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 Tip Top Project
Report of Metallurgical Test Work
February 2010
The Sugarloaf Peak area contains a number of shallow underground workings one of which, the Tip Top Mine, has recorded production between 1915 and 1918 of approximately 6,500 ounces at a grade of 22.2 g/t gold. The prospect was explored by a number of exploration groups, including GSM, between 1980 and 2006 and a number of targets developed from GSM’s previous work remain, either undrilled or poorly tested. Underlying the district is a thick pile of volcanics and volcanic sediments filling a pronounced fault bounded trough. It is a classic geological setting for prolific epithermal systems, notably the Midas deposit in Northern Nevada. Additional exploration and drilling is warranted to evaluate the higher grade underground extent of the existing Tip Top resource and to test several other high quality surface epithermal vein expressions.
Much of the past drilling was concentrated at Tip Top where Dos Amigos, a junior company drilled 60 shallow percussion holes, 50 of which intersected greater than 1 g/t gold over drilled widths between 25 and 3 metres, including one interval of 16 m of 21.2 g/t gold. Dos Amigos made substantial progress towards permitting an open pit mine before abandoning their interest in 2001 in the face of weak gold prices. Parker Mining Company has calculated a potential open pit resource (not NI 43-101 compliant) ranging from 33,000 to 102,000 ounces at grades of 3.8 g/t and 3.6 g/t gold, respectively. The estimated potential resource range depends on the distance filter (between 6 m and 12 m, respectively) applied in the computer generated model. The potential quantity and grade is conceptual in nature with insufficient work to define a mineral resource and it is uncertain if further work will result in definition of a mineral resource. GSM plans to complete a NI 43-101 compliant study on the project as well as evaluating nearby areas for offsite ore processing. Metallurgical test work by past explorers indicates good leach characteristics.
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