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Navaho Gold drilling to follow up gold hits at Stevens Basin in Nevada

Navaho Gold (ASX: NVG) has kicked off the second program of drilling on the Stevens Basin project in Nevada, USA, following up the highly anomalous gold mineralisation intersected in June 2011.

The company has also completed drilling at Rose Mine testing near-surface 'carlin style' gold mineralisation. 

On completion, the drill rig will immediately move onto the Whitehorse Flats project. Navaho now has two rigs operating in Nevada to complete programs on five projects before the U.S. winter.

Mark Dugmore, Navaho CEO, said “we are pleased at the drilling progress being achieved and look forward to receipt of assay results as they start to flow from the laboratories over the coming weeks."

From the period 1981 to 2009, in excess of 156 million ounces gold has been produced in Nevada, making it one of the most strongly endowed gold provinces in the World. The Carlin Trend alone has produced more gold than any other mining district in the USA.

Navaho previously intersected 15.2 metres at 0.18 grams per tonne (g/t) gold from 35 metres at Stevens Basin which is located in the Eureka Mining District on the Battle Mountain Trend 9 kilometres south west of the Archimedes/Ruby Hill deposit (2.23 Moz) owned by Barrick Gold (NYSE: ABX).

The area is the subject of a farm‐in agreement with Columbus Gold Corp (TSX‐V:CGT) pursuant to which Navaho Gold can earn a 70% interest in the project.

Drilling will also test a further suite of structural features identified from interpretation of gravity data, a magnetic target with features analogous to the Archimedes/Ruby Hill deposit, and further multi‐element soil anomalies defined by sampling completed by Navaho in recent months.

About 1,200 metres of reverse circulation drilling will be completed in 8‐10 holes.

Rose Mine Project

The Rose Mine Project is located immediately south of the Stevens Basin project. The area is the subject of a farm‐in agreement with Renaissance Gold Inc (TSX‐V:REN) under which Navaho can earn a 70% interest in the project.

The drill program tested near‐surface gold mineralisation defined by an intersection of 44 metres grading 0.26 g/t gold from 24 metres depth completed by a previous partner of Renaissance Gold, and soil geochemical and geophysical (both gravity and magnetic) anomalies recently defined by Navaho.

Ten holes for a total of 1,512 metres of reverse circulation drilling was completed at Rose Mine. Samples have been submitted for assay and results are awaited.