The Albisu gold project comprises 118 lode mining claims situated approximately 35 km (22 mi) west of McDermitt, Nevada in the Montana Mountains. It is part of the Northern Nevada Epithermal Province, which also includes the Sleeper, Hog Ranch, and Hycroft deposits. Gold and silver mineralization at Albisu is associated with distinctive low-sulfidation features such as weak stockwork sinter veinlets and sinter-flooded tuffs in the northwest part of the project and paleo-hot springs, as evidenced by a large sinter apron, in the southern part of the project. Lithologies are predominantly basalt and rheomorphic felsic tuff, both of which have been hydrothermally brecciated and flooded with low temperature silica.
Regional tectonics during the Miocene in northwestern Nevada and southeastern Oregon resulted in development of the northwest-southeast striking Orovada Rift and the eruption of a widespread and thick sequence of basalts and basaltic-andesites. Toward the end of rifting a completely different series of eruptions began that produced seven peralkaline, high-silica rhyolite calderas, collectively referred to as the McDermitt Volcanic Field. Of particular importance to the Company is the Long Ridge Caldera, which hosts mercury and uranium mineralization along the northeast margin of its ring fracture system. Albisu mineralization occurs on the northwest margin of the Long Ridge Caldera in an area of structural complexity.
The Company completed 12 HQ core holes totaling 3575 meters in the area of the veining and flooding in the northern part of the project in 2008 and 2009. This diamond drilling intercepted wide low grade intercepts, containing scattered narrower zones of higher grade gold, in intensely altered volcanic rocks in every drill hole. ALB-04 intercepted 12 grams of gold over 1.5 metres from 103.7m to 105.2m and 41 metres from 154.0m to 195.1m that averaged 0.66 g/t gold (Press release October 29, 2008). The gold mineralization and associated alteration are characteristic of high level epithermal systems. The large halo of widespread and continuous lower grade gold along with geochemically elevated intervals of silver, arsenic, cobalt, mercury and molybdenum within hydrothermally altered and brecciated volcanic rocks indicates this has been an active and dynamic system.
Drilling to date has been focused in a relatively small area in the northern part of the project area. Due to the amount of widespread alteration and geochemically elevated levels of gold and various pathfinder elements throughout the claim block, the Company believes that further drilling is warranted in 2011, including testing of higher grade mineralized structures at greater depths (500-750m) as well as along strike to the south. A 1500m drill program is currently being permitted with the appropriate government agencies.