Yukon gold juniors seen as top takeover candidates
Canada’s original ‘gold bugs’ can be traced as far back as the late 1800s, when an estimated 100,000 prospectors piled into a region of the Yukon searching for a fortune in gold, an event that became known as the Klondike Gold Rush. More than a century later, Goldcorp’s acquisition of Kaminak Gold’s Coffee Gold project in that Territory could spark a different kind of ‘rush’ – that of Yukon gold project purchases. Today, we have identified a few Yukon gold juniors that could be targeted for takeover by a bigger gold miner.
Victoria Gold Corp. (TSXV: VIT): Victoria is developing its flagship Eagle Gold Project. A recent feasibility study estimates that the project contains about 2.7 million Proven & Probable ounces of gold at 0.67 grams per tonne (g/t). The expected CapEx is US$288 million with All-In-Sustaining Costs of US$639 an ounce. Eagle is also fully permitted with production forecast at 200,000 ounces per year. Victoria Gold had $62 million in cash in its Treasury as of November 2016.
Golden Predator Mining Corp. (TSXV: GPY): Golden Predator owns the 3 Aces project as well as the Brewery Creek project in the Yukon. On January 19, 2017, the Company released 3 Aces assay results that could be a game changer, including 7.54 metres of 32.86 g/t gold from a depth of just 16.76 metres. Newsletter writer Thom Calandra of the Calandra Report, in a note to subscribers, suggested that Golden Predator Mining could become the next Pretium Resources (TSX: PVG). “GPY’s 3 Aces is in my own rock review there several months ago presented a landscape of easily read and rich veins outcropping mostly at surface. The thing when it becomes a mine probably is a combination underground and open-pit operation. It is out in the boonies, but right on pavement to another former mine up there,” Mr. Calandra wrote. Golden Predator currently has about $9 million in cash and Eric Sprott owns about 14% of the Company’s stock.
Goldstrike Resources Ltd. (TSXV: GSR): The Company’s principal properties are its flagship Plateau South project, Plateau North and Lucky Strike. The Goldstack zone at Plateau South produced a drill intersection of 13.25 g/t gold over 17.5 metres true width. Goldstrike’s geologists believe the Company’s Lucky Strike property has strong potential to host several near-surface gold deposits, and is comparable to both the Goldcorp Coffee Creek deposit, located 26 kilometres to the southwest, and Kinross’ 1.5 million ounce Golden Saddle deposit, located 15 kilometres to the west, with similar geochemistry, geology, trend and grade of mineralization. In fact, the proposed haul road for the Coffee Creek deposit crosses the Lucky Strike property in two locations.
ATAC Resources Ltd. (TSXV: ATC): ATAC describes its 100% owned Rackla Gold Project as “Canada’s only Carlin-type gold district.” On January 17, 2017, the Company said it will spend $10 million in exploration this year, which will include approximately 15,000 metres of drilling. A drill hole at its Orion zone intercepted 61.29 metres of 2.75 g/t gold. ATAC also has about $14 million in its Treasury.