Governmental Controls and Approvals
We have applied for and received permits from the BLM to conduct drilling activities on BLM administered lands within the New York Canyon Project. The BLM reference the property as case file NV N-79198. We have also applied to the BLM for permits to conduct drilling on the Moonlight Property.
New York Canyon Project
In late 2012, subject to obtaining financing, we plan to drill test the oxide mineralization found to the north and northeast of the Longshot Ridge deposit. This represents the initial stages of Phase Two of our exploration program on the New York Canyon Project.
Moonlight Property
In spring 2012, we conducted a preliminary assessment of the Moonlight Property, which involved a detailed review of all historical data on the Moonlight Property. Based on the results of this preliminary assessment, we have decided to commence a shallow reverse drill program at the Moonlight Property. The drill program is scheduled for late 2012 and will target the copper oxide deposit on the Moonlight Property. We anticipate that the drill program will cost approximately $250,000.
As at June 30, 2012, we had cash of $715,907.
For the next twelve months, management anticipates that we have sufficient funds to meet our annual claim payments, implement our geochemical sampling program on the New York Canyon Project and meet the costs associated with our ongoing reporting obligations. However, we will require additional financing in order to implement the shallow reverse drill program on the Moonlight Property and the proposed test drilling program on the New York Canyon Project.
Current Exploration Program
We are in the process of completing a two-phase exploration program to effectively test the New York Canyon Project.
Phase One
Phase One of our exploration program involving the following activities:
re-analysis of 2006 Longshot Ridge drill pulps, duplicate samples, blank samples and standards by an independent laboratory to determine the correct copper values;
acquiring representative mineralized material at Longshot Ridge for metallurgical testwork samples to determine the optimal copper beneficiation process;
initiate environmental base line studies for permitting advanced exploration.
Re-Analysis of 2006 Longshot Ridge
In March 2012, we completed the re-analysis of 33 drill holes from the 2006 Longshot Ridge program. The 33 drill holes in 2006, comprised of 26 reverse circulation holes totaling 8,818 ft (2,688 meters) and 7 HQ core holes totaling 2,805 feet (855 meters), were not included in the 2010 resource estimate due to extremely high variability in the duplicate, blank and standard check samples.
Geochemical Sampling Program
In summer 2012, we commenced a geochemical program to cover the considerable area of the New York Canyon Project with a survey of arroyo/stream sediments. The purpose of the survey is to assess the potential for areas of mineralization that may be associated with the several areas of old prospects and workings within the claims. We anticipate that this exploration will take approximately six months to complete for a total cost of $125,000.
Environmental Base Line Studies
In the event that we proceed with Phase Two of our drilling program, we will need to complete our proposed environmental base line study. We anticipate that the environmental base line study will cost approximately $55,000.
Phase Two
The estimated costs of the Phase Two program are detailed in following table and include:
definition drilling, permitting and scoping studies designed to advance the Longshot Ridge project to a pre- feasibility stage;
drill-testing geophysical targets generated from the IP survey and other geological targets in the Copper Queen and Champion areas;
continuation of metallurgical testwork to refine the optimal copper beneficiation process for completion of a pre- feasibility study.
Analyses $ 450,000
Drilling $ 1,550,000
Equipment and Supplies $ 65,000
Environmental $ 30,000
Field Supplies and Support $ 145,000
Geological Mapping $ 20,000
Labor $ 180,000
Metallurgical Testing $ 65,000
Management Fee $ 200,000
Contingency $ 295,000
Total $ 3,000,000
