Auric Gold & Minerals Inc. - A majority owned affiliate of Whitney & Whitney Inc. 


6490 S. McCarran Blvd
Bldg. C, Suite 23
Reno, NV 89510

Phone: 775-689-7666

Fulstone Project

The property that Auric has acquired by claim staking can be classified as an Iron Oxide Copper Gold (IOCG) exploration target. While there are no measured resources in the target area, Whitney & Whitney, Inc. believes that there is potential for one or more deposit aggregating up to 500 million tons based on the size of large geophysical and geochemical anomalies within the target area.

The following table shows mineral load claims and approximate acreage:

Auric Mineral Load Claims - Fulstone Project, Yerington, NV.

IOCG deposits can be very large as is demonstrated by the Pumpkin Hollow IOCG deposit which has a 2009 NI 43-101 measured, indicated and inferred resource of 929 million tons of copper ore containing 4.657 million tons of copper at a cutoff grade of 0.2% copper. This Pumpkin Hollow resource also contains 1.45 million ounces of gold, 55 million ounces of silver, 24,000 tons of molybdenum, and 183 million tons of iron.

The recently completed preliminary economic assessment for Pumpkin Hollow demonstrates that at a $2.50/lb. copper price, the project has a $498 million NPV at an 8% discount with an IRR of 44% and Capex of $192 million. At a $3.00/lb. copper price, the project’s discounted NPV at an 8% discount increases to $784 million. Nevada Copper recently obtained permits to do underground development and sampling, and has financing in place to conduct the development work. On-going drilling is also being conducted, which is expanding the measured resource.

The Fulstone property has many similarities to the Pumpkin Hollow IOCG deposit. A description of the Pumpkin Hollow’s geology is detailed below:

Geology of Pumpkin Hollow from Nevada Copper Corporations Website:

The Pumpkin Hollow deposit is a high grade IOCG chalcopyrite-magnetite skarn located along the flanks of the copper producing Yerington batholith were the district wide copper inventory is over 24 billion pounds.

The Pumpkin Hollow deposits are blind, the only surface expression are hornfels and un-mineralized skarn. The deposits were originally discovered in 1959 by US Steel Corp. using airborne magnetics. Follow-up magnetic surveys and drilling delineated several magnetite-rich skarn bodies, commonly greater than 40% iron, hosted by Mesozoic sedimentary and igneous rocks. Later work by Anaconda and other companies outlined copper rich areas within the system where drilling intercepted grades up to 20 % Cu. A recently completed resource study at a 0.2% copper cutoff reported 9.3 billion pounds of copper, 1.45 million ounces of gold, and 55 million ounces of silver. Iron resources at a 20% iron cutoff total 361 million tons at a grade of 36%.

Lithologic, alteration and assay data from this drilling combined with re-analysis of old drill data has defined manto-like ore bodies and breccia-hosted controls for high grade mineralization. Sediments of the Gardnerville Formation have been metamorphosed to pyroxene-garnet hornfels and later veined and replaced by epidote-garnet-actinolite-calcite skarn accompanied by chalcopyrite, pyrite, magnetite, and pyrrhotite. High grades of copper are found as chalcopyrite filled fractures in skarn breccia. Skarn mineralization within the Mason Valley Limestone follows the contact of a large sill of granodiorite endoskarn. Fine-grain massive magnetite mineralization replaces marble and extends hundreds of feet into underlying calcic endoskarn. Sulfides are disseminated throughout the magnetite and are particularly concentrated; in strata-bound skarn-breccia zones, at the endoskarn-marble contact, and at the front between marble and magnetite. Local late stage talc and extensive chlorite + calcite + pyrite veining overprints the entire system. The associated intrusive bodies, sills and dikes, are the same calc alkaline suite present in the Yerington Batholith porphyry deposits. Strong calcic alteration of the main stage granodiorite is widespread with secondary albite and potassium feldspar present together with the same skarn assemblage seen in the sedimentary host rocks.

Post-mineral geologic events include regional folding, Cretaceous plutonism, and the deposition of a thick sequence of Oligocene ignimbrites. Great Basin extension has resulted in district-wide low-angle normal faults and westward rotation of pre-Miocene rocks. The Pumpkin Hollow deposits are structurally deeper than the known porphyry and related skarn deposits of the district. The great volume of magnetite mineralization in the Pumpkin Hollow skarns is typical of IOCG deposits. The Pumpkin Hollow IOCG deposits are porphyry-related but formed at a deeper level than the other copper deposits in the district. Locally copper grades at Pumpkin Hollow exceed 4% and iron grades are over 65%. For example in the E-2 deposit USX hole KM44 reported 4.2% copper over a true width of 115’. In the North deposit USS hole USX-44 returned 4.54% copper over a true width of 175’.

To date exploration has defined five individual deposits (although with additional drilling, some of the deposits will likely merge) the North, South and Southeast; open pittable deposits and the high grade East and E-2 both underground deposits.

Copper Deposits of the Yerington District

Nevada Copper Corporation’s Pumpkin Hollow deposit, a high grade IOCG deposit is located approximately 90 miles southeast of Reno, NV, and approximately 6 miles southeast of the city of Yerington, and 8 miles southeast of the Yerington open pit.

Pumpkin Hollow is located at the southeast corner of the included satellite image:

Pumpkin Hollow is located at the southeast corner of the included satellite image.

Fulstone Project Similarities to Pumpkin Hollow

The land position being assembled by Auric contains documented copper, gold, silver, zinc, and iron (magnetite) mineralization hosted within Jurassic-Triassic volcanics and sediments that have been intruded by a large Jurassic age intrusive that exhibits characteristics of disseminated porphyry copper mineralization; sulfide bearing skarns with magnetite; and sodic-calcic alteration typical of porphyry copper deposits. The gold and silver in IOCG deposits is typically associated with the base metals copper and zinc. In these deposits the gold is in the “Auric” molecular form in combination with base metals.

The Fulstone Project area has several aeromagnetic anomalies that trend favorably with well developed north-south, northwest-southeast, and northeast-southwest faulting.

Unpublished work performed by Whitney & Whitney, Inc. early in 2000 resulted in the discovery of a significant induced polarization (IP) anomaly that trends sub-parallel to a northwest-southeast trending aeromagnetic anomaly. The above noted geophysical anomaly is bounded by northwest-southeast trending faults and is intersected by north trending and northeast-southwest trending faults. The IP anomaly has been traced for over 10,000 feet and ranges from 1,000 to 4,000 feet wide at a 40 mili-second magnitude outline on plan maps. Individual IP dipole-dipole survey lines show conductors exceeding 1,000 feet in thickness, and a chargeability reading greater than 60 mili-seconds.

In the 2010 second half Auric purchased a data package that contains exploration data obtained during the early 1970s, that extends the IP anomaly approximately 8,000 feet to the north. This older IP survey reflects a conductor with chargeability values greater than 40 mili-seconds and resistivity values that suggest the presence of sulfides associated with limestones at depths from 300 to 1200 feet.

Geochemical sampling over both IP anomalies has identified coincident anomalous copper-gold-zinc mineralization.

A hole drilled by Exxon in the late 1960s, on trend with the IP anomaly encountered 80 feet of 0.40% copper at a 400 foot depth. At that time the grade and the price of copper were too low to meet their objectives… now these grades and copper over $3.00 per pound are attractive, as seen by recent exploration activity in the Yerington district.

The Yerington Mining District is Favorably Located in Nevada’s Walker Lane

The Yerington Mining District is located within the mineral laden Walker Lane Fault System (WLFS). In a general sense the WLFS extends along the eastern flank of the Sierra Nevada mountain range from the northeasterly trending Garlock-Las Vegas Fault system near the Mojave Desert in southern California, and extends 500 miles northwesterly into south-central Oregon.

The WLFS is located at the juncture of two contrasting tectonic styles, the Sierra Nevada and the Basin and Range. The WLFS is a complex fault zone with both extensional and strike-slip fault movements.

Numerous mineral deposits have formed within the complex WLFS. These deposits range from historic million ounce bonanza grade gold and silver camps such as the Comstock Lode, Tonopah, and Goldfields; small epithermal precious and base metals vein deposits, larger tonnage disseminated gold deposits which include Paradise Peak and Beatty, to a number of larger porphyries including Anaconda Mining Company’s Yerington Pit which produced 875,000 tons of copper, and Anaconda’s Hall Molybdenum mine outside Tonopah which produced approximately 50 million tons of molybdenum ore between 1982 and 1991.

Auric’s personnel have extensive experience exploring the Walker Lane, especially in northwest Nevada, including the advancement of the Borealis Mine by Whitney & Whitney, Inc. under the direction of Dr. John Whitney, President. Dr. Whitney is a member of the Borealis owner group which acquired the property in 1977. Between 1980 and 1991 the Borealis mine produced over 625,000 ounces of gold. The Borealis mine is now under lease to Gryphon Gold Corp which has been exploring the 23 square mile gold bearing volcanic hosted high sulfidation system at the mine site. Gryphon has identified 1.4 million ounces of Measured & Indicated gold resources, and 1.1 million ounces of Inferred gold resources and has secured permits for a heap leach operation. Gryphon recently obtained financing to put the Borealis mine back into production and is managing a “fast track” construction path to obtain gold production in the fourth quarter 2011.

Mining Company Development Activities in the Yerington District:

Mining Company Development Activities in the Yerington District

 


 

Recent Auric News (archives)

10/11/2012 - Itronics Updates Auric Gold & Minerals Fulstone Project

09/08/2011 - Itronics Reports Auric Gold & Minerals Signs New Letter of Intent to Go Public by Reverse Merger With a Gold Company

09/07/2011 - Itronics Reports Auric Gold & Minerals Expands Fulstone Project Area by 37 Percent

07/28/2011 - Itronics Announces New Web Site for Auric Gold & Minerals, Inc.

01/04/2011 - Itronics Reports Auric Gold & Minerals Extends Letter of Intent to Go Public by Reverse Merger With a Gold Company


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