Learn why Underworld Resources, Alexco Resource Corporation, and Northern Freegold Resources have say Yukon is a great place to work.
Yukon Mineral Potential and Government Support Attract Mineral Exploration & Development Companies
For the president of a company called Underworld Resources, Adrian Fleming has been spending an awful lot of time near the top of the world. Fleming has a home and an office in New Zealand, but his company’s main focus these days is the expansion of its exciting new gold discovery in west-central Yukon. Underworld was originally formed to carry out mineral exploration in New Zealand, Australia and South America, but the company instead finds itself working in Canada’s Yukon. It was drawn to the territory by some very impressive exploration data and by Yukon’s welcoming and supportive attitude toward resource development companies.
In 2007, Underworld assessed a package of geochemical and geological data put together by prospector Shawn Ryan for an area near Dawson City, Yukon. “Shawn completed grid sampling over a large area,” says Fleming. “There were several zones where the soil samples showed elevated gold levels. That information jumped right off the page at us.” Within a few weeks, Underworld had secured the option to explore the White Gold and Black Fox gold properties, 95 kilometres south of Dawson. After three seasons of work at the site, Fleming is optimistic that there is good potential there for a mine. Two of the most promising areas discovered so far are the Golden Saddle and Arc Zones.
“We’ve found good gold grades and gold mineralization coming right to the surface,” says Fleming. “It’s very exciting for us to be working in an area where placer gold mining has taken place for a century, and yet there’s been no systematic thorough hard rock exploration. That fact alone blows you away. It’s a very promising area but hasn’t had much attention paid to it until now.”
Although Underworld won’t make a production decision for some time, Fleming says the recent successful start-up of the Minto copper-gold mine in Yukon has given the territory a good reputation. “In the case of Minto, Yukon’s processes were seen to be transparent, with efficient and timely processing of permit applications. That demonstrated that Yukon is a good place to explore and to look at developing a mine. Our own experience so far is that everyone at the Yukon government has a refreshingly positive and helpful attitude. They don’t allow shortcuts, but the overall mind set is that mining, when it’s done right, is a good thing.”
Underworld has already had a taste of Yukon’s assessment process, which is administered by the Yukon Environmental and Socio-economic Assessment Board (YESAB), a relatively new entity established in 2004. It operates at arms-length from government and makes recommendations which are then forwarded to the appropriate government decision bodies.
“We went through the YESAB assessment process before we received our permit to set up our camp,” says Fleming. “The process was seamless and straightforward, with timelines that were met by everyone involved. That has not always been our experience in other parts of the world.”
Fleming has also been impressed with the fact that the majority of Yukon First Nation land claims are settled. “It’s clear cut where most traditional areas are located. Mining companies still need to respect and work together with First Nations, but compared to other areas such as Australia, it’s much easier in Yukon to know if land is the subject of a claim or not. That really sets Yukon apart.”
In fact, industry is finding that Yukon First Nations themselves are interested in pursuing economic development opportunities associated with mineral exploration and development. For example, the First Nation of Na-Cho Nyak Dun has signed exploration cooperation agreements with Alexco Resource Corporation and Victoria Gold Corp., which cover the companies’ activities in the First Nation’s traditional territory. The First Nation regards the agreements as a first step toward building long-term relationships, developing economic opportunities and ensuring environmental stewardship.
“There are several key things that make Yukon a great place to work in mineral exploration and development,” says Rob McIntyre, Alexco Vice President, Business Development. “By and large, we’ve settled land claims and that gives the territory a clear advantage over the rest of the country and is a huge positive and concrete step for industry. As well, in the case of our company’s agreement with the First Nation of Na-Cho Nyak Dun, it gives us project certainty and the confidence to move forward. It also makes the First Nation a part of our team, without handcuffing them in any way.”
Alexco’s work in Yukon is unique in that it includes advanced exploration, environmental care and maintenance for deposits mined in the past, and reclamation planning for Yukon’s historic Keno Hill Silver District. In July 2009, the Yukon government agreed with the YESAB recommendation that Alexco’s Bellekeno mine project should proceed.
“The assessment of our mine permitting application went through in a matter of three to four months,” says McIntyre. “The YESAB process is thorough and transparent but still takes place in a reasonable amount of time. Another advantage of the YESAB process is that the Board issues recommendations only, and leaves the decisions and licenses to be issued by the specialist departments. If a project is well-conceived, it will be able to proceed and that is a very important thing for our industry.”
McIntyre also notes that the Yukon government has full authority over its resources, administering its own mining exploration and development permitting process. “Decisions are made right here in Yukon, which is a definite advantage over other parts of the Canadian North. Yukon has a stable, supportive and reasonable regulatory regime and that makes it a good place to do business in.”
Bill Harris and Sue Craig couldn’t agree more. They run Northern Freegold Resources, which is carrying out advanced exploration at Freegold Mountain, northwest of Carmacks, Yukon. Harris was born and raised in the territory; as a boy, he prospected with his father in the same area his company is now carrying out exploration. During his long career as a second generation prospector, Harris has also worked elsewhere, and when asked to compare Yukon to other parts of the world, he quickly warms to his topic.
“The Yukon government is doing what it should to support mineral exploration and development here. It assists by supporting power, infrastructure and road access. It has established stable rules and regulations that industry must follow. If a company follows the rules and involves the local community, there’s a good chance that you can make your project happen.”
“The government and its ministers have a business-friendly attitude,” adds Craig. “Political leaders will take the time to meet with mining companies and investors and answer their questions. Ministers don’t hesitate to make themselves available and that’s not something you’ll find in very many other areas of the world.”
In addition to Harris’s long history in Yukon, Craig has worked in Yukon for about twenty years, including serving as project administrator for the Brewery Creek mine near Dawson City. Both Harris and Craig have been around long enough to know that no system is perfect, but they are confident that with Yukon’s huge untapped mineral potential and its strong support for mining activity, this is the right place to be working.
“The YESAB assessment process is the closest thing you’ll find to a one-window system,” says Craig. “Land claim settlements bring more certainty, and successful partnerships with First Nations are possible. We have excellent infrastructure, including direct flights with Europe and port access. And we have political stability with decisions made locally. Yukon is a lot farther ahead in these areas than many other jurisdictions.”
“The Yukon Geological Survey provides tremendous support through its excellent database and staff,” adds Harris. “The Yukon Mining Incentive Program has helped prospectors and companies do baseline exploration that has eventually created huge projects in Yukon.”
Since its inception more than two decades ago, the Yukon Mining Incentive Program has been extremely successful in supporting the discovery of new mineral occurrences in Yukon, including funding in 2003 for the initial prospecting that led to the discovery of the White Gold property, where Underworld Resources is carrying out its advanced exploration.
YMIP is an example of what Yukon government is doing to support and assist mineral exploration and development companies who are carrying out responsible development, creating jobs and stimulating our economy. Yukon government continues to work with industry, First Nations and other Yukoners to ensure continued growth in Yukon’s resource sector, as it is a key contributor to our economy, culture and history.
