Limousine Butte RC drilling turns up gold

Vancouver — Nevada Pacific Gold (NPG-V) has tabled impressive assay results for the first two reverse circulation drill holes its wholly-owned Limousine Butte project located in White Pine County, Nevada.

The initial holes (RR03-1 and RR03-2) were designed to test the continuity of the Resurrection Ridge high-grade gold mineralization found in drill hole LIM-46 that was drilled by Newmont Mining (NEM-T) in 2000. Highlights of the results are as follows;

• Hole RR03-1 cut 155 ft. averaging 0.061 oz. gold per ton, starting 375 ft. down-hole. This included a 50 ft. interval that averaged 0.162 oz. gold, starting 405 ft. down-hole and a 25-ft. interval that averaged 0.269 oz. gold, starting 415 ft. down-hole.
• Hole RR03-2 cut 195 ft. averaging 0.05 oz. gold per ton, starting 270 ft. down-hole. This included a 30-ft interval that assayed 0.123 oz. gold, starting 380 ft. down-hole.
• Newmont’s previously drilled hole, LIM-46, intersected 70 ft averaging 0.137 oz. gold, starting 415 ft. down-hole and included a 30 ft. interval that averaged 0.26 oz. gold, starting 415 ft. down-hole.

Holes RR03-1 and RR03-2 host similar alteration and rock type as seen in the previously drilled hole LIM-46. Nevada Pacific states that both of the holes appear to crosscut the same gold bearing structure. In addition, the zone of clay altered siltstones and brecciated jasperoid is significantly thicker in the two new holes. These wider zones of alteration correspondingly host thicker zones of gold mineralization.

Two additional holes have been completed in the vicinity of the LIM-46 target zone and assays are pending. A fifth hole is currently being drilled 500 ft. north of LIM-46. This hole is testing a newly discovered zone that recently returned surface rock-chip values up to 1.97 ppm gold and soil gold values up to 104 ppb gold.

Once Nevada Pacific completes hole five, four additional holes are planned to test other targets in the Resurrection Ridge mineralized area.

The 24 sq. mile Limousine Butte project is situated along the projected and untested southern extension of the Carlin trend. The property hosts a large hydrothermal gold system that exhibits alteration features that are indicative of sediment and structure hosted gold deposits that are typical of the Carlin trend.

The project area is underlain by an Upper Paleozoic sequence of sediments, consisting of massive carbonate and calcareous shale, siltstone and sandstone. A large quartz-porphyry stock intruded the sediments and extensively altered and mineralized the area. Magnetic surveys indicate other possible untested intrusive centres within the Limousine Butte project.

In June of 1999, Nevada Pacific and Newmont Mining completed a joint venture agreement that covered the Limousine Butte property. Subsequent multiple drill programs and the compilation of historical data led to the identification of five oxide gold zones. No formal NI43-101 mineral resource was defined. In April this year, Nevada Pacific acquired Newmont’s 50% interest in the project.