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Rainbow Canyon Property

Value Proposition The never-before-drilled Rainbow Canyon property is highly prospective for economic high or bulk low-grade gold mineralisation, is located in an easy-to-access mining-supportive jurisdiction, and offers Astorius an inexpensive path to 100% ownership.
Property 28 unpatented lode mining claims that cover an area of 214 hectares.
Location Within the Olinghouse mining district, about 40 km east of Reno in Washoe County, Nevada (Figure 1).
Target Summary Gold in quartz veins and their hosting gold-bearing low-sulfidation alteration zones (Figures 2and 3).
Ownership Option to purchase 100%. There is a 3% NSR on the property, 2% of which can be purchased for US$1,000,000.

Plans Moving Forward

Drill 5 to 10 reverse-circulation boreholes to an approximate depth of 100m during the spring of 2017.

Local Resources and Infrastructure

The small community of Wadsworth is four km to the northeast, and Fernley, population 14,000, is about 10 km to the east of the property along I-80. Skilled labor, supplies, and accommodation are available in Fernley and in the major centers of Sparks and Reno, 40 km to the west. The Southern Pacific Railroad and I-80 both follow the Truckee River valley just south of the property. There are no facilities on the property, but two electric transmission lines and a gas pipeline are quite near the property. Any water needed in operations would have to be developed by wells.

History

The Rainbow Canyon area, part of the Olinghouse mining district of northwest Nevada, has seen prospecting and minor gold production since 1860. In 2009, PacMag Metals, an Australian company, staked the original block of 80 RC claims, and later merged with Entrée Gold Inc. Alba Minerals Ltd, through their USA subsidiary, Acrex Ventures Ltd, purchased Entrée’s Rainbow Canyon claims in 2011.

PacMag’s exploration work on the property in 2009 consisted of select chip sampling of quartz vein material from outcrop and historic prospect pits (Figure 4) that are found on the property. These samples yielded a number of gold values above 3 g/t (ppm), confirmed by additional sampling conducted by Alba in 2011 and 2016 (Figure 2). PacMag also conducted a ground magnetic survey which yielded low magnetic response in areas of alteration.

Despite the presence of scattered historical prospector pits on the property, there is no evidence, in historical documents or on the ground, that drilling has ever been carried out on the property.

Property Geology and Mineralisation

Rainbow Canyon is a low-sulfidation gold prospect located in the northern Walker Lane structural and metallogenic domain. Andesites, basalts and rhyolites of the Miocene Alta and Old Gregory Formation underlie most of the property. Forty kilometers to the southwest of Rainbow Canyon the Alta Formation is also host to the world-renowned Comstock Mine1, a low sulfidation lode deposit which produced 8.4 million ounces gold2.

Gold mineralization has been identified at numerous locations throughout the property, primarily in the form of quartz veins up to 20cm wide which assay in grab sample from 0 to 79 g/t (ppm) gold (Figure 2). The veins occur in wide (up to 30m) zones of strong argillic alteration over a NE strike distance of more than one kilometer. Most of the veins dip steeply to the southeast.

The single existing channel sample of argillic alteration (RCKB06) yielded an assay of 1 g/t (ppm) gold over the four meters sampled. Widespread propylitic and limited quartz-sericite-pyrite alteration is also present on the property.

There is no information available on the depth extent of the veins. Maximum zones of alteration correspond with a magnetic low within the host volcanics, suggesting the presence of a relatively large de-magnetising alteration system.

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1 John, D. A., Garside, L. J., Wallace, A. R., Magmatic and Tectonic Setting of Late Cenozoic Epithermal Gold-Silver Deposits in Northern Nevada, with an Emphasis on the Pah Rah and Virginia Ranges and the Northern Nevada Rift in Kizis, J. A. Jr., 1999, Low Sulfidation Gold deposits in Northern Nevada, Geol Soc. Nev. Spec Publ. # 29, p65-168.
2 This web page contains information about geologically related properties on which Astorius has no right to explore or mine. Readers are cautioned that mineral deposits on geologically related properties are not indicative of mineral deposits on the Company’s properties.

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