Nevada Exploration Inc. provided a progress update from its South Grass Valley Carlin-type gold project located 50 kilometres south-southwest of Nevada Gold Mines' Cortez complex, including reporting assays for drillhole SGVC013A, the completion of drillhole SGVC014A, and the release of an updated geologic model. The planned upper portion of SGVC013A intersected a series of high-angle shear zones and massive damage zones within the lower-plate Goodwin Formation, marking the top of the targeted Water Canyon structural corridor (“WCSC”). These structures host a series of hydrothermal breccias consisting of a sulfidic matrix containing highly silicified transported fragments believed to have been forced up from the Hales Formation below, the primary host unit at the project.

Due to challenging drilling conditions, SGVC013A was stopped at 762 metres, before reaching its planned depth designed to reach the Hales. While drilling in this location has not yet provided samples from the Hales, NGE has received all lab assays from SGVC013A and has completed its pXRF geochemistry review of the major structural features. Lab assays from 1.5-metre sample intervals of the Goodwin show generally low concentrations of Carlin-type pathfinders, including low gold values, consistent with this unreactive bedrock unit supporting limited lateral hydrothermal fluid flow.

The review of the fracture-controlled breccias and other structural features cutting through the otherwise-unaltered Goodwin has confirmed the presence of highly anomalous Carlin pathfinders, including seven discrete features containing >1,000 ppm arsenic (pXRF), plus another 1.5-metre lab sample collected across a similar fracture feature reporting 0.17 ppm gold (lab), which support NGE's plans to return to complete a deeper hole in this area to test where these mineralized structures cut through the Hales Formation below. NGE believes the major geologic takeaways from the 762 metres drilled to date in this location are: The improved understanding of the position and role of the WCSC in establishing the Carlin-type geologic setting at South Grass Valley; The intensity of the alteration and pathfinders focused along high-angle faults and related breccias highlighting the degree to which hydrothermal fluid flow in the system was structurally controlled; and The importance of following these structural fluid pathways downwards to test for Carlin-type mineralization where they intersect the more-reactive Hales.