Today's Gold Rate

When I spoke to John Robertson, president of Linux Gold Corp. announced on October 18 Property near Fairbanks, Alaska, he looked like a very happy person.

"I can not say much. The owners have extremely high expectations and the preliminary geology looks very interesting, but there is no 43-101 (NI) compliant data available for the moment. Our consulting geologist (and Qualified Person under NI 43-101 *) took multiple samples from existing channels, and those tests will be in a few weeks. This is the first information we have is the 43-101. "

So, why Alaska and why now?

For starters, the gold resources of Alaska in all categories (measured, indicated and inferred) have increased by just over 1 million ounces in 1985 to over 108 million ounces at the end of 2004 . Of this total, more than 60 million ounces have been put on the books, because the price of gold was under strong pressure in 1997. Over the past ten years, Alaska has added gold to his bank "once" to an average of 8.6 million ounces per year at a cost of $ 3.36 Discovery ounce.

The Pogo gold mine is currently in production, while four gold projects, Donlin Creek, Rock Creek, Gil and Nixon Fork, are allowing or advanced stages of development. They will add value to mineral production in Alaska over the next 5 years.

The reason for the excitement at Linux Gold is apparent. Ester Lode is in the middle of the Fairbanks Gold District, one of the most prolific gold in North America. More than 10 million ounces of gold have been recovered from placer mining alone since 1902.

Everything you need to do is look at the impressive progress of s Freegold Ventures Ltd. - Golden Summit property to get an idea of the incredible potential. Golden Summit is at the heart of the neighborhood, with over 6.75 million ounces of placer operated directly attributable to water that drain the Golden Summit project. Golden Summit contains over 80 known gold occurrences, and hosts the largest and highest quality historic lode gold producers in the district, with more than 500,000 ounces of gold were produced in underground mines 1902 to 1942 with average grades of over 1 oz / ton.

historical average grades of the two largest underground mines at Golden Summit were 1.3 oz / ton Cleary Hill Mine (281.000 ounces total) and 1.6 oz / ton Hi Yu Mine (110,000 ounces of total production). Many mines were forced to close early in WW2 and never reopened, while others have tried to reopen after the war simply could not handle mining once the groundwater has been affected, or When bad ground was encountered (neither of which is a serious obstacle to modern methods of mining today).

Immediately after the receipt of assay results from the sampling program taken mid-October, Linux waste little time in drilling of selected targets to determine the nature and content of the Ester Creek deposit. Wise investors will look carefully at this stock before drilling. A high grade intersection of 1 ounce per ton should attract the attention of serious investors and fund managers.

For decades prospectors have been searching for the source of the gold that was feeding nearby creeks and river systems where gold miners have recovered 10 million ounces to date. The property owner believes property Ester is connected to this source.

A significant advantage of the situation Ester (from the Kinross Fort Knox mine a few miles away, for example) is the low cost required to build a mill to crush economic high-grade underground ore - about $ 20 million . Kinross low grade / cost of bulk open pit of about $ 750.