MUSGROVE CREEK GOLD PROJECT, IDAHO
LOW COST, OPEN-PIT GOLD OPPORTUNITY LOOKING TO INCREASE RESOURCE.
Musgrove Creek is an advanced gold exploration project located in Lemhi County, Idaho, approximately 24 km (15 miles) southwest of the recently mined Beartrack gold deposit. The property is accessed from Salmon or Challis, Idaho by about 80 km (50 miles) of paved, gravel and dirt roads.
Musgrove Creek contains a NI 43-101 Inferred Mineral Resource estimate of 8 million tonnes at 1.22 g/t Au (0.036 oz/ton) at a gold cut-off of 0.8 g/t (0.023 oz/ton). This is equivalent to 9,761 kg (313,822 ox) of gold at zero dilution (Gruenwald and Makepeace, 2004). Recent exploration activity conducted at Musgrove is focused on adding to that resource with the4 objective of establishing a minable deposit.
Geologically, Musgrove Creek has potential for a large low-grade epithermal gold deposit similar to the nearby Beartrack Mine. The property is one of many mineral deposits that occur within a major northeast-southwest-trending structural zone known as the Trans-Challis Fault System. These deposits include the Beartrack Mine and other historic producers to the northeast of the property, and Hecla Mining Co.’s Grouse Creek Mine and other past producers to the southwest.
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 dominant host rock at Musgrove is metamorphosed fine-grained sediments of the Precambrian age Apple Creek Formation. These rocks are unconformably overlain by Tertiary Challis Volcanics, both of which are locally intruded by Challis intrusive rocks. Gold mineralization at Johny’s Point is associated with quartz veining, sericitic alteration, brecciation, and structural preparation.
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 and drilled 9 rotary reverse-circulation drill holes northwest of Johny’s Point to begin testing a soil geochemistry anomaly found in 2004. Journey continued testing this anomaly in 2007 by drilling 5 core holes located west and down-slope of the 2006 holes.
The results from the 2006 and 2007 drilling programs indicate a tangible target for ore-grade mineralization (named “Johny Northwest target area”) located midway between those two groups of drill holes. Five core holes totaling 427 m( 1,400 ft) are recommended to be drill from an existing access road to begin testing this target area.
IN 2008, data from the project was incorporated into a GIS database.
Planned and permitted drilling for 2009 will include 5 core holes in the Johny Northwest target area. Additional target areas remain on the property, including the “Ludwig Basin” area west and southwest of Johny’s Point, and the “Ostrander Creek” and “Just Joe” areas to the northwest. These target areas need to be advanced for discovery potential during the 2009 field season. 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.
