Summary

The Blue Mountain project is a gold-silver epithermal, hot spring prospect with a large acid-leach, hydrothermal system within Triassic argillites and phyllites. The alteration and mineralogy are very similar to the Hycroft and Rosebud mines.

Location

The project area is located 34 kilometers west of Winnemucca, Humboldt County, Nevada along the western flank of Blue Mountain. The project is 17 kilometers southwest of the Sandman deposits and 50 kilometers northeast of the Hycroft and Rosebud Mines.

Land Status

Newmont controls more than 26 square kilometers of mineral rights through railroad, "checkerboard" private minerals across the area of interest and into the pediment.

History

Nassau Limited discovered anomalous gold in rock chips and staked the public sections of the property in 1982. Since then, the property has been worked by a series of companies including Billiton Minerals, Prime Exploration, Placer Dome, Lac Minerals, Mormex, Blue Desert Mining, Santa Fe and Newmont. Over 120 exploration holes have been drilled on the property defining a non-NI 43-101 compliant resource of 23.3 million tons at 0.51g/t for 349,500 ounces Au, with an average silver to gold ratio of 16:1.

Geology

Blue Mountain is an epithermal hot spring occurrence hosted by the Triassic Auld Lang Syne Group metasedimentary rocks. Gray to black, thin bedded to laminated, noncalcareous, carbonaceous, argillite, locally interbedded with sandstone make up the Triassic Grass Valley Formation. This member of the Auld Lang Syne Group is overlain by gray to green gray, silty to locally sandy phyllite of the Raspberry Formation. Both units are regionally metamorphosed to green schist faces. Mafic and felsic dikes intrude the metasedimentary rocks. The mafic dikes are diabase and trend north-south along structures, while the felsic dikes, primarily reported in drill holes, have limited surface exposure. The primary structures on the property are high angle faults trending north-south, north 50-60 east and north 50-60 west and appear to be basin and range structures. The contact between the Grass Valley Formation and the Raspberry Formation appears to be a thrust fault and is well brecciated. Hydrothermal alteration consists of moderate to strong silicification beneath a tabular zone of acid leach alteration (chalcedony-alunite-kaolinite-native sulfur). The silicified body is up to 120 meters thick. Hydrothermal barite and silicification occur along structures and adjacent wall rock. Geochemically, the system displays strong but sporadic Au, Ag, As, Sb, Hg, Ba, F, TI and Se. Pyrite and marcasite occur with the higher gold and silver values in drill holes. A large area west of the range front is covered by alluvium, gravel and volcaniclastics. Potential exists for shallow, low-grade gold and silver mineralization in acid leach rock, and for epithermal bonanza mineralization along structures. The hydrothermal system is not well explored beneath cover.

Databases

Newmont maintains an extensive database for the Blue Mountain project.