“The Cahuilla deposit is a very young, epithermal precious metal deposit containing gold with silver. Based on the 2012 geologic model, the deposit is relatively well understood, and exploration potential for encountering additional precious metal mineralization is considered good. In addition to having the potential to expand the resources, the Cahuilla project is now in a position to undergo engineering and economic studies to determine its economic viability.
The geological model completed in 2012 imparts much confidence in the resource and in the understanding of the project. It has laid the groundwork for effective exploration.”
“Cahuilla is a project of merit that warrants both exploration and development work, as well as advanced stage studies. The focus of the project should now be on exploration outside of the deposit area. Advanced-stage work should include metallurgy, economic studies, and permitting.”
Work Plan includes:
Initiate a detailed geological research program to better understand the geology of Cahuilla with respect to precious metal mineralization. Emphasis should be placed on a detailed mineralization study to determine the relationship between lithology, alteration, and mineralization and a structural study to better defined faulting and structural controls of mineralization.
Geophysical surveys may help in guiding exploration to the east, west, and south of the defined resource and may also help to define potential new targets concealed beneath pediment and at depth. These surveys may guide exploration around recent and historic drill holes that have intersected mineralization but remain open ended. Historic magnetic data should be reinterpreted in light of the new geologic understanding and more sophisticated and modern magnetic processing tools now available. IP, gravity, and audio-magneto telluric (“AMT”) surveys should be done to evaluate which would be most effective for exploration.
Permit new access roads and drill sites for planned drilling.
RC drill holes where the mineralization is open-ended to find the limits of the deposit.
Drilling in areas where gold mineralization has been encountered in historic drill holes but have little to no data in the vicinity. Significant drill-hole intercepts have been encountered ~3,000ft west-southwest in the hanging wall of the Modoc fault.
Initiate a diamond drilling program to a) obtain core in high-grade areas to better define the stratigraphy and controls of mineralization, b) obtain samples for metallurgy, and c) conduct geotechnical investigations (density, rock mechanics).
Metallurgical test work should be done to better define extractions at Cahuilla.
A Preliminary Economic Assessment (“PEA”) should be conducted soon. The results would guide detailed planning of the previously described recommendations.
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