MUSGROVE CREEK GOLD PROJECT, IDAHO
LOW COST, OPEN-PIT GOLD OPPORTUNITY LOOKING TO INCREASE RESOURCE.
The Musgrove Creek Gold Project is located 40 kilometers (25 miles) southwest of Salmon, Idaho and covers approximately 1,500 acres. The region has been the focus of mining activity since the late 1800s. Several significant gold deposits have been mined in the area. The latest and largest operation was the Meridian’s Beartrack epithermal gold deposit, which is 15 miles northeast of the Musgrove Project. The Beartrack Deposit was reported to have produced 513,822 ounces of gold from 1996 to 2001.
The Musgrove deposit has been intersected over a strike length of 400 metres, a width of 110 metres and to a depth of 150 metres. The NI 43-101 Inferred Mineral Resource estimate at the Musgrove deposit is 8 million tonnes at 1.22g/t Au (0.036 oz/t) at a gold cut-off: 0.8 g/t (0.023 ounces per English ton). This is equivalent to 9,761 kg (313,822 oz) of gold at zero dilution (D. Makepeace, P.Eng, 2004).
Drilling Nov. 12
EXPLORATION RESULTS TO DATE
During the period 1991 to 2006, Atlas Minerals, Newmont Exploration Corp., Meridian Gold, Wave Explorations and Journey Resources carried out exploration programs in the Musgrove project area. All programs involved drilling with the major focus being on an area referred to as Johny’s Point.
Gold mineralization occurs along a 4.8-kilometre (3-mile) north-westerly trend and has been identified in several parallel trends. The mineralization is believed to be related to a Tertiary epithermal event where rocks of the Apple Creek Formation are the primary host for gold mineralization. The primary deposit model on the Musgrove Creek property is epithermal style gold mineralization.
Gold mineralization is largely confined to quartz veins and quartz vein stockworks. The gold generally occurs as grains of less than 30 microns, although coarser gold, up to 2 mm has been noted (Krasowski and Arkell, 1995). The gold to silver ratio is about 1:1 and arsenic is the only significant trace element.
In February of 2004, a new NI 43-101 mineral resource calculation was estimated (Gruenwald and Makepeace, 2004). The resulting Inferred Mineral Resource was 8 million tonnes at 1.22 g/t Au. (0.036 oz/T) which would be equivalent to 9,761 kg (313,822 oz) gold, at zero dilution. A cut-off grade of 0.8 g/t Au (0.023 oz/T) was used.
Previous exploration and the current resource evaluation indicate that the Musgrove deposit is open along strike in both directions and "down-the-dip".
In 2006, Journey staked an additional 40 unpatented mining claims, covering approximately 600 acres. The additional claims consist of 10 Joe claims and 30 Journey claims, located northwest of the original claim block comprising the Musgrove Creek Gold Project.
The 2007 Plan of Operations, as submitted and accepted by the US Department of Agriculture, US Forest Service, includes soil sampling, geological mapping, and the diamond drilling of 9 holes for approximately 7,500 feet in total length.
The Company will also conduct soil sampling and detailed geological mapping of the 10 Joe claims and 30 Journey claims to the Northwest of Johny's Point (approx. 600 acres), along with the reconnaissance of the area known as the "Ludwig Basin" that lies southwest of Johny's Point.
Planned drilling will include reopening 4,700 feet of additional drill roads, the construction of 9 new drill pads and the drilling of 9 holes, 7,500 feet in total length. The drilling will test the main portion of the Ostrander Creek gold-in-soil anomaly delineated in 2004. Drilling will be accomplished using a newly acquired skid mounted Hydracore 2000 diamond drill owned by the Company. The purpose of the drill program is to assist in defining the mineralized zone(s), with the objective of increasing the mineral resource and advancing the project toward a feasibility study and eventual production.
