McEwen Mining (MUX-T) has commenced drilling on Nevada Exploration (NGE-V) Grass Valley project in north-central Nevada, south of Barrick Gold Corp.'s Cortez Hills gold mine.
Jan 27, 2014 - NR
The predrilling exploration results at the project included: detailed hydrogeochemistry; vegetation and soil surface geochemistry (including soil gas mercury); the acquisition and reprocessing of two historic seismic geophysical lines; geologic mapping; and a gravity geophysical survey. The results have provided a strong geologic, geophysical, and geochemical case for a series of drill holes to test for: the depth to reactive lower plate host rocks and the presence of a geochemically anomalous, hydrothermal alteration system large enough to host a significant Carlin-type gold deposit. Based on these results, McEwen Mining has notified NGE that it has now commenced drilling at the project.
For a more detailed description of the project refer to NGE's Grass Valley project update news release dated Aug. 12, 2013.
Grass Valley exploration agreement
As per the terms of the exploration agreement, McEwen Mining and NGE's interests in the Grass Valley designated property are 70 per cent and 30 per cent, respectively. McEwen Mining is the project manager, has sole discretion on the nature and timing of all exploration and development activities, and is solely responsible for payment of all costs incurred in respect of the project. As McEwen Mining elects to continue to maintain the Grass Valley designated property, McEwen Mining will pay NGE $100,000 (U.S.) on the first through fourth anniversaries of acquiring the designated property, and then $250,000 (U.S.) on each subsequent anniversary. If McEwen Mining completes a production decision report on the designated property that McEwen Mining deems sufficient to base a decision to commence production, the designated property will advance under a joint venture agreement, at which time both parties will be required to finance their pro rata share of project expenditures or be diluted. If either party's interest is diluted below 10 per cent, such party's interest converts to a 2-per-cent net smelter royalty (NSR).
NGE is aggressively applying the latest in covered deposit exploration technology to identify, acquire and advance new exploration properties in Nevada's highly prospective yet underexplored covered basins. Specifically, NGE has developed proprietary hydrogeochemistry (groundwater chemistry) exploration technology to explore for gold in Nevada's covered basins where traditional exploration techniques are challenged.
Using its industry-leading exploration technology, NGE has assembled a portfolio of new gold projects, and with interests in 135 square kilometres (52 square miles), is evolving as a major player in this world-class jurisdiction. NGE's business model is to leverage its properties and technology to create shareholder value through generative exploration, joint ventures and other exploration partnerships.
Wade A. Hodges, president and chief executive officer, Nevada Exploration, is the qualified person, as defined in National Instrument 43-101, and has prepared the technical and scientific information contained in this news release. |
