Company description
Gold Terra Resource Corp. (TSXV:YGT)(OTCQB:YGTFF)(FRA:TXO) is a gold focused exploration and development company with assets in northern Canada, close to the city of Yellowknife and excellent readily available infrastructure. The company is led by Chairman & CEO Gerald Panneton. Panneton is a big name in mining land, being the founder, developer and builder of Detour Gold, one of the largest gold mines in Canada today, and he brought it from exploration into production in only 6 years. It was sold eventually in 2020 for C$4.89B to Kirkland Lake Gold. Gerald received the PDAC 2011 Bill Dennis Award for the discovery of Detour Lake.
Gold Terra’s predominantly 100% owned flagship Yellowknife Project (YP) in the southern part of Northwest Territories is part of a district scale land package of 918 km2 in the historic gold mining district of Yellowknife, very close to the former producing Con and Giant mines (total of 14Moz production at 16-22g/t Au). The project covers a mostly underexplored 70km of the Campbell Shear, which contains all mineralization (present and produced) so far.
The Con Mine Option, part of the flagship project and which for example covers all former Con Mine workings (including an existing 1900m deep Robertson Shaft which is still intact and can easily be dewatered and reserviced) and is currently the focus of Gold Terra, is subject to an earn-in agreement with Newmont. Gold Terra has to spend C$8M before November 2025, of which already C$7M has been spent, and ongoing 2024 drilling will certainly satisfy this condition. The goal is to outline at least 1.5Moz Au in all categories, after which Gold Terra has to make a C$8M cash payment and grant a 2% NSR to Newmont to gain full ownership, subject to a 50% buyback.
The Yellowknife Project consists of two NI43-101 deposits so far, YP has 1.2Moz @ 1.54g/t Au Inferred and the Con Mine Option has 541koz @6.95g/t Au Indicated and Inferred. The Con Mine Option also has a historic resource of about 650koz @ 11-12 g/t Au at depth, below the former Con Mine workings, all part of the Campbell Shear. The idea is to look at another location below these workings (-2,000M) for more gold, as earlier historic drill results identified stellar intercepts like 19.3m @ 534g/t Au, 12.4m @ 22.5g/t Au and 6.89m @ 79.3g/t Au. A directional drill program is currently underway, consisting of one master hole and multiple lateral and shallower wedges, intersecting the Campbell Shear in a pattern to outline a potential mineralized zone.
This program was made possible by the latest oversubscribed financing, where Gold Terra raised C$2.5M on April 19, 2024, a financing that was led by no other than Eric Sprott, and Rob McEwen participated as well, two of the titans in our industry. This enables Gold Terra to drill for most of 2024, and with the gold price above US$2300/oz the timing couldn’t be better.
Share price Gold Terra Resource Corp: