Gold exploration in Nevada with implications for geothermal?

One of those wild shot news items, but something I found rather interesting. In an announcement to the Toronto Venture Exchange, Nevada Exploration Inc. (TSX-V:NGE) a gold exploration company based in Reno, Nevada, describes how it will explore potential gold resources through water chemistry at a project site in Nevada.

The company uses “water chemistry to discover another previously unknown hydrothermal system”.  While there have been other examples of mining companies with a geothermal angle, like Lihir Gold Mines in Papua New Guinea, which has its own geothermal power plant, this was new to me.

The company is looking for a potentially gold-bearing hydrothermal system, the company applies all kinds of technical tests in its exploration efforts. The company also explores possibilities of possible royalty or joint venture partnerships, particularly regarding its water chemistry work which is very important for geothermal power as well. It could – so NGE – “add value to the completely seperate, growing geothermal industry in exchange for funding to pursue its primary business of gold exploration”, and for that matter there are discussions ongoing with interested geothermal companies.

In light of current difficult financial markets, the company is also looking at ways to preserve capital. So joint efforts in exploring both gold and geothermal resources could be a win-win situation for the company and a geothermal player, and maybe a model for other projects.

Source: Company statement (via marketwire)