The Golden Triangle of British Columbia, Canada is a hotbed for mineral exploration and discovery. Historically, more than 130 million ounces of gold, 800 million ounces of silver, and 40 million pounds of copper have been found in the Golden Triangle. The best part for mining investors is that this could just be the beginning as resource exploration companies continue to make new discoveries in the Golden Triangle every year. British Columbia is also an excellent jurisdiction to get a project permitted - Brucejack, Kemess, and Red Chris are just a few examples of mines that have been permitted in the Golden Triangle in the last decade:

Not only is the Golden Triangle a truly unique geological setting that is exceptionally favorable to mineral resource discovery and a top global jurisdiction for mine permitting, but the Golden Triangle has also experienced significant infrastructure build-up over the last couple of decades which has made it much less costly for companies to conduct exploration work.

In the last couple of years this easier access to ‘harder to reach’ places in the Golden Triangle has resulted in an exploration renaissance in the area. Moreover, the success of Pretium Resources and the development of its Brucejack Project has set an example of what is possible in this prolific mineral laden region of British Columbia.

While buying shares in a company like Pretium (NYSE:PVG) might result in healthy gains in the event of rising precious metals prices, the biggest gains in the junior mining sector almost always occur in the initial discovery phase (when a tiny market cap company finds what could be a significant economic mineral resource discovery). Enter Benchmark Metals (TSX-V: BNCH) and its “Lawyer’s Gold & Silver Project” in the Golden Triangle. Benchmark was founded by John Williamson and Jim Greig with the objective of developing highly prospective gold & silver exploration properties in the Golden Triangle and Nunavut, Northern Canada. The Lawyer’s Project is the site of the former Cheni Gold & Silver mine which operated between 1989 and 1992 producing 171,000 ounces of gold and 3,700,00 ounces of silver over that time period. Due to low metals prices the Cheni mine was put on care & maintenance in 1992, leaving plenty of valuable gold & silver mineralization untouched in the earth.

The Lawyer’s Project is Benchmark’s flagship project and boasts a 43-101 resource estimate of 80,000 ounces of gold and 3.7 million ounces of silver calculated from 2 of 15 known mineralized zones; this is an inferred estimate using a 4.0 g/t AuEq cut-off. There is existing infrastructure on site with an estimated value of $50 million - in addition there is road access to the project and the Lawyer’s Project is 11km from a fully permitted and operating mill (Baker Mill). What makes the Lawyers Project stand out is that it is a brownfields project with plenty of exploration potential (80% of the 99 square kilometer property has barely been explored).

In its first season of exploration at Lawyer’s Benchmark drilled over 5,000 meters using a combination of RC (reverse circulation) and diamond drilling. Most of the holes Benchmark drilled did not exceed 100 meters depth (with a couple reaching 200 meters depth) which means that the much more cost effective RC method could be used (C$120/meter vs. nearly C$300/meter for diamond drilling). Benchmark sent some of its cores off for rush assays and it expects those to be received back within a few weeks, while the rest of the assays are expected to continue to trickle in all the way through December.

Benchmark has been extremely pleased with what its exploration has found to date including rock samples at surface grading 220g/t gold and 10,000g/t silver, CEO John Williamson offered the following comments:

“Benchmark geologists continue to discover exciting new mineralization at the project. The newest discovery lies 300 meters east along strike of the existing Phoenix Zone where 220g/t gold and +10,000g/t silver rock samples were collected at surface. There is potential that the new and existing zones are connected along the 2.5km mineralized corridor and they represent a large hydrothermal system. We believe the entire Lawyers package has tremendous potential for large new discoveries and for expansion of existing zones that were never fully mined in the 3 short years of mining operations during the late 1980’s.”

Benchmark core shack at the Lawyer’s Gold & Silver Project

Work during the 2018 exploration program has focused on mineralized zones with exposure at surface. Each zone remains open at strike, width and depth, extending across hundreds of meters. The 99 square-kilometer prospective land package presents a unique opportunity for Benchmark to carry out exploration on a ‘camp’ scale. There remains excellent potential for the discovery of additional low and high-sulphidation epithermal precious metal deposits like those that have been discovered and explored to date in the Golden Triangle region.

Benchmark co-founders John Williamson and Jim Greig have extensive track records in the junior mining industry which includes more than 50 years of combined experience and being in senior management or board positions of numerous companies (including Kaminak Gold, North Country Gold, and Keegan Resources to name a few) that have been acquired by larger mining firms.

John has served as Founder, Chairman, President, CEO, CFO or Director of more than 20 listed companies in Canada and Australia. On more than one occasion his team’s efforts have been recognized for excellence by being named to the TSX Venture 50. Recently at Keegan Resources Inc. (now Asanko Gold) Jim was part of the mine development team advancing the 5 million ounce Esaase Gold Project in West Africa. With 20 years in the resource sector, he brings comprehensive experience in exploration, development and mineral production.

Benchmark also has several 100% owned diamond (gemstone quality) and gold projects in Nunavut, Canada. There is a very good potential that these will become new company spin-outs where BNCH shareholders would take equity interest. At a sub-C$10 million market valuation Benchmark is basically being valued at a shell company valuation, except it’s far from a shell company. As results begin to roll in from Benchmark’s 2018 exploration program at the Lawyer’s Project the market might begin to start paying attention to this underappreciated story.  

Benchmark Metals (TSX-V:BNCH)

Shares Outstanding: 34,400,960

Market cap at C$.225 closing price on October 4, 2018 = C$7.75 million

Disclosure: Author is long Benchmark Metals shares at time of publishing and may buy or sell at any time without notice. 


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