KENSINGTON
The Kensington ore deposit consists of multiple mesothermal precious metals-bearing quartz, carbonate, pyrite vein swarms and discrete quartz-pyrite veins, hosted in the Cretaceous Jualin diorite. Calaverite, a gold-telluride-mineral, is associated with the pyrite mineralization.
The Company has pursued an exploration program started in the third quarter of 2005, designed to increase the size and continuity of gold mineralization in its inventory and ultimately result in an increase in mineral reserves.
At Kensington we control a large land position of over 6,200 acres of US federal and Alaska state claims. All of the reserves and resources at Kensington, which total over 2.2 M contained gold ounces of reserves and resources, and our ore processing facilities are located on patented US federal claims. The gold deposits at Kensington are orogenic veins and vein clusters similar in style to other major mesothermal gold camps around the world. A major attribute of orogenic systems is their high-grade nature, large vertical extent and multiple occurrences in the same district – all of which are evident at Kensington. Here you see a geologic map of the Kensington District showing the numerous gold occurrences and the same general geology superimposed on a 3D topographic image.
The Kensington ore deposit and the major access points on the 850 and 2050 foot levels. The 850 level also connects with a portal at the mill-site to the south on the 940 level. The current reserves at Kensington are contained in 7 separate zones that strike nearly north-south and dip variably to the east. The entire Kensington deposit remains open for expansion at depth and strike which will be tested from underground headings in the future.
All of the current mineral resources and reserves occur in just the Kensington and Horrible vein clusters. Other major systems are Elmira, Jualin and the new Kimberly system. We believe Elmira and Horrible have high potential to expand into major new ore deposits. The Jualin system, consisting of four, separate gold occurrences, occurs immediately to the west of the mill facilities. The Kimberly structure is a new gold-bearing vein system exposed in the decline from the mill to the Kensington mine. We drilled the first holes at Kimberly in 2009 and 8 of 14 phase one core holes intersected very significant gold mineralization. Our plans for 2010 are to test the extension of Horrible and to follow-up our good results from 2009 at Kimberly.
A total of 14 core holes were completed from 3 drill stations last year. 8 of those holes cut very insignificant gold mineralization and define a body that is at least 600 feet long on strike and about 600 feet down-dip. Assay composites are shown here for 3 drill holes completed in phase 1 and a full set of drill composites are included in the appendix of this presentation. Kimberly is not exposed on surface, consists of at least two structures as can be seen in hole 013 composites, and remains open at depth and on strike. These characteristics suggest that Kimberly may develop into a major new gold system at Kensington and bodes well future such, blind discoveries in this district. Our future exploration will focus on expanding Kimberly and exploring for other similar blind veins nearby.
Thus far, the first phase of drilling at Kimberly has intersected mineralization typical of other major gold systems at Kensington with gold hosted in veins and stockworks associated with pyrite and carbonate alteration of the host Jualin Diorite intrusive. We are very encouraged by our results to-date from this first phase of drilling and have plans to drill additional holes at Kimberly on 2010 as well to test other targets with potential to add to resources and reserves at Kensington.
