Here are some thoughts and facts about the Eastgate Gold Project. The brochure tells a lot of facts about this mine, I am proposing what is needed to be done to add to these facts and prove that it is indeed a viable project.

We will need to go in and duplicate what has been done, that is drill up to 25 more 500 foot diamond drill holes. There are 6 holes already drilled, done by U. S. Borax, so I would assume that these were done properly, but we need to duplicate these holes and do several sets of 6 in both directions along the strike of the mineral zone, this would be done at 100 foot intervals so as to give us some real information. Grid off the surface over the mineralized area where they got the .3 oz per ton assays and drill a minimum of 10 foot centers cross ways, 90 degrees to the strike, and 50 foot centers length way along the strike length. These holes can be air trac or RC (reverse circulation) holes and only need to be about 100 feet deep, these holes would be to determine how much ore could be mined by open pit methods. The owners are saying that there is 100,000 tons of .3 oz ore which can be mined by open pit methods, this drilling would prove this. If this is true 100,0000 tons of .3 ore would be 30,00 oz of gold with a very low production cost.. The owners also say that this amount comes out of 1,000 linear feet of mineralized zone and since the deposit seems to be open on both ends this tonnage could easily be twice that amount that our sampling, trenching, drilling and assaying wold prove this

Along with this exploration we would need to start preliminary metallurgical test work The largest ore deposit in the world is not worth anything if you can not get the values out at a profit. All of this sampling, assaying and metallurgical work can be carried out in our lab in Lone Pine at a much cheaper rate in 2 days- not the 2 week turn around that is common at the large commercial labs. Periodically we would send out sample splits for verification or a second opinion as it were.

The owners of the property are ready to make most any reasonable deal. They would sell, lease, partnership, etc. This would need to be worked out between the two parties.

One of the main advantages of this property over some of the others is that it is in what is called the “Carlin Trend” a geological area that contains all of the large gold mines in northern Nevada, the largest gold producing area in all of North and South America, number two or three i the world. I am not saying that this is a Carlin sized gold mine by any stretch of the imagination, but there are many medium and small sized very profitable mines in this “Carlin Trend” area.

I think that proving the property to our satisfaction would take between $250,000-$500,000 the actual cost depending on what you can get the drilling done for as this is the largest cost.

If you are really interested, and show this interest I can give you a precise break down of the costs involved in proving out this good looking property.

Paul M. Skinner

Mining Engineer