Flagship Project Location
Business Summary »
After the amalgamation with Smash Minerals, the redefined Prosperity Goldfields will boast a healthy treasury and top-notch exploration team to carry out aggressive drill programs in both the Yukon (option terminated) and especially Nunavut where significant gold has already been encountered at 3 separate locations. Competent rock at Kiyuk means fast drilling and more results. The company is targeting a 2-3 million ounce indicated gold resource at 3-4g/t and so far everything suggest straightforward metallurgy.
The Metal Augmentor Take »
Drill baby, drill! was the original plan for 2012 with first results from Kiyuk Lake expected in April and pretty much every month thereafter (including a smaller program at Whiskey), but instead the company took a step back at Kiyuk Lake to better delineate targets for a larger 2013 drill program. It also terminated its option agreement at Whiskey.
The presence of multi-gram gold over significant intervals at Kiyuk in several locations certainly looks promising considering the success rate on first pass drilling. Both Kiyuk (Nunavut) and Whiskey (Yukon) are right up the alley of Quinton Hennigh, an exploration geologist who should be a significant asset as an independent director for the type of exploration that both projects face at this early stage.
Not surprisingly the market has harshly punished Nunavut exposure due to problems at Agnio-Eagle’s Meadowbank mine and Newmont’s decision to put its Hope Bay development project on hold, but this may be overdone. Kiyuk is also located much further south in Nunavut, close to the Manitoba border.
News Reviews »
Prosperity Goldfields Reports 61.5 m at 3.3 g/t Au, Including 15.0 m at 6.7 g/t Au From Core Drilling at Rusty Zone, Kiyuk Lake, Nunavut
Metal Augmentor Analysis »
The problem with mining and in particular junior exploration right now, at least from an investor’s standpoint, is that no significant new money seems to be coming into the trade. Some stocks are being bought … but mostly with money … Read More →
Other Expert Analysis »
The goal this year is to “get a good indication of the quantum of mineralization” on the Rusty Zone, Fleming said.
“If I was grossly optimistic and cavalier, I would say to you that at the end of 36 months we have metallurgy done and a little bit of engineering, and we start to say that it looks like this thing would make it even though we are in a remote location.’’
“While the geological model for Kiyuk is still something of a mystery, the important takeaway from this release (Prosperity Goldfields News Release, May 6, 2012) is that the zone that produced the best intercept last year clearly has some legs. Of potentially equal importance, Prosperity Goldfields has established a spatial relationship between gold grades and magnetic accessory minerals.”