Summary

The South Monitor project is a high level, low sulfidation epithermal prospect with a large area of alteration along the margin of the Hannipah caldera. Several zones of low-grade gold mineralization has been partially drill tested by various operators over the last 30 years. Potential remains for bulk-tonnage, open pit resources as well as higher grade, underground vein type deposits at depth.

Location

The project area is located approximately 40 kilometers east of Tonopah, Nevada in the southernmost portion of the Monitor Range. The area is located just south of Highway 6 and is accessed by the paved portion of the turn off to the Nevada test site. There are numerous existing gravel roads providing good access across the property.

Land Status

Newmont owns 80 unpatented lode mining claims located on BLM administered land.

History

Small, historic prospects record early exploration on the property but it was not until the recently that serious exploration activities were undertaken. Numerous companies explored the area from the 1980’s to the present looking for large, bulk tonnage deposits similar to the Round Mountain mine to the north. The last round of drilling was completed by Newmont in 2012.

Geology

The area is underlain by three 22 MA Tertiary rhyolitic ash flow tuff units. There are also several units consisting of basalt flows, dacitic domes and intracaldera (?), volcaniclastic sediments and possible sinter. Numerous post mineral structural trends exist in the area but the dominant feature is a large circular topographic low suggesting a potential caldera margin. There are also several breccia bodies interpreted to be volcanic vent and/or volcanic explosion breccias. These breccias are pervasively silicified with quartz-adularia alteration and contain thick zones of anomalous to ore-grade gold mineralization which were targeted during recent exploration. Widespread argillic alteration and propylitic alteration is also present. No high-grade, banded veins have been identified to date, however the nature of the silicification indicates the system is very high level. Deeper exploration has not been systematically undertaken. The highest grade, near surface mineralization includes 35m of 3.84g/t Au between 86.9 and 121.9m in drill hole A-6

Databases

Newmont maintains an extensive database for the South Monitor project.

Dome complex (skyline) which is the source of the dome collapse breccia with silicified dome collapse breccia (orange and pink in center) sitting on silicified white tuff (foreground).

Silicified and stratified dome collapse breccia within the central project area, looking northwest.