Would love to know if anyone has any thoughts on these guys (www.yellowjacketresources.com/). Trading YJK on the venture.

They were spun out as a separate company from Eagle Plains resources and they're going to start production this year in three known gold zones (near Atlin, BC), as well as work on a fairly extensive exploration / drilling program.

Wealthrat, hopefully Brian can comment more specifically on the geology here.

Regarding the corporate structure and the Company's strategy in doing the spin-off, this is another example of how these smaller juniors are being FORCED into more creative business models to TRY to realize fairer valuations for their assets - and thus be able to raise capital on REASONAbly "friendly" terms.

So what we here is Eagle Plains' management obviously very disappointed with how the Company was valued as a combined entity, with the result that the WHOLE Company would experience (what management saw as) excessive dilution IF they kept the Yellowjacket Project within the overall corporate structure.

So they spun-out this project to provide a "cleaner" play for investors to focus on, and (hopefully) they can now advance it to production more EFFICIENTLY. Note that the Company is CURRENTLY trying to raise a little operating cash with a private placement, so those thinking of buying would likely be advised to WAIT until the financing closes - hopefully fully allotted.

This one strikes me as "spooky."

The spin-off is new, so they are tight in share structure. Probably cashed up for now. But for what?

This used to be a placer operation. They are not offering any vision of operating plans, nor have they defined a resource.

I cannot determine from the website, what they plan going forward, on what ore body, nor what equipment they possess. There are no financials.

For me, just too soon to tell. They may be fine, but there is little to go on. I would be wary. Its got a dilutive, longs drawn out future "feel" to me. Certainly let me know if you know more about them.

Heya Jeff/Brian,

Thanks for the thoughts. I know only a little bit, but happy to share what I do know. Jeff - your take is interesting and not one that I considered, mostly because my understanding of how Eagle Plains operates. My understanding from conversations with them is that they essentially look for what they perceive to be undervalued resources, and purchase them up. As capital or time or metals prices allow, they look to spin those properties off into their own companies and projects in order to create value for Eagle Plains shareholders (as shareholders are given some stake in the spin-offs). Eagle Plains is family run and insiders hold fairly strong positions.

Now, I don't know anything about geology, so I'll fumble here, but Brian can correct me. The Yellowjacket project is a placer mining district near Atlin, BC - they have I think 7,000 tons of rock stockpiled that they're going to start processing in June. There is a really small compliant resource (25,000 oz) up there, but they believe that they could find a lot more (Downie talks in the millions of ounces, potentially, but that obviously remains to be proved - depends if you like the story / chances).

YouTube video/interview with Downie here:

I also understand that a substantial percentage of the $2.5M that they're looking to raise in the upcoming private placement is going to be purchased by directory of the company.

I thought I might as well note that I don't currently own any shares in either company, or any other Eagle Plains spin-offs. I've just had conversations with them.