The Jersey Valley property was acquired by Abacus in October of 2019 from a private Nevada company under a 15-year lease. The Company is obliged to make yearly lease payments, totalling USD 85,000 in the first three years, and has the right to buy the property outright at any time, with the vendor retaining a royalty. There are no yearly work commitments.
Jersey Valley lies in north-central Nevada within the prolific Battle Mountain trend of Nevada, which has had in excess of 50 million ounces of gold production. The Jersey Valley property is prospective for epithermal precious metal mineralization and for gold skarns, in an active hydrothermal environment, similar to the Taupo volcanic zone in New Zealand. Widespread historic drilling intersected anomalous gold and silver values but was neither extensive enough, deep enough nor optimally placed to adequately test the system.
Nearby deposits include the Phoenix/Fortitude mine complex (a gold skarn with approximately 14 Moz gold plus significant Ag and Cu past production and a proposed mine life to 2063) and the Cove/McCoy Mine ( a Carlin-tyle gold deposit with 3.4 Moz gold and 110 Moz Ag past production) *. The Jersey Valley property has a well-maintained sealed road running through it, which provides access to a 15 MW geothermal power plant located within the claim group.
The geology at Jersey Valley comprises an uplifted range of sediments and intrusive rocks to the east and an extensive basin (or valley) covered by gravels to the west, separated by a prominent, brecciated range front fault. The property lies within an active hydrothermal environment, with a distinctive sinter associated with ongoing hot springs geothermal activity exposed out in the valley gravels.
Previous operators have mainly targeted the range front fault, and it remains a valid target for further work. Selected rock chip grab sampling shows widespread precious metal mineralization adjacent to the intrusive rocks with values up to 5.8 g/t Au and 114 g/t Ag. A previous drill hole through the breccia intersected 0.59 g/t Au over 40 ft, including 2 g/t Au over 2 ft.
A better gold-silver target is believed to occur under the valley gravels in the vicinity of the sinter, where a previous operator completed a limited four-line IP survey along northwest-oriented lines (see blue lines in central part of figure below). Abacus reprocessed this data in June of 2020 which clearly showed two anomalies underlain by a widespread magnetic low, thought to be related to extensive hydrothermal alteration of the host rocks. A more extensive IP survey was completed in November of 2020 which identified a total of 44 anomalous IP target areas, grouped into five separate ENE trending zones, four of which are open in at least one direction.
The 2020 high-resolution Time Domain Induced Polarization survey totaled 14 line-kilometres and was designed to bracket four historic lines of IP done by a previous operator in 2005. The historic survey was laid out to penetrate to a depth of approximately 200 metres, while the new survey was designed to reach over 400 metres in depth. Results of both surveys are currently being merged.
The new survey was designed to detect low to moderately conductive and moderately chargeable zones that might indicate disseminated sulphides around an intrusive stock or along a fault zone. Three zones (JV-1, JV-2 and JV-5) have signatures characteristic of epithermal precious metal mineralization and two others (JV-3 and JV-4) have signatures associated with gold skarns. All targets were ranked as first (the S targets), second (the W targets) and third (the P targets) priority, based on a combination of strength, size, depth and geophysical signature.
JV-1 and JV-2 are the two main IP target zones, and both extend the anomalies 500 metres from the historic IP survey. They lie on either side of a fault thought to be the conduit for mineralizing fluids feeding epithermal mineralization. JV-1 can be traced for at least 700 m (as it likely can be extended past drill hole 06JC017C) and JV-2 for at least 900 m. Both JV-1 and JV-2 remain essentially untested, and the Company intends to undertake a drilling program early in 2021 once permits are in hand.
Three historic diamond drill holes (see above figure for collars) appear to have just grazed JV-1 and JV-2, but past drilling was neither extensive enough, deep enough nor optimally placed to adequately test the targets. **
Historic drill hole 06JC014C was collared within the northeast part of JV-2 and drilled to the southeast, but it tested a weaker anomaly and missed a stronger, slightly deeper anomaly. Despite this, the hole intersected 1.18 g/t silver over 13.1 m near the top and then 0.19 g/t gold over 13.4 m within a slightly wider intercept of 2.36 g/t Ag over 16.5 m near the end of the hole.
Hole 06JC015C was collared 200 m west of 06JC014C and it also was drilled to the southeast and it intercepted JV-2. It returned 0.18 g/t gold and 3.6 g/t silver over 6.09 m part way through the hole and then 1.58 g/t gold over 1.52 m near the end of the hole. This upper intercept is within a weaker anomaly, and the lower seems to have just hit the top of a much better target.
Likewise, the northeast edge of JV-2 was intersected by historic drill hole 06JC017C, drilled to the northwest, which assayed narrow zones of anomalous gold and silver throughout, and then 0.18 g/t gold and 2.98 g/t Ag over 29.87 m. at the end of the hole. This hole also grazed the edge of a second order target.
These holes each contain elevated pyrite with occasional realgar and stibnite throughout, typical of epithermal systems. Numerous anomalous gold and silver intercepts in the three holes are associated with favourable gold pathfinder minerals, in particular elevated levels of arsenic, antimony and mercury.
Two additional IP zones (JV-4 and JV-5) have the signature of skarns related to the Jersey Stock, and the historic IP did not cover this part of the claims. Zone JV-4 has been partially intersected by several historic drill holes containing anomalous gold and silver, and these skarns are secondary targets to the epithermal target zones.
The Company's work to date has demonstrated that Jersey Valley contains numerous distinctive, essentially untested IP anomalies, which have been demonstrated to be gold and silver bearing. These occur within a widespread magnetic low, thought to represent altered rocks. Past drilling shows the area to be underlain by a favourable suite of elements typical of these precious metal bearing systems within this world class Nevada gold camp.
* information compiled from Newmont Mines and Premier Gold Mines websites. The reader is cautioned that mineralization hosted on nearby properties, is not necessarily indicative of mineralization that may be present at Jersey Valley.
** Note that all intercepts in the holes below are down hole lengths as insufficient drilling was done to determine true widths. Note further that these results are historic in nature and although the author was not involved in the original work, proper industry standard sampling and data verification procedures appear to have been followed.