At the request of Investment Industry Regulatory Organization of Canada (IIROC), Nevada Exploration is happy to elucidate and provide more information related to its January 16, 2018, news release about the company’s results at its Kelly Creek Project (the “Original Press Release”).
Geologic context of nearby deposits
NGE desires to clarify the information released about the adjacent Lone Tree and Marigold deposits, the sizes of which were rounded to the closest million ounces and presented just as 5 M oz and 8 M oz respectively, in the Original Press Release:
- Lone Tree produced 4.60 M oz of gold from 1991 to 2015; and
- Marigold produced 3.24 M oz of gold from 1989 up to and including 2016; and at December 31, 2016, SSR Mining published a 4.98 M oz Indicated Mineral Resource (348.30 Mt at 0.45 g/t).
Disclosure of an Exploration Target
The disclosure of the prospect for Kelly Creek to host a 5 to 10 Moz gold deposit constitutes disclosure of an exploration target, and therefore is liable to NI 43-101, 2.3(2) – Restricted Disclosure. Consequently, the Company wishes to offer extra cautionary language with respect to the statements: “Our results at Kelly Creek combine all the critical components necessary to source a world-class gold deposit.”, and “NGE believes that these results confirm that all the critical components needed to host a world-class 5 - 10 Moz deposit are present at the Kelly Creek Project”. NGE is both required and is keen to emphasize to its stakeholders that at this stage of exploration, the Kelly Creek Project remains a target for which the prospective quantity and grade is still conceptual in nature. There has been inadequate exploration to establish a mineral resource, and it is unclear if additional exploration will result in the target being delineated as a mineral resource.
NGE Management Experience
The Company wants to make clear the statement that NGE’s management has been involved with the discovery of 30 M oz gold in Nevada. Owing to the uncertainty related with characterizing each of the historic resources in terms of their resource and reserve categories, NGE wishes to withdraw the reference to the number of ounces linked with these discoveries.