Gold Mineralization
The two styles of epithermal precious metal mineralization occurring on the Goldbanks property include: 1) low-grade, large-tonnage siliceous replacement-type (including quartz stockworks) and 2) high-grade, small-tonnage, structurally-controlled mineralization comprised of banded epithermal quartz veins and vein zone. The mineralization is the result of the same Tertiary (mid-Miocene) epithermal-hot spring hydrothermal event that deposited mercury mineralization at the surface and significant gold mineralization at depth.

Both styles of mineralization occur in the Main and KW Zones and are concealed by unmineralized Tertiary basalt flows, volcanoclastic and clastic rocks. For example, in the Main Zone, the bulk of the gold mineralization was deposited as siliceous replacements and quartz-vein stockworks occurring below a thick section of mudstone overlain by the basalt flows and sedimentary rocks.

This mineralization occurs in both Tertiary and pre-Tertiary basement rocks and typically exhibits a close spatial association with the pre-Tertiary unconformity and the extensively developed igneous dikes and sills occurring at or near this unconformity. Gold-bearing, siliceous, hydrothermal fluids deposited gold in large zones of intense faulting, fracturing, and brecciation that forms a northerly-trending body whose dimensions are ~2,500 x 5,000 feet. In contrast, the high-grade banded veins and vein-zones are thin (<1 to 10’s of feet), structurally-controlled epithermal veins that occur within this massive low-grade envelope of mineralization.

The gold grades in these high-grade banded veins range from ~0.5 up to ~8.0 oz Au/t and texturally, the veins are typical of those occurring in epithermal districts throughout the western United States. Some examples of grades and thicknesses of mineralized intercepts occurring in both the Main and KW Zone resource areas are given below.

Midas District (Ken Snyder Mine), Elko County, Nevada: Epithermal quartz vein system hosted by Tertiary volcanic rocks. Banded quartz veins and high gold grades are common as are bonanza-type ore. Pre-mining reserve of >3 M oz Au and 35 M oz Ag; currently in production and continued exploration.

Ivanhoe District, Elko County, Nevada: High-level epithermal vein system developed beneath a hot-spring type opalite mercury system similar to both Goldbanks and McLaughlin. The geologic setting is very similar to Goldbanks and most of the mineralization occurs at and below the Tertiary-pre-Tertiary unconformity with the underlying Ordovician sedimentary basement rocks. Development and continued exploration are currently underway.

Sleeper Deposit, Humboldt County, Nevada: Gold mineralization is hosted by Tertiary volcanics, subvolcanic intrusions and pre-Tertiary sedimentary rocks. Contains spectacular bonanza-type ores hosted by classic, epithermal banded veins. A large envelope of low-grade siliceous and quartz stockwork ore surrounds the high-grade bonanza veins similar to that at Goldbanks. Production is approximately 1.7 M oz Au; currently in a stage of renewed exploration.

McLaughlin Deposit, Napa County, California: High-level epithermal gold system that was initially mined as a hot spring type mercury deposit analogous to Goldbanks. High-gold grades were typical of the deposit along with lower grade ores. Quartz veins contain particulate gold in the banded vein and stockwork type mineralization. Production ~3 M oz Au; mined out?