2016-05-18 00:13 ET - News Release
Mr. Bruce Durham reports
NEVADA ZINC COMMENCING YUKON EXPLORATION WEST OF KAMINAK
Nevada Zinc Corp. is commencing work in Yukon that will include work on its VIP property located just west of Kaminak Gold Corp.'s Coffee project. On May 12, 2016, Goldcorp announced that it had agreed to purchase all of the issued and outstanding shares of Kaminak Gold in a deal valued at approximately $520-million. Exploration work will also be completed by the owners of the YCS claim group, located immediately adjacent to the west boundary of Kaminak and just east of the VIP property. Nevada Zinc holds a 1-per-cent net smelter royalty on the YCS claim group.
Nevada Zinc's VIP property is composed of more than 750 claims (15,000 hectares) covering about 15 kilometres of favourable, largely unexplored geology to the west of gold discoveries at both Kaminak Gold's Coffee project and Independence Gold Corp.'s Denali project. The VIP property was originally staked by a group familiar with the Coffee project, and the VIP claims were staked and acquired by Nevada Zinc prior to the Coffee project gold discovery in 2010. An initial limited exploration program was completed on the VIP property in the latter part of 2011. That limited initial program established that the VIP property was underlain by favourable geology that included the presence of felsic intrusions, strong structural fabrics, breccias and quartz veins. Anomalous geochemical soil anomalies were discovered, and follow-up work was recommended. With the downturn in the junior mining markets that followed in the years 2012 to 2014, no budget was allocated to the VIP property; however, the entire property position was maintained. In the summer of 2015, a limited exploration program was undertaken in the southeastern portion of the VIP property to further develop the exploration database in that area. That limited program of geology, prospecting and geochemical soil sampling outlined two new gold target areas that remain open-ended and untested. The three or four most interesting gold exploration targets are only partially defined with wide-spaced data points, and little or no follow-up has been undertaken to date.
The company plans to carry out further work on the VIP property in 2016 to better define the lateral extent of the targets in preparation for eventual trenching and drill testing of the targets. The company also plans to carry out exploration this summer on its Goodman and Josephine properties, also located in Yukon.
President and chief executive officer, Bruce Durham, commented on the Yukon work: "The VIP property was our original listing property, and we think it has great gold potential. With the Kaminak feasibility study results and now the Goldcorp takeover, it appears there will be substantial infrastructure developed in the area rather quickly, and we will be able to explore in the area more effectively and efficiently. We will maintain our land position and continue to define specific targets for follow-up. We have a number of excellent gold projects in Yukon, including VIP next to Kaminak, and Goodman adjacent along trend to Victoria Gold's Eagle gold project. We will also be working at Josephine this summer, our property adjacent to Victoria Gold's Clear Creek project."
Mr. Durham, PGeo, is a qualified person as that term is defined by National Instrument 43-101 on behalf of the company and has approved the scientific and technical content contained in this press release.
Engagement of investor relations firms
The company also announces that it has engaged two firms to carry out investor relations activities in both North America and Europe. Effective immediately, the company has retained the services of Briscoe Capital Partners Corp. to assume responsibility of North American investor relations activity. The service agreement is for an initial term of six months, expiring on Nov. 10, 2016, subject to a one-month termination notice. Under the terms of the agreement, which is subject to approval by the TSX Venture Exchange, Briscoe will receive $6,000 per month in fees. As well, the company has retained the services of BlackX Management GmbH, a German-based investor relations firm, to carry out investor relations activity on behalf of the company in Europe. The service agreement has an initial term of three months, expiring on July 31, 2016. Under the terms of the agreement, which is subject to exchange approval, BlackX will receive 11,000 euros per month in fees.
The Lone Mountain project
While the company maintains its Yukon gold properties and continues to advance them, the focus of the company continues to be the exploration and advancement of the highly prospective, 100-per-cent-owned Lone Mountain zinc project composed of 218 claims covering approximately 4,000 acres.
The project is located in east-central Nevada and is easily accessible by paved and gravel roads northwesterly from Eureka, where all essential services are available. The project now includes the Mountain View mine, a past-producing zinc mine.
We seek Safe Harbor.