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Projects

Wilco

Location: 162 km (100 miles) NE of Reno, Nevada with freeway access
Area: Approx 36 sq km (14 sq miles)
Minerals: Gold, Silver
Ownership: 100%
Status: Advanced exploration with NI 43-101 resource

43-101 Technical Report

Over 1 Million Ounces and Room to Grow

Overview
With a long history of production and 1.28M ounces of gold Measured and Indicated, the Wilco Project represents a key asset in the Rye Patch portfolio. The property’s bulk-tonnage resources are near surface and open for expansion.  Exploration is currently focused on two areas of resources: Colado and Section Line. Both represent epithermal, low‐sulfidation type deposits. A resource update in June 2012 increased resources by 86% over the previous estimate from May 2009.

Colado Resource Area: Gold mineralization at Colado, which begins at surface and dips to the west, is in a flat‐lying zone measuring 1,600 X 2,000 feet by up to 450 feet thick. Gold mineralization within the zone is very consistent, measuring on average between 0.01 and 0.02 opt gold. Distinct higher‐grade zones have been identified and may represent high‐grade, structurally controlled feeders for the mineralization.

Section Line Resource Area: Gold mineralization at Section Line is controlled by both strata and structure. The near surface deposit covers an area of approximately 3,000 by 3,000 feet. Within this resource are several structural zones containing higher-grade gold mineralization.

Recent Work
The June 27, 2012 resource update reported the following resources in an open pit configuration:

      Table 1: Wilco Whittle Pit Measured and Indicated Resources at June 2012
Wilco   Cutoff Measured Indicated
Resource Redox Grade Tonnes Grade Ounces Grade Ounces Tons Grade Ounces Grade Ounces
Areas Domain Au g/t (X1,000) Au g/t  Au Ag g/t  Ag (X1,000) Au g/t  Au Ag g/t  Ag
Section Line Oxide 0.10  11,139  0.39  140  3.89  1,393  21,479  0.28  193  2.76  1,906
Sulphide 0.20  5,042  0.50  81  4.38  710  18,166  0.47  274  4.31  2,517
Colado Oxide 0.10  5,805  0.31  58 1.610  300  34,084  0.26  285  1.600  1,753
Sulphide 0.20  3,129  0.49  49 6.680  672  15,299  0.40  197  5.560  2,735
Total  25,115 0.41  328 3.81  3,076  89,028 0.33  950 3.11  8,911
  Table 2: Wilco Inferred Whittle Pit Resources at June 2012
Wilco Cutoff Inferred
Resource Grade Tonnes Grade Ounces Grade Ounces
Areas Opt Au  (X1,000) Au g/t  Au Ag g/t  Ag
Section Line Variable  17,189  0.47  258  5.28  2,917
Colado Variable  35,410  0.25  284  2.80  3,184
Total    52,599 0.32  541 3.61  6,100

1 All resources on 100% basis.  Metallurgical recoveries and net smelter returns are assumed to be 100%. Conforms to 43-101 resource definitions;
2 The Whittle pit resource was calculated using US$1,200 per ounce Au and US$20 per ounce Ag.  The calculation used key assumptions for mining, processing and Au and Ag recoveries.  A cost of US$1.20 per tonne was used for mining while the processing costs were broken down for oxide and mill material - heap leaching = US$1.30 per tonne;  Mill ore = US$7.25 per tonne.   A pit slope of 50 degrees was achieved, and an overall strip ratio (tonne of waste to  tonne of ore)  is 2.3:1 for Section Line, 0.6:1 for Colado, and 3.6:1 for Lincoln Hill.  Au and Ag recoveries for the different process technologies were broken down for oxide leach, oxide mill and sulphide mill.  Recoveries were based on metallurgical results released on July 27, 2011 for Wilco, process recoveries reported from nearby mining operations, and industry information.  Heap leach recoveries for oxide material are 75% for Au and 50% for Ag; oxide mill recoveries are 90% for Au and 70% for Ag; and sulphide mill recoveries are 90% for Au and 85% for Ag.  However, additional metallurgical testing is required.
3 Au equivalent ounces (Aueq.); where Aueq. = (Au g/t) + (Ag g/t / 50); and Ageq. = (Ag g/t) +(Au g/t * 50).

A 5,067-meter, 14-hole core drill program was completed at Wilco in 2011. This work investigated the high-grade gold and silver structural zone identified in the North Basin area and added significant value to the Company’s geologic understanding of the geometry and gold controls.  The program confirmed the presence of high-grade gold and silver along an east-west oriented structural zone.  This zone has a strike length of 800 metres and is between 5 and 15 metres wide (see June 2, 2011 news release).

What's Next?
Exploration work in 2013 will focus on the area between the Colado and Section line NI 43-101 resources where potential exists to connect the two deposits.

 

Maps & Diagrams:

3D Wilco Open Pit


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  Wilco 3D Au Resource


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Land Status
 
Geology

Surface Samples, Gold
 
Surface Samples, Silver

Geophysics
 
Drillhole Locations

Grade sections and Measured, indicated & inferred sections for Wilco on the Section and Colado resources:


Colado Resource Grade Sections with Pit
 
Colado Resource MII Sections with Pit

Section Line Resource Grade Sections with Pit
 
Section Line Resource MII Sections with Pit

Wilco Drill Hole Location
 
Wilco Location

Wilco Willard Section 569000E
 
Wilco Willard Section 569800E