Kaminak Gold Corporation is embarking on a $30 million feasibility study of its Coffee property 130 kilometres south of Dawson City, Yukon.
Tony Reda, Kaminak's vice-president for Corporate Development, says a mine there is profitable at current gold prices.
"Coffee's a project that works now," he said. "That's really key, because you don't want to build something or go forward based on what-ifs. Right now we don't need anything other than the capital to move this thing forward and the permits."
Two prominent mining investors showed their support earlier this month by putting up $13.5 million for a stake in the company.
The company would have to raise $305 million to build the mine.
Reda says the feasibility study should be done in about 18 months. If it's positive, Kaminak will apply for the development and environmental permits.