Mine Life

LIFE of 2,400,000 T @ 500 TPD @ 300 DPY =16 Years

NET VALUE PER YEAR BEFORE TAXES = $7,212,000,000 ÷ 16 Yrs = $450,750,000/Yr

Mining Model 3

Model 3 contemplates the discovery of a “bonanza” or extremely rich gold ore zone encountered in the 2000' part of the mineralized structural zone between the Pringle Bench and Hillside areas shown on pages 12, 13, 14, 20, 21, 22, 23, and 24.

It is significant to note that the placer mining areas immediately below the mineralized zone of the Hillside area yielded quartz-carbonate gold nuggets as well as the largest portion of the 23,000 ounces of placer gold taken by Silverado during the exploration phase. Gold bearing solutions flowing in and through these zones rapidly precipitate out their gold within a carbonate environment.

Another indicator of the presence of one or more “bonanza” ore bodies is the fact that gold grades are increasing to the NE from the Pringle Bench area, as does the presence of quartz-carbonate. Our last drilling and trenching was 2000' SW of Hillside area at the northeast extent of Pringle Bench and encountered assays as high as 5.72 OPT Au over 1' and 5.22 OPT Au over 16.4'; as well as mineralized widths of up to 60' containing visible gold (VG) and Sb in a quartz-carbonate stockwork. Given this data, one is able to make a case for a bonanza-type system from place to place along strike in this area. We are also encountering native gold immediately below, and attached to a flat lying horizon of quartz crystals and black vitreous crystalline hard quartz. High grade gold has been encountered immediately below this horizon.

Example of a “Bonanza” Deposit

Say an area of 20' L x 10' D x 2" W lies in the 2000' L x 1000' D area between Pringle Bench and Hillside area. Gold draining this area has been recovered in pieces up to 41.4 Tr Oz (see back cover) @ 6" L x 2.5" W x 1.5" thick. (See pages 25-29 for some pictures of gold nuggets draining Hillside Area.) For every total of 20' L x 10' D x 2" W, we would have 20' x 10' x 1/6' = 33.3 ft3 @ 3 ft3/ton = 11.1 tons of 95% pure gold (Nolan gold ranges from 93 to 97% fine or pure) = 10.5 tons of pure gold @ 2000 lbs. / ton = 21,000 lbs @ 2.2 lbs / kilogram (Kg) or 9,546 Kg at 1000 grams (g)/Kg = 9,546,000 g @ 31.1 g / Tr Oz of Au = 306,945 Tr Oz @ $1300 / Tr Oz = $399 million (say 400 million). This could be mined and processed in one week. We would likely double the price if the gold ore is as spectacular as that which was taken by Silverado below this area. In this case we could cut the ore out of the ground and sell as specimen. Our gold is most often associated with optical grade hexagonal quartz crystals in a matrix of pure white quartz-carbonate on this area of the property and as such make an excellent case for exceptionally beautiful specimens. Gold specimens of this calibre often sell for 5 to 10 times the value of their gold content (i.e.: museums and collectors).

Therefore, every 20' x 10' x 1/6' or 33.3 ft3 section of ground represents a possible + $400 million in value. In an area of 2000' x 1000' x 1/6' (Model 3 area @ 333,333 ft3), we have 10,010 opportunities of locating a + $400 million ore zone. We suspect such + $400 million ore zones exist in the area indicated and possibility elsewhere on the property. The largest single nugget of the 200,000 Tr Oz taken by the old-time miners (back to 1897) was from the Hammond River area of the property and weighed 136 Tr Oz.

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