Idaho: More than just the Midas touch

Ask a mining investor about gold in Idaho and Midas Gold (MAX-T) will likely be the first name that pops  up. The company has put itself at the forefront of the conversation by proving up 5.8 million oz. of the yellow metal at its Golden Meadows project, 153 km northeast of Boise, the state capital. 

But what can get lost with all the focus on Midas is that many more junior explorers are scouring every corner of the state looking for the next big find.

The rush came about as miners rediscovered the state and state officials rediscovered miners. With the state’s traditional industries of forestry and ski tourism on the decline, the government in Boise has made big strides towards creating one of the most mining-friendly jurisdictions around. Its progress can be measured by Idoho’s fifth-place ranking in the Fraser Institute’s list of best jurisdictions for miners. 

So let’s take a look at some junior miners listed in Canada that have their flagship projects in the state. 

West of Midas and its Golden Meadows project is Terraco Gold (TEN-V) with its flagship project, Almaden.

The project is located 126 km northwest of Boise and has measured resources in three areas of 9.8 million tonnes grading 0.8 gram gold for 239,000 oz. gold, 29 million tonnes of 0.7 gram gold for 625,000 oz. gold and 4.7 million tonnes of 0.6 gram gold for 84,000 oz. gold. 

Those resources are divided between the main zone and the smaller North zone, but both resources occur within 90 metres of surface. 

And while shallow mineralization has its cost advantages when it comes to extraction, the company is digging deeper for higher grades. 

Bonanza-grade gold has been found at the 150- to 200-metre levels owing to a high-grade feeder system similar to that found at Golden Meadows.  

In December, the company received a $5-million cash infusion by selling a 1% net smelter return royalty on its Moonlight project in Nevada and 0.5% NSR on Almaden.

Terraco has 168.2 million shares on a fully diluted basis and its share price has moved within a 26¢ to 29¢ range so far in February. 

Northeast of Golden Meadows, Premium Exploration (PEM-V) holds the Idaho gold project located 384 km northeast of Boise. 

The project covers 180 sq. km along 30 km of the Orogrande shear zone in the north-central part of the state, and is home to eight gold discoveries.

Premium says it is focused on growing gold resources, and if recent history is any evidence, it has been doing a decent job. The company raised the inferred resources to 879,000 oz. gold in 2011, which was up from the 549,000 oz. outlined the year before, and the deposit remains open along strike and at depth. 

The resource is divided between the Main and the North & South zones, with the Main zone holding indicated resources of 11.8 million tonnes grading 0.9 gram gold for 343,000 oz. gold and inferred resources of 26.4 million tonnes at 1.04 grams gold for 779,000 oz. gold. The North & South zone has inferred resources of 3.9 million tonnes at 0.8 gram gold for 100,000 oz. gold.

Premium has done early stage metallurgical test work which shows oxides having an average recovery rate of 89.5%, with sulphide recoveries above 80%. 

The company has $2 million in cash and on a fully diluted basis has 157.5 million shares. Its shares traded between 14¢ and 17¢ this February.  

East of Golden Meadows and 413 km east of Boise is Otis Gold’s (OOO-V) advanced-stage Kilgore gold project, which hosts 7 million indicated tonnes at 1.06 grams gold for 218,000 oz. gold, plus 9.7 million inferred tonnes at 0.96 gram gold for 269,000 oz. gold.

The project has three areas of interest: the Mine Ridge deposit, the Gold Ridge target and the Prospect Ridge target. Otis states Prospect and Mine Ridge could connect at greater depths, and the company will drill more this year to test the hypothesis.

It also plans to update its resource estimate at Mine Ridge and push ahead on a scoping study.

Otis had $2.5 million in cash last September and 55.1 million shares on a fully diluted basis. Its shares have traded between 19¢ and 24¢ in February so far. 

But lest investors think gold only occurs in the northern half of the state, Atlanta Gold (ATG-V) has the Atlanta Gold project, which lies south of Golden Meadows and 90 km east of Boise.

The Atlanta Gold site hosts historic mines dating to the 1860s that have so far pumped out 297,000 oz. gold and 2.6 million oz. silver.  

A recent resource update outlined 7 million tonnes of indicated resources at 3.32 grams gold and 7.32 grams silver for 785,000 equivalent oz. gold, plus an inferred 2.4 million tonnes of 4.87 grams gold and 7.52 grams silver for 397,300 equivalent oz. gold.

The resources are divided between underground and open pit, with open-pit indicated resources grading 3.13 grams gold and underground resources grading 5.4 grams gold. 

Atlanta plans to drill the main Atlanta shear below historic high-grade mine workings so that it can outline a project that blends shallow, open-pit mining with underground production.

Atlanta aims to complete an updated resource estimate and scoping study this year. 

The company had $615,000 in cash as of Sept. 30 and 335.3 million shares on a fully diluted basis. Its share price has fluctuated between 5¢ and 6.5¢ throughout February.

Much farther south of Golden Meadows is Western Pacific Resources’ (WRP-V) early stage Mineral Gulch gold project. 

The property sits 356 km southeast of Boise on the Long Canyon and Bald Mountain trend that runs northeast out of Nevada and into Idaho. 

Gulch was home to the past-producing Black Pine gold mine, which has been out of production since 1996. 

The mine was run by Pegasus Gold and had an average 1 gram per tonne gold grade, a 0.47-to-1 strip ratio and 64% recoveries. Ore was mined from six pits, which remain on-site over a 2.8-km trend. 

This year Western Pacific plans to spend $7 million on 35,000 metres of drilling and geophysical work.

The project has an non-compliant historic resource of 31.7 million tonnes with grades ranging between 0.44 gram and 0.59 gram gold per tonne for 451,400 oz. gold

Western Pacific has $3.25 million in cash and 37.1 million shares issued on a fully diluted basis. Its share price moved between 33¢ and 35¢ this month.