Kitco Returns To The Yukon
(Kitco News) - There are strange things done in the midnight sun
By the men who moil for gold – Robert Service
Nearly three years ago, I traveled up to the Yukon to explore the region’s mining sector. I left with a strong sense of optimism among the mining CEOs as they were expecting that it would be only a matter of time before investors started to take notice of the region’s mining untapped potential.
Well, a lot has changed in the last three years. After two days of traveling and three planes later, I am back in the Yukon!
For the next week, I will be touring Canada’s most western territory, visiting a variety of projects to see how they have advanced over the last three years. And while I have just arrived in historic Dawson City, I can already feel that sense of optimism has transformed into committed confidence.
While gold prices continue to struggle and the sector sees lackluster investor interest, companies in the Yukon continue to move forward with their projects quietly.
The federal and Yukon governments are investing hundreds of millions of dollars for the territory’s infrastructure, building road access to significant gold projects.
The Yukon is now being recognized as a significant mining jurisdiction. The territory is on the cusp of seeing a new mine opening as Victoria Gold continues the construction of its Gold Eagle property, which is expected to see commercial production in the second half of 2019.
Meanwhile, major gold producers -- including Barrick Gold, Goldcorp, Newmont Mining and Agnico Eagle -- have all made significant investments in the region in the last three years. Goldcorp kicked off the Yukon’s new gold rush after it bought Kaminak Gold and its key Coffee gold project.
Famed mining investor Frank Gustra has also recently increased his presence in the Yukon, strengthening his position in Klondike Gold. The junior miner is exploring near Dawson City for what it believes is “the motherload” -- the mineral source behind the millions of ounces of gold that have been taken out of Bonanza Creek since gold was first discovered in Dawson City in 1885.
I think you are starting to get the picture.
The one thing that hasn’t changed in the territory is the passion for gold. In my first visit to the Yukon, I learned that while the region was largely ignored by the rest of the world, gold mining part of the people’s DNA.
In the latest production stats, 48,625 ounces of gold were mined in the Yukon from the territory’s placer gold production. In the last 133 years, nearly 14 million ounces of gold has come out of the Yukon, and if this newfound confidence is correct, that could just be the tip of the iceberg.