White Gold to create critical metals explorer in Yukon

White Gold (TSXV: WGO) plans to spin off its critical metals projects located in Yukon in a bid to “unlock” the value of its non-gold assets amid a supportive policy environment.

The spin-out will comprise six properties that host several large-scale targets prospective for copper, tungsten, antimony, bismuth, molybdenum and zinc, the Yukon-focused explorer said in a statement on Wednesday. Together, they comprise about 15% of White Gold’s claim holdings, estimated at 3,051 sq. km covering 21 properties in total.

“Spinning these assets into a dedicated vehicle allows them to be advanced more effectively with the technical focus and disciplined exploration strategy they warrant,” commented Dylan Langille, vice president of exploration for White Gold.

“Assets such as Bridget, Isaac and Wolf exhibit the size, metal zonation, and geophysical signatures typically associated with large, fertile porphyry systems, yet remain largely untested by drilling,” he added. Bridget, Isaac and Mascot are in the Dawson Range, a prolific mineral belt that hosts several significant copper-gold porphyry deposits in the region, including the Casino deposit, one of the largest undeveloped copper-gold projects in Canada.

The spin-out plans come as Yukon is being increasingly recognized as a jurisdiction for critical minerals exploration and mining, beyond its traditional focus on precious metals. Exploration companies’ documented resources for copper, nickel and tungsten in Yukon have grown significantly over the last 20 years, while Western Copper and Gold’s (TSX, NYSE: WRN) Casino project and Fireweed Metals’ (TSXV: FWZ; US-OTC: FWEDF) Mactung host some of the country’s largest copper and tungsten deposits, respectively. 

Shares of White Gold gained 4.7% to C$1.57 apiece by midday Wednesday, taking its market capitalization to C$311.6 million.

Molybdenum-copper target

White Gold highlighted the Bridget target as the most significant to date. It comprises a standout molybdenum-copper porphyry anomaly covering a 3 x 3.5 km area, enriched with tungsten, bismuth and silver.

An initial technical report on this property will be filed in connection with the spin-out, White Gold said.

The other projects offer additional upside potential for antimony and bismuth as secondary metals across orogenic gold, intrusion-related, epithermal and porphyry systems, it added.

Government support

“The timing of this proposed spin-out aligns exceptionally well with the strong and growing support we are seeing from both the Yukon and federal governments for the responsible development of critical minerals,” CEO David D’Onofrio said.

“Recent initiatives focused on advancing critical mineral exploration, improving infrastructure, streamlining permitting, and strengthening collaboration across Western and Northern Canada reinforce Yukon’s position as a globally desirable jurisdiction for discovery and development.”

The move would also allow the company to focus solely on advancing its main namesake gold project, which hosts four near-surface gold deposits that collectively contain an estimated 1.73 million oz. of gold in indicated resources and 1.27 million oz. in inferred resources.

The spin-out process is underway and would require shareholder as well as regulatory and court approvals.