BATTLE MOUNTAIN EUREKA GOLD TREND

Transcription

1 February 2010

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3 BATTLE MOUNTAIN EUREKA GOLD TREND Bravo Venture Group Inc., through its wholly owned US subsidiary Bravo Alaska, Inc., controls twelve exploration properties, 946 claims (approximately 7,700 hectares or 30 square miles), in the Battle Mountain Eureka Gold trend of Nevada, including several that are drill ready with permits in place. Bravo believes these properties have characteristics of very large Carlin type gold deposits. Underlying payments are reasonable and royalties are, or can be reduced to, 1% NSR or lower. Very large Carlin type gold deposits occur in Lower Plate Paleozoic sedimentary rocks along two major trends in Nevada; the Carlin trend and the Battle Mountain Eureka trend. Deep crustal features are believed to be responsible for these trends. Compare the prominent northwest trending gravity break shown on the attached figure of the Battle Mountain Eureka trend below and to the left with the map below and to the right that shows known deposits and Bravo s projects for the same area. Along the trends, deposits further cluster as districts and sub districts. A striking characteristic of the largest Carlin type gold deposits is their ever present association with smaller gold deposits that have similar alteration and geochemistry signatures. For example, relatively small gold deposits were discovered at and around the Cortez mine decades before discovery of the much larger Pipeline and Cortez Hills deposits. Goldstrike and Turquoise Ridge are other very large deposits that were discovered long after nearby small satellite deposits were placed into production. 1

4 PETE HANSON SUMMARY The Pete Hanson property is situated approximately 56km northwest of the town of Eureka, Nevada and is in the heart of the Battle Mountain Eureka Gold trend. It is situated about 13km northwest of the Gold Bar Satellite Deposits and 6km east of the Tonkin Springs Deposits. Cortez, Pipeline and the Cortez Hills/Pediment Properties, all multi million ounce gold discoveries, are centered approximately 40km northwest of Pete Hanson Creek. Bravo owns 191 unpatented mining claims subject only to a 1% NSR, half of which (0.5%) can be bought for US$3 million. The Pete Hanson claims cover the southeast margin and central part of a north trending, pedimentcovered basin and a portion of the uplifted Roberts Mountains. The property is referred to as two subprojects; Pete Hanson East and Pete Hanson West. A geologic legend is included at the end of the report. Pete Hanson East At Pete Hanson East, silicification and widespread anomalous gold and pathfinder geochemistry establish the presence of a strong Carlin Gold system that has affected Lower Plate carbonate rocks. Exposed Lone Mountain Dolomite, a massive, unreactive carbonate that is not a favorable host rock, is strongly altered and geochemically anomalous along certain faults. A highly favorable host rock, the Roberts Mountain Formation, is projected to underlie portions of the area at moderate depths. Permitting for Pete Hanson East is in progress. Two prominent faults are being permitted for drill testing because of their strong, consistent gold anomalies, several of which are more than 1g/t 2

5 (high value 3.39g/t Au), and associated alteration consisting of strong hematite staining and silicification. A north trending structure, approximately coincident with a range front fault, will be tested to the north and a north northeast structure will be tested to the south. Both of these targets are also cut by northeast trending faults, which appear to have affected alteration and mineralization. Strongly anomalous gold mineralization has been detected in surface exposures and in shallow drill holes. The feeder structures that fed this mineralization are projected to cut the Roberts Mountain Formation at relatively shallow to moderate depths (<500m). Large, high grade gold deposits may have been deposited where these feeders cut the Roberts Mountain Formation. Pete Hanson West The target on Pete Hanson West is a geophysical magnetic bulls eye high beneath post mineral gravel and volcanic cover along the western property boundary that may be caused by a mineralized intrusion. The target is a gold deposit in Lower Plate host rocks, which could include the Roberts Mountain Formation. While the target is blind, the magnetic anomaly and the proximity of the target to significant known resources of gold on the Tonkin Springs Property make this an attractive target. Pete Hanson West is fully permitted and bonded and ready to drill at 9 sites. SIGNAL SUMMARY The Signal Project is located in the northwestern portion of the Eureka Mining District in Eureka County, Nevada. Bravo can acquire a 100% interest in 139 unpatented lode mining claims that comprise this project, subject to a 2% NSR royalty retained by the underlying owners, which can be reduced to 1% NSR by payment of US $1million. Historic drilling on the property, prior to Bravo s acquisition, had identified several near surface intercepts of strongly anomalous gold. Bravo pursued these historic intercepts with detailed mapping and drill testing to explore the potential of a near surface gold deposit. A small, but uneconomic, gold resource was estimated inhouse (non compliant) following the Bravo drilling program. However, the location and attitude of the feeder structures for this mineralization 3

6 were identified and recent mapping and re examination of regional historic drill data allow for the projection of highly favorable host rocks at reasonable drill depths beneath the resource. Bravo drilling penetrated a thick section of thin bedded limestone in the Sadler Ranch Formation elsewhere on the property; this unit has the characteristics of a favorable host rock for gold mineralization. The McColley Canyon Formation, a known gold host rock elsewhere in Nevada, may also be reached by drilling in the vicinity of the feeder structures. A total of 26 drill sites are permitted and bonded at Signal. TEMPLE SUMMARY The Temple Project is located in the western portion of the Eureka Mining District in Eureka County, Nevada. Bravo can acquire 100% interest in 54 unpatented lode mining claims that comprise this project, subject to a 2% NSR royalty retained by the underlying owner, which can be reduced to 1% by payment of US$1,000,000. Gold mineralization on the Temple Project occurs in Paleozoic sedimentary rocks, and the characteristics of the mineralization are similar to that of numerous Carlintype gold deposits. At least five companies have conducted significant exploration programs on the Temple Project prior to Bravo s acquisition of the property; drilling was conducted by all five of these companies. These programs were primarily directed toward discovery of a shallow gold deposit in clastic rocks that could be amenable to open pit mining. Several thin to moderate intercepts of more than 0.3g/t Au were encountered in multiple drill holes, but strong potential for a large, near surface resource was not demonstrated. These gold 4

7 intercepts appear to be related to high angle feeder faults that deposited gold at a contact where the fluids were dammed by shale beds above a massive limestone. Bravo has acquired data from historic drilling programs as well as generated new data from surface mapping and sampling programs. These data sets have been integrated into a three dimensional computer model, and new interpretations of the mineralizing controls identified two new targets. Feeder structures that deposited gold in the clastic rocks cut highly favorable host rocks at depths that have not been drilled at Temple. Any upward migrating, gold bearing fluids that passed through these structures would have first encountered these deeper, more reactive host rocks, which may have concentrated most of the available gold into much larger and higher grade mineralized bodies than those found to date. The targets envisioned at Temple are at depths of more than 365m in the Saddler Ranch and McColley Canyon Formations, where approximately 180m of highly favorable host rock are projected to underlie a thick cap of massive dolomite. Drill holes would be situated to test the favorable formations in proximity to feeder structures known to carry anomalous gold and other elements typical of a Carlintype gold system. Six drill sites have been permitted to test these targets. GABEL SUMMARY Bravo s Gabel property lies along the northern portion of the Roberts Mountains in Eureka County, Nevada. Bravo owns 63 unpatented mining claims, which are subject only to a 1% NSR royalty, half of which (0.5%) can be purchased for US$3 million. The general vicinity of Gabel hosts significant amounts of gold in past production and resources, most of which are at the Tonkin Springs Property, approximately 12km to the west and the Gold Bar Satellite Deposits, about 25km to the southwest. Exploration by US Gold is ongoing on both of these properties. Carlin type alteration and geochemical signatures are 5

8 widespread on the property, but are particularly well developed along a major east trending fault that cuts through the entire property. Geologic mapping of the area, and previous drilling out of the target, indicates that the prospective McColley Canyon and Denay Formations should be encountered. The Roberts Mountain Formation is exposed within 1.5km to the west of Gabel and is projected to underlie the property within 300m of the surface at one of the target areas. These formations are important host rocks at various gold mines in Nevada. Drilling will target these favorable formations in proximity to the east trending fault. The property is permitted and bonded for four drill sites. SF SUMMARY The SF Property is located in Eureka County on the Battle Mountain Gold Trend. The Bullion and Cortez Mining Districts are within 40km of the property and have produced an estimated 10 million ounces of gold and contain another 20 million ounces of proven and probable reserves. The nearby Buckhorn Mine produced 109,422 ounces of gold and 409,887 ounces of silver and has proven and probable reserves of 130,000 ounces of gold. The property consists of 102 unpatented mining claims, 66 of which are leased and 36 which were located by Bravo. Bravo can acquire a 100% interest in the leased claims by completing a series of annual payments totaling US$280,000. Should production occur from the property, a 1% NSR would be paid to the owner, onehalf of which (0.5%) could be bought for US$3,000,000. Weak gold mineralization exposed at the surface on the SF Property occurs in Paleozoic sedimentary rocks, and the characteristics of the mineralization are similar to the distal portions of numerous Carlin type gold deposits. Three samples collected from silicified siltstone and chert float/subcrop on the east side of the SF group 6

9 contain from 0.06g/t to 0.1g/t Au. Another sample of limestone float from the center of the property contains 0.057g/t Au. Drilling on the HC claims by J Pacific Gold Inc., within 200m of the eastern border of the SF Property, intersected narrow zones of +0.3 g/t Au associated with highly altered Tertiary(?) dikes in a downdropped block of younger Paleozoic sediments than are exposed on the SF property. The mineralization in this drill hole may be distal leakage from the target that is recommended for testing on the SF Property. The alteration and mineralization at the surface and in the drill hole are believed to be controlled by a northwest trending, horst bounding fault that is covered by gravel. The rocks exposed at the surface of the property are the Horse Canyon and Wenban Formations, important host rocks in the Cortez Mining District. The most favorable portions of these formations lie at depth beneath the areas of anomalous geochemistry and alteration. Bravo also collected soil samples from lineaments that are interpreted as fault scarps in the pediment between, and to the south of, the exposed Paleozoic age rocks. Anomalous gold values of to 0.039g/t Au may delineate hidden mineralized structures beneath Quaternary alluvium. A total of five sites are permitted and bonded for drilling. SHOSHONE PEDIMENT SUMMARY Bravo owns 70 claims that comprise the Shoshone Pediment property. Low level gold and encouraging pathfinder geochemistry are widespread in generally unfavorable Upper Plate rocks. The property is near the northwestern projection of a series of small gold deposits in Upper Plate rocks at US Gold s Slaven Canyon property. These gold deposits are between approximately 1.5 and 8km southeast of the property. More prospective Lower Plate carbonates are at an unknown depth. The rights to barite at the Company s Shoshone Pediment property were leased to Baker Hughes, for which the Company will receive an advanced minimum royalty and a royalty for any barite produced from the property. They 7

10 will also pay federal and county fees to maintain the claims and provide Bravo with a split of any drill samples that they collect while they drill out the bed of barite exposed on the property. Bravo reserves the rights to explore for and mine gold and other metals. Bravo has no immediate plans to drill the property, but will continue to monitor competitor activity in the area and will be provided with cuttings from any Baker Hughes drilling, which can be analyzed for gold and associated pathfinder elements by Bravo. Bravo believes that the best potential on its land lies in the more prospective Lower Plate rocks at depth. Gold and pathfinder geochemistry on Baker Hughes drill samples may provide vectors that will allow targeting for deeper drilling needed to test the Lower Plate rocks. NORTH LONE MOUNTAIN SUMMARY Bravo owns a 100% interest in 81 unpatented lode mining claims that comprise this project, subject to a 1% NSR royalty, which can be reduced to 0.5% NSR by payment of US $3 million at any time. The project is located in Kobeh Valley just off of the southern edge of the Roberts Mountains. The property is concealed by alluvium, but Paleozoic sediments are exposed immediately west, in low hills, north in the Roberts Mountains and south at Lone Mountain. There are various drill holes located on and adjacent to the claims, for which limited data is available. Beneath alluvial cover is basement composed of carbonate rocks, referred to as Lower Plate, and siliclastic rocks, referred to as Upper Plate rocks. Depth to bedrock is believed to range from 0m to +400m in the project area. Lower Plate carbonates that have been recognized in drill holes include the Lone Mountain dolomite and various overlying limestone, silty limestone, and dolomite, including the Bartine member of the McColley Canyon formation and the 8

11 Denay formation. The Bartine member and Denay formation host the Gold Bar Mine deposits. Another potential ore horizon is the unconformity at the base of the Webb siliciclastic rocks. A series of relatively shallow holes are planned to examine lithology, alteration, and geochemistry in Paleozoic bedrock beneath alluvium. The program should consist of five to seven holes, with seven drill sites having been permitted and bonded. GRANITE MOUNTAIN SUMMARY Granite Mountain is located on the Battle Mountain Eureka Gold Trend between the Pipeline Deposit (approximately 10 million ounce of gold) 11km to the southeast, and the Hilltop Deposit (approximately 2.5 million ounces of gold) 10km to the northwest. The Robertson property is about 5km south of Granite Mountain and is reported to have a million ounce resource of gold. Bravo Ventures can, through a mineral lease option agreement, maintain a 100% interest in mineral rights underlying the property and the right to mine any mineral resources discovered, other than turquoise. In order to maintain the lease, Bravo must pay the owner monthly option payments and, should mineral production occur, a 2% royalty. Bravo has identified a large halo of anomalous gold (maximum 1.46g/t) and pathfinder elements in rock and soil samples from the property. Two holes have been drilled on the property, and weakly anomalous gold was encountered and altered dikes were intersected. Most of the gold in the trend is hosted by calcareous sedimentary units of the Lower Plate, although significant gold deposits and occurrences do occur within the more siliceous Upper Plate rocks in the vicinity. On Granite Mountain, only Upper Plate rocks are exposed at the surface, but favorable, lowerplate rocks should underlie these rocks. Bravo has identified an Upper Plate calcareous siltstone on the west side of the property that may correlate with a silty limestone unit penetrated by a USGS hole drilled approximately 2km south of the property. The intercept of upper plate calcareous rocks in the USGS hole was approximately 600m above the Roberts Mountain Thrust and, if the two calcareous occurrences correlate, the Roberts Mountain Formation may be intercepted at a reasonable depth beneath the Granite Mountain Property. Agnico Eagle leased the property from Bravo in 2006 and drilled 2 holes to depths of 524m and 293m. Both of these drill holes stopped short of their desired depth and bottomed in Upper Plate rocks. The deep hole (approximately 400m east of the shallow hole) contains 164m of non calcareous argillite that is pervasively anomalous in gold and arsenic. This interval averages 0.056g/t Au (high value 0.124g/t Au), 110ppm As and occurs from a depth of 360m to the total depth of 524m. Weakly anomalous gold was also intersected in the shallow hole, but it did not reach the depth of the thick anomalous section encountered in the deeper hole. Further drilling to depths below 2,000 feet is warranted. THREE BAR SUMMARY The Three Bar project is situated in the heart of the Battle Mountain Gold Trend and is approximately 55km northwest of Eureka, Nevada and 5 km northwest of the now closed Gold Bar Mine. Bravo owns 85 unpatented mining claims, which are subject only to a 1% NSR royalty, half of which (0.5%) can be bought for US$3 million. 9

12 The project lies along a major, north trending, gravity anomaly associated with the Gold Bar Mine Deposit. A north trending fault also runs through the property. Bravo has drilled two holes on the property and has data for several others drilled prior to their acquisition of the property. Favorable host rocks consisting of Lower Plate carbonates have been delineated to the northeast of this fault at shallow to moderate depths beneath gravel and Tertiary volcanic rocks. Relatively thick zones of low level gold, as well as intrusive dikes and silicified Paleozoic rocks, have also been intersected in drilling. Drilling on the footwall, or west side, of the fault is sparse, and the Lower Plate rocks lie deeper there. Potential for shallow to deep deposits of gold and a possible northern extension of the Gold Bar feeder zone are indicated by regional gravity data. Competitors continue to hold their land adjacent to Three Bar, and Bravo will continue to monitor exploration activity in the area. SOUTH LONE MOUNTAIN SUMMARY Bravo owns 100% interest in 116 unpatented lode mining claims that comprise this project, subject to a 1% NSR royalty, which can be reduced to 0.5% NSR by payment of $3million at any time. The project is located in Kobeh Valley about midway between the Eureka and Gold Bar districts. 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 2.36 g/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 +300 ppb was obtained from bedrock samples, although samples were 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 line kilometers of seismic geophysics, collected soil and gas geochemistry, and drilled nine reverse circulation and mudrotary holes for a total of 3,514m in 2005 and early Two areas were tested by drilling. Placer Dome, after purchase by Barrick, returned 100% interest in the property to Bravo in Bravo drilled three additional mud rotary holes (1,247m) during late 2006/early Although no bedrock gold mineralization was encountered, the source of the gold in the gravel has not been found; thus, several blocks of claims are held in areas that are believed to remain prospective. One area is also adjacent to base metal mineralization encountered by a competitor. SOUTH GOLD BAR SUMMARY 10

13 Bravo owns 12 unpatented mining claims approximately 43km northwest of Eureka Nevada and 6km southwest of the main Gold Bar Deposit, which lie directly on the projection of the Gold Bar Mine horst block. The property has no holding costs, other than annual claim maintenance fees, and is subject to only a 1% NSR, one half of which (0.5%) can be bought for US$3,000,000. The McColley Canyon and Denay Formations are potential host rocks for exploration beneath gravel and volcanic rocks in this basin. Bravo has drilled one hole to a depth of 354m, which bottomed in volcanic rocks. Bravo has reduced its land holdings on this property since drilling the hole, but continues to hold the 12 claims because of their favorable location and their partial continuity with claim holdings that Bravo maintains on the South Lone Mountain Project. HO SUMMARY The HO property is also located in the Battle Mountain Gold trend and consists of 49 claims. Bravo can acquire a 100% interest in these claims by making annual payments that will total US$142,000. Any production from the property would be subject to a 2% NSR, 1% of which could be bought for US$1,000,000. The entire surface of the HO property is covered by gravel, although both Upper and Lower Plate rocks are exposed within 1.5km south of the property. Bravo has conducted a gravity survey, a DEM lineament study, soil sampling from interpreted fault scarps and has drilled one hole. The gravity survey suggests that bedrock is shallowest on the southern boundary of the claim block and deepest in the northeastern corner. Several northwest and northeast trending lineaments cut the property and were the focus of the scarp sampling program; several low level gold anomalies were identified in this survey. The drill hole was terminated at 427m in gravel and volcanic sediments. Bedrock maybe only slightly deeper than the drill hole, but the decision was made to curtail spending on the project, to monitor competitor activity in the area and further consider what future exploration activities might advance the project. 11

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