VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 24, 2012) - Nevada Exploration Inc. ("NGE") (TSX VENTURE:NGE) is pleased to announce that Spruce Ridge Resources Ltd. ("Spruce Ridge"), NGE's exploration partner at NGE's Fletcher Junction Gold Project (the "Project") in Mineral County, Nevada, has signed a drill contract to commence drilling at the Project, with an expected start date before the end of October.
During this past summer Spruce Ridge completed a high-resolution (150 metre line spacing) and deep penetrating (+300 metre) airborne VTEM® (versatile time-domain electromagnetic geophysical system) and magnetic survey covering approximately 387 line kilometres over both the Project and part of the nearby historic Aurora mining district, which produced approximately 1.9 million ounces of gold, mostly in the nineteenth century. The airborne survey results show a resistivity low in the bedrock hidden beneath the basalt flows of the Aurora Crater adjacent to the Aurora mining district that may be caused by alteration potentially associated with gold mineralization. This resistivity low extends continuously beneath the basalt flows from the north end of the Project down to the Aurora mining district to the south. These significant geophysical results suggest there may be a continuous mineralized system hidden beneath the Aurora Crater extending northward for approximately 11 kilometres from the Aurora mining district through the Project.
Furthermore, detailed interpretation of the VTEM® survey results has provided additional evidence to support the presence of potentially silicified hills beneath the Aurora Crater, which are believed to be the source of the mineralized boulders found along the edge of the basalt flows - of the 148 angular quartz float samples NGE collected along the edge of the basalt cover, 30 samples contained gold concentrations greater than 0.1 grams per tonne, 11 samples contained gold concentrations greater than 1.0 grams per tonne, and 3 samples contained gold concentrations greater than 10.0 grams per tonne (11.2 g/t, 26.9 g/t, and 90.5 g/t).
Spruce Ridge and NGE are very pleased with the additional information provided by the airborne survey and have staked 128 additional claims (245 total), more than doubling the size of Project (now at more than 2,000 hectares), to cover the potentially mineralized north-south structural trend running north from the Aurora mining district to the Project beneath the Aurora crater.
Based on the detailed interpretation of the VTEM®, combined with the results of NGE's work to date, Spruce Ridge has prioritized a series of drill targets to test this geologic concept and is preparing to drill. Specifically, Spruce Ridge has entered into a drilling contract specifying a minimum of 5,000 feet of diamond drilling and drilling will likely commence before the end of October.
More detailed information about the Project, the results to date, and the upcoming drilling program is available in a presentation available at: http://www.nevadaexploration.com/investor_info/presentations/
Kelly Creek Project
NGE also announces that it has elected to pay 50% of the annual payment due to Genesis Gold Corporation ("Genesis"), an arm's length party, under a Mining Lease and Option to Purchase Agreement on Genesis's Hot Pot Claims by issuing common shares to Genesis. Specifically, subject to TSX Venture Exchange approval, NGE has elected to issue 50,049 Common Shares at a deemed price of $0.109 per share. The shares will be subject to a four month hold period expiring on February 24, 2013.
Nevada Exploration Inc.
NGE is an exploration company focused on gold in Nevada. NGE is led by an experienced management team that has been involved with the discovery of more than 30 million ounces of gold in Nevada.
NGE is aggressively applying the latest in "blind deposit" exploration technology to identify, acquire, and advance new exploration properties in Nevada's highly prospective, yet underexplored covered basins. Specifically, NGE has developed proprietary hydrogeochemistry (groundwater chemistry) exploration technology to explore for gold in Nevada's covered basins where traditional exploration techniques are challenged.
Using its industry leading exploration technology, NGE has assembled a portfolio of new gold projects, and with ownership interests covering more than 19,000 hectares (73 sq mi), is evolving as a major player in this world class jurisdiction. NGE's business model is to leverage its properties and technology to create shareholder value through generative exploration, joint ventures, and other exploration partnerships.
Wade A. Hodges, President & CEO, 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 release contains certain "forward-looking statements" including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. 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.
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.