NEW FRONTIERS IN MINING — No operating mines yet —

While no mines are operating in the territory, there are several signs of encouragement on the Yukon exploration front.

A consortium bought the Sa Dena Hes lead-zinc producer from the receivers of Curragh (TSE), and both it and the Faro mine remain closed while base metal prices remain low.

However, spending on exploration doubled to $20 million in 1993, largely as a result of the copper-gold-molybdenum project of Pacific Sentinel Gold (VSE). “We’re optimistic for a good year, based on some positive results from 1993 exploration,” said Robert McIntyre, Yukon Chamber of Mines vice-president and managing director.

While Pacific Sentinel will likely spend less this year, McIntyre predicts other companies will spend more — mainly on gold and copper deposits, given the persistently low base metal prices.

He said activity in the northeastern Bonnet Plume region (also known as the “quiet frontier”) is encouraging. Mapping by Geoscience office geologists — soon to be released — shows mineralization similar to the Olympic Dam polymetallic deposits in Australia, McIntyre said.

Pamicon Developments, Equity Engineering and Westmin Resources did staking, prospecting and other work in 1993 in this area. Newmont Mines has joined the joint venture, which plans an extensive 1994 program.

Minto Explorations, a private company, expects a production decision by July on the Minto copper-gold deposit northwest of Carmacks. This deposit, which resembles Williams Creek, has geological reserves of 5.5 million tonnes grading 1.75% copper, with significant gold and silver values. Meanwhile, joint-venture partners YGC Resources (VSE) and Wheaton River Minerals (TSE) plan a production decision soon on their Grew Creek gold property, where they hope to use the nearby Ketza River mill. A feasibility study is due this spring for the Brewery Creek gold deposit, now fully owned by Loki Gold (VSE). The company, which moved its head office to Dawson City, plans a drive-in/drive-out operation.

Having two to four smaller mines operating would be healthy, McIntyre said. The closures at Faro and Sa Dena Hes have been major blows to the Yukon economy, as is witnessed by the decision by White Pass to stop shipping operations between Vancouver and Skagway, Alaska.

Curragh was the Yukon’s largest private sector employer. The unemployment rate was 12% in December, compared with 8.5% a year earlier. Nevertheless, Donald Irwin, president of the Whitehorse Chamber of Commerce, said the closures have not hampered the economy as much as people feared. Indeed, he believes business is better insulated and more cautious than when the Faro mine first closed, in the early 1980s.

And members of the mining industry seem pleased the Yukon Party government is hiring a “mining facilitator.” Robert Holmes, the government’s energy and mines director, said the facilitator, who could start work next month, will help companies sort through bureaucracy, regulations and the necessary contacts (such as the First Nations and land-use communities) to ensure that projects get under way.

Unfortunately, grassroots exploration remains scant. Federal geologists say about 5,000 new claims were staked in 1993, up slightly from a year earlier, and claims in good standing dropped slightly to 40,000.

Spending on Casino and related properties in the Dawson range totalled $13 million for 1993. Eastfield Resources (VSE) — in partnership with Breckenridge Resources (VSE), Achievers Training Group, Rockwealth International and Canadian Comstock Exploration (VSE) — worked on five recently acquired properties next to Casino’s western boundary. Western Copper Holdings (TSE) and Thermal Exploration (ASE) drilled eight zones at the Williams Creek oxide copper-gold deposit, identifying open-pit minable reserves of 11.3 million tonnes grading 1.15% copper and 0.52 grams gold per tonne in the Main zone.

Mitsui Kinzoku Resources of Canada and Total Energold continued exploration of the Clear Lake lead-zinc deposit northwest of Faro, completing 1,456 metres of drilling.

Other base metal exploration projects included work by:

* Pintail Resources at the Granite Mountain copper property northwest of Carmacks;

* Expatriate Resources at the Canalask nickel-copper deposit; and * Cominco (TSE) on its FIN property.

Kennecott Canada spent more than $1 million on both hard rock and gold targets. Its biggest project was a search for a bulk-minable gold deposit in the Klondike. But federal geologists say placer miners abandoned the traditional areas in the Klondike and moved west to the Madson Creek area. Total placer gold production to the end of November was 104,660 crude ounces, up 5% over the same period last year, thanks to the sudden jump in bullion prices early in 1993.

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