14. On August 12, 2010 the Company entered into an
agreement with Western Diversified Mining Resources
, Inc. ("Western") pursuant to
which the Company agreed to acquire Western's 23.22
% shareholding in Bouse Gold Inc. and Western's 46.
84% shareholding in South
Copperstone Inc. for 12,096,115 shares of the Compa
ny's Series A Preferred Stock and 29,334,212 shares
of the Company's Series B Preferred
Stock.
The Bouse Gold property includes 360 acres of minin
g claims (18 lode claims) in the Plomosa Mining Dis
trict, two miles west of the town of
Bouse, in La Paz County, Arizona. The land is admin
istered by the US Bureau of Land Management (BLM).
It is a former Homestake Gold
(Barrick) project which includes the historic Littl
e Butte, Flat Fault and Arrastre Mines. There are n
umerous shafts, pits and dumps on the
property. Reportedly, a majority of the Plomosa Min
ing District's historic gold production came from B
ouse Gold's Little Butte Mine. At
Bouse, a Mid-
Tertiary system of epithermal mineralization was in
troduced into a stacked sequence of litho tectonic
units that are located on the
northern side of the Plomosa Detachment Fault. Comp
lex epithermal gold, barite and fluorite mineraliza
tion is superimposed on earlier copper-
specula rite mineralization. Gold occurs in lateral
ly extensive breccias and in steeply dipping amethy
stine-quartz veins. Past drilling by
Tenneco, US Borax and Homestake at Bouse found sign
ificant gold bearing intervals in both the breccias
and high angle structures. Bouse
Gold has copies of drill results for 50+ holes. The
Company's initial plans include compilation of all
existing exploration materials on the
property, followed by additional geological work.
The South Copperstone gold property is comprised of
480 acres (24 unpatented lode mining claims) locat
ed in the Moon Mountains Mining
District, La Paz County, Arizona, about midway betw
een the towns of Parker and Quartzsite. The land is
administered by the US Department
of Land Management (BLM). The Company's claims are
immediately south of the Copperstone Mine, which it
adjoins. South Copperstone's
rationale in acquiring the property was the potenti
al, which may or may not be realized, for one or mo
re additional Copperstone ore bodies. The
known Copperstone deposit (not owned by the Company
) had a 500,000 ton open pit resource of .09 ounce
per ton gold that was mined by
Cyprus Gold in the 1980's. A reported underground g
old resource at Copperstone is presently being expl
ored by another mining company. The
western edge of the Company's claims has exposed go
ld - bearing bedrock consisting of banded quartz la
tite flows intruded by granite. Initial
drilling by Callahan Mining at South Copperstone fo
und anomalous gold hosted by quartz and altered qua
rtz latite. This was reportedly
consistent with Cyprus Gold drill results from imme
diately north of the Company's claim block. However
, Callahan's drilling was not deep
enough to penetrate the mineralized breccia unit th
at hosts the gold resource at the Copperstone Mine
to the north. Initial induced polarization
(IP) work by Callahan found anomalous chargeability
values to the south of Callahan's claim block in a
n area that is within South
Copperstone's claim block. South Copperstone intend
s to follow up with a full induced polarization (IP
) geophysical grid in order to locate
initial drill targets.
