CIMARRON, NYE COUNTY, NEVADA
PROJECT Overview
Surface Metals Inc. (SUR), through its subsidiary, Surface Metals US Inc., owns a 90% interest in a high grade, highly prospective exploration project with a drill-indicated historic gold resource and a second target area with similar mineralized drill intercepts that remain open in several directions.
The Cimarron Gold Project is located at the north end of the San Antonio Mountains in the historic San Antonio (Cimarron) Mining District, approximately eighteen miles (29 km) north of Tonopah in Nye County, Nevada. It comprises 31 unpatented lode mining claims near the historic San Antonio Mine workings and immediately adjacent ground. The prospect has drill ready targets and offers a significant opportunity to establish a NI 43-101 compliant gold resource.
Regionally, the property is at the intersection of two prominent gold trends: The Walker-Lane trend which runs approximately NW and hosts a number of mines including Bullfrog, Goldfield, and Rawhide; and an approximately NNE trend of gold mines including Manhattan, Gold Hill, and Barrick and Kinross’s “world-class” Round Mountain located 28 miles away (45 km) – (15 millionth ounce of gold was poured as of 2018).
Highlight Includes
- Located at the north end of the San Antonio Mountains in the historic San Antonio Mining District, approximately 18 miles north of the town of Tonopah, in Nye County, Nevada.
- Comprised of 69 unpatented lode mining claims, covering approximately 1079 acres.
- Covers a structurally controlled, volcanic hosted epithermal, disseminated gold system.
- Historical drill campaigns, primarily in the 1980s provide an extensive historic record of drilling results (230+ DHs) totaling over 18,000 meters. The drilling has been for the most part focused and shallow, with an average depth of 77 meters or approximately 250 feet.
- Extensive geologic mapping, surface and underground sampling has been completed (800+ surface and underground samples).
- Historic high-grade intercepts included 11 m of 4.46 g/t Au, 23 m of 4.49 g/t Au and 46 m of 3.94 g/t Au.
- Mineralized intercepts remain open at depth, as well as possible expansion in several directions.
Exploration
- Exploration by both major and junior mining companies from 1980 through 2004. Newmont and Echo Bay identified gold mineralization in three discrete area in the immediate Cimarron Mine.
- Sampling of surface outcrops and underground adits by previous explorers reported gold assays from quartz-adularia-quartz veining as high as 107 g/t and 30.2 g/t (3.12 and 0.88 oz/ton, respectively) with negligible silver and base metals. Table 1 lists examples of high-grade assays collected by the various mining groups (Bullion River Gold Corp., Feb. 2004).
- Drill testing by Newmont, Budge, Echo Bay, and Romarco demonstrated continuity of lower grade gold mineralization in three discrete mineralized areas at Cimarron, as shown in Figure 3 and tabulated in Table 3 (resources non NI 43-101 compliant). Higher grade gold intercepts were not uncommon or restricted to any particular explorer.
- Echo Bay estimated a total gold resource in 1987 of over 50,000 ounces of gold within a block of about 1,500,000 tons of material in the West, East and Central Zones combined. The estimate is historical and not in compliance with NI 43-101. The historical estimate is not supported by a technical report. A qualified person has not done the work necessary to verify the historical estimate as a current estimate under NI 43-101 for the Company and the estimate should not be relied upon. Approximately 80% of these ounces are in the West Zone.
CIMARRON – HISTORIC RESOURCE
- Exploration efforts in the 1980s led to the identification of gold mineralization in three zones (West, East, and Central Zones) surrounding the Cimarron Mine, with surface and underground assays reporting gold values up to 107 g/t.
- Budge Exploration acquired the property in 1986 and drilled 54 holes, resulting in an internal resource of over 50,000 ounces of gold at 0.034 (1.5Mt of material) from the 3 zones.1
- Echo Bay Exploration (EBX) optioned the property in 1988, drilled an additional 98 holes, converted to a pit constrained gold resource of 32,767 ounces at 1.20 g/t (0.035 opt, 0.94Mt). 2
- 78 holes intersect significant gold outside the EBX pit resource envelope, with 65 holes terminating in Au mineralization.
- There is no technical report to support these historical estimates. These estimates and are not to be treated as current and shall be considered non-NI43-101 compliant.
1. Internal Memo. “Cimarron, Nye County, Nevada: Review of 1986 work and recommendations for work in 1987”, Peter H. Hahn, February 1987
2.“Summary Report, Cimarron Project, Nye County, Nevada”, N.H. Brewer, Echo Bay Exploration, January 1988
Table 1
Historic High Grade Rock Chip Samples
| Area | Gold Grade grams/tonne | Area | Gold Grade grams/tonne |
| Cimarron | 106.7 | North | 16.8 |
| Cimarron | 21.9 | Breccia | 29.2 |
| Cimarron | 16.3 | West Adit | 10.1 |
| Cimarron | 9.9 | West Adit | 12.0 |
| CO8 | 53.5 | West Adit | 30.2 |
| CO8 | 9.2 | CO8 | 8.9 |
(Bullion River Gold Corp. Fact Sheet, 2004)
Table 3
Historic Resource Estimate*
| Zone | Metric Tonnes | Au Grade g/t | Short Tons | Au Grade oz/ton | Ounces |
| West | 1,050,000 | 1.40 | 950,000 | 0.041 | 38,950 |
| Central | 260,000 | 0.82 | 240,000 | 0.024 | 5,760 |
| East | 260,000 | 0.75 | 240,000 | 0.024 | 5,500 |
| Total | 1,570,000 | 1.31 | 1,430,000 | 0.035 | 50,210 |
* (polygonal calculation – A.F. Budge (Mining) Ltd. – 1986)
This resource is not considered to be compliant with NI 43-101 standards. Additional drilling with application of proper standards and check assays would be required to verify this historical estimate. A qualified person has not done sufficient work to classify the estimate as a current mineral resource or mineral reserve. Surface Metals is not treating this historical estimate as a current mineral resource or mineral reserve.
Table 2
Selected Drill Intercepts in Resource and Target Areas
| Resource Area | Hole | Interval meters | Intercept meters | Au grade g/t | Company |
| Cimarron East | EB-91 | 0-11 | 11 | 4.46 | Echo Bay |
| Cimarron East | EB-86 | 10-40 | 30 | 2.59 | Echo Bay |
| Cimarron East | EB-30 | 39-83 | 44 | 0.9 | Echo Bay |
| Cimarron East | RCM-242 | 44-67 | 23 | 1.06 | Romarco |
| Cimarron East | RCM-27 | 43-53 | 10 | 2.4 | Romarco |
| Cimarron West | EB-23 | 45785 | 3 | 50.7 | Echo Bay |
| Cimarron West | RCM-270 | 20-50 | 30 | 1.18 | Romarco |
| Cimarron West | c-12 | 28-51 | 23 | 4.49 | Newmont |
| Cimarron West | C-28 | 0-7 | 7 | 5.31 | Newmont |
| Cimarron West | c-92 | 15-61 | 46 | 3.94 | Newmont |
| CO8 | RCM-254 | 60-69 | 9 | 4.075 | Romarco |
| North Breccia | RCM-267 | 18-27 | 9 | 1.267 | Romarco |
(Bullion River Gold Corp. Fact Sheet, 2004)
Table 1
Historic High Grade Rock Chip Samples
| Area | Gold Grade g/t | Area | Gold Grade g/t |
| Cimarron | 106.7 | North | 16.8 |
| Cimarron | 21.9 | Breccia | 29.2 |
| Cimarron | 16.3 | West Adit | 10.1 |
| Cimarron | 9.9 | West Adit | 12.0 |
| CO8 | 53.5 | West Adit | 30.2 |
| CO8 | 9.2 | CO8 | 8.9 |
(Bullion River Gold Corp. Fact Sheet, 2004)
Table 2
Selected Drill Intercepts in Resource and Target Areas
| Resource Area | Hole | Interval meters | Intercept meters | Au grade g/t | Company |
| Cimarron East | EB-91 | 0-11 | 11 | 4.46 | Echo Bay |
| Cimarron East | EB-86 | 10-40 | 30 | 2.59 | Echo Bay |
| Cimarron East | EB-30 | 39-83 | 44 | 0.9 | Echo Bay |
| Cimarron East | RCM-242 | 44-67 | 23 | 1.06 | Romarco |
| Cimarron East | RCM-27 | 43-53 | 10 | 2.4 | Romarco |
| Cimarron West | EB-23 | 45785 | 3 | 50.7 | Echo Bay |
| Cimarron West | RCM-270 | 20-50 | 30 | 1.18 | Romarco |
| Cimarron West | c-12 | 28-51 | 23 | 4.49 | Newmont |
| Cimarron West | C-28 | 0-7 | 7 | 5.31 | Newmont |
| Cimarron West | c-92 | 15-61 | 46 | 3.94 | Newmont |
| CO8 | RCM-254 | 60-69 | 9 | 4.075 | Romarco |
| North Breccia | RCM-267 | 18-27 | 9 | 1.267 | Romarco |
(Bullion River Gold Corp. Fact Sheet, 2004)
Table 3
Historic Resource Estimate*
| Zone | Metric Tonnes | Au Grade g/t | Short Tons | Au Grade o/t | Ounces |
| West | 1,050,000 | 1.40 | 950,000 | 0.041 | 38,950 |
| Central | 260,000 | 0.82 | 240,000 | 0.024 | 5,760 |
| East | 260,000 | 0.75 | 240,000 | 0.024 | 5,500 |
| Total | 1,570,000 | 1.31 | 1,430,000 | 0.035 | 50,210 |
* (polygonal calculation – A.F. Budge (Mining) Ltd. – 1986)
This resource is not considered to be compliant with NI 43-101 standards. Additional drilling with application of proper standards and check assays would be required to verify this historical estimate. A qualified person has not done sufficient work to classify the estimate as a current mineral resource or mineral reserve. Surface Metals is not treating this historical estimate as a current mineral resource or mineral reserve.
Outlook
Further evaluate the extent of mineralization beneath post-mineral cover with surface mapping and geochemical sampling. Limited testing has demonstrated the system remains open along strike and at depth.
Execute a focused drill program to test known targets, evaluating both lateral and depth extensions of the known mineralized zone.
Confirm and calculate an updated and potentially increased resource
Assess potential to expand and better define mineralization within and surrounding the project area.
REFERENCES
Brewer, N.H., 1988, Summary Report: Cimarron Project, Nye County, Nevada
Echo Bay Exploration Internal Company Report, 16 p.
Bullion River Gold Corp., Feb. 2004, Acquisition of Cimarron Mineral Exploration Project – Press Release and Information Fact Sheet.
Hahn, P.H., 1987, Cimarron, Nye County, Nevada: Review of 1986 Work and recommendations for work in 1987
A.F. Budge Internal Company Report, 10 p.
Romarco Minerals Inc, 1996, Annual Report, p. 16.
QUALIFIED PERSON
Scientific and technical information contained in this document has been reviewed and approved by Bill Feyerabend CPG, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).