Source: John Newell for Streetwise Reportsh 08/22/2018
Fund manager John Newell with Fieldhouse Capital Management discusses what he terms an “exciting new discovery in the heart of the Yukon’s White Gold District.”
In this article, we will take a brief look at the Yukon, the prolific Tintina Gold Belt and drill down to the White Gold district, which makes up part of the belt, and what could be Luckystrike Resources Ltd.’s (LUKY:TSX.V) strategic position in the White Gold District.
Luckystrike Resources Ltd. shares are just now trading on the TSX Venture Exchange under the symbol LUKY. It was born as a spinout from Goldstrike Resources (GSR.V). See the press releases below for full details:
Shares Issued and Outstanding: 37,579,296
Warrants: 16,142,083
Fully Diluted: 53,721,379
Cash: $3,100,000
Major Shareholder: Goldstrike now owns approximately 22% of the issued and outstanding Luckystrike shares on an undiluted basis and approximately 36% on a partially diluted basis, assuming only the exercise of the warrants held by Goldstrike.
https://www.luckystrikeres.com/lucky-strike-property/
Why the Yukon: Canada’s Yukon Territory is a mining-friendly jurisdiction with a long proud history in mining and exploration, starting with the 1897 Klondike Gold Rush. Mining is an important part of its economy today, as the Yukon experiences a new modern-day gold rush. For much of this time, smaller companies, placer miners “working the creeks,” dredging barges “working the rivers,” prospectors and mining entrepreneurs have walked, staked the ground throughout the Yukon.
However, this is changing because the majors are discovering what the juniors have long known: This region is largely underexplored, has exceptional geology, and has strong potential for district-size mining operations that can replace the declining reserve profiles, which the majors are experiencing.
Mining companies continue to invest in the Yukon, not only because of the strong mineral potential, but also the clarity provided at all levels of government, programs, and partnerships with First Nations.
The Tintina Gold Belt, which extends from British Columbia to Alaska, is underexplored in its central section spanning the Yukon Territory, including where it crosses the un-glaciated Dawson Range. The Tintina Gold Belt is a 1200 km long and 200 km wide arc, extending from the south corner of Alaska into the northern part of British Columbia. Production mines and significant exploration and mine development projects demonstrate the geologic potential in the Dawson Range. Over 50 million ounces of gold have been discovered in this belt over the last 20 years. (See maps below)
The White Gold District experts call the “Best Hope for New Gold Deposits,” Northern Miner May 13, 2018
The Yukon’s White Gold District is known as a series of orogenic vein deposits that lie within the famed Tintina Gold Belt. There have been estimates of 15–20 million ounces of placer gold mined from the creeks in the White Gold district. The sources of that gold remained uncovered until the discovery of the Golden Saddle (Underworld, Kinross, now White Gold) and Coffee deposits (formally Kaminak, now Goldcorp) in the district. Many geologists and experts believe there are many more sources. Exploration for hard rock deposits has been limited in the past. This started to change in the past 10 years, when over 7 million ounces has been discovered in this area. Over time new technology, innovation and more experience has continually enhanced companies’ abilities to discover new deposits, as well as expand on existing ones, which is encouraging senior miners to take a closer look and invest in the district.
In addition, the Yukon territorial governments, along with the Canadian federal government, have committed CA$360 million to build improved roads and infrastructure throughout the Yukon, including the White Gold District. This heavy infrastructure spending should drive down capex costs and improve project economics for companies in the area. Investors can see from the insert below how the landscape is changing in the area, as major gold producers are moving heavily into the area. To re-cap, the reasons are excellent geology, vast areas of underexplored prime terrane, geopolitical stability, infrastructure is decent and improving, a mining friendly culture, and new large deposits being found, examples being Goldcorp’s Coffee project, Victoria Gold’s Dublin Gulch, and ATAC’s Carlin style target. The rush back to North America will likely intensify as events continue to become more volatile worldwide, large mining corporations must look forward at least 10–15 years to be sustainable.
“The best place to find a new mine is next door to an old mine or existing mine”-Tom Zoellner
Luckystrike’s Property Map
Luckystrike Resources Ltd. (LUKY) is an advanced junior exploration company that has already hit big with all nine inaugural exploratory drill holes intersecting gold mineralization during the summer of 2017 including the discovery hole, 22 meters of 5.36 grams per tonne gold. The geological setting of the properties held by Luckystrike Resources are like that of Goldcorp’s Coffee 3-million-ounce deposit and White Gold’s Golden Saddle 1-million-ounce deposit, which is contiguous with the Luckystrike property. Luckystrike properties compare favorably with those deposits in terms of grade, geology, geochemistry, structure, size, orientation and location of both these well-known deposits.
The company has a five-year exploration permit, no underlying royalties or property payments, and CA$3 million cash on hand for the highly anticipated follow up drill program currently underway to expand on its nine 2017 discovery drill holes to trace the full extent of the gold mineralization found last year. The 2018 program includes but is not limited to soil sampling, trenching, ground geophysics and aggressive diamond drilling. We feel Luckystrike is in good shape to tackle this project.
Luckystrike’s property covers more than 150 square km in total and is contiguous with White Gold’s Golden Saddle property in a mining district that has seen over 7,000,000 ounces of gold discovered since 2007. This area has excellent access by road with Goldcorp’s haul road …read more
From:: The Gold Report