GOLD – Atac Resources Ltd. March 8 reported staking an additional 3,305 claims at its Rau Gold Project located in the Keno Hill district of central Yukon Territory. Rau 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 claim 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.”
REEs – True North Gems Inc. and Great Western Minerals Group Ltd. Mach 8 said True North Gems granted Great Western an option to acquire up to a 65 percent working interest in the True Blue property located 55 kilometers, or 34 miles, south of Ross River in southern Yukon Territory in exchange for carrying True North Gems through to completion of a bankable feasibility study. True Blue covers a batholith of Mississippian-age syenite, coeval felsic volcanic rocks and lower Paleozoic clastic and carbonate rocks of Silurian age. During a 2009 exploration program on the property, True North Gems, which is primarily focused on gemstone exploration, discovered three new rare earth element showings, which returned assays of up 6.02 percent total rare earth oxides + yttrium and 2.52 percent niobium oxide with a high proportion of neodymium and heavy rare earth elements. Under the terms of the agreement, Great Western can earn 51 percent interest in the property with an initial cash payment of C$50,000 on signing; followed by additional cash payments totaling C$350,000 on or before Jan. 30, 2013. In addition Great Western will issue to True North Gems 300,000 of its shares on signing, followed by an additional 900,000 shares on or before Jan. 30, 2012. In order to earn an initial 51 percent interest GWMG has the option to complete a total of C$5.0 million in exploration costs on or before Dec. 31, 2013, with a commitment to incur C$1 million in exploration during 2010. Once the company earns its 51 percent, Great Western gains a second option that will allow it to acquire a further 14 percent interest (total 65 percent) by completing all expenditures through completion of a bankable feasibility study. Great Western also will have the right to market True North Gems’ share of REE production with a renewal option every three years. The agreement is subject to regulatory approval and upon receipt of the necessary permits, Great Western plans to begin preliminary exploration activities on this project, including an airborne magnetic and radiometric survey, geological mapping, prospecting, trenching and geochemical sampling and in order to define the extent of the known mineralization, identify new areas of mineralization and to define drill targets for the 2011 program. Great Western President and CEO Jim Engdahl said the joint venture will satisfy his company’s goal of diversifying its mineral project portfolio geographically and balancing its rare earth mix. “This JV satisfies our immediate focus on high value, heavy REE dominant mineralization, in areas of good infrastructure in order acquire a secure supply of raw materials for our processing plants in Michigan and England, ” he added.
SERVICES – Alexco Resource Corp. March 8 said it has awarded a mining services contract for development and production mining of the Bellekeno silver-lead-zinc deposit to the NNDDC/Procon Joint Venture, a joint venture between Procon Mining and Tunnelling Ltd. and the Nacho Nyak Dun Development Corp. The Bellekeno Mine is located in the Keno Hill silver district of Canada's Yukon Territory, within the traditional territory of the First Nation of Na-Cho Nyak Dun. Alexco said the award of this major contract represents a significant step in the company’s development of the Bellekeno Mine. Pre-production development activity under the mining contract includes about 600 meters of primary ramp development with ore access, 32 meters of raise development and 400 meters of rehabilitation in historical workings, as well as installation of necessary electrical, ventilation and compressed air services. This work will be completed over the course of the next five months, in preparation for the start of ore production in the third quarter of calendar 2010. Alexco said the contract will provide significant job and training opportunities for the First Nation of Na-Cho Nyak Dun. Construction at the Bellekeno Mine and Mill complex is proceeding on schedule and within budget. Due to unusually warm weather this winter in Yukon Territory, construction of the mill building is ahead of schedule.
GOLD – Northern Freegold Resources Ltd. March 5 released an updated NI 43-101 mineral resource estimate for the Nucleus deposit at the 198-square-kilometer, or 76.5-square-mile, Freegold Mountain Project in central Yukon Territory. 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 Nucleus deposit is a near-surface, bulk tonnage, potentially open-pitable intrusion-related gold deposit. The Nucleus 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). The grade of the Nucleus deposit has increased by 32 percent and contained ounces increased by 31 percent from an initial NI 43-101 resource estimate released in July based upon a 0.4 g/t gold cutoff. 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 underway with a focus on expanding the resource at Nucleus and (on testing) the potential to define new resources on the property in other target areas.”
GOLD – Victoria Gold Corp. March 9 reported results of an NI 43-101-compliant pre-feasibility study for its Eagle gold project in the Yukon Territory. The pre-feasibility study was prepared by Scott Wilson Roscoe Postle Associates Inc. in association with Kappes, Cassidy & Associates and BGC Engineering Inc. “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. Upon receiving the study, Williams said the company found that 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. Also, at a higher gold price, additional resources may convert to reserves, extending the mine life and/or permit a higher production rate, he 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 in the Yukon include submission of a project proposal to the Yukon Environmental and Socio-economic Assessment Board initiating the formal permitting process; starting a feasibility study; beginning 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; conducting condemnation drilling of the proposed waste rock and heap process sites; and advancing discussions with the Na-Cho Nyak Dun First Nation on a benefits agreement, McConnell added.
POLYMETALLIC – Rockhaven Resources Ltd. March 8 said it acquired an option to purchase 100 percent interest in the Mount Hinton property located 10 kilometers, or 6 miles, from Keno City in the Keno Hill mining camp in central Yukon Territory by making cash payments totaling C$500,000 over a three-year period to an arm’s length syndicate. The Mount Hinton property consists of two claim blocks that together total 400 mineral claims and cover 82 square kilometers, or about 32 miles. A 2 percent net smelter return royalty retained by a third party on 297 of the claims can currently be purchased outright for C$115,000. If the NSR is not bought out now, its purchase price will increase at a rate of C$25,000 per year. The property hosts gold-silver-lead mineralization within steeply dipping vein structures. Yukon Territory’s hydroelectric power grid extends to Alexco Resource Corp.’s Bellekeno deposit, which is located 3 kilometers north of the Mount Hinton claim block. The property is situated within the eastern part of the Keno Hill mining camp, a district that hosts more than 35 individual mines and is historically Canada’s second largest primary silver producer. Although silver mineralization is found in veins on the Mount Hinton property, gold is the most significant component in many of the 72 bedrock showings and float occurrences that have been discovered on the property by previous operators. Creeks draining the property have yielded significant placer gold production and are still being mined. Much of the known mineralization at the Mount Hinton property consists of arsenopyrite, galena, jamesonite, pyrite, and sphalerite hosted within highly fractured quartz, but some occurrences feature galena and tetrahedrite in siderite gangue. Mineralized shoots on the veins typically range between 0.2 meter and 3.0 meters wide and grade between 1 gram per metric ton and 30 g/t gold, 50 g/t and 1,500 g/t silver and 0.5-2.5 percent lead. Maximum grades of 127.5 g/t gold, 30,822 g/t silver, and 75 percent lead have been returned from rock samples. There is no direct correlation between vein width and grade. Two of the veins have received minor underground development and nine of them have been partially tested by limited diamond drilling. Most of this work has been done near ridge crests where steep topography and permafrost have complicated exploration. The broad valleys between ridges have seen little exploration, even though strong soil geochemical anomalies and favorable host rocks are found within those areas, the junior said. Previous operators identified numerous soil geochemical anomalies and geophysical targets that have not yet been drilled or trenched. “The Mount Hinton property is an exceptional asset in a proven precious metal camp and is a very attractive addition to Rockhaven’s portfolio of quality mineral properties. Most of the high-grade gold and silver discoveries on the property have seen little systematic exploration and numerous drill targets are already delineated,” said Rockhaven CEO Matt Turner. “It is another of our projects where exploration and development logistics are extremely favorable.”
