The $1 Billion Mystery Buried Beneath the Arctic

Darnley Bay could hold one of the world’s richest metal deposits—or nothing at all. Carson Phillips is determined to uncover the truth.

In 1954, geologist Hank Vuori flew over Canada's arctic. His compass spun wildly—something extraordinary was hidden below.

For decades, scientists have tried to figure out what. To this day, no one has.

In 2000, drillers came close. Within 200 metres of a target. But no discovery. Just the smell of rotten-eggs. Another clue.

Now, 70 years after Vuori’s flight, Carson Phillips is on a mission. He’s CEO of Elton Resources, expecting to trade in Q4 as “DBAY” on the TSX-V. And he’s determined to crack the mystery. Darnley Bay could hold the world’s biggest mines. Or nothing at all.

Next March, Elton plans to drill. Carson has to know. "The potential is mind-blowing,” he says.

In The Big Score interviews, Carson shared the story. His energy is infectious. Could this be mining’s biggest prize? Maybe. But it’s also one of the riskiest.

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In 1954, Darnley Bay was set aside for easier-to-reach drill targets.

But in 1969, the Geological Survey of Canada (GSC) took a look. Near Paulatuk, Northwest Territories, they found something astonishing—the largest land-based gravity anomaly ever recorded.

The anomaly pointed to something dense beneath the surface—perhaps valuable metal-rich rocks. Yet, Darnley Bay remained untouched for another 25 years. A legend whispered among prospectors.

Not everyone believed in it. “Anomalies are like belly buttons,” one engineer told me, “Everyone’s got one.”

The GSC reignited interest in 1994, comparing Darnley Bay to Russia’s Norilsk, the world’s largest nickel mine, in production since 1939. They gave it their highest confidence rating for having 'moderate-to-high potential' for nickel, copper, and platinum." The anomaly dwarfed the world’s great mining camps: Sudbury (30 milligals), Norilsk (25 milligals), and South Africa’s Bushveld (65 milligals). But Darnley Bay clocked 132 milligals, covering a huge area. Paired with a 1,600 nanotesla magnetic anomaly, the mystery deepened.

“To put it in context,” Carson says, “the gravity anomaly at Darnley Bay is over seven times stronger than Olympic Dam in Australia, the world’s largest ore body.”

Stephen Reford, a leading geophysicist, calls Darnley Bay unique for its 60 x 100 km scale and corresponding magnetic and gravity responses. “The strength of the gravity signal is unprecedented,” he says.

Outline of Gravity and Magnetic Anomaly at Darnley Bay

Leon La Prairie, Vuori’s old friend, staked the claim in 1994, and Darnley Bay Resources was born. But delays—Senate hearings, Indigenous negotiations—pushed progress back to 1997.

Finally in 2000, the first drill went 1,812 metres deep, “A very good effort that fell short,” Reford commented. Drilling had to stop due to groundwater issues. No economic mineralization was found. Reford and Kerry Knoll were both told by La Prairie, who died in 2016, that the deepest parts of the drill core smelled of sulphur. Massive sulphide rocks, often found in copper, zinc, lead, and nickel mines, can share that rotten-egg smell. It was a clue, but the project was put on hold.

Then came the mining boom of 2009-2011. $9 million was invested into Darnley Bay. But in 2010, a 3-hole drill program failed badly. The drills couldn’t penetrate deep enough. Knoll, then a director of the company, blamed the boom—only outdated equipment was available. Confidence in the project evaporated.

Still, the GSC pressed on. In 2015, they ran a breakthrough Magnetotelluric (MT) survey over the area. MT surveys use the Earth's natural magnetic and electrical fields to see deeper. The method had already uncovered new mines in Sudbury. A larger 2018 MT survey by Quantec Geoscience blanketed the Darnley Bay anomaly. The survey spanned a 40 x 50 km area, covering 116 sites.

The results served as a turning point and catalyst for the project. The survey suggested the anomaly source was 10-13 kilometres deep, beyond miners' reach, but revealed massive targets starting at just 800-1,200 metres down—potential mother lodes. Amazingly, the 2000 drill hole had stopped just 200 metres short of one of these targets.

2018 MT Survey - SW to NE Cross Section

Enter Carson Phillips

At Vernon Golf & Country Club, a determined kid wouldn’t leave until he spoke to the head pro. Marching into the office, he declared, “I want a job! You’re going to put me on the schedule!” That bold move kicked off a six-year run picking the range and washing golf balls—work he loved.

“I don’t take no for an answer,” says Carson. “I’ll keep knocking until I get what I need.”

Carson grew up in Lumby, a small logging village in BC’s Okanagan. His parents ran the town pharmacy, igniting his interest in entrepreneurship.

“When I was 8 or 9, I’d tell everyone, ‘I’m going to be a businessman. I’ll own a McDonald's. I’ll own a KFC.’”

At the golf course, mining stories buzzed. Geologist Chuck Fipke raised local money for his Arctic diamond hunt. After the 1991 Ekati discovery, DiaMet Minerals stock shot from 25 cents to over $60. Carson noticed the difference in lifestyles.

After earning a business degree from UBC Okanagan, Carson moved to Vancouver, crashing on a friend’s couch until he found work with a startup miner. By 24, he co-founded a capital pool company, securing the Farim phosphate project in West Africa, but a coup and the ‘08 financial crash wiped them out. Farim is now owned by Itafos Inc. (TSX-V: IFOS).

Determined, Carson cold-called junior mining execs about overlooked assets. One opportunity in Ecuador stood out. His company acquired the Condor gold project, and increased the gold resource from 2.4 million ounces to 10.5 million ounces. In 2016, Lumina Gold, controlled by mining legend Ross Beaty, acquired it for $70 million.

Pushing forward, Carson convinced UBC to accept him into its Masters in Engineering (Mining) program, despite having no engineering background. He earned his master’s degree that same year.

From Mines to Pot Shops

I met Carson around this time. We shared an office in Vancouver, bonding over mining investments and golf. He marched to his own drummer. Carson told me he wanted to own a chain of liquor stores.

When mining stalled during the pandemic, Carson pivoted to Vancouver’s booming legal cannabis market. He mapped the city, scouted empty buildings, and cold-called owners. In the end, he guided two stores through permitting. Before he even broke ground, rivals made a multi-million dollar offer for his locations—an offer he accepted. It was a big win, built on sweat equity.

Post-Covid, Carson and his wife Katie welcomed their first child, Elton, named after Carson’s beloved grandfather. Now, at 41, he’s more motivated than ever. He set two big goals.

One: Play the world’s top 100 golf courses. In just two years, Carson’s polite persistence has seen him play 36 courses including St. Andrews, Shinnecock Hills, Royal County Down, and Oakmont to name a few. A recent trip to Prairie Dunes together was sensational!

Carson at Shinnecock Hills Golf Club (1892), Southampton, Long Island, New York

His other goal? Lead the charge to uncover a massive mining camp at Darnley Bay.

Reawakening the Enigma

Carson had tracked the Darnley Bay mystery for years, neglected in a junior company focused elsewhere. He cold-called Generation Mining CEO Jamie Levy and Chairman Kerry Knoll, working his charm. It took one year to negotiate the acquisition: $1 million in cash and $4 million in shares. His first priority was visiting Paulatuk to build relationships.

"It’s a bit of a milk run to get to Paulatuk,” Carson says. “Eight flights over four days—Vancouver to Whitehorse, Old Crow, Inuvik, then Paulatuk."

“There’s no road access yet,” he adds. “But Paulatuk has a great airport. You could land a Hercules up there.” For supplies, he’s looking at barging and air support—just like Sabina Gold & Silver did at the Back River district. B2Gold bought Sabina for $1.1 billion and built an ice road to the site this year.

Carson says Darnley Bay has strong local support. It could bring much-needed jobs to an area with high unemployment. The project sits on land owned by the Inuvialuit Regional Corporation (IRC), which holds a 6% royalty. That royalty was blocking progress. Carson convinced the IRC to give his company the option to buy back 4% for $4 million. This makes financing much easier if they find something big.

Darnley Bay Dream Team

Elton Resources is a lean operation. Carson runs the show. His technical gurus are Kevin Stevens and Alan King, two top geophysicists. Stevens has helped discover over a dozen deposits, many of them in the Sudbury basin. King, the former Chief Geophysicist at Inco/Vale for 20 years, brings decades of experience. Both joined Elton, driven by their passion for unlocking Darnley Bay’s potential.

Major Drilling is on board. They’re experts in deep, remote targets and were Sabina’s drilling partner at Back River. 

“The key thing,” Carson says, “is that everyone on the exploration team has Arctic experience. We aren’t hiring people to learn on our dime.”

Carson’s co-founder, Michael Galego, a lawyer and merchant banker, helps secure the risk capital. On October 16, Elton announced the hiring of Eight Capital, Canaccord, and SCP Resource Finance, top mining financiers, to raise $10-$15 million for the 2025 drill program at a roughly $15 million pre-money valuation. Carson expects Elton to be public by Q4 on the TSX-V, trading as “DBAY”.

That should be enough capital for 8,000 metres of drilling starting in early March 2025. Four separate drill holes testing Elton’s best targets; beginning with its P5 target in the Northwest of the property. And if they find mineralization, the payoff could be huge.

Elton’s Proposed Drill Target Locations

P5 Drill Target Location

Uncharted Territory

As Carson prepares to lead the next phase of exploration at Darnley Bay, the stakes couldn’t be higher. The massive gravity anomaly, the sulphur clues, the potential for billions in untapped resources—it’s all there. Yet, no one knows what lies beneath.

Next March, assuming Elton finds the money, the drills will go deep again. Carson and his team are ready, equipped with the latest technology and a relentless drive. “This is the moment we’ve all been waiting for,” he says. “It’s time to find out what’s really down there.”

For Carson, it’s more than just a business venture—it’s the pursuit of a mystery that began 70 years ago with a spinning compass. The world is watching, and so is he, ready to unlock one of the Arctic's greatest mysteries.

Success could rewrite mining’s future—or lead to nothing. One thing’s certain: Carson Phillips won’t stop until he gets his answer.

Will Darnley Bay reveal its secrets? The clock is ticking.

Full Disclaimer:

This article includes second-hand information, such as the sulphur smell and haywire compass stories. I was not able to obtain first-hand accounts of these details. Readers should verify all facts independently. I am not a securities dealer, broker, or financial adviser. The information in this email is not investment advice. It is for informational purposes only and does not offer to buy or sell any securities. At the time of writing, I do not have a financial interest in Elton Resources or any of the companies mentioned in this article. However, I intend to become a shareholder of Elton Resources. I reserve the right to buy or sell any shares, including Elton Resources, without notice. I also have a personal connection with Carson Phillips, so you should consider my bias. Please do your own research, including reviewing the company’s press releases and risk disclosures on SEDAR+.