Western Copper and Gold Corporation is poised to significantly enhance its mining operations in Yukon, Canada, with a substantial financial injection aimed at developing its Casino project. The company has announced a C$40 million ($29 million) upsized bought deal offering, which marks a pivotal step forward for this ambitious venture located in one of Canada’s richest mineral belts.
Located 150 km northwest of Carmacks and 300 km from Whitehorse, within the Whitehorse Mining District, the Casino project covers an expansive area consisting of 1,136 full and partial quartz claims and 55 placer claims. These claims were acquired under the regulations of the Yukon Quartz Mining Act. Adding to its strategic assets, in mid-2019, Western Copper acquired an adjacent property to the west, known as the Canadian Creek property, further expanding its potential resource base.
The Casino property is notable for its substantial copper, gold, and molybdenum resources which are amenable to both milling and leaching processes. According to the most recent estimates, the measured and indicated resources suitable for milling include 2.3 million tonnes with a composite grading of 0.15% copper, 0.18 g/t gold, 0.016% molybdenum, and 1.4 g/t silver. This equates to approximately 7.4 million pounds of contained copper and 12.9 million ounces of gold. Additionally, the inferred resources suitable for milling tally up to 1.3 million tonnes.
For heap leaching, the measured and indicated resources account for 2.5 million tonnes, grading 0.14% copper, 0.18 g/t gold, and 1.5 g/t silver. The inferred resources suitable for leaching include 1.4 million tonnes, similarly grading 0.10% copper, 0.14 g/t gold, and 1.5 g/t silver. These resources highlight the extensive potential of the Casino project to contribute significantly to the global metals market, particularly in a time of increasing demand for copper and gold.
In a strategic move to fund this development, Western Copper and Gold has entered into an agreement with Eight Capital, acting on behalf of a syndicate of underwriters. These underwriters have agreed to purchase approximately 21.1 million common shares of the company at a price of $1.90 per share, with an option for a 15% overallotment. This offering is anticipated to close by April 30, 2024, providing the necessary capital to advance the project towards its next phases of development.
The Casino project’s feasibility study, prepared in 2021, envisages a robust operation with a 120,000 tonnes per day concentrator and a 25,000 tonnes per day heap leach facility. This operation is expected to leverage the extensive resources identified on the property to maximize production efficiency and economic return.
Furthermore, the project is situated within a region of significant cultural importance. It lies within the Traditional Territory of the Selkirk First Nation (SFN), with portions extending into the territories of the Tr’ondëk Hwëch’in and near the territories of the Little Salmon Carmacks First Nation and the White River First Nation. The proximity to these First Nations highlights the importance of engaging with local communities and ensuring that the project operates in harmony with the interests and traditions of the indigenous people.
