January 2011

 

 Link to description on Golden Predator's Website.

The Castle Property, located in Esmeralda County, Nevada, is available for option or purchase from Kinross Gold US. The Castle Peak Project is located approximately 61 kilometers west of Tonopah and seven kilometers north of Nevada State Highway 6.  The Property is comprised of a total of 194 unpatented mining claims located on the southern flank of the Monte Cristo Range and within the historic Gilbert Mining District.  Kinross is the sole owner and locator of 190 of the claims and holds the remaining four claims under a lease agreement.

 

The Gilbert District has produced a total of around 100,000 ounces of gold from several mines in the area since the first rush in 1924. Minor gold, silver, antimony, and mercury has been produced from the Castle Peak Mine in the center of the Kinross property and the nearby McLean (Gold Summit) and Boss (Seabridge) mines have had significant mining and exploration since the early 1970s.  Numerous companies have explored the district including Anaconda, US Borax, FMC,  Felmont, Santa Fe and Texas Gulf. The district  has widespread volcanic-hosted epithermal alteration and associated Au-Ag-As-Sb-Hg mineralization exposed through much of the range.  The Boss Mine produced 32,000 ounces of gold at an average grade of 0.058 opt Au and the adjacent Castle (Seabridge) resource amounts to 20 Mt at an average grade of 0.015 opt Au (308,000 contained ounces Au).  The Mclean mine produced about 10,000 oz and has an inferred resource of 69,000 ounces.

 

Host rocks on the Castle Peak Property consist of lower Miocene rhyolite of the Castle Peak tuff and lower units of the overlying Blair Junction sequence andesite.  Alteration is epithermal, low sulfidation in nature and consists of quartz-adularia veins, fractures, and disseminations within quartz-sericite-pyrite alteration halos with lower grade gold-silver mineralization.  Mineralization has been found to be both vein-hosted and wallrock disseminated and is probably related to electrum associated with pyrite. 

 

The Property hosts several large surface geochemical anomalies that have been defined by rock chip sampling and are anomalous in gold, silver, arsenic, mercury, and antimony.  These anomalies have been drilled in the past two years and found to be associated with at least one shallow low grade gold anomaly of sufficient size and grade to warrant further exploration efforts in the West Castle area. 

 

Kinross has explored the Castle Peak Property from late-2008 through mid-2010.  Kinross collected 769 surface rock chip samples and drilled 35 core and RC holes with a total footage of 23,360 feet, and  conducted geologic mapping.  A limited gravity survey was performed and with complete Bouguer and residual gravity map products.  Aster data analysis was performed on the Gilbert District data set for low and high sulfidation, iron oxide, and silica alteration.

  

The 769 surface geochemical samples were analyzed for gold and 10 trace elements as part of the Inspectorate Labs GENX-10 package.  Select elements and their means from the 769 surface samples include:

 

Au(ppb)           Ag(ppm)          As(ppm)          Hg(ppb)           Sb(ppm)         

579                  3.3                   446                  63,000             177

 

 

Kinross drilled 35 RC on the Castle Peak Property during 2009-2010.  All holes were drilled on an angle, largely testing the northwest striking mineral trend.  Drilling was focused in the Castle, West Castle, and Goldenrod areas, and step-out areas along the southeast mineral trend to the southeast of Castle. 

The central area of West Castle, as defined by drill holes KWC09-1, -2, and -3 and KWC10-01 has been identified as a coherent zone of shallow, low-grade, oxide gold mineralization.   The gold in surface rock chip geochemistry further defines this area as an open-ended zone of significant low grade gold mineralization that warrants further surface sampling, drilling, and petrographic study.  Drilling through post-mineral volcanics in the southern graben extension to the main Castle target intercepted gold mineralization in the bottom 25 feet of KC10-07 in the lower Blair Junction Tuff but did not penetrate deep enough to test the favorable Castle Peak tuff section.  The zone is below 500 feet of post-mineral cover but a new gravity survey and an orientation mobile soil mercury sampling indicate a potential buried target.

DrillHoles.jpg

  

 

Drill Hole

Azimuth

Dip

Total Depth(ft)

Interval

Length

Gold (ppb)

Host Rock

KC09-01

45

-70

800

35-55'

20'

142

Tcp

KC09-02

149

-60

950

845-920'

75'

359

Tcp

KC09-03

275

-60

1000

130-205'

75'

1880

Tb2

KC09-04

245

-55

900

175-215'

40'

301

Tcp

KC09-05

280

-60

800

340-405'

65'

222

Tcp

KC09-06

260

-60

800

340-360'

20'

122

Tcp

KC09-07

101

-60

950

None

KC09-08

235

-60

850

155-185'

30'

370

Tcp

600-615'

15'

446

Tcp

KC09-09

255

-60

545

220-240'

20'

272

Tcp

KC09-10

205

-50

800

330-395

65'

563

Tcp

KC09-11

240

-50

800

65-90'

25'

158

Tcp

570-605'

35'

186

Tcp

KC09-12

217

-50

400

110-125'

15'

164

Tcp

KC09-13

240

-45

800

10-35'

25'

190

Tb2

KC10-01

83

-55

750

5-70'

65'

347

Tb3

KC10-02

90

-55

870

705-730'

25'

440

Tcp

830-865

35'

207

Tcp

KC10-03

250

-55

700

420-455'

35'

206

Tcp

520-580'

60'

471

Tcp

KC10-04

80

-60

950

815-880'

65'

249

Tcp

KC10-05

260

-60

800

None

KC10-06

230

-60

690

575-605'

30'

178

Tb2

625-645'

20'

319

Tb2

KC10-07

225

-60

815

790-815'

25'

297

Tb2

KGR09-01

225

-50

500

None

KGR09-02

215

-50

700

None

KGR09-03

240

-50

700

265-290'

25'

550

Tb1

KGR09-04

355

-50

560

None

KGR09-05

30

-50

345

None

KWC09-01

270

-50

285

0-65'

65'

196

Tcp-Op Contact

KWC09-02

240

-35

400

30-120'

90'

480

Tcp-Op

KWC09-03

315

-45

400

None

KWC09-04

145

-50

550

None

KWC09-05

330

-50

400

None

KWC10-01

72

-60

400

5-70'

65'

347

Tcp-Op Contact

KWC10-02

225

-55

355

None

KWC10-03

90

-55

690

200-220'

20'

218

Tcp

230-285

55'

240

Tcp

325-405'

80'

259

Tcp

KWC10-04

197

-55

655

None

KWC10-05

90

-55

450

None