Nevgold Resource Corp.
TSX VENTURE : NDG

Nevgold Resource Corp.

March 29, 2011 07:00 ET

Nevgold Drill Program to Follow-up on Historic High-Grade Silver Mineralization at Historic Cornucopia Mining District, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) - Nevgold Resource Corp. (TSX VENTURE:NDG) ("Nevgold" or "the Company") is pleased to announce plans to follow-up on historic high-grade silver drill results at the Cornucopia property in north-central Nevada during the 2011 field season. Nevgold's recent compilation of over 25,000 feet of historic drill results has not only highlighted the high-grade silver mineralization within the well-known Leopard vein system, but as well a corridor of lower grade, near-surface, oxide silver-gold mineralization with bulk tonnage exploration potential. The historic drill data, coupled with the Cornucopia District's high-grade underground mining history that dates back to 1873, emphasizes the discovery potential for a broad system of silver mineralization that has remained unexplored during the current bull market in precious metals. Cornucopia's upside potential is further underscored by the recent 30 year highs in the price of silver. The Company's upcoming program will be focused on the surface-exposed, high-grade, oxide silver (gold) mineralized system hosted within Nevgold's privately-held, patented claim land position. Please see www.nevgoldcorp.com for more information.

Introduction and Discussion of Historic Drill Results. The Cornucopia project occurs in Elko County's historic Cornucopia mining district, and is situated approximately 15 miles north-northwest of Tuscarora, Nevada. Nevgold's consolidated land position covering the Cornucopia district is comprised of a contiguous block of one patented and 48 unpatented lode mining claims totalling approximately 950 acres. The property's epithermal silver mineralization is hosted by Tertiary volcanic rocks, and is similar to the Midas mine (Newmont Mining Corporation) and the Ivanhoe property (currently under development by Great Basin Gold) located 32 miles to the southwest. The mineralization is associated with quartz veining, silicification and argillic alteration. High-grade silver veins of the Leopard underground mine occur with ruby silver, tetrahedrite, stephanite and electrum, and display crustiform to colliform banding, and evidence of multiple periods of vein and wall rock brecciation.

Nevgold's data compilation is based upon past exploration conducted by three companies: 1) Homestake Mining Corporation drilled 9 rotary and 9 core holes totalling 4,559 feet in 1979, 2) Western States Mining Company drilled 58 rotary holes totalling 11,800 feet from 1980 to 1981, and 3) Bonanza Silver Corporation drilled 14 reverse circulation holes totalling 9,175 feet in 2000. This historic drill data, combined with mine production records and surface geologic mapping, delineates a northwest trending, 2000 by 500 foot corridor of silver-dominant precious metals mineralization parallel to the structural fabric of the Leopard vein system.

In general, the drill pattern consists of vertical holes at a nominal grid spacing of 70 to 100 feet. The mineralized corridor is best represented by Homestake's drilling on a fence of three angle core holes (CD-16 to -18) and one rotary vertical hole (CR-2) that returned a series of near-surface silver intercepts as summarized below.

Drill
Hole
From
(ft)
To
(ft)
Length
(ft)
True
Width
(ft)*
Silver
oz/ton
Silver
g/t
CD-16 62 131 69.0 64.8 2.42 83.1
CD-17 23 53 30.0 27.2 8.23 282.0
  Including 23 43 20.0 18.1 11.92 408.7
CD-17 164.5 173 8.5 7.7 1.81 62.1
CD-18 18 91 73.0 30.8 6.60 226.1
  Including 56 66 10.0 4.2 38.00 1302.9
CR-2 0 100 100.0 34.2 7.31 250.5
  Including 45 90 45.0 15.4 13.84 474.5
*True widths are approximate and based upon interpretation of the mineralizing controls as currently understood.

Although Cornucopia has been known as a high-grade silver district, there is a significant envelope of lower grade oxide mineralization as outlined by over 2900 feet (11%) of drilled intercepts that assayed greater than 0.50 oz/ton silver (max 71.50 oz/ton Ag). In addition, the property has significant gold exploration potential as given by drill intercepts totalling 900 feet (3.5%) that assayed greater than 0.010 oz/ton gold (max 0.660 oz/ton Au). Importantly, the silver mineralization crops out at surface, as highlighted by the drill intercepts in the following table (also see CR-2, 0-100 feet in preceding table).

Drill
Hole
From
(ft)
To
(ft)
Length
(ft)
True
Width
(ft)*
Silver
oz/ton
Silver
g/t
CR-4 0 165 165 56.4 1.77 60.8
  Including 120 145 25 8.6 4.78 163.7
CR-6 0 30 30 10.3 1.82 62.3
L4S-0E 0 195 195 66.7 1.32 45.1
L5S-0E 0 90 90 30.8 0.99 34.0
L6S-0E 0 70 70 23.9 1.17 40.2
*True widths are approximate and based upon interpretation of the mineralizing controls as currently understood.

Homestake and Western States focused their 1979-1981 work in the area of historic underground mining activity, whereas Bonanza Silver's drilling in 2000 was principally peripheral to the zones of known mineralization. Accordingly, the property has not undergone significant exploration in the primary resource target area in nearly 30 years. This presents Nevgold with an exceptional exploration opportunity in a mining district known for its documented history of high-grade silver production (NBMG "Mineral Resources of Elko County, Nevada 1991; Bulletin 106; Lapointe, Tingley and Jones).

Nevgold's 2011 Program. The Company is currently planning for a 2011 exploration program consisting of geological mapping, geochemical sampling and reverse circulation drilling to follow-up on the historic results. Nevgold's drilling will provide a check of the historic rotary and core assay results, as well as potentially providing a foundation for a NI 43-101 compliant resource estimate for the property. The location of the principal target area within Nevgold's patented claim position should facilitate the permitting process, which is expected to be completed by the end of May (assuming normal seasonal weather conditions).

Comments on Historic Results and 2010 Nevgold Sampling. The Company believes that the historic drill results are reliable and relevant. There are no historic drill samples available for Nevgold check assaying, although the Homestake drill logs do record confirmatory independent lab check assays. Furthermore, exploration results from three companies, one a well-known international mining company (Homestake, since taken over by Barrick in 2002) and another a long-standing US explorer and producer (Western States Minerals Corp.), provide some measure of independent cross-check and verification of the results. Nevgold's preliminary reconnaissance assessment of the property included 38 grab samples taken from waste dumps and stockpiles in the historic mining area, with results averaging 1.61 oz/ton silver (55.1 g/t Ag), with a maximum 17.15 oz/ton silver (588.0 g/t Ag). The gold results from this sampling averaged 0.013 oz/ton (0.44 g/t Au), with a maximum of 0.186 oz/ton (6.37 g/t Au).

Comments on Sampling, Assaying, and QA/QC. Nevgold's samples were collected in accordance with accepted industry best practices. Assay and geochemical analyses were performed at ALS Chemex (ISO 9001:2000 certified), with gold determined by fire assay with ICP-AES finish, and silver determined with aqua regia digest and ICP-AES or AAS techniques. As standard procedure, the Company conducts routine QA/QC analysis on all assay results, including the systematic utilization of certified reference materials, blanks, and field duplicates.

Mr. Dean D. Turner, P.Geo., a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed and verified the technical information contained in this news release.

About Nevgold. Nevgold Resource Corp. is focused on the acquisition, exploration and development of select high quality precious metals properties with near to intermediate term production potential in the western US.

Forward-Looking Statement:

Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Nevgold Resource Corp. Actual results may differ materially from those currently anticipated in such statements.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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