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Navaho Gold intersects elevated gold at Rose Mine in Nevada

Navaho Gold (ASX: NVG) has received the final assays from drilling at the Rose Mine Project in Nevada which show elevated gold intercepts in three of the 10 holes drilled.

Anomalous arsenic greater than 30 parts per million, along with elevated antimony, barium, bismuth and thallium, was also intersected in several holes and may indicate proximity to Carlin-style mineralisation.

Of interest are the arsenic intersections in one drill hole of 30.5 metres at 50 parts per million from 83.8 metres and 9.2 metres at 201 parts per million from 134.1 metres as, in the Carlin model, these may represent haloes to nearby gold mineralisation.

This particular hole was terminated at the base of the second arsenic intersection due to a lack of sample return and poor ground conditions so the full depth extent of this zone of arsenic anomalism could not be tested.

Anomalous silver above 1 gram per tonne (g/t) was also intercepted in one hole.

Another hole was drilled to test the historic low grade gold mineralisation in AR07-02 but did not intersect similar mineralisation and it is interpreted that faulting has offset the known mineralisation to the south.

The drilling program comprising 1,512 metres across 10 reverse circulation drill holes was designed to test both a near-surface gold intersection of 44 metres at 0.26g/t gold from 24 metres, defined in a hole drilled by a previous partner of Renaissance Gold (TSX-V: REN), and several soil geochemical and geophysical (both gravity and magnetic) anomalies defined by Navaho Gold work.

A full review integrating the anomalous geochemistry and alteration returned from this drilling with the existing surface geochemistry and geophysics is underway to determine if any near-miss scenarios can be identified which may warrant further drill testing during the next season.

The Rose Mine Project is located in the Eureka Mining District on the Battle Mountain Trend, 13 kilometres southwest of the 2.23 million ounce Ruby Hill/Archimedes deposit owned by Barrick Gold Corporation (NYSE: ABX).

The area is the subject of a farm-in agreement with Renaissance Gold under which Navaho can earn a 70% interest in the project.


Nevada Prospectivity

Navaho Gold has various agreements to earn majority interests in, or acquire, seven projects in Nevada, four of which are located on or adjacent to the prolific gold-producing Carlin and Battle Mountain Trends.

Between 1981 and 2009, in excess of 156 million ounces of gold was 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 U.S.

Importantly, Navaho Gold’s Carlin East project lies about 5 kilometres east of Barrick’s 40 million ounce gold Post-Betze deposit, and the Utah Clipper project is located immediately along trend from Barrick’s Cortez and Pipeline-Gold Acres deposits which contain more than 30 million ounces of gold.

Nevada has 20 major mining operations producing in excess of 100,000 ounces of gold per annum.