The Baxter prospect is a low-sulphidation epithermal Au-Ag-rich system underlain by felsic flows and domes within a package of volcanic derived tuffs, sediments and breccias. Located approx. 5.6 miles southwest of the Highland property, it consists of 86 claims totaling nearly 4 sq km that is accessible year round by good gravel roads. Preliminary sampling has returned 16 of 51 samples with values from 1.0g/t to 21.2g/t Au, including seven samples >10g/t Au with up to 132g/t Ag. The silver to gold ratio is less than10:1, indicative of a gold-biased system. Surface exploration on the property will focus on identifying key structural and lithological controls on mineralization for follow-up drill testing.
A detailed magnetics survey has been completed. The data was combined with detailed geologic mapping and sampling and previous drill data, which reveals that a rhombic-shaped graben contains auriferous gold veins on three of the graben margins. The fourth margin is entirely covered by gravel. The company's shallow drilling program in 2004 intersected narrow intervals of high-grade gold, including 1.5 metes of 9.12 g/t Au within 6.1 meters of 3.50 g/t Au beginning at 51.8 meters depth and 1.5 meters of 7.38 g/t Au within 10.7 meters of 2.00 g/t Au beginning at 47.2 meters (see news release November 18, 2004). This mineralization lies along the northeastern margin of the graben, while low-grade gold intersected near the historic Baxter Mine appears to be in the footwall of the southwestern graben margin.
A total of 13 reverse-circulation drill holes (2,964 m) at 7 vein/fault zones were completed during the 2007 drill program. Holes at two of the zones, Chugiak and Last Chance, intersected several narrow intervals of significant gold mineralization, with each zone having strike lengths of +600 meters (See tables below). Both zones lie near the center of the claim group: Chugiak strikes west-northwest and Last Chance strikes almost due north. Drill holes at other vein/fault zones intersected narrow intervals of anomalous gold, generally less than 1 g/t Au.
The company intends to seek JV partners to test deeper portions of the Chugiak and Last Chance structures at Baxter and to evaluate the potential for molybdenum mineralization at Mud Springs.
