Kaminak Gold reported strong gold-mineralized intercepts Tuesday on its Coffee gold project in the Yukon.
The area looks promising for new gold resources which could bolster the wider Coffee project, now undergoing feasibility level studies.
The new area is called Kona North and it isn’t terribly surprising that it holds gold mineralization.
The area appears to be an extension of structures where Kaminak has outlined resources and is about 3 kilometres west of the Coffee project’s main resources comprising 467,000 ounces gold @ 1.77 g/t indicated and 2 million ounces gold @ 1.28 g/t Au inferred in oxide resources within 150 metres of surface which are being targeted for potential open pit mining and heap leaching.
The new intercepts are near surface and include 3.55 g/t Au over 28 metres were associated with anomalous gold-in-soil concentrations that have guided so much of Kaminak’s exploration programs at one of the more important gold discoveries – the broader Coffee project – in the Yukon.
While the Kona North area won’t, at least at this stage, revolutionize Kaminak’s Coffee project it could but more shine on economics if they add ounces at decent grades.
Kaminak has said it aims to spend about $30 million on its feasibility work which will include extensive infill drilling to upgrade inferred resources to indicated resources. Earlier this year it outlined the Coffee project in a preliminary economic assessment. In that study it projected 167,000 ounces gold in average yearly production over an 11 year minelife a 26 percent IRR, after tax, assuming $1,250/oz gold and capital costs of $305 million.