23 Juli 2013

Part One: Is There Gold at Winnemucca, Nevada?

Encircled by nearly 20 gold mines in one of the world's most prolific gold-producing regions, Evolving Gold may be in the pole position for the Sleeper Success Story of 2006. Surrounding Evolving Gold's Winnemucca Mountain gold property are world-class gold mines, such as Glamis Gold's three-million ounce Marigold mine, Newmont Mining's Lone Tree Complex and Twin Creeks, and Barrick's Goldstrike high-grade ore body (discovered in 1986, producing since 1989, and with existing reserves of nearly 3 million ounces – having produced more than 560,000 ounces in 2004). Evolving Gold's Winnemucca property is approximately 30 kilometers from the historic Sleeper gold mine, once one of the Western Hemisphere's highest grade gold mines.

According to the U.S. Geological Survey website, Nevada accounts for approximately 64 percent of U.S. gold production and nine percent of the world's total gold production. The state of Nevada is the world's third largest gold producer, behind two countries: South Africa and Australia. The Battle Mountain-Eureka gold trend has produced more than 23 million ounces of gold over the past 30 years, second only to the Carlin trend. It is one of earth's premier hunting grounds for gold.

Welcome to Humboldt County, Nevada! Four gold producing mines reside in Humboldt County, including the Getchell, Marigold, Lone Tree and Twin Creeks mines. Dramatic discoveries of high grade gold deposits in the Battle Mountain-Eureka gold trend have significantly expanded the potential of this area. And that may explain why yet another gold deposit could be discovered in Humboldt County in the near future – this one may be at Evolving Gold's Winnemucca Mountain property.

One significant gold intersection during Evolving Gold's field program, anticipated later this year, might become a welcome holiday present for early investors who realize the potential of this company's story. Eight gold mines are within 25 miles of Evolving Gold's Winnemucca property; another 10 are within 50 miles. In a recent newspaper article, Dr. Lawrence Dick, Evolving Gold's Chief Executive, explained his company's mission, "We look for world class ore bodies in districts, which already have world class deposits." His decision to pursue drilling at the Winnemucca Mountain property makes sense in that context.

Comparable Mineralization

According to a Geological Report on the Winnemucca Mountain Property, published on January 20th of this past year, geologist Harmen J. Keyser wrote, "Known mineralization is typical of low-sulfidation epithermal sediment- and volcanic-hosted gold deposits found elsewhere in northern Nevada." Keyser cited examples such as the nearby Sleeper mine, which produced 1.68 million ounces of gold and 2.3 million ounces of silver between 1986 and 1996, and the Midas, which produced 3.7 million ounces of gold.

Geologically, the Battle Mountain-Eureka trend is defined by a northwest-southeast diagonal. If one were to plot the nearby gold mines along such a hypothetical geological line, one would instantly observe the Sleeper, Sandman, Ten Mile, Marigold and Battle Mountain along that northwest-southeast transverse.

In fact, there may be kinship between the former Sleeper gold mine and Evolving Gold's Swordfish zone. In an October 1989 monthly activity report, written for Santa Fe by geologist W.A. Hodges, "The Swordfish zone within the Winnemucca Mountain system is more continuously developed over a much greater thickness than is the Sleeper system." Evolving Gold director, and one of the company's geologists, Dr. Chris Osterman told us, "The drilling that's already been done has already suggested there is something worth looking at."

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