Navaho Gold has entered into an agreement with Genesis Gold Corporation to form an alliance to explore for Carlin-style gold deposits in New Mexico, US.

Navaho Gold CEO Mark Dugmore said the new tenure position compliments its position in Nevada and builds an "outstanding" gold exploration portfolio in the western US.

"I look forward to continuing to update the market on this exciting new initiative as it continues to progress," said Dugmore.

Under the terms of the alliance agreement, Navaho Gold will provide finance for exploration on the New Mexico gold projects.

It will spend $500,000 on exploration over a minimum of two years to earn an initial 51% interest in the projects.

Navaho Gold may also provide funding of up to $2.5m on select projects to increase its interest from 51% to 80%.

Under the deal, Genesis will manage and undertake exploration activities over the area.

The joint venture alliance has secured an initial tenure position over several prospects which have potential to yield gold discoveries.

The discoveries are similar to the Carlin-style gold deposits in the gold province of Nevada.

The alliance has completed initial first pass rock chip sampling over all prospects with each returning high anomalous values for gold, silver, arsenic and antimony.