Minkap's Breccia Gold Project - A Good Bet
Minkap KAP.V, recently acquired the "Breccia" gold prospect from a private company, DG Ltd., and Canarc Resources (see September 15th news release for deal terms). The board of directors and management have acquired a very prospective gold project on favourable terms, especially in the current market conditions, and compared to the recent and adjacent US GOLD (NASDAQ: USAU) acquisition of the Chalice gold project for about 1.87 million shares, currently trading over $US13/share. US Gold's Chalice gold project is located immediately north of "Breccia", and reports a 43-101 noncurrent resource of 313,825 oz. gold at 1.22 grams per tonne (Northern Miner Aug 12 or news for USAU on Stockwatch).
The Breccia prospect covers the historic past producing Gahsmith gold mine, with production known to occur during the 1930's and 1940', is located in Lemhi County, and is accessible by road about 40 km west-southwest of Salmon, Idaho. Lemhi County, host to numerous base and precious metal deposits in close proximity to "Breccia", has a long history of both hard rock and placer gold mining.
The "Breccia" prospect is characterized by a low sulphidation epithermal, gold bearing silica rich breccia, ranging from 8-20 meters wide, over 500 meters in length, and open along strike and depth. Recent grab samples assay as high as 83.4 g/t Au.
Two unverified historic 1985 drill holes yielded the following results:
- DDH 1: from 200' to 300'
- DDH 2: vertical surface to 100'
- These holes averaged an unverified grade of .14 opt.
A historic bulk sample of about 4621 tons, from a bulldozer trench 10' deep, 20' wide and 200' long, averaged an unverified grade of .335 oz/t.
Historic mapping and sampling of the bulldozer trench identified very high grade late stage veinlets cross cutting lower grade siliceous breccia clasts. I interpret these to indicate the "Breccia" hydrothermal system was long lived, with multiple mineralizing events.
The "Breccia" gold bearing low sulphidation epithermal system is also characterized by a very low base metals content, and along with recent high grade samples, indicates the top of the boiling zone has only just been unroofed by erosion. I believe a staged and large drill campaign should intersect ore shoots with bonanza grades and "jewelry boxes" within this system.
An old geology map from historical work by Noranda indicates additional exploration potential on the Breccia property. An argillic alteration zone is located north east of the Breccia zone, and on trend with the Musgrove Gold Deposit. This alteration zone is the largest in the immediate area and warrants more work as it may be situated above a new and large gold bearing epithermal system.
From an investor's perspective, the team is competent; the share capitalization is low, currently standing at 17.6 million free trading shares, and subject to Breccia financings and deal terms, about 51 million shares fully diluted; historic results point towards a successful initial drill program; and most important, historical results, geology and extent of surface showings suggest potential for a multimillion ounce deposit. Minkap and the "Breccia" gold prospect appear to "tick all the boxes", having all the ingredients needed for a high ranking amongst new junior gold explorers.
Disclosure: I have taken an initial position in the shares of KAP.V and may buy or sell at any time and without notice. I have no affiliation with KAP.V of any kind. The commentary is entirely my opinion based on my research and experience.