"These results offer additional data that both confirms the presence of these metals and contributes toward the planning of the next phase of exploration on the Project," noted Mason Douglas, the Company's President and Chief Executive Officer.
The next round of exploration on the Project will include both geophysical surveys and drilling. The geophysical survey, has commenced, which consists of a ground magnetic survey that will extend to the south from the previously conducted magnetic survey. When completed, the survey will include 18 east-west lines, each approximately 3,450 meters in length and spaced at 150 meter intervals for a total of approximately 62.1 line-km of survey coverage. Following this work, an extensive multi-phase reverse circulation drill program is also planned for 2013 to commence in late spring. The Company has budgeted for 6,100 m (20,000 feet) of drilling over the entire year contingent upon the result of the geophysics and financing.
The Project's claims have been explored by other companies since the late 1960's. Large companies including ISO Nevada, Echo Bay and Anglo Gold have all participated in exploring portions of the ground. Notably, during the mid to late 1980's N.A. Degerstrom Inc. committed to a small trenching and mining operation where they recovered approximately 1,632 ounces of gold and 1,867 ounces of silver. Below is a brief historical review of the work conducted on the property to date excluding the work of the Company.
|Time Period||Company||Exploration Work Completed|
|1966-1967||Unknown||Surface sampling along with four no name drill holes totaling 2,437 ft. Holes were only assayed for copper and molybdenum. They also completed some induced polarization and resistivity surveys.|
|1969||Phelps Dodge||IP and Mag as well as 5 core holes including a 2,000 ft hole and a 1,250 ft hole.|
|1971||ISO Nevada, Ltd.||Geological mapping and contracted McPhar Geophysics perform induced polarizations and resistivity surveys over the property. Also drilled 11 rotary holes for a total of 4,550 ft, two of which had NX core continuing below the rotary to add 830 ft.|
|1973 - 1974||Pechiney Ugine Kuhlmann Development, Inc.||Detailed magnetic survey, geological survey, and drilled 5 percussion drill holes for a total of 1,938 ft. Focused their work on a magnetic low that occurred under overburden.|
|1984 - 1985||Duval Corporation||Geologic mapping, sampling, and drilled 10 reverse circulation holes for a total of 2,623 ft.|
|1985- 1989||N. A. Degerstrom Inc.||Geologic mapping, sampling, excavated 20,768 ft of dozer trenches, 130 shallow air trac rotary holes, explored and mined the small gossan, vein, skarn type mineralization zones peripheral to the intrusion. Indicates they recovered approx. 1,632 ounces of gold and 1,876 ounces of silver from this operation. In addition to the air trac holes, drilled three reverse circulation angle holes under the pit they had mined and apparently drilled parallel to the mineralized structure.|
|1995||Echo Bay||Ground magnetic survey, geologic mapping, soil geochemical grid and drilled 5 reverse circulation holes for a total of 1,475 ft.|
|1999-2000||Anglo Gold||Ground magnetic and gravity surveys, rock-chip sampling, geologic mapping, and drilled 7 reverse circulation holes for a total of 7,130 ft.|
The Company was also able to acquire an exploration license on three patented claims adjacent to the Project with an option to purchase the claims. The purchase price for these patented claims is $90,000. The Company made one payment of $30,000 on the May 15, 2012 closing date, with the remaining $60,000 due in $30,000 installments on April 30 th of each of the next two years. The seller also retains a 2% net smelter royalty on the patented claims in the event that there is production on the property. Management is pleased with the acquisition of this property interest as it serves as an ideal site location for operations in the event that the Company reaches a point of operational development.About the Kope Scheelite Project The Project consists of 179 mineral claims located in Mineral County, Nevada, approximately 11 miles northeast of the town of Mina. Previous exploration efforts include recent Time Domain Electro-Magnetic ("TDEM") surveys that offered evidence of the presence of conductive structures on the Project with potential mineralization present within a porphyry system.