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Uke Property
Location: 80 km northeast of Tonopah, in Nye County, central Nevada in unsurveyed townships 8 and 9 North and ranges 47 and 47.5 East
Minerals: Gold
Ownership: Option to earn 100% interest
 Highlights
- Golden Chalice recently acquired joint venture partner to further explore the gold potential of the property
- Previous drilling by Newmont intersected shallow gold mineralization but failed to reach deeper, potential gold-hosting carbonate stratigraphy
- The presence of gold-bearing surface jasperoids that were never fully drill tested support the potential for gold deposits at depth
- All gold properties in the area are now consolidated into one land package, allowing unhampered regional exploration for the first time in over 20 years
Background
Nevada is one of the most prodigious gold producing jurisdictions in the world. In 2005, (latest available statistics) the state alone produced more than 6.85 million troy ounces of gold accounting for 9% of world production from just 24 major mining operations.
The original Uke property claims were acquired in 2004. Field work by Golden Chalice commenced in August 2004. The Aphro claims, immediately to the east, were acquired in March 2005. Access to the property is good from mid-April to late December, on a combination of well maintained county gravel roads and unmaintained dirt roads.
Geology
Paleozoic carbonate rocks are exposed on the eastern part of the claims and consist of units which are highly favorable gold hosts in the Carlin, Battle Mountain and Independence gold trends. Older units are found east of the Uke claims.
The Tertiary King Solomon tuff overlies the carbonate rocks and covers the western two-thirds of the property. This unit varies in thickness and can exceed 300 m. A series of north-northeast trending structures occur on the property and appear to be the primary controls on mineralization in both Paleozoic and Tertiary rocks. Other major structures trend west-northwest, and may also be important ore controls.
The King Solomon Mine, immediately southeast of the Uke claims, was a small antimony producer hosted in volcanic tuffs. The mine is found along a regional west-northwest trending alignment of antimony prospects which extend from the Gold Hill district, north of the Round Mountain Mine, south-southeast to the Tybo Base metal district. This alignment of antimony occurrences is thought to be associated with an older, deep structural break, favorable for channeling ore fluids. Jasperoids containing up to 4.6 g/t gold in Paleozoic carbonate rocks in the eastern part of the Uke claim group appear to be structurally controlled along north to north-northeast trending fault zones.
Past drilling on the Aphro claims indicates both structural and stratigraphic control over gold mineralization within the carbonate rocks, typical of Carlin type systems. Drill intercepts of up to 1.5 m grading 4.8 gpt (0.141 opt) gold in jasperoids on the Aphro claims indicate potential for high-grade gold mineralization. The highest grade jasperoids found to date are along a north-south structure with a strike length of at least 1,220 m. Below the jasperoid unit, stratigraphy favourable for hosting Carlin type deposits occurs at a reasonable depth.
Previous Work
Newmont Mining originally obtained the current Uke ground in 1989 and carried out work consisting of geological mapping, rock sampling, grid soil sampling and geophysics.
That same year Newmont drilled seven widely spaced holes on the Uke property to test targets in Tertiary volcanic tuffs and encountered shallow oxide gold mineralization in five of the seven holes. This drilling was on the extreme western portion of the current Uke property and did not reach the underlying favourable Paleozoic carbonates. Gold mineralization occurs in brecciated and silicified felsic tuff along at least five north-northeast trending structures. Two of these zones were tested by Newmont, and five of seven holes encountered near surface gold mineralization (best intercept 0.8 g/t over 15.2 m or 50 feet assaying .022 opt Au). The deepest holes were 800 feet. Newmont relinquished its lease in 1990 before testing the underlying carbonate section.
Fieldwork by Golden Chalice commenced after signing of the lease in August 2004 and continued intermittently through December 2005. The work consisted of geologic mapping and rock sampling, grid soil sampling and microfossil sampling. Additionally, historic data was compiled and digitized. Drill targets were selected and permitting was initiated in November 2004. In March 2005 Golden Chalice acquired a lease for the adjoining Aphro claims immediately to the east of the Uke property.
During this time, highly anomalous jasperoids with gold values up to 4.6 gpt were discovered on open ground in Paleozoic carbonate rocks exposed in a window just west of the former Newmont claim block. All the prospective open ground was eventually staked by the Company.
Shallow drilling by several companies including Echo Bay and Kennecott tested targets in Paleozoic carbonate rocks on claims immediately to the south and east of the Uke claims. Two small gold resources totaling about 100,000 oz were defined.
Conclusions
The Uke claims have excellent geologic potential for hosting a large gold deposit. Areas of anomalous to ore grade mineralization occur as linear north-south zones which reflect mineralizing structures in both Tertiary volcanic rocks and older underlying Paleozoic carbonate rocks. Carlin type alteration/mineralization in the form of jasperoids, decalcification and carbon re-mobilization occurs in rock units that are similar to those hosting large, high-grade deposits in Nevada (i.e. Cortez Hills, Goldstrike).
Potential also exists for the discovery of a deposit similar to Round Mountain/Gold Hill (20 million ounces of gold), in the Tertiary volcanic section. Past exploration by Newmont was quite encouraging, but never tested the deeper targets where potential for a large gold deposit exists.
The geology, structure and mineralization present on the Uke-Aphro property indicate that additional exploration and drilling is highly warranted.
In April, 2008, Golden Chalice completed a joint venture agreement with a private, well-funded American company to consolidate the entire camp into one large land package.
Fragmented land ownership has historically prevented regional exploration of surface gold zones and targets at depth.
The American company will be operator and spend US$3 million over three years to earn a 50% interest in the consolidated property. Golden Chalice will spend nothing and have a 50% interest in the consolidated property. The Company can also be carried to production and retain a 20% interest.
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