If you haven't been able to guess it yet, my exploration theme has moved to Ontario. Yukon White Gold was a success again this summer, but like I have been saying for weeks, the northern stocks, especially the Yukon stocks which have made incredible runs this summer are overvalued and going into a slow season as the last results of the season trickle in. Yukon explorers need to be seriously looked at again starting late winter. ATC, NTR, and KAM have all made huge gains on discovery this year and the latest results that come in should be seen as a profit opportunity.
So I always say follow the money!!! And the money is going into Ontario exploration in a serious way this coming winter.
The LSG discovery has certainly heated up exploration in the Timmins region, but also across the whole province. On a daily basis I see drill programs announced and accelerated, it started with LSG, but now gold fever has spread across the province. Any company announcing a 10,000 meter drill program or better is worth taking a look at as that's a lot of exploration dollars going into a project.
After researching hard over the last month for new projects I have found some very prospective high quality plays. It is clear that a lot of the money is going into Ontario which is a safe place to park the speculative capital. There are several exciting regions that are going on.
1) The emerging Rainy River Gold Camp with latest results continuing to impress from RR and BYV. I have posted about these 2 since they announced their concurrent drill programs. Rainy River has 5M oz’s and growing and Bayfield hit very high grade results extending the ODM zone well onto Bayfield’s property. BYV.V will be taken out. It is clear that Rainy River has well over 5 million oz’s and the hole area is rich in gold.
If there is one micro cap explorer in the area, the play has to be Soldi Ventures (SOV) they have staked claims on either side of Rainy River as well as along a fault nwn of the Cameron Lake Deposit. I wouldn’t play Soldi as a takeout by RR, but more as a grassroots discovery in what I see as an emerging gold camp that will host another major discovery.
2) The Shining Tree District where Creso’s (CXT) discovery is starting to attract serious attention. I am a firn believer that his is another emerging gold camp in Ontario. There are has received little exploration as it was only opened up to staking opportunities in 1996. The area has received little modern day exploration, but over the past 2 years initial results point to a major discovery in the area.
Creso is well on track to a major high grade discovery with this lower zone which is still open and a 280 meter mineralized interval, are going to start to create a stir if they continue successful drilling. If they continue to do well it bodes well for the whole area as there are several extremely cheap companies that could be sitting on land as rich as Minto.
There are several micro caps drilling right now, Platinex (PTX) $4M capex, Goldeye (GGY) $20M capex, Pro Minerals (PRM) $3M just finished doing groundwork and drilling has been recommended.
Mineral Mountain (MMV) announced that they are drilling their 60% interest Shining Tree property with Golden Harp Resources (GHR). If Nelson Baker is in the area sniffing around, you know the whole area must show promise. I am sure success of any of these explorers will drive interest $$$ in the area, but if Creso defines a significant high grade zone which it looks like they are doing. All of these explorers will run as exploration dollars rushes into the area trying to catch the next big thing.
3) Hemlo... Hemlo is running out of gold and the search is on for the next +20M oz deposit... If there is another... Hart Gold (HRT) is on to what I think is a serious find at their Sugar Property 60km east of Hemlo with the latest samples continuing to validate their ip theory. Samples have ranged up to 82 g/t and the ip map is displaying a very large gold zone. With all trenches so far returning high grade assays in disseminated style of mineralization, it gives credence to their theory and could be on to something big on the Sugar Zone property. On top of this large and intense zone, The Sugar Property has gold showings over the entire property.
They are so excited about the project to date with the new ip survey and trench results, they are drilling next week starting with 1500 meters on the first 2 trenches. They are clearing multiple sites to drill test the extent of the mineralization.
Jiminex (JIM) is drilling their 50% optioned property from Beaufield (BFD) 15km west of Hemlo on the theory that Hemlo style mineralization exists at depth. A clue to if they do hit this coming winter is if they announce that they hit disseminated sulphides in drill cores. It doesn’t mean there will be gold in the cores but it will indicate that Hemlo style mineralization is there. This property has seen very little drilling below 500 meters where 90% of Hemlo's mineralization is. Teck has a property 2.5 km to the sw that has had impressive shallow results. Teck's mineralization to the west is shallow which would model after Hemlo as the mineralization modeled after Hemlo would be shallower to the west. Jim is a long shot here, finding 2 deposits that are identical in the way they were deposited is a long shot, but being so close to Hemlo in the same belt, it could happen. There are others what you might consider twin deposits in the world.
4) Red Lake continues to be a hot bed of exploration and Gold Canyon (GCU) is situated on some very nice assets. Since the exploration model changed from high grade to low grade, they are discovering huge potential on the Springpole property. They have increased the depth of the deposit from 160 meters to 375 meters and is open at depth and to the west. Currently drilling indicates in excess of 2M ounces with 6km of prospective rocks to follow to the south. Springpole’s Portage Zone is turning into a massive low grade deposit. With GCU stepping out this winter, it could be a very exciting winter as they add more ounces to Springpole.
5) The Pickle Lake Region is heating up as PC Gold (PKL) advances Pickle Crow and continue to discover new veins. Pickle Crow is in the UCHI Gold Belt that is famous for hosting major deposits such as Red Lake and Rice Lake. PKL looks like a great buy at current levels. If there is another Red Lake or Rice Lake type deposit close to being found, Pickle Lake has the best chance, and others are seeing this as properties get snapped up and exploration programs get announced surrounding PKL's Pickle Crow Mine. At under $1 today... PKL is a no brainer. Technically it has broken out of a flag consolidation pattern and looks ripe for a run. The latest high grade results are very encouraging. JIM is also drilling in this area as well. Still a long shot.
6) Then there is The Timmins and Sudbury regions within the prolific Abitibi Greenstone Belt. Explorers like Explor Resources(EXS) in the Destor Porcupine Region and Northern Gold Mining (NGM) in the same prolific belt with their Garrison property are showing real promise. EXS is drilling deep for LSG type mineralization and NGM is expanding a wide low grade zone at the Garrison property and has now broken out over the 200MA, so has lots of room to run this winter to previous highs of well over $1. In these conditions a company breaking out over the 200MA is a great place to buy. With 10,000 meters of drilling, lots of anticipation for EXS as they have the premiere land package next to LSG. (PX) Pelangio has a nice property 250 meters from Thunder Creek and is obviously going to be apart of Thunder Creek deposit one day. I have written up PX for their Ghana discovery that looks potentially massive in scale, this little property, just makes Pelangio a sweetener. If Pelangio continues to discover gold in Ghana, PX may be potential takeout target… only if LSG wants to go international though.
Another in the area that looks great is VG. This is a McEwen company and looks to be consolidating the area outside of Goldcorp’s Dome Mine. VG is coming out with an initial resource estimate for Paymaster and with latest results looks very promising. The next company on VG’s list might be Plato Gold (PGC), as they have strategic claims surrounding G and SAS in the east side of the region. A Lexam director joined the Plato board and with a tiny $5M capex, could really move this winter. Saint Andrew’s Gold Fields (SAS) is a near term producer, don’t let the limited reserves fool you as this area is rich in gold with plenty more to be discovered
The NGM Garrison Property is a Teck castoff because of a limited high grade resource. The low grade resource is open to the east along strike for an undetermined distance. It is also open at depth as well, but NGM is concentrating on discovering the extent of the near surface mineralization to the east to fast track a possible open pit mine. After a nice consolidation below .40... NGM could be a sleeper pick. 1M oz's and growing with a capex of $20M looks like great value for potential. Even after such a large spike. NGM remains a buy on weakness. The results of the ongoing drill program are just too good to ignore.
7) The Beardmore Geraldton Gold Camp is starting to see renewed interest with Premiere Gold’s (PG) discovery, recent results of 5.49 g/t over 53 meters at Hardrock are very encouraging. Hardrock has a historical resource of 1.735M oz. Goldstone Resources (GRC) has a 30% interest in this project and has been hitting results at Key Lake and looks like a great way to get exposure to Hardrock project.
Kodiak Exploration (KXL) has been getting some interesting results as well. Compiled with the recent discovery near Hardrock that is open to the west towards Hardrock make the whole area in prospective. KXL.V looks like a good buy at current levels for a run. Kodiak has a huge land position in the area and has been hitting gold this summer on their other projects. If PG continues to develop the old Hardrock mine into a world class deposit. KXL and GRC both will do well this winter. KXL recently drilled 24.9 m @ 9.31 g/t au at West Geraldton and and 35m @ 2.21 g/t au at milestone. Kodiak also has acquired the grade 1.6M oz Migno Mine in Wawa. Total inventory of 1.83M oz’s.
Both really look ripe for a run next week as PG continues to breakout.
Like I have been saying for the last 2 weeks now, gold being at $1300 is a psychological level for these low grade projects and at current costs, the market will on mass start re-evaluating these low grade properties. At current gold levels, these junior explorers will rise now matter what POG does in the short term. It’s just that time of year and gold clearly above $1250 makes pretty much everything look profitable. I have a good mix of high grade opportunity as well low grade development projects. The low grade projects were much ignored in the past but have great potential to be very large gold deposits.
The Osisko model at Malartic works, and now the smaller low grade projects are coming into vogue. Real opportunity for discovery and growth lies with these properties because they were not extensively explored because of the low grade nature.
When looking for growth or discovery, you now have to go to these low grade deposits, find old mines or find areas that have very little outcropping and lots of overburden, but show potential. Less and less discovery is happening all over the world, so the best chance is where explorers ignored before because traditional methods could not be used or mining was just not economical at a lower price. Not saying gold in soil anomalies or gold in till anomaly exploration is new... but is much more intensive work to define and explore for than chipping a sample out of an exposed rock.
Areas that have heavy overburden that have seen little exploration within prospective mineral belts offer the best chance at a major grassroots discovery.
Another popular method of growth is to develop old mines and the resources. Especially the explorers in Ontario drilling old mines 1000 to 2000 meters deep following the LSG pattern for success by drilling deep.
I hope you see that Ontario is the place to be for gold exploration and development projects this winter.
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