Mining investments herald 'a new day' for Yukon economy: analyst

A mining analyst says money pouring into Yukonmineral exploration projects bodes well for the territory's economy.

"It's a new day from the standpoint of exploration. It's healthy," said John Ing, chief executive officer ofMaisonPlacements Canada Inc., an investment office in Toronto.

Barrick Gold announced earlier this week that it wants to initially invest more than $8 million in ATAC Resources's Orion project, 55 kilometres east of Keno City. The multi-phased deal could reach a total investment ofmore than $63 million for exploration.

• Barrick Gold invests $8.3M in Yukon gold project, with potential for more

That follows recent announcements from GoldcorpInc., NewmontMining and AgnicoEagle Minesabout plans to invest in the territory.

Ing says major mining companies have reduced their costsand now have money to invest. He said they're also looking to replenish their reserves.

"With free cash flow, they are now looking at exploration or partnerships with other companies who have found gold or discovered deposits," Ing explained.

"They're trying to accelerate the program because after all, exploration is the life blood for the mining industry when their product declines with every year they produce."

The deal between Barrick and ATAC closes May 3.

A sign of what's to come

Samson Hartland, executive director of the Yukon Chamber of Mines,says it's too soon toknow what might come of Barrick's investment in ATAC, since the latter is a junior mining company in the early stages of exploration of its Rackla property.

But he says it and the other investments are a positive development.

"We're going to see an increase on the side of labour needs when it comes to a number of these projects coming into fruition."

He says he isn't surprised that some of the biggest mining companies in the world are taking an interest in the territory.

"It's just a sign of what's to come now that the markets are in a healthy position."

Earlier investment from Newmont, Goldcorp

The Barricknews follows the March announcement from US-based Newmont,the world's second largest gold producer, that it has an interestin buying Goldstrike Resources, east of Mayo. Goldstrike said it had commitments from Newmont worth more than $14 million over two years.

Also in March, mining giant Goldcorp bought almost 20 per cent of the shares of Triumph Gold, a gold property west of Carmacks. Last summer, it also spent more than $500 million to acquire Kaminak's Coffee Creek gold propertysouth of Dawson City.

In December, AgnicoEagle bought a stake in the White Gold Corporation, for $14.52 million.