GEOLOGICAL SUMMARY REPORT 


ON THE CAB CLAIMS


Lander County


North-Central Nevada, USA


 


T26N R44E


Lat 40°06’N


Long 116°59’W


 


 


 


For:


STONE MOUNTAIN RESOURCES INC.


Suite 200, 701 North Green Valley Parkway


Henderson, Nevada USA


89074


 


 


By:


Dr. David A. Shaw


November, 2004


 


 












 


 


 





 


	
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SUMMARY


This report was prepared at the request of Stone Mountain Resources Inc. to describe and evaluate the previous results of geological, geochemical, and geophysical work carried out on the CAB claims, and to provide recommendations for further work.


The property is located approximately 45 miles south-southeast of the town of Battle Mountain, Lander County, Nevada, centred at a latitude 40°06’ N and longitude 116°59’ W. The property is situated within the Shoshone Range and is located approximately 16 miles southwest of the Battle Mountain/Eureka Trend which hosts several major gold deposits and mines. The property comprises 24 unpatented lode mining claims totalling approximately 480 acres. The claims are accessible by road using four-wheel drive vehicles.


Geology of the CAB claims consists of Ordovician Valmy Formation chert/argillite in fault contact with Valmy quartzite and Tertiary volcanic and sedimentary tuffs of the Caetano formation. Alteration types include silica flooding, clay, and iron oxides consisting of hematite and goethite. Gold mineralization and associated pathfinder elements occur with brecciated high- and low-angle faults.


Work up to 1997 consisted of geological mapping, rock and soil geochemical surveys, magnetic, gravity and CSAMT surveys. The adjoining mineral claims to the east received 1,225 metres of reverse circulation and rotary drilling in 12 holes. Geochemical sampling returned gold values up to 0.348 g/mt. Drill chips sampled from hole 95-4 returned 0.156 g/mt over an interval of 50 feet, including 5 feet of 0.964 g/mt Au.


In 1997, a geological mapping and geochemical sampling, grid establishment, and a magnetic/VLT-EM survey was undertaken. Results form all programs have identified mineralized zones occurring along fault contacts.


A phase 1 exploration program consisting of further fault contact delineation is recommended. Estimated cost is US $10,000. This will enable drill target selection for Phase II estimated at US $45,000.


 


 


	
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TABLE OF CONTENTS


Page


	


SUMMARY

	
3


	

TABLE OF CONTENTS

	
4


	

LIST OF TABLES

	
5


	

LIST OF FIGURES

	
5


	

1.

	
INTRODUCTION AND DISCLAIMER

	
6

	
 


	

2.

	
LOCATION, ACCESS, AND PHYSIOGRAPHY

	
7


	

3.

	
PROPERTY STATUS

	
10

	
 


	

4.

	
AREA DEPOSITS

	
12


	

5.

	
PREVIOUS WORK

	
13


	

6.

	
REGIONAL GEOLOGY

	
15


	

7.

	
PROPERTY GEOLOGY

	
18

	
 


	
 

	

CAB Claims

	
18

	
 


	

8.

	
GEOPHYSICS

	
20


	

9.

	
DISCUSSION

	
22

	
 


	

10.

	
CONCLUSIONS

	
23

	
 


	

11.

	
RECOMMENDATIONS

	
24

	
 


	

12.

	
PROPOSED BUDGET

	
25

	
 


	
 

	

Phase I

	
25

	
 


	
 

	

Phase II

	
25

	
 


	

13.

	
STATEMENT OF QUALIFICATIONS

	
26


	

14.

	
REFERENCES

	
27

	
 


	

APPENDIX A: CLAIM RECORDS

	
28


							




 





 


	
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LIST OF TABLES


	
Table 1. Claim Information

	
10


	
Table 2. Gold Deposits of the Battle Mountain/Eureka Gold Belt

	
12






 


 


LIST OF FIGURES


Page


	
Figure 1. General Location Map

	
 8


	
Figure 2. Regional Location Map

	
 9


	
Figure 3. Claim Map

	
              

	
                                                                                                                                                11


	
Figure 4. Regional Gold Deposits and Structural Settings

	
14


	
Figure 5. Regional Geology

	
16


	
Figure 6. Property Geology – CAB Claims

	
19


	
Figure 7. Geophysical Compilation

	
21


						




 





 


	
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1.

	
INTRODUCTION AND DISCLAIMER






This report was prepared at the request of Peter Dodge, President of Stone Mountain Resources Inc. to evaluate previous results for geological, geochemical, and geophysical work carried out on the CAB claims in north-central Nevada, U.S.A. and to make further recommendations.


The report, which is based on published and unpublished information, maps, reports, and fieldwork, discusses the potential of the CAB claims to host structurally controlled gold mineralization similar to gold deposits and mines located in the area of the Battle Mountain/Eureka Trend.


Gold deposits within the Battle Mountain/Eureka Trend formed when heated meteoric water moved along a series of faults and into areas of structural weakness. Gold was deposited in porous sedimentary rocks and in fault zones.


The author has been involved in Nevada area exploration for over 20 years and is intimately familiar with the geology and ore deposits. The author has visited and reviewed mineral properties in the vicinity of the CAB claims.





 


	
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2.

	
LOCATION, ACCESS, AND PHYSIOGRAPHY






The CAB claims are situated approximately 45 miles south-southeast of the town of Battle Mountain in Lander County, Nevada, centred at latitude 40°06’N and longitude 116°59’ W (Figures 1 and 2).


Access to the CAB claims is south along Highway 305 for 25 miles to the Redrock Canyon road, then east for 12.5 miles to Carico Lake, then south for 6 miles along the Carico Lake road. The CAB claims are situated 2.5 miles west of the Carico Lake road along a dirt road suitable for four-wheel drive vehicles.


The property is located in the northern Shoshone mountain range and lies within the Basin and Range Province of Nevada, bounded by Carico Lake Valley to the east and Antelope Valley to the west. The basin and Range Province is characterized by north-northeast-trending, block-faulted mountain ranges separated by wide alluvial valleys. Elevations on the CAB claims range form approximately 6000 to 6600 feet.


Climatic conditions in the area are typical of north-central Nevada. In summer, conditions are hot and semi-arid, with temperatures occasionally exceeding 40°C. In winter, temperatures are below freezing and snow is common. The recommended work season is February through November.





 


	
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Figure 1. General Location Map





 


	
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Figure 2. Regional Location Map


 


 


	
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3.

	
PROPERTY STATUS






The CAB claims consists of 24 unpatented lode mining claims located in sections 22, 23, 26, 27, T26N R44E (Figure 3), on federal lands administered by the Bureau of Land Management (BLM) district office in Battle Mountain.


Claims include:


Table 1. Claim Information


	
Claim Name

	
BLM Serial No.


	
CAB 1-24

	
NMC 886372-NMC 886395






 


Total area covered by the claims is approximately 480 acres.


All claims are registered to Midas Mountain, Inc. a Nevada corporation. Stone Mountain Resources Inc. has an option to earn a 100% interest by fulfilling certain cash payments and property expenditures over 4 years. The claims are presently in good standing until September 1, 2005.


The writer has reviewed the certified claim documents and the property agreements and found them to be proper and in order (Appendix A).


The writer is not aware of any particular environmental, political, or regulatory problems that would adversely affect mineral exploration and development on the CAB claims.





 


	
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Figure 3. Claim Map





 


	
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4.

	
AREA DEPOSITS






The CAB claims are located approximately 16 miles southwest of the Battle Mountain/Eureka gold best (Figure 4) which consists of a linear northwest-trending series of gold deposits hosted by upper and lower plate sedimentary rocks and Tertiary volcanics. The Carlin Gold Trend, the most productive gold producing area in North America, is located approximately 70 miles to the northeast.


Deposits that are located within 35 miles of the subject property include Mule Canyon (Santa Fe Gold), Robertson (Coral Gold), Hilltop, Pipeline and South Pipeline, Gold Acres, Cortez, Horse Canyon (all Placer Dome), and Buckhorn (Cominco).


The Gold Acres, Mule Canyon, Pipeline and South Pipeline deposits are in production. Deposits are shown in Figure 5 and reserve statistics are given in Table 1.


During the 1930’s, barite and mercury deposits were discovered in the Northern Shoshone mountain range. Mercury was produced sporadically until the 1950’s. Barite has been mined continuously to present.


Table 2. Gold Deposits of the Battle Mountain/Eureka Gold Belt


	
Deposit

	
Type

	
Tons (MM)

	
Grade (oz/t)

	
Total oz (MM)

	
Status


	
Mule Canyon

	
Fault

	
10.00

	
0.108

	
1.08

	
production


	
Hilltop

	
Thrust Fault

	
10.00

	
0.049

	
0.49

	
advanced


	
Robertson

	
Skarn

	
20.00

	
0.036

	
0.72

	
advanced


	
Pipeline

	
Dissem.

	
20.00

	
0.121

	
4.24

	
production


	
S. Pipeline

	
Fault/Dissem.

	
32.33

	
0.069

	
3.22

	
production


	
Gold Acres

	
Fault/Dissem.

	
24.354

	
0.114

	
2.77

	
production


	
Cortez

	
Dissem.

	
n/a

	
n/a

	
1.30

	
mined out


	
Buckhorn

	
Fault/Dissem.

	
1.10

	
0.110

	
0.12

	
mined out


	
Horse Canyon

	
-

	
3.94

	
0.055

	
0.20

	
dormant


	
 

	
 

	
 

	
Total

	
14,140,000

	
 






 





 


	
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5.

	
PREVIOUS WORK






	
1981

	
Chevron carried out an exploration program consisting of claim staking, reconnaissance geological mapping, a soil geochemical survey, and drilled 8 rotary holes totally 753 metres on claims to the east. No information is available to the writers.






	
1994

	
Cameco carried out geological mapping and rock-chip sampling.






	
1995

	
Cameco carried out claim staking, magnetic, gravity, and CSAMT surveys and drilled 4 reverse circulation drill holes totalling 472 metres on adjoining property for the east.


	
1997

	
Pallaum carried out an exploration program consisting of data compilation, geological mapping, rock sampling, grid establishment, and a magnetic/VLF-EM geophysics survey.






 


	
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Figure 4. Regional Gold Deposits and Structural Settings


 


	
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6.

	
REGIONAL GEOLOGY






Blake in his 1996 report best summarized the regional geology as follows:


The northern Shoshone mountain range consists primarily of middle Cambrian to Permian sedimentary and mafic volcanic rocks overlain by Eocene to Pilocene felsic to mafic volcanics and minor sediments.


Early and middle Palaeozoic rocks in the region consist of siliceous rocks of the Roberts Mountains allochthon. Extensional faulting of middle Cambrian to Devonian age deformed the Roberts Mountains allochthon and the subjacent but coeval rocks of the continental margin (Madrid, 1987). The extensional structures were active and contributed to the formation of a large marginal rift basin into which sediments accumulated and lithified during the middle Cambrian and late Devonian.


During the Devonian and early Mississippian, these sedimentary rocks were folded and tectonically emplaced as the Roberts Mountain allochthon, along the Roberts Mountains thrust, over an eastern coeval carbonate assemblage. The allochthon consists of middle Cambrian to Devonian chert, argillite, debris flows, and minor volcanic-rich limestone. The continental margin assemblage includes Cambrian to Devonian carbonates overlying a thick sequence of early Cambrian and Pre-Cambrian clastic sediments.


During the late Palaeozoic, sediments of the Havallah sequence were deposited in a rift basin and were subsequently folded and thrust eastward as part of the Golconda allochthon, along the Golconda thrust, over the late Palaeozoic Antler sequence. The Havallah sequence consists of chert, argillite, siltstone, sandstone, minor conglomerate, alkalic basalts, and minor volcanogenic chert. The Antler sequence consists of conglomerates, sandstones, and carbonate rocks that were deposited over the Roberts Mountains allochthon units during the early part of the late Palaeozoic. Both the Roberts Mountains and the Golconda thrusts strike northeast.


During the middle Jurassic, the area underwent further deformation, becoming the Cortez-Shoshone fold belt (Madrid and Bagby, 1985). These folds trend northwest, plunge northwest, and have axes that generally dip to the west (Madrid, 1987).





 


	
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Figure 5. Regional Geology


 


 


	
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Tertiary volcanic rocks of the region include the early Oligocene Caetano tuff, which is a series of ash-flow units. These units were deposited over large areas of north-central Nevada from a source in the Cortez Mountains located to the east of the Shoshone Range. Caetano tuff deposition was followed during the middle and late Oligocene by eruption of a series of ash-flow tuffs derived from a source in the Fish Creek Mountains located approximately 12.5 miles west of the CAB claims.


During the Miocene, Basin and Range development began, with sediments filling the north-and northeast-trending intermontane basins.


Major plutons of granodioritic to quartz monzonitic composition developed during the late Jurassic, late Cretaceous, and early Tertiary. The younger plutons are felsic while the older plutons and stocks are more mafic.





 


	
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7.

	
PROPERTY GEOLOGY







CAB Claims 


Geology along the western margin of the claims and continuing west consists of silica-flooded, barite-veined, iron-stained, brecciated Valmy Formation quartzite in thrust contact with bleached, iron-stained Valmy chert. Dips range from 40° to 60° east to northeast. Numerous silica-flooded, brecciated, high-angle structures (shears /faults) cut both the quartzite and chert sections (see Figure 6).


To the north, weakly altered Tertiary tuffs and tuffaceous sediments are exposed.


Unconformably overlying the Tertiary rocks is a clay-rich sediment that is post-mineralization in age. This green to white unit is unconsolidated and generally flat-lying. Capping the post-mineral sediment are remnants of a thin, vesicular basalt flow. The middle and eastern margins of the CAB claims are mostly covered by recent, unconsolidated alluvium.





 


	
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Figure 6. Property Geology – CAB Claims





 


	
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8.

	
GEOPHYSICS






The CAB claims cover two distinct, arcuate magnetic high features transacted by numerous strong WNW-ESE trending LF conductors and weaker ENE trending cross cutting structures (see Figure 7).


 


	
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Figure 7. Geophysical Compilation


 


	
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9.

	
DISCUSSION






The CAB claims are located approximately 16 miles southwest of the Battle Mountain/Eureka Gold Belt. Similarities between the CAB claims and several gold deposits in the belt include favourable Upper Plate stratigraphy and lithologies, and structurally controlled mineralization. The target deposit on the CAB claims is structurally controlled gold in Valmy sediments and Caetano tuffs and/or disseminated gold in the porous Caetano tuffs.


Results from previous work on the CAB claims indicate that a structurally controlled low-temperature, gold-bearing hydrothermal system has developed. Geochemical sampling returned anomalous values of arsenic, antimony, and mercury, along with gold values up to 0.348 g/mt. Surface indications of mineralization and alteration appear to widen and continue westward along an east-west trend. Post-mineralization clay-rich sediments cover the western extension of the mineralized zone.


The proposed program is designed to examine in detail the mineralization and alteration developed along the ESE VLF conductors, particularly in areas of contact with ENE intersections and peripheral to the magnetic highs.





 


	
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10.

	
CONCLUSIONS






The CAB claims have potential to host a structurally controlled or disseminated gold deposit for the following reasons:


	
•

	
the geological setting is similar to the Battle Mountain/Eureka gold belt which hosts numerous gold deposits, including several in production;


	
•

	
geological mapping and rock and drill chip geochemical data suggest the presence of a low-temperature, gold-bearing, hydrothermal system developed on the property; and


	
•

	
several ESE linear VSF conductors occur with bisecting, weaker ENE linear VLF conductors proximal to two distinctly arcuate shaped magnetic highs. The linears could provide conduits for possible mineralization emanating from the magnetic highs.









 


	
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11.

	
RECOMMENDATIONS






Work should consist of detailed mapping and sampling to delineate drill targets. The estimated cost is US $10,000. With success, a limited drill program could be implemented for US $45,000.





 


	
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12.

	
PROPOSED BUDGET







Phase I






 



Phase II









 


	
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13.

	
STATEMENT OF QUALIFICATIONS






I, DAVID ANDREW SHAW, of 3889 West 26th Avenue Vancouver, BC hereby certify that:


	
1.

	
I am a graduate of Carleton University, Ottawa, Ontario, Canada with a Doctor of Philosophy in Structural Geology (1980) and of the University of Sheffield, England (1973) with a Bachelor of Science (Specialized Honours) in Geology;






	
2.

	
I have worked as a Geologist for over 25 years;






	
3.

	
I have worked as an in-house Structural Geological Consultant for Chevron Resources Ltd. and for Bema Resources Management Inc.. I have worked as a geological and financial analyst for Charlton Securities Inc. and for Yorkton Securities Ltd. evaluating mineral exploration and mining properties. As a consequence of my experience I am therefore qualified to write this report and recommend the proposed exploration program and budget in this report;






	
4.

	
I am responsible for this report and the opinions expressed therein.






	
5.

	
There are no material facts or material changes in the subject matter of this report that would mislead the reader.


	
6.

	
I have no interest, direct or indirect, in the properties or shares of Western Exploration Inc., nor do I expect to receive any.


	
7.

	
I hereby grant my permission for Stone Mountain Resources Inc.. to use this report for any corporate use normal to the business of the Company.






 


 


Date at Vancouver, BC, this 19th day of November, 2004


 


Dr. David A. Shaw


 


 





 


	
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14.

	
REFERENCES






Blake, D.W., 1994: Carico Lake Prospect, Lander County, Nevada, Unpublished Report.


Blake, D.W., 1995: Preliminary Report on the Rocky Canyon Property, Lewis Mining District, Lander County, Nevada, Unpublished Report.


Blake, D.W., 1995: Results of Drilling – Stone Cabin Project, Lander County, Nevada, Unpublished Report.


Supplement Report – 1995 Drill Hole Geochemistry (As, Hg, and Sb), Stone Canyon Project, Lander County, Nevada, Unpublished Report.


Blake, D.W., 1996: Summary Report, Stone Canyon Project, Lander County, Nevada, Unpublished Report.


Leriche, P.D., Harrington, E.D. 1997: Summary Report on the Stone Cabin Canyon Property, Lander County for Pallaum Minerals Ltd. (unpub.)


Madrid, R.J., and Bagby, W.C., 1985: Structural Alignment of Sediment-Hosted Gold Deposits in North-central Nevada: An Example of Inherited Fabrics, Geological Society of America, Abstracts with Programs, vol. 15, no. 5, p. 382


Madrid, R.J., 1987: Stratigraphy of the Roberts Mountains Allochthon in North-Central Nevada, Unpublished PhD Thesis, Stanford University, 340 pp.


Stewart, J.H., McKee, E.H., and Stager, H.K., 1977: Geology and Mineral Deposits of Lander County, Nevada, Nevada Bureau of Mines and Geology, Bulletin 88.


Thornton, J.M., 1997: Ground Magnetometer and VLF Surveys on the Stone Cabin Canyon Property, Lander County, Nevada, for Pallaum Minerals Inc.





 


	
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APPENDIX A:


 


CLAIM RECORDS


 


 


	
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