Projects - Northern Extension

Northern Extension Historic Resource

CMI_NorthernExtension
Mineralization related to the Silver City fault zone does not terminate in the immediate densely drilled Lucerne and Billie the Kid area. On the contrary, the historic Justice, Keystone, and New York mines are just to the north and are reported to have been mining the same zone. The density of the underground workings in this area is similar to that in the Lucerne and Billie the Kid portion of the structure. Preliminary geologic mapping indicates that the Justice and Keystone open cuts were made on the outcrop of what the company identifies as the Billie the Kid fault. The company has data from 69 historic drill holes, drilled in the Northern Extension area. A number of these holes were used in a Northern Extension Historic Resource estimation.

The company has inventoried a number of “Historic Resources” through the review of technical reports written by previous mine operators in the Northern Extension area. The Historic Resource estimate cannot be relied upon; however, it provides a reasonable expectation of potential mineralization since mineralized outcrops, underground workings, and past drilling confirm the existence of mineralization. Table 0.1 shows the Northern Extension Historic Resource.

Table 0.1

Northern Extension Historic Resource

Description

Historic Resource

Tons

Au

(opt)

Ag

(opt)

Overman Pit

(Remaining Mineralization on West Side of Pit)

70,000

0.080

1.400

Tailings from Caledonia/Overman Mill

30,000

0.020

0.400

HOM/UMC Tailings Impoundment from

Con-Imperial and Loring Pits (1978-1984)

1,350,000

0.030

0.500

Gold Hill Pit

(UMC 1985 Exploration Summary)

726,000

0.067

2.348

Con Imperial Underground
(UMC 1985 Exploration Summary)

235,000

0.140

4.550

Yellow Jacket Dump

(UMC 1985 Exploration Summary)

38,000

0.045

1.140

Gold Hill Dump

(UMC 1985 Exploration Summary)

6,250

0.069

2.060

 

 

 

 

Total

2,455,250 

0.053 

1.472

Northern Extension Exploration Potential

The northerly extension of mineralization beyond the Lucerne/Billie the Kid area has an estimated strike length of 2,700 feet. A portion of this extension is included in the company’s block model. This Inferred Resource is already included within the Inferred Resource category. Beyond the limits of the block model, The company has proposed an exploration potential with as much as 19,000,000 tons with an average resource grade similar to already established resources. This mathematical calculation is based upon the resource of 9,135 tons per strike-length-foot over the densely drilled Lucerne and Billie the Kid areas. It should be noted that this assessment is purely conceptual in nature; that there has been insufficient exploration to define a mineral resource; and that it is uncertain if further exploration will indeed result in a mineral resource. However, it provides a reasonable expectation of potential mineralization since mineralized outcrops, underground workings, and past drilling confirm the existence of mineralization.