NV Gold Corporation (“NV Gold”) (TSX.V - NVX) reports it has completed the 25-hole 2,355- metre reverse-circulation drill program (previously announced Oct. 4 & Oct. 15, 2010) on its 100-per-cent-owned (subject to a 1% NSR) Afgan-Kobeh gold project, which is located 28 miles northwest of Eureka, Eureka County, Nevada, along the Cortez Trend. Approximately 7,773 feet of drill samples collected from the 25 drill holes have been submitted for analysis to ALS Chemex of Reno, Nevada. The Company expects to report the assay results during early January, once all assays have been received and evaluated.
“We are very encouraged by what we have seen in this program,” stated John E. Watson, President and CEO NV Gold Corporation. “We believe we are seeing some new geologic features not identified in previous programs, which could increase the tonnage and enhance the grade of the known mineralization.”
The objective of the drill program, which consisted of testing new targets, infill drilling and stepout drilling, is the expansion of the NI 43-101-compliant gold resource of 50,000 ounces Indicated (1.85 million tons at 0.027 ounce per ton gold (0.926 gram per ton gold)) and 34,000 ounces Inferred (1.29 million tons at 0.026 ounce per ton gold (0.891 gram per ton gold)). Work completed to date indicates that the Afgan-Kobeh project is a Carlin-type gold deposit that remains open to expansion in several areas.
The NI 43-101-compliant gold resource was modeled to lie within a semi-continuous zone that extends for over 4,100 feet in a north-northeast direction and 1,500 feet east-west. Gold occurs as oxidized, epithermal, disseminated, sediment-hosted mineralization located primarily at the brecciated base of a section of clastic sedimentary rock, identified as probable Webb Formation of Mississippian age. This host environment has been particularly productive in northern Nevada, yielding many oxide ore deposits that are processed by heap leach methods.
The Afgan-Kobeh project consists of two parcels, which include a block of 109 unpatented claims covering an area of approximately 2,180 acres that are owned by the Company, subject to a 1% NSR in favor of a third party, and a lease that applies to 104 unpatented claims covering an area of approximately 2,080 acres. A total over 4,200 acres is currently controlled by the Company. The project’s potential is enhanced by its location near the southeastern limit of an alignment of mineral deposits, referred to as the Battle Mountain-Eureka Gold Trend (also known as the Cortez Trend), at its intersection with the Northern Nevada Rift. The project lies between the previously-mined Gold Bar deposit (Atlas; now controlled by U.S. Gold) and the currently producing Archimedes (Ruby Hill) mine of Barrick Gold Corp.
The Cortez Trend and the Carlin Gold Trend (to the northeast) are widely believed to reflect major crustal structures and account for a significant number of the sediment-hosted, disseminated gold deposits in the western United States.
NV Gold is a newly listed company committed to developing gold-copper resources. The Company has 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, CEO
For further information, visit the Company’s website at www.nvgoldcorp.com or contact:
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.
Statements in this news release relating to the acquisition agreement and future payments, securities issuance and royalty grant may constitute forward-looking information. Such statements address future events and conditions and, as such, involve known and unknown risks, including risks relating to the due diligence review of the Vendor, which may cause the actual results to be materially different from any future results expressed or implied by the statements. Other than as required by law, NV Gold undertakes no obligation to update its forward-looking information.