Terra Mining Corporation is located between the Revelation and Terra Cotta Mountains in the southwestern Alaska Range. Terra Mining Property consists of 344 Alaska State Mining claims expanding approximately 130 square kilometers. They have identified four vein zones with high-grade gold mineralization.
Below is the detailed 2010 NI 43-101 Report. Also included, a brief Project Summary of the NI 43-101 Report.
Highlights:
NI 43-101 Technical Reports updated 2010 (TSX compliant)
168,000 oz gold, 310,000 oz silver (ITH NI 43-101)
Gold rich Bonanza Veins (>75% free gold)
Advanced project with operational revenue model in detailed proforma
Project potential to 1 million oz gold
Development Plan, Environmental Assessment and Permitting, in progress
Significant exploration potential for additional resource
Accredited management and directorship with proven track records
Closely held capital structure
Project ownership structure -post earnin (TGC 80% ,Corvus Gold 20%)
Mine friendly State
Extended vein along strike and Intersected vein systems - 2011 drilling
594 meters core drilling – 4 holes completed
375 samples taken from drill core*
Visible gold observed in core
Vein system is undrilled; extending to the north and in downward projection
to the vein below 300 meters
Moving Forward:
Identification of additional high grade veins within the structural zone to increase potential gold resources to over one million ounce potential
Upgrade and increase the ITH NI 43-101 inferred 168,000 oz gold resource and advance project to a measured and indicated resource
2012 bulk sampling program with anticipated revenues from gold production
Exploration for bulk mineable intrusive deposits
Cash flow through bulk sampling converting to 30,000 per ounce gold per year small mine operation
Target Type: High-grade gold system, Resource Definition Phase, Bulk Sampling Cash Flow.
History: Outcropping gold veins were first discovered at Terra in the late 1990s by Kennecott Exploration, who transferred ownership of 5 State of Alaska claims (800 acres) to one individual. AngloGold Ashanti Exploration (U.S.A.) Inc. acquired 100% of the Terra project in 2005 and conducted initial drill testing which returned encouraging results. ITH acquired the project in 2006 as part of a take-over of the AngloGold exploration assets in Alaska. The drilling conducted by ITH in 2006 and 2007 outlined highly attractive high-grade gold vein systems, which have now moved to the initial stage of resource development and expansion. TMC signed a Letter of Intent in February 2010 with ITH and TGC signed a JV Definitive Agreement in September of 2010 with Raven Gold Corp a wholly owned subsidiary of Corvus Gold to acquire an 80% interest in the project and form a JV company and act as operator. The Company was able to secure this project as ITH was occupied in development of a 12 million gold deposit in another part of Alaska.
Land Status: Property consists of 344 Alaska State Mining claims covering approximately 85 square miles (Figure 1). All Government permits and reclamation plans are current through 2014. Terra Gold Corporation (TGC) has a Joint Venture (JV) Agreement with Raven Gold Corp, a subsidiary of Corvus Gold, Inc. and International Tower Hill Mines, Ltd. (ITH) for 80% interest on the Terra Project through expenditures of $9,500,000 of work into the project over four years.
Background
Background: The Alaska Terra property is located between the Revelation and Terra Cotta mountains in southwestern Alaska at 61° 41’ 52.17”N latitude by 153° 41’ 05.59W longitude. The infrastructure at the project consists of a modern camp. The camp is fully equipped with a core facility, kitchen and tents to accommodate 25 people, small bulldozer, excavation, wireless internet and a pilot mill on site. The 800m gravel airstrip provides year-round aircraft access and will be expanded 700m to handle larger aircraft in 2012.
A total of 36 diamond drill holes have been completed on the Alaska Terra project property. The primary target covers a 5km area with high-grade gold mineralization located in four vein zones (Fish, SD, Ice and Ben Vein zones in Figure 1). These vein systems appear to be intimately associated with the margins of the Donlin Creek age diorite intrusions (67 Ma) and generally trend north to northwest. To date, our focus has mainly been on the Ben Vein. A NI 43-101 compliant resource model was created in the first quarter of 2008 and updated for Terra Mining Corp in June of 2010.
Figure 1: Alaska Terra property illustrating target vein locations
The Ben Vein contains a core zone of about 23 grams/ton (g/t) gold at a 3 g/t cutoff which expands significantly when the cutoff is lowered to 1 g/t. Drilling on the Ben Vein has outlined an open-ended mineralized zone over 550m long and 350m down dip with an average true width of ~1.3m at an average grade of 23 g/t gold. The drilling on the project has identified numerous gold bearing veins, which in total offer potential of 1million ounces gold present. In 2011 a 25 ton per day pilot mill for bulk sample mining was constructed at the Alaska Terra Project. In 2012 bulk sample mining and pilot milling of ore with gold production will commence. Environmental baseline studies are underway on the Alaska Terra project in anticipation of future development.
The Alaska Terra Project mineralization has been characterized as deep epithermal and could have significant extent down dip and along strike. Furthermore, there is potential to develop a number of continuous high-grade veins forming a highly attractive mining target. Gold characterization work on the Ben Vein indicates a very large percentage (+80%) of the gold and silver reports to a gravity concentrate.
The 2005-2007 results for the Ben Vein Area are encouraging not only because they outlined a consistent and well mineralized main vein structure but also because a large number of well-mineralized subsidiary veins were encountered. These subsidiary veins offer significant potential for expansion of the system with intercepts such as holes TR-07-20 with new footwall zone of 0.6m @ 43.2 g/t gold and TR-07-22 with new hanging wall zone 0.8m @ 14.5 g/t gold. From the data currently available it appears that a higher grade shoot is developing within the overall Ben Vein system which could form the nucleus for an initial mining target on the project. In 2011 drill results from the 4 holes drilled that intersected the Ben Vein and extended the mineralized zone 200 meters north. An updated resource model will be forthcoming in future 43-101 reporting. Preliminary proforma cash models of a prospective deposit look highly positive.
Opportunity: The Alaska Terra project has significant potential for not only the development of a large high-grade gold deposit but for near-term production from our pilot mill on-site. The excellent gravity recovery characteristics of the ore (+80%), favorable mining configuration and the high-grade nature of the deposit are all positives for near-term development of the initial ore zone while underground exploration is developing additional ounces. WestMountain has positioned the property for near-term small-scale production transitioning to anticipated 30,000 ounce per year mine operation. WestMountain has a full camp on site.
Data Available: WestMountain has the ITH surface and subsurface geochemical and geological database including geological mapping, gold characterization study, and structural interpretations as well as the historical Kennecott Exploration surface geochemical data and geological map. The State of Alaska has airborne geophysical data over this area acquired in 2008, which has been interpreted by the Company’s geophysicist. In 2011, drill data from the 4 drill holes and data from rock, soil and stream sediment geochem data collected, identified new areas with gold anomalies were discovered which are being explored by the company.
The Ben Vein contains a core zone of about 23 grams/ton (g/t) gold at a 3 g/t cutoff which expands significantly when the cutoff is lowered to 1 g/t. Drilling on the Ben Vein has outlined an open-ended mineralized zone over 550m long and 350m down dip with an average true width of ~1.3m at an average grade of 23 g/t gold. The drilling on the project has identified numerous gold bearing veins, which in total offer potential of 1million ounces gold present. In 2011 a 25 ton per day pilot mill for bulk sample mining was constructed at the Alaska Terra Project. In 2012 bulk sample mining and pilot milling of ore with gold production will commence. Environmental baseline studies are underway on the Alaska Terra project in anticipation of future development.
The Alaska Terra Project mineralization has been characterized as deep epithermal and could have significant extent down dip and along strike. Furthermore, there is potential to develop a number of continuous high-grade veins forming a highly attractive mining target. Gold characterization work on the Ben Vein indicates a very large percentage (+80%) of the gold and silver reports to a gravity concentrate.
The 2005-2007 results for the Ben Vein Area are encouraging not only because they outlined a consistent and well mineralized main vein structure but also because a large number of well-mineralized subsidiary veins were encountered. These subsidiary veins offer significant potential for expansion of the system with intercepts such as holes TR-07-20 with new footwall zone of 0.6m @ 43.2 g/t gold and TR-07-22 with new hanging wall zone 0.8m @ 14.5 g/t gold. From the data currently available it appears that a higher grade shoot is developing within the overall Ben Vein system which could form the nucleus for an initial mining target on the project. In 2011 drill results from the 4 holes drilled that intersected the Ben Vein and extended the mineralized zone 200 meters north. An updated resource model will be forthcoming in future 43-101 reporting. Preliminary proforma cash models of a prospective deposit look highly positive.
Figure 2: Ben Vein long section (cross section view of vein and mountain) showing drill intercepts (pierce points of the vein) and the most prospective areas for mining based on these results.
Figure 3: Ben Vein visible gold
2011 Drill Program and Beyond
Focused on developing a high grade underground 30,000 ounce a year gold operation with significant upside production potential.
• 168,000 oz. gold & 310,000 oz. silver resource
• $3.5 Million 2012 exploration program
• Poised for growth
• Alaska – Mining Friendly State
• Permits in place - drill ready
• 85 sq mi Alaska state claims land package
• 1 million ounce exploration potential
