Nevada Pacific acquires Bluebird Gold property

Vancouver — Nevada Pacific Gold (NPG-V) has inked a deal for the Bluebird property, situated at the northern end of the Battle Mountain Trend, Lander County, Nevada.

The Bluebird Property consists of 10 unpatented mining claims that are situated near Nevada Pacific’s BMX property. The BMX property was recently joint ventured with Placer Dome (PDG-T). Nevada Pacific states that the newly acquired Bluebird property will be submitted for inclusion within the Placer Dome joint venture.

According to the terms of the deal, Nevada Pacific and the owner of the Bluebird property will enter into a formal 10-year mining lease with exploration rights renewable in 5 year increments. The owners retain a 3% net smelter return of which 1.5% can be purchased by Nevada Pacific at any time for US$500,000 per percentage point. Advanced royalties payable to the owners are as follows; US$1,500 upon signing (paid), US$9,000 upon completion of formal lease; US$10,000 annually on the first anniversary through the 9th anniversary and US$25,000 on the 10th and subsequent anniversaries.

Gold and silver mineralization at the Bluebird property is associated with north-south, northwest and northeast structures. Historic underground mining during the 1930’s is reported to have averaged 0.44 oz. gold per ton and 2.77 oz. silver per ton. During the 1980’s, several companies completed field work that traced the Bluebird structure for over 800 ft. Highlights from previous drill sample assays are as follows:

• Hole RHB-1 cut 20 ft averaging 0.042 oz, gold per ton and 2.61 oz. silver per ton.
• Hole RHB-7 cut 50 ft averaging 0.136 oz. gold and 2.36 oz. silver, starting from surface. This was followed by 130 ft averaging 0.045 oz. gold, starting 200 ft. down-hole. Another intersection starting at 460 ft down-hole cut 30 ft. averaging 0.046 oz. gold and 0.84 oz. silver.

Previous rock chip sampling and geochemical exploration on the Bluebird property during the 1980’s outlined a strong gold mineralizing system. This anomaly covered an area that measured 500-by-1,600 ft. wide and up to 3,400 ft. in strike length.

A summary of the assay results from previous sampling include; 28 samples that averaged 0.016 oz. gold per ton; 26 samples that averaged 0.057 oz. gold; 9 samples that averaged 0.168 oz. gold and 3 samples that averaged 2.87 oz. gold. 32 samples averaged 2.8 oz. silver per tonne and 12 samples averaged 15.0 oz. silver.

Nevada Pacific believes that the Bluebird property has the potential for both high-grade, underground gold and silver mineralization as well as open pit, low-grade similar to nearby operations such as Lone Tree, Marigold, Fortitude, Phoenix, Surprise and Trenton Canyon mines.