The Utah Clipper Property is located directly adjacent to Barrick Gold's multi-million ounce Pipeline-Gold Acres gold mine complex, in the Cortez-Pipeline sector of the Battle Mountain Gold Trend, Nevada. The Cortez-Pipeline sector has past production plus reserves totaling more than 26 million ounces of gold.
The Pipeline and Gold Acres mines are operated by Barrick Gold. Barrick also owns the nearby Cortez Hills gold deposit discovered in 2003, which hosts reserves of more than 10 million ounces of gold. In September 2011, Barrick also announced significant new discoveries respectively about 6 km (3.7 miles) and 8 km (5 miles) southeast of Cortez Hills, known as Red Hill and Goldrush. An inferred gold resource of 3.5 million ounces has been outlined at Red Hill with mineralization open in all directions and at Goldrush further south, a drill hole intersected 20.5 m grading 27.8 g/t gold (67 ft of 0.81 opt).
Subject to underlying royalties, Columbus Gold controls a 100% interest in Utah Clipper. Navaho can earn an initial 51% interest by completing $3 million in exploration expenditures.
The Utah Clipper Property covers a portion of the Roberts Mountain thrust with metamorphosed lower plate limestone and limey siltstone in the footwall of the thrust.
The principal geologic targets at Utah Clipper are classical "Carlin" or "Pipeline" style bulk mineable, disseminated gold deposits and high grade structurally controlled vein deposits in "lower plate" carbonates.
The surface rock exposures at Utah Clipper are Ordovician and Silurian siliceous shales, cherts, and sandstones in the upper-plate of the Roberts Mountain Thrust Fault. Favorable lower-plate carbonate rocks, are encountered in drilling, and are interpreted as the Devonian Wenban and Silurian Roberts Mountains Formations. Both these carbonate formations are known to host major Carlin-type, gold mineralization in northeast Nevada, and are the host rocks to much of the gold mineralization at the Pipeline, Cortez, and Cortez Hills deposits located near the Utah Clipper Project. Felsic to intermediate intrusive rocks, of Jurassic to Tertiary-age, cut all the older sedimentary rocks. Intrusive bodies are exposed in the nearby Gold Acres Mine pit, at the nearby Robertson Project and across the valley at Mill Canyon, adjacent to the Cortez Mine.
Two styles of mineralization are present at Utah Clipper: shallow silver mineralization, and deep gold mineralization. Silver deposits are hosted in vein-like structures that occur in the upper-plate, siliceous formations. Small historical production of silver and base metals is recorded from the Boss Mine and silver production is recorded from the Utah Camp and Clipper mine, all located on the Utah Clipper claims. Bulk-minable gold deposits are present at the nearby Cortez, Cortez Hills, Pipeline and Gold Acres mines and occur in lower-plate rocks.
Past work includes limited modern exploration by Newmont, Goldfields, Noranda/Hemlo and Uranerz/Cameco in the late-1980's to mid-1990's. Agnico-Eagle and Barrick Gold completed drilling in 2007 and 2009 respectively.
The highest gold value drilled to date at Utah Clipper was by Uranerz in hole ORB-02 and intersected 3.84 g/t (0.112 opt) in a 1.5 m (5 ft) interval. The intercept occurred within a 9 m (30 ft) interval averaging 9.1 m of 1.8 g/t (29.8 ft of 0.052 opt) gold, from 335 to 344 m (1,100 to 1,130 ft) of depth.
Agnico-Eagle drilled three deep holes; one hole was lost before intersecting the lower plate; the other two holes were drilled to 762 m (2,500 ft) and 548.6 m (1,800 ft) and intersected favorable, lower-plate, carbonate rocks at 246.9 m (810 ft) and 289.5 m (950 ft) respectively. The best gold intercept was 0.464 g/t (0.014 opt) over 3 m (10 ft), within 12.2 m (40 ft) averaging over 0.10 g/t (0.003 opt), at a depth of 509 m (1,670 ft). The thickest intercept of anomalous gold drilled in the lower-plate, near the thrust contact was 100 ft of 0.007 opt (30.5 m of 0.24 g/t) in drill hole ORR08-02.
Barrick drilled two deep holes; one hole was drilled to 353 m (1,160 ft) but was lost before intersecting the lower plate; the other hole was drilled to 963 m (3,160 ft) and intersected favorable, lower-plate, carbonate rocks at 374 m (1,230 ft) of depth and cut anomalous gold from 374 to 396 m (1,230 to 1,300 ft), including 6 m of 0.68 g/t (20 ft of 0.020 opt gold). The rest of the 21 m (70 ft) intercept returned slightly anomalous gold of 0.045 to 0.100 g/t (0.001 to 0.003 opt). The hole bottomed in intrusive rocks from 600 to 963 m (1,970 to 3,160 ft).
In early 2012, Partner, Navaho Gold drilled one diamond drill hole for a total of 1,153.8 meters (3,785 feet) at Utah Clipper gold project.
Highlights of the drilling as reported by Navaho include:
Silver anomalous throughout the hole with zones of up to 65.1 g/t intersected.
Two zones of gold mineralisation intersected.
Widespread elevated pathfinder geochemistry indicative of proximal Carlin-style mineralization intersected.
Navaho has informed Columbus Gold that they believe that further exploration, including a second drill-hole is warranted on the property given the close proximity to world-class gold operations, a defined target with surface geochemistry potentially indicative of Carlin style mineralisation at depth and encouragement from the first hole. Consideration is being given to using the rotary mud drilling method to reduce cost.
Navaho's news releases respecting the above can be viewed on their website at www.navahogold.com.
For exploration 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.
Mr. Mark Dugmore, B.App.Sc., M.Sc., who is a Member of The Australian Institute of Mining and Metallurgy is the Qualified Person under NI 43-101 who has reviewed and approved the technical content of the Navaho projects reported herein. Mr. Dugmore is employed by Navaho.
