Half way through our Yukon tour, the media group was greeted by another blue-bird day in Dawson City. Things had been progressing smoothly to this point, but Mother Nature stepped in with some foggy weather and we couldn’t fly in to visit Rockhaven Resources’ (TSX-V: RK) 100% owned Klaza Project. Even the best organizers, which we had, can’t control Mother Nature.
Matt Turner, CEO & Director of Rockhaven Resources (TSXv:RK) was still in good spirits and happy to speak to the group in the Dawson City Hotel restaurant. I liked that about him, making the most of a difficult situation and ensuring Rockhaven’s story was still being heard.
Mr. Turner told us that existing management embarked on a modest drill program in 2010 which resulted in the discovery of a high grade vein system with respectable intercepts. A more thorough exploration program has defined 1.5Km of strike length mineralization which is still expanding.
Mr. Turner commented, “None of us would have believed the veins would continue on that far. Typically these systems pinch out after a couple hundred meters but what we noticed is the gold mineralization on our property showed continuity along strike. We knew we had something when we discovered this.”
The Klaza Project is on a 250km² property situated on the Traditional Territory of the Little Salmon Carmacks First Nation (LSCFN). This month Rockhaven CEO Matt Turner and LSCFN Chief Eric Fairclough signed an Exploration Benefits Agreement which further progresses the collaboration, communication, and cooperative working relationship the two parties already hold. The Klaza Project will provide direct and indirect economic benefits to the LSCFN citizens through equity involvement, employment, and business opportunities.
To date Rockhaven has drilled in aggregate 56,000m and 239 diamond drill holes. The company is executing a 15,000 meter diamond drill program this year (2015) which will focus on permitting and engineering work such as groundwater testing. The drill program also includes infill drilling on the Klaza zone and BRX zone with the goal of increasing confidence in the resource from inferred to indicated.
Mr. Turner was proud to comment, “Our project is road accessible and is just over 50km west or 1 hour from Carmacks and a 3.5 hour drive from Whitehorse. Being able to drive our crew, supplies, and fuel into site maximizes our budget. If you look over the last 5 years we maybe have only 15-20 hours in helicopter time, which is rare for most Yukon projects.”
In January 2015 Rockhaven released a maiden resource. The resource on the Klaza Property shows an inferred resource of 9.06M Tonnes @ 3.54 GPT Au and 84.78 GPT Ag for 1.03M Oz Au and 24.69M Oz Ag. Please refer to the resource estimate for Lead, Zinc, and Copper grades and contained metals. The figures above are based on a cut-off grade of 1 GPT Au.
Mr. Turner commented on the above resource facts, “To find a high grade million ounce deposit that has significant room for growth and which you can drive a Honda Civic to is rare to find.” That got some laughs out of many of us in the media group.
The resource is based on the Western/Central Klaza zone and Western/BRX zone. But what is exciting is that these are only 2 of the 9 mineralized zones they have on the property creating significant potential for resource expansion. The mineralization almost comes to surface, just a meter below, but has a depth of 300m and is still open.
Management feels the mineralization is akin to Carbonate Based Metal gold which is epithermal in nature. Continental Gold’s Buritica deposit in Columbia which has 4.48M Oz Au (M&I) at 10.80GPT Au is a similar deposit type. In 2012, Vic Wall, PhD, Special Advisor to Continental had tipped off the Rockhaven team to the similarities in each company’s deposits.
Metallurgical studies have been performed on the Western BRX, Western Klaza, and Central Klaza to determine the recoverability of the gold and silver. Based on lock-cycle testing the projected results were 95% gold recovery and 91% silver recovery.
One of the major next steps for the Klaza project is to release an updated resource estimate and assess the economics through a PEA (release dates have yet to be determined). Archer Cathro & Associates performs all of Rockhaven’s ground work and technical work. They are the leading independent geological consulting firm in the Yukon and Northern BC, with 50 years in the business in northwestern Canada.
Rockhaven has strong insider ownership with management owning 14%, Strategic Metals (parent company) owning 46%, and Tocqueville, a resource focused fund based in New York owning 6%. Turner noted the company’s cash position would be approximately $1.2M near the end of August, after the summer’s exploration program had wrapped up. On June 25, Strategic Metals agreed to provide $2M worth of credit at 10% annual interest either repayable in cash or converted into shares. The Company is in a good financial position and has access to necessary short-term capital but will need to do a major financing to continue to advance the Klaza Project.
Overall, Rockhaven is a Yukon gold story with multi-million ounce potential and a market cap under C $20 million. Management and project operators are deeply experienced, and are complemented by an EBA with the LSCFN. The topography of the project is gentle and provides easy access to explore. Roads from Carmacks and Whitehorse provide the infrastructure necessary for exploration. However, the company is highly leveraged to the gold price so place your bets accordingly.
The next major catalyst for Rockhaven will be an updated resource estimate and maiden PEA. I’ll be watching this story unfold and you should too.
In the meantime, join me at CEO.ca early next week for a recap of my visits to Western Copper & Gold and Victoria Gold!
Symbol: TSX.V – RK
Market Cap: $16.83M
Shares Outstanding: 105.16M
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