© Idaho North Resources 2011-2017

Klondyke Project

The Klondyke project is located within the Klondyke Mining District along the Walker Lane Mineral Belt of south-central Nevada. The northern portion of the Klondyke District, much like the region surrounding it, is characterized by exposures of Tertiary volcanic and epiclastic-sedimentary rocks hosting low-sulfidation, epithermal gold-silver mineralization. Target models include the Midas, Midway, Goldfields, Tonopah, Hasbrouck, Three Hills, and Round Mountain type systems.  In the central portion of the Klondyke District, silver-base metal mineralization is hosted in Cambrian and Paleozoic carbonate rocks intruded by various intrusive stocks, dikes, and sills.  Target models in this part of the district include mesothermal quartz veins, supergene silver bodies, and possible much larger, concealed gold-silver-copper-lead porphyry systems.   Hycroft Mining Corporation’s nearby Hasbrouck Project (which includes the Hasbrouck and Three Hills gold-silver deposits) provides an excellent example of a low-sulfidation, epithermal gold–silver model, the ultimate exploration objective at IDAH’s Klondyke project.   Hycroft has reported that Hasbrouck contains Inferred mineral resources totaling 1.2 million ounces of gold and 29.3 million ounces of silver (128.6 million tons grading 0.009 opt Au and 0.228 opt Ag) and is forecast to average annual production of 135,000 ounces of gold and 540,000 ounces of silver at an average annual adjusted cash cost of $555 per ounce of gold over a five year mine life. Several prospects, adits, and mine shafts have explored the mineralization at IDAH’s Klondyke Project, with limited mining and heap leaching on the property in the 1980s.  In 2008, former lessees AuEx and Eldorado Gold conducted an initial-stage 12-hole, 8,420-foot reverse circulation drill program, intersecting anomalous gold-silver mineralization in nine of the holes with one hole intercepting a 5- foot interval of 1.37 opt gold and 11 ppm silver.  Rock chip and soil samples indicate wide-spread gold-silver mineralization associated with arsenic, copper, molybdenum, lead, titanium and zinc. Rock chip assays returned values up to 0.56 opt gold, 45 opt silver, 4.0-percent lead and 0.3-percent copper.  A ground magnetic survey has added several new targets for evaluation. Most drill targets on the property remain untested. Access to the Klondyke Project is excellent via easily traveled gravel roads proximal to U.S. Highway 95. The properties are located on BLM lands and no problems with environmental issues are anticipated with exploration or mining of the property. In October 2011, IDAH signed a long-term Lease-Option Agreement with Mountain Gold Claims LLC.  Pursuant to the Agreement, IDAH is obligated to make annually escalating lease payments and has annually escalating work expenditure requirements. The vendors retained a 3-percent NSR royalty, 1-percent of which can be acquired for $1-million and an additional 1-percent of which can be acquired for $3-million. IDAH has the Option to purchase the underlying claims from the vendors for $400,000.