Building America s Next Big Gold Producer

Transcription

1 Building the Next American Gold Producer Building America s Next Big Gold Producer March 2005

2 Business Strategy Bullion River Gold Corp. Focus on the western United States, Nevada and California Concentrate on building a strong project portfolio with high grade and size potential Producer of gold beginning in 2005 Maximize investment in the ground 2

3 Project Portfolio French Gulch and North Fork (California) Previous gold producers Fully permitted for production Strong local agency support High-grade mesothermal quartz veins Antone Canyon, Corcoran Canyon and Cimarron Advanced projects Painted Hills and Wenban Spring Grassroots projects 3

4 Bullion River Gold Corp. Project Locations - California & Nevada USA CaliforniaNevada French Gulch Painted Hills North Fork BLRV HQ Wenban Spring Corcoran Canyon Antone Canyon Cimarron Mother Lode Belt Carlin Trend Battle Mountain Trend 150 Miles Largest Gold Deposits Bullion River Gold Corp. Projects 4

5 French Gulch Mine Action Plan Complete Phase I Exploration May 15, 2005 Bullion River Gold Corp. Production Decision May 31, 2005 Mill Completed August 15, 2005 Production Begins September 1,

6 North Fork Mine Action Plan Exploration Phase I August 30, 2005 Bullion River Gold Corp. Exploration Phase I Feb 28, 2006 Production Decision March 31, 2006 Production Begins September 15,

7 Production Projection Bullion River Gold Corp Production (000's oz) French Gulch North Fork Total $375/oz ($M) Average Cost/oz Total Expenses ($M) Operating Profits $5.25 $28.13 $58.75 $74.40 $90.65 $ NOTE: Average cost/oz in other high-grade vein mines: Red Lake: $118 Midas: $155 7

8 Bullion River Gold Corp. Corporate Management Team Experienced management team with proven track record in p r o s p ec t i n g, ex p l o r a t i o n a n d o p e r a t i o n s. Peter M. Kuhn (ME) President Glenn Blachford (BASc, P.Eng.) VP Engineering Jacob Margolis (MSc PhD) Leann Pinguelo VP Exploration Investor & Public Relations Dan Graves VP Finance/CFO 8

9 Strategic Differentiation Experienced management team for quick and effective execution of financings, exploration and mine developments Proven track record as successful mine operators Dedication to maximizing money in the ground 62+% of expenses in 2004 on Exploration An American gold producer with mines in the U.S. 9

10 Bullion River Gold Corp. Listing Information and Share Structure United States: OTCBB BLRV Germany: Frankfurt Exchange (WKN: A0B931) BVM Issued Shares 28,000,000 Fully Diluted 29,500,000 Management and Insiders (approximate) 10,000,000 Family and Friends (approximate) 9,500,000 Public Float (approximate) 10,000, Week Share Price Range ($ US) $ $1.35 Price March, 2005 ($ US) ±$1.00 Market Capitalization ($ US)* ±$28 Million Applying for Listing on the TSE Main Board *Market Capitalization Subject to Fluctuation 10

11 Building the Next American Gold Producer E x p l o r a t i o n P r o g r a m U p d a t e March 2005

12 Project Locations Bullion River Gold Corp. CaliforniaNevada French Gulch Painted Hills North Fork Mother Lode Belt Reno offices Wenban Spring Corcoran Antone Canyon Canyon Cimarron Carlin Trend Battle Mountain Trend 150 Miles Largest Gold Deposits Bullion River Gold Corp. Project 12

13 French Gulch 13

14 Past Producer / Advanced Project: French Gulch Mine High-grade gold in mesothermal quartz veins Fully-permitted for production Recent producer ( ) No systematic modern exploration Upgradable mill Strong local agency support Inferred Resource: 125, opt Au Lease with staged $1.5M buyout 14

15 Past Producer / Advanced Project: French Gulch Mine Washington vein discovered in 1852 District was largest and highest-grade producer in Klamaths at ~1 Moz Production through early 1950 s; Working levels covering 450 vertical feet at Washington Mine ~185,000 historic ounces from property : Washington-Niagara Mining Partnership 29 shallow/vertical surface drill holes for 5,100 ft Lucky7 vein discovered in 1990 Estimated production: 8, opt ~9,944 ounces Estimated production: 8,695 ~1 opt ~8,700 ounces New decline on 2630 level; intersected Lucky7 vein Production: 220 ~ 1opt ~220 ounces Bullion River Gold Corp. 15

16 French Gulch Mine Dikes Niagara Mine ~50,000oz historic Washington Mine ~100,000oz historic Priority Exploration Veins Surface Drilling Near-term Reserve Development N 2000 ft Approximate Bullion River Gold Property Position 16

17 French Gulch Mine data for upper stopes only 17

18 French Gulch Mine: Example of Exceptional Gold Grades Channel Samples Across Vein (Average: 2.79 opt Au over 4.6 feet) For clarity, not all of the 149 samples are shown 18

19 French Gulch Mine: Lucky-7 Vein Quartz Vein Stockwork Quartz Porphyry Dike Diorite Dike + 300ft mined/explored Bragdon Shale Copley Greenstone 10 ft 19

20 French Gulch Mine Lucky-7 Vein Upper Stopes 2.75 opt Au over 36 inches (.9m) 20

21 French Gulch Mine Current Activities Detailed underground drilling (+30,000ft) across major veins Near-term reserve Broad surface drilling Step-out resources Metallurgical Testing Mill Expansion Engineering Environmental Studies and Engineering 21

22 French Gulch Mine: 2005 Drill Plan (Looking West) Potential New Underground Access 2630 Lucky 7 Vein stopes Looking West Washington Vein stopes 2350 Mill Near-term Reserves 200 ft Underground drill holes testing down-dip extensions and potential in other parallel veins (not shown) 22

23 French Gulch Mine: 2005 Drill Plan E E E 75-ft grid Washington Vein N N RBU-1 to RBU-7 Vein Intersections Lucky-7 Vein 50-ft grid Bullion River Gold Corp. French Gulch Project February 17, N E E UG Core Drilling E Plan 1" = 100' N 23

24 French Gulch Mine: Underground Drilling Washington Vein Long Section Stopes H Level opt Au I Level Recent sampling to 3.80 opt Au; End of access 100ft grid 24 Looking N-NW

25 French Gulch Mine: Underground Drilling Lucky-7 Vein Long Section 8, opt Au mined in mid 1990 s Robillard Level 100ft grid Looking N-NW 25

26 French Gulch Mine: Early Assay Results Mineralized Intervals INCLUDING HOLE FROM TO LENGTH OPT Au OPT CUT FROM TO LENGTH OPT Au OPT CUT RBU highest RBU highest RBU * highest * Interval ends in high-grade and requires further sampling RBU highest RBU

27 French Gulch Mine: Lucky-7 stockwork in diorite dike opt / 13 ft (0.01 cut) 27

28 French Gulch Mine: 2005 UG core drilling opt / 34.5 ft / 5.5 to / 2.3 to.008 /

29 French Gulch Mine: Positive Preliminary Results High grades across mineable widths Lucky-7 vein stockwork within diorite dikes; not single narrow vein Visible gold with galena, sphalerite, pyrite and arsenopyrite Confirms mineralization continuity to at least 200 feet below mined levels 29

30 French Gulch Mine: Plans Continue drilling program: Washington vein Metallic screens Resource calculations Decline and additional drill stations Surface step-out core program 30

31 North Fork North Fork Project Mother Lode Belt Grass Valley & Alleghany Districts 31

32 Past Producer: North Fork Mine High-grade mesothermal quartz veins No modern exploration UG exploration permit obtained Inferred Resource: 70,000 oz 0.7 oz/ton in UG mine Current Activity: Decline rehabilitation Plans: UG core drilling Lease with staged $2M buyout subject to 1.5% NSR 32

33 Past Producer: North Fork Mine North Fork Mine Approx. BRGC Property Alleghany Gold Belt Post-mineral Tertiary Cover Veins (projected through cover) Serpentinite Major Faults Alleghany Mugwump Mine Oriental Mine 16:1 Mine 1 Mile 33

34 North Fork Mine >0.50 opt Au Looking North 100-ft grid 34 Plan Historic assays

35 North Fork Mine 20 ft opt Au Historic Sampling 35

36 Grassroots Project: Painted Hills 100% BLRV Northwestern Nevada Undrilled project in epithermal system Similarities to the Sleeper Mine (2 Moz) 86 km to SE Status: Mapping and sampling completed; drilling permit obtained Targets: High-grade epithermal veins under high-level mercury mineralization with anomalous gold Plan: drilling in

37 Grassroots Project: Painted Hills Painted Hills Black Rock Structural Boundary Hog Ranch Sleeper 50 miles Hycroft Rosebud Florida Can. Goldbanks 37

38 Grassroots Project: Painted Hills Hg-bearing opal veins across 325 feet Altered volcanic rocks Increasing gold, arsenic and antimony and higher-t quartz (chalcedony) 30m below opal veins consistent with geologic model Exposed Hg-mineralized opaline vein system 100m Miocene volcanic rocks Post-mineralization alluvium Exploration targets in deeper boiling level ~100m Possible concealed mineralized veins 38

39 Grassroots Project: Wenban Spring 100% BLRV 8km SW of Cortez Hills gold deposit (+9 Moz; Placer Dome and Kennecott CJV) along Battle Mountain Eureka trend Drilling in

40 Grassroots Project: Wenban Spring Pup Ji Pipeline Moz Moz Cortez Plp Cortez Hills 79 Moz Tv Faults CJV Control Tv Buckhorn Horse 5 Miles Horse Canyon Toiyabe Pup Wenban Spring Pup Tonkin Springs 40

41 Grassroots Project: Wenban Spring Tertiary Volcanics Post-mineralization Shallow cover confirmed Faults Paleozoic Upper-Plate Resistive 800m Conductive Mapped and Inferred Faults 1km 41

42 Projects in the Round Mountain Region Gold Hill Kinross-Barrick (reserve not publsihed; includes.063 opt Au / 225 ft) Northumberland 4.7 Moz Au Western States Minerals Round Mountain 15 Moz Au Kinross-Barrick Hwy Antone Canyon Manhattan Royal Standard Minerals 1 Moz Corcoran Canyon Cimarron Midway Midway Gold high-grade Au-Ag deposit under exploration Resource of at least 270,000oz km

43 Advanced Project: Corcoran Canyon Leased claims and additional claims controlled 100% BLRV Volcanic-hosted bulk-tonnage Ag-Au system with similarities to nearby Round Mountain 3-D model completed and drill targets established; exploration permits in place Resource: 9 million oz 5.1 oz/ton Ag and opt Au in open pit Drill program in

44 Advanced Project: Corcoran Canyon, Principal Mineralized Areas DH 0.62 g/t Au over 24m DH 0.75 g/t Au over 11m 0.96 g/t Au in outcrop no drilling Intrusions Pediment Target Area Resource Expansion Potential Silver Reef Resource Mineralization Trend DH 0.89 g/t Au over 15m 2.26 g/t high 2.3 g/t Au in outcrop Main Alteration System DH 0.75 g/t Au over 5m 1.68 g/t Au in outcrop Range-front fault zone Anomalous gold in rocks (most >.2 g/t) Mineralized drill holes (Au, Ag) 1 km 44

45 Advanced Project: Corcoran Canyon Main resource area (9 Moz Ag with low-grade Au) 45

46 Advanced Project: Corcoran Canyon, Resource Cross Section Low-grade halo 46

47 Advanced Project: Antone Canyon 60 leased claims High-grade (+.50 opt) carbonate-hosted gold-bearing stockwork zones 3-D model completed and drill targets established; exploration permit in place Drill program completed in 2004 High-grade zone extended 350 ft to SW; at least 1300 ft strike length 47

48 Advanced Project: Antone Canyon 2004 drilling: 14m of 7.5 g/t Au (0.22opt/45ft) with 14.5 g/t Au (0.42opt/20ft) 48

49 Advanced Project: Antone Canyon 2004 Drilling Results Hole Length (ft) Azimuth Inclination Mineralized Intervals From To Length (ft) opt Au gpt Au Cut (opt Au) BA o 60 o BA o 50 o BA o 50 o including: including highest value:

50 Disclaimer Except for historic data this document contains forward looking statements and projections. These may or may not materialize as there are factors beyond the control of the Company which may influence future results. For example, commodity prices, market conditions, political conditions and other risks typical for the mining business may one way or the other influence the factual outcome of projections. 50