Nevada Gold Exploration - Independence Gold Project

 

FRA:6NNA

 

Independence Project

Commodity:

Gold and Silver

Size:

640 acres

Location:

24 miles southwest of Battle Mountain, Nevada

Target Types:
Shallow low sulphidation epithermal, deeper Carlin gold skarn

PROJECT Highlights

*Golden Independence cautions investors the preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

High Grade Discovery

Phase I resource expansion drilling included the high grade near surface discovery in hole AGEI-32 which returned 9.1 g/t gold and 25.2 g/t silver over 80 feet outside of the known mineralized oxide zone.

All drill intervals have not been corrected to true width as true width is unknown at this time.

Source of exploration information shown in cross section: “Technical Report on the Indpendence Gold Project, Battle Mountain Mining District Lander County, Nevada USA by J. Ashton and C.E. Defilippi dated 2021-Jun-28.”

Project Catalysts

PERMITTING

Geologic Model

Nevada Gold Exploration
Historic Resource Model
Nevada Gold Exploration
Geological Model

Land Package and Permitting

The 640 acre project area is comprised of 14 unpatented BLM claims covering the area of known and prospective mineralization plus 60 millsite claims suitable for project development.

 

The entire 640 acre property lies within the permitted Nevada Gold Mines (Newmont-Barrick JV) Plan of Operations. This allows for an expedited development pathway as a heap-leach operation could be permitted in as little as 18 - 24 months (versus multiple years).

 

Additionally, the Independence Gold project is currently permitted for the drilling of over 160 holes from 80 drill sites.

History

Activity in the Copper Canyon (Battle Mountain) District began in 1866 with the discovery and mining of high-grade silver veins. Gold was discovered in the area in 1912. High-grade copper ores from the Glory Hole mine were produced starting in the 1920s. Mining in the district was sporadic throughout the early part of the twentieth century until Duval Corporation, then a subsidiary of Royal Dutch Shell Minerals, commenced open pit mining of copper in 1966. Duval Corporation changed its name to Battle Mountain Gold Corporation in 1981, when the discovery of large bulk minable gold ores at the Fortitude deposit (2.4M oz Au) shifted primary production in the district from copper to gold.

 

The Independence Mine produced intermittently from 1938 through 1987. Production came from several miles of underground workings developed along a 1,500 ft strike length of the Independence fault zone. Reported historic production by the various operators totalled 750,200 ounces silver and 11,029 ounces gold. The modern history of the Independence property began with the discovery of the surface outcrops in 1937. Past producers include:

  • Wilson (1938 – 1943)
  • Local miner Bonner Cole (1945?)
  • Agricola Minerals (1973)
  • APCO Oil Corporation (1974 – 1975)
  • Silver King Mines Inc. (1976 – 1981)
  • United Mining (1981 – 1985)
  • Harrison Mining (1985 – 1987)

Exploration drilling on the property was first conducted by Union Pacific Minerals Division of the Union Pacific Railroad with two NQ diameter core holes (1973). Subsequent drilling campaigns were completed by APCO Oil Corporation (1974 – 1975), United Mining Corp. (1981 – 1985), Noranda Exploration (1984 – 1987), Battle Mountain Gold Corp. (1988?), Lansdowne Minerals Inc. (1993 – 1994), Teck Corporation (1995 – 1996), Great Basin Gold Corporation (1997), and General Metals Corporation (2007 - 2008). America’s Gold Exploration, Inc. completed the last drill program in 2017/2018.

2021 NI 43-101 Compliant Resource

Table 1: Independence Project – Mineral Resource Estimate


Notes to Mineral Resource Estimate: Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, changes in global gold markets or other relevant issues. The CIM definitions (2014) were followed for classification of Mineral Resources. The quantity and grade of reported inferred Mineral Resources in this estimation are uncertain in nature ‎and there has been insufficient exploration to define these inferred Mineral Resources as ‎indicated Mineral Resource.  It is probable that further exploration drilling will result in upgrading them to the ‎indicated or measured Mineral Resource category. 2. The Mineral Resource Estimate incorporates over 132,000 feet of reverse circulation and core drilling in 246 holes, and outlines both a near surface and a deep skarn resource. The near surface mineralization is primarily based on the reverse circulation drilling, while the deep skarn mineralization is based entirely on core drilling. 3. The resource was prepared by James Ashton, P.E., an independent QP, with an effective date of November 15, 2021.  4. The mineral resources are constrained by an optimized pit and presented at variable diluted gold equivalent breakeven cutoff grades, which represents mineralization that is potentially available for open-pit mining and heap-leach processing.  5. The Deep Skarn mineralization resources were quantified based on deep tabular solids representing potentially underground mineable lenses. 6. Gold equivalent values are a function of metal price and metal recoveries. 7. Rounding may result in apparent discrepancies between tonnes, grade, and contained metal content.

Geology and Mineralization

The Independence project lies in the Battle Mountain Mining District located on the west side of Pumpernickel Ridge in north central Nevada. The regional geology of north central Nevada is defined by episodic tensional deformation, rifting, sedimentation and erosion, followed by wide spread thrusting resulting from compressional deformation. Episodic tensional events followed by compressional events include the Robert Mountains Allochtonon emplaced during the Antler orogeny. The Antler sequence hosts the Golconda Allocthon which was emplaced during the Sonoma orogeny and contains the Havallah Sequence of Mississippian to Permian age rocks, including the Pumpernickel Formation, host for near surface mineralization at the Independence property. Rocks of the Roberts Mountain Allocthon, hosted the adjacent Fortitude deposit and are the principle host for the Phoenix deposit and the Independence Deep Skarn Target. These rocks are structurally overlain by the Mississippian, Pennsylvanian, and Permian Havallah sequence of the Golconda allochthon.

 

The Havallah sequence, which constitutes the upper plate of the Golconda thrust, is a Mississippian, Pennsylvanian, and Permian allochthon consisting of an assemblage of chert, argillite, shale, siltstone, sandstone, conglomerate, limestone, and metavolcanic rocks exposed over much of the western part of the Battle Mountain District. The base of the Havallah sequence is the regionally extensive Golconda thrust, which places the Havallah sequence structurally over the Antler sequence. This structural relationship (the Havallah sequence over the Antler sequence along the Golconda thrust) represents the principal tectonostratigraphic control on the distribution of ore deposits in the Battle Mountain mining district.

 

Two major rock units are exposed at the Independence project, the Paleozoic age Pumpernickel Formation (Havallah Formation) and Tertiary (Eocene) age intrusive rocks of the Independence Stock. Minor dikes in part appear to be contemporaneous with, and in part younger than the Independence Stock. The oldest rocks exposed on the surface of the Property are siliclastic sediments of the upper Pennsylvanian – Permian age Pumpernickel Formation, consisting of interbedded chert, siltstone, and argillite. These units generally strike N5oE with a general dip of 50o to 60o degree westerly. Locally on the surface and within the old underground Independence Mine these sediments are deformed by folding and faulting.

 

There are two targets at the Independence Property. The first is the outcropping and shallow (oxide) chert and highly silicified calcareous siltstone hosted mineralization, a high-level epithermal system believed to have formed as a leakage halo above the deeper gold skarn (sulfide) mineralization. The historic resource includes significant higher grade structure and fracture controlled mineralization. The gold silver mineralization lies along the Wilson Independence Fault Zone, a series of subparallel N5oW striking sub-vertical westerly dipping faults and shear zones. The predominant metal-bearing minerals are oxidation products of the original sulfide minerals: goethite, hematite, cerargerite, argentiferous plumbojarosite, scorodite, along with very fine grained native gold and rare native silver. Oxidation in the shallow deposits is pervasive and ubiquitous to depths of 400 feet (122 metres) below the surface. A mixed sulfide – oxide zone extends for roughly 100 feet (30 metres) below this, and may extend to more than 1000 feet (300 metres) along certain structures and fractures. The main portion of the shallow mineralized body is roughly 3,800 feet (1,160 metres) long.

 

The deeper (sulfide) precious metal mineralization is a classic gold skarn, similar to the original Fortitude skarn (2.5 million ounces of gold at 0.25 opt) mined in the adjacent pit by Battle Mountain Gold, fine gold disseminated through both the Antler Peak limestone and the calcareous units of the underlying Battle Formation units related to the Roberts Mountain Allocthon. The gold was deposited as microscopic grains of free gold on micro fractures and on crystal faces generated through brittle deformation of the Battle Mountain, Edna Mountain and Antler Peak formations. The deeper mineralization, occurring as sub-horizontal “blankets” 5 to 25 feet (0.5 to 7.6 metres) thick and  locally modified by post-mineral faulting, has been encountered in drill holes over an area more than 1,400 feet wide and 3,400 feet long (425 by 1,036 metres) and is open in all directions. Golden Independence Mining Corp. cautions investors the presence of gold mineralization at Fortitude is not necessarily indicative of similar mineralization at Independence.

Exploration

Golden Independence completed Phase II drilling in Q2 2021 targeting the areas near hole AGEI-32 and hole AGEI-47 with the goal of expanding the areas of known mineralization for an update of the NI 43-101 compliant Mineral Resource Estimate (MRE) as part of the PEA. Additional drilling will continue to focus on expansion of the near surface portion of the MRE and may also incorporate testing of the deeper sulphide mineralization. The area of known mineralization remains open to the north, south and at depth.

Exploration Potential

Three distinct deposit types are present at the Independence Property, a shallow near surface epithermal system, a deeper high gold rich skarn system and an intrusive hosted stock work gold-copper porphyry system.

Shallow Oxide Deposit Type

Shallow near surface mineralization at the Independence is best characterized as a high level epithermal system formed as a leakage halo above the deep Independence gold skarn, both related to emplacement of the Eocene age granodiorite porphyry bodies. This deposit type originally consisted of gold – silver rich, polymetallic veins, manto replacements, saddle reef deposits and fracture controlled “stockwork” mineralization occurring along north – south striking faults structures and detachments in the Pumpernickel Formation of the Golconda Allocthon. Subsequent intense surface oxidation has resulted in near total oxidation of all primary sulfides within 400 feet of the surface.

 

Extensive areas of low-grade fracture controlled “halo’s” form a mineralized pseudo stock work surrounding the higher grade cores historically mined at the Independence. Mineralization is localized along these north striking structural zones in and near the thick bedded to semi massive chert units where competency contrast of the massive cherts and intercalated shale and chert zones occurring above and below, resulted in substantial fracturing, developing open spaces available for fluid flow. Ponding of ascending fluids below the ductile siltstone unit resulted in a broad mineralized zone containing local chutes of bonanza grade gold and silver mineralization.

 

Additional structural enhancement and wide spread fracturing occurs where the north striking mineralized structures intersect a series of pre-existing northwest striking structures resulting in increased permeability and ground preparation in the brittle cherts. Such “triple point” intersections control the highest grade mineralization in the historic Independence mine.

 

Oxidation in the shallow deposits is pervasive and ubiquitous to depths of 400 feet below the surface. A mixed sulfide – oxide zone extends for roughly 100 feet below this, and may extend to more than 1000 feet along structures and fractures which permit the circulation of oxygen laden meteoric waters.

 

Surface evidence suggests additional epithermal targets may exist in high angle faults which penetrate the surface from the Independence Skarn, supported by scattered prospect pits and a few highly anomalous surface rock samples. To date there has been no systematic exploration of these possible targets on the property.

Deep Gold Skarn Deposit Type

The Independence Deep Gold Skarn target is actually a skarn hosted gold system where the principal control is deposition of microscopic free gold on very late stage open fractures. The skarn system is well developed in the permeable and carbonate rich portions of the Battle Mountain, Antler Peak and Edna Mountain formations of Roberts Antler Sequence in the lower portion of the Roberts Mountain Allocthon. Retro grade skarn alteration is wide spread in the deep gold skarn. Thin and polished section studies indicate that gold mineralization is the last mineralizing event to occur and that gold occurs as minute discrete 2 to 20 microns grains deposited in micro fractures on all mineral grains. Importantly the gold in the skarn system appears to be independent of sulfide mineralization.

Gold-Copper Porphyry Target

The Independence Stock, situated at the northern end of the Independence Property hosts stockwork style gold-silver mineralization and exposures in the Sunshine pit, just north of the Property contain disseminated porphyry style gold-copper mineralization. Limited drilling in the Independence stock has returned up to 90 foot intercepts which grade 0.016 opt Au.

Metallurgy

Preliminary metallurgical testing consisted of cyanide-soluble gold and silver analyses of 2,301 drill samples and column-leach and bottle-roll testing on two, 5,000 lb bulk samples collected from surface and the shallow underground workings. These data suggest that the Independence mineralization is amenable to the extraction of gold by cyanidation. Both bottle roll and column leach testing showed recoveries of over 80% for gold and over 20% for silver. 

 

Past ore production from the relatively shallow underground workings was processed either by directly shipping the ore to a smelter or treated in a conventional counter-current decantation (CCD) circuit cyanide mill with gold and silver recovered through a Merrill-Crowe circuit.

Work Program

Golden Independence delivered a PEA in Q4 2021 for the near surface resource portion of the Mineral Resource Estimate (MRE) at the Independence Project. Future RC drilling will focus on expansion of the high grade zones of the near surface portion of the MRE.  The Company also intends to undertake exploratory core drilling of the deeper sulphide skarn mineralization.

References

Technical Report of the Independence Gold and Silver Project, Battle Mountain Mining District, Lander County, Nevada USA. Prepared for Golden Independence by J. Ashton with and effective date of Novemeber 15, 2021.

Cibolan Gold Corporation Form 10K for year end April 30, 2014.

HISTORIC DRILL HIGHLIGHTS​

Highlight Oxide Drill Intersections
NumberFrom_ftTo_ftLength ftAu_g/tonAg_g/ton
GM-563553701510.4413.64
GM-73305385801.8416.03
GM-88952501551.3325.56
GM-127155200459.524.48
including1551752019.837.78
GM-1283104551454.1910.35
including3103302026.4727.00
I-0115145305.07
I-086595308.91
Highlight Sulphide Drill Intersections
Hole_IDFrom_ftTo_ftLength ftAu_g/tonAg_g/ton
IND-0128702955853.436.70
including29202940208.435.70
IND-02315360454.5672.02
including320355355.4586.44
IND-0229652977124.021.06
including2967297476.401.81
IND-0429102975654.602.27
including293029401020.281.77
IND-0430403055157.487.66
IND-0622552295403.830.00
including22552270156.75
WI-00131603175.915.911.620.00
WI-0013297.53302.75.274.06

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