TECHNICAL REPORT on the SPRUCE RIDGE, Carlin Style Gold Project NEVADA U.S.A.
For LONG CANYON
Written according to National Instrument (NI) 43.101 Technical Report requirements.
By Alex Burton, P. Eng., P. Geo.
The Spruce Ridge, Nevada project is on the adjacent range immediately west of the recent Pequop Mountains, Long Canyon Trend major discovery by Fronteer Gold of a substantial Carlin-type gold deposit. The Long Canyon deposit was acquired in February 2011 by Newmont Mining Corporation USA for a reported $2.3 billion.
As of January 12, 2011, published ore resources at Long Canyon were 1,396,000 oz. of gold at an average grade of 2.36 grams per gold per ton contained in 18,371,000 tons of ore. Inferred resources were 803,000 oz. of gold at average grade of 2.24 grams gold per ton contained in 11,170,000 tons of rock.
Through continued exploration, Newmont has since announced additional increased tonnage. Long Canyon intends to explore its claims for the same type of geologic target, a large tonnage gold deposit similar to the West Pequop Mountain Long Canyon type of gold deposit. Long Canyon will use similar exploration techniques modified to fit the characteristics of the Spruce Ridge property which have fracturing/alteration similar to that of Long Canyon.
Spin-off companies from the original explorers of the Long Canyon discovery are exploring in the Wood Ridge range north of the Long Canyon claims, and south of the Long Canyon claims in the Spruce Ridge range. These spin-off companies are tied on or -adjacent to the northern and southern boundaries of the Long Canyon claims.
The southern company is Renaissance Gold Inc. which has an exploration agreement with Summit Mining Exploration 11, Inc. which is a US subsidiary of Sumitomo Corporation. A recent press release (06/11/2012) said they have already spent US $ 1.8 million on Spruce Mountain exploration and announced a second round budget US $ 1.7 m in additional expenditures for the project.
Miranda Gold has the east Spruce property which is to the southeast of the CanyonGold property and is immediately east of the RenGold/Sumitomo JV project.
The company to the north is NuLegacy Gold Corporation exploring their Wood Ridge South property optioned from RenaissanceGold Inc. They completed a series of geochemical and gravity surveys to guide two sets of drilling. NuLegacy's southern boundary is contiguous to CanyonGold's northern boundary. To the east of the NuLegacy ground between their holdings and the Long Canyon project is Agnico- Eagle.
Typical exploration methodology deployed for the Long Canyon variety of a Carlin type gold deposit is to identify major break in the shelf type Paleozoic carbonate sediments similar to Long Canyon that developed the complex fracturing and extensive faulting and semi Karsting dissolution channels and openings that are the conduits for the gold mineralization.
A combination of soil geochemistry, plus gravity, and Induced Polarization geophysical surveys is used to define highly fractured areas below the major faults where gold deposition occurs such as at Long Canyon.
The project is in northeastern Nevada in the basin and range topography where tensional displacement has caused large blocks of bedrock to be slightly pulled apart along northerly trending fault lines so that the blocks have been tilted to the east or the west thus forming longitudinal mountains separated by parallel valleys that have become filled with eroded sediments from the mountains. The Wood Ridge and the Spruce Mountain Ridge are the range immediately west of the Pequop Mountains. They are separated by the Independence Valley, and are construed by geologists to be part of the same Palaeozoic sediments that make up the Pequops where the major Long CanyonGold deposit was recently discovered.
The exploration philosophy used by the northern and southern gold exploration companies adjacent to the CanyonGold project is that they are looking for a similar set of geologic circumstances as found controlling the major Long Canyon discovery. The Long Canyon discovery is related to vertical faults that cut the shelf type sediments to allow ingress of surface water to lower layers of the Palaeozoic sequence to more soluble horizons where the water dissolved the more permeable layers causing a Karst type of collapse of the blocks that extended upwards through the sequence. Then hydrothermal fluids gained access to this complex of slump fault structures and deposited the precious metal mineralization. Often a deep seated intrusive is postulated as the source of the hydrothermal ore bearing fluids. In the case of the Long Canyon discovery Newmont Mines USA reports there is validity to explore for tens of millions of ounces of gold.
CanyonGold intends to use a similar exploration methodology and approach to explore their extensive claims. Preliminary rock samples have been collected and initial testing of drainage geochemical samples has occurred. Signs of mineralization, alteration and faulting with similar characteristics to the type of fracturing and alteration seen at the Long Canyon deposit have been discovered on the CanyonGold claims, but to this time have not yet been substantially explored.
CanyonGold plans to execute its Phase Two Exploration Program in Spring/Summer of 2015. This program may include geological mapping, geochemistry and geophysics in the form of Induced Polarization using Resistivity Mode, and selected areas of gravity surveys. This will be followed by selection of diamond drilling targets deploying reverse circulation technology.