Issue link: http://resourceworld.uberflip.com/i/1058321
62 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 9 MINING T he Yukon has yet to host a significant hard rock gold mine despite the fact that tens of millions of dollars worth of the precious metal have been mined from its rivers and creeks since the historic Klondike gold rush at the turn of the 19th century. That might soon change with new discoveries by White Gold Corp. [WGO- TSXV; WHGOF-OTC; 29W-FSE] within its namesake district and Goldcorp Inc. [G-TSX; GG-NYSE] aiming for commer- cial production in 2021 from its Coffee Gold Project in the same region. Other majors are also betting heavily on the area including Kinross Gold Corp. [K-TSX; KGC-NYSE] and Agnico Eagle Mines Ltd. [AEM-TSX, NYSE], setting the stage for strategic alliances and corporate takeovers as new resources are discovered. Goldcorp acquired Coffee in July 2016 via the $520 million stock-based takeover of Kaminak Gold which had recently com- pleted a feasibility study for the project. That study projected a payback period of two years and estimated gold production of 1.9 million ounces over the life of the mine. Today, the Coffee Project is an integral component in Goldcorp's effort to increase gold output 20% by 2021. Indeed, Goldcorp has stated publicly that the high-grade open pit and heap leach devel- opment project could grow into a larger district-scale operation. The White Gold district has seen gold discoveries of approximately 7 million ounces since 2007 – not to mention some market-based acquisitions and project- specific investments by Canadian majors including Goldcorp, Kinross, Agnico Eagle and others. White Gold owns a portfolio of 21,218 claims comprising 34 properties, rep- resenting some 423,000 hectares or approximately 40% of this potentially world class gold mining district. Its prop- erty portfolio ranges from grass roots to advanced stage exploration projects and includes the company's flagship White Gold property which hosts a mineral resource of 960,970 ounces classified as indicated and 282,490 ounces inferred at the Golden Saddle property. The company is backed by not one but two major gold producers: namely Kinross and Agnico Eagle which each hold an approximate 19.6% interest in the junior company. In mid-October, White Gold announced a $15 million "bought deal" of common and flow-through shares at prices rang- ing from $1.50 to $2.00 with Kinross and Agnico Eagle holding the right to maintain their respective pro rata shareholdings in White Gold. Agnico Eagle in particular is no slouch with respect to mining in the north. The company's Meadowbank open-pit gold mine in the Kivalliq region of Nunavut 300 km west of Hudson Bay and 110 km by road north of Baker Lake, is its first Low Arctic mine although the mine's life is limited. Agnico will need to replace White Gold partners with majors in emerging Yukon gold field by David Duval