Nevada Exploration — Investor Presentation (October 2012)
42 slides from Nevada Exploration's investor presentation, Oct 9, 2012
Slide 1: Humanity has a love affair with gold
Humanity has a love affair with gold. From the crusades and armadas of ancient times, to the more recent Californian and Yukon gold rushes, our quest for this elusive element has defined much of world history. Pundits offer differing but equally compelling arguments as to whether or not gold has any
Slide 2: Cautionary Statement
Zz Nevada Exploration. TSX-V: NGE Cautionary Statement Warning! The business of Gold Exploration can be FUN, but it can also be hazardous to your physical, emotional, spiritual and financial health! This Presentation contains certain "forward-looking statements" including, without limitation, expect
Slide 3: Gold Exploration Using Groundwater Chemistry
ZZ Nevada Exploration. TSX-V: NGE RENO.EXPLORATION OFFICE |t7\\ “Pim APPLICATION OF INTELLECTUAL PROPERTY AND PROPRIETARY GROUNDWATER CHEMISTRY DATABASE USING NEW APPLICATIONS OF EXISTING TECHNOLOGY TO NEW AREAS OVERLOOKED BY THE REST OF THE INDUSTRY Gold Exploration Using Groundwater Chemistry EXCE
Slide 4: Experience is good, but good experience is better
Experience is good, but good experience is better az Nevada Exploration. TSX-V: NGE Created and Currently Managed by a Team of | Successful Discovery-Oriented Geologists Rosebud Wade A. Hodges, m.sc. President, CEO & Director Over his 35 years of successful, field-oriented, exploration experience, W
Slide 5: Supported by a Team of Junior Resource Management
Zz Nevada Exploration. TSX-V: NGE Supported by a Team of Junior Resource Management, Jennifer Boyle,.s * Director . Antonio Ponte 5 Director Cyrus Driver, ca ‘ CFO & Director . John Ryan, ca 2 Director 5 Financial and Legal Directors President, CEO & Director of Satori Resources Inc. Co-founder, Pre
Slide 6: The Mining Industry Consists of Two Separate Businesses
Nevada Exploration. — The Mining Industry Consists of Two Separate Businesses 1. Exploration and Discovery 2. Development and Production
Slide 7: Gold mining consists of two distinct businesses
The gold mining industry consists of at least two separate and distinct businesses – Exploration and Discovery AND Development and Production. The value-added profile of the business of gold mine Developing and Producing is tossed about by high operating costs, changing regulatory environments, poli
Slide 8: Why are discoveries decreasing despite increasing exploration spending?
If it was true that Exploration and Discovery were just about expending more money in the same places doing the same things, then why are discoveries decreasing in spite of increasing exploration expenditures? 8
Slide 9: Strong demand but falling discovery rates
With strong demand from buyers, explorers have considerable incentive to search for more gold, and with historically high gold prices, the last few years have seen a dramatic increase in exploration spending around the world. Surprisingly, however, despite the fact that explorers are spending more m
Slide 10: Industry discovery costs and the price of admission
Industry Discovery costs are currently estimated at $50/oz; at +$1,700/oz gold, the business of Exploration is clearly a worthwhile endeavour. However, there is a high price of admission: for each new million ounce resource, the industry needs to spend an average of $50M on exploration over several
Slide 11: The Keys to Realizing These Rewards
Nevada Exploration. — The Keys to Realizing These Rewards Lie in Understanding: 1. That Nevada is still the best place on the planet to look for big gold deposits AND .... why. 2. The time and money expended by NGE in applying overlooked existing technology that can dramatically focus exploration re
Slide 12: Nevada Basin and Range gold concentration
Nevada is centered in the geologically unique Basin and Range physiographic province where N-S elongate mountain ranges (gray) alternate with valleys or basins (light yellow). Nevada and in particular, north-central Nevada, has the highest concentration of multi-million ounce gold deposits (yellow d
Slide 13: Nevada has a Unique Geologic History
Nevada Exploration. — It is Helpful for the Gold Investor to Understand that Nevada has a Unique Geologic History. 13
Slide 14: Genetic model for Nevada world-class gold mines
Up until recently, a coherent genetic model explaining why so many world-class gold mines are located in central Nevada has been lacking. lacking Increased interest in gold, gold renewed interest in Nevada and at a time when we now have an improved understanding of what controls the location of thes
Slide 15: Ancient sea and limestone deposition 385 Ma
The story that the investor should understand is not really than complicated and does not require a lot of geologic jargon to explain. The same geologic processes that can be seen operating today operated 385 Million Years Ago (Ma) when an ocean once covered what is now Nevada. The sea life that for
Slide 16: Western limit of limestone formation
Today, in north-central Nevada the light blue dashed line demarks the western limit of the formation of a large expanse of limestone. Thick layers of sand, silt and clay are located to the west of the light blue dashed line. 16
Slide 17: Plate tectonic processes push from west to east
Over time complex, powerful plate tectonic processes push from the west to the east against what will become the Western US. 17
Slide 18: Upper and Lower Plate structural traps
In north-central Nevada, this pushing resulted in the eastward movement of the deep-sea sand, silt and clay rock layers that acted together like a large ‘plate’ that broke along the western edge of limestone deposition (light blue line). The Western Upper Plate of sand, silt and clay rock layers was
Slide 19: Rising hot fluids and magmatic activity
However, without rising hot fluids containing gold and other elements, there would only be an empty “pressure pressure cooker cooker”. Basically, a shallow subduction slab existed for 100 million years underneath Nevada but sank about 40 million years ago when Pacific Plate Tectonics changed abruptl
Slide 20: Volcanic and intrusive activity from 40Ma to 25Ma
The heat, gold, other elements and some of the hot water required to form a Carlin- type gold deposit came from molten rock chambers that were generated as a result of volcanic and deeper intrusive activity that swept from the NE corner to the SW corner of Nevada from 40Ma to 25Ma. 20
Slide 21: Best area to look for Carlin-type deposits
In summary, the very best area to look in Nevada and likely the world for multi- million ounce Carlin-Type gold deposits is located under the yellow highlighted area – BUT the area is still very large (25,000 mi2) and requires a clear exploration strategy to focus exploration resources. However, som
Slide 22: Post-mineral faulting and basin cover
Carlin-type gold ore bodies (red) formed within the rocks of the Earth’s crust through th geologic the l i processes previously i l described d ib d from f 40 to t 25 million illi years ago (Ma). (M ) Starting around 15 Ma, the bedrock, AND the gold ore bodies contained therein, were separated into
Slide 23: How Can These Observations Be Used to Find More Gold?
Nevada Exploration. — How Can These Observations Be Used to Find More Gold Faster and for Less Money? 23
Slide 24: Gravity geophysics and groundwater chemistry
Nevada Exploration. TSX-V: NGE Much like Cross Hairs on a Gun Sight 1. Gravity Geophysics identifies areas within the Basins where bedrock is covered by only a thin veneer of sand & gravel. 2. Groundwater Chemistry then identifies which bedrock areas are associated with groundwater containing higher
Slide 25: Gravity surveys and groundwater hydrochemical scent
1)) Gravity yg geophysical p y surveysy allow areas of thinlyy covered bedrock to be identified through gravel cover. 2) Groundwater interacts with rocks and picks up a distinct and recognizable hydrochemical ‘scent’ of the rocks it contacts. As a result, the groundwater surrounding a gold deposit c
Slide 26: NGE pioneered groundwater chemistry for gold exploration
Nevada Exploration. — NGE was alone in pioneering the collection, sample preparation, analysis and reduction of groundwater chemistry for use in gold exploration. To this point NGE had to rely on existing access to the ground water table, i.e.- existing springs and water wells that may not be locate
Slide 27: Groundwater recharge interacts with covered bedrock
Each year oxygenated snow and rain depleted in trace elements fall in the mountains to recharge groundwater flow into sand- & gravel-filled basins interacting with covered bedrock and any hidden gold deposits . 27
Slide 28: Springs, windmills and irrigation wells provide access
Streams, springs, windmills and Irrigation wells throughout Nevada provide simple, first-pass access to the groundwater table. 28
Slide 29: First and only company using direct-push hydroprobe sampling
NGE is the first and only company in Nevada to use wholly-owned, direct-push, hydroprobe groundwater sampling technology to sample previously unexplored areas where groundwater is not so easily accessed. 29
Slide 30: Anomalous Groundwater Chemistry
Anomalous Groundwater Chemistry nN 4 30
Slide 31: The Hydroprobe direct-push equipment
The Hydroprobe or Geoprobe was designed specifically for the environmental sampling industry to minimize the surface and subsurface impact of extracting a groundwater sample. The equipment uses “direct-push” technology, so is not technically a “drill”, i.e.- no rock cuttings are removed and no chemi
Slide 32: Direct-push tooling and sampling process
The tooling consists of hollow, 1.5 inch diameter, 5 ft rods that screw together. A metal point is held in place by rubber O-rings at the end of the first rod and a cap is placed over the end to protect the threads. The cap is placed under a piston that then pounds the rod in to the ground. Another
Slide 33: Portfolio of new, previously unexplored projects
NGE is using its proprietary hydrogeochemistry exploration technology to identify and advance a portfolio of new, previously unexplored projects. NGE currently has ownership interests in 9 projects, totaling nearly 200 km2, and is applying standardized, staged exploration to manage risk. NGE’s ongoi
Slide 34: NGE's Project Generator Business Model
ZZ Nevada Exploration. TSX-V: NGE NGE’s Project Generator Business Model (1) GENERATIVE EXPLORATION Leverage IP and Technology to Highest Best Use by Generating New Projects in New Areas (2) EARLY STAGE PROJECT DEVELOPMENT Complete Early Exploration to Capture the Biggest Value Bump (3) OPTIONS & JO
Slide 35: Groundwater chemistry also generates cash flow
Nevada Exploration. — THE HIGHEST BEST USE OF USING GROUNDWATER CHEMISTRY TO DISCOVER NEW MULTI-MILLION OUNCE GOLD DEPOSITS ALSO GENERATES CASH FLOW (>$500,000 in 2012) THROUGH: 1. Leasing of Groundwater Sampling IP 2. Sales/Leasing of Data Base 3. Service Agreements with Geothermal and Lithium Comp
Slide 36: Gravity geophysics focuses on shallow gravel cover
Gravity geophysics focuses exploration resources onto concealed and poorly explored bedrock areas with the shallowest gravel cover. 36
Slide 37: Targeted covered areas for groundwater sampling
The covered areas located in the best places to explore for large Carlin-type gold deposits (area between the two white lines) are targeted for ongoing groundwater sampling. 37
Slide 38: Compiled groundwater chemistry prioritizes areas
Groundwater chemistry compiled by NGE (blue dots = legacy data, i.e.- no gold +/- various trace elements) helps to initially prioritize those covered areas with “dirty” groundwater. 38
Slide 39: Groundwater chemistry collected by NGE and nine properties
Groundwater chemistry collected by NGE (blue dots = legacy data, i.e.- no gold +/- various trace elements; red dots = NGE groundwater samples, i.e.- high-resolution gold plus trace elements) further focuses exploration resources onto those areas with BOTH the highest gold in groundwater chemistry AN
Slide 40: Fletcher Junction and Grass Valley under Joint Venture
Fletcher Junction and Grass Valley under Joint Venture Others Available for Joint Venture 40
Slide 41: Share Capitalization (Sep 21, 2012)
Nevada Exploration: — SHARE CAPITALIZATION (SEP 21, 2012) Issued and Outstanding: 118,015,851 Options: 8,100,000 Warrants: 5,278,000 Fully Diluted: 131,393,851 Insider Ownership: ~40% www NevadaExploration com 41
Slide 42: For More Information visit
For More Information visit: www.NevadaExploration.com a Nevada Exploration Ine HALF OF NEVADA REMAINS: UNEXPLORED. wissen But not for much longer... VANCOUVER OFFICE RENO OFFICE INVESTOR RELATIONS te 1500, 8 corpia Stree reg Street. Suite 10¢ Brevedsexplorst 42
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