|AFGAN-KOBE PROPERTY DESCRIPTION and NI 43-101 TECHNICAL REPORT FROM 2011|
Overview The Afgan-Kobeh project is located about 28 miles northwest of Eureka in Eureka County, Nevada, and consists of 109 unpatented lode mining claims. These claims cover an area of approximately 2,180 acres in all or portions of Sections 17-20 and 29-32, T22N, R51E, Mount Diablo Base and Meridian.
NV Gold purchased the Afgan-Kobeh property from Gold Standard Royalty (Nevada) Inc. for $200,000 in cash ($100,000 paid on closing date and remaining $100,000 paid on first anniversary of the closing date (June 14, 2011)), 600,000 shares, and 600,000 share purchase warrants of NV Gold; Gold Standard will retain a 1% NSR royalty on the property and on claims located within an area of interest. Gold Standard is a subsidiary of Golden Predator Royalty & Development Inc.
The Afgan-Kobeh project contains a semi-continuous zone of gold mineralization that lies along the contact of thinly bedded siltstones of the Webb Formation with the underlying Devils Gate Limestone. This contact dips easterly at shallow to moderate angles, with the bulk of the mineralization occurring in brecciated Webb sediments that are frequently altered to jasperoid.
Mineralizing controls beyond the east-dipping Webb – Devils Gate contact are presently poorly understood. It is possible that high-angle structures and/or karstic features influenced the localization of higher-grade areas. An understanding of these controls would enhance both future exploration efforts and resource modeling at Afgan-Kobeh.
The Afgan-Kobeh resource is open for expansion in several areas:
Up-dip (to the west) beyond the present resource limits in the northern portion of the deposit. This target, which includes the largest outcroppings of jasperoid in the project area, was partially tested by Midway in 2007 with positive results; andAlong the poorly defined southern limits of the deposit, which are characterized by relatively deep resources of higher than average grades. These deeper existing resources need to be tested up-dip along the projection of the Webb – Devils Gate contact to the surface.Mine Development Associates (MDA) believes the best opportunity for significant expansion of the existing resource base lies to the southwest of the present extents of the Afgan deposit. The prospective near-surface Webb – Devils Gate contact can be inferred for a distance of approximately 4,500 feet between the southern limit of the existing resources and the southernmost exposure of Devils Gate limestone on the Afgan-Kobeh project, and is likely to continue further to the south beneath alluvial cover.
This southern target area has the potential to provide significant additional shallow and presumably oxidized resources to the Afgan-Kobeh project.
Technical Report (NI 43-101) : June 24 2011
History Lyle F. Campbell originally located claims north of Afgan-Kobeh in the late 1970s and optioned the claims to American Selco, Inc. (“Amselco”). Amselco subsequently identified anomalous gold in outcrop to the south and staked the original claims of the Afgan claim block. The Kobeh claims south of the Afgan claim block were added to the project by Great Basin Exploration and Mining, Inc. (“Great Basin”) in 1991. Exploration has been primarily focused on the Afgan portion of the property, where significant gold mineralization was encountered in drilling in the 1990s.
The property has been explored by Amselco, Hecla Mining Company (“Hecla”), Santa Fe Mining, Inc. (“Santa Fe”), Phelps Dodge Mining Company (“Phelps Dodge”), Great Basin, Cominco American Inc. (“Cominco”), White Knight Gold, Inc. (“White Knight”), and Midway Gold Corp. (“Midway”) from 1980 through 2007. In addition, the Lyle F. Campbell Trust (“LFC Trust”), underlying owner of the Afgan and Kobeh claims for much of the period from 1980 to 2007, explored the project at various times when no leases were active. Westley Explorations Inc. and Castleworth Ventures Inc. also held parts of the property in the past, but did not undertake significant exploration activities. In 2007, Gold Standard Royalty (Nevada) Inc. (“Gold Standard”) purchased all of the properties of the LFC Trust, and NV Gold purchased its interests in both the Afgan and the Kobeh properties from Gold Standard in 2010.
Exploration of the property has included drilling of 160 holes totaling 50,837 feet. Phelps Dodge drilled 63 RC holes on the Afgan portion of the property in 1990-1991, which has been the largest drilling program to date. Gold mineralization was intercepted in 55 of their 63 holes. Geologic mapping, geochemical sampling, regional gravity and electromagnetic surveying, and CS-AMT and other geophysical surveys have been completed on the property.
There has been no gold production from the Afgan-Kobeh project.
The Afgan-Kobeh project consists of 109 unpatented lode mining claims that cover an area of approximately 2,180 acres within Eureka County, Nevada.
2010 drill hole locations
Mineral Resource Mineral resources reported for the Afgan deposit were modeled and estimated by Mine Development Associates in March 2004 and classified in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definitions.
Afgan-Kobeh Gold Resources
|Cutoff||Tons||Au Grade||Au Ounces|
|(oz Au/ton)||(oz Au/ton)|
|0.010|| 3,206,000||0.021|| 66,000|
|Cutoff||Tons||Au Grade||Au Ounces|
|(oz Au/ton)||(oz Au/ton)|
|0.010|| 3,972,000||0.014|| 55,000|
A cutoff of 0.01 oz Au/ton was chosen to capture mineralization potentially available to open-pit extraction and heap-leach processing.
All of the resources are oxidized.
No Measured resources are reported for the project due to:
the general lack of QA/QC data;some uncertainty with regards to the exact location of a number of the drill holes;the insufficiency of metallurgical data; andthe absence of density data.
Geology and Mineralization Gold occurs on the Afgan-Kobeh project as oxidized, epithermal, disseminated, sediment-hosted mineralization located primarily at the brecciated base of a clastic section identified as probable Webb Formation of Mississippian age. The Webb Formation overlies the Devonian-aged Devils Gate Limestone, which hosts a small portion of the gold resource. The Webb – Devils Gate Limestone Formation contact has been interpreted by previous workers to be a fault that dips at low to moderate angles to the east. The Webb – Devils Gate contact is the principal control of the Afgan-Kobeh gold mineralization, although high-angle east-northeast-trending structures may also be of secondary importance in the localization of higher gold grades. Tertiary volcano-sedimentary rocks unconformably overlie the Paleozoic rocks and are oriented roughly parallel to the Webb – Devils Gate contact.
Modeling by Mine Development Associates (MDA) in 2004 produced a block model of the Afgan deposit in which approximately 80% of the mineralized blocks are modeled as Webb Formation, while 20% are modeled as Devils Gate Limestone. The gold mineralization was modeled by MDA to lie within a semi-continuous zone that extends for over 4,100 feet in a north-northeast direction and 1,500 feet east-west.
The Afgan deposit is similar to other sediment-hosted gold deposits in Nevada, such as the Rain gold mine. At Rain, gold is associated with brecciated, oxidized, silicified and argillized mudstones, siltstones, and sandstones of the Webb Formation immediately above its unconformable contact with the Devils Gate Limestone.
NI 43-101 Technical Report (NI 43-101) : June 24 2011
Source: SOURCE : Link NV Gold Corp.