Mining Market Watch Journal

 

Sector Insight & Corporate Overviews

 

of Quality Mining Companies

O Free Newsletter/Membership

Name:

Email:

 

 

 

 O Home Page   O About Us   O Stock Quotes & Research   O Upcoming Sector Events   O Mining Organizations & Schools   O Mining Terms - Glossary  O What is NI-43-101?

Feature article June 28, 2016:

  

WestKam Gold Corp. prepares for 10,000t bulk sample, last two bulk samples averaged 26.5 g/T and 16.28 g/T Gold

   

WestKam Gold Corp.

(TSX-V: WKG)  (US: ERRCF) (FSE: OUH2)

 

WKG.V is due for near-term upside share price revaluation to reflect the large inherent value of gold at the Company's 100%-owned Bonaparte Gold Project, 50 km NW of Kamloops BC;

  • Permitted for 10,000 tonne bulk sample using existing decline, through the same vein system that yielded 26.5 g/T Gold from bulk sample in 1994 (on 3,700t), and 16.5  g/T from bulk sample in 2010 (on 364.6 dry short tons).

  • The Bonapart Gold Project hosts a series of well-developed shear/fracture zones hosting near-surface quartz veins. Drilling has encountered exceptionally high-grade gold intersections in the 'Discovery Zone'.

  • Additional info from drilling indicates a minimum 200 meter extension in width to the regional structure, with more high-grade veins expected to lie within.

  • Highly prospective for new discovery on new 'Cooler Creek' high-grade gold zone along trend.

  • Underexplored 2,216 hectares land package: Government report indicates the property has potential for large copper-gold porphyry (similar to what was demonstrated at nearby Highland Valley of Teck and New Afton Mine of New Gold).

  • Stable mining-friendly jurisdiction, experienced management team, and skilled technical leadership.

 

 

Valuation Commentary: WestKam Gold Corp. (TSX-V: WKG) (US Listing: ERRCF) (Frankfurt: OUH2) is prepping for a 10,000 tonne bulk sample on its 100%-owned Bonaparte Gold Project, located 50 km northwest of Kamloops in British Columbia, Canada. The upcoming bulk sample is proximal the last two bulk samples which averaged 26.5 g/T and 16.28 g/T Gold, testimony to the exceptionally high-grades contained within a series of well-developed shear/fracture zones hosting near-surface quartz veins. Within months we expect WKG.V to have some spectacular new releases. More importantly, we see the big-picture unfolding quickly as the development cuts a 10 by 12 foot drift through a series of high-grade veins and stockwork (running in between), affirming in the process the findings of a BCGS report that indicates the property has potential for large copper-gold porphyry, similar in nature as to what has been demonstrated at nearby Highland Valley Mine (Teck) and New Afton Mine (New Gold).

 

WestKam Gold Corp. has ~183.9 million shares outstanding. The Company is fully financed (over subscribed in its last financing) to accomplish all near-term objectives, and shares of WKG.V are poised for upside revaluation as the inherent value and accomplishments are appreciated by the market.

 

Figure 1. (below) Key veins discovered to date, inset of underground workings and drill core sample

 

 

Work on the property first commenced in 1985 following the discovery of high-grade gold in quartz at surface. 127 diamond drill holes in the 'Discovery Zone' alone, totaling 7,436.6 m, have encountered multiple high-grade drill intersections for gold (e.g. 113.70 g/t over 0.87 m, 142.97 g/T over 1.2 m, 321.22 g/T over 0.56 m, 115.51 g/t over 1.07 m), revealing a series of gold-laden near-surface quartz veins. The high-grade vein zones average two-to-three meters in thickness and appear to be located 12 to 15 meters apart within a larger regional structure. Exploration to date indicates the zones are open to expansion in all directions, and a much larger target zone, located east of the original Discovery Zone, was identified in the 2015 drill program.

 

Bulk Sampling

 

#1) Averaged 26.5 g/T Gold -- In 1994 the Discovery Zone was open pit mined on the Grey Jay/Crow Vein system. A total of 3,700 metric tons of mineralized quartz vein material was shipped to the Cominco Smelter in Trail BC, yielding ~98kg (3,160 oz Au) of gold. The bulk sample was halted as they were deep in the pit and needed to go underground. The shipped ore to the smelter graded 26.5 g/T Au.

 

Mining MarketWatch Journal notes very encouraging observation from past operator at the time of the first bulk sampling in 1994; the material which appeared waste at first, as visibly not part of the main vein, when tested was running ~7 g/T gold (historic, predates NI43-101) for the ~100 m section they needed to chew through to get to the high-grade vein. That material was left behind and only the higher-grading hot-spot vein material was transported (thus the 26.5 g/T Gold average yield), however this observation makes the next bulk sample, setting-up for this 2016, extremely exciting as it is these large swaths of stockwork material running full of stringers found in between the main quartz veins that will determine what may become the next big mine in B.C.

 

#2) Averaged 16.28 g/T Gold -- In 2010 a second bulk sample shipment from the Grey Jay / Crow vein system was trucked to the Kinross Mill located in Washington State for processing. A total of 364.6 dry short tons of mineralized quartz vein material averaging 0.475 oz/ton Au were processed yielding 161.95 troy ounces of gold at a recovery rate of 93.51%.

  

Fig. 2. (above) Entrance to portal box cut and ramp road ready to go for bulk sampling.

#3) Upcoming 10,000t Bulk Sampling

 

WKG.V has a green light to go and unfold the story without diluting the share structure.

 

 

This Q2-2016, WestKam received an underground Bulk Sample Permit from the BC Ministry of Energy and Mines, allowing for the extraction of 10,000 tonnes of ore from the Bonaparte Project. The permitted design of the Bulk Sample program includes extension of the existing decline approximately 245m through to the Grey Jay / Crow vein system.

 

WKG.V already has the portal collared and is underground ~100 m, running at ~15% decline, and from that 100 m point WKG.V will be drifting another ~245 m of development, cross-sectioning all the veins on the property, going through the ore body and seeing how the whole picture looks, and transporting high-grade vein material to the mill. As these are the same veins, there is no reason not to expect grades similar in nature to what was encountered on the first two bulk samples, and we expect WKG.V to come out well ahead financially once completed (the 1994 bulk sample yielded over 3,000 oz gold and was only 3,700 tonnes, this bulk sample should be 10,000 tonnes). There is at least one known blow-out/jewelry box section in the Crow/Grey Jay vein that WKG.V will exploit along the way, and all the other veins have never been mined. By placing vent raises (ventilation shafts to surface) through high-grade vein structures and areas full of stringers, like the Nutcracker vein, the Company will maximize yield.

 

As exciting are the riches of this bulk sample, the more important and lucrative prospect for shareholders will be the development the bulk sample provides and story that unfolds that can shed light on the bigger picture and prove up the prospect of this becoming the next big mine in BC, attracting major area stakeholders/potential suitors and popping the share price. The bulk sample should pay for the development and leave extra money to take the project to another level.

 

The Company is aggressively moving forward;

 

 

Figure 3. (above) - Two boom jumbo procured to make quick work of underground development

 

Figure 4. (above) - Facilities

 

Figure 5. (above) - Upgraded Security

 

The property is ready and the Company has received final clearance; roads and ramps built, containment for fuel is up to code, upgraded bunkhouse is in place, entrance to portal cleaned up, dewatering is complete, security is upgraded, equipment is in place, and the engineer report has been done. WKG.V should be underground mining for July.

 

Discovery Zone Cu-Au Porphyry Target Extended - The known 'Discovery Zone' area appears to be only the tip of the iceberg. IP, magnetic, and geochemical surveys have revealed a cornucopia of attractive drill targets and affirm the findings of a BCGS report that indicates the property has potential for large copper-gold porphyry.

 


 

Figure 6. (above) - Annotated map showing select IP and magnetic geophysical survey anomalies.
 

Volterra 3D IP and ground magnetic surveys have substantially extended the strike length of the high-grade Discovery gold zone trend. The extent of the zone's chargeability and resistivity anomalies has now been traced 1.2 kms from the Discovery Zone to the south-southeast, and the zone remains open. Several parallel features of similar chargeability and resistivity signatures have also been identified. Additionally, southwest of the Discovery Zone is a large magnetic anomaly comprised of extreme highs and lows with coincident IP chargeability responses under a younger basalt cap. These results suggested potential for a multi-phase intrusive.
 

The New 'Cooler Creek' Zone

 

 

Figure 7. (above) - Annotated map showing select magnetic geophysical survey anomalies superimposed on an outline of the geochemical trend. The Cooler Creek Canyon has an area of resistivity and chargeability anomalies and also contains part of the 2km long Cu-Au-Mo geochemical trend

 

A seven-hole, 583.22 metre, drill program carried out in the fall of 2015, discovered a new vein ~450 metres east of the Crow/Grey Jay/Owl veins of the Discovery Zone. This new vein discovery at 'Cooler Creek' from DDH-15-05 (see November 16, 2015 News Release "Assaying 0.253 oz/t Gold, 38.4 g/t Silver, 0.33% Copper and 28.6 g/t Tellurium, over 1.0 meter") lies within an anomalous IP resistivity, chargeability and Au/Cu geochemical trend which extends 1.2 kms to the south-southeast and is open both northward and southward. WKG.V has plans to drill and expand upon this new discovery vein.

 

WKG.V shareholders are in for an exciting second half of 2016 as the development from the 10,000t bulk sampling of the Discovery Zone is likely to bring insight and discovery that has the potential to catapult the Company's share price. Below is expanded insight on WestKam Gold Corp.'s Bonaparte Gold-Copper Property.

 

     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer

Recent salient Company news releases

Location, Region, and Infrastructure

 

WestKam's Bonaparte Gold Project is located in a stable mining-friendly jurisdiction, and has good infrastructure.

 

 

Figure 8. (above) Location map.

 

Mining-friendly province of British Columbia, Canada:

 

British Columbia, Canada is a stable, mining friendly region and is ranked as a top-tier jurisdiction by the Fraser Institute.

 

Local Infrastructure:

 

The Bonaparte Gold-Copper Project is less than an hours drive (~50 km) northwest of Kamloops in south central British Columbia. Kamloops is only ~3 hours (310 km) from Greater Vancouver. Kamloops, with a mining-friendly population nearing 90,000 people, has a thriving industrial base.

 

The property itself has excellent road access (paved roads from Kamloops for most of the way, then well-maintained gravel roads to the property), ample water. Power lines are nearby.

  

Bonaparte Gold Property - 2,216 Hectares (5,507 Acres), 100% owned by WKG.V

 

 

Figure 9 (above) Bonaparte claims - The property is largely unexplored. What has been discovered to date is starting out similar to how all mines of significance in BC had once started out.

  

<= click to access April 2009 NI 43-101 Technical Report on WKG.V's Bonaparte Gold Project [PDF].

 

Bonaparte Property – History

  • 1990s – 3,425-ton bulk sample from one of over 13 identified vein systems averaged 26g Au/ton (0.75 oz/ton).

  • 2009 – WestKam Gold Corp. (WKG) acquires option to earn 60% interest.

  • 2010 – Small bulk sample collected from underground workings on Crow vein. Ore shipped to Kinross Mill in Republic, Washington. Recovered gold sold for $145,783 (364.61 tons @ 0.475 oz/ton, 93% recovery

  • 2010 – “#20” Vein plus three new veins encountered in decline; WKG exercises option to earn 75%.

  • 2013 – BCGS report on porphyry potential, successful IP geophysics.

  • 2013 – WKG acquires additional 17% , brings Bonaparte ownership to 92%.

  • 2014 – Exploration advances 2013 discoveries; WKG purchases 100%.

  • 2015 – Fall diamond drilling follows up on 2014 results. New vein discovered, opening up large target area called “Cooler Creek Zone.”

  • 2016 – Permits received for next bulk sample; dewatering completed in June.

Diamond drilling beneath the bulk sample pits produced several historic high-grade intersections including:

 

Grade
(g gold/tonne)

Grade*
(oz gold/ton)

Intercept
(Meters)

113.70

3.32

0.87

84.21

2.46

1.44

142.97

4.17

1.20

321.22

9.37

0.56

115.51

3.37

1.07

43.50

1.27

1.02

69.20

2.09

1.26

*Calculated as: 1 gram/tonne = 34.28 troy ounces/short ton

 

Additional information from drilling indicates a minimum 200 meter extension in width to the regional structure. More veins expected to lie within the extension.
 

Bonaparte's bulk-tonnage, porphyry copper-gold potential

 

Geological services firm Coast Mountain Geological Ltd. have completed aggregation and assessment of information accumulated to date the Bonaparte Gold Project. Based on their work, development strategy examined both high-grade gold in quartz vein networks and porphyry copper-gold potential (as has been inferred by recent study from the British Columbia Geological Survey)...

 

The British Columbia Geological Survey also independently parallels the interpretation regarding big porphyry copper-gold potential based off their own research:

 

The Bonaparte Copper-Gold Project was investigated by BC government geologists Jim Logan and Mitch Mihalynuk in 2012.

 

They published

'Bonaparte Gold: another 195 Ma porphyry Au-Cu deposit in southern British Columbia?'

 

Stating, “It is likely that the portion (of the Bonaparte Gold Project) explored to date is only a small part of a much larger, more extensive mineralizing system that requires detailed exploration to define. In addition to the shear/fracture hosted mineralization, potential exists for large bulk tonnage, porphyry copper-gold mineralization.”

 

                                                        Shaun M. Dykes M.Sc (Eng), P. Geo

                                                        (Previous researcher on Bonaparte Property)

                                                        Technical Report on the Bonaparte Gold Property

                                                        April 30, 2009

 

IP Survey Results Summary Diagram

 

Note: This area being focused on now by WKG.V represents only a fraction of the property -- this area alone has big gold-copper porphyry mine potential written all over it with potential to rival nearby Highland Valley Mine (Teck) and New Afton Mine (New Gold).

 

 

Figure 10 (above) Summary of survey anomalies.

 

##

 

   

------ ------ ------      ------ ------ ------


WestKam Gold Corp.'s Technical Leadership, Management, and Governance

 

The current management team and board of directors has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful mining entity:

   

Matt Wayrynen, P.Eng, President & CEO

Former director of Quinto Mining Corporation, which was acquired by Consolidated Thompson Iron Mines in 2008 for a share value equal to $175M. Original co-founder and former President and CEO of TrichoScience Innovations Inc., which was acquired by Replicel Life Sciences Inc. Helped advance RepliCel to its current market capitalization of over $100M. Currently a director and senior officer of several other reporting issuers in the resource and energy sectors. Also the former President and CEO of Bralorne Gold Mines Ltd.
 

Pam Saulnier, B.Sc., CFO

Ms. Saulnier is a Certified Management Accountant and a member of Chartered Secretaries Canada, a Canadian Division of The Institute of Chartered Secretaries and Administrators (“ICSA”). She has more than 12 years experience in the mining and resource and oil and gas sectors. Ms. Saulnier has served with public companies in financial reporting, regulatory compliance, governance and administration of corporate affairs.

 

Akash Patel, Ph.D., Director

Presently CEO of MX Gold Corp. (MXL). Significant public accounting experience and over 15 years of investing experience. Bachelor of accounting from the British Columbia Institute of Technology with a major in accounting and minor in finance. Also provides over 12 years of corporate tax experience and has been a director and officer of several other reporting issuers in the resource sector.

 

Lincoln Fuqua, Director

35 years experience in Business & Higher Education Administration; Research Director; Corporation & Foundation board of directors service; Natural Resources exploration & development projects partner & manager Major financial grants from National Science Foundation, U.S. Department of Education, Utah Education Network, & American Independent TV Network. Recognized in Who’s Who in Bus. & Computer Technology; Who’s Who in Distance Learning; & Global Business Leaders.

 

------ ------ ------      ------ ------ ------

 

Lindsey Gorrill, CFO, Advisor

Chartered Accountant, graduate of Simon Fraser University with a BBA in Finance and Marketing. Admitted to the Institute of Chartered Accountants of British Columbia in August 1989. Following senior positions with Ernst & Whinney, Peat Marwick Thorne and KPMG, Mr. Gorrill filled executive roles resource companies in Canada and the U.S. Currently CEO, CFO, Principal Accounting Officer and Treasurer of Star Gold Corp. and has been its President since 2008. Also CEO and President of Jayhawk Energy, Inc. Also served as CEO, CFO and President of Canada Fluorspar Inc. Former CFO of Quinto Mining Corp., where he helped raise millions of dollars and advanced a Quebec iron ore property to a viable project. Quinto then sold to Consolidated Thompson Iron Mines in June 2008 for a share value equal to $175 million. (Consolidated Thompson was eventually sold to Cliffs Resources for $4.9B.) .

 

Tyrone Docherty

Chief Executive Officer and President of Deer Horn Metals Inc. since 2008. Former President and CEO of Quinto Mining, where with limited resources in a difficult market he raised more than $30M and advanced a Quebec iron ore property into a viable project. Quinto was subsequently sold to Consolidated Thompson Iron Mines in 2008 for a share value equal to $175M (starting from $4M). Consolidated Thompson was eventually sold to Cliffs Resources for $4.9B. Mr. Docherty also serves on the Boards of several resource companies including JayHawk Energy Inc. as well as Quinto Mining Corp. (prior to its sale). Involved in the financial markets for over 20 years and attributes his success to relationship-building, trust and honesty.

 

Tony Fogarassy, M.Sc, LL.Mc

Natural resources lawyer and principal for Dunbar Law Corporation. Graduated as the gold medalist in geological sciences and obtained his masters degree at the University of British Columbia. Obtained law degrees from UBC and the London School of Economics. Tony's legal experience includes mining, environmental and aboriginal law. He has worked as a geologist or lawyer on projects in Canada, USA, Kazakhstan, Angola and the Middle East.

 

Bob Lane, M.Sc., P. Geo, Consultant/Advisor & Qualified Person

Registered professional geologist with a Master's degree in geology and more than 20 years of practical field geology as a research geologist with the BC Geological Survey, as the Regional Geologist with the Ministry of Energy & Mines (Northeast-Central Region of BC), and as a consulting geologist. Currently the principal of Plateau Minerals Corp, a geological consulting company based in Prince George, and a Qualified Person under NI 43-101.

 

 

Note: This list is not intended to be a complete overview of WestKam Gold Corp. or a complete listing of WestKam's projects. Mining MarketWatch urges the reader to contact the subject company and has identified the following sources for information:

 

For more information contact WestKam Gold Corp.'s head office at: Ph (604).682.3701

 

Company's web site: http://www.westkamgold.com   SEDAR Filings: URL

 

     

Welcome to Mining MarketWatch

 

We provide insight into resource companies, many which are so often overlooked gems and can provide exceptional potential to richly reward investors.  The companies we select offer outstanding properties, management and experience in the mining/exploration industry.

O Free Newsletter/Membership

Name:

Email:

 

  

Sector NewswireTM Editorials: 

    

Analysis: 

    

Sector NewswireTM Top News Stories: 

 

[Most Recent Quotes from www.kitco.com]

[Most Recent Quotes from www.kitco.com]

[Most Recent Quotes from www.kitco.com]

[Most Recent Quotes from www.kitco.com]

 

[Most Recent Exchange Rate from www.kitco.com]

 

  [Most Recent Exchange Rate from www.kitco.com]

 

 

 

-----------------------------

Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical mining terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification.

 

     

-----------------------------

http://miningmarketwatch.net/mto.htm    http://miningmarketwatch.net/wkg.htm   http://miningmarketwatch.net/li.htm  

©2005 - 2016 Mining MarketWatch - MiningMarketWatch Home Page - About Mining MarketWatch - Terms of Use, Disclosure & Disclaimer