Leaders in Yukon’s New Rush
TSX: GPD
Volume 15 | Number 2 | Special Edition Yukon Vancouver, British Columbia www.ReportOnMining.com Planning for Profits - Report on Mining edition is published four times a year by Fusion Publishing Inc. All rights reserved. Any reproduction or duplication without prior written consent of Fusion Publishing Inc. is strictly prohibited. Published by Fusion Publishing Inc. Canadian Office Fusion Publishing Inc. #317 – 1489 Marine Dr. West Vancouver, BC Canada V7T 1B8 1.888.925.0313 (Toll Free) USA Office Fusion Publishing Inc. 145 Tyee Dr. Pt. Roberts, WA USA 98281-9602 1.888.925.0313 (Toll Free) Publisher Terry Tremaine
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his issue is devoted to an alliance of mining companies whose efforts are focused in the Yukon, the first of Canada’s northern territories to make the top 10 of the Fraser Institute’s list of mining friendly jurisdictions. This is no easy feat at a time when a number of Canadian jurisdictions are being confronted with uncertainty as a result of First Nations’ issues. This group of companies is unusual in that rather than simply being an association of companies whose efforts are geographically similar and were able to see a need to network. This group recognizes that in the current equities market a synchronized promotional effort is likely to increase the overall results for the whole to a far greater extent than individual efforts could hope to achieve. I would suggest this is a good group to watch closely as current market conditions are tending to undervalue mining companies in general. It’s possible their combined effort is going to bring a perspective to the marketplace that will result in market values which actually reflect reality.
Associate Publisher & Editor Connie Ekelund Production Manager Christie Smith Contributing Editors Robert Setter Account Managers 1.888.925.0313 Terry Tremaine Maureen O’Brien Marie Richards Garry Ferris
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Yukon Gold Mining Alliance
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Yukon Jurisdiction
YUKON 8
Alexco Resource Corp.
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AM Gold Inc.
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Golden Predator Corp.
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Northern Freegold Resources Ltd.
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Redtail Metals Corp.
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Victoria Gold Corp.
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Yukon Gold 2012 | Planning for Profits | Report on Mining 3
Yukon Gold Mining Alliance
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ukon Gold Mining Alliance is a non-profit marketing Mr. McIntyre explained some of YGMA’s activities; group created with the goal of supporting and “We plan trips to financial centres months in advance to promoting gold explorers and miners operating ensure we can connect with as many key investment fund in Canada’s Yukon Territory. YGMA promotes common managers and large corporate investors as possible. Over values exemplified by member companies including the extended luncheon, each member CEO provides their environmental responsibility, effective labour relations, corporate presentation and attendees learn about several community development and corporate sustainability. investment opportunities by attending just one event.” The current membership list comprises Alexco Resource These presentations have a unique benefit according Corp., Victoria Gold to Mr. McIntyre, “The Corp, Red Tail Metals big advantage is the We plan trips to financial centres months in Corp., Golden Predator presence of Yukon Corp., AM Gold Corp. Government officials advance to ensure we can connect with as many and Northern Freegold such as the Deputy Resources Ltd. Founding Minister of Economic member company CEOs sit key investment fund managers and large corporate D e v e l o p m e n t . on the Board of Directors Potential investors and work together to essential investors as possible....each member CEO provides get spearhead the marketing information direct initiatives. from the source.” Mr. their corporate presentation and attendees learn To be eligible, YGMA McIntyre pointed member companies must out this approach about several investment opportunities.... have a NI 43-101 in place is very effective delineating measurable as evidenced by mineralized assets or have presenting companies significant expenditures in exploration or development noting share price increases right after an event is held. activities in Yukon. Yukon remains underexplored yet YGMA is planning 2012 presentations for San Francisco, is home to a disproportionate number of massive and Chicago, Atlanta, Boston and New York before taking their globally significant mineral deposits. It is the view of YGMA message to European destinations this summer and fall. that Yukon is a region whose time has come as they market On the home front, YGMA is sponsoring the Yukon Mining the Leaders in Yukon’s New Rush. & Exploration Discovery Camp in Whitehorse on May 10 According to YGMA Board Chair Rob McIntyre, “YGMA through the 12 and the Gold Show being held in Dawson is concerned solely with marketing. Our goal is to market City on May 18 and 19. member firms and the Yukon region to increase awareness Yukon is entering a new economic reality, with increasing and raise capital for the Alliance member companies.” exploration discoveries and new producing mines heralding a very bright future indeed. Yukon Gold Mining Alliance welcomes investors to join them on our tours and at events. For more information, please visit www.ygma.ca.
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Yukon Jurisdiction
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n the recently published Fraser Institute’s annual report and survey of mining executives, Canada’s Yukon Territory cracked the top 10 in the world for the first time. Those mining companies with Yukon projects were aware of Yukon’s competitive advantages; however this high profile recognition by a respected third party increases their ability to attract investment to their companies. The rankings are based on a compilation of results from several categories, such as “Political Stability” in which Yukon scored 6th highest in the world. These rankings are an endorsement of Yukon Government for acting in a fair and timely fashion throughout the permitting and regulatory process. With certainty around processes, timelines and land claims, among other factors, Yukon is correctly being recognized as a top mining jurisdiction. To view the full report visit: www.fraserinstitute.org
“There is much more to Yukon’s rise as a mining destination than can be captured in a survey, no matter how well constructed.
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6 Planning for Profits | Report on Mining | Yukon Gold 2012
There is much more to Yukon’s rise as a mining destination than can be captured in a survey, no matter how well constructed. Yukon has always had the advantage of a pro mining culture and rich mining history dating back generations. Unlike the 1800s though, today’s advanced infrastructure, effective government policies, and First Nations cooperation has Yukon people excitedly anticipating increased prosperity for all. According to Mr. Rob McIntyre, Chair of Yukon Gold Mining Alliance, “The Yukon has evolved in all areas critical to hosting an economic resurgence, including settled First Nations Land Claims, development of modern and efficient regulatory regime, and political independence from Federal control. The local political climate is one of cooperation with industry, community, and all stakeholders to ensure projects move forward in a timely fashion with the common goal of jobs and economic growth.” Yukon’s stable regulatory environment stands in contrast to some Canadian jurisdictions that have recently slipped in the rankings primarily due to government inactivity on key issues. The Yukon and Canadian Governments along with Yukon First Nation’s created a “Made in the Yukon” environmental assessment process known as the Yukon Environmental and Socio-Economic Assessment Act. The Act, or YESAA as it is typically referred to, sets out methodologies for assessing both the environmental and socio-economic effects of Yukon-based mining projects.
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The core of YESAA is delivery of an assessment process that works effectively for all residents and stakeholders with the goal of process transparency, impartiality and inclusion by assisting all process participants in achieving universal goals. Through effective industry associations like the Yukon Chamber of Mines, the Klondike Placer Mining Association and the Yukon Prospectors Association, the mining industry is engaged in holding government to account to ensure the process retains its’ fairness, openness and timeliness. With 11 of 14 Yukon Territory land claims settled, First Nation’s cooperation is unprecedented and a huge positive since clearly defined land ownership removes much uncertainty from the exploration risk/reward equation. These agreements effectively stabilize and underpin planning processes, the importance of which cannot be understated in setting the Yukon region apart from other jurisdictions where political instability and First Nation’s mining concerns continue to interrupt exploration and mining operations.
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Yukon infrastructure is well developed with year round water and power resources easily accessed even in more remote areas. There is an extensive road network that interconnects the small and major communities such that any miner or explorer is never far away from a major transportation route. Accessible year round ocean ports for shipping to Asia are close by in neighbouring Alaska. YGMA member companies also work alongside government and the local community in labour initiatives that lead to increased employment for Yukoners as they fill the primary and secondary jobs being created as the mining industry grows. With a rich history and heritage of mining, welldeveloped infrastructure and the support of stakeholders at every level, Yukon’s time has come to take centre stage in the mining world. With YGMA’s sustained marketing efforts, any lingering misconceptions surrounding Yukon are being replaced with the true story of a region poised for growth on all levels. For additional information visit their website at www.ygma.ca
Yukon Gold 2012 | Planning for Profits | Report on Mining 7
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lexco Resource Corp. is located in Canada’s Yukon Territory and operates the Bellekeno silver mine with a 2011 production of 2 million ounces of silver. Alexco owns the vast majority of the historic Keno Hill Silver District, which contains more than 35 historic silver mines and is one of the highest-grade silver districts in the world. The Bellekeno silver mine, with a production grade of approximately 900 grams per tonne silver, commenced commercial production in early 2011 and is currently the only primary silver mine in Canada. Alexco is working diligently to both explore and unlock value in the historically silver-rich Keno Hill District and plans to ramp up production over the coming years with a goal of 7-10 million ounces of silver annually to 2020. Alexco is unique among its peers; in addition to being a full force-mining firm, they also provide environmental services, remediation technologies and mine reclamation and closure expertise to both government and industry. These services are carried out through the Alexco Environmental Group; a 100%-owned environmental services division.
For the last quarter of 2011, Alexco reported silver production of 608,093 ounces all from the Bellekeno mine. In fact, silver production increased 21%, mine output increased 66% and mill throughput increased 5% as compared to the previous quarter. In 2011, the first full year of mining operations, Alexco mined 2,020,695 ounces of silver, 16,454,395 pounds of lead and 7,219,740 pounds of zinc. The Company also expects to keep the recent quarter over quarter trend intact with increased silver and base metal production in 2012 by adding two more underground mines in the Keno Hill Silver District. The Company is also planning to increase surface and underground exploration drilling programs by more than 25% in 2012. According to Alexco’s President and CEO Mr. Clynton Nauman, “Managing risk is one of our key objectives. Keno Hill comes with historical liabilities and we carefully monitor and manage those risks with our Environmental Group.” On the mining side Mr. Nauman explained, “Safety is integral to everything we do, it is the most important part of our operations activity and we strive to build a company with a strong safety culture which is reflected in our safety record. Our Keno Hill operations group have not incurred one single “lost time” accident in the past year.”
In discussing working with the First Nations, Mr. Nauman was clear that a strong working relationship with the First Nations was integral to everything Alexco does and plans to do. He went on to say, “We are part of the community and have put in place specific arrangements with the First Nations people. Our agreements ensure that First Nations have employment and other work and contracting opportunities on a forward planning basis. To the extent possible, we also like to help First Nations start or participate in businesses to provide the services we need. I believe we have created a solid working relationship with the community in all aspects.” Mr. Nauman articulated Alexco’s vision and plans for unlocking value, “The Keno Hill Silver District was shut down some 20 plus years ago, however, a great deal of mineral value was left in the ground. We have since come along and been very successful at finding those resources and are now extracting them in the most efficient manner possible.” He also pointed out that the Company’s commitment to the environment added value. Leaving the landscape as good as or better than when they arrived is the lasting legacy and that value to the community cannot be understated. As for Alexco’s Yukon location, Mr. Nauman stated, “I am thrilled at the newly published Fraser Institute rankings that place the Yukon in the top 10 best mining jurisdictions on the planet. Mining is expanding here and the various Yukon agencies and government have truly done an outstanding job of stewardship and resource management. Simply stated, we do not have the same investment risks found in other jurisdictions around the world.” www.ReportOnMining.com
Mr. Nauman noted the current $8 share price was not reflecting the true value of Alexco considering the upside potential of the company and the global macro economic landscape that includes a rising silver price. He said, “Management are always striving to maximize share price for investors. We have a highly committed team that are both personally and financially invested in carrying out the Company objectives. My personal interest is likely greater than anyone’s since in addition to leading the Company I am also the biggest private shareholder.” There are numerous reasons to invest with Alexco; the silver bull market, the only primary silver producing mine in Canada, the clearly detailed growth plans, the Environmental Services Division, but as Mr. Nauman stated, ”Out of all these factors perhaps the biggest consideration is jurisdictional safety as investors understand they will not be subject to unexpected externalities.” Alexco has just 65.2 million shares outstanding fully diluted, earnings of $0.06 per share on revenue of $45,102,000 and a resulting net income of $3,498,000 after just six months of commercial silver production in 2011. Alexco makes money and plans to continue doing so as they systematically execute the corporate plan in the resource rich Keno Hill Silver District. Alexco Resource Corp. trades on the TSX under the symbol AXR and on the NYSE–AMEX under the symbol AXU. For more detailed information visit their website at www.alexcoresource.com Alexco Resource Corp. Suite 1150 - 200 Granville Street Vancouver, BC Canada V6C 1S4 Phone: 1.604.633.4888 Fax: 1.604.633.4887 info@alexcoresource.com www.alexcoresource.com TSX: AXR Year Hi/Lo: $9.75/$6.10 Yukon Gold 2012 | Planning for Profits | Report on Mining 9
AM
Gold is a junior resource company exploring for precious and base metals, with the goal of expanding the current inferred resource estimate at their Red Mountain Property located in Canada’s Yukon Territory. AM Gold is also exploring gold/copper deposits at their Pinaya Project in Peru, South America. The Red Mountain Project is 55 kilometres northwest of Mayo in the Tintina Gold Belt that traverses the central part of the Yukon. The belt houses a number of producing gold mines as well as exploration, emerging and developing properties. Red Mountain is comprised of 183 contiguous quartz claims totaling approximately 3,600 hectares. AM Gold has an 80% interest in 52 claims, subject to a net smelter return royalty, with an option to acquire 100% ownership of such claims. The other 131 quartz claims are 100% owned by the Company.
The history of Red Mountain dates back to the 1920s when Treadwell, who subsequently discovered the high grade silver deposits at Keno Hill, first settled at Red Mountain and high graded gold and silver from an adit into the mountainside. The adit has since collapsed and requires rehabilitation to access but AM Gold believes exploration may yet uncover the Treadwell vein system and other high-grade systems at Red Mountain. A decade ago several small drill programs totaling 4,000 metres were drilled at Red Mountain but work was halted due to low gold prices with no resource being defined. In 2010, AM Gold commenced aggressive exploration at Red Mountain. With an approximate $5 million dollar exploration budget AM Gold drilled 36 core holes in the 2010-2011 seasons totaling approximately 12,000 metres. This drilling resulted in the Company defining an inferred resource estimate of 127 million tonnes grading 0.48 g/t gold, approximately 1.95 million ounces of gold using a cut-off grade of 0.3 g/t Au (see the Company’s news release dated March 8, 2012).
Mr. Fiorino, CEO of AM Gold, commented, “We are hitting above our weight class. We have efficiently defined a sizeable inferred resource estimate in a very short timeline with a modest exploration budget of approximately $5 million. Conversely, other exploration companies operating in the Yukon with exploration budgets 10 times the size of ours have been unable to define a NI 43-101 resource on their respective properties in a comparable time frame to date.” The reality is very few exploration companies discover a 1 million ounce gold deposit (in any category) and an even smaller percentage of exploration companies discover a gold deposit larger than 1 million ounces (in any category). The Red Mountain resource has already reached approximately 1.95 million ounces of gold (all inferred) and is open in all directions and at depth. The current inferred resource within the wire frame has been projected to only 300 metres in depth while the deepest hole reached a true depth of over 520 metres from surface. This deep core hole numbered ICE 10028 assayed approximately 527 metres @ 0.75g/t gold starting at surface and ending in mineralization (see the company’s news release dated October 5, 2010). Preliminary metallurgy is positive with the potential for a heap leach scenario. Mr. Fiorino on staying the course: “We remain focused on doing our talking through the drill bit. We like where we are now, open in all directions with the potential to expand the current inferred resource estimate.” AM Gold has added approximately one ounce of gold (inferred resource class) for less than $3 spent into the ground and is a pure gold play with silver mineralization. One notable fact is that every hole drilled by AM Gold has www.ReportOnMining.com
encountered mineralization. On the drilling Mr. Fiorino noted, “Drilling has produced consistent assays of gold mineralization starting at surface.” These facts alone bode well for future plans at Red Mountain. The Red Mountain gold project is located in the First Nations land claim region of the Na Cho Naik Dun. The Na Cho Naik Dun is among just a handful of over 100 First Nation land claims that have settled with the Canadian government and the Na Cho Naik Dun have repeatedly demonstrated support for responsible mining in their region. Their land claim region houses one silver mine that recently went into production with a producing gold mine expected within 18 months. Many may think the Yukon is a remote region but that is another misconception. Infrastructure is developed at Red Mountain with power from the Mayo Hydro dam 54 kilometres away and road access from the town of Mayo 50 kilometres away. Water is accessible within one kilometre and an airstrip is located just two kilometres from the site. The Yukon mining address is now finally being recognized as a favorable mining jurisdiction in which to operate. Mr. Fiorino on the future of Red Mountain: “We will center our attention on ground work, focusing on higher grade areas through geochemistry and interpretation of the VTEM geophysical survey we’ve recently flown. The plan is to identify key targets by comparing specific geophysical signatures of primary targets in conjunction with areas already drilled that show mineralization. We believe that further exploration work has the potential to expand the current inferred resource estimate.” AM Gold trades on the TSX-V under the symbol AMG with a 52 week trading range of $0.12–0.55 with recent trading just under the book value of 0.15. There are currently 68 million shares outstanding with institutional ownership at approximately 30%. For more information visit their website at www.amgold.ca.
AM Gold Inc. Suite 605 – 369 Terminal Ave. Vancouver, BC Canada V7X 1M5 Phone: 1.604.646.0067 Fax: 1.604.692.0017 info@amgold.ca www.amgold.ca TSX: AMG Year Hi/Low: $0.55/$0.115 Yukon Gold 2012 | Planning for Profits | Report on Mining 11
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olden Predator Corp. (TSX: GPD), Yukon’s Gold Company, is a publically traded gold explorer focused on advancing its 100% owned road-accessible Brewery Creek Project towards production. Golden Predator has one of the largest controlled land positions in the Yukon and is committed to strong relationships with First Nations and local communities. The Company is led by a talented team with extensive experience in mine permitting, financing and development.
The Golden Predator team is headed by William Sheriff, Chairman and Chief Executive Officer, who was a cofounder and the Chairman of Energy Metals Corp., a company which was sold to Uranium One for $1.8 billion in 2007. Joining Mr. Sheriff is John Legg the Company’s President, with more than 15 years experience in the mining and legal profession; and an accomplished board including proven mine builders Barry Rayment and Thomas Skimming. Other board members include William Harris, Blair Shiletto and the former Premier of the Yukon, Piers McDonald. Operational expertise is led by Michael Maslowski, the Company’s Chief Operating Officer who joined the Company from Coeur Mines Corp and Randy Peterson, the Company’s resident Mining Engineer charged with reestablishing gold production at Brewery Creek. Mike Burke, recently Head of Mineral Services for the Yukon Geological Survey is the Chief Geologist and leads a strong team of Yukon geologists. Rounding out the Yukon team is the VicePresident of First Nation Relations, Janet Lee, who guides the Company’s efforts to build strong relationships and business opportunities to create sustainable development for First Nation organizations.
The team is dedicated to re-establishing production at its brownfield Brewery Creek Project, 55 kilometres due east of Dawson City, Yukon which is accessible by paved all-weather highways and road. The Brewery Creek Mine produced 278,484 ounces of gold from 1996 to 2002 when, with gold prices below $300 per ounce, operations were shut down. All operating permits were maintained and are in effect through 2021. Golden Predator has advanced the project by making three new discoveries since December 2010. These new discoveries combined with the unfinished mine plan from the former operator, could potentially allow for an extended mine life in excess of 10 years, once operations are re-established. The Company plans to announce an interim NI 43-101 Resource Estimate before May 1, 2012 that incorporates the 2011 drilling program. It is also expected that 2012 drilling will culminate in an updated resource estimate in the fourth quarter of 2012. The Q4 resource estimate will provide the foundation for a Feasibility Study focused on incorporating the new discoveries into a new mining plan.
With the potential to re-start and significantly increase production at Brewery Creek, combined with a pipeline of advanced road accessible projects and new discoveries ready to be advanced, Golden Predator is well-positioned for continued growth. Golden Predator’s shares trade on the TSX under the symbol GPD. For more detailed information on Golden Predator visit their website at www.goldenpredator. com or email info@goldenpredator.com Golden Predator Corp. 1100 - 888 Dunsmuir St. Vancouver, BC Canada V6C 3K4 Phone: 1.604.648.4653 info@goldenpredator.com www.goldenpredator.com TSX: GPD Year Hi/Lo: $1.46/$0.52
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Yukon Gold 2012 | Planning for Profits | Report on Mining 13
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orthern Freegold Resources Ltd. is a rapidly growing gold and copper resource company based in Canada’s Yukon Territory. The Company was recently added to the highest tier OTC market in the United States, the OTCQX, and trades under the symbol NFRGF. The shares also trade on the TSX.V under NFR and on the Frankfurt Exchange under the symbol 8N6. The one-year trading range is $0.18-0.39 recently trading in the mid .20s presenting the astute investor a great entry point. The book value of NFR is $0.39, and it recently doubled its gold resource. Given that more resource growth is expected following this year’s exploration program, Northern Freegold can best be summed up as an exceptional opportunity. Institutional ownership includes renowned gold funds such as Sun Valley Gold, Sprott Asset Management and RBC Global Precious Metals fund. NFR has analyst coverage from Michael Fowler at LOM with a buy rating and a $1.44 target price. The company had $3.6 million cash as of December 31, 2011 and is poised to move forward as they advance the 100% owned district scale Freegold Mountain Project. The NFR project is near multi-million ounce deposits in the Big Creek fault such as Western Copper’s Casino deposit and Capstone’s operating Minto copper mine. The NFR project is 200 kilometres north of Whitehorse, Yukon’s capital city. The project is a gold dominant porphyry system with copper, silver and molybdenum mineralization and has excellent infrastructure with a government maintained access road into the property. The nearest commercial power access at the Minto mine is just 30 kilometres from their property.
The recently hired President and CEO, John Burges, brings expertise in small cap public companies and a history that includes Deutsche Bank, Merrill Lynch and running commodity companies. Mr. Burges stated, “I have a blend of operational and investment experience.” Since Mr. Burges arrival he has been focusing on increasing investor’s awareness of this under-valued asset. Mr. Burges elaborated, “A key market objective was to raise the Company’s visibility, minimize obstacles to investors buying NFR while creating more opportunities for institutions to acquire the stock. Getting the Company trading on the QX in America has certainly helped to grow liquidity.” He went on to say, “Before joining, NFR was trading around 20,000 shares daily, but is now averaging around 200,000 per day making it easier for investors to buy in the market.” The 2012 program will focus on building the resource and advancing project milestones. Northern Freegold already boasts a superior leverage position to the gold price at some $279 of gold equivalent resources in the ground for every dollar invested in NFR stock. Mr. Burges explained the opportunity, “We have a gold dominant porphyry deposit which is a bulk tonnage open pit type deposit. Projects like this need scale which we now have, as recently we doubled the Company’s tonnage, adding significantly to our gold resource. As both deposits remain open there exists great potential to grow resources rapidly.”
Mr. Burges on the deposit, “What is exciting our geologists is the emerging picture of a large gold/copper district extending 8-9 kilometres as evidenced by a geophysical anomaly and coincidental gold and copper soil surface showings.” The NI 43-101 data on the Nucleus Deposit outlines 1.1 million ounces of gold indicated with 0.6 million ounces of gold inferred along with 68 million pounds of copper indicated and 62 million pounds inferred. NFR filed a NI 43-101 resource for the nearby Revenue deposit on March 5, outlining 1.1 million ounces gold, 10.2 million ounces of silver, 287 million pounds of copper, and 90 million pounds of molybdenum in the inferred category. Mr. Burges is optimistic about Revenue. “We have seen low finding costs of between $1–2 an ounce driven by 100-300 metre intercepts. Revenue remains open in all directions and at depth and we only included the eastern half of the Revenue target in our new resource. Low hanging fruit remains on the west and to the north which we plan to drill in 2012.” The Company also announced in February the commencement of metallurgical testing of material from their Nucleus and Revenue deposits. The tests will focus on key metallurgical sub-composites identified by NFR with the program expected to run for three to four months. The goal of the test work is the creation of a metal recovery flow sheet to determine the economic picture around metal extraction, (gold, copper, molybdenum, silver), from the Revenue and Nucleus deposits. The testing is being conducted by SGS Canada Inc., a global leader in metallurgical and mineralogical services with a 70-year history and track record.
Value is the word that best describes Northern Freegold today. The Company trades at ~$8 enterprise value per gold ounce or $4 per gold equivalent versus its peer group at approximately $25-30. Moving the Company towards production with the next key milestones of metallurgical testing and an external scoping study or Preliminary Economic Analysis report should help de-risk the project and prove up the economic viability. Typically, valuations can expand to ~$50 per ounce post PEA. Given NFR’s existing gold resource and their ability to advance to these project milestones over the next 12 months, there appears to be significant upside potential for the stock. In Mr. Burges own words, “I joined because I became convinced that NFR’s low valuation was not warranted. The Yukon is one of the top 10 jurisdictions globally to mine in. Our grades are similar to many operating porphyry mines and we have excellent infrastructure with a great deal of upside exploration potential to add to our existing gold and copper resource.” Mr. Burges could not pass up such a stellar opportunity. It may be wise to follow his lead. For more detailed information visit their website at www.northernfreegold.com.
Northern Freegold Resources Ltd. Suite 900, 475 Howe Street Vancouver, BC Canada V6C 2B3 Phone: 1.604.893.8757 Fax: 1.604.893.8758 Julie Hajduk: 1.604.893.8757 www.northernfreegold.com TSX-V: NFR Year Hi/Low: $0.39/$0.18 www.ReportOnMining.com
Yukon Gold 2012 | Planning for Profits | Report on Mining 15
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edtail Metals Corp. (TSX-V: RTZ) operates in the Yukon and is focused on the acquisition and development of base metal projects with significant precious metal content. Redtail Metals recognizes a significant opportunity to accumulate undervalued precious metal rich base metal projects and establish a premier position in the Yukon at a time when the competition is myopically focused solely on gold and silver. Redtail also recognizes the benefit in working with First Nation organizations and governments to create significant opportunities by working together on projects of interest. With this diversified commodity approach, First Nation involvement, less than 20 million shares outstanding along with a highly capable management team, this Yukonbased explorer is well positioned to benefit from rising base metal demand in Asia and other developing areas around the globe.
The Company is currently assessing the road to development at its flagship Marg Project. The Marg Project has a NI 43-101compliant Indicated Resource of 3,960,000 tonnes of 1.57% copper, 1.92% lead, 3.90% zinc, 49.40 g/t silver, and 0.79 g/t gold and an Inferred Resource of 7,780,000 tonnes of 1.12% copper, 1.36% lead, 2.89% zinc, 34.88 g/t silver, and 0.52 g/t gold, both with a 0.50% copper cutoff (A. A. Burgoyne P.Eng, M.Sc and G.H Giroux P.Eng, MASc 2011). The Marg property is highly prospective for additional discoveries and is located 40 kilometres via a winter road from Alexco Resources’ Bellekeno Mine and Mill. The Company also controls an additional nine projects throughout the Yukon and is evaluating additional acquisitions.
The Chairman of Redtail Metals is Blair Shilleto, who has more than 35 years of experience in the mining sector and is currently an advisor to the resource investment sector for European based resource asset managers. Mr. Shilleto was raised in Mayo, Yukon and is a member of the Na-cho Nyak Dun First Nation. John Legg and Bradley Thiele provide a wealth of experience to round out the board. Mr. Legg, a securities lawyer, has over 15 years experience in various management capacities within the minerals industry including President of Golden Predator Corp (TSX: GPD). Mr. Thiele, a Professional Engineer, is an independent mining consultant who was most recently in charge of the development of the Meadowbank Gold Mine in Nunavut, Canada. The Company’s newest board member is Toby Pierce, formally of GMP in London, U.K., to round out the team. With accomplished management and a focused Yukonbased technical team in place along with a portfolio of quality projects highlighted by the advanced Marg Project, Redtail Metals and its tight share structure offer an outstanding opportunity for growth in the Yukon. Redtail Metals’ shares currently trade on the TSX Venture under the symbol RTZ. Shares were recently trading at $0.20 and have reached a 52-week high of $0.61. For more information on the progress of Redtail Metals please visit www.redtailmetals.com or email info@redtailmetals.com www.ReportOnMining.com
Redtail Metals Corp. 1100 – 888 Dunsmuir St. Vancouver, BC Canada V6C 3K4 Phone: 1.604.648.4653 info@redtailmetals.com www.redtailmetals.com TSX V: RTZ Year Hi/Low: $0.61/$0.165 Yukon Gold 2012 | Planning for Profits | Report on Mining 17
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ictoria Gold Corp. is a mine development company focused on bringing the Eagle Gold deposit into production in 2014/2015, producing 212,000 ounces of gold annually in the first five years at an operation cost near U.S. $542 per ounce, and an average 192,000 ounces of gold annually over the life of the mine. Over the past two years, through exploration, the Eagle Gold deposit has grown from 2.7 million ounces to 6.3 million mineral resource ounces and has the potential to grow in excess of 10 million ounces. With an increasing resource, the future Eagle Gold Mine has the potential for expansion to greater than 300,000 ounces per annum. Additionally, Victoria has three advance stage exploration programs in Nevada, any of which have the potential to become economic mines and add to Victoria’s global 7.7 million ounce gold inventory. Victoria’s flagship Eagle Gold Project is situated on the Dublin Gulch property in the Canadian Yukon. The 100%-owned 650 square kilometre Dublin Gulch property is centrally located in the Mayo Mining District. The Eagle Gold deposit contains 4.8 million ounces of gold (Indicated) with an additional 1.49 million Inferred gold ounces on a NI 43-101 compliant basis. Victoria Gold continues to explore the Dublin Gulch property which in addition to the Eagle Gold deposit, hosts a 21 kilometre band of significant multi-element mineralization known as the Potato Hills Trend.
The future Eagle Gold Mine will be a conventional open pit, 3-stage crush, valley leach operation and has excellent infrastructure including year-round road access, commercial grid power 20 kilometres from site, and an airstrip 80 kilometres south of the project located at the community of Mayo, Yukon. In addition, the Company has constructed a 100-person all-season camp at the Eagle Gold Project site. A recently completed Feasibility Study targets initial production in the fourth quarter of 2014. The two-year construction phase will commence in the second half of this year with initial capital and pre-strip costs estimated at $400 million. With Probable Mineral Reserves of 91.6 million tonnes of ore grading 0.78 grams per tonne (g/t) there are 2.3 million ounces of gold with an initial 5-year projected production of 212,000 ounces per year and operating cost of $542 per ounce. In addition, the environmental assessment and permitting process is well underway and expected to be completed later this year. According to John McConnell, Victoria Gold’s President and CEO, “By 2015, our first full year of production, we expect to produce roughly 200,000 ounces of gold with resulting cash flow exceeding $250 million per year. This is a very robust project with significant early cash flows and tremendous upside for future mine expansion.” Mr. McConnell’s projections do not factor in the upside exploration potential or the Nevada assets. Victoria Gold shares were recently trading in the mid $0.40’s near the low end of the 52-week $0.32 to 0.97 range.
Photos: Top: The switchback roads indicate where the Eagle Gold pit will be located. Above: Analysts on an site tour view the camp from the top of the Eagle Gold deposit. Facing page: 100-person camp. All photos: www.archbould.com.
Victoria recently appointed Chief Operating Officer Mr. Andy Kaczmarek, a heap leach mine expert with 35 years global mining experience. His most recent position was with Anatolia, now Alacer Gold, where he led the development of a heap leach operation in Turkey. Previously Andy held senior positions with gold producers Kinross and Gabriel Resources. Mr. McConnell commented on Victoria Gold’s team, “It is very rare to have such a great team of seasoned professionals at this stage of a company’s development.” In fact, the team Mr. McConnell has assembled represents over a century and a half of top-quality mining talent and expertise. www.ReportOnMining.com
All six analysts covering the stock are bullish on Victoria Gold Corp. rating it a buy or strong buy. Considering the stock enjoys strong shareholder support with institutional ownership currently at 65% of shares outstanding and insider buying nearing the million-dollar mark in the last year alone, bullish signs abound. Victoria Gold Corp. also has $30 million cash on hand, mine construction underway, 7.7 million ounces of gold inventoried, and property locations in some of the top mining jurisdictions globally. With shares trading near the 52 week low, the value is obvious and the timing is right. Victoria Gold Corp. trades on the TSX-V under the symbol VIT. For more information visit their website at www.vitgoldcorp.com.
Victoria Gold Corp. 584-1055 Dunsmuir St. Vancouver, BC Canada V7X 1K8 Phone: 1.604.696.6605 John McConnell: john.mcconnell@vitgoldcorp.com www.vitgoldcorp.com TSX-V: VIT Year Hi/Low: $0.97/$0.32 Yukon Gold 2012 | Planning for Profits | Report on Mining 19