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Andover’s 100 % owned Bulk Gold property consisting of 465 hectares in the historic Nome Mining District, 16 km north of Nova Gold’s 1 million ounce Rock Creek Deposit, located 22 miles north of Nome, Alaska and 1.5 miles west of the Nome-Taylor highway. Access to the property from the highway is via and established ATV/tractor trail.
The Nome Mining District, one of the giant placer mining camps of North America with past production and present reserves of over 5.5 million troy ounces of gold. In the area surrounding BULK GOLD, a number of small placer mining operations have operated since gold was first discovered in the early 1900's. Several creeks draining the area have reported placer gold production, including Dorothy Creek, Dahl Gulch, Hobson Creek, Lost Creek, and Manila Gulch. Production records are spotty, but it is probable that cumulative production from the drainages approaches 50,000 troy ounces. A few lode gold mines in the district also produced small amounts of gold. The inactive Hed & Strand lode gold-antimony mine on patented ground lies adjacent to BULK GOLD. The Hed & Strand is located on the south bank of Dahl Gulch, a tributary of Lost Creek (B54 on Plate 4 and Figure 1)
Recent exploration in the Nome district has begun to identify lode sources of the placer deposits (e.g. Nova Gold Resources* 1.1M oz. Rock Creek deposit, and Lajack Minerals Divide prospect). Altar Resources believes that the favorable geology and geochemistry of the BULK GOLD property suggests the possibility of a significant lode gold discovery upon further systematic exploration.
Placer gold was found on a number of tributary creeks of the Nome River shortly after the original strike on Anvil Creek in 1898. In 1909 the Hed & Strand lode was discovered. It consists of about 1200 feet of underground workings on a stibnite-quartz-pyrite-arsenopyrite vein structure that strikes N55-65 degrees east and dips 50-60 degrees northwest. Production reports state 106 tons of antimony ore was produced and shipped in 1915-1916, but records also indicate considerable gold and silver values were present in the hand cobbed ore as well. Mining probably was as much directed at gold as antimony. Assay results from underground sampling in the 1900's and later in the 1950's suggests that individual vein structures averaged around 0.3 opt gold over vein widths of 1.5 meters. USGS geologists indicated the Hed & Strand lode is close to a schist-carbonate contact near a granitic intrusion.
In 1987, West Gold a subsidiary of Minorco staked a large land position in the northern Nome mining district encompassing what is now the BULK GOLD property. However, the claims were abandoned without exploration when West Gold ceased operations of their gold dredge off the coast of Nome the following year.
The BULK GOLD property was initially identified by Altar Resources' geologists in 1992 on the basis of highly anomalous gold-arsenic-antimony values in stream-sediments. Two samples (-200 mesh) draining opposite sides of a ridge in the center of the prospect .area returned 410 ppb gold plus 17,000 ppm arsenic, and 750 ppb gold plus 2,500 ppm arsenic.
Between 1993 and 2001, Altar Resources collected over 400 soil samples and approximately 50 rock-chip samples from the BULK GOLD property. Several large gold, arsenic, and antimony soil anomalies are identified (Plates 1-3). During 1998-1999 Altar Resources excavated a series of hand dug test pits and drilled five shallow "Winkie" core holes totaling 389 feet, following up on anomalous sampling from previous years. The most encouraging drill hole BGDDH-3 intersected 45 feet averaging 0.78 g/t gold.
In year 2000 Altar Resources optioned the BULK GOLD property to Consolidated Aston Resources Inc. In that year Consolidated initiated a drilling program but was unable to accomplish its exploration goals due to financial difficulties. Consolidated did complete three shallow (less than 270 meters total).core holes to test bedrock in the vicinity of two soil anomalies. Significant gold mineralization was encountered in BG-l (48 feet of 0.58 g/t which includes 25 feet of 0.9 g/t. This hole twinned Altar's BGDDH-3 targeting the central portion of a 1500 foot long by 300 foot wide multi-element (Au, As, Sb) anomaly.
During the year 2001 Altar Resources discovered the "Dripping Gold Zone". This zone is a 1400 foot long gold in soil anomaly along the southern flank of a stream eroded gulch. This gulch is a window in domed carbonates (marbles), exposing a contact with mineralized schist below. A very conspicuous red-orange color anomaly exists in the soils for the entire length of the poorly exposed contact. Soil samples were collected every 100 feet along the color anomaly. Soil samples assays ran as high as 4,271 ppb (4.1 g/t) gold and averaged 998 ppb for 1300 feet. Additional soil samples were collected in year 2002 with values as high as 5350 ppb (5.1 g/t) and > 10,000 ppm arsenic. A float sample of silicified arsenopyrite bearing intrusive rock from this zone assayed 4.5 g/t gold. Another float sample from the same gulch assayed 1.5g/t Au, >200 ppm Ag, and 388 ppm Bi.
Stratigraphy
The Nome mining district is generally underlain by regionally metamorphosed quartz rich pelitic schist, mafic schist, impure marble, and marble. These rocks make up the Nome Group of Precambrian-Paleozoic age.
Despite poor outcrop exposure and structural complexity of the Nome Group in the area of the BULK GOLD property, a simple stratigraphic section appears to be mapable throughout the property. Exposures of less resistant pelitic rocks are extremely rare and can usually be found only in rapidly eroding creek beds or as slumped rubble crop. In contrast, massive carbonates and granoblastic, quartz-feldspathic gniesses (meta-granites of the USGS) form prominent linear belts of outcrops, often along ridgelines. Slopes and valleys are typically covered with low vegetation and are commonly float-free tundra, (references Bundtzen, Hummel, Dail)
Granoblastic Schist
Resistant, dark gray brown to light brown-gray, equigranular, granoblastic-textured, quartz-feldspathic + micaceous gniess is found as large circular to lenticular ice polygon fields throughout the area. Some of these rocks are essentially devoid of micas, relative coarse-grained, compositionally quartz + feldspar + trace amphiboles and resemble metamorphiosed megacrystic granitoids. In the central part of the map area units of granoblastic gniess range from 5-20 meters thick and average about 15 meters thick.
Massive Blue Gray Carbonate
Fine- to medium-crystalline, dense, massive- to thick banded, chalky-white gray marbles form prominent ridge top outcrops throughout the prospect area. These units are quite distinctive and serve as excellent marker horizons and outline the shapes and orientations of the major folds mapped in the area. The variable thickness of these units is probably related to larger scale flowage along these folds.
Foliations
Because of the metamorphic overprint and the limited and erratic outcrop patterns in the area, it is difficult to determine with much certainty primary bedding trends and structural domains. Foliation in outcrop is generally interpreted to be primary composition banding if there are obvious interlayers of rocks with highly contrasting mineralogical character. There is strong penetrative metamorphic fabric sub-parallel to primary compositional banding. In most cases the dominant metamorphic foliation is slightly shallower than the primary compositional banding, possibly related to unmapped thrust or detachment faults.
Folds
Several large-scale folds and faults have been mapped in the prospect area. The largest folds are broad, open, upright folds with wavelengths on the order of 500-700 meters and axial planes trending approximately north 60 degrees east with gentle- to moderate- northeasterly plunges ranging from 10 to 40 degrees. Limb dips appear to be in the 20 to 40 degree range. There is local evidence for significant thickening of some of the ridge forming carbonates units, suggesting recrystalization and flowage of these units.
NW-NE Set—a strong north 10-15 degrees west set is located in the western part of the prospect area in the northwestern quarter of section 14. There is no evidence of lithologic offset, alteration or mineralization along this linear NE-NW Set—another structural domain of linears, possibly more pervasive and significant as related to mineralization, trends roughly north 25 degrees east to north 45 degrees east. Several of these photographic and topographic features correspond to mapped faults exhibiting displacement and in several cases strong geochemical and field evidence of alteration and mineralization. A large, prominent linear through the northwest corner of section 14 may mark the trace of or be related to an underlying structure (B36 and B37 on Plate 4). It appears to mark abrupt lithologic boundaries. Also, on its southwestern and northwestern ends it is associated with iron carbonate alteration plus Au-As-Sb mineralization along with brecciation in the central part. Another northeast trending structural zone corresponds to the trace of historical underground workings at the Hed & Strand lode Sb-Au mine. A long, but subtle, approximately north 43 degree east-trending photographic and topographic linear marked by the alignment of small saddles, gullies and geochemical anomalies is located in the southeast corner of Section 14 (B14-B15 on Plate 4). This feature can be identified on aerial photographs and in the field as distinctive, orange-brown to brown-red color anomalies that correspond to areas of sulfide alteration in schistose rocks cropping out along the trace of the linear. A strong gold, arsenic soil geochemical anomaly is spatially associated with the linear for at least two kilometers
E-W Set—several east west trending photographic linears are present in the central portion of the prospect area. The features located north of B36(Plate 4) corresponds to a strong, red-brown color anomaly associated with a broad zone of iron carbonate alteration and Sb-Au mineralization. Abundant iron stained quartz float is present suggesting that the feature may relate to a sulfide-bearing quartz vein or vein system. An east-west to east-northeast trending photographic linear (B38 on Plate 4) is present near the plunging nose of a small north-northeasterly plunging fold. A sub-parallel east-west linear is present several hundred meters to the south (north of B44 on Plate 4).
It is well established that sediment hosted, intrusion-related gold deposits are among the largest gold deposits in the world, (e.g.Muruntau >140 M oz, Sukoi Log 80M oz, Telfer 48 M oz, Donlin Creek23 M oz, Fort Knox 4.5 M oz, Pogo 5 M oz, etc.).
Characteristics similar to known intrusion related gold deposits at BULK GOLD include: a) the occurrence of low grade metamorphic rocks (greenschist facies metasediments) that have been intruded by felsic to intermediate intrusive rocks, b) possible domal features that suggest a larger intrusion may be present at depth, c) evidence of both high and low angle faulting which can act as conduits for mineralizing fluids as well as structural traps for the deposition of gold with silica, d) highly anomalous gold, arsenic, antimony, bismuth in soils and rocks.
Gold in Bedrock
Gold mineralization at BULK GOLD can be categorized into four distinct styles:
1.) Discordant, high-grade, high angle quartz-stibnite-arsenopyrite-gold bearing quartz veins. The Hed & Strand lode, which is adjacent to BULK GOLD is an example of that style of mineralization. The lode consists of two parallel quartz veins up to four feet thick with reported grade of 0.3 ounces/ ton in the quartz. High grade pods of pure stibnite occur unpredictably along the veins. This vein set strikes NE and dips to the NW. The projected extension of the Hed & Strand vein set along strike is a potential target on the BULK GOLD Property. Other parallel to sub-parallel auriferous veins may occur with the Hed & Strand lode but have not been discovered in the absence of drilling, A grab sample from off of the H&S dump returned 0.5 ounces/ ton.
2.) Strataform, possibly strata-bound, disseminated gold mineralization that appears at or near schist/carbonate (marble) contacts. This style of gold mineralization has been intersected on the property in drilling. Hole BG-1 intersected silicified, arsenypyrite, -/+ stibnite, disseminated gold mineralization. Float samples of this type of mineralization from the "Dripping Gold Zone" have assayed as high as 4.5 grams/ton gold.
3.) Disseminated gold and accompanying arsenopyrite within the metamorphosed felsic intrusive rocks (metagranitic sills and or dikes). These rocks have returned highly anomalous to ore grade gold values in grab samples at the surface and are usually accompanied by highly anomalous arsenic values. The possibility exists for either a high grade cupola or bulk tonnage Fort Knox style gold deposit. It has been suggested that a large intrusion at depth may be the source of the gold-rich mineralizing fluids.
4.) Low angle, high grade gold veins similar to the recently discovered 10M ton, 5M ounce Pogo gold deposit in east-central Alaska may exist. Large low angle structures (i.e. thrust faults) are well documented on the Seward Peninsula. In one instance, a hand excavated pit in the Dripping Gold Zone uncovered a foliation parallel 6-10" thick quartz vein. A sample of the vein material assayed 1.5 grams/ton gold, > 200 ppm silver, and 388 ppm bismuth. Bismuth is a key indicator mineral at the Pogo deposit.
Soll Anomalies
Several untested, unusually large and strong gold, arsenic, antimony anomalies exist on the property. The size and intensity of the geochemical anomalies and alteration at the surface is suggestive of a large mineralizing system.
The Dripping Gold Zone anomaly measures approximately 1400 feet by 200 feet. Soils contain gold values as high as 5,360 ppb and average about 900 ppb. The anomaly is untested by drilling, Antimony Dome is a large, open antimony-arsenic-gold in soil anomaly measuring roughly 1500 feet x 600 feet. This anomaly is located on a marble dome between the head of Dahl Gulch and Dorothy Creek. Soils contain up to 1250 ppm antimony along with 388 ppb gold and 900 ppm arsenic. The anomaly appears to be leakage from a blind mineralized zone beneath the marble dome. In comparison, the Antimony Dome soils are about an order of magnitude greater in intensity than for those over the Hed & Strand gold-antimony vein lode. This anomaly has not been drill tested.
The east-northeast trending Dorothy Creek gold-arsenic anomaly is about 3000 feet long. It remains open to the northeast. This anomaly appears to follow the trace of a linear feature observable on air photos. Considering that the Hed & Strand gold veins strike northeast and dip northwest, this anomaly may represent a large mineralized structure hosting auriferous quartz veins In year 2000 Consolidated Aston Resources drilled one vertical hole (BG-2) about 250 feet deep near the southwest terminus of the anomaly. If the mineralized zone beneath the soil anomaly strikes northeast and dips northwest it is possible the drill hole missed the zone by drilling the footwall.
The Discovery Hole gold-arsenic-antimony soil anomaly lies about 1000 feet south and west of the Dripping Gold Zone. This 1600 foot by 200-400 foot soil anomaly is named for a 1999 (AX) Winkie core hole drilled by Altar Resources. Altar's vertical 55 foot deep hole intersected 0.78 g/t Au from 10 to 55 feet. In year 2000, Consolidated Aston's Resources twinned the hole using NQ core. Aston's 284 foot hole returned 48 feet of 0.58 g/t gold from 10 to 58 feet.
Altar Resources proposes an estimated $500,000 cdn exploration program that will drill test the following target areas as well explore for additional targets. This will entail drilling 3500 feet of (NQ) core in 8 holes, 1000 feet of backhoe trenching and 300 conventional soil samples. IP or CSMAT geophysics may also be employed.
Target A - Dripping Gold Zone
Excavate and sample two, roughly parallel N-S trenches across the zone. It is expected that the trenching will expose the bedrock mineralization that has produced the very strong soil anomaly and will provide information as to the structural and/or, stratigraphic controls on the mineralization. Drill two 300 foot holes based on trench results.
Target B - Discovery Hole Anomaiy
Follow-up drilling on core hole BG-1 drilled by Consolidated Aston Resources. BG-1 was in mineralization (approx. 0.6 g/t gold) from the surface to 60 feet. The strongest gold values in soils are approximately 500 feet up slope of core hole BG-1. The mineralization appears to be dipping into the hill. Drill one 400 foot vertical hole up slope and to the east of BG-1. This hole is designed to test the down dip extension of the mineralization intersected in BG-1.
Target C - Hed & Strand Extension
Attempt to intersect the extension of the Hed and Strand lode system. A NE striking, NW dipping high grade gold-antimony vein set is the target. The Hed & Strand reported values of 0.30 opt gold across 3 feet. Unexposed, parallel veins may exist along the NE trending structure hosting the Hed & Strand lode. Drill two, 500 foot holes directed to the SE @ -45 degrees just off of the patented (private) Hed & Strand claims.
Target D - Antimony Dome Anomaly
This strong antimony-gold-arsenic soil anomaly is a suspected leakage anomaly from strataform mineralization beneath the carbonate (marble) dome. The carbonate rock should be penetrated to locate the source of the anomaly beneath. On the Seward Peninsula, soil samples taken over carbonate rock are usually dead. This strong anomaly should be tested with one 600 foot vertical hole in the most intense part of the anomaly.
Target E - Dorothy Creek Anomaly
Cut three, 200 foot long trenches across the east-northeast trending soil anomaly. This will expose a carbonate-schist contact and a possible NW dipping high angle structure hosting auriferous quartz veins. Drill one or two holes based on trench results.
Within the last five years Alaska has produced two major lode gold discoveries, Nova Gold's 23 million ounce Donlin Creek deposit, and Teck-Sumitomo's 5.1 million ounce Pogo discovery. Altar Resource's intrusion related BULK GOLD Project also has the potential for a multi-million ounce lode gold discovery. Multiple, very large and strong gold anomalies exist on the property which are untested with drilling. Altar Resources believes that this road accessible project could be the next world class lode gold discovery in Alaska.
References Cited
Berg, H. C., and Cobb, E. HL, 1957, Metalliferous lode deposits of Alsaka: U.S. Geol. Survey Bull. 1246, 254 p.
Bundtzen, T. K, and others, 1994, Progress report on the geology and mineral resources of the Nome mining district, Public-Data File 94-39, State of Alaska DGGS.
Cathcart, S. H., 1922, Metalliferous lodes in southern Seward Peninsula, Alaska, U.S. Geol. Survey Bull. 722-F, 261p.
Dail, C. S.., 2000, Progress report on Bulk Gold Project to Consolidated Aston Resources: internal company report.
Hummel, C. L., 1962, Preliminary geologic map of the Nome D-l quadrangle, Seward Peninsula, Alaska: U.S. Geol. Survey Mineral Investigation Field Studies Map MF-248, scale 1:63,360.
Gilbert, W.G., and Lajack, D. J., 1998, Geologic map of the Bulk Gold Property, Altar Resources, internal company document.
Till, A. B., Dumoulin, J. A., 1994, Geology of the Seward Peninsula and Saint Lawrence Island, Geol. Soc. of America, Vol. G-l, pp. 141-143. |
