Saturday 14 January 2023

TNR Gold in the Alaskan Elephant Country: Gold Hits $1,920 - Just 8% Below an All-Time High of 2,070 in 2020.


Gold hits 1,920 - just 8% below an all-time high of 2,070 in 2020. Central banks are buying a record amount of Gold and China is increasing dramatically its officially announced Gold reserves. 

We have The Catalyst for Gold in place after the Crypto bloodbath massacre. 

Gold becomes The Ultimate Hedge for all portfolios constructed with stocks, bonds and crypto assets. Solid values in uncertain times.

Gold miners are printing money again with expanding margins and they will have to start looking more aggressively for new major Gold projects. They must replenish their reserves in time just to keep their production levels during the higher Gold prices. We have The Peak Gold Supply in place which will be driving the new M&A cycle for the Gold industry. 

It is time for us to discuss again TNR's Shotgun Gold Project relationship with developing Donlin Gold Mining Camp and my vision of how the Donlin Gold project can potentially grow into a 50 million-plus oz Au resource project and become a major Gold Mining Camp in the world based on the U.S. soil.

"Resource World reports another set of spectacular results for Barrick Gold and NOVAGOLD from the giant Donlin Gold project in Alaska. It is very encouraging to see that the high-grade intercepts at Donlin Gold come from a deeper depth than any drill holes at the TNR Gold's Shotgun Ridge.
"DC22-2068 intersected 42.28 metres grading 30.68 g/t gold starting at 117.52 metres drilled depth, including a sub-interval of 23.16 metres grading 54.22 g/t gold starting at 124.97 metres drilled depth; the drill-hole is sub-parallel to a mineralized intrusive and the true widths of the interval and sub-interval are estimated to be 29 metres and 16 metres, respectively." Resource World


"Barrick President and CEO Mark Bristow said: “I am encouraged by the progress that we are making at Donlin and in particular the understanding that our teams are accruing with regards to the orebodies and associated mineralization. Our recent workshop in Anchorage which also involved meetings with our Native Corporation partners, and the visit to the project helped us to set priorities for the next steps towards optimization work and studies.”

Greg Lang, NOVAGOLD’s President and CEO, said: “The 2022 drill campaign has proven rewarding for all of us at NOVAGOLD. The latest set of assays reported have delivered outstanding gold intercepts, especially for an open pit deposit that include, among others, drill hole DC22-2068 that intersected 42.28 metres grading 30.68 g/t gold, with a sub-interval of 23.16 metres grading 54.22 g/t gold located in the Divide domain which overlaps both the ACMA and Lewis deposits, making it one of the most significant intercepts in terms of grade-thickness ever reported at the Donlin Gold project.” Resource World


Please note on the slide above the vertical depth of the drill holes at the TNR Gold's Shotgun Ridge and that they have ended in Gold mineralisation. Any potential Gold mineralisation at the deeper levels may potentially increase the size of the inferred resource identified only at this one target of the Shotgun Gold Project."


How is this relevant, what is the relationship between Donlin and Shotgun Gold? My belief is TNR's Shotgun Gold Project can potentially grow and become a foremost, immediate satellite site Gold deposit to Donlin Gold's Mining Camp infrastructure. This vision is based on our exploration work and academic studies like the ones from Dr Tim Baker in which Shotgun Gold Project is not only listed alongside Donlin Creek as one of the "Major Porphyry Gold Deposits" but is also projected to contain similar porphyry intrusion-related type system as Donlin.

I am the largest shareholder of TNR Gold, so my personal visions must be followed by your own research, including reading all legal disclaimers. There is no investment advice on my blog or any social media feeds and you should always consult a qualified investment adviser before making any investment decisions.

All visions, all great paths forward should be supported by solid science and Dr Tim Baker provides us today with sober scientific observations from his studies about the "Major Porphyry Intrusion-Related Gold Deposits" in the world. What follows is my attempt to translate the high-level geological and geochemical data collected by Dr Baker after studying for many years "Major Porphyry Granite Related Gold Deposits" in the world including Shotgun Gold into a few digestible ideas.

How are these "Elephants" - the giant porphyry Gold deposits - formed? Where should you look for these "Elephants"? And why a found "trunk of an Elephant" which snakes up all the way to the surface in Alaska, can leave many geologists awake at night at the right time of the Gold Cycle?

Rising Gold prices are great seasoning for great projects nestled in safe, ready-to-grow mining jurisdictions like Alaska. The rising Gold price is what allows us, after all this time, finally move from the preparation stage and into action. Shotgun Gold Project is already part of academic research and scientific papers, now we are moving forward with our strategy to make its development part of Gold industry studies to unlock its full potential.

Our preparations are set for this golden opportunity. We have the academic research and inferred resource has been already defined in produced Shotgun Gold NI 43-101 Technical Report. It is important to mention here that TNR's Shotgun Gold Project is a Porphyry Gold system as well, with a similar geo signature as Donlin Gold. The new leg of the Gold Bull market finally brings us a favourable environment. 

"Shotgun Gold is a multiphase intrusion-related system associated with 69.7 Ma magmatism, tying Shotgun Gold to a widespread magmatic Gold mineralising event including the 70 Ma Donlin Gold project. Mineralisation and magmatism at Shotgun Gold resemble Donlin Gold and other deposits in the area where regional structures focus the first order emplacement of magmas, and local structures control mineralisation at the deposit scale." 

Shotgun Gold has seen very limited drilling of the total 7,000m. "Mineral resource is located from surface to a depth of 150m. The resource is located on a ridge forming a topographic high. Mineralisation appears to be uniform with little-to-no "nugget effect".

All Shotgun Gold inferred resource of 705,960 oz Au was defined at the Shotgun Ridge. "Mineralisation appears to be open at depth and along strike. Mineralisation from some drill holes was not included in the resource model. It can add additional resources with future drilling."

The next slide demonstrates very well the concept of an "Elephant and its trunk" which may be leading to "a hiding in the ground Elephant" when you study "Depth-fluids Models For IRGS" presented by Dr Tim Baker and TNR's Shotgun Gold exploration studies combining drilling results and 3D chargebility model.

All Shotgun Gold resource was defined just in one target at Shotgun Ridge. "Shotgun Ridge has untested structural intersections that may host significant Gold deposits. If the IP method is showing mineralization as interpreted, then the potential exists to expand the near-surface mineral resource in close proximity to the existing resource."

"Geology supports the target model. Only one of 5 targets is tested to date. 705,960 oz Au defined in one target with less than 5,000m drilling. Deposit is open at depth and along strike."

"Shotgun Ridge alone shows potential to host multiple, closely spaced gold deposits."

TNR Gold Shotgun Gold Project is located 190 km south of Donlin Gold and I personally believe that we are very well positioned now with our development strategy. This approach becomes particularly interesting after M&A activities in Alaska by Kinross Gold. TNR's Shotgun Gold Project can potentially grow and become a foremost, immediate satellite site Gold deposit to Donlin Gold's Mining Camp infrastructure.

"Today we have Peak Gold Supply in the spotlight again. Majors have to buy new Gold projects in order to replenish their resources in the pipeline for development. Kinross Gold is acquiring 70% of the Peak Gold project and putting all our Shotgun Gold development Story into the new light of potential developments now:

"CALGARY - Kinross Gold Corp. is moving to secure additional supply for its Alaska gold operations by buying a controlling interest in the Peak Gold project from Royal Gold, Inc., and Contango Ore, Inc., for $125 million.

Toronto-based Kinross has agreed to pay Royal Gold about $66 million for its entire 40 per cent stake and $59.6 million for half of Contango's 60 per cent share, leaving Contango with a minority 30 per cent holding.

The miner says it plans to process ore from the open-pit Peak Gold mine at its existing Fort Knox mine, 400 kilometres to the northwest, to reduce costs and extend the life of the existing mill and infrastructure." BNN Bloomberg.

Shotgun Gold Project is located 190 km south from Donlin Gold, where our shareholder NovaGold is developing this giant project together with Barrick Gold."


Higher Gold prices and rising demand are pushing all industry insiders to adjust their strategy, the whole mining districts can be built around the central for particular mining camps facilities like Kinross is doing now. M&A and consolidation of the resources in the satellite deposits around such existing and developing mining infrastructure centres have already started. 

TNR Gold started the new exploration program last year and is actively introducing Shotgun Gold to potential partners to decisively drill the entirety of these prospects. The objective of such a partnership would be to expand the known area of mineralisation, define new mineralised areas and conclusively assess the Project’s potential top-end valuation.

Developing Donlin Gold Mining Camp provides a unique opportunity for TNR's Shotgun Gold Project to grow with further exploration and potentially become a part of one of the largest Gold Mining Camps on U.S. soil. Now it is time for you to make your own research and make your own conclusions, stay safe.


Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.

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