DEL MAR, Calif., Dec. 12, 2013 (GLOBE NEWSWIRE) -- Merrill Moses, President of Nevada Gold, Corp. (the "Company") (OTCQB:NVGC), is pleased to announce that the Company has extended its option agreement on the Diamond Jim Mine property, in consideration of the payment of $2,500. The extension now allows the Company to comply with its work expenditure requirements by December 31, 2014.
Given the Company's intention to focus on the Diamond Jim Mine project, the Company has elected not to proceed with the Long Canyon Trend property at this time, and has allowed the option agreement to lapse in accordance with its terms. We are still interested in the Long Canyon Gold trend; however we feel our focus and resources are better served on the Diamond Jim project at the present time. The Company is awaiting results from Chemex Labs in Elko Nevada on its initial samples taken on the Diamond Jim property.
We recommend that our shareholders and any prospective investors rely solely upon the information filed by our Company with the Securities and Exchange Commission, and to visit the Company's website, and not to rely on information provided by third parties. If there are any questions regarding our Company, please contact us as provided below, and consult with a qualified investment professional.
The Company is currently considering and investigating a variety of financing options in order to raise the capital required for the anticipated exploration and drilling programs, as well as expanding its related efforts on the Diamond Jim property as described below.
Diamond Jim Property Summary
The following information in regards to the Diamond Jim Property has in part been compiled from information contained in historical geological reports that predate current disclosure standards. However, much of the information provided in such reports remains material and relevant and we are seeking to duplicate and confirm such previous results.
The Diamond Jim Property is located in the Island Mountain Mining District of northern Elko County, Nevada. Access is by Nevada state highway 225 north from Elko then east on the county-maintained Gold Creek road (USFA road #745) for a total distance of approximately 63 miles from Elko. The property is detailed in the Rosebud Mountain quadrangle (section 34 of Township 45 north and Range 56 east). The mean elevation of the property is approximately 7,800 feet (2,400 meters) above sea level. The 33 lode claims that comprise the Diamond Jim Property are held in good standing and an additional 20 contiguous claims have been staked to cover favorable geology, immediately to the north, bringing the total claim size to 53 claims.
Silver-copper-antimony bearing quartz veins were first discovered on the Diamond Jim Property in 1869. Serious production started in 1954 and was relatively steady through the 1970's with sporadic production continuing through 1985. The recorded production from the Diamond Jim Mine is; 23,108 ounces of silver, 335,870 pounds of lead, 24,311 pounds of zinc, 2,200 pounds of copper and 28 ounces of gold. The reported production between 1966 and 1967 was 347.3 wet tons averaging 19.9 oz/t silver, 15.9% lead, 3.5% zinc, 0.035 oz/t gold and 0.30% copper. This was increased for a fifteen month period from 1979 – 1981 when the production was reported as 353 dry tons averaging 39.08 oz/.t silver, 28.82% lead, 0.93% zinc, 0.05 oz/t gold and 0.11% copper.
Numerous exploration companies have held the rights to the Diamond Jim Property as part of a larger claim block between 1981 and 2006. However, little work has been done on this property with the vast majority of the exploration efforts being directed at the gold potential to the southeast and southwest. In 1985 Columbus Mines Inc. drilled ten holes totaling 1,585 feet (483 meters) of reverse-circulation. With this drilling, they defined a bulk-tonnage resource of 4.25 million tons averaging 2 oz/t silver. It must be noted here, that this drilling was both shallow (90 to 310 feet) and vertical; two factors that we believe may not have properly fully tested the mineral potential. Initial geological mapping by Goodsprings Development Corp. (GDC) in 2006 extended the silicified mineralizing structure for at least 6,800 feet (2073 meters). Based on this mapping, GDC applied for, and was granted, drilling permits to test the extension of the mineralization. Unfortunately, the drilling program was never initiated and this target remains untested.
The regional geology of the Diamond Jim Property area is summarized by predominantly metamorphosed Paleozoic-aged clastic and calcareous sediments that have been intruded locally by Cretaceous-aged granitic rocks. These units are both covered and surrounded by Cenozoic-aged volcanic and volcaniclastic rocks. The Paleozoic sedimentary units have been complexly faulted into a series of imbricate thrust sheets. These have then in turn been broken and displaced by northeast, north, and northwest trending high-angle extensional faults.
This region lies along the northern flank of the Midas Trough Metallogenic Trend which is a part of the crustal-scale Humboldt Structural Zone. This structural zone comprises a series of northeast-trending lateral and extensional faults. The Midas Trough is one of Nevada's most prolific mineral belts. Midas – Ken Snyder and Jarbidge are both among those districts located along the northern edge of the trough, while Ivanhoe and Jerritt Canyon are among those located along the southern edge.
The Island Mountain Mining District, which hosts the Diamond Jim Property, is comprised of two major tectonically-bounded stratigraphic sequences. The lower sequence is an autochthon comprised of three different steeply-dipping units. This is overlain by an allochthon consisting of a "chaotic assemblage of imbricate thrust plates" (Columbus Mines Inc. internal report, 1985). This has in turn then been broken and displaced by northeasterly, northerly, and northwesterly trending high-angle extensional faulting.
There are several Cretaceous-aged granitic plutons that intrude the above mentioned sedimentary and metamorphic packages within this district. The largest of these is the Coffeepot Stock which is located several miles north of the Diamond Jim Property. There are several occurrences of skarn-type mineralization associated with the contact metamorphism to the south of this stock. This skarn-type alteration, along with the wide variety of mineralization and alteration within the area, implies a possible systematic district-scale zonation that may grade outward from the stock into the lower temperature types of alteration that is associated with the silver-lead-zinc mineralization that occurs at the Diamond Jim Property.
Locally, the Diamond Jim Property is situated in an area of structurally and stratigraphically controlled silver-lead mineralization hosted predominantly in the phyllite. This area is very structurally complex and poorly understood. The main structure is a northeast trending strongly silicified and brecciated vein that dips steeply to the west. Initial mapping indicates that this structure has a strike length of a least 6800 feet (2073 m). The high-grade epithermal mineralization is reported to be predominantly along imbricate thrust faults that occur at right angles to the main contact vein. That is, northeast striking with dips of 20 to 30 degree to the southeast. The silver mineralization occurs as argentiferous galena, sphalerite and tennantite as cavity filling, minor replacement pockets, stringers and replacement lenses.
Although there has been some minimal and sporadic exploration of the Diamond Jim Property, it is evident that the majority of the modern exploration efforts in the area have been focused on the more gold-rich areas to the southeast and southwest, much to the detriment of this property.
With the reported historical production and grades, the more recent high-grade assay values (up to 19.1 oz/t silver and 14.04% lead over a 3.7 foot interval), along with the numerous other wide-spread high-grade and anomalous intercepts, and extensive (6,800 foot strike length) silicified and brecciated structure, it is believed that the over-thrust zone and the related veins are widely mineralized and may host a sizable narrow high-grade silver deposit. Evidence also suggests that a smaller scale bulk-tonnage open pittable silver deposit may also exist on the Diamond Jim Property.
Recently the Company has commenced a phase one exploration program on the property consisting of prospecting, sampling and claim staking. The Company has made application to the Forest Service for permission to open up the underground workings for geological mapping and sampling. In the months ahead, weather permitting, the Company intends to conduct ground geophysical surveys and geochemical sampling to be followed by drilling.
About Nevada Gold Corp
Nevada Gold Corp (OTCQB:NVGC) is a publicly traded US exploration company focused on precious metals targets in the gold rich area of North Eastern Nevada. To date, Nevada State has produced over 200 million ounces of gold with Nevada accounting for almost 84% of the US annual gold production. Most recently the company has a acquired an option to earn a 75 percent interest in the former producing silver/lead and gold mine called the Diamond Jim Mine located in Northern Nevada State.
The Diamond Jim Mine in Elko County consists of 53 claims and is located in northeastern Nevada, 20 miles (32 km) south of the Idaho border, 69 miles (111 km) north of the city of Elko and 260 miles (418 km) northeast of the city of Reno. The property lies on the easterly end of the northeast-trending Midas trend, one of Nevada's several important epithermal gold belts. The Midas trend hosts a number of significant to world-class gold districts such as Midas-Ken Snyder Mine and the Jerritt Canyon Mine (recently produced its 8 millionth ounce of gold). These mines produce mainly from epithermal vein systems favorable for small but profitable high-grade operations and Carlin-type sediment-hosted deposits amenable to large-scale open-pit bulk mining.
Company Website: http://www.nvgoldcorp.net
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Notice Regarding Forward-Looking Statements:
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that the company will be able to complete the terms and conditions of the option agreement for the acquisition of an interest in the Diamond Jim property, that the mineralization of the Island Mountain Mining District, or any other districts in the region such as the Jerritt Canyon district, may be similar to that on the Diamond Jim property.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.