Western Copper applauds Ottawa’s $40 million Yukon transmission line plan
Western Copper & Gold Corp.’s [WRN-TSX, NYSE American] has highlighted the recent announcement by Natural Resources Canada (NRCan) conditionally approving $40 million in federal funding to undertake pre-feasibility activities to advance a high-voltage transmission line network connecting the Yukon electrical grid to the North American grid in British Columbia.
This funding would be provided through the Critical Minerals Infrastructure Fund (CMIF). The government announcement stresses the importance of investments in critical minerals infrastructure to enable Canada to seize the generational opportunity to transition to a low-carbon economy and capitalize on the country’s rich mineral resources.
“This is a meaningful step toward advancing much-needed energy infrastructure in the Yukon, with potential to support Canada’s broader focus on improving the environmental performance and sustainability of critical mineral development,’’ said Western Copper CEO Sandeep Singh.
Western Copper shares were unchanged Monday at $1.69. The shares trade in a 52-week range of $2.27 and $1.27.
Western Copper is working to develop its 100%-owned Casino copper-gold-molybdenum deposit in the Canadian Yukon.
The Casino project ranks as one of the largest copper-gold projects in Canada. It is estimated to host measured and indicated resources 14.5 million ounces of gold and 7.6 billion pounds of copper. On top of that is an inferred resource of 6.6 million ounces of gold and 3.3 billion pounds of copper.
A preliminary economic assessment (PEA) which was announced in June, 2021, envisages a large open pit operation, a concentrator to recover copper, gold, silver and molybdenum, and a solid waste facility to store mine waste rock and mill tailings.
The project will also feature a heap leach facility to recover gold, silver, and copper from oxide ore as well as 130 kilometres of access road and an on-site power generation facility.
As discussions around the grid connections evolve, the Casino Copper-Gold Project’s future energy demand could play an important role in shaping strategic investments that enhance connectivity, providing lasting benefits for the Yukon and its communities, Western Copper said in a press release.
“While Casino’s feasibility study demonstrates a highly viable project using liquified natural gas power, a potential future pathway to hydro grid power would be transformative, allowing the project’s critical minerals to be produced while minimizing its carbon footprint,” the company said.
Western Copper has attracted strategic investments by Japanese industrial giant Mitsubishi Materials Corp. and Rio Tinto Plc’s [RIO-NYSE]. Rio Tinto holds a 9.7% stake in the company, while Mitsubishi holds 4.1%.
Mitsubishi is a Japanese industrial giant engaged in the production of automotive, electronic and metal products. Its involvement in Casino comes roughly two years after Rio Tinto made a $35.6 million strategic investment in Western Copper & Gold.
The move was seen at the time as an opportunity for Rio Tinto to gain a better understanding of the Casino project.