Gilbert South

Location, Infrastructure, and State of Exploration

This Project is comprised of 110 unpatented claims for a total of 890 hectares located 42 km west of Tonopah, Nevada and is accessed by a US highway and 5 miles of county-maintained dirt roads (Figure 1). A well-developed network of historic dirt roads covers most of the property.  

 Gilbert South lies within the Gilbert District, which has a long history of both production and recent resource drilling. Multiple small shafts and adits on the Property are developed along free gold bearing epithermal quartz veins and vein stockworks. (Figure 2 and Figure 3). The Company considers this to be one of the best epithermal prospects in the Walker Lane, which has a total gold endowment of over 53 Moz Au and 350 M oz Ag, all produced from similar epithermal occurrences.

The Property overlies a large, complex landscape of dacite and andesite flow domes and intrusions (Figure 2) that host multiple low sulfidation epithermal vein swarms (Figure 3). These volcanics are commonly altered to clay minerals of illite/smectite, typical of high-level, hot springs related, epithermal systems. High grade gold occurs at the surface in both quartz/chalcedony veins and in hydrothermal breccia:  Grades locally exceed 30g/t Au (Figure 3). Historic RC drilling, which occurred before Orogen’s recent mapping and soil sampling, indicate long runs of low-grade gold mineralization, but this drilling did not test the most prospective surface geochemistry, nor the potential deeper feeder structures, which host bonanza grades in this type of system. Work by geologists specializing in epithermal systems by both the Company and by Orogen, suggest that the types of vein textures and alteration are those that typically occur near the top of these systems (Figure 4).

Overview of the Opportunity

With several historic mines, robust rock chip and soil samples and abundant outcrops of quartz veining, this property is prime for a successful exploration program. The northern portion of the Property hosts the Ohio Camp Target Area, which occurs on the margin of a shallow, prospective pediment. Rock samples return assays of up to 8.6 g/t Au in silicified tuff and rhyolite.  A historic drillhole had an intercept of 33.5 m of 0.34 g/t Au. It has untested gold-in-soil and gold-in-rock anomalies. The Burrow Central Target Area yielded a 30.7 g/t Au rock sample showing visible gold in a crustiform quartz vein. There are no drillholes in the vicinity of this sample.  The Corky Mine Target Area has rock samples up to 16.8 g/t Au taken over a meter (by Company personnel). A drill hole intercept in another location assayed up to 1.5 m of 3.8 g/t. This area hosts numerous closely spaced veins that have never been adequately sampled (see photo in Figure 4). The Company’s technical team will first expand the existing soils grid to cover all prospective areas on the property, along with mapping and collecting rock chip samples.

Regional and Project Geology

Gilbert South exists in the Southern Monte Cristo Range which is comprised of a series of volcanic rocks that were erupted during the formation of the ancestral Cascade volcanic arc (John et al. 2015). Known gold mineralization appears to correlate with multiple pulses of volcanism that range from ca. 22 Ma to 5 Ma. This episodic volcanism is associated with seven gold deposits which, combined, have produced >1 Moz of gold (John et al. 2015).

Volcanism is one key factor involved in the development of a low sulfidation epithermal gold deposit, a second critical factor leading to the development of a prolific gold deposit is an appropriate structural setup, which Gilbert South has. The Monte Cristo Range lies in the greater Walker Lane tectonic region which extends from southeast to northwest across the southwestern portion of Nevada. The Walker Lane is a broad zone of crustal shearing and extension and a region with abundant gold and silver deposits. Strike-slip and high angle extensional faults are common features of Walker Lane tectonism and are often host to gold deposits in the region (John, 2001; John et al., 2015). A large strike-slip fault exists on the southern end of the property. Strike-slip faults are a prime structural feature as they quite often “step” from one location to another. These step overs are ideal points for the crust to pull apart, creating space for gold bearing fluids to infiltrate and form a healthy gold deposit. Such pull-apart basins have formed deposits such as the Comstock Lode (~300 km to the NNW) (Berger et al., 2003) and Fruta Del Norte in Ecuador (Leary et al., 2016). It is within the extensional openings formed as the crust pulls apart that mineralized quartz veins and stockwork veining typically form, a feature observed at the property.  

As a whole, Gilbert South contains all of the features the technical team would identify as integral to discovering a large low sulfidation epithermal vein gold deposit; favourable structural setting, volcanism active during extensional faulting, and the degree of erosion has not carried away the deeper gold hosting portion of the system.  The Company is excited about the exploration possibilites at this property.

Exploration Plans

The Company plans to initiate exploration at Gilbert South with an expanded soil grid to fill in around the historic soils completed in order to locate any trends in signature geochemistry. In addition, geologic mapping and rock chip sampling will provide a solid understanding of the project and potential outside of the known mine locations.  This first phase of exploration is expected to be complete by the end of the third quarter of 2021. After the initial phase of ground work by The Company’s technical team, a geophysical survey of the project is planned in order to better interpret the potential depth to the gold hosting zone of the deposit.

Communities and the Environment

The pursuit of environmentally friendly and socially responsible mineral exploration and potential development guides the efforts and activities of Eminent Gold. Eminent Gold and our partners understand that the broad societal benefits exploration and mining can bring, but only when the risks and hazards of disturbing the environment are managed through careful and thoughtful implementation of sustainable practices. Eminent Gold strives to maintain the highest industry standards of environmental protection and community engagement at all of its projects. 

Eminent Gold believes that sustainability includes pursuit of three mutually reinforcing pillars: environmental and cultural heritage protection; social and community development; and economic growth and opportunity. Eminent Gold assesses the environmental, social and financial benefits and risks of all our business decisions and believes this commitment to sustainability generates value and benefits for local communities and shareholders alike.

Ownership and Agreements

Eminent has entered into an option agreement (the “Option Agreement”) with Orogen Royalties Inc. (“Orogen”), whereby the Company acquired the Option to purchase 100% of Gilbert South. The Company has up to five years to acquire a 100% interest in the 110 unpatented claims (890 hectares), by making cumulative cash payments of USD $875,000 (collectively, the “Cash Payments”), cumulative share payments of 500,000 common shares (“Shares”) in the capital of the Company (collectively, the “Share Payments”), and a total of USD $100,000 in expenditures during the option period.

The Agreement

In accordance with the terms and conditions of the Option Agreement, in order to exercise the Option and acquire the Property the Company must make the Cash Payments and Share Payments in accordance with the following schedule:

(a)  USD $25,000 and 50,000 Shares on June 23, 2021 (the “Effective Date”);

(b)  USD $50,000 and 100,000 Shares on or before the first anniversary of the Effective Date;

(c)  USD $100,000 and 150,000 Shares on or before the second anniversary of the Effective Date;

(d)  USD $100,000 and 200,000 Shares on or before the third anniversary of the Effective Date;

(e)  USD $100,000 on or before the fourth anniversary of the Effective Date; and

(f)  USD $500,000 on or before the fifth anniversary of the Effective Date.

Additionally, the Company must incur an aggregate of USD $100,000 in expenditures on the Property.

The Property is comprised of three different claim blocks: (i) 2 unpatented claims known as the “Nevada Select Claims”, (ii) 27 unpatented claims known as the “GL Claims”, and (iii) 81 unpatented claims known as the “Timberline Claims”. The Timberline Claims are currently subject to a 3% Net Smelter Return royalty and the Nevada Select Claims are currently subject to a 2% Net Smelter Return royalty. Upon exercising the Option, the Company will grant Orogen a 2% Net Smelter Return royalty on the GL Claims (the “GL Royalty”). The Company shall have the option and right to repurchase one percent (1%) of the GL Royalty for $1,000,000, thus reducing the GL Royalty to one percent (1%) of all products from the GL Claims. The Company is responsible for Property holding costs during the duration of the Option Agreement.

References

Berger, B. R., Tingley, J. V., and Drew, L. J., 2003, Structural localization and origin of compartmentalized fluid flow, Comstock Lode, Virginia City, Nevada: Economic Geology, v. 98, no. 2, p. 387-408.

John, D. A., 2001, Miocene and early Pliocene epithermal gold-silver deposits in the northern Great Basin, western United States: Characteristics, distribution, and relationship to magmatism: Economic Geology, v. 96, no. 8, p. 1827-1853.

John, D.A., du Bray, E.A., Henry, C.D., and Vikre, P.G., 2015, Cenozoic Magmatism and Epithermal Gold-Silver Deposits of the Southern Ancestral Cascade Arc, Western Nevada and Eastern California in Pennell, W.M., and Garside, L.J. (eds.) New Concepts and Discoveries, Geological Society of Nevada, Reno, Nevada.

Leary, S., Sillitoe, R. H., Stewart, P. W., Roa, K. J., and Nicolson, B. E., 2016, Discovery, geology, and origin of the Fruta del Norte epithermal gold-silver deposit, southeastern Ecuador: Economic Geology, v. 111, no. 5, p. 1043-1072.