Drilling for Newmont
The Toboggan project is located in the Murray Gold Belt of North Idaho, three miles north of the Company’s Golden Chest Mine. The property is comprised of 106 unpatented mining claims, more than 2,100 acres, along an orogenic gold system with structurally-controlled zones occurring primarily along a northwest-trending corridor.
Gold mineralization at Toboggan is primarily hosted in the Prichard Formation. The gold is structurally-controlled, occurring in discrete high-grade quartz veins or within wider zones of brecciation. There is a spatial relationship between the richest gold values and major structures within the district, such as the Murray Peak, Bloom Peak, and Niagara faults. Some controlling structures may be related to the Idaho Fault, which hosts the gold veins at the Golden Chest.
The Toboggan project was an exploration joint venture between Newmont and NJMC from March 2008 through March 2011. Newmont spent approximately $2-million, generating and/or exploring multiple prospects during the joint venture, including Little Baldy, Gold Butte, Mineral Ridge, Golden Reward, CA, Snowslide, Independence, and Progress.
The Little Baldy prospect is under lease to Hecla Silver Valley, a subsidiary of Hecla Mining Company. The lease covers 39 unpatented claims (almost 2,000 acres) owned by NJMC that surround 139 acres of patented claims held by Hecla, but for which NJMC owns surface rights.
Newmont discovered Little Baldy, a 700-meter by 300-meter gold anomaly, through its soil sampling program. Follow-up rock sampling returned values of up to 2,130 gpt gold and more than 500 gpt tellurium, typical of the association of gold and tellurium found at Toboggan.