RAINBOW AURORA INDIAN PROPERTIES Goodpaster Mining District, Alaska

Transcription

1 RAINBOW AURORA INDIAN PROPERTIES Goodpaster Mining District, Alaska Prepared by: Carl Schaefer CPG# Northern Associates, Inc. February, 2006 Tonogold Resources, Inc La Jolla Boulevard La Jolla, California Tel (report updated with new property lessee December 2006)

2 INTRODUCTION The, and Indian (RAI) claim blocks are situated 80 air miles southeast of Fairbanks and 2.5 miles west of Teck-Cominco s Pogo gold deposit in the Goodpaster Mining District of east central Alaska. Each claim block consists of active State of Alaska mining claims located in the Big Delta B-2 and B-3 1:63,360 Quadrangles. Limited prospecting has found elevated gold and trace elements in a sporadic suite of rock and soil samples on the properties. Quartz vein float samples with up to 2.4 g/t gold and anomalous arsenic and bismuth are found from prospected slopes less than 3 miles from the Pogo mine, on trend to the east. In December, 2006, Tonogold Resources has leased these under explored mining claims which lie in close proximity to the 3.6 million ounce Pogo deposit (probable reserve quoted from ). This summary report and maps were prepared by Carl Schaefer of Northern Associates, Inc. (NAI) from published data and proprietary data supplied by the property owners. Maps and geochemical data were assembled from certified lab reports from Bondar Clegg, ALS Chemex, Legend, Inc., and Alaska Assay Labs. Neither the author nor NAI was involved in field work associated with the property owners and cannot testify to the practices or methodologies employed. NAI employees performed limited sampling during 2003 on behalf of AngloGold (U.S.A.) Exploration, Inc. BACKGROUND Local prospectors, John Hansen, Dave Wright, and Bill Johnson, have been prospecting in the Goodpaster Mining District since the mid-1970 s starting at Tibbs Creek, Black Mountain and Central Creek. They moved on to prospecting the Goodpaster River area, particularly areas near Liese and Pogo Creeks in the 1980 s and concluded the area was very promising but beyond their means to adequately explore such a large area. In the winter of , rumors of the Pogo discovery filtered back to the community of Delta, which renewed their interest in the area and upon researching the existing claim picture they found that a substantial part of their original area of interest remained open. Using snowmachines, skis, and snowshoes, they staked the RAI properties which they feel are the most geologically significant claims outside of the Pogo deposit itself. Working strictly out-of-pocket, these individuals carried out grassroots exploration efforts that began in 1999 and has since identified areas of anomalous gold in soil and rock. In 2002, AngloGold (U.S.A.) Exploration, Inc. signed lease agreements with the owners that consolidated the RAI claim groups with AngloGold s existing nearby properties forming a large land package west of Pogo. Only limited reconnaissance level sampling was completed on portions of the and blocks by AngloGold. Their focus was on the Indian block and this received only 4 man-days of soil sampling along ridgelines in AngloGold declined to continue the lease after the 2003 season, as they were primarily focused on their nearby claim blocks.

3 PROPERTY The claims consist of three separate blocks that are partially contiguous and located 2.5 miles west of the Pogo deposit (figure 1). The Indian claims (2 square miles 32 state claims) are held by Dave and Sharon Wright, and Bill Johnson. The claims (1 square mile 4 MTRSC state claims; conversions in progress by DNR) are held by Dave and Sharon Wright. The claims (1 square mile 4 MTRSC state claims) are held by John and Beau Hansen. The owners are all long time friends and work cooperatively to explore and develop the claim blocks. All claims are located on State of Alaska lands and are currently active and in good standing. GEOLOGY (based on Werdon et. al., 2004) The RAI properties, as mapped by State geologists, are underlain predominately by pre-mississippian paragneiss with lesser schist and quartzite, and Mississippian-Devonian orthogneiss rock packages (figure 1), which both typically only crop out along prominent ridges. In general, foliation within the paragneiss strikes westerly and dips moderately to the south. Cretaceous age granite, granodiorite and tonalite plutons are mapped and in close proximity to the RAI properties. The granodioritic Goodpaster Batholith (Cretaceous) underlies a corner of the Indian block and extends further to the north and east. The block is underlain by paragneiss (pmp), schist, and quartzite (pmsp) with minor orthogneiss (MDogd). Several early Tertiary basaltic dikes were noted by AngloGold geologists. The Indian block is predominately underlain by orthogneiss (MDot and MDog), which is the same unit hosting the nearby Pogo deposit. Granodioritic phases of the Goodpaster Batholith lie along the northern edge of the claim block. The block consists mostly of paragneiss (pmp), hornfels surrounding a 96.5 to 99 Ma tonalite (Ktn), and lesser orthogneiss (MDogd). The tonalite is of the same age and composition as the block faulted tonalite proximal to the Pogo deposit and often locally referred to as the Pogo diorite. The northwest trending gneissic packages and tonalite are easily linked between and Pogo after restoring the inferred off-set along the intervening faults. A small moderately sericite-carbonate altered Cretaceous (?) granodiorite/quartz monzonite dike was noted by AngloGold geologists in the northwestern corner of the claim block. AngloGold described areas of alteration of the gneiss units on the property as consisting of localized moderate to strong silicification, sulfidation, sericite +/- carbonate alteration and small-scale quartz veining often associated with weak pervasive iron oxide staining. GEOCHEMISTRY (figures 3 to 6) Quartz veins with disseminated arsenopyrite are found in float along the western edge of the Block near the mapped contact between the paragneiss, orthogneiss, and tonalite. These veins contain up to 2.4 g/t gold with high arsenic (>10,000ppm) and anomalous bismuth (27ppm). Higher up this slope and along the ridgeline connecting with the block are several rock samples with

4 anomalous gold (~150ppb), arsenic, and bismuth. Soil samples collected in this area are also anomalous in gold (25-50ppb) and arsenic. Systematic soil grid sampling would better define targets in this talus and vegetation covered area. In 2003 AngloGold spent 4-man days soil sampling along ridgelines in the Indian block and returned uniformly low gold (up to 17ppb) and trace element values. Limited sampling by the property owners has identified anomalous gold in soil to 31ppb. A series of standard -80 mesh stream sediment samples collected by AngloGold in 2002 identified anomalous gold (10, 11, and 12ppb), arsenic and detectable bismuth and tellurium from the two east-west oriented creeks draining the and southern blocks. Another stream sediment sample returned 23ppb gold, 198ppm arsenic, 30ppm antimony, with detectable bismuth and tellurium from a small stream draining the northwest corner of the block. Only sporadic sampling since 1999 has occurred on the RAI properties. Almost all of the soil and rock samples were collected by the property owners, and only as time away from full-time work schedules and money allowed. No systematic soil or rock survey has been done on the and blocks, leaving a large area of unexplored ground open to evaluation. GEOPHYSICS In 1999 and again in 2004 the State of Alaska funded an airborne geophysical survey over a large portion of the Goodpaster Mining district (Burns et. al., 2000 and 2005) that encompassed the RAI claim blocks. The survey collected magnetic, conductive and radiometric data at 400m line spacings with 5km spaced tie lines. Figure 7 displays the total field magnetics with contacts and faults displayed from the 2004 State mapping (Werdon, et. al., 2004). Hornfels surrounding a mapped tonalite is well defined as strongly magnetic (red to purple) on the block with weak magnetic (green to blue) responses coming from the paragneiss and orthogneiss packages proximal to the RAI properties. The large magnetic response on the northern half of the block may indicate a shallow unexposed hornfels and associated intrusion similar to the tonalite found on the block. Of particular interest are the similar magnetic signatures found at the Pogo deposit and its nearby tonalite, to the signatures found on the RAI properties. CONCLUSIONS The RAI properties control mineral rights in a highly favorable location, with prospective geology and geophysical signatures similar to the 3.6 million ounce Pogo deposit located only 2.5 miles to the east. The discovery of gold bearing quartz veins (up to 2.4 g/t Au) with bismuth and arsenic signatures indicating close proximity to an intrusive-hydrothermal source, warrant a systematic followup program of exploration. Work to date on the RAI claim blocks has been sporadic leaving a large area of under evaluated ground worthy of immediate attention.

5 REFERENCES Burns, L.E., Geoterrex-Dighem, and Stevens Exploration Inc., 2000, Total magnetic field of the Salcha River-Pogo mining area, central Alaska: Alaska Division of Geological & Geophysical Surveys Geophysical Report , 2 sheets, scale 1:63,360. Burns, L.E., Fugro Airborne Surveys, and Stevens Exploration Management Corp., 2005, Total magnetic field of part of the Goodpaster River area, Goodpaster mining district, Interior Alaska: Alaska Division of Geological & Geophysical Surveys Geophysical Report A, 1 sheet, scale 1:63,360. Werdon, M.B., Newberry, R.J., Athey, J.E., and Szumigala, D.J., 2004, Bedrock geologic map of the Salcha River-Pogo area, Big Delta Quadrangle, Alaska: Alaska Division of Geological & Geophysical Surveys Report of Investigation B, 19 p., 1 sheet, scale 1:63,360. AngloGold (U.S.A.) Exploration, Inc., -Indian and Property Reports, Goodpaster Mining District, Alaska, 2002 and 2003.

6 Figure 1. Regional Geology Indian Ku, Ktn, Ka - tonalite, qtz-alkalic, granitic plutons Kgp, Kgpb - granodiorite (Goodpaster Batholith) KJmp, KJm - metagranitic plutons MDog, MDogd, MDot - orthogneiss MzPza - hornblende-rich orthogneiss pmql, pmp, pmsp, pmsq - schist, quartzite, paragneiss pmaw - amphibolite 40Ar-39Ar ages for Ktn at : 96.5 ± 0.9 Ma (biotite) 99.2 ± 1.1 Ma (hornblende) Geology from: Werdon, M.B., Newberry, R.J., Athey, J.E., and Szumigala, D.J., 2004, Bedrock geologic map of the Salcha River-Pogo area, Big Delta Quadrangle, Alaska: Alaska Division of Geological & Geophysical Surveys Report of Investigation B, 19 p., 1 sheet, scale 1:63,360.

7 Figure 2 Sample Locations and Gold Geochemistry Indian Soil/Silts by Au (ppb) 50 to 100 (7) 25 to 50 (10) 10 to 25 (47) 0 to 10 (45) -10 to 0 (65) Rocks by Au (ppb) 500 to 10,000 (2) 100 to 500 (5) 50 to 100 (6) 10 to 50 (17) 0 to 10 (6) -5 to 0 (33) Unanalyzed Samples Rock (38) Soil (66) Silt (7) 0 0.5

8 Figure 3 Gold Geochemistry - & Blocks Soil/Silts by Au (ppb) 2.4g/t 1.7g/t 50 to 100 (7) 25 to 50 (10) 10 to 25 (47) 0 to 10 (45) -10 to 0 (65) Rocks by Au (ppb) 500 to 10,000 (2) 100 to 500 (5) 50 to 100 (6) 10 to 50 (17) 0 to 10 (6) -5 to 0 (33) Unanalyzed Samples Rock (38) Soil (66) Silt (7)

9 Figure 4 Arsenic Geochemistry - & Blocks Soil/Silts by As (ppm) 400 to 1,000,000 (2) 200 to 400 (6) 100 to 200 (34) 50 to 100 (41) 5 to 50 (85) -10 to 5 (6) Rocks by As (ppm) 500 to 10,000 (5) 250 to 500 (3) 100 to 250 (9) 50 to 100 (7) 5 to 50 (24) -5 to 5 (21)

10 Figure 5 Antimony Geochemistry - & Blocks Soil/Silts by Sb (ppm) 20 to 10,000 (3) 10 to 20 (4) 5 to 10 (25) 2 to 5 (28) -10 to 2 (112) Rocks by Sb (ppm) 100 to 10,000 (3) 50 to 100 (3) 25 to 50 (12) 10 to 25 (5) 2 to 10 (20) -5 to 2 (26)

11 Figure 6 Bismuth Geochemistry - & Blocks Soil/Silts by Bi (ppm) 7 to 100 (3) 6 to 7 (7) 5 to 6 (14) 0 to 5 (66) -10 to 0 (84) Rocks by Bi (ppm) 9 to 10,000 (3) 8 to 9 (1) 6 to 7 (1) 5 to 6 (1) -5 to 5 (63)

12 Figure 7 Total Field Airborne Magnetics & Geology Kgpb Indian Kgp Kgp KJmp pmp MDog Ku KJmp KJmp pmp MDot Ku Ku MzPza pmp MDogd MDog KJm pmsp Ktn Kt Pogo l pmaw Ktn MDot MDog MDogd MDog pmp MDogd Ktn MDog Geophysics from: Burns, L.E., Fugro Airborne Surveys, and Stevens Exploration Management Corp., 2005, Total magnetic field of part of the Goodpaster River area, Goodpaster mining district, Interior Alaska: Alaska Division of Geological & Geophysical Surveys Geophysical Report A, 1 sheet, scale 1:63,360. Geology overlay from: Werdon, M.B., Newberry, R.J., Athey, J.E., and Szumigala, D.J., 2004, Bedrock geologic map of the Salcha River-Pogo area, Big Delta Quadrangle, Alaska: Alaska Division of Geological & Geophysical Surveys Report of Investigation B, 19 p., 1 sheet, scale 1:63,360. Total Field Magnetics High nt Low mapped contact mapped fault G S c