Yukon mineral exploration activity was severely affected by the COVID-19 pandemic and associated travel restrictions early in the year. As the summer began, exploration and mining companies were able to adjust their operating procedures and develop plans to allow them to adapt to the new reality. Companies implemented measures such as limiting the number of persons in camps, hiring local Yukon-based employees and contractors, increasing work rotation times so that employees spent less time in self-isolation, arranging for hotels to be used for self-isolation centres, having self-isolation spaces and procedures in camps and limiting the number of non-project personnel on site. These measures were crucial in turning around what was looking like a bleak exploration season and allowing for some sense of normalcy.
An increase in precious and base metal prices in mid-summer provided a much-needed shot in the arm for junior exploration companies. Yukon Geological Survey (YGS) tracks mineral sector spending through press releases, SEDAR and correspondence with companies. Although spending projections were dire at the start of the field season, by year-end, exploration expenditures are expected to be between $70 and $80M (vs. $117M in 2019). Development expenditures for the year are expected to be $65M, down from $225M in 2019. The drop in development expenditures is primarily due to the completion of construction at Victoria Gold Corp.’s Eagle Gold mine. Year end metal production for 2020 is approximately $300M with production coming from Eagle Gold, Minto and the newly re-opened Keno Hill mines.
