Yukon mining exploration booms, expected to triple in 2010

It may not be the modern Klondike Gold Rush, but government officials say Yukon mining exploration is booming, while placer mining production could hit a 20-year high this year.

RENO, NV - 

Mineral exploration spending in the Yukon far exceeded territorial government forecasts, more than doubling this year.

Government forecasts now predict Yukon mining production will triple in 2010.

In the recently published Yukon Economic Update, the territorial government estimates mining exploration expenditures will total around C$90 million (US$85m), far exceeding the original estimate in the May Economic Update.

"The upward revision to the estimate for 2009 is due in part to increased interest in properties near Underworld Resources' White Gold property following excellent drill results...in the spring of 2009," the update revealed.

"Recent positive results along with strong gold prices throughout 2009 have helped contribute to over 7,000 new claims stake in the area around the Underworld Resources property," the document said.

Other projects including Northern Freegold, Victoria Mining's Eagle Gold, and Western Copper's  Casino are all expected to contribute to future growth in the territory's mining sector.

In a speech to the 37^th Yukon Geoscience Forum in Whitehorse Monday, Mike Burke, the head of mineral services for the Yukon Geological Survey, also highlighted the Yukon Zinc Corp Wolverine Mine project, which is now preparing for production southeast of Ross River. "Development dollars are going through the roof, mostly with Yukon Zinc's Wolverine Mine," he said.

Burke said 47% of exploration dollars in the Yukon are going to gold, 23% for silver, and 30% for base metals.

Placer geologist William LeBarge told the forum the value of placer gold production is expected to achieve a 20-year high. He speculated that this year's placer gold total could hit 66,000 ounces with a value of C$57 million, the highest in twenty years.

The Dawson district has yielded 86% of the placer gold production so far this year.

In recent months, the higher Canadian dollar has been a positive for operators who needed to buy machinery for exploration or development activities as many of the items are priced in U.S. dollars, according to the Economic Update.

For placer gold producers, the high price of gold in U.S. dollars has softened some of the negative impacts resulting from the strengthening Canadian dollar, the report suggested.

Two new mines, Aleco Resource Corp.'s Bellekeno silver mine near Keno, and the Wolverine zinc-silver mine, are scheduled to begin production in the Yukon by the end of next year. They will join the territory's only currently producing mine, Capstone Mining's Minto copper mine, which has increased its measured and indicated resource by 32% in contained copper, more than 38% in contained gold, and 28% in contained silver since the last estimate reported in 2007.

SUBSCRIBE to Mineweb.com's free daily newsletter now.

Disclaimer

MINEWEB is an interactive publication, with rolling deadlines through each day, commencing in the Sydney morning,  and concluding, 24 hours later,  in the Vancouver evening.  If you believe your side of an issue deserves inclusion, but has failed to meet one of our deadlines, you are invited to notify the Editor in Chief in Johannesburg, and we will include you in our editing and expanding on our stories. Email him at alechogg@gmail.com

Print story      Email story      Subscribe to free newsletter

Back

 

responses to this article

ATAC resources I think someone forget probably the most significant discovery in Western Canada in recent years.. Atacs RAU property by N Willoughy on November 24 2009, 07:34 Find this comment inappropriate? Report it

ATAC resources I read the article and thought the exact same thing by l farrell on November 24 2009, 16:40 Find this comment inappropriate? Report it

ATAC resources I have frend wo told me be biggest story soon. by G Biermann on November 29 2009, 03:26 Find this comment inappropriate? Report it

ATAC resources I have frend who said will be biggest story soon. by G Beirmann on November 29 2009, 03:34 Find this comment inappropriate? Report it

Name
Subject
Comment