NNVV GGoolldd CCoorrppoorraattiioonn PP..OO.. BBooxx 118877 EEvveerrggrreeeenn,, CCOO 8800443377 NV Gold Addresses Technical Disclosure Review Issues TRADING SYMBOL: NVX – TSX Venture Exchange July 27, 2010
NV Gold Corporation (TSXV – NVX) announced today that it is responding to a cease trade order and an issue-oriented technical disclosure review letter issued July 15, 2010, setting forth concerns of the British Columbia Securities Commission (“BCSC”) in respect of the Company’s disclosure. The correspondence from the BCSC has requested additional public disclosure in respect of the reasons why the Company relinquished its Fisher Canyon property and the resource estimate on the Company’s Afgan property disclosed in its news release of April 26, 2010.
Although the Issuer initially felt moderately encouraged by the drilling results on the Fisher Canyon property announced January 4, 2010, after three-dimensional analysis and interpretation the Issuer was unable to satisfy itself to a sufficient degree of probability that the intercepts of interest, while significant, would join together in bodies that would be mineable economically. The Issuer had developed another target (the NT area) for the next drilling work, but the characteristics it exhibited were similar to the targets already drilled and, after taking into consideration the costs of drilling the next target (including costs of obtaining a Plan of Operations, bonding and title maintenance) the funds the Issuer had on hand and the potential of other projects available to the Company, the Issuer decided that the risk associated with drilling the NT area did not justify the cost and the funds would be best spent elsewhere.
The details of the resource estimate and the key assumptions, parameters and methodology underlying the preparation of the resource estimate in respect of the Afgan property are as follows:
In 2004, Castleworth Ventures Inc. reported a NI 43-101 compliant resource estimate in respect of the Afgan property comprising an indicated gold resource of 50,000 ounces (1.85 million tons at an average grade of 0.027 oz Au/ton (0.926 g Au/t)) and an inferred gold resource of 34,000 ounces (1.29 million tons at an average grade of 0.026 oz Au /ton (0.891 g Au/t)) using a cut-off of 0.010 oz Au/ton (0.343 g Au/t), based on 134 drill holes completed prior to 1998.
The Afgan mineral resources were estimated by Mine Development Associates (“MDA”) with an effective date of March 2004. The gold resources were modeled and estimated by evaluating the drill data statistically and utilizing geologic cross-sections to interpret mineral domains on east-west crosssections spaced at 100-foot intervals throughout the extent of the Afgan mineralization. The crosssectional mineral domain interpretations were then sliced to level plans spaced at 20-foot intervals, and the mineral domains were rectified to the drill data on the level plans. The modeled mineralization was analyzed statistically to establish estimation parameters, and gold grades were estimated by inversedistance methods into a block model with 20 foot (width) x 20 foot (length) x 20 foot (height) blocks that were coded to the mineral domains by the level-plan mineral domain polygons. All modeling of the undiluted resources was performed using Gemcom Surpac® software. The resource estimation was completed under the supervision of Michael Gustin, Ph.D., P. Geo, a Qualified Person as defined by National Instrument 43-101.
Although MDA is not an expert with respect to any of the following factors, MDA states that it is not aware of any unusual environmental, permitting, legal, title, taxation, socio-economic, marketing, or political factors that may materially affect the Afgan-Kobeh mineral resources as of the date of the resource estimation.
A Technical Report on the Afgan-Kobeh property acquired by the Company on June 14, 2010 has now been filed and is available for review in the Company’s documents at www.sedar.com .
In addition, the Company has filed amended material change reports in respect of the material change reports it originally filed on November 25, 2009, May 6, 2010 and May 28, 2010. The amended material change report that amends the May 28, 2010 material change report provides enhanced disclosure with regard to the Company’s decision to relinquish its Fisher Canyon property in May 2010.
NVX is a Colorado-based company, whose objective is to create shareholder value by the acquisition, exploration, and development of gold projects located within the major gold producing areas of Nevada and the Basin and Range.
On behalf of the Board of Directors,
(sgd.) “John E. Watson”
President
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals, risks inherent in the mineral exploration and production industry, and other risks detailed from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither 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.
Please direct information requests to John E. Watson at 303-674-9400 or via email to [email protected]
Visit the Company website at www.NVGoldCorp.com