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Cordero Property
Nevgold's Cordero gold property is located seven miles southwest of the town of McDermitt in Humboldt County, north-central Nevada. The project is situated within the Opalite mining district, on the southeast rim of the McDermitt Caldera Complex. Nevgold controls 100% of the gold and silver mineral rights to one patented and 118 unpatented lode mining claims.
The 15 million year old bi-modal volcanic host rocks at Cordero are the same age and composition as those at other precious metal mines and deposits in northern Nevada. The geologic units range from near surface lakebed sediments to deeper rhyolites, minor andesites and basal basalts that all locally exhibit strong hydrothermal alteration. The silica alteration is typical of epithermal precious metal deposits, occurring as fault controlled, high level "opalite" with considerable vertical extent, as well as a relatively flat-lying "cap rock" covering large areas.
The property is known for its association with world-class levels of historic mercury production. The Cordero underground mercury mine lies within the property limits, and was the largest mercury producer in North America during its 1933-1970 operating life. The McDermitt open pit mercury mine is also partially within the property boundary, and was the largest North American mercury producer during operations from 1975-1989. The property's mercury endowment reflects a hydrothermal system that is remarkable not only for its size, but as well the strength and intensity of mineralization. The importance of the mercury mineralization at Cordero is due to its common association with many of the epithermal gold deposits in Nevada and elsewhere in the world.
Nevgold's 2007-2010 exploration programs resulted in the discovery of a significant gold mineralized system at Cordero. The Company's initial work focused on the compilation and analysis of multi-element geochemical data generated by a third party from over 170 shallow holes drilled between 2001 and 2007, and hundreds of surface rock chip and channel samples. Detailed two- and three-dimensional modeling of precious metals and select pathfinder elements within the framework of the Company's detailed geologic mapping on the property resulted in an integrated exploration model that served as the foundation for the follow-up drill programs. This drilling was focused on the exploration potential of high-grade banded gold-silver veins at depth, as well as lower grade, near-surface "high level" precious metals mineralization.
The 2008 Nevgold drill program consisted of thirteen shallow RC angle holes totaling 9,495 feet. The holes were drilled at minus sixty degrees, with an average down hole depth of 730 feet, which represents about 632 vertical feet below the surface. Four target areas were drilled with one to five holes in each area, with results summarized below:
- Anomalous gold (Au) mineralization was encountered in all 13 holes, where there were one or more intervals >0.1 g/t Au, 8 holes with intervals >0.2 g/t gold, 7 holes with intervals > 0.3 g/t Au, and 4 holes with intervals >0.4 g/t Au (0.012 oz/ton Au).
- Notable higher grade gold intercepts likely related to feeder faults, include 10 feet of 1.079 g/t Au (0.031 oz/ton Au) in MR-8 that may be related to an adjacent structure in MR-7 assaying 5 feet at 0.810 g/t Au ( 0.024 oz/ton Au).
- MR-10 encountered a zone believed to include both flat-lying bedding controlled gold mineralization and high-angle feeder faults with a 135 foot gold intercept from 105 to 240 feet that assayed 0.241 g/t Au (approximately 94-202 vertical feet below the surface).
- Silver intercepts were notably higher in the southern target area with individual intervals assaying 11.55 g/t from 295-300 feet in MR-1, 10.30 g/t from 660-665 feet in MR-3 and 8.52 g/t from 610-615 feet in MR-5.
Nevgold followed-up with a 2009 drill program consisting of two core holes and one shallow reverse circulation (RC) drill hole. This program was designed to test structural intersections controlling anomalous gold mineralization encountered in the 2008 RC program. The first core hole, MC-001, intersected anomalous gold mineralization, while the second core hole MC-002, intersected the highest gold grade sampled on the property to date at 5.4 feet (ft) grading 5.07g/t Au. Significantly, this 5.07 g/t intercept (0.148 oz/ton) is the first direct indication of high-grade, vein-hosted style gold mineralization, and was a major milestone in confirming the Company's exploration model. The single shallow RC hole, MR-14, was drilled from the same site as hole MR-010 (drilled in 2008), and intersected the best near surface oxide gold interval on the property to date at 30 feet grading 1.04 g/t (0.030 oz/ton) gold.
Nevgold's programs resulted in the discovery of a significant new Nevada gold-silver mineralized system at Cordero. The Company's exploration results defined a 2,250 foot long structural corridor of significant gold mineralization (i.e. > 0.3 g/t Au) with coincident pathfinder element geochemical anomalies. The grade and persistence of the shallow, oxide gold mineralization suggests upside exploration potential for bulk mineable gold targets that are associated with the upper levels of some deeper precious metals vein systems. Most importantly, the Company's high-grade, vein hosted gold intercept successfully demonstrates the viability of this high priority target type.
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