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Animas can earn a 51% interest in the Golden Arrow Property by spending $3.5 million in exploration over three years (of which $1 million must be spent by the end of 2010). A joint venture will be formed when Animas has earned its 51% interest. Upon earning its initial interest, Animas may elect to spend a further $4,000,000 to earn an additional 9% interest for a total interest of 60%.
Location and Property.
The Golden Arrow property is located in the Nevada high desert, approximately 40 miles (60 kilometers) east of Tonopah, Nye County. Golden Arrow is on the flank of the Kawich Range and on the eastern margin of Stone Cabin Valley within the Golden Arrow mining district. The property has a number of favorable attributes for exploration of mineral resources: gentle topography, mild climate, available ground water, and close proximity to highways and towns.
History
High-grade gold-quartz veins were discovered at Golden Arrow in 1905 and mined through the 1930's from numerous shafts to 120 meters depth, where the mines encountered water preventing additional development. The property has been explored by a number of companies in subsequent years.
Geologic Setting
Golden Arrow is situated along the northeastern margin of the Walker Lane structural zone and along the western margin of the Kawich volcanic caldera. Walker Lane is a zone of complicated geological features, including complex faulting, igneous intrusion, volcanism, and hydrothermal mineralization resulting from the North American continent colliding with the Pacific tectonic plate. This has created the formation of a great variety of gold, silver and other mineral deposits. The Walker Lane has past production and defined resources of more than 30 million ounces of gold and 400 million ounces of silver. Notable districts include the Comstock Lode, the historic Tonopah and Goldfield districts, and Round Mountain, one of the most significant gold mines in Nevada.
Deposit Geology.
The Golden Arrow district is situated along the western circular fault edge of the Kawich Mountains volcanic center. Bedrock geology is characterized by a thick sequence of volcanic rocks ranging in composition from andesite to rhyolite and including the complex geological features typical of caldera margin settings: volcanic flows, flow-domes, tuffs, lithic tuff breccias, ignimbrites, graben-filling units, lithologic wedges and volcaniclastic maar sediments. In the immediate gold deposit area, the oldest rocks are andesite flows and volcaniclastic rocks. These were intruded by a cluster of rhyolite flow-domes and a large alaskite stock, and are overlain by rhyolite ash-flow tuffs and ignimbrite.
Gold and silver mineralization at Golden Arrow includes mineralization typical of both low-sulfidation quartz-adularia veins and high-sulfidation hot-spring type mineralization. Historic production was realized from discrete high-grade ore shoots within larger fault-controlled quartz-adularia-gold veins in andesite of the volcanic basement. More recent exploration has mainly focused upon definition of large-tonnage disseminated mineralization, with the discovery and delineation of two centers of mineralization -- the Gold Coin and Hidden Hill deposits. The Gold Coin deposit outcrops and extends northwestward from the Confidence Mountain rhyolite flow dome. The Hidden Hill deposit, located approximately 1000 feet (300 meters) northwest from Gold Coin, and is largely hosted in silicified rhyolite-arkose maar sediments deposited in a basin extending away from the rhyolite center. Much of the higher grade mineralization is spatially associated with pepperite breccia at the margin of latite dikes.
Geochemistry.
Past exploration has included several programs of rock-chip and soil geochemistry. Rock chip geochemistry has defined high concentrations of gold associated with the Confidence Mountain rhyolite flow-dome and extending some 2 kilometers southward along the Page fault system. The most extensive multi-element soil geochemical survey, completed in 2003, covered 8.5 square kilometers. Gold and pathfinder elements highlight the known deposits and point toward several other exploration targets.
Geophysics.
A considerable array of geophysical information has been collected on Golden Arrow over the years, including gravity, ground and aeromagnetic surveys, airborne EM, IP-resistivity, and radiometrics. During 2007, Nevada Sunrise reprocessed most of the original digital geophysical data to complete three-dimensional interpretive geophysical models for the Golden Arrow district. The known deposits occur in distinct geologic settings, with discernable geophysical signatures. The new geophysical models define additional exploration targets for drill testing.
Drilling.
The Golden Arrow property has been drilled by seven companies. The historical archive that has been assembled by Nevada Sunrise includes drill core and cuttings, as well as technical data, for 291 drill holes -- 281 reverse-circulation percussion holes and 10 diamond core holes -- for a total of 148,101 feet (45,141 meters) of drilling. Of this, approximately 90% of the drilling has been concentrated within the Gold Coin and Hidden Hill deposits.
Resources.
Nevada Sunrise contracted Mine Development Associates of Reno Nevada to complete a NI 43-101 compliant Mineral Resource Estimate for the Golden Arrow property in May 2009. The Mineral Resource Estimate was built upon the geologic model of NSGC. Geo-statistical modeling was completed by zones for the Hidden Hill and Gold Coin deposits. This defined the deep high-grade structurally-controlled mineralization from the near-surface horizontal disseminated mineralization. Geologically-defined mineral zones separated the gold and silver resource blocks.
Reds show gold in soils with the highest values
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