Paramount Gold and Silver Corp. owns 100% of the Mill Creek Property strategically located along the prolific Battle Mountain-Cortez-Eureka Mineral Belt, approximately 20 km northwest of the Pipeline/Cortez Mine Complex, 25 km southeast of Newmont’s Phoenix mine and 35 km southeast of the Battle Mountain Mine. The project is comprised of 36 unpatented lode mining claims in the Shoshone Range, Lander County, Nevada. Access is by good paved and graded dirt roads.
The Mill Creek Property and area has been explored for gold and barite by several companies (Billiton, Nerco-Alta, BHP) and most recently by Paramount’s predecessor, X-Cal Resources. The primary targets at Mill Creek are Carlin style disseminated and skarn-hosted gold mineralization. Previous exploration was designed to reach the favorable carbonate rocks of the Lower Plate. Future exploration will continue to target the Lower Plate rocks, but will also target zones of structural preparation in the siliceous rocks of the Upper Plate. The phrase “lower plate window” refers to areas on the Battle Mountain and Carlin Trends where normally deeper rocks have been thrust to surface or near surface. Many of the most productive gold deposits on these trends occur in the lower plate rocks.
A Technical Report written for X-Cal Resources in 2005 by Richard Redfern of Elko, Nevada and a NI 43-101 “Qualified Person” summarizes the regional and project area geology and describes some of the exploration activities undertaken on the property prior to X-Cal. The 2005 Technical Report describes geologic mapping, soil sampling, rock sampling and a total of 26 drill holes. Several of the historic drill holes were reported to have gold mineralization (see table below). X-Cal subsequently completed 5 RC holes and 6 core holes widely distributed across the property.
Based on a recent review and interpretation of the historic data, the hydrothermal alteration and gold mineralization encountered in the historic surface exploration and drilling is likely associated with major N, NW and NE trending structures.
Drill Hole Summary (McGibbon, 2011)
|Table 2: Mill Creek Drill Hole Summaries||21 Nov '11 DHM|
|Drill hole||T.D. (ft)||From (ft)||To (ft)||Interval (ft)||Au ppb||Au oz/ton||Comments|
|BMC-93-1||325||Abandoned short of targets|
|BMC-93-1A||385||265||275||10||0.527||Abandoned short of targets; 10' >0.5 opt Au plus 40' lower grade. (Nerco, quoted in BHP report)|
|BMC-93-3||865||260||300||40||0.012||Interval was in qz-ser-(10%)py alt'd Ov slstn and metabasalt. Tqp dike 305-312'. Hole was cut for budget. T.D. probably near RMT|
|BMC-93-4||545||100||160||60||38-80||Abandoned short of target. Tqp dikes at 340-345' and 525-530'. All Ov but some calcareous siltstone intervals present.|
|BMC-93-6||665||220||280||60||32-162||Abandoned short of target. All Ov. Numerous faults in hole.|
|BMC-94-7||760||No data reported by Redfern but reported to be very weakly minz'd in faulted Ov.|
|BMC-94-8||1600||Only BHP hole to reach lower plate (at 1250'). High As below thrust.|
|MC-88-1||500||DSrm at 245'. Qz/py at 245' in alt'd DSrm (Nerco quoted in BHP report).|
|MC-88-2||500||10||30||20||0.01||Collared in Ovmb; DSrm at 110'?, Ohc at 440'. (Nerco, quoted in BHP report)|
|MC-88-3||500||?||100-160||0.003-0.005||DSrm at 170'?. (Nerco, quoted in BHP report)|
|XMC-1C||850||252||285||33||59||0.002||Dacite 675-685', 715-720'; bottomed in Ov so short of target|
|XMC-2C||1412||500||525||25||64||0.002||Intrusive 60-65', strongly sheared upper plate 470-665' then Dw? carbonate/marble to EOH; local pyrrhotite skarn development.|
|XMC-3||700||120||140||20||34||0.001||Intr? 230-240', local "skarn" but Ov to EOH|
|XMC-4||230||80||110||30||53||0.002||All Ov upper plate|
|XMC-5||1140||210||230||20||36||0.001||Grn ser alt'd intr 450-460', 470-500', lower plate at ±540'?|
|XMC-6||1200||410||420||10||22||0.001||Hornblende porphyry 240-280', lower plate at 300', mostly skarn 480-1040', LS to EOH.|
|XMC-7||1000||40||90||50||286||0.008||Tuff 40-90', 110-130'.Tuffaceous intrusive? 550-560', grn gy intrusive 610-650'. All upper plate? Lithologies except limey mudstn 840-915'.|
|XMC-7C||1612||130||180||50||78||0.002||Lapilli tuff 10-95', barite at 155', very broken/sheared 105-255' and 290-545', Lower plate starts skarn 542-615', most of hole very strongly borken/sheared/bxa'd. Hbl diorite 1385-1410' and locally below there incl.1590-1612' EOH.|
|XMC-8C||1093||35||65||30||131||0.004||Stratigraphy not clear from descriptions."Dike" 280-285'. Lower plate contact at 519', dolomite, then LS. "Intrusive dike" 680-685'. Diabase dikes 815-825, 850-870, 925-950'|
|315||335||20||101||0.003||Note: lost core 300-315'|
|XMC-9C||1483||160||190||30||217||0.006||Stratigraphy not clear from descriptions. Marble at 1415' but goes back to qzt. A lot of carbon and crushed zones throughout hole. Interval of 0.006 opt Au is Ov fault.|
|522.5||523.5||1||1045||0.03||Fault zone in Ov|
|705||720||15||447||0.013||Note: 10' lost core in interval|
|XMC-10C||1700||60||65||5||134||0.004||Lower plate probably at 1366'. "Lapilli tuff" 390-420', 560-585'. Porphyry 670-770'. Logged as mostly bxa 830-1105'.and 1315-1375' then into limestone. Enter lower plate 1375', becomes marbley 1530' to EOH in Ohc?. Py and C present.|
Reference Cited: McGibbon, Douglas H., 2011, Mill Creek Summary Report; McGibbon Consulting LLC,
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