Coffee Gold project prepares for 2021, with support of Tr'ondek Hwech'in

Leaders from Yukon'sTr'ondekHwech'inFirst Nation got a tour of Goldcorp's Coffee Gold project near Dawson City this week and so far, they likewhat they've seen.

The exploration camp at Coffee Creek, about 130 kilometres south ofDawson City, is a busy place these days, with crews already working in shifts 24-hours a day.

In a few years, it could be even busier Goldcorpis proposingto open a large-scale gold mine by 2021, employing hundreds of people. The project is still under review by the Yukon Environmental and Socio-economic Assessment Board (YESAB).

TheTr'ondek Hwech'in First Nation is now on board with the project.Last April, it signed a "collaboration agreement" with Goldcorp, which includes a number of benefits for the First Nation such asjobs, contracts, and training for First Nation citizens.

It also outlines environmental protection commitments.

Earlier, the First Nation had complained that Goldcorpwas ignoring its concerns, and was trying to push the project forward too quickly.

Now, Chief Roberta Joseph says she's confident Goldcorp ishearing their concerns.

"One of the different things about thisproject is that it's more environmentally sustainable in terms of not having a tailings pond," said Joseph.

"Having new and innovative projects like this provides for a much better environment in the end."

'Environmentally sustainable'

One selling point has been that Coffee Gold will not create toxic tailings ponds, as it will use something called a heap leach pad where gold isseparated from ore by means of cyanide.

Goldcorp describes this process as a "closed loop"system, which has assuaged the First Nations' concerns about local rivers.

Coffee Gold's reclamation is also scheduled to begin halfway through the mine's lifetime with different sections mined then cleaned up as production continues.

"First and foremost, we want to make sure the project is environmentally sustainable," Joseph said.

"And we need to have a clear understanding of the environmental, cultural and heritage impacts of the project, ensuring that we have a good understanding of it, to ensure we're makinggoodinformed decisions."

Touring the exploration site

On Tuesday, Goldcorp opened its exploration site to local media and the leadership of theTr'ondek Hwech'in.

Reporterswere flown to Dawson City, where Chief Joseph and arepresentativeof the First Nation's renewable resource council got on board. Thegroupthen flew to CoffeeCreekina chartered plane (CBCpaid for a spot on the plane).

The mining company then took people in a helicopter to the site of gold deposits where exploration work is happening.

One on-site demonstration was of a device called a Mud Hen, astack of filters used to deal withconstruction or mining waste. The unitscost about $20,000 eachandcanseparatemuddy or grey water intosomething far more manageable after it's been used in cutting rock.

"I do like the commitment to recycling the water," Joseph said after watching a demonstration of the how the machine works.

Flying from Whitehorse to the Coffee Gold project providesan overhead view of other, smaller placer mining operations near Dawson some of them a source of frictionwith theTr'ondekHwech'inFirst Nation.

The First Nation has frequently asked the Yukon government to reconsider the Placer Mining Act, saying environmental reviews do not sufficiently take into account thecumulative effects of placer mines.

Joseph has said Tr'ondekHwech'incitizens are worriedabout run-off in local waters.She also points out that placer gold royalties in Yukon amount to apittance royalty ratesset in the early1900sbring in less than $100 a year in total, to the First Nation.

Company foresees billions' worth of gold

Chris Cormier, general manager for Coffee Gold, expects the mine to be in production by2021.

The company believes there could be up to two million ounces of recoverable gold which would supply a healthy profit despite spending more than $500 million to acquire the property in 2016.

Such a volume of gold, at current prices, would amount to about $2 billion.

"We'll continue to produce for tento 12 years with this particular facility," Cormier said. "We're looking, within the constructionphase, we'll have 650 direct and indirect jobs.

"And thenwhen we get into operations, about 350 people, between the siteand our offices in Whitehorse and Dawson City."

Cormier says the agreement withTr'ondek Hwech'in is important to the project.

He also says there's value in being such a big partner. Goldcorp one of the world's biggest gold producers hasdeep pockets and experiencegettingprojects to market.

Local jobs have been anotherselling point for theTr'ondek Hwech'in, as about 20 First Nationcitizens are nowemployed at Coffee Creek about one quarter of the current staff.

Albert Dupont is oneTr'ondek Hwech'incitizen working as camp support. He said he works 12 hours a day, two weeks at a time before returning home to Dawson City.He's proud that his First Nation is a partner.

"I'm happy they're involved because it's ourland, or so I'm told," he saidwith a short laugh.

"For me, it's part of life. I work out here to make money. In the longrun, it'll help thewhole band out and all the people out. That's a good thing," he said.