Developing GOLD Assets in
North America

Green Springs Project

Overview

The 100% owned Green Springs property is located in the southwest corner of the historic White Pine mining district, 35 miles west of Ely, Nevada and 7 miles south of Mt. Hamilton. The property consists of 193 unpatented mineral claims covering an area of 3700 acres. Green Springs is a past operating heap leach gold mine which produced 1.1 million metric tons of ore averaging 2.1 g/t gold and is prospective for Carlin-style gold and silver mineralization. The property was originally staked in 1979 by U.S. Minerals Exploration Company ("USMX") who explored the property from 1980-1988. During this time they drilled ~600 RC drill holes outlining six deposits throughout the claim block. Mining commenced on three of these deposits in 1988 and operated until 1990. It is believed that during this time USMX extracted ~60,000 Oz of gold from three pits. Three additional deposits were left un-mined and remain open for delineation and future production.

Ely Gold and Minerals Inc. (the "Company"), through its wholly owned subsidiary DHI Minerals (US) Ltd ("DHI") acquired 100% of the Green Springs project ("Green Springs" or the "Project") in February 2013 by making a one-time cash payment of $350,000. The Project is located in the southwest corner of the historic White Pine mining district, 35 miles west of Ely, Nevada and 7 miles south of the Mt. Hamilton property owned by Waterton Global, 8 miles east of the Gold Rock project and 17 owned by GRP Minerals LLC. The initial property consisted of 76 unpatented mineral claims covering an area of 1500 acres is subject to a 2% NSR. Prior to purchasing Green Springs, DHI also optioned 2 patented mining claims (the "Cox Claims") that are within the 76 claim package The lease on the Cox Claims has a term of 10 years with escalating annual advance royalty payments and a 100% purchase option. The first year advance royalty payment was $13,000 and included a significant amount of the historic drill data and production records from USMX. This data included over 680 reverse circulation production and exploration drill holes. The Company has the option to purchase the claims for an amount equal to $200,000 less the aggregate of annual advance royalty payments made prior to the date of exercise. These claims are subject to a 2.25% NSR and the Company retains an option to a buy-down for 1% for $500,000.

In July 2014, Ely Gold signed a three year option agreement with Eurasian Minerals ("EMX') to purchase a 100% interest in the Cathedral Well project. The Cathedral Well property bounds Ely Gold's Green Springs project area to the east and the west. Pursuant to the Agreement, Ely Gold can earn a 100% interest in the Project by paying EMX a total of $100,000 as follows; US$25,000 upon execution of the Agreement and US$75,000 over the next three years. EMX will retain a 2.5% net smelter return (NSR) royalty, inclusive of an underlying 0.5% NSR royalty. In addition, after earning the 100% interest in the Project, Ely Gold will pay EMX annual advance royalties equal to 20 ounces of gold each year beginning year four of the Agreement. After completion of a feasibility study, prepared in accordance with the requirements of NI 43-101 and CIM definitions and guidelines covering either, or both, of the Project and the adjacent Ely Gold properties, the annual payment will increase to 35 ounces of gold each year thereafter until commencement of commercial production from either, or both, of the Project and the adjacent Ely Gold properties. Ely Gold may purchase 0.5% of the EMX NSR royalty by paying Eurasian 500 ounces of gold within 60 days after commencement of commercial production from either, or both, of the Project and the adjacent Ely Gold properties. There is no work commitments associated with the agreement and EMX will not retain any royalty on Ely Gold's existing Green Springs project.

EMX acquired Cathedral Well through staking in 2008 through its wholly owned subsidiary Bronco Creek Exploration Inc. ("Bronco"). They immediately optioned the property to a wholly-owned subsidiary of Eldorado Gold Corp. Bronco and Eldorado completed 30.5 line kilometers of NSAMT and CSAMT geophysical surveys, soil and stream sediment surveys totaling 1,597 samples, and identified seven targets that were permitted for drill testing. Six reverse circulation drill holes totaling 1,426 meters were completed over the western target area. The Agreement allows for Ely Gold to retain all the EMX data. During the option period, Ely Gold will manage the Cathedral Well with technical assistance from the Bronco team.

Mineralization on the Green Springs property is hosted in classic Carlin style, Devonian to Mississippian sedimentary rocks. The bulk of gold mineralization outlined by USMX is hosted in the Lower Chainman Shale and upper Joanna limestone units similar to Midway's Gold Rock project and Pilot Gold's Griffon project. Of regional significance is the Pilot Shale, which lies stratigraphically beneath the Joanna Limestone and has been noted in drill holes at the north end of the property at depths generally less than 300 ft. There are also several outcroppings of Pilot shale in the northern and eastern portions of the property. The Pilot Shale hosts other gold deposits in the region, including Midway Gold's Pan Deposit, located 14 miles to the northwest; this unit remains relatively under-explored throughout the property. USMX drilled several holes into the Pilot Shale in the northern part of the property. Decalcified samples of Pilot Shale in outcroppings assayed gold values up to 2.5 g/t.

In addition to the Pilot Shale target, property wide geological mapping by Genesis Gold in 2008 identified a large area of hydrothermal alteration with outcropping gold mineralization and strong multi-element geochemical anomalies in elements typical of Carlin style mineralization (arsenic, antimony, silver, barium, mercury, and thallium). Many of these anomalies remain untested at depth.

The Company retained SRK to compile and digitize all of the historic data to create a modern geologic and mineralization model for the Property to help guide future exploration on targets proximal to the historic pits, the three un-mined mineralized zones previously outlined by USMX as well as new exploration targets property wide.

Enviroscientists, Inc. was retained by the Company to coordinate permitting and environmental requirements for future work on the property. Ely Gold filed a Plan of Operations and Environmental Assessment with the US Forest Service in 2013 covering approximately 75 acres of the combined land package. Approval for the Plan of Operations and Environmental Assessment were granted in the fall of 2014.

The Company began an initial drill program in the fall of 2015.The purpose of drill program was to confirm historic USMX drill holes and to begin to test Pilot Shale targets.

Table - Highlights of historical Green Springs Reverse Circulation drill hole sampling by USMX in the 1980's

Hole #

Angle

Depth (m.)

From (m.)

To (m.)

Interval (m.)

Au (g/t)

Area

Stratigraphy

84-30

-90

61

42.7

61

18.3*

1.14

A

Pilot Shale

84-29

-90

30.5

9.1

30.5

21.3*

0.95

A

Pilot Shale

84-22

-90

61

9.1

61

51.8

0.86

A

Pilot Shale

83‐5

-90

91.4

16.8

48.8

32.0

1.22

A

Upper Chainman

84‐16

-90

24.4

12.2

36.6

24.4

0.72

B

Lower Chainman

81‐2

-90

91.4

10.7

27.4

16.8

1.59

B

Lower Chainman

87-436

-90

24.4

9.1

24.4

15.3*

1.51

B

Lower Chainman

87‐438

-90

24.4

0

24.4

24.4*

0.73

B

Lower Chainman

87-231

-90

38.1

36.6

67.1

30.5

2.08

C

Lower Chainman

87-506

-90

71.6

39.6

71.6

32.0*

1.64

E

Lower Chainman

87‐510

-90

68.6

32

61

29.0

3.02

E

Lower Chainman

87‐494

-90

65.5

29

65.5

36.6*

2.44

E

Lower Chainman

87‐552

-90

99.1

65.5

99.1

33.5*

2.90

E

Lower Chainman/Joanna

*Hole bottomed in mineralization

- All holes Reverse Circulation holes drilled by USMX in 1980's into shallow-dipping western limb of anticline. Intervals are not true thicknesses.

Maps & Schematics

Green Springs Location Map
Green Springs Location Map
Cathedral Well Acquisition Map
Cathedral Well Acquisition Map
Green Springs Geochemistry Map
Green Springs Geochemistry Map
  • C-Pit, Looking South
  • Looking from Green Springs Ridge
  • Pilot Shale Jasperoid Outcrop
    ...