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| | |   The Blue Mountain Project encompasses an undeveloped, high level, epithermal gold system that lies approximately 20 miles south of the high grade Sleeper deposit, mined by Amax Gold. Past vertical drilling at Blue Mountain has partially defined two low angle, tabular mineralized horizons formed within and along a west-dipping thrust fault. These blanket-like zones are open to the north and are strongly brecciated and fractured. High angle feeder structures were intersected within and beneath the main gold zone in several of the first angle holes drilled on the property. These steeply dipping structures contain moderate to high-grade gold mineralization. Past exploration work has not adequately tested the potential of these structures or the potential for a covered "Sleeper-type" target. Proposed Exploration The plan is to compile existing data, and conduct a systematic re-evaluation of past and potential new target areas. Additional work will include updating the existing geologic and structural model for the property, as well as conducting a review and re-analysis of past geophysical work. Plans include undertaking new geophysical studies in order to delineate structural zones as favorable hosts for high-grade epithermal vein targets as well as to define new "Sleeper type" targets in the surrounding pediment covered areas. The purchase option agreement provides the Company, at its option, the right to acquire a 100% interest in the property by issuing 100,000 shares and making payments totaling US$1,490,000 over a six year period. The Company would then own a 100% interest in the Blue Mountain Project, subject only to a retained 2% net smelter royalty on gold recovered. The Company maintains the right to buy down the royalty to 1% by paying the sum of US$1,500,000 at any time prior to completion of the first year of production.
Maps and Photos
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| ©2006 Luna Gold All Rights Reserved. |  | |
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