Resource World Magazine

40 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 8 that a proposed 65-km private, all-season tote road to its Tiger gold deposit will be allowed to proceed following a joint deci- sion by the Yukon Government and the Na-Cho Nyak Dun (NND) First Nation. ATAC President and CEO Graham Downs described the decision as a major de-risk- ing milestone for the company and all three projects within its Rackla gold property, where recent work included drilling on multiple high-grade Carlin-type gold zones and resulted in a positive Preliminary Economic Assessment for the Tiger Gold deposit (measured and indicated resource of 485,700 oz gold). An inferred resource of 1.68 million ounces has also been outlined on the Osiris Project, also on the Rackla property. The Orion Project, also on the Rackla property, is subject to an earn-in agreement worth $55 million with Barrick Gold Corp. [ABX-TSX, NYSE]. The need for infrastructure comes at a time when companies in Canada's Far North are experiencing mixed for- tunes when it comes to project financing. "There is financing for [advanced] projects with meat on the bones," said Jo Price, VP, Exploration at K2 Gold Corp. [KTO- TSXV]. "But the little guys aren't getting much traction with retail investors," she said. "We need a new discovery to breathe some life into the Yukon. Then we will be off to the races again." YUKON The Yukon is about to turn a corner as Victoria Gold Corp. [VIT-TSXV] and Alexco Resources Corp. [AXR-TSX; AXU- NYSE] get set to open new mines next year. Outside of the Yukon's placer gold opera- tions, the Minto copper mine has been the territory's only producing hard rock mine in recent years. But Minto is poised for a new lease on life after Capstone Mining Corp. [CS-TSX] agreed to sell the operation to Pembridge Resources Plc. [PERE-LSE]. Headed by CEO Charles Linsley and President Peter Bojtos, Pembridge was set up to acquire assets considered non- core and are either in production or about to reach that stage. Thomas Horton, Pembridge's VP Project Development, said Pembridge agreed to buy the Minto Mine hoping to extend mine life of the opera- tion by three to four years. Capstone's current mine plan supports operations to 2021 with a total resource base of 23 mil- lion tonnes of 1.42% copper, containing 708 million pounds. Expected annual pro- duction is currently 33 million pounds of copper. Victoria Gold continues to develop what is expected to be the largest hard rock gold mine in Yukon's history. The Eagle Gold Project, 85 km north of Mayo, is expected to produce 200,000 ounces of gold annu- ally using heap leaching. Full construction began in March with completion and first gold pour scheduled for the second half of 2019. "The successful construction program completed late in 2017 allowed us to hit the ground running and construction of the Eagle Gold Mine is off to an outstand- ing start," said Victoria Gold President and CEO John McConnell. A revised construction capital estimate was finalized at $442 million, the company said in a May 24, 2018 update, adding that project commitments to date are nearly $200 million, with $55 million incurred cost. "I am pleased with the significant num- ber of Yukon-based companies and Yukon First Nation partnered businesses that have already been engaged for construction, which has resulted in a high level of local hiring," McConnell said. Alexco Resources Corp. is preparing to restart production at the United Keno Hill Mine site, which ranks as Canada's second largest producer of silver, behind Cobalt, Ontario. During an illustrious history, it produced 217 million ounces. Alexco exploration Vice-President, Alan McOnie, said the company hopes to be in a position to make a production decision by the end of 2018. "It's not far off," he said. The company is working to secure a permit for the Bermingham deposit, the FAR NORTH

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