Corcoran Canyon

Location

The Corcoran Canyon Project is in Nye County, Nevada, 80 km north of Tonopah.

Property and Agreements

7 un-patented mining Claims are owned 100% by Corcoran Canyon Mining Corp., a wholly owned subsidiary of Shasta Gold Corp.

Regional Geology

The project is within a regional north-trending mineralized belt that includes the volcanic-hosted and sediment-hosted gold-silver deposits of Goldfield, Tonopah, Midway, Manhattan, Round Mountain, Gold Hill, and Northumberland.

Local Geology

The project area is underlain by a Middle Tertiary (22-26Ma) caldera complex consisting of felsic ash-flow tuffs, tuffaceous sediments, and intrusions. The property lies along the margin of one of several nested calderas, one of which hosts the Round Mountain deposit. Widespread alteration and mineralization coincides with a district-scale, northeast-trending structural zone coinciding with a caldera margin.

Mineralization and Resources

Corcoran Canyon is a volcanic-hosted, low-sulfidation, silver-gold, and epithermal system extending for more than 5.5 km along a northeast-trending structural zone defined by alteration, veining, gold-silver mineralization, faulting, and intrusions. Mineralization occurs in quartz-vein stockworks and breccias within sericitized, argillized and silicified volcanic rocks. Strongly sericitized, alkali rhyolite stocks with quartz veinlets,containing gold/silver mineralization are the likely source of economic mineralization.

The property contains a significant Ag-Au resource named the Silver Reef deposit, defined by drilling in the 1980’s. An indicated and inferred resource calculated in 1988 using 50-foot cross sections is: 1.61 million metric tons grading 175 g/t Ag(silver) 0.86 g/t Au ,or (3.086 g/t Aueq),(nine million oz. silver and 44,000 oz. of gold.)

Examples of significant drilled Ag-Au intersections in the resource area include 79.2 meters grading 8.2 opt Ag and 0.008 opt Au and 20.4 meters grading 1.20 opt Ag and 0.068 opt Au.

Previous Work

Between 1970 and 1990, approximately 100 holes were drilled within the currant Ag-Au resource. Drill testing has been shallow, with only 8 holes known to be deeper than 800 feet (240m).

Recent Work

Fieldwork by Corcoran Canyon Mining Corp. in 2004 resulted in the recognition that the project contains mineralization with variable Ag:Au ratios. Recent rock-chip sampling has confirmed the presence of gold mineralization with a low Ag:Au ratio peripheral to the known Ag-Au resource.

A 3-dimensional drill model of the resource was completed in 2004, and it was recognized that gold-silver mineralization remains open along strike and at depth.

Opportunities

There is potential to significantly expand the known resource. Further, there is potential for mineralization to occur under post-mineral pediment cover (valley fill) east of the range front. The exposed mineral system extends to the range front, where Au-Ag mineralization and alteration occur. This site also coincides with a prominent sharp bend in the regional trends of the range-front fault system along the east side of the Toquima Range. Important Tertiary Au-Ag deposits in the Great Basin and surrounding area occur at flexure points along range-front fault systems (e.g., Round Mountain, Gold Hill, and Midway).