Lower
Davis-Dunkirk Mine
Quotes from January 2006 Report for Mr. Jason
L Wharton, Mine Owner
(updated Jan-08 to reflect more recent spot
prices)
Report Produced by Mr. Don Jenkins
Certified Professional Geologist (CPG#3341)
Mining Engineer (ME# 1594874)
General Description:
This mine hosts a gold, silver, and copper-bearing shear zone deposit. This deposit contains a quartz fissure vein that has been partially explored and developed over a period of roughly 100 years. Most all past production has been confined to “hi-grade” zones, specifically ore shoots. In the course of developing the ore shoots, considerable exposure has resulted of the host shear zone and lower grade portions of the fissure vein. It is this exposure, together with previous development, that provides the foundation for evaluating the mine’s potential. It is obvious from previous exploration efforts and evaluations that the Lower Davis-Dunkirk Mine has produced moderate quantities of ore, primarily from the “hi-grade” ore shoots, and that the potential for ore remaining in these shoots is high. In addition, the old data and current exposures all suggest that the potential for a bulk-mining program may be significant. The shear zone is continuous throughout the property, but has been subjected to transecting and cross faulting, resulting in potential structural implications……..which may be favorable ……….or just the opposite. Exploration activities will be required to determine the implications of structural features at the mine.
Two types of targets contain potential
for economic mineralization:
First, and historically the most important one, is a quartz-filled fissure vein occupying a broad shear zone. Within the quartz fissure are structurally controlled ore shoots, containing the “hi-grade” gold values that have been the subject of past operations. A second target that can no longer be ignored is that of the entire shear zone itself. This structure trends through the property in a NE direction for approximately 2300’, indicated by old workings and exposures both at surface and underground, and reconnaissance exploration. It is also evident that the shear zone has been exposed over a vertical depth of 500’ or more on the Lower Davis-Dunkirk Mine, and an additional 1000’ vertical feet to the top end of the Upper Davis-Dunkirk Mine, together with a lateral extension of some 3200’. This certainly suggests both extensive lateral and vertical potential of the shear zone system. In fact if one assumed an average width of 25’, a strike length of 5500’, a depth potential of 2000’, with 40% removed due to slope (topography) and previous mining, the total potential for mineralized material is then:
(5500 x 2000 x 25) x 60%/12/ft/ton = 13.75 million tons
Of this amount, approximately 6 million tons could lie within the boundaries of the Lower Davis-Dunkirk Mine as a potential bulk-mining target. This is speculative at this point but not unrealistic to consider as part of any exploration program.
Samples:
Sample A-25 was taken as a select representation of what visually appears to be “hi-grade” gold/silver ore. Select chips were extracted from numerous and scattered ore-bearing rock from the surface workings above the No.1 Level. The assay results prove this theory accurate, as this representative “look” at suspected “hi-grade” ore assayed 1.091 oz/ton Au, and 17.40 oz/ton Ag. Based on this sample, a significant tonnage of “hi-grade” ore is available at surface in and around the old workings.
Value
= (1.091 x $850/oz) + (17.40 x $15.0/oz) = $1,188.35
per ton
Sample A-4 is a chip channel taken from the northern portion of the workings above the No. 1 level. A channel across 9.0’ of sheared and silicified mylonite was cut within the left rib of the entrance to an open stope. The significance of this sample lies in the fact that the material sampled is outside the main fissure or vein. Clearly, this material must be evaluated in any future exploration program. The entire 9.0’ averages 0.541 oz/ton Au, and 39.65 oz/ton Ag. Since this material lies in the footwall underneath the quartz portion of the ore shoot, it must be assumed that previous mining may have ignored footwall extensions of what is at today’s metal prices economically viable ore. To accentuate the point, the in-ground gross value of this 9.0’ interval, outside the main vein, is as follows:
Value
= (0.541 x $850/oz) + (39.65 x $15.0/oz) = $1,054.60
per ton
Based on this analysis, potential footwall extensions from known ores shoots, as well as newly discovered ones, must be carefully tested and fully evaluated.
Sample A-7 was taken in the surface workings above the No.1 level, and near the northern end of the workings at the face of an open stope. This sample certainly confirms the presence of “hi-grade” ore confined to an ore shoot. The sample was taken as a panel sample across the entire exposed face some 6’ in width, assaying 0.925 oz/ton Au, 11.40 oz/ton Ag.
Value
= (.925 x $850/oz) + (11.40 x $15.0) = $957.25
per ton
Sample A-12 was extracted near the end of the surface road trench from scattered boulders of vughy quartz, stained with iron oxides, and what appears to be manganese oxides……this sample assays 0.315 oz/ton Au, and 14.35 oz/ton Ag.
Value
= (.315 x $850/oz) + (14.35 x $15.0) = $483.00
per ton
CONCLUSIONS AND
RECOMMENDATIONS:
· In the past, mining at the Lower Davis-Dunkirk property has been confined to “hi-grade” gold/silver ore contained within ore shoots, leaving “low-grade” ore behind.
· “Hi-grade”ore likely remains in and around old stopes, up rake and down the rake of known ore shoots. Considerable potential is suggested down rake below current workings and will in all likelihood be predominantly of sulfide content.
· Sampling, mapping, and visual examination of accessible workings indicate the presence of mineable “hi-grade” ore at and near the surface above the No. 1 level. Some accessible ore is also indicated within the short drift adjacent to the No. 6 shaft.
· Examination of old records and accessible workings show spatial characteristics of the ore shoots, which can be effectively utilized in the planning of exploration programs.
· The Davis-Dunkirk shear zone extends throughout the property, over a strike length of approximately 2300’. This conclusion is based on sampling, mapping, and reconnaissance exploration conducted throughout the property.
· The Davis-Dunkirk shear zone is a broad structural feature, hosting known “hi-grade” ore shoots, together with potential bulk tonnage targets, primarily in the footwall zones of the ore shoots, but potentially throughout much if not most of the shear zone trend. The shear zone measures up to 50’ in width or more as evidenced by surface sampling and mapping.
· The ore shoots at this property are structurally controlled by transecting faults…possibly some chemical interaction within the walls of the shear zone has occurred.
· The Lower Davis-Dunkirk shear zone represents a potential bulk-mining target of 6 million tons or more, depending upon the depth potential of the deposit.
· Localized bulk mining targets are present geologically/structurally beneath the “hi-grade” ore shoots. The entire geologic/structural mineralized package could represent favorable targets for a potential localized bulk-mining program, containing several hundred thousand tons per ore shoot. For example, an ore shoot of bulk mining potential, measuring 40’ thick, 300’ of strike, and 1000’ of depth could yield 1,000,000 tons just from this one stope alone. The ore shoot near the end of the No. 6 level is such a possibility. The entire shear zone trend could yield much greater volumes but most likely of lower grade milling ore. This is all speculative at this point but the technical data points toward a favorable potential yield.
·
Reconnaissance sampling, mapping, and visual
examination suggest that other possibilities remain throughout the
property. Old workings to the south of
the No. 6 level, down in
· Although known or proven ore reserves are at this time very limited, the potential for finding and developing ore reserves of economic viability at the Lower Davis-Dunkirk property is very high. The evidence for such is clear, and limited additional mapping and sampling will perhaps enhance the possibilities. As such, the Lower Davis-Dunkirk Mine is one of exceptional merit, likely hosting “a significant quantity of “hi-grade” gold, silver, and copper ores, but perhaps more importantly hosting a potential yet undeveloped shear zone bulk tonnage deposit. Only time and a concerted effort will determine the extent of ore reserves at this property.
Summary of estimations: (added Jan-08 by Owner)
With 6 million tons of ore averaging even just $350 per ton, this property could hold an in-ground reserve of 2 billion dollars in gold and silver.
It is also important the values of copper receive attention too. Assays showed the ore to be between 2% and 5% copper. Using a 3% average for 6 million tons at $3/lb, the in-ground reserve of copper is: 6 million tons * 3% * 2,000 lbs/ton * $3/lbs = $1.08 billion of in-ground copper reserves.
This mine is also noted for containing Azurite, a beautiful gemstone.
Thus, over all, this property shows great potential as a multi-billion dollar reserve.
For more detailed information please refer to the full report and accompanying certified assay report.