Why Nevada?

Starting in 1859 with the Comstock Lode and running through 2010, the latest year for complete records, the state of Nevada has produced approximately 191 million ounces of gold. This represents 3.6% of total world production during this time period. 87% of this total has been produced since the original Carlin Mine owned by Newmont Mining began production in 1965. Nevada truly is “elephant country” when it comes to major gold deposits. In 2010, gold production in the state came from approximately 20 major operations. The news in 2010, 2011 and early 2012 continued to be encouraging from the standpoint of a long-term sustainable gold mining industry. During the first quarter of 2010, Barrick’s Cortez Hills Mine commenced operation. This operation is located in the Cortez Trend, and the pre-production reserve plus resource totalled greater than 11 million ounces of gold. Carlin Gold’s Cortez Summit property is located 4 miles east of Cortez Hills, and its JDS property occurs 18 miles to the southeast. In September 2011, Barrick announced two new gold discoveries on the Cortez Trend, Red Hill and Goldrush, which demonstrate the continuing excellent growth potential in this area. At year- end 2011, Barrick reported a 7.0 million ounce gold resource at the combined Red Hill-Goldrush discovery. The discovery area approaches to within 1 mile of Carlin’s Cortez Summit property. The Cortez Area is the focus of a $64 million Barrick exploration program in 2012. The other exciting recent development is the Newmont Mining’s acquisition of Fronteer Gold Inc. in a deal valued at $2.3 billion. The acquisition includes the new Long Canyon deposit, which is reported to contain measured, indicated and inferred gold resources totalling 2.2 million ounces (Fronteer Gold news release January 12, 2011). The deposit is located in a “new” exploration terrain 100 miles east of the Carlin trend of gold deposits. Carlin Gold’s Willow property is located in this new prospective region, approximately 50 miles northwest of Long Canyon.