The Golden Brew claims ("Golden Brew") comprises 153 claims prospective for Carlin-style gold mineralization which has only been superficially explored by previous owners, including eight shallow drill holes totaling 2,885 feet completed in 1989. To date, gold mineralization at Golden Brew consists of a zone of gold bearing jasperoid measuring 2,500 feet long and up to 200 feet wide, hosted in thin bedded platey Cambrian-aged carbonates. Wherever sampled, the jasperoid is anomalous in all Carlin-type gold deposit pathfinder elements, with gold grades ranging from anomalous to 4 grams/tonne. The zone is exposed on the western slope of the Toiyabe Mountain Range and is truncated on the west by a north-south trending range front fault. West of the rangefront fault is an area of gravel cover where the company conducted gravity and CSAMT geophysical surveys. These surveys were designed to locate the gold bearing structure within the favourable host rocks at reasonable exploration depths beneath the gravel cover. The geophysical program was successful in locating an uplifted horst block with a potential gold bearing structure extending through it.
The Company has completed four holes of its initial eight hole, +10,000 foot reverse circulation drill campaign at Golden Brew. A total of approximately 8,800 feet of drilling was performed. The Company intends to complete the remainder of the drilling based on permitting and financing. The geophysically-interpreted uplifted carbonate horst block was encountered in three of the first four holes with thick intersections of favourable carbonate host rock stratigraphy. Geophysical modeling has been completed and will be used to target drill holes for the upcoming drill program. Assay results show a 150 foot interval of anomalous arsenic (to 290 ppm) and antimony (to 24 ppm) in drill hole GB-3. These levels are higher than the anomalous soils peripheral to the auriferous jasperoid at the rangefront 7500 feet to the east.
The following are summary logs of the first four holes on a north-south section spanning 7 kilometres (2.75 miles).
|GB-1||0 to 2,145 ft||2,145 ft||Alluvium|
|2,145 to 2,200 ft||55 ft||Volcanic tuffs|
|GB-2||6,000' south of GB-1||0 to 2,060 ft||2,060 ft||Alluvium|
|2,060 to 2,160 ft||100 ft||Volcanic tuffs|
|2,160 to 2,180 ft||20 ft||Thin-bedded limey siltstones|
|GB-3||4,000' south of GB-2 and 7,000' WNW of the large auriferous jasperoid at Golden Brew||0 to 1,380 ft||1,380 ft||Alluvium|
|1,380 to 2,100 ft||720 ft||Thin-bedded limey siltstones|
|2,100 to 2,200 ft||100 ft||Carbonaceous phyllites|
|GB-4||3,000' south of GB-3||0 to 1,685 ft||1,685 ft||Alluvium|
|1,685 to 2,200 ft||515 ft||Thin bedded limey siltstones|
As predicted by a previously executed gravity survey, the drill holes confirm an uplifted horst block around hole GB-3. The magnitude of the uplift is 800 feet. Gravity data suggests that this location is not necessarily the shallowest area of the horst block. The northern flank of the horst block is approximately coincident with the southern edge of the Eastgate Volcanic Trough. Based upon the drilling, the structural intersection between the southeastern terminus of the Eastgate Volcanic Trough and projected extension of the Golden Brew jasperoid is now interpreted to be proximal to, and east of drillhole GB-2. This area is a priority target for follow-up drilling.
Based upon the confirmation of a strong structural architecture is juxtaposition with favourable host rocks and geochemical evidence that the Carlin-type system exposed one mile east of the horst block extends under pediment to the west, management believes further drilling is warranted. The Company completed a 3-D inversion of the gravity data plus an additional 3 lines of CSAMT. This work further refines the structural interpretation of the property. The Company has engaged Enviroscientists, Inc. of Reno, Nevada who are currently in the process of permitting ten new drill sites on the Golden Brew property. In 2013, the Company filed a NI 43-101 report recommending a further 5 drill holes (10,000 ft) at Golden Brew.
The Company is party to a mining lease with Genesis Gold Corporation with an option to acquire a 100% interest in Golden Brew. The mining lease is for a term of fifteen years, and for so long thereafter as the Company is engaged in mineral development, mining or reclamation and closure activities on the property, subject to earlier termination by the parties in accordance with the mining lease agreement. The terms of the mining lease agreement include an initial payment to the optionor of US$10,000 (paid) on execution of the mining lease agreement. The Company has also agreed to pay to the optionor lease payments (the "Lease Payments") of US$15,000 (paid) on the first anniversary of execution of the mining lease agreement, US$25,000 (paid) on the second and third anniversaries and escalating Lease Payments thereafter until production is achieved or the mining lease agreement has terminated. The Company has an option which may be exercised at any time during the mining lease agreement to acquire a 100% interest in the property for the purchase price of US$2,000,000 (the "Purchase Price"), subject to a 2% net smelter returns royalty (the "Royalty"). The Company may not place the property into production without paying the optionor the Purchase Price in full. All Lease Payments made by the Company will be applied to the Purchase Price. The Royalty will be reduced to one percent of net smelter returns at such time as the Company has paid US$4,000,000 to the optionor in royalty payments. The acquisition is an arm's length transaction. In March 2014, the Companyexecuted an option/joint venture agreement with Regulus Resources Inc. ("Regulus") whereby Regulus may earn a 50% interest in the property by completing US$5.0 Million in exploration expenditures over 5 years. A first year exploration commitment of US$500,000 is firm. Upon earn-in, the parties will form a joint venture on a 50/50 basis with Regulus having the casting vote as operator.