Auric-Fulstone (IOCG) Iron Oxide Copper-Gold Mining Project
The Fulstone Property
The property that Auric has acquired by claim staking can be classified as an Iron Oxide Copper-Gold (IOCG) exploration target. While there are no measured resources in the target area, Auric believes that there is potential for one or more deposits aggregating up to 500 million tons based on the size of large geophysical and geochemical anomalies within the target area. Since its origination in 2010, Auric has made some major advances on the Fulstone property on a minimal budget. These advances along with the increase in gold and silver prices have, in our view, greatly increased the potential value of the property. When looking at Fulstone, there are three categories of change that we believe affect the value. They are, 1) prices of precious metals, 2) the results of geophysical and geochemical interpretation that have demonstrated the potential of two major mineralized zones, and 3) Itronics advances in Rock Kleen and the inclusion of the Minnesota Mine tailings value into the Fulstone Project. We believe that these significant changes have brought value to the project.
Mineralized Areas
Two potentially major mineralized areas have been identified, the Golden Valley and the Silver Ridge. Golden Valley was identified because of a geophysical survey in combination with a geochemical grid sampling system. The Golden Valley geophysical signature covers over a square mile in surface area while tracing conductors to a depth of 2000 feet. Geochemical grid sampling yielded one sample at .4 oz per ton gold. The overall grid returned gold grades indicating a typical Nevada epithermal gold system. Geochemical samples outside the grid indicated zones of copper, zinc, silver, and lead. The Silver Ridge occurrence was identified through surface sampling with one sample retuning 4% Zn, 4% Pb, and 4 oz per ton silver. The plan for advancing the Fulstone calls for additional geochemical sampling and a drill program for the Golden Valley.
The following table shows mineral load claims and approximate acreage
The property that Auric has acquired by claim staking can be classified as an Iron Oxide Copper-Gold (IOCG) exploration target. While there are no measured resources in the target area, Auric believes that there is potential for one or more deposits aggregating up to 500 million tons based on the size of large geophysical and geochemical anomalies within the target area. Since its origination in 2010, Auric has made some major advances on the Fulstone property on a minimal budget. These advances along with the increase in gold and silver prices have, in our view, greatly increased the potential value of the property. When looking at Fulstone, there are three categories of change that we believe affect the value. They are, 1) prices of precious metals, 2) the results of geophysical and geochemical interpretation that have demonstrated the potential of two major mineralized zones, and 3) Itronics advances in Rock Kleen and the inclusion of the Minnesota Mine tailings value into the Fulstone Project. We believe that these significant changes have brought value to the project.
- Precious Metals Prices - Fulstone is a gold target as demonstrated by the initial definition of the Golden Valley target and surface gold samples obtained. One surface sample contained .4 ounces per ton gold. From the time of Auric’s inception in 2010 gold has risen from a price of around $1200 per ounce to a current price of $2300 per ounce. Silver has risen from around $18 per ounce to the current price of $27.00 per ounce.
- Geophysical and Geochemical Data - The analysis of the geophysical and geochemical data led Auric to do a more detailed sampling program on two specific targets which became our Golden Valley prospect and our Silver Ridge prospect. The Golden Valley block, to a depth of 1000 feet, has the potential of containing over 300 million tons of mineralized rock. Silver Ridge, based on mapping, geology, and surface samples also has the potential to be a major mineralized block of ground. Both prospects potentially are company builders.
- Rock Kleen: A Deep Eutectic Solvent - Itronics laboratory work on Rock Kleen, A Deep Eutectic Solvent, has proven extremely successful at cleaning rock and recovering precious, base, and ferrous metals plus mineral nutrients. Auric’s Fulstone claims include the Minnesota Mine tailings pond which Whitney & Whitney has evaluated for recoverable value. Using Rock Kleen, the tailings can be marketed for the sale of magnetite and crushed sands. Revenues received from tailings processing can help support a major exploration program on Fulstone.
Mineralized Areas
Two potentially major mineralized areas have been identified, the Golden Valley and the Silver Ridge. Golden Valley was identified because of a geophysical survey in combination with a geochemical grid sampling system. The Golden Valley geophysical signature covers over a square mile in surface area while tracing conductors to a depth of 2000 feet. Geochemical grid sampling yielded one sample at .4 oz per ton gold. The overall grid returned gold grades indicating a typical Nevada epithermal gold system. Geochemical samples outside the grid indicated zones of copper, zinc, silver, and lead. The Silver Ridge occurrence was identified through surface sampling with one sample retuning 4% Zn, 4% Pb, and 4 oz per ton silver. The plan for advancing the Fulstone calls for additional geochemical sampling and a drill program for the Golden Valley.
The following table shows mineral load claims and approximate acreage
Iron Oxide Copper-Gold (IOCG) Deposits
IOCG deposits can be very large as is demonstrated by the Pumpkin Hollow IOCG deposit which has a 2009 NI 43-101 measured, indicated, and inferred resource of 929 million tons of copper ore containing 4.657 million tons of copper at a cutoff grade of 0.2% copper. This Pumpkin Hollow resource also contains 1.45 million ounces of gold, 55 million ounces of silver, 24,000 tons of molybdenum, and 183 million tons of iron.
Economic Assessment for Pumpkin Hollow
The recently completed preliminary economic assessment for Pumpkin Hollow demonstrates that at a $2.50/lb. copper price, the project has a $498 million NPV at an 8% discount with an IRR of 44% and Capex of $192 million. At a $3.00/lb. copper price, the project’s discounted NPV at an 8% discount increases to $784 million. Nevada Copper recently obtained permits to do underground development and sampling and has financing in place to conduct the development work. On-going drilling is also being conducted, which is expanding the measured resource.
The Fulstone property has many similarities to the Pumpkin Hollow IOCG deposit. A description of the Pumpkin Hollow’s geology is below - (Geology of Pumpkin Hollow from Nevada Copper Corporations Website)
"The Pumpkin Hollow deposit is a high grade IOCG chalcopyrite-magnetite skarn located along the flanks of the copper producing Yerington batholith where the district wide copper inventory is over 24 billion pounds."
"The Pumpkin Hollow deposits are blind; the only surface expression are hornfels and un-mineralized skarn. The deposits were originally discovered in 1959 by the US Steel Corp. using airborne magnetics. Follow-up magnetic surveys and drilling delineated several magnetite-rich skarn bodies, commonly greater than 40% iron, hosted by Mesozoic sedimentary and igneous rocks. Later work by Anaconda and other companies outlined copper rich areas within the system where drilling intercepted grades up to 20 % Cu. A recently completed resource study at a 0.2% copper cutoff reported 9.3 billion pounds of copper, 1.45 million ounces of gold, and 55 million ounces of silver. Lithologicces at a 20% iron cutoff total 361 million tons at a grade of 36%."
"To date exploration has defined five individual deposits (although with additional drilling, some of the deposits will likely merge) the North, South and Southeast; open pit mineable deposits and the high-grade East and E-2 both underground deposits."
Copper Deposits of the Yerington District
Nevada Copper Corporation’s Pumpkin Hollow deposit, a high grade IOCG deposit is located approximately 90 miles southeast of Reno, NV, and approximately 6 miles southeast of the city of Yerington, and 8 miles southeast of the Yerington open pit.
Pumpkin Hollow is located at the southeast corner of the included satellite image
IOCG deposits can be very large as is demonstrated by the Pumpkin Hollow IOCG deposit which has a 2009 NI 43-101 measured, indicated, and inferred resource of 929 million tons of copper ore containing 4.657 million tons of copper at a cutoff grade of 0.2% copper. This Pumpkin Hollow resource also contains 1.45 million ounces of gold, 55 million ounces of silver, 24,000 tons of molybdenum, and 183 million tons of iron.
Economic Assessment for Pumpkin Hollow
The recently completed preliminary economic assessment for Pumpkin Hollow demonstrates that at a $2.50/lb. copper price, the project has a $498 million NPV at an 8% discount with an IRR of 44% and Capex of $192 million. At a $3.00/lb. copper price, the project’s discounted NPV at an 8% discount increases to $784 million. Nevada Copper recently obtained permits to do underground development and sampling and has financing in place to conduct the development work. On-going drilling is also being conducted, which is expanding the measured resource.
The Fulstone property has many similarities to the Pumpkin Hollow IOCG deposit. A description of the Pumpkin Hollow’s geology is below - (Geology of Pumpkin Hollow from Nevada Copper Corporations Website)
"The Pumpkin Hollow deposit is a high grade IOCG chalcopyrite-magnetite skarn located along the flanks of the copper producing Yerington batholith where the district wide copper inventory is over 24 billion pounds."
"The Pumpkin Hollow deposits are blind; the only surface expression are hornfels and un-mineralized skarn. The deposits were originally discovered in 1959 by the US Steel Corp. using airborne magnetics. Follow-up magnetic surveys and drilling delineated several magnetite-rich skarn bodies, commonly greater than 40% iron, hosted by Mesozoic sedimentary and igneous rocks. Later work by Anaconda and other companies outlined copper rich areas within the system where drilling intercepted grades up to 20 % Cu. A recently completed resource study at a 0.2% copper cutoff reported 9.3 billion pounds of copper, 1.45 million ounces of gold, and 55 million ounces of silver. Lithologicces at a 20% iron cutoff total 361 million tons at a grade of 36%."
"To date exploration has defined five individual deposits (although with additional drilling, some of the deposits will likely merge) the North, South and Southeast; open pit mineable deposits and the high-grade East and E-2 both underground deposits."
Copper Deposits of the Yerington District
Nevada Copper Corporation’s Pumpkin Hollow deposit, a high grade IOCG deposit is located approximately 90 miles southeast of Reno, NV, and approximately 6 miles southeast of the city of Yerington, and 8 miles southeast of the Yerington open pit.
Pumpkin Hollow is located at the southeast corner of the included satellite image
Fulstone Project Similarities to Pumpkin Hollow
The land position being assembled by Auric contains documented copper, gold, silver, zinc, and iron (magnetite) mineralization hosted within Jurassic-Triassic volcanics and sediments that have been intruded by a large Jurassic age intrusive that exhibits characteristics of disseminated porphyry copper mineralization; sulfide bearing skarns with magnetite; and sodic-calcic alteration typical of porphyry copper deposits. The gold and silver in IOCG deposits is typically associated with the base metals copper and zinc. In these deposits the gold is in the “Auric” molecular form in combination with base metals.
The Fulstone Project area has several aeromagnetic anomalies that trend favorably with well-developed north-south, northwest-southeast, and northeast-southwest faulting.
Unpublished work performed by Whitney & Whitney, Inc. early in 2000 resulted in the discovery of a significant induced polarization (IP) anomaly that trends sub-parallel to a northwest-southeast trending aeromagnetic anomaly. The above noted geophysical anomaly is bounded by northwest-southeast trending faults and is intersected by north trending and northeast-southwest trending faults. The IP anomaly has been traced for over 10,000 feet and ranges from 1,000 to 4,000 feet wide at a 40 milli-second magnitude outline on plan maps. Individual IP dipole-dipole survey lines show conductors exceeding 1,000 feet in thickness, and a chargeability reading greater than 60 milli-seconds.
In the 2010 second half Auric purchased a data package that contains exploration data obtained during the early 1970s, that extends the IP anomaly approximately 8,000 feet to the north. This older IP survey reflects a conductor with chargeability values greater than 40 milli-seconds and resistivity values that suggest the presence of sulfides associated with limestones at depths from 300 to 1200 feet.
Geochemical sampling over both IP anomalies has identified coincident anomalous copper-gold-zinc mineralization.
A hole drilled by Exxon in the late 1960s, on trend with the IP anomaly encountered 80 feet of 0.40% copper at a 400 foot depth. At that time the grade and the price of copper were too low to meet their objectives… now these grades and copper over $3.00 per pound are attractive, as seen by recent exploration activity in the Yerington district.
Ann Mason Copper Deposit
The Yerington Mining District is favorably located within the mineral laden Walker Lane Fault System (WLFS). In a general sense the WLFS extends along the eastern flank of the Sierra Nevada Mountain range from the northeasterly trending Garlock-Las Vegas Fault system near the Mojave Desert in southern California and extends 500 miles northwesterly into south-central Oregon.
The WLFS is located at the juncture of two contrasting tectonic styles, the Sierra Nevada and the Basin and Range. The WLFS is a complex fault zone with both extensional and strike-slip fault movements.
Numerous mineral deposits have formed within the complex WLFS. These deposits range from historic million ounce bonanza grade gold and silver camps such as the Comstock Lode, Tonopah, and Goldfields; small epithermal precious and base metals vein deposits, larger tonnage disseminated gold deposits which include Paradise Peak and Beatty, to a number of larger porphyries including Anaconda Mining Company’s Yerington Pit which produced 875,000 tons of copper, and Anaconda’s Hall Molybdenum mine outside Tonopah which produced approximately 50 million tons of molybdenum ore between 1982 and 1991.
Auric’s personnel have extensive experience exploring the Walker Lane, especially in northwest Nevada, including the advancement of the Borealis Mine by Whitney & Whitney, Inc. under the direction of Dr. John Whitney, President. Dr. Whitney is a member of the Borealis owner group which acquired the property in 1977. Between 1980 and 1991 the Borealis mine produced over 625,000 ounces of gold. The Borealis mine is now under lease to Gryphon Gold Corp which has been exploring the 23 square mile gold bearing volcanic hosted high sulfidation system at the mine site. Gryphon has identified 1.4 million ounces of Measured & Indicated gold resources, and 1.1 million ounces of Inferred gold resources and has secured permits for a heap leach operation. Gryphon recently obtained financing to put the Borealis mine back into production and is managing a “fast track” construction path to obtain gold production in the fourth quarter 2011.
Mining Company Development Activities in the Yerington District
The land position being assembled by Auric contains documented copper, gold, silver, zinc, and iron (magnetite) mineralization hosted within Jurassic-Triassic volcanics and sediments that have been intruded by a large Jurassic age intrusive that exhibits characteristics of disseminated porphyry copper mineralization; sulfide bearing skarns with magnetite; and sodic-calcic alteration typical of porphyry copper deposits. The gold and silver in IOCG deposits is typically associated with the base metals copper and zinc. In these deposits the gold is in the “Auric” molecular form in combination with base metals.
The Fulstone Project area has several aeromagnetic anomalies that trend favorably with well-developed north-south, northwest-southeast, and northeast-southwest faulting.
Unpublished work performed by Whitney & Whitney, Inc. early in 2000 resulted in the discovery of a significant induced polarization (IP) anomaly that trends sub-parallel to a northwest-southeast trending aeromagnetic anomaly. The above noted geophysical anomaly is bounded by northwest-southeast trending faults and is intersected by north trending and northeast-southwest trending faults. The IP anomaly has been traced for over 10,000 feet and ranges from 1,000 to 4,000 feet wide at a 40 milli-second magnitude outline on plan maps. Individual IP dipole-dipole survey lines show conductors exceeding 1,000 feet in thickness, and a chargeability reading greater than 60 milli-seconds.
In the 2010 second half Auric purchased a data package that contains exploration data obtained during the early 1970s, that extends the IP anomaly approximately 8,000 feet to the north. This older IP survey reflects a conductor with chargeability values greater than 40 milli-seconds and resistivity values that suggest the presence of sulfides associated with limestones at depths from 300 to 1200 feet.
Geochemical sampling over both IP anomalies has identified coincident anomalous copper-gold-zinc mineralization.
A hole drilled by Exxon in the late 1960s, on trend with the IP anomaly encountered 80 feet of 0.40% copper at a 400 foot depth. At that time the grade and the price of copper were too low to meet their objectives… now these grades and copper over $3.00 per pound are attractive, as seen by recent exploration activity in the Yerington district.
Ann Mason Copper Deposit
The Yerington Mining District is favorably located within the mineral laden Walker Lane Fault System (WLFS). In a general sense the WLFS extends along the eastern flank of the Sierra Nevada Mountain range from the northeasterly trending Garlock-Las Vegas Fault system near the Mojave Desert in southern California and extends 500 miles northwesterly into south-central Oregon.
The WLFS is located at the juncture of two contrasting tectonic styles, the Sierra Nevada and the Basin and Range. The WLFS is a complex fault zone with both extensional and strike-slip fault movements.
Numerous mineral deposits have formed within the complex WLFS. These deposits range from historic million ounce bonanza grade gold and silver camps such as the Comstock Lode, Tonopah, and Goldfields; small epithermal precious and base metals vein deposits, larger tonnage disseminated gold deposits which include Paradise Peak and Beatty, to a number of larger porphyries including Anaconda Mining Company’s Yerington Pit which produced 875,000 tons of copper, and Anaconda’s Hall Molybdenum mine outside Tonopah which produced approximately 50 million tons of molybdenum ore between 1982 and 1991.
Auric’s personnel have extensive experience exploring the Walker Lane, especially in northwest Nevada, including the advancement of the Borealis Mine by Whitney & Whitney, Inc. under the direction of Dr. John Whitney, President. Dr. Whitney is a member of the Borealis owner group which acquired the property in 1977. Between 1980 and 1991 the Borealis mine produced over 625,000 ounces of gold. The Borealis mine is now under lease to Gryphon Gold Corp which has been exploring the 23 square mile gold bearing volcanic hosted high sulfidation system at the mine site. Gryphon has identified 1.4 million ounces of Measured & Indicated gold resources, and 1.1 million ounces of Inferred gold resources and has secured permits for a heap leach operation. Gryphon recently obtained financing to put the Borealis mine back into production and is managing a “fast track” construction path to obtain gold production in the fourth quarter 2011.
Mining Company Development Activities in the Yerington District
