BUDGET – Capstone Mining Corp. Jan. 26 provided its production guidance for 2012 for its two operating mines, Cozamin and Minto, and company-wide capital expenditure guidance. Capstone expects to produce 80 million pounds +/- 5 percent of copper in concentrates at a total cash cost of US$1.55 to US$1.65 per pound of payable copper, net of by-product credits and selling costs. “Capstone’s focus for 2012 is to maintain steady production from our two operating mines and advance our two development projects, Santo Domingo and Kutcho, towards production,” said Capstone President and CEO Darren Pylot. “Our capital investment is focused on ongoing development at Cozamin and Minto, continuing to build on successful exploration at both mines. At Santo Domingo, major activities in 2012 will be centered on filing the environmental impact assessment and substantially completing the bankable feasibility study. In addition, we will continue to advance our Kutcho project through the detailed engineering and permitting phase.” At Minto, located in west-central Yukon Territory, copper production is expected to be similar to 2011. Recoveries are expected to be higher in 2012 than 2011 as an optimal blend of about 90 percent sulphide and 10 percent partially oxidized ore is planned for 2012, following tests of the partially oxidized ore in late 2011. A re-assessment of the engineering requirements for start-up of underground mining has prompted a revised development plan. Start-up of the underground operation is now scheduled for the third quarter of 2012, with ore production beginning in early 2013. Production for the first four months of the year will rely on low-grade stockpiles as stripping continues in Area 2/118. Ore from Area 2/118 will begin to feed the mill starting in the second quarter of 2012, with grades gradually increasing through the remainder of the year. Cash costs for 2012 are budgeted to be higher than 2011. Total mining costs are projected to increase over 2011 due to the higher strip ratio associated with Area 2/118. In addition, increased partially oxidized blend in the 2012 plan will result in higher operating costs. Cozamin and Minto capital expenditures for the year are estimated at C$47.3 million (excluding exploration), which includes C$15.1 million at Cozamin and C$32.2 million at Minto. Major capital expenditures at Minto include C$7 million for renovations to the camp, C$14 million in underground equipment, infrastructure and development, C$4 million in upgrades to the water treatment facilities, C$4.5 million in plant upgrades and C$1.2 million in permitting activities related to Phase V. At Minto, a pre-feasibility study that assesses the potential for conversion of mineral resources identified in 2011 to mineral reserves potentially exploitable by a combination of open pit and underground mining methods is being compiled and is expected to be completed before the end of the first quarter. In addition, a scoping level report investigating the benefits of an increase in throughput (the larger pit bulk tonnage scenario) at lower than current copper-gold cut-off grades is being finalized. At the Kutcho Project in northwestern British Columbia, development activities for 2012 will be focused on the environmental and First Nations consultations towards permitting mine development in 2013. Sufficient detailed engineering also will be completed to support the permitting process and enable commencement of 2013 construction activities pending approvals being attained in a timely fashion. Kutcho expenditures for 2012 are estimated at C$6.2 million, which includes C$2.5 million in environmental assessment activities, C$1.9 million in basic engineering, and C$1.3 million in permitting activities. Capstone has approved an exploration budget of C$16.5 million to be spent in four key projects within three strategic areas. Brownfield exploration around the company’s producing mines remains a priority and Capstone has allotted C$11.3 million combined between the Cozamin (32,000 meters in drilling) and Minto (23,520 meters in drilling), where the company continues to target mineral resource additions aiming to increasing mine life and throughput. Capstone also has earmarked additional funds for greenfield exploration projects in Chile and Australia that were acquired through the June 2011 acquisition of Far West Mining Ltd. and other greenfield projects.

ABORIGINAL RELATIONS – The Council of Yukon First Nations says First Nations are feeling left out when it comes to approving mining projects in the territory and Grand Chief Ruth Massie says that has to change, CBC News reported Jan. 25. She said at a news conference Jan. 25 at the Annual Mineral Exploration Roundup in Vancouver that the CYFN will not sign off on the current review of the Yukon Environmental and Socio-Economic Assessment Act unless First Nations are made full partners in the process. Massie says that’s only fair, considering the level of mining activity taking place in the territory. “What we are basically seeking as First Nations is equal participation in the decision-making process of the YESA Act. Presently it goes to the YESA Board, the approvals go to the Yukon government minister bypassing Yukon First Nations, although we are asked to comment on all of the projects, which has been very, very overwhelming for the Yukon First Nations.” Massie added her member First Nations need more funding to help with the increasing number of assessments. “Tr’ondek First Nation in Dawson City has been absolutely overwhelmed with the applications coming in their door,” said Massie. “I know it’s well over a couple of hundred applications. And when you have one staff member trying to review and give adequate responses to the application, it’s very, very time consuming.” Massie says the Yukon government is aware of the CYFN’s concerns. However, the government says it wants to get the review wrapped up by the end of March.

GOLD – Victoria Gold Corp. Jan. 24 provided a review of 2011 while looking forward to key near-term milestones the company expects to achieve in 2012. Victoria President and CEO John McConnell said, “2011 has been a transformational year for Victoria. We have achieved significant steps to becoming Yukon’s next gold producer. In addition to our skilled exploration team, the company now boasts considerable development and construction experience. This growing team, focused on developing the Eagle Gold Mine in the Yukon, will drive important milestones, including the anticipated start of construction in the second half 2012.” Among its plans for 2012, Victoria said it will continue the Eagle drilling program to further test in pit, near surface, higher grade, high recovery oxide targets and improve resource confidence (there are currently two drills turning at Eagle); anticipate completion of an environmental assessment and receipt of the Quartz Mining License to allow the start of construction; undertake a preliminary economic assessment to determine the benefits of adding a second heap leach pad and increasing annual gold production; complete a power purchase agreement to secure grid power for Eagle; fully develop the owner’s team that will take the Eagle Gold Deposit into construction and operations; execute major EPCM contracts for construction; and complete the Cove Helen drilling program, which is currently on the fourth of 10 holes.

Victoria’s board of directors Jan. 20 also reported granting 6.115 million options to employees, directors and officers of the company. The option grant is the result of the company’s normal course annual compensation review and the issuance is made under the stock option plan of the company which was approved by shareholders of the company Aug. 18, 2011. The options will vest over an 18-month period and have an exercise price of C40 cents, and are exercisable for a period of five years from the date they are granted.

GOLD – AM Gold Inc. Jan. 23 said it has demonstrated through its 2010-2011 drill programs that the Red Mountain property in central Yukon Territory is comprised of an extensive gold-mineralized Tombstone intrusive rock complex enveloped by a carapace-like zone of altered sedimentary rocks which are also mineralized with gold. The company has established the potential for extensive tonnages of material extending to depth from surface that will require additional drilling to delineate its overall distribution. Red Mountain is a dome rising 500 meters above the surrounding valley elevation of 1,000 meters. Geological, geophysical and geochemical data together with 16,572 meters of drilling in 61 diamond drill holes to date show that much of Red Mountain is prospective for gold mineralization. A volume of prospective rock measuring 3.5 kilometers by 2 kilometers in surface extent and extending to at least 500 meters depth has been established from the geological and geochemical data framework. Geophysical data indicates the intrusive rock forms the core of the dome extending to over 1,000 meters in depth. The prospective intrusive host rock is interpreted to comprise a volume potentially exceeding 5 cubic kilometers. AM Gold said it plans to file an updated National Instrument 43-101 technical report for its Red Mountain property in the first quarter of 2012 that is expected to incorporate the results from the company’s 2011 drill program. The current inferred mineral resource estimate for Red Mountain is 79 million metric tons averaging 0.52 grams per metric ton gold, containing 1.32 million troy ounces of gold, utilizing a cut-off grade of 0.2 g/t gold.