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The names George Carmack and Skookum Jim are legendary as the discoverers of what became the Klondike Gold Rush. Their discovery on Bonanza Creek (originally named Rabbit Creek) in 1896 started a stampede to the Yukon of prospectors all hoping to get rich. Over 100,000 set out on the arduous journey to reach the Klondike between 1897 and 1899 but only about 30,000 arrived. In the end only about 4,000 actually found gold and very few got rich. Many died on the way. The gold rush was immortalized by the photographs of the prospectors ascending the Chilkoot Pass, by books like The Call of the Wild by Jack London and films such as The Gold Rush with Charlie Chaplin. Dawson City exploded from a dilapidated wooden town of 500 in 1896 to a muddy dilapidated wooden town of 30,000 by the spring of 1898.

Today Dawson City still retains some of its gold rush charm right down to the dirt streets and many of the original buildings have been refurbished and are standing. Mostly it is tourists who go to Dawson City but in the hills there remains many prospectors. One such prospector, Shawn Ryan, set out to find the source of the Klondike Gold Rush. He concentrated his efforts in the area surrounding the White River some 185 kilometers south of Dawson City. It paid off. Someday his name may become as legendary as George Carmack and Skookum Jim. Shawn Ryan is involved in many of the projects now underway in the White Gold district.

In 2009, Underworld Resources (since taken over by Kinross Gold (K-TSX)) made an important discovery in the White Gold district. The White Gold district lies within the Tintina Gold Belt a 200 km wide and 1,200 km long arc that stretches from Northern B.C. into southwest Alaska. Numerous discoveries have been made in the belt including Fort Knox (part of Kinross Gold) and Donlin Creek (part of Nova Gold (NG-TSX). The geology of the White Gold district is quite different than other districts of the Tintina Gold Belt. Since I am not a geologist I will refrain from getting into a discussion of the differences.

Numerous companies have emerged in the White Gold district and the one featured here is Kaminak Gold (KAM-TSXV). Kaminak emerged in 2010 from drilling in what is known as the Coffee property. Kaminak have a 100% interest in the Coffee project that includes ownership of 150 thousand acres. Kaminak has found high grade and extensive oxide mineralization on the properties with gold evenly distributed throughout the zone. So far only 15% of the zone has been drilled. Because of the lack of glaciation in the White Gold district Kaminak has found that the mineralization can be found at deep depths and cover a wide area.

The result of all of this has seen Kaminak�s stock rise from 10 cents back in April 2009 to a high of $4.70 in July 2011. When the Eurozone crisis broke Kaminak along with many other juniors fell sharply. Kaminak most recently bottomed at $1.57 in late July 2012. Since then Kaminak has broken out of what may be a bottom and has gained roughly 38% since those lows. Numerous weekly indicators have given buy signals.

Kaminak completed what may have been an ABC correction to the big rise that took place from 2009 to 2011. Kaminak unfolded in what appears as a 5-3-3 Elliot wave correction. Naturally, Kaminak has a ways to go to confirm that pattern but a breakout over the February 2012 highs of $2.85 would be quite positive. A reversal and breakdown under $1.65 would be quite negative.

Kaminak is well funded with according to recent statements some $15 million in cash in August 2012. The company has no debt. There are 77.1 million shares outstanding or 84.6 million fully diluted. Insiders hold 3.7% of the company with institutions holding a high 25% considering the company is still a junior. Institutions holding shares include amongst others RBC Asset Management, Sentry Investments, Manulife Asset Management, TD Asset Management, CIBC Asset Management, and, Sprott Asset Management.

Kaminak hopes to soon have a 43-101. At this stage, the Coffee property remains an early stage exploration property and as such Kaminak has to be considered highly speculative.

With both the technicals and the fundamentals of the company aligning Kaminak could be an interesting play in the White Gold district. Kaminak is considered the leader in the White Gold district along with Atac Resources (ATC-TSXV). Others noted in Mike Ballanger�s September 2012 �Junior Mining Update� that might be worth a look include Comstock Metals (CSL-TSXV) and, Taku Resources (TAK- TSXV). There are others up there as well. The Yukon White Gold district could become an important gold find in Canada ranking up there with the Timmins and Kirkland Lake gold districts, the Red Lake gold district and of course the Klondike discovery over a 100 years ago.

Note: David Chapman owns shares in Kaminak Gold and Taku Resources.

Copyright 2012 All Rights Reserved David Chapman