I love field season.
Over the past fifteen years, I made it a point to get to as many projects as I can. I visited projects in New Guinea, Turkey, Haiti, Yukon Territory, Ireland, Mexico and the U.S. These days, I'm looking for quality projects to visit.
And I have my eye on one particular site right now.
It's on an island in the Aleutians in Alaska called Unga. It's the site of an old mining and fishing ghost town. It has Alaska's first underground gold mine—the Apollo. They mined off the top of the ore, which had free gold. They simply crushed the rock and the gold fell out. But when they encountered more complex ore, the miners just walked away.
It's a crazy story…and it's just a small part of the story of Unga Island. Right now, a tiny junior miner, Heliostar Metals Ltd. (HSTR:TSX.V; RGCTF:OTC), owns the Unga Project. This company is new, it formed in October 2020 from a merger. The story isn't widely known…yet.
But recent results from Unga started to get investors' attention. You can see what I mean from the chart below:
The company just put out excellent drill results from last fall's drilling. But slow assay labs continue to plague most of the juniors right now.
On January 25h, the company announced that the results from the first two holes (of a nine-hole program) came in. And they both hit high-grade gold, as you can see below:
- SH20-01A: 7.74 grams per tonne (g/t) gold and 27.0 g/t silver over 11.65 meters (m) from 12.95 m downhole. That includes 16.06 g/t gold and 37.7 g/t silver over 4.0 m from 12.95 m downhole.
- SH20-02: 18.66 g/t gold and 11.5 g/t silver over 1.98 m from 50.75 m downhole.
Those are excellent intersections of high-grade gold. While those aren't the true widths, they definitely increase the existing gold resource at the SH-1 target. There's an existing high-grade Inferred resource of 384,318 ounces at 13.8 g/t gold.
And there are seven more drill holes left, sitting at the assay office.
As I said, Unga is loaded with potential. SH-1 is just one of many epithermal gold targets along the 8.4 km-long Shumagin fault corridor on Unga. Historical reports from the U.S. Geological Survey describe this area as a geologist's dream. And Heliostar's technical team think it's a text-book epithermal gold complex.
That's why I added Unga Island to my bucket list of projects to visit. If they keep up the drilling success, it will be the site of a major new high-grade gold discovery. That's what I'd really like to see.
Good Investing,
--Matt Badiali
Reach Matt Badiali at www.mattbadiali.net.
Matt Badiali is a geologist and independent financial analyst. He spent fifteen years researching and writing about great investments inside the natural resources sectors. He can be reached at www.mattbadiali.net.
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1) Matt Badiali: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Heliostar Metals. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: I am a consultant to Heliostar Metals. I determined which companies would be included in this article based on my research and understanding of the sector.
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