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Nevada Exploration Inc. Enters Strategic Drilling Agreement with Drill NV
RENO, Nevada, Oct. 05, 2021 (GLOBE NEWSWIRE) -- Nevada Exploration Inc. (“NGE” or the “Company”) (TSX-V:NGE; OTCQB:NVDEF) is pleased to announce that it has ent
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[{"type":"text","content":" RENO, Nevada, Oct. 05, 2021 (GLOBE NEWSWIRE) -- Nevada Exploration Inc. (“NGE” or the “Company”) (TSX-V:NGE; OTCQB:NVDEF) is pleased to announce that it has entered into a strategic drilling partnership with Nevada-based Drill NV Inc. (the “Agreement”) to provide up to 31,000 feet of core drilling at NGE’s South Grass Valley Carlin-type gold project on an all-inclusive fixed-rate basis, chargeable only for dill holes completed to target depth, of which the Company may elect to pay Drill NV up to 25% in the form of NGE common shares. Under the Agreement: NGE shall deliver a deposit of $1,433,750 USD to Drill NV to secure specialized tooling to improve penetration rates and better case holes through the alluvium units above the bedrock, and to lock in pricing. Upon successful completion of each drill hole to its target depth of up to 4,500 feet, Drill NV shall invoice NGE at an all-inclusive fixed rate of $185 USD per foot, expected to be paid in the form of 50% in cash, 25% credited from the deposit, and 25% in NGE shares, calculated based on a 20% discount to NGE’s 30-day VWAP share price, subject to TSX Venture Exchange approval. Discussing the Agreement, NGE President, James Buskard: “Traditional drilling contracts force explorers to shoulder 100% of the technical risk of a drilling program (i.e. the drilling conditions), as well as 100% of the execution risk (i.e. the competence of the drillers and the condition of their equipment). This situation ultimately leaves explorers accepting widely variable and unpredictable drilling costs, plus even worse, paying for drill holes that are abandoned before they reach their target depth, which is infinitely expensive on an information-per-dollar basis. These risks and resulting cost increases are compounded at projects like South Grass Valley due to the industry-wide shortage of drillers with the experience needed to routinely complete deep holes to their target depths in challenging Carlin-type drilling conditions. “To avoid these known challenges, and specifically to provide both cost and depth certainty for our current drilling program, we are very pleased to be partnering with Drill NV. Over a period of more than 10 years, drilling deep holes in similar conditions, Drill NV’s team helped to develop the drilling strategies responsible for increasing the success rates f...