With gold trading above $1,700 an ounce, high-grade gold is a lucrative asset indeed...and Whitehorse Gold’s (WHG.V; WHGDF.OTC) district-scale project in the Yukon has an abundance of it.

Between its big gold-equivalent resource and the stellar grades it has been reporting from ongoing drilling, Whitehorse appears to be on a glide path to a big share-price rerating.

Dear Fellow Investor,

At current gold prices, owning and growing high-grade deposits of the yellow metal is a recipe for big profits.

And in a world where large open-pit operations can profitably mine grades of 1 gram per tonne (g/t) or less and underground operations can do so at around 3 g/t, it’s easy to see why Whitehorse Gold’s (WHG.V; WHGDF.OTC) Skukum project stands out.

This brownfield project hosts no less than three underground resource areas that collectively boast average gold grades more than twice that 3 g/t figure.

Moreover, drills are turning as we speak on a 44-hole program to upgrade and expand those deposits, which means Whitehorse will likely be feeding the market a steady diet of eye-popping assays for months to come.

With the latest drill results indicating the high-grade gold at one of those deposits may occur higher in the mineralization than previously thought, odds are good that this program will eventually add significant ounces to Skukum’s resources.

Building On A High-Grade Resource

As the table below makes clear, this project’s three deposit areas host a considerable, high-grade gold-equivalent resource.

Its Skukum Creek, Mt. Skukum and Goodell deposits collectively host 335,611 indicated gold-equivalent ounces at 7.8 g/t plus another 245,590 inferred gold-equivalent ounces at 6.9 g/t.

As stated, those grades are more than twice the typical grade needed to make an underground gold mining operation pay.

And, in fact, an operator in the 1980s mined the Mt. Skukum deposit for 79,750 ounces of gold from just 233,400 tons of ore mined and processed.

The current resources are based on more than 140,000 meters of historic drilling, and yet, as recent results show, even that extensive amount of drilling doesn’t reflect Skukum’s full potential.

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Drilling Returns Bonanza-Grade Gold

The most recent hole reported from the Skukum Creek deposit area was a blockbuster, yielding 4.2 meters of 27.1 g/t gold and 346.4 g/t silver (32.0 g/t gold-equivalent) in Hole 15.

That included an even-higher-grade interval grading 33.4 g/t gold and 391.7 g/t silver (38.9 g/t gold-equivalent) over 3.2 meters.

And get this: Hole 15’s interval was a full 150-meter step-out from the known resources on Skukum Creek’s Rainbow 2 zone.

Better still, as you can see, this interval is gold-intensive in an area of the zone that has historically been more silver-intensive.

The result: A hole that has a chance to grow the resource has an implied max value per tonne of more than $1,800.

Proof positive that grade is, indeed, king.

Here’s the good news: Another 37 holes from Skukum Creek, Goodell and Mt. Skukum are on their way. More hits like this last one could spike Whitehorse Gold’s share price.

A Huge Infrastructure Advantage

That’s especially true when you consider that Skukum is an imminently developable project.

Thanks to its brownfield status, it has infrastructure on site that would cost tens of millions to build from scratch. That includes…

• 6,000 meters of underground development
• An on-site mill with a 300-tonnes-per-day capacity
• A 50-person camp

Added to that infrastructure head start is great location just an 85-km drive from the city of Whitehorse and a great working relationship with the Carcross/Tagish First Nation community.

Knowing that community relations are crucial to advancing a project, Whitehorse Gold was on the ground early with Skukum making sure the Carcross/Tagish First Nation were fully abreast of the company’s plans for the project.

Between that solid relationship, the pre-existing infrastructure and the high-grade nature of the gold at Skukum, Whitehorse’s management team is confident it can move this project quickly along the development curve.

An Enticing Entry Point

That’s what makes now a great time to take a closer look at Whitehorse Gold.

With gold due to rebound, current Whitehorse trading levels offer a compelling entry point, especially given that the company has still to release results from almost 40 holes at Skukum.

The 32.0 g/t gold-equivalent Whitehorse just hit is likely an indication that more high-grade (and even bonanza-grade) results are on the way.

Combine that steady news flow with Skukum’s existing resource, its district-scale exploration potential and its wealth of in-place infrastructure, and Whitehorse Gold is a high-grade gold story set to make a big market impact in the weeks and months ahead.

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To Learn More about Whitehorse Gold Corp.