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Projects

Cobb Creek

Fremont has the right to acquire a 100% interest in the advanced-stage Cobb Creek gold project, located in Elko county, Nevada, from Clover Nevada II, LLC, a wholly owned subsidiary of Contact Gold Corp.

Cobb Creek highlights

  • Historical mineral resource estimate1: The McCall deposit, one target area within Cobb Creek, contains a historical mineral resource estimate (not NI 43-101 compliant) which is set out in the table below.

    Resource

    Mineralized

    Cut-Off

     

    Grade

    Ounces

    Classification

    Zone

    (opt)

    Tons

    (opt)

    Gold

    Indicated

    Oxide

    0.01

    1,362,233

    0.04

    54,864

    Indicated

    Sulphide

    0.01

    2,378,000

    0.05

    118,134

  • Historical exploration: Cobb Creek has not been drilled since 1992 and most of the historical drilling (over 140 drill holes) was very shallow. Some of the better drill results include drill hole COBRC-3, which returned 15.3 metres of 2.86 g/t gold (from 13.7 metres to 29.0 metres), and COBRC-84, which returned 33.5 metres of 1.92 g/t gold (from 18.3 metres to 51.8 metres), including 12.2 metres of 4.09 g/t gold. See Table 1 for more drill results.
  • Exploration potential: Cobb Creek is underexplored. It has been almost thirty years since Cobb Creek was last drilled. Fremont believes that there is significant potential to expand the Historical Estimate at McCall and also for the discovery of a Carlin-type target that was unrecognized by prior workers. Additionally, a number of exploration targets (Beaver, Silica Ridge, O, and Van Duzer Ridge) have not been drilled or were not followed up despite returning very anomalous gold values (see Figure 1).
  • Location: Cobb Creek is comprised of 167 unpatented mining claims and is located at the northern end of the Independence Trend, close to Highway 225 (see Figure 2). Western Exploration’s new gold discovery, Gravel Creek, is located approximately 6 kilometres to the southeast. It has been reported that Gravel Creek “contains an in-place unclassified mineral inventory of 1.4 million ounces of gold and 21 million ounces of silver…”. (Muntean, Davis, and Ayling, 2017, p. 22)2.

Figure 1: Cobb Creek exploration targets

Figure 2: Cobb Creek location

Cobb Creek geology

Cobb Creek gold mineralization is associated with quartz and calcite veins with widespread silicification and jasperoid development within greenstones and clastic sedimentary rocks of the Ordovician Snow Canyon formation in the upper plate of the Roberts Mountains thrust. Within a kilometre of McCall are exposures of silicified and quartz-veined lower plate Paleozoic Van Duzer limestone. Both upper and lower plate rocks are highly deformed and NE-SW and N-S regional fault trends project into the Cobb Creek area. 

Table 1: Selected historic drill intercepts from Cobb Creek

Hole ID

From m

To m

Intercept m

Gold g/t

 

COBRC-3

13.7

29.0

15.3

2.86

 

COBRC-20

7.6

16.8

9.2

2.32

 

COBRC-23

22.9

36.6

13.7

1.78

which includes 6.1 m @ 2.59 g/t Au

COBRC-24

3.1

10.7

7.6

2.60

 

COBRC-26A

48.8

56.4

7.6

1.90

 

COBRC-40

53.4

62.5

9.1

3.25

 

COBRC-73

13.7

19.8

6.1

3.13

 

COBRC-86

19.8

24.4

4.6

3.17

 

COBDDH01

24.4

38.1

13.7

2.07

 

COBDDH03

29.0

36.6

7.6

2.97

 

COBRC-84

18.3

51.8

33.5

1.92

which includes 12.2 m @ 4.09 g/t Au

COBRC-85

21.3

25.9

4.6

3.66

 

COBRC-105

42.7

54.9

12.2

1.85

 

Summary of the terms of the agreement

Fremont can acquire 100% of Cobb Creek by making payments totalling US$370,000 over nine years from September 27, 2019 (the “Effective Date”) and issuing 1,500,000 common shares of Fremont (“Fremont Shares”) to Clover. In addition to the payments to Clover, Fremont will assume responsibility for making payments totaling US$120,000 over four years to a previous underlying property owner (“Underlying Owner”). Lastly, Fremont will reimburse Clover for the related 2019-2020 land maintenance costs, and a portion of the 2018-2019 payments to the Underlying Owner. Fremont will be responsible for making all such future payments in order to keep the Option Agreement in good standing.

Fremont may accelerate the exercise of the Option Agreement and acquire 100% of Cobb Creek at any time by giving Clover ten days’ notice and paying all of remaining payments in full. 

Clover will retain a 2.0% net smelter return royalty on Cobb Creek and any new claims located within one-half mile of Cobb Creek. Fremont has the right to buy-down 1.0% of the royalty for US$2,000,000.

1The historical mineral resource estimate (“Historical Estimate”) was performed by and reported in a technical report prepared by Michael R. Pawlowski for Stacatto Gold Resources Ltd. and dated October 30, 20043. The Historical Estimate is based on a total of 72 drill holes with continuous zones of gold assays above 0.01 opt gold that could be reasonably interpreted to be continuous in three dimensions based on the construction of nine cross sections, 200 feet apart. The methodology employed in the Historical Estimate is detailed in the 2004 technical report by Pawlowski3.  A qualified person has not done sufficient work to classify the Historical Estimate as a current mineral resource or mineral reserve and Fremont is not treating the Historical Estimate as a current mineral resource or mineral reserve. In order to consider the Historical Estimate as current mineral resources or mineral reserves,  Fremont needs to retain a qualified person to verify historical drilling and assaying methods and validate historical results, add any drilling and assaying or other pertinent geological information generated since the last estimation, and complete an updated resource estimate and a new technical report.

2Muntean, J.L., Davis, D.A., and Ayling, B., 2017, The Nevada Mineral Industry 2015, Special Publication MI-2015, Nevada Bureau of Mines and Geology.

3Pawlowski, M.R., 2004, Technical report on the Cobb Creek Property, McCall Area, Elko County, Nevada. 

 


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