EXPLORATION ’94 — Exploration spending in the Yukon on the

A positive mood is prevailing among junior mining companies active in the Yukon. Exploration spending increased to more than $30 million this season, economic deals have been signed with First Nations bands, and several projects are advancing towards production.

The Killer Gold project has been optioned to Cash Resources (VSE), despite the fact that environmental groups tried to oppose a land-use permit that enabled the company to walk an excavator on to the property, citing wildlife concerns.

“People in the Yukon want reasonable, fair environmental rules,” says Peter Ross, the Yukon prospector who optioned the property to Cash. “But to survive, we also need development and jobs.”

The recent staking by Cominco (TSE) of a massive sulphide deposit around Finlayson Lake has added further excitement to the Yukon camp. Metal prices are conducive to exploration in the region, says Alan Doherty of Aurum Geological Consultants, adding that there has been activity for gold in the McQuesten Belt between Dawson and Mayo, and around Dawson. “We’re getting lots of calls from people wanting to know what’s going on up here,” Doherty says. “We’ve definitely left the really rotten years behind.” Roland Ronaghan, federal mineral rights manager for the Yukon, believes the Territory features about nine potential mines. “The Yukon looks better than it has in 10 years,” he says.

The Brewery Creek gold project of Loki Gold (TSE) is set to start production in late 1995. And YGC Resources (VSE) and Wheaton River Minerals (TSE) hope to raise $5 million to start production at Grew Creek next spring, using the old Ketza mill.

Pacific Sentinel Gold (VSE) finished drilling at Casino in June and is working on a feasibility study.

Meanwhile, Minto Explorations (VSE) has amalgamated its Minto Creek properties and is concentrating on definition drilling and a mill feasibility study.

United Keno Hill Mines (TSE) let contracts for underground work this year and plans to drill into the spring, while Cominco is doing development work at the Sa Dena Hes lead-zinc mine site.

Faro’s lead-zinc mine may be revived. The sale of the property to Anvil Range Mining is due to close soon, with a stripping program possible this winter. Prospector James McFaull optioned his Aurex gold claim near Keno Hill to Yukon Revenue Mines (VSE) in 1992. McFaull says the budget this year is $200,000, including percussion and diamond drilling.

Some other companies active in exploration included Regent Ventures (VSE) around Clear Creek, Redell Mining (VSE) and La Rock Mining (VSE) near Mt. Nansen, Noranda (TSE) at Ketza River and Kennecott Canada near Dawson and Mayo.

The total number of active claims at the end of September was 64,093, up from 60,373 in January, 1993.

In October, Inco (TSE) staked about 300 claims in the Kluane area near Destruction Bay, and about 4,500 claims were staked around Finlayson Lake by Cominco and Atna Resources (VSE).

Land claim settlements are moving ahead. Parliament passed the overall final agreement last summer and surface rights legislation is expected to pass before year-end.

The involvement of First Nations in mining projects is growing. Anvil Range Mining and YGC Resources both signed socio-economic deals with the Ross River Dena Council, and now Cominco has begun negotiations with them. The Ross River Kaska’s land claims selections border Cominco’s Finlayson Lake claims, 200 km northwest of Watson Lake.

Cominco is even financing a tour of its Red Dog mine this month for six Ross River people, on native settlement lands in Alaska.

Western Copper Holdings (TSE) and Thermal Exploration (ASE) have reached agreements with the Selkirk First Nation for the Carmacks Copper project. Leaders of the Champagne and Aishihik First Nation have talked with Cash Resources about its Division Mountain coal deposit, which borders their traditional land. (New open-pit minable reserve estimates are 15.8 million tonnes, to be confirmed this fall, and Yukon Government Leader John Ostashek is “very optimistic” that coal reserves will be developed for Yukon power needs.)

However, uncertainty remains about how the Surface Rights Board and Development Assessment Process will work.

— The author is a freelance writer based in Whitehorse, Y.T.