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Danbo

Danbo

Introduction

The Danbo property is located along the northern margin of the of the Walker Lane belt in west-central Nevada. It occurs in an extensional, Tertiary-aged rhyolite volcanic centre analogous to the setting of the Round Mountain gold mine located approximately 50 km’s to the north, and the past producing Paradise Peak gold deposit located 110 km’s to the northwest, operated by FMC Mining Corp. between 1986 and 1994.

There are scattered historic workings at Danbo and in the surrounding district, active between the 1900’s and 1930’s, but modern exploration at Danbo is limited to early-stage surface sampling and a reverse-circulation drilling program in the early 1980’s by Amselco. Overall, the property is remote and underexplored, but there is road access for cost-effective exploration. The potential for VR is to be the first company to fully evaluate and diamond drill test the 1,500 metre strike length of the low-sulfidation, gold bearing epithermal quartz vein system exposed at surface at Danbo.

Location and Access

The Danbo property is located in Nye County in west-central Nevada. It is in the southern part of the Monitor Range, approximately 50 kilometres northeast of Tonopah.

Cost effective exploration is afforded by road access to the property on Highway 82, with actively used historic ranch and mine roads throughout the property connecting it to the highway.

Topography at Danbo is mountainous. The main bowl at Danbo is the upper watershed for connecting waterways, and is at an elevation of 7,900 feet, with surrounding ridges and rounded peaks exceeding 8,800 feet. The lower elevations below Danbo are covered by an open floor pine forest. The Danbo property itself is in a sub-alpine bowl, with grassy rangeland with scattered sage and spotted by stunted pine and juniper in places.

Outcrop is extensive at Danbo. Where covered, colluvium is interpreted to be thin and local in nature. Soil profiles are poorly developed at Danbo; fine, light brown colluvium normally gives way to more rubbly weathered outcrop material within a metre of depth, or less.

Climate is semi-arid to arid, with hot dry summers and cold dry winters. There are numerous spring-fed streams in connecting valleys at Danbo, active year-round, even in late summer.

Property Description and Ownership

The Danbo property is a contiguous block of 21 claims covering 434 acres (176 hectares).

The property is on federal land administered by the Bureau of Land Management (BLM), and part of the Toiyabe National Forest, managed by the federal Forest Service. There is no privately-owned land which impedes access to the property or precludes exploration on the property. The property is not within the BLM’s broadly defined area of sage grouse protection.

The Company owns a 100% interest in the Danbo property, registered to the Company’s wholly-owned, Nevada-registered US subsidiary Renntiger Resources USA Ltd. There are no underlying annual lease payments on the property, nor are there any joint venture or carried interests on the property. There is a 3% net smelter returns royalty on 8 core claims in the central portion of the property, with a buy-down provision (option) to purchase one half of the royalty (1.5 %) for US$ 3,000,000.

Current Exploration, 2016-2017

VR has completed several reconnaissance surveys in the late fall of 2016 and summer of 2017. Work includes:

2016

  • Geological mapping of Tertiary volcanic stratigraphy, and structural mapping of the vein system;
  • Alteration mapping in the field, aided by systematic collection of 43 samples of vein outcrops for SWIR spectral analyses (TerraSpec mineral reflectance alteration mapping);
  • Soil sampling: 96 samples on 50 metre stations on 6 lines covering 800 m strike length of the vein system;
  • Ground magnetic survey: 16 lines, 600 m long, on 100 spacing, for 9.6 line-kilometres covering an overall area of approximately 1.6 kilometer by 600 metres, covering the entire known vein system.

2017

  • Airborne Hyperspectral survey for mineral alteration mapping covering 3 by 1.5 kilometre area: 3 metre pixel resolution; Level III processing;
  • Soil Sampling: 49 additional samples to extend and infill existing samples; and
  • Rock sampling for geochemistry: 59 samples

Property Geography and Mineralization

Danbo is an epithermal gold prospect hosted in a sub-horizontal Tertiary pyroclastic sequence of rhyolite lapilli tuff and ash flow tuff. The volcanic stratigraphy exposed on the Danbo property consists of 4 well-defined felsic pyroclastic units. The pyroclastic units are sub-horizontal and do not show evidence of major faulting. No vertical or horizontal translations are evident across the major veins transecting the property.

A series of northwest-striking epithermal quartz veins can be traced across a north-trending valley incised into the pyroclastic sequence for approximately 1,500 m of strike. Three or four distinct zones of veined tuff are mapped across an overall width of 300 to 400 metres, with an additional zone inferred from soil geochemistry and hyperspectral surface alteration data implying a width of 1.1 kilometres. Individual veins are centimetres to decimetres wide, with metre-scale zones of quartz vein breccia in the central part of the property. Narrow (less than one meter), white weathering, crystalline mica-bearing argillic alteration halos are evident at most vein outcrops.

Drusy quartz in open space is nearly ubiquitous along the 1,500 m strike length. Bladed quartz after carbonate is also common, evidence of hydrothermal boiling in the high-level, low-sulfidation epithermal vein system at Danbo. Banded, colloform textures are observed only locally, and most commonly in the central, lower elevation part of the property. The veins generally contain trace to 1%, fine grained sulfide minerals as disseminated grains and blebs.

Property Portfolio Map

Regional Setting

Property Location Map

Danbo Property
Quartz Vein System

Magnetic Survey

Boiling Texture

Open Space

Banding

Drusy Sulfide Vein

Vein Breccia