Mining exploration exceeds Yukon forecasts

Mineral exploration spending in the Yukon this year has more than doubled initial forecasts by territorial government researchers, who predict mining production to triple next year.

The Yukon government's latest economic update, which includes data up to Nov. 11, pegs mineral exploration expenditures for this year at $90 million, well beyond the government's estimated range of $25 million to $40 million from May.

Much of that hefty jump was linked to a gold-staking rush at Underworld Resources' White Gold property, located 90 kilometres south of Dawson City.

2 new mines coming soon

The Yukon's only producing mine to date, Capstone Mining Corp.'s Minto copper mine, continues to grow. After two years of production, drilling results show ore reserves there are bigger than ever, according to the update.

But government researchers note that by the end of next year, two more mines are slated to begin production: Alexco Resource Corp.'s Bellekeno silver mine near Keno, and Yukon Zinc Corp.'s Wolverine zinc-silver mine near Ross River.

Last week, the territorial government issued a quartz mining licence for the Bellekeno site, giving Alexco the go-ahead to start building a mine there.

The opening of those two mines is expected to triple the Yukon's mineral production, according to researchers.

Construction permits up

Another sector showing significant growth this year was construction, with the value of permits totalling $137.3 million as of October — up more than 125 per cent from the same period in 2008.

Government researchers pointed to major Whitehorse-based projects for the construction spike, including work on a new jail, a new nurses residence at Whitehorse General Hospital, expansion of the local airport and construction of a new public safety building.

One sector that did not fare so well this year was tourism, as the number of visits to the Yukon dropped by seven per cent.

But government researchers predict the Yukon's tourism numbers will recover next summer if the global economy continues to improve.

Retail sales were also 5.3 per cent lower this year, mostly due to lower automotive retail sales.