Nevada Exploration and Astro Resources Sign Letter of Intent for Strategic Alliance
Nevada Exploration and Astro Resources Sign Letter of Intent for
Strategic Alliance
Highlights:
- Astro and Nevada Exploration agree to terms for Strategic Alliance to generate and advance
epithermal gold projects in Northern Nevada ;
- Nevada Exploration has developed new undercover exploration technology to assist in the
discovery of mineralization in the more than 50% of Nevada where the prospective bedrock
is hidden beneath its valley basins ;
- Nevada Exploration to provide Astro access to its extensive exploration database covering a
million -acre area of interest, together with its strong local manage ment; and
- Astro to enjoy first right to use Nevada Exploration’s database to acquire exploration projects
within the area of interest for two years based on a standard earn -in agreement , and commits
to spending US$1.4M on resulting projects .
RENO, Nevada, March 21, 2022 (GLOBE NEWSWIRE) — Nevada Exploration Inc. (TSX -V: NGE;
OTCQB:NVDEF, “NGE”) and Astro Resources NL (ASX: ARO, “Astro”) are pleased to announce that they
have signed a Letter of Intent (“LOI”) to leverage NGE’s extensive exploration d atabase to generate
and advance epithermal gold projects in a million -acre area of interest in northern Nevada (the
“AOI”).
Under the LOI, NGE will contribute its exploration data within the AOI and grant Astro a first right to
use this data to acquire cu rrent and future exploration targets for two years, based upon a standard
earn-in agreement. In exchange Astro will commit to spending US$1.4M on the resulting projects
(the “Strategic Alliance”).
Astro Chairman, Jacob Khouri, commented, “Being based in Australia, where our industry has had no
choice but to advance new undercover exploration tools to explore in the 80% of the country where
the bedrock is covered, our team recognises the incredible opportunities globally for first movers
applying new techn ology to open up covered search spaces. We’re very pleased to partner with
Nevada Exploration, a recognised leader in undercover exploration, to employ the same strategies
being used in Australia to participate in exploring for what we believe to be one t he biggest prizes in
our industry, the second, undercover, half of Nevada’s gold endowment. With a 15 -year head start,
NGE has used the latest exploration technology to build a database of new exploration targets under
cover, which we can now use to devel op a meaningful portfolio of new projects. We have begun our
review of NGE’s database and expect to make further announcements soon.”
Strategic Alliance
While Nevada is often touted as a global leader in terms of gold production per area, the reality is
that the 4.6 million ounces Nevada produced in 2020 is only half of what the state produced in 1998.
Like in other mature districts, continued exploration of Nevada’s now well- explored exposed settings
is generating fewer discoveries despite re cord exploration expenditures. The future of mining
globally is tied to the transition to undercover exploration, which in Nevada, means exploring in the
more than 50% of the state where the prospective bedrock is hidden beneath its valley basins.
Nevada’s exposed terrains have historically produced more than 200 million ounces of gold, and
experts agree, there is likely another 200 million ounces waiting to be discovered beneath Nevada’s
valleys. To unlock this globally significant residual gold endowme nt, NGE is the first company to bring
the latest undercover exploration technologies to Nevada. Most significantly, NGE has spent more
than 15 years integrating new hydrogeochemistry (groundwater chemistry) and low -cost drilling
technology to build an ind ustry-leading, geochemistry -focused toolkit to explore for new undercover
gold deposits.
NGE has used its technology to complete the world’s largest groundwater sampling program for gold
exploration, which also represents the largest regional -scale geo chemistry -based generative
exploration program in Nevada since the successful stream -sediment sampling programs in the
1980’s.
NGE’s generative program involved aggregating more than 50,000 historic water sampling records,
then collecting more than 6,000 new groundwater samples, predominantly from purpose -drilled
boreholes, each of which was analysed directly for gold and related pathfinders using the latest
laboratory technology.
Based on the results of its state -wide sampling program, NGE has develop ed a proprietary database
of new undercover exploration targets. NGE is presently advancing a number of Carlin -type gold
projects that resulted from its generative program.
Under the proposed two -year Strategic Alliance, Astro and NGE plan to work togeth er to leverage
NGE’s technology, data , and expertise to identify, acquire, and advance a portfolio of additional
projects in an area of Nevada known for epithermal -style gold deposits, including the 4.8 -million -
ounce Sleeper deposit (1.66 Moz produced, 3.1 4 Moz remaining M&I resource [297 Mt at 0.33 g/t
Au]).
Transaction Details
Under the proposed two -year Strategic Alliance, NGE will grant Astro a first right to acquire
exploration targets within the AOI, subject to standard earn -in agreements (the “Designated
Properties”), on which Astro will commit to spending US$600,000 in Year 1 and $800,000 in Year 2.
Any Designated Property that Astro elects to advance will be subject to one of two standard
agreements as follows:
- Designated Properties related to targets already identified by NGE will be subject to Standard
Deal A, with Astro holding a 70% contributing interest and NGE holding a 30% carried interest;
and
- All other Designated Properties will be subject to Standard Deal B, with Astro holding a 90%
contributing interest and NGE holding a 10% carried interest.
During the two -year Strategic Alliance, Astro will enjoy flexibility in the allocation of its committed
US$1.4M in expenditures across the Designated Properties, with no mi nimum expenditures at any
given Designated Property.
After the two -year Strategic Alliance Astro may elect, but will be under no obligation, to continue to
fund exploration at each Designated Property , and in the case where Astro completes less than
US$250,000 in annual exploration expenditures at a Designated Property, NGE may elect to purchase
Astro’s interest in such Designated Property for $1.
Upon Astro completing a JORC Inferred Resource exceeding 750,000 ounces at a Designated Property
(“Resource ”), Astro and NGE will form a joint -venture limited -liability company to advance the
property (“JV”), with Astro and NGE’s initial participating interest being either 70%/30% for
Designated Projects subject to Standard Deal A, or otherwise 90%/10% for Design ated Projects
subject to Standard Deal B. Following the achievement of the Resource, both parties will be required
to fund their share of the Project development costs or their interest will be diluted. If at any time,
either party's interest is diluted below 10%, their interest will automatically be converted to a 2% net
smelter return royalty.
About Astro Resources NL
Astro Resources NL is an Australian -listed exploration company focused on advancing its diversified
portfolio of high -quality projects , including:
- Needles Gold Project, Nevada
- Governor Broome Minerals Sands Project, WA
In 2022, Astro will focus its efforts on continuing its Needles Gold Project drilling program and further
advancing the Governor Broome Mineral Sands Project towards co mmercialisation.
In January 2022, Astro announced the proposed spin- off via its wholly owned subsidiary, Argyle
Resources Limited of its East Kimberly Diamond project and it is expected that this spin off will include
other projects. Astro intends to retain an interest in Argyle Resources.
About Nevada Exploration Inc.
Led by an international team of proven explorers, NGE is disrupting Nevada’s exploration industry by
applying new technology to systematically explore for the second half of Nevada’s gold endowment
waiting to be discovered beneath Nevada’s valley basins. NGE is advancing a portfolio of new gold
exploration projects, primarily focused on three district -scale Carlin -type gold projects, which
includes its flagship South Grass Valley project w here it is currently drilling approximately 50
kilometres south -southwest of the Nevada Gold Mines (Barrick Gold Corp. and Newmont Corporation
joint venture) Cortez complex.
For more information, Nevada Exploration’s latest videos are available at:
https://www.nevadaexploration.com/investors/media/
For further information, please contact:
Nevada Exploration Inc.
Email: [email protected]
Telephone: +1 (604) 601 2006
Website: www.nevadaexploration.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exch ange) accepts responsibility for the adequacy or accuracy of this
release.
Wade A. Hodges, Chief Discovery Officer and Director, Nevada Exploration Inc., is the Qualified Person,
as defined in National Instrument 43 -101, and has prepared the technical and scientific information
contained in this News Release.
Cautionary Statement on Forward- Looking Information:
This news release contains “forward -looking information” and “forward -looking statements”
(collectively, “forward -looking information”) within th e meaning of applicable securities laws,
including, without limitation, expectations, beliefs, plans, and objectives regarding projects, potential
transactions, and ventures discussed in this release.
In connection with the forward- looking information contained in this news release, the Company has
made numerous assumptions, regarding, among other things, the assumption the Company will
continue as a going concern and will continue to be able to access the capital required to advance its
projects and continue operations. While the Company considers these assumptions to be reasonable,
these assumptions are inherently subject to significant uncertainties and contingencies.
In addition, there are known and unknown risk factors which could cause the Company’s actual results,
performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by the forward -looking information contained herein. Among the
important factors that could cause actual results to differ materially from those indicated by such
forward -looking statements are the risks inherent in mineral exploration, the need to obtain
additional financing, environmental permits, the availability of needed personnel and equipment for
exploration and development, fluctuations in the price of minerals, and general economic conditions.
A more complete discussion of the risks and uncertainties facing the Company is disclosed in the
Company’s continuous disclosure filings with Canadian securities regulatory authorities at
www.sedar.com. All forward -looking information herein is qualified in its entirety by this cautionary
statement, and the Company disclaims any obligation to revise or update any such forward -looking
information or to publicly announce the result of any revisions to any of the forward -looking
information contained herein to reflect future results, events or developments, except as required by
law.