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Navaho Gold Makes A Move On Potential New Carlin-Style Gold Province In New Mexico

Navaho Gold (ASX: NVG) is set to grow its Carlin-style gold exploration initiative in the United States, with potential to become a first mover in a new gold province.

The company has entered an agreement to form an alliance with private Utah-based Genesis Gold Corporation to explore for Carlin-style deposits in New Mexico.

Importantly, the alliance offers Navaho Gold a low cost entry into the region with a partner that has a wealth of experience in exploring for this type of mineralisation in the western U.S.

Navaho will fund all exploration on the New Mexico gold projects, which will be managed and conducted by Genesis.

An initial tenure has been secured over several prospects that could potentially host gold discoveries similar to the world class gold deposits in Nevada.

Initial rock chip sampling has returned high anomalous values for gold, silver, arsenic and antimony, which are indicators of Carlin-style mineralised systems, in all prospects.

Further exploration and reconnaissance is being conducted to extend tenement coverage over the prospective targets.

Navaho has the option to earn an initial 51% interest in the New Mexico projects by spending US$0.5 million on exploration over two years.

This can be increased to an 80% interest in select projects through the sole funding of US$2.5 million of exploration on any project.

Carlin-style gold

Carlin-style gold mineralisation was first recongised near the town of Carlin in Nevada, and occurs as a result of low temperature solutions precipitating gold, silver and sulphide minerals in limey, magnesian and carbonaceous sediments.

Typically, Carlin orebodies are large and high grade, with 20 major mining operations in Nevada producing more than 100,000 ounces of gold per annum.

Nevada is one of the most strongly endowed gold provinces in the world, with more than 156 million ounces of gold produced between 1981 and 2009.

Nevada activity

Earlier this month, Navaho Gold unearthed a 1.7 kilometre long potential gold zone at the White Horse Flats project in Nevada.

Latest assays from White Horse Flats indicate a zone of shallow, low grade gold mineralisation covering 1.7 kilometres by 500 metres.

Further surface sampling, including rock chip sampling and follow up drilling, is planned to test the extent and controls of the gold mineralisation.