Pony Creek Project

Site Name

Primary: Pony Creek Project
Secondary: Pony Creek/Elliot Dome Project
Secondary: North Pony Creek

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Commodity

Primary: Gold
Tertiary: Antimony
Tertiary: Arsenic

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Location

State: Nevada
County: Elko
District: Larrabee District

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Land Status

Land ownership: BLM Administrative Area
Note: the land ownership field only identifies whether the area the mine is in is generally on public lands like Forest Service or BLM land, or if it is in an area that is generally private property. It does not definitively identify property status, nor does it indicate claim status or whether an area is open to prospecting. Always respect private property.
Administrative Organization: Elko BLM Administrative District

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Holdings

Not available

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Workings

Not available

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Ownership

Owner Name: Grandview Gold Inc.
Info Year: 2004

Owner Name: Mill City International Corp. /Grandview Gold Inc.
Info Year: 2004

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Production

Not available

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Deposit

Record Type: Site
Operation Category: Producer
Deposit Type: Epithermal Vein
Operation Type: Surface
Years of Production:
Organization:
Significant: Y
Deposit Size: M

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Physiography

Not available

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Mineral Deposit Model

Model Name: Epithermal vein, Comstock

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Orebody

Form: tabular; disseminated

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Structure

Type: L
Description: Pinyon Range Anticline and Pinyon Graben

Type: R
Description: The Pony Creek/Elliot Dome Project lies within the southern extension of the Carlin Trend, along the axis of Pinyon Range Anticline, paralleling the crest of the Pinyon Range. The Project area lies within a zone of convergence of two major structural trends which are the boundaries of a north-south series of grabens and half-grabens collectively referred to as the Pinyon Graben. Both the Pinyon Range Anticline and Pinyon Graben are estimated to be of late Mesozoic age.

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Alterations

Alteration Type: L
Alteration Text: Alteration within the rhyolite intrusive is characterized by quartz-sericite-pyrite mineralization associated with north and north-east-trending faults. The shear zones are fragmental and/or brecciated, containing very fine-grained quartz, sericite, and pyrite or limonite. Pyrite occurs secondary in fractures. Away from the shear zones the rhyolite gradually becomes fresher, grading outward from a rock with relict feldspar ghosts to one with a distinct porphyritic texture. In the center of the intrusion the rocks have a granular texture in which the feldspars have been altered, leaving open, clay-filled vugs. ?Sanded rhyolite? and ?rhyolite sand? are terms used by Newmont to describe a unique texture of the rhyolite often occurring in mineralized areas. The sanded rhyolite consists of medium-grained rounded clasts of glassy rhyolite breccia occurring near the margins and at the base of the intrusive. Sediments along the margins of the rhyolite intrusive and immediately beneath it have been silicified, decalcified and sulfidized. In and around the mineralized cells, the sediments have been extensively oxidized (hypogene).

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Rocks

Name: Mixed Clastic/Volcanic Rock
Role: Host
Description: adjacent to the intrusive
Age Type: Host Rock
Age Young: Permian
Age Old: Mississippian

Name: Porphyry
Role: Host
Description: rhyolite
Age Type: Host Rock
Age Young: Eocene

Name: Rhyolite
Role: Host
Description: intrusive
Age Type: Host Rock
Age Young: Tertiary

Name: Felsic Volcanic Rock
Role: Host
Description: felsite breccias
Age Type: Host Rock
Age Young: Mississippian

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Analytical Data

Not available

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Materials

Ore: Gold
Gangue: Marcasite
Gangue: Pyrite
Gangue: Realgar
Gangue: Stibnite
Gangue: Sericite
Gangue: Pyrite
Gangue: Limonite
Gangue: Quartz

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Comments

Comment (Economic Factors): In 1994, the Pony Creek property was reported to contain a geologic resource 1.1 million tons grading 0.057 opt gold. In 2006, the Pony Creek property was reported to have an inferred gold resource above 500 feet of 1,426,000 ounces contained in 32,410,000 tons with an average grade of 0.044 oz/ton Au. This shallow resource was calculated after compiling and reviewing all of the historic data on the property and is based on 151 drill holes from a property wide data base of 175 holes. In 2004, a new resource calclation was prepared as follows: Indicated Resources are 1,124,000 tons grading 0.058 ounces of gold per ton for a total of 65,000 contained ounces. Inferred Resources are 32,409,000 tons grading 0.044 ounces of gold per ton for a total of 1,426,000 contained ounces. Potential Resources are 58,750,000 tons grading 0.044 ounces of gold per ton for a total of 2,585,000 contained ounces.

Comment (Commodity): Ore Materials: gold

Comment (Development): Mineral exploration in southwest Elko County has been occurring since the late 1850s when various prospectors, on their way to the California gold fields, passed through Nevada. In 1869, silver, gold, copper, lead and zinc were discovered 13 miles to the north of the Pony Creek/Elliot Dome Project in the Railroad mining district. This district was worked heavily for copper, lead and silver through the late 19th century and into the early 20th century, with an estimated US$4.7 million in lead, copper, silver, gold and zinc being produced between 1869 and 1968.In 1980, during a search for additional gold deposits along the Carlin Trend, Newmont completed a regional stream sediment sampling program, which returned anomalous gold and arsenic values associated with a large, rhyolitic intrusive igneous body on what is now the Pony Creek Property. Newmont subsequently located 100 claims to cover the prospect during the same year and added a further 80 claims in 1982 to cover additional ground in the Property area. Following the completion of over 50,000 feet of drilling between 1981 and 1989, Newmont outlined a significant gold resource on the Pony Creek Property located within 500 feet of the surface, hosted by the rhyolite intrusive and silicified Mississippian to Permian sediments located immediately beneath and adjacent to the intrusive. Newmont estimated the gold resource in the Upper and Lower Bowl areas (the southern portion of the claim boundary) to be 1.124 million tons grading 0.058 ounces per ton, for approximately 65,000 ounces of contained gold . This estimate did not include any additional mineralization outside of the Bowl area. Newmont continued to explore the Pony Creek Property up until 1990 when they entered into a joint venture agreement with Westmont Mining, Inc. Since 1980, approximately US$5.0 million has been spent on exploration of the Pony Creek/Elliot Dome Project, during which time a number of different companies have completed exploration and development work on the Project. In July 2003, the Pony Creek Property was acquired by Mill City. A document outlining the Property?s gold potential prepared by the company in March 2004, resulted in the calculation of new resource estimates for gold mineralization known to occur over an area of 2.4 miles long by 2,000 to 4,800 feet wide ? an area well beyond the Bowl area mineralization. Based on available data, an inferred gold resource of 32.4 million tons at a grade of 0.044 ounces of gold per ton was calculated, equivalent to 1.43 million ounces of contained gold. Based on the known geologic and grade continuity of this type of deposit in north-central Grandview Gold Inc. has the option to earn a 60% interest in the Pony Creek/Elliot Dome Project (the ?Project?) located in the southern extension of the Carlin Trend. Since 1980, approximately $5.0 million has been spent on exploration of the Pony Creek Project. Past work conducted by companies including Newmont, Barrick, Uranerz and Homestake has included stream sediment sampling, soil sampling and geochemistry, mapping, geophysical surveys, data compilation and analysis and RC drilling. A total of 175 drill holes (95,511 feet) have been drilled on the Pony Creek Property to date. From 167 drill holes, for which information is available, 88 drill holes (50.3%) have gold intercepts of at least 5.0 feet grading 0.010 ounces of gold per ton. Grandview Company believes that, based on the geologic setting at Pony Creek, considerable potential exists for the identification of additional resources at depth, below the 500 foot level.

Comment (Workings): To date, no mineral production has been recorded from the Pony Creek Property and no workings larger than a few small prospect pits are known from the area.

Comment (Commodity): Gangue Materials: marcasite, pyrite, minor realgar and stibnite. Quartz, sericite, pyrite and limonite.

Comment (Geology): Most of the Pony Creek Project is underlain by the Mississippian Webb Formation, which was thrust into current position by the Roberts Mountains Thrust Fault, overlying the Devonian Devils Gate Limestone but underlying the Diamond Peak and Chainman Shale Formations. The Webb Formation, consisting primarily of siliceous mudstone and calcareous siltstone, is the primary host rock for gold mineralization in the South Pinyon Range (as it is at the Rain, South Bullion and Trout Creek deposits. The Webb Formation remains untested at the Pony Creek/Elliot Dome Project. Middle to upper Devonian carbonate rocks through Permian clastic sedimentary are exposed at surface through the Pony Creek Property. Within the Pinon Graben, the south-plunging Pinon Range Anticline exposes progressively older units toward the north. Also within the Graben is a north-south trending, elongate rhyolite porphyry intrusive body of probable Eocene age. This sill-like body, which has intruded the Palaeozoic aged sedimentary rocks along the axis of the Pinyon Range Anticline, is composed of two lobes and contains rocks that have been variously described as rhyolite, felsite or felsic porphyry. Older, Tertiary sedimentary rocks of Palaeocene to Eocene age, composed of conglomerate, sandstone, siltstone and limestone are found to the northeast of the Pony Creek/Elliot Dome Project area.

Comment (Deposit): All significant gold mineralization outlined to date on the Pony Creek Property appears to be directly related to felsite breccias formed within a rhyolite intrusive. Over 90% of the mineralization on the property lies within 500 feet of the surface and occurs primarily along north and north-east trending structures within the rhyolite intrusive body and in silicified and altered Mississippian to Permian clastic rocks immediately beneath and adjacent to the intrusive. Gold mineralization is directly related to felsite breccias formed within the rhyolite intrusive body either by phreatomagmatic processes, faulting, or both. Over 90% of the mineralization on the property lies within 500 feet of the surface and occurs primarily along north and north-east trending structures within the rhyolite intrusive body and in silicified and altered Mississippian to Permian clastic rocks immediately beneath and adjacent to the intrusive. Mineralization in the southern portion of the Pony Creek claim boundary (known as the Bowl area) is located within the southern lobe of the rhyolite intrusive and consists of an assemblage of marcasite and pyrite with minor realgar and stibnite. Two continuous zones of mineralization have been recognized within the Bowl area. The first is a tabular mineralized zone. Presumed to be flat-lying, this zone occurs near the base of the felsite body. The second zone occurs in a steeply dipping, north-trending structure. Gold mineralization is developed along fractures and disseminated in permeable zones in the intrusive and in the matrix of felsite breccias. Past drilling completed by Newmont has indicated that gold in the Bowl area occurs within a large cell of alteration approximately 5,000 feet long by 2,500 feet wide, containing widespread low-grade gold mineralization in the 0.010 to 0.045 ounce per ton range.

Comment (Location): The Pony Creek Project is currently divided into two claim blocks, with the main claim block, referred to as Pony Creek Property, consisting of 580 contiguous claims covering 11,600 acres. The second block of claims, located to the north of the Pony Creek Property near the Trout Creek gold deposit, is referred to as the Elliot Dome Property and consists of 95 claims, which were added to the project in September 2003 by Mill City International. The primary current exploration focus is on the Pony Creek Property, which is the site of all mineralization outlined on the Project to date. North Pony Creek is in sections 28 and 33.

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References

Reference (Deposit): Amer. Mines 1996-2000

Reference (Deposit): http://www.standardmining.com
URL: http://www.standardmining.com

Reference (Deposit): NBMG Pony Creek Mining District file # 74, Item 31.

Reference (Deposit): Quest International 1996 SEC Form 20-F; 1998

Reference (Deposit): Coats, NBMG Bull 101

Reference (Deposit): NBMG MI-96 through NBMG MI-02

Reference (Deposit): Long, K.R., DeYoung, J.H., Jr., and Ludington, S.D., 1998, Significant deposits of gold, silver, copper, lead, and zinc in the United States: U.S. Geological Survey Open-File Report 90-206A, 33 p.; 98-206B. one 3.5 inch diskette.

Reference (Deposit): www.millcityinternational.com

Reference (Deposit): LaPointe and others, 1991, NBMG Bull 106

Reference (Deposit): Ruby Lake Land Status, 1978

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Nevada Gold

Nevada has a total of 368 distinct gold districts. Of the of those, just 36 are major producers with production and/or reserves of over 1,000,000 ounces, 49 have production and/or reserves of over 100,000 ounces, with the rest having less than 100,000 ounces. Read more: Gold Districts of Nevada.