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The Talapoosa project is a disseminated, quartz-adularia style epithermal gold-silver deposit located 45 kilometers east of Reno, Nevada. Since 1977, eight mining companies have carried out exploration and development with 564 drill holes totaling 71,000 meters along with extensive metallurgical test work and environmental studies. A feasibility study was completed by Miramar Mining Corporation in 1996.
The Talapoosa deposit is hosted by late Tertiary volcanics, volcaniclastics, hydrothermal breccias, sediments and intrusives of dacitic to andesitic composition and is structurally controlled. The deposit is faulted by post-mineral dip slip movement along high-angle faults into the outcropping Main Zone and the down-faulted Bear Creek Zone to the south. The deposit is further subdivided into oxide and sulfide mineralization. The oxide mineralization lies near the surface in both zones while the deeper sulfide mineralization occurs at depth in the Bear Creek Zone.
The Bear Creek Zone has horizontal dimensions of over 700 meters east-west by 300 meters north-south and dips approximately 30 degrees to the south. The upper portion of the Bear Creek Zone, which extends from near surface to as deep as 80 meters in the south, is dominated by widespread and intense argillic alteration associated with the narrow steeply dipping higher grade vein-breccia structures. These vein-breccia structures are up to several meters in width with grades ranging between 2 g/t and 14 g/t gold. The lower portion of the Bear Creek Zone is characterized by moderate to intense silicification and stockwork veining. Drill intercepts of up to 50 meters (true thickness) with average grades ranging between 0.9 g/t and 2.5 g/t are typical of this lower zone.
In 2010 a NI 43-101 compliant mineral resource estimate by Mine Development Associates Inc. (“MDA”) reported a measured and indicated resource of 632,000 ounces of gold and 8.2 million ounces of silver. Inferred mineral resources add an additional 326,000 ounces of gold and approximately 4.3 million ounces of silver.
In 2010, Chesapeake vended its 100% interest in Talapoosa to Gunpoint Exploration Ltd (TSX.V:GUN) in exchange for 32,017,899 common shares of Gunpoint, representing 74.5% of the issued and outstanding shares of Gunpoint.
In April, 2015 Timberline completed a Preliminary Economic Estimate (“PEA”) on Talapoosa. The PEA indicated a robust open pit heap leach operation. At $1,150/oz gold and $16/oz silver, the PEA indicates an after-tax NPV of US$136 million and a 39% internal rate of return. Average annual production over an 11 year mine life is 55,000 ounces of gold and 679,000 ounces of silver. Employing contract mining at a processing rate of 3.8 million tons per annum, the capital cost is US$51 million.