Idaho has been one of the hottest jurisdictions in the world for gold discovery and development, and I have taken a keen interest in Idaho juniors such as Liberty Gold (TSX:LGD) and Gold Lion (CSE:GL). In addition, mid-tier gold developers/producers such as Centerra Gold and Midas Gold have recently moved into the state with significant investments.

Idaho has a lot going for it in terms of attractiveness as a mining jurisdiction including a tremendous mineral endowment, favorable regulatory environment and fast permit turnaround times (comparable to neighbor Nevada), excellent infrastructure, and strong local support for mining projects that create jobs for the economy.

After finding Gold Lion earlier this year I have been on the prowl for more Idaho focused junior gold/silver explorers.

In the last month a company called MinKap Resources (TSX-V:KAP) came to my attention due to KAP’s strong management team and its acquisition of the Breccia Gold Project near Salmon, Idaho. Breccia is a low sulphidation epithermal gold project that is ideally located in a county that is favorable for mining.

MinKap resumed trading last week and closed a capital raise of C$750,000 which will be used to initiate a drill program estimated to start in October that will be used to confirm historical drill data, expand on the known gold system, and confirm the deposit model.

MinKap’s Breccia Gold Project is located in the middle of Idaho, which has been one of the hottest jurisdictions in the world for gold discovery and development. In fact, the 2019 Frasier Institute Annual Survey of Mining Companies ranked Idaho in 8th place worldwide on the investment attractiveness index, and financings for Idaho or Idaho related exploration companies during the last half of 2019 exceeded $70 million.

Near the town of Salmon, The Breccia Property has seen extensive historical work that shows a high-grade, low sulfidation system that starts at surface. The region encompasses part of a major metallogenic province associated with the Trans-Challis Fault system, with a long history of both hard-rock and placer gold mining. Lemhi County is host to numerous base and precious metal deposits within close proximity to the project, including Revival Gold Beartrack-Arenett Project, Freeman Gold Lemhi Gold Project, and Idaho Cobalt Belt. Additionally, the infrastructure is good with access to the Property via numerous, well maintained gravel roads and trails:

Historically, the property has yielded positive results. Past work identified a significant structural corridor up to 1,800 meters long with maximum observed widths approaching 10-20 meters, though anomalous gold in soils is noted over 100 meters in places. In 1985, two drill holes near the South Adit provided results consistent with surface sampling ~0.144 ounces/ton (which is ~4-5 grams/ton). In 1987, a bulk sample of 4,621 tons of gold bearing material was collected from a bulldozer cut along 10 feet deep, 20 feet wide, and 200 feet long portion of the zone. It reportedly averaged 0.335 ounces/ton Au (roughly 8 grams/tons Au); however, readers should be cautioned that Minkap has not been able to verify or validate those results and they may not represent the average grades of the property.

More recently, the location has proved lucrative. In 2018, a prospecting and mapping program was undertaken to locate and sample the historical workings of the Breccia Gold Mine, and a total 59 grab samples were taken from the property of which 24 samples returned grades of >1 gram/ton Au. This confirmed and traced a mineralized fault breccia zone extending approximately 500 meters long by about 15 meters wide, with gold values in outcrop from nil up to 84.3 grams/ton Au. Eight known historic adits were also located and sampled.

Additionally, in 2019, a total of 74 chip and grab rock samples were collected, and a soil sampling grid across the mineralized zone was undertaken to better understand width potential. Recommendations following this program included expanding and infilling the soil grid and a ground magnetic survey. This program paved the way for a more thorough and systematic exploration program that will include drilling.

Plans for 2020 are shown below:

The team is led by President/CEO and Director Jonathan Armes, who previously served as the President and Chief Executive Officer of ALX Uranium Corp. and has provided corporate consulting services to both public and private mining exploration companies for over 20 years. Exploration Manager & Director Garry Clark is a geologist with over 30 years of mineral exploration experience, including managing large scale exploration and development programs internationally. He is the Executive Director of the Ontario Prospectors Association (OPA) and currently serves on the Minister of Mines Mining Act Advisory Committee in Ontario, Canada. Most recently, Mr.Clark was integral to the successful sale of US Cobalt to First Cobalt Corporation, creating a post-transaction cobalt company valued at almost $400 million.

Minkap has a tight share structure and at its most recent share price it barely has a C$5 million market cap:

In a gold bull market, a company with a strong management, a prospective project in a top mining jurisdiction, and actionable news flow lined up over the coming months is easily worthy of a C$10 million market valuation. I can envision KAP trading up to C$.30 over the coming days/weeks, and potentially much higher once drill results start coming back.

UPDATE: MinKap Resources Inc. Announces Commencement of Field Work at Breccia Gold Project, Idaho

Disclosure: Author has bought KAP.V shares on the open market and may choose to buy or sell at any time without notice. Author has received compensation for marketing services from Minkap Resources Ltd.


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