As a general rule, the most successful man in life is the man who has the best information
TNR Gold Corp. (TSX: V.TNR, Stock Forum) is focused on early stage exploration for gold, rare and minor metals. The company has early to mid-stage exploration assets with 18 active projects held within three groups: Argentina gold-copper, lithium/rare metal projects and Alaskan gold.
TNR recently announced an increase to a 100% undivided ownership interest in the Shotgun project. NovaGold Resources Inc. (TSX: T.NG, Stock Forum) has agreed to sell its 50% participating interest in the property to TNR for six million common shares and three million share purchase warrants.
NovaGold now holds just under 10% of TNR. Management and insiders hold 50% of the company. Barrick Gold Corp. (TSX: T.ABX, Stock Forum) and (NYSE: ABX, Stock Forum) is a major shareholder and Canada Zinc Metals Corp. (TSX: V.CZX, Stock Forum) owns shares as well.
The Shotgun property is located 175 kilometers south of Donlin Creek within the Kuskokwim Gold Belt in Southwestern Alaska, an area emerging as a world-class gold district hosting more than 40 million ounces of aggregated gold resources. The Shotgun property includes a number of prospects, including Shotgun Ridge and nearby Winchester.
“The Shotgun property is a major gold asset and the successful unification of a 100% interest translates into a significant increase in inherent value for the Company. The current economic climate is ideal for the advancement of a project such as this and we look forward to the opportunity to realize its potential." Gary Schellenberg, CEO
Shotgun Ridge has an estimated historical resource of 980,000 ounces grading 0.93 gram per tonne (g/t) at a cut-off of 0.5 g/t (National Instrument 43-101non-compliant resources).The geology and style of mineralization at Shotgun is very similar to the Dome area of the Donlin deposit. Donlin is an intrusion-associated system and represents one of the largest undeveloped gold deposits in the world. NovaGold intends to sell non-core projects in order to advance the Donlin Creek project towards construction
A drill program conducted in early 2006 at Shotgun Ridge reported a 210.5 meter intersection grading 1.29 g/t Au. This led to the identification of two higher grade feeder zones and the mineralization is open at depth. This discovery intersection has not yet been followed up.
The Winchester zone (no historical resource) is an underexplored intrusion-associated gold prospect situated approximately 16 km south of Shotgun Ridge. The full extent of mineralized sills and dykes at Winchester is unknown since only 1.5 kilometers out of the 8 kilometer long ridge, host to numerous unexplained gold geochemical anomalies, has been explored in detail.
Although the style of gold mineralization in sills at Winchester is quite different from the quartz-breccia stockwork that hosts the gold at Shotgun Ridge, the two prospects are geochemically very similar and are considered to be part of the same overall system. TNR believes a major structural axis, encountered in several drill sections, is critical to the mineralization and runs parallel to the ridge at Winchester.
Focused exploration during 2004-5 identified an area along the ridge with a 1.4 km surface trace that has anomalous gold in talus and soils. Drilling during the summer of 2005 identified a bedrock source for some of this gold and in July 2006 it was announced that hole 06-45 had intersected 24 meters of 1.9 g/t gold.
A total of seven holes now complete a section through the ridge at Winchester. These sevenholes provide TNR with a significantly clearer picture of the geology, structure and mineralization than was previously available.
Gold mineralization continues to be most closely associated with light grey, equigranular, fine to medium grained felsic intrusive sills and is not restricted to brecciated zones or veins. The light grey intrusive grades into other phases including a porphyry, where it continues to carry significant gold for tens of meters. TNR believes it has tested less than half the sills that are currently known to exist at Winchester.
The other two prospects that make up the Shotgun property are Shot and King. Shot contains some of the strongest geochemical anomalies on the Property and needs to be tested for similar mineralization to that found at Winchester. King includes several unexplained geochemical anomalies as well as a drill ready breccia zone. Neither the Shot or King have historical resources.
Shotgun and Winchester Work Program
Winter 2010
Several preparatory actions for a major 2011 program are ongoing:
- Consolidate and analyze all previous exploration program data to put together a comprehensive exploration plan
- Another geophysical survey of Shotgun ridge using 3D geophysics technology
- Consult with resource geo-engineers in regards to density, depth, and drilling required for a NI 43-101 compliant resource
- Plan drilling targets for 2011 Spring to increase resource past million oz. gold
- Surface geophysics planning
Spring 2011
- $3.1 million field program commences
- Drilling program to bring Shotguns historic resource to a 43-101 compliant inferred resource
- Explore Winchester zone to test potential and develop an initial resource
Conclusion
TNR is in the right area - a prolific gold belt with huge deposits as neighbors - and has the perfect gold environment to move forward with its Shotgun Project. Nova Gold now holds just under 10% of TNR. Management and insiders hold 50% of the company. Barrick Gold is a major shareholder and Canada Zinc Metals owns shares as well.
A million oz gold deposit is not a small deposit and 100 percent ownership plus the bluesky potential of the rest of the property is an excellent place to start from. Is TNR’s Alaskan Gold on your radar screen?
If not maybe it should be.