Project Update: New Exploration Areas; KW-West and Northern Anomalies
The 2006-2007 exploration program on the Goldbanks Project was focused on delineating gold mineralization concentrated in the pre-Tertiary rocks located in the half of the project area. This area is located in the vicinity of the KW Zone, a modest resource area that was delineated by Kinross Gold Corporation in the 1990’s. A large altered and mineralized area that occurs west of the KW Zone exhibits highly anomalous gold and trace elements (As, Sb, Hg, etc.). The eastern perimeter of this area was detected by Kinross Gold in the 1990’s by a soil grid over the KW Zone, but was not explored further or drilled. Beginning in 2005 and continuing to 2007, Desert Gold systematically mapped and geochemically sampled this area and a much discovered a much larger area located to the northwest of the KW Zone, known as the KW-West and Northwest Anomalies, respectively.
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.
In the northern portion of the Goldbanks Project area, similar styles of mineralization as those concealed in the Main and KW Zones occur in surface outcrop in the KW-West and Northern Anomaly areas. These areas are typified by intense hydrothermal alteration, including extensively developed replacement silicification, quartz veining and stockworks. Simple to complex multi-staged banded quartz veins are common and exhibit all the epithermal textural features observed in the high-grade veins and mineralized quartz-vein stockworks encountered at depth in the Main and KW Zones. Both the KW-West and the Northern Anomalies exhibit large, coincident gold and trace element anomalies with the intense silicification and veining. The KW-West anomaly is roughly 1,800 x 2,000 feet while the larger Northern Anomaly is approximately 1,500 x 3,500 feet.
Surface Exploration
Several goals were defined and carried out during the 2006-2007 exploration program. Most of the goals have been completed and those that are not will be completed in early 2008. The exploration criteria utilized to formulate the exploration drilling program slated to begin in May 2008 are outlined below.
- Complete 1:6000 (1”=500’) mapping of the entire property.
- Complete a large soil geochemical sampling program covering the northern half of the property, all newly staked ground, and extending soil coverage in the KW-West and Northern Anomaly areas.
- Complete the rock geochemical sample coverage of the newly located ground.
- Compile all geologic and geochemical data and select drill targets in un-drilled areas of anomalous geochemistry and intense hydrothermal alteration.
- Prepare a detailed set of geologic sections for both the KW and Main Zone resource areas to identify areas of un-tested potential and attempt to determine the principal controls of gold mineralization, including the high-grade veins.
- Prepare a comprehensive drilling program to test the newly-defined and unexplored target areas and exploration of the principal ore controls and high-grade veins in the Main and KW Zones.
- Complete all permitting with the Bureau of Land Management and the State of Nevada.
Exploration Drilling Program
The exploration drilling program is planned to commence in May, 2008 and will consist of both reverse circulation and diamond drilling. Drill site preparation and access roads will begin in May, 2008 and will be closely followed by both core and reverse circulation drilling. It is estimated that at least 30,000 feet of core and 30,000 feet of reverse circulation drilling will be complete before the end of 2008. Drill results will be compiled and analyzed on an ongoing basis and the program will be adjusted as needed.
Exploration Program Budget
- Total program budget with contingences totals: $2,850,000.00
