Nevada Exploration Inc. provides an update on the results of its ongoing detailed 3D hydrogeochemistry program at its 100%-owned South Grass Valley Project in Nevada.
NGE has received assay results from 88 groundwater samples, from 44 of 54 new boreholes completed since the beginning of November 2017, and the Company is pleased to report that the South Grass Valley target is resolving into a focused, north-south lineament of enriched gold in groundwater above a projected shallow bedrock shelf of favourable lower-plate host rocks.
Due to challenging ground conditions, namely course boulder layers, NGE has predominantly completed the recent sampling boreholes using its GeoprobeTM equipment, rather than with its Scorpion drill rig, as initially planned. While the GeoprobeTM collects shallower samples, in this round of sampling from 30 m to depths up to 64 m, it is still able to provide multiple samples per hole, allowing for 3D interpretation of the hydrogeochemistry, and importantly, is much faster, allowing NGE to complete sampling boreholes at approximately five times the rate of the Scorpion. As a result, NGE has collected broader sample coverage than expected, although providing samples from not as deep. With this increased sampling density, NGE has collected sufficient groundwater level data to accurately model the regional direction of groundwater flow, providing important information to interpret the results at the Project.
In terms of the gold-in-groundwater results, the values ranged from less than detection to a high of 447 ppt, representing considerably higher enrichment than seen in earlier sampling at the Project. The image below shows all of: (i) the results of NGE’s earlier basin-scale sampling program in the larger Grass Valley (which identified both the South Grass Valley Project as well as NGE’s Grass Valley Project at the north end of the valley); (ii) the collar locations of NGE’s South Grass Valley boreholes, shown with groundwater elevation contours; and (iii) the updated distribution of gold-in-groundwater at the Project, showing all assays received to date.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/aa2d5aca-78f3-4d2a-84e0-1428394ef8ce
Discussing the results, NGE’s CEO, Wade Hodges: “We’re excited to share with our stakeholders that as we tighten the net at South Grass Valley by increasing our sampling density, the results are providing even more support for the continuity of the north-south zone of gold-in-groundwater enrichment located approximately 800 m to the east of the favourable lower plate Pogonip Formation host rock units exposed, outcropping at surface. Just like our work at our Kelly Creek Project, we are systematically testing for the critical components needed to host a large, Carlin-type gold deposit by integrating hydrogeochemistry with conventional geology to focus the South Grass Valley target for deeper drilling. Based on these encouraging results, we’re proceeding to complete additional boreholes, and we look forward to reporting the next round of results once complete.”
About South Grass Valley
NGE’s 100% owned, 22.1 km2, South Grass Valley Project is located approximately 50 kilometres south-southwest of Barrick Gold Corp.’s Cortez complex, along the Eureka - Battle Mountain Gold Trend, within the specific region of north-central Nevada known for Carlin-type gold deposits (“CTGD”). NGE originally identified the Project based on elevated concentrations of gold and CTGD trace element geochemistry in groundwater as part of a basin-scale generative exploration program. NGE’s follow-up work has established the significant, coincident presence of hydrothermally altered and geochemically anomalous lower plate carbonate host rock along the western edge of the Project, and interpretation of air magnetic and gravity geophysics projects this favourable host rock towards the target defined by the enriched gold and supporting geochemistry in groundwater.