NV Gold Corporation (TSX.V - NVX) (“NV Gold” or the “Company”) is pleased to announce it has signed a lease with MinQuest, Inc. of Reno, Nevada on the Shamrock (Cobre) copper project located in Grant County, New Mexico, USA for a term of 10 years, renewable for a further 10 years. The project is 11 miles southwest of Silver City, NM, and 3 miles west of Freeport-McMoRan’s (NYSE- “FCX”) Tyrone copper mine. The property consists of 45 unpatented mining claims covering a total of approximately 900 acres.
The Shamrock property represents an early-stage exploration program with defined drill targets. The property contains known near-surface copper-oxide and chalcocite occurrences and widespread hydrothermal alteration. The property was explored by several companies in the 1960’s and 1970’s with limited shallow drilling demonstrating the existence of copper mineralization from the surface to depths of at least 40 meters. The property has never been systematically drill-tested and has not been drilled at all for at least two decades.
Interpreted IP geophysical responses on the property have all the characteristics and are consistent with a faulted sheet-like blanket of supergene copper enrichment. Potential exists for discovery of an intact porphyry copper system at depth – a model that has never been drill-tested on the property.
The Tyrone Mine, operated by Freeport McMoRan Copper and Gold Inc., is a major copper deposit that operated from 1968 to 2008. A smaller deposit, the Little Rock, also owned by Freeport, lies between Tyrone and Shamrock, approximately one mile east of the project and is in the permit stage.
The terms of the agreement require the Company to make an initial cash payment of US$30,000 and complete a work commitment of US $275, 000 in the first year, with a further work expenditure of $250,000 per year thereafter and annual cash payments escalating to $75,000 in the tenth year of the lease. The lease is for a 100% interest, subject to a 3% net smelter returns royalty, and is for a 10 year term, renewable for a further 10 years.
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.nvgold.com or contact:
John E. Watson, (303) 674-9400
Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. 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 unsuccessful exploration results, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.