Longstreet Mine Project, Nevada USA

The objective at Longstreet is the discovery and development, of an economic gold-silver deposit and also to examine the potential, through exploration activity, for a very large “Round Mountain” style gold-silver system hosting in excess of 1 million ounces. The project currently hosts an indicated and inferred gold-silver resource of approximately 100,000 ounces gold and 2.3 million ounces silver (see Technical Report below). We believe the Longstreet property has the potential to host economic gold-silver deposits large enough to attract major and intermediate sized mining and financing partners. This will be done by demonstrating the property's potential through exploration beginning at the Longstreet gold-silver mine target, examining deeper and on strike mineralization potential. Exploration will continue on 6 other mineralized areas on the property with the goal of expanding the resource size.


Target

The Longstreet Mine property hosts 7 separate gold-silver targets. Four of the prospective zones including the Longstreet Main Zone are heap-leach, open-pit targets with higher-grade sulphide mineralization potential at depth. The remaining three zones are deeper, “bonanza” style high-grade gold-silver targets. Richard Kern of Minquest states “We believe in the potential of this multi-target land package. While the small mine potential of the Longstreet deposit has been our initial focus, we have always planned to explore deeper as part of the much bigger model we are chasing, a Round Mountain style system”.

The giant Round Mountain Au-Ag Mine (Barrick/Kinross) is located 47 km (29 mi) NW of Longstreet and as of yearend 2004, reported reserves of 80 million tonnes at an average grade of 0.56 g/t gold.

 

Location

The property is located in Northern Nye County, Central Nevada. Access is by paved and gravel road, a one hour drive from the historic mining community of Tonopah, Nevada.


History

The Longstreet Gold-Silver vein was discovered about 1903. In the 1920's Longstreet was under active exploration and development with two levels totaling approximately 400 m of drifting and crosscut workings. A mill was constructed and its remnants are still on the site. All work ceased in 1930 and the property was dormant until the 1980’s. Renewed interest in the property coincided with the sharp increase in precious metal prices in the late 1970s. This period of exploration lasted until 1996, though the bulk of the drilling finished in the late 1980's. With 459 RC drill holes, 6 Diamond drill holes, mineral processing & metallurgical testing and a preliminary feasibility study completed in 1988, the project is considered to be at an advanced stage of exploration. Significant preliminary metallurgical work has been undertaken to indicate that the oxidized gold-silver mineralization is recoverable by heap leaching and presents no special problems for extraction and processing.

Geologic Setting

Gold deposits are typically described in association with mineralizing trends that are a reflection of deep crustal structures and magmatism, such as the "Walker Lane" and the "Carlin Trend". The Longstreet Project is located in the Monitor Range adjacent to the N-W trending Walker Lane. The Walker Lane includes such world-class gold deposits as the Comstock and Goldfields mining camps. Also in the Walker Lane is the giant Round Mountain gold deposit mined by Barrick and Kinross and estimated to be in excess of 10 million ounces of gold. Round Mountain is located approximately 47 km NW of the Property, and is a classic example of a low sulphidation, epithermal gold system. The Longstreet Gold-Silver Mine deposit is also a low sulphidation, epithermal system.
 

The Longstreet Deposit

In the "Technical Report, On Longstreet Property Nye County, Nevada" by Greg Moser P.Geo Senior Geologist, Wardrop Engineering, the author states that at a cut-off grade of 0.25 g/t gold, the Longstreet Deposit contains an indicated resource of 4.7 million tonnes at an average grade of 0.63 g/t gold and 15.51 g/t silver. This report is available on the SEDAR website (link here http://www.sedar.com/csfsprod/data60/filings/00834391/00000001/f%3A%5CDATA2%5CSEDAR%5C55775%5CTechRep%5CLongSt.pdf ) and meets the requirements of National Instrument 43-101.