Geophysics MT Survey Locates Conductive Body Under Historic Workings At Prospect Mountain

CALGARY - North Peak Resources Ltd. reported on the Magnetotelluric (MT) helicopter geophysical survey on its Prospect Mountain property in Eureka, Nevada. This work program was undertaken alongside other geophysical surveys, which included a ground gravity and drone magnetic survey, and geochemical sampling programs consisting of underground channel sampling and soil sampling to define surface and underground gold and polymetallic drilling targets on the mining complexes across Prospect Mountain.

"The Eureka camp might well re-emerge as the high-grade underground mining camp it formerly was, and the geophysics surveys underway are targeting these deeper sulphide gold and polymetallic targets, at or below the water table," said Brian Hinchcliffe, CEO. "Prospect Mountain itself was mined from the 9,600-foot elevation down to the 6,500 level off and on from 1870 until 1980 and under these shafts and historic workings sits this textbook conductive body as the possible source of mineralization."

Highlights: A 2km long conductive anomaly directly beneath the old oxide gold, silver, lead, zinc stopes and mine workings on the Property is highlighted by the geophysical survey; and The anomalies occur immediately below the water table where historical records from the district indicate the oxide sulphide transition occurs as it has in other mines in the Eureka Camp and may indicate sulphide mineralization is present.

Magnetotellurics is a passive electromagnetic system designed to measure resistivity/conductivity of the Earth and is especially useful for penetrating to deeper levels than comparable geophysical methods. The aim of the survey is to look for conductors beneath the water table that potentially represent the sulphide equivalents of the Prospect Mountain oxide mineralization.

The rocks surrounding the old oxide workings within the Hamburg and Eldorado Dolomites are highly resistive with no conductivity. Directly beneath the deepest part of the Property workings, at the level of the projected water table is a discrete > 2km long conductive body that plunges to the south. The strongest part of the anomaly sits directly beneath the largest bodies of historical workings on the Property, around the Shaft 1 area. While factors other than sulphides, such as graphitic shales and saline ground water, can cause conductivity, the groundwater tested on the Property is not known to be saline and there are no graphitic shales projected to be in the area beneath the historical mines on the Property. This increases the likelihood that the conductive anomaly is caused by sulphides and it is of a different character to the large formational anomalies highlighted by the survey to the west of the Sharp/Cave Canyon fault that are more likely to be related to lithology. A high resistivity area to the west of the workings may represent a porphyry intrusive. Cretaceous intrusives are thought to be related to the ore mined in the district.