There are no sure bets in junior mining exploration but it’s easier with experienced management and a nearby existing deposit with proven past high-grade gold production.
Take the gold-rich Campbell Shear as a Canadian Shield example. Nestled near Yellowknife, NWT, the region is a geological treasure trove that has yielded over 14 million ounces between 15 to 22 grams per ton (g/t) of gold within a five-kilometer stretch. The Campbell Shear is where to find the Con Mine Option (CMO) property, host to the former Con Mine, which contributed a significant 6.1 million ounces of gold between 1938 and 2003.
Canada’s Gold Terra Resource Corp (TSX-V:YGT, OTCQX:YGTFF) is aiming to unlock the rest of the resources at the CMO property located south of the town of Yellowknife, and along the extensive 70-kilometer-long Campbell Shear structure.
Unmined reserves
The Con Mine, under the ownership of Cominco Limited from 1939 to 1986, gained prominence with the discovery of the Campbell Shear in 1946. The discovery led to a highly productive zone, becoming the primary source of gold production. In 1977, the Robertson Shaft delved into new reserves, reaching a depth of 6,000 feet under the ownership of Cominco.
Following Cominco’s tenure, the Con Mine changed hands, finding itself under the ownership of Nerco Minerals in 1986. This transition marked a phase of modernization with the introduction of mechanized machinery to the underground operation. However, the mine’s journey took another turn in 1993 when Nerco sold it to Miramar Northern Mining Ltd (MNML). Newmont purchased Miramar and the CMO asset in 2008.
The decision to close the Con Mine in 2003 was prompted by the unfavorable gold prices, hovering around US$350 per ounce—a figure deemed unsustainable for continued production. The closure, however, left behind a wealth of historic, unmined reserves within the mine property, laying the groundwork for future exploration.
In November 2021, Gold Terra finalized the definitive option agreement with MNML to purchase MNML. In tandem with the option agreement, Gold Terra has entered into a subscription agreement with Newmont for a strategic investment of C$1.5 million.
The agreement allows Gold Terra to explore 100% of the Campbell Shear structure at the Con Mine and south of it. To exercise the option, Gold Terra commits to incurring a minimum of C$8 million in exploration expenditures over four years. The company has already invested approximately C$10 million in exploration to date.
Expanding mineralization at the Campbell Shear
Fast forward to the present. Gold Terra has strategically expanded its footprint by securing a key piece of ground along the Campbell Shear. The ongoing drilling initiatives, particularly in the Yellorex zone, have yielded promising results. Notable among them include high-grade gold assays such as 5.22 g/t over 17.86 meters, including 11.21 g/t over 4.57 meters.
As Gold Terra resumes its deep drilling directional program in 2024, the focus remains on expanding the high-grade gold mineralization in the Campbell Shear.
Chairman and CEO Gerald Panneton calls the Campbell shear structure, which extends at depth below the underground workings, as well to the south as “highly promising targets”.
Panneton knows exactly what a promising target looks like. A seasoned geologist with an impressive 35-year career, Gold Terra’s CEO boasts extensive experience in both domestic and international exploration and development within the gold mining sector. His achievements include serving as the founder and CEO of Detour Gold between 2006 and 2013, where he led the expansion of the Detour Lake project from 1.5 million ounces to over 16 million ounces in reserves for a 30 million-ounce resource, achieving production within just over six years. At the same time, Panneton helped secure nearly $2.6 billion in capital during his tenure. Recognized for his contributions, he and his team at Detour Gold were honored with the PDAC 2011 Bill Dennis Award for Canadian mineral discoveries and prospecting success.
Prior to his role at Detour Gold, Panneton spent 12 years at Barrick Gold, where he played a key role in advancing gold projects in Tanzania.
“In the initial few years of drilling, we have successfully outlined nearly 542,000 ounces of gold within the first 500 meters from surface along the southern extension of the Campbell shear,” Panneton told Proactive.
The Campbell Shear, stretching 70 kilometers, mirrors the structural foundations of renowned gold camps like Timmins, Red Lake, Kirkland Lake, and others across Canada. These camps share the commonality of possessing extensive, deep-seated structures. In the case of the Campbell Shear in Yellowknife, only 10% has been explored thus far.
“Given the enduring nature of deposits in geological axiom, which can extend indefinitely, we believe there’s substantial potential for mine development,” Panneton said.
A historic region
Gold Terra’s initial drill hole below the Con Mine underground workings returned 12.7 g/t over 1.7 metres, which Panneton called “technically and visually successful results,” that reinforce the company’s confidence in the project’s future prospects.
Gold Terra has experienced success at the drill bit. While navigating a target with a 50-meter width presents challenges in uncovering unknown elements, the history of the Yellowknife region is on the company’s side.
“It’s crucial for people to comprehend that whether we encounter five grams over 20 meters, 20 grams over 20 meters, or a slightly lower grade, the mere presence of gold in the first cut is highly promising and encouraging,” Panneton concluded.