Friday, September 28, 2012

News from Prosperity Gold Fields/Nunavut Comment

Prosperity Gold Fields released a news release today. PPG is a junior working in southern Nunavut, just above the border of Manitoba, on their Kiyuk Lake project (They also have another property in the Yukon). From the pictures on their website, their camp is fairly small with only 2 facility looking buildings and a handful of cabins.

Prosperity has never been on my watch list, I just caught their news release as I was looking at stockhouse this morning. I didn't find the news to be all that exciting other than the fact that it mentioned their property was in Nunavut, a place I have a keen interest in as far as gold exploration goes. I read the press release then went on to look through their site a bit.

The independent technical report on the website gives an interesting but of history on Kiyuk Lake, as it relates to gold exploration....

     "The Kiyuk Lake area of southern Nunavut received little recorded exploration attention until Comaplex
Minerals Corp (Comaplex) conducted regional exploration in the early 1990s using publically available
lake sediment geochemistry, airborne magnetic geophysical survey data and reports of gossanous rocks
identified during government regional mapping. This exploration work by Comaplex confirmed the gold
mineralization at Kiyuk, however, despite recommendations to continue exploration on the property in the
1989 assessment report (Hauseux, 1993) Comaplex eventually let their mineral right lapse. The property
was left dormant until 2003 when it was restaked by M. Hauseux and S. Sumacz. Since then the claims
were intermittently worked and the property expanded by optioner Newmont Canada Limited, it was then
returned to the claim holders in early 2009 and subsequently optioned to Evolving Gold Corp.. The option
agreement was then transferred to Prosperity Goldfields Corp. late in 2010. The summer of 2011 saw
exploration by Prosperity Goldfields, and included 2679 m of diamond drilling and minor surface
prospecting / sampling. A more detailed review of work conducted on the property can be found in the
table following. No historical mineral resource or mineral reserve estimates have been made for the Kiyuk
Lake gold mineralization. Furthermore, no gold production has been undertaken from the area"

Of this 2679 m of drilling three noteworthy results were found:

Cobalt discovery, 31.4 m at 2.41 g/t Au
Rusty discovery, 42.4 m at 3.3 g/t Au
Gold Point discovery, 63.6 m at 2.8 g/t Au

The Rusty and the the Cobalt holes are both respectable drill results. Below is a picture which gives an idea of the amount of exploration work done at each area and the distance between them.

Nunavut and the Canadian arctic are interesting areas because they largely unexplored (from a resources point of view, among many others) and there is, given what geologists know about the geological history of the land, high potential for gold; as we are finding out. From a scientific perspective, there really is very little known about its geological qualities. The 3D models being put together by geologists working for exploration companies are some of the most advanced models put forth for this area.

That being said, exploration can be tough and costly up north. Infrastructure is next to non-existent and companies are having to come up with their own strategies for getting in supplies, and moving them around (most of it involving costly float plane and helicopter trips).

I know a number of companies are in the early stages of conducting an environmental impact study up by Bathurst inlet. The idea is to build a small port then a road. The Helicopter trip (which I had the luxury of taking twice) took 40 minutes with favorable wind. Long way for trucks to go. That being said, PPG, being closer to the Manitoba border, may not have such a difficult/costly go of it. Kind of the best of both worlds, remote enough to have a chance to find something big in a place most haven't bothered to look, but still close enough to infrastructure.

As well, the Inuit community has seemed quite co-operative in the stories which I have been following.

Anyways...I'll continue to keep my eye out for the interesting stories coming out of the Canadian Arctic and I'll be putting PPG on my watch list.

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