TerraX stakes huge claim
Exploration could lead to gold revival, company hopes
Jessica Davey-Quantick
Northern News Services
Wednesday, February 22, 2017
SOMBA K'E/YELLOWKNIFE
TerraX Minerals Inc. is hoping to bring back the golden years of Yellowknife mining, staking 383 square kilometers of adjacent land surrounding the city for exploration -- and raising millions to do it.
TerraX Minerals Inc has laid claim to 383 square kilometers for exploration around Yellowknife. Plans this winter including drilling south of Kam Lake. - map courtesy of TerraX Minerals Inc.
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The Yellowknife City Gold project has grown 10 times its original size since TerraX acquired the Northbelt Property in a bankruptcy sale in 2013. Some $4.5 to $5 million is budgeted for exploration in the Yellowknife area this winter, and TerraX plans to begin raising funds this spring to carry the project through to the end of 2018.
"Our expectation is over the next three years we'll be able to raise about $40 million to carry out the work we want to carry out," said CEO Joe Campbell.
Mayor Mark Heyck said TerraX's expansion is a positive sign for the industry.
"The mining sector in particular has had some difficult years recently, particularly in financial markets trying to raise funds to get exploration projects off the ground," said Heyck.
Natural Resources Canada's latest report on mineral exploration spending in the NWT projected a 47 per cent drop in exploration and deposit appraisal for 2016, with spending intentions dropping to $54 million from $100.9 million in 2015. Other mining operations in the region have also sucked it in and tightened their fiscal belts this year-- Dominion Diamond's announcement that it was relocating its head office to Calgary from Yellowknife, and the layoff of 51 workers at Diavik Mine were both the result of cost-cutting measures.
"It's good to see that (TerraX is) expanding their search for minerals in this region," said Heyck.
Earlier this month, TerraX began its 17,000-meter winter drill program for the Yellowknife City Gold project, drilling at the Mispickel, Sam Otto, Banting Lake, Southbelt and Townsite sites surrounding the city.
"Typically you're looking at 100 to 1,000 times the area to explore to get to that one area that you want have a mine," said Campbell.
New holdings include areas around Ptarmigan Mine, Tom Mine and Burwash Mine, extending from the top of Prosperous Lake down to Dettah.
"The areas we have staked are all areas that had been staked and explored previously. So this is an example of coming in with newer methods of exploration to find the gold that other people missed," said Campbell.
But that doesn't mean TerraX is looking for crumbs. Campbell said they're hoping for a big enough strike to bring back the glory days of Yellowknife mining.
"Exploration can include finding small deposits and creating small mines, and that's not the strategy of TerraX. It's to find another big mine, a mine that could be potentially multi-generational for employment for people in the area," he said.
The project also includes an ice road along Kam Lake that will be open for public use.
"It's not as glorious as sort of the ice road that goes up to the diamond mines. We just need to make a trail that will allow us to bring in the drilling equipment," said Campbell.
The trail will cut through Kam Lake to an area south of the lake where the drilling will take place. Construction has already begun, and should be done by next week.
"We always assume that this is an area where the public will make use of any access that you put in," said Campbell, adding they'll be posting signs and have taken steps to ensure their activities and public use won't interfere with dog mushers who use the area as well.
The entire exploration project around Yellowknife will continue for another eight to 10 years before any mining could get underway.
Heyck said the city is ready for it.
"I think it shows a lot of promise for that particular project," he said. "If we can create some additional employment through new projects such as the Yellowknife City Gold Project I think that'll be a positive thing for us in the long term."
Campbell said TerraX has been consulting continually with people, from the city to indigenous governments, the territorial government to community groups, cabin owners and recreational groups. The company will be hosting a public meeting tonight at the Yellowknife Ski Club at 7.30 p.m.
"We're right next door to an urban area, and so people have an interest in what we're doing. And of course, there's always the worry that somebody is going to fire up a bulldozer and drive over their front yard," said Campbell. "So we take a lot of effort to make sure that people understand what we're doing."
Heyck isn't too concerned about the impact a mine so close to Yellowknife could pose.
"People assume, when they think of mining they think of what's in close proximity to us -- Giant Mine, Con Mine. But the regulatory environment is much more stringent than it used to be," said Heyck. "So I think for a community that has always depended to a considerable degree on mining and resource extraction, if something like this can get off the ground, I think it will be a positive contributor."
