Gold from Dawson City site should be easy to mine: Underworld

Underworld Resources Ltd. says it's pleased with recent tests that show gold from its property near Dawson City, Yukon, should be easy to separate from the rock.

That's good news for the Vancouver-based exploration company, which wants to open a gold mine at its White Gold site, located about 90 kilometres south of Dawson City.

"We've been very lucky with the White Gold development. Within two years, we've defined a very substantial new gold deposit there," Underworld president Adrian Fleming told CBC News on Tuesday.

Fleming said a consulting group in Vancouver conducted metallurgical tests on rock samples from the property's main deposit, Golden Saddle, to determine how difficult it would be for a conventional milling plant to extract gold from the ore.

Those tests indicated that more than 92 per cent of the gold can be recovered, which Fleming said is very good for gold deposits.

"That's a very good outcome, we're pleased with that," he said. "It's just another positive piece of news for the White Gold discovery."

Fleming said the next big news from Underworld should come out in about one month, when the company plans to release its first estimate of how much gold there is at the White Gold site.