NV Gold Corporation ("NV Gold") (TSX VENTURE:NVX) is pleased to announce that it has entered into a mining lease agreement for the Roberts Gold property, which comprises an aggregate of 104 unpatented claims covering approximately 2,080 acres. The property is contiguous to and north of NV Gold's Afgan-Kobeh property located on the Cortez Trend, approximately 28 miles northwest of Eureka, Nevada.
The Afgan-Kobeh property hosts a NI 43-101 reported resource, estimated as of March, 2004, of 1,851,000 tons at 0.027 oz/ton (50,000 oz.) gold indicated and 1,286,000 tons at 0.026 oz/ton (34,000 oz) gold inferred at a 0.010 oz/ton cutoff grade.
The Roberts Gold property is geologically similar to the Afgan-Kobeh project, which hosts Carlin-style, sediment-hosted gold mineralization that is common to northeastern Nevada. Potential also exists on this property for significant mineralization related to regional scale faulting associated with the Northern Nevada Rift. More information regarding the Afgan-Kobeh project, including the details of the resource estimate, can be reviewed in the Technical Report, Afgan-Kobeh Project, Eureka County, Nevada dated May 24, 2010 and prepared by Mine Development Associates at https://www.sedar.com/homepage_en.htm.
"We are excited to have the opportunity to double our land position in an area with this type of potential," stated John E. Watson, President and C.E.O. NV Gold. "When combined into a single exploration play, the property exhibits the risk profile of a known resource and the added upside of a much larger target."
Under the mining lease agreement, NV Gold has leased the Roberts Gold property, subject to making advance royalty payments of US$10,000 upon the lease agreement becoming effective, a further US$10,000 six months thereafter, US$20,000 on the first five anniversary dates of the effective date of the lease agreement thereafter, and US$30,000 on each such anniversary date thereafter. NV Gold is responsible for all property maintenance obligations and has granted the lessor a 3% NSR. NV Gold has the right to purchase 25% of the royalty at any time for US$1,000,000 and a further 25% for US$2,000,000 at any time.
In connection with this acquisition, NV Gold has agreed, subject to acceptance of the TSX Venture Exchange, to issue to a third party 250,000 common shares and warrants to purchase an additional 250,000 common shares (the "Warrants") at a price of CDN$0.40 per share for a period of two years. These securities are being issued in respect of certain area of interest obligations of NV Gold that apply to the Roberts Gold property. The expiry date of the Warrants is subject to acceleration such that, should the volume weighted average price of the common shares exceed CDN$0.60 for twenty consecutive trading days, NV Gold may notify the holder in writing that the Warrants will expire 15 trading days from receipt of such notice unless exercised by the holder before such date.
The mining lease agreement is not effective until NV Gold has issued the 250,000 common shares and the Warrants to address its area of interest obligations and, accordingly, the lease agreement is subject to the TSX Venture Exchange acceptance of the issue of these securities.
NV Gold is a newly listed TSX Venture company with a focus on developing gold-copper resources in politically stable, mining friendly jurisdictions. The Company has a proven management team and extensive connections to projects and financing.
Source: NV Gold Corporation