International Enexco Limited
TSX VENTURE : IEC

International Enexco Limited

June 08, 2009 13:10 ET

International Enexco Signs Joint Venture Agreement With Nevada Exploration Inc. to Earn Up to a 70% Interest in Hot Pot Gold Property, Humbolt County, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 8, 2009) - Arnold Armstrong, President and CEO of International Enexco Ltd. (TSX VENTURE:IEC) (the "Company" or "Enexco") reported today that the Company has entered into an option agreement with Nevada Exploration Inc. (TSX VENTURE:NGE) ("NGE") on its 100% owned Hot Pot gold property, in Humbolt County, Nevada. The 2,225 acre (900 hectare) private lease land property is located between Winnemucca and Battle Mountain, Nevada.

The Hot Pot property is located near two major gold deposits, 6.5km (4 mi) east of Newmont's Lone Tree mine and 13km (8mi) north of Goldcorp's Marigold mine, each containing multi-million ounce deposits (9,000,000 ounces combined). The Hot Pot property was identified by anomalous groundwater chemistry in 2004. Regional gravity data indicated the area was underlain by a bedrock high covered by a thin layer of sand and gravel. The concept was confirmed by nine shallow reverse circulation holes in 2005 which revealed hydrothermally altered bedrock with anomalous gold and trace elements geochemistry similar to Lone Tree. Further geophysics in 2007-2008 identified north-trending structures, and detailed the depth to bedrock which varies up to 115 m (370 feet). Another ten shallow reverse circulation holes were drilled in 2008 and intersected altered bedrock, but the program ended before deeper, angle holes could be drilled to test the steeply-dipping structural targets.

The Hot Pot property is the third Nevada gold prospect that Enexco has announced this year (see Enexco April 2, June 2, 2009 news).

International Enexco President and CEO, Arnold Armstrong stated today that:

"Enexco is now well diversified into gold exploration while simultaneously focusing on the continued advancement towards production of our 100% owned Contact Copper Project and on our ongoing partnership with Cameco Corp for uranium."

The joint venture between Enexco and Nevada Exploration calls for Enexco to complete a work program that includes 6,000m of core drilling over three years to earn a 51% interest in the Property, with the option of earning an additional 19%, for 70% total, by drilling an additional 3,000m within the following 12 months. The Hot Pot property is subject to underlying Net Smelter Return royalties totaling 4.25%.

Enexco plans to mobilize one of its company-owned core drills to the property to begin drilling in the near future.

For the purposes of information pertaining to this press release, Dr. William Willoughby, who is a Director of International Enexco, is the Qualified Person as defined in National Instrument 43-101. Dr. Willoughby is also the Manager of Engineering and Mine Development for International Enexco Limited at the Company's 100% owned Contact Project in Nevada.

ABOUT INTERNATIONAL ENEXCO

International Enexco is a results driven, copper, gold and uranium exploration and development company managed by industry professionals. International Enexco owns and operates its own drill rigs and has partnerships with several companies including Cameco Corp (NYSE), AREVA (Paris Stock Exchange) and Fronteer Development Group (NYSE). Enexco also continues to advance its 100% owned Contact Copper resource project, Nevada.

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.

Contact Information

  • International Enexco Limited
    Paul McKenzie
    Director
    (604) 669-8368
    (604) 642-2629 (FAX)
    www.enexco.ca