The Laura Property is located approximately 5 km (3 miles) southwest of the Cortez open pit gold mine and approximately 3 km (1.2 miles) west of the +10 million ounce Cortez Hills deposit, both owned by Barrick 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.
Laura is 100% controlled by Columbus Gold subject to underlying royalties, however, Sniper Resources can earn a 70% interest by making cash and share payments to Columbus Gold.
Laura has potential for both epithermal volcanic-hosted, and Carlin-type sediment-hosted gold. The property is underlain by Oligocene Caetano volcanic rocks and lies just to the south of the volcanic/Paleozoic-Upper Plate fault contact. Gold mineralization, both in surface sampling and at depth in drill holes, is hosted in what has been described as a heterolithic "jasperoid breccia", a horizon with clasts of chert-like rock, vein quartz and various altered volcanic lithologies. This unit zone is approximately 40 m (130 ft) thick, strikes north-northeast and dips in ±20° to the east. The breccia horizon is sandwiched between ash-flow tuff and, locally, intrusive felsite.
The first serious exploration program at Laura was apparently conducted by Conquest Explorations Ltd. and Heritage Petroleum Inc. in 1993. Their work consisted of mapping, soil and rock sampling and a 4.5 km (2.8 miles) IP survey. A six-hole drill program totaling 651.7 m (2,135 ft) was completed in December of that year. Anomalous to significant gold was intercepted in several of the holes including 9.1 m of 0.69 g/t (30 ft of 0.020 opt) gold, which has been interpreted to be near a felsite intrusive body.
In 2011, partner, Sniper Resources reported that limited historical exploration has taken place on the Laura gold property, despite its proximity to major gold deposits; only 6 shallow holes totaling 651 meters (2,136 feet) were drilled on the claims, during the early 1990's. A best intercept of 9.1 meters (30 feet) of 0.70 gpt gold (0.020 oz. Au/ton) hosted in "jasperoid breccia" was reported to be present in one of the holes.
A new road constructed to provide access to Barrick's nearby Cortez Hills Operations, has exposed a zone of upper plate mudstone and chert on the Laura claims that is believed by Sniper to represent the mineralized structure that was encountered in the drill hole indicated above. Geochemical samples have been taken by Sniper from this zone and results are pending.
Sniper's news releases respecting the above can be viewed on their website at www.sniperresources.com.
The nearby discovery of Cortez Hills, and the most recent nearby discoveries at Red Hill and Goldrush, indicate that the Laura Property requires further exploration at depths deep enough to test the Paleozoic rocks, host to the significant deposits in the region.
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.
