White Gold (TSXV: WGO) reported an 18.5% rise in inferred and a 4.3% increase in indicated resources at its Yukon project, conceived by co-founder and veteran prospector Shawn Ryan.
The project, backed since 2017 by Agnico Eagle Mines (TSX: AEM, NYSE: AEM) at 19.85% and Kinross Gold (TSX: K, NYSE: KGC) at 13.4%, now holds 17.7 million indicated tonnes at 2.12 grams gold per tonne for 1.2 million oz. of metal. It also hosts 24.5 million inferred tonnes at 1.4 grams gold for 1.1 million oz. of contained metal. They constrained the resources at $2,000 per oz. of gold.
The resource is “one of the highest-grade open-pit gold resources in Canada owned by an exploration company,” CEO David D’Onofrio said in a news release. He pointed to the deposits’ growth potential and the myriad underexplored areas within the company’s 3,150 sq. km claim package, representing 40% of the White Gold District.
White Gold is searching for the source of over 20 million oz. of placer gold discovered during the Klondike Gold Rush 125 years ago.
At C$0.22 apiece, White Gold shares were flat Wednesday afternoon in Toronto, having touched C$0.208 and C$0.415 over the past 12 months. It has a market capitalization of C$38.8 million.
The Yukon’s potential for major deposits has been demonstrated before.
Newmont’s (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) Coffee deposit holding 50.2 million tonnes measured and indicated at 1.28 gram gold per tonne for 2.1 million oz. of metal. Western Copper and Gold’s (TSX: WRN; NYSE: WRN) Casino project holds 1.2 billion tonnes in proven and probable reserves grading 0.2% copper, 0.22 gram gold per tonne for 5.1 billion lb. copper and 8.5 million oz. gold.
Nearly all the resources in four deposits named Golden Saddle, Arc, Ryan, and VG sit near the surface. This allows for open-pit mining. Smaller underground deposits exist at Golden Saddle, Arc, and Ryan.
Golden Saddle accounts for 95% of the indicated ounces and includes a high-grade core of 832,000 oz. at 2.96 grams gold. Nearby zones, classified as targets for further exploration, hold potential. They have an estimated 10 to 12 million tonnes of gold, grading 1 to 2 grams per tonne, the company said.
The Golden Saddle deposit, located 95 km south of Dawson City, has mineralization stretching 1.5 km along strike and 725 metres deep. High-grade zones, such as the GS Main Zone, contain up to 525,600 oz. at 4.68 grams per tonne gold. Mineralization remains open in all directions, the company said.
Recent sampling at the Chris Creek target on the QV property, 9 km northwest of VG, revealed gold-bearing intrusive rocks over a 1.3-km section. Initial results include samples grading up to 1.09 grams gold per tonne, and drilling has tested a 400-metre strike length, with assays pending.
White Gold’s ongoing work includes optimizing the block model at Golden Saddle and Arc. As the biggest claim holder in the Yukon, it continues to evaluate other targets.
The company plans to release more results from the completed drill program and next steps in the coming months.
