Peel Mining Claims Worth Little: MiningWatch Canada Report

Nov. 19, 2012, Whitehorse, Yukon – While exploration and mining companies gather in Whitehorse to promote mining at the Geoscience Forum and Tradeshow, the Yukon Conservation Society is saying that over 8,400 Yukon mining claims are practically worthless.

The publicly traded companies with mining claims in the Peel watershed have written off almost all of their expenses for these claims. Of $168,431,781 spent by these companies in the Peel since 2005, all but $5,772,274 has been written off.

YCS commissioned a report from Ramsey Hart, Canada Program Coordinator of MiningWatch Canada, to explain the significance of these write-offs, and to examine the status and potential market value of the Peel claims.

“In their financial statements most exploration companies list their property acquisition and exploration expenses as assets,” said Ramsey Hart. “This is done on the assumption that mineral rights and information gained for the property are of equal value to the cost of obtaining them. Typically companies carry a property as an asset until it becomes clear it has...