You know that the
gold market is hot, and you’re aware that Canada is a resource rich nation picking up in mining activity. Yet despite the storied success of resources in this country, Canada still has a lot of gold left to explore, and much of it is in the North.
Most modern Canadian gold mining operations have traditionally been located closer to the border, but we’re starting to see a renewed focus on projects in Northern Canada. Companies are increasingly realizing the impressive abundance of resources still untapped in the country’s Northern territories, and investors are starting to pay attention.
There are many perceived difficulties with operating in Northern Canada, including harsh climates and more importantly a lack of infrastructure. That’s why every new project and investment is a boon to the local sector as a whole, and why there’s a new wave of gold mines starting in the territories.
Just a year ago, the mining outlook from The Conference Board of Canada reported that new mining projects would see Yukon and Nunavut
surpass the rest of Canada in economic growth by 2020. In Nunavut, gold production alone is expected to double over the next few years and be the main driver behind an average growth of 7.3% for the local economy.
The bulk of the growth is coming from a few large projects, and the results are already showing. Yukon recently saw the opening of the CAD $500-million Eagle mine from
Victoria Gold Corp. (
TSX-V:VIT), the
biggest in the territory’s history. It might not hold that title for long however, as
Western Copper and Gold (
TSX:WRN) is getting closer to starting work on the Casino mine, which will
contribute an estimated CAD $9.6 billion to the Canadian economy over its 22-year mine-life.
Nunavut also saw its share of gold production noticeably increase thanks to some key expansions. The launch of the Meliadine mine and Amaruq expansion from
Agnico Eagle Mines Ltd. (
TSX:AEM) resulted in the company
producing a record amount of gold, while
Sabina Gold & Silver Corp. (
TSX:SBB)
continues to pave the way for the launch of the Back River project.
And there are plenty of experienced players looking to make further inroads in new Northern Canada project, including
Blue Star Gold Corp. (TSX-V:BAU). Everything is being driven by a strong gold market and local and federal governments eager to make permitting more accessible.
Momentum is a game changer in the mining industry, and right now, the North has it.
FULL DISCLOSURE: Blue Star Gold is a client of Stockhouse Publishing.