The Leota Gold Property is located in the eastern region of the historic Klondike Gold Fields. This highly prospective gold property overlies the principle eastern ridges and tributaries of Hunker Creek, a prolific placer-gold producing watershed with documented gold production in excess of 4 million ounces.
The “source” of the Klondike placer gold, including the recorded four million ounces mined at Hunker Creek, has never been found. Historically, exploration activity for the elusive lode (hard rock) gold source has focused on the rocks on which the placer-gold bearing gravels are found - rocks known as Klondike Schist.
Recent discoveries in the Dawson Mining District support a new geological model indicating that the placer-gold in the Klondike is most likely sourced from eroded ophiolitic, including ultramafic, rocks. These are exotic rocks, originally formed as part of the lower ocean crust to be later tectonically emplaced in the Klondike Goldfields by faulting due to plate-tectonic processes. They form an upper layer or “hanging wall" that is separated from the underlying basement or “footwall” rocks (Klondike schist), by a zone of intense tectonic disruption and localized hydrothermal alteration with quartz veining.
Significantly, in the western region of the Klondike Plateau where most of the placer gold has been recovered, remnants of the pre-existing upper, hanging wall ophiolitic rocks have been largely removed through erosion with the exception of small pockets being preserved locally. Unlike the main Klondike goldfield where almost all of the ophiolitic rocks have been eroded leaving the gold in placer gravels, these ophiolitic rocks, which are significant in hosting economic concentrations of gold, still remain on the Leota Property.