Mining News: Mineral Roundup in Yukon Territory
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Yukon Territory has one producing mine, the Minto copper-gold-silver operation near the Yukon River north of Whitehorse. During 2008, more than 150 active hardrock exploration projects in the territory, 73 of which recording spending greater than C$100,000, and 22 posted outlays greater $1 million. Here’s a look at some of the mining companies active in Yukon Territory.
Producing mines Sherwood Copper Corp., now a part of Capstone Mining Corp., took the Minto Mine, Yukon Territory’s only producing hard rock mine, to new heights in 2008. Minto recorded impressive production results in 2008, its first full year in operation after startup in October 2007. The mine produced about 47.7 million pounds of copper, 31,000 ounces of gold and 260,000 ounces of silver in 2008, and underwent a phase 3 mill expansion to 3,200 metric tons per day. By mid-year, Minto’s resource estimates, drawing on 2007 drilling results, had jumped for copper, gold and silver, 50, 40 and 38 percent, respectively. Capstone, which completed its merger with Sherwood in the fourth quarter, announced the discovery of Minto North, another high grade copper-gold zone at Minto, Feb. 4. The fifth such discovery as the mine since Sherwood acquired the project in June 2005, Minto North lies about 600 meters north-northwest of the mine’s current open pit. Capstone has said it will focus in 2009 on further resource expansion at Sherwood, targeting definition drilling at the Area 118 and Ridgetop deposits in support of its plans to increase the mine’s daily throughput to 4,000-5000 tpd, and on exploration drilling at the high-grade Copper Keel zone discovered in 2008. Updated mineral resource estimates for Minto, incorporating the results of a 24,000-meter, 120-hole drill program in 2008 should be completed by April 30.
Advanced development projects Yukon Zinc Corp., after years of striving on its own to develop the rich polymetallic Wolverine Project in southeast Yukon Territory, cleared a major hurdle in mid-2008 when two well-capitalized Chinese companies bought up all of the public shares of the junior. In July, Jinduicheng Molybdenum Group Ltd. and Northwest Nonferrous International Investment Company Ltd. took control of Yukon Zinc, becoming one of the largest landholders in Yukon with exploration reserves in two of Canada’s emerging mining areas, the Finlayson and Rancheria districts. Wolverine has measured and indicated resources of 4.46 million metric tons grading 12.14 percent zinc, 354.8 grams per metric ton silver, 1.16 percent copper, 1.69 g/t gold and 1.58 percent lead (at US$80 cut-off). Inferred resources are 1.69 million metric tons containing 12.16 percent zinc, 385.4 g/t silver, 1.23 percent copper, 1.71 g/t gold and 1.74 percent lead (at the same cut-off). The inferred resources are in the deeper portion of the deposit and require additional in-fill drilling to improve resource confidence. Development of the fully permitted volcanic massive sulphide project is already under way and expected to continue with construction of mine infrastructure in 2009. Start up a 5,000 tpd underground mine is anticipated by the third quarter of 2010.
Alexco Resources Corp. spent 2008 working to bring the Bellekeno deposit to production on its extensive Keno Hill silver-lead-zinc claims in central Yukon and conducting further exploration of the property, one of the world’s richest silver districts. The junior tallied a resource estimate of 16 million ounces of silver for Bellekeno, completed a positive preliminary economic assessment and secured underground development and advanced exploration permits. It also drove a new access adit into the existing Bellekeno underground workings and deposit in order to drill it from underground and upgrade resources before making a production decision. The junior also entered a silver purchase agreement with Silver Wheaton Corp. for $US50 million in return for 25 percent of its silver production at Bellekeno. Alexco is expected to make a production decision on Bellekeno and begin production preparations within the next few months with early 2010 targeted for startup. It also plans to identify its next production targets, continue exploration and expand its environmental services business.
Western Copper Corp. cleared the way in 2008 for final permitting of its Carmacks copper project, one of four projects it is pursing in Yukon. Located 38 kilometers, or nearly 24 miles, northwest of the town of Carmacks in central Yukon, the Carmacks project has a measured and inferred oxide resource of 12 million metric tons grading 1.07 percent copper, 0.46 g/t gold and 4.6 g/t silver. In sulphides, it has a further 4.3 million metric tons grading 0.75 percent copper, 0.22 g/t gold and 2.4 g/t silver. In December, Western Copper submitted updated applications for a quartz mining license, which allows construction to start, and a water use license, which would enable production to begin on an operation with a 6.5-year mine life. With the permits in hand, the junior is expected to make a production decision later in 2009.
CMC Metals Ltd. moved ahead with permitting for the Silver Hart property located in south-central Yukon, an area that contains numerous epithermal silver-rich vein and replacement-style deposits. The 2,142- hectare, or 5,290-acre, property has 126 claims and enough known high grade silver/ zinc mineralization to support a small-scale 80-metric-ton-per day mining operation. Silver Hart can be reached via a 42-kilometer, or 26-mile, all-weather access road from the Alaska Highway 132 kilometers west of Watson Lake, B.C. CMC Metals plans to complete mine/mill development permitting, and start pre-mine production and development of the mill site and camp facilities, while continuing infill drilling on the KL, F, D and M zones, and updating an NI 43-101 resource estimate. Based on current approval schedules, mill commissioning and other work, full production could take place in 2009.
Advanced exploration projects Cash Minerals Ltd. greeted a surge in coal prices in 2008 with an updated NI 43-101-compliant pre-feasibility study for its Division Mountain Coal Project in November. Division Mountain, located 90 kilometers, or 56 miles, north-northwest of Whitehorse, contains estimated measured mineral resources of 52.5 million metric tons of high volatile bituminous “B” coal, including 26.4 million metric tons of proven mineral reserves. Cash Minerals said the study demonstrates the economic viability of developing a mining operation that provides about 2.6 million metric tons per year of coal for export to Asia. The junior is also investigating the potential of providing the coal as feedstock for a mine-mouth power station and exporting it to China to use in Fischer-Tropsch technology to produce clean-burning alternative fuels from coal.
Largo Resources Ltd., after completing extensive exploration at the Northern Dancer Project in 2008, reported an updated resource estimate for the deposit with significantly higher grades and 58 percent and 76 percent more tungsten and molybdenum, respectively, in contained pounds. Northern Dancer, formerly called Logtung, is considered one of the world’s largest undeveloped tungsten-molybdenum deposits. It is located in south-central Yukon Territory on the border with British Columbia. Though Largo said it was very satisfied with the progress it made in defining technical aspects of the project in 2008, the junior decided to defer preparing a preliminary economic assessment of the project until tungsten prices and market conditions, in general, improve.
Overland Resources, an Australia-based junior, made significant progress in 2008 exploring claims encompassing the Andrew Zinc Deposit in Yukon Territory’s base metal-rich Selwyn Basin in 2008. Drilling results not only confirmed the quality of the project, but also revealed the Darcy zone, a new high-grade deposit located about 600 meters southeast of the Andrew deposit. Overland has reported a resource estimate that meets Australia’s reporting guidelines for the Andrew deposit of 5.04 million metric tons at 7.47 percent zinc, 1.72 percent lead, 5.43g/t silver & 17.43 g/t germanium with a 3 percent zinc cut-off applied. The resource estimate is currently being updated by an independent consultant. Overland also signed a strategic marketing agreement with a major metals trading house that covers all concentrates produced from the Andrew Zinc Deposit and forged cooperative agreements with the Selkirk, Nacho Nyak Dun and Kaska First Nations to assist with economic and cultural programs. The Andrew property is situated at the convergence of lands owned by the three groups.
Selwyn Resources Ltd. continued exploration of the world-class Selwyn Project in the Howard’s Pass zinc-lead district in eastern Yukon in 2008. Since 2005, Selwyn Resources, formerly Pacifica Resources Ltd, has spent more than $48.28 million on exploration, development and environmental programs on vast claims in both Yukon and Northwest Territories. The Selwyn Project covers 14 zinc-lead deposits strung along a strike length of 37.5 kilometers, or more than 23 miles, including the newly discovered XY West Zone. In February, Selwyn Resources reported an updated resources estimate of 154.35 million metric tons in the indicated category grading 5.35 percent zinc and 1.86 percent lead, with contained metal of 18.19 billion pounds zinc and 6.31 billion pounds lead; and 234.15 million metric tons in the inferred category grading 4.54 percent zinc and 1.41 percent lead with 23.43 billion pounds zinc and 7.28 billion pounds lead. Selwyn Resources is focused on providing detailed information for a prefeasibility study, and to support a permitting application in 2009.
Stratagold Corp. completed a C$5 million 15-hole, 4,248.65-meter drill program in the Eagle Zone deposit of its Dublin Gulch Project in central Yukon in 2008 that focused on defining additional gold resources to the east and southwest of the deposit and successfully extending the known mineralization along strike to the east and southwest. Wardrop Engineering Inc. completed an updated NI 43-101 Mineral Resource estimate on the Eagle Zone Deposit in January that added 37 percent to the Indicated Resource for a total of 2.69 million ounces of gold averaging 0.849 g/t gold. The new resource estimate incorporates results from 13,057.65 meters of drilling from 2006-2008. Wardrop Engineering also recommended that StrataGold undertake a NI 43-101 pre-feasibility study and complete additional studies. The Dublin Gulch project also hosts the Mar-Tungsten Deposit, for which Stratagold released an updated mineral resource estimate Dec. 1 that increased that deposit’s indicated resource by 89 percent to 3.9 million metric tonne units of tungsten concentrate with a cut-off grade of 0.10 percent WO3. The revision also was based on drilling completed last summer, and an MTU is 1/100th of a metric ton, or about 22 pounds.
Tagish Lake Gold Corp. continued in 2008 to move its Skukum Creek high-grade gold and silver deposit to production with exploration and development work. The Skukum Mineral District project is located 80 kilometers, or 55 miles, southwest of Whitehorse, and has estimated measured and indicated resources totaling more than 1.4 million metric tons grading 6.6 g/t gold and 153 g/t silver (using a 5 g/t gold cutoff); and inferred resources of 625,000 metric tons grading 8.9 g/t gold and 44g/t silver. Tagish Lake also began a feasibility study and entered negotiations to merge with the Chinese investment-backed Yukon-Shaanxi Mining Company Inc. The merger is expected to be completed in 2009.
Western Copper Corp. completed a pre-feasibility study for its Casino copper-gold-molybdenum project in central Yukon Territory in August and concluded that a sizable open-pit mine could economically be brought on line as early as 2014. The junior estimates that the Pebble-like porphyry deposit located 300 kilometers, or 186 miles, northwest of Whitehorse contains a huge resource base that could feed a 600-employee mining operation for 30 years.
Yukon Gold Corp. revised its resource estimate for its Marg Project in July using a $70 per metric ton net smelter return cutoff. A volcanic massive sulphide deposit in the Tombstone Belt of Yukon Territory, Marg is estimated to contain a 7.85-million-metric-ton resource with mineable quantities of copper, zinc, lead, silver and gold. The junior has begun work on a scoping study for the project.
Yukon-Nevada Gold Corp. continued exploration and development of its properties in Yukon Territory in 2008, encountering more high-grade mineralization and laying groundwork for a small mining operation. The company hopes to achieve production from the Manto deposits at the historic Ketza River Mine, targeting 2010 for initial gold production and ramping up to 60,000 ounces in annual output in 2011. Ketza River has estimated measured and indicated resources of 646,000 ounces of gold and an inferred resource of 112,800 ounces. Short-term goals include completing a pre-feasibility study, making a positive mill decision; and starting a mine and mill in operation producing up to 60,000 ounces of gold per year. The junior also aims to continue exploration of the highly potential Shamrock Zone and Silver Valley, both in the Yukon.
Early stage exploration projects ATAC Resources Ltd., one of the Strategic Exploration Group, fulfilled a key part of its mission in 2008 as a mining “project generator” in Yukon Territory by making a significant gold discovery on its Rau property at the northern edge of the Tintina Gold Belt. Highlights of 2008 drill results include 46.42 meters averaging 2.92 g/t gold from hole Rau-08-16 and 78 meters grading 1.71 g/t gold from hole Rau-08-05. ATAC is considering follow-up exploration at Rau with a significant 2009 diamond drill program. In February, ATAC staked 11 more prospective properties in Yukon, bringing to 20 the number of gold projects it owns, many of which are drill ready.
Copper Ridge Explorations Inc. focuses on early grassroots prospects including several properties in Yukon Territory. In 2008, it advanced modest exploration programs on the Scheelite Dome gold, Borealis uranium, Lucky Joe copper-gold and Clear Lake zinc-lead and silver properties and is currently seeking partners or investors to take on further exploration. Prospector Consolidated Resources Inc. also drilled a four-hole, 500-meter program in Copper Ridge’s Kalzas tungsten property in 2008 and has said it intends to complete a resource calculation in anticipation of continued drilling in 2009.
Eagle Plains Resources Ltd., a junior with numerous properties in western Canada, joined with Blind Creek Resources Ltd. in 2008 to complete a 7-hole, 3,435-feet (1,047.3-meters) drill program on the silver-base metal Blende property about 65 kilometers northeast of Keno Hill in central Yukon. Assay results, announced Jan. 22, included hole BE08131 with 2.6 meters grading 12.72 percent lead and zinc and 103 g/t silver within 28.9 meters grading 5.98 percent lead and zinc and 58.2 g/t silver; and hole BE08126 with 3.4 meters grading 26.0 percent lead and zinc and 361.9 g/t silver; 14.71 percent lead and zinc and 215.7 g/t silver over 8.1 meters and 10.55 percent lead and zinc and 225.0 g/t silver over 9.9 meters.
Northern Freegold Resources Ltd. is a Whitehorse-based junior that scored spectacular advancements in exploring its Freegold Mountain Project in south-central Yukon in 2008. The project, which encompasses 166 square kilometers, or 64 square miles, has more than 15 known gold occurrences, including the Nucleus Zone, one of five zones it explored in 2008. A slew of outstanding assay results have trickled in since last summer, alternately stunning and wowing the Canadian investment community. For example, Hole GRD08-073 intersected 1.23-meters (4.04 feet) averaging 206.50 g/t (6.02 oz/ton) gold within 46.96 meters (154.07 feet) grading 14.51 g/t (0.42 oz/ton) gold. The junior is still awaiting results from testing of the final 14 of 53 drill holes sample last year, and is expected to continue exploration at Freegold Mountain in 2009.
Northern Tiger Resources Inc, completed a third consecutive season of exploration on the Sonora Gulch gold-silver-copper property (2006 and 2007 programs were conducted by its predecessor company Firestone Ventures) with 6,084 meters in 32 drill holes returning significant intercepts in the Nightmusic and Amadeus zones. In Nightmusic, Hole SG-08-27 returned a 26.6-meter intercept grading 5.0 g/t gold, 11.9 g/t silver, and 0.23 percent copper, including a 4.0-meter zone grading 25.8 g/t gold and 6.5 g/t silver; and in Amadeus, Hole SG-06-06 returned a 15.3-meter intercept grading 6.2 g/t gold and 3.0 g/t silver, including a 5.0-meter interval grading 12.2 g/t gold and 4.8 g/t silver. Soil and silt geochemical surveys also identified three significant targets and several anomalies for further exploration. Sonora Gulch is located in the heart of the Yukon’s Dawson Range 40 kilometers west of the Minto mine. The junior said results of the 2008 season are currently being compiled to assist in planning the 2009 exploration program.
Underworld Resources Ltd., a new player in Yukon Territory, discovered two zones of gold mineralization at Golden Saddle and the Arc Zone during its 2008 drill program at its White Gold Project. The New Zealand-based junior optioned White Gold and the Black Fox property from RyanWood Exploration, another well-established project generator in the Yukon. Underworld is now focused on expanding its new gold discovery.
Sources: Yukon Geological Survey and companies listed.
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