Bullfrog Gold, the domestic mineral developer with a deep management bench of seasoned industry veterans and a firm gold project acreage footprint in Arizona and Nevada, reported good news out of their Newsboy Project today, which has expanded to 4,958 acres (including state lands) with the leasing of two new patented mining claims in the Queen of Sheba (QoS) area, 2.5 miles northwest of the main deposit.
The new leases are a beautiful little patch of geology covering some 38 acres containing numerous mineralized outcrops and adits, having similar geophysical characteristics overall with the main Newsboy deposit. Shallow shafts and prospect pits exist in the QoS target area, but there is no historical record of production on-site from former owner Moneta Porcupine Mines, whose last work on the site was in late 1994.
The last data points we have are from the outcrop chip and channel sampling done by Moneta which showed a 260-foot strike length on the surface, with 0.064 opt over 54 feet on average, in addition to the 1995 core hole (intercepts ranging from 0.024 opt Au and 0.14 opt Ag over 16 feet to 0.124 opt Au and 0.31 opt Ag over 2 feet). So we have clear indications from the component data sets that the surface sampling is the hallmark of a deeper 492-foot wide geophysical anomaly which was traced over a strike (open on both ends) length of some 1.64k feet.
Considering the recent expansion of the thick, high-grade mineralization area as a result of Phase II drilling on the main deposit at Newsboy reported back in late August (pit limit expanded by an 800 by 1.2k-foot area via a 24-hole program, high-grade gold upwardly revised 20% from the previous 0.044 opt Au figure), these leases make a great deal of sense and Bullfrog will test for expansions to that newly found yellowy goodness in the upcoming program slated for the QoS target area. Bullfrog plans to put in some 24 holes over the next few months to test the excellent intercepts from extant Moneta data, as well as for that possible extension to the newly discovered thick slice of mineralization at the main deposit, with resource estimates and a preliminary mine plan shortly thereafter.
Newsboy is just 45 miles outside Phoenix (excellent logistics) and sits just 10 miles east of one of the states highest-grade, largest gold mines, the Vulture Mine. Historic resource estimates are 235k oz Au with 3.4M oz Ag (5.4M tons at 0.044 opt and 0.64 opt respectively) and the last production data point is from 1942, where 11k tons of ore grading on average 0.07 opt Au, with 8 opt Ag were shipped to a local smelter.
Reported terms of the lease call for a one-time $100k work commitment for the next year on the QoS target area, a $10k annual payment, and royalties in the 1% to 5% range based on gold being in the $1.2k to $5k price range. A solid move that is in the interests of BFGC shareholders and one that reinforces the company's overall regional position.
For more information, visit BullFrogGold.com
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