| Goldmark, through it’s Ecuadorian subsidiary Goldminerals Ecuador, (Goldminerals) has acquired the 1745 hectare Abigail mining concession in Ecuador. All documents respecting the concession are in good standing with the Ecuadorian ministry of mining and the property is free and clear of all encumbrances. The transfer registration should be completed by February, 2007,and the company has current access to the property for exploration purposes. The cost of the concession is $45,000 US for the first two year term. Should the company wish, it can extend the term for the full 30 years by payment of a further $200,000 US and a 1.5% Net Smelter Royalty on production. The structure of the transaction allows Goldmark an opportunity to fully assess the concession before making a large financial commitment to its purchase.
The Abigail concession lies in the south east portion of Ecuador close to the Peruvian border in the eastern slopes of the Andes (see location map, page 4) between the cities of Cuenca and Loja. Both cities have well developed infrastructure with regular flights from Quito and Guayaquil. The distance to each city is 60 km. The property is divided by the provincial boundary between Azuay in the west and Zamora-Chinchipe in the east.
The company has hired Dayanara Mariela Hinojosa Espinoza, a local Ecuadorian geologist, as General Manager of its Ecuadorian subsidiary .In addition to her geological training and familiarity with local geology and business, she brings management and operational skill to the company.
A national instrument 43-101F1 technical Report on the Abigail Property was prepared by Jurgen Kraus in December 2006.
The company is conducting exploration on the property in the first and second quarter of 2007 and has over 400 soil samples that have been submitted for assay analysis with ALS Chemex of Vancouver BC.
| An overview to some of Goldmark’s properties |
Aleman 1: In early 2007 The Company acquired the 1128 hectare concession adjacent to Abigail. This property is a 100% owned by the company. It shares the same mineralization as Abigail.
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Geomorphologically, the Abigail property is located on an open high plateau (altiplano) with rolling hills at 3,040 to 3,330 m elevation. The plateau is dissected by northerly draining rivers. The vegetation consists of shrubs, small trees, and grassland. The climate is moderate with high precipitation between November and April.
Geologically, the Abigail property is located on the western flank of the Cordillera Real, a north-northeast-trending mountain range east of the Central Andean graben. The Cordillera Real forms the culmination of a continental magmatic arc, i.e. pre-Cretaceous metamorphic rocks intruded by S- and I-type granitoids and topped by calc-alkaline volcanic sequences.
Exposure of country rock is poor. In the low areas, granite is exposed. The top of the plateau appears to be occupied by porphyritic rhyolite of the Saraguro Group. The felsic composition of the rocks is manifested by the vegetation.
Quartz veins, spatially associated with rhyolite and believed to be of epithermal origin, form prominent northwest- and northeast-trending ridges several tens of metres long and several metres wide. The ridges contain ubiquitous outcrops of quartz, up to 1.5 by 15 m in size. The quartz is vuggy and zoned.
The deposit type investigated is epithermal (high-sulphidation). Epithermal deposits are considered common in the continental Andean terranes, particularly in the local Saraguro Group, and in locations related to north-northeast-trending fault systems, all of which apply to the Abigail property.
The Abigail property has all components of an epithermal system: a granite engine at base, and a rhyolite lithocap and fracture-related quartz veins on the top. Colluvial and vein quartz is generally vuggy, which is a typical but no determining characteristic.
The company’s 43-101 report hypothesizes that the ubiquitous quartz veins are gold bearing. The hypothesis is based on, firstly, the observation of visible, free gold in both a hand specimen of zoned epithermal, colluvial quartz and in a gold pan, at a gold milling operation 260 m north of the property. The operation is topographically below the Abigail property so that the gold is derived from the latter. Secondly, gold has been reportedly found by Cochapata locals on the Abigail property in a river that originates on the property. Hence the gold originated on the property, too. Thirdly, quartz, as observed on the Abigail property, is ubiquitous as veins and colluvium along the way to the El Mozo property 5.5 km to the north.
14 random grab samples were taken in the northwestern Abigail property. They were sent to the ALS Chemex laboratory in Quito, Ecuador, on 4 December 2006, in order to be analyzed for gold and 21 additional elements.
The 1,776 ha El Mozo epithermal-gold property is located ca. 5.5 km north of the Abigail property in a similar geological setting. According to a filed report prepared in compliance with NI 43-101 by Champigny (2005), the El Mozo property contains inferred resources (as of 10 June 2004) estimated at 3.5 million tonnes at an average grade of 2.3 g/t gold, i.e. 256,000 ounces of inferred resources of contained metal gold. The applied cut-off grade is 0.5 g/t. The gold mineralization is believed to be associated with high-level acetate sulphide systems. It is contained in vuggy, fracture-controlled quartz hosted in leached, intermediate volcaniclastic rocks above a shallow quartz porphyry/dacite intrusion.
According to Champigny (2005), El Mozo hosts a 500 m thick sequence of Tertiary intermediate volcaniclastic rocks on top of Triassic schists, which was subsequently intruded by a dome of quartz porphyry and dacite. A characteristic sequence of alteration zones is developed around the quartz.
On the Abigail property, the spatial association of granite at the bottom and rhyolite and quartz veins in the roof could constitute a complete epithermal system, with the granite as the driving hydrothermal engine and the porous rhyolite as the host for the gold-bearing quartz veins. A genetic association between granite and rhyolite needs to be established.
Gerhard Jacob, former President along with Jurgen Kraus, Ph. D., a consulting geologist and Dayanara Hinjosa, a local geologist, visited the Abigail property in November of 2006. After 20 days of work and discussions with local management and other resources, and considering the protracted small-scale gold mining in and around the Abigail property, the zoned and vuggy nature of the quartz veins as indicators for their epithermal origin, and the proximity of the El Mozo discovery, the company feels it is worthwhile to perform an extensive two to three year exploration program on the concession.
The company feels it is worthwhile to perform an extensive two to three year exploration program on the concession.
Alaska: Goldmark will continue to maintain a 10% production royalty in the Alaskan Walker Fork property .after deposing of all of its Alaska Properties as a result of the changes in business focus and management during 2006.
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