HIGHLIGHTS

Exploration Program

HIGHLIGHTS

·         EXPLORATION PROPERTIES

Golconda Resources Ltd. owns a total of eight properties, of which six are at a critical stage where the next proposed exploration step could result in a major upgrading of the company. 

·         EXPLORATION HIGHLIGHTS

Gold in Nevada, diamonds in Alaska, massive sulfide with Cu, Zn, Au and Ag in Saskatchewan.

GOLCONDA'S PROPERTY PORTFOLIO

Golconda's active projects

Golconda Resources Ltd. explores  gold and silver mineralization in South Western Nevada (South Monitor, Monitor Flats, Ralston Valley, Baxter Spring, 4-Aces and Merger properties), gold  in Saskatchewan (Wapawekka), and diamonds in Alaska (Shulin Lake property).

Gold and Silver Mineralization - South Western Nevada

Since 1985 the discovery of blind gold deposits ( below a depth a 750 ft ) in the Carlin area made Nevada the third largest gold producer in the world.

Now the area around Tonopah, in south-western Nevada, is more recognized as having the same geological features for large Carlin-type gold deposits than the Carlin area itself.

Golconda controls five properties in the Tonopah area of Nevada which have the potential to contain sediment-hosted gold deposits ( Carlin-type ) in a Paleozoic limestone sequence.

Ralston Valley Prospect in Nevada

Golconda holds 60 claims (1200 acres) - 100% interest. Gold mineralization in a northwest trending Walker Lane structure cuts Palaeozoic limestone and is parallel to the Midway structure.

Golconda staked part of the gravel-covered valley in 1997 because the areas of drusy quartz-barite veining, silicification and decalcification, although erratic and narrow in the outcropping limestone, become more consistent and attain a width of over 300 meters (1,000 ft) just before the outcrops become covered by gravel.

Drilling intercepted the upper, shaley part of the sequence.  Deeper drilling is expected to intercept higher gold values as the lower part consists of laminated silty limestone in the same rock-type which contains the majority of the gold in the Carlin area.

A drill-program begun in December 2006 and carried forward through to the end of February 2007 has intercepted some exciting sequences. While targeting the limey siltstone of the older Ordovician sequence, Golconda instead encountered the Roberts Mountain Thrust from 920-1140 ft, followed by Lower Plate younger laminated silty limestone below. This is the most promising discovery yet, with far-reaching implications for Golconda. This host rock is the most favourable in Nevada and, in the Carlin area alone, contains over 200 million ounces of gold.

Apart from the near-surface mineralization, gold values are found in the decalcified and totally silicified laminated limestone of the Lower Plate. The thick sequence of silica replacement from 1380-1774 ft indicates a very strong system that has been intersected at the periphery. Higher gold grades are expected to occur where this favourable host rock has been shattered by a major structure, two of which are visible on air photo.

Baxter Spring Prospect in Nevada

In 2005 Golconda entered into an option agreement to earn up to 75% in 33 claims (660 acres), the BX- claims, that cover outcropping gold mineralization in the Baxter Spring area. Golconda already owns a 100% interest in 60 adjoining claims, the RV claims, which cover the extension of the gold mineralized structures. In the Ralston Valley - Baxter Spring area, Carlin-type strata-bound and structurally controlled gold mineralization occurs in a Palaeozoic sequence of limestone and siltstone, which include several laminated silty limestone horizons.

In the Carlin area the laminated silty limestone is the main host rock containing over 85% of the gold in that district. The same rock type also contains most of the gold mineralization in the Ralston Valley - Baxter Spring area. The 2006-2007 drill program that encountered the Roberts Mountain Thrust consisted of the two aforementioned holes ( see Ralston Valley), situated on the BX claims.

South Monitor and Monitor Flat Prospects in Nevada

Kinross Gold USA Inc. has entered into a Joint Venture agreement with Golconda for the South Monitor and Monitor Flat properties (see News Release May 4, 2007). 

Kinross is the 50% owner and operator of the Round Mountain Mine which lies about 50 miles north of South Monitor. At Round Mountain the gold mineralization is associated with high-temperature quartz-adularia-sericite alteration and the ore body, containing approximately 15 million ounces of gold, occurs partially blind under gravel cover. The higher grade gold mineralization at South Monitor and the low grade gold values encountered in the drill holes at Monitor Flat are also associated with higher temperature potassic alteration. This type of alteration does not form outcrops which make associated ore bodies difficult to detect.

Golconda is confident that Kinross' experience gained at the Round Mountain Mine and in their recent discovery of the nearby Gold Hill deposit in a similar environment of gold mineralization will bring the best quality of exploration to the properties, and will represent the greatest prospect of detecting any existing ore body.

Golconda holds a total of 60 claims in both properties, and Kinross has staked an additional 150 claims. These claims cover adjoining ground which shows alteration and anomalous metal values in this very large hydro-thermal system. These additional claims will also fall under the joint venture agreement.

South Monitor Prospect in Nevada

The South Monitor Prospect (80% Golconda - 20% Nassau) is the most advanced of Golconda's Nevada properties.  Five major companies have worked on the property before us.  Nearly all of their work was confined to the low hills at the end of the Monitor Mountain range, where widespread but erratic gold-silver mineralization occurs in the south zone. Golconda discovered two other zones with gold-silver mineralization in the flats adjoining the hills. Blind mineralization means that the gold-silver mineralization starts at depth and the overlying rock contains no gold values. The mineralization is covered by a thick clay blanket and therefore it forms the flat, low-lying areas.

Golconda's drilling established that consistent and contiguous gold-silver mineralization occurs in the flats under the thick clay blanket, while the mineralization in the hills is erratic.  This discovery increased the economic potential of the property. The gold-silver mineralization has been followed to a depth of 620 feet, where it is still oxidized.

The alteration at South Monitor is larger and stronger than that of Round Mountain and the amount of gold occurring in three distinct areas at South Monitor over a distance of 2 miles gives the property excellent potential to contain a large, high-grade gold deposit in the underlying limestone.
Although the gold-silver values only occur at a certain depth below the surface, typical alteration patterns and traces of specific other metals can be found in the rocks directly overlying the gold-silver zones.

Air photo of exploration activity and drilling sites at the South Monitor Project

Monitor Flats Prospect in Nevada

Golconda holds 100% interest. The claims are covered by sand and gravel, except for two small hills, each with a diameter of about 50 m (150 ft). These two hills, about 1 km apart, show hydrothermal alteration and anomalous gold, arsenic and mercury values in Tertiary volcanics.

The main attraction of these claims is the potential for high-grade Carlin-type gold mineralization in the underlying Ordovician limestone, which is projected to start at a depth of about 50-60 m (200 ft).  

Merger Prospect in Nevada

The Merger property in Nye County, Nevada - 70 km east of Tonopah,  consists of 49 unpatented claims for a total of 1000 acres (400 ha), and an additional 18 claims (360 acres; 144 ha) that cover a gold-silver mineralized area about 3 km to the northwest and on trend of the Merger property.

Due diligence by Golconda revealed a distinct gold-silver zonation, with gold dominating on the western part of the property and silver on the eastern part. Together with high grade vein-type mineralization, there is a very strong extensive zone of silver-dominated stockwork-type mineralization that has the potential for a large bulk tonnage deposit.

The Merger project only had one hole drilled into the main zone, which is a stockwork ridge about 2000 ft (600m) long. The hole, drilled in 1981, intersected 15 ft of 5.88 oz. silver/ton (4.5 m of 202g silver/tonne), and below that a stockwork vein system for 371 ft (113 m) of 1 oz. silver/ton (34 g silver/tonne). At 756 ft (230 m), the end of the hole, the stockwork and the silver still continued. It is believed that this zone is the upper part of a bonanza vein-type boiling horizon with potential for high grade silver values in the next 200 ft (60 m) below.

4 Aces Prospect in Nevada

4 Aces is a lead, zinc and silver prospect located in Esmeralda County, Nevada. Mineralization occurs in a 300-600 ft (100-200 m) thick limestone band that is sandwiched within a granite for a distance in excess of 6500 ft (2 km). The limestone band is inclined at 60° and the mineralization occurs in shoots within the footwall of the limestone.

The property has never been drilled; old workings go no deeper than 200 ft (60 m), and only limited mining of high grade ore shoots has been carried out. 

The vertical dimension of the limestone and the mineralization is unknown. When compared to the length of over 6500 ft (2km) of limestone band, it can be deduced that the depth is greater than the 200 ft  attained in the deepest workings.

Golconda believes that the greatest potential of the property lies below the 200 ft level given the fact that the mineralizing solutions came from the depth of the intruding granite. The strong increase in silver and zinc prices makes the exploration of this property very attractive.

A sampling program to establish the extent of surface mineralization will guide the planned drill program.

Wapawekka property in Saskatchewan

In the Wapawekka region, central Saskatchewan, lies a 20 km x 50 km (12.5 x 30 mi.) area characterized by several large circular magnetic anomalies. 

A detailed ground magnetic survey identified promising drilling targets.

Geophysics - magnetic anomalies - Wapawekka Project

An airborne magnetic survey in 2004 identified an additional similar eight anomalies.

The overall data suggest that Golconda’s exploration efforts identified a mineralized subduction zone-related greenstone-belt in the sediment-covered basement of northern Saskatchewan.

A follow up of the initial successful early exploration stage will continue with an extensive drilling program of the magnetic anomalies in search for an economical VHMS deposit.

Enlarged magnetic anomaly D (one square 1x1 km).

A total of 5 holes with over 1,700 m drilled into the eastern-most magnetic anomaly and intersected bimodal volcanic sequences. Three of the holes cored thick units of volcanic massive sulphides. Hole 2 intersected over 25 m true thickness of over 50 % sulphide content.  

Massive sulfide in 60 m intersection from drill hole number 2.

Diamond property in Alaska

The Shulin Lake property is located  about 75 km northwest of Anchorage - Alaska. It consists of 152 claims for a total of 16,000 acres. The project is a joint venture between Golconda (51%), Shulin Lake Mining, a private company (39.8%), and another company holds 9.2%.

A recent re-evaluation of the airborne magnetic survey flown over the Shulin Lake, Alaska property concluded: “Both derivatives highlight numerous intrusive-style magnetic anomalies, both small stocks or pipes and dikes.” Therefore, it is significant that hole 22, drilled in March of last year, was situated at the rim of one of these pipe-like features outlined by the magnetic survey. Material from this hole recovered three micro diamonds in an 8kg sample.

Although diamond inclusion chromites and other indicator minerals had been detected by microprobe before, this is the first time that pyropes have been found on the Shulin Lake property. This is likely due to the fact that hole 22 is drilled into the pipe-like anomaly. The pyropes and the pipe-like anomalies detected by the recent re-evaluation of the magnetic survey are the last two pieces of the puzzle needed to confirm the excellent diamond potential of the property.

The company is excited about the progress made of late, and a major drill program is planned to start in early 2005.

Geophysics anomalies on Shulin Lake Project