Gold Terra hikes ounces at historic mine in Yellowknife

An update for Gold Terra Resource’s (TSXV: YGT; US-OTC: YGTFF) Con brownfield project in the Northwest Territories almost doubles global contained gold over the initial estimate from 2022, though grades fell significantly.

The update outlines 729,000 indicated tonnes grading 4.39 grams gold per tonne for 103,000 oz. contained gold, and 7.5 million inferred tonnes at 3.69 grams gold for 895,000 oz. contained metal, the Newmont (NYSE: NEM; TSX: NGT) backed company reported Friday.

Total tonnage in both categories more than tripled but grades declined by at least 40%. A preliminary economic assessment is expected by the end of the year for Con, which is 2 km south of downtown Yellowknife. Gold Terra operates the project as an option while Newmont holds full ownership.

“This updated first phase of the 2026 [resource] demonstrates the potential that the Con Mine represents for Gold Terra to acquire 100% of the property,” CEO Gerald Panneton said in a release. “[The company’s] effort and drilling programs are advancing the project towards enough ounces to sustain a potential restart of the Con Mine.”

NWT’s mining crossroads

The resource update comes at a precarious time for mining in the territory as its two remaining diamond mines approach the end of their lives and no other operations of comparable size are soon expected to come online. However, a restart of Con, which operated from 1938 until 2003 and was foundational for Yellowknife, could represent a revival of the territory’s gold heritage.

Eric Sprott holds a 10% interest in Gold Terra and the Mackenzie Fund holds 7%.

Con’s 103N anchor

The resource update focused on Con’s Yellorex, Zone 103N and Crestaurum targets, with the update showing 103N hosts almost 60% of the project’s total contained gold. Those three deposits comprise the northern extension of Con within the Campbell Shear, a gold-rich structure that also hosted the historical Giant mine on the north edge of Yellowknife. 

103N is a distinct zone at the project, was developed in the later years of Con’s operations and still has underground workings and drilling data, Gold Terra said. An ongoing 11,000-metre drill program that started in the winter is expected to target 103N in June.

Gold Terra plans to release a second resource update in the fall that will also include results from drilling the Northbelt-Walsh Lake deposits Pickle, Sam Otto and Barney, 20 km north of Yellowknife.

Option deal

Gold Terra’s option agreement with Newmont is to last until 2027, when the explorer could acquire Newmont subsidiary Miramar Northern Mining.

Gold Terra has to spend at least C$8 million ($5.8 million) on exploration, complete a prefeasibility study showing 1.5 million oz. in all resource categories, secure approvals and make a final $8 million cash payment.

Con produced 5.1 million oz. grading 16 to 20 grams gold from 1938 until 2003.

Company shares fell 2% to C20¢ apiece on Friday morning in Toronto, for a market capitalization of C$91.4 million. The stock has traded in a 12-month range of C5¢ to C29¢.