Nevada Pacific tests base-metal discovery at Keystone

Vancouver — While Placer Dome (PDG-T) explores for gold at the Keystone project, Nevada Pacific Gold (NPG-V) will test the same Nevada property for its potential to host base-metal mineralization.

Nevada Pacific’s wholly owned Keystone project is situated on the Battle Mountain/Cortez gold trend, about 12 miles south of Placer Dome’s Cortez Hills, Pediment, and ET Blue gold discoveries. Placer Dome has already discovered about 10 million oz. gold at these properties, and is actively exploring other projects in the district. The senior gold company can earn a 60% interest in Keystone by spending US$5 million on exploration over five years. The company can boost its interest to 75% by completing a feasibility study.

Nevada Pacific retains 100% of the base metal and silver rights, subject to Placer Dome’s rights to develop gold resources at Keystone.

On its own, Nevada Pacific plans to carry out at least 5,000 metres of reverse-circulation drilling in up to seven holes. The program is aimed at testing the down-dip potential of previously discovered massive to semi-massive sulphide mineralization.

The base-metal mineralization was discovered at surface, notably in float boulders that graded over 50% combined base and precious metals.

More recently, six rock-chip samples returned values ranging from 0.05 oz. to 6.68 oz. silver per ton, 0.01% to 2.44% copper, 0.01% to 9.02% lead, and 0.06% to 20.8% zinc.

Mineralization consists of massive to semi-massive sulphide replacement in silty limestones and skarn, in both upper and lower plate rocks of the Horse Canyon and Denay formations, at or near the contact of a granodiorite intrusive.

Nevada Pacific has numerous other projects in Nevada’s famous mining districts, including several optioned to major companies.

The company also operates the Magistral gold mine in Mexico’s Sinaloa state. The open-pit, heap-leach mine is expected to produce about 30,000 oz. gold at a cash cost of US$250 per oz. in fiscal 2005. Production could grow to 65,000 oz. annually over several years of the mine’s proposed 7-year mine life.