Since Underworld's high grade discovery last year and Kinross's subsequent takeover at an early stage in development, suggesting that K thought there was huge potential in the area and wanted to get in early on the cheap. Underworld's Golden Saddle Discovery has great potential and was still largely undefined when Kinross pulled the trigger at $2.60+ a share earlier this year. A double from where I was recommending to buy it last fall.
Since the discovery at Golden Saddle, which indicated to the market that there was potential for numerous gold-silver-copper targets among this largely underexplored area of the Yukon. Last summer 2009 we saw a mad staking rush, and now the first initial results of these exploration programs are starting to come in. This summer Kaminak and ATAC have made subsequent material drilling discoveries while others are defining large mineral in soil anomalies (which has been a very successful way of exploring in this area with large amount of overburden and little outcropping). Still others like NTR and KS are discovering numerous high grade veins on their properties that are anxiously awaiting drilling. Since NTR announced drilling of their high grade vein discovery on their 3Acre property, the stock has more than doubled to .66 from where I originally said this stock was a great buy. Klondike has discovered widespread high grade silver veining throughout their property that they are exploring under option from ATAC.
These are some exciting times for the Yukon White Gold District and the companies exploring these vastly rich mineral properties. The sp of almsot every company explorign no matter what stage is in a bull trend and as the discoveries continue to happen in this mining friendly jurisdiction of the Yukon, you will expect a premium to continue to build into the sp of these explorers.
Other companies that we have in the portfolio concerning the Yukon White Gold District are Western Copper which we added at $1 because it was extremely cheap, considering they have a total of 6.8B lbs of copper, 11.1M oz's of gold and 495M lbs of Moly.... Measured and indicated!!! At their porphyry Casino project in the Yukon White Gold District alone, they have 8.8M oz's of gold, 4.4B lbs of Copper ad 475M lbs of Moly, the project has an NPV of $1.9B alone and the stock was trading at under $100M market cap at the time. The Casino project is still open to exploration and are currently drilling another 15,000m in 2010. At its current $124M market cap, this company is cheap for what they have and with copper stock to move towards its highs of $4, copper stocks will start to move. Some already have, like companies we have followed since blog inception such as Copper Fox.
Other companies that we keep an eye on that are currently exploring at various stages in the Yukon but we think you should be aware of and to beware of... are Brookemont capital (BKT.V) who has claims that are bordering Underworld's property and are initiating early stage exploration on. BKT also announced recently they acquired claims that are bordering Canaco's discovery. Although I do recognize some management and wouldn't advise to buy this company on managements track record. Another company we watch but would be hesitant to buy is Habanero, pretty much for the same reasons. HAO.V was supposed to be a serious O & G player in the Oil Sands and became pretty much a pump and dump, so until some serious work is shown, are companies that tend to be driven be promotion rather than results and should be treated as such. Another company in the area I may wait for results before getting down and dirty with would be Cloudbreak Resources CDB.V, another land package grabber that cares little about real success as long as they are pumping a new story to gullible investors.
4 other much more serious companies that I have my eye on...
Are Arcus Development Group ADG.V which has optioned 4 properties from Atac and have identified several gold in soil anomalies as well and have further prospective results from trenches that hit mineralization over economical widths. ADG.V is very early stage and probably won't get into a serious drilling program until next summer, but have the right early stage exploration properties to work off of.
AM Gold AMG.V is currently awaiting assays from a 6,000 meter drill program at Red Mountain in the Yukon aimed at expanding their 542,000 oz inferred resource at 0.7 g/t. At that grade they will have to significantly expand the resource to even be considered for a mine. AM Gold also has 498,000 oz's gold and 269M lbs of copper indicated and another 168,000 oz's gold and 115M lbs of copper inferred at a project in Peru. At $18M market cap, AM Gold is cheap and has potential to expand their project in the Yukon.
Taku Gold Corp TAK.V is another highly prospective Yukon stock that has acquired the 2nd largest land package in the area. They are not as ahead as some of the other companies, but sometimes good things take time to put together and in Taku's case, have some extremely prospective properties.
The Yukon White Gold District is hot and will continue to be hot for the following few years as the area is seeing aggressive exploration like it has never seen before. A smart investor will position himself in the discoveries now like ATAC, KAM, NTR that are sure to have multiple massive deposits on their properties... and after delineation... reposition into the next round of plays that have had successful exploration programs, discovered viens and large gold in soil anomalies. That will be drilled in the following years.
Silver Quest Resources SQI.V is another very prospective stock that has a very large land package in the White Gold District, they are exploring.
If a company like BKT, HAO, or CDB actually makes a discovery, then I may buy, but those guys I take a show me attitude first. The others are much better buys on much more solid fundamentals than those 3 area play P & D's.
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