BullMarketRun.com Special Report
Eskay Camp, British Columbia
Blue skies have turned grey again in the Eskay Camp with some loud thunder this morning that may have been an omen of things to come on the exploration front.
The forecast, however, is calling for sunny, almost hot conditions by the beginning of next week. And “hot” is certainly an appropriate way to describe how the exploration scene is right now in this incredible multi-commodity district where the metal endowment is truly world class. Numerous companies are drilling for everything from high-grade Gold to Copper-Gold porphyry to precious metal-enriched VMS to the Golden Triangle’s first Nickel-Copper-rich sulphide system.
Colorado Resources (CXO, TSX-V), which recently secured Goldcorp (G, TSX) as a major new shareholder, has been the most active junior in this Camp since 2014. The company’s superb technical team, its efficiency on the ground and its massive land package (more than 600 sq. km) rich with known mineralization and deposit potential made CXO an ideal vehicle for Goldcorp to extend its reach into this burgeoning Camp.
Eskay Creek, Snip, KSM and Brucejack are products of exceptional Canadian exploration and mining ingenuity while the district has also been blessed by a plethora of new infrastructure in recent years, in part due to major investments by AltaGas (ALA, TSX).
Has the broader market woken up yet to the shear scale, mineral and grade potential of a Camp that covers more sq. km than the individual land masses of 75 countries?
BMR put that question to Colorado President and CEO Adam Travis at the CXO staging area, shared by several companies, near the McLymont Hydroelectric Facility – click on the arrow.
Colorado Catalysts
Colorado, which is expected to officially close its financing with Goldcorp any day now, has yet to report results from its summer drill program at KSP which began in early July. Given normal lab turnaround times these days, initial numbers should start to flow by early September. Significantly, KSP is now 100% owned by CXO after a deal earlier this month with Seabridge Gold (SEA, TSX) which has its hands full to the northwest with its Iskut Project (high-grade Gold potential) and to the east of course, with KSM which boasts the world’s largest reserves of Copper and Gold.
Rest assured, given what CXO learned from last year’s major drill program, KSP could flex its muscles in a very big way in September:
- The 53 drill holes at Inel last year had a 60% success rate in returning high-grade Gold intercepts (greater than 5 g/t)
- The 2016 drill holes at Inel tested just 1 of 10 surface Gold-in-soil anomalies and only to an average depth of 125 m;
- The Inel area hosts at least 6 other targets adjacent to the area drilled in 2016, and these targets range in size from 8 hectares to 18 hectares and returned average Gold values in soils from 0.66 g/t to 2.9 g/t Au
- Gold anomalous zones are not restricted to just the main contact between the volcanics and sediments in a semi-conformable nature as originally thought. What that means is that exploration targets are now known to occur from near-surface and to greater depths than anticipated. Mineralization is also hosted by a broader range of rock types than initially believed
- Multiple other project areas throughout KSP as indicated in the map above
- Keep in mind that the Snip mine, located 15 km northwest of Inel, hosted 1 million ounces of Gold within an overall strike length of 300 m and to 500-m depths while averaging 2.5 m in thickness
- The scale and geology of KSP has Goldcorp excited – regular investors should be, too
In addition to KSP and other holdings in the prolific Eskay Heart of Gold Camp, Colorado’s efforts at diversification over the past year have further strengthened the company with 2 new promising Gold properties – Green Springs in Nevada and Kinaskan in the Red Chris district. Kinasakan was expanded early this year when Travis cut an astute deal with Kaizen Discovery (KZD, TSX-V) to snatch the Castle Property contiguous to GT Gold’s (GTT, TSX-V) Tatogga Property where, of course, there has been a high-grade Gold drilling discovery.
It all adds up to what promises to be an exciting final 4 months of 2017 for Colorado Resources.
Note: John and Jon hold share positions in CXO.
