Northern Abitibi has an option to purchase 100% of the Cold Springs property in Nevada subject to staged annual payments over four years and a 4.0% Net Smelter Royalty, 2% of which is purchasable at Northern Abitibi's election for $1,500,000 US. Cold Springs contains an epithermal gold-silver prospect that has similarities to high-grade deposits such as Midas, Nevada (>5,000,000 ounces of gold) and Sleeper, Nevada (>2,000,000 ounces gold).

 
     
   
     
 
   

The property is located 170 kilometers east of Reno in Churchill County Nevada. The project area is 2 kilometers east of highway 50, and is easily accessed by gravel roads. The terrain consists of flat grass covered pediment adjacent to a rolling grass covered range front. The property consists of 30 unpatented mining claims covering an area of 250.8 hectares (619.8 acres).

Location of the Cold Springs Project    
Photo of the Cold Springs property looking east, taken from highway 50. The hill in the center contains abundant outcropping quartz veins.
 
 
     
   
     
 

The earliest recorded exploration at Cold Springs occurred around 1860 when several shallow shafts and adits were constructed and a small amount of gold-silver ore was extracted. Starting the in 1980's a total of 42 holes were drilled in the district by three different companies. All of the historic drilling was focused on the shallow parts of the exposed quartz vein system with 24 of the holes drilled to depths of 17 meters or less. Highlights of the past drilling including 0.808 grams per tonne (g/t) gold over 3 meters, 3.86 g/t gold over 3 meters, and 0.62 g/t gold and 24.88 g/t Ag over 18.3 meters.

 
     
   
     
  The Cold Springs project sits along a range front fault with a thick rhyolite crystal-lithic tuff unit exposed east of the range front and alluvial cover to the west.  
     
 
   

A zone of silicification and quartz veining occurs within an area 650 meters long by up to 100 meters wide. The zone trends northwest and is open along strike, projecting under alluvial cover at both ends. Within this zone individual quartz veins are up to 8 meters wide, averaging 1 to 3 meters wide, with numerous sub parallel veins present. The larger quartz veins are surrounded by a halo of smaller stockwork quartz veining that is up to 80 meters wide. Quartz veins are composed of fine-grained sugary quartz and chalcedony with colloform and crustiform banding and bladed textures.

Simplified geology of the Cold Springs project    
 
     
 

Northern Abitibi has taken 27 grab, composite grab, and discontinuous chip samples of quartz vein material. Gold values range from 0.1 g/t to 69.4 g/t (2.0 ounces per ton (OPT)), averaging 7.0 g/t (0.2 OPT). Silver values range from 2.6 to 1280 g/t (37.3 OPT), averaging 254 g/t (7.4 OPT). Gold and silver results for each sample are shown on the map below. The results demonstrate the quartz veins are variably mineralized with both high-grade sections as well as low-grade sections. Representative grades over the true widths of the quartz veins have not been determined due to sampling difficulties and incomplete exposure.

 
     
   
  Location of quartz vein samples showing gold and silver values  
     
 
 

High-grade vein samples. A banded quartz and chalcedony vein with thin gray sulfide rich bands (left) and a sugary quartz vein with a single thin gray sulfide rich band and bladed textures (right).

Simplified geology of the Cold Springs project    
A low-level arsenic in soil anomaly occurs over an area 570 meters long by 190 to 370 meters wide and is open to the northwest. The arsenic anomaly is stronger and wider to the northwest, suggesting the system strengthens in this direction. This trend is consistent with gold-silver results from quartz veins.
 
    Arsenic in soil anomalies
 
     
 

Five lines of Controlled Source Audio Magneto Tellurics (CSAMT) surface geophysical surveying have been completed over the property to help define the geometry of alteration zones, locate faults, and identify deep drill targets. Line 2 of the geophysical survey is shown below (see the Simplified Geology Map above for the line location).

 
     
   
  Result of CSAMT geophysical survey Line 2  
     
 

The anomalously high resistivity response along the top of the hill corresponds with the zone of outcropping quartz veins and is interpreted to represent silicification. Below this 'silica cap' are 3 subvertical zones of resistive response adjacent to more conductive response labeled 1, 2, and 3 on Line 2. Response 1 coincides with the range front fault. Response 2 directly underlies the silica cap, has a large resistivity contrast, and extends several hundred meters below surface. Response 2 is interpreted to represent a deep structural control or feeder zone to the silica cap, and is an excellent target for high-grade mineralization at depth. Response 3 is subparalled to 2 and possibly joins with it at depth. It is also an excellent target for high-grade mineralization.

 
     
   
     
  Several high priority drill targets have been identified underlying the silica cap at Cold Springs. In January 2007, an initial 1200 meter reverse circulation or combined reverse circulation and core drill program to test the targets at depths between 50 and 300 meters below surface was completed.  
     
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