Nevada Gold In Agreement To Acquire Former Producing High-Grade Mine

DEL MAR, CA - Nevada Gold Corp, President Merrill Moses said, The company has entered into a formal option agreement to acquire up to a 75% interest in a former producing high grade silver, lead, gold mine located in Nevada. The Diamond Jim Mine in Elko County consists of 35 claims and is located in northeastern Nevada, 20 miles south of the Idaho border, 69 miles north of the city of Elko and 260 miles northeast of the city of Reno. The property lies on the easterly end of the northeast-trending Midas trend. The Midas trend hosts a number of significant to world-class gold districts. The mines produce mainly from epithermal vein systems favorable for small but profitable high-grade operations and "Carlin-type" sediment-hosted deposits amenable to large-scale open-pit bulk mining.

The property covers a portion of the historic Island Mountain mining district which was first prospected in the 1860's, following discovery of one of Nevada's largest placer gold districts (40,000 ounces of production) in streams draining the area. Veins containing silver, lead, zinc, copper and gold were discovered in 1934. At the mine silicified thrust faults and selected stratigraphic zones are hosts to high silver-lead values with strong indications for gold occurring in some subordinate flanking structures.

Immediately to the northwestern part of the claim block, the Gribble antimony mine contains quartz-stibnite veins with minor gold mineralization. Based on gold deposit discovery histories in several other Nevada gold districts.

Nevada Gold's immediate business plan is to further explore and evaluate the property for potentially richer deposits that might be exploited in the current climate of high precious metal prices.