“There are strange things done in the midnight sun by the men who moil for gold,” penned the poet Robert Service about the Klondike Gold Rush. Between 1897 and 1899, around 100,000 people voyaged to the Yukon with the dream of striking it rich.

But perhaps the strangest thing yet: 127 years later, Yukon mining is still governed by laws drafted for the Gold Rush era. 

In 2025, placer miners — like that gold-panner you’re probably already picturing — harvested $449,000 million in gold revenue from the territory while the Yukon government took home $33,000 in royalties — taxes earned from said mining.

Yes, you read that correctly: $33,000. Another way, perhaps, to say “fool’s gold.”

The Placer Mining Act was created in 1906 when gold was worth $15 an ounce. It requires placer miners, who extract heavy minerals from loose sediment — typically in rivers or streambeds — rather than digging them out of solid rock, to pay the government 37.5 cents for every ounce of gold they get. Today, the price of gold ranges from $6,150 to $6,500 an ounce.

And antiquated royalty laws are just the tip of the iceberg.

The Yukon’s mining legislation is “grossly outdated,” Sebastian Jones says. A fish and wildlife habitat analyst at the Yukon Conservation Society, Jones says the Yukon’s mining legislation should be “top of mind” for Canadians to understand at a time when all eyes are fixed on critical minerals in the North — and when new mines are being approved by the Yukon and federal governments.

Up here, the habitat of threatened Woodland caribou is already under pressure, while First Nations are dealing with the environmental damage of legacy mines and determined to enforce their territorial rights.

More than one Yukoner warned me that writing about mining in the Yukon is like opening a can of worms. Or a whole barrel, for that matter.

How is mining regulated in the Yukon, which mines are being approved and what’s really at stake?

Grab a can opener, folks.

Let’s get into it.

Two acts govern mining activities in the Yukon — both fundamentally fail to address First Nations land treaties

The rules that govern mining in the territory are divided into two documents: the Placer Mining Act, which governs those surface miners, and the Quartz Mining Act, which governs the extraction of minerals from within rocks by blasting, drilling or heap leaching. (We’ll get into heap leaching in a bit.)

A major gap in the Yukon’s outdated mining acts is any mention of the modern-day context of First Nations self-governance and rights. 

Eleven of the 14 First Nations in the Yukon have signed land-claim agreements under the Umbrella Final Agreement, one of the most important political and legal frameworks in the territory, which came into effect in 1993. The agreement recognizes seven regions and recommends land-use planning within those regions — legal agreements with First Nations governments and the Yukon government to define what activities, mining included, will be allowed where and by whom.

Since 1993, only two land-use plans have been completed in the Yukon, with a third currently in review.

What does this have to do with mining and outdated mining legislation? Well, pretty much everything.

What is free-entry staking and why does it matter?

Free-entry staking, yet another colonial holdover from the Gold Rush, allows anyone — literally anyone over the age of 18; you don’t have to be a Yukoner or even a Canadian — to stake and record a mineral claim that gives them the right to explore for minerals in the area.

Mining claims staked during the Klondike Gold Rush, for example, still have legal jurisdiction, even if they aren’t being actively developed or exploited.

These staked claims are creating enormous legal complexity. And it’s a big part of the reason why land-use planning has been delayed.

First Nations governments, including the Na-Cho Nyäk Dun, have called for a cessation of all mining activities on their traditional territory, including the exploration and development of existing and proposed claims, until their land-use plan is completed.

Meanwhile, the Tr’ondëk Hwëch’in First Nation has taken it one step further. They’re suing the Yukon government for the mismanagement of hundreds of idle mineral claims that were staked before their land-claim agreement was signed in 1998. The First Nation argues the idle claims weren’t properly cleared out or cancelled, and have since caused environmental damages on their traditional territory.

Is change on the horizon?

In 2021, the Yukon government, led by the Liberal party, began meeting with First Nations, industry and other stakeholders. The goal? Develop new legislation to replace both the Placer Mining Act and Quartz Mining Act.

In September 2025, CBC North got its hands on a 30-page draft document using the territory’s access to information laws. The plan was to make major changes to the free-entry system. Staking a claim would no longer automatically grant mineral rights. Only after a certain amount of exploration was done could prospectors apply for mineral rights, and if they wanted to go ahead they’d need authorization from the Yukon government and First Nations.

But then came an election. In November 2025, the Liberals lost power after three successive terms. The conservative-leaning Yukon Party took the reins, winning the largest majority in the territory’s history. It’s unclear if any parts of the draft document are still being considered.

Premier Currie Dixon, leader of the Yukon Party, campaigned on bolstering the mining industry and tells me modernizing the Yukon’s outdated laws is a priority for his government. He cites a long list of issues from the way mines are assessed, regulated and monitored, along with processes for ensuring that companies adhere to regulations. “We’re hopeful that we’ll be able to find a way to engage with First Nations through a process that will lead us to a new mineral legislation sometime in 2028,” he says.

What projects are being approved?

For those concerned with Indigenous Rights and environmental issues, the new legislation can’t come soon enough — particularly as the Yukon government approves new mines.

In mid-April, the Yukon and federal governments approved the Kudz Ze Kayah mine, a proposed zinc, copper and lead mine, owned by Vancouver-based BMC Minerals. 

The proposed mine is located 115 kilometres south-east of the community of Ross River on the traditional territories of the Kaska First Nations. The Ross River Dena Council has expressed fierce opposition to the project.

The Kudz Ze Kayah mine, Jones says, would be “right slap in the middle” of a threatened caribou herd’s range. The Finlayson caribou, a woodland caribou herd, was recently declared a “living ecological person” by the Ross River Dena Council, which grants caribou the inherent rights to thrive in their natural range and be legally protected from industrial harms. 

Yukoners are also paying close attention to the Coffee Gold Mine, located 130 kilometres south of Dawson City on the traditional territory of the Tr’ondëk Hwëch’in and Selkirk First Nation and on the claimed traditional territory of White River First Nation. It’s getting closer to obtaining the necessary permits to start building.

Who is going to clean up the mess?

While past and present Yukon governments continue to tout the economic development benefits of mines, the territory is paying millions of dollars to clean up a long list of failed and abandoned mines. 

In 2024, the Yukon government paid nearly $190 million for mine remediation. That didn’t include the cost of the Eagle Mine disaster, one of the biggest mine failures in the territory’s history, which occurred on June 24, 2024.

The Eagle Mine, formerly owned by Victoria Gold, is located near the community of Mayo in north-central Yukon on the territory of the Na-Cho Nyäk Dun First Nation. It’s a gold mining operation that uses a technique called “heap leaching.” 

To understand what that looks like, think of a pour-over coffee. Heap leaching involves crushing rock, piling it on top of an impervious liner pad and then pouring a cyanide-liquid over the heap that selectively targets the gold, dissolving it into a liquid that pools in the pad. It’s relatively common in the Yukon because it’s cheaper than drilling or blasting. Companies extract the ‘liquid gold’ from beneath the pile and pump it out to be processed. The remaining ore stays piled and enclosed by containment berms.

The Eagle Mine disaster happened when one of those protective berms suddenly collapsed, causing a massive landslide of cyanide-contaminated ore. An independent review found that 1.8 million tonnes of contaminated material spilled into nearby Haggart Creek and the surrounding groundwater.

All operations were immediately halted, while Victoria Gold, unable to afford environmental clean-up, entered into a court-ordered receivership and filed for bankruptcy. It took a full month after the initial failure for the government to begin groundwater remediation. 

Kate White, leader of the NDP, the official opposition party in the Yukon, describes the events of the Eagle Mine failure as “the biggest environmental disaster” the territory has seen. “No one knows the full cost … no one will know what has leached into the water,” White says.

The costs to clean up the mess are projected to reach upwards of $377.5 million by this fall, with a $220-million payout from the Yukon government. 

In December 2025, the Na-Cho Nyäk Dun filed a $150-million lawsuit against the Yukon and federal governments, claiming treaty obligations were not upheld and the Eagle Mine was not adequately regulated. In a letter penned to the Auditor General of Canada, the Nah-Cho Nyäk Dun blamed the Yukon government’s “lax approach to permitting, compliance, monitoring and enforcement of mineral activity in the Yukon.” The First Nation is also calling for a public inquiry.

Yukon’s modern-day ‘mineral rush’ despite century-old legislation

It’s hard to keep up with the number of mines currently being advanced in the Yukon. The list is long and projects are at various stages of development.

In Whitehorse, residents don’t have to look beyond the city limits to encounter drilling sites. Gladiator Metals, a B.C.-based company, has been looking for copper, silver and gold in Whitehorse since 2023. In April, the Yukon government approved the company to expand exploration, with some drilling sites located only 800 metres away from residential areas.

The Casino Mine — what would be one of the biggest open-pit copper, silver, and gold mines in the Yukon’s history — is currently under review by the Yukon’s environmental and social assessment board. The mine is owned by Western Copper and Gold Corporation, a Vancouver-based company.

And then there’s the Mactung mine, owned by Fireweed Metals, which is one of the world’s largest-known deposits of high-grade tungsten. 

What is tungsten? It’s an exceptionally hard, heat-resistant metal that’s sought after for industrial and military manufacturing. Tungsten replaces lead in ammunition. It’s used to make rocket engine nozzles and aircraft parts.

The Mactung mine, located at the end of the North Canol road near the Yukon-Northwest Territories border, is drawing major investment from the Canadian and U.S. governments.

In 2024, Canada and the U.S. Department of Defense announced they’d be investing a combined $35 million toward studies and designs for improving the North Canol road and connecting the electrical transmission line to power operations.

Over a century may have passed since the Klondike Gold Rush, but perhaps it’s never really ended in the Yukon — it’s just traded gold pans for open-pit mines. Today’s national agenda is resulting in a new rush for critical minerals yet the Yukon’s mining legislation remains a century behind.

The Narwhal’s reporters are telling environment stories you won’t read about anywhere else. Stay in the loop by signing up for our free weekly dose of independent journalism.