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The 21st Century Yukon Gold Rush

Yukon Gold Stocks Strike it Rich

Written by Luke Burgess
Posted August 20, 2010

The mining history books will have to be rewritten.

Brand-new discoveries of large — and incredibly rich — gold deposits in Canada's Yukon Territory have sparked the imaginations and excitement of geologists across the globe.

And with these impressive discoveries, the Yukon Territory is once again gaining a reputation as one of the world's hottest gold exploration targets.

For investors, this means the opportunity to profit from ground-floor area plays in the rapidly re-emerging Yukon gold district — which geologists are already comparing to the world's top gold regions.

Some of these stocks have already started paying off. In just a second, I'll tell you about two Yukon gold stocks that have already yielded quadruple-digit gains after the companies hit pay-dirt in the Yukon's prolific White Gold district.

The Yukon region's legendary gold history and wealth of remarkable new mineral discoveries are quickly making the territory one of the industry's most intriguing regions for exploration.

Investors are advised to take a close look at quality junior gold exploration companies with assets in Canada's Yukon Territory.

And this will get you started...


Canada's 21st century Yukon gold rush

The gold mining industry has been ingrained in the Yukon culture for over a century.

Beginning with the great Klondike Gold Rush in 1896, a total of over 15 to 20 million ounces of gold have been produced from the Yukon Territory.

Yet despite having already produced resources that are worth between $20 and $26 billion today, many geologists still regard the Yukon Territory as 'virgin country' in terms of gold exploration and mining.
2011 yukon territory map

That's because the full potential of the Yukon Territory is still undetermined. Less than 3% of the Yukon's known mineral occurrences have been tested with modern gold exploration techniques.

Today there are about 80 mineral deposits in the Yukon with official reserves. But there are another 2,700 known mineral occurrences in the region that have not been thoroughly explored with modern exploration technologies.

Each of these mineral occurrences has the potential to also develop into deposits with resources and reserves.

Yukon gold stocks are starting to gain heavy media attention. And investors are already starting to cash in from small gold exploration companies making new Yukon gold discoveries...

Companies like Underworld Resources Inc. and Kaminak Gold Corp. have returned recent envy-worthy investment gains as new gold discoveries drove share prices skyward.

Underworld Resources (Historic: TSX-V: UW) was a junior gold company focused on the exploration of the White Gold Project in west-central Yukon.

A 25,000-meter drill program in 2009 confirmed beliefs that the property contained significant gold mineralization. Highlights from drill results included:

  • 60.5 meters grading 3.89 grams per tonne (g/t) gold
  • 104.0 meters grading 3.39 g/t gold
  • 31.1 meters grading 9.20 g/t gold

These, along with other high-grade gold drill results, helped move share prices 959% higher between the crash of the junior mining stock market in December 2008 and March 2010. It was then that Kinross Gold (NYSE: KGC), the world's fifth-largest gold producer, arraigned to takeover Underworld Resources in a $140 million deal.

The Kinross deal resulted in another 41% overnight jump in share prices.


2010 kaminak gold chart
Company: Kaminack Gold
Exchange: Symbol TSX-V: KAM
Share Price: $2.30
Market Cap: $111 Million

Kaminak Gold (TSX-V: KAM) is a well-financed junior exploration company focused on the 100%-owned Coffee Gold Project in west-central Yukon.

The Coffee property is located only 30 kilometers from Underworld's White Gold Project, so it's no surprise that the primary target at the Coffee Gold Project is a near-surface, bulk tonnage gold deposit similar to White Gold...

In the spring of 2010, Kaminak Gold conducted the first exploration drill program at the Coffee Project.

The result of the exploration drill program was two major gold discoveries, made at the Supremo and Latte Zones. Assay results from drilling in these zones were as high as 15.5 meters grading 17.07 g/t gold and 51.0 meters grading 2.35 g/t gold.

For the remainder of 2010, Kaminak will continue to expand the size and depth of the Supremo and Latte Zones and test eight other presently-known gold zones with further drilling on the Coffee Gold Project.

Shares of KAM have increased from $0.11 to $2.43 in the past 18 months — a 2,109% gain.

The investment gains from Underworld Resources and Kaminak Gold are certainly impressive. But these gains couldn't have been possible without the discoveries on the right gold projects... And the right gold projects couldn't have been possible without one person.

Re-inventing the Yukon gold industry for the 21st century

While Underworld Resources and Kaminak Gold have interests in the same area of west-central Yukon, the two companies have more in common than just regional presence.

The key behind both of these success stories is a gentleman named Shawn Ryan.

You'll want to remember this name.

Ryan owns Ryanwood Exploration, a geologic consulting and prospecting company that buys and sells mineral projects to private and public companies.

Ryanwood Exploration has been prospecting claims (which number in the thousands) around the world over the past 14 years with a specific focus on the Yukon Territory.

Ryan and his team have meticulously prospected mineral claims using a very simple, unique approach to determine the best places to drill for gold.

Shawn Ryan was voted 2009 Prospector of the Year by the British Columbia mineral industry.

Ryan's method has proven itself successful in the discoveries of Underworld Resources and Kaminak Gold. But Ryanwood methods are time-exhaustive — the property package Ryan sold to Underworld had been worked on by Ryanwood Exploration for nine years.

So I was pleased to learn that Ryanwood Exploration recently sold a few other land packages to junior mining companies working in the Yukon.

I recently returned from a long trip to the Yukon where I met with Shawn Ryan to discuss a new gold exploration company that will soon be drill testing one of Ryanwood's most exciting recent gold projects in the Yukon.

Why gold bugs should add the Yukon to their portfolios

Canada’s Yukon Territory is a highly prospective gold exploration region that offers tremendous opportunities for new major discoveries.

Several significant gold deposits have been discovered, and many experts feel that the Yukon may become a new global hub for gold exploration, development, and mining in the years to come.

Geologists have compared the Yukon's potential to the Carlin Trend in Nevada, where over 200 million ounces of gold have been discovered in the past two decades alone.

Recent gold discoveries in the Yukon by Underworld Resources and Kaminak Gold have led the way as of late... But plenty more opportunity exists, as additional drilling hits the ground.

Not to mention the many more new discoveries of merit in this area — probably with the biggest yet to come.

In the meantime, good investing.

Luke Burgess
Editor, Wealth Daily
Investment Director, Underground Profits


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