This ongoing program comprises underground surveying, mapping and sampling of approximately 8,000 meters of underground workings and 300 mine entrances within an area of about 1,500 by 1,000 meters in the Pamlico Ridge area. Having access to these extensive workings provides a unique opportunity in that the channel samples provide data that is of a higher quality than that obtained by drilling, at a fraction of the cost. Only about one thirtieth of the area covered by the old mines has been drill-tested and the information obtained from the tunnels will be an important facet of planning upcoming drilling programs.
5690 Level – Historic Good Hope Mine
Underground channel sampling from the 5690 foot level exposed part of the mineralized zone and yielded a weighted average of 13.89 grams gold per metric tonne (g/t Au) and 71.19 grams silver per metric tonne (g/t Ag) over 40 meters. Including the adjacent footwall and hangingwall samples, which are also mineralized, the same 40 meters averaged 4.96 g/t Au and 42.24 g/t Ag and the zone still open along strike and down dip. The Good Hope Mine lies approximately 850 meters southeast of the Merritt Decline along the general trend of Pamlico Ridge.
The Good Hope mineralization, like that found in the Pamlico Mine and the Merritt Area, is intensely oxidized. The silver to gold ratio (Ag:Au) of 7.9 to 1 is, however, much higher in the Good Hope samples than in the Pamlico Mine and the Merritt Area, where it averages roughly 1 to 10. The 5690 level Ag:Au ratio is more typical of gold deposits throughout the Basin and Range province and indicates a potentially important zonation within this extensive mineralizing system.
Twenty-seven detailed channel and panel samples were taken from the 5690 level and range in grade from 0.05 to 41.20 g/t Au and 6.00 to 244.67 g/t Ag. The sampling tested an undulatory, anastomosing set of highly mineralized structures that are a subset of a much larger, similar structural package that strikes dominantly EW with shallow to moderate dips to the south. Reconnaissance of other underground workings on this set of structures indicates that the true thickness of this package may be greater than 50 meters with individual structures up to 10 meters in thickness. Work to date has also traced similar mineralized structural zones with nearly identical attitudes in artisanal mine workings extending easterly from the Good Hope mine for at least 1.7 kilometers across the Pamlico property.
Channel sampling from the 5471 foot level of the Pamlico Mine has returned a composite interval averaging 1.26 grams gold per metric tonne (g/t Au) over 41.1 meters. This area of sampling lies approximately 280 meters southeast of the Merritt Area where the bulk of the Company’s drilling to date has been conducted.
The channel samples within the 5471 level range from 0.33 to 1.52 meters, average 1.1 meters in length, with grades ranging from 0.06 to 8.20 g/t Au. All samples consist of intensely oxidized and fractured lithic tuff with no visible remnant sulfides and no apparent silicification, which is typical of the gold mineralization at Pamlico.
Preliminary channel sampling from the 5446 foot level, approximately 190 meters to the northwest of the 5471 level sampling and 150 meters south of the Merritt Area has returned multiple channel samples ranging from 0.5 to 23.8 g/t Au.