Nevada Exploration Inc. (“NGE” or the “Company”) (TSX-V:NGE;
OTCQB:NVDEF) provides the following update:
Data Review and Target
Generation
The Company has engaged certain experts to
conduct a comprehensive compilation, review and verification of the
Company’s data that have been collected in various formats over the
past two decades. These data include hydrogeochemistry, drill-logs,
assays, and geological interpretations. On completion of the
review, the Company’s team of experts will generate and prioritize
a pipeline of targets for advancement during the 2023 field
season.
In connection with target generation, the
Company is also conducting a review of its extensive land position
in Nevada and, in due course, will determine whether to rationalize
any of these positions. Decisions will be based on multiple
factors, including target priority and the cost of retaining
claims.
The Company is committed to the use of
hydrogeochemistry as an important tool, in combination with
geological, alteration and remotely sensed data, to identify gold
deposits hidden under cover within Nevada, and proximal to many of
the most productive gold mines in the world.
Drill Contract
Drilling on the Company’s flagship South Grass
Valley project stalled in Q2 of 2022 due to a variety of factors
suffered by the drill contractor, Drill NV. The issues included the
inability of Drill NV to source critical parts for the drill in a
timely manner, as well as the inability of Drill NV to retain
staff. In addition, there has been a marked lack of reasonable
communication from Drill NV, despite numerous unsuccessful attempts
by the Company and its agents to contact Drill NV.
The Company is unsure whether Drill NV has the
capacity to conduct further drilling and therefore, in subsequent
disclosure, the Company may be forced to reconcile its previously
reported approximately C$1.7 million asset and associated
approximately C$0.6 million liability related to the Drill NV
contract, with a resulting impact on the financial position of the
Company.
Previous management of the Company sold a
combined drill and water sampling rig (the “Scorpion”) to Drill NV
in December 2021. The Scorpion had been used historically to
conduct in-house water sampling as part of the ongoing collection
of hydrogeochemical data critical to target generation. The Company
is currently considering whether to attempt a recovery of the
Scorpion rig.
Kelly Creek Project
The Company, Austin Gold Corp., and Austin
American Corporation (collectively “Austin”) have amended the terms
of the Option to Joint Venture Agreement on the Kelly Creek
Project, Humboldt County, Nevada (the “KC Option Agreement”). The
amended terms state that Austin must spend a cumulative total of
C$2.5 million (down from C$4.75 million previously) by June 30,
2025, to earn an initial 51% interest in the Kelly Creek Project.
The amended terms also include a reduction in total expenditures to
C$5.0 million required for Austin to earn an additional 19%
interest (for a total of 70%) in the Kelly Creek Project.
Austin must continue to pay the underlying
property lease payments and BLM and county fees to keep the
properties in good standing during the term of the agreement.
While the amended KC Option Agreement represents
a significant reduction in commercial terms, and therefore in
potential future value for the Company, it also allows the Company
to retain a valued industry partner who will maintain a land
package in the Kelly Creek Basin at no present cost to the
Company.
Personnel Changes
The Company wishes to thank Wade Hodges for his
fundamental contributions to the Company over the past two decades
as he transitions from management to a consulting role. Wade has
been instrumental in advancing the concept of groundwater
geochemistry as a critical tool in identifying gold deposits hidden
under deep cover.
About Nevada Exploration
Inc.
Led by an international team of explorers, NGE
is applying modern technology to systematically explore for the
undiscovered second half of Nevada’s gold endowment waiting to be
uncovered within Nevada’s valley basins. NGE is advancing a
portfolio of gold exploration projects, primarily focused on three
district-scale Carlin-type gold projects, including its flagship
South Grass Valley project, located near the Cortez Complex of
Nevada Gold Mines.
For further information, please contact:
Nevada Exploration Inc.Email:
info@nevadaexploration.comTelephone: +1-604-601 2006Website:
www.nevadaexploration.com
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.
Cautionary Statement on Forward-Looking Information:
This news release contains “forward-looking information” and
“forward-looking statements” (collectively, “forward-looking
information”) within the meaning of applicable securities laws,
including, without limitation, expectations, beliefs, plans, and
objectives regarding projects, potential transactions, and ventures
discussed in this release.
In connection with the forward-looking information contained in
this news release, the Company has made numerous assumptions,
regarding, among other things, the assumption the Company will
continue as a going concern and will continue to be able to access
the capital required to advance its projects and continue
operations. While the Company considers these assumptions to be
reasonable, these assumptions are inherently subject to significant
uncertainties and contingencies.
In addition, there are known and unknown risk factors which
could cause the Company’s actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information contained herein. 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.
A more complete discussion of the risks and uncertainties facing
the Company is disclosed in the Company’s continuous disclosure
filings with Canadian securities regulatory authorities at
www.sedar.com. All forward-looking information herein is qualified
in its entirety by this cautionary statement, and the Company
disclaims any obligation to revise or update any such
forward-looking information or to publicly announce the result of
any revisions to any of the forward-looking information contained
herein to reflect future results, events or developments, except as
required by law.
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