If Gold Terra Resource Corp. can hit a target of two million ounces of gold, mining near Yellowknife could spring to life again.
“Our goal is to find two million ounces this year. And if we find two million ounces this year, or within the next two years, well, we’ll have a project to be developed,” said CEO Gerald Panneton in reference to the Yellowknife City Gold Project and the past-producing Con Mine property, which jointly lie to the immediate north, east and south of the city.
Gold Terra currently has 1.2 million ounces of inferred gold, which is estimated based on limited geological evidence and sampling.
The company took its message to the public and answered questions during a town hall gathering at the Yellowknife Ski Club Chalet on Wednesday.
Details presented during the event revealed that a high-quality MP Ryan Zone was recently located on March 22 in the Mispickel area, where there was 19 grams of gold per tonne over four metres, as well as 73.9 grams of gold per tonne over one metre.
The first 13 holes drilled in this zone have intersected visible gold.
Drilling along the Campbell Shear showed varying degrees of success in the Yellorex Zone — the area immediately south of Con Mine. Results included 4.16 grams of gold per tonne over 11.23 metres and 10.85 grams of gold per tonne over 4.35 metres.
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If the Yellowknife City Gold Project reaches the production stage, it will entail having a mill on site, approximately 20 km north of Yellowknife.
“It’s early, but you need to have a strategy,” said Panneton, who noted that the mill is better off situated at that location rather than at Con Mine due to the dust and noise associated with its use.
As for the status of the Con Mine property — to which Gold Terra acquired rights for $1.5 million paid to Newmont on Nov. 22, 2021 — Panneton believes that the viability of continued mining in the Con area will be determined when more information is gleaned from continued drilling.
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Some of the more than 30 residents who attended Wednesday’s meeting asked about potential jobs, environmental liability and options for sources of power associated with the project.
“If we had an underground crew at the Con, and an overhead crew, we could have 200 people to 250 new jobs,” Panneton said, adding that 20 people would be needed to work the mill.
Another question posed was whether environmental remediation at Con Mine could make Gold Terra’s project unfeasible, to which Panneton replied, “I’m not worried about the remediation because it’s 98 per cent done.”
In regards to power, Panneton spoke of the need for better options than what exists now.
“With better energy, and a better supply of energy to replace these old generators in the future, you will attract more business,” said Panneton. “Forty cents a kilowatt, it’s not attractive for people to invest.”
Overall in 2021, more than 12,000 metres were drilled in 26 holes south of the Con Mine, expanding the Yellorex Zone.
Gold Terra’s 2022 drilling program is focusing on the area 40,000 metres south of the Con Mine while also expanding the Campbell Shear.
The price of gold has been buoyant, breaking through $2,000 per ounce in March and remaining above $1,900 per ounce more recently.
The company committed to provide a resource update by year’s end.