Q&A White Gold: White Gold Corp to Acquire QV Gold Project from Comstock Metals Ltd; Includes 230,000 Oz Au Inferred Resource on the VG Deposit Contiguous to the White Gold Property
On January 14, White Gold Corp. (V.WGO) put out a press release detailing its acquisition of the QV Project from Comstock Metals Ltd.
White Gold Corp. CEO, David D’Onofrio, was recently interviewed about this acquisition.
1. What makes this acquisition a good fit for White Gold?
There are a few aspects of the QV Gold Project that make it an excellent compliment to our portfolio of properties in the White Gold District.
Firstly, the 230,000 ounce gold deposit is a good addition to our existing resource at Golden Saddle & Arc and is the same style of mineralization as the Golden Saddle and only 10km away. Secondly, the property has had extremely limited exploration work to date, and the existing targets share many similarities with our assets including Golden Saddle and Vertigo. Additionally, our team already has extensive experience with the property, including Shawn Ryan, our Chief Technical Officer, who originally staked the property and optioned it to Comstock back in 2010; and Jodie Gibson, our VP of Exploration, who oversaw the discovery drilling of the VG zone deposit!
When the opportunity came up to acquire the property we immediately jumped on it, and now we are very excited to expand the existing deposit, further advance the other known targets on the property, and deploy our experienced team on this underexplored property.
2. What kind of work has been completed on the QV property to date?
Most of the exploration to date has been on the VG Zone deposit, which is on the southern end of the property. The VG deposit has only seen approximately 4,300 metres of diamond drilling across 23 holes. 17 of the holes produced the original resource estimate in 2014 of 230,000 ounces of gold, and the remaining 6 holes were drilled in 2017 and were not included in the resources. The 2017 drilling included 1.42 g/t gold over 45.5m, which expanded the mineralization 125 metres down dip from previous drilling, and 1.48 g/t gold over 51.2m, which expanded the mineralization 45m west of previous drilling. Based on these results we are confident that there is significant unrealized potential to add ounces to this deposit.
Additional exploration work on the property has included soil sampling, trenching, geological mapping/prospecting, minor RAB drilling, and a mix of other only grass-root stage activities. The property still remains vastly underexplored and we’re looking forward to letting our exploration team get to work on maximizing the potential of this property.
3. What kind of drilling results have been produced on the project to date?
Despite the minimal drilling on the property to date, there have been some very significant results, with consistent intervals of 40 to 50 metres of over 1.0 g/t; and one hole up to 78 metres! Highlights include holes QV12-001: 1.03 g/t Au over 78m, including 6.15 g/t Au over 5.6m; QV12-004: 2.23 g/t Au over 42m; QV12-006: 1.45 g/t Au over 60m; and QV13-012: 1.76 g/t Au over 42.3m.
As mentioned, the 2017 drill program also had strong results which weren’t included in the resource, with QV17-018 producing 1.42 g/t gold over 45.5m, growing the mineralization 125 metres down dip from previous drilling. Also, QV17-019 with 1.48 g/t gold over 51.2m, which grew the mineralization 45m west of previous drilling.
What has really grabbed our attention is the similarities between targets on the property, such as the VG Zone deposit and Shadow target, and our existing properties. The VG Zone deposit shares the same structural setting and mineralization style as our nearby Golden Saddle deposit. Additionally, the exploration targets on the north of the property we’re acquiring have the same style of mineralization we saw at our recent Vertigo discovery. There are major opoortunities for us to leverage these similarities to maximize the value of this new property.
About White Gold Corp.
The Company owns a portfolio of 21,218 quartz claims across 34 properties covering over 423,000 hectares representing over 40% of the Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 ounces Indicated at 2.43 g/t gold and 282,490 ounces Inferred at 1.70 g/t gold as set forth in the technical report entitled “Independent Technical Report for the White Gold Project, Dawson Range, Yukon, Canada”, dated March 5, 2018, filed under the Company’s profile on SEDAR. Mineralization on the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. Regional exploration work has also produced several other prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee project owned by Goldcorp Inc. with a M&I gold resource(3) of 3.4M oz and Western Copper and Gold Corporation’s Casino project which has P&P gold reserves(3) of 8.9M oz Au and 4.5B lb Cu. For more information visit www.whitegoldcorp.ca.
- Noted mineralization is as disclosed by the owner of each property respectively and is not necessarily indicative of the mineralization hosted on the Company’s property.
Cautionary Note Regarding Forward Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", “proposed”, "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to the completion of the Acquisition; the anticipated benefits to the Company, the Vendor and their shareholders respecting the Acquisition; the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the Company’s properties; future growth potential of the Company, including whether any proposed exploration programs at any of the Company’s properties will be successful; exploration results; and future exploration plans and costs and financing availability.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or the Vendor to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company and Vendor relating to the Acquisition; expected benefits to the Company relating to exploration conducted and proposed to be conducted at the Company’s properties; the receipt of all applicable regulatory and third party approvals, as required, for the Acquisition; failure to identify any additional mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Company’s properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described in the most recently filed management’s discussion and analysis of each of the Company and Vendor. Although the forward-looking statements contained in this news release are based upon what management of the Company and Vendor believe, or believed at the time, to be reasonable assumptions, the Company and Vendor cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. Neither the Company nor the Vendor undertakes any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither the TSX Venture Exchange (the “Exchange”) nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Chief Executive Officer
White Gold Corp.
Steven H. Goldman
President, CEO and Director
Comstock Metals Ltd.