Nevgold Resource Corp. ("Nevgold" or "the Company") (TSX VENTURE:
NDG) is pleased to provide an update on the results from two core
holes and one shallow reverse circulation (RC) drill hole on the
Company's Cordero gold-silver property in northern Nevada. The
first core hole, MC-001, intersected anomalous gold mineralization,
while the second core hole MC-002, intersected the highest gold
grade sampled on the property to date at 5.4 feet (ft) grading 5.07
grams per tonne (g/T). Significantly, this 5.07 g/T intercept
(0.148 oz/ton) is the first direct indication of high grade vein
style mineralization, and is a major milestone in confirming the
Company's exploration model. The single shallow RC hole, MR-14, was
drilled from the same site as last year's MR-010, and intersected
the best near surface oxide gold interval on the property to date
at 30 ft grading 1.04 g/T (0.030 oz/ton) gold.
Although this recent drill program was limited in the number of
holes and total footage, the drilling establishes the presence of
high grade gold mineralization on the property for the first time.
In addition, the drilling confirmed the presence of widespread,
lower grade gold mineralization as part of a larger precious metals
system. These new Cordero intercepts represent significant
advancements in this Nevgold grassroots gold discovery.
Introduction and Discussion of Drill Results
The Cordero project occurs in the historic Cordero-McDermitt
underground and open pit mercury mining complex on the Nevada side
of the Nevada-Oregon border, and is situated near the town of
McDermitt, Nevada. The recently completed drill program is a
follow-up to the Company's 13 hole 9,495 ft shallow RC program
completed between 2008 and early 2009, and represents the first
"deep" test for high grade gold-silver vein mineralization.
The three hole program, included MC-001 cored from the surface
to a total depth of 1,505 feet, MC-002 pre-collared with reverse
circulation to 600 feet and completed with core to 1,292 feet, and
MR-014 drilled with reverse circulation to 240 feet. Total footage
for these three angle holes was 3,037 ft, with 2,197 ft of this
core.
MC-001 was designed to test the prominent northeast-trending
M-Fault zone approximately 1,000 ft below the surface. This hole
was moderately to strongly altered for the first 1,423 ft, with a
highly altered and brecciated interval from 1,022 to 1,411 ft.
Despite the extensive alteration and pyrite-marcasite
metallization, anomalous gold values did not exceed 0.305 ppm.
MC-002 targeted the northwesterly trending Antimony Zone, an
area with the most extensive near surface low grade oxide gold
mineralization discovered on the property to date (see Company
March 31, 2009 news release). The hole was altered for its entire
length, with a highly altered and brecciated interval between 890
and 1,254 ft. However, the best gold intercept was a relatively
shallow intercept at 745 ft, or approximately 682 vertical ft below
the surface. This high grade interval from 740.6 to 746 ft.,
contained a one inch thick clay-adularia-quartz veinlet that
carried the entire interval at 5.07 g/T gold (0.148 opt). Although
too little of the veinlet material was left to re-sample, detailed
sub-sampling of a quarter core split representing the wall rock
material only averaged 0.050 g/T gold, supporting the visual
determination that virtually all of the gold in the 5.4 ft.
interval was contained in the one inch veinlet. Veining in other
volcanic hosted precious metals systems in northern Nevada has been
observed to pinch and swell, resulting in the formation of very
narrow high grade zones similar to this intercept, and occurring
along strike from thicker high grade shoots.
MC-014 was the final hole drilled, and was a relatively short
240 ft. reverse circulation drill hole into the Antimony Zone. The
Antimony Zone is a mostly buried northwesterly trending fault zone
partially defined by five foot RC drill intercepts of highly
anomalous antimony that locally exceeds 1% and gold intercepts up
to 1.350 g/T related to the margin of a 20 to 135 ft thick silica
cap. Drilled to further delineate the known near surface oxide
mineralization, this last hole encountered the best gold interval
to date between 110 and 140 ft. grading 1.04 g/T gold (30 ft. at
0.030 opt). Although near surface gold mineralization in the
Antimony Zone has not been a primary target of Nevgold's
exploration work, a detailed understanding of the near surface
alteration and mineralization is important for modeling deeper
structural and stratigraphic controls to high grade gold
mineralization. This evolving near surface model is a less
expensive tool for targeting deeper precious metal vein
targets.
Exploration History
The historic mercury production at Cordero and McDermitt rank
each mine as the largest mercury producers in the western
hemisphere during their respective years of operation from 1933 to
1991. In 2001, significant gallium mineralization was discovered on
the property by Gold Canyon Resources. Nevgold personnel have been
sampling and mapping on the property intermittently since 1999,
while building a database for precious metal vein exploration.
Nevgold started its exploration program at Cordero in early 2007,
and to date has completed two successful drill programs. The
initial 13-hole reverse circulation drill program discovered the
first significant gold mineralization on the property and validated
the original conceptual model that predicted the shallow
mercury/antimony system was related to an underlying precious
metals system.
Geologic Overview
The 15 million year old bi-modal volcanic host rocks at Cordero
occupy the southeast rim of the McDermitt Caldera, and are the same
age and composition as those at other precious metal mines and
deposits in northern Nevada. All units exhibit locally strong
alteration, ranging from near surface lakebed sediments to deeper
rhyolites, minor andesites and basal basalts.
Commonly exposed at surface, basal lakebed sediments host the
extensive flat-lying mercury deposits in the McDermitt Pit. The
contact between the lakebed sediments and the underlying bi-modal
volcanic sequence can be occupied by a locally extensive thin to
very thick low temperature silica cap. Within the cap, the thicker
portions and zones of rapid changes in thickness coincide with
significant fault zones and represent a guide for mapping structure
in the area. In the more robust portions of the hydrothermal
system, the base of this silica cap can be clay altered with strong
base metal, arsenic, antimony, gallium and highly anomalous
precious metal mineralization. Below this contact, a felsic to
intermediate sequence of rhyolites, latites and thin andesites can
be silicified, veined, clay altered and have remarkably persistent
pyrite/marcasite metallization in a brittle unit that provides the
best host rocks for precious metal vein mineralization. This unit
hosts the best gold intercept identified on the property as
discussed above. Major fault zones exhibit extensive structural and
collapse brecciation, as well as strong clay, silica and marcasite
metallization locally.
Summary and Planned Work
Nevgold's initial near surface reverse circulation drill program
at Cordero confirmed the original model that the historic Cordero
mercury deposits are related to a volcanic hosted precious metals
system typical of northern Nevada. The recent drill program at
Cordero was successful in identifying high grade veining as
expected in this particular geologic environment. As discussed
above, the intercept of 5.04 g/T over 5.4 ft. could represent lower
end economic grades and mining widths in an underground mining
scenario. Considering the overall size of the known geologic system
at Cordero as defined by the extent of exposed mercury mining,
silicification and clay alteration, the potential to discover a
significant new precious metals vein deposit has been significantly
enhanced. Easy access, power, existing mine history and relatively
close milling capacity, make the high grade vein target at Cordero
an especially attractive exploration target.
The Company is currently updating its exploration model to
design a program to drill test possible extensions of the MR-002
high grade intercept in the Antimony Zone area. This program would
attempt to confirm the veining, probe deeper portions along strike,
and provide enough data to determine the orientation of the vein
zone. Additional information on the Cordero program can be found in
the March 2009 Company press release and on the Company website at
www.nevgoldcorp.com.
Comments on Sampling, Assaying, and QA/QC
The Company's drill samples were collected in accordance with
accepted industry best practices. Sample preparation and assaying
was performed at the ALS Chemex lab (ISO 9001:2000 accredited) in
Reno, Nevada. Gold was analyzed by fire assay with an ICP/AES
finish and 0.001 ppm detection limit. As standard procedure, the
Company conducts routine QA/QC analysis on all assay results,
including the systematic utilization of certified reference
materials, blanks, and field duplicates.
Mr. Thomas H. Chadwick, P.Geo., a Qualified Person as defined by
National Instrument 43-101 and President of the Company, has
reviewed and verified the technical information contained in this
news release.
About Nevgold Resource Corporation
Nevgold Resource Corporation is focused on the acquisition,
exploration and development of select high quality precious metals
properties with near to intermediate term production potential in
the US and Canada. At present, the Company is primarily focused on
exploring the Cordero property in Nevada as discussed above.
Forward-Looking Statement
Some of the statements in this news release contain
forward-looking information that involves inherent risk and
uncertainty affecting the business of Nevgold Resource Corp. Actual
results may differ materially from those currently anticipated in
such statements.
Neither TSX Venture Exchange nor the Investment Industry
Regulatory Organization of Canada accepts responsibility for the
adequacy or accuracy of this release.
Contacts: Nevgold Resource Corp. Nathan A. Tewalt Chief
Executive Officer (360) 392-8747 ntewalt@nevgoldcorp.com Nevgold
Resource Corp. Kim C. Casswell Corporate Secretary (604) 669-0868
kcasswell@nevgoldcorp.com www.nevgoldcorp.com
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