Investor Confidence and Quartz Fuel Mining in the Yukon

Fraser Institute’s Survey of Mining Companies: 2011-2012 held good news for the mining industry in the Yukon. It was rated as 10^th among the 93 jurisdictions surveyed in terms of Policy Potential Index or PPI which measures the overall attractiveness of mining policies instituted by a particular government. The Yukon also holds the distinction as the only Canadian Territory to reach the top 10 in this survey. The other top jurisdictions are: 1) New Brunswick, 2) Finland, 3) Alberta, 4) Wyoming, 5) Quebec, 6) Saskatchewan, 7) Sweden, 8) Nevada, and 9) Ireland.

Yukon Chamber of Mines executive director Michael Kokiw cited investor confidence brought about by the recently-implemented streamlined permitting process as one of the factors for the Yukon’s meteoric rise in the Fraser rankings. He reveals that the "industry’s adherence to best-management practices and early, effective engagement with First Nations and communities" combined with "the relative certainty and transparent regulatory and permitting processes" make them competitive globally which benefits the economy and elevates "the quality of life of all Yukon residents."

The rise is indeed unprecedented. From only $46 million spent on exploration in 2006, the figure rose to $320 million in 2011 and from zero dollars for rock mineral production in 2006, the 2011 figure rose to $485 million. For 2012, the exploration expenditure is estimated to be $200 million with more growth expected in the future.

Investor confidence is further backed by the fact that the Yukon delivers. The mineral quartz fuels the industry, generating revenues of up to $4.3 million. Gold, meanwhile, accounted for only for $224,466 in revenues. Capstone Mining Corporation which acquired Minto Explorations in 2005 has now discovered nine more deposits in its explorations since then. They are now processing and waiting for their Phase 4 Quartz Mining License to get approved before they can start harvesting. When Phase 4 operations get underway, the current 36,000 tonnes per day production is expected to increase to 37,050 tonnes per day. Cindy Burnett, vice-president for investor relations of Capstone, reveals that the lifespan of the mine is 10 years since it has a "reserve of 11.4 Mt."　

There are more than 80 mineral deposits in the Yukon’s four mining districts of Dawson, Mayo, Watson Lake, and Whitehorse. The six major mines in the territory include Brewery Creek which mines lode gold; Bellekeno and Minto which mine quartz; Carmacks Copper which mines oxide copper; Wolverine which mines zinc; and Sa Dena Hes which mines lead and zinc.

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