Location and Size

The Barren Hills project spans 21 km² (5154 acres) in Lyon County, Nevada, and is located about 16 km (10 miles) south of Yerington and 100 km (62 miles) southeast of Reno.

Exploration Activities

Previous exploration of the area was conducted by Chevron Oil Company during the late 1970s and early 1980s. Chevron drilled 44 thermal gradient holes between 150 and 600 meters (500 to 2000 feet) and conducted various geological and geophysical studies.

SGP has conducted exploration in the area, including gravity geophysical surveys, geological mapping, geochemical studies and permitting surveys. Proposed exploration and development at the Barren Hills site includes temperature gradient drilling, magnetic and magnetotelluric geophysical surveys, geological and geochemical surveys, full size production assessment wells and transmission interconnection studies. SGP has completed a gravity geophysical survey on the property and is in the environmental assessment and permitting phase.

In November 2009, SGP completed an airborne Z-tipper Electromagnetic (ZTEM) survey covering 100 square kilometers at the Barren Hills project. This survey is providing information on the subsurface resistivity variations which is useful for planning additional surveys and drilling targets. The permitting process continues to move forward at Barren Hills. SGP anticipates the receipt of the major project permit, the Environmental Assessment (EA) for Barren Hills, in Q2 2010.

 

Resource Estimate

In 2007, GeothermEx was commissioned by SGP to conduct a geothermal resource assessment and provide an independent technical report on the Barren Hills project. Results of the assessment estimate the project to have a 90% probability (confidence level) of generating at least 46 MW, and a 50% probability that the reserve can support a plant of 99 MW. A 46 MW geothermal power plant can provide enough power for 36,800 homes.

Production

The Barren Hills project is targeted for production in 2014-2015.