Explorers advance gold projects quietly

While the White Gold Project continues to grab headlines, at least four other substantial gold projects in central Yukon Territory are quietly striding toward potential development.

Yukon officials say it's all part of the plan.

The gold projects reporting recent advancements include Victoria Gold Corp.'s Eagle gold project, ATAC Resources Ltd.'s Rau Gold Project, Northern Tiger Resources Inc.'s Sonora Gulch Project, and Northern Freegold Resources Inc.'s Freegold Mountain Project.

Global mining hot spot

Yukon Energy, Mines and Resources Minister Patrick Rouble said he believes recent interest and investments in Yukon gold projects and claims reflects several factors, including instability in world markets, which is making gold and gold mining companies attractive havens for investment.

But all that glitters in Yukon Territory is not gold, he said. "We've seen additional investment in other metals. This is an active time for all aspects of mining. The Yukon is a pretty busy place these days," he said.

Rouble said the territory has tremendous mineral potential, which coupled with significant improvements in its regulatory framework for mining, a more streamlined permitting process and recent mining reforms, is attracting considerable investment.

Twelve of the 14 First Nations in Yukon Territory have settled their land claims with the government, which considerably lessens the political risk for miners of doing business in the territory.

In addition, infrastructure improvements, including more and better access to hydroelectric power and new roads, are making a difference.

Rouble said Yukoners have worked hard to create a business environment that is friendly to responsible mining companies, offering incentives for prospectors and training programs for mine workers, especially for often under-employed First Nations members.

His ministry has taken additional steps to encourage mining, including increasing the 2010 budget to C$1.8 million for the successful and popular Yukon Mining Incentive Program.

Why the focus on mining? Because the industry brings much-needed, higher paying jobs, along with significant local spending and tax revenue.

Already, mining is having a significant impact on the territory's gross domestic product, employment rate, and quality of life of all citizens, Rouble said.

"All of the efforts of industry, government and First Nations working together are coming together right now in Yukon," Rouble said. "That was the message, loud and clear at PDAC earlier this month," he said in a March 17 interview.

Rouble said Yukon Territory was a frequent topic in discussions among delegates who attended the huge Prospectors and Developers Association Convention in Toronto March 5-10.

"They said there are three hot spots for mining on the planet - Yukon, Colombia and Africa, not necessarily in that order - and I know where I'd like to do business,"

he added.

Study: Eagle has "robust" potential

Victoria Gold Corp. reported results March 9 of an NI 43-101-compliant pre-feasibility study for the Eagle gold project.

Prepared by Scott Wilson Roscoe Postle Associates Inc. in association with Kappes, Cassidy & Associates and BGC Engineering Inc., the pre-feasibility study shows the project has robust economics even at a much lower gold price; capital costs are low on a per-ounce-of-production basis and are achievable; total cash operating costs are below what the company views as current world average costs; the project's internal rate of return and net present value have substantial leverage to the price of gold; and the reserve is only a portion of the known unconstrained gold resource.

"By completing this successful independent study and adding ounces of gold through a short 2009 exploration campaign, the company has already added considerable value to this project, which we acquired less than one year ago," said Victoria President and CEO Chad Williams.

Also, at a higher gold price, additional resources may convert to reserves, extending the mine life and/or permit a higher production rate, Williams added.

The Eagle project has 66.14 million metric tons of probable reserves, averaging 0.823 grams per metric ton gold containing 1.751 million ounces of gold, using a cut-off grade of 0.35 g/t gold, based on US$900/ounce gold price, average metallurgical recovery of 72 percent, and operating costs averaging C$10.38 per metric ton ore.

"Upgrading from an indicated resource to a probable reserve is a huge step in the project's development and shows the quality of the Eagle asset," said Victoria Executive Vice President John McConnell.

The near-term next steps for Victoria will include submission of a project proposal to the Yukon Environmental and Socio-economic Assessment Board, which initiates the formal permitting process; beginning a feasibility study; and launching a C$5 million exploration program to assess the gold potential of areas within trucking distance of Eagle on the large Dublin Gulch property, including the Shamrock, Olive, and Steiner zones. The company also plans to conduct condemnation drilling of the proposed waste rock and heap process sites; and to advance discussions with the Na-Cho Nyak Dun First Nation on a benefits agreement, McConnell said.

New gold district?

ATAC Resources reported staking an additional 3,305 claims at the Rau project March 8. Rau, which is located in the Keno Hill district of central Yukon, contains the Tiger Zone, a sediment-hosted Nevada-style oxide and sulphide gold zone with high-grade intersections.

In addition to the Tiger zone, which has been tested with 12,200 meters of diamond drilling in 2008 and 2009, the property contains 12 other geochemical anomalies or float occurrences of gold mineralization that are expected to be drilled in 2010.

The new staking more than doubles the size of Atac's holdings in the Rau project, bringing the total to 6,462 claims. The project now covers about 1,310 square kilometers, or nearly 506 square miles, including the main claim block and two satellite properties. The new claims were staked to cover projections of favorable structural and stratigraphic settings both to the west and east of the Tiger zone.

The expanded claim holding now provides continuous coverage of a 160-kilometer-long belt of Paleozoic carbonate rocks situated between the Dawson and Kathleen Lake Faults.

This setting is remarkably similar to the geology of the Carlin Trend in Nevada.

With this extension, the highly prospective Sten Target, 96 kilometers to the east of the Tiger zone, is linked to the main land holding.

The Sten target was discovered in 2009 by following up strongly anomalous reconnaissance-scale arsenic stream sediment geochemical results.

Subsequent sampling and mapping have defined a 2-kilometer, or 1.24-mile, long belt containing high gold-in-silt values ranging from 0.1-2 grams per metric ton within a stratigraphic and structural setting similar to the Tiger zone.

The newly staked band of favorable carbonate stratigraphy between the Tiger zone and the Sten target will be explored in 2010.

"The extent and style of gold mineralization at the Rau Gold Project and the well defined structural setting compelled Atac to secure a stronger land position," said Atac CEO Graham Downs. "The company believes that it has identified a significant new gold district and looks forward to this year's aggressive exploration program on its existing and newly staked land packages. Crews will be mobilized to the property in April."

Bigger and better Nucleus

Northern Freegold released an updated NI 43-101 mineral resource estimate March 5 for the Nucleus deposit at the 198-square-kilometer, or 76.5-square-mile, Freegold Mountain Project.

The new estimate shows an overall increase in grade and expansion of the defined ounces and is open to expansion laterally and at depth. In addition, further drilling defined a number of higher grade zones, which also remain open within the overall resource. Recent metallurgical test work of higher and lower grade ore types shows excellent gold recoveries, the junior said.

The Nucleus deposit is a near-surface, bulk tonnage, intrusion-related gold deposit that is potentially suited to open pit mining. The deposit has an inferred resource of 1,004,000 contained ounces of gold within 35.82 million metric tons at 0.87 grams per metric ton gold (0.4 g/t cutoff), which includes a higher grade zone of 184,000 contained ounces of gold within 2.2 million metric tons at 2.55 g/t gold (0.4 g/t cutoff). Northern Freegold said the grade of the Nucleus deposit increased by 32 percent and contained ounces in the deposit rose by 31 percent from the initial NI 43-101 resource estimate released in July.

Initial metallurgical tests show excellent gold recoveries in the 92-98 percent range on material from the Nucleus deposit. The Nucleus deposit mineralization begins at surface and is open to expansion in all directions and at depth.

"The identification of higher grade zones and the potential to expand upon them and possibly find others is of significance," said Northern Freegold Chairman and Chief Operating Officer Bill Harris. "The updated 3-D geologic modeling has identified a number of priority targets for follow-up that have the potential to continue to expand the resource.

Planning for the 2010 exploration program is currently under way with a focus on expanding the resource at the Nucleus deposit and (on testing) the potential to define new resources on the property in other target areas, he added

Gold showings expanded

Northern Tiger reported March 2 that 2009 field work continued to refine and expand priority gold targets at Sonora Gulch. Work to date has identified a near-continuous geochemical gold-in-soil anomaly (>20 parts per billion) that extends for 6 kilometers, or nearly 4 miles, with an average width of about 1.5 kilometers, or 1 mile.

"Both the size and the intensity of the overall gold trend at Sonora Gulch compare very favorably with other anomalies currently being explored in the very active Dawson Range/White Gold district," Northern Tiger President Greg Hayes said in a statement. "Exploration at Sonora Gulch continues to demonstrate the property's gold potential, and a number of very compelling targets remain to be drill-tested."

The broad gold trend, defined by 1,971 soil samples (22 percent collected in 2009), now covers about 9 square kilometers, or 3.5 square miles.

Gold-in-soil values range from trace to 2,340 ppb, with an average grade of 56 ppb.

Within this broader trend, a number of clusters with significantly elevated gold values have been identified as high priority targets for additional exploration, including the Gold Vein, Sonata, and Concerto Creek anomalies.

The Gold Vein anomaly now measures about 1.2 kilometers by 0.4 kilometer, or 0.74 mile by 0.25 mile, and shows strongly elevated gold-in-soil values up to 1,215 parts per billion and averaging 161 ppb over 112 samples (97 percent collected in 2009).

The anomaly overlies a felsic intrusive unit along the northern contact of the Dawson Range batholith.

The target consists of structurally controlled gold-sulphide and gold-quartz veins occurring as sheeted vein systems and as stockwork veining in breccia zones.

Additional soil sampling also expanded the Sonata Anomaly, first identified in 2008, to an area measuring about 1 kilometer by 1 kilometer, or 0.62 mile by 0.62 mile. An interpreted narrow unmineralized, ultramafic sill bisects the anomaly. The polymetallic anomaly was defined from 81 soil samples (94 percent collected in 2009), with elevated levels of gold (maximum of 1,755 ppb; average 83 ppb), copper (maximum of 1,680 ppm; average 105 ppm), molybdenum (maximum of 42 ppm; average 3 ppm), silver (maximum of 77 ppm; average of 3 ppm) and lead (maximum of 6,670 ppm; average of 217 ppm).

The 2009 field work also improved delineation of the Concerto Creek Anomaly. The anomaly now measures about 700 meters by 400 meters, identified from 52 samples (31 percent collected in 2009) with gold-in-soil values ranging up to 334 ppb (average 63 ppb). The anomaly is located along the north contact of a late feldspar porphyritic intrusion.

A recently discovered copper-molybdenum porphyry target also is contained within this broad trend.20 parts per billion) that extends for 6 kilometers, or nearly 4 miles, with an average width of about 1.5 kilometers, or 1 mile.

"Both the size and the intensity of the overall gold trend at Sonora Gulch compare very favorably with other anomalies currently being explored in the very active Dawson Range/White Gold district," Northern Tiger President Greg Hayes said in a statement. "Exploration at Sonora Gulch continues to demonstrate the property's gold potential, and a number of very compelling targets remain to be drill-tested."

The broad gold trend, defined by 1,971 soil samples (22 percent collected in 2009), now covers about 9 square kilometers, or 3.5 square miles.

Gold-in-soil values range from trace to 2,340 ppb, with an average grade of 56 ppb.

Within this broader trend, a number of clusters with significantly elevated gold values have been identified as high priority targets for additional exploration, including the Gold Vein, Sonata, and Concerto Creek anomalies.

The Gold Vein anomaly now measures about 1.2 kilometers by 0.4 kilometer, or 0.74 mile by 0.25 mile, and shows strongly elevated gold-in-soil values up to 1,215 parts per billion and averaging 161 ppb over 112 samples (97 percent collected in 2009).

The anomaly overlies a felsic intrusive unit along the northern contact of the Dawson Range batholith.

The target consists of structurally controlled gold-sulphide and gold-quartz veins occurring as sheeted vein systems and as stockwork veining in breccia zones.

Additional soil sampling also expanded the Sonata Anomaly, first identified in 2008, to an area measuring about 1 kilometer by 1 kilometer, or 0.62 mile by 0.62 mile. An interpreted narrow unmineralized, ultramafic sill bisects the anomaly. The polymetallic anomaly was defined from 81 soil samples (94 percent collected in 2009), with elevated levels of gold (maximum of 1,755 ppb; average 83 ppb), copper (maximum of 1,680 ppm; average 105 ppm), molybdenum (maximum of 42 ppm; average 3 ppm), silver (maximum of 77 ppm; average of 3 ppm) and lead (maximum of 6,670 ppm; average of 217 ppm).

The 2009 field work also improved delineation of the Concerto Creek Anomaly. The anomaly now measures about 700 meters by 400 meters, identified from 52 samples (31 percent collected in 2009) with gold-in-soil values ranging up to 334 ppb (average 63 ppb). The anomaly is located along the north contact of a late feldspar porphyritic intrusion.

A recently discovered copper-molybdenum porphyry target also is contained within this broad trend.