conradzone

The Nadaleen Trend project of Atac Resources (Image: Atac Resources)

ATAC Resources (ATC.v) has released final summer 2014 drilling results from the Conrad zone at its Rackla project. The Rackla project is a district scale gold project of ~1700  square kilometres in the Yukon situated between the regional-scale Dawson thrust and Kathleen Lakes fault. Work has been focused the last couple years on the eastern end of the project the Nadaleen Trend (50km).

The initial discovery of the Rackla project sent ATAC stock soaring from $1 to $10 creating a staking rush by fellow companies. The Yukon became the flavour of the day for gold exploration stocks between 2010-2012. As it happens with many of these hot area plays the rush has died off and many of these companies are trading at all time lows.

The Yukon makes it tough for exploration as it is very costly to due to a lack of infrastructure. Many of the projects have no road access or power readily available. The other major issue is the work season is short usually between 4-6 months due to the cold weather.

Today's new release from ATAC focused on the Conrad zone, which is the most advanced zone within the Nadaleen Trend.  All three holes released today at the Lower zone intersected high grade mineralization. The highlight was drill hole OS-12-228 intersecting 40.22 metres of 6.57 g/t gold.

"The 2014 Conrad drilling program achieved its objective, with all four holes expanding the Lower Zone with high-grade gold intersections either along strike or below known mineralization," states Julia Lane, Atac's Rackla Gold Project Manager. "Only 300 m of the presently known 800 m long favourable siltstone-limestone contact has been tested and the Lower Zone remains open to expansion along strike and below the current tier of drill intersections."

ATAC remains one of the go to names in the Yukon and has ~$21 million (September 1st)  in working capital. Yukon stocks generally sell off in the winter as limited work is done on the projects. I will be watching Atac stock in case it drops to bargain levels in the next couple months.

Symbol: ATC.V

Share price: $0.64

Shares outstanding: 117.8 M

Market cap: $75.4 M

Read: Atac Resources intersects 40.22 m of 6.57 g/t Gold,  Rackla Gold Project - Yukon

I have no position in any of the stocks mentioned. This is not investment advice. As always please do your own due diligence.