North Peak Resources Ltd. launched its drilling campaign this week at its Prospect Mountain property in Eureka, Nevada following completion of planned geophysical surveys and geochemical sampling programs and the receipt of necessary approvals. These surveys and sampling programs were undertaken over the summer months to define both surface and underground drilling targets across the potential CRD (Gold, Silver, Lead and Zinc) and Carlin (Gold and Silver) style mineralization Prospect Mountain might host beneath its extensive system of shafts and mine workings. This first Phase of Drilling will consist of approximately 6600 feet (2012m) starting from the Diamond mine portal and targeting multiple intersections of the roughly 2-km long conductive anomaly, located directly beneath the old oxide gold, silver, lead and zinc historical stopes of the Diamond mine, that was located by the helicopter magnetotelluric (MT) survey carried out in June.

A comprehensive gravity survey and drone based magnetic survey followed in July and August and the results of these two surveys were used to help develop the exploration model and drill targets. A limited Induced Polarisation (IP) survey carried out in September yielded a very strong chargeability IP anomaly that overlaps and extends upwards from the MT anomaly into the old workings area gives strong support to the MT anomaly. Magnetotellurics is a passive electromagnetic system designed to measure resistivity/conductivity of the Earth and is especially useful for penetrating to deeper levels than comparable geophysical methods.

The aim of the survey was to look for conductors beneath the water table that potentially represent the sulphide equivalents of the Prospect Mountain oxide mineralization. The 220-line km survey was conducted by Expert Geophysics Limited and flown at 100m line spacing using their Mobile MT system. The rocks surrounding the old oxide workings within the Hamburg and Eldorado Dolomites are highly resistive with no conductivity.

Directly beneath the deepest part of the Property workings, at the level of the projected water table is a discrete > 2km long conductive body that plunges to the southeast. The strongest part of the anomaly sits directly beneath the bodies of historical workings on the Property, around the Shaft 1 area. While factors other than sulphides, such as graphitic shales and saline ground water, can cause conductivity, the groundwater tested on the Property is not known to be saline and there are no graphitic shales projected to be in the area beneath the historical mines on the Property.

This increases the likelihood that the conductive anomaly is caused by sulphides and it is of a different character to the large formational anomalies highlighted by the survey to the west of the Sharp/Cave Canyon fault that are more likely to be related to lithology. The very strong IP chargeability anomaly overlaps the MT anomaly and extends to the depth limits of the IP survey indicating both anomalies are caused by the same source giving added weight to the interpretation.