GEOLOGY

Geology

The Garfield Flats project has undergone two distinct periods and styles of mineralization. The first period of mineralization is interpreted to be associated with the older Triassic-Jurassic-aged rocks. The second period of mineralization at the project is interpreted to be the result of a Tertiary-age, High Sulfidation Epithermal type, precious metal-bearing, hydrothermal system. This younger, rhyolite-hosted mineralization is quite similar to the mineralized rocks that are described at the Pamlico mine located 2.5 miles (4 km) NW of the project.

Previous Exploration on the project has identified the several discrete zones of mineralization. These include: i.) the Lazy Man (LM) gold zone which is a structurally-controlled, intrusion-related gold deposit. ii.) A large area of barite and copper mineralization with intense bleaching east of the LM gold zone. iii.) Strong copper showings to the southeast of the gold zone. iv.) The Loman antimony mine to the southwest of the LM gold zone, including Skarn zones to the west of the LM gold zone. v.) A large zone of strong IP response pyrrhotite and porphyry intrusion west of the LM gold zone.

Based on previous historical exploration completed on the project, the Garfield Flats project is a district-scale mineral system three miles (4.8 km) E-W and two miles (3.2 km) N-S comprising a collection of the geographically and mineralogically distinct zones of strong alteration with base and precious metal mineralization listed above.