The Talapoosa project is a disseminated, quartz-adularia style epithermal gold-silver deposit located 45 kilometers east of Reno, Nevada. Since 1977 eight mining companies have carried out exploration and development with 564 drill holes totaling 71,000 meters along with extensive metallurgical test work and environmental studies. A feasibility study was completed by Miramar Mining Corporation in 1996.
The Talapoosa deposit is hosted by late Tertiary volcanics, volcaniclastics, hydrothermal breccias, sediments and intrusives of dacitic to andesitic composition and is structurally controlled. The deposit is faulted by post-mineral dip slip movement along high-angle faults into the outcropping Main Zone and the down-faulted Bear Creek Zone to the south. The deposit is further subdivided into oxide and sulfide mineralization. The oxide mineralization lies near the surface in both zones while the deeper sulfide mineralization occurs at depth in the Bear Creek Zone.
The Bear Creek Zone has horizontal dimensions of +700 meters east-west by 300 meters north-south and dips approximately 30 degrees to the south. The upper portion of the Bear Creek Zone, which extends from near surface to as deep as 80 meters in the south, is dominated by widespread and intense argillic alteration associated with the narrow steeply dipping higher grade vein-breccia structures. These vein-breccia structures are up to several meters in width with grades ranging between 2 g/t and 14 g/t gold. The lower portion of the Bear Creek Zone is characterized by moderate to intense silicification and stockwork veining. Drill intercepts of up to 50 meters (true thickness) with average grades ranging between 0.9 g/t and 2.5 g/t are typical of this lower zone.
In 2010 a NI 43-101 compliant mineral resource estimate by Mine Development Associates Inc. (“MDA”) reported a measured and indicated resource of 632,000 ounces of gold and 8.2 million ounces of silver. Inferred mineral resources add an additional 326,000 ounces of gold and approximately 4.3 million ounces of silver.
Chesapeake has vended its interest in Talapoosa to Gunpoint Exploration Ltd (GUN:TSX.V) pursuant to a business transaction that closed on November 29, 2010. Chesapeake owns 32,017,899 common shares of Gunpoint, representing 81.9% of the issued and outstanding shares of Gunpoint.
Gunpoint will drill Talapoosa this year to expand the NI 43-101 resource as previous step-out holes identified ore-grade gold values adjacent to and along strike. The known resource is based mostly on vertical holes drilled to a depth of only 200 meters. Several holes will also test the potential of high grade vein mineralization below the existing resource. Recent ground geophysics, mapping, and sampling north of the deposit has also recognized a 5 kilometer parallel structure (Appaloosa Structure) with outcropping hydrothermal breccias containing epithermal vein fragments similar to Talapoosa. The 2011 drill program will test this significant system as well.
Steven Ristorcelli, C.P.G. and Michael Lindholm, P.G., of MDA are the Qualified Persons (as defined in National Instrument 43-101) responsible for the mineral resource estimate.
