The Jersey Valley property was acquired in October of 2019 from a private Nevada company under a 15-year lease. The Company is obliged to make yearly lease payments, totalling USD 85,000 in the first three years, and has the right to buy out the property at any time, with the vendor retaining a royalty. There are no yearly work commitments.
Immediately after signing the lease agreement, the Company opted to stake new claims to add to the optioned property. Jersey Valley is now approximately 265 hectares in size, and it covers an area of 2.4 km by 1 to 1.4 km. The additional claims cover the strike extension of the favourable geology, as well as all known geophysical targets.
The Jersey Valley property has all of the attributes of an epithermal precious metal system, marked by favourable geology and geochemistry, and an essentially untested geophysical anomaly thought to mark a widespread area of intense alteration. Widespread drilling by past operators intersected anomalous gold and silver values but is thought to have been too shallow in nature.
Jersey Valley lies within the prolific Battle Mountain trend of Nevada, which has in excess of 50 million ounces of gold production. The Property lies in close proximity to both the Phoenix/Fortitude mine complex (approximately 14 Moz gold plus significant Ag and Cu past production and a proposed mine life to 2063) and to the Cove/McCoy Mine (3.4 Moz gold and 110 Moz Ag past production) *. The Jersey Valley property has a well-maintained sealed road running through it, which provides access to a 15 MW geothermal power plant located on the border of the claim group.
Past work at the Jersey Valley property has demonstrated the existence of a preserved epithermal gold system, marked by an outcropping sinter zone surrounded by an area of alluvial cover. The area of the sinter is underlain by an intense magnetic low, thought to define a large area of alteration. Previous geochemical surveys over this area outline high antimony, arsenic, mercury and silver values typical of the geochemical signature of epithermal mineral targets.
Widespread shallow drilling of the magnetic low by past operators intersected volcaniclastic and sedimentary rocks containing anomalous gold and silver values in almost every drill hole, with values increasing at the ends of the holes. One drill hole ended in 245 feet of pyritic, silicified sediments that assayed 265 ppb Au and 3.28 g/t Ag. Most of the drilling appears to have been too shallow to effectively test the altered rocks below the sinter, and the magnetic anomaly remains essentially untested.
A related target exists nearby, where the volcanics and sediments are bordered by two prominent intrusive stocks. The contact zone is filled with silicified epithermal breccia and decalcified limestone carrying anomalous precious metal values. Selected rock chip grab sampling shows widespread precious metal mineralization adjacent to both stocks, with values up to 5.8 g/t Au and 114 g/t Ag (however, the reader is cautioned that these grades are not necessarily representative of the mineralization hosted on the property). A previous drill hole through the breccia intersected 0.59 g/t Au over 40 ft, including 2 g/t Au over 2 ft.
* information compiled from Newmont Mines and Premier Gold Mines websites. The reader is cautioned that mineralization hosted on nearby properties, is not necessarily indicative of mineralization that may be present at Jersey Valley.