Report to:
CYPRESS DEVELOPMENT CORP.
GUNMAN ZINC-SILVER PROJECT NATIONAL INSTRUMENT 43-101 COMPLIANT TECHNICAL REPORT MARCH 2014 Prepared by Robert D. Marvin
Date
March 17, 2014
Cypress Deveopment Corp. Suite 1610 - 777 Dunsmuir Street Vancouver, BC Canada V7Y 1K4
Jasperoid Alteration in a Exploration Road Cut, RH Zone, Gunman Project
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REVISION HISTORY REV. NO
ISSUE DATE
PREPARED BY AND DATE
Cypress Development Corp Gunman NI 43-101 Compliant Technical Report
REVIEWED BY AND DATE
APPROVED BY AND DATE
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DESCRIPTION OF REVISION
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TABLE OF CONTENTS
1.0
SUMMARY .......................................................................................................................... 7
2.0
INTRODUCTION AND TERMS OF REFERENCE ............................................................ 12 2.1 2.2 2.3 2.4 2.5
INTRODUCTION ................................................................................................................... 12 TERMS OF REFERENCE ....................................................................................................... 12 SOURCES OF INFORMATION ................................................................................................. 12 PROJECT MANAGEMENT AND SITE PRESENCE...................................................................... 13 UNITS & CURRENCY ............................................................................................................ 13
3.0
RELIANCE ON OTHER EXPERTS ................................................................................... 14
4.0
PROPERTY DESCRIPTION AND LOCATION ................................................................. 15 4.1 4.2 4.3 4.4 4.5 4.6 4.7
5.0
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .............................................................................................................. 19 5.1 5.2 5.3 5.4
6.0
ACCESS .............................................................................................................................. 19 LOCAL RESOURCES ............................................................................................................ 20 CLIMATE ............................................................................................................................. 20 PHYSIOGRAPHY .................................................................................................................. 20
HISTORY........................................................................................................................... 23 6.1
7.0
LOCATION ........................................................................................................................... 15 MINERAL RIGHTS DISPOSITION ............................................................................................ 15 TENURE RIGHTS ................................................................................................................. 18 RESOURCES, RESERVES, DEVELOPMENT AND INFRASTRUCTURE.......................................... 18 LEGAL SURVEY ................................................................................................................... 18 ENVIRONMENTAL LIABILITIES ............................................................................................... 18 PERMITS ............................................................................................................................. 18
COMPILATION OF REPORTS ON EXPLORATION PROGRAMS ................................................... 27
GEOLOGICAL SETTING & MINERALIZATION ............................................................... 28 7.1 7.2 7.3
DISTRICT GEOLOGY ............................................................................................................ 28 PROPERTY GEOLOGY.......................................................................................................... 32 PROPERTY MINERALIZATION ................................................................................................ 38
8.0
DEPOSIT TYPE................................................................................................................. 47
9.0
EXPLORATION ................................................................................................................. 48 9.1
REVERSE CIRCULATION DRILLING ........................................................................................ 48
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9.2
10.0
DRILLING .......................................................................................................................... 50 10.1 10.2
11.0
DIAMOND DRILLING ............................................................................................................. 49 WMC ................................................................................................................................. 50 CYPRESS VENTURES .......................................................................................................... 50
SAMPLE PREPARATION, ANALYSIS & SECURITY ...................................................... 55 11.1 11.2 11.3
SAMPLE PREPARATION AND ASSAYING ................................................................................ 55 QUALITY ASSURANCE & QUALITY CONTROL ......................................................................... 56 SECURITY ........................................................................................................................... 56
12.0
MINERAL PROCESSING & METALURGICAL TESTING ................................................ 58
13.0
MINERAL RESOURCE ESTIMATES ................................................................................ 59
14.0
MINERAL RESERVE ESTIMATES ................................................................................... 60
15.0
MINING METHODS ........................................................................................................... 61
16.0
RECOVERY METHODS.................................................................................................... 62
17.0
PROJECT INFRASTRUCTURE ........................................................................................ 64
18.0
MARKET STUDIES ........................................................................................................... 65
19.0
ENVIRONMENTAL STUDIES, PERMITS, & SOCIAL OR COMMUNITY IMPACTS ........ 66
20.0
CAPITAL & OPERATING COSTS .................................................................................... 67
21.0
ECONOMIC ANALYSIS .................................................................................................... 68
22.0
ADJACENT PROPERTIES ............................................................................................... 69
23.0
OTHER RELEVANT DATA & INFORMATION ................................................................. 70
24.0
INTERPRETATION & CONCLUSIONS ............................................................................ 71
25.0
RECOMMENDATIONS ..................................................................................................... 74
26.0
DATE & SIGNATURE PAGE ............................................................................................ 77
CERTIFICATE ................................................................................................................................ 78 REFERENCES ............................................................................................................................... 79
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LIST OF FIGURES Figure 1-1 District Early Age Tertiary Geology…………………………..………………………...11 Figure 5-2b Coring at RH South. View to South Towards the Pan Project. ............................... 22
LIST OF TABLES Table 1 Cypress Lode Claim NMC#’’s……………………………………………………………….15 Table 2 Cominco Ltd. XRD Analysis Results………………………………………………………..38 Table 3 Significant Assays…………………………………………………………………………….41 Table 4 Diamond Drill Hole Inventory………………………………………………………………..50 Table 5 Cominco Acetic Acid Leach Test Results vs. ICP Assays……………………………….60
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GLOSSARY U N IT S
OF
M EA S U R E
Centimetre ....................................................................................................................................... cm 3 Cubic centimetre .............................................................................................................................. cm Degrees Fahrenheit ......................................................................................................................... °F Gram ................................................................................................................................................ g Part per million (1 ppm = 1 gram)…………………………………………………………………………….ppm Acre (43,560 square feet) ................................................................................................................ ft Kilometre .......................................................................................................................................... km Mile……………………………………………………………………………………………………………….mi Metre ................................................................................................................................................ m Millimetre.......................................................................................................................................... mm Percent.............................................................................................................................................
A C R ON YM S
AND
%
A B B R EV I A T I ON S
Nevada Mining Claim Number……………………………………………………………………………….NMC# Bureau of Land Management…………………………………………………………………………………BLM North ................................................................................................................................................ N East.................................................................................................................................................. E South ............................................................................................................................................... S West................................................................................................................................................. W North Northeast…………………………………………………………………………………………………NNE Silica ................................................................................................................................................ SiO2 Gold ................................................................................................................................................. Au Mercury…………………………………………………………………………………………………………..Hg Zinc……………………………………………………………………………………………………………….Zn Silver ................................................................................................................................................ Ag Copper ............................................................................................................................................. Cu Lead ................................................................................................................................................. Pb Arsenic…………………………………………………………………………………………………………..As Antimony……………………………………………………………………………………………………..…Sb
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1.0
SUMMARY Cypress Development Corp. has prepared this technical report detailing base and precious metal exploration results on its 100% owned Gunman Property located in White Pine County, Nevada. Cypress owns the mineral rights to 55 federal lode claims covering approximately 1140 acres. The property location is shown on figure 1-1 below. The map also shows the position of active and historic mines, Tertiary age intrusions, paleo hot spring sinters and jasperiod alteration zones within the southern extension of the regional scale Carlin Trend. Surface sampling and drilling on the property has resulted in the discovery of a series of zones of zinc and silver mineralization over a strike length of approximately 2500 feet. The northern most mineralization known on the property was discovered at the end of the most recent drill program in 2007 and this mineralization remains essentially unexplored. No mineral resource calculations have been done on the Gunman property The mineralization at Gunman appears to be of carbonate replacement style with central zones of massive mineralization being flanked by halos of partial replacement and veining. The replacements are now very strongly oxidized within 400 feet of surface. Rare sulfide mineralization, sphalerite, pyrite and argentite, is seen at the base of the oxidized portion of the high grade zones. Cominco Ltd. conducted a due diligence investigation of the Gunman project following discovery of very high zinc and silver mineralization by Cypress in 2000. As part of the due diligence work, Cominco conducted a series of zinc assays using an acetic acid leach method. The results indicate that zinc recovery from oxidized mineralization at Gunman by acetic acid leaching is excellent. A comparison chart of ICP assay vs. Acetic Acid Leach assay is presented in Section 16 of this report. The mineralization is hosted by karsted, and locally decalcified, silty limestone of Permian age. Zinc and silver mineralized zones are flanked on the east by copper oxide mineralization hosted by a distinctive, decalcified poly-lithic sandstone, also of Permian age. The RH Zone lies in the central portion of the 2500 foot strike length of known mineralization. Mineralization within the RH Zone is spectacular for its zinc and silver grade, for the down hole interval length of the very high grade mineralization and for the continuous nature of zinc grades in excess of 5% accompanied by multi ounce silver values. The mineralization is also located close to surface.
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Very impressive oxide zinc and silver mineralization was found in reverse circulation drilling of the RH Zone in several holes including hole GM-26 in August of 2000. The interval from 40 to 250 feet down hole, a 210 foot interval, including lower grade upper and lower contact zones, grades 13.1% zinc and 126 ppm silver. This interval includes a 165 foot interval from 50 feet down hole to 215 feet down hole that assayed 16.6% zinc and 156 ppm silver. A potential analog to the zinc and silver mineralization at the Gunman property is found at the Eureka mining district, located 27 miles SSW of the project. A series of high grade precious metal – base metal carbonate replacement deposits were mined historically at Eureka. These were described by the USGS in 1884, and many times since, as being of intrusion related, carbonate replacement type. The deposits were worked as under-ground operations and were famous for very high grade oxide mineralization containing very high lead, zinc, silver and gold. It is noted here that, unlike in the Eureka district, no intrusions have been identified at Gunman. Mineralization at Gunman appears to be controlled by a series of welldeveloped NNE trending fracture zones. This setting is seen in other locations along the Carlin and Battle Mountain gold trends where north-south to NNE alignments of mineralization and ore zones are located in cross cutting structural zones within or adjacent to the main NNW striking trends. Jasperiod rubble crop lies at surface along the western flank of the largest and highest grade of the discovered zones at Gunman. These jasperoid boulders and rubble crop are highly anomalous in Zn-Ag-Au-As-Cu and Hg, a geochemical signature common in jasperoids within controlling faults above and within Carlin style gold deposits. The complex carbonate and calcareous clastic sediments that host the known mineralization lie in the east limb of a north striking syncline. This rock package dips steeply west into the nose of the syncline located in the western portion of the property. The syncline is cut by a series of well-developed N-S trending fault-fracture zones that appear to control the position of mineralization. Fracturing along the axis of the syncline is covered by the Cypress claim block but has not been explored by drilling to date and represents one of the high quality exploration targets on the property. The very high grade of zinc and silver mineralization in the RH Zone is a compelling reason to continue exploration on the Gunman property. Five main exploration targets have been identified and exploration recommendations are made for each of them in this report. The five targets are: 1. North RH Zone. Hole GD-15 intersected multiple zones of zinc-silver mineralization in a position approximately 1300 feet north of the RH Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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Zone. The grade of the mineralization in the hole is from 0.5 to 2.0% Zn and has accompanying Ag mineralization in the 5 to 15 ppm range. This low grade mineralization is very similar to that seen on both the east and west flanks of the RH Zone. 1200 feet of RC drilling in a position north and east of GD-15 is recommended. 2. Confirmation drilling of the high grade RH Zone is recommended in order to provide high quality data for a resource estimation and to obtain large samples of mineralization for metal recovery studies. Approximately 1000 feet of RC drilling is needed. 3. Down-dip exploration of the east limb of the syncline. No systematic exploration of the deeper extensions of the RH Zone has been done. It is recommended that an east-west fence of holes be completed into the footwall carbonaceous shale which underlies the known mineralization at RH. A total of 1800 feet of RC drilling is recommended. 4. Syncline axis exploration west of the RH Zone. Surface mapping and analysis of detailed DEM and satellite imagery indicate that the axis of the syncline at Gunman is strongly fractured. No drilling of the axis of the fold has been done. Drill testing of the target in a position downdip of the RH Zone would require two holes totalling 1400 feet. 5. Surface sampling of carbonate rubble crop in the far north portion of the property, the Far North Target Area is strongly recommended as preliminary observations made during the staking of the north extension claims indicate that abundant altered carbonate rock rubble crop or near source float is present in a position roughly on strike with the known mineralization to the south. Identification of significant Zn or Ag mineralization in the north portion of the property would immediately increase the scope of the project.
A phased approach to the recommended work is the most efficient way to proceed. Phase 1 would include items 1 and 2 above, the very important exploration drilling around RH North discovery hole GD-15 and the confirmation\bulk sample drilling of the RH Zone. This would amount to the drilling of 8 - 10 holes and a total of 2200 feet of R-C drilling. The phase 1 program should also include surface sampling in the Far North Target Area as this area has the potential to materially change the scope of the project at a very modest cost. Phase 1 drilling and surface sampling is estimated to cost approximately $90,000, all in, right through to a final report on results.
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The drilling of the down dip RH target and the syncline axis fracture zone target along with follow-up and further extension drilling at RH North is recommended to form the core exploration work of a Phase 2 program. Drilling of any high quality targets that could result from the Phase 1 surface sampling at the Far North Target area could also be added to Phase 2. Priorities will be identified based on Phase 1 results. The Phase 2 program would entail approximately 4000 feet of R-C drilling and is estimated to cost $135,000. A total expenditure in the Phase 1 and 2 programs of approximately $225,000 would advance the core RH South, RH and RH North portion of the property to a state of readiness for a resource calculation as well as conduct important extension exploration in the Far North Exploration area. Cypress Development’s Gunman project is well located on the margin of the Carlin Trend and contains zones of carbonate replacement style, high grade zinc and silver oxide mineralization. Cypress intends to extend this type of mineralization along strike while also closely monitoring gold and trace element data for any indications of a potentially more gold rich portion of the system. High quality exploration targets remain on the property. These include detailed targets in the RH and RH North areas. The area around north extension hole GD-15 needs additional drilling to explore for high grade. The fault – fracture zone along the axis of the syncline west of the RH Zone remains unexplored. In addition, mapping by the USGS in 1963 and more recent mapping by Cypress indicates that a carbonate conglomerate cap rock outcrops in the northern portion of the property. This unit appears to have acted as a cap rock during mineralization at RH. The northern portion of the property remains essentially unexplored, either at surface or beneath the cap rock. Exploration of this area along the projection of the NNE mineral trend presents a very attractive grass roots target, see Section 24 of this report.
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2.0
2.1
INTRODUCTION AND TERMS OF REFERENCE INTRODUCTION Cypress Development Corp. ("Cypress") hereby presents a National Instrument 43-101 compliant Technical Report summarizing exploration drilling results and other relevant data for their Gunman property near Eureka, Nevada. The report has been prepared in compliance with the standards of the Canadian Securities Administrators' NI 43-101.
2.2
TERMS
OF
REFERENCE
Cypress has completed 64 reverse circulation (R-C) holes for 29930 feet and 17 “NQ” diamond drill holes totaling 11,516 feet of drilling on the Gunman property, located in eastern White Pine County, Nevada. This NI 43-101 Technical Report is intended to provide a detailed accounting of Cypress’s exploration of the Gunman property and to provide interpretations of the compiled data for the purposes of proposing additional exploration for silver and zinc and potentially for gold mineralization on the property. The Gunman property is located in a region of active open pit mining of sediment hosted gold deposits. Mine construction is currently underway at the Pan Project, located 39 miles south of the Gunman property. The Bald Mountain mining complex operated by Barrick Gold is located 10 miles east of the property. Base metal production from high grade ores has occurred in the Bald Mountain area and in the nearby Eureka district. Robert D. Marvin, PGeo, CPG, was authorized to complete this NI 43-101 Technical Report by Mr. Don Huston, President, Cypress Development Corp.
2.3
SOURCES
OF INFORMATION
To prepare this report, Cypress has relied dominantly on our own data from completed exploration on the property and also on USGS and NBM reports in addition to information publically available on websites of mining companies working in the area. Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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2.4
PROJECT MANAGEMENT
AND
SITE PRESENCE
Mr. Robert Marvin, P.Geo., has been present and directed all drilling and other surveys completed on property since 2001.
2.5
UNITS & CURRENCY Throughout this report, measurements are in imperial units (feet and miles) for all down hole drill data including assays. , Drill hole collar locations are in UTM NAD 83 meters. The use of both imperial and metric units for the program is necessary due to 10 foot drill rods being used. UTM meters is used for drill hole locations due to the convenience and more reliable interaction with other map data in GIS data compilation work. Silver (Ag) assay values are presented as parts per million (ppm), base metal values are presented as % Zinc (Zn). For reference, 1 ppm equals 1 gram.
Currency amounts for estimated costs of recommended additional exploration drilling are quoted in US dollars unless otherwise noted.
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3.0
RELIANCE ON OTHER EXPERTS Cypress prepared this study using our compiled database and the resource materials, reports and documents as noted in the text and "References" at the end of this report. Mineral rights ownership through lode claims data in this report was summarized directly from Bureau of Land Management (BLM) records and is backed up by examination of Cypress’s internal records of transactions regarding acquisition of Mineral Rights for the property. All mineral rights owned by Cypress are the result of the Mining Law of 1872 and are on public lands administered by the BLM.
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4.0 4.1
PROPERTY DESCRIPTION AND LOCATION LOCATION The Gunman property is located around 606300 East, 4414500 North, UTM NAD 83, Zone 11 North datum, in eastern White Pine County, Nevada. The location is about 30 miles north-east of the town of Eureka, Nevada. And 66 miles south of Elko, Nevada (figure 4-1). The Property lies entirely within Township, 23N, R55E, Mt Diablo Meridian. The Property is accessed off of paved state highway 892.
4.2
MINERAL RIGHTS DISPOSITION The Gunman property consists of 55 lode mining claims. The claims lie in surveyed territory within portions of sections 2,11,14 and 23, T55N, R23E in eastern White Pine County, Nevada (figure 4-2). The claims are each 600 x 1500 feet in size or about 20.5 acres each and together cover an area of about 1140 acres. The claims require annual filing of an Intent to Hold and cash payments to the BLM and White Pine County totaling $154.50 per claim. The claims are subject to a 2% NSR in favor the original property vendor (transaction in 1999) White Pine Minerals. Table 1 below lists the Cypress federal lode claims at Gunman for which Nevada Lode Claim numbers are available.
Claim #
NMC #
Claim #
NMC #
Claim #
NMC #
Gunman-1
814693
Gunman-20
1079807
Gunman-63
1079811
Gunman-2
814694
Gunman-21
1079808
Gunman-64
1079821
Gunman-3
814695
Gunman-22
1079809
Gunman-81
1079812
Gunman-4
814696
Gunman-23
1079810
Gunman-82
1079815
Gunman-5
814697
Gunman-24
814716
Gunman-83
1079813
Gunman-6
814698
Gunman-25
814717
Gunman-84
1079816
Gunman-7
814699
Gunman-59
1079817
Gunman-85
1079814
Gunman-8
814700
Gunman-60
1079818
Gunman-86
1079822
Gunman-9
814701
Gunman-61
1079819
Gunman-10
814702
Gunman-62
1079820
Note that recently staked claims GM-101 to GM-112 and Gunman 16, 17, 18, 28, 29, 30,31, 32, 33, 36, 37, 38, 39, 40 and 41 are awaiting assignment of NMC#’s by the BLM. Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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Cypress completed its 100% earn in (less the 2% NSR) in 2000 by expending $360,000 in exploration on the property. No annual expenditures or payments, other than those to the county and BLM are required for Cypress to retain the property.
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4.3
TENURE RIGHTS Cypress owns 55 lode mining claims as shown figure 4-2 above. The claims are all in good standing with the BLM and White Pine County.
4.4
RESOURCES, RESERVES, DEVELOPMENT
AND INFRASTRUCTURE
The property is located in a region of active open pit mining of sediment hosted gold deposits. Operators in the region include Barrick Gold and Midway Gold. There are no resources defined on the Gunman property at present. Recommendations for additional drilling made in this report are in part designed to provide additional assay data needed to better prepare for potential resource estimation in the future. The property lies in close proximity to paved roads, power lines and regional towns and cities that service the mining industry. Railroad lines are located 60 miles north of project where they pass through the major mining centers of Carlin and Elko.
4.5
LEGAL SURVEY The 55 federal lode claims are survey tied to brass caps of the existing federal land survey in the area.
4.6
ENVIRONMENTAL LIABILITIES The Gunman lies in a "green fields" exploration area. There are small scale pits and trenches from historic exploration efforts of copper oxide outcrops on the property. None of these small disturbances appear to have any environmental liability. No buildings, mills, leach pads or other infrastructure has ever existed on the property.
4.7
PERMITS A standard permit for the disturbance needed to conduct the exploration recommended in this report has been applied for with the BLM office in Ely, Nevada. Approval of this routine permit is expected by late March if not sooner.
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5.0
5.1
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ACCESS The property is best accessed by paved roads covering 47 miles from the mining center of Eureka to the turn off from state highway 892 on dirt roads that lead the last 2 miles to the property. Access by all-weather roads is also available from the major mining and regional transportation center of Elko, located 66 miles north of the property. Elko in on the Interstate highway system and on the regional rail lines. Scheduled flights into Elko are available daily.
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5.2
LOCAL RESOURCES Mining center cities of Eureka, Elko and Ely are all within 1 to 1.5 hours drive of the property. The rapidly growing city of Elko is the largest of these cities with a population of 20,000 (2012 census). Regional power grids run near the property. High voltage power lines serve the active Bald Mountain mine located 10 miles away from the project.
5.3
CLIMATE The climate of the Great Basin, including the project area is hot in summer, average high temps around 90 F and cold in the winter with average daily lows of 0 to 10 F. Precipitation is evenly divided between summer thunder showers and winter rain and snow.
5.4
PHYSIOGRAPHY The Gunman project is located in the Great Basin physiographic region, a large area of basin and range topography. Steep narrow mountain ranges alternate with sloping to flat bottomed valley bottoms. The property is located
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along the west edge of the Newark valley and right at the foot of the Diamond Mountain Range.
Figure 5-2a. Core drilling of the RH Zone in 2007. View to south along the range front of the Diamond Range.
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Figure 5-1b Coring at RH South. View to South Towards the Pan Project.
Figure 5-2c View of RH North to west towards high county of the Diamond Range Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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6.0
HISTORY
Outcropping, oxide copper showings at the Gunman property were explored by prospect pits and shallow shafts during the period from the 1860’s to the 1940’s. No production is recorded. Western Mining Corporation (WMC) conducted an intensive, sediment hosted gold exploration program in the region in the early 1990’s. During this work, WMC geologist Charlie Clark sampled jasperoids and other altered limestone outcrops exposed along the range front on what was to become the Gunman property. Highly anomalous Zn-Ag-Au-As-Cu and Hg assays were returned in the surface assays from the property. The samples contained up to 0.5 grams per ton gold. The geochemical signature of sampled jasperoids is typical of Carlin style gold deposits and WMC immediately staked lode claims covering several square miles centered on the mineralized outcrops and rubble crops at what was to become the RH Zone. WMC quickly moved to drill a series of R-C holes in and around the jasperoid exposures. Results showed zones of mutli percent zinc and up to 2 ounces a ton silver. Gold values were generally low and erratic. WMC completed 26 holes on the property for total of 9335 feet. The significant zinc and silver mineralization was not of interest to WMC at that time and they allowed the claims to lapse in 1996. White Pine minerals staked the property in 1999 and vended the claims to Cypress. Cypress began an aggressive R-C drill program in May, 2000 centered around the jasperoid area. The program was highly successful, Cypress began to discover zinc grades >10% over down hole intervals exceeding 60 feet Mutli ounce silver values were found with the zinc. The RH Zone was partially outlined by September 2000 and additional discoveries of mutli percent zinc and local percent level lead were made at RH South, 800 feet south of the RH Zone. Late in the 2000 drill program, Cypress returned to the RH and began close spaced drilling aimed at both extension and infill. Hole GM-26 intersected a 210 foot down hole interval grading 13.1% zinc and 126 ppm silver. This intercept includes a 100 foot interval starting at a depth 115 feet that grades 22.72% Zn and 231.43 ppm Ag. Five foot sample intervals of up to 37% Zn and 497 ppm Ag (16 oz/ton Ag) were recorded in the hole.
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Hole GM-32 was the final hole of the program and was located as a 30 foot northward extension of the developing high grade RH Zone. Hole GM-32 returned a 115 foot interval of 9.1% Zn and 51.1 ppm Ag starting a vertical depth of 50 feet. Cypress completed 32 reverse circulation drill holes for a total of 17,370 feet at Gunman during 2000 (table 2).
The complete results of the 2000 program are documented in the report Evaluation of the Gunman Project, Nevada, USA, Jan. 2001 written for Cypress Minerals by Mr. David J. Busch. Results and resulting recommendations of surface exploration at the property in 2001 are reported in the following reports: 1: Gunman Project; Nevada; Report and Data, May 25, 2001 by Mr. David J. Busch and 2: June 2001 Surface Prospecting Results and Recommendations by Mr. Robert D. Marvin. Surface work by Cypress in 2001 included the collection of a grid of soil samples that were analyzed by mobile metal ion analysis (MMIA) methods. The MMIA assay method was used as such methods were seen as potentially effective in detecting bedrock mineralization in areas were recent soil or other regolith cover is present. The results of the survey are presented below. In addition, Cominco Ltd. conducted a series of due diligence studies on RC drill cutting from the property. These studies included XRD analysis and a acetic acid leach assay. The studies indicate that smithsonite is the most abundant zinc mineral in oxide mineralization at Gunman and that acetic acid is highly effective at recovering zinc from the oxide material. These studies are detailed later in the report.
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FIGURE 6-1 Zinc in Soil; MMI-A; Showing drill holes to Nov. 2000 and topography.
Cypress returned to the property in 2004 to continue the drill exploration of the 1000 foot strike length containing the mineralized RH and RH South zones identified from the combined WMC and Cypress drilling programs. The other main goal of the 2004 R-C drill program was to test the RH NW Target developed from the results of the MMIA soil sample grid done in 2001. The 2004 drill program totaled 32 holes and a total footage of 8565. The holes were of shallow depth and most were angled at targets at 45 to 60 degrees. The results of the program were disappointing. Extension drill targets on the N and NW flank of the RH Zone returned wide intervals of low grade zinc-silver mineralization but no extension of the RH high grade zone was achieved. A series of angle holes were drilled to the west to test the area immediately under the MMIA NW RH target. These holes intersected low grade zinc and Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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silver mineralization in the upper portion but underlying, oxidized carbonate units were essentially barren in positions under the RH NW target MMIA anomaly. Hole GM04-06 intersected 30 feet starting at surface grading 0.24% Zn and 2.72 ppm Ag. Drilling in the RH South area in 2004 found several zones of moderately welldeveloped mineralization in positions along the south and east flank of the zone. Hole GM04-24 intersected a 65 foot interval of 0.40% Zn and 140 ppm Ag starting at 80 feet down hole. Following the 2004 drill program, Cypress decided to try geophysical methods to attempt to locate indications and targets of deep mineralization under the RH and RH South Zones. A Titan Survey was done over the core of the property covering approximately 4000 feet of strike length along the range front zone that contains the RH and RH South zones. A summary of the 2006 Titan survey results and drill targets is documented in Results and Interpretation of 2006 Geophysical Programs by Mr. Robert Marvin. To very briefly summarize the results of the 2006 Titan here, the survey identified a series of strong conductors at depth below the RH and RH South Zones as well as further south along the range front. An NQ core drilling program designed to test a series of strong Titan survey subsurface conductors was commenced in April 2007. Seventeen NQ core holes were drilled totaling 11,516 feet. Eight of the holes, totaling 6900 feet of drilling, were used confirming the source of the Titan conductor anomalies. The conductors, in all cases were found to be coincident with highly graphitic silty to shaley limestones and dolomitic units. The other nine holes of the program were used testing targets at RH South, at RH and at a new structural trend target, the RH North target. The RH North target was developed as a result of combining the results of the 2004 drill program with structural control concepts for the RH and RH South zones. Weak mineralization was intersected at the top of hole GM04-06 (a 30 foot interval starting at surface grading 0.24% Zn and 2.72 ppm Ag) in apposition immediately west an interpreted feeder structure linking the RH South to RH Zone. 2007 hole GD-15 was collared as a vertical hole at the location of the west angle hole GM04-06. GD-15 intercepted over 200 feet containing numerous intervals of zinc-silver mineralization from 145.8 feet to 352 feet below surface. The mineralization is hosted in a sandy limestone unit identical to the wall rocks of the RH Zone. The best interval was 9.8 feet of 1.5% Zn and 14 ppm Ag starting at 154.3 feet Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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down hole. GD-15 was the first hole to intercept >1.0% zinc in an area outside the RH and RH South zones. Hole GD-15 is located 1400 feet north of the RH Zone and was positioned within 200 feet of the north property boundary. Barrick Gold owned a large block of lode claim that surrounded the north and east flanks of the Cypress claims. Barrick failed to file the claims in 2012 and Cypress staked the ground in September 2012. Cypress has added additional claims to the property by staking in January, 2014 and now controls of 7000 feet of strike length potential beyond the collar of GD-15.
6.1
COMPILATION
OF
REPORTS
ON
EXPLORATION PROGRAMS
Detailed results of the 2000 reverse circulation drill program are documented in the report Evaluation of the Gunman Project, Nevada, USA, Jan. 2001 written for Cypress Minerals by Mr. David J. Busch. Results and resulting recommendations of surface exploration including a self-potential survey and an MMI soil survey at the property in 2001 are reported in the following reports: 1: Gunman Project; Nevada; Report and Data, May 25, 2001 by Mr. David J. Busch and 2: June 2001 Surface Prospecting Results and Recommendations by Mr. Robert D. Marvin. Detailed results of the 2004 reverse circulation drill program are documented in the report 2004 Phase 1 Report written for Cypress Minerals by Mr. Robert Marvin. A summary of the 2006 Titan survey results and drill targets is documented in Results and Interpretation of 2006 Geophysical Programs by Mr. Robert Marvin. The results of NQ core drilling of targets resulting from the Titan survey are documented in 2007 Exploration Drill Program Results, April 30, 2008 by Robert Marvin.
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7.0
7.1
GEOLOGICAL SETTING & MINERALIZATION DISTRICT GEOLOGY The Gunman project lies within a complex sequence of Permian age carbonate and calcareous clastic rocks units (blue colored patterns on the Figure 7-1). The complex nature is the result of numerous erosional and angular disconformities within the sequence. The Permian age stratigraphy overlies chaotic clastic sequences of the Diamond Peak Formation, Mississippian age clastic rocks that are related to emplacement and erosion of the Roberts Mountains Thrust (RMT). The Mississippian sequence is bounded above and below by erosional unconformities. Cambrian, Ordovician and Devonian and lower Mississippian age rocks lie below the Diamond Peak Formation (dark purple colored patterns on Figure 71). This lower sequence is not exposed along the eastern flank of the Diamond Mountains in the vicinity of the Gunman Project. Abundant exposures occur to the east in the Bald Mountain and Alligator Ridge mining areas as well as in Eureka to the SSW of the project. The entire sequence of Cambrian through Permian age rock units are locally intruded by Tertiary age stocks and dikes (bright red on 7-1). Northwest trending stock complexes intrude the early Paleozoic rocks in the Bald Mountain area and further south near Alligator Ridge. A stock is also present in the Diamond Range NNW of the Gunman area. These stocks have a strong spatial relationship to jasperoid development and precious metal – base metal mineralization in the Bald Mountain, Alligator Ridge and Eureka mining centers. The intrusions at Eureka are older than those at Bald Mtn. and Alligator Ridge but the relationship is the same. All Paleozoic age rock units are deformed by several stages of compressional folding and faulting. Major folding events occurred in the late Devonian to early Mississippian time and again in the Mesozoic. Extensional deformation in the Tertiary has produced the present landforms, basin and range physiography, and is also responsible for igneous activity and hydrothermal alteration – mineralization, which occurred very early during the extensional event and predate the present basin and range landforms and active range front normal faults. One outcome of the mid Tertiary extension is the opening
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of the Newark Valley which has moved the Gunman and Bald Mtn. areas further apart.
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Three types of Tertiary age hydrothermal activity occur in a NW trending belt that includes the Gunman Project (Figure 7-2 below). 1. Large Scale Siliceous Sinter Mounds; Siliceous and calcareous sinter deposits form a large set of hills that rise above the center of the Newark Valley and are seen in the valley SE of Alligator Ridge. These mounds results from large scale circulation of warm to hot ground water and are likely related to igneous intrusions at depth. 2. Jasperoid and Jasperoid Breccias; Jasperoids result from intense silica replacement of limestone during hydrothermal alteration. They are often brecciated by episodic boiling during formation. Jasperoids are commonly directly related to calcareous hosted precious metal and base metal deposits in north central Nevada. Well-developed Jasperoids with highly anomalous Zn-Ag-Au-As-Cu and Hg occur along the break in slope in the central portion of the Gunman property as well as within both the Bald Mountain and Alligator Ridge mining area. 3. Decalcification and mineralization; Paleozoic age calcareous sedimentary deposits, limestone, silty limestone, dolomites and carbonate cemented clastic units, have all been locally impacted by decalcification and Silicification by Tertiary are hydrothermal activity in the area encompassing Eureka-Bald Mtn. and Gunman. Large areas of outcropping jasperoid breccias are associated with gold and base metal mineralization at Bald Mountain. Small area of outcrop, rubble crop and subsurface intersection of jasperoid are associated with very grade zinc and silver mineralization at Gunman. These hydrothermal features of the district are specially related to a large NW trending area containing Tertiary age intrusions. While no intrusions have yet been found at Gunman, the intrusion mapped in the Diamond Range north of the project is associated with copper-gold mineralization. Figure 7-2 below displays the map pattern of Tertiary age intrusions, hot spring sinters, jasperoid alteration and mineralization. It is worth noting again that the Tertiary age igneous and hydrothermal activity occurred just at the onset of extensional deformation in the early Tertiary. Continued extension as now opened wide valleys and created numerous range front normal faults, all of which have occurred post district scale mineralization.
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7.2
PROPERTY GEOLOGY Gunman project has abundant outcrops in the western portion of the property and is largely covered by recent gravel deposits in the eastern portion. The outcropping rocks are all of sedimentary origin and are essentially not impacted by metamorphism. Strong layering observed in certain units is all preserved, original sedimentary bedding. The sedimentary rocks at Gunman have been assigned a Permian age by regional mappers based on the observed fossil assemblages and correlation with stratigraphy in surrounding areas. No igneous rocks are known on the property. The sequence of Permian carbonate rocks and clastic sediments have a complex depositional history with several major angular and erosional disconformities being mapped between rock packages. Cypress has interpreted a major angular unconformity mapped in western and northern portions of the property to be caused by thrusting of a carbonate conglomerate unit over a folded sequence of limestones and red bed sandstones. This contact has been alternatively interpreted as a major erosional unconformity with flat lying carbonate conglomerate lying depositional contact with an underlying, folded sequence of carbonate and clastic rocks. In either case, this contact appears to have acted as hydrologic barrier during hydothermal alteration and mineralization at the property. As a result, exploration for blind mineralization below the carbonate conglomerate unit along know mineralized trends represents a high quality target for future exploration at Gunman. The geology of the Gunman project, as mapped by Cypress Development, is presented in figure 7-3 below.
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7.2.1 Property Rock Units The Gunman property is underlain by sequence of Permian carbonate rocks and clastic sediments that have a complex depositional history and several major angular and erosional disconformities between rock packages. A stratigraphic section for the property is presented in figure 7-4 below. The section exposed along the range front on the property begins with a lower most carbonaceous limestone – dolomite unit that is only locally exposed in the southern portion of the property. A silty limestone overlies the carbonaceous unit and is in turn overlain by a more massive fossiliferous limestone unit. This unit is locally complex and contains lenses of rounded clast, poly-lithic, carbonate cemented sandstones. A sharp contact at the top of the fossilferous limestone marks the change to a clastic sediment package of locally calcareous siltstone and sandstones. These are ubiquitously oxidized to red and orange yellow color. All of these units together are folded into a north trending syncline with a fold axis located in the western portion of the property.
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Lying above a sub horizontal erosional or faulted surface developed at the top of the folded sequence is a nearly flat lying carbonate conglomerate unit or limestone conglomerate. The unit is composed of dm-scale, sub rounded to sub-angular clasts in a carbonate matrix. The unit is matrix supported. This unit appears to have acted as a cap rock, trapping mineralizing, hydrothermal fluids within the east flank of the Gunman syncline. A series of photos of rocks units at Gunman are presented below.
Copper oxide mineralization hosted by a sandsone lense interbed within the fossiliferous limestone at RH. Hole GD-09 at 42 feet.
F o ssilifero u s L im esto n e fro m th e h an g in g w all o f th e R H Z o n e. H o le G D -09 296 F eet.
Sandy, graphitic limestone in foot wall of RH Zone Hole GD-10 429 feet.
Figure 7-5a
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Figures 7-5b, 7-5c and 7-5d Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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7.2.2 Property Structure The Permian age rocks of the Gunman property are impacted by both Paleozoic age compression and by post mineral, mid Tertiary age extension. No penetrative foliation or other metamorphic effects are evident. A well-developed syncline with a roughly north-south axis traverses the property. The mineralization at RH and adjacent zones all lie in the east flank of the syncline. The RH North Zone is hosted in a down dropped section of the silty limestone and is a blind discovery below recent gravel cover. See figure 7-6 below.
West A
East A’
RH Zone Blind Mineralization (RH North Zone)
l
1000
Feet
l
Figure 7-6
Normal faulting and fracturing has occurred throughout the property. It is likely that early normal faulting and fracturing resulted in fluid pathways for mineralizing fluids. More recent normal faulting associated with regional extension have produced the range front fault which lies just east of the RH Zone and which also passes through the RH North Zone (Figure 7-3 above). Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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The main extension phase and resulting normal faults are very likely much younger than mineralization on the property and thus have likely off-set and down dropped mineralization into positions east of the range front and concealed beneath gravel cover. The under explored RH North Zone is one example of mineralization being offset by later faulting. The amount of off-set on the range front fault that passes very near the RH Zone is unknown but outcrops of Permian rocks do occur on the down dropped side of the fault in the northern portion of the property. This mapped geology indicated that off–set on this fault is 100 feet. Determination of oxide mineralization at Gunman has been done by XRD analysis of assay sample pulps from RH zone holes GM-26, GM-27 and GM-
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29. The work was carried out by Cominco Ltd. in 2001 as part of a due diligence process of the Cypress Gunman project. The XRD work identified smithsonite as the most abundant zinc bearing mineral along with accessory hemimorphite. The full results of the Cominco XRD study are presented in Table 1 below.
Table 2 Cominco XRD Data on Selected Gunman Assay Pulps Hole ID
From
To
Dolomite
Quartz
Calcite
Smithsonite
Hemimorphite
Mica
Smectite
GM-26
105
110
s
ml
ml
GM-26
145
150
ml
mo
vm/?
GM-26
165
170
ml
s
GM-26
205
210
mo
mo
GM-26
210
215
ml
s
GM-27
145
150
s
mo
GM-27
150
155
s
mo
s
mo
vm/?
vm/?
mo
ml
vm/?
vm/?
s
mo
ml
s
s
vm
ml
vm/?
mo
ml
vm/?
GM-27
155
160
mo
GM-27
195
200
ml
mo
ml
ml
vm/?
?
mo
s
ml
vm/?
vm/?
GM-29
25
30
ml
s
ml
vm
GM-29
45
50
s
mo
mo
vm
GM-29
60
65
s
mo
vm/?
mo
GM-29
150
155
mo
s
vm/?
mo
mo
GM-29
155
160
mo
mo
mo
ml
mo
GM-29
160
165
mo
mo
mo
ml
ml
vm/?
Barite
Sphalerite
vm/? vm/?
mo
?
vm
?
vm
vm/?
Mineral Abundance Code a=Aundant s=Significant ml=minor vm=very minor vm/?=uncertain
Assay highlights from drilling of the identified 2500 foot strike length zone are presented in Table 2 below. The orange shaded assay intervals are all from the RH Zone in the central portion of the Gunman property. A plan view map of all holes drilled at the project is shown as figure 7-7 below. The dashed yellow lines mark the position of cross section maps presented in figures 7-9, 7-10 and 7-11 below. Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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Outcrop samples and drill intercepts of mineralization >5% zinc has been found at RH South. The RH North Zone has had very little exploration. The zone lies approximately 1500 feet north of the RH Zone and has shown multiple zones of zinc and silver mineralization over a 200 foot interval from 145.8 feet to 352 feet below surface in drill hole GD-15. The mineralization was intersected below approximately 140 feet of recent gravel cover.
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Table 3 Significant Mineralized Intercepts Hole no From ft GM-01 160 GM-01 355 GM-02 135 GM-07 105 GM-08 185 GM-09 255 GM-09 445 GM-13 85 GM-16 360 GM-19 220 GM-24 60 GM-24 360 GM-26 50 GM-27 85 GM-28 5 GM-29 15 GM-29 140 GM-30 35 GM-32 40 GM04-23 170 GM04-24 85 GM04-32 0 GD-01 184 GD-01 240.8 GD-11 101.5 GD-11 173 GD-13 76 GD-15 145.8 GD-15 206.8 GD-15 217 GD-15 288.15
To ft 210 370 140 205 225 385 615 120 380 230 90 385 215 205 175 85 180 50 165 175 90 210 203 279 117.5 217 91 167 217 230.4 324
Interval ft 50 15 5 100 40 130 170 35 20 10 30 25 165 120 170 70 40 15 125 5 5 210 19 38.2 16 44 15 21.2 10.2 13.4 35.85
Ag ppm 59.6 155.2 7.1 58.2 80.1 48.8 32.5 1.34 2.1 14.7 52.1 41.6 60.9 37.4 51.3 32.96 32.69 43.4 51.47 0.8 3.1 118.5 21.5 63.75 0.28 9.9 9.5 9.8 11 5.33 4.08
Zn % 9.5 19.35 20.95 9.1 7 6.8 4.92 2.6 2.5 3.08 10.26 7.2 16.6 5.2 9.97 5.96 6.47 11.18 9.85 2.93 2.21 12.45 1.94 5.9 1.48 14.76 4.96 1.06 0.73 0.64 0.44
Cu ppm 7 26 224 9 14 59 57 11 4 137 46 21 39 24 61 20 13 20 6 13 17 54 40 10 5 20 10 100 10 10 10
Pb ppm 32 62 69 28 61 116 64 40 2 292 74 47 90 121 40 60 101 91 20 501 281 146 40 40 5 100 60 90 610 50 50
As ppm 26 116 341 37 52 140 87 77 15 126 131 64 133 80 104 42 61 37 29 62 66 83 60 25 25 60 25 70 25 25 25
While the zinc grade of the mineralization in North RH GD-15 is 2% or less, the multi zone nature and combined zinc and silver grades are very similar to those found on the flanks of the bonanza zones at RH. As an indicator of the continuation of the mineralized trend to the NNE, GD-15 is very encouraging. Figure 7-8, below, shows the location of the RH North Zone relative to the RH South and RH Zones. The base map shows the results of a 2001 soil sampling program that failed to detect the presence of the gravel covered RH North Zone. Cypress intends to explore in the area of Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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Sb ppm 7 10 36 2.5 6 6 10 2.5 2.5 5 2.5 2.5 39 5 6 2.5 5 7 2.5 8 5 10% over down hole intervals exceeding 60 feet Mutli ounce silver values were found with the zinc. The RH Zone was partially outlined by September 2000 and additional discoveries of mutli percent zinc and local percent level lead were made at RH South, 800 feet south of the RH Zone. Late in the 2000 drill program, Cypress returned to the RH and began close spaced drilling aimed at both extension and infill. Hole GM-26 intersected a 210 foot down hole interval grading 13.1% zinc and 126 g/t silver. This intercept includes a 100 foot interval starting at a depth 115 feet that grades 22.72% Zn and 231.43 ppm Ag. Five foot sample intervals of up to 37% Zn and 497 ppm Ag (16 oz/ton Ag) were recorded in the hole. Hole GM-32 was the final hole of the program and was located as a 30 foot northward extension of the developing high grade RH Zone. Hole GM-32 returned a 115 foot interval of 9.1% Zn and 51.1 ppm Ag starting a vertical depth of 50 feet. Cypress completed 32 reverse circulation drill holes for a total of 17,370 feet at Gunman during 2000. Cypress returned to the property in 2004 to continue the drill exploration of the 1000 foot strike length containing the mineralized RH and RH South zones identified from the combined WMC and Cypress drilling programs. The other main goal of the 2004 R-C drill program was to test the RH NW Target developed from the results of the MMIA soil sample grid done in 2001.
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The 2004 drill program totaled 32 holes and a total footage of 8565. The holes were of shallow depth and most were angled at targets at 45 to 60 degrees. Extension drill targets on the N and NW flank of the RH Zone returned wide intervals of low grade zinc-silver mineralization but no extension of the RH high grade zone was achieved. A series of angle holes were drilled to the west to test the area immediately under the MMIA NW RH target. These holes intersected low grade zinc and silver mineralization in the upper portion but underlying, oxidized carbonate units were essentially barren in positions under the RH NW target MMIA anomaly. Hole GM04-06 intersected 30 feet starting at surface grading 0.24% Zn and 2.72 ppm Ag. Drilling in the RH South area in 2004 found several zones of moderately welldeveloped mineralization in positions along the south and east flank of the zone. Hole GM04-24 intersected a 65 foot interval of 0.40% Zn and 140 ppm Ag starting at 80 feet down hole.
Table 3, below presents UTM NAD83 collar location, collar elevation, hole inclination, hole azimuth and hole completion depth every hole drilled on the property by WMC and Cypress Development Corp. The total footage is summed by year. Assay highlights from all completed drilling of the property are presented in table one in section 7.3 of this report.
Table 4: Gunman RC and Core Drill Hole Inventory WMC and Cypress Gunman Drill Exploration Programs 1990, 2000, 2004, 2007
Year
Company
Hole No.
Drill Type
Easting nad83zone11
Northing nad83zone11
Elevation Feet
Dip
1990
WMC
BC-1
RC
607162
4414231
6317
1990
WMC
BC-2
RC
606781
4414344
6478
1990
WMC
BC-3
RC
606651
4414390
1990
WMC
BC-4
RC
606676
1990
WMC
BC-5
RC
606611
1990
WMC
BC-6
RC
1990
WMC
BC-7
1990
WMC
BC-8
1990
WMC
1990 1990
Az
Depth ft
90
0
500
45
290
400
6568
60
250
400
4413941
6535
90
0
300
4413970
6590
90
0
300
606670
4413978
6547
90
0
220
RC
606730
4413952
6505
60
280
200
RC
606717
4414112
6498
90
0
300
BC-9
RC
606713
4413573
6470
90
0
300
WMC
BC-10
RC
606775
4411758
6160
90
0
300
WMC
BC-11
RC
610885
4415055
6180
90
0
500
1990
WMC
BC-12
RC
610193
4414815
6180
90
0
495
1990
WMC
BC-13
RC
609121
4418304
6180
90
0
400
1990
WMC
BC-14
RC
609113
4417170
6180
90
0
400
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1990
WMC
BC-15
RC
611493
4417211
6180
90
0
365
1990
WMC
BC-16
RC
606740
4414358
6505
90
0
500
1990
WMC
BC-17
RC
606752
4414368
6495
90
0
425
1990
WMC
BC-18
RC
606685
4414228
6465
90
0
400
1990
WMC
BC-19
RC
610214
4416773
6180
90
0
150
1990
WMC
BC-20
RC
606781
4414344
6478
60
290
500
1990
WMC
BC-21
RC
606774
4414332
6478
45
290
300
1990
WMC
BC-22
RC
606742
4414301
6478
60
280
200
1990
WMC
BC-23
RC
606667
4414102
6545
45
255
440
1990
WMC
BC-24
RC
606667
4414102
6545
90
0
400
1990
WMC
BC-25
RC
606717
4414112
6498
45
255
400
1990
WMC
BC-26
RC
606680
4414188
6510
90 Total 1990
0
240 9335 (ft)
2000
Cypress
GM-01
RC
606737
4414345
6505
90
0
440
2000
Cypress
GM-02
RC
606737
4414345
6505
45
270
525
2000
Cypress
GM-03
RC
606644
4414155
6539
90
0
525
2000
Cypress
GM-04
RC
606644
4414155
6539
45
270
545
2000
Cypress
GM-05
RC
606431
4413651
6730
45
70
500
2000
Cypress
GM-06
RC
606464
4413668
6705
45
70
480
2000
Cypress
GM-07
RC
606735
4414362
6517
90
0
800
2000
Cypress
GM-08
RC
606734
4414378
6510
90
0
505
2000
Cypress
GM-09
RC
606733
4414327
6504
90
0
505
2000
Cypress
GM-10
RC
606761
4414331
6487
90
0
805
2000
Cypress
GM-11
RC
606732
4414298
6478
90
0
605
2000
Cypress
GM-12
RC
606735
4414410
6510
90
0
745
2000
Cypress
GM-13
RC
606704
4414357
6527
90
0
475
2000
Cypress
GM-14
RC
606703
4414391
6535
90
0
705
2000
Cypress
GM-15
RC
606636
4414386
6578
90
0
650
2000
Cypress
GM-16
RC
606636
4414386
6578
55
90
1005
2000
Cypress
GM-17
RC
606669
4414359
6547
90
0
705
2000
Cypress
GM-18
RC
606701
4414300
6495
90
0
605
2000
Cypress
GM-19
RC
606608
4414153
6570
90
0
705
2000
Cypress
GM-20
RC
606607
4414128
6595
90
0
545
2000
Cypress
GM-21
RC
606682
4414156
6510
90
0
345
2000
Cypress
GM-22
RC
606682
4414156
6510
45
270
505
2000
Cypress
GM-23
RC
606725
4414319
6496
90
0
345
2000
Cypress
GM-24
RC
606729
4414337
6505
90
0
605
2000
Cypress
GM-25
RC
606728
4414353
6515
90
0
340
2000
Cypress
GM-26
RC
606727
4414369
6523
90
0
485
2000
Cypress
GM-27
RC
606726
4414387
6522
90
0
200
2000
Cypress
GM-28
RC
606719
4414378
6522
90
0
445
2000
Cypress
GM-29
RC
606719
4414360
6518
90
0
505
2000
Cypress
GM-30
RC
606722
4414342
6510
90
0
505
2000
Cypress
GM-31
RC
606718
4414330
6507
90
0
405
2000
Cypress
GM-32
RC
606719
4414395
6525
90 Total 2000
0
305
2004
Cypress
GM04-01
RC
606684
4414438
6494.4
70
75
350
2004
Cypress
GM04-02
RC
606686
4414438
6494.4
50
80
280
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2004
Cypress
GM04-03
RC
606699
4414648
6494.4
60
2004
Cypress
GM04-04
RC
606680
4414643
6494.4
2004
Cypress
GM04-05
RC
606703
4414784
6510.8
2004
Cypress
GM04-06
RC
606693
4414776
2004
Cypress
GM04-07
RC
606680
2004
Cypress
GM04-08
RC
2004
Cypress
GM04-09
RC
2004
Cypress
GM04-10
2004
Cypress
2004
Cypress
2004
270
250
45
70
200
45
270
630
6527.2
45
290
470
4414900
6510.8
45
270
220
606696
4414908
6500.96
60
250
195
606681
4414900
6510.8
90
0
210
RC
606681
4414900
6510.8
60
250
180
GM04-11
RC
606645
4414930
6550.16
90
0
160
GM04-12
RC
606644
4414930
6550.16
45
260
590
Cypress
GM04-13
RC
606691
4414926
6487.84
45
260
300
2004
Cypress
GM04-14
RC
606680
4414643
6494.4
90
0
200
2004
Cypress
GM04-15
RC
606682
4414643
6494.4
45
260
170
2004
Cypress
GM04-16
RC
606681
4414643
6494.4
60
260
90
2004
Cypress
GM04-17
RC
606718
4414425
6510.8
90
0
200
2004
Cypress
GM04-18
RC
606717
4414425
6510.8
60
255
200
2004
Cypress
GM04-19
RC
606734
4414423
6497.68
60
260
250
2004
Cypress
GM04-20
RC
606745
4414318
6478
90
0
400
2004
Cypress
GM04-21
RC
606750
4414289
6478
90
0
400
2004
Cypress
GM04-22
RC
606773
4414116
6501
90
0
320
2004
Cypress
GM04-23
RC
606690
4414108
6527
90
0
250
2004
Cypress
GM04-24
RC
606690
4414108
6527
45
250
150
2004
Cypress
GM04-25
RC
606708
4414408
6537
90
0
230
2004
Cypress
GM04-26
RC
606710
4414408
6537
70
80
280
2004
Cypress
GM04-27
RC
606611
4414454
6593
90
0
230
2004
Cypress
GM04-28
RC
606708
4414415
6530
45
260
200
2004
Cypress
GM04-29
RC
606729
4414452
6521
90
0
250
2004
Cypress
GM04-30
RC
606734
4414602
6488
90
0
300
2004
Cypress
GM04-31
RC
606656
4414723
6557
45
260
200
2004
Cypress
GM04-32
RC
606727
4414374
6524
90 Total 2004
0
210
2007
Cypress
GD-01
NQ Core
606734
4414329
6500
90
0
1896
2007
Cypress
GD-02
NQ Core
606722
4414141
6501
90
0
538
2007
Cypress
GD-03
NQ Core
606722
4413959
6494
90
0
728
2007
Cypress
GD-04
NQ Core
606722
4413851
6510
90
0
554
2007
Cypress
GD-05
NQ Core
606722
4413761
6480
90
0
748
2007
Cypress
GD-06
NQ Core
606722
4413566
6473
90
0
348
2007
Cypress
GD-07
NQ Core
606722
4413402
6465
75
185
938
2007
Cypress
GD-08
NQ Core
606721
4412970
6360
65
180
1148
2007
Cypress
GD-09
NQ Core
606704
4414375
6530
65
280
646
2007
Cypress
GD-10
NQ Core
606704
4414375
6530
70
90
1158
2007
Cypress
GD-11
NQ Core
606704
4414375
6530
67
131
607
2007
Cypress
GD-12
NQ Core
606727
4414402
6517
45
50
322
2007
Cypress
GD-13
NQ Core
606736
4414329
6499
70
270
400
2007
Cypress
GD-14
NQ Core
606733
4414329
6501
50
280
177
2007
Cypress
GD-15
NQ Core
606724
4414784
6511
90
0
456
2007
Cypress
GD-16
NQ Core
606724
4414784
6511
60
195
443
2007
Cypress
GD-17
NQ Core
606719
4414880
6527
90
0
407
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Total 2007
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11.0 SAMPLE PREPARATION, ANALYSIS & SECURITY 11.1
SAMPLE PREPARATION
AND
ASSAYING
For reverse circulation drilling, sampling is done at the rig by continuously running all drill cutting through a splitter in order to obtain a representative sample of reasonable size for submission to the assay lab. The drilling of the RH Zone in 2000 was done dry, without the injection of water, as is not required by OSHA. The dry cutting for each 5 foot interval were dumped from a catchment container on the rig through a standard Gilson splitter. The portion of the cuttings split to assayed was caught in a metal pan below the splitter which was then emptied into a sample bag for shipment to the lab. When drilling with water injection in 2004, the muddy water and cutting slurry was continuously run through a rotating cyclone splitter attached to the rig and the spit portion was caught directly into the sample shipment bag attached to the cyclone. In either case, series of 5 foot sample splits in their own sealed bags were then placed in larger rice bags to provide extra protection during shipment to the sample prep lab in Elko. For NQ drill core in 2007 the following procedures were used. Samples are all less than or equal to 5 feet long. Broken pieces of core are first fitted together end to end, and a cutting reference line is marked along the core perpendicular to bedding. The sample start and end points are clearly marked with lumber crayon. The core is transferred to the cutting room, where it is sawn along the reference line and both halves are returned to the core box. The technician then collects the samples by taking the back half of core for each marked interval and placing the half core in standard plastic sample bags. A unique sample tag is included in the bag with each sample. The sample number is also written on the outside of the plastic sample bag. The plastic sample bags are bundled together in large woven polyethylene sacks (rice bags) which are sealed at the cutting site. The samples were then taken to ALS Chemex in Reno by Cypress personnel.
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11.2
QUALITY ASSURANCE & QUALITY CONTROL
Certified reference materials were used by Cypress in 2004 and 2007 to provide assay standards as part of the QA/QC procedures for the Gunman exploration programs. Standard reference samples of known precious and base metal concentration are inserted by Cypress in the sample sequences at a rate of one standard sample per 30 core samples. These standards are purchased in durable, presealed aluminum packets. The assay results of the sample standards have been monitored for all assay batches of samples from the property. These results have been found to fall within the expected range of expected variability, as provided by the manufacturer of the standards. No systematic errors in sample assay results are apparent or suspected. Sample repeats are carried out as a process check by the laboratory. After the sample has been crushed and pulverized, 2 subsamples are selected for analysis. Sample duplicates are best used to monitor the analytical method used by the laboratory, and should not be relied upon to monitor the overall quality control of the sampling program. The variability between original assays and repeat assays should be low. No sample duplicates from split core from the Gunman have been done but the remaining half of core from the 2007 drill program is available for any future QA/QC programs which may be needed.
11.3
SECURITY All R-C drill samples were bagged for shipment right at the drill site and were collected several times a week by the sample prep lab in Elko. NQ drill core was transported from the drill to the logging facility by Cypress personnel. The logging facility consisted of a large metal building in Eureka, Nevada. After geological logging of the core it is transferred to the cutting room, where it is sawn in half. The technician then collects the samples for each marked interval and placing the half core in standard plastic sample bags. A unique sample tag is included in the bag with each sample. The sample number is also written on the outside of the plastic sample bag. The plastic sample bags are bundled together in large woven polyethylene sacks (rice bags) which
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were sealed at cutting site in the building. The samples were taken weekly by truck to Reno for assay.
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12.0 MINERAL PROCESSING & METALURGICAL TESTING Cypress has not carried out any metallurgical work on the Gunman property.
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13.0 MINERAL RESOURCE ESTIMATES No resource estimates have been done by Cypress for the Gunman property.
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14.0 MINERAL RESERVE ESTIMATES This section is not applicable.
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15.0 MINING METHODS This section is not applicable.
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16.0 RECOVERY METHODS Cominco expressed interest in the Gunman project in early 2001. As part of their due diligence, Cominco ran a series of XRD analysis on sample pulps from 5 foot RC drill cuttings from three RH Zone drill holes to determine the mineralogy of the oxidized mineralization at Gunman. The XRD work showed that smithsonite was the main zinc bearing mineral in the oxide intercepts. Another zinc oxide mineral, hemimorphite is also present. Following completion of the XRD study Cominco proceeded with a leach recovery testing on 5 foot sample rejects from a long, continuous interval from high grade hole GM-26. The samples were subjected to a bench scale acetic acid leach assay method. The results are shown in Table 4 below in direct comparison to ICP assays of the same samples.
Table 5 Acetic Acid Leach Test Results vs. ICP Assays Acetic Acid Leach Assays Zn%
Hole ID
From(ft ) 135 140 145 150 155 160 165 170 175 180 185 190 195 200 205 210
Hole ID
From(ft )
To(ft )
ICP Assays Zn%
GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26
50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125
55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130
2.06 2.59 1.17 3.06 2.66 3.91 8.05 19.91 18.25 14.91 10.49 2.79 2.16 17.15 5.68 14.06
1.38 1.52 0.88 2.43 2.12 3.36 7.13 16.78 15.54 12.68 9.5 2.48 1.68 13.95 5.09 12.52
GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26 GM-26
GM-26
130
135
19.16
16.48
Interval Averages
To(ft)
ICP Assays Zn%
Acetic Acid Leach Assays Zn%
140 145 150 155 160 165 170 175 180 185 190 195 200 205 210 215
25.5 28.02 35.26 28.32 24.28 24.16 18.99 23.8 33.45 22.99 29.14 23.59 23.41 37.44 7.34 12.62
23.17 27.49 34.4 27.39 22.92 20.87 15.71 20.22 32.84 21.97 28.16 21.93 22.26 36.48 6.64 7.63
16.56%
15.02%
The assay comparison between ICP methods and a simple acetic acid leach clearly show that excellent recoveries of zinc could be obtained by acetic acid treatment of zinc oxide mineralization at Gunman. The average zinc grade in Cypress Development Corp. Gunman Project NI 43-101 Compliant Technical Report
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the ICP assays is 16.56% while in the acetic acid leach assay method the average grade is slightly lower at 15.02%. The comparison sample series from hole GM-26 includes lower grade zinc mineralization,
