Independence Gold- (IGO:TSXV) - Cash rich Independence Gold is out with a $1.8 million exploration budget for summer work in the Yukon. Work will be completed on the Boulevard and Henderson projects located in the White Gold area south of Dawson City. The drill programs are expected to begin in the middle of June and total ~3150 m of drilling.
The drill program is expensive as the properties are only accessible by helicopter. Independence will be drilling in the right neighbourhood though as Kaminak's Coffee project borders their claims.
The Boulevard project has two zones Denali and Sunset that will be drill tested.
Denali is located ~14 km west of Kaminak's Coffee deposit and drilling will test positive soil samples and trench results. Surface trench results include 4.56 grams per tonne gold across 10 m and five soil samples have been found that are greater than 1.4 grams per tonne.
The Sunset zone is a 2,200 m long gold-in-soil anomaly with associated anomalous pathfinder elements located seven kilometres southwest of Kaminak's Coffee deposit. The 2015 reverse circulation drilling program is designed to test northeast-trending geophysical anomalies coincidental with gold-, arsenic- and antimony-in-soil anomalies.
A small drill program will also be completed at the Henderson project where active placer mining is taking place.
Audited annual financial statements (up to Dec 31,2014) show IGO with a strong balance sheet of ~$7.7 million in cash and only $34,505 in current liabilities.
IGO stock traded at 8 cents this morning giving the company a market cap of ~$3.5 million.
Independence last year completed an 18 hole (3500m) drill program at the 3T's project in B.C. with no success . The 3T's project has a small inferred resource of 441,000 ounces of gold and 12.54 million ounces of silver.
An interesting drill program to follow this summer in my opinion. The projects appear to have early indicators of a potential deposit (good soil samples and trench results). Investors will have to see what the drill rig (truth machine) turns up this summer.
Investors are getting a 'free' shot right now though as even if IGO turns up with nothing they should still have ~$5 million in cash against the $3.5 million dollar market cap.
I asked Rob McLeod a director of Independence for comments in CEO Live this morning and this was his response.
Read: Independence Gold Announces 2015 Yukon Exploration Program
Related: Kaminak Gold will focus on feasibility study in 2015, permitting in 2016
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This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.