July 06, 2020 - Vancouver, British Columbia – NV Gold Corporation (TSXV: NVX; US: NVGLF) (“NV Gold” or the “Company”) is pleased to announce that it has signed a letter agreement ( the “Option Agreement”) with Exodus Mineral Exploration Ltd. (“Exodus”) under which NV Gold holds an option to acquire up to an 85% interest in the Exodus’ right, title and interest in and to the mineral claims comprising the mineral exploration and development project known as the high-grade “Exodus Gold Project”, located in the Cariboo Mining Division, 40 km NNW of Prince George, British Columbia (the “Transaction”).
Highlights of the Exodus Gold Project:
- Privately held and actively explored since first staked in 2017. Exploration to-date has identified a potential district wide high-grade gold system encompassing an extensive orogenic quartz vein field hosted by deformed and metamorphosed volcanic and sedimentary rocks. Carbonate alteration is widespread around quartz veins.
- Widespread gold and associated arsenic and antimony geochemical anomalism displayed by quartz vein and soil samples. Recent trenching (Trench 1) yielded 14 rock samples grading greater than 5.0 g/t Au, including 9.01 g/t Au (35,600 ppm As, 609 ppm Sb), 13.70 g/t Au (26,000 ppm As, 295 ppm Sb) and 23.2 g/t Au (74,600 ppm As, 1,540 ppm Sb). Gold mineralization occurs with arsenopyrite and antimony minerals, suggesting a possible epizonal orogenic setting.
- Significant land position consisting of 11,241 hectares (112.41 sq. km), with multiple gold showings identified through mapping, prospecting, soil sampling, thin section analysis, channel sampling, and trenching.
- New extensions of logging roads completed in winter of 2019 provide approximately 15 km of year-round access throughout the mineral claims. Of note, similar mineralization was recently identified approximately 700 meters from Trench 1 in a new bedrock exposure along the new logging road extension.
- Preliminary discussions have been initiated with Lheidli T’enneh First Nation with a goal of establishing a working relationship or MOU. The logging access road to the Exodus Gold Project was recently named “Mine Road” by LTN Contracting in June 2020.
- Mineral claims are in good standing through December 31, 2021, with trenching and exploration permits also in place until 2021, and drilling permits are being finalized.
- Extensive infrastructure exists nearby with rail and power within 10 km, and the city of Prince George, BC within 40 km.
- Eligible for 30% Mountain Pine Beetle Mineral Exploration Tax Credit (“METC”) to assist in offsetting project expenses.
- Eligible for British Columbia Super-Flow-Through future equity financings.
- COVID-19 Operation Plan in place for safe, but active summer exploration program.
- 2020 exploration plan encompasses detailed mapping, soil sampling, structural modeling, project wide geophysics, structural modeling with the aim of developing a fall diamond drilling campaign to test priority targets. Summer work will also include environmental and cultural studies.
“Our technical team at NV Gold, comprised of Dr. Quinton Hennigh, Dr. Odin Christensen, John Watson and Alf Stewart, continues to be presented with high quality gold exploration projects,” commented Peter A. Ball, President & CEO. “We strongly believe the Exodus Gold Project provides a compelling new opportunity for the Company and its shareholders. The high-grade nature of gold mineralization at the Exodus Gold Project, combined with extensive access and infrastructure, helped make this an easy decision to acquire. The project can be explored and developed year-round. Preliminary exploration activities to-date indicate potential for what may be one of British Columbia’s most interesting new gold discoveries. As we prepare for our field season in Nevada including drill programs at our Slumber and Sandy Gold Projects, we have now expanded our pipeline of opportunity through this very exciting acquisition of a near-drill ready high-grade gold project in British Columbia, Canada. Exploration activities will be advanced immediately accelerated alongside our Nevada exploration campaign. Gold recently hit its highest Canadian dollar price, and 2020 looks to be a busy and exciting year for NV Gold.”
John Watson, Chairman of NV Gold commented, “Exploration work to-date at the Exodus Gold Project, and the 15 km trend recognized on the property, represents an attractive district-scale opportunity that provides significant potential for a gold discovery of merit and size, and what may be an attractive and emergent gold exploration project and district. This is a very interesting project based on results and preliminary evaluation, and we are pleased to be able to add this project to our portfolio.”
About Exodus Gold Project
- Located approximately 40km north of Prince George, BC.
- Since 2007, Geoscience BC has implemented the QUEST project, consisting of regional geophysical and geochemical surveys that identified favourable potential for gold mineralization on the Exodus Gold Project. This included a large-scale 15km long magnetic low thought to be associated with hydrothermal alteration.
- Structural interpretation of regional geology and geophysics has identified a significant north-south trending structure break transecting centrally through the property. This is inclusive of an interpreted deep-seated dilatational jog entirely confined within the claim block.
- Gold occurs in zones of stockwork quartz veinlets and in quartz veins up to 1.5 meters wide. Various types of surface rock chip samples have yielded assays ranging from anomalous up to 23.2 g/t Au.
- The prospective mineralized corridor is interpreted to be approximately 5 km wide and extend approximately 15 km along strike. This corridor is highlighted by a regional trend of low magnetism in which new gold showings have been discovered.
Project Location Map:
Exodus Gold Project Claims:
Exodus Gold Project Trench 1: Example of exposed quartz veins up to 1.5m wide:
Channel rock chip samples of high-grade gold quartz veins has been the initial focus of exploration work at the Exodus Gold Project. Based on limited sampling, significant mineralization is believed to occur within altered and deformed host rocks surrounding these veins. Gold mineralization is strongly associated with pathfinder elements arsenic and antimony, a possible indication of an epizonal orogenic setting for this system.
Discovery Rock Sample 2017 (7.2 g/t Au):
Table 1: Exodus Gold Project 2019 Rock Samples:
|2||T1-V4-04||13.70||26,000||295||Quartz Veins + Red Soil|
|9||T4-S-01||6.47||18,800||185||Red Soil + Small Rock Fragments|
|11||T1-V4-01||5.99||18,500||276||Quartz Veins + Host Rock|
|13||T1-V4-08||5.51||11,100||100||Quartz Veins + Red Soil|
|15||T4-S-02||4.51||14,600||99.8||Red Soil + Small Rock Fragments|
|16||T4-G-04||4.34||19,900||167||Host Rock + Red Soil|
|17||T4-G-01||4.22||16,400||128||Quartz Veins + Red Soil|
|18||T1-V1-07||3.99||8,550||55.7||Quartz Veins + Host Rock|
|19||T1-V1-06||3.88||16,200||228||Quartz Veins + Red Soil|
|22||T4-G-02||3.62||14,200||97.3||Quartz Veins + Red Soil|
|23||T4-G-03||3.51||30,100||267||Host Rock + Red Soil|
|24||T1-V3-01||2.94||24,600||333||Quartz Veins + Host Rock|
|27||T1-S-06||2.52||9,670||27.3||Red Soil + Host Rock|
|30||T1-V1-02||2.43||7,590||69.2||Quartz Veins + Host Rock|
|31||T1-S-03||2.27||7,360||98.7||Soil + Host Rock + Quartz|
|36||T1-S-04||1.86||1,420||51.8||Blue-Grey Vein Clay|
|42||T1-S-01||1.46||10,000||80.1||Black Soil + Host Rock + Quartz|
|43||T1-V5-04||1.36||10,400||60.5||Quartz Veins + Host Rock|
|49||T1-V2-02||1.02||10,400||55.1||Quartz Veins + Host Rock|
|50||T1-V5-05||0.940||6,210||39.5||Quartz Veins + Host Rock|
|53||T1-S-02||0.741||5,490||35.7||Red Soil + Host Rock + Quartz|
|58||T1-V1-01||0.607||2,980||33.8||Quartz Veins + Host Rock|
|61||T2-V4-03||0.513||2,770||23.8||Quartz Breccia Veins|
Anomalous to 0.428 g/t Au
|Host Rock + Red Soil|
Complete set of assays from Table 1 is available on the Company’s website.
Note: Additional recent surface rock chip samples are currently being assayed.
Table 2: Exodus Gold Project 2019 Initial Channel Samples:
|2||3.95||15,500||129.00||1.50||Channel/Chip||Quartz Veins + Red Soil|
|3||2.53||13,900||107.00||1.30||Channel/Chip||Quartz Veins + Red Soil|
|6||1.25||8,220||89.90||1.30||Channel||Quartz Veins + Host Rock|
|8||1.09||10,400||61.20||0.60||Channel||Quartz Veins + Host Rock|
|13||0.693||6,250||33.60||0.70||Channel||Quartz Veins + Host Rock|
|14||0.634||815||16.30||0.70||Channel||Quartz Veins + Host Rock|
|15||0.597||4,420||35.90||1.30||Channel||Quartz Veins + Host Rock|
|17||0.589||4,310||24.60||0.70||Channel||Quartz Veins + Host Rock|
|19||0.567||1,890||23.80||0.70||Channel||Quartz Veins + Host Rock|
|20||0.561||4,000||51.60||0.50||Channel||Quartz Veins + Host Rock|
|21||0.547||4,690||30.50||1.20||Channel||Quartz Veins + Host Rock|
|22||0.528||5,280||46.00||0.60||Channel||Quartz Veins + Host Rock|
|23||0.514||3,960||30.70||1.20||Channel||Quartz Veins + Host Rock|
|24 to 52||Anomalous to 0.467 g/t||Channel||Quartz Veins + Host Rock|
Note: Complete set of assays from Table 2 is available on the Company’s website.
Note: Trench and channel sampling is expected to continue throughout the 2020 exploration season. Samples above are preliminary and expected to be the first of many. As stated above, many recent samples collected from across the project are awaiting assay.
Quality Control Statement
All rock samples reported during 2019 by Exodus were subject to internal quality control protocol consisting of insertion of certified reference materials and blank material into sample batches. Samples during the 2019 season were shipped by Exodus to AGAT Laboratories located in Burnaby, British Columbia . Rock samples were prepared by AGAT with crushing to 90% passing 2mm mesh, and a 250 gram split pulverized to 85% passing 75 um.
Rock samples were analyzed for gold by AGAT using Fire Assay with a combination of atomic absorption and gravimetric finishes on 50 gram aquilots. Over-limit >10 ppm Au samples were analyzed by gravimetric finish. Rock samples were also analyzed for multi-element geochemistry using a sodium peroxide fusion followed by an ICP-MS finish. Based on collection methodology rock sampling in general may be biased in nature and does not represent an accurate depiction of rocks hosted on the overall property.
The scientific and technical information contained in this news release as it relates to the Exodus Gold Project has been reviewed and approved by Max Keogh, P.Geo, and a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Terms of the Proposed Transaction
Under the terms of the Option Agreement, NV Gold may acquire a 51% interest in the Exodus Gold Project by paying CDN$30,000 in cash, issuing 4.9 million shares of NV Gold, and completing CDN$1.6 Million in exploration work commitments on the Exodus Gold Project by the third anniversary of the date (the “Approval Date”) the TSX Venture Exchange accepts the Option Agreement. After acquiring a 51% interest, NV Gold holds a further option to acquire an additional 34% (total 85%) in the Exodus Gold Project by issuing an additional 5.1 million shares of NV Gold, and completing an additional CDN$1.4 Million in exploration work commitments on the Exodus Gold Project by the fifth anniversary of the Approval Date. After NVX has exercised its first option and either exercised its second option or the second option has terminated, a joint venture will be formed with Exodus, with their respective interest either 51% NV Gold:49% Exodus or 85% NV Gold:15% Exodus depending on whether NV Gold exercises its second option. Under the agreed terms of the joint venture, if a person’s interest in the joint venture is diluted below 10%, its interest will be converted to an additional 1% NSR Royalty with the non-diluting party then holding 100% of the Property. Exodus has retained a 2% NSR Royalty on the Exodus Gold Project, with NV Gold holding option to purchase 1.0% for CDN$1.0 million. Exodus has agreed to hold over 70% of all shares it receives for a minimum of one (1) year, instead of just the statutory four months plus a day.
Peter A. Ball, President and CEO commented, “Included in the above stated terms, NV Gold is required to pay only CDN$30,000, issue 250,000 shares, and commit to a minimum of CDN$150,000 in exploration expenses within the first six months of the option. The Company’s goal is to ensure we minimize initial share dilution and cash from our treasury prior to gaining additional valuable information on the Exodus Gold Project. We are excited to have the opportunity to earn-in to this project.”
NV Gold’s obligations under the Option Agreement are subject to NV Gold being satisfied with its due diligence investigations and receipt of the approval of the TSX Venture Exchange. All shares issued related to the transaction will be subject to the statutory hold period of four months plus a day from the date they are issued.
Additional technical information will be made available upon further exploration and review of the project.
During the Covid-19 pandemic, NV Gold is committed to advancing exploration in a socially responsible manner, respecting good health and safety guidelines to protect its own employees, consultants, and contractors as well as the citizens of the communities in which it is working. NV Gold would like to thank all its stakeholders for their patience and support.
About NV Gold Corporation
NV Gold (TSXV: NVX, US:NVGLF) is a junior exploration company based in Vancouver, British Columbia that is focused on delivering value through mineral discoveries, leveraging its highly experienced in-house technical knowledge, and identifying and drilling 2-3 priority projects per year. NV Gold controls multiple drill-ready projects in Nevada, and has entered into an Option Agreement on a high-grade gold near-drill ready project in British Columbia, Canada.
On behalf of the Board of Directors,
Peter A. Ball
President & CEO
For further information, visit the Company’s website at www.nvgoldcorp.com or contact:
Peter A. Ball, President & CEO
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, that the Project is an attractive district-scale opportunity that provides significant potential for a gold discovery of merit and size, that the 15km long magnetic low is thought to be associated with hydrothermal alteration, the plans to complete exploration or development of the Project and other future plans and objectives of the Company, including exploration plans at the Sandy or Slumber Gold Projects, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include regulatory issues, market prices, availability of capital and financing, general economic, market or business conditions, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.