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Dutch Flat Property
The Dutch Flat Property is located in Humboldt County, approximately 30 kilometres (19 miles) northeast of the town of Winnemucca, Nevada. The property lies at the north end of the Battle Mountain Trend. Subject to third party net smelter returns royalties, the Dutch Flat Property is 100% controlled by Columbus Gold.
In July 2006, Columbus Gold entered into an agreement with Piedmont Mining Company, Inc., on the Dutch Flat Property. Under the terms of the agreement, Piedmont can earn an initial 51% interest in Dutch Flat by incurring US$2 million in exploration expenditures over a five year period.
Geology
Dutch Flat geology is dominated by a crudely circular granitic body of Cretaceous age intruding Cambrian sediments. Shales and limy siltstones in the sequence are extensively hornfelsed with quartz veins and veinlets adjacent to the intrusive and along northeast shear and multiple fracture zones.
Past Work
The Dutch Flat claims cover the entire historic Dutch Flat mining district which had modest production of gold from both lode and alluvial sources during the early 1900's. Drilling totaling 4,383 metres (m) (14,381 feet (ft)) in 49 holes, was carried out by Amax and Brican Resources Ltd., in the 1980's. The drilling programs outlined a broad zone of low grade (averaging approximately 0.34 g/t (0.01 opt)) gold mineralization traceable for 1,200 m (4,000 ft), and open in both directions and at depth, along the southeast margin of the Dutch Flat granite.
Surface sampling by Columbus in 2006 returned higher grades up to 34 g/t (1 opt) gold along structures which were not systematically tested or evaluated in previous programs. In 2007, 17 shallow angle holes, totaling approximately 685 m (2,550 ft), were drilled in an east-west fence extending approximately 388 m (1,275 ft) across part of a previously drilled zone on the property with the objective of confirming the drilling results obtained by AMAX Gold in the late 1980's. Gold grades of 0.34 g/t (0.01 opt) gold or better were intersected in 11 of the 17 holes over intervals ranging from 1.5 m to 12.2 m (5 to 40 ft). A nugget effect was observed in 4 of the holes. The two best holes encountered 7.62 m (25 ft) of 0.44 g/t (0.013 opt) gold, including 1.5 m (5 ft) of 1.1 g/t (0.032 opt) gold, and 3 m (10 ft) of 1.9 g/t (0.055 opt), including 1.5 m (5 ft) of 5.41 g/t (0.102 opt) gold.
In 2008, a Phase II, 1,829 m (6,000 ft) reverse circulation drilling program was completed. The program consisted of a second fence of shallow angles holes to offset the fence holes drilled in 2007, and up to eight deeper holes to test the vein zones at greater dept and the possibility of a hidden gold skarn at the margin of the intrusive.
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