October 6, 2021
Whitehorse Gold Corp. (TSXV:WHG, BUY, C$2.15 target, Timothy Lee) reported bonanza-grade drilling results from its 100%-owned Skukum Au project in the Yukon. The results are from hole SC21-015, which stepped out ~150m from historic drilling in the Rainbow 2 zone, part of the Skukum Creek deposit. This hole encountered two high-grade intervals, notably 32 g/t AuEq (27.1 g/t Au and 346.4 g/t Ag) over 4.2m, with a second interval of 11.6 g/t AuEq (10.3 g/t Au and 93.9 g/t Ag) over 2.4m. True widths are estimated to be 50-70% of down-hole intervals. This is the highest-grade result from drilling for WHG to date and well above the resource grade for Skukum Creek (7.75 g/t AuEq Indicated, 6.22 g/t AuEq Inferred), which we wrote about in our initiation report. Additionally, this hole also expands the area of known mineralization in this section of Rainbow 2, 100m above the resource boundary. The company expects to report results from 37 more holes from the current drill program over the coming months. We believe these are exceptional results and look forward to the release of more drillholes that could potentially move the stock closer in line with its peers. It is currently trading at a discount on a US$EV/oz AuEq basis at US$42 EV/oz AuEq vs peers at US$106 EV/oz AuEq. Read more