Yukon exploration activity picking up

The Yukon’s mineral exploration season is expected to improve considerably this summer after only $10 million was spent in 1992.

“It’s definitely picking up,” said Al Doherty, president of the Yukon Chamber of Mines. “We’re getting lots of indication that it’s going to be a better season.”

Doherty said about $15 million in exploration dollars has already been identified, and he thinks that number will climb to $20 million. “We seem to be seeing a strong interest in the Yukon,” said Doherty, who is employed with Aurum Geological Consultants.

He is hopeful the turnaround will be sustained and is not simply a reaction from mining companies nervous about spending money in British Columbia. The turnaround comes at a welcome time. Two lead-zinc mines of Curragh (TSE), Faro and Sa Dena Hes, both in the Yukon, remain closed while the company tries to raise additional capital.

The Yukon’s exploration highlight is the Casino copper-gold-molybdenum deposit, northwest of Carmacks, where Pacific Sentinel Gold (VSE) and Casino Silver Mines (VSE) have budgeted a $7.2-million drill program. Three rigs are already drilling around the clock at the site. Present reserves are about 378 million tonnes grading 0.3% copper, 0.34 grams gold per tonne and 0.04% molybdenum, including a high-grade core of 64 million tonnes grading 0.46% copper and 0.48 grams gold.

At the nearby Williams Creek oxide copper-gold property, Western Copper Holdings (VSE) and Thermal Exploration (ASE) have raised about $600,000 for feasibility studies and other work, Doherty said. In the No. 1 Zone, surface and diamond drilling has resulted in preliminary open-pitable reserves of 12.3 million tonnes grading 1.07% copper and 0.478 grams gold to a depth of about 600 ft. The companies plan to mine this zone at 1.23 million tonnes per year using conventional open-pit methods. Heap leaching and solvent extraction-electro-winning would produce 90-kg copper ingots. Ivanhoe Goldfields, a Robert Friedland company, will be active, pushing for Fort Knox-style porphyry copper-gold deposits. Ivanhoe has $1.5 million targeted for development of reserves at Dublin Gulch in the historic placer mining and tin-tungsten region around Mayo. Another $750,000 is set for Ivanhoe’s Clear Creek property.

The 1993 budget hasn’t been set for Brewery Creek, the oxide bulk-tonnage gold deposit which is a joint venture of Loki Gold (VSE) and Hemlo Gold Mines (TSE).

Mitsui Kinzoku Resources of Canada also plans a return to the Clear Lake lead-zinc deposit, Doherty said.

The mines chamber estimates Pamicon Developments has raised $600,000 for various projects, while Cominco (TSE) is spending about $500,000 on lead-zinc skarns in the Rancheria district.

Inco (TSE) has $500,000 to explore the Hart River area northwest of Dawson City. The deposit near the Tombstone Pass was worked in the 1960s and contains lead, zinc, copper, gold and silver.

Kennecott Canada is back in the territory with $500,000 for various properties, mainly gold in the Dawson area.

Doherty said more drilling is planned at the Grew Creek gold deposit, between Faro and Ross River, which has been re-optioned to YGC Corp. Eastfield Resources (VSE), which staked north of the Casino in the Dawson Range last year, has budgeted $500,000 to explore for copper and gold in 1993. Westmin Resources (TSE) plans to spend $200,000 looking for gold in the Wernecke Mountains, while Teck (TSE) has $50,000 earmarked for a property evaluation at Minto.

Doherty said the MacMillan Pass area will likely be quiet again this season, but there may be renewed activity for gold in the Wheaton River area south of Whitehorse.