Yukon Placer Mining Overview 2005

Yukon Placer Mining Overview
LeBarge, W., 2006. Yukon Placer Mining Overview 2005. In: Yukon Exploration and Geology 2005, D.S. Emond, G.D. Bradshaw, L.L. Lewis and L.H. Weston (eds.), Yukon Geological Survey, p. 41-45.

Today, more than 100 years after the discovery of gold in the Yukon, placer mining is still an important sector in the Yukon’s economy. Over 16.6 million crude ounces (517 tonnes) of placer gold have been produced to date in the Yukon — at today’s prices that would be worth more than $7 billion.

Approximately 450 people were directly employed at 128 placer mines in 2005 — and at least several hundred more were employed in businesses and industries that serve the placer mining industry. Most of the placer operations are small and family run, with an average of three or four employees. The majority of active placer mining operations were in the Dawson Mining District, followed by the Whitehorse Mining District and the Mayo Mining District. No active mines are currently in the Watson Lake Mining District. The total Yukon placer gold production in 2005 was 70,322 crude ounces (2 187 260 g), compared to 76,152 crude ounces (2 368 610 g) in 2004. The value of this 2005 gold production was $29.9 million.

Approximately 87% of the Yukon’s placer gold was produced in the Dawson Mining District, which includes the unglaciated drainages of Klondike River, Indian River, west Yukon (Fortymile and Sixtymile rivers, and the Moosehorn Range) and lower Stewart River. The remaining gold came from the glaciated Mayo and Whitehorse mining districts, which include the placer areas of Clear Creek, Mayo, Dawson Range, Kluane, Livingstone and Whitehorse South.

Reported placer gold production from Indian River drainages in 2005 decreased compared to the previous year, from 2004’s 27,366 crude ounces (851 178 g) to 26,473 crude ounces (823 403 g). Some of this decrease came from operations in Dominion Creek, but this was partially offset by some increases which were the result of new operations on Indian River.

In Klondike area drainages, production dropped slightly to 12,627 crude ounces (392 744g) from 2004’s 13,546 crude ounces (421 328 g), partially because of a decrease in gold coming from operations on Last Chance Creek. An increase in production came from bench deposits (“White Channel Gravels”) on Bonanza and Hunker creeks. A decrease was also seen in West Yukon (Sixtymile, Fortymile and Moosehorn Range) placer gold production, from 2004’s 15,065 crude ounces (468 574 g) to 12,314 crude ounces (383 008 g). Matson Creek and Sixtymile River had fewer royalties reported, while figures increased from Kate Creek. Fifty Mile Creek, a tributary of Sixtymile River, began producing for the first time in 2005. Reported production from operations in the Lower Stewart drainages was also down in 2005, to a total of 9572 crude ounces (297 722 g) from 11,496 crude ounces (357 565 g) the previous year. All operations, including those on Thistle and Black Hills creeks, reported less gold.
As usual, little gold was reported from Clear Creek drainages although several operations were active in 2005. The total reported gold from royalties increased slightly to 255 crude ounces (7931 g) from 207 crude ounces (6438 g).

In the Dawson Range, reported placer gold production dropped slightly from 1619 crude ounces (50 372 g) to 1545 crude ounces (48 054 g). In the Mayo area, gold production decreased from 2502 crude ounces (77 821 g) to 2340 crude ounces (72 782 g). In the Kluane area, reported placer gold production rose significantly from 1912 crude ounces (59 470 g) to 2667 crude ounces (82 953 g). The increase came mainly from Gladstone Creek.

The Livingstone area was inactive, although 17.2 crude ounces (535 g) of gold were reported the previous year in royalties. In the Whitehorse South area, some mining and testing activity took place on Moose Brook and Wolverine Creek, although no royalties were recorded. Iron Creek, a tributary of Sydney Creek, had 27.4 crude ounces (852 g) reported in royalties.

Placer Exploration
Although it is generally unrecorded, exploration on placer mining properties has been a part of the process for many miners since they began to mine. Traditional methods of sampling and exploration include auger, reverse circulation and churn drilling, and geophysics including seismic surveys, ground-penetrating radar and magnetometer surveys. Trenching and bulk sampling also continue to be well used methods of testing placer ground.

The Yukon Mining Incentives Program contributed funding to nine placer exploration programs in 2005. More information about this program can be obtained from Steve Traynor, Economic Geologist, Steve.Traynor@gov.yk.ca, (867) 456-3828 or at http://www.emr.gov.yk.ca/mining.

One of the highlights of placer exploration in 2005 was the continued activity by Boulder Mining Corporation on their Indian River property 30 km south of Dawson City. The company produced a total of 436 crude ounces (13 561 g) of gold from three areas in two separate pits. The property consists of a large-volume bench deposit which lies above the modern valley of Indian River. Generalized stratigraphy consists of a Tertiary-age, ’White Channel‘ gold-bearing gravel on a bedrock terrace, which is in part overlain by glaciofluvial and glaciolacustrine sediments deposited during the earliest pre-Reid glaciation.

Exploration on this property in 2005 consisted of an extensive program of alluvial bulk sampling, alluvial sampling, and hard-rock mapping and sampling. Average grades from each of the three areas mined were 0.14 g/m3, 0.23 g/m3 and 0.18 g/m3. A total of 76 828 cubic metres were sluiced. A production-scale program for the property is being considered for the 2006 season.

Similar geologic and geomorphic settings to that of Indian River exist in other unglaciated drainages in the Yukon, specifically in Fortymile and Sixtymile areas. Although limited amounts of placer exploration have taken place on alluvial terraces in these areas, they remain poorly understood. It may be possible that significant quantities of gold lie in these bench deposits which have yet to be methodically evaluated.

The long-term health of the Yukon’s placer mining industry requires that new placer gold reserves be discovered as traditional mining areas become depleted. With the application of new placer exploration and research techniques and new ideas, additional placer gold reserves may be found in non-traditional, more complex geological settings.

The staff at the Yukon Geological Survey and the Client Services and Inspection Division (Department of Energy, Mines and Resources, Yukon government) can provide information and advice regarding placer mining in the Yukon. Publications on placer mining in the Yukon are available through the Yukon Geological Survey office at Room 102, Elijah Smith Building, 300 Main Street, Whitehorse, Yukon. Many recent publications and maps can be downloaded for free from our website at www.geology.gov.yk.ca.

 

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