Nevada Pacific explores South Carlin project

Vancouver — Nevada Pacific Gold (NPG-V) and partner Placer Dome (PDG-T) have kicked off a phase-1 US$670,000 exploration program at the South Carlin gold project situated along the Carlin trend between Newmont Mining’s (NEM-N) Gold Quarry mine and the Rain Mine, in Nevada.

Nevada Pacific is the initial exploration operator on the 17-sq.-mile project where Placer Dome has the right to earn a 60% interest. According to the option agreement, Placer must spend US$4.6 million on exploration over a five-year period. This includes US$600,000 in the first year and US$1 million each following year. Placer Dome can earn an additional 10% by producing a full feasibility study.

The primary focus of the phase-1 exploration program is to further delineate the structural intersection at the Rain Horst and the Woodruff Horst. These large blocks of carbonate rock have been uplifted along regional structures and trend northwest and northeast, respectively. Exploration will consist of soil sampling over a 2-to-3-mile area on a 100-by-400-ft. grid, geological mapping and gravity and magnetotelluric geophysics. A 6,000-to-8,000-ft. core and reverse circulation drill program will follow.

Nevada Pacific states that geological mapping will help to define lithology and alteration as well as identify structures that may have acted as conduits for the emplacement of gold mineralization. Previous geological and drill hole data are currently being used to generate geologic cross sections.

Reinterpretation of geophysical data is also ongoing. Several strong, closed-phased, resistive anomalies that were previously identified by a magnetotelluric survey are indicative of structurally controlled silicifation. Both the Rain Horst and the Woodruff Horst are considered prime targets for high-grade gold mineralization at depths estimated between 1,000 and 2,000 ft. below the surface.

Nevada Pacific holds four exploration projects in its portfolio, all in Nevada. These include: the South Carlin, Limousine Butte, optioned to Newmont Mining, Keystone and Free Gold. Through the four projects the company controls about 100 sq. miles of mineral rights in the State.