North Peak Resources Ltd. [TSXV-NPR] launched its drilling campaign this week at its Prospect Mountain property in Eureka, Nevada, following completion of planned geophysical surveys and geochemical sampling programs, and the receipt of necessary approvals.
These surveys and sampling programs were undertaken over the summer months to define both surface and underground drilling targets across the potential CRD (carbonate replacement deposit) (gold, silver, lead and zinc) and Carlin (gold and silver)-style mineralization Prospect Mountain might host beneath its extensive system of shafts and mine workings.
This first phase of drilling will consist of approximately 6,600 feet (2,012 metres) starting from the Diamond mine portal and targeting multiple intersections of the roughly 2-km-long conductive anomaly, located directly beneath the old oxide gold, silver, lead and zinc historical stopes of the Diamond mine, that was located by the helicopter magnetotelluric (MT) survey carried out in June. A comprehensive gravity survey and drone based magnetic survey followed in July and August and the results of these two surveys were used to help develop the exploration model and drill targets. A limited Induced Polarization (IP) survey carried out in September yielded a very strong chargeability IP anomaly that overlaps and extends upwards from the MT anomaly into the old workings area gives strong support to the MT anomaly.
“The team have developed a drilling plan that will target the heart of both the IP anomaly and the MT anomaly, and it can be carried out from a practical location near the mine’s infrastructure,” said Brian Hinchcliffe, CEO. “Our property sits in the center of the largely north south mineralized Eureka Camp and the drilling will be aimed due west beneath the old mining workings and towards the massive MT target sitting just beneath the camp’s water table.”
The 220-line km survey was conducted by Expert Geophysics Limited and flown at 100-metre line spacing using their Mobile MT system.
The property lies in the Battle Mountain Eureka trend, in an area known as the Southern Eureka Gold Belt, where three styles of mineralization have been identified, gold, silver Carlin style mineralization, Carbonate Replacement gold, silver, lead, zinc mineralization (CRD) and carbonate hosted Porphyry Related Skarn lead, zinc and gold mineralization associated with cretaceous intrusions. At the Property, the CRD mineralization is heavily oxidized to depths of at least 610 metres (2000ft) below the top of the ridge line.
A Plan of Operations is in place which covers part of the Property (totalling 81 acres) and entitles an operator to pursue surface exploration, underground mining of up to 365,000 tons per annum and certain infrastructural works. It includes a permit to extract water from a well and to build water containment facilities.
The company recently acquired an initial 80% interest in the Prospect Mountain Mine complex in Eureka, Nevada.