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Gold Ridge Property – Dos Cabezas, Arizona

Past-producing gold deposit with good potential for additional gold mineralization in important historical district. Excellent access and infrastructure in place.

SUMMARY HIGHLIGHTS

  • Located near Willcox, Arizona, 85 miles east of Tucson, in established region of historical and current mining
  • Mineralized quartz veins in thick stockwork zones within large regional shear zone
  • Open to depth and laterally
  • Past producer: 22,000 ounces of gold historically produced from small underground mines (Phelps Dodge, Queenstake Resources USA Inc., Western States Minerals Corp.)
  • Further exploration work warranted to define lateral and vertical continuity of the veins and the quality of the mineralization

OVERVIEW

The Gold Ridge project area covers a total of 2,342 acres of patented and unpatented mining claims in southeastern Arizona, USA. It hosts significant potential for new gold discoveries in steeply dipping, quartz-sulfide veins. These veins have historically produced approximately 22,000 ounces of gold at grades approaching 0.4 ounces per ton from small tonnage underground mines (Phelps Dodge, Queenstake Resources USA Inc., Western States Minerals Corp.). Sinuous, braided veins are found on the surface over a strike length of at least 6,000 feet, projecting downward to the historic mines of the Gold Ridge project. Known length and vertical continuity of the vein and the extent of historical mining suggest excellent potential to discover new gold deposits comparable in size to, or larger than, the historic production from the property.

The exploration potential, land tenure, environmental and permitting conditions at Gold Ridge are favorable, and the property has good potential to host a high-grade underground mining operation.

GEOLOGY AND STRUCTURE

The high-grade, gold-bearing vein system at the Gold Prince mine is part of a 3 mile long vein swarm which includes both barren and mineralized veins. The area is thought to be part of a large, late Cretaceous-early Tertiary plutonic-volcanic center constructed on earlier metavolcanic and metasedimentary rocks. The Apache Pass Fault, a regional vertical shear zone traced along a west-northwesterly trend for more than 20 miles, is the dominant structural feature of the Gold Ridge project area and is an important control for the mineralized veins of the district.

HISTORICAL PRODUCTION

Mining commenced in the Dos Cabezas district prior to 1862 with intermittent production until 1950 on both gold-quartz veins and contact metamorphic copper deposits. Total district production during this period was about 10,000 ounces of gold (plus silver, copper, lead and zinc production), with most gold production coming from the Gold Prince, Gold Ridge and Dives mines in the early 1930's. Since 1932, more than 22,000 ounces of gold have been produced from the property.

The project area contains three underground mines with a total drift length of 5,862 feet. The Gold Prince mine has five developed levels and was operated by Phelps Dodge between 1984 and 1986, during which time 14,238 tons were shipped to smelters with an average grade of 0.313 ounces per ton and used for flux.

Queenstake Resources U.S.A., Inc. leased the property between October 1986 and September 1992. They drilled additional core holes, developed additional mine openings and undertook minor production. Western States Minerals Corp. also undertook limited production in the subsequent years from 1993-1996.

DRILLING

435 historical underground and surface drillholes totaling 27,774 feet (8,466 meters) have been drilled on the property by prior operators. Most drilling was shallow, following surface outcrops.

Golden Fame drilled a short test program of 11 surface diamond drill holes in December 2009 and January 2010; however, further drilling is warranted to determine the extent of the vein system to depth and along strike.

HISTORICAL RESOURCE ESTIMATE

Historical resource estimates were calculated by Queenstake Resources USA Inc. in 1986. Details of these estimates are given in the Company’s technical report on the property, dated 31 July 2010, together with the usual cautionary language regarding the reliability of such estimates.

FURTHER WORK

Considerable potential exists on the project to discover new, potentially mineable mineralization, both below the current 6-Level of the Gold Prince mine and along strike of the deposit. Gold-bearing veins are exposed on the roof and floor of the 6-Level, the lowest level developed and mined, indicating that mineralization continues to depth. Limited underground and surface mapping confirms the vein is laterally extensive across the width of the property and anomalous to strongly gold-bearing in several places.

Further surface and underground drilling is warranted to test the down-vein projection and lateral extent of the high-grade mineralization in the Gold Prince Mine.

Lawrence A. Dick, PhD, PGeo is the Qualified Person, as defined by National Instrument 43-101, who is responsible for the technical information on this website.

Dr. Dick is a Director of Golden Fame Resources Corp. and is a professional geologist with over 35 years of experience in the mineral exploration industry.

Technical information on the Gold Ridge project is extracted from the NI 43-101 technical report entitled ‘NI 43-101 Technical Report, Gold Ridge Project’, written by Robert Perry and dated 31 July, 2010.