Yukon mining outlook looks bright
Victoria Gold Corp.’s Eagle Gold mine in 2019.
High mineral prices have helped the territory’s economy weather the pandemic The Yukon’s economy has weathered the COVID-19 pandemic better than many other jurisdictions in Canada, and the latest public forecasts look bright as well. Activities related to mining have been a major driver of Yukon’s recent economic growth and are expected to continue to be a key driver of the economy going forward. The territory’s real gross domestic product is expected to see robust growth of 9.6 per cent this year, according to the most recent fiscal and economic update published in March by the Government of Yukon’s Department of Finance. This growth in 2022 would build on estimated real GDP growth of 5.2 per cent in 2020, the highest in the country, and March’s growth forecast of 4.8 per cent for 2021. Mineral production is a big driver of 2022 growth, and the March forecast calls for production to remain elevated over the 6
medium term. The Yukon’s three major mines all expect to increase production this year. Victoria Gold Corp.’s Eagle Gold Mine, which poured its first brick of gold in 2019, is expecting production to be between 165,000 and 190,000 ounces in 2022, up from just over 164,000 ounces in 2021. Production beyond 2022 is expected to increase as Victoria Gold has initiated Project 250, which is aimed at increasing the average annual gold production of the mine toward 250,000 ounces in 2023. Minto Metals Corp.’s Minto Mine and Alexco Resources Corp.’s Keno Hill project, meanwhile, both anticipate to boost production. A positive preliminary economic assessment released in May 2021 doubled the remaining life of Minto to 2028 and improved its near-term production outlook. Keno Hill is similarly expected to increase production after
reopening last year and the project is expected to approach its target of milling 400 tonnes per day this year. To date, the Yukon’s major mines have managed to avoid major disruptions caused by COVID-19. Following strong gains in 2019 and 2020, placer gold production fell seven per cent to just above 64,000 ounces in 2021. While down, production was well ahead of the average of just under 53,000 over the previous 10 years. The March forecast has annual production remaining near the 2021 level in all years of the forecast. The March forecast also had total mineral revenues in the territory increasing to $1.1 billion this year, up from an estimated $770 million in 2021. The outlook for mineral production value remains strong, with annual levels expected to exceed $1 billion annually out to 2026. Strong mineral prices have helped fuel exploration in the Yukon. Last year, Natural Resources Canada estimates the exploration industry spent $135.1 million in the territory, up almost 62
