Prospector looks beyond White Gold find

The prospector who discovered the highly promising White Gold property near Dawson City, Yukon Territory says he believes the future is beyond bright for the region - it's blazing.

Shawn Ryan, a self-taught mineral hunter who has spent the past 12 years tramping the Klondike bush and adjacent areas, is being honored by the Association for Mineral Exploration in British Columbia at its annual Mineral Exploration Roundup Jan. 18-21.

AMEBC is singling out Ryan as the 2009 recipient of the coveted H.H. "Spud" Huestis Award for excellence in prospecting and mineral exploration.

The association said Ryan "is recognized for combining his ability to apply modern mineral exploration methods and techniques with 'old-fashioned boot and hammer slogging' to make mineral discoveries."

It is the first time a prospector from Yukon Territory has claimed the distinction since 2000 when Robert Etzel and Arthur John of Ross River were honored for their lifelong contributions to mineral discoveries in the Yukon and for mentoring younger Kaska First Nations members in mineral prospecting.

A 'major' development at White Gold?

Ryan, who co-owns and operates Ryanwood Exploration Inc. of Dawson City, Yukon Territory, with his wife, Cathy Wood, sees exciting days ahead for his neck of the woods.

He says mineral exploration in the Yukon is shaping up to be busier in 2010 than it was 2009 - and that's saying something when you consider that last year saw more than C$90 million spent on mineral exploration in the territory, even though the industry was swamped elsewhere by a worldwide economic recession.

Ryan's optimistic outlook no doubt is influenced by his front-row seat in, arguably, Canada's hottest mineral play in a decade.

He envisions a major mining company moving in within the next couple of years to take up development of the White Gold Project, which was confirmed as a significant gold discovery by Underworld Resources Inc. in 2009. Ryan optioned White Gold to Underworld in 2007.

The junior completed a 25,670-meter drill program with 79 holes in September, exploration that essentially outlined a 400-by-450-meter gold deposit with mineralization ranging 31-104 meters deep and averaging 3.13-9.20 grams per metric ton gold along with evidence of even deeper gold mineralization. 2009 drilling at the property's Golden Saddle Zone produced multiple 100-meter intersections with assays of more than 3 grams of gold per ton.

White Gold for sale?

Though Underworld is continuing its exploration of White Gold and preparing a resource estimate expected to be completed in early 2010, the junior already has indicated the property is up for sale.

Given that Kinross Gold Corp. owns a 12 percent stake of Underworld, Ryan said one need only "read between the lines" and recognize that the owner of Alaska's Fort Knox gold mine likely will be the chief contender for White Gold.

Kinross has invested in roughly a dozen juniors that are exploring for gold in the Tintina Gold Belt, the prolific 145 million-acre (58.7 million-hectare) mineral region that hosts the Fort Knox and Donlin Creek gold deposits in Alaska as well as significant gold showings in Yukon Territory, including White Gold.

Kinross has said its investment in Underworld is part of the major's strategy of partnering with promising junior companies to maximize its exposure to new prospects and experienced explorers for a relatively small capital outlay.

Underworld director Michael Williams has said the White Gold deposit, which appears to be a major gold system, is continuing to evolve and the junior will continue to delineate it.

"I am sure we will have interest (from) companies like Kinross, and it is like a 100-yard-dash, and they are on the 10-yard-line," Williams told Mining News in July.

Out of the last 42 gold deposits that have been developed around the world, Ryan said 11 are the same size as the White Gold property.

Mining companies are finding it is cheaper and faster to put more modest-sized gold deposits into production and they are going after them in a big way, he said.

"Kinross is a Canadian mining company, and it wants a mine in Canada," Ryan said. "I think things are going to happen sooner rather than later. I don't think it will drag on another year."

A White-Coffee mix?

Ryan said any major that seeks out White Gold also would seek to acquire the Coffee Property, which he optioned to Kaminak Gold Corp. last year.

"Coffee is going to be White's twin or big brother. Whichever major gets the White property is going to want the Coffee property," he said. "It's the same size system - 11 kilometers long by 3 kilometers wide. But the intensity of the anomaly is 30 percent (soil) to 40 percent (rocks) higher."

After a single season of sampling and trenching the Coffee property and the adjacent Cream and Kirkman claims, Kaminak is so pleased with the results that it is planning a minimum 5,000-meter Phase 1 diamond drill program scheduled to begin this spring or early summer. It will be the first-ever drill program on the Coffee property.

"You can drive to the mouth of Kirkman Creek, and to get access to these properties you can ferry across and after about 4 miles (or about 7 kilometers), of road-building, you're there at Coffee," Ryan said.

White Gold is 27 kilometers, or about 17 miles to the north of the Coffee property.

More rabbits in the hat

Ryan said he worked on the Coffee Prospect for four years and even longer on the White Prospect. But he believes the story of the White Gold District is yet unfolding.

"There will be more announcements in January," he said in a December 2009 interview. "We'll bring another 3-kilometer mineral system out of the woodwork then."

Sure enough, Aldrin Resource Corp. Jan. 6 reported that it optioned the "Longline Property" in the Dawson Mining District from Ryanwood. The Longline Property is comprised of 100 quartz mining claims in an area adjacent to the Yukon Territory and Alaska border.

In a deal similar to the ones Ryan and Wood struck with Underworld, Kaminak and others, Ryanwood will receive a combination of cash and Aldrin shares as well as a 2 percent net smelter royalty with advance payments. In addition, Aldrin is required to incur at least C$1.5 million in exploration spending by Jan. 5, 2014.

Aldrin CEO Johnathan More said his company intends to explore the Longline property during the 2010 season.

Aldrin also has three drill-ready Yukon projects - the Brew Property, also located in the White Gold District, the Ind Property in the Dawson Mining District and the Keystone Property in the Mayo Mining District. Spring work programs are scheduled for all three properties.