'The deposit is very high grade, but the key is that it also near surface, says Steven Palmer, president of Toronto-based AlphaNorth Asset Management Inc. “They would have a cost advantage in terms of mining. It could be an open pit, which is cheaper than underground mines. And it is in British Columbia, which is a favourable jurisdiction.”

The company plans to have an official resource calculation by the end of next year, Mr. Palmer said. “If they prove up an adequate size resource, then they can proceed towards mining it. The capital expenditure requirements would be quite low. For example, a 2,000-tonne per day mill would be roughly $25-million.”