World's Biggest Gold Producer Establishes Presence In Yukon

Neils Christensen  

Monday April 10, 2017 15:23

(Kitco News) - It’s official! The new Yukon gold rush is now in full force as Barrick Gold Corporation (NYSE: ABX, TSX: ABX), the world’s biggest gold miner, enters the region, joining three other major gold producer

Monday, ATAC Resources (TSX.V: ATC) announced that Barrick will potentially invest up to $63.3 million for the development of ATAC’s Orion Project, which is part of its larger Rackla Gold Property. The deal includes an initial private placement of $8.3 million and a two staged exploration earn-in agreement to acquire 70% of project, valued at $55 million.

“We view the Earn-in Agreement and related private placement with the world’s largest gold producer as a significant endorsement of the Rackla Gold Property, the ATAC exploration team and the Yukon as a region with world-class gold potential,” said Graham Downs, president and CEO of ATAC.

ATAC’s Rackla Gold property has Carlin-type gold deposits that could rival the major deposits in Nevada’s famous gold fields.

“Barrick is excited to partner with ATAC, to leverage off both partners’ expertise in the exploration of Canada’s only Carlin-type system. ATAC’s generative exploration skills and Barrick’s knowledge and experience in Carlin-style systems will be a great combination to unlock the full potential of this district,” said Rob Krcmarov, Barrick’s executive vice president of exploration and growth.

Barrick is the second major gold producer in as many months to announce an investment in the Yukon. Last month Newmont Mining (NYSE: NEM) said it would spend $39.5 million to explore and develop Goldstrike’s Plateau property. The news also comes nearly one year after Goldcorp (NYSE: GG, TSX: G) announced that it would purchase Kaminak Gold for more than $500 million. The fourth major producer to stake a claim in the Canadian territory was Agnico Eagle (NSYE: AEM, TSX AEM), stating in December that it would invested more than $14.5 million for a 20% stake in White Gold Corp., which has one of the largest exploration land packages in the Yukon. 

The other projects within ATAC’s Rackla property include the Osiris Projects and the Rau Project.

Last week, a Kitco News feature looked at how major gold companies establishing beach heads in the Yukon is helping spur confidence among junior explorers in the territory.