In 2013, NJMC acquired (what is referred to as the McKinley-Monarch project) through its acquisition of Idaho Champion Resources (ICR). The property is held by 28 unpatented claims and an agreement known as the Rupp Lease. The Rupp Lease consists of a mineral lease for 1,728 acres with an additional 1,518 acres of land with certain rights for access and surface disturbance. The 3,246 total acres held through the Rupp Lease requires an annual rental payment of $6,100. If an ore reserve of 250,000 ounces of gold is achieved within the Rupp Lease, there is a 1% NSR royalty on future production less recoupment of capital costs. The Company also holds 28 unpatented claims, totaling 560 acres, adjacent the 4 patented claims of the McKinley Mine and covering part of the 1,518 acres of surface lands contained in the Rupp Lease. These claims require an annual claim fee payment to the BLM. NJMC has dropped the mineral lease for the 4 patented claims where the historic McKinley Mine workings are located (shown in white on the area map). The patents are shown on the map due to beginning with our existing claim block. The patents are not owned by NJMC.
The McKinley-Monarch Property is located in the Simpson Mining District and was first prospected in 1891. The nearby McKinley Mine, intermittently active until World War II, was the largest known lode mine in a district better known for its placer gold production. Today the McKinley Mine is owned by the Japanese firm of PM & Gold Mines, Inc.
In 2012, ICR conducted a ground magnetic survey of approximately 2.4 by 5.6 kilometers over the McKinley-Monarch property. The survey indicates that potentially major structures passing through the district are associated with some degree of demagnetization. It also indicates the potential of mineralization south from the McKinley Mine, including historic mines and prospects that extend for several miles along the known trend on the McKinley-Monarch holdings.
Geology and Mineralization
The McKinley-Monarch Project is located within the rocks of the Riggins and Seven Devils Groups of the Blue Mountains Island-Arc Complex. The metasediments of the accreted Riggins and Seven Devils Groups are considered to be the source of coarse gold found in the nearby historic placer operations. Mapping and geophysics both suggest major northerly trending fault structures cut these metasediments. Rock alteration consists of carbonization and silicification. Gold mineralization is associated with auriferous pyrite and quartz-carbonate veining. The McKinley-Monarch Project covers a large area of alteration and mineralization that can be classified as an orogenic gold model, also known as quartz-carbonate vein type deposits.
Present Condition, Work Completed, and Exploration Plans
Surface mapping and sampling by NJMC identified two areas with significant gold mineralization in outcrop: the Monarch Zone, about one kilometer S-SW of the McKinley Mine, and along Fiddle Creek, which crosses the southern portion of the property. At the Monarch Zone, several samples returned high-grade gold with values up to 26 gpt. At Fiddle Creek, 10 of 20 samples exceeded 3 gpt gold with one sample exceeding 50 gpt gold. Both areas have had historic prospecting but no significant development and much of the ground between these prospects remains unexplored. More geologic fieldwork is planned for the upcoming season to explore for additional gold mineralization between the Monarch and Fiddle Creek zones to follow-up on the high-grade gold that was encountered along the known trend, from the Monarch Zone south to Fiddle Creek.