There is no record of any significant modern precious metal exploration except at the Antone Canyon target, where Freeport-McMoran (1983-1985), Royal Standard Minerals with JV partner North Mining Corp. (1996–2000), and Golden Spike/Bullion River Gold/Antone Canyon Mining collectively took 1000 soil samples, completed 19 trenches totaling 5088 meters, and 63 drill holes for a total of 6430 meters (Figure 7) (DeMatties, 2003; Larsen, 1998; Margolis, 2004). The majority of this work focused on finding Carlin-style, sediment-hosted gold deposits in silty limestones (Freeport-McMoran); however subsequent junior companies targeted high grade veins but, facing low gold prices and lack of funding, were never able to expand on their successful trench and drill programs. The last drill hole on the property delivered one of its best intercepts delivered 13.5 meters of 7.6g/t gold (see Table 1). Currently the Antone Canyon Target has a gold in soil anomaly over 1.5 kilometers long that will be the focus of the Company’s exploration efforts for this target. The Company intends to drill step out holes on the highest value intercepts.
The Company’s Phase 1 Exploration Results
For the first time in the history of this metal rich project, the Company has completed an extensive rock and soil survey across the entire the Spanish Moon District, which includes: 1) a 1 ppm Ag (+/-Au) -in-soil anomaly extending from west to east across the property and, 2) results from bedrock, small prospect pits, and the millsite returned values as high as 8520 g/t Ag and 10 g/t Au. Results indicate the existence of three distinct domains of zoned, precious metal mineralization.
Results from the Phase I sampling and mapping program suggest that there are three distinct and strongly mineralized domains at Spanish Moon; the western Barcelona-Van Ness, the central Antone Canyon and the eastern Flower domain (see Figure 3). The western domain appears to be an intrusion related silver and gold system forming the Barcelona-Van Ness target (Figure 8, 9). The central domain may be a low sulfidation and sediment-hosted gold and silver system forming the Antone Canyon target (Figure 10, 11). The newly identified eastern domain could be a low sulfidation epithermal gold system forming the Flower target (Figure 12). These three domains combined make the entire Spanish Moon District prospective for precious metals. At each of these targets, the strike lengths of known or newly discovered precious metal occurrences have been extended by >1 km. The technical team established very prospective Ag grades (<8520 g/t) in the Van Ness target and continued to find high grade Ag (<1590 g/t) and Au (<10 g/t) at the surface in the Barcelona mine and Antone Canyon target areas. Additionally, the Company identified the presence of Au mineralization in the Flower target, a Hg and Sb prospect with no historic sampling for Ag or Au.
Results from an extensive soil survey suggest that silver is anomalous (> 1 ppm Ag) across nearly the entire length of the property where typical Ag background values are 0.2 to 0.3 ppm. This silver anomaly occurs within a prospective limestone unit that is capped by a regional thrust fault. The same prospective limestone is the primary host rock to the neighboring historic silver-gold districts of Belmont (>10M oz Ag produced 1868-1887) and Manhattan (>135k oz Au and >50k oz Ag produced 1906-1921). Compartmentalization of the local thrust fault architecture defines the boundaries of the three mineralized domains from west to east.
Barcelona – Van Ness Target
The Barcelona Target is centered on a historical high-grade silver mine that produced approximately 200,000 ounces of silver between 1871 and 1922 at a reported grade ~25 oz/t Ag from quartz veins that overprint skarn mineralization (Hunt, 1936). Significant exposures of lower 15-20 oz/t silver grade, were reported to have been left in the ground due to the high cost of milling and transportation and low silver prices at the time of production (Fletcher, 1907; Hunt, 1909). In addition, field notes from that time indicate five mineralized bodies replacing carbonate units were encountered during the development of a long underground drainage tunnel (Figure 13). The two largest mineralized bodies are the Oriental and Barcelona veins, that have reported true widths of 31 and 26 meters respectively. It was further reported that these mineralized, banded, quartz-sulphide veins extend for at least 1.1 km from the historical mine workings (Hunt, 1936; Hunt, 1909). This geometry suggests the presence of a substantial bulk mineable silver target.
The Van Ness target was historically characterized as a mercury occurrence with little to no reported silver or gold. The historic Van Ness mine reportedly produced 728 flasks of mercury in 1931 (Bailey and Phoenix, 1944). Phase I results at Van Ness indicate there is a higher grade silver occurrence here than previously reported. The Van Ness silver anomaly in rock chips and soils extends approximately 1 km to the east to the Barcelona target.
At the historic Barcelona mine area, soil and rock results extend the area of identified silver mineralization to over >1 km west to the Van Ness area, creating a high-grade silver domain in the western third of Spanish Moon. The highest Ag-in-rock sample, came from a small dump within the Van Ness area, a location not previously associated with precious metals. This sample also contains 5.7% Cu, 3.6% lead (Pb), and 2.4% zinc (Zn). This discovery indicates that high-grade silver mineralization could extend over 1 km from the historic Barcelona mine to the Van Ness workings. Additional samples from small mine dumps and prospect pits at Barcelona delivered assays up to 1590 and 1310 g/t Ag. Rocks from the mouth of a collapsed drainage tunnel and a former mill site at Barcelona delivered values of 884, 688, and 230 g/t Ag. Outcrops and decline rock samples in and surrounding the historic mine portals delivered silver values up to 235 g/t Ag over a 0.3 m width, 177 g/t over a 2.7 m width and 141 g/t Ag over a 1.2 m width.
Antone Canyon Target
The Antone Canyon Target is characterized by a weakly metamorphosed limestone that hosts high grade epithermal style gold mineralization that has been encountered in drilling, trenching, and rock chip sampling programs (DeMatties, 2003). The last hole drilled on the target encountered the best intercept: 13.5 m of 7.6 g/t Au (Margolis, 2004). No stepout holes have been drilled from this intercept since that time.
Phase I results have tripled the strike length of Au mineralization identified at Antone Canyon; extending the occurrence by 1 km to the west of known mineralization. In the eastern portion of Antone Canyon previous operators drilled holes with intercepts up to 13.5 m @7.6 g/t Au. Rock samples from small prospect pits and outcrops delivered assays up to 10.2, 9.9, and 8.0 g/t Au. The newly identified western two thirds of the Antone Canyon gold anomaly has never before been drill tested and mapping suggests mineralization is focused immediately beneath the thrust fault contact. Reconnaissance mapping efforts further suggest subsidiary normal faults may influence smaller pods of mineralization internal to the three primary domains. The next steps at Antone Canyon include a geophysical survey to define new drill targets. In addition, relogging legacy core from Antone Canyon will offer insight as to whether mineralization has a structural or stratigraphic control.
At the eastern end of the district, the Flower target was historically characterized by a mercury and antimony occurrence that may represent the higher levels of an epithermal system and may be related to an underlying precious metals system. This target had never been explored for precious metals despite mercury being a known indicator of epithermal gold mineralization.
Results of the soil survey in the Flower domain identified two large arsenic (+Sb, Thallium, Hg, Lanthanum, +/-Pb) anomalies covering approximately a 1 km2 in the west and ~0.5 km2 in the east. These soil anomalies are accompanied by Au-in-rock samples of up to 1.2 g/t Au. Reconnaissance mapping suggests the anomalous geochemistry may correspond with steeply dipping normal faults associated with a regional fault that forms the eastern margin of an adjacent caldera. The next steps at the Flower Target will be to refine the structural framework of this apparent volcanic associated hydrothermal system that may be younger and overprinting than the older intrusion related mineralization immediately to the west at Spanish Moon.
The Company’s Phase 2 Plans
The Company is designing a geophysical survey in conjunction with continued detailed mapping to characterize the links between key structures and mineralization that will aid in defining all types of mineralization across the three domains. The company expects to have all field work and geophysics acquisition done by the second quarter of 2022, and numerous drill ready targets selected for the 2022 drilling season.
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 Corp. strives to maintain the highest industry standards of environmental protection and community engagement at all of its projects.
Eminent Gold Corp. 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 Corp. 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 Gold Corp. has entered into an option agreement (the “Agreement”) with Nevada Select Royalty Inc (“Nevada Select”), a wholly owned subsidiary of Ely Gold Royalties Inc. (TSX-V: ELY, OTC-QX: ELYGF) (“Ely Gold”), whereby the Company will have the option to purchase 100% of Spanish Moon. It has also entered into a lease-option agreement with patent holders who own 87.25% of the contiguous Barcelona. The Company has up to five years to acquire a 100% interest in the Property, totaling approximately 730 hectares, consisting of 70 unpatented claims at Spanish Moon and 2 patented claims at Barcelona, by making cumulative cash payments of USD $1,395,000 and cumulative share payments of 1,250,000 common shares in the capital of the Company.
The Company will have the option to purchase 100% in the following:
- The seventy (70) unpatented claims known as the “Spanish Moon Claims”;
- 87.25% of 2 patented claims known as the “Barcelona Property”; and
certain data in the possession of Ely Gold and Nevada Select on the Closing (the “Existing Data”)
There is a Net Smelter Royalty (NSR) of 3% on the Property (includes a total of 88 unpatented claims of which 70 are owned by Ely and the balance were staked by the Company). The Company may make cumulative payments of US$1.0 million to reduce the royalties payable on the entirety of the Property to 2%. The Company is responsible for Property holding costs during the duration of the Agreement.
For the Ely Agreement, the total purchase price of USD $750,000 and 750,000 Navy Shares are payable as follows:
- USD$50,000 Cash Payment upon entering into the Ely Agreement (for the purposes of this paragraph, the “Effective Date”);
- The issue of 150,000 Navy Shares within 5 business days of the receipt of TSX Venture Exchange (“TSXV”) approval for the agreement.
- USD$75,000 Cash Payment and 150,000 Navy Shares on or before the first anniversary of the Effective Date;
- USD$125,000 Cash Payment and 200,000 Navy Shares on or before the second anniversary of the Effective Date;
- USD$250,000 Cash Payment and 250,000 Navy Shares on or before the third anniversary of the Effective Date; and
- USD$250,000 Cash Payment on or before the fourth anniversary of the Effective Date, upon which the Option Exercise will be complete.
For the Barcelona Agreement, the total purchase price of USD $645,000 and 500,000 Navy Shares are payable as follows:
- USD$20,000 Cash Payment upon entering into the Barcelona Agreement (for the purpose of this paragraph, the “Effective Date”);
- The issue of 50,000 Navy Shares within 5 business days of the receipt of TSXV approval for the Barcelona Agreement.
- USD$25,000 Cash Payment and 50,000 Navy Shares on or before the first anniversary of the Effective Date;
- USD$25,000 Cash Payment and 100,000 Navy Shares on or before the second anniversary of the Effective Date;
- USD$25,000 Cash Payment and 100,000 Navy Shares on or before the third anniversary of the Effective Date; and
- USD$25,000 Cash Payment and 200,000 Navy Shares on or before the fourth anniversary of the Effective Date;
- USD$25,000 Cash Payment on or before the fifth anniversary of the Effective Date;
- USD$500,000 Cash Payment on or before the fifth anniversary of the Effective Date, upon which the Option Exercise will be complete.