The Emigrant Creek Project

The Emigrant Creek Project contains several targets within a fifteen square kilometer area owned or controlled by Lucky Minerals. The project area is located in the center of a large core of highly mineralized and intensely altered geology known as the Emigrant Mining District, which is part of the Absaroka-Gallatin volcanic field that covers an area of 23,000 kilometers and is the largest Eocene volcanic field in North America, and follows a northwest trending pattern  for over 250 kilometers from west-central Wyoming to Livingston, Montana.

Five Zones within the project area have been explored by various methods over the years and have been identified as highly desirable target areas for further exploration by the company. These target zones are known as St. Julien, DUV, Allison, Base Metal, and Emigrant Creek. Analysis of the work completed to date indicates that ten highly mineralized breccia-pipes are part of the same mineralization event and are zoned from a molybdenum rich core through copper gold to copper silver on the outer edges of the central area.

St. Julien Zone

The St. Julien Target zone was first identified in 1885 and has a history of sporadic production up until 1903. It is estimated that 395 ounces of gold were produced between 1901 and 1903. The area contains the major mine workings in the Emigrant Mining district. The St. Julien is covered by 9 patented mineral claims under option to Lucky Minerals. Underground workings at the St. Julien target consisted of twelve adits (total length about 320 meters (1,060 feet)) and three shafts.

Mineralization appears to be confined to a north east trending shear zone that is approximately 400 meters wide and at least 900 meters in length. Workings to the south east on Huckleberry Gulch are also on a highly sheared north east orientated zone, which may be the continuation of the St. Julien zone. If true this would double the strike length to 1800 meters. The original rock composition in the area is difficult to ascertain due to the wide spread argillic alteration that has destroyed original textures.

A total of 27 holes have been drilled on the St. Julien mineralized zone, 5 holes by Duval 1973 and 22 reverse circulation holes by Pegasus in 1992. Analysis of the drill results indicates potential for a thick zone grading 1 to 2 gms/T gold and 0.10 to 0.3 % copper. Of the 27 holes, 19 intersected significant gold +/- copper mineralization. The drilling indicates that at higher elevations the wider overall zone breaks into discrete zones/veins that were mined, lower down a stockwork starts to appear resulting in thick intersections of interest, which have not been explored.

DUV Target Zone

The DUV Target Zone is a major center of porphyry style alteration in the Emigrant District and is located in the East Fork of Emigrant Creek. Mineralization in DUV Target Area is associated with hydrothermal breccia, strong silicification, and quartz-sericite-pyrite alteration all of which are related to development of the irregularly-shaped DUV breccia pipe. Mineralization also appears to be related to the later-stage quartz monzonite porphyry and quartz monzonite dykes intruded into the dacite porphyry of the Emigrant stock. Gold mineralization is associated with the breccia pipe as well as with later-stage quartz monzonite and quartz monzonite porphyry dykes.

Drilling and mapping by Pegasus in 1991 and 1992 indicate that the Emigrant quartz monzonite stock in the DUV area probably extends at depth in the subsurface from the East Fork of Emigrant Creek to the north of the Allison Tunnel area and probably as far north as the Peter Pear Target Areas described below. The better grades of gold mineralization, including significant drill intercepts > 0.1 oz gold/ton in several holes, occurs at the intersection between the breccia pipe and a relatively flat-lying to moderately south dipping zone between elevations of 8,100 and 8,800 feet. The relatively flat-lying mineralized zone may represent a boiling zone within and adjacent to the breccia pipe which appears to be steeply dipping. Mineralizing fluids appear to have come up through the breccia pipe and followed the contact between dacite porphyry and a less porous welded tuff. The projected contact of the dacite porphyry with the overlying welded tuff appears to be particularly favorable for gold deposition. The mineralized copper-gold zone, so far as known, ranges to as much as 500 meters (700 feet) in thickness with a horizontal expression approximating 750 meters x 800 meters (800 feet by 1,200 feet). Within this zone, gold mineralization with associated copper, with a tenor of greater 0.03 opt occurs in drill intercepts as much as 132 meters(434 feet) thick.

In 1971, Duval Corporation, Inc. contracted with Geoterrex, Ltd. Inc. to conduct Induced Polarization geophysical surveys along two crossing lines, each more than 1.5 miles long and centered on the junction of Emigrant Creek / East Emigrant Creek center of hydrothermal alteration. The locations of the geophysical lines are shown on Figure 26 (main body of report). In 2007, NewEdge Gold contracted with Carlson Geophysics of Missoula Montana to reinterpret the historical Induced Polarization surveys and refine the Induced Polarization / Resistivity data that was collected in 1971 using more advanced computer techniques than were available at the time the data were collected. The reinterpretation resulted in extremely high chargeability anomalies that likely indicate sulfides and associated mineralization in the survey area and are areas to be focused on for mineral exploration. A southwest-northeast oriented Line (Line #1) shows a very high chargeability anomaly over the upper East Fork of Emigrant Creek in the vicinity of the DUV and St. Julian Target Areas. A north-south oriented Line (Line #2) also shows two very high chargeability anomalies, one is located east of Emigrant Creek and is approximately centered between the Allison Tunnel and Great Eastern breccia pipes. Thus the surveys identify known and new target areas in both the Emigrant creek and East Fork of Emigrant Creek areas.

Allison Zone

The Allison Tunnel molybdenum bearing intrusive breccia pipe occurs to the southwest and adjacent to the DUV target area and was one of the principal areas of underground workings development along Emigrant Creek. The Allison breccia pipe itself appears to be small, about 45 meters (150 feet) in diameter (Pfau 1981), However the breccia is surrounded by a mineralized stock work of molybdenite bearing veins at depth turning to copper–molybdenum bearing veins near surface.

Alteration in the Allison Tunnel area is similar to that of the DUV Area and this pipe is probably part of the same Copper-Molybdenum System (Green 1976). Modeling shows that from the top of DUV mineralized zone to the molybdenum bearing intersection in hole 73-01 is a vertical range of 900 meters, which gives an indication of the size of the zonation on the system. A low angle easterly dipping fault with breccia is inferred on the slope above the Allison Tunnel and this-fault may host the molybdenum-bearing breccia zone reported from underground in the Allison Tunnel (Harrison 1990).

A hole drilled in 1973 by Duval intersected the breccia zone at a depth of 300 meters below the Tunnel and intersected 73.2 meters grading 0.112% MoS2. Pegasus drilled holes DU92-16 and 17 angled at – 45 degrees to the north and south respectively from a pad south of the Allison workings. The holes intersected strong stockwork mineralization with copper and molybdenum, DU91-16 intersected 50.3m (165 feet) grading 0.031% MoS2 and 0.21% copper in the copper-molybdenum zone of the breccia above the Allison Tunnel. Gold assays were low, as expected as gold is not expected to be present in the well-developed hydrothermal breccia and stockwork molybdenum mineralized zone.

Peter Pear Zone

The Peter Pear zone is poorly exposed in a scree covered avalanche chute about 0.8 kilometers (0.5 miles) upstream of the Base Metal breccia pipe on the east side of Emigrant Gulch. Although poorly exposed, workings are developed in a brecciated shear zone and are likely associated with a breccia pipe near the contact of a quartz monzonite porphyry dyke with the dacite porphyry of the Emigrant Stock. The US Geological Survey collected 27 samples principally from waste rock dumps in the Peter pear area that contained a maximum of 0.05 opt gold (1.71 gms/T), 32.3 opt Silver (1,107.4 gms/T), 0.4% copper and 0.102% molybdenum.

Two holes were drilled by Pegasus (DU- 91-14 and DU-91-15) from a single drill pad in the Peter Pear area. Drill and surface mapping by Pegasus (1993) indicate that the Peter Pear breccia pipe is centered on at least one and probably two intrusive masses that are on the order of several hundred feet thick and consist of altered quartz monzonite porphyry with abundant intrusion breccias. Hydrothermal brecciation is widespread in drill core. Assay data from hole DU91-14 reported 18.29 meters (60 feet) of 0.225% copper and 78 ppm (0.0078%) molybdenum from the 21.34 to 39.62 meter (70-130 feet) interval in the hole.

Base Metal Zone

The Base Metal Target Zone is one of ten (10) breccia pipes located in the Emigrant District. The zone is located in the Emigrant canyon bottom at an elevation of 2100 meters (6880 feet). Underground workings at the base metal target consisted of four adits (total length about 91 meters (300 feet) and a 15-meter (50 foot) deep shaft. Samples of mine wastes collected by the U. S. Geological Survey averaged 1.65 opt silver (56.57 gms/T), 0.25% copper, 1.61% lead and 0.67% zinc.(USGS 1983). Several shallow holes are reported with good silver and copper credits. Data from core drilling by Pegasus, hole GE92-1 had an overall average grade of 0.343% copper, 0.796 opt silver, 0.006 opt gold over its entire depth 179 meters (588 feet). Lead and zinc were also observed but not assayed.

Emigrant Peak Zone

The Emigrant Peak Target Zone is one of two major hydrothermally altered centers related to the multiphased intrusive of the Emigrant Stock. This target area is located in the core of the Emigrant District on the eastern slope of Emigrant Peak near the western contact of the Emigrant Stock. The target is a distinct center of alteration and sulfide mineralization (pyrite is estimated at 2-5 % of the total rock mass). The alteration/mineralization of this system is manifested as a triangular-shaped strongly hydrothermally altered area approximately 1,463 meters (4,800 feet) on a side. The yellowish-red-brown color of the anomaly results from jarosite-limonite alteration of sulfides in the rock (Green 1976).

Sulfide mineralization is distributed as both dissemination and as a widespread network of veinlets, and quartz-pyrite veinlets are common and pervasive in the central core area. Other sulfides include chalcopyrite, molybdenite and galena; and in addition, chalcopyrite, chalcocite and covellite occur disseminated and in narrow stock-work quartz veins. Sulfide minerals are zoned from a copper sulfide-molybdenite core, outward through a zone of pyrite-chalcopyrite and further outward to a halo of sphalerite and galena.

In 1971, Basic Metals, Inc. contracted with Applied Geophysics Inc. to conduct Induced Polarization geophysical surveys over the Emigrant Peak Target Area. In 2006, NewEdge Gold contracted with Carlson Geophysics of Missoula Montana to reinterpret the historical induced polarization and refine the Induced Polarization / Resistivity data that was collected in 1971 using more advance computer techniques than were available at the time the data was collected. The reinterpretation found extremely high chargeability anomalies that likely indicate sulfides and associated mineralization in the survey area and are areas to be focused on for mineral exploration.

The Emigrant Peak Target Area exhibits a number of characteristics that indicate it is a prime target for porphyry Cu-Mo-Au mineralization. A distinct alteration and color anomaly resulting from sulfide oxidation exists on the eastern flank of Emigrant Peak where the Emigrant stock is in contact with adjacent volcanics. Finally, the geophysical anomalies identified in the Emigrant Peak Target Area are very supportive of a porphyry system of alteration. The only drill hole in this area was a deep hole drilled by AMAX in 1963 and was not oriented properly to test this target area.