| NEVADA

The
Property is located in Elko County, Nevada, 60 miles south
of Wells.
To the west of the Property is the prolific Carlin Trend,
which produces close to 3 million ounces of gold per year.
Approximately 10 miles to the southwest is the northern
boundary of the Battle Mountain-Eureka Trend, another linear
zone of significant gold endowment
The nearest significant gold mining operation is at Bald
Mountain (Barrick Gold), 40 miles to the south and which is
part of a group of north-south oriented gold mines including
the now-exhausted Alligator Ridge gold mine. In 2008, Bald
Mountain is reported to have produced 105,000 ounces of gold
and proven and probable mineral reserves as of December 31,
2008 are estimated at 2.85 million ounces of gold.
Property owner has proposed a model similar to the Bald
Mountain deposit, which is a copper-gold deposit, which, in
addition to zones of high-grade skarn ore, also hosts open-pittable,
sediment-hosted, lower grade mineralization.
The Property hosts classic copper/gold skarn
mineralization and extensive covered areas where other skarn
or sediment-hosted mineralization may lie undetected. The
skarns appear to be manto-like and the source of heat and
fluids could be a large intrusive located to the north of
the Property with dike offshoots cutting across the
Property.
Typically, delineation of “blind” skarn mineralization by
geophysical methods is a common exploration tool.
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