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| | |  43-101 Report Valuation Report The Poker Flats property comprises non-contiguous blocks containing a total of 25 unpatented lode mining claims, totaling approximately 500 acres. The claims are located 33 kilometres south-southwest of Elko, on the eastern edge of the Piñon Range. From Elko, access is by the paved Bullion Road for 7 Km., a further 32 Km. on the graded-dirt Bullion Road, then 7 Km. on unimproved "two track" dirt trails to the Property. The Property is in generally flat sagebrush-covered desert, with elevations gradually increasing westward. The climate is favorable for year-round mining, with all supplies and services needed for successful exploration and mining programs available in the area. Mexivada controls the Poker Flats property through a Mining Lease Option effectively dated December 3, 2004. The Poker Flats property is situated within the north-northwest-trending Carlin gold trend, which hosts the Rain/Emigrant Springs, Gold Quarry, Carlin, and Blue Star / Genesis disseminated gold-silver deposits, as well as the Meikle, Rain, and Saddle / Tess fault-controlled vein-style gold-silver deposits. In 1979, Newmont discovered disseminated gold mineralization approximately three miles north-northwest of the Property, which subsequently became the Rain, SMZ, Gnome, and Emigrant Springs gold deposits. In the early 1980s, exploration delineated the Railroad gold deposit two miles southwest of the Property. Further exploration resulted in the discovery of the Trout Creek and Piñon (South Bullion/Dark Star) gold deposits three miles south of the Railroad deposit, and between five and six miles south-southwest of the Poker Flats property. In 1984, Franco Nevada drilled four reverse-circulation holes in the northeastern part of the Property area, and the fourth hole intersected twenty feet of Webb Formation sedimentary rocks that contained anomalous gold mineralization. Paleozoic Devils Gate and Nevada Formation limestones crop out in the northeastern claim block; Tertiary basalt and andesite in the northwest; and Tertiary rhyolitic to dacitic ash-flow tuff in the southwest. Much of the Property is covered with Quaternary alluvium. Although not observed on the Property, Mississippian age Webb Formation sediments overlie Devonian age Devils Gate limestone. At the nearby Rain mine, gold mineralization at the Webb Formation/Devils Gate contact is controlled by northwest-trending faults. Exploration focus on the Poker Flats property is for Carlin-type gold mineralization, exemplified by mineralization at the Rain and Emigrant Springs deposits. However, fault-controlled vein-style gold-silver deposits are also possible. The Poker Flats property is situated at the intersection of northwest- and northeast trending regional arsenic anomalies. The northwest-trending anomaly extends through the area of the Rain and Emigrant Springs deposits northwest, and continues through the major gold-silver deposits of the Carlin Trend. A geophysical interpretation suggests that the Poker Flats Property sits astride the southern extension of the Emigrant Fault, and a Rain Fault parallel structure intersects the Emigrant Fault extension in the southwestern area of the Poker Flats claims. Regional-scale structural interpretation suggests that the Property area could be underlain by deep-seated crustal structures instrumental in conducting mineralizing fluids for local gold-silver deposition. The presence of gold-silver deposits north and south of the Poker Flats property suggests the presence of a structural corridor on or near the Property area through which mineralizing fluids could have moved. Phase 1 work was recommended by Mr. Harrington, consisting of geological mapping, geophysical and geochemical ground work to define drillhole locations, followed by reverse circulation drilling to test targets at depth. This program was defined in two phases: Phase 1 ground work was budgeted at approximately US$53,000; and Phase 2 drilling was budgeted at US$139,000. As part of its early Phase 1 work in 2005, Mexivada completed three east-west soil gas geochemistry lines over the northeast main target at Poker Flats. The northern line was sited across the approximate collar of the mineralized 1984 Franco Nevada drillhole. The soil gas profile shows a strong carbon dioxide / oxygen anomaly over the drillhole area, as well as linear soil gas "highs" to the south, along a north-south trend. This exercise was conducted and interpreted by D. Edward Wells, consultant geochemist, to represent a soil gas anomaly generated from oxidizing sulfides at depth. This linear trend is interpreted to represent the hypothesized north-south trending Poker Fault, which is the Carlin-type gold exploration target in this sector of the Poker Flats property. Mexivada's open pit, heap-leach target concept here is for disseminated gold at shallow depths that could be present along the Webb -- Devil's Gate contact east of the Poker fault gold feeder structure. Mr. Wells presently is conducting additional soil gas and soil geochemical surveys on the property to define targets that will be drill tested in late summer of 2006. Mexivada also purchased a data package of previous work conducted on the Poker Flats property from Dr. Jeffrey A. Jaacks, Mexivada's chief geochemical consultant / advisor. These data were generated principally by BHP in the 1990's. Dr. Jaacks recently re-interpreted all these data and made several recommendations for drill targets at Poker Flats, along a major, interpreted northwest-trending structural corridor in Mexivada's Section 30 claimblock that show high BLEG-Gold geochemical anomalies and strong excess CO2 soil gas anomalies. Mr. Wells is presently attempting to verify these anomalies and to extend them, prior to the proposed drilling program by Mexivada. The exploration goal of Mexivada's program is to generate open pittable, heap leachable Carlin- or Meikle-Rain-Saddle type orebodies at shallow depths (80 to 150 metres), which could be mined and processed through Newmont Mining's expected new mining operation to be started up soon at Emigrant Springs. Mexivada will attempt to permit its drilling sites on or near to the abundant existing roads and trails present in the project area, and enjoys cordial relations with nearby mine operator Newmont Mining Corporation.
Maps & Photos
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