John Ing says major mining companies with money to invest are looking to replenish their mineral reserves
A mining analyst says money pouring into Yukon mineral 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 of Maison Placements 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 of more than $63 million for exploration.
That follows recent announcements from Goldcorp Inc., Newmont Mining and Agnico Eagle Mines about plans to invest in the territory. Ing says major mining companies have reduced their costs and 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.
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