Yukon has long been an epicentre of mining, featuring the Tintina Gold Belt, the largest geological structure of its kind in the world. Within this framework lie the 171 claims of the Mount Anderson Project.
In 2011, Gold World Resources (TSX-V; GDW) signed an option agreement to own 100 per cent of the Mount Anderson Project. It is a Canadian junior exploration and development resource company with mining capability founded in 1981. Hermann Derbuch, chairman and CEO of Gold World Resources shares the optimism of those active in the Yukon, as five previous adits on the project testify to the abundance of minerals as does the record of the adjacent Tagish Lake Gold Project operated by New Pacific Metals.
The decision by Gold World Resources to switch to a Canadian project came as the result of developments affecting the company’s previous investments in China – shareholders had become concerned about political risk and taxation on foreign companies in China.
Mount Anderson’s Mineral Wealth
Extensive due diligence has encouraged the company. By taking 4,625 soil samples across the +32 km² property, it is clear that there is a 6,000 metres zoned area of mineralization extending from the Rob Skarn (E) to Fleming Skarn (W) with a gold-enriched core approximately 1,750 metres by 400 metres wide (there is no record or evidence of any past exploration at three of the six strong anomalies detected within the zoned area). The company describes the mineral wealth of Mount Anderson as gold/silver–poly-metallic, having identified the presence of more than 36 different minerals analyzed.
Three types of “intrusion-related” mineralization have been recognized, namely orogenic veins, epithermal gold associated with felsic volcanism and “fault-controlled.”
The 2009 and 2010, exploration programs executed by the property vendors comprised the prospecting, mapping and location of adits and several areas of high prospectivity; key were the results from a 110 metre-long surface ore shoot designated the “47-zone.” This zone contains the highest grades within the Whirlwind vein system, a mesothermal-style precious metal system that has been traced for +1,200 metres. Findings included an exceptional 1.2 metre belt containing 3.223 oz/t of gold, 64.16 oz/t of silver, 49 per cent lead and 6.47 per cent zinc; the weighted average for all samples from the vein were 1.2 oz/t gold, 37.6 oz/t silver, 24 per cent lead and 4.8 per cent zinc.
After refurbishment of an adit, which will lead to an earlier cash-flow than would brand-new drivage, Gold World Resources will have access to gold/silver deposits.
In recent weeks, Gold World Resources has reported on the arithmetical average for gold within 59 rock samples taken from “47-zone” weighing around 2.2 tonnes and assessed by AcmeLabs™ in Whitehorse, Yukon; the average for gold is 18.18 g/t. For silver the average over the 59 samples is 825 g/t by fire assay.
Specific to the gold samples, 54 out of the 59 revealed results higher than 5 g/t, 22 showed greater than 15 g/t and there were two showing more than 100 g/t. To confirm the results, ten of the highest gold samples will be analyzed by fire assay with gravimetric finish.
A Mining-Friendly Regime
Gold World Resources sets as its aims the exploration and development of commercially viable gold and silver resources within stable mining-friendly jurisdictions. Yukon has no territorial sales tax and a highly competitive taxation regime. Operations are also supported by the Yukon Mining Incentives Program (a fuel tax exemption for off-road vehicles) and a strategic industries development fund, which applies to mining. Careful selection of recognized contractors is another factor over which the company has total control.
On the physical side, operations at Mount Anderson take place a mere 55 kilometres from the Yukon capital, Whitehorse. There is also year-round access to the shipping facilities (distance of 180 kilometres) at Skagway, B.C. On the legal side, while there are 171 claims with which Gold World Resources is involved, the often complex aspect of native land claims is absent.
Further advantages come from the property’s location on the east flank of the coastal mountains; summers are hot, annual rainfall is 160 centimetres and snowfall is moderate. Topography is moderate to rugged at 915 metres – 1,720 metres, and while lower-level vegetation comprises Alpine valley stunted trees, the upper reaches are barren.
While placer mining has in the past yielded 20 million oz of gold from the Yukon, increased activity centers on finding bedrock gold. Besides upgrading of existing adits, which will facilitate extraction to 1,250 metres, the company wants to undertake an extensive drilling program to establish an NI 43-101 compliant resource.
Of crucial importance is the interest expressed by Chinese companies in the extracted minerals. Gold World Resources contemplates that this financial interest, when linked to the physical and geological aspects of the Yukon mining developments, could influence companies towards co-operating on constructing a local smelter, and processing the ore on site rather than shipping it back to markets such as China.
One further effect will be that regular mining will encourage employees to stay in the area, gaining expertise and training as each development picks up speed.