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On September 1, 2009, Gunpoint Exploration Ltd. signed an agreement with FRRC to jointly explore the Zebra Project in the Walker Lane Gold trend of western Nevada. The property is located approximately 20 km. due west of Newmont's Midas mine and directly north of Yamana/Atna's recent discovery at their Clover Project. Outcropping hydrothermal breccias and epithermal veining within the Zebra project indicates a very shallow level of erosion, similar to what has been observed at the adjacent Clover Project.
The Zebra project consists of 85 lode mining claims covering approximately 680 hectares on land managed by the Bureau of Land Management. Zebra's setting is along the Northern Nevada Rift, a major geological feature in Nevada associated with multi-million ounce, high-grade gold deposits such as the Buckhorn, Mule Canyon, Fire Creek, and Newmont's Midas mine, and is adjacent to, and along strike with Yamana/Atna's Clover project which has produced several drill intercepts of +30 g/t gold.
Recent exploration included
The Company made an initial payment of US$15,000 during the fiscal year 2010. Christopher James and FRRC have to contribute equally in order to earn a 50% interest in the Zebra property, subject to a standard dilution formula. Annual minimum royalties will be due starting on the first anniversary, beginning at US$10,000 and increasing yearly by US$10,000 to a maximum of US$50,000 annually. FRRC and Christopher James will be responsible for claim-holding fees unless the property option is terminated by June 1st of each year.
The project is subject to an underlying royalty of 3% NSR, of which 1% NSR can be purchased for US$1,000,000 and a second 1% NSR can be purchased for US$1,500,000.
Initial work on the Zebra property has included the compilation of historical data, including compiling regional geologic data in preparation for field work to be performed in the summer. Previous exploration data has been compiled into a digital data set. The Company performed a brief field visit in August. Several samples were taken for archival purposes. The Company acquired Aster imagery and 1-m resolution colour orthophotos for the property to assist in targeting zones of alteration. A detailed geochemical rock and soil and geological mapping program was completed in the fall of 2010. The mapping and sampling program focused on structurally controlled mineralization, including quartz veining in-situ and as float.
The Company is considering a detailed soil survey for Spring/Summer 2011, as well as additional mapping and sampling. Future work will be based on the results of the geochemical/mapping program.
