NV Gold Corporation (TSX.V - NVX) ("NV Gold" or the "Company") is pleased to announce it has completed the purchase of a 100% interest, subject to a 1% NSR royalty, in the mineral claims which comprise the Afgan and Kobeh properties in Eureka County Nevada (the “Property”).
The Property has been the subject of previous work by several operators, covers approximately 2,180 acres and consists of 109 unpatented claims. This project is located in northeastern Nevada, approximately 28 miles northwest of the town of Eureka at the southeastern end of the Battle Mountain-Eureka Trend (also referred to as the Cortez Trend).
In 2004, Castleworth Ventures Inc. reported a NI 43-101 compliant resource estimate in respect of the property comprising an indicated gold resource of 50,000 ounces (1.85 million tons at an average grade of 0.027 oz Au/ton (0.926 g Au/t)) and an inferred gold resource of 34,000 ounces (1.29 million tons at an average grade of 0.026 oz Au /ton (0.891 g Au/t)) using a cut-off of 0.010 oz Au/ton (0.343 g Au/t), based on 145 drill holes and 50,545 ft of drilling completed prior to 1998.
NV Gold acquired the property by paying the Vendor US$100,000 in cash and issuing the Vendor a US$100,000 promissory note due on or before June 14, 2011, 600,000 shares of the Company and 600,000 share purchase warrants of the Company (the “Warrants”) entitling the holder to purchase an additional 600,000 shares of NV Gold at a price of CDN $0.40 until June 14, 2012. The expiry date of the Warrants is subject to acceleration such that, should the volume weighted average price of the common shares the Company exceed CDN $0.60 for twenty consecutive trading days, NV Gold may notify the Vendor in writing that the Warrants will expire 15 trading days from receipt of such notice unless exercised before such date. The shares, the warrants and any shares issued upon exercise of the Warrants are subject to a hold period expiring on October 15, 2010.
NV Gold is a newly listed gold copper exploration company with a proven management team and extensive connections to projects and financing.
ON BEHALF OF THE BOARD OF DIRECTORS OF
NV Gold Corporation
“John E. Watson”, President
For further information, visit the website at www.nvgoldcorp.com or contact:
John E. Watson,
Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the mineral potential of the property, including a resource estimate. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include the uncertainty of continuity of observed mineralization assumed in mineral resource estimates, particularly inferred resources, unsuccessful exploration results, changes in metal prices and changes in the availability of funding for mineral exploration and development. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
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 and accuracy of this release.