Nevada Exploration Establishes District-Scale Potential and Increases Land Position at Carlin-Type South Grass Valley Gold Project, Nevada
Nevada Exploration Establishes District-Scale Potential and Increases Land
Position at Carlin-Type South Grass Valley Gold Project, Nevada
RENO, Nev., Sept. 19, 2019 -- Nevada Exploration Inc. (“NGE” or the “Company”) (TSX-V: NGE; OTCQB: NVDEF) is pleased
to announce that, based on the results of its 2019 summer field program, it has updated and enlarged its geologic model for
the mineral system at South Grass Valley (the “Project”), and that the Company believes the mineral system at the Project
has the architecture and scale to support multiple Carlin-type gold deposits (CTGDs), with the potential to host an entire new
district. Furthermore, NGE’s summer program resulted in a significant increase in geochemistry sample coverage across the
Project, which has provided important data to prioritize specific targets for the Company’s next stages of exploration. NGE
believes South Grass Valley is evolving as one of the most exciting new district-scale, Carlin-type projects in Nevada, and has
staked an additional 1,200 hectares (3,000 acres) at the Project.
NGE’s CEO, Wade Hodges, discusses how the results of the 2019 summer field program have contributed to establishing the
geologic setting and district-scale mineral potential at South Grass Valley: “When you look at Nevada’s largest Carlin-type
districts, they’re very similar in terms of their geologic architecture. They are each made up of a thick package of favourable
lower-plate host rocks punctuated by a large intrusive, proximal to the intersection of multiple regional-scale structures. It is
the relationship between these features that provides the spectrum of specific geologic settings that lend themselves to various
styles of Carlin-type mineralization – with generally higher grades found closer to the intrusive and lower grades seen further
away.
“What we’re seeing at South Grass Valley is this exact architecture with the same corresponding set of prospective geologic
settings. As we laid out in May, the objectives for our summer exploration program were to: (1) complete a number of
additional diamond core drill holes to add stratigraphic and geologic information beyond the limits of our earlier drilling; and (2)
increase the density of geochemistry samples across all areas of the Project for the purpose of selecting and prioritizing
targets for detailed in-fill drilling.
“The results of our summer program have significantly improved our understanding of the geology across the Project, and we
are now focusing our efforts on a handful of discrete targets prioritized directly on the presence of gold and CTGD pathfinders.
Based on these results, we believe that the mineral system at South Grass Valley has the scale and range of geologic
settings to support an entire new Carlin-type district, providing multiple opportunities for new discoveries. This is the type and
quality of otherwise-blind exploration project that exists under cover beneath Nevada’s large valley basins – the exact type of
project we’ve built Nevada Exploration to find, and here it is. Our job at South Grass Valley is to now shift our scale of
investigation, zoom in, and advance each target according to its specific setting; and we look forward to sharing the next
chapters of this program with our stakeholders.”
A DISTRICT-SCALE MINERAL SYSTEM
Driven by the additional geologic and structural data provided by the latest core holes, as well as new detailed mapping of the
geology and structural features exposed along the margins of the project, the Company has updated and enlarged its geologic
model for the mineral system at South Grass Valley. The Project is centred on a large Mesozoic intrusive, referred to in the
literature as the Grass Valley Stock, at the intersection of a parallel series of NW fold axes and a major NNW structural
corridor that cuts through a >500-metre-thick sequence of lower-plate bedrock. Each of NGE’s 11 core drill holes to date
(spread out across a N-S distance of more than 3.5 kilometres) encountered significant CTGD-style alteration and trace-
element mineralization, most significantly associated with a broad complex of flat lying blankets and/or high-angle structural
conduits of silicification encountered in 8 of the 11 core holes. The Paleozoic carbonates are overlain by several unaltered
Tertiary volcanic units some of which are believed to be related to the nearby Hall Creek Caldera. Drilling intersected silicified
breccia boulders within a basal volcanic mudflow unit older than the nearby dated volcanics. The boulders are identical in
alteration characteristics and trace-element compositions to breccia units encountered at depth in the Paleozoic carbonates.
Based on these observations and a reconstruction of the Paleo surface, the Company believes that the mineralizing events at
South Grass Valley occurred relatively close to the then paleosurface, and prior to 34 Ma, and that they were followed by deep
incision of the paleo topography. For reference, the Cortez Hills mineralization has been dated at 35.7 Ma.
Together, the dominant geologic features at South Grass Valley – namely the intersection of major structural features within a
thick package of folded, favourable lower-plate host rocks in a place where an intrusive has enhanced the local structural
conditions for mineralization – represent a strikingly similar architecture to those that make up Nevada’s three largest Carlin-
type districts: the Northern Carlin Trend, adjacent to the Little Boulder Basin and Goldstrike Stocks; the Cortez Trend,
adjacent to the Mill Canyon Stock; and the Getchell Trend, adjacent to the Osgood Mountains Pluton. Nevada Exploration
believes that this same combination of features at South Grass Valley provides an analogous range of geologic settings to
those that host the significant Carlin-type mineralization in these districts.
Based on the geochemistry associated with the mineralization and alteration at the Project, NGE believes that the volume of
hydrothermal fluids that passed through the structurally-prepared favourable host rocks at South Grass Valley contained a
characteristic budget of gold and CTGD pathfinders. Furthermore, based on the placement of geologic features related to
known events, NGE believes that the bounds for the timing of this hydrothermal activity is consistent with the sweep of
magmatism associated with the CTGD mineralization at Nevada’s three largest Carlin-type districts. Lastly, based on the
results of the wide-spread early drill holes, NGE believes that the scale of the mineral system defined by these features at
South Grass Valley is consistent with the scale of the mineral systems associated with these major districts.
PRIORITY TARGETS FOR NEXT STAGES OF EXPLORATION
To prioritize specific geologic settings (targets) for the next phases of work at South Grass Valley, as part of its 2019 summer
field program Nevada Exploration collected significant additional geochemistry samples, including: more than 100 groundwater
samples from 54 new purposed-drilled bore holes, for a new combined total of 377 groundwater samples; 922 new soil
samples, for new combined total of 1,854 soil samples; and 978 metres of new core samples from drill holes SGVC009,
SGVC010, and SGVC011, for a new combined total of 3,654 metres of core samples.
Since sharing its last Project update on August 1, 2019, NGE completed its final drill hole of its summer program, SGVC011,
to a depth of 864 metres. SGVC011 was the first hole to successfully drill through the bottom of the intense, multi-phase
silicified breccia seen at the bottom of many of the earlier drill holes. In this location, the thickness of the silicified breccia
zone was approximately 200 metres. The core samples from this zone, marked by significant secondary pyrite, contained the
highest grade-thicknesses for Arsenic, Mercury, Thallium, and Antimony, seen to date at the Project. Full drill results from
the summer drill holes, including downhole strip logs with assays for gold and CTGD pathfinders plus core photos, are
available at: http://www.nevadaexploration.com/_resources/South-Grass-Valley-Data-September-19-2019.pdf.
The additional geochemistry data have improved the Company’s data coverage across the project and provided a new scale of
resolution. The hydrogeochemistry data have established that the N-S zone of highly anomalous gold and CTGD pathfinders in
groundwater is most intensely focused along the margins of the Grass Valley Stock. The larger soil-geochemistry dataset has
extended the anomalous mercury in soils northward along the axis of the major NNW structural corridor, while also highlighting
the magnitude of the larger, more continuous mercury-in-soils feature located immediately above the shallow projection of the
favourable geologic features encountered at deeper depths in nearby drill holes. Lastly, the latest drilling has extended the
intense alteration features in bedrock associated with highly anomalous CTGD pathfinders in bedrock along a now-combined
strike length of more than 3,500 metres, consistent with the margins of multiple, overlapping CTGD footprints.
By integrating the latest geochemistry data with its updated geologic model for the Project, NGE has identified at least four
discrete targets. Each target is defined by a specific set of geologic conditions known to host large CTGDs, and each is
supported by anomalous geochemistry in at least two sampling mediums. With multiple targets across a district-scale
mineral system that is comparable in size to those associated with Nevada’s major Carlin-type districts, such as the Northern
Carlin Trend, Nevada Exploration believes South Grass Valley has the potential to support multiple CTGDs. Based on these
results, the Company has significantly increased its land position by staking 154 new claims, covering an additional 1,200
hectares, for a new total of 5,750 hectares, representing a district-scale land package measuring approximately 12 kilometres
north-south by 5 kilometres east-west.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b33b42fa-e79f-4590-8bd2-f0cbc6a722de
NGE has included short descriptions below to introduce each of the four target areas to its stakeholders. In the coming
weeks, the Company expects to provide more detailed information about the targets and the Company’s plans to advance
them.
WATERFALL TARGET
The concept to be tested at the Waterfall target is that of fracture-controlled, high-grade, oxide gold mineralization within
hornfelsed lower-plate carbonates in contact with the Mesozoic intrusive, emplaced along SE-plunging fold axes at the
intersection of a NE-trending fault. Deposit analogues include Betze-Post and Fourmile. This relatively shallow target sits
immediately upstream from the highest gold in groundwater seen at the Project.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/03ab8352-8306-416e-ad11-4db5cc2a7f7f
FREDDIE TARGET
The concept to be tested at the Freddie target is that of oxidized silicified breccia-hosted gold mineralization in the up-plunge
extension of the CTGD-trace-element-bearing breccias intercepted in holes SGVC009 and SGVC011. The targeted style of
mineralization is analogous to Goldrush. Freddie is located at the intersection of a NNW district-scale fault and a NE-trending
fault along the antiformal hinge of the folded lower-plate carbonates, known to contain silicified breccias. The drilling target
projects under shallow cover and is coincident with both the N-S zone of anomalous gold in groundwater, as well as the largest
and highest mercury-in-soils anomaly at the Project.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/7bad00d7-8f2e-405c-8868-9eb4279c1319
WATER CANYON TARGET
The concept to be tested at the Water Canyon target is that of the classic Carlin model, with a nearby upper-plate cap rock
along a major fold axis, providing traps for hydrothermal fluids within favourable Silurian Roberts Mountain lower-plate host
rocks. Water Canyon is located at the intersection of a NNW lineament and a NW fault fabric, as well as a NE fault, within
the potential pressure shadow extending south of the Grass Valley Stock, to the east of historic adit and trench workings in
the exposed bedrock. The target is supported by anomalous CTGD pathfinders in groundwater as well as anomalous mercury
in soils.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b33b42fa-e79f-4590-8bd2-f0cbc6a722de
GOLDEN GORGE TARGET
The concept to be tested at the Golden Gorge target is that of high-grade, narrow, steep, calc-silicate- hosted gold
mineralization within the relay zone between major, parallel NNW faults, analogous to the
Deep Star-style mineralization associated with the Post-Genesis fault in the northern Carlin Trend. Golden Gorge is located
along an extensional zone within the hornfels aureole east of the Grass Valley Stock, providing potentially favorable rock
preparation. The target sits above a lineament of anomalous mercury in soils within the N-S zone of enriched gold in
groundwater, and is supported by the Company’s recent drilling where hole SGVC005 encountered extensive breccia units
with intense silicification, marbleization, and anomalous CTGD pathfinders.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a0648ff0
-fe37-47bb-9bad-2f14739d948e
About South Grass Valley
NGE’s South Grass Valley Project is a covered (blind) gold exploration project located approximately 50 kilometres south-
southwest of the Cortez complex operated by Nevada Gold Mines (Barrick Gold Corp. and Newmont Mining Corp. joint
venture) and Barrick Gold Corp.’s latest Fourmile discovery, within the specific region of north-central Nevada known to host
world-class CTGDs. NGE originally identified and staked the Project based on elevated concentrations of gold and CTGD
pathfinder elements in groundwater that the Company discovered during a generative basin-scale hydrogeochemistry-
supported exploration program. Since acquiring the Project, NGE has completed: an in-fill borehole groundwater sampling
program, detailed air magnetic and gravity geophysics surveys, a soil geochemistry sampling program, and 11 wide-spaced
stratigraphic orientation diamond core holes.
As NGE continues to advance the Project, per NI 43-101, 2.3(2), the Company must remind its stakeholders that the Project
remains an exploration target for which the potential quantity and grade of any mineral resource is still conceptual in nature.
There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the
target being delineated as a mineral resource.
About Nevada Exploration Inc.
NGE is an exploration company advancing a portfolio of new district-scale gold exploration projects along Nevada’s Battle
Mountain-Eureka (Cortez) Trend. NGE is led by an experienced management team that has been involved in several major
discoveries in Nevada, including the discovery of Lone Tree and Rabbit Creek (part of the Twin Creeks Mine). NGE’s team has
spent the last decade integrating the use of hydrogeochemistry with conventional exploration tools to develop a Nevada-
specific regional-scale geochemistry exploration program.
With new proprietary technology, NGE has completed the world’s largest groundwater sampling program for gold exploration,
collecting approximately 6,000 samples to evaluate Nevada’s covered basins for new gold exploration targets. To advance
follow-up targets, NGE has overcome the high drilling costs that have previously prohibited the wide-spread use of drilling as a
prospecting tool by developing its Scorpion drill rig, a small-footprint, truck-mounted, small-diameter RC drill rig specifically
tailored to the drilling conditions in Nevada’s basins (analogous to RAB drilling in other parts of the world).
By integrating hydrogeochemistry and early-stage low-cost drilling with conventional exploration methods, NGE is overcoming
the challenges and radically reducing the costs of exploring in Nevada’s covered basins, and is taking significant steps to open
this important new search space up for district-scale exploration.
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 Exchange) accepts responsibility for the adequacy or accuracy of this release.
Wade A. Hodges, CEO & 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 the 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.