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Sandman

NEVADA, USA

Highlights

Proven gold mineralization comprising 21.8Mt @ 0.7g/t gold for 494,000 oz Au

  • Indicated Resource of 18,550 kt @ 0.73 g/t gold for 433k ounces Au
  • Inferred Resource of 3,246 kt @ 0.58 g/t gold for 61k ounces Au

(see section on Mineral Resource estimate)

Updated 2021 Sandman NI43-101 resource estimate increased by 60%

since the 2007 resource estimate

Located on renowned gold trend in #1 Mining Jurisdiction in the World

~23km from Sleeper Mine that produced 1.7M oz Au @ 7 g/t average head grade (1986-1996)

Extensive & consolidated land package

117km² Sale Boundary with numerous high grade gold exploration targets identified from historical data

Expansion potential with significant drilling and exploration conducted post-resource estimate & massive gaps in exploration under cover

since the 2007 resource estimate

Fully permitted via a comprehensive Plan of Operation

Drill program planned to commence in Q1 2021 – already permitted for drilling

Property Details

Sandman is located in Townships 36 and 37 North, Ranges 35 and 36 East, Mount Diablo Meridian, Humboldt County, Nevada, USA. The property is situated south of the Slumbering Hills and west of the Tenmile Hills, circa 24 km northwest of the town of Winnemucca, Nevada. The property lies 23 km south of the successful Sleeper gold mine¹ which historically produced 1.7M oz Au with M&I Resources in excess of ~3M oz Au² (Figure 1). Sandman is accessed by driving west from the town of Winnemucca on Jungo Road for 15 km, and then an additional eight km to the north on dirt roads that lie largely within the property boundaries.

Figure 1. General Location map

Figure 2. Sandman Plan of Operations permit boundary showing resource locations.

The Sandman property is located on a checkerboard mix of public and private lands. Gold Bull Resources Corp has extended their land package via a recent staking program completed end of 2020. The property now consists of 833 mineral claims within the 117 km² total land package. Gold Bull Resources has an active Plan of Operations in hand, allowing 500 acres of surface disturbance (Figure 2). The net smelter return production royalty obligations are being transferred from Newmont to Gold Bull to be completed in February 2021.

Significant gold mineralization at Sandman has been identified at Southeast Pediment, Silica Ridge, North Hill, and Abel Knoll deposits (Figures 2 and 3), for which an updated 2021 NI43-101 mineral resources estimate has been completed (see section on Mineral Resource Estimate).

¹ Reference to a nearby property is for information purposes only and there are no assurances that the Sandman property will achieve similar results.

² Paramount Gold, Corporate Presentation September 2020

History

1987-1994

No significant historic mining activities have taken place within the Sandman project limits. Modern exploration of the Sandman project began in 1987 when Kennecott Exploration Company (“Kennecott”) discovered gold in outcrop at North Hill. Kennecott and Santa Fe Pacific Gold Corporation (“Santa Fe”) formed a joint venture and conducted geologic mapping, surface sampling, geophysical surveying, trenching, drilling, and metallurgical testing through 1994. The joint venture drilled 275 reverse-circulation (“RC”) holes and three diamond-drill core (“core”) holes in this period, as well as 4,000 shallow auger holes to sample bedrock beneath the extensive sand cover. A block of claims staked by U.S. Borax was acquired by the joint venture in 1989. U.S. Borax had drilled 37 RC holes within these claims. The work of these companies led to the discoveries and partial definitions of the Southeast Pediment, Silica Ridge, and North Hill gold deposits, as well as the identification of the Adularia Hill, Basalt Hills, Basalt Fields, and Abel Flat exploration target areas (Figure 3).

1997

Kennecott and Santa Fe terminated their joint venture and conveyed their individual holdings at Sandman to Western States Mining (“WSMC”) in 1997. WSMC and NewWest Gold Corporation subsequently conducted extensive exploration of the property, including rock chip and soil sampling, geophysical surveying, trenching, drilling, and metallurgical testing. WSMC also excavated a test pit at Southeast Pediment measuring roughly 60m long by 15m wide by 5m deep. A 1,067-ton bulk sample of relatively high-grade mineralization was mined and shipped to the Twin Creeks mine of Newmont for milling and leaching.

2005-2011

In 2005 NewWest acquired the property from WSMC and employed Mine Development Associates to prepare a 43-101 report. In 2007 Fronteer acquired the Sandman property from NewWest Gold and then in 2008, formed a joint venture with Newmont. In 2011, Newmont acquired Fronteer and initiated Stage 2 studies and reporting, including drilling 364 holes within the Sandman AOI. In addition, Newmont began Stage 3 initial permitting, including waste characterization, aquifer testing, water rights acquisition, and metallurgical studies. The project was put largely on hold by Newmont between 2012 and 2016 due primarily to low gold prices.

Post 2007 Resource Estimate

The property boasts an extensive geological, geochemical and geophysical database with significant drilling and geological advancement post the 2007 resource estimate. The historical databases, in addition to 974 drill holes, includes 4,293 soil samples from 6 surveys, 3,519 rock chip samples from 23 surveys and an abundance of geophysical datasets including one airborne EM survey, three airborne magnetic surveys, one airborne radiometric survey, two CSMAT surveys at Silica Ridge and Southeast Pediment (2011, 2012), one IPRES survey, 576 gravity stations from one survey, and a basin model¹.

¹ Newmont Management Presentation, March 2019

Geology & Mineralization

Sandman lies along the north-northwest-trending eastern margin of the Sleeper or Kings River Rift, which is regionally part of the Central Northern Nevada Rift (NNR). The Sleeper Rift consists of a regional aeromagnetic and gravity linear high that extends from the Idaho border to the Sleeper gold mine (located 23 km N-NW of Sandman; Figure 3), through Sandman, and through the Goldbanks gold deposit (located 48 km S-SE of Sandman). Much of the property area is covered by windblown sand deposits and Late Tertiary to Quaternary basalt. Mapping, exploration drilling, and extensive shallow auger drilling through the sand indicate that most of the sand and basalt in the project area are underlain by a section of Tertiary tuffaceous rocks and andesite, which in turn overlie Late Triassic to early Jurassic metasedimentary clastic and subordinate carbonate rocks.

The Southeast Pediment, Silica Ridge, North Hill, and Abel Knoll Au+Ag mineralization at Sandman are classified as low-sulfidation, quartz-adularia, epithermal deposits. The mineralization is hosted by Tertiary volcanic rocks, primarily in tuffaceous units, andesite porphyry, tuffaceous sedimentary units, and basalt. Northwestern Nevada contains a number of similar middle Miocene Au-Ag deposits that occur in silicic volcanic or subvolcanic rocks, including the Sleeper, Tenmile, National, and Hog Ranch deposits (Conrad et al., 1993). The abundance of adularia and relative paucity of silicification associated with much of the Sandman mineralization compares more closely to the mineralization type at the Round Mountain mine located to the south in Nye County, Nevada.

In general, higher-grade gold mineralization at Sandman can be stratigraphically controlled along contacts between basalt flows, interbedded fluvial conglomerates and tuffaceous rocks (e.g., North Hill Deposit), or structurally controlled as lens-shaped pods, with high-continuity, lower-grade disseminated gold in sediments and volcanics (e.g., Silica Ridge and SE Pediments Deposits). Quartz-adularia alteration dominates the ore zones, whereas propylitic, argillic, and sericitic alteration are associated with the known resource areas more distally.

Figure 3. Sandman project area with underlying geology and main prospects

2021 Drill Results

(Ongoing)

The Company has commenced a Phase I Reverse Circulation (RC) drill program consisting of 3000m for 17 drill holes.

Abel Knoll

Hole SA0001 at the Abel Knoll resource was designed to test the depth extension, width and grade of the mineralized diatreme breccia in the vicinity of a historic drill hole that ended in high grade gold mineralization (AK06-023 ended in 9.6 g/t gold).

Abel Knoll Drill Intersection Highlights¹

Drill hole SA0001 intersected 144.8m at 1.67g/t Au from 65.5m, including:

  • 6.1m at 10.75g/t Au from 143.3m
  • 97.5m at 2.23g/t Au from 96m

Gold mineralization at Abel Knoll is hosted within a near-vertically plunging polylithic diatreme breccia composed of vesicular to aphanitic andesite, basement phyllites and quartzites, tuffaceous wall rocks, and trace Mesozoic granodiorite within an ash and crystal fragment matrix. The Abel Knoll geology is unlike any of the other mineral resources located within the project.

Abel Knoll Map
Figure 4. General location of Hole SA0001 in relation to the Sandman Property and Abel Knoll Project

Gold mineralization at Abel Knoll is hosted within a near-vertically plunging polylithic diatreme breccia composed of vesicular to aphanitic andesite, basement phyllites and quartzites, tuffaceous wall rocks, and trace Mesozoic granodiorite within an ash and crystal fragment matrix. The Abel Knoll geology is unlike any of the other mineral resources located within the project.

Abel Knoll drill hole summary
Figure 5. Abel Knoll drill hole summary, including recent hole SA-0001

Hole SA0001 intersected the diatreme breccia from 67.1 m to 187.5 m down-hole before passing into Triassic phyllite country rock to end of hole.  A mineralized interval of 144.8 m @ 1.67 g/t Au from 65.5 m down-hole corresponds to the diatreme breccia and zones of mineralized basalt and phyllite at the margins.  This zone includes 97.5m @ 2.23g/t Au from 96m (using 1 g/t Au cut-off), which includes 6.1m @ 10.75g/t Au from 143.3m (using 5 g/t Au cut-off).  The diatreme breccia intersected by this hole appears almost entirely oxidized and remains open at depth. Additional drilling is warranted at Abel Knoll to further investigate these high-grade results and to close off the resource.

 

Abel Knoll lithology polygon
Figure 6. Abel Knoll current resource lithology polygon (in purple)

Significant Intercept summary of drill hole SA-0001

From (m)

To (m)

Gold ppm (Au g/t)

65.5

210.3

1.67* (using 0.2 g/t Au cut-off) including:

96

193.55

2.23* (using 1 g/t Au cut-off)

143.25

149.35

10.75 (using 5 g/t Au cut-off)

¹ Gold Bull Intersects 144.8m at 1.67 g/t gold, including 6.1m at 10.75 g/t gold in maiden drill hole at Sandman, March 21, 2021; Gold Bull Resources Corp, News Release

North Hill

Drill Holes are North Hill were designed to increase confidence in the resource estimate at the deposit by confirming the grade, width, and continuity of high-grade gold zones intersected by historical drilling. Assay results indicate the program achieved these objectives.

North Hill Drill Intersection Highlights²

Drill hole SA-0004 intersected 10.7m @ 3.28 g/t Au from 19.8m and 13.7m @ 10.95 g/t Au from 41.1m, including:

  • 3.0m @ 31.57 g/t Au from 44.2m

Drill hole SA-0005 intersected 9.1m @ 4.94 g/t Au from 50.3m and 6.1m @ 0.55 g/t Au from 22.9m, including:

  • 6m @ 9.53 g/t Au from 53.3m

 Drill hole SA-0002 intersected 25.9m@ 4.48 g/t Au from the surface (0.0m), including:

  • 5m @ 55.33 g/t Au from 22.86m and 12.2m @ 0.95 g/t Au from 32.0m
Abel Knoll Map
Figure 7. Drill hole locations for holes SA-0002, SA-0003, SA-0004, and SA-0005

Gold mineralization at North Hill occurs in shallow dipping, bedding parallel domains. The higher concentrations and more extensively defined mineralized zones are associated with either the upper or lower contact position of a basalt unit, within the broader Tertiary felsic volcanic rocks.  

All drill holes at North Hill have confirmed the interpretation and continuity of several shallow and high-grade positions within the Mineral Resource estimate. Of note, historic drill hole NSM-00189, which intersected 14.1m @ 6.76g/t from 19.1m and 11.4m @ 40.3g/t from 37m, was confirmed by drill hole SA-0004, which intersected the relatively flat lying extensions of both intersections for 10.28m @ 3.28g/t from 19.8m and 13.7m @ 10.95g/t from 41.1m respectively (see plan view Figure 8  and cross section Figure 9). Adjacent historic hole NH06-0082 intersected lower grade mineralization in the same domains; the result from SA-0004 provides important confirmation of the high-grade intersections in NSM-00189.

All gold mineralization at North Hill discovered to date is strata-bound. The structure that formed a conduit for mineralizing fluids, which often contains bonanza grades in this deposit style, has not yet been located. Future drilling will focus on locating this target and lateral extensions to the North Hill deposit, which remains open in several directions.

Abel Knoll Map
Figure 8. North Hill Mineral Resource domains with locations of recent drill holes and line of section shown in Figure 9
Abel Knoll Map

Figure 9. Cross section showing results from recent holes SA-0003 and SA-0004 at North Hill

Significant Intercepts in drill holes SA-0002, SA-0003, SA-0004, and SA-0005

Hole ID

From (m)

To (m)

Width (m)

Gold ppm (Au g/t)

SA-0002

0.0

25.9

25.9

4.48 (using 0.2 g/t Au cut-off)

SA-0002

32.0

44.2

12.2

0.95 (using 0.2 g/t Au cut-off)

SA-0003

15.2

21.3

6.1

1.81 (using 0.2 g/t Au cut-off)

SA-0003

36.6

39.6

3.0

0.77 (using 0.2 g/t cut-off)

SA-0004

19.8

30.5

10.7

3.28 (using 0.2 g/t Au cut-off)

SA-0004

41.1

54.9

13.7

10.95 (using 0.2 g/t Au cut-off)

including

44.2

47.2

3.0

31.57 (using 5 g/t Au cut-off)

SA-0005

22.9

29.0

6.1

0.55 (using 0.2 g/t Au cut-off)

SA-0005

50.3

59.4

9.1

4.94 (using 0.2 g/t Au cut-off)

including

53.3

57.9

4.6

9.53 (using 5 g/t Au cut-off)

² Gold Bull drills several shallow high-grade intercepts including 13.7m @ 10.95 g/t Au from 41.1; Extends North Hill high-grade gold mineralization at Sandman; March 28, 2021; Gold Bull Resources Corp, News Release

Historic High Grade Drill Intercepts

Silica Ridge Target

The primary host units at Silica Ridge are fluvial siltstone, sandstone, conglomerate, and epiclastic tuff. Mineralization is primarily focused along the main NNE and NW fault sets (Figure 10) over a known strike length of 850 meters. Gold values are elevated in fault breccias, especially where coincident with conglomerate beds. The mineralization at Silica Ridge occurs over a 700 by 250m area. Previous drilling at Silica Ridge has intersected high grade oxide gold mineralisation including:

Figure 10. Cross section of the Silica Ridge deposit showing geology and mineralized envelopes (pink envelopes represent areas of 0.34 g/t and red evelopes represent areas >3.4g/t)
Drill Hole No From-m To-m g/t
Au
g/t Ag interval
NSM-042⁴ 37.58 40.78 8.40 3.2m
NSM-044¹ 37.06 38.89 29.17 1.83m
NSM-110¹ 17.86 20.48 32.14 2.62m
NSM-110¹ 78.97 97.69 1.07 18.71m
NSM-123² 49.10 52.58 22.37 3.47m
NSM-126² 3.47 6.46 20.03 2.99m
NSM-141¹ 47.15 48.34 86.91 1.19m
NSM-141² 37.34 44.5 13.15 7.16m
NSM-142¹ 57.79 61.26 90.28 126.54 3.47m
NSM-143³ 6.55 8.41 5.95 1.86m
NSM-143³ 0 8.41 2.92 8.41m

 

¹ Drilling returns 1.23 ounces per ton gold over 24.8 feet at Sandman, Nevada, March 5, 2010; Fronteer Gold, News Release 10-10.

² Sandman delivers more high-grade gold to Fronteer’s Nevada Platform with 90.28 g/t Au over 3.47 metres, January 25, 2010; Fronteer Gold, News Release 10-05.

³ Sandman Gold Project on track to potential production decision by June 11, January 11, 2010; Fronteer Gold, News Release 10-03.

⁴ High-grade gold intersected in footwall zone of Sandman Gold Deposit, August 5, 2009; Fronteer Gold, News Release 09-24

SE Pediment Target

Southeast Pediment is an outcropping, moderately dipping, high-grade vein system hosting a predominantly oxide gold resource at the intersection of two prominent structures (Figure 11). Approximate dimensions of Southeast Pediment are 305 meters in length by 30 to 60 meters in width. Drilling has intersected a wide zone of high-grade sulfide mineralization (hole NSM-051) below the oxide gold vein, illustrating the high-grade nature and strong continuity of mineralisation at SE Pediment, and suggesting the presence of multiple mineralised vein structures in the deposit. Highlights from historic drilling at SE Pediment include:

Figure 11. Cross section of the Southeast Pediment deposit showing geology and mineralized envelopes. (pink envelopes represent areas of 0.34 g/t and red evelopes represent areas >3.4g/t)

Drill Hole No

From-m

To-m

g/t Au

g/t Ag

interval

NSM-05⁴

31.73

32.31

8.05

 

0.58m

NSM-051⁴

22.86

32.31

1.28

 

9.45m

NSM-051⁴

118.57

120.64

28.90

 

2.07m

NSM-051⁴

114.67

146.7

3.16

 

32.03m

NSM-145³

35.20

39.96

5.70

 

4.75m

NSM-145³

35.20

37.52

9.65

 

2.32m

NSM-146²

32.61

33.83

9.23

 

1.22m

NSM-147¹

12.92

13.93

52.45

 

1.01m

NSM-148¹

31.76

32.77

50.55

2067

1.01m

¹ Drilling Returns 1.23 Ounces Per Ton Gold Over 24.8 Feet at Sandman, Nevada, March 5, 2010; Fronteer Gold, News Release 10-10.

² Sandman Delivers More High-Grade Gold to Fronteer’s Nevada Platform With 90.28 G/T Au Over 3.47 Metres, January 25, 2010; Fronteer Gold, News Release 10-05

³ Sandman Gold Project on Track to Potential Production Decision By June 11, January 11, 2010; Fronteer Gold, News Release 10-03

⁴ High-Grade Gold Intersected in Footwall Zone of Sandman Gold Deposit, August 5, 2009; Fronteer Gold, News Release 09-24

North Hill Target

North Hill as been characterized as an oxidized, low-sulfidation, epithermal gold occurrence that extends 550m long, 430m wide. Mineralization at North Hill is controlled by a combination of low-angle contacts between the various basalt flows and the interbedded fluvial conglomerates and tuffaceous rocks (Figure 12). Previous drilling intersected oxide gold mineralization stating at a depth of less than 25m and high-grade intercepts at North Hill include:

Figure 12. Cross section through the North Hill occurrence showing geology, gold mineral envelopes and drilling (black lines) (pink envelopes represent areas of 0.34 g/t and red evelopes represent areas >3.4g/t).

Drill Hole No

From-m

To-m

g/t Au

interval

NSM-182¹

56.40

93.90

1.54

37.49m

NSM-182¹

56.40

58.40

8.83

1.98m

NSM-184¹

7.00

11.00

7.75

3.96m

NSM-185¹

12.70

39.80

1.27

27.10m

NSM-185¹

31.60

38.50

3.11

6.83m

¹ New Drill Program Targeting Sandman/S Fourth Gold Deposit Returns Multiple Intervals of Near-Surface Gold, October 13, 2010; Fronteer Gold, News Release 10-33

2021 43-101 MINERAL RESOURCE ESTIMATE

An updated 2021 mineral resource report for the Sandman project was modeled and estimated in accordance with Canadian Institute of Mining, Metallurgy, and Petroleum (“CIM”) definitions. Gold resources as Southeast Pediment, Silica Ridge, North Hill, and Abel Knoll are summarized in Table 1.

 

Table 1. Sandman Updated Gold Resource Estimate¹

The number of metric tonnes was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects.

¹ The Mineral Resource Estimate (MRE) was completed by Steven Olsen, an Independent Consultant and qualified person under NI 43-101. MRE was derived from 249 historical surface diamond drill holes and 650 RC drill holes totaling 20,201 m of diamond drilling and 75,573.3 of RC drilling.

An Indicated Resource of 433,000 oz Au plus an Inferred Resource of 60,800 oz Au result in a total Resource of 494,000 oz Au at Sandman from four of the known five deposits. Metallurgical information completed to date from Sandman indicates that different processing methods and operating costs will be required for the oxidized rock compared with the unoxidized rock, or fresh rock. A cut-off grade of 0.15 g/t gold has been applied to the oxide rock which compares with the cut-off grade for unoxidized (fresh) rock of 0.30 g/t gold.

MINERAL PROCESSESING & METALLURGICAL TESTING

Bottle roll, column leach, and some gravity concentration tests have been undertaken on trench and drill- hole samples from the Southeast Pediment, Silica Ridge, and North Hill deposits. The bottle roll and column data indicate that the gold mineralization tested is amenable to direct cyanidation. The data consistently show that cyanide extractions increase with decreasing particle size for the samples tested. Samples that were pulverized to -100 mesh yielded an average gold extraction of 94.3%, while RC chip samples tested at the ‘as-received’ size and samples crushed to 6.35mm yielded an average gold extraction of 77.8%. There is no clear relationship between the cyanide extractions and gold grades of the head samples, although there is some evidence that samples with higher head grades require a longer leach time to achieve comparable extractions. Cyanide consumptions and lime requirements are low to moderate.

The bulk sample extracted from the test pit at Southeast Pediment was sent to Newmont’s Twin Creeks mine for milling and cyanide leaching. Over 95% of the gold in the 1,067-ton sample was recovered, which is consistent with the bottle roll results generated from samples pulverized to -100 mesh.

 

EXPLORATION POTENTIAL

Exploration work completed at Sandman to date has resulted in the discovery of four gold deposits and the identification of other target areas that remain to be explored. Sandman provides the potential for near-term production from one or more of the known deposits. There is also excellent potential for the discovery of new precious-metal mineralization beyond the limits of the deposits, as demonstrated by the discovery of the Abel Knoll deposit in 2006.

Gold Bull believes that Sandman is a property of merit that warrants significant additional expenditures. Programs aimed at increasing the size of the Sandman mineral resources and defining new areas of mineralization are justified in a Phase I work program. Drilling at the four deposit areas in 2006 and 2007 concluded with open-ended mineralization in a number of drill holes, and step-out RC drilling in these areas should continue.

Sandman is a large property that is extensively covered by alluvial gravels and wind-blown sand. Four discrete gold deposits have been discovered at Sandman, which proves the existence of multiple hydrothermal systems and suggests that the potential for the discovery of additional deposits is excellent. Geophysical, geochemical, and geological data have led to the identification of a number of quality exploration targets that are not fully explored. The Phase I program recommends first-pass or follow-up drill testing of these targets. Further work aimed at developing new exploration targets is also warranted. Geophysical and geochemical surveys should be completed with the goal of defining new targets. Additionally, scoping-level economic studies should be completed as deposit resources continue to be refined.

Qualified Person

Cherie Leeden, B.Sc (Applied Geology, Honours), MAIG, a “Qualified Person” as defined by National Instrument 43-101, has read and approved all technical and scientific information contained on this page. Ms. Leeden is the Company’s Chief Executive Officer.

The 2021 Mineral Resource Estimate (MRE) for the Sandman Project was completed by Steven Olsen, who is an Independent Consultant and is a qualified person under NI 43-101.

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