 |
 |
The Diamond Peak Property is a historic MK Gold Gold/Base Metal property that was explored during the late 1990's and is located at the southern end of the prolific Carlin trend, which contains numerous gold deposits. The property comprises 38 claims located 32 miles north of the town or Eureka, Nevada and the Archimedes gold deposit owned by Barrick Gold Corporation.
Click to enlarge
Strong surface mineralization occurs in a 2 mile long band of intensely clay altered rocks, 200 to 300 feet wide, on the hanging wall side of a major north striking normal fault, called the West Fault.
During the work done by MK in 1999, which included 17 holes and 10,085 feet of drilling, they encountered significant values of gold and base metals that included:
- 5 feet of 0.067 oz/st Au in hole DV 99-4 and 5 feet of 0.062 oz/st Au in hole DV 99-5; and
- 11.6 % of Zinc over 5 feet within 60 feet of surface along the West Fault in the Chainman formation in hole DV 99-15.
Although no extensive intervals of mineralization were encountered, the drilling did indicate that more work was needed to find an economic mineralized system. The recommendations by MK Gold were to continue exploration and drill deep (>2,000 foot) diamond drill holes to the Web and Joana formations.
At the time, the base metal values were not considered as important and were not part of further considerations. Current prices of zinc, silver, and lead make this a very important target for further exploration. There are three intrusives that contain significant base and precious metal signatures along their edges. These have not been drilled and could contain skarn mineralization that may be economic. Future exploration would include conducting geophysical surveys to better define the intrusive contacts and define drill targets for future work.
On May 18, 2006 MAX entered into an Option Agreement with Kokanee Placer Ltd. (Kokanee") a private B.C. company, whereby Kokanee can earn a 51% interest in MAX's Diamond Peak property in Eureka County, Nevada.
In order to earn its interest, Kokanee has agreed to pay US$25,000 (which has been paid), issue 100,000 shares to MAX and make the following annual payments:
1) Issue 200,000 shares to MAX on the first anniversary date and pay an additional US$35,000 in either cash or shares, subject to a minimum of 200,000 shares of Kokanee;
2) Issue 300,000 shares to MAX on the second anniversary date and pay an additional US$45,000 in either cash or shares, subject to a 300,000 share minimum;
3) Pay US$100,000 to MAX on the third anniversary date, in either cash or shares, with a 600,000 share minimum; and
4) issue 1,000,000 shares of Kokanee to MAX on commencing commercial production.
The Option will be for a term of three (3) years and requires work commitments of US$100,000 in the first year, US$300,000 in the second year and $600,000 in the third year.
In August 2006 Kokanee advised MAX. that it had completed in excess of $100,000 in exploration work on MAX's Diamond Peak Property in Eureka County, Nevada and satisfied its first year work commitment
Kokanee has contracted with SJ Geophysics of Delta, B.C. to conduct a "3-d" Induced Polarization ("IP") survey on the Diamond Peak property. This 3-d survey will utilize computer data interpretation to provide a comprehensive model which will enable the IP to not only measure along the line of survey but between the lines.
This survey was completed in June 2006 over a total of 4 kilometres of strike length and the data is currently being interpreted for inclusion in a National Instrument 43-101 Geological Report being prepared on the Diamond Peak property for Kokanee Mineral Inc.
