Ratto Canyon - Windfall Mine, Eureka County, NV

This property encompasses the original Windfall Mine in the Eureka District, where 170,000 oz of gold was recovered by cyanide leaching. This was one of the earliest cyanide heap facilities in the state which operated in the 1970's. The ore is a sanded dolomite which leaches very easily and does not require agglomeration.

The original Windfall Mine was operated underground in the early part of the century. Portions of the sanded dolomite orebodies had gold grades of 0.3 opt. The average of the heap leach orebodies was in the 0.03 ounce per ton range. The Windfall-Ratto Canyon area lies adjacent to and west of the Hoosac property under option to Staccato Gold. Presently, there is a drill indicated resource of 60,000 ounces of gold, defined in a series of shallow holes.

This area was explored by several minor and major exploration firms in the past, and was in litigation in the early 1990's. The property consists of 12,000 acres of patented and unpatented mining claims,which offer at least 10 areas with drill indicated gold resources. The resources indicated to date include leachable oxide ore, as well as structural targets with up to 0.75 ounces per ton gold. Collectively, the resources represent 530,000 ounces of drill indicated mineralization. This target offers an exciting area to add some substantial reserves to the occurrences defined to date.

Another area on the property is the Ratto Canyon area, explored by Amselco in the 1980's. The most obvious mineralization in this area is the Lookout Mountain pit where oxide and sulfide mineralization is exposed. The oxide was worked in the late 1980's. The high grade sulfide zone displays grades of up to 0.7 oz per ton gold in the Lookout Mountain pit.

The Ratto Ridge area is a linear zone of jasperoid in Cambrian dolomite and Dunderburg shale. A second resource is identified as the South Adit where 28,000 oz is identified in drilling.

The Oswego-Gedder Bertrand area has two styles of mineralization, very similar to the main part of the Eureka District. The base metal mineralization with high silver values is present here as well as the high gold values associated with toxic elements.

These varied targets have received shallow exploration efforts over the years, with limited success. A well-organized exploration effort should be successful in this area of defining and extending known areas of mineralization.

The area is cut by NNW trending anticlines and synclines, cut by NNE structural zones. The intersection of the structural zones, and the antiformal structures has a high incidence of exposed mineralization and known production.

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