AuH Project, Montana

The AuH project (Gold Hill) is comprised of 3 unpatented mining claims covering a total of 60 acres adjacent to three patented claims.  It is located within National Forest lands approximately 20 miles south of Butte, Montana.  This project represents an advanced exploration property with approximately 100,000 ounces of gold resource defined by 20 of the 35 holes drilled.

The project area encompasses Proterozoic Helena and Spokane Formations intruded by probable Tertiary age granodiorite.  Gold mineralization is mainly hosted within the sheared and iron rich granodiorite which contains some quartz veining.  Adjacent sediments are altered, containing < 0.03 opt gold.  High grade gold values to +1 ounce per ton have been found in old workings and within drill holes.  Future work should target the sediment-intrusive contact based on location of the better grades in drill holes.

Historic work in the area was initiated in the early 1900’s when production was accrued from several short shafts and a production adit.  No records are available for the production figures, but probably ranged from 5,000 to 10,000 ounces of high-grade gold based on the amount of dumps and workings.  Westgold drilled 35 holes in the property from 1988 to 1990.  This work identified a small resource of approximately 1.1 million tons grading 0.092 oz/ton based on reports by Westgold and others.  Most of the holes were vertical and shallow.  Several holes intersected gold values of +0.5 opt or better over five to ten feet thickness.  The resource area is drilled on +100 feet centers with nearby holes spaced over 500 feet apart.  Given the spacing, additional infill holes are necessary to provide assurance of continuity and grade.  Based on the drill results, The resource is open ended at depth and along strike.

It is believed the property has potential for a high grade resource of 500,000 to 1,000,000 ounces of gold at +0.20 opt.  If the higher grades can be shown to be continuous, then the project may be amenable to open pit and/or underground methods.  A key factor for profitability is whether the ores can be treated by gravity concentration or vat leaching.  Currently, these methods are preferable because of Montana’s environmental concerns over mining and the use of cyanide.

The unpatented claims at the Gold Hill Project are owned by Desert Pacific Exploration, Inc. while the patents will need to be acquired from third parties.  The project is available for reasonable terms.