Alternative Earth Resources Inc.

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Alternative Earth Resources Inc. has a geothermal leasehold covering approximately 10 square miles (26 square km) located southeast of Black Warrior Peak in Washoe and Churchill Counties, Nevada. There are two potential interconnection paths to NV Energy sub-stations proximal to the project.

At the North Valley Project, potential for the confirmation of a geothermal reservoir suitable for electric power generation is indicated by a defined thermal anomaly of significant size, geology and regional fault structures permissive of deep fluid circulation and heating within an area of thin crust and high heat flux. Slim-hole drilling has confirmed a temperature of 262°F (128°C) at 1810 feet (552 m) depth. Reservoir fluids at this temperature and depth would be considered commercial for binary cycle generation.

Alternative Earth has assembled resource data from previous exploration programs, conducted resistivity and gravity surveys over wide areas, and drilled a 1460ft (445m) temperature gradient hole to confirm earlier reported gradients. A very large (15 square mile; 38 square km) very high grade (200°C/100Km; 11°F/100Ft) thermal anomaly is indicated in 20 drill holes from a past exploration program. Two 3000ft slim holes located in the central part of the thermal anomaly are planned to determine the source or cause of the anomaly and to quantify the geothermal resource.

The inferred resource at North Valley is 55-126MWe based on a report done by GeothermEx Inc. for the California Energy Commission (2004).  

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