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Epithermal gold/silver
project Next Gen Metals Inc. has reached an agreement with Anglo Alaska Gold Corp., a privately owned Alaska Corporation to acquire a 100% interest in the Silver Chalice epithermal gold/silver project consisting of 31 State of Alaska mining claims for 4,960 acres, located in west-central Alaska approximately 345 miles northwest of Anchorage and 330 miles west southwest of Fairbanks. The Tertiary volcanic caldera which hosts the Silver Chalice project represents an excellent exploration target with potential to host significant epithermal gold and silver mineralization. Stream sediment samples anomalous in gold and indicator minerals and pan concentrate samples with anomalous gold and mercury strongly support the gold and silver potential of the caldera and adjacent areas. There has been no past lode mining on the project and there are no other active mining claims in the project area. Under the terms of the acquisition agreement, Next Gen Metals Inc. can earn a 100% interest in the property over a two-year period as follows: 500,000 shares after Board and Exchange approval, US$5,000 on Board and Exchange approval, US$20,000 on the first anniversary, US$25,000 on the second anniversary, 100,000 shares upon transfer of the property to a third party and 300,000 warrants exercisable at CDN$0.30 for a period of two years. As well, the company must expend $24,800 by December 31st, 2009 and $12,400 in exploration and development over the ensuing two years. There is a 1.5% NSR royalty which the company may re-purchase 1.0% for a cash payment of US$1.0 million. 2010 Exploration Program Based on preliminary field, laboratory and literature studies completed to date, the Company is planning an extensive 2010 exploration program consisting of follow up mapping, trenching, rock/soil sampling and geochemical work to identify targets for a proposed 2,000 metre diamond drill program. Geology The Silver Chalice epithermal gold-silver prospect occurs immediately east of the eastern margin of the Poison Creek Caldera in west-central Alaska. Gold-silver bearing polyphase quartz veins are associated with northeast structures that radiate from the caldera margin. The epithermal gold-silver veins are hosted within a zone of outer propylitic alteration and an inner zone of weak to moderate argillic alteration. Weak silicification is also noted in the country rocks adjacent to the veins. Country rocks consist of Cretaceous flysch units including lithic sandstone, siltstone and shale. The Poison Creek caldera consists of bimodal Eocene to Paleocene volcanic units that range from andesite to rhyolite in composition. The epithermal veins at the project appear to be intimately associated with this volcanic activity. Rock chip samples from surface rubble-crops and boulder trains return values up to 10 grams of gold per tonne and 462 grams of silver per tonne. Average Ag:Au ratio is approximately 40:1. The main Silver Chalice vein is up to 25 feet (7.6 meters) in true width in two historic drill holes and the south vein is 27 feet (8.2 meters) true width in one historic drill-hole. Fluid inclusion analysis suggest that if the hydrothermal fluids contained significant amounts of gold and silver, it is likely that gold-silver mineralization precipitated at boiling levels somewhere in the epithermal system. There remains potential for ore-grade gold and silver mineralization at depth below the two veins drilled, in the broader altered areas, and in the covered areas along strike of the veins. |
