Property Geology

Zinc mineralization at Crypto consists of coarse-grained sphalerite in a number of magnetite skarns and replacement deposits in a shallow dipping sequence of Cambrian to Ordovician carbonates where they have been cut by a high level quartz monzonite/rhyolite intrusive of Late Eocene age. Zones of copper enrichment with values ranging from 0.2-2% are found between the main bodies of zinc mineralization and the intrusive. Marbleization of the surrounding carbonate rocks is extensive. Mineralization is generally oxidized to a depth of about 250 metres, sphalerite having been converted to zincite, smithsonite, hemimorphite and hydrozincite.

At deeper levels, several significant intervals of molybdenite mineralization have been intersected in drilling and molybdenite is commonly found along fractures and shears in other holes, suggesting interesting potential for a buried porphyry molybdenum deposit related to the intrusive system. In fact, the general distribution of mineralization on the Crypto property shows zoning similar to that in typical porphyry systems, with an inner zone of molybdenum-rich mineralization grading outwards to zinc, then lead and silver with increasing distance from the intrusive.

A deep, 3 metre wide interval in a drillhole about 600 metres to the east of the main zone graded 3.5% Cu, 7.65% Zn, 0.10% Mo and 21.8 gpt Ag, suggesting a strong possibility that either known mineralization is much more extensive than previously thought or that other and separate zinc ± copper ± silver-rich CRD zones are present on the property.

Numerous workings of the historic Fish Springs District are developed on high grade silver-lead replacement deposits controlled by structures east of the known zinc deposit. The single largest mine was the Utah Mine, which produced about 11,800 tonnes at an average grade of about 4,400 grams silver per tonne (128 oz/ton) and 44% lead. The district total is recorded at about 18,420 tonnes at a similar grade. . Utah International reported significant potential for additional silver-rich mineralization at depth in the Utah Mine based on their underground mapping and sampling in the 1970's and 1980's. They subsequently drilled a single hole over 200 metres below the known extent of workings which cut a 2.9 metre interval grading 6.8% lead, 3.8% zinc and 167.1 grams per tonne of silver.