EXPLORATION 1997 — Yukon experiences spending boom

Spending on exploration and mine development surpassed $108 million last year in the Yukon Territory, continuing an upward trend which began in 1992.

Exploration spending totalled $54.8 million (a 37% increase from 1995), while mine development expenditures were $54.1 million (slightly lower than the $57 million spent in the previous year).

Government officials predict that expenditures in both areas will be robust again this year, with half the exploration dollars once again being directed to the Finlayson Lake area, Canada’s newest volcanic-hosted massive sulphide camp. Work in this area was sparked by Cominco’s (CLT-T) 1994 discovery of the Kudz Ze Kayah deposit, as well as the subsequent Wolverine discovery of Westmin Resources (WMI-T) and Atna Resources (ATN-T).

New claim-staking reached the highest level ever recorded in the Yukon last year, with 22,685 claims staked by year-end. Officials say the high level of new claims recorded over the past three years has resulted in a historic high of 72,190 for quartz claims in good standing.

Most of the exploration dollars spent outside of the Finlayson Lake region last year were directed at the search for bulk-tonnage gold deposits.

Grassroots reconnaissance work was also carried out in 1996, including a program (financed by a private consortium) that is reported to have identified several, multi-element geochemical anomalies. This resulted in the staking of about 200 claims in the Brewery Creek region.

Mine development last year included work at Viceroy Resource’s (VOY-T) Brewery Creek property, the Yukon’s first heap-leach operation, and at the Mt. Nansen project (a past producer) of BYG Natural Resources (BYG-T). Both mines poured their first gold in November 1996.

The Faro zinc mine of Anvil Range Mining (ARO-T) closed early this year because of low zinc prices. However, with zinc prices improving, optimism is growing that it may be placed back into production now that control has been acquired by Cominco.