美国锑业公布阿拉斯加Nolan Creek锑金矿S-K 1300技术报告并启动约千吨地下试采，M&I资源原地价值宣称超3.14亿美元

----- tm2628217d1_8k.htm -----
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported)
October 26, 2026
UNITED
STATES ANTIMONY CORPORATION
(Exact
name of registrant as specified in its charter)
Texas
001-08675
81-0305822
(State or other jurisdiction
of incorporation)
(Commission
File No.)
(IRS Employer
Identification Number)
4438
W. Lovers Lane
,
Unit
100
,
Dallas
,
TX
75209
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including
area code:
(
406
)
606-4117
Not Applicable
(Former name or former address, if changed since
last report.)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of
the Act:
Title
of each class
Trading
Symbol(s)
Name
of each exchange on which
registered
Common
Stock, $0.01 par value
UAMY
NYSE
Common
Stock, $0.01 par value
UAMY
NYSE
Texas
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
¨
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
¨
Item 7.01 Regulation FD Disclosure.
On October 26, 2026, the Company issued a press
release announcing the completion of a new technical report summary on its Nolan Creek Property located in the State of Alaska. A copy
of the press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The information in this Item 7.01, including Exhibit
99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated
by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific
reference in such filing.
Item 8.01 Other Events.
On October 26, 2026, United States Antimony Corporation
(the “
Company
”) provided an operational update on it’s Nolan Creek Project, a mining claim prospective for both
antimony and gold, located in northern Alaska, approximately 175 miles north of Fairbanks, Alaska, by making available a Technical Report
Summary (“
TRS
”) titled “Initial Assessment and Estimation of Placer Gold Lode Antimony-Gold Resources, Nolan
Creek Area Wiseman District Alaska” for the property, with an original effective date of July 29, 2008 and subsequently amended
as of September 15, 2026. The TRS has recently been prepared and completed in accordance with the requirements of subpart 1300 of
Regulation S-K.  Both TRS documents were completed by Mr. Thomas K. Bundtzen, President of Pacific Rim Geological Consulting, Inc.,
who is a “Qualified Person” as such term is defined in subpart 1300 of Regulation S-K. The Nolan Creek Property was acquired
by the Company at a public auction on January 30, 2026.
The Nolan Creek Project is directly owned by Great
Land Minerals (“
GLM
”), a wholly-owned subsidiary of the Company.
For a complete description of the Nolan Creek
Project, see the TRS, which is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Cautionary Note Regarding Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking
statements. Forward-looking statements reflect management’s current knowledge, assumptions, judgment, and expectations regarding
future performance or events. Although management believes that the expectations reflected in such statements are reasonable, they give
no assurance that such expectations will prove to be correct, and you should be aware that actual events or results may differ materially
from those contained in the forward- looking statements. Words such as "will," "expect," "intend," "plan,"
"potential," "possible," "goals," "accelerate," "continue," and similar expressions
identify forward-looking statements.
Forward-looking statements are subject to a number
of risks and uncertainties including, but not limited to, those described in the Company’s filings on Form 10-K, Form 10-Q, and
Form 8-K with the United States Securities and Exchange Commission.
All forward-looking statements are expressly
qualified in their entirety by this cautionary notice. You should not rely upon any forward-looking statements as predictions of future
events. The Company undertakes no obligation to revise or update any forward-looking statements made in this Current Report on Form 8-K
to reflect events or circumstances after the date hereof, to reflect new information or the occurrence of unanticipated events, to update
the reasons why actual results could differ materially from those anticipated in the forward-looking statements, in each case, except
as required by law.
Item 9.01 Financial Statements and Exhibits.
(d)
Exhibits.
Exhibit
No.
Description
23.1
Consent of Thomas K. Bundtzen, Pacific Rim Geological Consulting, Inc.
99.1
Technical Report Summary on the Nolan Creek Property, Alaska
99.2
Press Release of United States Antimony Corporation, dated October 21, 2026
104
Cover Page Interactive Data File (embedded with the inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
UNITED STATES ANTIMONY CORPORATION
Dated:
October 26, 2026
By:
/s/ Shawn Winkler
Shawn Winkler
SVP and Chief Financial Officer

----- tm2628217d1_ex23-1.htm -----
EX-23.1
2
tm2628217d1_ex23-1.htm
EXHIBIT 23.1
Exhibit 23.1
Pacific Rim Geological Consulting, Inc.
P.O. Box 81906, Fairbanks, Alaska 99708
Phone 907 388 6607 Email:
Bundtzen@pacrimgeol.com
October 22, 2026
United States Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
Re: United States Antimony Corporation (USAC) – Consent of Qualified
Person
Ladies and Gentlemen:
Pursuant to the requirements of Subpart 1300 of Regulation S-K (17
CFR § 229.1300 et seq.) under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, I,
Thomas Bundtzen, hereby consent to:
1.
The public filing and use by United States Antimony Corporation (the "Company") of the technical report summary titled "SEC
S-K 1300 Technical Report Summary, Initial Assessment and Estimation of Placer Gold and Lode Antimony-Gold Resources, Nolan Creek
Area, Wiseman Mining District Alaska" dated October 6, 2026 (the "Technical Report Summary") as an exhibit to and
in connection with the Company's Form 8-K, and any other filings made by the Company with the U.S. Securities and Exchange Commission
(the "SEC").
2.
The use of my name, and any quotations from or summarization of the Technical Report Summary, in the Company’s SEC filings,
including any registration statements, annual reports, or prospectus supplements.
3.
The incorporation by reference of the Technical Report Summary, and references to my name or my status as a Qualified Person, into
any subsequently filed registration statements or amendments thereto.
I hereby confirm that I have read the relevant disclosures in the Company’s
filing(s) for which this consent is provided, and that the disclosure fairly and accurately represents the information, conclusions,
and mineral resource estimates contained in the Technical Report Summary for which I am responsible as a Qualified Person.
Sincerely,
Thomas K. Bundtzen
Qualified Person (QP)
AIPG Certified Professional Geologist (CPG) #10912
Alaska Certified Professional Geologist #592
1

----- tm2628217d1_ex99-1.htm -----
EX-99.1
3
tm2628217d1_ex99-1.htm
EXHIBIT 99.1
Exhibit 99.1
REPORT
SEC S-K 1300 Technical Report Summary
Initial Assessment and Estimation
of Placer Gold and Lode Antimony-Gold Resources, Nolan Creek Area, Wiseman Mining District Alaska
Submitted to:
U.S. Antimony Corporation (USAC)
4438 West Lovers Lane, Suite 100,
Dallas Texas 75209 USA
Submitted by:
Pacific Rim Geological Consulting, Inc.,
P.O. Box 81906, Fairbanks, Alaska
USA 99708 1 907 388 6607
E-Mail:
Bundtzen@pacrimgeol.com
October 2
nd
, 2026
TABLE OF CONTENTS
Date
and Signature Page
9
1.0
EXECUTIVE
SUMMARY
11
1.1
Property
Description and Ownership
11
1.2
Geology
and Mineralization
11
1.3
Status
of Exploration
12
1.4
Development
and Operations
12
1.5
Mineral
Resource Estimate
13
1.6
Mineral
Reserve Estimate
14
1.7
Mining
Methods
14
1.8
Processing
and Recovery Methods
14
1.9
Capital
and Operating Costs
14
1.10
Economic
Analysis
14
1.11
Infrastructure
14
1.12
Permitting
Requirements
15
1.10
Qualified
Person’s Conclusions and Recommendations
15
2.0
INTRODUCTION
18
2.1
Registrant
Information
18
2.2
Terms
of Reference and Purpose
18
2.3
Sources
of Information
18
2.4
Personal
Inspection Summary
19
2.5
Previously
Filed Technical Report Summary Reports
20
2.6
Units
of Measure
20
3.0
PROPERTY
DESCRIPTION
21
3.1
Nolan
Creek area claims
21
4.0
ACCESSIBILITY,
CLIMATE, LOCAL INFRASTRUCTURE, AND PHYSIOGRAPHY
24
4.1
Topography
and Land Description
24
4.2
Access
to the Property
24
4.3
Climate
Description
24
4.4
Vegetation
and Land Use
26
2
4.5
Availability
of Required Infrastructure
27
5.0
HISTORY
29
5.1
Mining
History of the Area
29
5.2
Drilling
Exploration Summary
29
5.3
Historical
Production
31
6.0
GEOLOGICAL
SETTING, MINERALIZATION AND DEPOSIT
33
6.1
Regional
Geology
33
6.2
Local
and Property Geology
34
6.3
Alteration
and Mineralization
36
6.4
Deposit
Types
36
7.0
EXPLORATION
39
7.1
Exploration
of Heavy Mineral Placer deposits
39
7.2
Nolan
Antimony-Gold Lode Deposits
39
8.0
SAMPLE
PREPARATION, ANALYSIS, AND SECURITY
60
8.1
Site
Sampling, Preparation Methods and Security
60
8.2
Laboratory
Sample Preparation Methods and Analytical Procedures
65
8.3
Quality
Control and Quality Assurance Programs
66
8.4
Qualified
Person’s Opinion Regarding Sample Preparation, Security and Analytical Procedures
67
9.0
DATA
VERIFICATION
68
9.1
Exploration
and Mineral Resource Data Verification
68
9.2
Exploration
Data Limitations
70
10.0
MINERAL
PROCESSING AND METALLURGICAL TESTING
71
10.1
Placer Deposits
71
10.2
Lode Deposits
74
10.3
Trace Element Content of Nolan Mineralization
78
10.4
Recovery Estimates
81
10.5
Qualified Person’s Opinion
81
11.0
MINERAL
RESOURCE ESTIMATES
82
11.1
Disclosure
82
11.2
Key Assumptions, Parameters, and Methods
82
3
11.3
Mineral
Resource Estimate
84
11.4
Measured
Lode Antimony-Gold Resource at Nolan Creek
94
11.5
Indicated
Lode Antimony-Gold Resource Estimate at Nolan Creek
101
11.6
Inferred
Lode Antimony-Gold Resource Estimate at Nolan Creek
105
11.7
Mineral
Resource Uncertainty Discussion
115
11.8
Assumptions
for Multi-Commodity Mineral Resource Estimate
119
11.9
Qualified
Person’s Opinion on Factors that Influence Economic Extraction
120
12.0
MINERAL RESERVE
ESTIMATES
121
13.0
MINING METHODS
122
14.0
PROCESSING AND RECOVERY
Methods
123
15.0
INFRASTRUCTURE
124
15.1
Previous
Production Infrastructure on property
124
15.2
Present
State of Infrastructure on Property
124
16.0
MARKET STUDIES
125
17.0
ENVIRONMENTAL STUDIES,
PERMITTING, AND PLANS, NEGOTIATIONS OR AGREEMENTS WITH LOCAL INDIVIDUALS OR GROUPS
126
17.1
Geotechnical-Environmental
Studies
126
17.2
Hydrological
Studies
128
17.3
Environmental
Monitoring
130
17.4
Water
Management Plan
130
17.5
Mine
Closure
130
17.6
Permitting
131
17.7
Plans,
Negotiations, or Agreements with Local Individuals or Groups
134
17.8
Descriptions
of any commitments to ensure local hiring
134
17.9
Qualified
Person’s Opinion
134
18.0
CAPITAL AND OPERATING
COSTS
135
19.0
ECONOMIC ANALYSIS
136
20.0
ADJACENT PROPERTIES
137
21.0
OTHER RELEVANT DATA
AND INFORMATION
138
22.0
INTERPRETATION AND
CONCLUSIONS
139
22.1
Mineral
Resources
139
4
22.2
Environmental,
Permitting and Social
139
22.3
Mineral
Processing
139
22.4
Mineral
Reserves
140
23.0
RECOMMENDATIONS
141
23.1
Mineral
Resources
141
23.2
Environmental,
Permitting and Social
144
23.3
Geotechnical
144
23.4
Mineral
Processing
144
23.5
Tailings
Storage Facility
145
23.6
Mineral
Reserves
145
24.0
REFERENCES
146
25.0
RELIANCE
ON INFORMATION PROVIDED BY REGISTRANT
153
26.0
APPENDIX
I
154
27.0
APPENDIX
II
168
Figures
Figure 3.1
Map of the thirty-six (36)
federal claims purchased by USAC, January 2026
23
Figure 3.2
Forty-eight (48)
Alaska State Claims covering the Nolan Creek area 2026
23
Figure 4.1
Nolan Creek location map, showing
access features to claims held by USAC
25
Figure 4.2
Coldfoot Camp, 06 13 2026;
USAC vehicle in foreground; photo by QP
26
Figure 4.3
Main Street of Wiseman Village
on 06 13 2026. Photo by QP
27
Figure 4.4
Nolan Mine Camp as it appeared
during spring, 2008; From QP files
28
Figure 5.1
Prospector #3 Multi-Purpose
NQ Core Drill
TM
, October 22, 2007; QP files
30
Figure 5.2
Low profile truck used in underground
placer mining, circa 2006; from QP
32
Figure 5.3
Washing plant washed pay gravels
from 2005-2007, Swede Channel project
32
Figure 6.1
Geologic map of the Nolan Creek
area; from Dillon and Reifenstuhl (1990)
35
Figure 6.2
Photomicrographs, Workman’s
Bench mineralized system
38
Figure 7.1
Location Map Showing Locations
of 771 placer drill collars, Nolan Creek
40
Figure 7.2
Plan of Swede Channel Underground
Development; 2005-2006
41
Figure 7.3
Plan of Mary’s East Underground
Development and Exploration Drilling
42
Figure 7.4
Contour map from drill data
and underground workings in Nolan Creek Valley
43
5
Figure 7.5
A—gold concentrate
rich in stibnite; B—placer nuggets of gold plus stibnite
43
Figure 7.6
Map of Nolan Creek Basin with
870 Khz geophysical (resistivity) anomaly
44
Figure 7.7
Soil sample locations on Workman
Bench-Pringle Bench area
45
Figure 7.8
1994 inaugural percussion (RC)
drill hole results for Workman’s Bench
47
Figure 7.9
Selected Stibnite-bearing intervals
in 2008 and 2009 diamond drill hole
48
Figure 7.10
Schematic of Workman’s
Bench, showing locations of drill holes
54
Figure 7.11
Schematic, cross section A-A’,
southern portion of Workman’s Bench
55
Figure 7.12
Schematic, cross section B-B’
in the central portion, Workman’s Bench
56
Figure 7.13
Schematic, cross section C-C’
in northern portion Workman’s Bench
57
Figure 7.14
Schematic plane view of Pringle
Bench, showing locations of drill holes
58
Figure 7.15
Schematic, cross sectional
profile D-D’ on Pringle Bench
59
Figure 8.1
Geologists collect channel
sample underground, Workmen’s Bench
62
Figure 8.2
Location, underground channel
samples, Workman’s Bench
63
Figure10.1
Side view of 2007 Nolan washing
plant
72
Figure10.1
Plan view of 2006 Nolan wash
plant
73
Figure 10.3
Tabled Concentrate from Workman’s
Bench analyzed Hazen Research Labs
75
Figure 10.4
Hazen mineralogical separation
process flowchart for Workman’s Bench
76
Figure 10.5
Gold (bright color) in stibnite
(gray), Workman’s Bench Bulk sample
77
Figure 10.6
Stibnite-gold concentrates
from table products from Nolan Bulk Sample
78
Figure 10.7
Drill plan showing the locations
of mercury analyses, 2008 core drilling
80
Figure11.1
Location of placer-style gold
mineral resource estimates, Nolan Creek
85
Figure11.2
Polygon layout for D-Block
#1 and 3B3-Block indicated resources placer gold
88
Figure 11.3
Histogram plots of antimony
(on left) and gold (on right) distribution
91
Figure 11.4
As-Au and Sb-Au correlations
for assay results Workman’s Bench
91
Figure 11.5
Surface view of Workman’s
bench mineralized zones with drill collars
95
Figure 11.6
Measured resource polygons
for ‘A’ Zone, Workman’s Bench, Nolan Creek
96
Figure 11.7
Measured resource polygons
for ‘B’ Zone, Workman’s Bench
98
Figure 11.8
Measured resource polygons
for ‘West’ Zone, Workman’s Bench
100
Figure 11.9
Indicated Resource polygons
for ‘A’ Zone, Workman’s Bench, 2009 drilling
103
Figure 11.10
Indicated resource polygons
for B Zone, Workman’s Bench, 2009 drilling
104
Figure 11.11
Inferred Resource polygons
for ‘A’ Zone, Workman’s Bench
106
Figure 11.12
Inferred Resource polygons
for ‘B’ Zone, Workman’s Bench
107
Figure 11.13
Inferred Resource polygons
for ‘C’ Zone, Workman’s Bench
108
Figure 11.14
Surface view of Pringle Bench
mineralized zones trenches and drill locales
111
Figure 11.15
Inferred Resource polygons
for ‘A’ Zone, Pringle Bench; 2009 drilling
112
Figure 11.16
Inferred Resource polygons
for West Zone, Pringle Bench; 2009 drilling
113
Figure 11.17
Plan view image of Workman’s
bench ‘A’ Zone vein-fault. Scale 100 feet
117
Figure 11.18
Side profile of Workman’s
Bench ‘A’ Zone looking northwest; with Sb grade
118
6
Figure 15.1
A—Fuel
tank storage facility in 2009; B—Same Fuel tank storage in 2026
124
Figure 17.1
Land reclamation
conducted on previously mined Odgen-Eureka Bench
126
Figure
17.2
A—Underground
drift looking E/Se in 2008 Note near-horizontal, phyllitic schist bands in base and roof; B—portal on April 12
th
, 2008. Photos from QP files
128
Figure 17.3
Core logging
summary from 2007 core drilling, showing acidity
129
Figure
17.4
A--Inside
machine shop as it appeared in 2006; note dirt floor in shop; B—inside machine shop as it appeared in 06 13 2026—both
from QP files
131
Figure 23.1
Priority
1 work program for Workman’s Bench
141
Figure
23.2
Priority
II program for Pringle Bench
142
Figure 23.3
Removal of
overburden on Pringle Bench with hydraulic technology
142
Figure 23.4
Pringle Bench
mineralized surface exposed by removal of overburden
143
Figure 23.5
USAC manger
Rodney Blakestad inspects drill core storage facility
143
Tables
Table 2. 1
Units of measure
used in this Technical Report
20
Table 3.1
Legal Description the Federal
Mining Claims acquired by USAC, January, 2026
22
Table 5.1
Summary of lode drilling programs,
Nolan Creek
30
Table 5.2
Placer gold production from
Silverado properties, 1979 to 2007, Nolan Creek
31
Table 7.1
Summary of lode exploration
activities, Nolan Creek, 1981-to-2009
46
Table 7.2
Collar location and data, Pringle
Bench, 2006-2009 Exploration
49
Table 7.3
Collar location and data, Workman’s
Bench; 2007-2009 Exploration
50
Table 8.1
Drill hole intersection summary
for 3B3-Block
61
Table 8.2
Table of selected sample composites,
Workman’s Bench drill program
64
Table 9.1
Duplicate analytical comparisons
between QP and contractor samples
68
Table 9.2
List of Duplicate Samples,
Workman’s Bench Drilling Program 2008
69
Table 10.1
Composition of the Heavy-Liquid
Sink Product
77
Table 10.2
Stibnite quality comparative
characteristics from Amalgamet-Canada
81
Table 11.1
Reconciliation of estimated
gold content for two selected placer deposits
86
Tables 11.2
D Block #1 Below Discovery
and 3B3 Block indicated resource estimates
87
Table 11.3
Placer deposit indicated mineral
resources, USAC Nolan Creek claims
89
Table 11.4
Characteristics of indicated
resources-measured resources versus inferred resources, Nolan Creek antimony-gold deposits, Alaska
89
Table 11.5
Analysis of high grade, gold
intervals, Workman’s/Pringle Bench
92
Table 11.6
Specific gravity (SG) measurements
(ASTM C 127) for Workman’s Bench
94
Table 11.7
Measured lode mineral resource,
Workman’s Bench, Nolan Creek
94
Table 11.8
Polygonal measured resource
block summary, ‘A’ Zone, Workman’s Bench
97
Table 11.9
Polygonal probable resource
for ‘West’ Zone, Workman’s Bench
99
7
Table 11.10
Data for probable
resource in ‘A’, ‘B’ and ‘West’ Zones, Workman’s Bench
101
Table 11.11
Indicated resource summary
2009 drill program, A-Zone, Workman’s Bench
102
Table 11.12
Indicated resource summary
2009 Drill Program, B-Zone, Workman’s Bench
102
Table 11.13
Measured and Indicated lode
resources, Workman’s Bench
105
Table 11.14
Total inferred lode mineral
resources, Workman’s Bench and Pringle Bench
105
Table 11.15
Polygonal Block Inferred Resource
Estimate for ‘C Zone’, Workman’s Bench
109
Table 11.16
Polygonal Inferred Resource
Estimate ‘A Zone’, Workman’s Bench
109
Table 11.17
Polygonal Inferred Resource
Estimate ‘West Zone’, Workman’s Bench
109
Table 11.18
Polygonal Block inferred resource
estimate for ‘B-Zone’, Workman’s Bench
109
Table 11.19
Summary of Inferred Antimony
and Gold Resources From Workman’s Bench
110
Table 11.20
Polygonal inferred resource
‘A’ Zone, Pringle Bench Bundtzen (2009)
114
Table 11.21
Polygonal inferred resource
Pringle bench, A-Zone, Bundtzen (2011)
114
Table 11.22
Polygonal inferred resource
calculation for ‘West’ Zone, Pringle Bench
114
Table 11.23
Polygonal inferred resource
from 2009 Drill Program, West-Zone, Pringle Bench
115
Table 11.24
Total Inferred Lode Mineral
Resource calculation, Pringle Bench
115
Table 11.25
Proven Indicated Resources
calculated by Vulcan
TM
118
Table 11.26
Comparative Results of Polygonal
Method versus Vulcan
TM
block model
119
Table 17.1
Results of Field Rinses of
samples, Nolan Lode Project
133
Table 17.2
Underground sampling program
for ML/ARD Program, Nolan Camp, 2008
133
Appendices
APPENDIX I: Summary
of Relevant Sample Data Used in Calculation of all Categories of Sb and Au Resources from Workman’s Bench That are Described
in this Technical Report; Including Relevant Trace Element Data
154
APPENDIX II Summary of Relevant
Sample Data Used in Calculation of Inferred Sb and Au Resources from Pringle Bench that are described in this Technical Report
168
8
DATE AND SIGNATURE PAGE
The effective date of the Mineral Resources
Estimates is October 6
th
, 2026
Author and
Sections
Signature
Qualified
Person
Thomas K. Bundtzen
All Sections
/s/ Thomas K. Bundtzen
The qualifications and relevant experiences
of the QP is summarized below:
Thomas K. Bundtzen (the QP):
§
Education:
B.S.
Geology, 1973 College of Earth Science and Mineral Industries (CESMI), University of Alaska-Fairbanks.
M.S.
Economic Geology, 1981, Department of Geology and Geophysics, University of Alaska-Fairbanks.
§
Years of Experience
Twenty-five
(25) years as senior economic geologist with the Alaska Division of Geological and Geophysical Surveys (1972-1997).
Twenty-eight (28) years as
President and Principal Economic Geologist with Alaska-based firm Pacific Rim Geological Consulting, Inc. based in Fairbanks, Alaska
USA (1998-2026.
§
Relevant Experience
During 1979-1981, the QP completed
his M.S. Thesis in the Kantishna Mining district of Interior Alaska and studied four stibnite-gold deposits, including the Stampede mine,
Alaska’s largest historic producer of antimony. Since 1980, the QP has studied and sampled semi-massive stibnite vein deposits
in the Fairbanks, Tok, Iditarod, Cape Nome, Ruby and Innoko mining districts of Interior and Western Alaska.
9
While participating in an
International Minerals Exchange between the U.S. Geological Survey, Soviet (later Russian) Ministry of Natural Resource, the Alaska Division
of Geological and Geological Survey, and the Geological Survey of Canada (1989-1997), the QP examined stibnite deposits and mines throughout
the Russian Far East.
From 2004-2011, the QP conducted
field investigations in the Fairbanks and Wiseman districts and has written Technical Reports for the firm Silverado Gold Mines Ltd.,
the former owner of the claims in Nolan Creek valley now held by USAC. These include the Workman’s Bench and Pringle Bench antimony-gold
lode deposits, which are the principal subjects being reviewed in this Technical Report. A Technical Report summarizing placer resources
and initial lode resource estimates was prepared by the QP in 2008. Subsequently Canadian National Instrument NI 43-101 Technical Reports
on the Nolan Creek and antimony-gold deposits were released in June, 2009, and subsequently amended in July, 2011.
10
1.0     EXECUTIVE SUMMARY
1.1        Property
Description and Ownership
This Technical Report summarizes the
geologic framework, and mineral resources as an initial assessment placer gold resources and the Workman’s Bench and Pringle Bench
antimony-gold lode deposits owned by Great Land Minerals LLC (GLM) a wholly owned subsidiary of the United States Antimony Corporation
(USAC) in the Nolan Creek area (Nolan Creek) of the historic Koyukuk Mining District. According to government reports
,
historic
mineral production in the area is about 350,000 oz of placer-style gold and a small amount of stibnite (ore of antimony) since 1894.
Nolan Creek is about 175 mi (280 km) north-northwest of Fairbanks, Alaska. This analysis focuses on the lode antimony-gold deposits owned
by GLM/USAC.
Nolan Creek is part of the Koyukuk Mining
District, which covers about 12,500 sq mi (32,000 km
2
) of northern Alaska. The district is bounded on the east by the South
Fork of Koyukuk River, the Alatna River on the west, the continental divide of the Brooks Range on the north, and the Kanuti River Basin
on the south. Nolan Creek is at the center of the Koyukuk Mining District. Elevations in the area range from 4,635 ft (1420 m) on Vermont
Dome to about 1,220 ft (370 m) on the floodplain of the Middle Fork of the Koyukuk River.
GLM acquired thirteen (13) lode and
twenty-three (23) placer federal mining claims in Nolan Creek valley through a Trustee’s sale in a public auction on January 30
th
,
2026. The properties had been previously owned by Silverado Gold Mines Ltd. (Silverado) a Canadian public company based in Vancouver,
British Columbia, which conducted exploration and mining placer gold deposits and exploration of lode targets from both surface and underground
operations from 1979-to-2009. Silverado operated in Alaska vis it’s wholly owned U.S. subsidiary Silverado Gold Mines Inc. and
a private company, Tri-Con Mining Ltd.
During the fall of 2026, GLM staked
an additional forty-eight (48), 160-acre, State-of-Alaska mining claims that overlap the original Federal Mining Claims purchased at
auction in January. These new state claims were staked to cover open ground in the Nolan Creek area of interest as a result of the Pipeline
Corridor land transfer from Federal (U.S. Government) domain to State of Alaska domain. Acquisition by GLM of the Alaska state claims
depicted in Figure 3.2 will ensure that the original historic federal claims purchased by GLM from the 2026 auction are not compromised
by third parties as a result of the new federal-to state transfers being acted upon in the Pipeline Corridor. All of the mining claims
occur in the Wiseman B-1 USGS quadrangle of northern Alaska.
1.2        Geology and Mineralization
The bedrock geology of Nolan Creek is
dominated by units of the Brooks Range schist belt, a poly-deformed package of schist, greenstone, and orthogneiss. The schist belt is
part of the Coldfoot sub-terrane of the Arctic Alaska terrane, which underlies more than 75% of the south flank of the Brooks Range.
11
The Workman’s Bench and Pringle
Bench properties contain quartz-stibnite-gold veins that cut a high-angle, structurally controlled zone that is 150 ft to 300 ft wide
(45-to-91 m) and at least 1,600 ft (488 m) in length. These quartz-only and stibnite-quartz (gold) veins strike northeast and cross-cut
low angle cleavage at steep to vertical angles. Besides locally massive stibnite, the quartz-carbonate vein stock works also contain
arsenopyrite.
The gold-stibnite-quartz veins of Nolan
Creek Valley strongly resemble the gold-antimony deposit type (U.S. Geological Survey Deposit Model 36C). These deposits are characterized
by the presence of stibnite, berthierite, high fineness gold, and aurostibnite hosted in metamorphosed, quartz-carbonate-bearing, compressive
shear zones within low grade, greenschist facies metamorphic rocks. The deposit types are characterized by deformed, ductile fabrics
and tectonically re-crystallized, fine grained, granoblastic stibnite lobes and lenses.
The gold-antimony deposit type 36C
is considered to be a sub-type of the mesothermal, auriferous lodes found in mineral provinces worldwide. Mineral deposit type 36C
is not very well documented in North America but well studied in Asia, Europe, and Africa. Worldwide examples include deposits in
the Transvaal of South Africa, the Reefton District in New Zealand, and deposits in
Eastern Europe and in Russia. Olympiada
in Siberia is an example of a large, productive gold-stibnite deposit of this type. The Olympiada deposit is currently one of the
worlds’ largest producers of antimony—which is produced as a byproduct of the mainly gold-mining operation there. Placer
gold deposits eroding from the Sb-Au vein deposits have formed in valleys and on benches of Nolan Creek valley and the Hammond River
areas.
1.3        Status of Exploration
Most of the exploration on the property
occurred during 1979-2009, when the previous owner explored both placer and lode (hardrock) prospects in the Nolan Creek claim area.
From 1979-to-2006, Silverado drilled 910 reverse circulation (RC) holes totaling 58,756 feet (17,913 m) in search of placer gold resources.
About 90 percent of these drill holes were conducted on claims now owned by GML/USAC.
From 1981-to-2009, the previous owner
drilled seventy-two (72) relatively shallow (454 feet TD maximum) diamond drill core holes totaling 21,144 feet (6,446 m) to explore
the Workman’s Bench and Pringle Bench antimony-gold deposits. In addition, the previous owner conducted 70.28 line miles of VLF/EM)
geophysical surveys and 4,672 feet of trenching on the Workman’s Bench and
Pringle Bench antimony-gold deposits.
About 1,283 soil and stream sediment
samples have also been collected by the previous owner on the GLM property. To the QP’s knowledge, there has been no further exploration
of mineral resources on the property since 2011.
1.4        Development and Mine Operations
From 1979-to-2007, the previous owner
produced 23,150 oz placer gold from 271,771 yds3 of pay gravel from a variety of surface and underground placer mining operations. No
further development occurred after 2011.
12
1.5        Mineral Resource Estimate
Mr. Thomas K. Bundtzen, President
of Pacific Rim Geological Consulting Inc. (Pacific Rim), an independent Qualified Person (QP) for the writing of this Technical Report,
has estimated Indicated placer gold resources in Nolan Creek valley, and Measured, Indicated and Inferred lode antimony and lode
gold mineral resources on Workman’s Bench and Pringle Bench. No Mineral Reserves are included in this report. The QP reports only
Measured, Indicated, and Inferred Mineral Resources in this Initial Assessment of the subject property.
Indicated Placer gold mineral resources,
Nolan Creek
Resource
category
Cut-off grade
(oz/cu yd Au)
Quantity
(cu yd)
Grade
(oz/cu yd Au)
Metal
(oz Au)
Indicated
0.06
66,800
0.095
6,250
The effective date of these resources is July 29th, 2008; amended September 15th , 2026
Rounding may result in some discrepancies.
No processing recovery factors have been applied to these resources
The industry standard unit of quantity for Alaskan placer deposit is cubic yards. The weight of a cubic yard averages about 2.4 short tons.
Measured and Indicated lode antimony-gold
resources, Workman’s Bench
Resource
Cut-off
grade
Quantity
Grade
Metal
Grade
Metal
Category
(%
Sb)
(ton)
(%
Sb)
(ton
Sb)
(oz/ton
Au)
(oz
Au)
Measured
4.0
53,616
26.27
14,089
0.372
19,968
and
Indicated
The effective date of these indicated resources is July 12th, 2011; amended on September 16th, 2026
Cut-off grade is 4.0% Sb ‘equivalent’, which refers to the combined values of gold plus antimony expressed in terms of percent antimony.
Total Inferred lode mineral resources,
Workman’s Bench and Pringle Bench
Resource
Deposit
Cut-off grade
Quantity
Grade
Metal
Grade
Metal
Category
(% Sb)
(short tons)
(% Sb)
(ton Sb)
(oz/ton Au)
(oz Au)
Inferred
Pringle
4.0
12,817
19.61
2,513.8
0.499
6,390.4
Inferred
Workman’s Bench
4.0
19,642
11.17
2,127.0
0.273
5,362.1
Total Inferred
Workman’s Pringle Benches
4.0
32,459
14.29
4,640.8.5
0.362
11,752.5
The effective date of these resources is March 7th, 2011; amended September 18th, 2026 . Cut-off grade is 4.0% Sb ‘equivalent’, which refers to the combined values of gold plus antimony expressed in terms of percent antimony.
13
1.6        Mineral Reserve Estimate
No mineral reserve estimates have been
made by the QP on mineral properties described in this Technical Report.
1.7        Mining Methods
No mining methods have been recommended
by the QP for mineral properties described in this report.
1.8        Processing and Recovery Methods
No specific Processing and Recovery
Methods are recommended by the QP for the mineral properties described in this report; pending further acquisition of information by
GLM.
1.9        Capital and Operating Costs
No Capital of Operating Costs have been
made on the mineral properties in this Technical Report.
1.10      Economic Analysis
No economic analysis has been made on
the Nolan Creek properties for the purposes of this Technical Report.
1.11      Infrastructure
The previous owner
of the mineral property maintained a self-sufficient camp that included camp infrastructure capable of housing thirty (30) mine employees,
machine shops, and a diesel power plant (see Figure 4.4 of this Technical Report). A 2007 upgrade project included:
·
The
purchase and installation of a ten room housing unit;
·
The
construction of an engineering office;
·
The
upgrading of laboratory facilities;
·
The
installation of a new sewage treatment facility;
·
The
construction of a new kitchen and cafeteria; and
·
The
installation of new communications equipment.
·
Installation
of 2,500 gallon plastic holding tanks for water needs.
However, all of these facilities are
in a state of disrepair and cannot be used.
The QP does not recommend any construction
of new infrastructure, pending a complete review by GLM of what current camp infrastructure is salvageable and what, if anything, must
be removed from the site.
14
1.12      Permitting Requirements
Presently a mixed property
ownership exists between the State of Alaska and the U.S. Interior Department Bureau of Land Management. This manifests itself in
both state and federal mining
claims. The state of Alaska has General Selection Lands (GS 5167) Ta’d surrounding the
active GLM federal Mining claims and an ANILCA Top Filing covering the active federal mining claims owned by USAC. GLM has also
located State of Alaska mining claims over the active federal mining claims to protect its claim ownership position. This process
has been used numerous times to facilitate ownership transfer from BLM to the State of Alaska for high value mineral lands.
Currently, permit requirements include the following:
Alaska Department of Natural
Resources
Alaska
Placer Mining Application (APMA AAC Title 27, AS 38.05)
Approved Plan of Operations (AAC Title 27, AS 38.05)
Approved Reclamation Plan
(AAC Title 27, 38.05)
Approved Mine Closure Plan (AAC Title 27, 38.05)
Temporary Water Use Permit
(TWUP 11 AAC 93.035, 93.220)
Alaska Department of Environmental
Conservation
APDES (Authorized
under the federal Clean Water Act, 33 U.S.C. 1251-1387 and implemented in Alaska by 18 AAC Chapter 83)
Storm Water
Plan, SWPPP; (AS 46.03.100; 18 AAC 83.615)
Industrial Waste Water Permit (APDES Program)
Solid Wate Permit (ACC Title
17, AS Title 16)
Air Quality Permit (AS 46.14, 18 AAC 50)
Alaska Department of Fish &
Game
Title 16 Habitat Permit (AS
Title 16)
U.S. Army Corps of Engineers
404 Wetlands Permit (Clean Water
Act)
U.S. Bureau of Land Management
Plan of
Operations Approval
Environmental
Assessment (EA, National Environmental Policy Act of 1969, 43 CFR Part 46)
Reclamation Plan (30 U.S. Code
1258 Supplemented by 43CFR Part 3600, Subpart 3601 and related BLM manuals)
GLM will have to pay taxes to the Alaska
Department of Revenue; complete required maintenance of the Nolan Road from the Alaska Department of Transportation and Public Facilities;
and conform with guidelines set forth by the Alaska State Historical Preservation Office, if artifacts are encountered.
1.13      Qualified Person’s Conclusions
and Recommendations
The QP does not
make any specific recommendations to GLM for advancing their indicated placer gold resources in Nolan Creek Valley. If those resources
become a priority for development, GLM should attempt to determine whether the paystreaks occur in dry versus wet environments.
15
GLM should complete additional
infill diamond core drilling on Workman’s Bench. Workman’s
Bench should be the top priority because it contains
the best chance thus far known for documenting consistent widths and grades of stibnite-quartz-gold mineralization. The exploration
focus on ‘A’ Zone previously described but also include subsidiary vein systems. Drill-testing the zone of inferred
mineralization should be given a high priority. A drill priority should also be to drill-test Pringle Bench.
The diamond
drill core should be of a larger size than the modified NQ core previously used--not necessarily due to high recovery as the older
NQ core was satisfactory in producing high recovery rates. Instead, use of larger diameter ‘P’ core and a drill rig
capable of drilling to 1,000 foot depths (or more) could greatly assist in determining the overall vertical extent of the
mineralizing system.
In order to accomplish the drill-testing, Pringle Bench should be scrapped off much like it was prior to
2011.
GLM should build on environmental baseline
work initiated by the previous owner. On behalf of the previous owner, SRK Consulting initiated base line studies on the property in
2008, but none have been completed since. GLM should advance baseline studies through investigations of geochemical characterization,
meteorological precipitation, hydrological steam run-off (including storm water) prediction and mixing zone potential. An early significant
conclusion from past environmental work is that un-weathered materials have a neutral pH; hence an Acid Rock Drainage (ARD) mitigation
plan should be aimed at minimizing oxidation of waste rock and ore materials during disposal and in-capsulation of material. GLM should
advance baseline studies through investigations of geochemical characterization, meteorological precipitation, hydrological steam run-off
(including storm water) prediction and mixing zone potential. Large samples taken underground should be run using acid-base accounting
procedures. In similar fashion, selected core of both mineralized vein and wall rock material from representative drill holes along strike
and at depth should be split for the expressed purpose of acid-base accounting analyses. Large samples taken underground should be run
using acid-base accounting procedures.
To the QP’s knowledge, the previous
owner was not engaged in any partnerships or agreements with outside parties. The leading landowner in the area is Doyon Limited (Doyon),
a regional native corporation based in Fairbanks. Doyon owns lands immediately west of the Nolan Creek area, which juxtaposes the Gates
of the Arctic National Park and Preserve. Doyon is currently in partnership with Wiseman Metals, a subsidiary of MDF-Global, on a district-scale
evaluation of copper-precious metal ‘skarn’ and ‘porphyry’ style copper mineralization north-northeast of Coldfoot.
The 415 pound bulk sample collected
in 2008 by the QP and processed by Hazen Research in Colorado yielded promising results concerning the beneficiation of the
antimony-gold mineralization for the Nolan lode project (see Chapter 10 of this Technical Report). That bulk sample was collected
underground from the main ‘A zone’ on Workman’s Bench. The QP suggests
that four (4) additional bulk
samples of vein-fault mineralization be collected: 1) another bulk sample from ‘A’ zone on Workman’s bench using
both underground and surface exposures and selected core where available; 2) a bulk sample from the ‘B’, West, and
‘C’ mineral zones on Workman’s Bench; 3) a bulk sample from the ‘A’ zone on Pringle Bench; and 4) a
bulk sample from other mineralized zones on Pringle Bench. Collecting more metallurgical data will allow GLM to continue to refine
their mill-plans and provide increased confidence to a potential market for their stibnite-gold concentrate products. GML/USAC may
then elect to construct a pilot plant on-site and process larger amounts of mineralized materials.
16
The QP does not recommend work on a
tailings facility until information acquired from mineral processing, geotechnical, environmental or infill drilling programs are completed
and when a
Proven Reserve has been established.
Mineral reserves cannot be established
until a fundamentally upgraded, technical analysis is completed from previous studies. A positive reserve analysis was provided in Chapter
18 of previous Technical Report issued by the QP in his Technical Report for the previous owner of the Nolan Creek claims.
However, economic assumptions for the
2011 reserve study on properties currently held by GLM have significantly changed. Commodity prices have improved dramatically, but inflationary
costs for fuel, groceries, equipment, labor and many other factors have driven costs significantly upward for operating a mineral development
in Nolan Creek valley. In addition, the 2011 mine model envisioned use of the Nolan Camp facility as a base for developing underground
mining operations. That camp facility is currently in a state of fundamental disrepair and cannot be used in a reserve analysis of the
lode-antimony-gold deposits on the subject property.
17
2.0     INTRODUCTION
2.1
Registrant Information
United States Antimony Corporation;
referred to in this Technical Report as ‘USAC’ (NYSE American; UASE; NYSE Texas; UAMY) is a critical minerals company focused
on the production of antimony and zeolites. USAC owns and operates two antimony smelters in North America located in Thompson Falls,
Montana and in Madero, Mexico respectively. Besides antimony, USAC operates the Bear River zeolite mine in Idaho, producing a mineral
product for water filtration, agriculture and environmental remediation. Great Land Minerals LLC (GLM), which purchased the claims in
the Nolan Creek area in 2026, is a wholly owned subsidiary of USAC.
2.2        Terms of Reference and Purpose
This Technical Report was requested
by U.S. Antimony Corporation (USAC).
According to government reports
,
historic placer gold production in the Koyukuk mining district is estimated at about 350,000 oz of placer-style gold and a small amount
of stibnite (ore of antimony) since 1894. Nearly half of the total gold production was sourced in the Nolan Creek basin, which is partially
claimed by USAC. Nolan Creek is about 175 mi (280 km) north-northwest of Fairbanks, Alaska. Rather than placer gold, this analysis focuses
on the lode antimony-gold deposits on properties in Nolan Creek basin held by USAC. The independent Qualified Person, Mr. Thomas
K. Bundtzen, President of Pacific Rim Geological Consulting Inc. (Pacific Rim), is responsible for this Technical Report. Henceforth
Mr. Bundtzen is referred to as the QP.
The primary purpose of this Technical
Report is to disclose lode antimony-gold mineral resources for USAC’s holdings in the Nolan Creek Area (Nolan Creek) of the historic
Koyukuk Mining District of
Northern Alaska.
2.3        Sources of Information
The sources of information are numerous
and include U.S. Government, State of Alaska, and unpublished private company reports, which are detailed in the References section of
this report. Geological mapping and framework studies summaries of the Nolan Creek area have been published by Maddren (1910, 1913),
Brosge and Reiser (1970), Dillon (1989), Dillon and others (1986), Dillon and Reifenstuhl (1990), Moore and others (1994), Mull (1989),
and Eden (1999, 2000).
Reed (1938) provided a comprehensive
summary of all gold exploration and production activities in the Koyukuk District including detailed descriptions of activities in Nolan
Creek area, including USAC’s holdings. Kurtak et al (2002) provides an exhaustive summary of all historic mining activities in
the Koyukuk district, with an emphasis on activities in the Wiseman quadrangle where the USAC properties reside.
18
2.4        Personal Inspection Summary
During his career with the Alaska Department
of Natural Resources, Division of Geological and Geophysical Surveys, the QP completed geological mapping and mineral resource investigations
on some mineral properties described in this Technical Report. The author visited Nolan Creek in 1994, when the previous owner was producing
placer gold from Mary’s underground and Ogden-Eureka open cut placer deposits, and witnessed placer gold processing activities.
The purpose of the 1994 trip was to observe the previous owner’s gold production activities, which were subsequently described
in the State of Alaska Minerals Report series (Swainbank et al, 1995).
In 1999, the QP sampled and mapped
stibnite-gold lodes on Smith Dome and Pringle Bench, which constitutes a part of GLM/USAC’s lode claim group in the area. The
QP’s 1999 work in the Koyukuk
Mining District was completed on behalf of North Star Exploration Inc., a junior mining
company based in Denver, Colorado. From November 14 to 15, 2004, the QP visited the previous owner’s operation at Nolan
Creek, where he examined current infrastructure, and discussed with geologists Brian Flanigan and Edward Armstrong the technical
databases stored on the property.
During April 22 to 24, 2008, the
QP examined stibnite mineralization in the Workman’s Bench underground workings, collected channel samples to cross-check those
collected by Silverado geologists, mapped the geological features, and acquired a large bulk sample for laboratory bench testing. During
June 13 to 14, 2008, the QP examined all mineralized intercepts from the 2007 core drilling program on Workman’s Bench and
examined and sampled surface exposures of stibnite mineralization also on Workman’s Bench.
On 2008, the QP visited Nolan Camp and
examined all significantly mineralized core intervals acquired from the 2008 exploration of the Workman’s bench property (Bundtzen,
2008a, 2008b, 2008c. A total of 124 mineralized intervals as cut in drill core were inspected by the QP.
During portions of July 23-25,
2009, the QP reviewed the previous owner’s 2009 drill program at Nolan Creek with Karl Sharp, the company geologist. During
parts of the time interval August 13-29, the QP inspected the following technical items acquired by him from Karl Sharp: 1)
certified analytical results of drill core intervals; 2) photos for surface and subsurface exploration activities; 3) EXCEL spread
sheets of the data acquired during the drill program; 4) core logs from all holes that had been completed; 5) Sharp’s
preliminary interpretations of the structural corridors drilled during the season; and 6) surveys of drill collar locations in UTM
coordinates and elevations based on the NAD27AK datum. At the QP’s request, selected sections of core were brought to his
Fairbanks
office later in September for further inspection. Because the most important, mineralized structure—the A
zone—exhibits a peculiar fine-grained granoblastic texture, comparisons between underground samples collected by the QP in
2008 and the samples brought to Fairbanks by Sharp were made by the QP in his office. During December 11-17, the QP reviewed
with Karl Sharp all of the data acquired during the 2009 drill program including his (Sharp’s) structural interpretation of
the mineralization encountered and his thoughts on previous exploration work completed in 2007 and 2008. During this last effort,
the QP inspected a total of 23 new mineralized intercepts.
19
2.5        Previously Filed Technical Reports
In December, 2004, the QP produced an
Independent Technical Review of the Nolan Creek area for the previous owner (Bundtzen, 2004). That document reviewed all aspects of mineral
activities, including exploration, development, and mining activities, environmental remediation steps needed for compliance, and permitting
issues at all of their properties held in the Fairbanks and Koyukuk districts by Silverado. Comprehensive in nature, the report format
was designed to be compliant with Technical Report formatting.
In July, 2008, 2009, and in 2011, the
QP completed the Canadian National Instrument (NI) 43-101-compliant documents: 1) Estimation of Lode and Placer Mineral Resources, Nolan
Creek, Wiseman B-1 Quadrangle, Koyukuk Mining District, Northern Alaska, July 29, 2008; and 2) Update on lode mineral resources
and reserve estimates, antimony-gold lode deposits, Nolan Creek, Wiseman B-1 quadrangle, Koyukuk Mining district, Alaska, June, 2009;
amended 2011. These documents were publicly released to the Canadian server SEDAR.
2.6        Units of Measure
Because of extensive prior use in virtually
all categories of measuring, the QP has used the English system of measurements in this Technical Report. A metric conversion table is
presented below.
Table 2. 1 Units of measure used
in this Technical Report
Type
Unit
abbreviation
Description
(with metric conversion)
Area
acre
acre (4,046.86
m
2
)
Area
ha
hectare
(10,000 m
2
)
Area
km
2
square
kilometer (100 ha)
Area
sq mi
square
mile (259.00 ha)
Concentration
g/t
grams per
tonne (1 part per million)
Concentration
oz/cu yd
troy ounces
per cubic yard
Concentration
oz/ton
troy ounces
per short ton (34.28552 g/t)
Length
ft
foot (0.3048
m)
Length
m
meter (SI
base unit)
Length
mi
mile (1,609.344
m)
Length
yd
yard (0.9144
m)
Mass
g
grams (SI
base unit)
Mass
kg
kilogram
(1,000 g)
Mass
oz
troy ounce
(31.10348 g)
Mass
t
tonne (1,000
kg)
Mass
ton
short ton
or US ton (0.90719 t)
Time
Ma
million
years
Volume
cu yd
cubic yard
(0.7646 m
3
)
Volume
gallon
U.S. liquid
gallon (3.785411784 L)
Volume
L
litre (SI
base unit)
Temperature
°C
degrees
Celsius
Temperature
°F
degrees
Fahrenheit (°F = °C × 9⁄5 + 32)
20
3.0
PROPERTY
DESCRIPTION
3.1
Nolan
Creek Area Claims
GLM/USAC acquired thirteen (13) lode
and twenty-three (23) placer federal mining claims in Nolan Creek valley through a Trustee’s sale in a public auction on January 30
th
,
2026 (Figure 3.1). The properties had been previously owned by a private company (Silverado) which conducted exploration and mining placer
gold deposits and exploration of lode targets from both surface and underground operations from 1979-to-2009.
On December 22
nd
,
2015, the previous private company executed a Deed of Trust conveying a certain property in the Nolan Creek Valley of the Southern Brooks
Range, Alaska to Yukon Title Company (Fairbanks) as Trustee with Alminco LLC as Beneficiary, which deed was recorded on February 3
rd
,
2016.
Because the Trustee failed to perform
the Deed of Trust as promised, the Deed of Trust was assigned to Nolan Metals LLC through recordation of an assigned Deed of Trust on
September 15
th
, 2025. A notice of Sale of the property was posted on October 23
rd
, 2025. A public auction
was held on January 30
th
, 2026 in the Rabinowitz Memorial Courthouse in Fairbanks, Alaska. The property was sold to Great
Land Minerals LLC (GLM) for the sum of One Million Three Hundred Thousand Dollars ($1,300,000 USD). GML is a wholly owned subsidiary
of USAC.
During the fall of 2026, USAC staked
an additional forty-eight (48), 160-acre, State-of-Alaska mining claims that overlap the original Federal Mining Claims purchased at
auction in January, 2026 (Figure 3.2). These new state claims were staked to cover open ground in the Nolan Creek area of interest as
a result of the Pipeline Corridor land transfer from Federal (U.S. Government) domain to State of Alaska domain. Acquisition by USAC
of the Alaska state claims depicted in Figure 3.2 will insure that the original historic federal claims purchased by USAC from the 2026
auction are not compromised by third parties as a result of the new federal-to state transfers being acted upon in the Pipeline Corridor.
21
Table 3.1 Legal Description the Federal
Mining Claims acquired by GLM in January, 2026
Count
Claim
Name
BLM
No.
TWP
RNG
Section
Qtr.
Section
Type
1
Mary’s
Bench
FF-42437
31N
12W
27
SW
placer
2
Hillside
Bench
FF-42438
31N
12W
27,
28
SW,
SE
placer
3
Highland
FF-42439
31
N
12W
27
SW
placer
4
No. 3
below Discovery
FF-42440
31
N
12W
28
NESE
placer
5
Ogden
FF-42442
31N
12W
27,
28, 33, 34
SW,
SE, NW, NE
placer
6
No. 5
Below Discovery
FF-58595
31N
12W
33,28
NE,
SE
placer
7
Discovery,
Nolan Creek
FF-62022
31N
12W
27
NW
placer
8
No. 4
below Discovery
FF-62026
31N
12W
28
SE
placer
9
Archibald
Association
FF-62028
31N
12W
27
SW
placer
10
Archibald
#3
FF-62029
31N
12W
27
SE
placer
11
Nolan
23
FF-73165
31N
12W
27
SW
lode
12
Bench
26
FF-90820
31N
12W
27,
33, 34
SW,
NE, NW
placer
13
Bench
27
FF-90821
31N
12W
27
SW
placer
14
Bench
34
FF-90828
31N
12W
27,34
SW,
NW
placer
15
Nolan
100
FF-90888
31N
12W
34
NW
Lode
16
Nolan
111
FF-90899
31N
12W
33,
34
SE,NE,NW
lode
17
Nolan
151
FF-90939
31N
12W
33
NE,SE
Lode
18
Nolan
152
FF-90940
31N
12W
33
NE,
SE
Lode
19
Dol
1 Fraction
FF-91165
31N
12W
33
NE
Placer
20
Nolan
176
FF-91194
31N
12W
27,
33, 34
SE,
NE, NW
lode
21
Nolan
179
FF-91197
31N
12W
33,
34
NE,
NW
lode
22
Acme
1
FF-92686
31N
12W
28
SE,
NE
placer
23
Acme
3
FF-92688
31N
12W
28
SE,
NE
placer
24
SSH
3
FF-94008
31N
12W
27
SW
1/4
lode
25
SSH
6
FF-94011
31N
12W
27
SW
1/4
lode
26
SSH
7
FF-94012
31N
12W
33
NE
1/4
lode
27
SSH
9
FF-94014
31N
12W
33
NE
1/4
lode
28
SSH
10
FF-94015
31N
12W
33
NW
¼ , NE ¼ , SW ¼, SE ¼
lode
29
SSH
11
FF-94016
31N
12W
33
SW
¼, SE ¼, NE ¼
lode
30
Top
Notch Bench
FF-94686
31N
12W
33,
28, 27, 34
NW
SE, SW, NW
placer
31
Surething
Bench
FF-94687
31N
12W
27,
33, 34
SW,
NW, NW
placer
32
Never
Sweat Bench
FF-94688
31N
12W
35,
34
NE,
NW
placer
33
Daisy
Bench
FF-94689
31N
12W
34
NW
placer
34
Calilion
Fraction
FF-94690
31N
12W
34
NW
placer
35
D&C
Fraction
FF-94691
31N
12W
34
NW
placer
36
Smith
Creek #1
FF-94692
31N
12W
33,
34
NE,
NW
placer
22
Figure 3.1 Map depiction of thirty-six
(36) federal claims (pink) purchased by GLM in January 2026
Figure 3.2 Forty-eight (48) new State
of Alaska Claims covering the Nolan Creek staked by USAC in the fall of 2026.
23
4.0 ACCESSIBILITY, CLIMATE, LOCAL INFRASTRUCTURE
AND PHYISIOGRPHY
4.1 Topography and Land Description
The Koyukuk Mining District is bounded
on the east by the South Fork of Koyukuk River, the Alatna River on the west, the continental divide of the Brooks Range on the north,
and the Kanuti River basin on the south. Elevations in the district range from 4,635 ft on Vermont Dome to about 1,220 ft on the floodplain
of the Middle Fork of the Koyukuk River. Other prominent landforms present at or near Nolan Creek include Smith Dome at 4,005 ft elevation,
Montana Mountain at 3,270 ft, and Midnight Dome at 3,860 ft (Figure 4.1).
4.2 Access to the Property
Nolan Creek is at the center of the
Koyukuk district. Regularly scheduled commuter flights from Fairbanks to the 4,500 ft long, state-maintained Coldfoot Airport are provided
by Wright Air Service Inc. Nolan Creek is road-accessible from Fairbanks via the Dalton Highway, which services the Trans-Alaska Pipeline
and the North Slope oil fields. The Trans-Alaska Pipeline System (TAPS) and Dalton Highway corridor in the valley of the Middle Fork,
Koyukuk River are east-southeast of the Nolan Creek property holdings. In 1985, the access road from Wiseman to Nolan Creek was upgraded
to secondary standards by the Alaska Department of Transportation and Public Facilities (DOTPF). Since 2012, DOTPF has paved selected
portions of the Dalton Highway. It is estimated that by 2020, about 40 percent of the highway had been paved from the Elliot Highway
to Chandler Shelf, about 80 miles north of Coldfoot. USAC’s Nolan Creek property is remote and far from Alaska’s urban areas.
The GML/USAC camp at Nolan Creek is located 175 air miles north-northwest of Fairbanks, Alaska’s second largest community, with
a population in 2026 of about 99,500, when counting adjacent military bases.
4.3 Climate Description
Nolan Creek Valley is located about
75 mi north of the Arctic Circle. Winter usually begins in late September or early October and lasts until early April. A very
brief spring is followed by summer in early June, which lasts until late August. Fall weather conditions occur for about one month in
September. Coldfoot, about 15 mi southeast of Nolan Creek Valley, recorded the unofficial all-time, State of Alaska record low of −82°F
in January,1989.
24
Figure 4.1 Nolan Creek location map,
showing access to claims held by GLM/USAC.
25
4.4 Vegetation and Land Use
Vegetation in the area is dominantly
mature white spruce forests and occasional groves of birch and alder. Although lower slopes are heavily forested, the entire area was
logged during the late 19th to early 20th Centuries to provide fuel logs for cabins, for mine timbers for early underground placer mine
activities, and wood for general construction activities. Currently, the timberline is at about 2,500 ft elevation. Alpine species consist
of various mosses, shrubs, lichen, and wild berries.
Current land use in the area is primarily
focused on tourism. Bed and Breakfast facilities in Wiseman host small select groups of international tourists seeking wildlife observation,
dog mushing and observation of the ‘Northern Lights’. A public facility describing outdoor activities are found at the Gates
of the Arctic National Park and Preserve offices in Coldfoot. Due to the currently high gold prices, there has been expansion of traditional,
small scale gold mining activities in the area. Mineral exploration in the area is currently being carried out by several mining companies
using rotor wing aircraft.
The community of Coldfoot, which is
about 13 miles south of the community of Wiseman, has Alaska’s most northern gas station, grocery, bar, and public lodging facilities.
The weather station at Coldfoot provides the Alaska State Weather Service with climatic condition on the Southern Brooks Range. DOTPF
operates a large shop facility at Coldfoot on a year-round basis and maintains a 125 mi long segment of the Dalton Highway and the Coldfoot
Airport.
The small community of Wiseman, with
a 2010 census population of 35, is at the junction of the seven (7) mile long, secondary access road that links the Dalton Highway
with Silverado’s Nolan Creek mine camp.
Figure
4.2 Coldfoot Camp, June 13
th
, 2026; USAC vehicle in foreground; photo by QP
26
Figure
4.3 Main Street of Wiseman Village on June 13
th
, 2026. Photo by QP.
4.5 Availability of Required Infrastructure
All types of fuels related to mine infrastructure
needs can be obtained from Coldfoot. Both fixed wing and rotor wing aircraft facilities can also be accessed from Coldfoot Airport.
The previous owner of the mineral property
(Silverado) maintained a self-sufficient camp that included camp infrastructure capable of housing thirty (30) mine employees, machine
shops, and a diesel power plant. A 2007 upgrade project included:
·
The
purchase and installation of a ten room housing unit;
·
The
construction of an engineering office;
·
The
upgrading of laboratory facilities;
·
The
installation of a new sewage treatment facility;
·
The
construction of a new kitchen and cafeteria; and
·
The
installation of new communications equipment.
·
Installation
of 2,500 gallon plastic holding tanks for water needs.
However, all of these facilities are
in a state of disrepair and cannot be used. Rooms for employees involved in exploration and development activities could be housed in
Coldfoot.
27
Figure
4.4 Nolan Mine Camp as it appeared during spring, 2008; From QP files
28
5.0
HISTORY
5.1
Mining
History of Area
Placer gold was found on the bars of
the Koyukuk River between 1885 and 1890, and the first commercial discoveries on Nolan Creek and Hammond River and tributaries were made
in 1901 (Cobb, 1973). The earliest placer mines were open cuts using hand methods and sometimes mechanization. Since the ground was frozen,
steam boilers were frequently deployed to mine frozen pay gravels. Beginning in 1908 deeply buried but rich gold placers were found at
considerable depths of up to 200 feet; much of the ground has been acquired by GML. These ‘drift mines operated up until WWII.
After WWII, most gold mines in the Koyukuk district, including those in Nolan Creek Valley, closed due to the fixed price of gold in
the United States, coupled with rising inflationary challenges.
After the gold
price was decontrolled in 1971, small scale gold mines were restarted. In 2026, an estimated six (6) mechanized placer gold mines
operated in the Koyukuk district, with many using Coldfoot as a supply base.
Beginning in 1979, in the Nolan Valley,
which now includes the claims held by USAC, placer gold deposits were developed using both surface methods such as bulldozers and excavators
and underground methods using low profile mine extraction equipment and standard blasting technologies—much like what you would
see in an underground hardrock mine. Gold bearing gravels were stockpiled on the surface during winter months and processed through sluice
boxes on the surface during summer months. Two such operations on Nolan Creek and nearby Vermont Creek used underground methods to mine
placer gold in the last 30 plus years.
5.2 Drilling Exploration History
From 1979-to-2007, approximately 910
Reverse Circulation (RC) drill holes that totaled 58,756 feet have evaluated placer gold deposits in the study area and in Vermont Creek
basin to the NE. Drill holes range from 25 ft to 145 ft in depth and average 62 ft in depth. During the drill program, more than 11,750
five-ft intervals were systematically panned down the entire length of each drill hole. The drill holes were generally designed on 50
ft centers. In Nolan Creek Valley, drill hole collars are oriented along north 070° west (Bearing 290°) lines, which crosscut
the northeast trend of ancestral and modern, gold-bearing fluvial deposits. The extensive drill program led to the direct discovery and
subsequent development of commercial placer gold paystreaks, which were excavated on various bench deposits in Nolan Creek valley using
both open-cut and underground mining methods.
Table 5.1 summarizes lode drilling programs
conducted in Nolan Creek valley—all on ground currently held by GLM. Drilling commenced in 1993 on Thompson Pup using percussion
technology and then expanded to Workman’s Bench in 1994 and Pringle Bench in 2006. Diamand core drill programs occurred on Workman’s
Bench and Pringle Bench from 2007-to-2009.
29
Table 5.1 Summary of lode drilling
programs, Nolan Creek
Year
Location
Drilling
Drill
Amount
Assay
Drilling
contractor
method
hole
of
drilling
count
count
(ft)
1993
Thompson
Pup
RC
4
1,275
255
Tri-Con
Mining Company
1994
Workman’s
Bench
RC
4
780
156
Tri-Con
Mining Company
2003
Pringle
Bench and Hillside
RC
5
1,340
260
American
Arctic Drilling
2006
Pringle
Bench
RC
1
300
56
American
Arctic Drilling
Total
percussion (RC)
14
3,695
727
2007
Pringle
Bench
diamond
11
2,415
607
Independent
Contractor
2007
Workman’s
Bench
diamond
7
2,140
588
Independent
Contractor
2008
Workman’s
Bench
diamond
34
11,597
627
Independent
Contractor
2009
Workman’s
Bench
diamond
9
2,663
19
(1)
Independent
Contractor
2009
Pringle
Bench
diamond
11
2,329
23
(1)
Independent
Contractor
Total
diamond
72
21,144
1,863
Independent
Contractor
GRAND
TOTAL
NA
86
24,839
2,588
NA
Figure
5.1 Prospector #3 Multi-Purpose NQ Core Drill
TM
, October 22, 2007, From QP files
30
5.3 Historical Mineral Production
Through 2002, about 344,990 oz of gold
have been recovered from both open cut and underground placer mines in the Koyukuk District (Kurtak et al, 2002). The largest single
producer has been Nolan Creek and its tributaries, Smith Creek and Archibald and Fay Gulches, which produced an estimated 185,000 oz
of placer gold from 1901-to-2007, or about 54% of the Koyukuk District total. It is estimated by the QP that more than 100,000 oz of
gold was produced from 1908 to 1911 by underground drift miners on Nolan Creek.
From 1979 to 2007, the previous owner
mined pay gravel from a variety of surface and underground placer mining operations in Nolan Creek valley (Table 5.2). Production during
2003, 2006 and 2007 totaled 5,113 ounces gold. Hence the total for the Koyukuk district must be at least 350,000 ounces gold. No further
development or gold production activity on the claims occurred after 2011. Total production from 1979 to 2007 was 23,150 oz of placer
gold recovered from 271,771 cu yd of gravel at an average grade of 0.085 oz/cu yd gold (Table 5.2).
Table 5.2 Placer gold production
from Silverado properties, 1979 to 2007, Nolan Creek
Year
Location
Bank
cu yd
Placer
gold
Recovered
grade
(BCY)
(oz)
(oz/BCY)
1979
Fay Creek
NA
12
NA
1981
Archibald/Fay
Creek
12,166
730
0.060
1984
Archibald/Fay
Creek
4,343
304
0.070
1987
Archibald/Fay
Creek
20,585
1,338
0.065
1993
Thompson
Pup
33,800
1,304
0.038
1994
Mary’s
Bench Underground
16,143
2,697
0.167
1994
Ogden-Eureka
Bench Open Cut
29,300
5,733
0.196
1995
Phase 3
Open Cut
22,285
2,394
0.107
1995
3B1 Underground
12,991
1,006
0.077
1995
West Block
Open Cut
18,988
1,305
0.069
1995
Mary’s
Bench Hydraulic
600
27
0.045
1996
Dolney
Bench Open Cut
5,042
126
0.025
1998
Archibald
Creek Open Cut
5,947
128
0.022
1999
Swede Channel
Underground
4,575
623
0.136
1999
Workman’s
Bench Open Cut
5,580
112
0.020
2000
Workman’s
Bench Open Cut
14,919
201
0.013
2003
Nolan Deep
Channel; Wool Bench, Mary’s Bench
30,279
451
0.015
2006
Swede Channel
8,896
951
0.105
2007
Swede Channel
and Mary’s East
25,332
3,711
0.146
Total
271,771
23,153
0.085
In 1948, approximately
5.0 tons of high-grade selected stibnite ores were produced from an open-cut operation on Pringle Bench, which occurs on claims now held
by GLM. These hand sorted ores were shipped to a refinery in Texas.
31
Figure
5.2 Low profile truck used in underground placer mining, circa 2006; from QP files
Figure
5.3 Washing plant processing pay gravels, 2005-2007, Swede Channel project; from QP files.
32
6.0
GEOLOGICAL
SETTING, MINERALIZATION, AND
DEPOSIT
6.1
Regional
Geology
The bedrock geology of the Wiseman-Nolan
Creek area has been described by several previous workers including Maddren (1910, 1913), Brosge and Reiser (1970), Turner et al (1979),
Dillon et al (1986), Mull (1989), Dillon (1989), Dillon and Reifenstuhl (1990), Moore et al (1994), and Eden (1999, 2000). The following
geologic discussions use information from all of these sources. After review of published geological mapping, the QP selected the map
provided by Dillon and Reifenstuhl (1990) for display of the most relevant and accurate information used in this Technical Report.
The bedrock geology of the general area
is dominated by units of the Brooks Range ‘Schist Belt’ or Province, a poly-deformed package of schist, greenstone, and gneiss.
The Schist Belt is part of the Coldfoot sub-terrane of the Arctic Alaska Terrane, which underlies more than 75 percent of the south flank
of the Brooks Range. The Coldfoot sub-terrane is composed of Proterozoic to Middle Devonian, poly-metamorphic meta-sedimentary rocks
which have been intruded by Devonian granitic plutons and overlain by also bimodal meta-volcanic rocks also of Devonian age (Dillon,
1989). Although no fossils have been found, chloritic metasiltstone (Dbcs), black slate and phyllite (Dbs), and chloritic carbonates
(Dcc) are correlative with the Devonian Beaucoup Formation, as summarized by Mull (1989). The Beaucoup Formation and other metamorphosed
rocks in the Wiseman-Nolan Creek area are thought to be near the stratigraphic top of the Coldfoot sub-terrane (Dillon, 1989; Dillon
and Reifenstuhl, 1990).
The Wiseman-Nolan Creek area has been
subjected to the effects of Pleistocene glaciation, which has carved U-shaped valley profiles in the valleys of Wiseman, and Jap Creeks,
and the main trunk valleys of the Hammond and Middle Fork of the Koyukuk Rivers. Glaciers from the Middle Pleistocene Sagavanirktok Glaciation
traversed at high elevations down trunk valleys along the entire flank of the southern Brooks Range, reaching lowland areas in the lower
Chandalar River on the east, the Kanuti Flats to the south, and Kobuk River to the west (Hamilton, 1979, 1986). Glacial drift of the
Sagavanirktok River Glaciation (Qd1) occupies hill slopes, low saddle areas, and high level cirques to maximum elevations of about 3,200
ft.
According to Dillon (1989), Mull (1989),
Dillon and Reifenstuhl (1990), Moore et al (1994), and Eden (1999), two and possibly three well-defined periods of regional dynamo-thermal
metamorphism have affected the layered rocks of the Coldfoot sub-terrane in the Wiseman-Nolan Creek. These layered metamorphic rocks,
which monoclinally dip to the north throughout the map area, contain a complex fold and faulting history; fold axes generally strike
northeast with fold vergence in several directions. Schistosity is defined on two discrete cleavage surfaces. The oldest (S2), parallels
bedding and the youngest (S3), is a semi-penetrative axial planar feature that probably formed during a thrust or recumbent folding event
(Dillon and Reifenstuhl, 1990; Eden, 1999). Several thrust planes have been mapped at Nolan Creek. During Late Jurassic to Early Cretaceous
time, the rock units of the Coldfoot sub-terrane including the Beaucoup Formation were thrust over thrust panels to the north and outside
the study area. Brittle deformation began to form as the last regional metamorphic gradients subsided in mid-Cretaceous time.
33
6.2 Local and Property Geology
The Coldfoot sub-terrane underlies most
of the valley of Nolan Creek (Dillon, 1989). The Beaucoup Formation and other metamorphosed rocks in the Wiseman-Nolan Creek area are
thought to be near the stratigraphic top of the Coldfoot sub-terrane (Dillon and Reifenstuhl, 1990).
Although Dillon and Reifenstuhl (1990)
do not describe non-metamorphosed or metamorphosed intrusive rocks at Nolan Creek, Eden (1999, 2000) describes metabasite dikes near
the mouth of Steep Gulch. Granite gneiss yields U/Pb ages of 360 Ma on the western slopes of the Middle Fork Koyukuk River valley, about
10 mi south of Nolan Creek. These Middle Devonian granitic intrusions, which were metamorphosed along with the host Beaucoup Formation,
could conceivably underlie Nolan Creek at depth.
Dillon and Reifenstuhl (1990) and Eden
(1999) map west-dipping, northeast-striking reverse faults in Nolan Creek valley that post-date fold deformation thrusting and are thought
to be the result of east-west compression documented in other areas of the southern Brooks Range. This brittle deformational event produced
a NE/NW, high-angle, orthogonal fault pattern that host the antimony-gold-quartz deposits that constitute a prime focus of this Technical
Report.
The more youthful V-shaped profiles
in Nolan and Vermont Creeks reflect erosional profiles that post-date the major glacial events described above, and there is no evidence
that Late Pleistocene ice ever developed in Nolan Creek Valley or tributaries. Steepened valley walls are now covered by a mixture of
colluvial-landslide, solifluction, and talus deposits (Qcl, Qcs, Qct units). Modern stream alluvium underlies the course of present Nolan,
Smith, and Wiseman Creeks and tributaries of the Hammond River (Qa unit).
34
Figure 6.1 Geologic map of the Nolan
Creek area Koyukuk District; modified from Dillon and Reifenstuhl (1990).
35
6.3 Alteration and Mineralization
Northeast-trending, steeply dipping,
auriferous stibnite-quartz veins cut phyllitic schist on Workman’s Bench on the left (south) limit of Smith Creek about 800 ft
upstream from its confluence with Nolan Creek (Eden, 1999). The mineralization on Workman’s Bench is almost certainly correlative
with the stibnite-gold-quartz veins exposed in placer cuts and trenches on the Pringle Bench north of Smith Creek, which have been known
since the early 20th Century (Killeen, 1942; Ebbley and Wright, 1948).
Mineralization
consists of quartz-sulfide veins cutting host Beaucoup Formation that mainly consist of stibnite, arsenopyrite, and minor Sb-sulfosalts.
Free gold is associated with both arsenopyrite and stibnite.
6.4 Deposit Types
Placer gold deposits in the Nolan Creek
and Hammond River areas can be classified as an ‘Incised Glacio-Fluvial’ subtype of heavy mineral placer deposits (Maddren,
1913; Laznika, 1985). The Koyukuk District examples, especially on Nolan Creek, probably formed in similar fashion to that observed in
the Valdez Creek district of south-central Alaska, Alaska’s largest placer gold mine during the 1980s and 1990s (Reger and Bundtzen,
1990); the Chandalar district east of the Koyukuk district; the Porcupine district in southeast Alaska; the Cassiar-Caribou district
of British Columbia, Canada (Knight and McTaggart, 1989); and the Bolotny-Ravkosky district in northeast Russia (Tchapko,1995).
Different explanations have been advanced
for the origin of the placer deposits in Nolan Creek. Maddren (1913) believed that the left limit, bench deposits such as the Mary’s
Bench, Swede, West Block, and Ogden-Eureka Bench placers may be remnants of narrow, crudely washed beaches formed along the mountain
sides when Nolan Creek was an arm of Glacial Lake Wiseman.
The Workman’s Bench and Pringle
Bench properties contain quartz-stibnite-arsenopyrite-gold veins. These quartz-only and stibnite-quartz (gold) veins strike northeast
and cross-cut low angle cleavage at steep to vertical angles. Besides locally massive stibnite, the quartz-carbonate vein stock works
also contain arsenopyrite.
The Workman’s Bench and Pringle
Bench properties contain quartz-stibnite-gold veins that cut a high angle, structurally controlled zone that is 150 ft to 300 ft wide
and at least 3,500 ft in length. These quartz-carbonate-sulfide and stibnite-quartz (gold) veins strike north 45° east and cross-cut
low angle cleavage at steep-to-vertical angles. Besides locally massive stibnite, the veins also contain local arsenopyrite. According
to Ebbley and Wright (1948), individual quartz-sulfide veins north of Smith Creek ranged from1 inches-to-4 inches thick and can be traced
for at least 400 ft of strike length. This area, now known as ‘Pringle Bench’, contains individual quartz-sulfide (stibnite)
veins up to 1.5 feet in thickness, based on 2009 Silverado exploration work.
36
Bedrock units on Workman’s Bench
and Pringle Bench consist of dark gray, carbonaceous phyllite and schist, light gray quartz-rich meta-sandstone, greenish gray chlorite
rich muscovite schist, and occasional lenses of calcareous chlorite schist. Isolated boudins of greenstone-gabbro have also been observed,
but not in place. The layered rock units have been deformed by both open and sub-isoclinal folds. Metamorphic foliation in the hanging
wall and footwall zones of the vein-fault zone is normally shallow, with dips of less than 45°. S1 foliation usually parallels compositional
banding, but locally, a conspicuous S2 secondary cleavage crosscuts compositional banding at a high angle. Northeast and northwest-striking,
high angle fault zones and low angle thrust faults cut the metamorphic rock basement.
Lode mineralization at Workman’s
Bench and Pringle Bench systems consists of a northeast-striking, steeply dipping zone of gold-bearing, quartz-stibnite veins and veinlets.
At Workman’s Bench, stibnite-bearing veinlets occur from 86 ft-to-234 ft from the portal or over a width of about 150 ft. Because
the drift was cut perpendicular to strike, this represents a true thickness of the vein-veinlet swarm. A more focused zone of quartz
stibnite vein concentration occurs mainly from 136 ft-to-234 ft or an estimated width of about 98 ft, where 67 individual veins were
identified.
Within the ‘Crosscut A’ zone, 21 of the veins contained identifiable stibnite. In the ‘Crosscut C’
zone, the same mineralized stock work veins occur from 120 feet-to-228 feet or an estimated width of 108 ft. Within this measured width,
79 individual veins were identified, 22 of which contain stibnite.
At Pringle Bench, which is the northeasterly
extension of the Workman’s Bench system, the same stibnite-quartz vein-fault system widens to nearly 400 ft in three subsidiary
zones. In 2009, the ‘A zone’ vein fault was recognized on Pringle Bench—the same zone that contains the bulk of the
known mineralization on Workman’s Bench.
A majority of veins observed in either
trenches, core, or underground workings exhibit nearly horizontal slickensides, suggesting intrusion of hydrothermal fluids along fault
zones and lateral movement subsequent to vein emplacement.
Geologists recognized that distinct
near-vertical vein-fault structures could be recognized in drill core and in the underground workings on the basis of both spatial relationships
and physical features. All of these structures strike approximately north 45
o
east, and can be traced for variable lengths
along strike. The strongest mineralized vein-fault is designated ‘A’ zone, which exhibits evidence of post-mineralization
movement. Others include ‘B’ zone, ‘West’ zone, and ‘C’ zone. Detailed physical characteristics of
these structures and how they are recognized during exploration are found in Chapter 11 of this Technical Report.
Polished section analysis shows that
two basic fabrics are observed in the stibnite (aurostibnite)-quartz veins:
·
Simple,
twinned stibnite blades and grains showing resorption textures with euhedral, quartz crystals
and grains.
·
Extensive
shearing and local coarsening of sulfide grains (mainly stibnite), 120° triple junctions
in mono-mineralic stibnite, and recrystallization of gangue minerals (quartz) that indicate
dynamic metamorphism.
37
Mineralization in the ‘A’
zone’ at Workman’s Bench contains a shear fabric consisting of parallel lamina of recrystallized stibnite. These fabrics
are referred to in the literature as
thermal metamorphic textures
(i.e., Ineson, 1989). The sheared fabric results in a fine-grained
stibnite exhibiting a distinct granoblastic texture, which contrasts with the other subsidiary stibnite-bearing veins-faults that contain
coarser grained stibnite grains and blades. Microprobe analyses by Cannon Microprobe Inc. document that siderite (as gangue) and accessory
arsenopyrite occur in the stibnite-bearing zones along vein selvage zones (Figure 6.2).
More than 90% of the veins and veinlets
dip steeply southeast, with dips ranging from 50° to 85°. A few veins dip steeply northwest. A system of east-west to northwest
striking, moderately dipping vein-faults cut through the underground workings. The QP observed that these faults both offset, to a minor
degree, the northeast-striking, stibnite-bearing veins, but are also cut by other northeast-striking stibnite veins.
Figure 6
.2
Photomicrographs,
Workman’s Bench mineralized system
The gold-stibnite-quartz veins of Nolan
Creek Valley strongly resemble the gold-antimony deposit type (Berger, 1986; U.S. Geological Survey Deposit Model 36C). These deposits
are characterized by the presence of stibnite, berthierite, high fineness gold, and aurostibite hosted in metamorphosed, quartz-carbonate-bearing,
compressive shear zones within low grade, greenschist facies metamorphic rocks. The deposit types are characterized by deformed, ductile
fabrics and tectonically recrystallized, fine grained, granoblastic stibnite lobes and lenses.
The gold-antimony deposit type 36C is
considered to be a sub-type of the mesothermal, auriferous lodes found in mineral provinces worldwide (Berger, 1993; Laznika, 1985; Hodgson,
1993). Radiogenic leads characterize gold-bearing vein deposits of the Brooks Range (Gacetta and Church, 1989). This data reinforces
the classification of the Nolan lode deposits as mesothermal in origin. Mineral deposit type 36C is not very well documented in North
America but well studied in Asia, Europe, and Africa. Worldwide examples include deposits in the Transvaal of South Africa, the Reefton
District in New Zealand, and deposits in Eastern Europe and in Russia. Olympiada in Siberia is an example of a large, productive gold
(stibnite) deposit of this type.
38
7.0 EXPLORATION
From 1978-to-2009, Silverado explored
for placer gold and lode gold deposits on federal claims in Nolan Creek basin, which are now owned by GLM.
7.1 Exploration of Heavy Mineral Placer
Deposits
Placer gold exploration in Nolan Creek
basin was primarily carried out using Reverse Circulation (RC) drilling technology. The RC drill program identified a system of left-limit
benches situated east of the main channel immediately east of Nolan Creek valley. Figure 7.1 illustrates the channel configurations of
771 drill collars as determined from drill campaign conducted on the property from 1979-to-2005.
Drill holes range from 25 feet-to-145
feet in depth and average 62 feet in depth. During the drill program, more than 11,750 five-ft intervals were systematically processed
and panned down the entire length of each drill hole. The drill holes were generally designed on 50 ft centers. In Nolan Creek Valley,
drill hole collars are oriented to 2900, which crosscut the northeast trend of ancestral and modern, gold-bearing fluvial deposits.
The pattern illustrates the steeply
incised nature of the Nolan Deep channel, and the much more irregular incised depressions and channel cuts on the left limit of Nolan
Creek. Figure 7.1 does not include drilling information from 2006 and 2007 campaigns, which would likely reveal more detailed information
about the bench system.
RC drilling was the principal exploration
method used by the previous owner in the identification of placer gold deposits in Nolan Creek basin. RC drilling campaigns have led
directly to the development and test mining of placer deposits at Nolan Creek. These would include successful development of the relatively
high-grade Mary’s Bench and Ogden-Eureka Bench deposits in 1994; the West Block and 3B1 Underground deposits in 1995, The Swede
Channel development in 1999 and 2005-2006; and the Mary’s East deposit during 2007.
In general, placer gold deposits were
evaluated with a line of fences that were interpreted to be perpendicular to the trend of the fluvial channels. Holes were spaced 50-75
feet apart. The drilling campaigns concentrated mainly on the main channel of Nolan Creek above the previous owners camp and along the
left limit bench deposits east of camp. Drill fences of a more reconnaissance nature explored extensions of the main Nolan Creek deposit
below Silverado’s camp, in the headward portions of Smith Creek and on high altitude benches north of Fay Creek.
Figure 7.2 illustrates the channel configurations
as determined from the drilling campaign conducted prior to 2006 at Swede Channel, a left limit fluvial deposit east of the main Nolan
Creek valley. During the drill program, the different geological units were logged along with depth to bedrock. Drilling completed in
1999 yielded a strong gold anomaly in a channel-like depression. This drill hole, MB42A, eventually led the previous owner to test this
anomaly with underground test-mining six years later in the fall of 2005 (Bundtzen, 2006 a, b, c).
39
Figure 7.1 Location Map Showing Locations
of 771 placer drill collars in Nolan Creek Valley placer field.
40
Figure 7.3 illustrates the general configuration of the left limit
bench placers at Mary’s East, the highest level bench system so far drilled and mine-tested. Unlike Swede Channel and other drill-tested
bench deposits, Mary’s East appears to be predominately a colluvial deposit composite slope debris and minor fluvial sand. It’s
irregular configuration contrasts with the more sinuous features of a fluvial channel.
Figure 7.4 illustrates the stacked nature of bench systems on the left
limit of Nolan Creek, using the mine-tested areas and the drill-indicated resources. Radio-carbon ages presented by Bundtzen and Eden
(2008) indicate that the Swede and Ogden-Eureka deposits formed from 39,000-to-42,000 B.P. whereas the Mary’s East deposits formed
at approximately 45,000 B.P.
Figure 7.2 Plan of Swede Channel Exploration and Underground Development;
2005-2006
41
Figure 7.3 Plan of Mary’s East Underground Development and
Exploration Drilling.
42
Figure 7.4 Contour map constructed from drill data and underground
workings in Nolan Creek Valley.
Figure 7.5 A—gold concentrate rich in
arsenopyrite and stibnite; B—nuggets of gold plus stibnite—indicating a clear correlation between the two metals. Both photos
from 2007 cleanup operations, Nolan Creek. Photos by the QP during 2007 cleanup activities from Mary’s Bench underground mining
activities.
43
7.2 Exploration of Antimony-Gold Lode Deposits
The combination of soil surveys, VLF/EM geophysical data, and past
trenching on Smith Creek at Pringle Bench and Workman’s Bench laid the foundation for the interpretation of the character of lode
mineralization on the GLM property. Table 7.1 summarizes the exploration activities for lode mineralization (excluding drilling, which
is summarized in Table 5.1) that took place from 1981-to-2009.
In the summer of 2003, the previous owner modeled the resistivity data
using Surfer 8.02 by Golden Software, with kriging parameters that focused on narrow target zones (Flanigan, 2003a; Flanigan et al, 2003).
The modeled geophysical data resulted in the recognition of two northeast-trending 870 Hz resistivity lows, one of which more-or-less
correlates with the trend of quartz-sulfide veins on Smith Creek and the associated gold, antimony, and arsenic-in-soil anomalies (7.7).
This geophysical anomaly, with associated quartz-sulfide lode prospects and metalliferous soil anomalies, were referred to as the ‘Solomon
Shear’ lode target (Flanigan, 2003b). Flanigan estimates that the Solomon Shear is about 1 mi long and 0.25 mi wide, with geophysical
indications of extensions, possibly offset, for an additional 2 mi to 3 mi to the northeast.
Figure 7.6 Map of Nolan Creek Basin illustrating 870 Khz geophysical
(resistivity) anomaly in gray
A stream sediment sample grid also covered the general area known by
the previous owners geological staff as the Solomon Shear (Figure 7.8). The soils geochemistry clearly showed a direct correlation of
a northeast-striking zone at least 1.5 miles long and up to 600 feet wide.
VLF/EM data was also acquired; however, the results did not assist
in defining the mineralized structures like the resistivity and soil sampling program did.
44
Figure 7.7 Summary of 2004 and 2007 soil sample grid programs, in
the Workman Bench-Pringle Bench and Hillside areas; data from previous owners.
45
An early 1993 drill campaign tested mineralization at Thompson’s
Pup. Four drill holes penetrated a brownish gray phyllite with varying degrees of silicification, pyritization, and generally weak hydrothermal
alteration. Arsenopyrite and trace stibnite were identified in two drill logs (93TPHR-03 and 04). At 50 ft to 55 ft in drill hole 93TPHR-04,
grades were 145 ppb gold, > 1.0% arsenic (the upper limit of detection for As), and 25 ppm antimony, in association with abundant quartz
veins.
Table 7.1 Summary of lode exploration activities, Nolan Creek, 1981-to-2009
Activity
Sample count
Drill hole count
Total (ft)
Soil/stream sediment samples
1,383
(1)
NA
NA
Rock chip samples
275
NA
NA
Rotary drilling (lode)
739
14
3,695
Core drilling (lode)
1,842
72
21,144
Trenching
340
(3)
NA
4,672
(3)
Underground exploration drifts
NA
NA
470
Geophysical surveys (VLF/EM)
NA
NA
70.28 line mi
(5)
Notes:
−
(1)
Does not include soil sampling conducted by USBLM on
Silverado claims.
−
(2)
5 ft intervals were panned and gold, where encountered,
weighed or estimated.
−
(3)
Estimated from 2004, 2006, 2007, and 2009 Silverado
work. Does not include exploration work completed by the federal government (USBLM).
−
(4)
Exploration drifting only. Does not include production
or development stopes.
−
(5)
Does not include airborne work conducted by USBLM over
Silverado claims.
Total amount of drilling on the subject Nolan properties was previously
summarized in Table 5.1. In 1994, the previous owner completed an inaugural, short, rotary drill program to test the lode potential of
the Workman’s Bench area, where stibnite-gash veins were found in a placer mine cut. A ‘first phase’ program consisted
of about 750 ft of drilling in four drill holes that ranged from 130 ft-to-300 ft in depth. Figure 7.8 illustrates the results. Three
different horizons display vein-hosted gold-antimony mineralization over 100 ft-to-120 ft of true width. The veins range from 0.026 oz/ton
Au-to-0.086 oz/ton Au over 5.0 ft assay intervals, with up to >1.0% antimony and 4,370 ppm arsenic. One 10.0 ft assay interval averaged
about 0.036 oz/ton Au, >1.0% antimony, and 3,300 ppm arsenic. Underground exposures have shown that veins dip vertical or steeply southeast,
not northwest as shown in 1994 cross sections.
In 2006, one RC drill hole tested Pringle Bench (Table 7.2). In 2007
the previous owner purchased it’s own diamond drill rig and contracted the drilling to subcontractor Tricon, originally using BTW-sized
core on the Pringle Bench and Workman’s Bench deposits. A conversion to NQ core which is larger in diameter by about ¼ inch,
was made during July, 2008. NQ refers to the size of the core, which is approximately 1.75 inches in diameter
.
Core drilling
is better suited to this narrow-vein style of deposits than RC percussion drilling.
During 2007, the previous owner tested closely spaced stibnite-quartz
veins and veinlets at Pringle Bench north of Smith Creek using eleven diamond drill holes totaling 2,415 ft (Table 7.2). Also during 2007, Silverado drilled seven drill holes totaling 2,140 ft
to test the Workman’s Bench deposit (Table 7.3).
46
Figure 7.8 Section of 1994 inaugural percussion (RC) drill
hole results for Workman’s Bench; illustrating a pioneer attempt at exploring the Workman’s Bench antimony-gold deposit
47
Exploration work conducted during the latter part of 2007 and all of
2008 focused on: 1) driving 470 feet of underground drift to affirm surface and core sampling results and collection of bulk sample for
a metallurgical test; and 2) completion of 72 diamond drill holes totaling 21,144 feet to test the extent of the Workman’s Bench
and Pringle bench antimony-gold mineralized system. This confirmed that several parallel mineralized veins are intersected by diamond
drill holes for a strike length of more than 3,500 feet (including across Smith Creek) and a maximum vertical depth of 450 feet.
During 2009, diamond drill core program was designed by
contractor Karl Sharp to: 1) explore shallower level of Workman’s Bench southwest of the underground workings driven in 2008;
and 2) test deeper levels of the Pringle Bench vein-fault system and provide for vertical extensions of the shallow inferred
resource estimate reported in the 2009 NI- 43-101 Technical Report (Bundtzen, 2009). In 2009, approximately 5,000 feet were drilled
in twenty holes on Pringle and Workman’s Bench. The previous owner soon recognized the need to selectively sample the thin
mineralized quartz veins and changed their sampling protocol so that smaller samples, better representing these veins, could be
taken.
Collar location, orientation data and drill footage summaries for the
RC and diamond core programs on Pringle and Workman’s bench are provided in Tables 7.2 and 7.3. Coordinates for all collars were
determined with the Garmin
TM
Global Positioning System (GPS) using NAD27 Alaska datum. This datum was used because the USGS
!:63,360 scale topographic maps created at that time used NAD27 Alaska datum. GPS measurements were taken 2-to-4 times to ensure that
the collar was accurately located. All collar elevations are determined from the same benchmark (BM) at survey control point CP-06-01.
The significance of using the same benchmark is that a much more accurate elevation estimate for each collar can be ascertained.
Figure 7.9 Stibnite-bearing interval in drill hole 08SH01, from
93.5 to 94.4 feet; B Massive granoblastic stibnite in DDH 09SH-05; true thickness estimated to be 1.5 feet.
48
Table 7.2 Collar location and data, Pringle Bench, 2006, 2007, and
2009 Exploration Campaigns
RC Drill Hole
DDH No.
UTM Easting
UTM Northing
Datum
Zone
Collar Elevation
Azimuth
Dip
Total Depth
Core Diameter
06SH01
618868.02
7486656.03
NAD 27 Alaska
5W
1801.50
320
-45
300
RC, 8 in
Diamond Core Drill Holes
DDH No.
UTM Easting
UTM Norhing
Datum
Zone
Collar Elev. (ft)
Azimuth
Dip
Total Depth (ft)
Core Size
07SH02
618888.00
7486745.27
NAD 27 Alaska
5W
1848.50
320
-45
212
BTW
07SH03
618867.00
7486735.00
NAD 27 Alaska
5W
1848.50
320
-45
102
BTW
07SH04
618867.00
7486735.00
NAD 27 Alaska
5W
1848.50
320
-45
284
BTW
07SH05
618889.00
7486768.00
NAD 27 Alaska
5W
1872.60
320
-45
297
BTW
07SH06
618913.00
7486776.00
NAD 27 Alaska
5W
1884.90
320
-45
139
BTW
07SH07
618931.00
7486782.00
NAD 27 Alaska
5W
1898.10
320
-45
207
BTW
07SH08
618942.00
7486790.00
NAD 27 Alaska
5W
1900.50
320
-45
182
BTW
07SH09
618942.00
7486790.00
NAD 27 Alaska
5W
1900.50
320
-45
92
BTW
07SH10
619008.00
7486676.00
NAD 27 Alaska
5W
1873.70
320
-45
301
BTW
07SH11
618985.00
7486706.00
NAD 27 Alaska
5W
1876.40
320
-45
307
BTW
07SH12
618985.00
7486704.00
NAD 27 Alaska
5W
1876.40
320
-45
292
BTW
09SH10
618918
7486843
NAD 27 Alaska
5W
1913.00
110
-45
267
NQ
09SH11
618862
7486741
NAD 27 Alaska
5W
1854.00
160
-45
142
NQ
09SH12
618862
7486741
NAD 27 Alaska
5W
1854.00
160
-60
137
NQ
09SH13
618860
7486743
NAD 27 Alaska
5W
1854.00
160
-69
267
NQ
09SH14
618927
7486755
NAD 27 Alaska
5W
1887.00
320
-45
202
NQ
09SH15
618927
7486755
NAD 27 Alaska
5W
1887.00
320
-65
222
NQ
09SH16
618967
7486802
NAD 27 Alaska
5W
1920.00
320
-45
192
NQ
09SH17
618808
7486735
NAD 27 Alaska
5W
1835.00
140
-55
139
NQ
09SH18
618879
7486722
NAD 27 Alaska
5W
1850.00
320
-60
137
NQ
09SH19
618874
7486721
NAD 27 Alaska
5W
1850.00
250
-60
282
NQ
09SH20
618874
7486721
NAD 27 Alaska
5W
1850.00
245
-65
342
NQ
Total Drill Holes, Pringle Bench—23
Total Drill Footage, Pringle Bench—5,044 Feet
Note—Five (5) percussion drill holes completed in 2003
that total 1,340 feet are not included in the above tabulation
49
Table 7.3 Collar location and data Workman’s Bench; 2007,
2008, and 2009 exploration campaigns
DDH No.
UTM Easting
UTM Norhing
Datum
Zone
Collar Elev. (ft)
Azimuth
Dip
Total Depth (ft)
Core Size
07SH01
618652.00
7486576.58
NAD 27 Alaska
5W
1749.10
140
-45
312
BTW
07SH13
618571.00
7486484.00
NAD 27 Alaska
5W
1776.80
143
-45
358
BTW
07SH14
618571.00
7486484.00
NAD 27 Alaska
5W
1776.80
100
-45
407
BTW
07SH15
618579.00
7486499.00
NAD 27 Alaska
5W
1776.80
100
-45
323
BTW
07SH16
618525.00
7486470.00
NAD 27 Alaska
5W
1766.00
140
-45
397
BTW
07SH17
618500.00
7486495.00
NAD 27 Alaska
5W
1763.30
140
-45
252
BTW
07SH18
618615.00
7486507.00
NAD 27 Alaska
5W
1811.00
90
-45
91
BTW
08SH01A
618669.37
7486571.13
NAD 27 Alaska
5W
1751.20
184
-45
216
BTW
08SH01B
618669.37
7486571.13
NAD 27 Alaska
5W
1751.20
140
-45
312
NQ
08SH02
618662.66
7486569.92
NAD 27 Alaska
5W
1752.71
110
-45
343
NQ
08SH03
618675.00
7486564.00
NAD 27 Alaska
5W
1755.00
140
-50
252
NQ
08SH04
618740.14
7486553.52
NAD 27 Alaska
5W
1751.00
320
-50
55
NQ
08SH05
618771.00
7486541.00
NAD 27 Alaska
5W
1751.00
320
-50
30
NQ
08SH06
618621.85
7486506.24
NAD 27 Alaska
5W
1788.00
100
-50
72
NQ
08SH07
618551.00
7486477.00
NAD 27 Alaska
5W
1777.00
140
-50
370
NQ
08SH08
618485.00
7486452.00
NAD 27 Alaska
5W
1772.00
140
-50
452
NQ
08SH09
618426.00
7486379.00
NAD 27 Alaska
5W
1762.00
140
-50
457
NQ
08SH10
618558.00
7486465.33
NAD 27 Alaska
5W
1777.00
140
-45
317
NQ
08SH11
618584.00
7486489.00
NAD 27 Alaska
5W
1780.00
140
-60
362
NQ
08SH12
618584.00
7486489.00
NAD 27 Alaska
5W
1780.00
100
-50
282
NQ
08SH13
618619.24
7486508.75
NAD 27 Alaska
5W
1788.00
90
-60
312
NQ
08SH14
618674.39
7486570.08
NAD 27 Alaska
5W
1752.00
140
-45
242
NQ
08SH15
618671.51
7486567.75
NAD 27 Alaska
5W
1752.00
180
-45
397
NQ
08SH16
618671.51
7486567.75
NAD 27 Alaska
5W
1752.00
190
-45
352
NQ
08SH17
618672.65
7486567.85
NAD 27 Alaska
5W
1752.00
140
-70
497
NQ
08SH18
618501.00
7486434.00
NAD 27 Alaska
5W
1803.00
140
-60
472
NQ
08SH19
618501.00
7486434.00
NAD 27 Alaska
5W
1803.00
140
-45
307
NQ
08SH20
618501.00
7486434.00
NAD 27 Alaska
5W
1803.00
110
-50
397
NQ
08SH21
618501.00
7486434.00
NAD 27 Alaska
5W
1803.00
170
-50
402
NQ
08SH22
618560.00
7486468.00
NAD 27 Alaska
5W
1777.00
140
-60
302
NQ
08SH23
618560.00
7486468.00
NAD 27 Alaska
5W
1777.00
165
-50
307
NQ
08SH24
618560.00
7486468.00
NAD 27 Alaska
5W
1777.00
120
-50
317
NQ
08SH25
618451.00
7486419.00
NAD 27 Alaska
5W
1765.00
140
-45
427
NQ
08SH26
618426.00
7486379.00
NAD 27 Alaska
5W
1762.00
120
-45
432
NQ
08SH27
618426.00
7486379.00
NAD 27 Alaska
5W
1762.00
140
-45
402
NQ
08SH28
618426.00
7486379.00
NAD 27 Alaska
5W
1762.00
160
-45
450
NQ
08SH29
618451.00
7486419.00
NAD 27 Alaska
5W
1765.00
110
-45
450
NQ
08SH30
618451.00
7486419.00
NAD 27 Alaska
5W
1765.00
155
-45
450
NQ
08SH31
618451.00
7486419.00
NAD 27 Alaska
5W
1765.00
140
-55
487
NQ
50
Table 7.3 Continued Collar location and data Workman’s Bench;
2007, 2008, and 2009 exploration campaigns
DDH No.
UTM Easting
UTM Northing
Datum
Zone
Collar Elevation
Azimuth
Dip
Depth
Core Size
08SH32
618639.00
7486563.00
NAD 27 Alaska
5W
1758.00
160
-45
307
NQ
08SH33
618639.00
7486563.00
NAD 27 Alaska
5W
1758.00
160
-45
367
NQ
09SH01
618594
7486411
NAD 27 Alaska
5W
1880.00
320
-45
257
NQ
09SH02
618594
7486411
NAD 27 Alaska
5W
1880.00
291
-50
302
NQ
09SH03
618548
7486371
NAD 27 Alaska
5W
1880.00
326
-45
302
NQ
09SH04
618564
7486387
NAD 27 Alaska
5W
1880.00
290
-55
297
NQ
09SH05
618529
7486347
NAD 27 Alaska
5W
1873.00
320
-69
342
NQ
09SH06
618530
7486350
NAD 27 Alaska
5W
1873.00
335
-66
302
NQ
09SH07
618516
7486337
NAD 27 Alaska
5W
1870.00
305
-69
322
NQ
09SH08
618547
7486365
NAD 27 Alaska
5W
1873.00
297
-68
332
NQ
09SH09
618547
7486365
NAD 27 Alaska
5W
1873.00
297
-45
207
NQ
Total Core Drill Holes Workman’s Bench--50
Total Drill Footage
Workman’s Bench—16,400 feet
Note—Four (4) percussion (RC) drill holes completed in
1994 that total 780 feet are not included in the above tabulation
51
Figures 7.10-to-7.15 depict the vein-fault system on Pringle and Workman’s
Benches that has been drilled by the previous owner since 2006, but mainly since 2007. Figure 7.10 is the plane view of the Workman’s
bench vein-fault system. Figure 7.12 is a plane view of the Pringle Bench vein-fault system. Much of the data for the cross-sectional
profiles on Workman’s Bench was compiled from a series of twelve (12) large plates that depict vertical sections constructed by
the company (see Staff, 2008, a-l). Additional vertical profiles were completed by the QP after inspection of the 2009 drill program data.
A cross-sectional profile on Pringle Bench was developed by the QP mainly from drill information provided by the previous owner. Three
cross sectional profiles, namely A-‘A’, B-‘B’, and C-‘C’, which are shown in Figures 7.11-to-7.13,
provide a generalized fence of the Workman’s Bench vein-fault system from southwest to northeast. They reveal that three, sometimes
four, mineralized zones designated ‘West’, ‘A’, ‘B’, and ’C’ zones, are more-or-less sub-parallel
to each other and dip steeply southeast in the southern part, steeply northwest in the central part, and essentially vertical in the northern
part of the drill tested system. The vertical profile designated D-‘D’ on Pringle Bench indicates that the vein-fault system
there dips steeply to the northwest. Geologists recognized that distinct near-vertical vein-fault structures could be recognized in drill
core and in the underground workings on the basis of both spatial relationships and physical features.
·
‘A’ zone is the largest and most distinctive of the mineralized structures at Nolan—appearing on both Workman’s
and Pringle Benches. It is almost always accompanied by a distinctive lateral slickenside on its footwall and a pervasive quartz-sulfide
stock work on it’s hanging wall. This post-mineral movement creates a distinctive granoblastic texture in stibnite. ‘A’
zone varies from less than 1.0 feet to 5.8 feet in true thickness and is thicker when combined with the stock work hanging wall.
·
‘B’ zone generally occurs 40-50 feet to the southeast of ‘A’ zone and sub-parallels the latter. It is also
a vein-fault but does not generally contain slickensides—indicating that movement has not taken place after mineralization. Besides
the conspicuous quartz-stibnite mineralization, ‘B’ zone also contains significant siderite gangue—up to 10 percent.
‘B’ zone is somewhat thinner than ‘A’ zone, averaging about 0.85 foot true thickness, but can attain a true thickness
of 4.8 feet.
·
‘West’ zone generally lies 20-30 feet west of ‘A’ Zone but sometimes further. It is similar to ‘B’
zone in that it does not contain slicken-sided features typical of ‘A’ Zone. However, it can contain distinctive stock work
quartz-sulfide zones in it’s hanging wall like ‘A’ Zone. ‘West’ zone averages the same thickness as ‘B’
Zone but can be up to 5.0 feet true thickness. It has been recognized on both Workman’s Bench and Pringle Bench.
·
‘C’ zone is the weakest mineralized Sb-Au vein-fault in the Nolan system and has only been positively identified on Workman’s
Bench. Like ‘B’ and ‘West’ zones, no post-mineral slickenside has been observed. It averages only about 0.75 feet
in thickness and normally found about 30-40 feet southeast of ‘B’ zone. It is also the weakest mineralization observed on
the Workman’s bench and thus far con only be traced for about 275 feet of strike length.
Other Sb-Au veinlet zones have been recognized and sampled but cannot
be correlated with a specific fault structure of the Nolan system. More work has to be completed to better understand these additional
zones.
52
Two methods were deployed to calculate the estimated true widths of
the mineralized vein-faults being evaluated for resources estimates. Firstly, the core-logging geologist estimated true widths by measuring
across the extent of the parallel footwall and hanging wall contacts of the mineralized structure being sampled with host metamorphic
phyllite. This field estimate is aided by the fact that foliation in the host phyllite, is nearly horizontal. Thus the geologist can check
his true width calculations with the angle of the drill hole. During April, June, and September of 2008, the QP looked at all core
intervals, underground stations, and selected channel sites in order to check true width intervals. In 2009, the QP examined twelve of
the twenty-two core intervals to estimate true width. When true widths were ambiguous in core, standard trigometric calculations were
used to calculate the actual dip of the vein(s) in core versus the calculated angle that the vein intersects the zone. Additional
descriptive information is described in section 12 of this report. A comparison of drill interval widths versus estimated true width are
presented in Appendices I and II.
No down-hole orientation surveys were conducted. Oriented drill holes
are important to insure that drill azimuths are not off course. The QP judges that the shortcomings of not having oriented core is minimized
by: 1) the relatively short drill holes that accessed the mineralized zones; 2) the relative competency of the host rocks; and 3) the
near horizontal foliation of the host lithology probably minimize the potential of steeply angled drill holes from bending and diverting
off trajectory for any significant amounts. As an example, down hole depths of most mineralized intercepts; i.e., ‘A’ zone,
were predicted accurately at the drill site by the geologist before the actual intersection took place. However, as more drill holes explore
deeper portions of the system, more holes should be oriented to avoid down-dip inaccuracies.
53
Figure 7.10 Schematic of Workman’s Bench, illustrating bench
configuration, locations of 2007-2009 drill holes, the ‘A’ zone’, ‘West’ zone, ‘B’ zone, and
‘C’ zone, and locations of three cross sectional profiles illustrated in Figures 7.11. 7-12, and 7-13.
54
Figure 7.11 Schematic, cross sectional profile A-A’ the southern
portion of Workman’s Bench, illustrating the intersection of the major mineralizing structures currently being assessed—note
that the ‘Zones as drawn represent a width of the mineralized structure and not the sampled assay interval, which is generally thinner.
55
Figure 7.12 Schematic, cross sectional profile B-B’ in the
central portion of Workman’s Bench, just south of the ‘South Portal’ tunnel, illustrating the intersection of the near-vertical,
major mineralizing structures currently being assessed—note that the ‘Zones’ as drawn represent a width of mineralizing
structure from inspection of core and not the sampled assay interval, which is generally thinner.
56
Figure 7.13 Schematic, cross sectional profile C-C’ in the
northern portion of Workman’s Bench, just north of the ‘North Portal’ tunnel, illustrating the intersection of the near-vertical,
major mineralizing structures currently being assessed—note that the ‘Zones’ as drawn represent a width of mineralizing
structure from inspection of core and not the sampled assay interval, which is generally thinner.
57
Figure 7.14 Schematic plane view of Pringle Bench, illustrating
bench configuration, locations of 2006, 2007 and 2009 drill holes, the ‘A Zone’, ‘West Zone, and other
non-designated vein-fault zones; location of cross-sectional profile D-D’ illustrated in Figure 7.15.
58
Figure 7.15 Schematic, cross sectional profile D-D’ (and including
RC hole 06SH01) on Pringle Bench, illustrating the intersection of the essentially vertical, major mineralizing structures currently being
assessed—namely ‘A’ Zone (red) and West Zone (blue). Note that the ‘A’ and ‘West’ zones as drawn
represent a width of mineralizing structure from inspection of core and not the sampled assay interval, which is generally much thinner.
From QP files.
59
8.0
SAMPLE PREPARATION, ANALYSES, AND SECURITY
8.1
Site Sample Preparation Methods and Security
The previous firm developing the placer deposits directly supervised
the primary collection, sample preparation, and analysis of all placer deposit samples.
Gold nuggets within the placer systems can be very large (50% greater
than number 4 mesh size) and variably distributed; hence, the requirement for collecting and analyzing large samples. The percussion samples
were analyzed in their entirety without sub-sampling to minimize potential bias caused by sub-sampling material with extreme size variation
in gold nuggets.
Sample grades for the Nolan Creek placer deposits are expressed as
oz/yd
3
Au. Accurate measurement of the volume of the sample is therefore as critical as accurate recovery and weighing of the
contained gold. The volume in the analysis is the in-situ or bank volume of the sample. This is determined using swell factors that have
been determined for the deposits. These factors are subject to local variation (e.g., because of higher silt content in the sample) that
may cause inaccuracies in the analytical results.
Two methods were traditionally used by the previous owner to estimate
gold grades in a placer resource. One method is to calculate the amount of gold present in a bank cubic yard or ounces gold/cubic yard.
When all of the values are on or near the bedrock-gravel interface, an alternative method of estimating gold quantities in a placer deposit
is the amount of gold present on one square foot of surface area on bedrock—known as a bedrock square foot (brsf). Because most
of the placer gold in the Nolan Deep Channel and in left limit benches are ‘bedrock placers’, some Silverado geologists expressed
gold values in exploration drill programs in ‘brsf’. This value varied with the thickness of auriferous materials both above
and below the bedrock-gravel interface. The previous owner established conversion factors for converting ounces gold/brsf to ounces gold/cubic
yard, which systematically varied from valley floor and bench deposits. For this summary, the QP expressed all drill hole grade data in
ounces gold per cubic yard.
Sample recovery calculations have been implemented by the previous
owner’s geological staff and described by Flanigan (2003d; 2004). The QP could not verify every sample or the reported results for
authenticity, but he is reasonably confident that sampling programs were carried out in a professional manner by competent, qualified
individuals.
As an example, Table 8.1 summarizes data collected for drill hole intersections
for one of the placer target areas: D-3B3 Block.
60
Table 8.1 Drill hole intersection summary for 3B3-Block
Drill hole
From
To
True
Thickness
Grade
(ft)
(ft)
(ft)
(oz/cu yd Au)
NC-3B3 10-1
30
42
12
0.012
NC 3B3 11-3
85
97
12
0.015
NC-3B3 2-1
105
110
5
0.024
NC-3B3 2-3
75
85
10
0.275
NC-3B3 2-4
70
75
5
0.176
NC 3B3 3-1
55
60
5
0.010
NC 3B3 3-3
90
95
5
0.041
NC 3B3 3-5
125
135
10
0.117
NC 3B3
4-1
105
110
5
0.011
NC 3B3
6-3
50
55
5
0.061
NC 3B3
7-3
55
60
5
0.067
NC 3B3
9-5B
90
97
7
0.134
Four types of samples were collected during previous lode exploration
campaigns. Soil samples were taken every 50 ft over established grids. Silverado used hand-held, mechanized augers to collect the samples
and sometimes spade shovels. Trench channel samples were taken each 5 ft. When mineralized veins are encountered, a narrower (to a minimum
of 6 in) segment was collected. This reflects previous owner’s interest in evaluating the stibnite-bearing veins for selective extraction
rather than looking at the deposits as a lower grade bulk tonnage play. All drill core was cut by diamond saws at the mine site. Half
of the core was split and bagged for shipment to the selected lab; the other half was kept for further logging activities and reference.
The location of trenches and diamond drill holes are described for
the lode deposits at Pringle Bench and Workman’s Bench in Chapter 7 of this report. Summaries of the number of RC and diamond core
samples are presented in Tables 5.1 and 7.1 of this Technical Report. The locations of channel samples for the Workman’s Bench underground
development work deposit are shown in Figure 8.1. Table 8.2 summarizes how sample interval and assay data are presented by the QP from
the diamond core drilling, surface-trench, and underground sampling programs.
In February 2008, the previous owner completed an underground
channel sample program of thin zones of quartz-stibnite mineralization exposed in the workings driven in late 2007. True sample widths
across mainly massive stibnite veins ranged from 3 inches-to-11 inches and averaged 6.5 inches. In April 2008, geologists re-entered
the underground workings and collected an additional 92 channel samples along 460 ft of underground development.
A portable, air-powered chipper (i.e., jackhammer) and chisel
were used to extract the samples, mostly 5 ft intervals. The sample channel was first cut with an air-powered rock saw before being
extracted with the jackhammer. Sample weight was estimated to be about 15 pounds each, for a total of approximately 600 kg for the
92 samples. The broken sample was collected on a plastic sheet lain on the floor of the drive immediately below the channel. The QP
considers that adequate care was taken in the collection of the material in the sampled intervals. In April, 2008, the QP collected
23 independent channel samples from underground workings, using sampling methods similar to those described above.
61
During September 29-30, 2008, the QP inspected the
methodology of the sampling methods and approaches during the processing of core from the 2008 Workman’s Bench exploration
program. In contrast to the 2007 exploration drill program on both Pringle and Workman’s Benches, where 5.0 foot lengths of
core were systematically assayed along with selected mineralized zones, sample intervals selected during the 2008 drill program on
Workman’s Bench were entirely focused on the relatively thin mineralized veins intervals in core. Five-foot intervals in core
were not assayed if veinlet mineralization was not recognized. This Previous owner’s decision reflects the desire to focus
exclusively on relatively small, high grade, antimony-gold veinlet zones in core. As a result, the total number of assay intervals
during the 2008 drill program (627) was only 52 percent of the 2007 drill program total (1,195) despite the fact that drill footage
in 2008 (11,597 ft) exceeded the drill footage in 2007 (4,555 ft) by about 160 percent.
Figure 8.1 Geologists collect channel sample in underground Workmen’s
Bench development using horizontal diamond saw cut across mineralized zone; circa April, 2008. From QP files.
62
Figure 8.2 Location of underground development and channel samples,
Workman’s Bench
63
Table 8.2 Table of selected sample composite, illustrating assay
information and true widths of mineralized structures from 2009 Workman’s Bench core drilling program.
Drill Hole #
(Assay
Intervals)
Underground,
Surface  or Drill
Core Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
09SH01
(09SS03)
Drill
Core
‘A’
Zone
181.1
182.0
0.90
0.75
<0.01
0.072
7,730
0.25
2.5
Dense quartz
vein swarm with trace stibnite and arsenopyrite
09SH01
(09SS04)
Drill
Core
West Zone
189.9
190.6
0.70
0.58
0.07
0.126
6,680
0.27
8.9
3.25 inch
thick vuggy quartz-stibnite vein
09SH02
(09SS019)
Drill
Core
‘A’
Zone hanging wall
160.3
162.0
1.70
1.36
5.64
0.035
2,310
0.27
0.9
Quartz
carbonate stibnite stockwork
09SH02
(09SS020)
Drill
Core
‘A’
Zone
162.0
162.9
0.90
0.72
0.18
0.035
4,560
0.37
15.6
Quartz-stibnite
breccias vein; analytical  Sb content lower than visual in core
09SH02
(09SS021)
Drill
Core
‘A’
Zone
162.9
164.6
1.70
1.36
3.05
0.042
3,790
0.40
29.1
Two vertical
quartz-stibnite veins 0.75 inches thick; 0.30 foot carbonate vein
09SH03
(09SS035
Drill
Core
‘A’
Zone hanging wall
164.1
164.6
0.50
0.40
0.35
0.012
NA
NA
NA
3/8 inch
qtz +Sb; 30% stibnite—over-drilled
09SH03
(09SS036)
Drill
Core
‘A’
Zone
168.0
168.6
0.60
0.40
0.80
0.019
NA
NA
NA
<1/2
inch qtz-Sb; 80% stibnite-over -drilled
09SH04
(09SS039-040)
Drill
Core
‘B’
Zone
145.0
148.7
3.70
2.75
1.57
0.169
5,130
0.90
2.6
Quartz-carbonate
veins and quartz-stibnite breccias—contamination from hanging wall
09SH04
(09SS047)
Drill
Core
‘A’
Zone
193.6
195.8
2.20
1.62
3.71
0.002
415
0.24
3.4
Abundant
quartz carbonate stibnite
09SH04
(09SS048)
Drill
Core
‘A’
Zone
195.8
196.3
0.50
0.37
1.65
0.190
2,170
0.37
15.7
Similar
to 09SS047 but more arsenopyrite
09SH05
(09SH022)
Drill
Core
‘A’
Zone
276.2
276.7
0.50
0.30
47.29
0.217
2.9
1.16
0.7
Hanging
wall of massive stibnite vein; arsenopyrite in hanging wall
09SH05
(09SS023)
Drill
Core
‘A’
Zone
276.7
278.3
1.60
1.30
69.21
0.251
<0.1
1.63
0.2
Massive
stibnite vein (see cover photo)
09SH05
(09SS024)
Drill
Core
‘A’
Zone
278.3
278.8
0.50
0.30
39.53
0.389
17.9
0.79
1.3
Footwall
contact zone
64
Sample security from both placer and lode sampling programs were maintained
by geological contractors. All samples were stored in a secure trailer at Nolan Camp. Individual samples were composited into larger rice
bags and sealed with plastic tape. Samples were then stored in a locked trailer at Nolan Camp prior to transport to the ALS Chemex preparation
laboratory in Fairbanks, Alaska.
8.2
Laboratory Sample Preparation Methods and Analytical Procedures
Samples from placer deposits were analyzed in their entirety
(i.e., no sub-sampling) to minimize potential bias from sub-sampling of material with such a large proportion of gold nuggets.
Samples from RC drilling were split with a splitter and surface samples were split by contracted laboratory personnel. The primary
sample was processed through a gravity separation technique at the drill rig to separate gold nuggets, finer-grained gold, and heavy
minerals from the host gangue material. A systematic procedure was developed by Tricon Mining geological staff for the collection
and preparation of percussion drill hole samples. The sample was emitted from the drill and immediately submitted to a drill-mounted
cyclone to dissipate the sample velocity, and then passed through a Jones
TM
splitter. The split sample was then processed
through a Denver Gold Saver
TM
. The oversize discharged to a revolving drum screen to a ‘picking plate’ where
+¼ inch nuggets were hand-picked. The – ¼ inch undersize reported to a Teflon lateral action sluice and the
resultant heavy mineral concentrate was hand-panned. The gold in the concentrate was then picked with tweezers. The remaining fine
heavy concentrate was treated with amalgamation and the resultant gold bead was weighed along with the hand-picked gold with a
Champ
TM
electronic balance.
The previous owner conducted volume measurements of samples collected
during 2003 and 2004 placer drilling programs. Results of these measurements showed that a 5 ft sample from the Nolan Deep Channel averaged
14.80 gallons, whereas a 5 ft sample from the Mary’s East Bench deposit averaged 19.20 gallons. The Nolan Deep Channel deposits
contain significant amounts of silt, sand, and clay, whereas the left limit bench deposits such as those at Mary’s East are much
coarser grained. Determination of volumetric measurements results in a more accurate estimate of gold grade in the placer deposit. Hence
each placer deposit was volume-characterized by Silverado contractors during exploration.
Sample grades for placer deposits are expressed as gold content
per bank volume of material where bank volume is the in-situ volume of material. To calculate the bank volume the sample volume must
be factored using a predefined swell factor that quantifies how much the volume of the sample increases as a result of extraction.
Swell factors for mine operations were estimated by Murton (2004) to be 130%, whereas the calculated swell factor during the
2003-to-2004 rotary drill programs was calculated by Flanigan (2004) to be 117%. The weight of the gold extracted from the sample
(the method of recovery which was described previously) is divided by the bank volume of the sample to
determine the grade of the sample expressed in oz/cu yd Au.
65
For lode exploration, diamond core samples were split in half on site
by company personnel using a core saw. Half of the core was submitted to external laboratories for analysis and half is retained on site.
ALS Chemex of Vancouver, Canada, an ISO 9001:2000 accredited laboratory,
analyzed most of the Silverado sample stream from lode-style deposits. Alaska Assay Laboratories LLC of Fairbanks, Alaska, an ANS/ISO/IEC
Standard 17035:2005 accredited laboratory were subsequently used by Silverado for analytical work. Both laboratories produced a coarse
split from which a finely ground material to 150 mesh is analyzed. The pulverized material and the coarse reject were stored by the laboratories
for possible re-analysis. Both laboratories were utilized during the 2008 exploration program. In 2009, analytical services were exclusively
provided by ALS Chemex Labs (now ALS USA Inc.).
8.3
Quality Control and Quality Assurance Programs
Quality assurance and quality control (QAQC) was routinely performed
by the previous owner’s exploration contractors. During 2008, standards have been obtained from Shea Clark Smith, (Minerals, Exploration,
and Environmental Geochemistry) in Reno, Nevada that supplies standards for mining companies. For core intervals intersecting vein zones,
two standards and one blank are randomly inserted in batches of twenty (20) sample intervals. One standard contains 0.174 oz/ton gold.
The other standard contains 0.261 oz/ton gold. For core penetrating mainly wall rock zones, one standard and one blank were randomly inserted
into batches of twenty (20) samples, with the standard used containing 0.174 oz/ton gold. The standards for gold that were inspected by
the QP during 2008; all appear to be within a narrow 1.0 percent of the values.
During 2009, standards were again obtained from Shea Clark Smith, (Minerals,
Exploration, and Environmental Geochemistry) in Reno, Nevada. One mineralized standard contained 6 ppm (0.174 oz/ton) gold while another
contained 9 ppm (0.264 oz/ton) gold. A blank consisting of pure quartz was also obtained from Shea Clark Smith. Duplicate samples were
prepared by Karl Sharp using known intervals with known assay values. In 2009, standards, blanks, and duplicate samples were inserted
into the sample stream every twenty (20) samples in a similar fashion to that developed for the 2008 sample stream.
The QP inspected ALS Chemex certified analytical results for the 2008-2009
programs. For example, in 2009, Certificates FA09127826-828; FA0917035-037; FA09091985; FA09085913; and FA09081078 contained 170 assayed
samples from all sources. Of these the QP observed the standards and blanks. The low gold standard (6 ppm Au) ranged from 5.91-6.27 and
averaged 6.04 ppm Au. The higher standard (9 ppm Au) ranged from 8.61-9.38 and averaged 8.84 ppm Au. The QP judges that the contracted
laboratory was performing in a satisfactory manner. Antimony standards were not deployed.
66
Core recovery was checked in every box coming off the drill rig. The
QP witnessed core loggers estimating core recovery during 2007 and 2008. During 2008, Silverado's geological contractors have reported
that core recovery and Rock Quality Designators values (RQD) averaged 95 percent, especially after switching from BTW size core to the
larger diameter NQ core. During his October 22-23, 2007, June 13-14, 2008, and September 29-30, 2008 site visits, the QP
noted that core recovery is consistently very high and averages >90 percent. Lower RQD values occur in mineralized intervals.
8.4
Qualified Person’s Opinion Regarding Sample Collection
and Preparation
The QP considers that contractors for the previous
owner competently prepared samples analysis and dispatch to external laboratories. The QP observed sampling procedures and QAQC issues
at Nolan Creek since about 2003.
During the
April 20
th
2008 inspection of the Workman’s Bench underground workings,
the
QP suggested some modifications to Silverado contactors during the collection of channel samples underground, which
included covering the floor of the drift with a tarp to collect the samples and to prevent contamination and using larger sample
bags than were being used.
For the 2009 programs, only narrow mineralized zones were selected
for assay; therefore, the bulk of the core volume was not submitted for analytical work. The QP suggests that a selected portion of the
unanalyzed core should be submitted for: 1) the same analytical methods as used in the mineralized zones in order to estimate the possibility
of bulk mineable albeit lower grade zones of mineralization; and 2) acid-base accounting (ABA), in order to better predict the acid generating
capacity (AGC) of the site during development and for future permitting requirements.
67
9.0
DATA VERIFICATION
9.1
Exploration and Mineral Resource Data Verification
The QP has verified all exploration and resource data relied upon in
this Technical Report.
Concerning placer deposits, the QP observed contractors from the previous
owner prepare placer samples for separation of placer gold, the subsequent weighing of recovered gold and calculation of gold per unit
volume of material. Concentrate splits were stored at Nolan Camp. The QP inspected these records during 2003-to-2004 and also looked at
chip trays collected during 2006-to-2007. The QP observed placer exploration conducted by the previous owner’s contractors during
underground development of Swede Channel in 2006. The QP is confident that contractors conducted a sound panning program that was directly
factored into the development of drifts and crosscuts.
Concerning lode deposits, in 2009, the QP observed mineralized sample
intervals being prepared for submittal to the ALS Chemex Laboratory in his Fairbanks office complex. All of the core boxes were nailed
shut prior to shipment to Fairbanks. According to geologist Karl Sharp (pers. commun., September, 2009), splitting occurred after the
core was photographed.
Selected field duplicates of sampled intervals, two from underground
channels, and one from a trench, were submitted by the QP to an umpire laboratory (Alaska Assay Laboratories LLC) to check analytical
results from ALS Chemex. In as much as the samples are collected by different individuals at different times and analyzed by different
labs, the QP judges that results from this limited comparison indicate acceptable levels of bias and accuracy for gold and antimony values
(Table 9.1).
Table 9.1 Duplicate analytical comparisons between QP and contractor
samples
Sampler
Sample #
Sb (%)
Au (oz/ton)
Description
QP
203808
43.64
1.190
Underground sample, Alaska Assay
Laboratories
Karsten Eden
WBUG5-S2
50.04
1.040
Underground sample, ALS Chemex
QP
203810
41.00
0.696
Underground sample, Alaska Assay
Laboratories
Karsten Eden
WBUG8-S3
58.02
0.696
Underground sample ALS Chemex
QP
267397
36.51
0.793
Trench Sample, Alaska Assay
Laboratories
Silverado Contractor
Trench J1
29.30
0.120
Trench Sample, ALS Chemex
During 2008, Silverado submitted sixty-one (61) duplicate samples of
mineralized core to ALS Chemex, and analyzed them for the Au-GRA21 and Sb-AA65 packages (Table 9.2). The QP did not rigorously compare
the data but generally found that, by visual inspection, the assay results for both antimony and gold compared, varied, on average about
2.5 percent.
68
Table 9.2 List of Duplicate Samples, Workman’s Bench Drilling
Program 2008
Total: 61 duplicate samples
FA08083476
08SS13
08SS14
08SS18
08SS25
FA08086192
08SS33
08SS46
08SS51
FA08093001
08SS102
08SS106
08SS111
FA08093002
08SS119
08SS122
08SS123
08SS124
FA08076587
08SS02
08SS09
FA08093003
08SS52
08SS67
08SS68
08SS70
FA08095943
08SS138
08SS147
08SS149
08SS150
FA08117975
08SS235
08SS241
08SS242
FA08135958
08SS353
08SS372
FA08135959
08SS375
08SS386
FA08108707
08SS281
08SS283
08SS287
FA08108706
08SS195
08SS196
08SS212
FA08108707
08SS215
08SS218
08SS227
FA08117976
08SS254
08SS255
08SS192
FA08100110
08SS177
08SS182
08SS190
FA08100111
08SS158
08SS159
08SS170
FA08093000
08SS73
08SS80
FA08127442
08SS313
08SS326
FA08127448
08SS302
08SS305
FA08130451
08SS342
08SS351
FA08137318
08SS413
08SS426
69
In the vast majority of cases (>97%), the mineralized zones had
corresponding elevated values of antimony and frequently (but not always) gold. In four (4) examples (1.9 percent of the total 202
sample assay intervals on Workman’s Bench), where stibnite-quartz and trace visual gold was identified in core, analytical results
did not indicate correspondingly high metal values; i.e., sample intervals 08SS216 (DDH 08SH14), 08SS379 (DDH 08SH32), 08SS380 (DDH 08SH32),
and 08SS243 (DDH08SH17). In the remaining 98.1 percent of the assay intervals, analytical results seemed to correspond with estimated
amounts of mineralization; i.e. estimated content of stibnite and occasional visible gold.
9.2
Exploration Data Limitations
Although drill core intervals can be checked through re-assay activities,
placer intervals cannot be checked as the sample material is completely consumed. After interviews with the previous owner’s contractors
involved with the earlier placer exploration programs, the QP is satisfied that exploration data acquired during that time is reliable.
The QP cannot comment on the validity of sampling and analysis performed
prior to the mid-1990s, because he was not present during the exploration programs. The early RC (percussion) drill programs directed
at assessing lode mineral potential in the Nolan Creek area are not very well documented. For example, the specific locations of drill
hole collars on the Thompson Pup area could not be found.
Because of uncertain sampling procedures, and apparent inaccurate orientations
of mineralized structures, the QP did not use percussion drilling results to calculate resource estimates.
70
10.0
MINERAL
PROCESSING AND METALLURGICAL TESTING
10.1 Placer Deposits
The previous owner used a number of different plant designs for the
processing of gold from placer deposits. During the early 1980s, test pits were completed on Archibald Creek and limited amounts of pay
gravels were fed into a trommel screen, and standard sluice box equipped with Hungarian riffles. During the 1990s, recovery technologies
improved with the construction of newer washing plant facility. In 2003, a new plant was designed to wash 150 cu yd/h in two 10-hour shifts
per day. Improvements to the plant included: 1) Hydraulic riffles to promote an active riffle bed in the sluice box; 2) a one inch screen
classifier; 3) A sand screw to the dewatering system; and 4) because of coarse gold, an oversize discharge belt with a nugget alarm system.
In 2006, the washing plant was redesigned to improve plant
efficiency and improve gold recovery (Figure 10.2 and Figure 10.3). Oversize (greater than 4 in) from the plant is directed to a
Techron
TM
Model #5500 conveyor belt (Techron) oriented at 90° to the length of the washing plant. Any nugget that
hits this belt was automatically scanned by the metal detector which is situated at 45 ft along the conveyor belt system. If
detected, a trap door was triggered, which dropped the nugget into a wash tub. It is worth noting that the largest gold material
recovered during the 2006 washing plant cycle, a flat 9.05 oz gold nugget composed of essentially pure placer gold, escaped the main
grizzly and the elongated harp screen but was detected and ‘saved’ by the electronic detector.
Undersize material
was further sorted by size and gold was recovered using two sluice boxes. All heavy mineral concentrates accumulated in hydraulic nugget
traps within the sluice boxes and in the hydraulic riffles ere further processed through a Denver Gold Saver
TM
.
The washing plant had five nugget traps (numbered 1 to 5 on Figure
10.3
), 16 ft of hydraulic riffles, and 16 ft of expanded riffles.
The plant layout was approximately 110 ft in length and about 65 ft in width.
During operations, the QP observed a steady, even feed of pay gravel,
efficient removal of oversize materials, and an effective water delivery system. From discussions with company officials and direct inspection
by the QP, there was practically no placer gold observed in the middle and lower riffles of both the main and sulfide sluice boxes. Panning
of concentrates from these sections failed to yield any significant placer gold (Josh Moore, pers. comm., 2006). Gold recovery was very
high and estimated to exceed 95%.
71
Figure 10.2 Side view of 2007 Nolan washing plant
72
Figure 10.3 Plan view of 2006 Nolan wash plant
73
The Silverado gold recovery plant was designed to process 35 yd/hr.
From June 27 to July 21, 2006, the plant processed 8,896 cu yd during 278 hours of operation at a rate of 32 cu yd/h. During
June 20-to-July 30, 2007, the plant operated for 705 hours and processed 19,615 cu yd, an average rate of 29 cu yd/hr. When
fully operational, two day-and-night shifts washed for 11 hours each, with 2 hours each day devoted to plant maintenance.
During his June 2026 inspection of the property, the QP searched
for but not identify any component of the 2006 washing plant and assumes that it has been dismantled/scrapped and/or moved to another
site.
10.2 Lode Deposits
The previous owner acquired a permit from USBLM
to collect and process a maximum 1,000 cu yd of material from the Workman’s Bench lode for metallurgical testing. This large bulk
sample could determine further grinding, flotation, and other processing and characteristics of stibnite; however, the bulk sample was
never collected.
In April 2008, the QP collected a 414 pound bulk sample of semi-massive
to massive stibnite, vein quartz, and wall rock gangue all from the defined mineralized ‘A’ zone in the Workman’s Bench
underground workings (see Bundtzen, 2008c). The purpose was to determine the mineralogical nature of the antimony mineralization and
the source of significant gold values. There is variation in gold content of the stibnite zones even within constrained sample collection
areas. The bulk sample was sent to Hazen Research Labs Inc. (Hazen) in Golden, Colorado, USA in to determine the most optimal grind for
potential marketing of a stibnite product and identify the mineralogical nature of gold and antimony values. The QP believes that the
bulk sample was representative of the ‘A’ mineralized zone on Workman’s Bench.
Two reports were produced by Hazen in September: 1) Report #1-Flotation
and Gravity Results, Workman’s Bench Stibnite-Gold Deposit, Wiseman District, Alaska; and 2) Report #2-Mineralogical Examination,
Workman’s Bench Stibnite-Gold Deposit, Wiseman District (Schultz, 2008 a, b). Both yielded important and relevant information. Hazen
tested both gravity and flotation separation technologies, provided for heavy mineral components of the ore, predicted recovery of both
stibnite and free gold, and suggested recovery technologies to be used in a future operation.
Importantly, in the QP’s opinion, the bulk sample demonstrated
that stibnite can be effectively separated from the other heavy mineral components such as gold and arsenopyrite, which report separately
in the rougher concentrate table testing (see Figure 10.3). Hence the two economic products of the proposed mineral development, stibnite
(antimony) and native gold, can be successfully separated. The stibnite concentrates can be upgraded to market quality and most of the
gold (90 percent according to Hazen test results) can be recovered at the mine site, using gravity separation techniques.
74
Figure 10.3 Tabled Rougher Concentrate from Workman’s Bench
Deposit analyzed by Hazen Research Labs, Inc.
75
Gravity separation using a quarter Deister
TM
shaking table
produced a second, cleaner gold and arsenopyrite concentrate that assayed 9.4 oz/ton. This test work indicates that coarse gold and coarse
stibnite can likely be recovered by gravity separation; however, fine-grained components of both mineralogical products might benefit
from flotation (Figure 10.3). Given the tendency for stibnite to ‘slime’, a flotation circuit may be an important prerequisite
for a recovery system. Using gravity-only methods would result in a stibnite recovery of approximately 85 percent and gold recovery of
about 90 percent.
Report #2 (Schultz, 2008b) was designed to learn more about the mineralogical
constituents of the bulk sample. In an effort to determine the nature of the gold occurrence, gravity concentration was carried out using
heavy liquid, to enable detection and to allow examination of a statistically valid number of gold particles and also to obtain preliminary
information on response to gravity separation. A 500-g split from the minus 10-mesh head sample was dry-screened at 35-mesh, and the oversized
material was stage-crushed to minus 35-mesh for the gravity separation and the mineralogical work on the separated fractions. For the
separation, the minus 35-mesh split was wet-screened at 500 mesh. The minus 35 mesh fraction was separated with heavy liquid using acetylene
tetra-bromide at a specific gravity of 2.96 to upgrade the heavy minerals and concentrate the gold (Figure 10.4).
Figure 10.4 Hazen mineralogical separation process flowchart, Workman’s
Bench bulk sample.
76
The heavy liquid sink product contained as predicted, dominantly stibnite,
but also other minerals as summarized in Table 10.1 below.
Table 10.1. Composition of the Heavy-Liquid Sink Product
Constituent
Estimate
Area, %
Stibnite
85
Gangue
10
Pyrite (including marcasite)
3
Arsenopyrite
2
Rutile
1
Chalcopyrite
Trace
Covellite
Trace
Gold
Trace
Small gold inclusions (less than 20 µm) in stibnite were
observed in the sink product. The identification was confirmed by Electron Microprobe (EMP) analysis, which shows 100 percent Au.
Also, fine microcrystalline gold was observed associated with stibnite. The EMP analysis of these particles also showed 100 percent
Au. Figure 10.5 illustrates gold inclusions in stibnite.
Figure 10.5 Gold (bright color) in stibnite (gray grain), Workman’s
Bench Bulk sample.
77
A split portion of the concentrate from the shaking table was panned
to concentrate the gold even further. Several gold particles were observed ranging in size between 500 µm to about 2 mm. Figure
10.6 illustrates the gold in the shaking table concentrate; note the coarse nature of the gold particles in the sample.
Figure 10.6 Stibnite-gold concentrates from table products from
Nolan Bulk Sample—A and B illustrate sampled product variability. Magnification is approximately 25X.
10.3 Trace Element Content of Nolan Mineralized Zones
Trace element content of the stibnite
mineralization in the Nolan Creek area will affect potential marketability. Amalgamet-Canada
TM
provides
specifications for threshold concentrations of trace elements in stibnite ores, which if exceeded, could result in penalties. The metals
of concern are mercury, lead, arsenic, selenium, tellurium, tin, and bismuth. Three of these elements, mercury, lead, and arsenic, are
addressed because they are usually the most scrutinized during metallurgical and environmental evaluation of stibnite ores. The previous
owner analyzed for all of these elements during their Workman’s bench exploration program. When the QP released his July
29,
2008 NI 43-101 Technical Report (Bundtzen, 2008c) to the previous owner, he indicated that mercury analyses did not exist for 2007 and
earlier exploration sampling programs and recommended that mercury analyses be given a priority, given the need to document mercury levels
in stibnite-gold mineralization for metallurgical and marketing issues. The previous owner responded to this recommendation and added
mercury analyses to the analytical package for the 2008 core drilling campaign on Workman’s Bench.
Table 10.2 compares a selected roster of industry standard trace
impurities with trace elements identified from the Workman’s Bench and Pringle Bench stibnite-quartz zones. Arsenic, mercury,
lead, selenium, bismuth, tellurium, and tin, all pass accepted industrial criteria (maximum quantities) for those metals. The
average levels for all of the trace metals in the assay intercepts fall below the Amalgamet-Canada metal specifications, which were
used as a standard to test the metallurgical nature of the Workman’s Bench mineralization.
78
The Silverado data set includes
mercury results from 174 mineralized assay intervals used in the resource analysis, or about 80 percent of those used in the mineral
resource estimates. For specific clarification, mercury assays exists for all holes drilled in 2008 and 2009, but does not exist for
the 2007 drill holes, nor in surface trench samples and underground channel samples collected prior to April, 2008. However, the
2008 and 2009 drill holes and respective intercepts into mineralized zones flank the 2007 drill core intercepts described in the
previously released July, 29
th
, 2008 Technical Report (Bundtzen, 2008 c). The 2008
drill intercepts represent approximately
80 percent of all mineralized intercept data acquired on Workman’s Bench and
Pringle Bench. Figure 10.7 illustrates where mercury data is available in mineralized intervals.
Mercury values from the 2008 drill-indicated intervals range from nil
to a maximum value of 8.12 ppm and average 0.774 ppm mercury (n=134). Twenty-one (or 16 percent) of the intervals contained greater than
1.00 ppm mercury whereas 113 (or 84 percent) of the intervals contained less than 1.00 ppm mercury. The QP inspected the 2009 drill core
analytical data from 43 intercepted mineralized zones. Mercury values from the 2009 intercepts ranged from 0.22 ppm-to-15.70 ppm and averaged
1.45 ppm. None of the mercury values exceed the threshold of concern (see Table 10.2).
Lead and arsenic values exist for all 2007, 2008 and 2009 drill core
intervals, but not trench or chip samples. For 2007-2008, about 87 percent of the mineralized intercepts have Pb and As control. All 2009
vein-fault assay intervals have arsenic and lead assay control. For 199, or 91 percent of the analyses, arsenic levels average 2,379 ppm
(0.224 percent) and lead values are very low, averaging just 17.1 ppm. The highest lead value was 275 ppm, indicating that lead only exists
in very small amounts in the mineralized rock.
However, for 15 sample intervals or 8 percent of the sample population,
arsenic values are >1.00 percent. Arsenic levels in zones of greater than 10 percent antimony average about 0.18 percent. For 2009,
arsenic values ranged from 2.9 ppm to 9,380 ppm and averaged 2,312 ppm. Lead values ranged from 0.2 ppm to 14.5 ppm and averaged 6.55
ppm. The QP is confident that the mercury, arsenic, and lead values encountered in the core drilling program provides adequate information
for the metallurgical testing summarized in this Technical Report.
The maximum arsenic value in these higher-grade Sb intervals is 0.41
percent in sample interval #203789, which contains 22.48 percent Sb (sample control #61, Appendix I). During consideration of milling
technologies, future work should focus on the most effective removal of arsenopyrite from the stibnite concentrate prior to marketing.
The metallurgical data shown by the Hazen Research on the Bulk Sample (see Figure 10.1) shows that arsenopyrite and gold report to separate
mill circuits during gravity processing.
79
Figure 10.7 Drill plan showing the locations of mercury analyses
on 2008 core drilling program on Workman’s Bench
80
Table 10.2 Selected stibnite quality comparative characteristics
from Amalgamet-Canada.
Amalgamet-Canada Threshold of
Average Content Workman’s bench Mineralized
Concern Specifications for Stibnite Ores
Zones
<0.50 % Pb+As
0.224 % arsenic for 91 percent of intervals; and 17.1 ppm
lead
Trace Selenium (<30 ppm)
5.0 ppm selenium
Trace tellurium (<10 ppm)
<2.0 ppm tellurium
Trace tin (<10 ppm)
<4.0 ppm tin
Trace bismuth (<10 ppm)
<3.0 ppm bismuth
Trace mercury (<20 ppm)
0.90 ppm mercury (maximum value is 15.70 ppm)
(1)
(1)
mercury data available for 177 mineralized intervals
from 2008 and 2009 core drilling programs
10.4 Recovery Estimates
In Report #1 (Schultz, 2008a), rod mill grinding followed by two rougher
stages yielded a gold recovery of 98% and an antimony recovery of nearly 100%, which indicates flotation may be a viable process for recovering
gold and antimony at Workman’s Bench. The gold and antimony grades from the sample were 0.546 oz/ton (as stated, 18.7 g/t) and 36.7
percent, respectively, which compare favorably to the average measured and indicated resource grade estimates (Chapter 11).
10.5 Qualified Person’s Opinion
Metallurgical Results of the Bulk Sample processed by Hazen Research
suggest that coarse gold and coarse stibnite can likely be recovered by gravity separation; however, fine grained components of both mineralogical
products might benefit from flotation (Figure 10.3). Given the tendency for stibnite to ‘slime’, a flotation circuit may be
an important prerequisite for a recovery system. However, using gravity-only methods could result in high stibnite and gold recoveries.
In the QP’s judgment, the Hazen bulk sample work, coupled with
his own mineralogical work derived from his underground sampling, provide enough information to initiate design and operations for recovery
of gold and stibnite.
Lead values ranged from 0.2 ppm to 14.5 ppm and averaged 6.55 ppm.
The QP is confident that the mercury, arsenic, and lead values encountered in the core drilling program provides adequate information
reducing their effect on concentrate quality. However, because arsenic is present in significant amounts because it is part of the gold-antimony
mineral system, it’s presence has to be taken into account. During design of a mill and marketing of a sulfide concentrate. The
QP reviewed tin, bismuth, selenium, and tellurium values. For the majority of the mineralized zones, values were below limits of detection
as indicated in Table 10.2.
81
11.0
MINERAL RESOURCE ESTIMATES
11.1
Disclosure
The mineral resource estimates reported in this section were prepared
by Mr. Thomas K. Bundtzen, President of Pacific Rim Geological Consulting Inc. and AIPG Certified Professional Geologist. Mr. Bundtzen
is the QP and is independent of GML/USAC. In accordance with CIM Definition Standards (Staff, 2003, 2004, 2005a, b), a mineral resource
may be sub-divided into Inferred, Indicated, and Measured categories. “Measured and Indicated Mineral Resources” are
that part of a mineral resource for which quantity and grade can be estimated with a level of confidence sufficient to allow the application
of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. An “Inferred
mineral resource” is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence
and limited sampling and reasonably assumed, but not verified, geological and grade continuity (Staff, 2004). The QP judges that the mineral
resource estimates presented in this Section are representative of the mineralized zones that have been explored by the previous
owner.
The QP is unaware of any issues that materially affect the mineral
resource in a detrimental sense, and has checked agency records, company correspondence with regulatory agencies and reviewed regulatory
agency websites. In addition:
·
To the best of the QP’s knowledge, there are no known material exploration, legal, marketing, socio-economic,
political, title, permitting, or taxation issues;
·
To the best of the QP’s knowledge, apart from the usual environmental aspects that require consideration
as part of any mineral exploration project, there are no known material specific environmental issues; and
·
To the best of the QP’s knowledge, there are no known material mining, metallurgical, or infrastructure
issues other than those discussed in this Technical Report.
11.2
Key Assumptions, Parameters and Methods
Firstly, according to CIM standards, “Mineral Resources that
are not Mineral Reserves do not have demonstrated economic viability”. The writer (QP) judges that the gold-antimony Nolan Deposits
contain Measured, Indicated and Inferred Resources of gold and antimony. The placer gold deposits contain both Indicated and Inferred
Mineral Resources of placer gold.
The QP estimated mineral resources using the following steps:
·
Personal inspection of both and the Nolan Creek placer-gold and Workman’s Bench lode gold-antimony
properties during 1999-2004, and 2007-to-2009 respectively.
·
Database compilation and data validation by the QP.
·
Geological interpretation and modeling by the QP.
·
Compositing assay intervals to a common length.
·
Determination of average material density for both lode and placer properties by the QP.
82
·
Analysis of grade variability by the QP.
·
Polygonal estimation of grade by compositing of sample assay information taken within designated widths
and lengths of mineralized zones by the QP.
·
Assignment of appropriate cut-off grades, the lowest grade that the QP judges can be mined economically.
·
Classification of confidence with respect to CIM (2005) guidelines by the QP; and.
·
Mineral resource tabulation and validation of the resource estimates by the QP.
Because of the well-designed drill data set available for the Nolan
Creek Placer deposits, the writer has produced an Indicated Resource estimate for placer gold, using accepted polygonal weighting methods
that have been deployed for heavy mineral placer deposits worldwide. Doheny (1941, 1942a, b) describes polygonal resource estimation methodology
while assessing large, low grade placer gold resources for both the United Stated Smelting, Refining, and Mining (USSR&M)
Company in the Nome and Fairbanks districts of Alaska and the Yukon
Consolidated Gold Corporation (YCGC) operations in the Klondike district in Yukon, Canada. Daily 1962) advocated use of polygonal weighting
methods for globally distributed large heavy mineral placers. Peters (1978) describes five geometric patterns used in polymetallic lode
mineral resource calculations, including the triangular block method used in this analysis.
A Society of Economic Geologists (SEG) publication
summarizes polygonal methods of resource estimation in
Ore Reserve Estimates in the Real World
(Stone and others,1998). While describing
triangular estimation techniques, these authors state:
“Polygons can be constructed with the drill holes
at the corners of the polygons. Such polygons consist of triangles; the solid lines define triangles with a drill hole at each apex…the
area is easily calculated but the thickness and grade are calculated by averaging the intercepts in the bounding drill holes”.
The triangular method works best when the majority of samples exceed
cut-off grades in large, planar-shaped deposits such those that frequently occur in placer fields, including in the Nolan Creek Deposits
or thin, linear vein-like lode deposits. This is also the methodology selected by the writer for estimating Measured, Indicated and
Inferred lode Mineral Resources at Nolan Creek.
Although this Technical Report does not estimate Mineral Reserves and
instead only reports Mineral Resources, Section 229.1302(d)(2) of SK 1300 states that an assessment of resources as presented
in a Technical Report of this nature must estimate a cut-off grade from ‘assumed’ unit costs and estimated commodity prices
disclose the prices used and reasons for choosing cut off grades. The QP uses a cutoff grade of 0.06 oz/yd gold for indicated gold resources
found in drill-tested, deeply buried placer deposits. Using a price estimate of $2,500/ounce, this cutoff grade reflects the greatly added
costs of mine extraction encountered during the mining of frozen, deeply buried mineral resources which require underground mine technologies
for extraction of the gold.
83
Consistent with past Technical Reports produced by the QP for the Nolan
Sb-Au lodes, a cut-off grade of 4.0 percent ‘equivalent’ antimony was used, reflecting the dominance of Sb in the resource
estimates. A subsidiary factor corroborated the economic cutoff grade of 4.0 percent equivalent antimony. This includes gold values. The
QP understands that commodity prices (Sb and Au) have risen since release of previous Technical Reports. He has assumed a price of $12
US/pound for refined antimony in this study and $2,500.00/oz gold Upon inspecting core and assay interval information from both Pringle
Bench and Workman’s Bench, the QP also observed that a 4 percent antimony value (6-7 percent stibnite) generally reflects sharp
metallogenic boundaries of the mineralized veins being investigated (see Figure 11.4-B). The drop-off at approximately 4.0 percent antimony
equivalent is apparent in most assay intervals (for example, see Sub-Chapter 11.7—
Mineral Resource Uncertainties
(page 115-119)
and Appendices I and II of this Technical Report.
11.3 Mineral Resource Estimates
Concerning placer deposits, the QP estimated mineral resources for
a number of deposits at Nolan Creek Figure (11.1). The QP considered the resource summaries of Armstrong et al 1994) and Childress (1995)
during his review of placer resources. The QP considers that the two deposits, D-Block #1 and 3B3 Block contain Indicated Resources of
gold and the remaining five deposits contain only Inferred placer gold resources (D-Block #2 Below Discovery, Wooll Bench, Treasure Chest
South, Smith Creek, and Slisco Bench).
84
Figure 11.1 Location
of placer-style gold mineral resource estimates, Nolan Creek.
Only the Indicated placer gold resources in D-Block #1 and 3B3 Block
are presented in this Technical Report. Details for the inferred resources estimates can be found in Bundtzen (2008c).
The QP estimated indicated placer gold resources in the Nolan area
using a polygonal weighting method (i.e., Triangular Diagram Method) as advocated by Doheny (1941; 1942 a, b), Daily (1962), Peters (1978),
and Cook (1983). For this method, data from three drill holes are used to estimate the volume and grade for a triangular area of influence.
By linking each triangular area, the method provides a model of the placer mineral deposit in terms of shape, grade, and depth.
The accuracy of the resource estimate is influenced by the density
of drill holes in the deposit, the regularity of the drilling pattern (i.e., whether the drilling pattern is isotropic, anisotropic, or
erratic in distribution), the volume of material estimated by each drill hole, and the inherent variability of gold distribution in the
deposit. Nugget effect is one of the main concerns when estimating resources for this type of deposit. Gold nuggets as large as 41.5 oz
have been recovered from Silverado operations at Nolan Creek, and more than 25 nuggets have exceeded 10 oz. Such coarse
85
gold concentrations are not uniformly distributed in paystreaks, which
is a source of error in placer resource estimation. Other variables that may influence the mineral resource estimation include the proposed
mining method, recovery technologies, clay and boulder content of the paystreak, and accuracy of drill station locations.
Reconciliations of estimated metal content versus actual (mined) metal
content for two selected Silverado’s placer deposits are presented in Table 11.1. These reconciliations indicate that the polygonal
approach to estimation gives favorable results over the life of mining operations. Polygonal estimations on average predict 6% less metal
than actual production while kriging methods significantly underestimate the global metal content of the resources. During the 37-year
history (1928 to 1965) of the United States Smelting Refining and Manufacturing Company (USSR&M) in the Fairbanks district, historically
Alaska’s largest corporate producer of placer gold, about 4.1 Moz of placer gold were recovered with bucketline dredging technologies
in the Fairbanks district. All deposits were defined with drilling lines spaced about 150 ft apart. Actual gold recovery exceeded the
estimates by approximately 8.5% (Boswell, 1979, p. 15).
Table 11.1 Reconciliation of actual versus estimated gold content
for two selected placer deposits, Nolan Creek
Location
Estimation
Drill hole
Drilling
Drilling
Estimated
Mined
Difference
method
count
density
pattern
metal
metal
(%)
(sq ft/hole)
description
(oz)
(oz)
Swede
polygonal
23
403
anisotropic
2,200
2,305
4.7
Underground
Ogden-Eureka
polygonal
53
5,572
isotropic
7,509
8,127
7.6
D-Block #1 Below Discovery is defined by 50 rotary drill holes, 23
of which intercept fluvial sediments with significant gold values. Included in the resource definition are 8 drill holes completed during
1994 and 15 drill holes completed in December, 2003. Drill hole distribution is anisotropic although most of the drilling was aligned
along northwest lines perpendicular to the strike of the interpreted channel. Drilling density averages 2,055 cu yd/drill hole. Depth
to bedrock is quite variable in D-Block #1 Below Discovery and ranges from 10 ft to 75 ft but generally averages about 35 ft. Geological
drill hole logs indicate that the gold concentrations are nearly always on or near the bedrock surface and average about 7.25 ft thick.
Twenty-three polygons define an indicated resource of 4,320 oz Au in 47,278 cu yd of gravel, at an average grade of 0.091 oz/cu yd Au,
(Table 11.2).
South of D-Block #1 Below Discovery, along the same buried channel
trend, twelve drill holes in four lines define the 3B3-Block deposit. This placer deposit is also on or near bedrock but is much deeper
than D-Block #1, ranging from 42 ft to 135 ft and averaging about 75 ft deep. Twelve polygons define a resource of 19,525 cu yd of gravel
averaging 0.099 oz/cu yd Au (Table 11.3). The drilling pattern defining the 3B3-block deposit is anisotropic with 1,627 cu yd/ drill hole.
86
Tables 11.2 D Block #1 Below Discovery and 3B3 Block indicated resource
estimates.
Polygon
Area
Average
Volume
Average grade
Metal
(sq ft)
thickness
(ft)
(bank cu yd)
(oz /cu yd Au)
(oz Au)
A1
6,000
8.3
1,845
0.086
159
A2
7,200
10.0
2,667
0.077
205
A3
5,700
16.6
3,504
0.072
252
A4
8,550
8.3
2,628
0.008
21
A5
5,700
16.6
3,504
0.114
400
B1
6,400
6.6
1,564
0.253
396
B2
8,500
10.0
3,148
0.203
639
B3
7,975
5.0
1,477
0.197
291
B4
7,890
8.3
2,425
0.015
36
B5
6,500
8.3
1,998
0.040
80
C1
7,400
6.6
1,809
0.315
570
C2
7,100
6.6
1,736
0.207
359
C3
7,650
5.0
1,417
0.202
286
C4
4,760
5.0
881
0.022
19
C5
6,800
5.0
1,259
0.043
54
D1
5,600
6.6
1,396
0.025
29
D2
5,350
6.6
1,307
0.023
30
D3
6,500
6.6
1,589
0.021
33
D4
5,240
5.0
970
0.016
16
E1
1,900
6.6
464
0.020
9
E2
2,900
6.6
709
0.023
16
E3
5,000
6.6
1,222
0.024
29
E4
3,900
5.0
722
0.019
14
F1
7,000
5.0
1,296
0.020
26
F2
9,900
5.0
1,833
0.067
123
F3
10,200
5.0
1,889
0.060
113
F4
10,900
5.0
2,018
0.057
115
Total
178,515
7.25
47,277
0.091
4,320
Polygon
Area
Average
Volume
Average grade
Metal
(sq ft)
thickness
(bank cu yd)
(oz /cu yd Au)
(oz Au)
A1
5,400
9.0
1,800
0.103
186
A2
8,400
9.4
2,924
0.101
295
A3
7,600
9.0
2,530
0.096
243
B1
6,900
5.0
1,275
0.050
64
B2
5,400
8.3
1,660
0.113
188
B3
5,500
8.3
1,690
0.144
243
B4
5,250
6.6
1,280
0.284
363
C1
7,900
5.0
1,464
0.027
39
C2
7,600
6.6
1,857
0.037
69
C3
4,500
5.0
833
0.056
47
C4
5,650
5.0
1,046
0.080
84
C5
6,300
5.0
1,166
0.097
113
Total
76,400
6.9
19,525
0.099
1,934
87
Figure 11.2 Polygon layout for D-Block #1 and 3B3-Block indicated
resources of placer gold; 39 polygons were used in calculating the resource estimates.
88
Table 11.3 summarizes the Indicated Mineral Resource estimates for
the D-Block #1 and 3BE Blocks placer gold deposits in Nolan Creek valley.
Table 11.3 Placer deposit Indicated Mineral Resource, USAC Nolan
Creek placer claims
Resource
Cut-off grade
Quantity
Grade
Metal
category
(oz/cu yd Au)
(cu yd)
(oz/cu yd Au)
(oz Au)
Indicated
0.06
66,800
0.095
6,250
Notes:
−
The effective date of these resources was July 2, 2008; amended October, 2026
−
Rounding may result in some discrepancies.
−
No processing recovery factors have been applied to these resource figures.
−
The industry standard unit of quantity for Alaskan placer deposit is cubic yards. The weight of a cubic
yard varies, but averages about 2.4 short tons.
The triangular block method (a.k.a. polygonal method) was
selected by the QP to calculate Measured, Indicated, and Inferred lode antimony-gold mineral resources in the Nolan Creek area.
Peters (1978) describes five (5) geometric polygonal patterns for ore reserve calculations as: 1) uniform spacing; 2)
perpendicular at midpoints between holes; 3) triangular blocks (the method used in this analysis); 4) random spacing; and 5) angular
bisectors. He suggests that geometric pattern methods are best used for tabular deposits such as massive sulfide bodies and for
veins. A sixth method known as the ‘cross sectional method’ is used when there is significant variance in deposit
thicknesses.
There are several important considerations for the comparison of indicated
versus inferred resources: 1) The assessment of the areas of influence between core drill or other control points or ‘area of influence’;
2) the comparison of tonnage present in each polygonal block; 3) drill pattern; i.e., whether it is isotropic, anisotropic, or erratic,
and 4) factoring in other features such as known vein length and depth continuity (or lack of), and assay grade variance. Table 11.4 summarizes
the resource classification criteria adapted by the QP for the Nolan lode evaluation.
Table 11.4 Characteristics of Measured/Indicated resource- versus
Inferred resource, Nolan Creek antimony-gold deposits, Alaska
Locations
Resource Category
Drill
#
Total
Tons/
Comments
Pattern
Polygons
Tons
Polygon
Workman’s Bench
Measured and
Mainly
123
53,616
442
Vein-faults exhibit
Indicated Resources
isotropic
predictable widths
and orientations
Workman’s Bench
Inferred Resources
Erratic to
62
32,459
523
Some interval
and Pringle Bench
anisotropic
variances- both
laterally and at
depth
89
Vein-fault continuity is a significant consideration in assessing the
classification of polygons. ‘A’ zone has been identified for a strike length of 3,500 feet, based on 72 core drill holes and
extended surface sampling control. The West and ‘B’ zones have less strike length but can be verified for significant strike
length, based on test drilling and surface control. The more consistent the vein-fault, the more predictable is the presence of mineralization.
Finally, drill pattern is an important criteria at Nolan Creek. Even though the relative density of polygons at Pringle Bench is more-or-less
comparable with indicated resources on Workman’s Bench, the drill pattern at Pringle bench has a generally erratic distribution.
Because of this, the QP decided that all resources on Pringle Bench could only be regarded as inferred.
For average grades of antimony and gold, each channel interval was
weighted by an interval of influence as well as a width in order to obtain an area of influence. It is important that metal grades not
be overstated in a mineral deposit—thus exaggerating the amount of resources in question. It is also important to note that the
Nolan Creek lodes that have been drill-tested drills are primarily antimony deposits. Based on past and present prices, the antimony content
of the vein-faults constitute about 70-75% of the value. Gold is a byproduct, albeit a significant credit. In order to better understand
antimony and gold distribution in the vein-faults, the QP constructed two (2) histograms that depict: 1) gold grades on Workman’s
Bench and Pringle; and 2) antimony grades on Workman’s Bench and Pringle Bench (Figure 11.3). Some 247 assay intervals are used
in the analysis. For gold, the trends start off with a quick peak between 0.01 and 0.06 oz/ton, then level off and then break away at
a steep 70 degree slope and then level off again at about 1.1 oz/ton. There are six (6) assay values on Workman’s Bench that
exceed 1.0 oz/ton and three (3) on Pringle bench that exceed 1.0 oz/ton.
The antimony histograms for Pringle and Workman’s Bench exhibit
a different pattern to the gold grade data (Figure 11.4-A). For both Pringle and Workman’s Bench antimony values peak early at about
5.0 percent, drop to a relatively flat trend beginning at about 10-15% antimony; and then continues on a horizontal trend all the way
to the maximum 65+% antimony values. Sixty-one (61) or 25 percent of the sample population exceeds 30 percent antimony. The QP assigned
a Sb cut-off grade at 4.0 percent based on assay distribution graphically shown in Figure 11.4-A as well as past-to-current price estimates
for high grade stibnite concentrates.
In order to understand why the gold and antimony histograms differ,
correlation coefficients were calculated for the 2008 Workman’s Bench data, the largest data set (Figures 11.4 a, b). The correlation
coefficient between gold and antimony is 0.58. The correlation coefficient between gold and arsenic is 0.87. It is known from inspection
of core, from the mapping of underground workings, from ore microscopy studies, and finally bench testing (Section 10 of this Report)
that gold is found in quartz-carbonate-gold-arsenopyrite veinlets that frequently form selvages around the main stibnite structures. Gold
is also found as grains in the stibnite itself. The Hazen Research bench tests show that the gold grains are liberated upon grinding of
the stibnite and the arsenopyrite and gold grains bleed off in a separate train during Wiffley table testing.
90
Figure 11.3, a, b Histogram plots of antimony
(on left) and gold (on right) distribution from 247 assay intervals, Pringle Bench and Workman’s Bench vein-faults, Nolan Creek,
Alaska. Note that the data points are derived from submitted assay intervals and are not necessarily total true width estimates for vein-faults.
Figures 11.4 a, b Correlation coefficients for assay intervals from
Workman’s Bench (n=118); a—coefficient of 0.87 for gold versus arsenic; and b—coefficient of 0.58 for gold versus antimony.
91
Table 11.5 shows that the majority of the nine
high-grade gold assay intervals from Workman’s Bench and Pringle Bench are diluted when added to other assayed samples within a
true and weighted vein-fault width.
Table 11.5 Analysis of high grade, assayed gold intervals (>1.0
oz/ton), Workman’s Bench and Pringle Bench antimony-gold deposits.
Deposit
Drill
Hole/
Intercept
True
Gold
Antimony
Comments
sample
Thickness
Grade
Grade
number
(feet)
(oz/ton
(%)
Workman’s
08SH32
205.7-
0.74
1.13
38.74
Part of
a wider zone with two composites
Bench
‘B’ Zone
(08SS393)
206.6
that
contain an average true thickness of
2.9
feet; weighted average grade of
composite
sample interval is 0.18 oz/ton
Au
Workman’s
Channel
172.0-
1.50
1.19
43.63
Measured
1.50 foot true thickness width
Bench
‘A’ Zone
203808
173.5
underground
underground
Workman’s
WBUG5
S2
199.8-
0.50
1.04
50.04
Thin,
0.4 foot wide massive stibnite, vein
Bench
‘B’ Zone
(underground)
200.2
core;
part of 3 composited samples that
taped
average
0.37 oz/ton Au
from
control
point
Workman’s
08SH018
315.0-
1.15
2.88
27.65
Part of
high-grade stibnite zone with
Bench
‘A’ Zone
(08SS255)
316.8
visible
gold when composited with sample
08SS254,
yields an average gold grade of
1.57
oz/ton.
Workman’s
07SH14
209.0-
0.20
1.61
51.42
Part of
a composited interval that has a
Bench
‘A’ Zone
(267394)
209.2
true
thickness of 0.85 feet,
Weighted
average grade of 0.64 oz/ton Au
Workman’s
08SH25
374.8-
1.41
2.86
43.20
1.70
foot intercept has true thickness of
Bench
‘A’ Zone
(08SS351)
376.5
11.0
inches; composited with two other
samples
within ‘A’ zone interval that
averages
1.07 oz/ton Au in a 2.9 foot true
vein-fault
thickness.
Pringle
Bench
09SH18
74.5-75.5
0.66
5.72
37.73
High
grade Au zone has true width of 0.66
‘A’
Zone
(09SS109)
feet.
Combined with true vein width of
2.00
ft for ‘A’ zone., which yields a
weighted
average of 1.95 oz/ton Au
Pringle
Bench
09SH20
205.5-
0.66
1.69
2.74
Quartz-carbonate
stibnite vein zone with
‘A’
Zone
(09SS148)
206.5
visible
gold
Pringle
Bench
Channel
33.0-49.2
16.2
5.56
8.74
Wide
“A’ zone channel
‘A’
Zone
Sample
in
Trench
H;
(07H03)
The QP has decided that a very high-grade gold value should be capped
at 1.9 ounces/ton gold for the grade of a true sample width interval. This relatively high level does allow for the occurrence of high-grade
zones if their spatial relationship shows a pattern. The high-grade zones in both drill holes 09SH 18, 08SH18, 09HS18, and 07H03 were
capped at 1.9 oz/ton gold. The QP believes that the histogram of gold values shown ai Figure 11.3-B supports that decision.
The data set acquired by the previous owners of the federal claims
on Nolan Project is comprehensive. Samples have been professionally collected, assayed and archived by contractors
92
and employees. The QP believes the large sample suite to be
accurate and can be relied upon. However, some selected information was scrutinized by the QP. In addition to the rejection of the
high-grade gold sample interval on Pringle Bench previously described, a few sample intervals were disregarded in the resource
calculations because their values were not believed to be representative. Examples are cited below. Sample control #84-86 samples at
Workman’s bench were reported to be true thickness estimates of 8.2 feet each of disseminated to massive stibnite-bearing
zones that assayed up to 30.30 % antimony and 0.22 oz/ton gold. But upon inspection of the zones in the field by the QP, it was
determined that samples may have been testing a northwest-bearing shear along it’s rake, and not perpendicular to the
high-angle northeast structures being evaluated. Additionally, no thicknesses reported on the surface have so far been recognized in
drill holes, or in sample control directly underneath in the underground workings. This data was not used in resource calculations.
The U.S. Bureau of Land Management (USBLM) reported results of 13 samples at surface exposures on Workman’s bench that assayed
up to 61.7% antimony and 0.476 oz/ton gold. The QP attempted to see if these data points could be used but concluded they were just
grab samples—not representative across true widths of mineralization. He did not use this data in resource calculations.
Owing to the oxidized and locally slumped nature of surface exposures,
some trench information on Pringle Bench was scrutinized. One channel in Trench I included a 6.5 foot true thickness of ‘B’
Zone that averaged 30.35% Sb. A similar high value over a thick ‘A’ zone occurs in Trench M. After the QP inspected these
zones in the field, he was unsure as to whether the assays could be used in the resource analysis. The West zone that was sampled in Trench
M was inspected by the QP and assay and width information from the fresh exposure there appeared to be valid; hence that data was used.
In order to complete the polygonal resource calculations, the QP rigorously
calculated tonnage factors for the inferred and indicated resources presented in this Technical Report. Thrush et al (1968) specifies
specific gravity estimates for pure stibnite (4.52), for quartz gangue (2.70), and for pelitic schist (2.66). A tonnage factor was calculated
using the equation provided by Peters (1978). Pure stibnite would have a tonnage factor of about 7.1 cu ft/ton. The tonnage factor was
individually calculated for each polygon using the equation of Peters (1978).
The equation is: Tonnage Factor=2000/specific gravity
X 62.5=cubic feet per ton
. Pure stibnite is 71.5 percent antimony. As an example for polygon # 5, which contains 29.6 percent antimony
(41.4 percent stibnite), the average calculated specific gravity of the polygonal zone is 3.89. The tonnage factor for this polygon is
2000/3.89X62.5=8.20 cubic feet/ton. For a lower grade zone; i.e., polygon 29, which assays 18.19 percent antimony (25.4 percent stibnite),
then the specific gravity of the polygon is 3.82. The tonnage factor is 2000/3.82X62.5=8.39 cubic feet/ton. The QP calculated the tonnage
factor for each polygon and arrived at an average tonnage factor of 8.21 cubic feet/ton— rounded to 8.20 cubic feet/ton for the
Technical Report analysis.
93
Two control samples of mineralized vein intervals and one sample
of wall rock from Workman’s bench underwent specific gravity (SG) and absorption measurements (ASTM C 127) at the laboratory
of Shannon and Wilson Inc. in Fairbanks. Table 11.6 summarizes the results and compares them to SG calculated using methods
described above. High grade nearly massive stibnite that assayed 56.88 percent Sb from station #203804 yielded a SG of 4.38 and a
tonnage factor of 7.31. In contrast, much lower grade material from the bulk sample that assayed 9.10 percent Sb, yielded an SG of
3.45, and a tonnage factor of 9.27. The average tonnage factor for the high-and low-grade stibnite zones, which have an average
assay of 33.04 percent Sb, is 8.29. These limited physical SG measurements are consistent with SG values calculated from assay data
and inferred SG of country rock material used in the QP’s resource calculations.
Table 11.6 Specific gravity (SG) measurements (ASTM C 127) from
selected mineralized intervals, Workman’s Bench; laboratory analyses by Shannon and Wilson, Inc., Fairbanks
Sample #
Sample Description
Measured
Absorption
Tonnage
Antimony
Calculated
Difference
Specific
(%)
Factor
(%)
tonnage
between SG
gravity
Appendix I
factor
Values (%)
(SG)
203804
Massive stibnite
4.38
0.33
7.31
56.88
7.34
0.40
interval in ‘A’ Zone
HR51856-1
Bulk sample stibnite
3.45
1.50
9.27
9.20
9.31
0.43
gravity concentrate
HR51856-2
Wall Rock Gangue
3.04
0.33
10.50
NA
NA
NA
from Hanging Wall,
A Zone
Consistent with past Technical Reports produced by the QP for the Nolan
Sb-Au lodes, a cut-off grade of 4.0 percent ‘equivalent’ antimony was used, reflecting the dominance of Sb in the resource
values.
11.4 Measured Lode Antimony-Gold Resource at Nolan
Creek
This Technical Report describes the Measured Resource Estimate as
summarized in Tables 11.7; 11.8. No new information concerning the measured resources has been generated for the Nolan Creek project
since the release of those estimates on July, 2011; which were filed on SEDAR (
www.sedarplus.ca.com
).
Graphic depictions of resource blocks and data tables that define the probable reserve are summarized in Figures 11.6-11.26 and Tables
11.9-to-11.28.
Table 11.7 Measured lode mineral resource, Workman’s Bench
Nolan Creek area
Resource
Cut-off
Quantity
Grade
Metal
Grade
Metal
Category
grade
(ton)
(% Sb)
(ton Sb)
(oz/ton Au)
(oz Au)
(% Sb)
Measured
4.0
42,412
28.00
11,880
0.408
17,300
Notes:
The effective date of this measured
resource is July, 2011; amended September 2026
Assumed processing recoveries for
the base case are 90% gold recovery and 85% antimony recovery. The unit ton refers to short tons.
Rounding may result in some discrepancies.
94
Figure 11.5 Surface view of Workman’s bench mineralized zones,
showing locations of underground workings, 2007-2008 drill hole control (in black), 2009 drill hole control (in blue), and interpreted
extensions and fault offsets of A, B, C and West Zones.
95
Figure 11.6 Measured resource polygons for ‘A’ Zone,
Workman’s bench, Nolan Creek Area
96
Table 11.8 Polygonal Measured Resource block summary for ‘A’
Zone, Workman’s Bench
Polygon
Tons
Antimony (%)
Antimony (tons)
Gold (oz/ton)
Gold (ounces)
1
365
4.70
17.2
0.056
20.4
2
337
4.20
14.1
0.120
40.4
3
445
22.80
101.5
1.090
485.1
4
484
22.85
110.5
1.070
517.8
5
602
29.60
178.2
1.120
674.2
6
508
23.09
116.8
0.056
28.4
7
390
50.89
198.4
1.109
432.2
8
379
31.40
119.0
1.115
422.6
9
305
28.03
85.4
0.987
301.0
10
195
13.47
26.2
0.146
28.5
11
950
22.36
212.4
0.193
183.4
12
175
27.94
48.9
1.097
191.9
13
125
10.66
13.3
0.970
121.3
14
105
16.17
33.9
0.102
10.7
15
535
19.73
105.5
0.300
160.6
16
335
31.68
106.1
0.307
102.8
17
452
34.24
154.7
0.334
150.9
18
152
24.68
37.5
0.486
73.8
19
109
21.43
23.3
0.240
26.1
20
485
24.40
118.3
0.323
156.6
21
855
24.73
211.4
0.196
167.5
22
245
19.90
48.7
0.256
62.7
23
140
17.48
24.4
0.250
35.0
24
65
16.50
10.7
0.160
10.4
25
85
18.86
16.0
0.166
14.1
26
101
18.19
18.4
0.150
15.1
27
100
15.77
15.8
0.143
14.3
28
146
14.18
20.7
0.170
24.8
29
389
36.55
141.9
0.322
125.2
30
716
35.86
256.7
0.340
243.4
31
384
23.49
90.2
0.141
54.1
32
345
23.10
79.7
0.181
62.4
33
107
24.18
25.8
0.217
23.2
34
330
32.04
106.0
0.267
88.0
35
780
39.10
304.9
0.681
531.2
36
840
36.57
307.1
0.492
413.2
37
2,050
48.74
999.0
0.416
853.0
38
2,490
48.68
1,212.0
0.453
1,128.0
39
2,300
54.59
1,255.0
0.725
1,667.0
40
459.0
21.00
96.3
0.459
210.6
41
1,180
39.43
465.0
0.201
237.0
42
550
30.66
165.0
0.130
72.0
43
185
20.50
37.9
0.106
19.6
44
820
28.02
229.6
0.114
93.4
45
353
18.14
64.0
0.107
37.8
46
697
7.93
55.2
0.123
85.7
47
998
17.53
174.9
0.101
100.7
48
157
20.93
32.8
0.106
16.6
49
140
14.49
20.3
0.056
7.8
50
450
10.80
48.6
0.098
44.1
51
135
28.76
38.8
0.140
18.9
52
100
29.58
29.6
0.130
13.0
53
85
29.60
25.1
0.120
10.2
54
454
23.74
107.8
0.171
77.6
55
423
24.02
101.6
0.516
218.2
56
228
23.02
52.5
0.463
105.6
57
235
20.02
47.0
0.413
33.6
58
338
26.46
89.4
0.463
156.4
59
564
21.44
120.9
0.526
296.6
TOTAL/AVERAGE
28,452
31.52
8,967.9
0.405
11,516.7
97
Figure 11.7 Measured Resource polygons for ‘B’ Zone,
Workman’s bench, Nolan Creek Area
98
Table 11.9 Polygonal block summary for ‘B’ Zone,
Workman’s Bench Table 2 Polygonal Measured Resource calculations for ‘B’ Zone, Workman’s bench, Nolan Creek
Area, Alaska
Polygon
Tons
Antimony (%)
Antimony (tons)
Gold (oz/ton)
Gold (ounces)
1
185
34.32
64.0
0.298
55.0
2
237
40.13
95.0
0.618
146.0
3
175
39.36
69.0
0.507
89.0
4
475
47.50
226.0
1.105
524.0
5
590
41.42
244.0
0.652
384.0
6
574
45.32
260.0
1.060
608.0
7
195
31.32
61.0
0.425
83.0
8
289
17.59
50.8
0.154
44.5
9
830
37.15
308.0
0.802
666.0
10
675
34.97
236.0
0.724
489.0
11
116
21.73
25.2
0.123
14.3
12
79
19.76
15.6
0.130
10.3
13
160
10.10
16.2
0.313
50.1
14
186
21.60
40.2
0.451
83.9
15
487
15.25
74.2
0.430
209.4
16
875
25.54
223.4
0.317
277.3
17
95
16.51
15.7
0.241
22.9
18
331
16.06
53.1
0.244
80.8
19
209
4.59
9.6
0.067
14.0
20
107
5.16
5.5
0.070
7.5
21
145
13.82
20.0
0.063
9.1
22
155
13.58
21.1
0.050
7.8
23
365
7.98
29.1
0.160
58.4
24
385
5.65
21.7
0.083
31.9
25
567
8.30
47.0
0.310
175.8
26
269
4.77
12.8
0.256
68.8
TOTAL/AVERAGE
8,756
25.63
2,244.2
0.480
4,210.8
Table 11.10 Polygonal Measured Resource Calculation for ‘West’
Zone, Workman’s Bench, Nolan Creek area, Alaska
Polygon
Tons
Antimony (%)
Antimony (tons)
Gold (oz/ton)
Gold (ounces)
1
565
2.86
16.1
0.908
513.0
2
446
2.39
10.6
0.108
48.2
3
450
3.12
14.0
0.921
414.5
4
359
2.64
9.5
0.121
43.4
5
131
3.36
4.4
0.140
18.3
6
73
9.30
6.8
0.143
10.2
7
210
9.81
20.6
0.124
26.0
8
297
18.09
53.7
0.105
31.2
9
110
19.06
20.9
0.261
28.7
10
95
12.10
11.5
0.225
21.3
11
109
14.53
15.8
0.215
23.4
12
166
13.13
21.8
0.229
38.0
13
286
18.35
52.4
0.293
83.8
14
397
11.75
46.6
0.098
38.9
15
175
21.56
37.7
0.146
25.6
16
537
19.82
106.4
0.140
75.2
17
160
23.59
37.7
0.143
22.8
18
192
35.32
67.8
0.230
44.2
19
75
31.78
23.8
0.196
14.7
20
115
21.74
25.0
0.113
13.0
21
256
25.28
64.7
0.147
37.6
TOTAL/AVERAGE
5,204
12.80
667.8
0.302
1,572
99
Figure 11.8 Measured resource polygons for ‘West’ Zone,
Workman’s bench, Nolan Creek Area
100
Table 11.10 Summary data for Measured
Resource in ‘A’, ‘B’ and ‘West’ Zones, Workman’s Bench, Nolan Creek area, Alaska
Physical
Parameters For
Resource
Calculations
‘A’ Zone
‘B’ Zone
‘West’
Zone
Total or
Average
Total Strike Length of Vein Used in Resource Calculation
980
525
900
980
Maximum Depth (Vertical) of Vein Used in Resource Calculation
355
355
225
355
Average Sample Interval Width
0.95
0.65
0.60
0.73
Number of Drill Hole Intercepts and Channel Sample Locations
Used
48
22
19
89
Number of polygons Used in Indicated Resource Calculation
59
26
21
106
Calculated Tons of Mineralization
28,452
8,756
5,204
42,412
Calculated Average Grade Sb (%)
31.52
25.63
12.80
28.00
Total Tons, Contained Antimony
8,967.9
2,244.2
667.8
11,875
Calculated Average Grade Gold (oz/ton)
0.405
0.480
0.302
0.408
Contained Gold (oz)
11,516.7
4,210.8
1,572.0
17,300
11.5 Indicated Lode Antimony-Gold Resource
Estimate at Nolan Creek
Indicated mineral resources are that
part of a mineral resource for which quantity and grade can be estimated with a level of confidence sufficient to allow the application
of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit.
101
During the 2009
Workman’s Bench evaluation, nine holes (9) totaling 2,663 feet in length were collared and oriented to test shallow extensions
of: 1) A-zone, the largest of the several high-grade vein-fault structures; and 2) B-zone, a subsidiary parallel structure southeast
of A-Zone. Sixteen (16) polygons define the indicated resources in both ‘A Zone’ and ‘B Zone’ vein fault structures,
which aggregate 11,204 tons grading 19.7 percent antimony and 0.238 ounces/ton gold (Figures 11.9 and 11.10). The 2009 drill intercepts
used to calculate the indicated resources are adjacent to the ‘A Zone’ and ‘B Zone’ vein-faults on Workman’s
Bench. Tables 11.11 and 11.12 provide the numerical calculations for the Indicated Resource estimates within ‘A Zone’ and
‘B Zone’, Workman’s Bench, Nolan Creek area.
Table 11.11 Indicated resource block
summary from 2009 Drill Program, A-zone, Workman’s Bench
Polygon
Tons
Antimony
Antimony
Gold
Gold
(%)
(tons)
(oz/ton)
(ounces)
A
(1)
806
34.45
277.7
0.479
386.1
B
(2)
198
18.47
36.6
0.192
38.0
C
(3)
820
49.45
405.5
0.557
456.7
D
(4)
215
35.80
76.9
0.349
75.0
E
(5)
450
5.64
25.4
0.035
15.7
F
(6)
915
20.71
189.5
0.294
269.0
G
(7)
750
37.20
279.0
0.398
298.5
H
(8)
614
30.96
190.1
0.285
174.9
I
(9)
675
7.17
48.4
0.098
66.2
J
(10)
850
19.21
163.3
0.177
150.5
K
(11)
1,212
3.78
45.8
0.124
150.3
L
(12)
1,225
12.00
147.0
0.150
183.8
M
(13)
1,694
10.12
171.4
0.189
320.2
TOTAL
10,424
19.72
2056.6
0.248
2,584.9
Table 11.12 Indicated resource block
summary from 2009 Drill Program, B-zone, Workman’s Bench
Polygon
Tons
Antimony
Antimony
Gold
Gold
(%)
(tons)
(oz/ton)
(ounces)
O (14)
430
24.28
104.4
0.093
40.0
P (15)
215
12.98
27.9
0.112
24.1
Q (16)
135
15.37
20.7
0.137
18.5
TOTAL/AVERAGE
780
19.61
153.0
0.105
82.6
102
Figure 11.9 Indicated Mineral Resource
polygons for ‘A’ Zone, Workman’s Bench, Nolan Creek Area, based on 2009 drilling.
103
Figure 11.10 Indicated mineral resource
polygons for B Zone, Workman’s Bench, Nolan Creek area, based in 2009 drilling
104
The combined Measured and Indicated
resource estimate for the Workman’s lode system is summarized in Table 11.13.
Table 11.13 Measured and Indicated
lode antimony-gold resources, Workman’s Bench, Nolan Creek area
Resource
Cut-off
grade
Quantity
Grade
Metal
Grade
Metal
Category
(%
Sb)
(ton)
(%
Sb)
(ton
Sb)
(oz/ton
Au)
(oz
Au)
Measured
and
4.0
53,616
26.27
14,089
0.372
19,968
Indicated
The effective date of these indicated resources is July 12th, 2011; amended on September 16th, 2026
Cut-off grade is 4.0% Sb ‘equivalent’, which refers to the combined values of gold plus antimony expressed in terms of antimony.
11.6 Inferred Lode Antimony-Gold Resource
Estimate at Nolan Creek
According to the CIM, an “Inferred
mineral resource” is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence
and limited sampling and reasonably assumed but not verified by geological and grade continuity (Staff, 2004).
Inferred lode resource estimates for
Workman’s Bench include zones on the A, B, C and West zones and Pringle Bench are summarized in Table 11.14.
Table 11.14 Total Inferred lode Mineral
Resources, Workman’s Bench and Pringle Bench Nolan Creek
Resource
Deposit
Cut-off
grade
Quantity
Grade
Metal
Grade
Metal
Category
(%
Sb)
(short
tons)
(%
Sb)
(ton
Sb)
(oz/ton
Au)
(oz
Au)
Inferred
Pringle
4.0
12,817
19.61
2,513.8
0.499
6,390.4
Inferred
Workman’s
Bench
4.0
19,642
10.83
2,127.0
0.273
5,362.1
Total
Inferred
Workman’s
Pringle Benches Workman’s
4.0
32,459
14.29
4,640.8
0.362
11,752.5
The
effective date of these resources is March 7
th
, 2011; amended September 18
th
, 2026 .
Mineral
Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
105
Figure 11.11 Inferred Resource polygons
for ‘A’ Zone, Workman’s Bench, Nolan Creek Area
106
Figure 11.12 Inferred Resource polygons
for ‘B’ Zone, Workman’s Bench, Nolan Creek Area
107
Figure 11.13 Inferred Resource polygons
for ‘C’ Zone, Workman’s Bench, Nolan Creek Area
108
Table 11.15 Polygonal Block Inferred
Resource estimate for ‘C Zone’, Workman’s Bench
Polygon
Tons
Antimony
(%)
Antimony
(tons)
Gold
(oz/ton)
Gold
(ounces)
1
98
0.05
0.5
0.055
5.4
2
84
2.96
2.5
0.103
8.7
3
234
3.83
9.0
0.054
12.6
4
325
6.74
21.9
0.103
33.4
5
201
6.72
13.5
0.080
16.1
6
98
6.50
6.4
0.085
8.3
7
314
3.26
10.2
0.049
15.4
8
216
3.49
7.5
0.079
17.1
9
351
0.03
1.0
0.160
56.2
10
538
3.79
20.4
0.157
84.5
11
146
0.29
0.5
0.070
10.2
12
85
6.22
5.3
0.123
10.5
13
173
5.98
10.3
0.210
36.3
14
74
0.05
0.5
0.157
11.6
15
140
6.54
9.2
0.213
29.8
16
313
0.59
1.8
0.183
52.3
17
787
3.79
29.8
0.184
144.8
18
55
6.77
3.7
0.127
7.0
Total/Average
4,232
3.64
154.0
0.132
560.2
Table 11.16 Polygonal Block Inferred
Resource estimate for ‘A Zone’, Workman’s Bench
Polygon
Tons
Antimony
(%)
Antimony
(tons)
Gold
(oz/ton)
Gold
(ounces)
1
826
11.87
98.0
0.260
214.7
2
1,524
9.36
142.6
0.213
324.6
3
2,737
19.13
523.5
0.266
728.0
Total/Average
5,087
15.02
764.1
0.249
1,267.3
Table 11.17 Polygonal Block, Inferred
Resource estimate for ‘West Zone’, Workman’s Bench
Polygon
Tons
Antimony
(%)
Antimony
(tons)
Gold
(oz/ton)
Gold
(ounces)
1
164
14.03
23.0
0.069
11.3
2
152
7.44
11.3
0.068
10.3
3
774
12.38
95.8
0.075
58.1
4
643
19.49
125.3
0.067
43.1
5
595
14.86
88.4
0.055
32.7
6
2,536
10.94
277.4
0.928
2,353.4
7
470
3.64
17.1
0.107
50.3
Total/Average
5,334
11.96
638.3
0.507
2,704.4
Table 11.18 Polygonal Block Inferred
Resource estimate for ‘B-Zone’, Workman’s Bench
Polygon
Tons
Antimony  (%)
Antimony(tons)
Gold
(oz/ton)
Gold
(ounces)
1
2,291
9.96
228.0
0.105
240.5
2
1,733
15.20
263.4
0.147
254.8
3
965
8.28
79.2
0.347
334.9
TOTAL/AVERAGE
4,989
11.44
570.6
0.166
830.2
109
Table 11.19 Summary of Inferred Antimony
and Gold Resources From ‘A’, ‘B’, ‘C’, and West Zones, Workman’s Bench Lode, Nolan Creek Area.
Category
Cut-Off
Grade (% Sb Equivalent)
Quantity
of Mineralization
(Short Tons)
Grade
(% Sb)
Metal
(ton Sb)
Grade
(oz/ton Au)
Metal
(oz gold)
‘A’
Vein Inferred
4.0
5,087
15.02
764.1
0.249
1,267.3
‘B’
Vein Inferred
4.0
4,989
11.44
570.7
0.166
830.2
‘C’
Vein Inferred
4.0
4,232
3.64
154.0
0.132
560.2
‘West
Vein Inferred
4.0
5,334
11.96
637.9
0.507
2,704.4
Totals
4.0
19,642
10.83
2,127.0
0.273
5,362.1
During 2009, eleven (11) drill holes
totaling 2,329 feet were collared and oriented to test the ‘A zone’ and ‘West zone’ structures on Pringle Bench,
which are the same structures that have been drill-tested on Workman’s Bench. Figure 11.14 illustrates the surface plan of the
Pringle bench that the QP used in his resource calculations. The primary objective of the 2009 exploration program was to test deeper
portions of both ‘A’ and ‘West’ vein-faults, which previously had been drill-tested to depths of only about 150
feet below the surface. Figures 11.15 and 11.16 illustrate the polygonal configuration of the ‘A Zone’ and the ‘West
Zone’ mineralized structures respectively. Upon the combination of the previous (2009) and current (2011) data, twenty-three (23)
polygons define an inferred resource of 12,817 tons grading 19.61 percent antimony and 0.499 ounces/ton gold. The 2009 exploration program
on Pringle Bench: 1) confirmed gold and antimony mineralization to depths of up to 400 feet below the surface; and 2) yielded gold values
that were higher than the average content observed in the shallower portions of the vein-fault system explored in 2007. Tables 11.20-to-11.24
summarize the polygonal block data for all inferred resource estimates on Pringle Bench.
110
Figure 11.14 Surface view of Pringle
Bench mineralized zones, showing drill locations; 2007 (black) and 2009 drill holes (blue).
111
Figure 11.15 Polygonal Block Inferred
Mineral Resource polygons for ‘A’ Zone, Pringle Bench, Nolan Creek Area, based in 2009 drilling.
112
Figure 11.16 Polygonal Block Inferred
Mineral Resource polygons for West Zone, Pringle Bench, Nolan Creek Area, based in 2009 drilling.
113
Table 11.20 Polygonal Inferred Mineral
Resource calculation for ‘A’ Zone, Pringle Bench, from Bundtzen (2009b)
Polygon
Tons
Antimony
(%)
Antimony
(tons)
Gold
(oz/ton)
Gold
(ounces)
1
63
12.78
8.1
0.037
2.3
2
134
26.27
35.2
0.019
2.5
3
205
31.49
64.6
0.119
24.4
4
138
36.67
50.6
0.112
15.5
5
82
26.67
21.9
0.127
10.4
6
115
29.80
34.3
0.246
28.3
TOTAL/AVERAGE
737
29.13
214.7
0.113
83.4
Table 11.21 Polygonal Inferred Mineral
Resource calculation for Pringle Bench from 2009 Drill Program, A-Zone, (This Technical Report)
Polygon
Tons
Antimony
(%)
Antimony
(tons)
Gold
(oz/ton)
Gold
(ounces)
A
(1)
55
11.21
6.2
0.065
3.6
B
(2)
311
22.51
70.0
1.953
607.4
C
(3)
65
26.69
17.3
1.963
127.6
D
(4)
254
28.46
72.3
0.126
32.0
E
(5)
83
33.11
27.5
0.250
20.8
F
(6)
1,218
30.81
375.3
0.150
182.7
G
(7)
988
31.47
310.9
0.030
29.6
H
(8)
314
35.32
110.9
0.023
7.2
I
(9)
556
30.92
171.9
1.920
1,067.5
J
(10)
1,404
27.37
384.3
1.930
2,709.7
K
(11)
590
26.24
154.8
1.947
1,148.7
L
(12)
886
18.56
164.4
0.076
12.5
M
(13)
1,633
8.06
131.6
0.106
173.1
N
(14)
664
5.93
39.4
0.110
73.0
TOTAL/AVERAGE
9,021
22.58
2,036.8
0.687
6,195.4
Table 11.22 Polygonal
Inferred Mineral Resource calculation for ‘West’ Zone, Pringle Bench (Bundtzen, 2009b)
Polygon
Tons
Antimony
(%)
Antimony
(tons)
Gold
(oz/ton)
Gold
(ounces)
1
80
14.11
11.3
0.061
4.9
2
160
11.37
18.2
0.036
5.8
3
206
12.12
25.0
0.044
9.1
4
99
18.68
18.5
0.051
5.0
5
615
3.91
24.0
0.021
12.9
6
290
9.46
27.4
0.028
8.1
7
182
15.47
28.2
0.095
17.3
8
319
12.43
39.7
0.099
31.6
TOTAL/AVERAGE
1,951
9.86
192.3
0.049
94.7
114
Table 11.23 Polygonal Inferred Mineral
Resource calculation from 2009 Drill Program, West-Zone, Pringle Bench
Polygon
Tons
Antimony
(%)
Antimony
(tons)
Gold
(oz/ton)
Gold
(ounces)
O
(15)
297
3.97
11.8
0.010
3.0
P
(16)
505
7.15
36.1
0.014
7.1
Q
(17)
378
5.85
22.1
0.018
6.8
TOTAL/
AVERAGE
1,108
6.31
70.0
0.015
16.9
Table 11.24 Polygonal Total Inferred
Lode Mineral Resource Antimony-Gold calculation, Pringle Bench, Nolan Creek
Resource
Category
Cut-Off
Grade
(% Sb)
Vein-Fault
Zone
Quantity
(tons)
Grade
(% Sb)
Metal
(tons Sb)
Grade
(oz/ton Au)
Metal
(oz Au)
Inferred
4.0
A
(2008)
737
29.13
214.7
0.113
83.4
Inferred
4.0
A
(2009)
9,021
22.58
2,036.8
0.687
6,195.4
Inferred
4.0
West  (2008)
1,951
9.86
192.3
0.049
94.7
Inferred
4.0
West
(2009)
1,108
6.31
70.0
0.015
16.9
Inferred
Total/Average
4.0
A
and West Zones Combined
12,817
19.61
2513.8
0.499
6390.4
The 2009 Inferred Resource estimates
for Silverado’s Nolan Creek properties; i.e., Workman’s Bench and Pringle Bench, did not change from what was reported by
the QP in his previous Technical Report issued June 1, 2009; (amended July, 2011). The inferred lode mineral total tonnage increased
from 24,077 tons as inferred in the 2009 Technical Report to 32,459 tons in this Technical Report, or an increase of about 35 percent.
In terms of in-place metal content, antimony increased from 2,997.6 tons as indicated in the 2011 Technical Report to 4,640.8 tons in
this Technical Report, an increase of 63 percent. In-place gold increased from 5,894.7 ounces as Indicated Mineral Resources in the 2011
Technical Report to 11,752 ounces in this Technical Report.
11.7 Mineral Resource Uncertainty Discussion
Concerning placer resources, the QP
constructed 39 polygons to determine an Indicated Resource estimate for placer gold deposits in Nolan Creek Valley; namely the 3B3 and
D-Block #1 Below Discovery. Both placers occur below overburden ranging from 70-to-100 feet of overburden. Most of the unconsolidated
ground is frozen and is capable of being mined using mechanized equipment successfully deployed by the previous owner. However, in 2003,
live water was encountered while attempting to mine buried placer gold deposits about 400 feet upstream from D-Block #1 Below Discovery
on the right limit of Nolan Creek, causing mine operations to be curtailed. Another uncertainty is that historic underground placer mining
has occurred adjacent to 3B3 and D-Block #1 Below Discovery resource blocks. Although past drilling efforts carried out by the previous
owner did not encounter mined ground, there is a possibility that some of the indicated resource area has been depleted by historic operations.
115
For lode mineral resources, the QP constructed
123 polygons to demonstrate Measured and Indicated Resources of gold and antimony at Nolan Creek; and 62 polygons to demonstrate Inferred
Resources of antimony and gold at Nolan Creek. The QP is confident with these resource estimates. However, they occur in relatively thin
fault-controlled structures and mining methodology is not discussed in this report.
The QP used traditional polygonal methods
to determine resource potential for both placers and lodes. The QP acknowledges that many mineral resource estimates are now determined
using computer-based ‘kriging-based’ technologies.
To confirm the results of the polygonal
methods used in determining the resource calculations at Nolan Creek, the QP contacted Will Robinson, E.I.T. Senior Geologist, who has
experience with the Vulcan
TM
computer-based, block model method for estimating mineral resources. Robinson agreed to examine
selected portions of Silverado’s data base and calculate indicated resources using a Vulcan program. The QP supervised Robinson
during the Vulcan-Polygonal test comparison and formatted the design of the test. But the latter ran the computer program independently
of the QP. Because of time considerations, the QP determined that the comparison would be confined to the ‘A’ Zone in Workman’s
bench, which contains the largest single block of resources. The QP told Robinson to: 1) set a cut-off at 4% Sb equivalent; and 2) cap
gold grades at 1.5 oz/ton. The following was given:
·
All
drill, underground, and surface (trench) information that was used to calculate polygonal
resources was forwarded to Robinson by the QP. A table containing only ‘A’ zone
data was prepared for the Vulcan estimate. All of this data was derived from Appendix I.
This included drill hole depths, precise GPS collar coordinates, drill hole intercepts from
Table 11.2 of this Technical Report; estimated true widths of mineralized vein-fault intercepts
and weighted assay grades are from this Technical Report. The data used to calculate resources
within ‘A; Zone on Workman’s Bench consists of forty (40) diamond core holes
totaling 10,079 feet as well as ten (10) surface trenches and underground channel sample
data that test the ‘A’ Zone. The maximum drill hole depth is 497 feet and the
average depth is 352 feet. Spacing between drill holes and sample points varies but is more-or
less isometric, averaging about 75 feet. Files created by Robinson for the Vulcan program
include COLLAR.csv, ASSAY.csv, and SURVEY.csv.
·
To
help facilitate the effort and reduce the time expended on the Vulcan program, the QP used
the specific gravity and tonnage factors previously calculated for the polygonal estimates
for the Vulcan resource estimates.
Past polygonal resource estimates were
not given to Robinson. After discussions, Robinson wanted to combine the 2007-2008 ‘A’ Zone data set with the 2009 ‘A’
Zone data set. In that the 2007-2008 data from ‘A’ Zone on Workman’s bench calculated an indicated resource prior to
116
conversion into a measured resource,
the QP judged that it was reasonable to combine the 2007-2008 and 2009 data sets. A three-dimensional geologic solid representing the
A-zone vein was created using conventional methods in Vulcan. The solid conforms to the uppermost and lower most assay interval for drill
holes and trenches contained within the A-zone vein. This solid was used to constrain the compositing, block model construction and resource
estimation for this study. The block model was constructed using the Vulcan 3D modeling software. The orientation of the A-zone block
model was selected to be 45
o
in order to conform to the observed trend of mineralization. The parent block size was selected
to be a uniform 10’ x 10’ x 10’. The indicated resource estimation for the block model was conducted using the Inverse
Distance Squared (ID
2
) method. The search ellipse for the estimation was selected to be 23’ x 5’ x 23’ in
order to conform to the planar, steeply dipping nature of the A-zone vein and reflect the average spacing between composites. The sample
constraints put on this estimate were that a minimum of one sample was required for a given block to be estimated and no more than 4
samples could be used for estimating any given block. The results of the block model estimation can be seen in Figures 11.17 and 11.18.
Figure 11.17 Plan view image of Workman’s
bench ‘A’ Zone vein-fault. Estimated blocks are shown displaying antimony grade. Scale (squares) are 100 feet across.
117
Figure 11.18 Side profile view of
Workman’s Bench ‘A’ Zone looking northwest; displaying Sb grade.
The indicated resources contained within
the A-zone vein were calculated using the above block estimations. Specific gravity and tonnage factor data was available for all assay
intervals and was included in the resource estimate. Although the QP mandated that a 4.0% antimony-equivalent cut-off grade be used,
Robinson judged that it would be useful to the study to compare the indicated resources contained in the A-Zone vein using cutoff grades
of 0.0% equivalent Sb and 4.0 % equivalent Sb (Table 11.25). Nearly the same amount of antimony is realized for the zero percent versus
4.0 percent Sb cutoff (1.4 percent difference), but more gold is indicated (6.9 percent
difference) in the zero percent cut-off.
Table 11.25 Measured and Indicated
Resources calculated by Vulcan
TM
that are contained in Workman’s Bench ‘A’ Zone only vein-fault from 2007-2009
exploration data
Material
Cutoff
Grade (% eq
Sb)
Sb
(% eq)
Au
(oz/ton)
Total
Tons
Total
cu ft
Tons
ANTIMONY
Ounces
GOLD
MINERALIZATION
0.0
23.15
0.275
51,713
454,833
11,972
14,221
MINERALIZATION
4.0
29.17
0.327
40,458
344,776
11,802
13,230
WASTE
4.0
1.50
0.088
11,254
110,057
169
990
Table 11.26 compares the indicated resource
estimates using polygonal methods versus the indicated resource estimates produced by the Vulcan analysis. Summary data for indicated
resources of ‘A’ zone on Workman’s Bench determined from polygonal estimates are contained in
At a 4.0 percent Sb cut-off, the Vulcan
indicated resource volume (in tons) estimate is 4.0 percent larger; the antimony grade is also 2.9 percent larger, but the Vulcan gold
grade is 9.9 percent lower than the polygonal indicated resource estimate. In terms of in-place metal resource, the Vulcan antimony estimate
is 6.9 percent higher than the polygonal estimate, but the Vulcan gold estimate is 6.20 percent lower than the polygonal estimate. Stone
and others (1998) have stated that resource estimates between two completely different estimation methods can vary by 10 percent or more.
The QP concludes that the polygonal resource estimate compares favorably to the Vulcan resource estimate and that the former estimate
is an accurate indication of size and grade of mineralization in the Nolan lode system.
118
Table 11.26 Comparative Results of
Polygonal Method for resources in A-Zone Workman’s Bench, used by writer, versus computer Vulcan
TM
block model method
Mineralized
Zone
Cut-Off
Sb
(%)
Au
(oz/ton)
Total
short
Tons ore
Total
Cubic
feet
Tons
Antimony
Ounces
Gold
Polygonal
Method, 2007-2008 Data, Workman’s Bench ‘A’ Zone
4.0
% Sb equivalent
31.52
0.405
28,452
235,867
8,967.9
11,516.7
Polygonal
method 2009 Data, Workman’s Bench ‘A’ Zone
4.0
% Sb equivalent
19.78
0.248
10,444
89,192
2,066.0
2,593.6
Total
Polygonal Method, Workman’s Bench ‘A’ zone 2007-2009 data
4.0
% Sb equivalent
28.36
0.363
38,896
325,058
11,033.9
14,110.3
Vulcan
Estimate 2007-2009 data
4.0
% Sb equivalent
29.17
0.327
40,458
344,776
11,802.0
13,230.0
Differences
between Polygonal Method and Vulcan estimate  (in %)
4.0
% Sb equivalent
2.86+
9.90-
4.02+
5.70+
6.90+
6.20-
11.8 Assumptions for Multiple Commodity
Resource Estimate
In nearly all cases, the principal mineralized
zones contain, stibnite, quartz, minor arsenopyrite. Metallurgical work, assay information, and mineralogical content all suggest that
the principal mineral products are free gold and stibnite. Both are readily marketable in today’s economic environment. Gold is
at record high prices. Antimony is currently a much sought after critical mineral/metal. Testing shows that the gold reports to both
arsenopyrite and stibnite on wiffley table tests. However, the QP does not consider arsenic as a recoverable commodity. Hence the principal
resource estimates discussed in this Technical Report are focused on antimony and gold.
119
11.9 Qualified Person’s Opinion
on Factors that are likely to influence the prospect of economic extraction.
The confirmation of drill-indicated
resource, both surface and underground engineering studies quantifying wall-rock stability and selected mining methods, environmental
mitigation where-ever needed, overall environmental assessment of the property, and market demand of a mineral product will all influence
the economic viability of developing the lode deposits of antimony and gold and placer gold resources on GLM’s claims in Nolan
valley.
Based on his experience reviewing antimony
and gold deposits in Alaska, the Russian Far East, and elsewhere, it is the QP’s opinion that the grade and known size characteristics
of lode antimony and gold and the relatively large nugget content of the placer deposits at the Nolan Creek property provide reasonable
prospects for economic extraction of the mineral resources based on this Initial Assessment and Technical Report Summary.
120
12.0 MINERAL RESERVE ESTIMATES
Mineral reserve estimates are not presented
in this Technical Report by the QP on the subject mineral properties.
121
13.0 MINING METHODS
No Mining Methods have been proposed
for the mineral properties that are the subject of this Technical Report.
122
14.0 PROCESSING AND RECOVERY METHODS
The QP described the historic processing
of placer gold by the previous owner (see Chapter 10.1; Placer Deposits). Hower, the QP does not recommend a specific processing methodology
for placer gold recovery in this Technical Report.
The QP has described results of a bulk
sample metallurgical test on lode antimony-gold mineralization in Chapter 10.2 of the Technical Report. However, the QP is not recommending
any recovery method until more research has been completed by GLM.
123
15.0
INFRASTRUCTURE
15.1
Previous
Production Infrastructure on property
The previous owner of the mineral property
(Silverado) maintained a self-sufficient camp that included camp infrastructure capable of housing thirty (30) mine employees, machine
shops, kitchen, individual ‘apartments’ for employees, a laundromat, recreational facilities, laboratories and a diesel power
plant (see Figure 4.4 of this Technical Report). The power plant was capable of supplying up to 1.5 Mw of power for all needs within
the camp and for maintenance of underground mining equipment. The sewer system was specially designed by Life Water Engineering in Fairbanks
due to the existence of permafrost. A 2007 upgrade project included:
·
The
purchase and installation of a ten-room housing unit;
·
The
construction of an engineering office;
·
The
upgrading of laboratory facilities;
·
The
installation of a new sewage treatment facility;
·
The
construction of a new kitchen and cafeteria; and
·
The
installation of new communications equipment.
·
Installation
of 2,500 gallon plastic holding tanks for water needs.
It was previously assumed by the QP
that the camp facility was completely capable of supporting the proposed underground development on Workman’s Bench.
15.2 Present State of Infrastructure
on Property
The QP inspected the camp facility in
June, 2026. Virtually all of the facilities listed above are in a state of disrepair and cannot be used. The QP recommends that construction
of new infrastructure should take place only after a complete review of what current camp infrastructure is salvageable and what must
be removed from the site.
Figure 15.1
A—Fuel tank storage facility in 2009; B— Same Fuel tank storage facility in 2026; which features collapsed staircase to top
of tanks a failed fire extinguisher and other repair issues Both photos by the QP
124
16.0 MARKET STUDIES
Market studies have not been completed
for this Technical Report.
125
17.0       GEOTECHNICAL-HYDROLOGICAL-ENVIRONMENTAL
STUDIES, PERMITTING, AND PLANS, OR AGREEMENTS WITH LOCAL INDIVIDUALS OR GROUPS
17.1
Geotechnical-Environmental
Studies
The previous owner aggressively engaged
in land reclamation efforts during their development of both surface and underground mining activities. All of their work was completed
under guidance of both the Alaska Department of Environmental Conservation and the U.S. Bureau of land Management (USBLM).
Figure 17.1 Example of land reclamation
conducted on previously mined Odgen-Eureka Bench, left limit of Nolan Creek, circa 2006. Photo from QP files
Geotechnical studies of the Workman’s
and Pringle Bench have been mainly confined to core logging by the previous owner’s geological contractors completed during the
definition of ore zones. The QP has examined the underground workings on Workman’s bench during April 7-10, 2008, and measured
joint sets, foliation and compositional banding, and inspected fault zones. Foliation and compositional banding strikes northeast (025-045
o
)
and generally dips shallow to the southeast ranging from 05-to-015
o
. At some stations, compositional banding and foliation
is horizontal. Figure 17.2 illustrates the near-horizontal nature of compositional banding in phyllitc schist in the ‘A’
Crosscut. Northwest striking high angle faults offset the northeast veins in small amounts. The previous owner reclaimed placer mine
tailings under the advice and direction of the Alaska Department of Natural Resources.
126
Because the claims are federal, reclamation
activities follow guidelines administered by the USBLM. Overall water quality is administered by the State of Alaska Department of Environmental
Conservation (ADEC). The QP conducted an audit of the ADEC and Alaska Department of Natural Resources (ADNR) websites for any environmental
liabilities related to Silverado’s Nolan Creek properties and could not find any notice of water quality violations, public notice
violations, non-point source water pollution control issues, or wastewater violations.
Nolan Creek is classified as an ‘
industrial
stream’
, which recognizes placer mining as a determined use in the Koyukuk district. Under Alaska State law all disturbed lands
must be reclaimed after mining activities have ceased, regardless of land ownership. For placer mining in Nolan Creek, Silverado participates
in the statewide bond pool administered by the ADNR. Reclamation has occurred consistent with the operating plan and has been reduced
from a bonded 60 acres to about 40 acres, per discussions with USBLM field personnel.
The Nolan Creek property is on federal
lands that are adjacent to Gates of the Arctic National Park and Preserve, which is administered by the U.S. National Park Service (USNPS).
According to records researched by the QP, neither the USBLM nor USNPS had lodged a complaint about exploration or mining activities
that have occurred on Nolan Creek claims at least through 2011.
All mineralized zones at Workman’s
Bench are near-vertical ‘vein-faults’ that strike in a northeasterly direction. Most of the northeast-striking joint sets
have some silica vein selvage infilling. The northwest striking joints and fractures have both vein filling but are also frequently barren.
The main ‘A’ zone shows slickensides in a horizontal configuration, indicating mostly post mineralization, lateral low angle
slip planes. The ‘B’ and ‘West’ Zones also occur along fault planes, but do not show obvious evidence of lateral
movement. Past mine planning took into account the fault structure of ‘A’ zone and avoided driving along it’s projected
surface to prevent wall rock instability.
Wall rocks enclosing
the stibnite-quartz lodes contain significant pyrite and pyrrhotite, which could result in Acid Rock Drainage issues (ARD). PRGCI geological
contractor R.C. Swainbank estimated sulfide content in 18 core drill holes from Pringle and Workman’s bench that were completed
in 2007 (Figure 17.3). Phyllitic schist contains the highest sulfide content. The QP recommends that any plan of action for lode mineral
development incorporates the characterization of the material, a definition of waste rock, geochemical testing, review of geochemical
parameters present in drill core, and an implementation plan.
127
Figure 17.2 A—Underground drift
looking E/SE in 2008. Note near-horizontal, phyllitic schist bands in base and roof; B—portal on April 12
th
, 2008.
Photos from QP files.
17.2 Hydrological and Engineering Studies
The Workman’s Bench deposit occupies
a near-horizontal terrace level at an elevation of 1,800 feet near the confluence of Smith Creek, a third order tributary, with Nolan
Creek, a second order trunk stream. The Workman’s Bench mineralized system trends in a northeast direction toward Smith Creek Valley.
The underground workings driven into the Workman’s Bench lode are dry. One hole, 08BT17, which is part of the Workman’s bench
evaluation, intersected “live water”. The drill hole is situated at the northeastern edge of the drill pattern completed
in Workman’s bench and does not affect the Mineral Resources described in this Technical Report. The drill hole likely intersected
water from Smith Creek—drilling did not advance further because it was assumed that Smith Creek constituted a northeasterly limit
of Workman’s bench due to this condition
128
Figure 17.3 Core logging summary
from 2007 core drilling, illustrating rock types and sulfide-bearing zone.
129
According to the previous owner’s
operational mine manager, Ray Medina (written email communication), the hole was plugged off. The QP assumed from inspection of data
that no other holes on Workman’s Bench contained water and all drilled dry. Mr. Medina did not believe the single wet drill
hole on the northeastern margin of the defined resource is a problem and suggests that the drill hole 08SH17 could be grouted off if
necessary. Based on observations of the drill hole data and underground mine conditions, the QP agreed with this assessment. The other
hole that drilled wet was on Pringle Bench to the northeast (07SH04). There is other evidence to corroborate the general dry nature of
the bedrock subsurface. A number of large diameter well holes were drilled in the camp vicinity to find a good source of water. Three
drill holes explored the Workman’s Bench area to depths of up to 400 feet but failed to encounter water. Left limit benches on
Nolan Creek; i.e., Swede Channel and Mary’s Bench, were found to be dry during underground drift mining of frozen placer gold deposits
(see Bundtzen, 2006 a-c).
17.3 Environmental Monitoring
The QP is not aware of any current environmental
monitoring on the GLM properties in Nolan Creek valley.
17.4 Water Management Plan
The QP is not aware of the current water
management plan being implemented on the GLM properties.
17.5 Mine Closure
Alaska Statute Title 27.19 (Reclamation)
and Alaska Statute 38.05 require Reclamation and Mine Closure Plans as part of the APMA process for approval
.
A potential issue for past mine closure
by the previous owner deals with the maintenance shop facility at the Nolan Creek Mine. The shop has a dirt floor and has been in use
since the early 1980s to repair heavy equipment such as various types of drills, low profile Dux mine-haul trucks, tractors and miscellaneous
vehicles. The shop may contain contaminated soils that will need to be remediated. Other issues may involve fuel storage, and removal
of other materials from contaminated sites at the original Nolan Camp.
130
Figure 17.4
—A--Inside machine shop as it appeared in 2006 with mechanic repairing low-profile mining equipment; note dirt floor in shop; B—inside
machine shop as it appeared on June 13
th
, 2026—both photos from QP files.
17.6 Permitting
Presently a mixed property ownership
for GLM claims exists between the State of Alaska and the U.S. Interior Department Bureau of Land Management. This manifests itself in
both state and federal mining claims. The state of Alaska has General Selection Lands (GS 5167) Ta’d surrounding the active USAC
federal Mining claims and an ANILCA Top Filing covering the active federal mining claims owned by USAC. GLM/USAC has also located State
of Alaska mining claims over the active federal mining claims to protect its claim ownership position. This process has been used numerous
times to facilitate ownership transfer from BLM to the State of Alaska for high value mineral lands. Currently, permit requirements include
the following:
Alaska Department of Natural
Resources
Alaska
Placer Mining Application (APMA AAC Title 27, AS 38.05)
Approved
Plan of Operations (AAC Title 27, AS 38.05)
Approved
Reclamation Plan (AAC Title 27, 38.05)
Approved
Mine Closure Plan (AAC Title 27, 38.05)
Temporary Water Use Permit (TWUP
11 AAC 93.035, 93.220)
Alaska Department of Environmental
Conservation
APDES (Authorized under the
federal Clean Water Act, 33 U.S.C. 1251-1387
and implemented in Alaska by
18 AAC Chapter 83)
Storm Water Plan, SWPPP; (AS
46.03.100; 18 AAC 83.615)
Industrial Waste Water Permit
(APDES Program)
Solid Wate Permit (ACC Title
17, AS Title 16)
Air Quality Permit (AS 46.14,
18 AAC 50)
Alaska Department of Fish &
Game
Title 16 Habitat Permit (AS
Title 16)
131
U.S. Army Corps of Engineers
404 Wetlands Permit (Clean Water
Act)
U.S. Bureau of Land Management
Plan of Operations Approval
Environmental Assessment (EA,
National Environmental Policy Act of 1969, 43 CFR Part 46)
Reclamation Plan (30 U.S. Code
1258 Supplemented by 43CFR Part 3600, Subpart 3601 and related BLM manuals)
Importantly, an Alaska Placer Mining
Application Permit (APMA Permit) will be required for GLM to operate on their claims at Nolan Creek. Two Nolan Creek claims were found
to be listed on active State of Alaska APMA Permits during calendar year 2011, which reflects the recent underground placer mining activities
that have taken place in Swede Channel and Mary’s East placer deposits. Other APMA Permits identified on other claims in Nolan
Creek Valley have been closed due to inactivity.
The previous owner filed active Plan
of Operations on Nolan Creek is filed with USBLM. Both surface and underground mining activities follow the rules administered by
the U.S. Mine Safety and Health Administration (MSHA). The previous owner’s mining operations on Nolan Creek had been inspected
by MSHA officials several times during 2002 to 2003. The QP observed two field inspections concerning the previous owner’s activities
by MSHA officers. One citation was issued during the spring of 2006 that requested remedial action at their portal for the ‘Swede
Channel Project’. The portal for those underground workings was shored up and subsequently approved by MSHA.
The previous owner acquired a permit
from USBLM to collect a bulk mineralized sample. This permit would have allowed the previous owner to acquire up to 1,000 cu yd of mineralized
materials for metallurgical testing and analysis from their Workman’s Bench stibnite-gold resource area. The QP identified the
need for former owner to produce a potential acid generation plan for the bulk sample collection effort.
In June, 2008, the previous owner engaged
SRK Consulting, Inc. (SRK) to complete a Sampling and Analysis Plan (SAP) as part of a Metal Leaching/Acid Rock Drainage (ML/ARD)
mitigation program for the Nolan Lode project. Field work by SRK professionals took place in July, 2008 at Nolan Camp. The purpose of
the site visit was to evaluate: 1) existing weather conditions; 2) potential of future changes in oxidation conditions; 3) mobility of
regulated contaminants; and 4) any differences between tock types. SRK reviewed site geology and examined core from 2008 drill holes.
This work confirmed that sulfides occur not only in mineralized vein-faults but also disseminated throughout the wall rock. Table 17.1
summarizes the analytical results from the initial sampling collection program. SRK examined gangue minerals and identified siderite
and ankerite (iron-rich carbonates) but calcite was judged to be uncommon. Seven samples collected by SRK from the existing adit waste
rock, rock exposed in historic trenches, and from weathered pyritic bedrock for field rinse (contact) tests to evaluate the initial acid
generating potential. Three samples of relatively un-oxidized adit waste rock (Nolan 1-3) were not acidic (pH=6.97-7.44) although the
presence of soluble weathering products was shown by elevated conductivity. Two older trench samples (Nolan 6-7) were also non-acidic
(pH=7.07-7.33) but also showed the presence of soluble weathering. One weathered phyllite sample was strongly acidic (pH=2.48). A significant
initial conclusion of these results is that because un-weathered materials are relatively neutral, the objective of an ARD mitigation
plan is to minimize oxidation of waste rock and ore materials during disposal and in-capsulation.
132
Table 17.1 Results of Field Rinses
of samples, Nolan Lode Project; from Day and Jeffress (2008)
Sample
#
Sample
Descriptions
pH
Conductivity
ORP
(uS)
Distilled
water
4.85
9
391
Nolan
1
Phyllite
near portal opening waste
7.02
1031
188
materials
Nolan
2
Phyllite
near portal opening waste
6.97
701
204
materials
Nolan
3
Phyllite
near portal opening waste
7.44
489
189
materials
Nolan
6
Phyllite
fines from trench near Smith Creek
7.07
3,930
208
Nolan
7
Black
phyllite from trench near Smith
7.33
1,751
206
Creek
Nolan
8
Salts
precipitated from black phyllite
7.71
3,360
186
Nolan
9
Weathered
bedrock, orange
2.48
4,170
596
At the request of SRK, the previous
owner’s contractors collected samples from the underground mine workings for further testing, which are summarized in Table 17.2.
The general approach of the underground sampling program as outlined by SRK was to target 13 feet (4 m) of true width in waste rock to
evaluate variations along mineralization. However, the QP has not verified the results of analytical testing of these samples.
Table 17.2 Underground sampling program
for ML/ARD Program, Nolan Camp, 2008
Sample
#
Site
Description
DLRW7140811
Waste
sample from vein rib, D crosscut
DLRW7140812
Waste
sample from vein rib, D crosscut
DLRW714081
Waste
rock samples from face, D crosscut
DLRW714082
Waste
rock samples from face, D crosscut
DLRW7140821
Waste
rock sample from rib near intersection of A and D crosscut
DLRW7140822
Waste
rock sample from rib near intersection of A and D crosscut
DO714081
Stibnite
ore samples from main vein
DO714082
Stibnite
ore samples from main vein
A regulatory issue did affect the previous
owner’s 2007-2008 core drilling program on Pringle Bench north of Smith Creek. Exploration must comply with Section 106 of
the National Historic Preservation Act (NHPA) as codified in USBLM regulation 36CFR 800. Silverado hired Northern Land Use Research (NLUR)
of Fairbanks, Alaska to complete a cultural review on a number of claims where historic mining activities had taken place. NLUR produced
a report for the previous owner detailing the extent of historical artifacts present on the mining claims. That report was then forwarded
to the USBLM (Neely, 2007).
133
17.7 Plans, Negotiations, or Agreements
with Local Individuals or Groups
The QP is unaware of any negotiations
or agreements with outside groups in the exploration and development of their mineral properties as described in this report.
17.8 Descriptions of any commitments
to ensure local procurement and hiring
The QP is unaware of any commitments
to ensure local procurement and hiring by USAC.
17.9 Qualified Person’s Opinion
The previous owner of the claims in
the Nolan Creek area conducted geotechnical, hydrological, and environmental studies needed to acquire necessary permits to conduct their
mining operations for placer gold and permits to conduct exploration of lodes.
The QP is unaware of any agreements
reached with local individuals and groups. However, the previous owner established economic relations for provisions of goods and services
necessary to operate their mining ventures. The previous owner was a regular customer for fuel, groceries, and needed equipment from
Fairbanks and beyond as needed to operate their enterprise at Nolan Creek.
However, the Nolan camp closed nearly
15 years ago, and as a result, these relationships have ended. The QP believes that, given all the circumstances discussed above, it
would be reasonable for GLM to initiate an aggressive program to rehabilitate and develop the lode antimony-gold resources described
in this Initial Assessment and Technical Summary Report.
134
18.0 CAPITAL AND OPERATING COSTS
No capital or operating costs were generated
for this Technical Report.
135
19.0 ECONOMIC ANALYSIS
No economic analysis has been completed
by the QP for this Technical Report.
136
20.0 ADJACENT PROPERTIES
The Slisco Bench placer gold deposit
occurs in the Vermont Creek drainage about two miles northeast of the subject claim group. The auriferous bench was explored extensively
by RC drilling by the previous owner of the Nolan Creek claims during 2004-to-2005 (see Bundtzen (2008c). The bench system is thought
to be very similar to that Nolan Creek valley and may have formed due to the same geological processes as at the former site.
Antimony-gold lode deposits have been
described in the Chandalar mining district about 40 miles east of the Nolan Creek area and at Sukakpak Mountain about 15 miles north
of the Nolan Creek and east of the Dalton Highway (Kurtak et al (1992). Both vein systems cut rocks of the Coldfoot terrane and may have
a similar geological origin to those exposed on the subject claims in the Nolan Creek area. No lode antimony-gold mineral resources have
been identified at either locale.
137
21.0 OTHER RELEVANT DATA AND INFORMATION
There is no additional relevant data
to be reported by the QP for this Technical Report.
138
22.0
INTERPRETATION
AND CONCLUSIONS
22.1
Mineral
Resources
High-grade lode antimony and gold resources
occur on Workman’s Bench and Pringle Bench in the Nolan Creek area, Wiseman District, Alaska, which has been previously examined
for previous owners by the QP. There has been no additional environmental base line work, surface and underground engineering investigations,
or metallurgical work at Nolan Creek since 2011. On Workman’s Bench, drill-tested, Measured and Indicated Mineral resources amount
to 53,616 tons grading 26.27 percent antimony and 0.372 oz/ton gold. Using both drill-indicated and surface trenching data, an Inferred
Mineral Resource totals 32,459 tons grading 14.50 percent antimony and 0.362 oz/ton gold occurs at Workman’s Bench and Pringle
Bench to the northeast.
Based on targeted
RC drilling programs across Federal placer claims, the previous owner identified an indicated resource in D-Block #1 and 3B3 zones amounting
to 66,800 cubic yards grading 0.095 oz/yd gold.
It is assumed by the QP that both resource
types would be developed using underground extraction technologies.
22.2 Environmental Permitting and Social
Permit requirements include an Alaska
Placer Mine Application (APMA) from both state and federal agencies, including the U.S. Bureau of Land Management; a national pollution
discharge elimination system (NPDES) permit from the U.S. Environmental Protection Agency; a 404 Wetlands permit from the U.S. Army Corps
of Engineers; approval from the Mine Safety and Health Administration (MSHA); APMA and Bonding negotiations from the Alaska Department
of Natural Resources (ADNR); a waste water treatment permit from the Alaska Department of Environmental Conservation (ADEC); and a Title
16 Permit from the Alaska Department of Fish and Game (ADF&G).
GLM will need to
negotiate a maintenance plan for the Nolan Road with the Alaska Department of Transportation and Public Facilities, which conforms with
guidelines set forth by the Alaska State Historical Preservation Office, if artifacts are encountered.
The QP is unaware of any social interactions
or obligations with other groups active in the Nolan Creek area.
22.3 Mineral Processing
On behalf of the previous owner, the
QP collected a 414 pound bulk sample of semi-massive to massive stibnite, vein quartz, and wall rock gangue all from the defined mineralized
‘A’ zone in the Workman’s Bench underground workings (see Bundtzen, 2008c). The purpose was to determine the mineralogical
nature of the antimony mineralization and the source of significant gold values. That bulk sample was collected underground from the
main ‘A Zone’ on Workman’s Bench.
139
The bulk sample was sent to Hazen Research
Labs Inc. (Hazen) in Golden, Colorado, USA in to determine the most optimal grind for potential marketing of a stibnite product and identify
the mineralogical nature of gold and antimony values. The bench test results were very successful in helping to identify a processing
path to produce gold and antimony concentrates for the market.
There is variation in gold content of
the stibnite-bearing zones, even within constrained sample collection areas. The QP suggests that four (4) additional bulk samples
of vein-fault mineralization be collected: 1) an additional sample of ‘A’ zone mineralization on Workman’s Bench ;
2) a bulk sample from ‘B’, West, and C zones on Workman’s Bench; 3) a bulk sample of the ‘A’ zone from
Prongle Bench; and 4) a bulk sample from other mineralized zones on Pringle Bench.
22.4 Mineral Reserves
No Mineral Reserves have been identified
in this Technical Report.
140
23.0
RECOMMENDATIONS
23.1 Mineral Resources
The QP does not make any specific recommendations to GLM/USAC for advancing
their Indicated placer gold resources in Nolan Creek Valley. If those resources become a priority for development, the company should
attempt to determine whether the paystreaks occur in dry versus water environments.
Going forward, GLM should complete additional infill diamond core drilling
on Workman’s Bench. Workman’s Bench should be the top priority because it contains the best chance thus far known for documenting
consistent widths and grades of stibnite-quartz-gold mineralization. The exploration focus on ‘A’ zone previously described
but also include subsidiary vein systems. Drill-testing the zone of inferred mineralization should be given a high priority. A drill priority
should also be to drill-test Pringle Bench. Figures 23.1 and 23.2 illustrate the proposed target areas.
Figure 23.1 Plan map of Priority 1 work program for Workman’s
Bench, illustrating drill pattern to be used (in blue), and past drill collars and intercepts (in black and red).
141
Figure 23.2 Priority II program recommended for Pringle Bench, illustrating
drill pattern to be used
The diamond drill core should be of a larger
size than the modified NQ core previously used--not necessarily due to high recovery as the older NQ core was satisfactory in
producing high recovery rates. Instead, use of larger diameter ‘P’ core and a drill rig capable of drilling to 1,000
foot depths (or more) could greatly assist in determining the overall vertical extent of the mineralizing system. In order to
accomplish the drill-testing, Pringle Bench should be scrapped off much like it was prior to 2011. The veins to be targeted for
exploration were clearly visible (Figure 23.3, 23.4).
Figure 23.3 Ray Medina removes Pringle Bench overburden with hydraulic/air
pressure technology, 2009. Photo from QP files.
142
Figure 23.4 Pringle Bench mineralized surface revealed after removal
of overburden. The stibnite-quartz-gold veins and associated fault structures are marked in red. Photo from QP files.
Review of previous drill programs should be a priority before new drilling
takes place. Most of the core has been stored on the property and appears to be in a useable condition (Figure 23.5)
Figure 23.5 USAC VP Rodney Blakestad inspects drill core storage
facility on Nolan Creek. Photo from QP files.
143
23.2 Environmental, Permitting and Social.
GLM/USAC should build on environmental baseline work initiated by the
previous owner. On behalf of the previous owner, SRK Consulting initiated base line studies on the property in 2008, but none have been
completed since. GLM should advance baseline studies through investigations of geochemical characterization, meteorological precipitation,
hydrological steam run-off (including storm water) prediction and mixing zone potential. An early significant conclusion from past environmental
work is that un-weathered materials have a neutral pH; hence an ARD mitigation plan should be aimed at minimizing oxidation of waste rock
and ore materials during disposal and in-capsulation of material. Large samples taken underground should be run using acid-base accounting
procedures. In similar fashion, selected core of both mineralized vein and wall rock material from representative drill holes along strike
and at depth should be split for the expressed purpose of acid-base accounting analyses.
To the QP’s knowledge, the previous owner was not engaged in
any partnerships or agreements with outside parties. The leading landowner in the area is Doyon Limited (Doyon), a regional native corporation
based in Fairbanks. Doyon owns lands immediately west of the Nolan Creek area, which juxtaposes the Gates of the Arctic National Park
and Preserve. Doyon is currently in partnership with Wiseman Metals, a subsidiary of MDF-Global, on a district-scale evaluation of copper-precious
metal ‘skarn’ and ‘porphyry style copper mineralization north northeast of Coldfoot; sometimes referred to as the ‘Chandalar
Copper Belt’.
23.3 Geotechnical
Further work should expand the bedrock joint study with core-stress
testing engineering studies initiated by the previous owner, which examined underground workings on Workman’s Bench. In addition,
ASTM tensile stress measurements could be completed at a facility at the University of Alaska-Fairbanks, which can be made available for
contracted uses. The QP has used this lab in past years during material site investigations for the Alaska Department of Transportation
and Public Facilities. Completion of this work will help confirm what is already known about rock behavior as well as add information
about modifications needed for underground extraction techniques and waste disposal planning.
23.4 Mineral Processing
Additional processing studies will be required to address specific
mineral recovery objectives for either future lode or placer mining objectives. It is recommended to consult with University of Alaska
geological engineering facilities as well as commercial facilities for additional mineral processing studies.
144
23.5 Tailings Storage
The QP does not recommend work on a tailings facility until information
acquired from mineral processing, geotechnical, environmental or infill drilling programs are completed and when a proven reserve has
been established During their initial planning for development of the lode antimony-gold assets at Workman’s Bench, the previous
owner was considering use of the abandoned frozen drifts created by underground placer mine activities for the disposal of tailings. The
QP assumes this plan was canceled after 2011, when the property became dormant.
23.6 Mineral Reserves
Mineral reserves cannot be established until a
fundamentally upgraded, technical economic analysis is completed, incorporating previous studies and future studies. A Mineral Reserve
analysis was provided in Chapter 18 of a previous Canadian National Instrument (NI) 43-101 Technical Report issued by the QP for the previous
owner of subject claims (Bundtzen, 2011).
However, economic assumptions for the 2011 NI 43-101 Mineral Reserve
study have significantly changed. Commodity prices have increased, but inflationary costs for fuel, groceries, equipment, labor and many
other factors have driven costs significantly upward for operating a mineral development in Nolan Creek valley. Geopolitical issues have
also become important considerations. A new mineral reserve study is recommended to be conducted at the discretion of GLM/USAC.
145
24.0
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Exploration Program 2007-2008, Vertical Section 1, S1-S1’, October 21, 2008 scale: one inch=50 feet
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152
25.0
RELIANCE ON INFORMATION PROVIDED BY REGISTRANT
The Registrant (GLM/USAC) provided detailed information concerning
their ownership of the thirty-six (36) federal lode and placer claims in the Nolan Creek Valley that were acquired through a Trustee’s
public auction on January, 30, 2026. The Registrant also provided details of the forty-eight (48) Alaska State Mining Claims acquired
during the fall of 2026.
In June, 2026, the QP accompanied USCA’s Vice President of the
company’s Mining Division, Rodney Blakestad, on a two-day examination of the company’s properties in Nolan Creek valley.
Remaining information disclosed in this Technical Report is the responsibility
of the QC.
153
APPENDIX I: Summary of Relevant Sample Data Used in Calculation
of all Categories of Sb and Au Resources from Workman’s Bench That are Described in this Technical Report; Including Relevant Trace
Element Data
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
1
08SH02
(08SS47)
West
of ‘A’ Zone
160.0
160.6
0.6
0.50
23.30
0.031
2520
0.30
24.0
Quartz-Stibnite
vein about  2.0 inches wide (visual by QP)
2
08SH02
(08SS51)
‘A’  Zone
186.5
187.5
1.0
0.70
37.92
0.091
15.0
0.72
<0.2
5.5
inch (true thickness) quartz-stibnite vein with semi-massive stibnite also in remaining zone
3
08SH02
(08SS52)
‘B’
Zone
193.0
193.8
0.8
0.58
7.11
0.190
3260
0.59
10.3
2
parallel quartz stibnite veins about 4.5 inches  true width with sch
4
08SH03
(08SS67-68)
West
of ‘A’ Zone
41.4
42.5
1.1
1.00
37.91
0.301
0.8
0.45
1.4
Sheared
stibnite-quartz zone; about 1.0 foot true thickness; textures
5
Including
(08SS67)
West
of ‘A’ Zone
41.4
42.0
0.6
0.45
42.05
0.420
<0.01
1.38
<0.2
Sheared
nearly massive stibnite; about 0.45 foot true
6
08SH03
(08SS80)
‘A’
Zone
115.9
117.0
1.1
0.91
26.73
0.410
139
0.40
5.1
Several
closely spaced, quartz-stibnite veins
7
08SH03
(08SS81)
Hanging
wall ‘A’ zone
117.0
117.5
0.5
0.41
0.07
0.360
8560
1.26
20.6
Hanging
wall trace stibnite in quartz
8
08SH03
(08SS82)
‘B’
Zone
130.3
130.9
0.6
0.49
13.65
0.130
188
0.41
17.6
Stibnite-quartz
vein zone with siderite
9
08SH03
(08SS88)
Zone
not designated
161.5
162.0
0.5
0.41
0.01
0.140
>10000
0.37
9.8
Arsenopyrite-rich
quartz vein with trace of stibnite
10
08SH03
(08SS93)
‘C’
Zone
195.5
196.1
0.6
0.41
0.70
0.130
9930
0.15
56.1
Quartz-stibnite
zone; 10 % Sb2S3 (QP inspection)
11
08SH01B
(08SS13)
‘West’
Zone
33.8
35.2
1.4
0.92
53.44
0.280
<0.1
0.30
5.0
Massive
stibnite with only minor quartz
12
08SH01B
(08SS14)
‘A’
Zone’ Footwall
95.7
96.4
0.7
0.42
28.69
0.230
110
0.36
1.2
5
inch thick, vertical quartz-stibnite 3 inches of massive stibnite
13
08SH01B
(08SS15)
Main
‘A’ Zone
98.2
101.3
3.0
2.49
18.43
0.130
248
0.28
1.3
quartz-stibnite
veins; with locally massive stibnite over 3.0 feet
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
14
08SH01B
(08SS18)
Hanging
Wall ‘A’ Zone
108.0
108.5
0.5
0.41
26.05
0.020
5.9
0.21
1.1
2.0
inch massive stibnite with quartz
15
08SH01B
(08SS23, 08SR52,
08SS24)
‘B’
Zone
139.0
142.2
3.2
2.65
12.22
0.015
300
535
100
3.67
0.37
0.30
1.2
19.2
0.7
Massive
stibnite veins with quartz;  Sb grade over 3.2 feet
16
Including
(08SS24)
‘B’
zone
141.6
142.2
0.6
0.49
19.87
0.010
100.5
0.3
0.7
Thickest
stibnite-quartz vein (4 inches)
17
08SH01B
(08SS33)
‘C’
Zone
198.7
199.2
0.5
0.41
17.86
0.210
610
0.16
0.9
2.0
inch semi-massive stibnite vein in quartz gangue.
18
08SH15
(08SS192)
‘West
Zone
84.0
85.7
1.7
1.10
10.55
0.141
1,220
0.57
0.7
Stibnite-quartz
zone with slickensides
19
08SH15
(08SS196-197)
‘A’
Zone
113.0
117.0
4.0
2.58
23.06
0.028
527
0.87
<0.02
Semi-massive
stibnite over wide zone
20
08SH15
(08SS206-208
‘B’
Zone
182.5
190.7
8.2
4.80
6.25
0.092
2836
0.31
<0.02
Diffuse
zone of stibnite-bearing stockwork
21
08SH15
(08SS209)
‘C’
Zone ?
194.6
196.2
1.6
0.94
0.89
0.050
7620
0.29
18.3
Weak
zone with thin stibnite veins
22
08SH14
(08SS211)
‘West’  Zone
56.5
57.0
0.5
0.41
4.02
0.008
742
0.18
2.0
1.0
inch quartz-stibnite-carbonate vein
23
08SH14
(08SS212)
Zone
not Designated
88.3
92.0
3.7
3.07
0.27
0.180
>10000
0.23
6.9
Arsenopyrite-rich
quartz vein zone
24
08SH14
(08SS216)
‘A’
Zone
108.5
109.2
0.7
0.60
0.06
0.010
3000
0.31
9.0
Notes
from 09/27/08 visual by QP indicate 40% stibnite in a zone 0.6 feet wide true thickness
25
08SH14
(08SS218)
‘B’
Zone
121.0
122.0
1.0
0.83
0.25
0.260
4270
0.27
24.6
Disseminated
stibnite ion quartz vein vertical orientation (QP estimate)
26
08SH14
(08SS226)
‘C’
Zone
179.2
179.9
0.7
0.58
1.75
0.040
4320
0.44
81.2
Vuggy
Quartz vein with stibnite (30%) of total.
27
08SH14
(08SS227)
Possible
‘C’ Zone Extension
183.8
184.3
0.6
0.50
0.02
0.190
>10000
0.29
41.5
Arsenopyrite-rich
quartz vein about 3 inches thick
28
08SH17
(08SS240-241)
‘A’
Zone
285.0
288.3
3.3
1.91
0.00
0.160
8080
0.30
4.6
Wide
zone of stibnite=bearing quartz veins (3); stockwork type zone
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
29
Including
(08SS241)
‘A’
Zone
287.6
288.3
0.9
0.52
4.63
0.230
>10000
0.24
5.6
4
inch zone of stibnite-quartz vein; 25 percent Sb2S3 (QP estimate)
30
08SH17
(08SS242)
‘B’
Zone
299.3
299.9
0.6
0.35
13.63
0.200
28.5
1.02
<0.2
0.75
inch of massive stibnite on quartz vein
31
08SH17
(08SS243)
‘C’
Zone
311.8
312.9
1.1
0.64
0.01
0.120
>10000
0.30
8.9
Visual
by QP: contains 10% Sb2S3—not in assay results
32
08SH16
(08SS228)
West
of ‘west’ Zone
156.0
157.0
1.0
0.83
0.93
0.092
9340
0.37
12.8
Quartz-stibnite
vein about 4 inches thick
33
08SH16
(08SS229)
‘West’
Zone
197.0
198.0
1.0
0.83
1.11
0.020
2370
0.28
13.7
Quartz-stibnite
vein  4 inches thick
34
08SH16
(08SS231)
‘A’
Zone
233.7
234.7
1.0
0.83
1.64
0.053
7910
0.17
21.2
Quartz
vein with 5-8% stibnite as disseminations; vein is 6 inches thick
35
08SH16
(08SS235)
‘B’
Zone
309.5
310.5
1.0
0.83
0.00
0.390
1000
0.28
9.6
Quartz
vein with abundant arsenopyrite in vein selvages
36
07SH01
07SS06)
‘A’
Zone Main Vein
201.00
202.00
1.0
0.83
9.37
0.211
2250
NA
NA
Semi-Massive
stibnite with quartz stockwork
37
07SH01
(07SS08-12)
‘B’
Zone
223.50
242.50
19.00
15.77
3.24
0.091
3020
NA
NA
Quartz
–stibnite vein stockwork zone in four distinct zones.
38
Including
(07SS10)
‘B’
Zone
237.40
242.50
6.00
4.81
8.81
0.191
1250
NA
NA
Two
main stibnite-quartz stockwork; each 18 inches thick
39
Including
(267392)
‘B’
Zone
238.40
238.90
0.50
0.41
28.69
0.023
NA
NA
NA
Massive
stibnite in core
40
Trench
(W399)
‘A’
Zone Main Vein
NA
NA
1.20
1.20
50.63
0.240
NA
NA
NA
Furthest
trench sample on surface
41
07SH18
(07SS194-97;
SR378-79)
‘West’
Zone
46.5
53.5
7.0
3.26
1.24
0.029
325
NA
NA
Stibnite
bearing stockwork zone; core contains stibnite lenses
42
Including
(07SR379)
‘West’
Zone
52.7
53.5
0.8
0.67
7.94
0.058
160
NA
NA
Stibnite
bearing stockwork zone; core
43
08SH16
(08SS228)
‘West’
Zone
156.0
157.0
1.0
0.83
0.93
0.090
9340
0.37
12.8
Quartz
carbonate vein with stibnite grains and arsenopyrite
44
08SH16
(08SS229)
‘A’
Zone
197.0
198.0
1.0
0.83
1.11
0.020
2370
0.28
13.7
Disseminated
stibnite in 6 inch quartz vein
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
45
08SH32
(08SS375-379)
‘West’
Zone
171.5
177.5
6.0
6.23
0.085
See
below
See
below
See
below
Wide
zone (true width=3.2 feet) of quartz-stibnite-carbonate veinlet zone.
46
Including
(08SS375-376)
West
Zone
171.5
172.8
1.6
14.63
0.110
See
below
See
below
See
below
Wide
zone of quartz-stibnite veins
47
Including
(08SS375)
‘West
Zone
172.8
173.3
0.5
21.24
0.180
578
1.57
5.1
Semi-massive
stibnite vein zone
48
Including
(08SS379)
West
Zone
176.0
177.5
1.5
12.62
0.060
337
0.46
5.1
Three
flecks of gold noted during logging not reflected in assays
49
08SH32
(08SS380)
‘A’
Zone hanging wall
177.5
179.5
2.0
0.04
0.010
320
0.26
46.7
Visual
by QP: 20% stibnite and 80% quartz;  Sb2S3 not reflected in assays
50
08SH32
(08SS385)
‘A’
Zone Hanging Wall
186.5
188.0
1.5
1.22
0.275
1490
0.21
10.3
Quartz
carbonate vein with stibnite grains and trace arsenopyrite
51
08SH32
(08SS292-394
‘A’
Zone
203.7
209.5
5.8
8.20
0.180
>10000
18.2
7600
0.28
7.22
0.26
3.9
0.2
5.6
Wide
zone (true thickness=2.9 feet) of stibnite-bearing quartz vein mineralization
52
Including
(08SS393)
‘A’
Zone
205.7
206.6
0.9
38.74
1.130
18.2
7.22
0.2
Strong zone of stibnite-quartz mineralization
53
08SH32
(08SS396)
‘B’
Zone
212.0
213.5
1.5
0.09
0.030
5250
0.23
13.5
5%
percent Sb2S3 in large quartz zone
54
08SH33
(08SS411)
‘West
’ Zone
162.0
167.0
5.0
2.70
0.040
2140
0.59
23.9
Wide
stockwork vein zone contains disseminated Sb2S3
55
08SH33
(08SS426-427)
‘A’
Zone
242.0
243.2
1.2
14.74
0.030
68.5
0.29
1.2
Wide
zone (true thickness=1.00 feet) of stibnite-quartz mineralization
56
Including
(08SS426)
‘A’
Zone
242.0
242.6
0.6
19.68
0.040
68.5
0.29
1.2
Disseminated
to locally massive stibnite in quartz vein
57
203797
‘A’
Zone
166.20
167.70
1.50
0.36
0.036
67
ND
275
NW
fracture adjacent to ‘A’ Zone
58
08SH13
(08SS177)
Zone
not designated
17.8
18.3
0.5
13.16
0.025
20.4
2.1
<0.2
Quartz-stibnite
zone with locally 50% Sb2S3
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
59
08SH13
(08SS179)
‘West’
Zone?
121.3
126.7
5.4
3.40
1.99
0.138
>10000
0.31
11.8
Significant
wide zone (true thickness=3.4 feet)  with Sb+Au
60
08SH13
(08SS182)
‘A’
Zone
187.5
188.8
1.3
1.00
22.15
0.061
308
0.17
1.3
Thick
quartz-stibnite zone stibnite Lense
61
08SH13
(08SS184-85)
‘B’
Zone
208.4
212.2
3.8
2.43
6.21
0.061
2050
4410
0.53
0.19
14.0
18.4
Wide
zone of stockwork stibnite-quartz vein
62
Including
(08SS184)
‘B’
Zone
208.4
209.9
1.5
0.96
6.97
0.26
2050
0.53
14.0
Stibnite
lobes in wide
63
08SH13
(08SS188)
‘C’
Zone
250.6
252.6
2.0
1.28
0.07
0.050
5760
0.12
24.5
Quartz
carbonate veins (3) with isolated stibnite
64
203405
‘West’
Zone
138.0
139.5
1.5
1.50
41.20
0.110
NA
NA
NA
Semi-massive
stibnite in quartz gangue
65
203789
‘West’
Zone
40.5
42.0
1.5
1.50
22.48
0.556
4152
NA
141
In
wall of connecting drift; true thickness
66
203808
A
Zone
172.0
173.50
1.50
1.50
43.64
1.19
52
NA
<0.2
Nearly
massive stibnite with quartz
67
WBUG3
S1
‘A’
Zone
172.9
173.32
0.42
0.42
52.10
0.676
0.5
NA
1.1
Massive
stibnite core
68
WBUG3
S2
‘A’
Zone
172.9
173.32
0.42
0.42
58.89
0.329
<0.1
NA
0.5
Massive
stibnite core
69
WBUGG3
S3
‘A’
Zone
172.9
173.32
0.42
0.42
60.90
0.031
3010
NA
18.2
Massive
stibnite core
70
WBUGG3
S4
‘A’
Zone
172.9
173.32
0.42
0.42
55.71
0.451
1.3
NA
0.4
Massive
stibnite core
71
WBUGG3
S5
‘A’
Zone
172.9
173.32
0.42
0.42
11.10
0.444
2520
NA
4.5
Massive
stibnite core
72
WBUG8-
S2
‘A’
Zone
182.9
183.32
0.42
0.42
58.76
0.145
0.7
NA
0.2
Massive
stibnite core
73
203802
‘A’
Zone
114.0
116.50
2.50
2.50
37.78
0.076
68
NA
<0.2
‘A’
Zone in south drift
74
203810
‘B’
Zone
183.0
183.5
0.5
0.50
41.00
0.696
66
NA
<0.2
Nearly
massive stibnite with quartz gangue; south drift
75
203791
‘B’
Zone
199.1
200.35
0.50
0.50
39.73
0.362
1163
NA
<0.2
Nearly
massive stibnite with hanging wall; north drift
76
WBUGG8
S1
‘A’
Zone
NA
NA
0.42
0.42
57.52
0.359
1
NA
<0.2
Massive
stibnite
77
WBUG5
S2
‘B’
Zone
199.8
200.22
0.42
0.42
50.04
1.040
0.7
NA
<0.2
Massive
stibnite in vein core
78
WBUG8
S3
‘B’
Zone
NA
NA
0.42
0.42
58.02
0.696
2.5
NA
<0.2
Massive
stibnite core
79
203795
‘A’
Zone
40.00
41.50
1.50
1.50
40.35
0.357
52
NA
<0.2
Semi-Massive
stibnite-quartz vein
80
203488
‘B’
Zone
122.00
123.2.0
0.65
0.65
18.05
0.039
NA
NA
NA
Semi-Massive
stibnite-quartz vein
81
WBUG9
S1
‘B’
Zone
124.00
124.42
0.42
0.42
33.92
0.084
18.8
NA
<0.2
Semi-Massive
stibnite-quartz vein
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
82
WBUGG9
S2
‘B’
Zone
NA
NA
0.42
0.42
17.34
0.130
459
NA
0.4
Semi-Massive
stibnite
83
WBUGG5
S3
‘C’
Zone
NA
NA
0.42
0.42
13.38
0.031
2530
NA
3.8
Semi-Massive
stibnite
84
WBUGG9
S4
‘B’
Zone
NA
NA
0.50
0.50
7.34
0.513
5590
NA
2.3
Semi-massive
stibnite
85
203804
B
Zone Vein
218.0
218.45
0.45
0.45
56.88
0.033
NA
NA
NA
Massive
stibnite vein
86
203450
A
Zone
68.00
69.50
1.50
1.50
57.02
0.012
NA
NA
NA
Massive
Stibnite vein
87
203409
B
Zone  Vein
172.00
172.45
0.45
0.40
51.41
0.372
NA
NA
NA
Massive
Stibnite
88
Trench
J (52)
A
Zone Main Vein on Surface
151.0
159.2
8.2
8.20
30.30
0.140
NA
NA
NA
Semi-massive
stibnite
89
Trench
J
A
Zone Main Vein  on Surface
159.2
167.4
8.2
8.20
1.72
0.220
NA
NA
NA
Disseminated
stibnite
90
Trench
J
Surface
B Zone
167.4
175.6
8.2
8.20
11.70
0.037
NA
NA
NA
Semi-massive
stibnite
91
267397
Main
‘A’ Vein; surface
171.4
172.25
0.85
0.85
36.51
0.793
67
NA
275
Massive
Stibnite
92
Trench
J
Surface
B Zone
175.6
183.8
8.2
8.20
29.30
0.120
NA
NA
NA
Semi-massive
stibnite
93
Trench
J
Zone
between A and B Veins
183.80
192.00
8.2
8.20
2.56
0.016
NA
NA
NA
Disseminated
stibnite
94
Trench
J
‘B’
Zone
192.00
201.80
9.8
9.80
14.05
0.016
NA
NA
NA
Semi-massive
stibnite
95
Trench
J
West
Vein on Surface
35.0
43.2
8.2
8.20
1.70
0.040
NA
NA
NA
West
Vein as seen in 2008 drill hole
96
08SH18
(08SS250)
Interpreted
‘West’ Vein
276.0
277.0
1.0
0.64
0.01
0.037
NA
NA
NA
Arsenopyrite-rich
quartz vein
97
08SH18
(08SS254)
‘A’
Zone
313.0
315.0
2.0
1.27
0.15
0.102
3,420
0.23
6.5
Footwall
zone with arsenopyrite
98
08SH18
(08SS255
‘A’
Zone
315.0
316.8
1.8
1.15
27.65
2.88
27.1
3.21
0.5
High
grade quartz-stibnite vein
99
WBUG1-S2
‘A’
Zone
138.80
139.22
0.42
0.42
64.34
0.030
NA
NA
NA
Massive stibnite near hanging
wall
South drift
100
07SH15
(07SR193
‘West’
Zone’
127.0
130.5
3.5
2.59
0.25
0.035
1,000
268
11.2
Disseminated
stibnite in quartz
101
07SH15
(07SS173-175;
‘A’
Zone
192.0
197.8
5.80
4.29
4.07
0.104
912
NA
3.6
Disseminated
stibnite
102
07SH15
(07SR217-220)
‘B’
Zone
242.00
247.80
5.80
3.95
3.45
0.060
982
NA
5.5
Quartz
stibnite stockwork vein zone
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
103
Including
(07SS179)
‘B’
Zone
245.3
245.8
0.60
0.49
34.51
0.554
138
NA
3.1
Semi-Massive
stibnite with  quartz gangue
104
07SH15
(07SS180)
‘C’
Zone
253.3
253.8
0.5
0.41
9.69
0.056
922
NA
2.0
Disseminated
stibnite in quartz
105
08SH12B
(08SS166)
‘West’
Zone
180.4
180.9
0.5
0.41
6.94
0.050
1,060
0.36
0.3
Quartz
vein 8 inches thick with stibnite
106
08SH12B
(08SS168-170)
‘A’
Zone
204.1
209.0
4.9
3.62
6.99
0.107
1,936
0.36
1.0
Stibnite-bearing
quartz vein and hanging wall
107
Including
(08SS168)
‘A’
Zone
204.1
205.0
0.90
0.72
7.05
0.05
1,345
0.35
1.5
Base
of hanging wall
108
Including
(08SS170)
‘A’
Zone
208.1
209.0
0.9
0.72
20.97
0.220
10.8
0.47
<0.2
Semi-massive
stibnite vein with euhedral quartz gangue
109
08SH12B
(08SS173)
‘B’
Zone
236.3
236.8
0.5
0.40
0.40
0.030
2930
0.19
69.1
Thin,
3 inch thick quartz vein with stibnite grains
110
08SH12B
(08SS175)
‘C’
Zone
250.0
251.7
1.7
1.36
0.01
0.040
2720
0.31
10.4
Quartz
veon zone (true thickness=1.2 feet) trace stibnite.
111
08SH12B
(08SS176)
‘West
Zone’
179.8
180.4
0.6
0.41
0.01
0.029
4130
0.13
2.3
Veinlet
zone in footwall of ‘West Zone’ contains arsenopyrite and trace stibnite
112
07SH14
(07SS157-159;SR117)
‘West’
Zone
161.6
172.0
10.4
7.80
4.99
0.056
2470
NA
NA
Stibnite
stockwork vein zone
113
Including
(07SS159)
‘West’
Zone
166.2
167.6
1.4
1.05
29.23
0.224
201
NA
NA
Semi-Massive
stibnite lense
114
07SH14
(07SS166)
‘A’
Zone
208.6
209.6
1.0
0.80
6.42
0.242
7000
NA
NA
Stibnite
stockwork vein zone
115
Including
(267394)
‘A’  Zone
209.0
209.15
0.15
0.10
51.42
1.610
1100
NA
NA
Thin
massive stibnite lense
116
07SH14
(07SS168)
‘B’
Zone
240.0
240.5
0.5
0.40
8.81
0.160
621
NA
NA
Thin
stibnite stockwork vein zone
117
07SH14
(07SS169)
‘C’
Zone
257.7
258.7
1.0
0.8
0.152
0.071
5,580
NA
ND
Disseminated
Sb and As
118
08SH11
(08SS155)
‘West’
Zone
184.7
185.4
0.9
0.58
3.55
0.073
2670
0.17
2.4
Stibnite
bearing quartz vein about 5 inches
119
08SH11
(08SS156-158)
‘A’
Zone
193.0
197.0
4.0
2.56
8.12
0.184
6700
1710
0.22
0.21
7.5
3.7
Stibnite
bearing quartz vein about 2.5 feet
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
120
Including
(08SS157)
Footwall
of ‘A’ Zone
193.6
194.5
0.9
0.58
10.02
0.120
1710
0.21
3.7
Footwall
zone of ‘A’ Vein is part of system below, separated by 1.0 feet of wall rock. Abundant AsPy
121
Including
(08SS158)
‘A’
Zone
196.2
197.0
0.8
0.51
10.36
0.330
389
0.13
0.7
Main
‘A’ zone characterized by sheared fine-grained stibnite (QP)
122
08SH11
(08SS159)
‘B’
Zone
225.3
226.1
0.8
0.51
11.20
0.700
984
2.01
1.6
Quartz-stibnite
zone with 2.0 inch massive stibnite vein; As sulfides abundant in margins
123
08SH11
(08SS160)
‘C’
Zone?
275.8
276.8
1.0
0.65
11.36
0.040
7790
0.11
6.5
Quartz-stibnite
vein with 25% stibnite.
124
07SH13
(07SS140)
‘West’
Vein
38.5
39.3
0.8
0.66
2.34
0.074
>10000
NA
7.8
Thin
quartz stibnite vein 3 inches thick
125
07SH13
(07SS144)
‘A’
Zone
133.0
134.5
1.5
1.24
0.05
0.230
3740
NA
4.2
True
thickness of quartz vein is 1.2 feet stibnite vein (log notes)
126
07SH13
(07SS146-48)
‘B’
Zone
196.0
200.0
4.0
2.80
3.37
0.040
1315
7170
172
NA
5.0
Stibnite
bearing stockwork zone; core contains stibnite
127
Including
(07SS146)
‘B’
Zone
196.0
196.5
0.5
0.40
7.79
0.031
1315
NA
19.6
Stibnite
bearing stockwork zone; core contains stibnite
128
Including
(07SS148)
‘B’
Zone
199.5
200.0
0.5
0.40
19.09
0.100
172
NA
<0.2
Stibnite
bearing stockwork
129
08SH22
(08SS308)
West
of ‘West’ Zone
204.5
205.5
1.0
0.64
0.72
0.016
2100
0.07
14.6
Stockwork
vein with stibnite xtals
130
08SH22
(08SS309)
‘West’
Zone
215.0
222.0
7.0
4.00
0.46
0.017
636
0.09
10.0
Thick
zone of quartz vein stockwork with six vein zones
131
08SH22
(08SS312-313)
‘A’
Zone
226.0
227.5
1.5
1.20
13.10
0.080
1705
0.12
1.4
Quartz-stibnite
mineralization true thickness=1.2 feet
132
Including
(08SS313)
‘A’
Zone
227.5
228.0
0.5
0.35
18.97
0.120
1110
0.14
0.6
Semi-massive
stibnite core of vein
133
08SH22
(08SS318)
‘B’
Zone
252.8
253.3
0.5
0.35
0.02
0.140
>10000
0.18
20.8
Quartz-carbonate
vein zone with tr stibnite.
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
134
08SH24
(08SS333)
‘West’
Zone
99.0
100.0
1.0
0.80
19.58
0.090
703
1.73
5.7
75
degrees steep SE
135
08SH24
(08SS335)
‘A’
Zone
118.7
119.4
0.7
0.56
11.05
0.060
1285
0.85
11.8
Quartz-stibnite
zone with massive stibnite lenses 2.5 inches thick
136
08SH24
(08SS341-342)
‘B’
Zone
204.1
205.5
1.4
1.12
15.13
0.250
>10000
0.32
8.9
Thick
zone of quartz-stibnite mineralization; vertical true thickness=1.1  feet
137
Including
(08SS342)
‘B’
Zone
204.9
205.5
0.6
0.48
28.72
0.340
37.3
0.68
0.3
Semi-massive
stibnite vein about 4 inches thick
138
08SH24
(08SS343)
‘C’
Zone
265.0
267.0
2.0
1.10
0.064
0.110
>10000
0.15
57.1
Thick
quartz vein zone (true thickness=1.1 feet) with stibnite grains.
139
08SH07
(08SS100)
‘West’
Zone
171.5
172.0
0.5
0.40
3.95
0.060
4340
0.2
2.1
Quartz-stibnite
mineralized vein (3 inches)
140
08SH07
(08SS101)
Zone
not designated
175.0
175.5
0.5
0.40
3.43
0.011
773
0.2
2.1
Thin
quartz vein with stibnite
141
08SH07
(08SS102)
Zone
not designated
181.5
182.0
0.5
0.40
17.54
0.020
33.8
0.95
2.8
2.0
inch massive stibnite in two veins;
142
08SH07
(08SS104)
‘A’
Zone
185.2
185.7
0.5
0.40
11.28
0.020
102
0.9
3.1
2.0
inch massive stibnite in two veins;
143
08SH07
(08SS106)
‘A’
Zone Hanging Wall
201.0
202.0
1.0
0.80
0.03
0.300
>10000
0.29
9.9
Steep
quartz-carbonate veins with minor stibnite and arsenopyrite
144
08SH07
(08SS111)
‘B’
Zone
221.0
222.0
0.8
0.64
21.10
0.149
378
1.14
0.9
Contains
4.0 inch thick massive stibnite in quartz-stibnite zone 1.0 feet thick (visual estimate by QP)
145
08SH07
(08SS115)
‘C’
Zone?
250.0
250.5
0.5
0.40
0.01
0.040
6090
0.2
5.5
Vug-rich
quartz vein with AsPy in selvage zones
146
08SH10
(08SS147)
‘West’
Zone
90.2
91.6
1.4
1.16
4.39
0.280
5370
0.26
18.8
Thick
gold-bearing vein with isolated lenses of stibnite
147
08SH10
(08SS148)
Footwall
‘A’ Zone
104.4
105.1
0.7
0.58
4.41
0.050
6200
0.23
21.2
Quartz-carbonate
vein with minor stibnite \
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
148
08SH10
(08SS149)
‘A’
Zone
106.3
107.0
0.7
0.58
20.36
0.100
512
1.48
4.0
8
inch thick stibnite quartz vein (visual estimate by QP)
149
08SH10
(08SS150)
‘B’
Zone
188.4
189.2
0.8
0.64
25.00
0.120
112.5
1.56
3.6
8
inch thick stibnite-quartz vein with 55% Sb2S3 (visual estimate by QP)
150
08SH10
(08SS151)
‘C’
Zone
290.8
291.5
0.7
0.58
0.08
0.014
1620
0.16
5.4
Quartz
vein 3 inches thick with stibnite grains
151
08SH23
(08SS326)
‘A’
Zone
194.5
195.5
1.0
0.80
18.24
0.520
798
0.48
2.9
Quartz-stibnite
vein with 8 inches of true vein thickness
152
07SH16
(07SS183-186)
‘A’
Zone
238.1
243.1
5.0
4.15
1.79
0.045
1090
NA
3.1
Stibnite
bearing stockwork zone; core of massive stibnite zones
153
Including
(267396)
A
Zone Vein Wall
242.8
243.3
0.5
0.41
42.72
0.170
NA
NA
4.2
Massive
stibnite in core
154
07SH16
(07SS186)
‘
B’ Zone
245.3
245.8
0.5
0.41
23.24
0.030
42.7
NA
19.9
Semi-massive
stibnite  zone in larger
155
07SH16
(07SS192)
‘C’
Zone?
366.0
366.5
0.5
0.41
0.12
0.035
1510
NA
2.1
Thin
quartz vein with stibnite grains
156
08SH20
(08SS285
West
of ‘A’ Vein
212.0
217.0
5.0
4.0
0.10
0.000
41.2
0.41
18.2
Zone
of quartz veinlets with trace stibnite
157
08SH20
(08SS287)
‘A’
Vein
242.6
243.3
0.7
0.56
3.32
0.030
3250
0.11
1.0
Quartz=stibnite
vein with 10% Sb2S3
158
08SH20
(08SS291)
‘B’
Vein?
278.8
279.8
1.0
0.80
0.01
0.044
4340
0.28
46.3
Quartz-aspy
vein zone; no stibnite recognized
159
08SH20
(08SS294)
‘C’
Vein?
329.5
330.0
0.5
0.40
0.02
0.062
>10000
0.16
93.3
Quartz
aspy vein zone; no stibnite recognized
160
08SH08
(08SS119)
‘West’
Zone
347.9
348.6
0.7
0.56
5.77
2.68
>10000
0.54
8.7
4.0
inch wide massive stibnite in phyllitic schist with only minor quartz gangue
161
08SH08
(08SS122)
Footwall
of ‘A’ Zone
375.0
375.5
0.5
0.40
34.77
0.610
73.2
8.12
1.1
Massive
stibnite lense 7 inches wide (true thickness=5 inches); with 50% quartz
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
162
08SH08
(08SS123-124)
‘A’
Zone
378.4
381.2
2.8
2.25
18.29
0.183
2,919
0.41
1.1
Massive
stibnite lense 6 inches thick with 50% quartz gangue (visual estimate by QP)
163
Including
(08SS123)
Hanging
Wall ‘A’ Zone
380.0
381.2
1.2
0.96
46.02
0.050
39.8
0.42
1.1
Hanging
Wall of ‘A’ Zone contains quartz-stibnite stockwork
164
08SH08
(08SS126)
‘B’
Zone
405.2
405.7
0.5
0.40
0.03
0.014
3490
0.27
5.8
Weal
quartz vein mineralization
165
08SH19
(08SS275)
‘West’
Zone?
148.5
149.0
0.5
0.40
1.76
0.005
84.9
0.48
4.3
Weak
quartz stibnite vertical  vein
166
08SH19
(08SS281-283)
‘A’
Zone
217.0
219.5
2.5
2.07
19.13
0.138
2750
13.1
0.28
4.28
2.3
0.3
Wide
zone of stibnite-Quartz stockwork mineralization
167
Including
(08SS281)
‘A’
Zone  Footwall
217.0
217.5
0.5
0.41
22.75
0.030
26.7
0.92
0.3
Two
1.0 inch thick massive stibnite-quartz  veins
168
Including
(08SS283)
Main
‘A’ Zone
218.5
219.5
1.0
0.83
34.61
0.350
13.1
4.28
0.3
Two
stibnite + quartz veins with 3 flecks of visible gold (visual estimate by QP)
169
08SH29
(08SS355)
‘A’
Zone
347.0
348.0
1.0
0.83
0.02
0.000
146
0.01
32
Quartz-carbonate
vein with trace stibnite—Sb not reflected in assay results
170
08SH21
(08SS301)
Footwall
to ‘A’ Zone
305.0
305.5
0.5
0.40
16.96
0.040
263
0.24
0.5
Stibnite
plus quartz euhedral vein; cuts schist vertically
171
08SH21
(08SS302)
Main  ’A’
Zone
305.5
307.0
1.5
1.20
63.47
0.080
3.1
3.65
<0.2
Massive
stibnite 13 inches true thickness—no gangue; most impressive zone observed
172
08SH21
(08SS305)
Hanging
Wall to ‘A’ Zone
312.7
313.5
0.7
0.56
30.20
0.410
101
8.46
0.2
Quartz-stibnite
vein; same pattern  as 08SH08
173
08SH21
(08SS306)
‘B’
Zone
317.0
317.7
0.7
0.56
27.10
0.190
72.7
0.54
0.4
Vertical
quartz-stibnite vein
174
08SH21
(08SS307)
‘B’
Zone
317.7
318.7
1.0
0.80
4.85
0.020
2150
0.17
13.8
Disseminated
zone in hanging wall.
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
175
08SH25
(08SS346)
‘West’
Zone?
40.8
41.3
0.5
0.41
1.07
0.040
>10000
0.3
120
Quartz
vein with disseminated stibnite and >3% arsenopyrite
176
08SH25
(08SS351)
‘A’
Zone
374.8
376.5
1.7
1.41
43.20
2.860
367
1.81
0.5
Massive
stibnite with no gangue—additional quartz in selvages;   70 % Sb2S3 and the rest quartz (visual estimate by QP)
177
08SH25
(08SS352-353)
Hanging
Wall of ‘A’ Zone
376.5
378.5
2.0
1.66
4.46
0.140
3080
0.41
7.4
A
total of four (4) stibnite-quartz veins each about 1.5 inches thick; with arsenopyrite
178
Including
08SS352
Hanging
Wall of ‘A’ Zone
376.5
377.0
0.5
0.41
4.45
0.214
5630
0.35
15.6
Gold
enriched portion of wider intersection
179
08SH31
(08SS369)
‘West’
Zone
272.0
273.5
1.5
1.09
0.010
0.090
>10000
0.09
3.3
Weak
quartz vein mineralization with trace stibnite.
180
08SH26
(08SS398)
Footwall
of ‘A’ Zone
334.5
335.0
0.5
0.37
1.04
0.260
>10000
0.09
3.6
Several
quartz-sulfide veins with stibnite veins
181
08SH26
(08SS399)
Interpreted
‘A’ Zone
337.0
337.5
0.5
0.37
3.59
0.070
6700
0.14
7.2
Quartz-stibnite
vein with about 10% stibnite
182
08SH26
(08SS400)
Hanging
Wall ‘A’ Zone
340.5
341.0
0.5
0.37
4.91
0.030
3250
0.13
52.7
Quartz-stibnite
vein zone with 12-14% Sb2S3
183
08SH26
(08SS403)
‘B’
Zone?
352.0
359.0
7.0
5.11
0.01
Trace
82.4
0.04
5.6
Swarm
of quartz veins with isolated grains of stibnite.
184
08SH09
(08SS138)
‘A’
Zone
346.4
347.4
1.0
0.80
5.85
0.090
3020
0.51
3.1
Quartz-stibnite
vein with about 10% Sb2S3; (visual estimate by QP)
185
08SH09
(08SS139)
‘A’
Zone Hanging Wall
350.5
351.2
0.7
0.56
0.01
0.084
5890
0.33
2.4
Quartz
vein with trace stibnite
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
187
08SH27
(08SS407)
‘A’
Zone
346.0
347.0
1.0
0.80
0.01
0.010
3860
0.07
36.6
Quartz
vein with isolated grains of stibnite and 0.35% arsenic
188
09SH01
(09SS01)
‘B’
Zone
114.2
114.8
0.6
0.50
13.90
0.071
475
0.79
0.50
One
inch wide massive quartz-stibnite vein with 80% stibnite
189
09SH01
(09SS02)
‘A’
Zone Hanging Wall
178.2
181,1
2.9
2.40
0.03
0.058
6,310
0.22
4.1
Vuggy
coarse quartz veins with trace disseminated sulfides
190
09SH01
(09SS03)
‘A’
Zone
181.1
182.0
0.9
0.75
<0.01
0.072
7,730
0.25
2.5
Dense
quartz vein swarm with trace stibnite and arsenopyrite
191
09SH01
(09SS04)
West
Zone
189.9
190.6
0.7
0.58
0.07
0.126
6,680
0.27
8.9
3.25
inch thick vuggy quartz-stibnite vein
192
09SH02
(09SS019)
‘A’
Zone
160.3
162.0
1.7
1.36
5.64
0.035
2,310
0.27
0.9
Quartz
carbonate stibnite stockwork
193
09SH02
(09SS020)
‘A’
Zone Hanging Wall
162.0
162.9
0.9
0.72
0.18
0.035
4,560
0.37
15.6
Quartz-stibnite
breccias vein; analytical  Sb content lower than visual in core
194
09SH02
(09SS021)
‘A’
Zone Hanging Wall
162.9
164.6
1.7
1.36
3.05
0.042
3,790
0.40
29.1
Two
vertical quartz-stibnite veins 0.75 inches thick; 0.30 foot carbonate vein
195
09SH03
(09SS035
‘A’
Zone hanging wall
164.1
164.6
0.5
0.40
0.35
0.012
NA
NA
NA
3/8
inch qtz +Sb; 30% stibnite—over-drilled
196
09SH03
(09SS036)
‘A’
Zone
168.0
168.6
0.6
0.40
0.80
0.019
NA
NA
NA
<1/2
inch qtz-Sb; 80% stibnite-over -drilled
197
09SH04
(09SS039-040)
‘B’
Zone
145.0
148.7
3.7
2.75
1.57
0.169
5,130
0.90
2.6
Quartz-carbonate
veins and quartz-stibnite breccias—contamination from hanging wall
198
09SH04
(09SS047)
‘A’
Zone
193.6
195.8
2.2
1.62
3.71
0.002
415
0.24
3.4
Abundant
quartz carbonate stibnite veins
199
09SH04
(09SS048)
‘A’
Zone
195.8
196.3
0.5
0.37
1.65
0.190
2,170
0.37
15.7
Similar
to 09SS047 but more disseminated arsenopyrite
Sample
Control #
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/t)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
200
09SH05
(09SH022)
‘A’
Zone
276.2
276.7
0.5
0.30
47.29
0.217
2.9
1.16
0.7
Hanging
wall of massive stibnite vein; arsenopyrite in hanging wall (see cover photo)
201
09SH05
(09SS023)
‘A’
Zone
276.7
278.3
1.6
1.30
69.21
0.251
<0.1
1.63
0.2
Massive
stibnite vein (see cover photo)
202
09SH05
(09SS024)
‘A’
Zone
278.3
278.8
0.5
0.30
39.53
0.389
17.9
0.79
1.3
Footwall
contact zone containing massive stibnite arsenopyrite
203
09SH06
(09SS054)
‘A’
Zone
214.3
215.3
1.0
0.75
36.24
0.061
12.3
15.70
0.4
Massive
stibnite  up to 3 inches thick within sheared carbonate-stibnite vein swarms
204
09SH07
(09SS058)
‘A’
Zone Hanging wall
216.2
217.0
0.9
0.62
34.00
0.648
45.7
3.74
0.2
Quartz-stibnite
veins, locally massive
205
09SH07
(09SS059)
‘A’
Zone
218.0
219.6
1.6
0.93
47.97
0.780
3.6
7.02
2.9
One
foot wide massive stibnite-quartz vein with fine grained sheared stibnite
206
09SH08
(09SS060)
‘A’
Zone
278.6
279.7
1.1
0.64
55.38
0.566
<0.1
12.15
0.7
0.64
feet wide (true width) massive stibnite vein with 85% massive stibnite
207
09SH09
(09SS063)
Hanging
wall of ‘A’ Zone
165.5
166.5
1.0
0.83
0.09
0.060
5,800
0.27
3.4
Quartz-stibnite
stockwork veins; more visual stibnite than analytical Sb (discrepancy?)
208
09SH09
(09SS064-065)
‘A’
Zone
169.0
172.3
3.3
2.00
2.20
0.090
8,380
0.26
14.5
Broken,
chaotic quartz-stibnite vein zone with Sb veins 0.5-1.5 inches.  True width is 2.0 ft; part of larger chaotic zone 6.8
feet wide (from 165.5-172.3
APPENDIX II Summary of Relevant Sample Data Used in Calculation
of Inferred Sb and Au Resources from Pringle Bench that are described in this Technical Report.
Sample
Control
#
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/ton)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Descri
p
tion
1
Trench
I
(07112-07113)
West
of ‘West’ Zone
90.2
95.1
4.9
4.9
14.64
0.030
NA
NA
NA
Multiple
thin stibnite quartz veins vertical
2
Trench
I
(0715)
‘West’
Zone
100.6
102.7
2.1
2.1
26.23
0.230
NA
NA
NA
Semi-massive
stibnite-quartz vein; vertical
3
Trench
I
(07120)
‘A’
Zone
132.2
133.4
1.2
1.2
30.03
0.044
NA
NA
NA
Trench
exposure shows vertical vein
4
Trench
I
(0714)
‘B’
Zone
157.4
163.3
5.9
5.9
30.35
0.035
NA
NA
NA
Semi-massive
stibnite in quartz vein about 1.5 feet
5
Trench
I
(07129)
‘C’
Zone
189.6
190.2
0.6
0.6
22.92
0.040
NA
NA
NA
Thin,
semi-massive stibnite quartz vein
6
Trench
I
(07159)
East
of ‘C’ Zone
428.0
428.2
0.2
0.2
48.07
0.020
NA
NA
NA
Massive
stibnite near vertical gash vein with <5.0% quartz
7
Trench
I
(07166)
East
of ‘C’ Zone
472.3
472.6
0.3
0.3
59.52
0.010
NA
NA
NA
Massive
stibnite near vertical gash vein with <5.0% quartz
8
Trench
I
(07176)
East
of ‘C’ Zone
540.2
540.4
0.2
0.2
64.76
0.010
NA
NA
NA
Massive
stibnite near vertical gash vein with <5.0% quartz
9
07SH08
(07SS71-73)
‘B’
Zone
45.0
46.5
1.5
1.25
5.62
0.069
NA
NA
NA
Vertical
stibnite-quartz vein
10
Including
(07SS71)
‘B’
Zone
45.0
45.5
0.5
0.42
12.60
0.140
NA
NA
NA
Vertical
stibnite-quartz vein
11
07SH08
West
Zone?
147.0
148.0
1.0
0.83
0.31
0.052
NA
NA
NA
Disseminated
stibnite with arsenopyrite
12
07SH08
(07SS75)
‘A’
Zone
78.25
79.25
1.0
0.80
40.80
0.212
NA
NA
NA
Nearly
massive stibnite in quartz gangue
13
07SH09
(07SS90)
‘B’
Zone
46.75
47.75
1.0
0.83
8.78
0.020
NA
NA
NA
Vertical
stibnite-quartz vein; twinned from 07SH08
14
07SH09
(07SS93)
‘A’
Zone
80.0
80.5
0.5
0.42
33.51
0.391
NA
NA
NA
Nearly
massive stibnite in quartz gangue twinned
15
07SH09
‘West’
86.0
86.5
0.5
0.42
10.78
0.044
NA
NA
NA
Disseminated
stibnite
Sample
Control
#
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/ton)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
16
Trench
M
(07M08-07M10)
‘West’
Zone
114.8
116.9
2.1
2.10
19.90
0.035
NA
NA
NA
‘West’
Zone of semi-massive stibnite plus quartz; true thickness=0.7 feet
17
Trench
M
(07M13)
‘A’  Zone
121.4
127.9
6.5
6.50
35.11
0.000
NA
NA
NA
Semi-massive
stibnite in phyllite gangue zone
18
Trench
M
(07M17)
‘B’
Zone
127.9
141.0
13.1
13.1
1.45
0.020
NA
NA
NA
Continuous
chip through Sb-bearing veinlet zone.
19
07SH07
(07SS49)
‘B’
Zone
30.0
31.0
1.0
0.83
7.11
0.023
NA
NA
NA
About
12% stibnite in euhedral quartz gangue
20
07SH07
(07SS52)
‘A’
Zone
65.0
66.0
1.0
0.83
14.88
0.338
NA
NA
NA
Interpreted
‘A’ Zone of semi-massive stibnite plus quartz mineralization; true thickness=0.7 feet
21
07SH07
(07SS61)
‘West’
Zone
132.5
133.0
0.5
0.42
0.29
0.022
NA
NA
NA
Stibnite
in quartz vein
22
07SH06
‘A’
Zone
18.3
19.3
1.0
0.83
60.03
<0.005
NA
NA
NA
Massive
stibnite lense  6 inches thick
23
07SH06
(07SS44)
‘West
Zone’
36.8
37.3
0.5
0.42
8.28
0.028
NA
NA
NA
Disseminated
stibnite in quartz carbonate vein
24
07SH06
(07SS46)
‘West
Zone”
42.0
42.5
0.5
0.42
6.88
<0.005
NA
NA
NA
Disseminated
stibnite in quartz carbonate vein
25
07SH05
(07R548)
West
Zone
112.0
115.0
3.0
2.22
2.97
<0.005
NA
NA
NA
Silicified
zone with disseminated stibnite
26
07SH02
(07SS15)
‘A’
Zone
39.5
40.5
1.0
0.83
19.56
0.020
NA
NA
NA
Quartz-stibnite
vein with thermal metamorphic textures (6 inches thick; QP examination)
27
07SH02
(07SS18)
‘West’
Zone
51.5
52.5
1.0
0.83
0.21
0.015
NA
NA
NA
Disseminated
stibnite in quartz vein; with arsenopyrite
28
Trench
‘D’
(06ST001-002)
‘West’
Zone
67.0
67.5
0.5
0.50
27.86
0.090
NA
NA
NA
High
angle, semi-massive stibnite veins (3) in schist
Sample
Control
#
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/ton)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Descri
p
tion
29
Trench ‘D’
(06ST030-032)
‘A’
Zone
85.0
86.5
1.5
1.50
14.95
0.037
NA
NA
NA
Disseminated
stibnite in quartz vein; with arsenopyrite
30
07SH02
(07SS24-25)
West
Sb-Au vein
183.5
187.5
4.0
2.5
1.05
0.019
NA
NA
NA
Wide
zone with vein zone about 2.5 feet in true thickness; stibnite disseminations in quartz
31
Including
(07SS24)
West
Sb-Au vein
183.5
186.5
3.0
2.0
1.70
0.017
NA
NA
NA
Vein
zone about 2.0 feet in true thickness; stibnite disseminations in quartz
32
07SH04
(07SS30)
West
Zone
108.5
109.0
0.5
0.42
6.05
0.004
NA
NA
NA
Disseminated
stibnite in thin quartz zone quartz
33
07SH03
(07SS219)
‘A’
Zone
17.5
18.4
0.9
0.75
3.83
0.054
NA
NA
NA
Quartz-stibnite
vein with thermal metamorphic textures (6 inches thick; QP examination)
34
07SH03
(07SS220)
West
Zone
34.6
35.1
0.5
0.50
0.84
0.005
NA
NA
NA
Disseminated
stibnite in thin quartz zone quartz
35
Trench F
(06ST061)
West
of ‘West’ Zone
200.0
200.3
0.3
0.30
20.18
0.748
NA
NA
NA
Steep,
stibnite-quartz vein
36
Trench F
(06ST063)
‘West’
Zone
315.0
315.3
0.3
0.30
8.43
0.090
NA
NA
NA
Steep,
stibnite-quartz vein
37
Trench F
(06ST066)
‘A’
Zone
350.0
350.3
0.3
0.30
17.42
0.120
NA
NA
NA
Quartz-stibnite
vein with thermal metamorphic textures (6 inches thick; QP examination);
Definitive observation
for ‘A’ Zone
38
Trench F
(06ST071)
‘C’
Zone
435.0
435.3
0.3
0.30
46.33
0.040
NA
NA
NA
Thin
stibnite vein in schist
39
06SH01
(06SH153)
‘A’
Zone
275.0
280.0
5.0
4.15
2.50
0.050
NA
NA
NA
RC
Program with stibnite-quartz zone identified.
40
06SH01
(06SH150)
‘B’
Zone
250.0
255.0
5.0
4.15
0.93
0.030
NA
NA
NA
Disseminated
stibnite in thin quartz zone
41
09SH11
(09SS077)
West
Zone
10.7
11.4
0.7
0.58
38.51
0.807
36.2
1.51
1.7
Massive
stibnite 0.5 feet thick
42
06STO30-032)
Trench
H
West
Zone
85.0
86.5
1.50
1.50
14.90
0.050
NA
NA
NA
Continuous
Chip
Sample
Control
#
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/ton)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Descri
p
tion
43
09SH11
(09SS078)
‘A’
Zone
29.0
30.0
1.0
0.83
10.25
0.122
1,120
0.12
2.2
Quartz-stibnite
vein 0.6 feet of a 1.5 foot vein of massive stibnite recovered
44
09SH12
(09SS080)
Footwall
‘A’ Zone
17.0
17.5
0.5
0.42
7.20
0.041
3,370
0.23
0.4
Broken
quartz-stibnite vein
45
09SH12
(09SS081)
‘A’
Zone
20.0
21.5
1.5
1.25
32.10
0.052
39.9
0.34
0.2
One
foot of massive stibnite and 0.5 feet of stibnite-quartz stockwork
46
09SH13
(09SS085)
‘A’
Zone
233.0
237.8
4.8
2.78
8.91
0.045
1,260
0.33
2.1
Two
foot wide (true width) zone of braided quartz-stibnite veins
47
09SH14
(09SS086)
‘B’
Zone
43.2
44.7
1.5
1.25
36.60
0.008
0.7
0.18
4.3
0.3
foot wide quartz-stibnite vein with 50% fine grained sheared stibnite—like ‘A’ Zone
48
09SH14
(09SS088)
‘A’
Zone
112.5
113.5
1.0
0.83
50.94
0.019
1.2
2.44
1.2
Massive
stibnite with oxidation--kermesite
49
09SH14
(09SS089)
West
Zone
129.5
130.0
0.5
0.30
6.94
0.011
1,430
0.21
3.6
Braided
quartz-stibnite vein swarm
50
09SH15
(09SS092)
‘B’
Zone
13.0
13.7
0.7
0.41
15.25
0.156
2,170
0.22
1.6
Sheared
quartz-stibnite zone possible caught in fault zone
51
09SH15
(09SS095)
‘A’
Zone hanging wall
156.0
157.0
1.0
0.58
3.32
0.057
7,880
0.30
61.1
Two
parallel quartz-stibnite veins with semi-massive stibnite
52
09SH15
(09SS096)
‘A’
Zone
162.5
163.5
1.0
0.58
35.48
0.030
75.3
0.46
1.3
One
foot wide zone of quartz-stibnite mineralization; 4 inches massive stibnite--sheared
53
09SH16
(09SS098)
‘A’
Zone branch
152.0
153.0
1.0
0.74
8.20
0.015
1,110
0.24
3.5
Over-drilled
quartz-stibnite vein
54
09SH16
(09SS099)
‘A’
Zone
156.0
157.0
1.0
0.74
10.16
0.039
2,210
0.49
7.9
Broken
quartz-stibnite vein
55
09SH16
(09SS100)
West
Zone
160.5
161.5
1.0
0.74
5.77
0.071
8,290
1.04
18.2
0.3
feet quartz-stibnite vein
56
09SH18
(09SS116-117)
‘A’
Zone hanging wall
72.5
74.5
2.0
1.33
3.30
0.009
990
0.15
14.1
Quartz-carbonate
stibnite veins in hanging wall of ‘A’ zone
Sample
Control
#
Drill
Hole #
(Assay
Intervals)
Underground
or Surface
Channels
Stibnite
Target
Vein Zone
From
(feet)
To
(feet)
Width
(feet)
Estimated
True
Width
Sb
(%)
Au
(oz/ton)
As
(ppm)
Hg
(ppm)
Pb
(ppm)
Brief
Description
57
09SH18
(09SS109)
‘A’
Zone
74.5
75.5
1.0
0.66
37.73
5.72
6.9
0.32
<0.2
Quartz-stibnite
vein with coarse visible gold, 0.8 feet true thickness
58
09SH18
(09SS122-123)
West
Zone
109.5
111.5
2.0
1.33
4.11
0.016
NA
NA
NA
Braided
quartz stibnite veinlets
59
09SH19
(09SS132)
‘A’
Zone
173.8
174.7
0.9
0.50
32.50
0.330
34.2
0.85
0.6
Semi-massive
stibnite with granoblastic textures
60
09SH19
(09SS137)
West
Zone
215.5
216.5
1.0
0.52
7.95
0.033
1,635
0.27
10.7
Braised
quartz-antimony vein stockwork
61
09SH20
(09SS148)
‘A’
Zone
205.5
206.5
1.0
0.50
2.74
1.690
8.560
0.30
11.2
Quartz-carbonate-stibnite
vein with visible gold
62
09SH20
(09SS150)
‘A’
Zone footwall
223.0
224.0
1.0
0.50
11.48
0.044
NA
NA
NA
Massive
stibnite-quartz zones to 6 inches; with carbonate
63
09SH20
(09SS152)
Offset?
‘A’ Zone footwall
272.0
273.0
1.0
0.50
11.08
0.055
NA
NA
NA
Massive
stibnite-quartz zones to 6 inches; with carbonate
64
09SH20
(09SS155)
West
Zone
324.5
325.5
1.0
0.50
27.29
0.010
42
0.34
1.0
Massive
stibnite-quartz zones to 6 inches; with carbonate
65
09SH20
(09SS156)
West
Zone extension
335.0
338.0
3.0
1.74
9.75
0.135
1,675
039
8.1
Numerous
braided quartz-stibnite veinlets within 2.5 foot true thickness zone; interpreted  offset
66
Channel
Sample in Trench H; (07H03)
‘A’
Zone
33.0
49.2
16.2
16.2
8.74
5.56
NA
NA
NA
Wide
“A’ zone channel sampled—suspect analysis rejected

----- tm2628217d1_ex99-2.htm -----
EX-99.2
4
tm2628217d1_ex99-2.htm
EXHIBIT 99.2
Exhibit 99.2
United States Antimony Announces Completion
of New
Technical Report on Nolan Creek, Alaska Gold/Antimony
Deposit
Measured and Indicated Resource Value Exceeds
$314 Million
Inferred Resource Value Exceeds $125 Million
Mining Operations Commenced Earlier this
Month
“The Critical
Minerals and ZEO Company”
~ Antimony, Gold,
Tungsten, and Zeolite ~
DALLAS,
TX / ACCESS Newswire / October 21, 2026 /
United States Antimony Corporation (“USAC,” “US Antimony,”
or the “Company”), (NYSE: UAMY) (NYSE Texas: UAMY), a leading producer and processor of antimony, zeolite, and other critical
minerals, and the only fully integrated antimony company in the free world outside of China and Russia, announced today the completion
of a new Technical Report defining the gold-antimony resources on its 100% owned Nolan Creek Property located in northern Alaska. The
Technical Report, compliant with SEC S-K 1300 Regulations will be filed with the SEC under a Form 8-K today. This Technical Report
was authored by Mr. Thomas K. Bundtzen, President of Pacific Rim Geological Consulting, Inc recognized as a Qualified Person
in accordance with the S-K 1300 Regulations.
Nolan Creek (Antimony & Gold)
The company acquired the Nolan Creek BLM Claims
through a Trustee's Sale at the Courthouse steps in a public auction on January 30, 2026, after identifying the property and region
as having high potential for hosting antimony as well as gold deposits. The Nolan Creek deposit is located approximately 175 miles north
of Fairbanks, Alaska. The property was previously owned by a private company who conducted exploration and mining of both placer and lode
targets from both surface and from an underground operation more than twenty years ago. Management of US Antimony chose to further expand
the claim package by purchasing Alaskan State Claims (shown in green below) over the wider area to capture the region’s full potential.
The dark grey areas represent individual placer claim holders in the area. The region was predominately open since the last commercial
miner in the area abandoned the Nolan Creek region when gold prices were significantly depressed.
Resource Tables
Considering the economic potential of Nolan Creek,
USAC is using $4,000/oz gold price and $8.30/lb antimony price. Currently all planned operations are within the lode claims. The existing
exploration drift intersects the highest confidence material: measured and indicated. Phase 2 of the operation, after the bulk sample,
will continue to target this M&I material which has a current insitu value of $233.9M from contained antimony and $79.9M from contained
gold (before mining, transporting and processing costs and before recovery).
Resource Value
Sb - $8.30/lb
Au - $4000/oz
Classification
Measured & Indicated Lode ($k)
$
233,877.4
$
79,872.0
$
313,749
MM
Inferred Lode ($k)
$
78,161.1
$
47,010.0
$
125,171
MM
Grand Total
$
438,920
MM
*Before mining, transporting and processing costs
**Before process recovery
In 2006, the previous owner collared an exploration
adit and excavated 570 linear feet of 12 foot x12 foot exploration drifts and crosscuts. These headings intercepted three parallel veins
of high-grade antimony containing gold as a secondary metal
The adit, collared near the bottom of a hillside,
connects to the antimony/gold vein structures via horizontal headings sufficiently large to provide access for modern mobile underground
equipment. We anticipate that the exploration drifts and crosscuts can be extended to provide immediate access to multiple ore faces.
In the first half of 2027, we plan to demonstrate that the site has the capability to fully meet our Radersburg, Montana name plate mill
feed capacity using long hole open stope mining methods. Our contractor’s personnel have previous experience in utilizing mechanized
longhole mining methods for production from narrow vein deposits.
Earlier this year, the company hosted pre-bid
underground site inspection tours by two internationally recognized mining contractors in preparation for their submission of tenders
in mid-August, for underground development and mining of this high-grade material. One third party contractor was selected, and mining
operations began this month with an excavation of an exploration bulk sample of approximately 1,000 tons. Our third-party contractor has
mobilized equipment and personnel to the site and with the goal of having their crews operating two shifts daily by the end of October.
Additionally, USAC has engaged an experienced
underground mining geologist to work on site to map the geology and assist in minimizing dilution of this high-grade antimony/gold resource.
USAC has recently contracted a local Alaskan transportation
company to deliver the bulk sample to our floatation mill facility located in Radersburg, Montana. The intention is to verify the overall
economics and practicality of producing antimony trisulphide meeting military specifications and to satisfy other existing antimony market
demands in 2027.
Commenting on this
announcement today, Mr. Gary C. Evans, Chairman and CEO of USAC, stated, “T
his is another example of USAC’s “fast
track” approach to mining methods. Having only acquired this property earlier this year, and operating in a weather environment
that is difficult at best, we will be moving approximately 1,000 tons of lode ore (antimony and gold) from the underground mine for processing
to our in-house flotation mill located in Radersburg, Montana, in preparation for sales during the months of November and December this
year. This shipment will represent our first antimony delivered from our exploration efforts in Alaska to Montana for processing.”
Commenting further on the Nolan Creek activities,
Mr. Joseph Bardswich, P.E., Executive Vice President and Chief Mining Engineer, stated “We were very fortunate to have acquired
this quality of a property earlier this year at such a nominal price. We were successful at solving prior existing environmental issues,
acquiring additional leases around the prospect, making repairs on a 7 mile road owned by the state in an effort to make it usable, acquiring
and moving to the site a “man camp, contracting an experienced mining contracting firm who are already underground performing mining
operations today, negotiating the transport of material to Montana during the middle of winter, with all of this done in less than 12
months! These actions are representative of the quality and perseverance of the personnel that US Antimony has attracted within our organization.”
About USAC:
United States Antimony Corporation and its subsidiaries
in the U.S., Mexico, and Canada ("USAC," “U.S. Antimony,” the "Company," "Our," "Us,"
or "We") sell antimony, zeolite, and precious metals primarily in the U.S., Mexico, and Canada. The Company mines, purchases,
and processes ore primarily into antimony oxide, antimony metal, antimony trisulfide, and precious metals at its facilities located in
Montana and Mexico. Antimony oxide is used to form a flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings,
and paper, as a color fastener in paint, and as a phosphorescent agent in fluorescent light bulbs. Antimony metal is used in bearings,
storage batteries, and ordnance. Antimony trisulfide is used as a primer in ammunition. The Company also recovers precious metals, primarily
gold and silver, at its Montana facility from third party ore. At its Bear River Zeolite (“BRZ”) facility located in Idaho,
the Company mines and processes zeolite, a group of industrial minerals used in water filtration, sewage treatment, nuclear waste and
other environmental cleanup, odor control, gas separation, animal nutrition, soil amendment and fertilizer, and other miscellaneous applications.
Beginning in 2024 and continuing in 2025, the Company acquired mining claims, real properties (patented claims) and leases located in
Alaska, Montana, and Ontario, Canada in an effort to reduce the cost of third-party antimony ore purchases and to expand its product offerings.
Learn more about
United States Antimony Corporation at
www.usantimony.com
.
Forward-Looking Statements:
This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the Company’s
future operations, production levels, financial performance, business strategy, market conditions, demand for antimony, zeolite, other
critical minerals, and precious metals, expected costs, and other statements that are not historical facts. These statements are based
on current expectations, estimates, forecasts, and projections about the industries in which the Company operates, as well as management’s
beliefs and assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,”
“seeks,” “estimates,” “may,” “will,” “should,” “could,” and variations
of these words or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ materially from those indicated in such statements, including, but not
limited to: fluctuations in the market prices and demand for antimony and zeolite; changes in domestic and global economic conditions;
operational risks inherent in mining and mineral processing; geological or metallurgical conditions; availability and cost of energy,
equipment, transportation, and labor; the Company’s ability to maintain or obtain permits, licenses, and regulatory approvals; changes
in environmental and mining laws or regulations; competitive factors; the impact of geopolitical developments; and the effects of weather,
natural disasters, or health pandemics on operations and supply chains. Additional information regarding risk factors that could cause
actual results to differ materially is included in the Company’s filings with the U.S. Securities and Exchange Commission, including
its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required
by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Investor Relations Contact:
Media Relations Contact:
Jonathan Miller, VP, Investor Relations
Anthony D. Andora
4438 W. Lovers Lane, Unit 100
Edge Consulting, Inc.
Dallas, Texas 75209
1560 Market Street, Ste. 701
E-Mail:
Jmiller@usantimony.com
Denver, Colorado 80202
Phone: 406-606-4117
E-Mail:
Anthony@EdgeConsultingSolutions.com
Phone: 720-317-8927