GNCC Capital, Inc. (“the Company”) acquired the “White Hills” Gold Exploration Properties in Arizona (“White Hills”) on June 17, 2013 in the total amount of $10,000,000 (Ten million dollars).
Burnt Well Gold Exploration Properties
http://www.gncc-capital.com/BurntWell.html
The Burnt Well Gold property is comprised of 9 unpatented lode mining claims (approximately 160 acres) in the Harcuvar Mining District, about 20 miles from the town of Wenden, in La Paz County, Arizona. It is near the northern flank of the eastern Harcuvar Mountains in the eastern portion of Butler Valley. Access is by taking Alamo Road, a paved road, 20 miles north from Wenden, then proceeding east for 6 miles over an unpaved road to the property. The land is administered by the US Bureau of Land Management (BLM). Burnt Well is a former Cordex Exploration Co. (“Cordex”) project, which includes the historic Silver Lining Mine.
There are several shafts, pits and dumps on the property, which explored complex structural zones in the Tertiary hanging wall rocks, just above a regional detachment fault known as the “Bullard Detachment Fault.”
The Tertiary rocks are andesite flows, well-bedded siltstones and conglomerates. In the vicinity of the Silver Lining Mine, the upper plate is intensely altered and shattered. The principal outcrop at the Silver Lining Mine is approximately 40 to 80 meters from the detachment fault. The sedimentary rocks on the mine dump contain hematite, chrysocolla, calcite and sparse manganese oxides. Gold, silver and copper mineralization is found in the altered sedimentary rocks. The lower plate rocks, below the Bullard Detachment Fault, do not appear to be mineralized, and include a variety of metamorphic rocks including Precambrian mylonitic gneiss.
Cordex sampling of gold mineralization along structures at the main Burnt Well shaft and adit reportedly yielded gold values up to 34 g / t (1.0 ounce per ton). Also of interest are disseminated gold values ranging from 0.34 to 1.03 g/t (0.01 to 0.03 ounce per ton) in silicified Tertiary siltstones, over widths of 20 feet or more. The Tertiary rocks in the project area are mostly covered by thin pediment gravels. However, two shallow shafts (the “Southwest Shafts”) about 1.6 kilometers (1.0 mile) southwest from the Silver Lining Mine, yielded a sample of 3.4 g / t (0.01 ounce per ton) of gold from Tertiary andesite.
Exploration plans include follow-up on magnetic anomalies found by a Cordex surface magnetic survey, as well as additional sampling and geophysical work designed to outline targets for drilling.
Burnt Well Mining District Geology
The upper plate of the Bullard detachment fault contains a conglomerate unit with cobbles and pebbles up to 30 cm diameter of mylonitic gneiss, chloritic breccias, foliated and unfoliated granitic rocks, Tertiary intermediate volcanic, Paleozoic quartzite and limestone, reworked Tertiary sandstone and conglomerate. Clast composition varies from outcrop to outcrop. Mylonitic gneiss and chloritic breccias form 0 to 10% of the clasts. Paleozoic quartzite and limestone form 0 to 10% of the clasts. The stratigraphic sequence of the Miocene sedimentary and volcanic units is not yet known, except that the conglomerate unit overlies the sandstone unit at one location near the Silver Lining Mine.
Near the southwest corner of the claim block, a moderate to steep, northeast – trending fault is marked by a gouge zone with steeply dipping shears Tertiary volcanic rocks are present in the crush zone of this fault. The outcrop here is on strike with linear color contrast to the northeast, clearly visible on air photos that is parallel to the Harcuvar Mountain range margin and is inferred to be a high-angle fault based on this exposure.
Silver Lining Mine Mineralization
The main shaft and adit are in the upper plate, in tan and maroon Tertiary siltstone, within the conglomerate unit, located approximately 40 to 80 meters from the Bullard detachment fault. Tertiary sedimentary rocks in the mine dump contain hematite, chrysocolla, calcite and sparse manganese oxides.
Mineralization at the Southwest Shafts
The Southwest Shafts are sunk in the upper plate of the Bullard detachment fault in Tertiary conglomerate. There is sparse chrysocolla and hematite stain on mine-dump rocks. Approximately half a mile further southwest, near the southwest corner of the claim block, there is a prospect on a quartz-barite vein in locally calcareous Miocene sandstone.
Ester Basin Gold Exploration Properties
http://www.gncc-capital.com/EsterBasin.html
The Ester Basin gold property is located on approximately 100 acres of mining claims (five unpatented lode mining claims) in the Owens Mining District in southern Mohave County, Arizona. There are five unpatented lode mining claims on land administered by the Bureau of Land Management (“BLM”). ”). Access is obtained over Alamo Lake Road, an all-weather unpaved road that runs south from I-40 starting at Yucca, Arizona.
Ester Basin Gold is in the Upper plate of the Buckskin – Rawhide Detachment Fault. Gold mineralization is found in silicified quartz breccia zones throughout the property, in a country rock of Precambrian gneiss. There are numerous shafts, glory holes and other historic mine workings along a 1+ mile ESE trend.
Regional Geology
The regional geological setting is a major east / west detachment fault (called the “Buckskin / Rawhide Detachment Fault”). Striking northwesterly from this detachment fault for approximately 15 miles is a high angle fault (called the “Sandtrap Wash Fault”), which may have localized mineralization associated with the major detachment fault. Mineralization is found in quartz veins and breccia zones hosted by the upper plate in close proximity to the Sandtrap Wash Fault. In most cases the upper plate country rock is Precambrian granite or gneiss. In addition, the lower plate of the detachment fault, which is located to the south of the detachment fault, hosts similar mineralization as the upper plate, which strongly suggests that there is a stacked system of detachment faults, such that the lower plate of the Buckskin Rawhide detachment fault is in turn the upper plate of another detachment fault lying further to the south.
Detachment fault deposits were first recognized as a separate form of gold deposit in the 1980’s. The best example of an Arizona detachment gold deposit is probably the “Copperstone” Gold deposit, which like “Ester Basin” is in the highly extended Western Arizona terrane, as well as in the “Walker Lane” gold trend. Cyprus Gold mined the approximately 500,000 ounce “Copperstone” open pit gold resource during the 1980’s, and another mining company is presently assessing the feasibility of mining the remaining underground gold resource at “Copperstone”. The gold is frequently found with quartz and copper mineralization, which at the surface is often in the form of blue – green chrysocolla or green malachite. Also associated with the gold are iron oxides (including hematite), which makes magnetic anomalies potential exploration targets.
Ester Basin Mineralization
At the Northwest Shaft there is barite-calcite-chrysocolla-malachite-manganese oxides-hematite mineralization and minor quartz in fractures in Precambrian granite. The fractures trend N 13 degrees E and dip 40 degrees E. Feldspars in host granite are altered to an amorphous gray clay mineral. A few hundred feet to the SW, there are manganese oxides – calcite-chrysocolla-hematite-specular hematite in another shear zone trending N 10 degrees E and dipping 20 degrees SE. Again, the host rock is Precambrian granite. About 2,000 feet south from the Northwest Shaft, there is quartz-calcite with subordinate hematite, copper oxides, manganese oxides, fluorite, and barite within a shear zone trending N 30 degrees E and dipping 55 degrees SE. The host rock is Precambrian granite in which feldspars have been altered to white clay. Hematite coats abundant fractures in granite. Nearby small quartz-calcite veins trend N 20 degrees W. Mafic minerals are also altered to oxides. A few hundred feet to the Southwest, there is quartz-calcite-chalcedonic quartz, with minor barite, in a fracture zone trending due north, dipping 50 degrees E. The host rock is locally silicified middle Tertiary basal arkose.
At the Central Shaft, which is about 2,000 feet southeast from the Northwest Shaft, there is mineralization in the absence of apparent shearing, including calcite-barite-quartz with minor copper oxides. The calcite is white and coarsely crystalline. Vugs are lined with fine-grained quartz that is coated with limonite. A fine grained dioritic dike trending N 80 degrees W and dipping 55 degrees S has been mined.
The Southeast Shaft is about 3,000 feet southeast of the Central Shaft. Mineralization includes fluorite-hematite-chrysocolla-malachite-quartz-relict pyrite (now iron oxides) in a one meter wide shear zone trending N 70 degrees W and dipping 55 degrees NE. The host rock is Precambrian granite in which feldspars have been altered to sericite and clay minerals. Hematite, copper oxides and relict sulfides are present.
Grab samples taken from these areas of mineralization had the following values:
- Sample 01-07-15-002: gold 0.185 oz /T; silver 0.60 oz /T; copper 1.640%
- Sample 01-07-15-003: gold 0.126 oz/T; silver 1.10 oz/T; copper 0.939%
- Sample 01-07-15-004: gold 0.412 oz/T; silver 0.60 oz/T; copper 1.940%
- Sample 01-07-15-005: gold 0.024 oz/T; silver 0.15 oz/T; copper 1.230%
- Sample 01-07-22-001: gold 0.013 oz/T; silver0.15 oz/T; copper 1.760%
- Sample 01-07-22-002: gold <0.001 oz/T; silver 0.15 oz/T; copper 0.015%
- Sample 021-02/19/2008: gold 0.292 oz/T; silver <0.05 oz/T; copper 0.696%
Previous Exploration Work
The Ester Basin gold deposit was previously included in a Phelps Dodge gold project during the 1980’s. Phelps Dodge did geochemistry and magnetic surveys, as well as preliminary drilling. Certain of the materials from the Phelps Dodge project are in the public domain and should prove useful in planning further exploration at Ester Basin. Based on these materials, it has been concluded that the Ester Basin Project claim block includes certain Phelps Dodge drill targets for the next drill campaign that was cancelled. The Company intends to pick up where Phelps Dodge left off and, following some preliminary geological work, resume drilling the property.
CLARA GOLD EXPLORATION PROPERTIES
http://www.gncc-capital.com/Clara.html
The Clara Gold Project is located on approximately 480 acres of mining claims in the Santa Maria Mining District in La Paz County, Arizona. There are 24 lode mining claims on land administered by the Bureau of Land Management (“BLM”). Access is obtained by Swansea Rd and Lincoln Ranch Road, which proceed approximately 15 miles north from Arizona Highway 72 at Bouse, Arizona.
The Clara Gold property consists of a Tertiary age sandstone and conglomerate upper plate which has been detached over the top of a lower plate of Precambrian age quartz-feldspar-chlorite gneiss. The gneiss has been intensely brecciated along both the detachment surface and where it has been cut by high angle structures. Clara has exposures of gold and copper in the upper plate, developed by numerous shafts and adits on Gold Hill. Mineralization is dominantly free gold (disseminated and leaf form) and micron gold, along with massive or fracture filling specular hematite, chrysacolla, malachite, barite, fluorite, quartz, calcite, chlorite and manganese oxides. The high angle structures appear to have served as conduits tapping a large deep seated copper / gold system.
Underground sampling by Nevada Pacific, a previous owner, averaged .091 ounces per ton gold, and included a section of continuous chip / channel samples that averaged 0.162 ounces per ton gold over 85 feet. Nevada Pacific’s initial drilling included intervals of 45 feet @ 0.097 ounces per ton gold and 15 feet @ 0.089 ounces per ton gold. The Company intends to conduct initial sampling to validate Nevada Pacific’s reported results, following which the Company will attempt to develop drill targets at the property.
Clara Exploration History
Exploration materials are available dating back to 1982, when the property was originally acquired by American Gold Minerals Corp., which assigned their interest to Goldsil Mining & Milling, Inc. Goldsil drilled 16 holes and encountered values of up to 0.8 ounces gold per ton (upper plate) and up to 0.10 ounces gold per ton in the gneiss (lower plate), with a resource estimate of up to 400,000 tons of mineralized rock. Goldsil drilled 14 more holes in the south central portion of Section 3 (south of Moreau Hill). A 1986 report described E / W high-angle faults dipping 5 to 10 degrees to the SSE, weak silicification extending into the (lower plate) gneiss and stockwork silica veinlets in the gneiss close to the contact with a breccias zone 5 to 30 feet thick.
In 1986 Phelps Dodge drilled 18 air hammer holes and reported consistent low-grade gold values in Section 35 (Clara Mine area), with estimates of 2,000,000 tons of mineralized rock grading 0.1ppm gold. Work by Gold Fields in 1990 and 1992 was intended to investigate magnetic anomalies and described NE trending structures along the east side of Moreau Hill, as well as the possibility of a lower detachment surface. Some of the gold observed was described as coarse, with detectable flakes, leading to consideration of the possibility of gravity concentration.
Nevada Pacific acquired the property in 1997. Their surface sampling returned gold values of up to 0.652 ounces gold per ton and copper values of up to 20% copper. Underground sampling returned up to 0.512 ounces gold per ton with copper values up to 2.59%. The 36 samples taken by Nevada Pacific averaged 0.091 ounces gold per ton and included a section of continuous chip / channel samples which averaged 0.162 ounces gold per ton over 85 feet. Nevada Pacific then drilled nine holes at Moreau Hill, which included intercepts of 45 feet grading 0.097 ounces gold per ton and 15 feet grading 0.089 ounces gold per ton. The property was then optioned by Echo Bay, which unsuccessfully attempted to drill a barren covered area to the south (not included in the current Clara Gold Project) on the basis of biogeochemical sampling. The project vendors acquired the property from Cordex, and there is an underlying 2% net smelter returns royalty payable to Cordex from the property’s production.
Regional Geology
The regional geological setting is a major east / west detachment fault (called the “Buckskin / Rawhide Detachment Fault”). Mineralization is found in quartz veins and breccia zones hosted by the upper plate and lower plates. Detachment fault deposits were first recognized as a separate form of gold deposit in the 1980’s. The best example of an Arizona detachment gold deposit is probably the Copperstone Gold deposit, which like Clara is in the highly extended Western Arizona terrane, as well as in the “Walker Lane” gold trend. Cyprus Gold mined the approximately 500,000 ounce Copperstone open pit gold resource during the 1980’s, and another mining company is presently assessing the feasibility of mining the underground gold resource at Copperstone. Unlike the upper plate Copperstone deposit, gold mineralization at Clara is found in both the upper plate and in the lower plate, as well as in the fault contact area itself. The gold is frequently found in breccias zones with quartz and copper mineralization, which at the surface is frequently in the form of blue – green chrysocolla or green malachite. Also associated with the gold are iron oxides (including hematite), which makes magnetic anomalies potential exploration targets.
Mineralization at the Clara Gold Mines
There are dozens of mine shafts, adits, open pits and other mine workings at the Clara Gold Project. The area was historically developed by the Clara Consolidated Gold & Copper Mining Co. in the early 1900’s, and is comprised of two groups of mining claims, called the Clara Mine in the northeast portion of the property and the Moreau Mine in the southwest portion of the property. The property is comprised of 12 unpatented lode claims at the Clara Gold Mine, 6 unpatented lode mining claims at the Moreau Gold Mine, and 6 unpatented mining claims covering mineralized ground between the two mines, making the property a contiguous group of 24 unpatented lode mining claims (480 acres).
Clara Gold Mine
In the area of the open cut at the southwest end of the Clara Gold Mine (McClelland Lode Claim) there is mineralization along the Buckskin / Rawhide detachment fault. Brecciated volcanic rocks above a 1 to 2 meter thick gouge zone contain chalcopyrite, bornite and relict pyrite cubes. Chrysocolla, malachite and selenite are present in fractures. Rocks below the fault are shattered, silicified mylonitic gneisses with fractures containing drusy quartz (1-2 mm crystals), chrysocolla, and specular hematite. Irregular veins of chrysocolla and quartz-hematite-chrysocolla, up to 1 cm thick, cross cut brecciated lower plate rocks. Drusy quartz fills fractures in and along the actual fault zone, and apparently post-dates fault movement. Hematite below the fault in breccias-gouge is late to post-fracturing.
Further to the northeast in the vicinity of the shaft at the northern end of the Klapetsky claim, there is continued mineralization along the Buckskin / Rawhide detachment fault. Shattered chloritic breccias below the fault contain malachite – chrysocolla-hematite-drusy quartz in fractures. Late-stage selenite fills fractures in the upper plate.
At the northeast corner of the Clara Gold Mine in the vicinity of the historic mining camp (Josephine, Wilson and Hazel Lode Claims), many of the shafts, adits and open pit workings are located along and just above the Buckskin / Rawhide detachment fault. Highly fractured upper plate rocks contain chrysocolla (copper oxide) on fracture surfaces. Zones up to 50 cm thick contain quartz, calcite, hematite and manganese oxides. Hematite (iron oxide) staining is pervasive. Mineralized zones typically follow northeast – striking, southeast – dipping shears. The host is silicified and shattered Tertiary sandstone and possibly Tertiary volcanic or hypabyssal rocks.
Moreau Gold Mine
On the northwest flank of Moreau Hill, chrysocolla-malachite-quartz-calcite-botryoidal hematite-silicified hematite is found above and adjacent to the Buckskin / Rawhide detachment fault along gently dipping fractures in Tertiary volcanic breccias. On the southwest flank of Moreau Hill, there are underground workings in crushed rocks along the buckskin / Rawhide detachment fault. Fractures in upper plate silicic Tertiary volcanic or hypabyssal rocks contain hematite, chrysocolla and malachite.
East of Moreau Hill, there is brecciated conglomerate with silica-hematite matrix located above and next to the Buckskin / Rawhide detachment fault. Gently dipping fractures contain much limonite stain and red to black hematite. Sparse gypsum is also present. Further east of Moreau Hill, in the area between the Moreau and Clara Gold Mines, there are adits in crushed rocks along the Buckskin / Rawhide detachment fault. Chrysocolla – malachite-hematite-barite are present in fractures in the fault zone. Another adit 60 meters to the northwest is along an upper plate shear zone containing chrysocolla-malachite-quartz-hematite with quartz occurring primarily as fine-grained coliform overgrowths on other minerals.
The Kit Carson Silver Exploration Properties
http://www.gncc-capital.com/KitCarson.html
The Kit Carson Silver Project is presently comprised of approximately 411 acres, located 2 miles southwest of Humboldt, and about 10 miles southeast of Prescott, in Yavapai County, Arizona. It is accessed from Arizona Highway 69 by Iron King Road, an unpaved all weather road running southwest from Humboldt, Arizona to the property.
The silver project includes 24 unpatented lode mining claims totaling approximately 400 acres and a 50% undivided interest in the mineral rights to the Lady Alde patented lode mining claim (approximately 11 acres). The unpatented mining claims are located on land administered by the US Bureau of Land Management (BLM).
The Project is in the Big Bug Mining District, and three of the Company’s mines at this property have been mined in the past for precious and base metals: Lookout, Kit Carson and Lady Alde. The Company’s property currently includes approximately 3,000 feet on the Silver Belt - McCabe Vein System, 6,000 feet on the Kit Carson Vein System and 3,000 feet on the Lady Alde Vein System.
The Lookout Silver Mine was operated as recently as 1979, but has only been worked to a depth of 200 feet. The Company intends to begin exploration by surface geochemical sampling along the three above-referenced vein systems. Any anomalies encountered would be evaluated as potential drill targets.
The Kit Carson Silver Project is located between two major past producing mines. Adjoining the northeast end of the project area is the Iron King Mine, which produced gold, silver, lead and zinc for a Phelps Dodge predecessor until the late 1960’s. Adjoining the opposite (southwest) end of the Kit Carson Silver Project is the Gladstone – McCabe Gold Mine, which was last operated by Magma (later BHP) in the 1980’s. A major part of the Company’s rationale for acquiring Kit Carson Silver was the prospect that the rich gold and silver deposits at Iron King and Gladstone- McCabe continued onto the Company’s property, which was only mined to shallow depths.
Regional Geology
The Kit Carson Silver Project is located in the Northern Bradshaw Mountains of Yavapai County, Arizona. There are pre-Cambrian stratified rocks, largely assigned to the Big Bug Group of the Yavapai Series that total approximately 20,000 feet in thickness. These rocks consist of volcanic, volcaniclastic, and some sedimentary rocks that have been metamorphosed to the green schist facies. Higher-grade metamorphic rocks are present adjacent to the younger plutonic rocks.
The Big Bug Group is divided into three formations: (1) the Green Gulch Volcanics, which are west of the Kit Carson Silver Project area and consist of a basal dark-gray slate overlain by pillow and amygdaloidal mafic flows that contain intertounging rhyolitic rocks and mixed rhyolitic and mafic tuffaceous beds; (2) the Spud Mountain Volcanics (which underlay most of the Kit Carson Silver Project area) which constitutes the middle formation, is divided into a lower unit and an upper unit. The lower unit is dominated by bedded andesitic – rhyolitic breccia’s with coarse – graded bedding suggesting subaqueous pyroclastic flows. The upper unit is dominated by bedded andesitic and rhyolitic tuffaceous sediments that intertongue with the lower part of the overlying Iron King Volcanics, the youngest formation; and (3) the Iron King Volcanics, which are east of the Kit Carson Silver Project area and are a thick sequence of pillow and amygdaloidal mafic flows containing interbeds of sedimentary rock, including ferruginous cherts and small amounts of rhyolitic flows and tuffs.
Intruded into the Big Bug Group Precambrian rocks are masses of Tertiary granodiorite, which outcrop immediately west of the Gladstone - McCabe Gold Mine, just to the west of the Kit Carson Silver Project area. Also outcropping to the west of the Lady Alde Silver Mine is gabbro of Precambrian age, which may represent sills of mafic magma injected during the accumulation of the thick sequences of mafic volcanics.
Iron King Mine
The Iron King Mine is adjacent to the northeast portion of the Kit Carson Silver Project. The Iron King deposit is in andesitic tuffaceous rocks of the upper unit of the Spud Mountain Volcanics. Iron King produced, during the period from 1907 until 1964, a total of 616,493 ounces of gold, 18,494,491 ounces of silver, 125,375 tons of lead, 367,569 tons of zinc and 9,551 tons of copper. This would amount to $2.6 Billion of production at January 2011 commodity price levels. It was operated by Shattuck Denn Corp. (a Phelps Dodge predecessor) from 1942 until 1968, the year in which the mine closed. The average grade of ore mined was 0.123 ounces of gold and 3.69 ounces of silver per ton, 2.50 percent lead, 7.34 percent zinc and 0.19 percent copper.
The Iron King Ore deposit consists of 12 veins arranged en echelon, striking N 22 degrees E and dipping 71 degrees NW. In plain view, each vein extends farther to the north than the adjacent vein to the east; the north end of the veins plunges northward. The width of the veins ranges from 1 to 14 feet, and the lengths are hundreds of feet. The veins consist of fine-grained massive sulfide containing pyrite, arsenopyrite, sphalerite, galena, chalcopyrite and tennantite, held together by a gangue of ankerite, quartz, sericite and residual chlorite. The north ends of the veins are almost exclusively quartz.
All of the veins are zoned and all in a similar manner. The north end of each one consists of massive quartz having sparse pyritic disseminations and ramifying veinlets. The quartz is commonly fine-grained, compact, gray to greenish in color, and almost chalcedonic in appearance. Locally, white bull quartz is associated as irregular patches or as vein like masses cutting the finer-grained type. The quartz has a sharp contact with the massive sulphide. This contact trends obliquely across the vein in a northerly direction and is more nearly vertical than the vein in cross section. In places the quartz contains sufficient gold and silver to be ore, and it may have a slight concentration of more granular galena near the contact with massive sulphides.
South of the quartz the veins are massive sulphide in which sphalerite and galena are the dominant ore minerals. The highest content of sphalerite plus galena commonly occurs some distance south of the quartz zone. Closely spaced assays show that in each of several veins the zone of higher lead and zinc content begins as a narrow stringer on the footwall of the vein and gradually migrates northward to the hanging wall, duplicating the pattern of the transition to the quartz masses at the north ends of the veins. In general, from the quartz southward the content of galena and sphalerite increases gradually to a maximum and then decreases gradually farther toward the south. There is a complimentary increase in pyrite content toward the south as the lead and zinc content decreases. The pyrite at the south end of the veins is more granular and commonly has a characteristic cubic form.
Farther south, the massive sulphide character of the veins grades into zones of quartz-pyrite stringers separated by thin schist partings containing granular, disseminated pyrite.
There are no major changes of the veins in depth. The zoning is similar in each vein on all levels, and the mineralogical and structural character of the veins is about the same on the upper and lower levels. However, the lead - zinc content of several of the more easterly veins diminishes on the 700 and 800 levels, but may increase with greater depth as in several of the other veins.
Workings included 2 shafts 750 feet apart at 435 feet and 225 feet deep, respectively; later, 7 shafts. Shafts 6 and 7 were hoisting shafts. The earlier shafts were used for ventilation (Nos. 1 & 5), emergency exits (No. 2) or were caved (Nos. 3 & 4). The No. 6 shaft is a two-compartment shaft, which extends below the 1200 level and was the primary working shaft. There were eleven levels, extending to about 1,140 feet below the collar of the shaft. The overall mining operation was some 2,600 feet deep vertically.
The Iron King Mine and the nearby Humboldt Smelter are currently included in a Superfund environmental cleanup site. None of the Company’s Kit Carson Silver Project area is included in the Superfund Site.
Mineral Deposits of Late Cretaceous or Early Tertiary Age
The mineral deposits of Late Cretaceous or early Tertiary age are largely gold – silver veins that are clustered about the granodiorite stocks of the same age that are exposed west of the Kit Carson Silver Project area. These are typical fissure veins, straight and narrow with well – defined walls. Quartz is the dominant gangue mineral, and it shows drusy and comb structures. Ankerite occurs in many veins, and barite is common where silver is the important precious metal; they include arsenopyrite, pyrite, sphalerite, galena, chalcopyrite, tetrahedrite and ruby silver.
The Mines of the Silver Belt-McCabe Vein
The Silver Belt-McCabe Vein runs for over two miles from immediately west of the Iron King Mine southwest to the Gladstone-McCabe Mine. In fact, The Silver Belt-McCabe vein has been traced as a continuous zone for about 14,000 feet (4.2 km) from a point about 1,500 feet WNW of the Iron King Mine southwestward. The strike ranges from N.65ºE. In the southern sector to N.30ºE. In the northern sector; the dip ranges from 70ºNW to 80ºSE; and the width ranges from 6 to 15 feet. The Kit Carson Silver Project includes approximately 3,000 feet of this vein system between the Iron King Mine and the Silver Belt Mine. An additional 3,000 feet on this vein between the Arizona National Mine and the Gladstone-McCabe Mine are also included in the Company’s land package. The Company’s total footage on this vein is approximately 6,000 feet.
The vein is almost entirely within the breccia facies of the Spud Mountain volcanics. Chlorite and probably some sericite, lying with their basal sections essentially parallel to the strike of the vein, characterize the fissile, sheared zone comprising the vein; whereas the wall rocks, especially those on the hanging wall (west side), are foliated but not fissile, and are characterized by actinolitic hornblende
The Silver Belt-McCabe vein system has been described by several authors. Silver and lead characterized the Silver Belt deposit on the northeasterly portion of the vein. In the Arizona National Mine, next to the southwest from Silver Belt, the content of lead and silver was lower than that in the Silver Belt, and the ore contained zinc and iron, chiefly as sphalerite and pyrite. In the Company’s Lookout Mine, next to the southwest from Arizona National, the ore was complex and contained silver, gold, lead, zinc, iron and copper. The Gladstone-McCabe mine at the south end of the vein also contained complex sulfide ore; the content of iron, copper and gold was higher than in the Lookout Mine, but the content of silver and lead was lower.
Historic production from the Silver Belt mine is reported to have a value of $330,000 and, from the Arizona National, $300,000. This was during the era when the gold price was $20 per ounce, so at a 2011 gold market price of $1,400 per ounce, these production figures would be approximately $23,000,000 and $21,000,000, respectively.
The Gladstone – McCabe Mine produced gold, silver, copper, lead and zinc having a value of about $3,000,000 during this same historic period (or approximately $210,000,000 at 2011 commodities prices). The average grade was 1.5 ounces gold and 10 ounces silver per ton, 2 percent copper, 2.1 percent lead and 4.7 percent zinc.
The age of formation of the Silver Belt-McCabe vein has not been definitely determined. It is generally considered to be Late Cretaceous or Early Tertiary based on radiometric dating of the granodiorite stock to the west of the project area.
Gladstone-McCabe Mine
The Gladstone-McCabe Mine adjoins the Kit Carson Silver Project to the southwest. It was discovered in 1866 and mining started in the early 1870's. The mine was reopened in 1898 and operated by the Ideal Leasing Co. until closed in 1913. The mine was reopened and ultimately closed in 1922. Thereafter the mine was reopened and un-watered in early 1934 by H. Fields & Associates and closed again in 1937. The most recent mining was by Stan West and Magma (now BHP) in 1988-1989.
Mineralization is a vein deposit with a tabular ore body hosted in the Spud Mountain Volcanics. The vein is in amphibolitic schist intruded by dikes of rhyolite porphyry and a distance farther SW, by a stock of quartz diorite. The vein averages 3½ feet wide with 5 ore shoots, each 200 to 500 feet long. Ore control was faulting and shearing. Ore concentration was oxidation and enrichment at near surface. No alteration was noted.
The vein is a series of lenses which are characterized by band and ribbon structure, the metallic contents being largely confined to the center of the vein. Open vugs lined with large crystals of quartz and arsenopyrite are common. Arsenopyrite with pyrite and chalcopyrite carry the values, which are largely gold with some silver. Galena is sparingly present.
Between the 2 shafts, a 20-foot wide dike of rhyolite porphyry intersects the schist with a northerly strike. The vein strikes N.54ºE. & dips 79ºSE. The ore contains quartz that is distinctly banded with sulfides in the center. Area structures include veins parallel to foliation in Precambrian rocks for the most part, which trends N25E.
Workings include the McCabe shaft (900 feet deep) and the Gladstone shaft (1,100 feet deep), 800 feet apart, plus several miles of workings.
The Kit Carson Silver Mine and Vein
The Company’s Kit Carson Silver Mine is a silver – gold – copper - lead mine on the Kit Carson vein, which is located about 1,500 feet west of the Silver Belt-McCabe vein. The mineral deposit was discovered in 1897 and was mined from 1907 until 1926.
The Kit Carson vein strikes parallel to the Silver Belt-McCabe vein, but has an opposite dip to the east and is hosted in the Lower Unit of the Spud Mountain Volcanics. The Kit Carson vein was traced on the surface for about 4,000 feet, but is somewhat longer, for its northern extent is overlain by the gravel of the Hickey formation in Lonesome Valley. The vein has not been adequately explored. It appears to resemble the Silver Belt-McCabe vein in structure, alteration, and character of the mineralized zone.
The vein consists of a sheared zone as much as 5 feet wide, characterized by fissile, sericitic rock in which local stringers of comb quartz and box work, possibly after ankerite, were observed. Mineralization is a 2 to 4 foot wide vein with well-defined wall rock. Ore control was faulting and shearing. Ore concentration was oxidation at near surface. Alteration was minor silicification. The Kit Carson vein is west of the Silver Belt-McCabe vein and dips N.30ºE. And dips steeply SE. Area structures include veins that parallel regional foliation, which trends N30E.
Workings include 8 shafts and prospect pits.
Potts Mountain Silver Exploration Properties
http://www.gncc-capital.com/PottsMountain.html
The Potts Mountain property consists of 40 acres of mining claims (two unpatented lode mining claims) in the Owens Mining District in southern Mohave County, Arizona. It is immediately north of the Company’s Ester Basin Gold property.
Potts Mountain has been described as a diatreme that was intruded into Precambrian gneiss of the upper plate of the Buckskin-Rawhide Detachment Fault. The mountain is ringed with mineral occurrences. Additionally, reconnaissance has revealed what appears to be a rhyolitic dome in the southern foothills of Potts Mountain, as well as possible barite mineralization.
The Potts Mountain Project includes the Lead Pill Silver Mine, which produced silver and lead, as well as the Red Top Gold Mine, which was an historic producer of gold and copper.
Lead Pill Silver Mine Mineralization at the Lead Pill Silver Mine and nearby adits includes blue-green and purple, 0.5 – 2 cm, subhedral to euhedral fluorite with subordinate manganese oxides filling fractures and open spaces. Hematite staining and sparse calcite are the youngest minerals, with minor copper oxides. The host rock is moderately to highly fractures, Precambrian, medium – grained biotite granite with sparse 3 – 4 cm potassium-feldspar megacrysts. Chloritic alteration of granite is moderate to strong.
Red Top Gold Mine At the Red Top Mine, there are quartz-fluorite-manganese oxides-copper oxides-barite along shear zones in a silicic, quartz-bearing, hypabyssal intrusive or a thick ash-flow tuff of middle to upper Tertiary age. In order of decreasing abundance, manganese, fluorine, copper and barium characterize the mineralization. A major mineralized shear zone at the Red Top Mine trends N 60 degrees W and dips 5 degrees NE. Quartz-barite-calcite veins and open space fillings are present in brecciated silicic volcanic or hypabyssal rocks within 200 meters of the Red Top Mine.
Silverfields Silver Exploration Properties
http://www.gncc-capital.com/Silverfields.html
The Silverfield Project is comprised of 80 acres of mining claims (4 unpatented lode claims) in the Owens Mining District in southern Mohave County, Arizona, immediately north of the Bill Williams River. The mine produced silver in both the 1940’s and the 1960’s, primarily from workings at Big Hill and North Star Hill, where an unmined silver resource has been reported to remain. There are shafts, adits and open cuts on the property.
There is also gold potential. Anschutz Mining did a preliminary drill campaign in the 1980’s, following up on high grade surface exposures of over 1 ounce per ton gold. The Company has acquired the Anschutz drill logs and assay reports, which include encouraging intervals.
The regional geological setting includes a number of detachment faults, which are associated with mineralization in both the upper and lower plates. At Silverfield, there is replacement silver and copper mineralization of upper plate quartzite and silicified limestone. In addition, there is hot springs type precious metal mineralization associated with sinter. There is widespread alteration including associated barite deposits. Sampling by the State of Arizona also reportedly found a vanadium occurrence on the property.
Initial exploration by the Company will focus on the reported silver resource, as well as compilation of the results from past exploration by Anschutz Mining.
THIS IS A VERY BRIEF OVERVIEW OF THIS EXPLORATION PROPERTY. DETAILED OVERVIEWS ARE BEING PREPARED BY AN INDEPENDENT GEOLOGIST ALONGSIDE THE COMPANY’S MANAGEMENT. CERTAIN INFORMATION HAS BEEN TEMPORARILY EXCLUDED FROM THIS OVERVIEW AS IT IS VIEWED AS “COMMERCIALLY SENSITIVE” FOR VARIOUS REASONS.
GNCC CAPITAL, INC. HAS OBTAINED THE CERTAIN OF THE FOLLOWING INFORMATION FROM THE PUBLIC RECORDS OF STATE GOVERNMENTAL AGENCIES AND IS SUBMITTING THEM IN THE INTEREST OF FULL DISCLOSURE. UNDUE IMPORTANCE SHOULD NOT BE GIVEN TO THESE MATERIALS, AS THEY ARE OF AN HISTORICAL NATURE AND MAY PERTAIN TO MINING PROPERTIES IN ADDITION TO THOSE PRESENTLY CONTROLLED BY GNCC CAPITAL, INC. THESE MATERIALS ARE PROVIDED “AS IS” WITHOUT REPRESENTATION OR WARRANTY BY GNCC CAPITAL, INC. AS TO THEIR CONTENTS.
GNCP SENIOR MANAGEMENT
http://www.gncc-capital.com/Management.html
Nicolaas Edward "Ted" Blom, President & Chief Executive
Mr. Blom has over 25 years of experience in mining and energy, with expertise in structured finance, commercial and legal transactions and business development. He holds Bachelors of Commerce and Bachelors of Jurisprudence degrees from the University of Port Elizabeth (n/k/a Nelson Mandela Metropolitan University), a Masters of Business Administration degree from Witwatersrand University, Johannesburg, and Republic of South Africa and is a Chartered Secretary of the Institute of Chartered Secretaries and Administrators, London. Mr. Blom also completed the Harvard Business School Program for Management Development and a Diploma in Mineral Economics from Imperial College, London. Mr. Blom is a member of the Association of Mining Analysts in the United Kingdom.
Mr. Blom’s business experience includes strategic advisor and consultant to global hedge funds and private equity funds on investments in energy and mineral plays. His testimony at the relevant national regulator as an expert independent Expert in mining and energy resulted in numerous television, radio and press interviews. Mr. Blom is currently mandated to execute capital raising, structuring and implementation of projects in Africa exceeding $20 billion. Mr. Blom has consulted and explored projects and proposals involving most minerals found on the African Continent, including Gold, Nickel, Silver, Platinum, Manganese, Aluminum, Coal, Graphite, Diamonds, Titanium and Chromium. He has also been involved with assessments of industrial minerals.
In recent years, Mr. Blom assessed that Southern Africa would require more than 20 new coal mining projects in order to avoid another energy Blackout in the region. This number has since been confirmed by the regulators, with little progress. Mr. Blom also conducted initial feasibilities on Coal – Bed Methane (CBM) and Underground Coal Gasification (UCG) projects on a large scale to complement the current energy mix in Sothern Africa. This has the potential to generate an additional 20GW of electricity within a 24-30 month horizon, provided legislators approve. As a strategic advisor to Eskom, Mr. Blom identified and highlighted significant opportunities for savings in capital expenditures in the billions of dollars. He has conducted numerous successful global transactions as a strategic advisor to a South African merchant bank, capital raising for a new technology project in the commodities coal sector, and capital raising for mining and energy projects including Black Wattle Colliery, and a major new Platinum & Palladium project in Africa. In addition Mr. Blom often facilitates commercial transactions between Commodity buyers and sellers.
Mr. Blom was a co-founder of Kwezi Mining Company, a junior coal mining company which subsequently became Rio Tinto's development arm for major transactions in Southern Africa. Mr. Blom served on the Board of Directors of Kwezi Coal Ltd., as well as Kwezi Mining Ltd. Mr. Blom was also an independent advisor to Eurocoal, another junior coal miner. While at Eurocoal, Mr. Blom was instrumental in doubling pre-tax profits, with a resulting significant increase in market value. Previously, Mr. Blom conducted and participated in numerous global proposals, evaluations and exercises, including capital raising material and strategic communications to transform and propel General Mining Ltd into the world's largest listed mining house, BHP Billiton.
He also initiated, strategized and implemented a contractual clean-up which released millions of dollars to facilitate the turnaround of Tran-Natal Coal Corporation from loss making to a profitable division of General Mining Ltd.
Mr. Blom has been awarded numerous bursaries and awards for excellence that paved the way to continuing education, the most recent being an Eskom Award & Prize in 2008. He was appointed Judge for Africa Energy Awards 2009 and Chairman for African Mining Congress 2010. Mr. Blom has been invited to Judge the Africa Energy Awards in 2012. In his spare time Mr. Blom lectures globally on the accelerated “MBA in Mining” series and has been booked for 19 lectures all over the Globe for 2012.
Ronald Yadin Lowenthal, Executive Chairman Mr. Lowenthal is a specialist in Corporate Finance, in the structuring of IPO's and in fund raising for Mining Exploration Companies. From 1999, Mr. Lowenthal was a founding director of Incentive Holdings Ltd. and Incentive Securities Limited a South African based Financial Services Group. From 1982 to 1999, Mr. Lowenthal served as a financial consultant and as the compliance officer to family owned, Lowenthal & Co, a South African based Stock Broking, Corporate Finance and Fund Management company specializing in obtaining mining concessions for exploration, and obtaining and assisting a significant number of Mining and other companies with their obtaining quotations on the Johannesburg Stock Exchange. In 1971, Mr. Lowenthal earned a Masters of Business Administration degree from the Wharton Graduate Division, University of Pennsylvania, USA and in 1969 earned a Bachelor of Arts (Hons) degree in International Relations from the University of Sussex, England.
From 1972 to 1979, Mr. Lowenthal served as an International Merchant Banker with Scandinavian Bank in both London and in Singapore, Amex Bank in both London and in Hong Kong, Rothschild Intercontinental Bank in both London and in Hong Kong and with European and American Bank in New York. From 1979 to 1981, Mr. Lowenthal was involved in Diamond Mining and in Diamond Trading on an International basis.
Mr. Lowenthal's experience in mining goes back to the early 1970's, when he was working in Sierra Leone, Guinea and Burkina Faso and obtained mining concessions in gold and diamonds in these countries. Mr. Lowenthal resumed his interest in West Africa in 2006, when he was requested by an international mining company to obtain a uranium concession. As a result of this activity, Mr. Lowenthal established an office in Dakar, Senegal and Nouakchott, Mauritania and has actively pursued concessions in Senegal, Mauritania and Guinea. These activities extend from gold to iron ore, chrome and uranium. The Lowenthal family has been involved in mining activity in South Africa, Guinea, Senegal, Mauritania, over many years and, when Mr. Lowenthal returned from Asia to South Africa in 1982 when his family and others gained control of Johannesburg Mining Finance Limited, which became Consolidated Mining Corporation. This group specialized in gold and diamonds.
The Company has created an Advisory Committee to consult with the Company’s Board of Directors and Senior Management. They do not have any fiduciary duties and are not members of the Company’s Board of Directors.
The initial two members of this Advisory Committee are:
MR. BEN B. “BARRY” STEIN
Barry Stein has 43 years of securities industry experience. He was a member of the Chicago Board Options Exchange for over 15 years acting as a Floor Broker, Market Maker. Mr. Stein represented 165 member firms while acting as a floor broker. He was the President of the CBOE Independent Floor Brokers Association and was instrumental in introducing conversions and reversal arbitrage to the members of the exchange and to the proprietary trading departments of the major wall street brokerage firms which he represented on the CBOE floor. Mr. Stein was also a member of the Chicago Board Trade. Mr. Stein was Chairman of the Board of a Public Internet Company which assisted the Wall Street community in Intranet service to their many Branches throughout the world.
Mr. Stein was also a Partner of a NYSE Member firm providing Institutions Option Strategies for their hedging needs. He also presented to the Chicago Securities community a new system of rapid data which enhanced trading and updating of key indexes. This system was used by Broker Dealer's clearing and Floor members of the CBOE, Chicago Board of Trade Mercantile exchange and the Midwest Stock Exchange.
His experience covers option arbitrage, common stocks, commodities and other investment instruments.
Mr. Stein was Chairman of the Board and CEO of a FINRA Member firm with 5 Branch offices and a total of 300 Registered Representatives. This Broker/Dealer made markets in OTC stocks, Member of Underwriting Group, Private Placements, provided research and other investment products.
Mr. Stein has specialized primarily in emerging growth mining and resource stocks for the last 12 years.
Mr. Stein is a Graduate of Roosevelt University with a Bachelors of Business Administration in Accounting. He also attended John Marshall Law School and held FINRA Licenses 3, 4,7,8,24,27 and 63.
Mr. Stein spent several years teaching students to prepare for FINRA exams in series 4,6,7,24,27,63,65 and 66.
Mr. Stein also held a CPA and Life and Health Licenses. He is also a Multi-Engine, instrument rated Pilot and is a former member of the Thoroughbred Appraisers of America. Mr. Stein was also a Licensed Thoroughbred Appraiser in the State of Florida and represented Domestic and Foreign clients in this area. In addition he was an accomplished equestrian in the Hunter Jumper arena and actively participated in jumping horses over fences in the Midwest area. Mr. Stein has also been actively involved in the Thoroughbred Industry for 45 years in Breeding, Raising, Commercial Selling and Racing of his Thoroughbred blood stock. In 1989 he was the 4th leading breeder in the State of Illinois.
Mr. Stein served his country for 7 years in active and reserved duty in the United States Air Force. Mr. Stein is also an accomplished musician playing Eb Alto Saxophone in his early years on a weekly program for an ABC affiliate in Salt Lake City. He also accompanied my Rock& Roll stars during the late 50's.
Mr. Stein had the privilege of introducing Senator Bill Bradley of New Jersey to the Securities industry in the City of Chicago. He was also active in the campaign of the Senator in his quest for the Presidency of the United States.
MR. JACK REYBOLD
Jack Reybold is 71 Years Old and has spent 45 Years Arbitrage trading including Risk Merger Arbitrage, Convertible Securities Arbitrage, and extensive option equity arbitrage trading. In addition, extensive experience in distressed securities (junk bonds and preferred stocks) and many years of investing in small emerging growth stocks.
He has had 21 Years’ experience at Major Stock Exchange firms beginning in Jan 1966 including Lazard Freres, Neuberger & Berman, Reich & Tang, Donaldson Lufkin, Faulkner Dawkins, and 3 years as Senior Vice President and Co-Manager and Manager of Shearson Loeb Rhoades Arbitrage Department. While at Shearson the Arbitrage department was 3rd most active option trading firm on the Chicago Board Options Exchange, and American Stock Exchange.
He has had 24 Years’ experience engaged in Arbitrage, equity, distressed securities and emerging growth stock equity investing at private hedge funds and smaller member firms.
Jack has extensive experience in many areas of the Equity, Bond, and Commodities markets, utilizing both technical and fundamental tools, and closely follows market analysis, market views, and specific company analysis in such memberships as the Oxford Club (Chairman’s Circle) and Stansberry & Associates both in Baltimore, Maryland. Jack spends a portion of each day alerting associates of current and changing market conditions and important levels reached or breached. Jack also follows closely the gold and silver markets especially support and resistance levels including the fundamental and technical cases for both.
Jack attended Colorado State University and graduated in B.S. Business and Finance. Jack served in the U.S. Army 1961 – 1964 and was primarily stationed in Wurzburg, Germany. His hobbies include Dry Fly Fishing, Photography and has a strong interest in Gold & Silver Coins
GNCP CONTACT:
http://www.gncc-capital.com/Contact.html
GNCC Capital Corp.
244 5th. Avenue, Suite 2525
New York, N.Y. 10001
Telephone: 954-357-0740
Corporate Enquiries: corporate@gncc-capital.com
Investor Enquiries: Investor@gncc-capital.com
Directors' Address:
Renasa House
170 Oxford Road
Melrose, Johannesburg,
Gauteng 2196
Republic of South Africa
Transfer Agent
Madison Stock Transfer, Inc.
1688 East 16th Street,
Suite 7
Brooklyn, NY 11229
Madison Stock Transfer, Inc. is registered under the Exchange Act and is an SEC approved Transfer Agent. The regulatory authority of the Transfer Agent is the SEC.
Attorney:
Alex Stavrou
334 S. Hyde Park Avenue
Tampa, Florida 33606
As associated Counsel to:
Securus Law Group, P.A.
13046 Racetrack Road, Number 243, Tampa, Florida 33626
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