The SW Pipe project lies within the Cortez Gold Belt of north-central Nevada and consists of unpatented mining claims staked by NV Gold Corporation that cover approximately 6.5 square km (2.5 square miles). The project contains a sediment-hosted (Carlin-type) gold system 6 km southwest of the Pipeline gold mine. Pipeline, operated by Barrick Gold Corp., contains approximately 21 million ounces of gold (past production plus reserves). Historic vertical drilling at SW Pipe, mostly between 1989 and 1997 and within 150 m of surface, intersected significant shallow gold mineralization, including: 0.44 g/t over 17 m containing 2.36 g/t over 1.5 m, 0.75 g/t over 11 m containing 1.83 g/t over 3 m, and 0.60 g/t over 18 m containing 1.35 g/t over 5 m as outlined in Table 1. First-phase rock-chip sampling by NV Gold has returned gold values to 1.74 ppm with high arsenic and antimony, elements enriched in productive Carlin-type gold deposits. Mineralization is largely within 100 m of surface, and is hosted by siltstones and quartzite within the western-facies sequence (the upper-plate of the regional Roberts Mountains thrust fault). Gold is known over a vertical range of at least 300 m within an area of at least 1,300 by 500 m. Preliminary results indicate that north-northwest-striking faults may have localized mineralization which also spread laterally away from these “feeder” faults in a stratiform style along a major geologic contact, possibly a thrust fault. The north-northwest striking faults have not been tested by drilling, and faults of this orientation are the key control to localizing gold mineralization along the Cortez gold belt, including the nearby Pipeline, Cortez Hill and Goldrush deposits, which contain at least 40 million ounces of gold.
The Company has obtained and is continuing to review the historic exploration data, which includes original assay certificates and drill logs from drill holes, surface rock-chip and soil data, internal third party reports and geologic and geophysical interpretations. Although the historic exploration data was generated by reputable companies, NV Gold cannot verify the data or determine the quality assurance and quality control measures applied. Continuing work by NV Gold will be aimed at assessing the potential for mineralization beyond the historic drilling and, in particular, for mineralization within steep “feeder” structures which have not been tested by the historic drilling.
Selected Drill Hole Gold Composites*
|Hole||From (m)||To (m)||Length (m)||From (ft)||To (ft)||Length (ft)||Au g/t|
* Composites calculated at a cutoff of 0.1 g/t gold; mineralized thicknesses do not necessarily equate to true width.