Ethos Gold Corp. recently wrapped up a second phase of 2012 exploration aimed at identifying a multimillion-ounce gold deposit on its Betty Property located in the White Gold district of Yukon Territory.

The junior Sept. 19 reported completing 7,500 meters of reverse circulation drilling in 61 holes, and collecting 8,700 grid soil samples and 166 prospecting samples in 2012 that targeted the 17-square-kilometer (6.56 square miles) Mascot Creek gold-in-soil anomaly at Betty that Ethos outlined in 2011 and where the junior identified gold in pit trenches at widespread locations.

Due to the dismal financial markets, Ethos also scrapped plans for a diamond drilling program in 2012, and ended up spending a relatively modest C$4 million on exploration at the Betty Project. At one point earlier in the year, Ethos has talked about spending C$12 million and drilling 16,000 meters in about 95 holes.

The anticipated geological target, based on work in 2011, was bulk-tonnage epithermal mineralization similar to Kaminak's Coffee gold discovery which borders the Betty Property 20 kilometers (12.4 miles) to the northwest; instead the gold mineralization intersected by RC drilling within the Mascot Creek anomaly at Betty is developed within "bonanza veins" which exhibit colloform quartz and bladed calcite indicative of epithermal or bonanza silver-gold environments of deposition, the company said.

Drill holes were generally spaced 200 meters to 500 meters apart on interpreted soil/fault structures, to maximize the area tested. For example, holes BETR12-023 and -024 tested the same fault target at 500-meter spacing, and holes -004, -003, -002, -001, -018, and -048 tested the Bond target over a 2-kilometer (1.24 miles) strike length also at about 500-meter spacing.

Highlights of the widespread drilling include:

• BETR12-012: 3.0 meters of 29.8 grams per metric ton gold and 27 g/t silver (30.3 g/t gold-equivalent) from 27.2 meters in the Perriault Target;

• BETR12-014: 12.2 meters of 2.0 g/t gold and 19 g/t silver (2.4 g/t gold-equivalent) from 108.2 meters;

• BETR12-022: 41.1 meters of 2.6 g/t gold and 107 g/t silver (4.7 g/t gold-equivalent) from 16.8 meters in the Marshall Target;

• BETR12-023: 1.5 meters of 3.8 g/t gold and 292 g/t silver (9.6 g/t gold-equivalent) from 78.7 meters;

• BETR12-024: 1.5 meters of 0.9 g/t gold and 280 g/t silver (6.5 g/t gold-equivalent) from 14.9 meters;

• BETR12-027: 1.5 meters of 1.1 g/t gold and 98 g/t silver (3.1 g/t gold-equivalent) from 15.3 meters and also 22.9 meters of 0.5 g/t gold from 103.6 meters;

• BETR12-052: 3.0 meters of 0.9 g/t gold and 91 g/t silver (2.7 g/t gold-equivalent) from 83.8 meters; and,

• BETR12-061: 3.0 meters of 0.9 g/t gold and 85 g/t silver (2.6 g/t gold-equivalent) from 106.7 meters.

Robust gold potential

Ethos Gold CEO and President Gary Freeman said the company identified gold showings in two environments at the Betty Project and considers the gold potential of the project area to be "robust."

"The company plans to follow up these discoveries with a diamond drill core program next summer," Freeman said in the Sept. 19 statement that reported the drilling results. He also noted that Ethos had C$9 million in working capital at the end of the field season, an ample sum to fund a 2013 exploration program.

"The drill program will help our geology team determine the extent of the gold-mineralized systems we have encountered and to allow an understanding of the structural controls. We continue to be excited by the exploration potential of our properties within the prolific Tintina Gold Belt," Freeman added

In work completed earlier in the 2012 field season, Ethos conducted reconnaissance drilling to identify gold grades over width in bedrock beneath gold-bearing surface trench pits or anomalous gold soils. Most of the RC holes drilled by late June intersected limonite and clay alteration and arsenopyrite mineralization, with or without quartz veining and silicification.

Ethos said there appears to be several phases of progressive or overprinting alteration and mineralization which is a "very positive" exploration indication. Some holes have intersected mineralized andesite and felsite dykes within alteration zones. Some 14 of the first 22 holes drilled during the season yielded gold-bearing intervals.

In reporting the early results June 26, Peter Tallman, chief operating officer of Ethos, said, "The sizeable intersections of both higher and lower gold grades, as well as the presence of intense widespread alteration is very encouraging at this early stage of exploration."

Silver-dominant veins

Tallman told Mining News during a site visit in early August that the 20-square-kilometer soil anomaly at Betty could have the potential to yield a 10 million-ounce gold deposit, given its location along strike from Kaminak's Coffee discovery and adjacent to Western Copper and Gold Corp.'s Casino Project, which currently boasts an 8-million-ounce gold resource.

"The original size of the Pogo soil anomaly in Alaska was 20 square kilometers," Tallman said. Pogo, currently Alaska's largest gold mine producing about 380,000 ounces annually, celebrated its 2 millionth ounce in gold output in July. Pogo's resources and reserves, at December 2011, totaled 12.32 million metric tons of ore averaging 12.5 g/t gold for 4.95 million ounces.

"Three current Alaska projects - Donlin, Livengood and Pebble - (together) have gold resources that total 175 million ounces and only 25 million ounces of gold are on the books in the Yukon."

But if the Betty property hosts a multimillion-ounce gold resource, it continues to elude Ethos explorers.

Tallman told Mining News Nov. 14 that the bonanza veins discovered at Betty this summer, with 10:1 silver to gold ratios along with significant base metals, more closely resemble the mineralization found at the Greens Creek Mine in Southeast Alaska than it does the major gold deposits of the Tintina Belt.

"It was bothering me in August what we were finding in the RC holes, but I didn't put it together until a little later. I did find it surprising," Tallman said.

"What Kaminak found this summer in the Sugar Zone on its Coffee property is also similar as is the mineralization that Rockhaven (Resources Ltd.) is finding at its Klaza Project. These bonanza veins are 70 million years old and related to and drive from the Casino deposit," Tallman said.

Kaminak's Coffee-style mineralization, by comparison, is 100 million years old as is the mineralization found at Kinross Gold Corp.'s Golden Saddle deposit, he said. Even so, the two White Gold district deposits are among the youngest of the Tintina belt's mineralizing events.

"It's possible to develop a mine with this, but we don't have the infrastructure to make it economically feasible because we're located in the middle of nowhere," Tallman explained. "What you need for a mine in the middle of nowhere is a fairly big bulk tonnage deposit. As a standalone project, it's just not going to cut it."

Signs of epithemal gold

The Betty property still could host significant gold to the north under the Coffee Fault.

A total of 8,700 detailed grid soils were collected in 2012 in the north-central portion of the property, extending grid soil coverage to about 35 percent of the Betty project. The new soils targeted the Coffee fault structure and identified new gold potential in a different environment within the property. Three new areas of gold-enriched soils associated with arsenic, antimony, silver, and lead were identified; the first and primary anomaly is a roughly 12-square-kilometer (4.6 square miles) anomaly with gold-in-soil results up to 1.2 g/t. These anomalies are all associated with the Coffee Fault zone.

A total of 166 prospecting rock grab samples were collected and two new areas of anomalous sub-cropping gold mineralization were identified. In the vicinity of Mercedes, two grab samples collected 400 meters and 600 meters north of the Mercedes target area assayed 1.4 g/t gold with 576 g/t silver and 0.4 g/t gold with 78 g/t silver.

Tallman said he followed up this summer's soils program with some prospecting late in the season and did find Coffee-style mineralization in the area.

Along the Coffee fault structure, the follow-up prospecting identified areas of impressive quartz veins and quartz breccia hosted by faulted Klondike schist. Seven reconnaissance-grab samples assayed between 0.7 g/t to 3.9 g/t gold with 11 g/t to 86 g/t silver.

The geologist said he also did a little placer mining in Sunshine and Isaac creeks on the Betty property, and found gold nuggets that most likely come from Coffee-style mineralization in the area.

Ethos is currently re-evaluating its options as to whether to proceed with additional exploration at Betty in 2013 or pursue other alternatives. In addition to considering ways to enhance the value of the Betty property for Ethos shareholders, Tallman said management has been talking with other juniors about potential acquisitions or joint ventures.

The poor financial markets bode well for Ethos because it still has significant working capital, while many companies have emptied their wallets and investors have failed to refill them.

"The world is our oyster right now because we have 9 million bucks," Tallman observed.