In their search for future mines, many companies are turning to the Far North as existing resources are depleted. The North features favourable geology, mining-friendly policies and is much less explored than more established destinations to the south. Below, we provide an overview of eight companies focused on the northern portion of this continent.
Gold Terra Resource (TSXV: YGT; US-OTC: YGTFF) is completing a 12,000-metre first-phase drill program at the Campbell Shear target, on grounds optioned from Newmont (TSX: NGT; NYSE: NEM). These option grounds are just south of the past-producing Con mine, and adjacent to Gold Terra’s flagship Yellowknife City gold project in the Northwest Territories, 10 km from Yellowknife.
At approximately 800 sq. km, the Yellowknife City project covers an estimated 70 km of the Campbell Shear structure. The historic Giant and Con mines nearby generated a total of 14 million gold oz. from a 7-km section of the shear zone.
In March, Gold Terra announced assays for the first three holes drilled on the optioned grounds; drill highlights includef 4.4 metres of 10.85 grams gold per tonne and 1.1 metres of 2.35 grams gold per tonne. All three holes intersected the Campbell Shear. According to president and CEO David Suda, the option is the company’s highest-priority target. The first-phase, 12,000-metre drill program is testing a 1.2-km southern extension of the Campbell Shear, targeting vertical depths of 250 to 600 metres.
Assays for an additional three holes drilled on the optioned property, released in April, extended gold mineralization at the Yellorex zone within the Campbell Shear. Notable intercepts included 12.4 metres of 5.77 grams gold; and 1.5 metres of 5.69 grams gold.
Based on a September 2020 option agreement, Gold Terra can earn an initial 30% stake in the option grounds by spending $3 million on exploration over three years. In the second phase, Gold Terra can earn an additional 30% share by funding all expenses and completing a prefeasibility study with a mineral resource of at least 750,000 gold oz. on the Newmont property and 1.5 million oz. on the combined option and Gold Terra holdings.
If Gold Terra completes the earn-in phases, Newmont would have a one-time back-in right to earn a 20% share, for a 60% interest in the option property. A total resource discovery of at least 5 million gold oz. on this property would trigger the back-in right.
A March 2021 resource update for Yellowknife City defined a combined open-pit and underground inventory of 24.3 million inferred tonnes grading 1.54 grams gold per tonne, containing 1.2 million gold ounces. This resource includes the Crestaurum, Sam Otto, Barney and Mispickel deposits, within a 3-km radius, with both an open pit and underground mining component.
In March, Gold Terra completed a $2.9 million non-brokered private placement; the proceeds are allocated towards drilling a total of over 20,000 metres along the Campbell…