In the mining industry, location is paramount.
Invest your capital in a jurisdiction that doesn’t respect that investment, or in a place with little geological potential, and it’s possible that it will end up going to waste.
That’s why, when there’s a place on the map that has world-class geology and also a plan for working with miners and new explorers, the money begins to flow to take advantage of that potential.
Why Investors are Looking at the Yukon
Today’s infographic comes to us from the Yukon Mining Alliance and it shows nine reasons on why people are investing in Yukon mining and exploration companies today.
For resource investors, it is rare to see variables like government investment, jurisdiction, geological potential, and investment from major mining companies all aligning.
However, in the Yukon, it seems this may be the case.
9 Reasons for the Yukon
Here are nine reasons the Yukon is starting to attract more investment capital:
1. Rich History
Mining was central to the Yukon even over a century ago, when over 100,000 fortune-seekers stampeded into the Yukon with the goal of striking it rich in the famous Klondike Gold Rush.
2. Geological Profile
In the last decade, there have been major discoveries of gold, silver, copper, zinc, and lead in the Yukon – but perhaps most interestingly, only 12% of the Yukon has been staked, making the region highly under-explored. Spending on exploration and development rose from $93 million to $158 million from 2015-2017.
3. Major Investment
Major mining companies now have a stake in the polymetallic rush. Recent companies to foray into the Yukon include Agnico-Eagle, Barrick, Couer Mining, Goldcorp, Kinross, and Newmont.
4. Leaders in Exploration and Mining
Juniors in the region are working on new geological ideas as well as new technology to unlock the vast potential of the region.
5. Progressive Partnerships
First Nations and the Government of Yukon have recently championed a new government-to-government relationship that enables them to be on the exact same page when it comes to mineral projects.
6. Government Investment
The Yukon government is investing in new infrastructure (via the Resource Gateway Project). It also offers the Yukon Mineral Exploration Program (YMEP), which provides a portion of risk capital to explore and develop mineral projects to an advanced stage.
7. Made in Yukon Process
The Yukon government also tries to foster regulatory certainty to create clarity for companies and investors, by its customized tri-party process.
The jurisdiction has 5,000km of government maintained roads, receives 95% of power from clean hydro, has international and local airports, and has access to three deep-water, ice-free ports.
9. Geopolitical Stability
Canada offers geopolitical stability to start with – but with unprecedented cooperation between the territorial government and First Nations, the Yukon is arguably a step above the rest of the country.