One of the Region's Most Important Gold TargetsRobertson, recently purchased from Coral Gold by Barrick Gold with a royalty agreement (subject to satisfaction of the outstanding closing conditions),
is an advanced-staged exploration project located along the Battle Mountain/Cortez Gold trend in north-central Nevada and immediately adjacent to the Pipeline gold mine. Over the past 25 years, Coral Gold and its various venture partners spent more than $25 million exploring the claims. This activity has led to the discovery of six mineralized zones: Porphyry, 39A, Gold Pan, Altenburg Hill, Distal and Triplet Gulch.
Here's what makes Robertson one of the regions prime targets for gold exploration:
Current Gold Resource
The property's current NI 43-101 compliant inferred resource estimate at the Robertson Core Claims was calculated in the 2012 PEA Report by independent engineering firm, Beacon Hill Consultants (1988) Ltd. ("Beacon Hill"). Gold ounces were calculated on the basis of US$1,350/oz Au and 70% Au recovery. The 0.0067 ozAu/t cut-off grade utilized to report the resource was derived from a mining cost of US$1.02/ton, process cost of US$5.00/ton and waste cost of US$1.14/ton. The mineral resources in the table below were estimated using the CIM Standards on Mineral Resources and Reserves:
Note: Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineral resource category.
Preliminary Economic Assessment
The 2012 PEA focused on the oxide portions of the Altenburg, Porphyry and Gold Pan zones. The PEA concerned only the relatively shallow portions of these three deposits, Other deposits such as Distal, 39A, Triplet Gulch and a zone to the east of Gold Pan were not part of this study.The results of the evaluation are as follows:
Resources and Mining
Note: The PEA is considered preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration or mineral reserves once economic considerations are applied. Therefore there is no certainty that the production profile concluded in the PEA will be realized.
Two alternatives were reviewed, owner operated and contractor operated. The results shown are after tax. Taxes are considered indicative only.
Results of Economic Analysis at Various Gold Prices (Owner Operated)
Results of Economic Analysis at Various Gold Prices (Contactor Operated)
Note: It should be noted that the economic analysis of this deposit is based upon the expenditures from the time a construction decision is taken and that all development costs to that point have been considered as sunk costs whether they have been expended or not at this time.
The PEA indicated that the Robertson Core Claims is one of merit that warrants further development. The first phase of this development is recommended to be exploration drilling, metallurgical test work, environmental studies and permitting and completion of a prefeasibility study. The cost of this work is estimated to be US$7.9 million as shown below.
Summary of Expenditures to Completion of Prefeasibility
Mr. Garth D. Kirkham, P.Geo., and Mr. Peter Stokes, P.Eng., of Beacon Hill Consultants (1988) Ltd. and Mr. Robert McCusker, Consultant Geologist and Project Manager are Qualified Persons in accordance with NI 43-101. Messrs Kirkham, Stokes and McCusker are independent consultants as defined by NI 43-101.
Deep Drilling Encounters Carlin-Type Structure with Gold
In 2006, a detailed exploration program of gravity surveys, geological mapping, rock chip and grid soil sampling, as well as re-interpretation of existing airborne magnetic was done. Following up on the results, deep drilling in 2007 encountered Carlin-type geochemistry including gold in the important lower plate host rocks for Carlin-type structure beneath the Roberts Mountains thrust fault. The gold intercepts indicate a Carlin-type system in Lower Plate rocks on a western part of the property. Follow-up mapping, rock sampling and infill gravity surveys in 2008 led to identification of a new lower plate target zone that extends from the Coral deep hole 2 km to the south. The West Deep Carlin-type target adds significant discovery potential for a world-class gold deposit on the Robertson Core Claims. The target zone lies north of the Pipeline open pit along a projected mineralized fault and fracture system that controls gold within that deposit. Considerably more drilling on the Robertson West Deep target is warranted.
Robertson lies along the far eastern flank of the Northern Shoshone Mountains in north-central Nevada within the Basin and Range physiographic province of western North America. The region lies at or very near the rifted margin of continental crust that was subjected to periodic thrust faulting starting in Middle Paleozoic and continuing until Late Cretaceous. The most important of these events affecting the region is a complex set of branching, low-angle faults that are part of the Roberts Mountains thrust fault system. The upper plate of this regional structure is a series of thick, complexly faulted dark-gray, fine-grained siliceous sedimentary and lesser submarine volcanic rocks of early to middle Paleozoic age. While siliceous rocks of the upper plate are widespread in the region, carbonate rocks of the lower plate are comparatively rare and are exposed in a few "structural windows" such as the Gold Acres and Cortez windows that contain most of Barrick's gold mines along the Cortez Trend.
At Robertson, the inferred gold resource is hosted in upper plate rocks in close proximity to Tertiary-age (Eocene-Oligocene) intrusive rocks. In Nevada, emplacement of intrusive rocks is often controlled by anticlinal folds and faults developed in the lower plate. Together, these features provide a complex set of pathways for migrating the gold-bearing fluids that ultimately formed the shallow gold resources at Robertson. These same resources might also be considered major "leakage" anomalies above possible gold mineralization hosted in lower plate rocks. This interpretation represents a lower Cortez Hills-type target concept for the Robertson Core Claims in which one or more high-grade gold deposits, mineable from underground, might be discovered.
The Robertson claims host important structural and geochemical anomalies similar to "deep" gold discoveries at Cortez Hills, deep Pipeline and numerous other deposits along the Battle Mountain/Cortez and Carlin Trends. The anomalies include:
Coral's projects are under the supervision of Chris Sampson, P.Eng, BSc, ARSM Coral Gold VP and Director, who is a qualified person within the context of National Instrument 43-101. Mr. Sampson has reviewed and approved the technical data herein.
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