Capitalizing on the Yukon Gold Rush 2011

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Bringing you undervalued, high growth opportunities... Capitalizing on the Yukon Gold Rush 2011 “The discovery of gold on Rabbit Creek in the Klondike district by George Carmack, Tagish (Dawson) Charlie and Skookum Jim on August 16, 1896 sparked the world's biggest 'gold rush'.” - Yukon: Energy, Mines, and Resources The Yukon is on the verge of a massive boom Today the Yukon is on the verge of another massive gold rush as high gold prices and recent gold discoveries in the Yukon have brought a bought of gold fever onto those that seek the scarce precious yellow metal. This sickness has brought a new generation of men straight to the Yukon seeking their fortunes with this gold rush shaping up to be the start of a repeat of the famous Yukon Gold Rush in the early 20th century. The Yukon has produced 12.5M oz’s of gold since 1885 with a large portion of that being from placer claims, to date only 3 sources of the placer gold have been verifiably found leaving the opportunity to find several material deposits that could be the source of the placer gold that literally line the beds of every creek in the Yukon. Recent discoveries of Underworld’s 1.4M oz Golden Saddle, Kaminak’s Coffee Project and ATAC’s Carlin Style Osiris have come together to create the perfect storm and set the table for another unprecedented gold rush to the Yukon that may be labeled one of the greatest of this century and is certainly the biggest and most hyped area play staking rush since the postulated theory of the Carlin Mineralization in Nevada in 1966. The 2011 summer exploration season is expected to be the biggest in history as over 100 companies have staked a piece in this latest rush to the Yukon that is certain to lead to a booming Yukon for years to come. The Yukon is a largely under explored territory and has seen several boom and bust periods since the original gold rush and is largely dependent on high metals prices. With high metals prices here to stay for the foreseeable future, the Yukon is now a lucrative place to be and makes the mineral rich Yukon projects worth billions and worthy of the extra capital cost to develop these opportunities. The Yukon had been widely overlooked as prime exploration country despite all the placer gold because it has never been easy to locate. Many parts of the Yukon are un-glaciated which makes soil samples a very reliable method for discovery of these regional structures. Unfortunately, over the century since discovery of placer gold, prospectors have not been able to successfully find the lode source through soils. A layer of dirt had blown into the region over the millennia that covered the original soil so when explorers took soil samples; they were unknowingly sampling foreign soil. A local Yukon prospector Shawn Ryan caught on to this theory and decided to take his samples from a bit deeper in the soil horizon. When he sent these samples in… the areas he was sampling started lighting up like they never had before and these major structures started appearing right before his eyes. The non gold bearing soils had fooled some of the best minds in the business and most had just assumed that the placer deposits had been largely eroded… but then why would you keep getting new placer gold year after year? Shawn Ryan started locating these huge systems with his new technique and options the property that eventually Underworld drills and voila, Kinross sees a high grade shallow gold deposit that has enormous growth potential and comes in and snaps up Underworld before they can barely get 100 holes in the ground which starts the frenzy in the district. The timing for this discovery in the Yukon couldn't have been better shining a light back onto the Yukon at just the right time. ATC and KAM then follow up Underworld’s discovery in 2010 with Kaminak’s Coffee Project discovery and Atac’s Carlin Style Mineralization discorey near Mayo. Soils are extremely important for indicating the size of a structure and with discovery after discovery happening within these soil grids, explorers have finally developed a reliable exploration technique that leads to discovery in the Yukon. Over time, a deposit decays, erodes and breaks down into the soil horizon above. Where ever you find gold in the soil, you will usually find gold in the rocks below, especially in areas where the terrain has not been glaciated like large portions of the Yukon and in tropical areas. Soils are a very important tool to locating significant deposits!!! When looking at Yukon companies, by far and away the easiest method choosing companies with the best potential are the ones with the most intense soil maps, as they are the ones that will have the biggest systems underneath. There are other variables like the depth of the deposit, location, grade and metallurgy, but soils will time and time again reveal the biggest systems underneath fro early exploration. Soils can also reliably gauge a general width and strike of the structure and indicate the best spots to drill. Since this new theory has been proven in the Yukon, these very large gold systems are appearing across the Yukon. There is now very real lode mining potential in the Yukon with companies starting to locate the lode source of the placer deposits. There are also several major discoveries and several mines coming online this decade so the Yukon will see an influx of capital of all kinds from infrastructure, to human capital, to financial aid of all sorts. The Yukon is as mining friendly as it gets and is a growing place to be which will see Whitehorse boom over the next 10 years. The Yukon represents a unique opportunity It was often thought too remote, no infrastructure and not enough population to support these projects, but in a case where everyone is getting gold fever; if you build it, they will come. Lack of many things may be true now as the there always seems to be a shortage of something in the Yukon, but the cyclicality of the industry itself shows that the Yukon has been subject to several boom and bust periods and the trend is showing that the Yukon is at the beginning of another boom period that could rival Nevada’s Carlin Style discovery and over the next 20 years may be a source of significant global gold production. Combine the recent discoveries with the current super cycle in commodities that we are experiencing and the fact that the climate is generally becoming less harsh in the winter in the north; the Yukon represents an excellent opportunity for growth in many aspects, not just mining. If you continue to see discovery after discovery in the Yukon, the individual towns will start to grow to support the mining industry which is entering into the Yukon in a big way. This will open up many more spin-off business opportunities throughout the Yukon. The Yukon was thought not much more than just placer deposits whose source had long been spent, but considering placer production in the Yukon has been alive and well for over 100 years, the sources of all this placer gold is out there somewhere. 100 companies have set their sights high on finding the next big gold deposit like Underworld’s 1.4M ounce Golden Saddle which was promptly bought out by Kinross in its infancy. When a company makes a discovery in the Yukon, all it takes is one holes like ATAC to add hundreds of millions to the market cap of a company, Gold Fever has truly struck in the Yukon in a big way. So how do we capitalize on this opportunity? The hype this year in the Yukon will be the start of the great hysteria curve and over the next 2 months is the last time you will see these stocks relatively cheap for the hype unitl gold starts to come down. Obviosuly it will be a rocky rdie for many of these explorers, but generally, one can throw a dart at a board this year and will double one's money before any of these explorers sink a drill hole into the ground. The timing is now!!! If you buy now while these stocks are relatively cheap you will make bags and bags of cash in 2011 going forward. That being said, I like to pick quality companies and I will give you a small report on my top Yukon Pick and a brief rundown of few other plays that are portfolio quality. My #1 Pick for 2011 Golden Predator GPD-T $0.83 Shares Out… 81.8M Fully Diluted… 118.7M Market Cap… $67 million Premium @ $0.64 +$0.19 / 30% Golden Predator is my top pick going into the 2011 Yukon summer season. After careful review of several companies, GPD-T should be on the top of everyone’s shopping list. When looking at GPD’s market cap, its projects, potential revenue stream, Golden Predator is a unique opportunity in the Yukon that is well financed with quality drill ready projects, excellent infrastructure and million ounce potential that can easily be fast track to production. They are currently focusing on 2 projects, Grew Creek and Brewery Creek which have seen excellent results in a small fall drill program confirming historic drill holes. GPD has 4 projects that are just off the highway and Grew Creek where the power line runs right over the property and the main highway runs through it for 30km and is 900meters from the drill site. Golden Predator is uniquely positioned with advanced drill ready projects with some of the best infrastructure in the entire Yukon. You often hear of ‘location, location, location’, well it is certainly true in Golden Predator’s case. Not only will capital costs of a potential mine be lower than other projects in the Yukon, but GPD can put more holes in the ground per exploration dollar than any other company in the Yukon. The excellent infrastructure close to the highway also gives GPD a leg up on everyone else in the Yukon in terms of being able to drill year round. So when looking at getting the full potential for your exploration dollars, Golden Predator doesn’t mess around and are drilling as o February. Recent results from Grew Creek include… 146.3m @ 1.72 g/t au (251 total grammeters) 132.18 m @ 1.21 g/t & 31.75m @ 2.08g/t (226 total grammeters) hole bottomed in 9 g/t material 60.85m @ 1.93g/t au & 8.5 m @ 1.89 g/t au (133 total grammeters) Results from Brewery Creek Include… 50.5m @ 2.79 g/t au - 141 grammeters 56.5m @ 3.2 g/t au – 181 grammeters 27.5m @ 1.15 g/t au – 32 grammeters 38.1m @ 1.48 g/t au – 56 grammeters Brewery Creek has small resource of 287,000 oz’s in all categories grading between 1g/t and 2 g/t gold. Drilling on these 2 high priority targets is expected to bring significant increases to the resources on both Grew and Brewery Creek as remodeling of the deposits has shown significant potential to add a lot of tonnage to both projects. Not only is GPD well financed with quality projects that are set to add material value, GPD currently has a royalty revenue stream of $1M that is expected to grow to $10M in the next 3 years as expected mines come into production from their large 70,000 acre Nevada land package which will greatly aid in funding exploration in future years and keeping dilution to a minimum when making a production decision vs a vending decision. GPD also has a large pipeline of Yukon projects that should generate new excitement and has one of the largest land packages in the Selwyn Basin near ATC’s recent discovery at Osiris. This is not a drill ready project, but it is an area that saw a major staking rush and is now one of the premiere holders in the area next to ATC. GPD will be aggressively exploring this area and refining targets to the drill ready stage for the 2012 and 2013 seasons. Other companies of note in that particular area that have peaked my interest are EXU and NDR. The Selwyn Basin is much more remote than GPD’s current focus, which is defining potential shallow bulk tonnage targets that can be fast tracked to production. With the excellent infrastructure and initial results from their 2 flagship projects, Grew Creek and Brewery Creek are high priority targets that if continue to yield consistent results will add material value to Golden Predator. Golden Predator is truly a must have stock for the Yukon. They are the first to be drilling, will be the first to deliver results and will lead the pack this year with the excellent projects they have acquired to develop and advance. Golden Predator is the best Yukon stock to own $10M /yr estimated royalties in 3 years Bluesky discovery potential with Selwyn Basin near the eastern End of ATAC’s Massive project with Gold Dome looking for partner 2 quality lead projects in Grew Creek and Brewery Creek Excellent infrastructure on majority of projects including… 900 meters from highway power line Gentle topography (rolling hills) Drilling year round N43-101 on Grew Creek and Brewery Creek by 3rd quarter 2011 LOW RISK / HIGH REWARD PROJECTS The Rest of Beat the Market’s Yukon Portfolio Northern Tiger Resources NTR-V $0.48 Shares Out… 83.8M Market Cap… $40 million Northern Tiger went on an excellent run last year and then the SP collapsed when results from the Sleeping Giant zone showing that the mineralization pinches off at depth. Fortunately for NTR, Sleeping Giant is the smallest of the anomalies and there are 3 other highly prospective identifiable zones to aggressively target this summer on 3 Ace. The Main Zone on the 3 Ace property showed excellent results last year and should produce more good results as they define this extremely high grade vein structure. With a nugget effect of this system it’s hard to reproduce the surface results, but it shows the extremely high grade nature of the system and I expect NTR to pull some very good results this summer. I expect some spectacular results from 3 Ace this year including some eye dropping high grade intercepts as they hit some big nuggets on 3 Ace. Their Sonora Gulch project in the White Gold district has also yielded some very excellent gold results, although the buried porphyry target still eludes NTR at Sonora Gulch. That being said, the Titan 24 survey has shown many highly prospective targets that warrant further investigation. Northern Tiger should have another very good run going into next year with 2 highly prospective projects on the go that could lead to a grassroots material discovery. Ryan Gold Corp RYG-V $2.00 Shares Out… 82.6M Market Cap… $165 million The question everybody is asking themselves is… Did Yukon prospector Shawn Ryan save the best for last? Another question everyone is asking… Can Ryan translate prospecting success and parlay it into a quality exploration company? I for one am not going to bet against him. How can you not have Ryan Gold Corp in your tier 1 Yukon Exploration Portfolio, considering this is the guy that started this gold rush off? I do not know much about Ryan’s projects yet, but what I do know is that they have recently defined a very large soil anomaly trending 4 km in a north south direction and a 1km in an east west direction on the Ida Oro Property and recently acquired all of Shawn Ryan and Wildwood Explorations Gold properties. Could Ryan have saved the best for himself? I am betting he probably did as the initial exploration results look like there might a very large system on Ida Oro. Ryan Gold carries a super huge premium at a $165M market cap, but could be worth it in the end. Pacific Ridge Exploration PEX-V $0.305 Shares Out… 52.4M Market Cap… $15 million PEX’s Mariposa property could be the company maker which covers has some very good undrilled soil anomalies and also covers over 10km of highly prospective Altered Quartz Mica Schist (QMS) structure that is highly prospective for White Gold style mineralization. In addition to the QMS structure, PEX has a large AU-Sb-Bi Cu-Mo soil anomaly rough 2 km north of the QMS rocks. Pacific Ridge has several other highly prospective projects on the go that should generate some excitement. At a $15 million market cap, this company is dirt cheap. Kestrel Gold KGC-V $1.10 Shares Out… 26.7M Market Cap… $29 million The King Solomon Dome Project in the Yukon is 4050 foot peak that is believed to be the one of the sources of the gold fields that sparked the Klondike Gold Rush. Kestrel’s properties cover 3 main anomalous zones at least 1km in length and varying from 25m to 400m in width with soils grading as high as 0.9g/t au. The property has anomalous arsenic, antimony and lead geochemical signature which is common with other White Gold projects such as Kinross’ Golden Saddle and Arc projects. Recent trenching of these anomalies have encountered numerous high grade zones including14.7 g/t au over 1.9 meters , 8.1 g/t au over 1.9 meters, and 40.7 g/t au over 0.7 meters and also revealed wider zones of mineralization between 1 to 2 g/t gold. Recently Kestrel located a zone of bonanza grade altered schist that graded up to 51.2 g/t au. Strategic Metals SMD-V $3.21 Shares Out… 79M Market Cap… $253 Strategic Metals is basically the best play you should own in the Yukon if you want a hand in pretty much everything. If you can’t decide, buy SMD because they are the Pinetree of the Canadian Northwest. They optioned most of ATC’s properties and Silver Predator among many others and are one of the premiere land holders in the Yukon and have working interests in over 150 projects in the Yukon and BC. They also manage a large portfolio of shares that it has acquired through its various options and sales agreements. Alexco Resource AXR-T $7.94 Shares Out… 59M Market Cap… $469 million You can’t own a piece of the Yukon without owning this company as everyone knows the historic Keno Hill is one of the richest silver projects in the Yukon. If this high grade pure silver Yukon play isn’t in your portfolio, then you need to do more research on the Yukon. Alexco has big plans for the Keno Hill district and putting this historic old silver mine back into production. At still less than $500M market cap, it may seem expensive, but this may be the one larger cap that goes nuts when silver takes off being a pure silver player in the Yukon. Full Metal Minerals FMM-V $0.31 Shares Out… 147.5M Market Cap… $45 million These guys aren’t really in the Yukon, being based out of Alaska and have other projects on the go such as their Pyramid Porphyry Project in Alaska, but I have decided to include FMM because they have the Underworld team as well as postulated the theory that White Gold style mineralization runs onto the Alaskan side of the border at their Rolling Thunder Project in the Alaskan White Gold District. Considering geology knows no political borders, I am interested in FMM proving up this theory this summer. They are very close to the Yukon White Gold District located on the Alaskan side of the border and Beat the Market has put FMM into this tier 1 group of stocks. Taku Gold Corp TAK-V $0.385 Shares Out… 67M Market Cap… $25 Taku is one of the largest land holders within the White Gold District and their Rosebute property looks highly prospective with a 2.2km long soil anomaly and max values of 0.2 g/t au. They have also defined a second 450 meter long anomaly with values up to 84ppb and a third anomaly that runs 1.1km in length and max values of 0.154 g/t au. Taku has several properties that they will be continuing to explore and advance to drill ready stage, but the 3 anomalies on Rosebute are so far showing the most promise for a large gold system. Atac Resources ATC-V $6.62 Shares Out… 92M Market Cap… $609 million ATC remains a popular bet and a strong buy going forward into the 2011 exploration season with an aggressive drill program designed to delineate ATC’s new discovery in the eastern end of their Rackla Belt. RAU is a couple potential multimillion ounce deposits and the new discovery at Osiris has the market extremely excited for ATC’s prospects. This is a stock for the big boys at its current price, but no portfolio is complete without ATC and its big discovery last summer. Kaminak Gold Corp KAM-V $3.32 Shares Out… 63M Market Cap… $209 million Kaminak is the discovery from last year that still offers pretty good leverage in my opinion. If they continue to expand last years discoveries on the Coffee Project along strike and at depth, Kaminak offers a great risk reward buy at current levels. They have proven they got something in the ground and are still cheap compared to others in the Yukon. This company probably has the least premium of the more advanced Yukon explorers. Christopher Skidmore Reporter for Beat the Market Stock Picks Beat the Market offers an in-depth strategic feature company service for the above mentioned companies in the Yukon. Beat the Market is not a reporter for hire.