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Navaho Gold: Stevens Basin In Nevada Shows Similarities To Carlin‐style Deposits

Navaho Gold (ASX: NVG) has received the final drill results from an 8-hole reverse circulation drilling program at the Stevens Basin Project in Nevada which further confirm that the project exhibits the geological, geochemical and alteration features common to many Carlin‐style deposits.

A combination of surface lag and rock sampling, coupled with the results of the drilling, has now defined an area of about 1.2 square kilometres of anomalous geochemistry which broadly coincides with a northwest structure corridor identified in geophysical data.

The 1,301 metre drilling program was designed to evaluate the low grade gold mineralisation intersected in an earlier hole drilled by Navaho.

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

The recent drilling program was also targeted at testing new areas of anomalous soil gold geochemistry and associated geophysical structures identified in ground gravity and airborne magnetic data acquired by Navaho.

Six of the eight holes drilled contain anomalous gold, arsenic, antimony and thallium, however the drilling failed to extend the low level gold mineralisation previously intersected in the earlier hole or identify any new gold zones.

Commenting on the results, chief executive officer Mark Dugmore said, "We consider Stevens Basin to remain a prospective exploration play and a re‐evaluation of the surface geochemistry and geophysical data using the current drilling results is currently underway".

To date, Navaho has drilled 3,692 metres across 22 holes at the Stevens Basin Project.

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

Rose Mine

Final assays from the Rose Mine Project, also in Nevada, received last month showed 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.

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.