Mining Explorers 2011: Yukon: Northern Star keeps shining in 2011

Yukon Territory continues to be in the limelight with the previous years' gold exploration successes leading to definition of gold deposits in 2011. Gold is the leading commodity in terms of exploration, but silver, base metals and tungsten are the leading commodities in terms of mine development. A number of regions are continuing to attract high-profile attention with two of Yukon's operating mines expanding their reserves and new discoveries continuing throughout the territory. The year has been very exciting so far.

A new 'stake first, explore later' technique is now in play in Yukon. Where companies used to conduct regional reconnaissance-level prospecting and sampling before staking large properties, they now stake first, based on public data such as regional stream sediment data sets, and do the reconnaissance work after. Much of the exploration this year consists of reconnaissance exploration of the nearly 78,000 claims staked in the first half of 2011.

Another significant change in exploration strategy is the higher speed of information-gathering in the field. Utilizing on-site analysis methods such as portable geochemical analyzers and specialized software, companies can create digital three-dimension geochemical models in real time and use them to guide exploration programs. Drill targets can now be chosen quantitatively before assay data is received; what used to take several years to accomplish is now being done in one season.

Robust exploration

After Kinross Gold Corp.'s friendly takeover of Underworld Resources Inc. in mid-2010, Kinross defined an NI 43-101-compliant resource of 1.5 million ounces of gold in late-2010. Successful definition of the White Gold deposit two years after the 2009 discovery is a testament to the Kinross team and the potential of the White Gold area.

Kaminak Gold Corp. followed up last year's discovery on the Coffee property in the White Gold area with continued success, notably 74.9 grams per metric ton over 4 meters. Kaminak is working towards a NI 43-10-compliant inferred gold resource.

Much to the exploration community's delight, new discoveries in the area continue. For example, Pacific Ridge Exploration Ltd.'s first diamond drill hole on its Mariposa property intersected 2.44 g/t gold over a 38.9-meter interval that includes 6.44 g/t gold over an 11.1-meter interval.

ATAC Resources Ltd. is also continuing its exploration success on the Rackla Gold Project which encompasses over 1,600 square kilometers (618 square miles) of quartz claims in central Yukon along the north margin of the Selwyn Basin. Highlights of this project include definition of a NI 43-101-compliant gold resource at the Tiger Zone expected in late-2011; extensive diamond drilling of the Osiris Zone which lies 100 kilometers (62 miles) east of the Tiger zone and regional exploration between Osiris and Tiger zones. Recent results from this summer's drilling have been impressive; among them is 3.15 g/t gold over 115 meters.

Exploration companies that defined drill targets in 2010 are now actively drilling, while companies new to properties are undertaking extensive soil sampling programs; more than 200,000 soil samples are estimated for the White Gold area this year alone.

Companies such as Radius Gold Inc. and the Constantine Metal Resources-Carlin Gold joint venture staked ground along the margin of the Selwyn Basin last winter and are now conducting reconnaissance-level exploration and are defining drill targets for 2012.

Mine development

Alexco Resource Corp. has made impressive progress on development of the Bellekeno mine, which officially opened in May. The mine is now fully operational and is on track to meet its 2011 silver production target of 2.5 million ounces. Further exploration success by Alexco at the Lucky Queen and Onek deposits has increased the total indicated resource on Alexco's properties in the Keno Hill District by about 40 percent.

Capstone's Minto Mine has been in continuous production since 2007. An amendment to the company's mining license has been approved, which allowed Capstone to increase production to 3,600 metric tons of ore per day. Minto is also starting underground development with the aim of bringing underground production online late in 2011 or early in 2012. Thanks to recent exploration successes, the total mineral resource at the Minto Mine now exceeds 1 billion pounds of copper, which should extend the life of the mine well past its projected seven years.

Open-pit mining of Victoria Gold Corp.'s Eagle Gold deposit and underground mining of North American Tungsten Co. Ltd.'s Mactung deposit are both under assessment by the Yukon Environmental and Socioeconomic Assessment Board, which is part of the regulatory and permitting process for Yukon mines.

Western Copper Corp. spent 2011 preparing for the assessment and permitting process for the Casino property in the southern Dawson Range.

The Selwyn-Chihong Mining Ltd. joint venture spent 2011 preparing for the assessment and permitting process for development of the XY and Don deposits at the Selwyn Project in the Howard's Pass District.

Selwyn-Chihong also started an advanced underground exploration program this year with the aim of getting a 30-metric ton bulk sample for metallurgical testing.

Yukon's commitment

The Government of Yukon is committed to continually improving the investment climate by providing regulatory certainty. Supporting the exploration and mining industry continues to be a priority for the Yukon Geological Survey, and they have initiated or continued geological studies, such as bedrock mapping, in the Rackla area.

The place to be

Success has been pervasive in every aspect of Yukon's growing mineral industry, including expanding resources at the operating Minto and Bellekeno mines, exploration in the White Gold area, the Rackla Gold Project and a host of other Yukon projects. Two mines are in the assessment process and several other Yukon projects are continuing their economic and environmental studies adding to the number of potential near-term mines. 2011 has been an exciting year with mining and exploration clearly establishing itself as one of Yukon's main industries for the foreseeable future.