In this article, we will take a brief look at the Yukon, the prolific Tintina
Gold Belt and drill down to the Dawson Range, which makes up part
of the belt, and what could be Triumph Gold
Corp.'s (TIG:TSX.V; TIGCF:OTC) strategic position and district-size
potential in the Yukon Tanana Terrane that makes up part of the prolific
Tintina Gold Belt.
Why the Yukon: Canada's Yukon Territory is a mining-friendly
jurisdiction with a long, proud history in mining and exploration, starting
with the 1897 Klondike Gold Rush. Mining is an important part of its economy
today, as the Yukon experiences a new, modern-day gold rush. For much of this
time, smaller companies, placer miners "working the creeks,"
dredging barges "working the rivers," prospectors and mining
entrepreneurs have walked and staked the ground throughout the Yukon.
However, this is changing because the majors are discovering what the
juniors have long known: This region is largely underexplored, has
exceptional geology, and has strong potential for district-size mining
operations that can replace the declining mineral reserve profiles that the
majors are experiencing.
Mining companies continue to invest in the Yukon, not only because of the
strong mineral potential, but also because of the clarity provided by all
levels of government, programs and partnerships with First Nations. The
mining-friendly Yukon ranks only after Saskatchewan and Quebec for mining
investment attractiveness within Canada.
The Tintina Gold Belt, which extends from British Columbia to
Alaska, is underexplored in its central section spanning the Yukon Territory,
including where it crosses the un-glaciated Dawson Range. The Tintina Gold
Belt is a 1200-km-long and 200-km-wide arc, extending from the south corner
of Alaska into the northern part of British Columbia. Production mines and
significant exploration and mine development projects demonstrate the
geologic potential in the Dawson Range. Over 50 million ounces of gold have
been discovered in this belt over the last 20 years. (See maps below.)
The White Gold District and the Dawson Range experts call the
"Best Hope for New Gold Deposits," Northern Miner, May 13, 2018
The Yukon's Dawson Range (map above) gold belt is a
northwest-trending series of gold-rich epithermal vein deposits, copper-gold
porphyry deposits, minor skarns and extensive placer deposits that stretch
for approximately 100 kilometers parallel to the Big Creek fault, northwest
of Carmack, in the south-central Yukon.
Most of the placer gold recovered in the Dawson Range to date is from the
still-active Revenue Creek, one of the prolific placer creeks in the Yukon,
that runs through the property. The hunt for the source of that gold
continues at Triumph Gold. Triumph Gold's district-scale Freegold Mountain
Project is surrounded by the Minto Mine, formerly owned by Capstone, Copper
North, Rockhaven, Teck Resources, Western Copper, and Goldcorp's Coffee Creek
project, further to the northwest.
Many geologists and experts believe there are many more hard-rock sources
to all this placer gold. While exploration for hard-rock deposits has been
limited in the past, this started to change in the past 10 years, when over 7
million ounces have been discovered in this area. Over time, education, new
technology, innovation and more experience has continually enhanced
companies' abilities to discover new deposits, as well as expand on existing
ones, which is encouraging senior miners to take a closer look and invest in
the district.
In addition, the Yukon territorial governments, along with the Canadian
federal government, have committed $360 million to build improved roads and
infrastructure throughout the Yukon, including the White Gold District
surrounding areas. This heavy infrastructure spending should drive down capex
costs and improve project economics for companies in the area. Investors can
see from the insert below how the landscape is changing in the area, as major
gold producers are moving heavily into the area. To re-cap, the reasons are
excellent geology, vast areas of under-explored prime terrane, geopolitical
stability, infrastructure that is decent and improving, a mining friendly
culture, and new large deposits being found, examples being Goldcorp's Coffee
project, Victoria Gold's Dublin Gulch and ATAC's Carlin style target. The
rush back to North America will likely intensify as events continue to become
more volatile worldwide, and large mining corporations must look forward at
least 10-15 years to be sustainable.
"The best place to find a new mine is next door to an old mine or
existing mine," - Tom Zoellner
Triumph Gold's location in the Yukon:
The back story: Triumph Gold Corp., formerly Northern Freegold, was the
first mining company I was involved in from its initial public offering,
after being called to market on September 6, 2006, at $0.50 per share, and it
quickly doubled its value. It was on a field trip to the site that I first
met Mr. Bob Moriarty of 321 Gold, the Sprott Global Mining team and the Casey
Research guys. As I recall, Bob smashed a loose rock on Freegold Mountain and
found wired gold or free gold on the first day. The company was poised to do
very well.
The project was a land consolidation of over 100 individuals and companies
that owned the claims, and due to the efforts of the previous management
team, this large land package was formed and developed into a 43-101
compliant mineral resource of about 3 million ounces of gold and a gold
equivalent resource of over 5 million ounces, if the copper and molybdenum
are converted to gold ounces, into what is now Triumph Gold Corp. The former
company also did metallurgy as part of the PEA and got 98% recovery rates at
Nucleus and 90% recovery rates at Revenue. However, the cyclicality of mining
came in play beginning in 2008 and extended through until early 2016, and
those years took the wind out of the earlier success enjoyed at the Freegold
Mountain project. All that changed in 2017, when after a management change, a
name change and an investment from Goldcorp, Triumph Gold was ready to
rebuild the dream of building a district-scale mining project in the Yukon.
Today, Triumph Gold shares are trading on the TSX Venture Exchange under
the symbol TIG. Triumph is a growth-oriented, Canada-based junior natural
resource company currently engaged in the acquisition, exploration and, if
warranted, the development of mineral properties of merit in the Yukon
Territory and British Columbia, Canada. Currently, the company is focused on
creating value through the advancement of the district-scale Freegold
Mountain Project. All the properties in which the company currently holds
interests are in the exploration stage. The company funds its exploration and
development primarily through the sale of its equity securities.
Shares Issued and Outstanding: 77.9 million
Warrants: 27.41 million
Options: 6.02 million
Cash: $6 million (projected to end this year 2018 at ~$3 million after this
year's drilling)
Market Capitalization ~$35 million
Major Shareholders: Goldcorp now owns approximately 19.999% of the
issued and outstanding Triumph Gold; a private Hong Kong investment fund owns
9.1%; Gold 2000, a Swiss fund, owns ~10%; Palisades Capital ~17.4%; and
management at ~8.70%. (In total major shareholders own and control about 65%
of the 77.9 million outstanding, leaving a float of ~35% or ~25 million shares.)
Management: Triumph Gold is headed by a well-known mining financier
in Vancouver, Mr. John Anderson, who is the executive chairman and a
director. John's job has been to attract capital and talent to rebuild the
company. To that end, the tough decision to roll back the shares was made in
October 2014 on a 10-1 basis. John then hired Mr. Paul Reynolds as president,
he is a professional geoscientist with 30 years of experience working around
the world in the field, and 20 years of managing public companies. Paul is
responsible for managing the project.
The name was changed to Triumph Gold in January 2017 when John Anderson
re-organized the board and management. Triumph hired Dr. Tony Barresi as vice
president of exploration, an expert in VMS, porphyry- and epithermal
deposits, having done his master's thesis on "Sedimentology, structure,
and depositional setting of the Loon Lake sedimentary rock unit, southern
Semenof Hills, central Yukon," and Ph.D thesis on "Tectono-magmatic
and metallogenic evolution of the Late Triassic to Middle Jurassic Hazelton
Group in northwest British Columbia, Golden Triangle." Dr. Barresi also
quickly staked the Andalusite Peak property in the Golden Triangle, when it
became available in 2017, having worked and studied the area, and knowing its
highly prospective value.
Triumph Gold's property: covers more than 200 sq km that host three
deposits; to grasp its size, it is one-third the size of Hong Kong and five
times larger than Manhattan. There is a government-maintained road that
covers the 32 km end to end and if extended would connect the massive Casino
property owned by Western Copper & Gold and connect to Goldcorp's Coffee
Project, where that company has invested $520 million. We do not know the
future, but the Yukon Territorial Government, along with Canadian Federal
Government, supports a plan to invest $360 million into infrastructure and
road building to help with the capital cost of getting these valuable mineral
deposits to market.
Triumph Gold's Property Map
Triumph Gold today:
In the past, Triumph Gold could have been considered an "optionality
play," a large low-grade resource, with the investment comfort of an NI
43-101 resource of 3+ million ounces backstopping the investment.
But all that seems to have changed starting in early 2017, with Goldcorp
taking a 19% stake in the company, (see news release) and new theories emerging about the
deposit, based on a thesis by Dr. Tony Barresi, and the prior work of going
back through the old data. What emerged from all that effort was a new
geological interpretation that identified five new areas where the company
believes it could build a bigger, higher-grade project that could be economic
at today's metal prices.
Dr. Barresi, VP Exploration, believed what earlier geologists thought,
that a large porphyry, formed 120 million years ago, existed on the property,
but that a later-stage diatreme (a long, vertical pipe or plug formed when
gas-filled magma forced its way up through overlying strata), formed 50
million years ago, blasting its way up through the earlier existing porphyry.
Drilling in 2017 (see here) was very successful and the new releases in the
later half of the year backed this up; however, the market did not really
respond to the better results or the optimism expressed by the exploration
team and management. Triumph completed ~13,000 meters of diamond drilling in
35 holes during the 2017 drilling season. Now, after reviewing the data from
2017, the team was ready to plan to build on the past year's success. They
raised more money with past and new shareholders and are well prepared to
capitalize on all they have learned.
The plan for 2018 is to drill the Freegold Mountain property to
execute a 1,900-meter diamond drill program targeting the newly discovered
porphyry system in the Keirsten Zone (see PR # 17-13). Porphyry-related mineralization was first
discovered in the Keirsten Zone with drill hole KZ17-01, which tested the
center of a 1.1-km diameter intense (up to 180 milliradians) buried
chargeability high. The drill hole encountered rock that had been affected by
an extremely vigorous porphyry-related hydrothermal system from 193 meters to
the end of the hole at 603.50 meters. Phase 1 drilling will test new targets
within and along the margin of the chargeability high that were developed
through the application of a porphyry model to the interpretation of existing
geological and geophysical data.
Phase 1 drilling commenced on March 27. The timing of Phase 1 capitalized
on frozen ground in the Keirsten Zone, which is largely overlain by a swamp.
The frozen ground allows a drill to be mobilized with minimal
environmental impact from road building, or expense from use of a
helicopter. It also facilitated the early establishment of a camp and crew,
which support spring- and summer-long exploration activities, including an
additional approximately 16,100 meters of diamond drilling, trenching and
geophysical and soil geochemistry surveys.
Tony Barresi, VP Exploration of Triumph Gold Corp. commented: "Phase
1 drilling of the Keirsten Zone demonstrates Triumph Gold's commitment to
test and advance the exploration concept that Revenue and Nucleus are not
discrete deposits, but instead they are parts of a five- to six-kilometre-long
magmatic-hydrothermal mineralizing system with porphyry and epithermal
components. The Keirsten Zone is centered almost exactly between the Revenue
and Nucleus deposits and represents a high priority exploration target as a
potential core or focus of the broad mineralizing system."
Areas to be drilled and explored this year are:
- Nucleus and Revenue and the surrounding area
- The Generation Zone
- The Keirsten Zone
- The Blue Sky Zone
- The Happy Creek Area
- Irene
Exploration Update 2018 Drilling
Triumph Gold announced some pretty spectacular drill holes on August 23, which was the first confirmation of what the
company really discovered a year ago, with a small intercept in a big stepout
from its existing known resource, on its 200 sq km property, and that's
really what's led to the news of a discovery that Triumph Gold came out with
last week: a large, robust, gold-rich porphyry system in the Yukon that work
started on earnestly as far back as 2006.
Again, Triumph Gold has a district-sized property blessed with great
geology and geography, having a government-maintained road going to and right
through the length of the 32-km property.
Earlier, on July 31, Triumph had reported that an 18,000-meter diamond
drill program was in progress on Triumph Gold's 100%-owned, road accessible
Freegold Mountain property. Exploration is mainly focused on identifying new
porphyry and epithermal mineralization within a 6-km long soil and
geophysical anomaly that envelops the Revenue and Nucleus deposit
areas (Figure 1). Drilling is now complete in three additional areas, the Blue-Sky
Zone (e.g. RVD17-13 with 1.01 g/t Au and 0.285% Cu over 57 meters), the
Guder Zone (e.g. RVD17-14 with 15.0 g/t Au over 7 meters), and the Granger
Zone (e.g. GRRAB-091 with 4.48 g/t Au over 16.73 meters). The results
from drilling in these zones will be released as they are received and
checked for quality. Two drills are currently situated over the Nucleus
deposit area where they will drill approximately 4,000 metres. When the
drilling at Nucleus is complete, one drill will be mobilized to conduct the
inaugural drill test of the Irene epithermal vein prior to the end of
the field season.
Revenue Target and diagram of the Diatreme concept below showing the
pre-existing porphyry.
Mineralization overprinted and enriched by emplacement of the diatreme
Picture above shows exploration targets and IP chargeability
Picture above shows geochemical anomaly over 6 kilometers
Plans for the rest of the year for Triumph Gold
Triumph announced a confirmation of a major gold-rich porphyry system with
robust grades, 0.3% copper and over 1 gram of gold in several holes and the
company still has more drill results to come out of the Blue Sky Zone, which
is what it is calling the discovery zone.
Triumph Gold also still has four other targets that it has drilled on the
property this year, and it will release results as they come in. With all the
new assays back, the company will study all the results and learn how it is
going to approach the rest of the property for the balance of the year and
into next year's drilling season.
Andalusite Peak Property, BC, property was acquired by staking in
January 2017. It is in northwestern British Columbia, 65 km north of the Red
Chris copper-gold mine, 20 km west of BC Highway 37 and 7 km south of the
Kutcho Creek mining road. The property covers an alteration
"blow-out" in the center of a 27-kilometer-long belt of strongly
altered rock that was identified and mapped in 2016 by BC Geological Survey geologist
Bram van Straaten.
Two similar alteration blowouts are known along the belt and both
represent important exploration properties: 1) the Tanzilla property, 11 km
to the northwest of Andalusite Peak, is owned by Kaizen Discovery and was
optioned to Freeport McMoRan between 2013 and 2015, and 2) Teck Resources'
McBride property is 12 km to the southeast of Andalusite Peak. On these
properties, porphyry-style mineralization has been identified within and
beneath the alteration lithocap.
Only one historical record of exploration on the Andalusite Peak property
exists (BC assessment report 30590); in the report, the intensity of the
alteration was noted and the discovery of an outcrop containing massive
coarse andalusite was documented. The presence of andalusite on the property
indicates that it has experienced higher temperature and more intense
alteration than any other location along the 27-km belt.
Paul Reynolds, Triumph Gold's president and CEO noted, "The
Andalusite Peak property was staked based on the presence of an intense
alteration blow-out like others within the district that are host to
significant mineral occurrences. However, prior to our work, no
mineralization had ever been discovered on the property. In one year, this
property went from a highly speculative exploration concept to an exploration
reality with the identification of two new gold-copper occurrences. We are
eager to follow up on these exciting new discoveries and to continue to
explore the Andalusite Peak Property."
News release can be found here.
Triumph is again at the Speculation Stage of the cycle, as this year's
drilling news can hopefully expand on the company's successful 2017 drilling
and exploration campaign. This year's drilling and exploration news will help
investors hopefully see the potential higher grade and larger size of the
deposit based.
Technically, Triumph has built a long powerful looking base formation,
called a head and shoulder pattern.
Within that pattern is a strong hidden "momentum cylinder"
that looks poised to control the next move higher. TIG.V has held up in this
recent correction of precious metal shares, adhering to the Wall Street
adage, "What goes down the least, goes up the most."
Summary of reasons to consider Triumph Gold as an investment:
- New porphyry mineralization identified over 4-km strike
length adjacent to and between Nucleus and Revenue.
- New intersection of highest-grade gold ever discovered
at Revenue, assaying up to 81.3 g/t Au over 1.0m. This is a deposit next
to one of the most prolific placer creeks in the Yukon.
- 450m strike length of high-grade, gold-rich, porphyry
mineralization, newly defined with four drill holes in 2017. Open in all
directions and to depth, including 57m of 1.08 g/t gold and 0.285%
copper in RVD17-13.
- Positive results from metallurgical work at Nucleus and
Revenue with >95% recovery rates.
- Road accessible, in a good mining district,
straightforward permitting, support from government and local
communities.
- 18,000-meter drill program in conjunction with other
exploration activities planned for 2018 to capitalize on the successful
2017 drill program.
- Management is very experienced in mineral exploration in
British Columbia and the Yukon Territories, Canada, with a flagship
project that has no debt or property payments.
- Management has the experience and capability to finance
the project directly with investors. Proven with the chairman who has
quarterbacked numerous large financings. Of note, there is yet not any
involvement with investment bankers or brokers on the $14 million raised
by the company since the management change, largely due to the
non-promotional philosophy the company has taken in an obvious bear
market.
Triumph could be a welcome addition to add to the already existing
resources at Goldcorp and/or another major mining company interested in
taking a position in what could be a district-scale potential deposit that
could help replace depleting resources. Finally, Triumph is in a safe
political jurisdiction, in an area with excellent infrastructure, close to
power and a government-maintained road.
Why should investors look at Triumph Gold?
Triumph Gold has a great risk reward proposition, in the current choppy to
down precious metals market, but hungry for exploration success. We must
remind readers Triumph Gold is situated in the Yukon with good
infrastructure, which is a huge benefit for not only exploration, but also as
the development of a project as it moves forward, helping to make this
project economically viable, in today's environment.
Finally, after speaking with management, the Triumph team now believe
geologically they have got an "elephant by the tail" with this Blue
Sky porphyry that the company recently announced. Management believes Triumph
Gold is in the early stages of a major expanding gold-copper system, and
still feels there is a lot of upside left in what management thinks could be
the discovery of the decade, in the Yukon.
Below are two previous YouTube videos that potential investors can view.
See Interview.
See interview.
Copper Porphyry Article.
See website link here.
John Newell is a portfolio manager at Fieldhouse Capital
Management. He has 38 years of experience in the investment industry acting
as an officer, director, portfolio manager and investment advisor with some
of the largest investment firms in Canada including Scotia McLeod, CIBC Wood
Gundy and Richardson Greenshields (RBC Capital Markets). Newell is a
specialist in precious metal equities and related commodities, and follows a
disciplined proprietary approach incorporating equity research, analytical
frameworks and risk controls to evaluate and select long and short stocks
primarily from the Canadian small and mid-cap coverage. Many large, midcap
and junior precious metal companies use his technical charts. Newell is a
registered portfolio manager in Canada (advising representative).
[NLINSERT]
Disclosures:
1) John Newell: I, or members of my immediate household or family, own shares
of the following companies mentioned in this article: Triumph Gold. I
personally am, or members of my immediate household or family are, paid by
the following companies mentioned in this article: None. My company currently
has a financial relationship with the following companies mentioned in this
article: Funds controlled by Fieldhouse Capital currently own shares of
Triumph Gold. I determined which companies would be included in this article
based on my research and understanding of the sector. Additional
disclosures/disclaimer below.
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Additional Disclosures and Disclaimer from John Newell, Fieldhouse
Capital Management, August 31, 2018:
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