AuEx Ventures Inc. - Olympic

Context Methodology Property Summary Current Drilling Argentina Spain Nevada

Olympic

Status: Available for joint venture.

Target: The Olympic property contains numerous exposures of low sulfidation epithermal alteration and gold mineralization over a several square kilometer area. Mineralization is associated with Walker Lane related northwest striking faults hosted within Tertiary volcanics and is directly within the Rawhide-Tonopah trend. Both vein and bulk tonnage type targets are present on the property.

Location: The Olympic Project lies at the northern end of the Cedar Mountains in eastern Mineral County, Nevada about 40 miles east-northeast of Hawthorne and 18 miles southwest of Gabbs. The property lies in portions of T8 and 9N, R37E about 10 miles south of the former Paradise Peak mine operated by FMC Gold.

Ownership: AuEx controls 114 unpatented mining claims which are leased from a local Nevada geologist subject to annual payments, a 3% NSR royalty and a small work committment.

History: Quartz vein material is believed to have been first discovered at Olympic in about 1915. Production commenced in 1917 and continued until 1921 utilizing an onsite mill. Small scale production from leasers occurred from 1921 through 1942 when gold mining was suspended during WW II. The Olympic mine is reported to have produced about 40,000 ounces of gold from a west dipping, 2 to7 foot thick epithermal vein averaging about 0.88 opt during the period from 1917 to 1921. Renewed interest in the district began in 1965 and since then a number of companies including FMC Gold and Pittston Nevada Gold have conducted exploration in various areas with a total of about 71 holes being drilled over a several square mile area.

Geology: The oldest known rocks in the district are Triassic carbonates of the Luning formation which have been locally intruded by Cretaceous quartz monzonite. These are in turn overlain by Oligocene and younger (26 -28 Ma) volcanics consisting of ignimbrites, tuffs, flows and plugs of rhyolitic to andesitic composition believed to be related to and largely within a large caldera whose south rim is exposed on the southern portion of the property. Some late basaltic flows are also present. All of these rocks and the caldera have been broken by multiple northwest trending strike-slip faults related to Walker Lane deformation. Associated listric faults have developed as well and are host to mineralization. The volcanics contain extensive clay alteration and are locally pyritized and silicified. Known mineralized zones consist of epithermal veins and disseminations within the volcanics. The largest known occurence is the Olympic mine which is reported to have produced about 40,000 ounces of gold and has about 3,000 feet of underground workings. The average vein width mined is reported to be about 4 feet averaging 0.88 opt gold. Ten to fifteen feet of additional lower grade disseminated gold mineralization is reported to be present in both the hangingwall and footwall rocks. At least four areas in addition to the Olympic mine contain good gold values at surface. Only one of these has been drilled but the holes are considered to have been too shallow to test the target. Importantly, the Olympic mine itself is largely unexplored.