Adjacent Properties to the Independence Gold Mine

Numerous deposits occur adjacent to the Independence Mine including the Tomboy, Minnie, Fortitude, Phoenix, Sunshine and the Natomas Placer deposit (Figure 15.1 Technical Report).

adjacent-properties

Tomboy and Minnie Deposits

The Tomboy and Minnie deposits were situated just east and southeast of the Independence Mine in Copper Canyon. These deposits were first identified by Duval Corporation in the early 1970’s and were placed into production during the winter of 1978 – 1979. In both deposits gold mineralization is contained in the lower Pennsylvanian age Battle Formation in carbonate rich conglomerates. Gold mineralization was contained in closely spaced fractures. Alteration products recognized at the time included silica flooding, epidote, chlorite and clay minerals, quartz veining was rarely noted. (Blake, D. & Kretschmer, E., 1980, Gold Deposits at Copper Canyon, Nevada).

The Large Phoenix Open Pit Gold and Copper Mine

The large Phoenix open pit gold and copper mine is located less than one mile east-northeast of the Independence project in Copper Canyon operated by Newmont Gold. Lithologically and structurally-controlled Copper Canyon mineralization can be considered to be the low-grade “halo” mineralization surrounding the old Fortitude Mine, both located in Copper Canyon on the east boarder of the Independence Property. Mineralization in Copper Canyon “is part of a large porphyry-skarn Au-Cu-Ag system developed around the 38 Ma Copper Canyon granodiorite porphyry stock.

Several Known and Inferred Stocks

A 3-mile long north-south zone of Au-Cu-Ag is centered on several known and inferred stocks that are part of a larger buried pluton based on hornfelsing, dike swarms, metal zoning and a broad aeromagnetic anomaly. High-angle, west-dipping NS-striking normal faults served as the primary hydrothermal fluid conduits, particularly the Virgin fault zone (currently referred to as the Master fault). Stratabound mineralization is hosted predominantly by carbonaterich sedimentary rocks of the Pennsylvanian/Permian Antler sequence, including the Antler Peak, Edna Mountain and Battle Formations. The fractured and deeply oxidized siliciclastic Cambrian Harmony Formation and Pennsylvanian Havallah Sequence are locally mineralized where strongly structurally broken.” (Saderholm, E., GSN Presentation February 17, 2006). The mine began production in 2006 as a large open pit, milling operation recovering gold, silver and copper ores from shallow sulfide mineralization.

Fortitude Deposit

The now depleted Fortitude deposit is situated approximately 4,000 feet north-northeast of the Independence and consisted of the Upper and Lower Fortitude deposits, discovered in 1981 and mined until 1993 by Battle Mountain Gold. Fortitude contained combined production of 2.2 million ounces of gold and 9.7 million ounces of silver (The authors of the Technical Report have been unable to verify this information and that the information is not necessarily indicative of the mineralization on the property that is the subject of this technical report). More than 90% of the Fortitude mineralization was contained in the Antler sequence which consists of the Edna Mountain, Antler Peak, and Battle Mountain Formations in the Roberts Mountains Allocthon.

Sunshine Deposit

The Sunshine deposit, mined by Battle Mountain Gold in 1995 and 1996, produced 32,000 ounces of oxide gold which was treated by heap leaching. Sunshine mineralization was hosted in cherts of the Havalla / Pumpernickel Formation of the Golconda Allocthon, and portions of the Independence Stock along its northern margin.

Bucket Line Dredge

The Natomas Company operated a bucket line dredge in the mouth of Copper Canyon from 1947 through 1955 when the dredge was sunk in an accident. These operations were situated on and just south of the current Independence Mine Property. According to Johnson (1973, p37 – 38) Natomas recovered 100,000 ounces of alluvial gold from this deposit. (Johnson, M., 1973, Placer Deposits of Nevada, USGS Bull. 1356, p118)

The qualified person has been unable to verify the above information and that the information is not necessarily indicative of the mineralization on the Independence property that is the subject of this technical report.