Kestrel Gold (TSX.V: $KGC), owners of King Solomon’s Dome in the heart of the Klondike in Canada’s Yukon Territory, just announced a few option agreements with legendary, gritty prospector Bernie Kreft, known for his role on the History Channel’s show Yukon Gold. Bernie Kreft and Kevin Nephin, Kestrel Gold’s President & CEO, have a decade-long friendship from working in the same hood in the nether regions of Northern Canada. With Kreft’s proven and documented prowess as a diligent project generator, this pairing of prospector and pubco could lead investors to another big Yukon discovery.
If you are unfamiliar with Kreft, you have to watch these videos of him, and I quote:
“Would I describe myself as a hardass… I would describe myself as one that expects quality sh*t. And when quality sh*t isn’t being done, you’re going to hear about it. It’s pretty simple.” Yukon Gold: Bernie Kreft
“I’m awesome at prospecting, you know, probably one of the top prospectors in Canada. And it’s great business.” Yukon Gold- Bernie: What it Takes to Make Money.
I could watch videos of Kreft all day long. I hope to one day down a Sour Toe Cocktail with him and his crew, which includes his two sons, Justin and Jarret, and their friend Kyle.
Mr. Nephin had this to say in regards to the announcement of the Val-Jual property acquisition:
“Optioning the Val-Jual property gives the company an excellent foothold in the burgeoning White Gold district. The Val-Jual property is bordered by the Dime property of White Gold Resources and K2 Gold’s Flume property, both of which are to be actively explored during 2017. Kestrel intends to aggressively explore this high-priority project, with our expenditures and the exploration efforts of our neighbours; this area could prove to be one of the most exciting areas in the Yukon this summer.”
The Val-Jual property is a 2800 hectare property located 70km south of Dawson City, Yukon Territory. It’s comprised of two separate blocks on either side of the Ten Mile Creek, where over 36,000 ounces of gold were reportedly extracted between 1978-2016. Records are often incomplete, and gold has been coming out of that area since discovery in 1898, so the number is surely a lot higher.
Val-Jual is located in the White Gold District in the neighborhood of gold giants. The project lies 30km northwest of Comstock Metals’ VG deposit, and 45km northwest of Kinross’s Golden Saddle deposit. This orogenic vein deposit is similar to the gold mineralization style found at QV, Coffee and Golden Saddle. Golden Saddle has an open pittable 9.8 million tonne resource grading 2.7 g/t Au (Indicated) with 2.2 million tonnes at 1.8 g/t Au (Inferred). Comstock’s VG deposit has a NI 43-101 compliant resource of 4.4 million tonnes grading 1.65 g/t Au (cutoff 0.5 g/t Au). And the Coffee deposit is 43.4 million tonnes grading 1.45 g/t Au in P&P, and 52.35 million tonnes at 1.31 g/t Au in Inferred.
Previous work has outlined numerous gold and/or arsenic soil anomalies or mineralized zones, the highest priorities of which are the Jual and Cupid zones. Kestrel is exploring those zones to develop targets for a preliminary RAB (rotary air blast) drill program.
The White Gold District is defined predominantly by metasedimentary host rocks, with gold associated with arsenic. A recent grab sample at Val-Jual returned 6.58 g/t Au with >10,000 ppm Arsenic.
Check out the option details at this release here.
Clear Creek Property
There are two distinct mineralization settings going on at Clear Creek, an intrusion-hosted bulk tonnage ”Fort-Knox”-style, sheeted vein setting, and a structurally hosted high grade vein and breccia-hosted setting as well. Sampling came back with 319.5 g/t Au and rc drilling returned 0.65 g/t Au over 88m, open at depth, with the last 3m grading 1.3 g/t Au.
In the early 90’s, Noranda worked the property, uncovering one trench that ran 1.09 g/t Au over 35m, and another one in a different zone that reported back with 2.11 g/t Au over 24m. A grab sample of the intrusive-hosted quartz veining returned 319.5 g/t Au. Mr. Kreft picked the property up after it has migrated from Kennecott to Newmont to Redstar Resources to finally StrataGold where the property lapsed. He optioned it to Golden Predator, who drilled another telling hole with 1.24 g/t Au over almost 23m. Due to market conditions, the property was returned to Mr. Kreft, who continues to believe the property has plenty of potential to uncover.
Barney Ridge Property
The Barney Ridge property also has the potential to host both mineralized settings as well. Sampling returned a number of results that ranged between a gram to 7.72 g/t Au across 0.8m. Two zones, named the Leprechaun and Lucky Charms zones, were outlined from soil geochemical and rock sampling at the Leprechaun anomaly which returned one sample at 2.07 g/t Au.
The Clear Creek and Barney Ridge properties were acquired by Kreft this time around between 2009-2011, and both properties lie in the Tintina Gold Belt, a metallogenic belt of intrusions extending 2000km from southwest Alaska through Fairbanks, Alaska and Dawson City, Yukon, then southeast to the Yukon BC boundary. Significant deposits from this area including Fort Knox (3.8 million ounces in P&P reserves, and 1.7 million oz in M&I); Donlin Creek (29.3 million ounces in P&P and 6 million ounces in M&I); the Pogo deposit (3.6 million oz of P&P); and Eagle Gold (2.3 million ounces in P&P, included in 6.3 million ounces M&I).
Dease Porphyry Property
This property is actually four of Mr. Kreft’s prospects rolled into one. He acquired them in the summer of 2016 and they cover porphyry style or structurally hosted copper/gold/silver mineralization within a district-scale exploration camp. The property is only 10km from road access, mainly along highway 37, south of the Village of Dease Lake in north-central BC.
The Dease porphyry project is within the Quesnel Trough, approximately 35km south of Dease Lake and 52km north of the Red Chris mine, a major copper-gold porphyry system. Rock geochemical sampling of numerous showings at the Dease property consisting of mineralized skarn, granitic to syenitic dikes and quartz veins, returned values from background to 13.027% copper and 1.012g/t gold. These mineralization styles are typically found along the periphery or outbound of a mineralized porphyry centre.
Check out the option details for the Clear Creek, Barney Ridge and Dease Porphyry properties here.
Kestrel and Kreft Combine Forces
Mr. Nephin has kept this company going from rough times through the tough times and now let’s hope for a strong run into the good times. 2010 saw a huge run in Kestrel’s stock, from mid $0.20 to $1.20, and then the bottom fell out. Now, with this newly positioned portfolio and Kreft’s ballsy, sh*t-kickin style, to say this team will be commanding an audience is an understatement. Kreft knows this area, and knows his science. And, drills are coming, with Kreft and his sons at the helm of the work programs which will be run by Jean Pautler, P. Geo. Mrs. Pautler is well-known in western Canada as a top notch explorationist, who helped bring what turned into big gold assets into Teck Resources. One was the Coffee property, which eventually went to Kaminak who were taken out by Goldcorp. One was Underworld’s Golden Saddle property, and they were taken over by Kinross. And the final project was Val-Dual.
King Solomon’s Dome
Kestrel’s 100% owned flagship property, King Solomon’s Dome, has historical credence and its own Wikipedia page. There are 7 different zones outlined from around $1.2 million spent on exploration, and they are surrounded by White Gold (Shawn Ryan’s company) and Klondike Gold. Bulk sampling returned 4 g/t Au at surface and there is also a huge soil anomaly, 1.6km X 1km long with the threshold defined at 30ppb Au.
Trenching at King Solomon’s within Klondike Schist host rocks defined a strike length of the gold bearing quartz vein system over 2.6 km long and at least 0.4 km wide (values up to 17 g/t Au and silver greater than 50 g/t). The vein system is open along strike.
The motherlode source of the Klondike Gold rush, has never been located. King Solomon’s Dome has long been rumoured to perhaps be the source of around 20 million ounces of gold from placer mining in the area which began in 1896. It’s very accessible, only 30 min drive from Dawson City, and UBC’s leading expert in the Klondike gold rush, Jim Mortensen, brings 40-50 students to the property every year to witness the Sheba vein system. The property sits at a topographic high point in the Dawson Mining District, with a hub of creeks that drain off the dome in a radial pattern.
Where Will Gold Go
Gold is in a never-ending match with the US dollar, and the strength of the dollar is derived from its relative position compared to other struggling economies in the world. Stocks are still performing well, the US economy is doing well, leading some to predict lower lows in June and July for silver and gold. But the sentiment is mostly there that $1300 gold this year is going to happen and according to a number of analysts it could be up up and away from there. How will the world deal with Trump? How will Trump deal with Syria, North Korea and Russia? Not exactly feeling the geopolitical warm and fuzzies these days.
We’ve been looking for a good gold stock and this one has a prime package of vetted gold projects in one of the world’s key gold jurisdictions. KGC has 44,491,208 shares outstanding, it’s trading at $0.125 at the time of writing, giving it a market cap of $5.5 million. Kevin Nephin has really made this interesting for the next few seasons with KGC.V. What can this team prove up!
This is not in any way investment advice nor any sort of stock recommendation. Please do your own due diligence and talk to a qualified investment advisor.
The contents of this article are for informational purposes only. Nothing in this article, in any way whatsoever, should be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. Note the inherent risks when investing in microcap stocks. Prior to making any investment decision, we recommend that you seek outside advice from a qualified and registered investment advisor.
Kestrel Gold Inc. is a marketing client to an arm’s length company controlled by one of the owners of StockSyndicate.com. One or more of the Stock Syndicate owners does own shares in Kestrel Gold Inc.