Equipment staging has begun to build a 214 km, $77-million all-season access road to the proposed Coffee Gold mine.

The mine, expected to be the first cyanide heap leach project to open after the Eagle mine failure, is situated around 330 km northwest of Whitehorse. 

The contract to build the road has been awarded to Whitehorse-based Cobalt Construction. 

Coffee Gold, owned by Fuerte Metals, has been progressing through the permitting process since 2017. In 2022, the project was given the green light by the federal and Yukon governments following a review from the territory’s environmental assessment board.

Fuerte Metals has not received a quartz permit or water licence for the mine, or permits for the road. But the company’s CEO, Tim Warman, told CBC mine permitting is in the final stages and he’s expecting to receive the road permits by spring – and see shovels in the ground on the mine by 2027. 

“We’d like to be in the position early next year to start construction of the Yukon’s next gold mine,” said Warman. “But if we’re going to start building next year, we also need someplace for people to stay. So we’re going to be, over the summer, bringing in a construction camp.” 

According to a screening report issued by the Yukon’s assessment board, that camp could house up to 400 workers. During the peak of construction, the mine is expected to provide jobs for over 650 people.

First Nations whose traditional territories fall within the parameters of the project include Tr’ondëk Hwëch’in, Selkirk First Nation, White River First Nation and the First Nation of Na-Cho Nyäk Dun.

Many of the concerns expressed by First Nations during the assessment focus on the new road. All four First Nations stated the road will open up access to remote areas, accelerate development and possibly lead to cumulative impacts on the region. 

As part of the 2022 decision document on the mine, officials called for a broader study on the impacts of the road. 

While CBC was unable to secure interviews with affected First Nations by deadline, a press release from Fuerte Metals said Cobalt Construction is “actively working” with Tr’ondëk Hwëch’in to explore collaboration. 

“We look forward to exploring a partnership for the construction of the access road to the Coffee Project,” said Tr’ondëk Hwëch’in Hähkè Darren Taylor in a statement. “First Nations and industry working together creates meaningful economic opportunities for our citizens.”

Fuerte Metals has said it will honour agreements Newmont, the previous project owner, made with the Trʼondëk Hwëchʼin and White River First Nation in 2018 and 2021.

How will this mine change the territory? 

According to a Yukon Environmental and Socio-economic Assessment Board (YESAB) screening report, the mine would see up to nine million tonnes of ore stacked on a heap leach pad each year, produce a total of 330 million tonnes of waste rock, and be in operation for 10 years. Closure and reclamation is expected to take 11 years, with additional monitoring continuing “as required.”

The site is estimated to contain more than three million ounces of gold, which at today’s prices would be valued in the billions. 

The project includes the installation of a power plant and generators, and will use approximately 19 million kWh of energy and as much as four million litres of water a day.

Warman said the project has the potential to fill the economic gap left by the Eagle mine failure. 

“It has much more positive economics than the Eagle mine,” he said. “The grade of gold that’s in the rocks is significantly higher, more than double the grade. The ease at which gold is recovered, and the amount of gold that’s recovered is much higher.” 

Warman has said he’s familiar with the report into what went wrong with Eagle and agrees with its recommendations.

“We want to focus on safety, on the environment, and then you have a well-run operation,” he previously told CBC.