Nevada Exploration Inc (TSXV: NGE) - Properties

• The Fletcher Junction Property is located in Mineral County, Nevada, within the Walker Lane mineral belt of southwest Nevada, approximately 30 km (19 miles) southwest of Hawthorne, Nevada.
• The Fletcher Junction target lies adjacent to the Aurora Crater and is covered by a thin, post-mineral layer of basalt and alluvium. The target has not been previously explored.
• NGE identified very high concentrations of gold and trace elements in spring water flowing from beneath the cover in late 2004 as part of its Groundwater Chemistry Sampling Program.
• NGE secured the target by staking unpatented mining claims and then followed up the encouraging hydrogeochemistry results with additional groundwater, vegetation, soil, and float rock geochemical sampling, as well as detailed geologic mapping.
• NGE completed a Phase I drilling program in 2008 and intersected hydrothermally altered and geochemically anomalous bedrock similar in size, alteration-style, and trace-element chemistry to the nearby Aurora mining district, which produced nearly 2,000,000 total ounces of gold and 2,400,000 ounces of silver.
• The project is ready for a Phase II angled, core hole drilling program designed to intersect high-angle quartz veins believed to contain high-grade gold-silver mineralization.

• 6 km (4 miles) north of the Aurora mining district owned by Great Basin Gold Limited (NYSE:GBG) (combined past production and resource: 2,000,000 oz Au, 2,400,000 oz Ag)
• 13 km (8 miles) south-southwest of the Borealis mining district being developed by Sage Gold, Inc.(TSX.V:SGX) and Golden Gryphon Corp (TSX:GGN) (past production 1,000,000 oz Au, 5,000,000 oz Ag)
• 13 km (8 miles) northeast of the historic Bodie mining district (historic production: 3,500,000 oz Au, 3,700,000 oz Ag)

NGE has collected 57 groundwater chemistry samples and analyzed each for gold and 80 other trace elements using ultra low level mass spectrometry.

NGE has modeled the groundwater chemistry at Fletcher Junction and has defined a large target area exhibiting highly anomalous concentrations of gold and other trace elements beneath the Aurora Crater. The data show a rapid decay of gold values away from the crater, which supports the exploration concept that the potential upstream bedrock source of gold mineralization lies only a short distance up gradient, beneath the basalt cover.

• 148 Quartz Boulder Samples
• 10 Soil Samples
• 3 Vegetation Samples

There is no soil on top of the basalt flow that covers the Fletcher Junction target, so a soil geochemistry survey was not possible; however, a survey along the edge of the basalt revealed an unusual concentration of angular, mineralized, quartz boulders. NGE sampled 148 quartz boulders along the edge of the basalt covering the target: 11 samples reported gold values greater than 1.0 g/t (0.03oz/t), and the highest value reported was 90.5 g/t (2.9oz/t). NGE believes the anomalous gold in the angular, quartz-vein boulders suggests a nearby bedrock source, which, in conjunction with high levels of gold in the spring water flowing out from beneath the basalt cover, suggests the presence of bedrock gold mineralization a short distance up-dip, beneath the cover.

Confirmation soil and vegetation samples were collected downstream and adjacent to anomalous springs along the edge of the basalt. The results showed gold enrichment in soil and vegetation as gold decreased in groundwater down-stream. Soil samples reported values ranging from 8 to 1,235 ppb Au and vegetation samples reported from 5.8 to 10.5 ppb Au. The elevated concentrations of gold in soil and vegetation confirm the geochemical expression in groundwater and suggest the groundwater is interacting with an upstream source area.

In 2008, NGE completed a 13 hole reverse circulation drill program at Fletcher Junction. The holes were spaced an average of 500 metres apart (1,600ft), and drilled to depths ranging from 152 to 295 metres (500 - 1,000ft), for a total of 3,416 metres (11,200ft). The blocky basalt covering the Fletcher Junction target is rough and the drilling program was designed to take advantage of natural travel corridors on top of the basalt to limit the need for costly road construction. The objective of the Phase I drilling program was to test the target area with wide spaced, vertical drill holes to determine the depth to bedrock, the size of the expected hydrothermal system, and the nature of its primary, potentially ore controlling characteristics.

The Phase I drilling encountered hydrothermally altered bedrock containing geochemically anomalous gold and gold-associated trace elements at depths ranging from 590ft to 965ft. The silicification and quartz-veining within the underlying bedrock suggest that the Fletcher Junction target is a low-sulfur, epithermal, quartz-adularia, hydrothermal vein system, and the propylitic and argillic alteration encountered are similar to that associated with the gold-silver quartz veins of the adjacent Aurora mining district. The drilling also showed the target area is consistent with the size and shape of the Aurora mining district and that the bedrock appears to be rising closer to the surface beneath the areas mapped as bedrock hills.

While placer concentrations of gold eroded from areas as far away as the main Aurora district might affect the groundwater geochemical expression at Fletcher Junction, the hydrothermally altered and geochemically anomalous bedrock intersected during the Phase I drilling suggests the gold in groundwater, soils, and quartz boulders is likely sourced from the bedrock underlying the Fletcher Junction property.

• The Hot Pot Project is located along the Battle Mountain - Eureka Gold Trend, approximately 8 km (5 miles) east of Newmont's Lone Tree mine (+5,000,000 oz Au), and 9 km (6 miles) north-northeast of Goldcorp's Marigold mine (+4,000,000 oz Au).
• NGE identified the Hot Pot Project as a direct result of its groundwater chemistry exploration program. NGE secured the target with a mineral lease from a private land owner and by staking unpatented mining claims.
• NGE has completed geochemistry, geophysics, and Phase I & II drilling at Hot Pot, and has discovered a completely covered gold bearing hydrothermal system similar in size and ore controlling features to the nearby Lone Tree and Marigold mines.
• In 2009, NGE and International Enexco Ltd. (TSX.V:IEC) signed an Exploration and Option to Enter Joint Venture Agreement, whereby Enexco can earn a 51% interest in the Hot Pot Property by drilling 6,000 meters (19,600ft) over three years, with the option to earn an additional 19%, for 70% total, by drilling another 3,000 meters (9,800ft) during the fourth year.
• In 2009/2010 Enexco completed 3,462 meters (11,300 feet) of core drilling at Hot Pot. Enexco's wide-spaced drilling encountered shallow, hydrothermally altered bedrock, and weak, but widespread anomalous gold.

• 8 km (5 miles) east of the Lone Tree Mine, which is being mined by Newmont Mining Corp (NYSE:NEM) (combined past production and resource: >5,000,000 oz Au)
• 8 km (5 miles) north-northeast of the Marigold Mine, which is owned by Goldcorp Inc. (TSX:G) and Barrick Gold Corp (TSX:ABX) (combined past production and resource: >4,000,000 oz Au)
• 43 km (27 miles) south-southeast of the Turquoise Ridge/Getchell Mine, which is owned by Barrick Gold Corp (TSX:ABX) and Newmont Mining Corp (NYSE:NEM) (combined past production and resource : >15M oz Au)
• 35 km (22 miles) south-southeast of the Pinson Mine, currently owned by Barrick Gold Corp (TSX:ABX) and Atna Resources Ltd. (TSX:ATN) (past production: >1M oz Au).

In 2005, based upon encouraging results from a reconnaissance ground water chemistry sampling program, NGE completed a Phase I drilling program at Hot Pot to examine the target’s underlying geology and its potential for mineralization. The program consisted of nine, widely-spaced RC drill holes ranging in depth from 92m (300ft) to 190m (620ft), for a total of 1,195m (3,900ft).

All nine drill holes successfully encountered hydrothermally altered bedrock containing anomalous gold and associated trace-element chemistry. In all nine holes, bedrock was covered by less than 70 metres (230ft) of alluvium.

These encouraging results marked an important milestone in the development of NGE’s groundwater chemistry exploration program because they demonstrated how, with just a few groundwater samples, NGE’s hydrogeochemistry exploration program was able to identify a previously unknown, completely covered target, with significant exploration potential.

In 2006 and 2007, NGE used its Hydroprobe equipment to complete the exploration industry’s first, regularized groundwater chemistry sampling program over a completely sand and gravel covered target area. NGE has collected 200 samples on a 400m (1,300ft) grid across the property.

The results of the survey increased both the magnitude of the groundwater chemistry anomaly and the size of the target. The concentrations of gold in the groundwater are in the same order of magnitude as that found in the groundwater associated with the major gold mines located elsewhere in the Kelly Creek Basin.

In 2006 and 2007, NGE completed soil geochemistry surveys at Hot Pot to detect the possible vertical migration of gold and trace elements from the underlying bedrock. NGE collected 1,211 samples – half were collected every 50m (164ft) along 11 east-west sample lines, and the other half were collected on a wider spaced grid.

The soil geochemistry results delineated several potential structural targets similar in size and shape to those identified at the nearby Lone Tree and Marigold gold mines. The anomalous gold and trace element soil chemistry is coincident with the anomalous gold and trace element chemistry in groundwater. The surveys confirmed the presence of anomalous gold and trace elements in a medium other than groundwater, and have further suggested the presence of structurally controlled gold mineralization beneath the property.

In 2007, NGE completed two 4 km (2.5 Mile) east-west seismic geophysics lines across the property to test for deep-seated, steeply dipping fault zones. Geophone receiver groups were spaced every 55 feet along the lines, and 2.2 pound explosives were detonated at 160 foot intervals to generate the seismic energy.

The program was successful in that the results show shallow bedrock, steeply dipping fault zones, clear geologic offsets along faults, and several horst and graben features. The seismic lines confirmed that the groundwater chemistry target is underlain with a structural fabric that could be a conduit for mineralization.

In 2008, NGE completed a detailed gravity geophysical survey at Hot Pot to estimate the depth to bedrock, identify possible fault offsets, and differentiate changing rock types. NGE obtained gravity readings at 522 stations on a 200 meter grid for a total of 20 km2 (8 mi2) of new gravity data.

The survey successfully identified significant areas where bedrock is believed to be shallow, and delineated sharp changes in the slope of the underlying bedrock that coincided with the potential fault zones identified by seismic geophysics.

In 2008, NGE completed a Phase II shallow drilling program at Hot Pot to drill through alluvium and a short distance into bedrock to examine target’s underlying geology and further explore the property’s potential for mineralization. The program consisted of ten, RC drill holes ranging in depth from 50m (165ft) to 175m (575ft), for a total of 1,086m (3,565ft).

All ten drill holes successfully encountered hydrothermally altered bedrock containing anomalous gold and associated trace element chemistry. Bedrock was covered by less than 83 metres (275ft) of alluvium in seven of ten holes and less than 152m (500ft) in the other three.

• The Bull Creek Property is located in Humboldt County, Nevada, approximately 60 km (36 miles) west-northwest of Winnemucca, Nevada.
• The Bull Creek Property is a covered pediment target that was identified during NGE’s 2004/2005 Groundwater Chemistry Sampling Program. The area has not been previously explored and NGE secured the target by staking unpatented mining claims.
• NGE has completed hydrogeochemistry, soil geochemistry, seismic geophysics, air magnetic geophysics, and gravity geophysics surveys across the property and has delineated several highly prospective targets.
• In 2008, NGE completed Phase I drilling at Bull Creek and discovered a large area of shallow, highly faulted and hydrothermally altered bedrock containing geochemically anomalous gold and associated trace elements. These features of exploration significance are similar to those found at the nearby Sleeper Mine, which produced 1,700,000 ounces of gold and 1,900,000 ounces of silver from 1986 to 1996.
• NGE’s results to date demonstrate that Bull Creek is an important pediment target that clearly warrants a Phase II drilling program.

• 40 km (25 miles) southwest of the Sleeper mining district being explored and developed by Paramount Gold and Silver Corp (NYSE:PZG) (combined past production and resource: 3,400,000 oz Au & 14,300,000 oz Ag)
• 32 km (20 miles) west-northwest of the Sandman Deposit, which is under active exploration by Newmont (NYSE:NEM) through an agreement with Fronteer Gold Inc. (TSX:FRG) (310,000 oz Au resource)
• 40 km (25 miles) northeast of the Hycroft mining district, which is actively being mined by Allied Nevada Gold Corp. (TSX:ANV) (combined past production and resource: 14,500,000 oz Au & 432,000,000 oz Ag)
• 43 km (27 miles) north-northeast of the Rosebud mining district, which is under active exploration by Harvest Gold Corp. (TSX-V:HVG) (combined past production and resource: 640,000 oz Au & 4,430,000 oz Ag)
• 64 km (40 miles) north-northwest of the Florida Canyon mining district, which is actively being mined by Jipangu (past production: 2,000,000 oz Au)

NGE has collected 117 groundwater chemistry samples and has analyzed each sample for gold and 80 other trace elements using ultra low level mass spectrometry.

With this large dataset, NGE has modeled the groundwater chemistry at Bull Creek and has delineated the spatial extent of a large target area exhibiting highly anomalous concentrations of gold and other trace elements. The data define a discrete target with elevated hydrogeochemical values that decrease quickly to undetectable levels away from the anomaly.

Guided by the detailed groundwater chemistry data, NGE conducted a soil geochemistry program across the target in November 2007 and March 2008. The survey included 1,258 samples spaced every 50 metres (164ft) along 11 east-west survey lines.

The results identified several areas of anomalous gold and trace metal geochemistry coincident with, and adjacent to, gold in groundwater anomalies, further suggesting the presence of nearby gold mineralization in the underlying bedrock.

In 2007, NGE completed a 4.5 km (2.8 mile) east-west seismic geophysics line across the center of the Bull Creek Project to test for deep-seated, steeply-dipping fault zones. Geophone receiver groups were spaced every 55 feet and 2.2 pound explosives were detonated at 160 foot intervals to generate energy.

The program was successful in that the results show shallow bedrock, steeply dipping fault zones, clear geologic offsets along faults, and several horst and graben features. The seismic line confirmed that the groundwater chemistry target is underlain with a structural fabric that could be a conduit for mineralization.

In March and April 2008, NGE collected 65 km2 (25 mi2) of new detailed gravity geophysics at Bull Creek. NGE collected 496 new gravity stations on a 400 by 400 metre grid (1,300 x 1,300ft), with more detailed coverage at the centre of the target.

The survey successfully identified large areas where bedrock is believed to be very close to the surface, as well as areas of high relief suggestive of major, north-south block faulting.

In April and May 2008, NGE acquired 912 line kilometres (560mi) of detailed airborne magnetic data along 150 metre (500ft) spaced flight lines and 600 metre (2,000ft) spaced tie-lines; terrain clearance was approximately 100m (328ft); and total coverage was approximately 105 km2 (40 mi2)

The magnetic survey at Bull Creek identified a pronounced fabric suggestive of varied sedimentary, volcanic, metamorphic, and igneous rock types, as well as covered structure and hydrothermal alteration beneath the target.

The seismic, gravity, air magnetic, and geologic mapping surveys suggest a large target area of shallow, covered, meta-sedimentary, and intrusive basement at Bull Creek with lineal and circular patterns, suggesting emplacement of a younger volcanic/intrusive complex resulting in an altered and geochemically anomalous geologic setting.

NGE completed 18 reverse circulation drill holes in 2008 and successfully defined a 6.6 km by 9.9 km (2 by 3 mile) area of hydrothermally altered and geochemically anomalous felsic volcanic rocks beneath 50 to 300 feet of sand and gravel cover. Drill sections included several >650 foot intervals of hydrothermally altered and geochemically anomalous volcanic rock and show increasing hydrothermal alteration and increasing bedrock geochemistry as the center of the interpreted system is approached a short distance to the east.

• The Awakening Project is located approximately 53 km (33 miles) north-northwest of Winnemucca, Nevada, and 5 km (3 miles) north of the Sleeper Gold Mine.
• The fault zones and host-rock geology that control the gold mineralization at the Sleeper Gold Mine continue northward to Awakening along the same range front geologic setting.
• NGE identified elevated gold and trace elements in the groundwater at Awakening during its reconnaissance groundwater chemistry sampling program. The Awakening Project is a fully covered pediment target that has seen limited exploration to date. NGE secured the target by staking unpatented mining claims, and leasing 15 unpatented mining claims.
• NGE has completed soil geochemistry, air magnetic geophysics, and gravity geophysics surveys across the property and has delineated several highly prospective targets within this largely unexplored property.
• In 2010, NGE and Northgate Minerals Corp. (TSX:NGX) signed an Exploration and Option to Enter Joint Venture Agreement, whereby Northgate has the option to earn an initial 51% interest in NGE's claims at Awakening by spending $4,100,000 in exploration expenditures and making additional cash payments totalling $436,000 over five years. Northgate's exploration commitment in the first year is $500,000. If Northgate completes the initial 51% earn-in, it may earn an additional 14%, for a total of 65%, by completing a feasibility report on the Property. The Northgate Agreement does not include the 15 Shine Claims leased from DIR Exploration.

• 5 km (3 miles) north of the Sleeper mining district, which is being explored and developed by Paramount Gold and Silver Corp (NYSE:PZG) (combined past production and resource: 3,400,000 oz Au & 14,300,000 oz Ag)
• 40 km (25 miles) north-northwest of the Sandman Deposit, which is under active exploration by Newmont Mining Corp (NYSE:NEM) through an agreement with Fronteer Gold Inc. (TSX:FRG) (310,000 oz Au resource)

NGE has collected 85 groundwater chemistry samples at Awakening and analyzed each for gold and 80 other trace elements using ultra low level mass spectrometry. NGE extended sample coverage well beyond the edges of the target to define the boundaries of the water chemistry anomaly and to provide information about the normal, background water chemistry in the area.

The results of the detailed groundwater survey have delineated a large area containing highly anomalous concentrations of gold and other trace elements in the groundwater north of the Sleeper Gold Mine.

During April and June 2008, NGE collected 85 km2 (33 mi2) of new high quality gravity geophysics – 600 stations on a 400 by 400 metre (1,300 x 1,300ft) grid, with denser station coverage at the centre of the target. The survey was designed to delineate depth to metasedimentary and granitic bedrock, potential thickness of preserved rhyolitic volcanic rocks, and the location and orientation of prominent lithologic offsets that might be indicative of major fault zones.

The survey successfully identified significant areas where bedrock is believed to be close to the surface, as well as areas of high relief suggestive of major, block faulting and areas where rhyolitic volcanic rocks might be preserved.

To complement the gravity data, and to further examine the relative changes in the covered bedrock at Awakening, NGE completed an air magnetic geophysics survey across the project in April and May 2008. NGE acquired 1,460 line kilometres (900mi) of detailed airborne magnetic data along 150 metre (500ft) spaced flight lines and 600 metre (2,000ft) spaced tie-lines; terrain clearance was approximately 100m (328ft)l; and total coverage was approximately 175 km2 (68 mi2).

The detailed air magnetic survey was designed to be used in conjunction with the gravity data to define magnetically anomalous volcanic lithologies and zones of hydrothermal and/or structural magnetite destruction that might be indicative of major fault zones and possible hydrothermal alteration. The results show a pronounced geologic fabric suggesting varied rock types, covered fault zones, and possible alteration.

Guided by the detailed groundwater chemistry, gravity, and air magnetic datasets, NGE conducted a soil geochemistry program across the project in April and June 2008. The survey included 1,830 samples collected every 50m (164ft) along 24 survey lines.

The results identified several areas of anomalous gold and trace metal geochemistry coincident with, and adjacent to gold in groundwater anomalies, further suggesting the presence of nearby gold mineralization.

• The Jungo Project is located approximately 56 km (35 miles) west of Winnemucca, Nevada, and 50 km (31 miles) south-southwest of the Sleeper Gold Mine.
• NGE identified high concentrations of gold and other trace elements in agricultural and livestock wells near the Jungo railroad siding during its reconnaissance groundwater chemistry sampling program. The Jungo Project is a fully covered pediment target that has seen limited exploration to date. NGE secured the target by staking unpatented mining claims.
• NGE has completed detailed groundwater chemistry, air magnetic geophysics, and gravity geophysics surveys across the property and has defined prospective targets within this largely unexplored area of interest.

• 50 km (31 miles) south-southwest of the Sleeper mining district, which is being explored and developed by Paramount Gold and Silver Corp (NYSE:PZG) (combined past production and resource: 3,400,000 oz Au & 14,300,000 oz Ag)
• 40 km (25 miles) southwest of the Sandman Resource, which is under active exploration by Newmont (NYSE:NEM) through an agreement with Fronteer Gold Inc. (TSX:FRG) (310,000 oz Au resource)
• 23 km (14 miles) east of the Hycroft mining district, which is actively being mined by Allied Nevada Gold Corp. (TSX:ANV) (combined past production and resource: 14,500,000 oz Au & 432,000,000 oz Ag)
• 22 km (14 miles) east-northeast of the Rosebud mining district, which is under active exploration by Harvest Gold Corp. (TSX-V:HVG) (combined past production and resource: 640,000 oz Au & 4,430,000 oz Ag)
• 35 km (22miles) north-northwest of the Florida Canyon mining district, which is actively being mined by Jipangu (past production: 2,000,000 oz Au)

NGE has collected 44 groundwater chemistry samples at Jungo and analyzed each for gold and 80 other trace elements using ultra low level mass spectrometry.

NGE has modeled the groundwater chemistry results and has defined a large area of interest exhibiting highly anomalous concentrations of gold and other trace elements similar to those found at the Sleeper Gold Mine to the north-northeast.

In July 2008, NGE completed a detailed gravity geophysics survey at Jungo collecting 393 new gravity stations on a 400 by 400 metre (1,300 x 1,300ft) grid, covering approximately 80 km2 (30 mi2). The survey was designed to estimate the depth to bedrock, identify possible fault offsets, and differentiate changing rock types.

The gravity survey successfully identified significant areas where bedrock is believed to be close to the surface, as well as areas of high relief suggestive of major, block faulting. The combined gravity and water chemistry data suggest a shallow, covered bedrock source lying up-slope of the high gold in water concentration.

In August 2008, NGE completed an airborne magnetic geophysics survey across the Jungo Project to complement the gravity data and to further examine the relative changes in the target’s covered rock types. NGE acquired 1,070 line kilometres (664mi) of detailed airborne magnetic data along 150 metre (500ft) spaced flight lines and 600 metre (2,000ft) spaced tie-lines; terrain clearance was approximately 75m (250ft). Total coverage was approximately 130 km2 (50 mi2)

The magnetic survey at Jungo identified a pronounced fabric suggestive of varied sedimentary, volcanic and igneous rock types, covered structure, and areas of hydrothermal alteration coincident with the areas of anomalous groundwater chemistry.

• The Kelly Creek Project is located approximately 40 km (25 miles) north-northwest of Battle Mountain in Humboldt County, Nevada.
• The Project is located along the Battle Mountain – Eureka Gold Trend within the prolific Kelly Creek Basin, between multi-million ounce gold deposits on the north (Twin Creeks, Getchell, Turquoise Ridge, and Pinson) and south (Lone Tree, Marigold, Trenton Canyon, Converse, Buffalo Valley, Copper Basin, and Phoenix).
• Despite its close proximity to world class gold deposits, the Kelly Creek Project area has seen only limited exploration activity because the target’s bedrock is largely covered by syn- to post-mineral volcanic units and post-mineral alluvium.
• NGE identified the Kelly Creek Project as a direct result of its groundwater chemistry exploration program, and NGE secured the target by staking and leasing unpatented mining claims.
• NGE has completed groundwater chemistry and gravity geophysics surveys at the Kelly Creek Project and NGE believes the results, combined with the favourable regional and district lithology, structure, and alteration, indicate a strong potential for covered gold mineralization beneath the Kelly Creek Project area.

• 8 km (5 miles) northeast of the Lone Tree Mine, which is being mined by Newmont Mining Corp (NYSE:NEM) (combined past production and resource: >5,000,000 oz Au)
• 13 km (8 miles) north of the Marigold Mine, which is owned by Goldcorp Inc. (TSX:G) and Barrick Gold Corp (TSX:ABX) (combined past production and resource: >4,000,000 oz Au)
• 22 km (14 miles) south-southeast of the Turquoise Ridge/Getchell Mine, which is owned by Barrick Gold Corp (TSX:ABX) and Newmont Mining Corp (NYSE:NEM) (combined past production and resource : >15M oz Au)
• 24 km (15 miles) south of the Twin Creeks Mine, which is being mined by Newmont Mining Corp (NYSE:NEM) (combined past production and resource: >15M oz Au)
• 14 km (9 miles) south-southeast of the Pinson Mine, currently owned by Barrick Gold Corp (TSX:ABX) and Atna Resources Ltd. (TSX:ATN) (past production: >1M oz Au)

NGE has completed a large scale reconnaissance groundwater sampling program across the Kelly Creek Basin, collecting 97 samples and analyzing each for gold and 80 other trace elements using ultra low level mass spectrometry.

The results successfully delineated a significant area of geochemically anomalous groundwater chemistry with concentrations of gold in the same order of magnitude as those found in the groundwater surrounding the nearby major gold mines in the Kelly Creek Basin.

In the spring of 2010, NGE worked with an exploration group with non-competing interests to complete a detailed gravity geophysics survey at Kelly Creek. The survey included 1,100 new gravity stations on a 200 by 200 metre (650 x 650ft) grid for a total of approximately 60 km2 (23 mi2) covering the southern half of the Kelly Creek Project.

The gravity survey confirms a large area of shallow bedrock trending from Marigold and Lone Tree on the south, to Getchell, Turquoise Ridge, and Twin Creeks on the north. The survey also identifies zones of N-S trending rapid changes in bedrock relief suggesting underlying N-S fault zones, like those known to control mineralization elsewhere in the region. The area of shallow bedrock is also coincident with the area of anomalous groundwater chemistry.

• The Rye Patch project is located 27 km (17 miles) northeast of Lovelock in Pershing County, Nevada.
• The Rye Patch project is located 16 km (10 miles) south of the Florida Canyon gold mine, and 12 km (8 miles) south-southeast of the Standard gold mine, 16 km (10 miles) northwest of the Coeur-Rochester silver mine, 11 km (7 miles) west of the Spring Valley project, 18 km (11 miles) north-northwest of the Relief Canyon gold mine, and (10 miles) northeast of the Willard and Collado gold deposits. All eight hydrothermal systems are located within the north-south trending Humboldt Range and are associated with similar host rocks and high-angle range-front faults.
• The Rye Patch Project is completely covered by sand and gravel and has seen no exploration to date. NGE identified high concentrations of gold and other trace elements in domestic and industrial wells during its reconnaissance groundwater chemistry sampling program along the western flank of the Humboldt Range. NGE secured the target by staking unpatented mining claims and entering into mining lease agreements with private land owners.
• NGE has completed detailed groundwater chemistry, air magnetic geophysics, soil geochemistry, and most recently, gravity geophysics surveys across the property and has defined several prospective targets within the Rye Patch area of interest that warrant Phase I Drilling.

• 20 km (16 miles) south of the Florida Canyon Gold Mine and 12 km (8 miles) south of the Standard Mine – the combined complex is being mined by Japanju Holdings Inc. and reports a past production of 2,100,000 oz Au and a current combined reserve and resource of 1,729,400 oz Au.
• 16 km (10 miles) northwest of the Coeur-Rochester ine, which is currently being mined by Coeur d'Alene Mines Corporation (NYSE:CDE) and has reported producing more than 127,000,000 oz Ag and 1,500,000 oz Au. The mine has recently been expanded and currently reports 82,400,000 oz Ag and 656,000 oz Au in combined reserves and resources.
• 11 km (7 miles) west of the Spring Valley project, which is currently under exploration and development by Midway Gold Corp. (TSX.V:MDW) (1,800,000 contained oz Au resource).
• 18 km (11 miles) north-northwest of the Relief Canyon Gold Mine, formerly operated by Santa Fe Pacific Gold Corporation and produced 141,000 oz Au. The mine has seen additional exploration by First Gold Corporation who reported a 250,000 oz Au resource at a 0.03opt cut-off grade.
• 16 km (10 miles) northeast of the Collado and Willard deposits, currently being explored by Rye Patch Gold (TSX.V:RPM) under an exploration agreement from Newmont Mining (NYSE:NEM). RPM reports an indicated resource of 240,000 oz Au @ 0.027opt Au and an inferred resource of 130,000 @ 0.037opt Au.

NGE has collected 33 groundwater chemistry samples from the Rye Patch project using existing residential and industrial wells, as well as its Hydroprobe equipment. NGE analyzed each sample for gold and 80 other trace elements using ultra low level mass spectrometry.

The resulting groundwater chemistry model shows very high concentrations of gold and other trace elements similar to those associated with mineralization at the other nearby gold mines in the Humboldt Range.

Guided by the detailed groundwater chemistry data, NGE conducted a soil geochemistry program across the Rye Patch target in June and July 2008. The survey included 243 samples spaced every 50 metres along 9 survey lines.

The results delineated several priority target areas exhibiting anomalous concentrations of gold and gold-related trace elements in soils. The results also confirm the presence of elevated concentrations of gold in another sampling medium other than groundwater.

In August 2008, NGE completed an airborne magnetic geophysics survey across the Rye Patch Project to further examine the relative changes in covered bedrock types beneath the target area. NGE acquired 469 line kilometres (291mi) of detailed airborne magnetic data along 150 metre (500ft) spaced flight lines and 600 metre (2,000ft) spaced tie-lines; terrain clearance was approximately 75m (250ft); and total coverage was approximately 60 km2 (22 mi2).

The air magnetic data shows patterns suggestive of a sequence of volcanic rocks stepped down to the west along a series of normal faults that parallel the bounding range-front fault.

During December, 2009, and January, 2010, NGE collected 36 km2 (14 mi2) of new high quality gravity geophysics – 305 new gravity stations on a 400 by 400 meter grid (1,300 x 1,300ft), as well as along existing access routes.

The gravity survey defined several structural benches of bedrock located between major normal faults at a shallow depth beneath the covered area that correlate with areas of higher-than-normal groundwater and soil geochemistry.

• The Sand Pass Project is located approximately 11 km (7 miles) north of Winnemucca, Nevada.
• NGE identified elevated gold and trace elements in the groundwater at Sand Pass during its reconnaissance groundwater chemistry sampling program in 2004.
• Sand Pass is a completely covered pediment target that has not been previously explored. NGE acquired the property by staking unpatented mining claims and by entering into a mining lease with several private land owners.
• Since acquiring the property, NGE has completed soil geochemistry, air magnetic geophysics, and gravity geophysics surveys and has delineated several highly prospective targets.
• Based on the results to date, and on the projections of favourable lithology, structure and alteration present at regional, district, and property scales, NGE believes that Sand Pass has the potential to contain gold-silver mineralization within economic depths and that this important pediment target warrants a Phase I Drilling program.

• 40 km (25 miles) southeast of the Sleeper mining district being explored and developed by Paramount Gold and Silver Corp (NYSE:PZG) (combined past production and resource: 3,400,000 oz Au & 14,300,000 oz Ag)
• 24 km (15 miles) west-northwest of the Sandman mining district, which is under active exploration by Newmont (NYSE:NEM) through JV with Fronteer Gold Inc. (TSX:FRG) (resource: 310,000 oz Au)

NGE completed a hydrogeochemistry survey of the Sand Pass property using its Hydroprobe equipment in 2007. NGE has collected and analyzed 52 samples for gold and trace elements using ultra low level mass spectrometry.

The groundwater chemistry data define a large area of highly anomalous groundwater chemistry similar to that found at Nevada’s largest gold mines.

In May 2008, NGE collected 40 km2 (15 mi2) of new gravity geophysics data at Sand Pass, with 231 new gravity stations on a 400 by 400 metre (1,300 x 1,300ft) grid, to estimate the depth to bedrock, identify possible fault offsets, differentiate changing rock types, and establish likely groundwater flow patterns.

The gravity survey successfully identified significant areas where bedrock is believed to be shallow, as well as areas of high relief suggestive of major, block faulting. The combined gravity and groundwater chemistry data suggest a mineralized bedrock source to the west of the high gold in water concentrations.

In June 2008, NGE completed a detailed airborne magnetic geophysics survey across the Sand Pass property to complement the gravity data and to further examine the relative changes in the target’s covered bedrock. NGE acquired 430 line kilometres (267mi) of detailed airborne magnetic data along 150 metre (500ft) spaced flight lines and 600 metre (2,000ft) spaced tie-lines; terrain clearance was approximately 75m (250ft) and total coverage was 50 km2 (19 mi2).

The magnetic geophysics data show a pronounced geologic fabric suggesting varied rock types, covered fault zones, and possible zones of alteration.

Building on the groundwater chemistry and geophysics collected at Sand Pass, NGE conducted a soil geochemistry program across the property. NGE’s field crews collected 889 samples every 50 metres (164ft) along 15 east-west survey lines.

The results show anomalous gold and other associated trace elements across the property, confirming that the encouraging geochemistry at Sand Pass is present in more than one sampling medium.

• The Whiskey Flat Project is located approximately 23 km (14 miles) south-southeast of Hawthorne in Mineral County, Nevada.
• The project is located 21 km (13 miles) east-southeast of the Borealis Gold Mine and 32 km (20miles) east-northeast of the Aurora mining district. All three hydrothermal systems are located within the Walker Lane mineral belt and are related to complex Miocene tectonism and volcanism.
• NGE identified high concentrations of gold and other trace elements in agricultural and domestic wells at Whiskey Flat during its reconnaissance groundwater chemistry sampling program. The Whiskey Flat Project is completely covered by sand and gravel and has seen limited exploration to date. NGE secured the target by staking unpatented mining claims.
• NGE has completed hydrogeochemistry and a detailed air magnetic survey across the property. Based on the results of this work and on the regional and district scale lithology, structure, and alteration, NGE believes the Whiskey Flat area has the potential to contain gold and silver mineralization within economic depths, and that the project warrants advancement to the next exploration stage.

• 21 km (14 miles) east-southeast of the Borealis Gold Mine currently being explored and developed by Sage Gold Inc. (TSX.V:SGX) under an agreement from Gryphon Gold Corporation (TSX:GGN) (past production: 1,000,000.oz Au, and 5,000,000 oz Ag)
• 33 km (21 miles) east of the Aurora mining district, a historic producer currently owned by Great Basin Gold Limited (TSX:GBG) (past production: 2,000,000 oz Au, and 2,400,000 oz Ag)

NGE has collected 11 groundwater chemistry samples at Whiskey Flat and analyzed each for gold and 80 other trace elements using ultra low level mass spectrometry.

The hydrogeochemistry results confirm that there is a large area of interest exhibiting highly anomalous concentrations of gold and other trace elements similar to those found at the nearby Borealis and Aurora mining districts to the west.

In November 2009, NGE completed an airborne magnetic geophysics survey across the Whiskey Flat Project to examine the relative changes in the target’s covered rock types. NGE acquired 784 line kilometres (490 mi) of detailed airborne magnetic data along 150 metre (500ft) spaced flight lines and 600 metre (2,000ft) spaced tie-lines; terrain clearance was approximately 75m (250ft); and total coverage was approximately 90 km2 (35 mi2).

The magnetic survey shows patterns consistent with a covered area underlain by volcanic rocks cut by east-southeast fault zones that may control hydrothermal alteration.