Yukon Territory exploration holdings which span over 1,000,000 acres. While they have several different project areas, their attention is currently focused on building resources and advancing their flagship Brewery Creek Project toward a production decision. Brewery Creek is a past producing heap leach mine located in the northwestern region of the Yukon, 55 kilometres due east of Dawson City and can be accessed by paved and gravel roads. A total of over 278,000 ounces of gold was produced by Viceroy Resource Corp. between 1996 and 2002 when the mine was shut down due to low prevailing prices. Production ore came from seven deposits located along the property’s Reserve Trend. The company recently published an NI 43-101 compliant resource estimate based on exploration work conducted at six zones including Big Rock, Fosters-Canadian, Bohemian-Schooner, North Slope, Sleeman, and Classic. The resource calculation showed a total of 20.4 million tonnes grading 0.89 grams per tonne gold (gpt Au) containing 581,000 ounces in the Indicated category and 13.0 million tonnes grading 0.83 gpt Au and containing 346,000 ounces in the Inferred category. Current plans call for a pre-feasibility study to be completed by year-end 2012, construction of infrastructure and support facilities in 2013, and an initial gold pour late in 2014. Golden Predator is also working to develop their Grew Creek project located midway between Ross River and Faro less than one kilometre off the Robert Campbell Highway. They have obtained a Class 3 Mining Land Use Permit and expanded exploration at Grew Creek is planned for 2013. The management team is led by Chairman and CEO William M. Sheriff. Victoria Gold Corp. Victoria Gold Corp. is another Vancouver-based mining junior working aggressively to advance their Yukon territory Dublin Gulch Property with particular emphasis on bringing the Eagle Gold Deposit into production as quickly as possible. The Dublin Gulch property is located approximately 85 kilometres by road from the community of Mayo. Since acquiring the property in June 2009, the company has brought the Eagle Gold Project forward to a point where they are now the most advanced gold project in their region. An NI 43-101 Resource Estimate shows resources of 222 million tonnes grading 0.68 gpt Au and containing 4.8 million ounces of gold in the Indicated category including 2.3 million ounces of Probable reserves grading 0.78 gpt Au and another 78 million tonnes grading 0.60 gpt Au containing 1.5 million ounces of Inferred resources. A feasibility study was completed in early 2012, which called for an open-pit mining operation designed to enter production in late 2014, or early 2015 and produce an average of 212,000 ounces of gold at an operating cost of $542 per ounce during the first five years of active production and 192,000 ounces of gold per year at an operating cost of $615 per ounce over the life of the mine. Total capital costs for production construction, pre-stripping and working capital are estimated at about $430 million.
The company recently achieved two pre-production milestones by signing an Access and Exploration Agreement with the Fist nations of Na-Cho Nyak Dun (NND) and by announcing the completion of a Draft Screening Report by the Yukon Environmental and Socio-Economic Assessment Board which recommended that the Eagle Gold Project be allowed to proceed. The company’s management team is led by John McConnell, President and CEO. Alexco Resource Corp. Our tour concluded with a visit to Canada’s only primary silver producing mine, Alexco’s Bellekeno Mine located in the historic Keno Hill Silver District where silver grades from previous historic production of over 10 million ounces averaged in the area of 40 ounces per tonne. Alexco’s silver production in 2011 amounted to two million ounces with an average cash cost reported at $10.17 per ounce. The district itself is located some 330 kilometres north of Whitehorse with the closest active community being the town of Mayo. It is located within the traditional territory of the First Nation of Na-Cho Nyak Dun (NND), comprises some 233.5 square kilometres and is characterized by numerous mineral occurrences and more than 35 mine sites with a history of production. As of early October 2012, the company estimated the mine life of the Bellekeno Mine using a production rate of 250 tonnes per day at four years, but the company is in the process of exploring and developing additional resources at four different locations. These include the Bellekeno Mine area itself where the company is in the process of recalculating their resources; the Lucky Queen Development Project; the Onek Development Project and the Historical Elsa Tailings area. Current historical, indicated and inferred resource estimates show 57 million ounces and Indicated resources have increased 52 per cent from 2011. The company’s total exploration and development programs for 2012 are budgeted at $12 million and include 29,000 meters of surface and underground drilling. Alexco’s goals include developing resources of 100,000 ounces of silver within the Keno Hills District and raising the annual rate of silver production to 7,000,000 ounces within the next decade. Alexco has made a point of contributing to the community by instituting agreements with NND, providing 200+ direct jobs with a total payroll over $22 million per year and contributing $22 million to date to remediate historic environmental liabilities. Their management team is led by President and CEO Clynton R. Nauman. After the tour was completed and we returned to Dawson City, I had the pleasure of looking out at the confluence of the Yukon and Klondike Rivers and it was easy to imagine stepping back in time to the Klondike Gold Rush Era and to understand the Yukon’s special lure. Mining in the Yukon is once again alive and looking toward a future filled with promise. n Mining North of 60 | 2012-2013 29