Wels Project


Western Yukon, approximately 40km from Beaver Creek, YT and 60km south of Newmont Goldcorp’s 4Moz Coffee deposit. Located in the traditional territory of White River First Nation with which K2 has a cooperative relationship.

Land Package

350 contiguous quartz claims covering 7,200 hectares.


Structurally controlled gold mineralization within granitic intrusives, gabbro, and metasediments with similarities to the Coffee and Golden Saddle deposits. Includes 3 known trends of mineralization, only 1 drilled to date, and over 80% of the property is unexplored.

  • Wels is underlain by metasedimentary and metavolcanic rocks of the White River Formation that have been intruded by a series of Triassic gabbroic sills, and Cretaceous granitic plugs. This package has been cut by a series of WNW trending structures that host alteration and gold mineralization. Mineralization is noted in all rock types observed on the property to date and is associated with quartz veining, brecciation, and sericite alteration with anomalous As, Sb, and, locally, visible gold. All mineralized trends remain open along strike and approximately 80% of the property is unexplored.

    Target Areas:

    Saddle Target

    At the Saddle target diamond drilling conducted in 2015 and 2017 delineated a WNW-trending, N-dipping corridor of high-grade gold mineralization over 130m of strike with highlights including 3.53 g/t Au over 19.5m (DDH15-01) and 10.38 g/t Au over 6m (DDH17-08). The 2022 Mag-VLF survey identified a prominent untested WNW-trending VLF anomaly just 90m north of the surface expression of the Saddle gold anomalism. The anomaly extends for >850m and is coincident with high-grade soil samples returning values of 479 ppb Au, 325 ppb Au, and 262 ppb Au, all of which are found north (uphill) of the historically drilled and trenched mineralization at Saddle. The anomaly may represent a controlling structure focused along the contact between the Saddle granite, which hosts all known mineralization at Saddle, and Paleozoic quartzite and schist. The contact was not intersected by historic drilling and remains fully untested.

    Chai Target

    Chai is located 1km south of Saddle and is hosted by quartzite, minor siltstone, and gabbro, with local carbonate alteration and pyrite-arsenopyrite mineralization. Trench 19-T3 returned 0.64 g/t Au over 36m including 1.2 g/t Au over 15m at the southernmost end of the 71.5m long north-south-oriented trench. The 2022 Mag-VLF survey has identified two prominent WNW-trending VLF anomalies, with a 700m long, ~100m wide anomaly directly coincident with the trenched mineralization, and a second, 350m long subparallel anomaly coincident with a 112 ppb Au soil anomaly. The northern anomaly is located just 35m north of the northern limit of the 2019 trench. The Chai Target is undrilled.

    Gunpowder Target

    Located approximately 1km northwest of Chai and 1.2km southwest of Saddle, Gunpowder is predominately hosted by gabbro and returned grab samples grading up to 28.2 g/t Au in 2017 prospecting. Grab and trench sampling 15m and 215m to the south, respectively, returned values of 13.6 g/t Au and 2 g/t Au. No controls on mineralization were known previously. The Mag-VLF survey has identified a very prominent NW-trending VLF anomaly coincident with what is now considered the main trend of mineralization at Gunpowder, as well as a secondary NW-trend which begins at the site of a 796 ppb Au soil sample and 2.2 g/t Au rock grab sample.

    Newly Identified Matcha Target

    The Matcha Target was identified through the 2022 Mag-VLF survey as a roughly NW-trending VLF anomaly adjacent to soil samples which historically returned 202 ppb Au and 105 ppb Au. The target is located 1.1km west of Chai and 2km southwest of Saddle. A small splay off the VLF anomaly just southeast of the main anomaly is coincident with a minor gold-in-soil anomaly with values ranging from 20-117 ppb Au. The target has not seen any exploration work subsequent to initial pass soil sampling.

    Pekoe Target

    At the Pekoe Target, located 1.3km northwest of Saddle, trenching in 2019 identified two distinct zones of mineralization separated by approximately 300m. Trenches 19-T1a and 19-T1b returned 2.15 g/t Au over 8m and 0.8 g/t Au over 7.6m within quartz-carbonate veined and altered gabbro with arsenopyrite +/- pyrite and chalcopyrite. Trench 19-T2 at Pekoe returned 0.12 g/t Au over 33.5m within Saddle-type granite. The Mag-VLF survey has identified multiple NW and WNW-trending VLF anomalies in the region, with a prominent >800m long WNW-trending anomaly observed to correlate directly with granite-hosted mineralization in trench 19-T2 and significant gold-in-soil results on trend, with values to 239 ppb Au. The anomaly appears to be open to the west, beyond the limit of the 2022 survey, and corresponds with a large break in topography. A second parallel anomaly is observed 350m to the north, where soil sampling returned results to 177 ppb Au along a WNW-trending ridge. Gabbro-hosted mineralization observed in trenches 19-T1a and 19-T1b is found adjacent to a prominent magnetic high.

    Next Steps

    Based on the exceptional results of the 2022 Mag-VLF survey, the Company intends to prepare and submit a Class 3 exploration permit for further advanced exploration at the Wels Project in the 2023 season, including additional surface work and a property-wide drilling program to test drill targets identified by the 2022 Mag-VLF survey and previous exploration work.

  • Exploration History

    The Wels was initially identified by regional geochemical surveys in 2002and initially staked in 2011 and optioned to Gorllia Minerals. This led to the discovery of mineralization within a granitic stock at the Saddle Zone and subsequent sampling and trenching included grabs up to 149 g/t Au and trench samples of 8.8 g/t Au over 45m. Subsequent drilling on the Saddle by Gorilla include results of 3.53 g/t Au over 19.5m. The project was acquired by K2 in 2017 and conducted additional drilling on Saddle returning highlights of 2.37 g/t Au over 28.5m and 10.38 g/t Au over 6m. To date, the Saddle has 1674m of drilling over 15 holes and has been defined over 135m along strike and to 150m depth; and is open in both directions along strike and at depth.

    The style of alteration, mineralization, and granitic host rock at Saddle led previous operators to interpret the mineralization as an intrusion-related gold system (IRGD) similar to Victoria Gold’s Victoria mine or Kinross’ Fort Knox mine. However, more recent work by the company has identified mineralization extending into surrounding metavolvanic, metasedimetary, and gabbroic rocks on the property forming a series of WNW trending zones including:

    Pekoe Trend: Gabbro host, rock samples up to 4.1 g/t Au, & 2.15 g/t Au over 8m in trenching.

    Saddle Trend: Intrusive host, rock samples up to 149 g/t Au, defined by drilling over 135m strike length and to 150m depth. Open along strike and at depth. Potential for subparallel zones of mineralization.

    Chai Trends: Gabbro, intrusive, & metasedimentary host, rock samples up to 28.2 g/t Au, and 1.15 g/t Au over 15m in trenching.

    All zones are associated with quartz veining, brecciation, quartz-sericite alteration, and anomalous As-Sb along WNW trending structural zones. The geochemistry and controls on mineralization are similar to structurally systems identified further north within the White Gold district including the Coffee and Golden Saddle deposits. Future work by the company will include detailed geologic mapping and geochemical surveys to refine the mineralized trends and define targets for drill testing. Additionally, the Company will initiate reconnaissance work on unexplored portions of the property.

    Highlights of drilling on the Saddle Trend at Wels to date

    Hole ID

    From (m)

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    Interval (m)

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View 43-101 Technical Report

Chronology of the Wels Project

  • 2002

    Regional Prospecting

    1 rock, 10 stream, and 21 soil samples taken on the ground now held by K2 Gold

  • 2006

    Report Published

    YGS District Report published on 2002 sampling. Of the 21 soil samples collected(2002), only 2 were marginally anomalous: 33ppb gold and 56ppb gold

  • 2011

    Staking & Soil Sampling

    Staked by 2 prospectors in March 2011 and then optioned to Gorilla Minerals in June 2011

  • 2012

    Staking Soil and Rock Sampling 
    An early rock sample taken (hand dug Trench A) ran 149.5 g/t gold

  • 2013

    Rock Sampling

    5 further rock samples taken to confirm the 2012 program

  • 2014


    Airborne Magnetic and radiometric survey


    155m of shallow trenching (with a 'CanDig' backhoe). Best sections 45.0m @ 8.8 g/t Au including 40.5m @ 9.15 g/t Au

  • 2015


    442m of diamond drilling (5 holes), all returned gold mineralization

  • 2017


    1232m of diamond drilling at Saddle, well defined zone


    Two new gold bearing targets identified

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