Best of the Week
Most Popular
1.Crude Oil Price Trend Forecast 2016 Update - Nadeem_Walayat
2.Will Deutsche Bank Crash The Global Stock Market? - Clif_Droke
3.Gold Price In Excess Of $8000 While US Dollar Collapses - Hubert_Moolman
4.BrExit UK Economic Collapse Evaporates, GDP Forecasts for 2016 and 2017 - Nadeem_Walayat
5.Gold Stocks Massive Price Correction - Zeal_LLC
6.Stock Market Predicts Donald Trump Victory - Austin_Galt
7.Next Financial Crisis Will be Far Worse than 2008/09 - Chris_Vermeulen
8.The Gold To Housing Ratio As A Valuation Indicator - Dan_Amerman
9.GDXJ Gold Stocks - A Diamond in the Rough - Rambus_Chartology
10.Gold Boom! End Game Nears As Central Banks Buying Up Gold Mining Companies! - Jeff_Berwick
Last 7 days
Silver Way Undervalued - 30th Sept 16
Why Krugman, Roubini, Rogoff And Buffett Dislike Gold - 30th Sept 16
After the Debate, the Deluge? - 30th Sept 16
Has Dow Theory Lost its Relevance: Stock Market Ignored it and Rallied to New Highs - 30th Sept 16
Donald Trump Failing to Recover After 1st Debate Hillary Shimmy Loss - Betfair Betting Market - 30th Sept 16
BEA Revises Q2 2016 US GDP Growth Upward to 1.42% - 29th Sept 16
Could the OPEC deal set stage for the Next Stock Market Risk Rally? - 29th Sept 16
Why Trump Lost, Hillary Won the 1st U.S. Presidential Debate - 29th Sept 16
Is a Dollar Crash Imminent After the Senate Overrides Obama Veto on Saudi 9/11 Bill? - 29th Sept 16
2017: Gold and Silver's Year of "Public Recognition" - 29th Sept 16
Did Trump Win the 1st US Presidential Election Debate? - There's Something Happening Here... - 29th Sept 16
FED Goes from ZIRP to NIRP! - 29th Sept 16 - Chris_Vermeulen
Here’s Why You Should Be in Cash Right Now - 28th Sept 16
The Fed Put a 50% Tax on Your Retirement Plan - 28th Sept 16
Massive Chinese Debt And Why They Are On A Gold Buying Binge! - 28th Sept 16
Stocks Commodities and FX Markets Waiting Technically While Fundamental Data Neutral Poised - 28th Sept 16
This Commodity Has Perked Up its Investors' Portfolios - 27th Sept 16
Charting the Continuing Gold Market Correction - 27th Sept 16
Stock Market Crash and Recession Indicator Warning: Extreme Danger Ahead - 27th Sept 16
Financial Markets and FX Setups 27th Sept - 27th Sept 16
Crude Oil, Forex and Stock Market Trend Forecasts - 27th Sept 16
Why There is Trump - 27th Sept 16
Save Up to 70% in Shopping Expenses for Daily Items - 27th Sept 16
Gold’s Moving Averages and Long-Term Outlook - 26th Sept 16
September Stock Market - The Not So Silent Demise of Deutsche Bank - 26th Sept 16
SPX sell signal confirmed - 26th Sept 16
SPX is testing the next level of support - 26th Sept 16
Outrageously Entertaining US Presidential Campaign Final Stages - What Happens Next? - 26th Sept 16
BoJ, FOMC and Where To Now? - 26th Sept 16
Stock Market New All Time Highs Next - 26th Sept 16
Why Trump Will Win US General Election 2016 Prediction Forecast - 26th Sept 16
Martial Law Rolls Out Across the US As Jubilee Nears - 26th Sept 16
Stock Market More Correction Likely - 25th Sept 16
US Presidential Election Forecast 2016 - Trump Riding BrExit Wave into the White House - 25th Sept 16
US Economy GDP Growth Estimates in Free-Fall: FRBNY Nowcast 2.26% Q3, 1.22% Q4 - 24th Sept 16
Gold and Gold Stocks Corrective Action Continues Despite Dovish Federal Reserve - 24th Sept 16
Global Bonds: Why Our Analyst Says Things Just Got "Monumental" - 24th Sept 16
Where Did All the Money Go? - 23rd Sept 16
Pension Shortfalls Could Be 4X To 7X Greater Than Reported - 23rd Sept 16
Gold Unleashed by the Fed - 23rd Sept 16
Gold around U.S Presidential Elections - 23rd Sept 16
Here’s Why Eastern Europe Is Doomed - 23rd Sept 16
Nasdaq NDX 100 Big Cap Tech Breakout ? - 23rd Sept 16
The Implications of the Italian Banking Crisis Could Be Disastrous - 22nd Sept 16
TwinLakes Theme Park Summer Super 6 FREE Return Entry for Real? - 21st Sept 16
Has the Silver Bullet Run Out of Fire Power? - 21st Sept 16
Frack Sand: The Unsung Hero Of The OPEC Oil War - 21st Sept 16
What’s Happening With Gold? - 21st Sept 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Power of the Wave Principle

Is 2012 the Next 1897? Juniors Prepare for Yukon Gold Rush

Commodities / Gold & Silver Stocks Feb 29, 2012 - 01:43 AM GMT

By: Submissions

Commodities

Best Financial Markets Analysis ArticleChris Devauld writes: When it comes to gold mining, the Yukon needs little introduction. The westernmost territory’s frigid climate and unforgiving terrain hasn’t deterred prospectors, past and present. The end of the 19th century saw gold miners rush in on mere rumours of the yellow metal, which eventually lead to the renowned Klondike Gold Rush in 1897. Now, it appears, history is repeating as the high price of gold drives ambitious juniors back into the rush for riches.


Of particular interest to many exploration companies vying for space in the Yukon is the renowned White Gold District. This district sits on the Tintina Gold Belt, which is a 2,000km long region of mineralization that stretches NW from British Columbia through the Yukon and into central Alaska. The Tintina has seen over 70 million ounces of gold mined over the last 30 years, with recent large discoveries including the 36 million ounce gold discovery at the Barrick/Nova Donlin Creek project, the 10 million ounce discovery at the International Tower Hills Livengood deposit and Kinross’s 5.7 million ounce Fort Knox deposit.

The Tintina, as you may have guessed, is the site of the historic Yukon Gold Rush. And despite the year-end take down of the gold price in 2011 (and the turbulent 2011 summer), Yukon-based exploration miners are now seeing their share prices rebound. Many are now gearing up for ambitious 2012 drill programs, anticipating a strong year ahead.

Of these juniors, Ethos Capital Corp [ECC – TSX.V] stands out as a well-positioned junior with “substantial mineral land positions” in the heart of the White Gold and Klondike Gold districts. As ECC’s image (left) illustrates, the Company’s claims lie in the middle of the Tintina Gold Belt, south of Dawson Creek. Among juniors, Ethos is one of the leading land holders in the region, with more than 1,000 square kilometres on which the Company is searching for epithermal-mesothermal gold and porphyry copper-molybdenum-gold systems. Within this land package, ECC has the Betty, Bridget, Hayes, Hen and Wolfe projects.

The Company’s soil sampling programs in 2011 have now given way to a 2012 drilling campaign. A recent press release from the Betty Property has confirmed trench pit work, with assays of 12.7 g/t Au over 2 metres and 1.3 g/t Au over 15 metres. On top of the recent results from Betty, ECC is actively pursuing exploration on its other Yukon projects, which it expects to highlight as the year unfolds.

Hot on the heels of Ethos, proving up a solid land package and business model, is Volcanic Metals [VOL – TSX.V]. With a strong team of experienced Yukon geologists and a solid $2 million market cap, Volcanic Metals is focusing on its 100% owned and strategically located Walhalla Project, also located within the White Gold District.

The Walhalla presents Volcanic Metals with the opportunity to prove up a promising deposit in a highly prolific and active area. The 41,800 hectare property (418 km²) is located only 120 km south of Dawson City and is within a short distance from more than 10 million ounces of identified gold from three large deposits: Kinross’s White Gold, Kaminak’s Coffee and Western Copper’s Casino. With companies like Kinross in the vicinity, the area saw about $300 million in exploration expenditures in 2011.

Work on the Walhalla Project has uncovered substantial promise for future exploration. Within the large land package, Volcanic Metals has sampled a small portion of the 1,988 quartz claims. The 2011 Phase 1 exploration program, which only covered less than a third of the property, identified strong anomalous gold zones and anomalous pathfinder elements. Highlights from the 1,019 ridge and spur soil samples, with 50-100m spacing, include the following:

  • 3.41 g/t gold-in-soil anomaly in the southeast region. This is one of the top ten historically reported anomaly results in the entire White Gold District. It was taken from the C horizon at 90cm depth with a manual deep auger in a 100-200m spaced soil line.
  • A large number of grouped gold-in-soil anomalies (>65 with greater than 20ppb)
  • A large brecciated system in the northeast

For Volcanic Metals, a strong start with its Phase 1 exploration program leaves the door wide open for 2012. On top of the soil sampling in 2011, Volcanic Metals completed a 4,500 line-km airborne geophysical survey. This survey, along with Phase 1 results, will greatly assist as the Company moves into the Phase 2 grid/trenching/pit program.

The $750,000 Phase 2 field program will start in June 2012 and will identify potential drill targets, while continuing ridge and spur sampling on the rest of the property. Of particular interest to investors, Phase 2 will include follow up samples to the 3.4 g/t Au anomaly, which could lead to the discovery of a deposit with blue-sky potential.

As 2012 unfolds, we expect to hear a steady stream of news from miners such as Ethos Capital and Volcanic Metals. Ethos’ 2012 drilling of its Yukon properties will likely push the Company further into the spotlight, attracting continued investor interest. Meanwhile, as spring nears Volcanic Metal’s management will focus on its summer exploration program.

Considering that Volcanic Metals’ substantial land package is right next to  market players like Kinross in a prolific mining region, it’s safe to say that the Company’s 2012 exploration plans will attract a lot of eyes. And with the price of gold climbing back up and positive 2011 results adding to the White Gold District’s increasing buzz, this junior may be in just the right spot to participate in the next gold rush.

Other juniors of note in the region include: Smash Minerals, Victoria Gold Corp., Rockhaven Resources Ltd.  

Chris Devauld ProspectingJournal.com

Disclaimer: The author does not currently hold any shares of any of the companies mentioned in the article. However, some members of Cordova Media Inc., which owns the ProspectingJournal.com, may or may not have interests in one or more of the companies mentioned at the time of publication. Staff members from the Prospecting Journal reserve the right to acquire interests in any of the companies mentioned after 36 hours have elapsed upon initial publication of this article. VOL is a sponsor of ProspectingJournal.com.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife