Editorial Unuk river might cure the ailing VSE

Of course that’s just one hole, and the geological differences between Nevada and British Columbia’s Unuk River area where Calpine Resources pulled this core make comparisons on any but the most superficial level virtually meaningless.

Nevertheless, the drill results from the Eskay Creek project by Calpine and partner Consolidated Stikine Silver are working wonders at generating some excitement on the previously moribund Vancouver Stock Exchange. And the lifeblood of the mineral exploration business is excitement. Without it there’s no interest from investors and without investors, there’s no capital to find the mines.

The Unuk River area has been brewing for some time. That’s one factor that gives these drill results a certain degree of credibility. Even though The Northern Miner’s on site inspection of drill core revealed something quite new for northwestern British Columbia, there is a context of previous exploration within which to interpret these results.

Also in the Unuk River area north of Stewart, B.C., and within very close proximity to this Calpine project, are a number of established deposits and a couple of newly operating mines. Prime Resources and Cominco should reach a production decision on the Snip deposit before the end of the year and Skyline Gold’s Johnny Mountain mine, although still not profitable, is looking better every day. Also nearby, Newhawk recently pulled a hole on the Sulphurets property it holds with Granduc Mines that graded 7.5 oz gold per ton across 84.6 ft.

Not only do the number of developments enhance each other’s credibility, they make demands for publicly funded infrastructure into the remote area all the more justified. Given the apparent significance of these deposits, the province must accept its responsibility to build a road into the area. That will lower operating costs for existing mines and make feasibility studies for potential mines even more attractive.

As in all exploration plays, at such an early stage there is a lot to learn before any one can determine the mine-making potential of this project. For the sake of maintaining the momentum in developing northwestern British Columbia’s mineral resources, and for the sake of keeping the Vancouver Stock Exchange on the leading edge of mineral exploration financing, there’s increasing evidence that optimism about Unuk River is justified.

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