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Target: Multigram mesothermal quartz veins dipping under an altered rhyolite dome of uncertain age are the primary targets.
Location: The JPW project is about 50 miles ENE of Reno and just N of Brady's Hot Spring on Highway 80 north of Fernley in Churchill County Nevada. The JPW project consists of 24 unpatented lode claims owned by the Company and 480 acres of optioned fee land. The project area is adjacent to the AuEx-Tournigan Fireball Ridge and Gypsum Valley projects.
Ownership: AuEx has granted Tournigan, a Vancouver based, TSX.V listed company, an option to earn a 51% interest in the project by funding $1,000,000 in exploration on the project within five years. Tournigan paid AuEx $35,000 on signing (which includes payment for other projects in the area) and is obligated to fund $100,000 of exploration in the first year of the option. Upon vesting an interest, Tournigan may then elect to earn an additional 9% interest (60% total) by spending an additional $1,000,000 within three years on the project and may earn an additional 10% interest (70% total) by funding all expenditures through completion of feasibility and by arranging project financing. The agreement also contains a 150 square mile Area of Interest ("AOI") that surrounds and includes three established projects including JPW. AuEx has performed remote sensing, and magnetics analysis that has identified possible exploration targets. Tournigan may establish additional exploration projects within the AOI for which the earn-in requirements are one-half of the amounts noted above. Tournigan will be operator for all exploration.
History: AuEx defined the target area from proprietary processing of satellite imagery and detailed geochemical sampling of specific vein systems. Ground follow-up and sampling by AuEx has returned gold values to 5.5 g/t, silver values to 567 g/t and strongly anomalous pathfinder geochemistry. Previous explorers conducted trenching in two areas with several drill holes being drilled in one of these. The area with the highest surface gold samples adjacent to the altered rhyolite dome has never been drilled.
Geology: The prospect contains a mesothermal gold-silver bearing quartz veins hosted within a series of northeast faults in sericitically altered Mesozoic meta-sediments and meta-volcanics. Quartz veins dip into an altered rhyolite rock unit and are buried directly out to the edge of the pediment.
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