The president of Underworld Resources believes the company has already identified enough of a gold deposit to warrant a new open pit mine south of Dawson City.

Adrian Fleming emphasized this morning from his Vancouver office there are still several unknowns before anyone can say for sure, but he's convinced.

Underworld released a new resource estimate on Monday based on drilling results to date.

It suggests resource of 1.4 million ounces of gold at the company's Golden Saddle deposit and another 170,470 ounces at its Arc deposit next door.

Fleming pointed out his company has hired JDS Mining and Energy to complete a pre-feasibility study into the existing economic viability of the two deposits, ahead of what is expected to be another aggressive exploration season.

JDS, the same company which examined the feasibility of the Minto Mine, is expected to have the pre-feasibility study completed by the end of March, he said.

"The study by JDS is the next critical step in this exciting project because that puts economic parameters onto this,” Fleming told the Star.

"I think what we have got already is probably enough to have a mine.”

There are, however, costs to consider when assessing the economics, such as the cost of river barging, constructing summer and winter road access, and putting up 100 kilometres of power line to hook into the electrical grid, he said.

Fleming said Underworld spent about $10 million last year on its exploration program, and will probably spend another $10 million to $15 million drilling another 100 holes this year.

The company has $7 million in the bank, with another $10 million available through existing stock options held by shareholders, the company president pointed out.

Fleming added Underworld is now encouraging shareholders to exercise those options to raise the required financing for this year's exploration program.

The intent is to "grow” the Golden Saddle and Arc deposits, and to focus on new areas, he said, adding that promising new targets have already been identified.

Fleming said three of the four drills they will be working will be dedicated to expanding the two main deposits. The fourth will be used for drilling off the new areas, with hopes of "hooking another big fish,” he said.

The Underworld president said in addition to the size of the two deposits is a high concentration of gold per tonne.

So good were the results Underworld reported last June that the company sparked a staking rush in the area near the confluence of the Yukon and White rivers, Fleming said.

The Yukon, he said, is the talk of the town at this week's Mineral Exploration Roundup 2010 in Vancouver, with more than 5,000 people in attendance.

The indication this week is that it will be full-steam-ahead again this summer for companies that flocked last summer to what is now referred to as the White Gold District, he said.

Fleming joked it's likely to be so busy, the Yukon government might want to consider putting up a control tower at the nearby Thistle Creek airstrip.

Shawn Ryan and Cathy Wood, the husband-and-wife team behind Ryanwood Explorations, the Dawson City company which blazed the trail into the White Gold District, will be honoured at the roundup's awards banquet tonight for excellence in prospecting and exploration, Fleming pointed out.

He noted that Stephen Quin and Bruce McLeod of Capstone Mining will also be recognized tonight for their leadership in the development of the Minto Mine.

"I have to tell you at this roundup down here, the Yukon has just stolen the whole show,” Fleming said.