Thursday 21st June 2018

Resource Clips


Posts tagged ‘Capstone Mining Corp (CS)’

Fabled Klondike gateway sold to cruise ship line for US$290 million

June 7th, 2018

by Greg Klein | June 7, 2018

It’s been a local fixture for decades but a company that panders to pampered argonauts will officially take over the Alaska panhandle port of Skagway. This of course was the landing point for an earlier, much hardier breed nicknamed after Jason and his buddies of Golden Fleece fame. The Klondike argonauts also sailed storm-tossed seas but, while passing through this little town seeking gold, often got fleeced themselves.

Fabled Klondike gateway sold to cruise ship line for US$290 million

From frontier hellhole to tourist mecca,
Skagway trades on its Klondike connection.
(Photo: Skagway Convention and Visitors Bureau)

Such was the case when frontier bad guy Soapy Smith and his gang ran Skagway like a criminal fiefdom. They succeeded for a while, but it was right on the docks in 1898 that Smith and vigilante Frank Reid shot and killed each other. Their mortal remains rest in a graveyard on the edge of town.

Skagway was one of two main ports of arrival for the Klondike, along with Dyea, about five kilometres northwest. The latter town led to the Chilkoot Trail, where desperate hopefuls would make something like 50 trips of up to six hours each climbing to a North West Mounted Police checkpoint to carry supplies sufficient to survive a Yukon winter.

The rival route led to the White Pass, “a hellish place even for those inured to hardship and disappointment by having survived the different hell that was Skagway,” wrote Douglas Fetherling in The Gold Crusades. Railway construction began a few months before Smith’s death, with the line reaching Whitehorse in 1900. There, the White Pass and Yukon Route transferred its goods and passengers onto riverboats towards Dawson City.

In the 1950s the WP&YR became a world innovator by introducing the concept of containerized freight handling, loading the cargo from the world’s first container ship to rail at Skagway and then truck at Whitehorse. The distinctive containers can still be seen around Skagway, serving various purposes such as garden sheds.

The WP&YR’s fortunes rose and fell with those of the mining industry, recounted Marina McCready in Gateway to Gold. Competition arrived in 1978 from a new Whitehorse-to-Skagway highway. A mining slump shut down the service in 1982, but it reopened in 1988 to offer summer sightseeing excursions. They still run 110 kilometres between the little downtown and Carcross, Yukon, passing through a corner of northwestern British Columbia.

Today “dat tourist trap Skagway,” as a character in Ken Kesey’s Sailor Song called it, features numerous restored turn-of-the-century buildings, some of them transplanted from Dyea. Part of the town comprises the Klondike Gold Rush National Historical Park, which in 1998 became an international site managed by both the U.S. and Canada.

From May to September the narrow docks host cruise ships magnificent for their stature but still dwarfed by mountains rising suddenly to the north and south.

On June 6 TWC Enterprises TSX:TWC announced an agreement to sell the WP&YR’s “complete rail, port and merchandise operations” to Carnival Corporation & plc for US$290 million. Debt estimated between $70 million and $80 million will be deducted from the price. TWC may take up to $84 million of the proceeds in Carnival shares. Expected to close by July 31, the transaction would put three docks and four cruise ship berths under a single cruise ship line.

The port also ships concentrate from Yukon’s only hardrock mining operation, the Minto copper-gold-silver mine held by Capstone Mining TSX:CS but subject to a purchase agreement with Pembridge Resources plc. Proponents of some would-be mines in B.C.’s Golden Triangle contemplate shipment through Skagway.

Yukon Liberals break Yukon Party’s 14-year grip on Yukon power

November 8th, 2016

by Greg Klein | November 7, 2016

Press time results:

  • Yukon Liberals 11 seats, 39% of popular vote
  • Yukon Party 6, 33%
  • New Democratic Party 2, 26%

The territory’s riding names evoke mining history but repeated enticements to the sector failed to keep the Yukon Party in power. On November 7 the YP’s 14 years of majority rule came to an end as the Yukon Liberals moved from third to first place, returning to government for the first time since 2002. The red surge claimed YP leader Darrell Pasloski’s Mountainview constituency.

Liberals end Yukon Party’s 14-year grip on power

Yukon’s legislative chamber gets a new seating arrangement
as the Liberals return to power. (Photo: Yukon Legislative Assembly)

The first MLA declared elected was Klondike incumbent and Liberal leader Sandy Silver. NDP leader Liz Hanson also won re-election in Whitehorse Centre.

On mining-related issues, the month-long campaign saw the YP supporting regulatory streamlining, an exploration tax credit, funding for industry groups and support for road and power infrastructure. The party also called for “Yukon-specific curriculum for geology and earth sciences, and an experiential trades program.”

The YP castigated opposition support for the federal carbon tax, “the most significant commitment that the Liberals made with respect to the mining sector.” The incumbents said it would boost residents’ costs overall, hitting the average placer mine with more than $230,000 in additional expenses.

Liberals countered that the territory fell significantly in Fraser Institute rankings of mining jurisdictions. The most recent FI Investment Attractiveness Index places Yukon 12th of 109 jurisdictions worldwide, but last in Canada. The previous year Yukon ranked sixth worldwide. In 2012 to 2013, and 2011 to 2012, the territory scored #1 globally.

Liberals end Yukon Party’s 14-year grip on power

Former teacher and placer miner
Sandy Silver becomes Yukon’s new premier. (Photo: Yukon Liberals)

Additionally, the Liberals said the YP “botched” the S-6 amendments to the Yukon Environmental and Socio-Economic Assessment Act and created regulatory uncertainty while “legal battles with First Nation governments have resulted in huge tracts of land being off limits to mining.”

Silver argued his was the only party with “a plan to work with First Nation governments to rejuvenate the mining sector.”

A former teacher who’s worked on a placer mine, Silver joined the Yukon legislature in 2011 and became Liberal leader in 2014.

The territory hosts development, exploration, prospecting and placer mining activity, not to mention reality TV shows. But commodity prices have reduced major mines to just one operation, Capstone Mining’s (TSX:CS) Minto copper-gold-silver open pit in central Yukon.

Among the more celebrated development projects is Coffee, nabbed by Goldcorp TSX:G last May in its $520-million takeout of Kaminak Gold. Goldcorp plans to revise the project’s feasibility study, conduct further community consultations and begin initial permitting studies. The company foresees initial gold production by the end of 2020.

Victoria Gold TSXV:VIT says its Eagle gold project at the Dublin Gulch property is “expected to be Yukon’s next operating gold mine.” The two-open pit proposal reached feasibility in September and has all major permits in place, the company says.

Western Copper and Gold’s (TSX:WRN) Casino project has been sent for review to the highest level of the Yukon Environmental and Socio-Economic Assessment Board. The company intends to optimize the project design to address concerns including the height of the proposed tailings dam.

Yukon’s home to about 37,500 residents.

Capstone reports Yukon Assays of 1.4 g/t Gold, 2.5% Copper over 13.3m

January 10th, 2011

Capstone Mining Corp CS:CA announced assays from the Wildfire/Copper Keel Deposit at its Minto Mine in Yukon. Results include 1.38 g/t gold and 2.48% copper over 13.3 metres (including 1.32 g/t gold and 3.1% copper over 9 metres), 1.03 g/t gold and 2.45% copper over 11.1 metres (including 1.75 g/t gold and 3.68% copper over 4.2 metres), and 1.41 g/t gold and 2.37% copper over 10.9 metres (including 2.34 g/t gold and 3.72% copper over 5.3 metres).

VP Exploration Brad Mercer commented, “The stacked nature of multiple copper bearing horizons makes Wildfire/Copper Keel an efficient target to explore. It is also an attractive geometry for mining and Capstone will focus exploration in this area in the first half of 2011. A preliminary mineral resource estimate for Wildfire/Copper Keel is expected in the first quarter of 2011, to be followed by an updated resource before year-end, once the deposit is fully drilled off. This more robust estimate is expected to add further impetus to our ongoing feasibility work aimed at increasing mineral reserves and where Capstone is exploring a balance between mine expansion and increased mine life.”

View Company Profile

Contact:
Darren Pylot
President/CEO
604.684.8894

or Jason Howe
Investor Relations
604.684.8894

by Ted Niles