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Historically, there has been more than 1,000,000 ounces of gold produced in the Manhattan mining district. Recent production from the Manhattan mine (1974-1990), an open-pit operation, produced 236,000 ounces of gold at an average grade of 0.08 ounce per ton ("opt"). The Echo Bay East and West Pit deposits operated in the early 1990s, producing 260,000 ounces at an average grade of 0.06 opt. The Round Mountain Mine, situated eight miles to the north, has produced more than 12,000,000 ounces of gold. Recorded placer gold production from the district includes approximately 150,000 ounces from a major dredge operation, with small-scale lode mines having produced another 100,000 ounces.
The current exploration model suggests that deposits that will be found in the Manhattan District are related to the contact of the Manhattan Caldera Margin and structural intersections. Gold is also related to the Cambrian-Ordivician Age sedimentary rocks along the five mile long by one mile wide zone of the Caldera.
Preliminary assays from one of the outcrops sampled on the East Manhattan Wash property returned values from 0.054 to 1.01 ppm Au. Assays are pending for the remaining samples, with panning of some of the samples having revealed "free gold". Additional land has been staked along the North and South sides of the original EMW claims. We believe that the EMW claims offer the opportunity to find high grade gold deposits within a well known mineralized province. Underground deposits found here will be in the 0.5 opt gold range and higher. Conversely, open pittable deposits will be in the 0.05 opt gold range, which is currently being mined at Kinross Gold's nearby Round Mountain deposit.
The terms of the Option Agreement with MSM L.L.C. are as follows:
| Date | Payment Amount |
| Upon execution of the Agreement | US$28,000 (paid) |
| First anniversary of Effective Date | US$20,000 |
| Second anniversary of Effective Date | US$25,000 |
| Third anniversary of Effective Date | US$40,000 |
| Fourth anniversary of Effective Date | US$50,000 |
| Fifth anniversary of Effective Date | US$100,000 |
The EMW Property is subject to a 3% NSR royalty. Upon full exercise of the Option, the Company will own 100% of the project.
