ILST Our
Properties
We
currently
hold
interests
in
properties
that
we
believe
show
potential
for
mineral
development.
These
properties
consist of unpaten
ted mining claims located on federal public land managed by the United States
Department of Interior, Bureau of Land Management (“BLM”). We are obligated to pay a maintenance fee
to the BLM of $189 per claim plus a $14 local filing fee for each newly
filed claim and
$140 per claim per year for each existing claim.
Unpatented mining claims are “located” or “staked” by individuals or companies on particular parcels of
federal public land upon which the individual or company asserts the right to extract
and develop a mineral
deposit. Mining claims may be one of two types: lode and placer. Lode claims are claims on land where
mineral deposits have been discovered encased in or surrounded by hard rock, such as veins, fissures, lodes
and disseminated ore bod
ies. Placer
claims
are
claims
upon
land
containing
deposits
of
loose,
unconsolidated
material,
such
as
gravel
beds,
or
containing
certain
consolidated
sedimentary
deposits
lying
at
the
surface.
Federal
law
limits
each
lode
claim
to
no
more
than
1,500 feet
along
the length
of
the deposit and
no
more
than
300
feet to
either side of the
center
line of
the deposit.
A placer
claim
may
be up
to
20
acres
for
a
single
individual
or
corporation,
and
up
to
as
many
as
160
acres
for
an
association
of
at
least
eight
own
ers.
If
the
statutes
and
regulations
for
the
location
and
maintenance
of
a
mining
claim
are
complied
with,
the
locator
obtains
a
valid
possessory
right
to
the
contained
minerals.
Failure
to
pay
maintenance
fees
may
render
the
mining
claim
void
or
voidable
.
We
believe
we
have
valid
claims,
but,
because
mining
claims
are
self
-
initiated
and
self
-
maintained,
it
is
impossible
to
ascertain
their
validity
solely
from
public
real
estate
records.
If
the
government
challenges
the
validity
of
an
unpatented
mining
cla
im,
we
would
have
the
burden
of
proving
the
present
economic
feasibility
of
mining
minerals
located
on
the
claims.
Property
and
Location
Our
current
mineral
properties
consist
of
a
total
of
approximately
1.9
square
miles
of
land
located
in
the
northern
B
lack
Mountains
in
Mohave
County,
Arizona,
approximately
56
miles
from
Las
Vegas,
Nevada,
and
22
miles
south
of
the
Hoover
Dam
on
U.S.
Highway
93
(collectively,
the
“Black
Mountains
Property”).
The
properties
are
easily
accessed
by
partially
paved
entry
off
Highway
93
and
have
availability
to
electricity
and
water.
Our
Black
Mountains
Property
consists
of
approximately
60
lode
claims,
53
of
which
have
been
recorded
with
the
BLM
and
Mohave
County.
Our
claim
holdings
in
this
area
began
with
placer
claims
in
t
he
adjacent
Detrital
Wash
area
acquired
in
1998
through
a
mineral
lease
and
in
2004
through
an
exploration
rights
agreement.
In
2008,
we
released
all
of
our
placer
claims
in
the
Detrital
Wash
area
due
to
economically insufficient placer mineralization.
Our
subsequent
claims,
except
for
five lode
claims
acquired by lease in April 2011, have been
staked
by
the
Company
over
or
nearby
the
Company’s
previous
claim
holdings.
The
claims
we
have
staked
in
our
Black
Mountains
Property
cover
areas
of
bedrock
minerali
zation
indicated
by
historical
data
obtained
by
the
Company
and
confirmed
by
geochemical
assays
of
mineral
samples
performed
for
the
Company
by
licensed
independent
labs
and
evaluated
according
to
Canadian
National
Instrument
(NI)
43
-
101
standards,
as
well
as
other
areas
where
we
have
obtained
evidence
of
mineralization
occuring
in
the
bedrock.
Effective
April
1,
2011,
we
acquired
five
lode
mining
claims
covering
the
former
Van
Deemen
gold
mine
located
within
the
area
of
our
existing
claims
in
the
northern
Black
Mountains
in
Mohave
County
through
a
10
-
year
lease
agreement
with
La
Cuesta
International,
Inc.
We
are
required
to
make
rental
payments
every
six
months,
beginning
upon
signing
of
the
lease,
in
an
amount
of
$5,000
for
each
of
the
first
two
six
-
month
periods,
$7,500
for
each
of
the
next
two
periods,
and
$10,000
per
period
thereafter.
Upon
commencement
of
any
commercial
mineral
production
on the
leased property,
we
must
pay
the
greater
of
2%
of
the
net
smelter
returns or
$10,000 during
each
calendar
qu
arter
in
which
we
produce
and
sell
ores
and
minerals
from
the
property
in
commercial
quantities.
In
addition
to
the
five
leased
claims,
we
have
located
and
recorded
18
lode
claims
covering
areas
surrounding
the
leased
Van
Deemen
mine
claims.
Active load
claims in Mohave county as of 2013 total 48; with 15 claims
recorded in 2009, 24 recorded in 2010, and 9 recorded in 2011.
This does not include the five lode mining
claims leased form La Cuesta International, Inc.
Based
on historical
information
we have
obtained, the
Van
Deemen
area was initially
explored for
gold
in the
1930s and
1940s.
In the
1970s,
the
area
was
actively
explored
for
copper,
with
the
greatest
focus
of
copper
exploration
occurring
east
of
the
old
Pope
Mine
about
2.5
miles
north
of
the
V
an Deemen.
Since
the 1980s,
the
area has
been
explored
primarily
for
gold.
From
1983
to
1985, Amselco
Exploration
Inc.
conducted
the
first
serious
exploratory
drilling
for
gold
on
the
Van
Deemen
prospect.
Amselco
completed
13
drill
holes
in
1983
and
nine
d
rill
holes
in
1985.
Red
Dog
Mining
also
completed
a
brief
phase
of
shallow
air
track
drilling
in
1985
in
the
zone
of
gold
mineralization
identified
by
Amselco.
The
area
was
then
acquired
by
Fischer
-
Watt
Gold
Co.
in
late
1985.
In
1986
and
1987,
Fischer
-
Watt
Gold
Co.
and
Arizona
Star
Resources,
through
a
joint
venture,
conducted
a
more
complete
evaluation
of
the
property.
Drilling
results
from
the
Fischer
-
Watt
and
Arizona
Star
work
reported
gold
mineralization
in
three
small
open
pits
occurring
in
low
angle
f
aults
with
associated
quartz
-
sericite
-
hematite
-
pyrite
-
clay
alteration.
The
Black
Mountains
Property
is
underlain
by
three
basic
rock
units
or
“packages”
of
rocks.
The
oldest
rock
unit
consists
of
Precambrian
schist
and
gneissic
rocks
which
are
the
recons
tituted
(metamorphic)
equivalents
of
former
shale,
siltstone,
and
volcanic
rocks.
The
next
youngest
rock
unit,
which
is
believed
to
be
of
Laramide
(Upper
Cretaceous/Lower
Tertiary)
age,
comprises
a
suite
of
granitoid
plutonic
rocks
that
intrude
the
Precamb
rian
strata
and
that,
in
large
part,
consist
of
alaskite
and
subordinate
pegmatitic
masses.
The
youngest
rock
unit
is
a
succession
of
volcanic
rocks
of
intermediate
composition.
This
unit
forms
a
partial
cover
over
the
older
units
and
has
been
dated
in
age
as
Miocene
(Middle
Tertiary).
The
property
exhibits
features
of
a
metamorphic
core
complex.
These
features
include
the
somewhat
arch
-
like,
cross
-
sectional
(east
-
west)
profile
of
this
area
of
the
Black
Mountains,
detached
cover
rocks,
a
preponderance
of
s
hallow
-
dipping
penetrative
structures
(foliations)
in
the
plutonic/metamorphic
basement,
and
the
composition
of
the
plutonic
rocks.
Our
2010
mapping
revealed
that
a
portion
of
the
section
of
metamorphic
rocks
(schist, etc.) that
separates
the
plutonic rock
s
of
the
core from
the cover
rocks
(known
as
the
carapace)
is
also
detached
and,
throughout the
property, variously rests on plutonic
rocks
and other
sections
of the carapace.
This
is
commonly referred to as a detachment
(or
decollement)
zone.
This
detachm
ent
zone
contains
evidence
of
mineralization
including
gold,
copper,
molybdenum
and
other
minerals.
Based
on
the
presence
of
gold
producing
mines
in
the
Black
Mountains
area
and
the
data
we
have
collected,
we
believe
deposits
of
precious
and
base
metals
ma
y
exist
within
the
Black
Mountains
Property.
Our
current
exploration
efforts
are
primarily
focused
on
the
establishment
of
gold
reserves
with
a
secondary
focus
on
copper
and
other
minerals.
We
cannot
assure
that
we
will
establish
the
existence
of
such
rese
rves
or
that,
if
such
reserves
are
established,
we
will
be
able
to
commercially
exploit
such
ore
deposits.
