Nevada Gold Holdings - Projects: Why Nevada

The state of Nevada maintains a reputation as a geologists' and miners' paradise for a number of reasons. For starters, geologists only care about things that are tens, sometimes hundreds of millions of years old, back when jungles and oceans existed on this planet in places where deserts and mountains stand today. Nevada is so barren that major parts of it are essentially America's answer to the moon, meaning relatively little pesky shrubbery to obstruct observing and evaluating geological formations and rock characteristics. In fact, with the exception of a few small rivers that feed into the Colorado River on the southernmost border, or into Idaho's Snake River from the NE corner of the state, no rivers lead out of Nevada into the ocean. Geologically most of Nevada is part of a sunken desert known as The Great Basin where all streams eventually meander to a place where the water simply evaporates or sinks into the ground. Secondly (actually firstly), Nevada "has got the beef." The modern economic history of the state starts with the Comstock Lode ("The mine that helped save the Union"). Today, Nevada is the world's third largest gold producer after South Africa and Australia. Major gold trends exist in Nevada with the Carlin, Eureka and Cortez being the most famous. Other, less explored trends exist including the north – south Rabbit Creek trend.

A proverbial saying in the gold mining business is that if you want to find elephants, go to elephant country where big elephants have already been found. According to the Nov 2002 Gold Newsletter, "The rich Carlin Trend is second [in the world] only to the legendary Witwatersrand Basin of South Africa in terms of gold reserves..." Dave Mathewson believes the Rabbit Creek trend holds the same potential.

A highly competent geologist is doing extremely well relative to his peers to uncover two or three economic deposits in a 30-year career that might have 250,000 ounces in reserves apiece. Nevada trend numbers are so huge by industry standards, that it may be more appropriate to refer to the major Nevada Trends as "Super-Elephant" country. Dave Mathewson has been responsible for discovering several large gold deposits in excess of 5 million total ounces while working at Newmont Mining. He knows the potential exists for additional world-class discoveries.

An Aug 3, 2004 Raymond James research report noted that 31.5 million ounces have been proven up to date in the broader Battle Mountain-Eureka Trend compared to 107 million ounces for the Carlin trend. The report reasons that since 23.5 million ounces have been discovered in the last 13 years (since 1991), the trend very likely "is still in `exploration infancy' compared to the Carlin trend, which has been explored since the 1960's." The Rabbit Creek Trend is a newly developing region which holds significant promise.

The conclusion is that Nevada remains one of the most attractive exploration areas in the United States and frankly the world. Instead of choosing remote, politically unstable countries, the management of Nevada Gold Holdings has focused on Nevada acquisitions based on positive geological information indicating the possible presence of one or more large gold deposits.


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