Nelson Resources (ASX:NES) appoints Nevada Rand as underground diamond drilling contractor at Gold Point

Nelson Resources (ASX:NES) has announced that Nevada Rand LLC has been appointed as underground diamond drilling contractor at the Company’s Gold Point Gold-Silver Project in Nevada, USA.

The appointment supports the next phase of Nelson’s underground exploration strategy at the historic Orleans Mine, where the Company has commenced its maiden underground drilling program following successful mine rehabilitation, drill station establishment and mobilisation of drilling equipment and crews.

Highlights

• Nevada Rand LLC appointed as underground diamond drilling contractor at the Gold Point Gold-Silver Project in Nevada, USA.
• Nevada Rand previously completed rehabilitation works at the historic Orleans Mine, where access has been restored to key underground positions required for Nelson’s maiden underground drilling program.
• The underground diamond drilling program is designed to test extensions of the Orleans vein up to approximately 40m beyond existing underground workings, including interpreted high-grade positions and potential parallel footwall structures.
• Recent sampling from the Orleans 300′ level returned 77.9g/t Au and 46.1g/t Ag over 1m from fault breccia adjacent to a historic stope, approximately 150m below surface.
• Gold Point contains more than 5km of underground workings across five historic mines and more than 20 additional shafts.
• Great Western has been identified as the next priority mine access area, with rehabilitation planning underway.

Nevada Rand previously completed rehabilitation works at the historic Orleans Mine, where access has been restored to key underground positions required for Nelson’s maiden underground drilling program.

Nevada Rand is a local Nevada contractor familiar with the Orleans underground environment, having undertaken the rehabilitation works that restored access to key underground positions required for drilling.

The planned diamond drilling phase is designed to follow Nelson’s initial short-hole underground drilling program at Orleans, with the objective of extending testing beyond the immediate historic workings and generating higher-quality geological information on vein geometry, structure, mineralisation continuity and potential parallel structures.

The underground diamond drilling program is expected to use a compact underground drill station, with holes designed to test extensions of the Orleans vein up to approximately 40m beyond existing underground workings, interpreted high-grade vein positions outside the current mine development, potential parallel structures in the footwall position, continuity of mineralisation adjacent to and beyond historic stopes, and structural and geological controls on the high-grade gold-silver system.

Nelson Non-Executive Chairman Gernot Abl said,

“The appointment of Nevada Rand keeps momentum building at Gold Point. They have already helped restore access at Orleans, and that familiarity with the mine gives Nelson important continuity as we move into the next phase of underground drill testing.”

Recent sampling from the Orleans 300′ level returned 77.9g/t Au and 46.1g/t Ag over 1m from fault breccia adjacent to a historic stope, approximately 150m below surface.

Previous underground sampling at Orleans also returned results including 7.34g/t Au and 574g/t Ag, 5.61g/t Au and 84g/t Ag, and 1.38g/t Au and 289g/t Ag.

Gold Point contains more than 5km of underground workings across five historic mines and more than 20 additional shafts, with reported pre-WWII production of approximately 75,000oz Au at an average grade of 20 to 30g/t Au and significant silver production.

Available records indicate that this production was largely derived from only four of fifteen currently mapped high-grade gold-silver veins.

Next Steps

• Continuing the initial underground drilling program at Orleans
• Collecting and submitting drill samples for assay
• Finalising diamond drill hole planning and underground logistics
• Commencing follow-up underground diamond drilling
• Testing extensions of the Orleans vein beyond existing workings
• Integrating drilling, mapping, sampling and underground survey data into the Company’s 3D model
• Advancing Great Western as the next priority underground access and drill target area

The Company has already identified the Great Western Mine as the next priority mine access area, with rehabilitation planning underway and intended to progress as the Orleans drilling program advances.

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