Four separate gold-bearing zones have been identified on Northern Tiger Resources Inc.’s 3Ace property in the southeast Yukon, Canada. In addition, initial drill results from the Sonora Gulch property in the Dawson Range area of the central Yukon have verified the existence of an underlying porphyry system.

“We are excited to announce that Northern Tiger’s initial exploration program at the 3Ace project is continuing to demonstrate its high-grade gold potential. We expanded the strike length of the high-grade discovery vein to over 50 metres before it disappears under heavy overburden. Significantly, initial exploration results have now identified four gold zones in a two-square-kilometre area, each returning at least one-ounce-plus gold assay. Visible gold has been noted in three of the zones,” says Greg Hayes, president of Northern Tiger. “The drilling program at Sonora Gulch has also met its primary objective of verifying that a porphyry copper-gold-molybdenum system is responsible for the alteration and mineralization at Sonora Gulch. With a gold-in-soil anomaly measuring nine square kilometres coupled with the fact that we have only tested a handful of the recommended Titan 24 chargeability anomalies, Sonora Gulch continues to be a high-priority exploration target.”

3Ace

Northern Tiger has completed the initial surface exploration program at 3Ace, consisting of prospecting, mapping and sampling. The primary objectives of the 2010 program were to investigate the extent of high-grade gold mineralization associated with the discovery vein, where previous grab samples returned values up to 140 ounces per ton and to explore the rest of the property for additional mineralized structures and systems. High-grade assays have now been returned from four separate gold zones, and additional results are pending.

Hand trenching has traced the discovery vein for approximately 50 metres along strike before it disappears under heavy overburden. The north-trending discovery vein dips minus-50 degrees to the east and is hosted in a shear zone (the Main zone) which crosscuts a contact between interbedded quartz-pebble conglomerate and fine-grained phyllite lithologies. The exposed sections of the vein have averaged approximately one metre in width. Results from a soil sampling grid suggest that the Main zone extends for a minimum of 100 metres, and also suggest the presence of a second mineralized vein to the east (up-slope) of the discovery vein.

A second zone named the Sleeping Giant and located approximately 1.2 kilometres east of the Main zone consists predominantly of a white massive quartz vein with variable amounts of course crystalline arsenopyrite. Sampling of the vein has also identified visible gold in three locations. The mineralized structure trends north, has a minimum width of 25 metres, and has been traced along strike for 300 metres before disappearing under overburden. To date, assays received from 20 rock samples have ranged from trace to 44.2 grams per tonne gold (from a 1.1-metre chip sample).

The Green zone is located two kilometres north of the Main zone and consists of an east-west-trending zone hosting scoroditic and arsenical mineralization extending at least two kilometres in strike along a property-scale structural corridor. Mineralization occurs both within small veins and, more commonly, as strongly altered quartz-pebble conglomerate wall rock, commonly brecciated and associated with strong clay alteration and local silicification. To date, assays have been received from 67 rock samples and returned values from trace to 66.5 g/t gold (from a grab sample). A total of 17 rock samples returned values in excess of 1.0 g/t gold.

The North zone, located roughly 500 metres east-northeast of the Main Zone, consists of metre-scale quartz veins with arsenopyrite, minor galena and visible gold. Assays received to date from 14 rock samples range from trace to 90.8 g/t gold and 5.0 g/t silver (from a 1.5-metre chip sample). Roughly 70 metres to the east, another 1.5-metre chip sample of quartz pebble conglomerate with quartz veining and clotty arsenopyrite returned 1.5 g/t gold. Both samples occur within an area of abundant quartz veining and strong silicification within quartz-pebble conglomerate.

Assays have been received for approximately 58 per cent of a large program of chip, rock, soil and silt sampling. Additional results are pending.

Sonora Gulch

The Sonora Gulch project is 100 per cent owned by Northern Tiger and is located in the central Yukon’s Dawson range. Twelve diamond drill holes totalling 2,875 metres were recently completed on the Sonora Gulch property. Two of the 12 holes were abandoned at shallow depths due to difficult drilling conditions. The program was primarily designed to test for the presence of a porphyry copper-gold-molybdenum system as suggested by past exploration results and two holes were also collared in a gold-in-soil anomaly (the Gold Vein zone).

Drill hole locations were chosen based on a combination of factors including geophysical interpretation, alteration and geology, and focused on the central portion of a previously identified copper-molybdenum soil anomaly covering over two square kilometres. This area exhibits extensive surface expressions of sericite-pyrite (phyllic) alteration flanked to the north and south by chlorite-epidote-pyrite (propylitic) alteration. The south flank of the phyllic zone extends along Little Kline’s Gulch which is largely overburden-covered although some exposures contain foliation controlled magnetite/biotite (potassic) alteration within altered metavolcanic rocks. A number of the drill holes targeted anomalies identified by a deep-penetrating geophysical survey done by Quantec Geosciences Ltd. and also tested radiometric and magnetic targets identified from a 2009 airborne geophysical survey. Quantec recommended a total of 29 drill holes (including 14 high priority holes) to test chargeability anomalies identified by the Titan 24 survey. Due to the relatively modest drill program, large number of promising targets and logistical limitations of using a skid-mounted drill, only five of the recommended Titan 24 chargeability targets were drill tested in the 2010 drill program. The balance will be considered for drilling in 2011.

The first three holes (SG10-45, 46, 47) cored strongly silicified quartz feldspar porphyritic monzonite containing disseminated and fracture controlled pyrrhotite with minor chalcopyrite. Later holes encountered carbonate-altered metavolcanic wall rock exhibiting skarn and replacement-style sulphides, locally semi-massive. This includes massive magnetite and semi-massive pyrite plus/minus pyrrhotite plus/minus chalcopyrite plus/minus molybdenite along open fractures and in crosscutting quartz veins. Assays from the first five holes (including the two abandoned holes) have revealed sections of geochemically anomalous copper, gold and/or molybdenum values, although no economically significant zones of mineralization are indicated to date. Assay results are pending for the remaining holes.

Minto-style targets

A two-hole (404 m) diamond drilling program has recently been completed on the Dad property. The drilling tested a gradient array induced polarization (GAIP) anomaly coincident with a copper-in-soil geochemical anomaly suggestive of Minto-style disseminated sulphide mineralization. Assay results are pending.

This news release has been reviewed and approved by Dennis Ouellette, BSc, PGeol, a qualified person as defined by National Instrument 43-101. Samples from Sonora Gulch were analyzed by ALS Chemex of North Vancouver, B.C., Canada, using 50-gram fire assay and 35-element ICP analysis. Samples from 3Ace were analyzed by Inspectorate America Corporation of Richmond, B.C., using 50-gram fire assay and 50-element, four-acid ICP analysis. Samples returning in excess of 30 g/t gold are also sent for metallic screen fire assay testing.

West anomaly

Trenches 2 to 4 defining an east-trending 200-metre soil and bulk-rock trench sample anomaly, previously reported (see Stockwatch news release dated Aug. 11, 2010), showed a 30-metre zone of silicified metasedimentary rocks returning 0.168 gram per tonne gold between five and 35 metres.

Trench 3 located 100 metres east of trench 2 returned samples of 232 and 288 parts per billion gold over two consecutive five-metre sample intervals.
Trench 4 located 100 metres east of TR-3 returned 0.264 gram per tonne Au over 15 metres between five and 20 metres.

East anomaly

East anomaly (located 2.5 kilometres east of the West anomaly) trench samples have highlighted an area of anomalous gold that returned up to 1,490 ppb Au over a five-metre interval from 65 to 70 metres as well as a number of other samples in the range of 100 to 200 parts per billion. From 65 to 115 metres, the trench assays have returned 0.205 gm/t Au over 50 metres.

Core drilling

Crews are currently on site preparing drill pads on both the West and East anomalies, for a planned drill program to further explore these anomalies. A total of six diamond drill holes have been planned for a total of 750 metres on these two anomalies.

Three to four holes will be drilled on the West anomaly over trenches 2 and 4. These trenches produced anomalous gold and are approximately 200 metres north of a 6,082-part-per-billion gold-in-soil anomaly. The drill will then be mobilized to the East anomaly to complete two additional holes over trench 7 which returned an assay of 1,490 ppb Au over five metres. In this zone, anomalous areas are underlain by strongly oxidized metasedimentary rocks with abundant iron oxide, manganese staining and oxidized pyrite.

Kluane Driling Co. of Whitehorse, Yukon, has been contracted to perform the diamond drilling on this project. Drilling is expected to start next week on the property.

The company expects to release a map showing all of the Dime trenches and proposed drill pads early next week.

Taku has agreed to purchase the five properties for total consideration of 1.8-million common shares of Taku. Taku has also agreed to pay invoices submitted by third party contractors for staking costs that in aggregate will not exceed normal commercial rates of $250 per claim ($380,500 total). The Shares will be subject to a four month hold period, as prescribed by applicable securities legislation and the policies of the TSX Venture Exchange.

The Sulphur property includes 548 claims (11,344ha) and was staked to cover the southeast-trending ridge that separates Sulphur Creek from the Indian River where significant placer gold has been produced historically and production is still ongoing. Total consideration for a 100% interest in the Sulphur property is 655,000 common shares subject to 2.0% net smelter returns royalty. Taku will have the right to buy back the first 1% of the royalty for $1-million cash and will have the right of first refusal to purchase the remaining 1%.

The Quartz property includes 146 claims (3,022ha) and was staked to cover left limit of Quartz Creek where significant placer gold has been produced historically and production is still ongoing. Total consideration for a 100% interest in the Quartz property is 165,000 common shares subject to 2.0% net smelter returns royalty. Taku will have the right to buy back the first 1% of the royalty for $1-million cash and will have the right of first refusal to purchase the remaining 1%.

The Montana property includes 268 claims (5,548ha) and was staked to cover the lower end of Montana Creek and Steele Fork. Airborne magnetic data and limited geological mapping indicate that Steele Fork follows a thrust fault prospective for gold mineralization. The property ties onto the northeast corner of Kinross’s JP Ross property. Total consideration for a 100% interest in the Montana property is 320,000 common shares subject to 2.0% net smelter returns royalty. Taku will have the right to buy back the first 1% of the royalty for $1-million cash and will have the right of first refusal to purchase the remaining 1%.

The Wounded Moose property includes 280 claims (5,796ha) and was staked to cover a series of circular airborne magnetic highs that parallel Wounded Moose Creek where placer gold production has been recorded. Total consideration for a 100% interest in the Wounded Moose property is 330,000 common shares subject to 2.0% net smelter returns royalty. Taku will have the right to buy back the first 1% of the royalty for $1-million cash and will have the right of first refusal to purchase the remaining 1%.

The AM property includes 280 claims (5,796ha) and covers the headwaters of Australia and Melba creeks where placer gold production has been recorded. The property was staked to cover a prominent airborne magnetic low that continues from Gold Run Creek across the Indian River valley onto the AM property. Gold Run is historically one the most productive creeks in the Klondike goldfields and continues to produce placer gold today. Total consideration for a 100% interest in the AM property is 330,000 common shares subject to 2.0% net smelter returns royalty. Taku will have the right to buy back the first 1% of the royalty for $1-million cash and will have the right of first refusal to purchase the remaining 1%.

“Our goal is to make Taku a leader in the White Gold District. These new acquisitions give us a land base to pursue exploration over a 4 to 5 year period” stated Zak Dingsdale, President and CEO.

The Double Double trend is one of three gold discoveries announced by Kaminak during the continuing 2010 drill program on its 100-per-cent-owned Coffee property located in the White district, Yukon Territory. Additional assay results from the Supremo and Latte zones are expected in the coming weeks and initial drilling of the Kona trend is under way.

Drill results

The Double Double zone is associated with a regionally significant, east-northeast trending and steeply north-dipping structure coincident with a 300 m long by 100 m wide gold-in-soil anomaly. The structure comprises shear zone and breccia fabrics overprinting variably textured schist giving the overall appearance of a high-strain fault zone. Gold occurs in this fault zone and alteration typically consists of silicification, clay alteration, local sericite in addition to oxidized sulphides.

Drill hole CFD-27 and CFD-28 were drilled from the same set-up inclined to the north at negative 50 and negative 70, respectively. Results from CFD-27 were previously released by Kaminak on Aug. 11, 2010, and two significant gold zones were reported: an upper zone of 2.04 g/t Au over nine m (from 34 m core depth) and a lower high-grade intercept of 6.3 g/t Au over 35 m from 139 m, including 18 m.

New results from CFD-28 are highlighted by an intercept of 15.91 g/t Au over five m starting from 213 m core depth. Several discrete greater than one g/t Au intervals also occur further downhole, including an intercept of 1.37 g/t Au over 3.4 m at the bottom of the hole.

Drill hole No. From (m) To (m) Length (m) Weighted grade (g/t)

CFD-28 213 218 5 15.91
and 299 302 3 2.13
and 327 330.4 3.4 1.37

(i) True width is estimated at 70 to 100 per cent of core length.

Data from oriented core measurements combined with detailed geological core logging from CFD-27 and CFD-28 suggest that this new high-grade intercept from CFD-28 is hosted in a separate and parallel structural zone from the high-grade CFD-27 intercept. The occurrence of anomalous (greater than one g/t Au) gold values at the bottom of CFD-28 is consistent with these observations.

With additional claims now staked on the Mariposa property, Mariposa now consists of 453 mineral claims covering 90 square kilometres. The western boundary of Mariposa lies approximately 30 kilometres northeast of Kaminak Gold’s Coffee Creek property and 25 kilometres southeast of Underworld Resources’ White gold property (now owned by Kinross Gold Corp.).

Pacific Ridge’s Mariposa property is held by way of an option to earn a 100-per-cent interest from the Tintina syndicate, the details of which agreement were previously reported.

Within the Mariposa property, geochemical soil sampling surveys continue to define new gold exploration targets that require further definition. A 6,500-sample property-wide geochemical soil sampling program is about 30 per cent completed, with over 2,100 soil samples collected to date and geochemical results for 1,750 samples now received. Geologic mapping and rock sampling continue, and trenching of geochemical anomalies has commenced. Details follow with respect to five gold targets partially outlined to date — each geochemically anomalous in gold and related elements. Geochemical soil sampling has proven to be the most effective tool for gold discovery in the South Klondike. Gold values in excess of 20 parts per billion are generally recognized as being anomalous.

Skookum Jim (named after the co-discoverer in the original Klondike gold rush) has been established within the central area of the Mariposa claims. The target has a northeast-trending strike length of 1,100 metres, a width of 600 metres and remains open-ended pending receipt of additional analytical results. Gold-in-soil geochemical values reach peak values of 1,570 parts per billion within an anomaly defined in excess of 20 parts per billion gold. In addition, anomalous values in antimony, bismuth, copper and molybdenum are present. Adjacent to the Skookum Jim anomaly, float samples collected by prior workers (1998) reported gold assays up to three grams gold per tonne. Float prospecting in the area suggests that gold mineralization may be hosted within quartz-rich well-altered rocks, a setting similar to other recent gold discoveries in the South Klondike.

Gertie (in recognition of the Klondike’s “Dance Hall Queen”), located two kilometres southwest from Skookum Jim, is highlighted by two distinct parallel geochemical trends (approximately two kilometres long and 150 metres wide) as defined by anomalous values of bismuth, arsenic and molybdenum. Gold-in-soil values, ranging up to 149 parts per billion gold, are found adjacent to and within the anomalous trends. Historic sampling in the area returned values to 1,333 parts per billion gold. Float prospecting suggests that the two anomalous trends are underlain by quartz muscovite schist, which may be structurally repeated. Along trend, to the east, bedrock schists exposed by placer mining in Mariposa Creek returned a value of 2,530 parts per billion gold over a two-metre chip sample taken from a pyritic granitic dike.

The Hackly anomaly, located within the eastern part of the original Mariposa claim block, contains anomalous gold values within an area measuring approximately 400 by 700 metres. This target is in close proximity to placer gold workings in Mariposa Creek, where “hackly” gold nuggets have been recovered. These rough-textured nuggets suggest proximity to a potential lode-gold source. The anomalous area exhibits peak gold-in-soil values reaching 129 parts per billion gold from this year’s sampling and 256 parts per billion gold from previous sampling in 2009 by the Tintina syndicate. Anomalous values in bismuth and molybdenum are also present.

Maisy (”Maisy Mae” of gold-rush fame) is located within the western portion of the Mariposa claims, south of Cabin Creek. Maisy exhibits gold-in-soil values up to 73 parts per billion gold in an area of highly silicified quartz mica schist float that has been traced 400 metres to the northwest. Samples of the siliceous float returned values up to 784 parts per billion gold and 4,222 parts per billion copper. Anomalous values in bismuth, molybdenum, arsenic and antimony are also reported.

Big Alex (historically known as “King of the Klondike”) is located within the northwest part of the property and lies adjacent to Scroggie Creek. Two zones of gold-in-soil anomalies are emerging with only partial results received to date in an area underlain by pegmatite dikes. Values to 203 parts per billion gold have been received, with elevated values of antimony and molybdenum. To the east, and near Scroggie Creek, a value of 3.0 grams per tonne gold has been reported in pyritic quartz breccia within pegmatite dikes and granite bedrock exposed by placer mining. Within the vicinity of Big Alex, gold-in-quartz nuggets have been placer mined from Scroggie Creek.

Exploration results from Mariposa will be further reported as they are received.

Elsewhere within the company’s Klondike Kate project, exploration is planned later in the season on the Gold Cap and Polar Stewart properties located east of the Underworld/White gold discovery.

Drill highlights:

A new gold discovery was drilled at the Double Double zone one kilometre to the south of the Supremo zone gold discovery and one kilometre east of the Latte zone gold discovery.

CFD-27 intersected an upper zone of 2.04 g/t gold over nine metres (from 34 metres core depth) and a lower zone of 6.3 g/t gold over 35 metres (from 139 metres core depth).

The Double Double zone is associated with a regionally significant, east-northeast-trending and steeply north-dipping structural splay of the Latte shear zone. It remains open along strike and at depth.
Gold-bearing rocks at Double Double closely resemble rocks from the nearby Supremo and Latte zones (extensive silicification, clay alteration, oxidized pyrite and brecciation accompanied by arsenic-silver-antimony-barium (As-Ag-Sb-Ba) enrichment).

Four drill holes have been completed at the Double Double zone over a 200-metre length. Samples for hole CFD-28 are currently being processed at the assay laboratory.

“Double Double was discovered by drilling high-quality gold-in-soil anomalies coincident with favourable structure,” stated Dr. Rob Carpenter, Kaminak’s president and chief executive officer. “This proven exploration strategy has resulted in three gold discoveries on the property so far in 2010. We will continue to drill test other soil anomalies across the property.”

Drill results

The Double Double zone is associated with a regionally significant, east-northeast-trending and steeply north-dipping structure co-incident with a 300-metre-long-by-100-metre-wide gold-in-soil anomaly. The structure comprises shear zone and breccia fabrics overprinting variably textured schist, giving the overall appearance of a high-strain fault zone. Gold occurs in this fault zone, and alteration typically consists of silicification, clay alteration, local sericite and oxidized sulphides.

Drill holes CFD-27 and CFD-28 were drilled to the north at minus-50-degree and minus-70-degree angles, respectively, and are located 200 metres east of previously drilled holes CFD-13 and CFD-14. Drill hole CFD-13 intersected 1.43 g/t gold over five metres within highly sheared and altered rocks. This result prompted Kaminak’s technical team to re-evaluate the overall setting of gold at the Double Double prospect, resulting in the subsequent drilling of CFD-27. Two significant gold zones were encountered in CFD-27, comprising an upper zone of 2.04 g/t gold over nine metres (from 34 metres core depth) and a lower high-grade intercept of 6.3 g/t gold over 35 metres (from 139 metres), including 18 metres grading 10.42 g/t gold (from 156 metres). Assays from CFD-28 are pending.

Data from oriented core measurements combined with detailed geological core logging from CFD-27 and CFD-28 suggest the high-grade lower intercept from CFD-27 is hosted in a north-dipping orientation and, as a result, the undercut hole CFD-28 may not have intersected the mineralization. Follow-up drilling directed north to south will be required to properly determine the correct orientations, however, Kaminak considers these new results highly encouraging.

A detailed plan map, cross-section, assay sheet and photograph montage of select core samples are available on the Kaminak website.

DRILL RESULTS

Drill hole No. From (m) To (m) Length (m) Weighted grade (g/t)

CFD-27 34 43 9 2.04
and 139 174 35 6.30
including 156 174 18 10.42

(i) The true width is estimated at 70 to 100 per cent of the core length.

Kaminak will host a news release presentation in Vancouver, British Columbia on Tuesday, July 6th at 1:00pm Pacific Time (4:00pm Eastern Time) to outline the significance of the drill results announced today.  For those who cannot attend the event, the presentation will be aired live on the Kaminak website.  Details regarding the event and live video webcast are located at the end of this release and on the Kaminak website, www.kaminak.com.

 Drill Results

• CFD-009 – 1.12 grams per tonne gold (g/t Au) over 40m with hole beginning in mineralization
• CFD-010 – 3.71 g/t Au over 16m starting at 119m depth
• CFD-011 -  2.35 g/t Au over 51m starting at 38m depth
• CFD-012 – 1.27 g/t Au over 78m starting at 24m depth plus a newly recognized high-grade deep zone yielding 17.4 g/t Au over 1m starting from 176m depth

Key Point Summary

• Latte step-out holes extend strike length of strongly oxidized mineralization for a total of 400m and mineralization remains open in all directions
• Gold at Latte is associated with an untested 10km long structure known as the “Latte shear zone”
• The drill is currently located on the Supremo Zone and is  focused on extending the strike length of high-grade and shallow gold mineralization
• A total of 21 drill holes have been completed on the Coffee property. Additional assay results are pending from the Double Double zone and Supremo zone.
• Second drill planned to mobilize to the Coffee property in mid-July

The Latte Zone is associated with a regionally-significant, east-west trending structural corridor co-incident with a 1 km long by 100m wide gold-in-soil anomaly. Gold mineralization is preferentially concentrated in the structural corridor and consists of silicification and oxidized sulphides hosted in brittle fractures and breccia zones that appear to overprint older fabrics.

Drill hole CFD-009 to CFD-012 were drilled facing north and were designed to test the strike extent of gold mineralization discovered by Kaminak earlier this spring. A detailed plan map, cross-section, assay sheet and photo montage of select core samples from these holes are available on the Kaminak website at www.kaminak.com.  Gold mineralization at Latte is hosted in ribbon-quartz mylonite, quartz-feldspar-muscovite schist and breccia. Drill hole data suggests the Latte zone is east-west trending and moderately south dipping. Continued drilling at Latte will continue to focus on extending the strike length and depth extent.

Alteration minerals consist of dominantly silica, clay and limonite (after pyrite). Rock fabrics within mineralized zones are variable and range from schistose and mylonitic to local silicified clast breccia. Overall, the alteration mineralogy and chemistry is consistent with other significant discoveries in the White District, including Kaminak’s nearby Supremo gold zone.

*true width is estimated at 70-100% of core length

News Release Presentation and Live Video Webcast Information

Kaminak will host a presentation and live video webcast to explain the significance of the drill results announced today.  The presentation will be followed by a question and answer period.  Presentation and webcast details are below.

Vancouver Presentation Details

• Date:  Tuesday, July 6th, 2010
  Time:  1:00pm Pacific Time (4:00pm Eastern Time)

• Because the Vancouver presentation will be aired live, we request that all interested parties attend the presentation promptly at 1:00pm.
   
• Location:  Four Seasons Hotel Vancouver
  Aspen Room – located on the 3rd floor
  791 West Georgia Street

Live Video Webcast Details:

• To view the live video webcast, please click on the following link at 1:15pm Pacific Time (4:15pm Eastern Time):  www.kaminak.com/investors/webcasts/

Video Webcast Playback:

• The video webcast will be archived on Kaminak’s website within 48 hours of the presentation.

QA/QC

Kaminak’s disclosure of a technical or scientific nature in this press release has been reviewed and approved by Dr. Rob Carpenter, Ph.D., P.Geo., Kaminak’s President and CEO, who serves as a Qualified Person under the definition of National Instrument 43-101. Quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill core sample string. Samples are placed in sealed bags and shipped directly by charter plane to the ALS CHEMEX preparatory laboratory in Whitehorse prior to gold fire assay and ICP-MS analysis. The Coffee property is an early stage exploration property and does not contain any mineral resources as defined by National Instrument 43-101.

On behalf of the Board of Directors of Kaminak

“Rob Carpenter”
Rob Carpenter, Ph.D., P.Geo.
President and CEO
Kaminak Gold Corporation

www.aheadoftheherd.com
                   As a general rule, the most successful man in life is
                             the man who has the best information

White Gold Area Play

Seemingly not a single day goes by without a news release about another company staking claims and citing recent drill results from Underworld Resources UW.v as the reason why. Underworld’s recent exploration success has created renewed interest in Canada’s Yukon Territory and in the market.

The importance of Underworld’s discovery cannot be overstated in the context of Yukon exploration and the markets in general. This kind of good news can excite the market for the entire junior gold exploration sector. Also area plays, where one company makes a discovery, then dozens of other companies rush in to stake all around them, are one of the very foundations of our junior markets.

Underworld’s assays are the most significant gold intercepts ever reported in the White River/Yukon River junction area and very possibly the best new gold discovery in Canada over the last several years. As the story at Underworld’s White Gold project unfolds I believe we can expect exciting times for those investors who get involved with the various companies participating in, what still are, very early days of this developing area play.

Geology and Mineralization

The White Gold District lies within the Tintina Gold Belt (a 200-km-wide, 1,200-km-long arc extending from northern British Columbia  into southwest Alaska) and is underlain by rocks of the Yukon-Tanana geologic terrane. The Tintina Gold Belt includes such large gold deposits as Pogo (3.6 M ozs P & P reserves), Fort Knox (3.8 M ounces P & P reserves, 1.7 M ozs M & I resources), True North, Donlin Creek (29.3 M ozs Au Proven & Probable reserves, 6.0 M ozs Au Measured & Indicated resources) and Shotgun.

No one has yet defined a geological model for the White Gold occurrences because the geology of the Underworld discovery is different than other discoveries in the Tintina gold belt. This could be significant because it might mean broad areas that had seen scant attention during past exploration efforts could now become the focus of intensive work programs that have a very real potential for success.

The Underworld discovery properties host multiple styles of gold mineralization including: quartz veins, hydrothermal breccias and disseminated sulphide targets indicated by widespread soil geochemical anomalies. The dominant mineralization at Golden Saddle is quartz, albite and carbonate breccias with low volumes of disseminated pyrite. At the Arc Zone mineralization is characterized by breccias with a matrix of sulphides including pyrite and arsenopyrite. Property basement geology consists of five stacked thrust sheets of lower to middle-amphibolite facies Yukon-Tanana schist and gneiss.

There is some consensus that mineralization is probably intrusion related due to elevated Molybdenum numbers and the hydrothermal alteration but no direct connection to an intrusion has been made so far. There is quartz in veins, stockworks and breccias as well as sulphides in what appears to be a linear moderately dipping structure. More drilling and study is needed to develop a geological model of the White Gold discovery.

Area Play

Located in a new emerging gold province in the Yukon Territory Canada, the White Gold area play has the potential to go for several years as field crews are mobilized to the Yukon and news flow will be constant from almost all the companies involved.

Underworld’s discovery has sparked a land rush, there are an increasing number of savvy explorers and market players staking whatever land they can get surrounding the discovery area. A select few companies will be buy and hold for drill results and many others will present trading opportunities.

Given very legitimate, and increasing daily, concerns about growing country risk this is an extremely timely article about a truly exciting gold area play. Canada’s Yukon Territory is one of the most geologically prospective and pro-mining jurisdictions in the world today.

All the elements of a new area play are here:
1) A spectacular new discovery, with new geology or a twist on old geology
2) A jurisdiction with safe and reasonable tenure.
3) An area amenable to mineral exploration and development.

The White Gold Area Play junior players are gathering for what could be one of Canada’s most important gold discoveries. There is huge upside potential in any of these juniors if they make another discovery. One drill hole could send their (and their neighbors) share price soaring. And if there is a new geological model for UW’s discovery this would open a whole new chapter in Tintina Gold Belt exploration. In alphabetical order (after Underworld) here are a few companies that I found very interesting and have singled out. Below these companies is an extensive, but likely not exhaustive, list of the White Gold Area Play juniors.

Underworld Resources (UW.v) –  The company who started it all. Low share count, 16,900 hectares of property in the area of their discovery and approximately $16,000,000 in their treasury.

Cariboo Rose (CRB.v)  – Has the 4,800 hectare Canadian Creek property 50 km southeast of White Gold. It is optioned out 60:40 with CRB holding 40%. The property has an untested soil gold-arsenic anomaly similar to White Gold. Details of this summer’s exploration program are pending. CRB is part of the Eastfield Group and follows the prospect generator model.

Kaminak Gold (KAM.v) – Has three properties totaling 7,680 hectares 27 and 8 km southeast of UW’s White Gold property. KAM was the first into the area and have announced an aggressive program totaling at least $500,000 for this year. KAM is part of the Discovery Group and follows the prospect generator model.

Northern Tiger (NTR.v) – Seven Properties totaling 5,244 hectares 65 km southeast of White Gold, Sonora Gulch is their flagship property.  Capstone CS.t, owner of the Minto mine, retains back-in rights to acquire a 65% interest in any of Northern Tiger’s projects located within a 50 km radius of the Minto Mine that are found to have mineralization amenable to processing in existing Minto Mine facilities. A $1-million dollar program is budgeted for this summer. Capstone owns 13.5% of the issued and outstanding shares of Northern Tiger.

Valley High Ventures (VHV.v) –Valley High acquired the 3,900 hectare Flume property, 30km northwest of UW’s White Gold, from Phelps Dodge. It is more advanced than most of the properties optioned by other area players and has had extensive soil sampling done.

Area Play Portfolio
UW.v      PEX.v
ALR.v     CDB.v 
MPS.v    NTR.v
HAO.v    AIX.v
MCI.v     HMI.v
NCM.v    SQA.v
ABR.v     NET.v
VHV.v     ALN.v
WER.v    SQI.v
ALN.v     URA.v
CRB.v     KAM.v
ATC.v     ADG.v

Canada’s Yukon Territory has a stable geopolitical environment and a tremendous wealth of mineralization. History has proven time and time again that junior exploration stocks can write a very exciting discovery story and reward investors with multiple returns on their capital. It is still very early days in the White Gold Area Play and the greatest rewards lie ahead of us.
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If you’re interested in the junior resource market and would like to learn more please come and visit us at.
http://www.aheadoftheherd.com/
 
Richard (Rick) Mills
www.aheadoftheherd.com
rick@aheadoftheherd.com

Bio – Richard is host of www.aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 60 websites including – Wall Street Journal, 321Gold, Kitco, USAToday, Safehaven, The Gold/Energy Reports, Gold-Eagle and Financial Sense.

On June 19, 2009, the company announced that it had entered into an option agreement with Ryanwood Exploration Inc. for a 100-per-cent interest in the Kodiak gold property, also in the Dawson mining district.

The company expects to announce further details pertaining to this second property in the near future as negotiations progress.