Pete's Summit Project
The Pete's Summit Project consists of 68 mineral claims, covering approximately 568 hectares (1,405 acres), located 32 kilometers (20 miles) southwest of Austin, Nevada. Subject to net smelter royalties, Columbus owns a 100% interest in the Property.
In December 2006, Columbus Gold entered into a joint venture agreement with privately held Sniper Resources Limited ("SRL") on the Pete's Summit Property. Under the terms of the Agreement, SRL can earn an initial 51% interest in Pete's Summit by making a combination of cash and share payments to Columbus Gold and by incurring US$2 million in exploration expenditures (collectively on the Linka & Pete's Summit projects) within a five year period.
The Pete's Summit Property covers altered Roberts Mountain Formation exposed in windows beneath the Roberts Mountain Thrust Fault and post-ore Tertiary volcanic rocks and gravels. Major disseminated gold ore bodies at the original Carlin, Cortez, and Pipeline mines are hosted in the Roberts Mountain Formation. These mines yielded the best gold grades and tonnages in the history of Nevada gold production, and hence altered and geochemically anomalous areas in the Roberts Mountain Formation are highly sought-after by the explorationists.
Columbus' grassroots prospecting program has located several hydrothermally altered areas with preliminary sampling containing low gold (to 360 ppb), arsenic (to 1000 ppm), antimony (to 100 ppm), and mercury (to several ppm). The association of these elements in geochemical anomalies hosted in limy sedimentary rocks is considered diagnostic of Carlin-type gold mineralization. Exposure in the anomalous areas is poor with shallow blow sand and gravel cover obscuring the rocks below and making sampling difficult. Most of Columbus' samples are of float. The anomalous areas have dimensions up to several thousand feet, and are large enough to host sizable ore bodies.
Geochemical sampling in grid fashion is being conducted at Pete's Summit, along with careful geologic mapping. Trenching of the geochemical anomalies and geophysical surveying to locate buried structures will also be employed. It is intended that these programs will yield targets for drill testing.
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