Yukon: An Emerging World-class Mining District

What makes the Yukon such a compelling mining jurisdiction?

Situated to the far north of the North American Cordillera, the Yukon is home to an incredibly diverse collection of rock types with over a billion years of geological history. The territory hosts more than 80 known deposits with established reserves, including some of the largest known occurrences in the world. The Yukon also contains over 27,000 known mineral occurrences that collectively cover just 12 percent of its total landmass.

Originally existing at the western edge of the ancient continent of Laurentia, the Yukon's geology features multiple island arc terranes along with multiple sections of Precambrian Proterozoic rock. The territory's unique physical makeup has long fascinated geologists, particularly in and around the Yukon River, which features exposed rock formations that are potentially hundreds of millions of years old.

A long history of mining and exploration

Though there is evidence the territory's Indigenous peoples mined and used copper throughout prehistory, the region's modern mining industry was born in 1896, when "Skookum" Jim Mason discovered gold in Bonanza Creek, a tributary of the Klondike River.

Mason's discovery kicked off the territory's first gold rush, drawing roughly 100,000 prospectors to the Klondike gold fields over the ensuing two years. It is as a direct result of the Klondike Gold Rush that mining became one of Yukon’s main economic drivers. Today, mining, quarrying and oil and gas extraction collectively represent around 11 percent of the Yukon's gross domestic product, eclipsed only by retail and construction.

The Yukon's second major gold rush occurred in 2004 when now-legendary prospector Shawn Ryan uncovered a massive gold deposit at the intersection of the White and Yukon rivers, just south of Dawson City. This discovery ignited a record-setting staking rush followed by a $138 million takeover of Underworld Resources by Kinross Gold (TSX:K,NYSE:KGC). In 2010, Ryan earned the Prospector of the Year Award during that year’s Prospectors and Developers Association of Canada Conference in Toronto.

By 2011, mineral expenditures in the Yukon had grown to $300 million — a massive leap from their $7 million total in 2002. That number has dropped only slightly since then, falling to $299.6 million in 2023.

Strong government support

At the beginning of 2024, Yukon Premier Ranj Pillai, Deputy Premier Jeani McLean, Energy, Mines and Resources Minister John Streicker and Finance Minister Sandy Silver attended the Association for Mineral Exploration's Roundup Conference and the Vancouver Resource Investment Conference. Speaking to attendees at these industry events, the officials reasserted their commitment to cultivating the territory's mining industry through continued investment.

The Yukon Resource Gateway Program, for instance, will upgrade infrastructure for up to 650 kilometres of roads in areas with high mineral potential and active mining. Jointly funded by the Canadian Federal Government, the Government of Yukon and the mining industry, the ongoing program is expected to spur even further mineral exploration and development.

The Government of Yukon is also assessing the possibility of a grid connection between the territory and British Columbia and securing access to tidewater through collaboration with the Municipality of Skagway, Alaska.

"Here in the Yukon, we acknowledge the pivotal role that mining plays in our economy and communities, and we understand that responsible mineral development can foster growth and support well-paying jobs for Yukoners, while contributing to the global shift to a cleaner future," Yukon Premier and Minister of Economic Development Ranj Pillai explained at the Association for Mineral Exploration's Roundup Conference.

"Our government remains committed to working in partnership with industry and First Nations governments to strengthen the Yukon's position as a global leader in mineral exploration. I encourage companies interested in doing business in the territory to sit down with Yukon First Nations governments to start that discussion."

In addition to the initiatives described above, the Government of Yukon plans to invest $1.4 million to support 44 exploration projects through its Mineral Exploration Program in 2024. The government also approved more mineral exploration in Whitehorse in late 2023, though the city expressed interest in establishing stricter regulations for mining in and around city limits.

Between its mineral-rich geology and mining-friendly policies, it should come as little surprise that the Yukon is home to many incredibly promising mining and exploration projects. Some of the most compelling currently under development include Silver North Resources' (TSXV:SNAG,OTCQB:TARSF) Haldane property; the Sands of Time project; Banyan Gold's (TSXV:BYN,OTCQB:BYAGF) Nitra project; and Transition Metals' (TSXV:XTM) Pike Warden project.

Haldane

Haldane is located in an underexplored high-grade silver project in the historic Keno Hill Silver District. Spanning 8,164 hectares within the traditional territory of the Na-Cho Nyak Dun First Nation, the project is in the same region where Hecla Mining (NYSE:HL) is producing silver at its Keno Hill Mine, and over 200 million ounces of silver were produced from 1913 to 1989. Silver North has made two promising discoveries at Haldane that indicate its potential to host economic silver mineralization.

Sands of Time

Originally owned by Dr. Jack Milton, the Sands of Time project was optioned to Cascadia Minerals (TSXV:CAM) in 2023. The land package, which spans 57 square kilometres, is located directly adjacent to the highly prospective Casino porphyry project. Sands of Time displays similarly sized molybdenum-copper soil anomalies to those present in Casino; the larger of the two has never been drilled.

Nitra

Situated in the Yukon's Mayo Mining District and within the territory of the First Nation of Na-Cho Nyak Dun, the Nitra gold project is 100 percent owned and operated by Banyan Gold. Since the company initially staked the exploration project in 2019, it has grown from 375 claims over 73.2 hectares to 1,442 claims across 296 square kilometres. Alongside a rich history of gold mining and exploration, Nitra also displays mineralization potential similar to the highly successful Eagle gold and AurMac projects.

Pike Warden

Located roughly 65 kilometers south of Whitehorse, Pike Warden is highly prospective for silver, gold, molybdenum, copper and lead. Transition Metals, which retains an option to earn a 100 percent interest, regards Pike Warden as one of its key value-creating projects. At present, over 25 zones of high-grade mineralization have been discovered.

Investor takeaway

Between its rich geology, extensive mining history and mining-friendly government, the Yukon remains one of the most compelling mining jurisdictions in North America — perhaps even the world. As the need for a domestic supply of critical minerals continues to mount, mining investment in the region will likely continue to increase. In the very near future, we may well see the territory reclaim its reputation as a world-class mining district.

But in the meantime, it's definitely worth keeping on one's radar.

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