Nevada Zinc Reports on Majority Owned Generic Gold Corporation's Exploration Program on the VIP Gold Project
Toronto, Ontario--(Newsfile Corp. - November 16, 2017) - Nevada Zinc Corporation (TSXV: NZN) ("Nevada Zinc" or the "Company") is pleased to announce that majority owned Generic Gold Corporation ("Generic Gold") has provided the Company with an update on the exploration activities completed at its VIP Project, approximately 120 kilometres south of Dawson City and west of Goldcorp's Coffee Project, Yukon Territory. The Company owns 25 million shares (approximately 75% of the issued and outstanding shares) of Generic Gold.
The 2017 field program was the most comprehensive work program completed on the 17,500 hectare VIP Project since 2010 when the Company acquired most of the property (prior to the Kaminak discovery of the Coffee gold deposits). The work completed during the 2017 field season consisted of trenching, soil sampling, prospecting, geological mapping, and geoprobe sampling.
President and CEO of Nevada Zinc, Bruce Durham commented: "VIP was the firstand top priority property in our initial Yukon portfolio. We were acquiring the VIP claims before Kaminak announced the first Coffee Project diamond drill hole results so we were in the Coffee Creek district very early. I am excited to see that Generic elected to carry out a significant work program on VIP this summer and we are anxiously awaiting the assay results from their work given some of the similarities in the recently trenched material at VIP and the original geological commentary on Kaminak's Coffee gold discoveries".
The VIP project covers an area of roughly 17 x 13 kilometres, located 120 kilometres south of Dawson City, and is accessible by helicopter, nearby fixed wing aircraft airstrips, and nearby barge ports along the Yukon River. The project is in the White Gold district, approximately 20 kilometres west of Goldcorp's Coffee gold deposits (2.16 Moz Au P&P Reserves, 0.78 Moz Au M&I Resources, 1.15 Moz Au Inferred Resources (Goldcorp Mineral Reserves & Resources, June 30, 2017), along the interpreted extension of the Coffee Creek fault system. The VIP Project is also contiguous with Independence Gold Corp.'s Boulevard property, Goldcorp's Apollo property, and White Gold Corp.'s recently staked Coffee Trend West properties.
The 2017 VIP work program consisted of:
Mechanical Trenching (link to Figure 1)
- Four trenches were dug by a heli-portable excavator in the area of the Big Creek anomaly. Due to more permafrost than expected and variable topography, the trenching focused on a portion of the northern margin of the interpreted 700+ metre long northwest trending Au-Ag-Bi-Mo-Cu-Pb-Zn-Se-Te-Hg anomaly.
- Trenching identified an extensive zone of strong alteration and coincident oxidation. The altered and oxidized rock material was predominantly quartz-sericite schist that has been altered to an assemblage of quartz, sericite, oxidized pyrite, hematite, limonite, and various clay minerals, indicating the presence of a significant hydrothermal system.
- The abundance of significantly oxidized rock encountered suggests the presence of a structural corridor which may host associated gold mineralization. At Goldcorp's neighbouring Coffee Project "the mineralized structures at the Coffee Project have undergone extensive preferential weathering and oxidation of iron-bearing minerals as a result of meteoric fluids percolating from surface downwards through the permeable structural corridors. Conversely, unfractured and unaltered country rock is typically fresh (unoxidized) at surface. As a result of this preferential weathering, oxidation is channelized along the structural corridors. ... Oxidation appears to be channeled along the structural corridors that host the deposits." (Coffee Gold Project Feasibility Study, 2016)
Geoprobe Sampling
- Forty-six geoprobe samples were drilled across the Big Creek anomaly at 5 metre spacings. The geoprobe drilling was done to penetrate through permafrost that limits the effectiveness of soil sampling, in order to test the uppermost portion (approximately 10 centimetres) of bedrock and basal soils. Oxidized rock and soil material was intersected over 130 metres (26 of 46 samples) crossing the Big Creek anomaly.
Soil sampling, prospecting, and geological mapping
- Soil sampling and prospecting was undertaken in underexplored areas of the large property. Ridge and spur style soil sampling was completed in unexplored areas of the project, while follow-up grid sampling and geological mapping was conducted in areas identified as anomalous in previous exploration campaigns. A total of 65 rock samples and 658 soil samples were taken during the duration of the field program.
Results are pending and will be released by the Company once they have been received from Generic Gold.
References
JDS Energy & Mining Inc., 2016, NI 43-101 Feasibility Study Technical Report for the Coffee Gold Project, Yukon Territory, Canada, effective January 6, 2016, pgs. 7-19.
Goldcorp Inc. Mineral Reserves and Mineral Resources, as of June 30, 2017 https://s22.q4cdn.com/444421831/files/doc_downloads/reserves_resources/Goldcorp-Reserves-Resources-as-of-30-June-2017.pdf.
About Generic Gold
Generic Gold was incorporated pursuant to the Business Corporation Act (Ontario) on May 30, 2017. Generic is a Toronto based mining company exploring targets in the Tintina Gold Belt in the Yukon Territory. Since incorporation, Generic Gold has raised approximately $2.4 million to fund 2017 and 2018 exploration programs and has completed diamond drilling on its Livingstone project, trenching on its VIP project, and has commenced reverse circulation drilling on its Goodman project. Genric Gold is currently pursuing a going public transaction which is expected to be completed in the next 45 to 60 days.For information on Generic Gold's property portfolio and exploration activities, visit the company's website at genericgold.ca or contact Kelly Malcolm, President and CEO, at kmalcolm@genericgold.ca or 647-299-1153.
About Nevada Zinc
Nevada Zinc is a discovery driven, early-stage mineral exploration company with a proven management team focussed on identifying unique opportunities in mineral exploration that can provide significant value to its shareholders.
While the Company continues to maintain a significant interest in the highly prospective Yukon gold properties through its majority ownership position in Generic Gold, the current focus of the Company is the exploration and advancement of the Lone Mountain Zinc Project comprised of 224 claims covering approximately 4,000 acres near Eureka, Nevada.
The Lone Mountain Zinc Project is located in east-central Nevada and is easily accessible via paved and gravel roads northwesterly from Eureka where all essential services are available. The Project includes options, leases or purchase agreements to acquire 100% interests in all properties along the key structural trend for more than 4 kilometres.
The Company has completed 83 reverse circulation drill holes on the property and has recently completed a 13 hole diamond drill program.Results from the RC drilling programs have shown numerous broad intervals of medium to high grade non-sulphide zinc mineralization in two locations both of which are located between surface and a depth of approximately 250 metres.Initial diamond drill core assay results remain outstanding at this time, however, assay results are expected to be received commencing prior to the end of November.
In addition the Company has recently expanded its project portfolio by acquiring the rights under an option agreement to earn up to an 80% interest in the MacBride Zinc Project in northern Manitoba (see the Company's press release dated October 23, 2017).
Additional information about the Company is available on the Company's website: www.nevadazinc.com
Bruce Durham P.Geo, President and CEO of Nevada Zinc, is a Qualified Person, as that term is defined by Canadian regulatory guidelines under National Instrument 43-101, and has read and approved the technical information contained in this press release.
For further information please contact:
Nevada Zinc Corporation
Suite 1660 141 Adelaide St. West
Toronto, Ontario M5H 3L5
Tel: 416-504-8821
Bruce Durham, President and CEO
bdurham@nevadazinc.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc.Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties.Actual results relating to, among other things, the ability to complete the Business Combination, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.