Asset #27 (Mt. Boy Eureka) – 63 claims 1,260 acres
The owners own a block of 58 lode mining claims known as Asset #27 which is located in Eureka county. A portion of the company’s 58 claims border claims owned by Barrick Gold and is about 2 miles from Barrick’s processing and heap leach facilities. Barrick’s Eureka operations known as Ruby Hill are an open-pit, heap leach operation. In 2011, Ruby Hill produced 127,000 ounces of gold at total cash costs of $334 per ounce. Proven and probable mineral reserves as of December 31, 2011 were 978,000 ounces of gold. In 2012 Barrick’s production dropped to around 40,000 ounces as the site went through a major overhaul and the open pit was re-designed for deeper mining. Barrick has also added several hundred claims to the immediate west of their current operations and about one and a half miles north of Asset #27 for their expansion. Asset #27 is a stand alone project with access and lode mining claims around the most obvious high grade areas. There are a total of 58 claims or approximately 1160 acres in this very promising asset. Asset #27 is located in a fully staked area of Eureka County and is surrounded by two large entities. 1. Barrick Gold and it’s Ruby Hill operations cover approximately 30 square miles to the north and east of CJT’s claims 2. The entity with claims adjoining CJT claims is Silver Viking Corporation which has claims to the east of CJT covering approximately 2.4 square miles known as the Prospect Ridge and has a rich history of producing Gold and Silver.
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GSMN has been studying and evaluating various properties throughout Nevada for the past 15 years. Consequently the properties have been assigned Asset Numbers for identity and confidentiality. Starting in 2009 the number of properties being studied was reduced to two and which were already identified in the company records as Asset #26 (Reveille) and Asset #27 (Mt. Boy/Eureka). These two properties were selected because of the significant historical data and information regarding these two mining districts and because of the active claim ownership and/or production by significant companies owning adjoining claims. Asset #26 (Reveille) consists of 54 claims located in Nye county Nevada about 60 miles south of Round Mountain which is owned by Kinross and Barrick. In addition to other historical studies and reports, the most recent study called the Condor Report was completed in August 2011 and concluded that the district has mineralization in the top 500 meters or 1500 feet. GSMN claims are located in the center of the area covered by the Condor Report. GSMN has also completed drilling activities in 2012 that confirmed gold and silver mineralization in the top 600 feet. The chart below shows some of the historical information regarding tonnage and grade of the ore located at Asset #26. GSMN is not looking for ore at Asset #26 (Reveille) but is in the process of finalizing plans for mining near surface ore. GSMN is also preparing to enter into a joint venture processing agreement to process its’ stockpiled ore located here. Asset #27 (Mt. Boy/Eureka) consists of 60 claims in Eureka county Nevada about 3 miles from Eureka Nevada with another 3 claims containing stockpiled ore nearby. The claims are adjacent to the Barrick Gold operations in Eureka and other significant claim holders in the area. The chart below shows some of the historical information regarding tonnage and grade of the ore located at Asset #27. This property needs roads and some mine site work before it is ready to go into production. The joint venture processing agreement referred to above may also expand to include this property in the future.
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