The Overland Pass Property is located approximately 90 km (55 miles) south of Elko, Nevada in White Pine County. The property is approximately 6.5 km (4 miles) north of Barrick Gold's Bald Mountain gold mine, on the southern extension of the Carlin Trend. Subject to underlying royalties the project is 100% controlled by Columbus Gold. Sniper Resources can earn an initial 51% interest in Overland Pass by incurring US$2 million in exploration expenditures.
The overall geological setting at Overland Pass is very similar to that of the Alligator Ridge and Rain gold deposits, both of which produced in excess of one million ounces of gold. Alligator Ridge is approximately 18 km (11 miles) south of Overland Pass.
Sampling at Overland Pass has yielded gold from silicified zones and breccia in the Pilot Shale and Joana Limestone. The favorable Pilot/Joana stratigraphic sequence is present for approximately 3 km (2 miles) of strike length on the claim block. Gold values range from anomalous to 15.5 g/t (0.45 opt) gold in surface sampling, with nine samples exceeding 3 g/t (0.10 opt) gold.
Limited historical drilling on the claims by Santa Fe and Western States Minerals was concentrated in three areas on the eastern portion of the claim block, and yielded values up to 5 m (15 feet) of 1 g/t (0.03 opt) gold, with anomalous gold in most of the drill holes.
Prior to joint-venturing the project to Sniper Resources, Columbus Gold completed geologic mapping and sampling. Sniper carried out a drill program in 2006/07 to test several previously untested, northerly structural zones cutting favorable rocks and demonstrated to be gold-bearing from sampling, and to test the completely untested western half of the claim block where geologic mapping and sampling indicate very favorable conditions for gold deposition.
The reverse-circulation program totaled 2,222 m (7,290 ft) and was comprised of 13 wide-spread, vertical and angle holes. Anomalous values of gold were present in most of the holes, with the best-mineralized holes being OP-6 and OP-10. OP-6 encountered 6.1 m (20 feet) of 0.38 g/t (0.011 opt) gold at depths of between 45.7-51.8 m (150-170 ft), within a 15.2 m (50 ft) zone averaging 0.27 g/t (0.008 opt) gold. Hole OP-10 was drilled from the same collar, but at a 30 degree difference in azimuth, and encountered 3.05 m (10 ft) at 1.37 g/t (0.040 opt) gold at a depth of between 62.5-65.5 m (205-215 ft), within a 16.8 m (55 ft) zone that averaged 0.51 g/t (0.015 opt) gold. Oxidation was extensive, suggesting favorable metallurgical characteristics. The mineralized zone appears to have been truncated by a faulted contact which suggests the zone may be thicker than drilled.
In January 2012, partner, Sniper Resources completed a Phase II RC drilling program that comprised of 18 drill holes from 14 drill sites, with a total drilled footage of approximately 2,225.04 meters (7,300 feet). The drill program was designed to offset known oxide mineralization encountered in Sniper's 2006/2007 drilling to test undrilled surface geochemical anomalies, and to evaluate favourable host stratigraphic horizons at shallow depth from surface in several different areas. Results from 3 reported drill holes suggest continuity of stratigraphically controlled mineralization between the area of 2 Sniper holes and earlier drilling several hundred feet to the west, and widen the mineralized zone's footprint to approximately 400 feet. Results are still pending for 2 holes.
For detailed results from the Phase II drilling program, please see Sniper release dated February 22, 2012 which is available on their website at www.sniperresources.com.
For exploration work done by Columbus Gold, Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101 who has reviewed and approved the technical content of this project description. Mr. Wallace is the President of Columbus Gold and the principal of Cordilleran Exploration Company ("Cordex"), which is conducting exploration and project generation activities for Columbus Gold on an exclusive basis.
Scientific and technical information contained in this section pertaining to work conducted by or on behalf of Sniper has been reviewed and approved by Douglas H. McGibbon, a director and the Vice-President, Exploration of Sniper, who Sniper has reported to be a "qualified person" within the meaning of National Instrument 43-101.