Mineral exploration in Yukon began 2016 much like it finished 2015. Challenging equity market conditions and cautious investors meant junior exploration companies started the season conservatively. Then the mid-May announcement of Goldcorp’s (www.goldcorp.com) interest in Kaminak Gold’s (http://kaminak.com) Coffee property prompted a significant boost to Yukon’s mineral industry. By the time Kaminak shareholders approved the C$520 million deal in July, companies across the territory were expanding its field programs and making good deals due to increased interest by investors.
While much of the industry excitement revolved around Goldcorp’s interest in Yukon, other advanced exploration projects had success as well. In January 2016, after its 2015 field program on the newly acquired Kudz Ze Kayah property, BMC Minerals (http://bmcminerals.com) announced an updated resource on the ABM deposit and the discovery of the Krakatoa deposit. Combined resources of the ABM and Krakatoa deposits are 20.8 metric tons of 6.4 percent zinc, 2.0 percent lead, 0.9 percent copper, 145 grams-per-metric-ton silver, 1.4 g/t gold; a 50 percent increase of the resource in one season’s work. In 2016, BMC will complete more than 15,000 meters of exploration and definition diamond drilling while working towards the completion of a pre-feasibility study.
Victoria Gold Corp. (www.vitgoldcorp.com) performed an impressive amount of exploration on its Dublin Gulch property, drilling 20,000 meters on the higher grade Olive and Shamrock zones, two kilometers (1.24 miles) from the Eagle Gold deposit. Victoria also conducted grassroots exploration on several other properties and has been active corporately, positioning itself for construction of its fully permitted Eagle mine.
Alexco Resource Corp. (www.alexcoresource.com) continued exploration work on its Keno Hill property with 15,500 meters of diamond drilling on the high-grade core of the Bermingham deposit. With the price of silver looking up, Alexco is also preparing for a return to production by collaring a new portal into the recently discovered Flame & Moth deposit, which is adjacent to the existing mill.
Rockhaven Resources (www.rockhavenresources.com) diamond drilled 8,000 meters at the Klaza property focusing on both expanding and defining resources, as well as testing existing geophysical and geochemical anomalies across the property.
Atac Resources Ltd. (www.atacresources.com) focused on its Rackla Gold project in 2016. They filed a favourable preliminary economic assessment for the Tiger deposit in the Rau Trend and completed phase-one rotary air blast drilling and phase-two diamond drilling on the Orion zone in the Nadaleen Trend.
With the price of gold remaining strong through the summer and equity markets taking note of the Goldcorp deal, junior mining companies were able to raise funds to advance their projects, particularly gold projects. Golden Predator (www.goldenpredator.com) processed a 750-metric-ton bulk sample from the Sleeping Giant vein on its 3Aces property early in 2016 and continued exploring the property through the year with nearly 4,000 meters of drilling planned. At the past-producing Brewery Creek mine, Golden Predator was busy conducting 1,600 meters of geotechnical and metallurgical drilling near former pits to evaluate the remaining gold mineralization.
Banyan Gold (www.banyangold.com) plans to complete 800 meters of drilling for metallurgical testing as well as conduct soil sampling and trenching at the Hyland Gold Project in southeast Yukon.
Strategic Metals Ltd. (www.strategicmetalsltd.com) continued generative work on its extensive portfolio of Yukon properties. Highlights to date include 5,000 meters of diamond drilling split between the Hartless Joe, Hopper and Mars properties.
Goldstrike Resources (www.goldstrikeresources.com) was active on its flagship Plateau Gold property diamond drilling 1,500 meters on the Goldstack zone. Successful prospecting also doubled the length of Yellow Giant gold trend to more than 50 km.
Independence Gold Corp. (www.ingold.ca) did 3,000 meters of reverse circulation drilling on the Boulevard property, which is contiguous with Goldcorp’s Coffee property. Independence also conducted rotary air blast drilling geophysical surveying and geochemical sampling on other properties in central Yukon.
Klondike Gold (www.klondikegoldcorp.com) has had a productive season exploring its Klondike Goldfields property, doubling its land position by acquiring 1,125 claims, diamond drilling 5,000 meters and conducting a 230 line-kilometer ground magnetic survey.
Grassroots explorers also were active across the territory with companies staking nearly 5,000 new claims to the end of August. Total claims in good standing in Yukon remains at over 200,000.
More than 80 projects were active across the territory in 2016, and exploration expenditures are estimated to total C$60 million and development expenditures at C$20 million, similar to the amounts in 2015. Exploration activity is mostly gold focused with 75 percent of exploration programs exploring for gold, while the remaining 25 percent is split between lead, zinc, copper, nickel, silver, platinum group metals and jade exploration.
Yukon currently has one operating hardrock mine, Capstone Mining Corp.’s Minto copper-gold-silver mine. Production at Minto in 2016 is better than planned. At the end of the second financial quarter, the Minto mine had produced 10,615 metric tons of copper. Mining continues in the Minto North pit, with copper grades above 2 percent and should result in a significantly higher production for the second half of the year. Underground mining is planned to extend into the third quarter, to take advantage of high-grade underground ore. Low copper prices have forced the company to consider long-term closure options and production beyond 2017 is dependent on the price of copper.
Funding for the fully-subscribed Yukon Mineral Exploration Program (www.geology.gov.yk.ca/ymep) remained at C$1.4 million in 2016. The Government of Yukon recognizes that a successful minerals industry is dependent on high-quality geo-scientific information. Through the Yukon Geological Survey (www.geology.gov.yk.ca), the Yukon government continues to support the industry by generating and compiling geological data to form the foundation that allows for better decision-making by industry. Bedrock mapping is a key component of this, and the 2016 projects included mapping in the Hyland map sheet in southeast Yukon, Aishihik Lake area in southwest Yukon, and the Lake LaBerge and Tay River areas in central Yukon. Other projects include a metallogenic study of the mineralizing potential of Jurassic-aged plutons in Yukon, and airborne geophysical surveys in the Livingstone placer district and Frances Lake area.
