Location and Accessibility

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Location and Accessibility

• Property is located on the southern flank of the
  Copper Mountains in the Humboldt National Forest.
• The mining claims are located in sections 13, 14,
  23 and 24 Township 44 North, range 57 East, Mt.
  Diablo base and Meridian.
• The property may be reached by traveling north
  from Elko, Nevada on state highway 51/225 for a
  distance of 55 miles, then northeasterly on a
  gravel Road 27 miles to Charleston.

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Physiographic Features

• Mining property is located in the transition area
  between the Great Basin Province and the Columbia
  Plateau Province.
• The Jarbidge wilderness area lies to the
  northeast about 5 miles and Copper Mountain is
  about 4 miles to the north of the property.
• Topography in the claimed area is gentle to
  moderate, elevations range from 6400 feet to 7300
  feet.

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Climate and Vegetation

• The climate of the area is typical to the climate
  of the northern Great Basin Province.
• Winters are severe and summers are mild to hot.
• The average annual precipitation over the area
  varies from eight to 15 inches.
• The natural vegetation in this area is sagebrush.
  A good variety of perennial grasses and browse
  cover most of the property.
• Some woodland cover of aspen and willow are found
  along the streams and drainage ways that
  intersect the hillsides.

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History of the Mardis/Charleston Mining District

• The first mineral deposits found in the district
  were placers, located chiefly on the west side of
  76 Creek about 4 miles above Charleston.
• Placer deposits are located in Pennsylvania
  Gulch, Union Gulch, Dry Ravine, and Badger Creek.

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History of the Mining District (cont.)

• There have been several lode deposits mined in
  the district.
• The Graham Mine is about 4 miles north of
  Charleston. According to Schrader (1923) the
  mine contains 1600 feet of underground workings.
  The tunnel drift, 900 feet long, is on a vein
  which in 1914 was said to have contained an 18
  inch ore shoot of 16 per ton ore.

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History of the Mining District (cont.)

• The Prunty Mine is about one third of a mile
  above the Graham mine.
• It has been worked intermittently since 1905. The
  ore was treated in a hydraulic five stamp mill.
  The metals produced were silver, gold, copper and
  antimony.

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History of the Mining District (cont.)

• The Black Warrior Mine is about one half mile
  north of the Prunty Mine at the head of a
  drainage from the west emptying into 76 Creek.
• The mine is developed on a gossan formed along a
  contact between limestones, shales and
  granodiroite intrusives. Ores from the mine were
  reportedly processed in a small cyanidation mill.

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Geology

• The property is underlain by three types of
  rock.
• Oldest are the shales and limestones of Paleozoic
  age which have been metamorphosed into low-grade
  slates, hornfels and marbles respectively.
• Next oldest are the granodioritic intrusives.
• Youngest are the rhyolites which lie in fault
  contact with the intrusive and metamorphic units.

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Geology (cont.)

• Sedimentary units seen on the property are
  referred to as shales and limestones instead of
  their actual metamorphic counterparts.
• Shales and limestones are correlative to the
  Devonian and Pennsylvanian Pilot shale and
  Johanna limestone.
• The Johanna limestone is the host rock in the
  Black Warrior Mine.

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Geology (cont.)

• Igneous rocks. The granodiorite plug is the
  oldest igneous unit on the property and is
  probably Jurassic in age.
• Volcanic rocks on the property are all of the
  Jarbidge rhyolite formation.
• Geologic Map, next slide

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Structural Geology

• The structures seen on the property appear to be
  expressions of two major structural trends in
  this part of Nevada.
• Both trends are believed to be Precambrian or
  lowest Paleozoic origin.
• The first and oldest set is the N 10 E to N 35 E
  set of faults and shears expressed locally in the
  structurally controlled drainages from 76 Creek
  to Copper Creek.
• Most of the northeast trending drainages, faults
  and shears are sympathetic to the major
  structures in Copper Creek and 76 Creek.

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Exploration Activities

• Twelve exploratory holes were drilled on the
  property for a total of 3400 linear feet.
• Assay reports show that 7 of the 12 drill holes
  had anomalous gold values and 4 of the holes
  (drill holes 1, 2, 10 and 11) intersected
  mineable grade material.
• Drill hole 1, at a depth of 129 to 130 feet,
  intersected ore assaying .038 ounces of gold per
  ton. The same hole, at a depth of 240 to 251
  feet, intersected ore assaying .015 ounces of
  gold per ton.

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Exploration Activities (cont.)

• Drill hole 2 from 15 to 40 feet in depth
  intersected gold ore averaging .063 oz gold per
  ton. This hole at a depth of 160 to 165 feet
  intersected ore assaying .486 ounces gold per
  ton and at a depth of 165 to 170 feet intersected
  ore assaying .019 ounces gold per ton.
• Drill hole 10 from 95 to 100 feet in depth
  intersected ore assaying .058 ounces gold per ton
  and from 115 feet to 120 feet in depth
  intersected ore assaying .061 ounces gold per ton.

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Exploration Activities (cont.)

• Drill hole 11 intersected gold ore from 0 to 5
  feet assaying .840 ounces gold per ton and from 5
  to 15 feet intersected gold ore assaying an
  average of .054 ounces gold per ton.
• Drill hole 11 from 95 to 140 feet in depth
  intersected gold ore averaging .031 ounces of
  gold per ton. Ninety five (95) feet was the
  beginning of a sulfide zone. The drill rig could
  not penetrate deeper than 140 feet because of
  excess water and heavy sulfides. This zone of
  sulfide mineralization is obviously the top of a
  gold copper skarn or the top of a copper porphyry
  deposit. Copper values in the zone from 115 feet
  to 140 feet in depth averaged .13.

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Exploration Activities (cont.)

• Exploratory excavations were made by dozer
  equipment. Results of laboratory tests on
  samples taken from these excavations are shown in
  the following slide (table 1).
• Locations of the excavations are shown on a
  topographic map following table 1.

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DRILL HOLE LOCATIONS

• DRILL HOLE LOCATIONS SHOWN ON THE FOLLOWING
  TOPOGRAPHIC MAP

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Geochemical Sampling

• Sample RP 2113, .018 oz per ton gold.
• Sample DM 16, .065 oz. per ton gold.
• Sample RP 2081, .083 oz. per ton gold.
• Sample RP 2072, .029 oz. per ton gold.
• Sample RP 2089, .013 oz. per ton gold.
• Sample RP 2092, .046 oz. per ton gold.
• Geochemical sampling of soils and rock chips were
  conducted on the property. Anomalous gold values
  were discovered in at least six samples.
• See Following Slide for Geochemical Value Map

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Assay Companies Performing Chemical Analysis for
this Project

• Rocky Mountain Geochemical Corp.
• Salt Lake City, Utah.
• Analytical Services
• Elko, Nevada
• Monitor Geochemical Laboratory
• Elko, Nevada
• The Assay Lab,
• West Jordan, Utah

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Additional Exploratory Activities Needed to
Outline Reserves

• It appears the northwest trending shear zones
  intersect a structure following Union Gulch in
  the vicinity of drill holes 1, 2, and 10.
  Additional drill holes up Union Gulch may reveal
  more mineable material.
• More exploratory drill holes should be drilled in
  the vicinity of the Prunty and Slattery mines.
• Drill holes where anomalous geochemical values
  were encountered will also be desirable.

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The Case for a Gold Copper Skarn at the Black
Warrior Mine

• There is a good argument drill hole 11
  encountered a gold copper skarn at about 95 feet
  in depth. The gold values in the sulfide zone
  which average about .031 ounces gold per ton meet
  the criteria of at least 1 g au per ton (Theodore
  et al, 1991).
• This value is probably low, because native gold
  associated with quartz particles probably could
  not be brought to the surface because of the high
  volume of water encountered and the drilling
  method used.

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Case for Gold Copper Skarn (cont.)

• Copper values in the sulfide zone average .13
  at the Black Warrior Mine. The ratio of cu/au is
  1179. This ratio would be substantially
  different if native gold had been brought to the
  surface during drilling. Apparently, the gold
  values encountered involved small gold particles
  attached to the sulfides which were probably less
  than 40 microns in size.

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Case for Gold Copper Skarn (cont.)

• Host rock at the Black Warrior Mine is the calcic
  Johanna limestone of Pennsylvanian age.
• Granodiorite intrusive is probably of Jurassic
  age.
• Geochemical signature, gold, copper, and arsenic
  are abundant.

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Exploration Activities to Delineate Extension of
Skarn

• Airborne mapping method similar to that used at
  Yerington, Nevada to map the skarn
• Magnetic and gravity surveys
• Directional drilling
• Extensive geologic mapping on the ground

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Roberts Mountain Thrust System

• Thrust System is on our claims. Paleozoic
  sequence fits thrust pattern.
• Guilmette formation and overlying pilot shale on
  the property typify formations associated with
  the thrust system.
• Thrust system presents possible exploratory
  drilling targets in the upper or lower plates of
  the thrust.

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PROBABLE GOLD RESERVES

• Conservative reserves 50,000 ounces
• Based on drill hole analysis and geology
• Realistic reserves 2,000,000 ounces Based
  on historic evidence of producing mines in the
  area, drill hole analysis and high values of
  arsenic (realgar and arsenopyrite) and antimony
  (stibnite) in vein systems, and free milling gold
  values.

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NEXT STEPS

• Priorities
• Develop Skarn Deposit
• Additional Exploratory Drilling
• Detailed Geologic Mapping
• Questions/Discussion