Should Gold Mining Investors Consider Kilgore Minerals
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Should Gold Mining Investors Consider Kilgore Minerals?
Summary
Kilgore Minerals is in the spotlight as it begins a new drilling program in southeastern Idaho, following a promising 2004 discovery. We spoke with Norm Burmeister, Chief Executive of Kilgore Minerals, about the potential of the Dog Bone Ridge target and the goals for this season's drilling campaign.Article
Kilgore Minerals, known for its promising U.S. uranium properties, is now shifting focus to its burgeoning gold prospects in southern Idaho. Robert Bishop, a respected figure in gold stock analysis, holds Kilgore and its Chief Executive, Norm Burmeister, in high regard. Adding credibility, Pinetree Capital has made substantial investments in Kilgore, with both its Chief Executive and CFO personally backing the company. Despite criticism from Forbes, Pinetree Capital's stock remains robust, emphasizing investor confidence.
Property History
The Kilgore gold property has seen extensive exploration since the 1930s, when the Blue Ledge Co. discovered gold. In the subsequent decades, major companies like Kennecott, Placer Dome, and Echo Bay invested significantly in exploration. In the late 1990s, a slump in the gold market led to exploration being shelved. Kilgore Gold, a subsidiary of Kilgore Minerals, acquired full ownership during this downturn, ultimately expanding its holdings to 3,000 acres.
Over the years, more than 126,000 feet of drilling across nearly 200 holes have been completed. Burmeister remains optimistic, citing significant investments that have helped define a potentially viable resource. Estimates have varied over the years, but Canadian regulatory approval came in 2002 with indications of a substantial gold resource. However, further findings are necessary for economic mining potential.
In 2004, Burmeister's team discovered a high-grade zone within a broader low-grade area, suggesting the potential for a major find. This discovery, called the Elsa Zone, was made without previous surface indicators, enhancing its significance.
Current Drilling Program
The 2006 drilling program aims to unlock the Dog Bone Ridge area's full potential. According to Niel Prenn of Mine Development Associates, the project offers attractive economics if the resource can be doubled, backed by geological reports indicating excellent potential for increased gold resources.
Burmeister believes the Dog Bone Ridge represents the core of a hydrothermal system, where a significant gold resource may yet be found. The initial drill holes will help determine the direction and extent of this possibility. The challenging terrain may even necessitate helicopter access to certain targets. Success in finding a high-grade epithermal vein-type gold deposit would be significant.
Expectations
Drilling campaigns often heighten expectations and can boost share prices. Kilgore Minerals plans to drill around twelve holes, each between 500 and 800 feet deep, to discover the extent of the promising target area. The initial holes will provide crucial information for future drilling.
Investor Outlook
If Burmeister's assessments prove correct, the Dog Bone Ridge target could reveal a rich vein of gold, adding another achievement to Burmeister’s impressive 40-year career in mining. His previous successes include developing Bull Run Gold Mines and discovering the Mill Creek orebody, among others.
Investors eyeing the gold mining sector should consider Kilgore Minerals for its potential to deliver significant returns.
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