Recent drilling activities at the earth power resources Tuscarora geothermal power project's hot sulphur springs lease area.

Earth Power Resources, Inc. recently completed a combined rotary/core hole to a depth of 3,813 feet at it's Hot Sulphur Springs Tuscarora Geothermal Power Project Lease Area located 70-miles north of Elko, Nevada. Previous geothermal exploration data were combined with geologic mapping and newly acquired seismic-reflection data to identify a northerly tending horst-graben structure approximately 2,000 feet wide by at least 6,000 feet long with up to 1,700 feet of vertical offset. The well (HSS-2) was successfully drilled through a shallow thick sequence of altered Tertiary Volcanic where previous exploration wells had severe hole-caving problems. The ''tight-hole'' drilling problems were reduced using drilling fluids consisting of Polymer-based mud mixed with 2% Potassium Chloride (KCl) to reduce Smectite-type clay swelling problems. Core from the 330 F fractured geothermal reservoir system at depths of 2,950 feet indicated 30% Smectite type clays existed in a fault-gouge zone where total loss of circulation occurred during coring. Smectite-type clays are not typically expected at temperatures above 300 F. The fracture zone at 2,950 feet exhibited a skin-damage during injection testing suggesting that the drilling fluids may have caused clay swelling and subsequent geothermal reservoir formation damage. The recent well drilling experiences indicate that drilling problems in the shallow clays at Hot Sulphur Springs can be reduced. In addition, average penetration rates through the caprock system can be on the order of 25 to 35 feet per hour. This information has greatly reduced the original estimated well costs that were based on previous exploration drilling efforts. Successful production formation drilling will depend on finding drilling fluids that will not cause formation damage in the Smectite-rich fractured geothermal reservoir system. Information obtained at Hot Sulphur Springs may apply to other geothermal systems developed in volcanic settings