Gold Basin Exploration, Inc. was formed in March 1994 as a private corporation primarily to engage in the exploration and development of gold and silver claims on the "Paymaster Project" in Nevada. The Paymaster Project is a group of mining claims within a large basin, approximately 10,300 acres in size, in Esmeralda County, Nevada. On February 23, 1996, Gold Basin was acquired by Amalgamated as a wholly-owned subsidiary in a share exchange.

The "Paymaster Project" in Esmeralda County, Nevada is home to gold and silver claims, among others. Amalgamated plans to conduct a 10-hole drilling exploration program for precious metals and lithium which the Company believes accumulated in the bottom of the basin more than twenty million years ago when volcanic vents from Goldfield to Tonopah erupted. Such volcanic eruptions have yielded some of North America's largest gold and silver deposits. Some fifteen or more of these deposits have reserves in excess of 500,000 contained troy ounces of gold and range up to 20.2 million contained ounces.

View a LANDSAT MAP of the Gold Basin Claim Area (79K JPG).

View an idealized cross-section MAP of the Gold Basin Claim Area (62K JPG).

The Company has structured its underlying operations to maximize participation by financial and industry partners alike. Operations in the Cave Gulch and Boone Dome Fields are conducted through limited liability companies which allow actual participation by way of membership units which provide for a pro-rata share in working interest proceeds from the production and sale of oil and gas. Limited liability companies are tax-advantaged in that the active income received is taxed as though a partnership at the tax bracket of the particular member (no double taxation), losses can be deducted against other active income, and yet, a member's liability is limited to that of their actual contribution.

The Cave Gulch Field. In August 1994, Christian "Ted" F. Murer, now President and C.E.O. of Amalgamated, teamed with joint venture partner Barrett Resources and drilled the Cave Gulch Federal Unit #l natural gas well in Natrona County, Wyoming. As of May 22, 1995, 246 feet of 481 feet of pay was open to production at 10.2 million cubic feet of gas per day ("MMCF"). The well was selected for the "Best Of The Rockies" award for 1994 by Hart's Oil And Gas World Magazine. The award was judged by members of the Independent Petroleum Association for a superior well that set a trend for oil and gas companies to follow. To date, 10 wells have been drilled in the Cave Gulch field. Five of the wells are producing approximately 54 MMCF per day ($50,000 per day). Two wells are being tested and three are awaiting completion by Barrett Resources. The # 8 development well on Cave Gulch field tested a useful flow of 20.3 MMCF.

Amalgamated is currently raising capital for drilling additional wells on the Cave Gulch field where it holds a 760 acre lease, and nearby Boone Dome field for which it holds several leases totaling 1,800 acres.

The Boone Dome Project. Along the northeastern margin of the Wind River Basin in Wyoming, the older rocks of the Casper Arch have thrust out over the younger sedimentary rocks in the basin. The Cave Gulch Unit now being developed by Barrett Resources Corp. is a 440 acre block in Township 37 North, Range 86 West. The Boone Dome project area is some 12 miles southeast in Township 35 North, Range 85 West. At present, Amalgamated has approximately 1,800 acres on the Boone Dome project area and is competing for additional acreage with other operators such as Barrett Resources, Prima Energy, and Texaco. The Company believes the potential for development of significant oil and gas reserves at depth in the Boone Dome project area is very promising, especially in light of the fact that the Company will be able to evaluate the geologic reports and results of Barrett Resources' recent 3D Seismic shoot covering Amalgamated's leasehold position.

View a MAP of the Cave Gulch Area (26K GIF).