Summary

The Adelaide project comprises the majority of the Gold Run district, including the historic Crown-Adelaide mine.

Location

The district is located 16 kilometers south of Golconda in Humboldt County, Nevada, along the eastern flank of the Sonoma Range.

Land Status

Newmont controls an area of approximately 12 square kilometers. The property position consists of 135 unpatented lode claims that are 100% owned by Newmont and 75 unpatented lode claims that are leased by Newmont. Holding costs consist of annual claim maintenance fees to BLM and Humboldt County and advance minimum royalty payments under the terms of the lease.

History

Exploration during the last 20 years has been conducted on two distinct targets. Drilling, beginning in the 1980's, discovered disseminated gold within sedimentary rocks beneath Robbers Knob. Widespread drilling has intersected sporadic intercepts > 3.43g/t Au.

The most recent work has focused on banded epithermal quartz veins (Crown-Adelaide and Margarite veins) extending south of Robbers Knob more than 1825 meters. The best intercepts to date include 19.8m of 9.67g/t Au (including 1.5m of 112.8g/t) in ADL-2, 6.1m of 8.71g/t Au (including 1.5m of 26.4g/t Au) in ADL-5 and 6.1m of 4.66g/t Au (including 1.5m of 10.7g/t Au) in ADL-6. Visible gold is common within individual vein intercepts. The vein widths, strike length and textures are impressive but gold appears to be sporadically distributed across the vein widths and along strike.

To the southeast, copper associated with biotite hornfels and minor skarn suggests potential for gold-copper skarn deposits. District rock chip geochemistry shows widespread, anomalous Au-Ag-As-Hg-Sb with both separate and overlapping associations suggesting at least two mineralizing events at Adelaide, perhaps an early Tertiary event and a mid-Miocene event.

Geology

Regionally, Adelaide may occur along the southern extent of the Getchell trend. The project has excellent potential for the discovery of disseminated gold deposits in sedimentary rocks (Cambrian Preble Formation and Ordovician Valmy Formation) and bonanza epithermal gold deposits in banded quartz veins. These rocks are locally folded and faulted along the Black Diamond thrust fault.

Databases

Newmont maintains an extensive database for the Adelaide project.

The Crown pit, looking north.