The Silver Cloud property is a large, 4,537 hectare (11,210 acre) claim block, strategically located near the confluence of the Carlin Trend and the Northern Nevada Rift within north-central Nevada, the richest gold mining area in North America.
The property is located 8 km (5 miles) west of the Hollister mine which has a Measured and Indicated Resource of 0.43 Mt @ 16.6 g/t gold (for 208,000 oz Au) and an Inferred resource of 0.18Mt @ 14.4 g/t gold (for 74,000 oz Au.) Hecla’s Midas Mine lies a short 20 km (12.5 miles) along strike of the Rift to the north of Silver Cloud and has a Measured and Indicated Resource of 1.11Mt @ 12.9 g/t gold (for 419,000 oz Au) and an Inferred resource of 0.67Mt @ 10.4g/t gold (for 203,000 oz Au.)
Silver Cloud, like both Midas and Hollister, is a low-sulphidation epithermal Au-Ag banded vein deposit. At Silver Cloud, despite the extensive presence of mercury-bearing silica sinters on surface, the property has not been extensively or systematically drill tested. However, a limited drill program completed by Teck (10 holes) between 1999 and 2001 encountered 145 g/t Au over 1.5 meters and 5.67 g/t Au over 22.8 meters immediately below the Silver Cloud Mine area, and subsequent to that in 2002 Placer-Dome drilled 5.53 g/t Au over 12 meters in the Northwest Canyon target area, confirming the presence of high grade gold mineralization at depth. Neither of these intercepts were ever followed up.
In 1998, Carl Pescio staked 552 claims and leased it to Teck. From 1999 to 2001 Teck drilled 4023 meters in 10 holes and encountered 145 g/t Au over 1.5 meters in sheared volcanics beneath the Silver Cloud Mine. In late 2002, Placer joint-ventured the property with Teck. Placer drilled 3,832 meters in 11 holes. Placer’s best intercept occurred in their Northwest Canyon target area (west-northwest of the Silver Cloud Mine area) where they encountered 5.53 g/t Au over 12 meters in a structure at the contact of rhyolite tuff and intrusive rhyolite porphyry. Geologix assumed the Placer Dome-Teck-Cominco JV in late 2003.
The main gold-silver targets at the Silver Cloud Property are Midas-Hollister style volcanic epithermal low-sulfidation vein and disseminated gold / silver deposits. These mineralized areas appear to be situated along or near fault zones, close to or beneath siliceous “sinter” hot spring deposits. These siliceous sinters occur on and close to the paleozoic sediment – tertiary volcanic contact subsurface along the Midas – Silver Cloud trend, which is part of the “Northern Nevada Rift.”