Gold Jubilee Capital (GJB.V), the newest venture of Mike Devji, the former Vice President of Orko Silver which was sold for half a billion to Coeur Mining (CDM.TO, CDE), is continuing to expand its project portfolio and has now added a large copper-gold porphyry project in the Golden Triangle of British Columbia to its assets.
Until now, the company was a one-trick pony with the Pyramid copper-gold project (also in British Columbia), but seems to be keen to adding more quality to its asset portfolio and the Kinskuch Lake project seems to fit the bill. To earn a 100% stake in this 3,000+ hectare project, Gold Jubilee is required to make cash payments of C$1.625M as well as spending C$1.6M on exploration on the seven claims within the next five years. On top of that, Kinskuch Lake is subject to a 2% Net Smelter Royalty (with advanced payments starting upon acquiring a 100% interest), of which half can be repurchased for C$1.1M.
Gold Jubilee is acquiring the property from a group of prospectors, but it’s important to realize the project was previously owned by Teck Resources (TCK), which had to relinquish its claims when the commodity crisis was in full swing, forcing base metal companies around the globe to cut costs. Teck did complete several drill holes on the property, but unfortunately Gold Jubilee isn’t allowed to publish all historical drill results, but according to CEO Devji, several of the holes were mineralized from surface all the way to the bottom with the majority of the holes ending in mineralization. That’s definitely a great point to start, and as the property can be drilled the entire year round, Gold Jubilee will very likely follow up on a drill program this winter.
We would expect the company to twin some historical holes and make them a bit deeper, just to get an idea until what depth the mineralization extends. Meanwhile, Gold Jubilee has already designed a drill program for its Pyramid project and will use the flow-through money raised in a recent placement to fund the drill program. We’re looking forward to see the drill results from the Pyramid project as well as learning more about the Kinskuch Lake project from the company’s technical people and hope to release a more in-depth report on the company and its prospects shortly.
Go to Gold Jubilee’s website
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