Newmont’s Yukon gold project gets green light
Newmont Corp.’s [NGT-TSX, NEM-NYSE] Coffee Gold project has been given the green light, Yukon Premier Sandy Silver said in a press release.
The Yukon and Canadian governments, in partnership with Yukon First Nations have come to a joint decision to accept the Executive Committee’s recommendation that the Coffee Gold project be allowed to proceed.
As proposed by Newmont, it will consist of four open pit gold mines located about 130 kilometres south of Dawson City. The project is expected to have a construction period of 30 months, followed by a 10- year operations phase and 11-year closure phase.
The project will include a camp for up to 400 workers and during the peak of construction will provide jobs for nearly 700 Yukoners.
Prior to issuing a decision, the Government of Yukon consulted with Tr’ondek Hwech’in Government, Selkirk First Nation, White River First Nation and the First Nation of Na-Cho Nyak Dun. The Yukon government said it anticipates further engagement and consultation with First Nation governments as regulatory approvals for the project are considered.
“We are very pleased to reach a decision that will allow the Coffee Gold project to move forward,” Premier Silver said. “The Coffee Gold project will provide significant employment opportunities for many Yukoners and contribute to the territory’s growing economy,” he said.
“Through our ongoing engagement with Yukon First Nations and our collaboration with the Government of Canada, we look forward to supporting the next stages in the development of the Coffee Gold project.”
Newmont picked up the Coffee project via its acquisition of former Canadian gold mining giant Goldcorp Inc. in early 2019. Goldcorp in turn snapped up the asset by acquiring Kaminak Gold Corp. in a $520 million deal back in 2016. Coffee is a structurally-hosted hydrothermal, gold deposit. At the time it was acquired by Goldcorp it had a total indicated gold resource of 3.0 million ounces (63.7 million tonnes of grade 1.45 g/t) including total gold mineral reserves of 2.2 million ounces (46.4 million tonnes at 1.45 g/t). On top of that is an inferred resource of 2.2 million ounces (52.4 million tonnes at 1.31 g/t).
According to the news release, the Coffee Gold project will be reached by a 214-kilometre access road, with barge crossings at the Stewart and Yukon rivers.
Newmont is the world’s leading gold miner and a producer of copper, silver, zinc and lead. The company has assets in North America, South America, Australia and Africa.
On March 6, 2022, the shares closed at $94.52 and currently trade in a 52-week range of $95.05 and $66.25.