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Location
New Dimension Resources Ltd. has acquired the Hannapah property by staking 109 mineral claims, covering 2300 hectares, near Tonopah in Western Nevada. The Hannapah property was identified during a generative exploration program conducted by the Company's consulting geologist, Steve Jones, and was stakes due to its geologic similarities to the significant Midway deposit located 30 kilometres to the northwest.
Overview
Midway is an advanced stage gold property owned by Midway Gold Corporation and Steve Jones was instrumental in its discovery in 1993 while employed as a senior geologist with Kennecott Exploration. A 2005 resource estimate published by Midway Gold Corp. for three separate gold zones at Midway reported an inferred resource of 215,000 ounces of gold. Numerous other vein-related, high grade drill intercepts are also reported at Midway that apparently require additional drilling and it appears that significant additional potential exists to increase that resource.
Hannapah was acquired because it sits on the same structural trend, has similar geochemistry and the same geological setting as Midway. Also of note is that both target areas are associated with distinctive gravity high associated with magnetic anomalies. Like Midway, the main target at Hannapah is the sediment-volcanic contact which is predicted to exist at shallow depth below altered and mineralized outcrops. This target concept has never been drill tested in the Hannapah area.
The acquisition of Hannapah is subject to a finders fee and regulatory approval.
Work Performed
Recent mapping and sampling by the Company on the Hannapah property has expanded the area of exploration interest along a two kilometre northwest-trending structural zone. Within this zone, chalcedonic and quartz veined alteration is associated with anomalous precious metals and important path-finder elements that may be indicative of a mineralized occurrence at depth. Of the 80 rock chip samples taken over a 500 by 2000 metre area, the majority are anomalous in silver (high of 32 ppm), gold (high of 0.11 ppm), mercury (high of 27 ppm) and bismuth (high of 21 ppm); such surface values are considered by management to be significant for this type of geologic environment.
A gravity survey at Hannapah was recently completed by the Company using the services of Zonge Geosciences. This work, combined with publicly available gravity data, demonstrates that a gravity high believed to be related to shallow basement sediments, underlies the Company's claim block. This gravity high supports the widespread existence of the favorable contact zone which has never been drill-tested beneath the altered and mineralized volcanics. Importantly, the known surface exposures of mineralization on the property account for less than 25% of the predicted target zone as defined by the gravity survey.
Geology
At both Midway and Hannapah, the geology consists of sediments overlain by volcanic rhyolites and tuffs. The bulk of vein related mineralization at Midway occurs within veins formed at an unconformity between these two contrasting rock types. At Hannapah, limited exposures of lithic rich tuffs are rhyolites that are visible through extensive gravel cover host locally pervasive chalcedonic replacement that is similar in style to that found at Midway. In the main Hannapah district mineralization is controlled by a through going, northwest structural belt of faults and fractures that extend to the Midway area. Both Midway and Hannapah are considered part of the important Walker Lane mineral belt.
Work Planned
Future work at Hannapah will include detailed additional geophysical surveys (ground magnetics) and preliminary reverse circulation drilling within several priority target areas.
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