the resistivity structure of the earth, which relates directly to the underlying
geology. CSAMT is highly effective in the exploration of epithermal systems such as
Slumber, and assists in identifying areas of silicification that develop within the structural
conduits of hot-spring systems (places where mineralized veins might be found).
CSAMT assists in the vertical geophysical mapping of a project in the 20-1000-m depth
range. The prospective boiling zone, where high-grade mineralization can occur within an
epithermal system, is commonly believed to exist at depths ranging from 300-500 m below
the paleo -surface. The high -grade centers of low -sulfidation epithermal precious -metal
deposits can be relatively small exploration targets, surrounded by much larger volumes of
altered and geochemically anomalous rock, making precise drill targeting critical.
Quinton Hennigh (Ph.D., P.Geo.) is a Qualified Person pursuant to National Instrument
43-101 and has reviewed and approved the technical information contained in this news
release. Dr. Hennigh is a director of NV Gold and is not independent and is also the
President, Chairman and a Director of Novo Resources Corp.
About NV Gold Corporation
NV Gold ( TSXV: NVX, US: NVGLF ) is a well-financed junior exploration company
based in Vancouver, British Columbia that is focused on delivering value through mineral
discoveries in North America, leveraging its highly experienced in -house technical
knowledge, and identifying and drilling 2 -3 priority projects per year. NV Gold controls
multiple drill-ready projects in Nevada, and has entered in to an Option Agreement on the
high-grade Exodus Gold Project in British Columbia, Canada.
On behalf of the Board of Directors,
Peter A. Ball
President & CEO
For further information, visit the Company’s website at www.nvgoldcorp.com or
contact:
Peter A. Ball, President & CEO
Phone: 1 -888-363-9883
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release includes certain forward -looking statements or information. All statements other than
statements of historical fact included in this release, including, without limitation, plans to complete further
drilling at the Slumber Gold Project, that the Slumber Gold Project may contain a buried high grade gold
system at depth, and the timing and other future plans and objectives of the Company, are forward -looking
statements that involve various risks and uncertainties. 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. Important factors that could cause actual results t o differ materially from the Company's
plans or expectations include regulatory issues, market prices, availability of capital and financing, measures
required to be taken in response to the COVID -19 pandemic, general economic, market or business
conditions, timeliness of government or regulatory approvals and other risks detailed herein and from time
to time in the filings made by the Company with securities regulators. The Company disclaims any intention
or obligation to update or revise any forward -looking statements whether as a result of new information,
future events or otherwise except as otherwise required by applicable securities legislation.