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Bravada Projects

South Lone Mountain

The South Lone Mountain property is located about 32km northwest of the town of Eureka in central Nevada. Bravada owns 100% interest in 20 unpatented mining claims, located on U.S. federal land managed by the Battle Mountain BLM office, subject to a 1% NSR royalty to the original vendor. One half of this (0.5%) can be purchased for US$3,000,000. Many of the initial claims were staked by Placer Dome as part of a property agreement with the Company. Placer contributed money to drill nine reverse-circulation and mud-rotary holes on the property. Placer was purchased by Barrick and the agreement was terminated.

In October 2014, Bravada entered into a lease with option to purchase agreement with Goldspike Exploration Inc. (now Nevada Zinc Corp.) to acquire a 100% interest in the property for lease payments of $325,000 over ten years. In addition, Bravada will receive 50,000 Goldspike common shares upon receipt of TSX Venture Exchange approval (complete) and another 100,000 Goldspike common shares in the event a National Instrument 43-101 combined resource estimate for the company's Lone Mountain zinc property and the property indicates that at least 10 per cent of the reported tonnage is attributable to the property. All lease payments can be applied to the final purchase price of $325,000 (U.S.), after which advance minimum royalty payments become due annually in the amount of the cash equivalent of 50 ounces of gold.

Bravada and a previous owner of the property have royalties on production from the property. Bravada holds a 1.5-per-cent net smelter returns royalty on base metals production and a 3-per-cent net smelter returns royalty on precious metals production. Bravada's base metal NSR can be reduced to 1 per cent and its precious metals NSR can be reduced to 1.5 per cent concurrently, not individually, by Goldspike for a total cash payment to Bravada of $3-million (U.S.). As indicated in the first paragraph, the previous owner of the property holds a 1-per-cent NSR on both base and precious metal production from the property. Goldspike can concurrently, not individually, buy down the royalty on both base and precious metals to 0.5 per cent for total cash consideration of $3-million (U.S.).

Most of the property is covered by gravel, but hints to the bedrock geology are present on the east flank of the project and the adjacent area of Lone Mountain. Several relatively deep holes in the basin also have defined the geology. The South Lone Mountain project is on the northwest-trending Battle Mountain-Eureka gold trend. The basin to the west of Lone Mountain has been downthrown at least 300m from the bedrock exposures on Lone Mountain. Seismic evidence and drilling suggests a series of Northeast-trending normal faults the cut the basin. Several northwest trending faults are also indicated by the seismic work. Most of the drill holes in the basin have encountered at least 300m of gravel cover.

Bravo (as operator) and Placer Dome (funding work to earn in) reported in February 2005 anomalous gold in samples collected from an oil well at the property. The chips contained up to 2.36g/t Au in basal gravel that included jasperoid fragments and jarosite-stained, decalcified siltstone and fine sandstone. One chip of material remaining in the un-assayed split was later observed to contain a vug lined with quartz crystals and euhedral barite. The basal gravel sits directly upon Roberts Mountains Formation, which has been dolomitized at this location and contains minor quartz veinlets. Gold up to +300ppb was obtained from bedrock samples immediately beneath the bedrock interface with younger gravel or volcanic cover. Anomalous samples from the bedrock may have been contaminated with gravel caved from above and it is uncertain if the gold is related to bedrock mineralization or gravel contamination.

Based on this evidence for a gold system in an important host rock along the Battle Mountain Gold trend, Placer staked a large claim block, which became part of the property agreement with Bravo. Bravo/Placer acquired additional geology and geochemistry from other historic oil wells in Kobeh Valley, conducted geologic mapping and sampling at Lone Mountain, collected detailed gravity geophysics over the entire property and some surrounding areas, purchased and reprocessed 48-line­kilometers of seismic geophysics, collected soil and gas geochemistry, and drilled nine reverse-circulation and mud-rotary holes for a total of 3,514m in 2005 and early 2006. Two areas were tested by drilling. Bravo drilled three additional mud-rotary holes (1,247m) during late 2006/early 2007. Drilling was unsuccessful in determining the source of the gold at the bedrock contact.

The Property is adjacent to a historic lead-zinc producer, the Lone Mountain Zinc mine, which reportedly produced almost 5 million pounds of zinc and 650,000 pounds of lead through 1964. Thick zones of high-grade zinc and lead were intersected on an adjacent property and soil sampling suggests that mineralization may extend onto the Company’s claims. Alteration and geochemistry imply that the mineralization at the Lone Mountain Zinc mine is related to a Mississippi-Valley-type replacement deposit.