There are rumors that the likes of Barrick Gold (ABX) are sniffing around the Yukon. Nice to hear, but actually we would be more surprised if they weren’t. Companies the size of Barrick employ more people just to look over projects for potential acquisition than most juniors employ in total. The scale potential being put on the table there is large, and the deposit types can offer up low costs even in a relatively high cost environment like the Yukon.

While neither Coffee nor Rau are entirely new concepts for the Yukon, it’s fair to say they haven't been seen there before with this much scale potential gathered into packages. How much more work and time is needed to sufficiently outline their true scale is now the question. Both companies have undergone some consolidation after strong price runs. This is to be expected as we approach the autumn solstice, but that doesn’t mean these two, or others working in the north, are going to sleep.

As outlined further in the updates we consider the work at 3Ace by Northern Tiger [NTGSF.PK] to be a third discovery area and deposit type for this play. While the scale potential is still in question at 3Ace, it's worth noting the project is on a gravel highway that will now be maintained for the CanTung mine some 40 km distant that is being readied for new output. This is a big leg up in the potential for a smaller high-grade situation to do well. It also adds to the Yukon as a region that is “in play”.

We do view the Yukon as being a gold based “Area Play”. That is as much market concept as anything else, and we will continue speaking to it more fully over the next while. The important point is that new discoveries have prompted a large number of companies to acquire ground for which interest and funding are readily available. This is generating excitement that supports markets for the lead players and makes markets for others. However, we have entered a new information age since diamonds in the NWT and nickel in Labrador generated their Area Plays.

Drill rigs have been fairly easy to come by, but assay labs are getting backlogged again. That means relevant results will be coming in from Yukon projects through the balance of the year, and perhaps longer. How much potential will be put on the table by then is still an open question. Because of regional scale approaches to the work we don't expect anyone to be as far along with conceptual mine planning as Underworld was early this year.

Volatility is to be expected, and days like KAM just had when decent results are tossed off because they are less strong than the last release, will be repeated. That too is part of an Area Play. However, there is a lot of reporting to come from both the established players and a number who have just started drill programs. That should maintain interest as gold’s price breaks new ground.

It’s a secular bull market for metals and resources. We’ve been saying that for nine years. And we’ve been right. Another thing we’ve been right about is the growing importance of the Yukon as an exploration destination and, more recently, Area Play.

Disclosure: Long KAM, MNEAF, NTR: