In September 2017, Metallic Minerals entered into an agreement to acquire a 100% interest in mining rights (the “Property”) consisting of 10 claims totaling 1 mile (1.6 km) along a bench of Dominion Creek, in the Klondike gold district near Dawson City, Yukon. The Company also entered into a production royalty agreement with respect to these claims under which the Company has granted exclusive mining rights to an experienced alluvial mining operator in exchange for a 15% royalty on all gold production. The property is road accessible and fully-permitted for alluvial gold production.
Dominion Creek is part of the historic Klondike gold district that is estimated to have produced over 20 million ounces of gold since its discovery in 1898. Approximately 2.7 million ounces have been produced on Dominion Creek by hand mining, dredging and, more recently, modern mechanized mining that continues today with numerous large scale open pit operations. The main channel of Dominion Creek was mined by floating dredges by Yukon Consolidated Gold Company (YCGC), which operated in the Klondike Region between 1920s and 1960s. YCGC also conducted exploration churn drilling along the benches of Dominion Creek, but never mined the benches in this area1. Auger drill holes on these claims have returned values in the gravels similar to other parts of the Dominion Creek, confirming the presence of alluvial gold on the property.