Nevada gold mines and Nevada silver mines: Cibolan Gold Corporation

Independence Project Overview

History

Cibolan Gold Corporation, is a precious metals oriented junior exploration and production company. Led by CEO Dan Forbush, the company has an excellent management team with over 150 years of combined experience in the mining industry.

The company’s flagship property is the Independence Mine, one of a few Nevada gold mines with silver production as well. The Independence Mine contains one million ounces of gold and four million ounces of silver in the measured, indicated, and inferred categories. Cibolan Gold Corporation has completed a NI 43-101 Technical Report and has submitted it to the Toronto Ventures Exchange – approval is expected shortly. In addition to the 43-101 Report, Cibolan Gold Corporation is also in the midst of preparing a Preliminary Economic Assessment (PEA) for this Nevada gold mine.

Production at the Nevada Gold Mine, Independence Project
The Independence mine, one of Nevada’s Gold Mines, has been in production intermittently since 1938 all the way through 1987, when this Nevada Gold mine project went into probate. After emerging from probate, the Independence Project was brought to the team at Cibolan Gold Corporation by a gentleman named Bob Carrington and is now 100% owned by General Metals. Historically, the Independence Project has produced 11,000 ounces of gold at an average grade of 0.2 ounces per ton. The Project has also generated a lot of silver — about 750,000 ounces of silver were produced at grades averaging 11.5 ounces per ton.

Surrounding Mine Operations

Unique Gold and Silver Location
The Independence Project is located in Lander County, Nevada; a gold mining friendly state. Cibolan Gold Corporation’ immediate neighbor is the Phoenix Mine, which is owned and operated by Newmont Mining. There are numerous historic mineral deposits along this trend which include: Iron Canyon, Sunshine, Tom Boy, Minnie and Fortitude. The Fortitude mine’s historic production approaches 2.2 million ounces of gold and 10 million ounces of silver. Now a part of Newmont’s Phoenix Project, the Fortitude deposit still contains an additional 6-8 million ounces of gold and approximately 660 million pounds of copper. Fortitude was among the most lucrative mines in Nevada history because of its high grades and its receptivity to leaching processes. Metallurgical testing at the Independence Nevada gold mine Project indicates that this silver and gold mining property should have a strong leaching profile as well.

Independence Project

Cibolan Gold Corporation has drilled 131 holes at the Independence Project and there are another 110 holes that have been drilled by other companies. More than 92,000 feet of drilling has been conducted at this Nevada gold mine property, with Cibolan Gold Corporation having contributed about half of this total. Cibolan Gold Corporation has succeeded in bringing the historic drill holes and the assays on those holes up to 43-101 standards, thereby allowing the company to incorporate this data into its resource estimate.

Significant Near-Surface Deposits at the Silver and Gold Mine Nevada Independence Project
The near-surface deposit contains 16 million tons at an average grade of 0.014 ounces per ton gold and 0.23 ounces per ton silver. In total, the measured and indicated categories for the near surface deposit comprise 223,000 ounces of gold and 3.8 million ounces of silver. This system is a shallow, low-grade target that is amenable to heap leaching and open pit mining. Every hole that Cibolan Gold Corporation has drilled at the Independence Project has encountered mineralization.

The Independence Nevada Gold mine Project’s current strike length is over 3,000 feet and the deepest drill holes have shown the deposit extends down to a depth of around 400 feet. The company expects that additional drilling can extend the mineralized zone another 2,000 feet to the north and increase its width by close to 1,000 feet. There are also indications that a second mineralized zone sits beneath the current 400-foot shallow zone. Survey data suggests that the zone is right around 800 feet and contains decent gold and silver mineralization. Cibolan Gold Corporation needs to prove this resource up as well. At depths of 400 feet and below, you move into sulphitic material where oxidation is minimal. To extract ore from this deeper mineralized zone, Cibolan Gold Corporation would have to use some other type of processing method than heap leaching.

Large Deep Skarn Targets
The deep skarn deposit is a very alluring target for Cibolan Gold Corporation. The skarn shows consistent mineralization, consistent grades in all seven (7) drill holes. Using limited drilling data, the company was able to generate an inferred gold resource calculation of 796,000 ounces. The average grade is around 5 grams per ton and the deposit is currently about 1,400 feet wide and 3,400 feet long. The deposit seems to be sitting on the center of a skarn. With additional drilling, there is the potential to uncover a multi-million ounce gold resource. That being said, the deposit lies 2,500 feet below the surface, which of course makes drilling an expensive proposition.

Deep Gold Skarn

There also appears to be a gold-copper porphyry trend underneath the deep skarn deposit. One drill hole went deep enough in this trend to intersect 2 ounces of gold per ton. At present, Cibolan Gold Corporation has no other working knowledge on the potential of this deposit. The deposit is highly prospective, but it does seem to be part of the Battle Mountain General Metals trend, which is responsible for 23 million ounces of historic gold production.

Future Plans
Below is an estimated Independence Nevada gold mine project timeline for the Independence mine. General Metals will be completing its Preliminary Economic Analysis (PEA) in the near future which will establish a detailed estimate of the mine’s life, production and profitability. It will also validate the substantial gold and silver values of the project.

General Metals will next conduct additional drilling programs to further validate near surface mineralization and other deep targets which should increase the projects’ overall resource base

General Metals is in the process of recapitalizing the company to facilitate additional exploration and development. The company is also acquiring a TSX listing on the Canadian exchange which should broaden its access to an additional investor base and associated capital markets.

Project Timeline