It's been another banner year for mineral exploration in the territory, though it is down substantially from the record expenditures of 2007.

Yukon government geologist Mike Burke said told delegates attending the 36th annual Yukon Geoscience Forum in Whitehorse this morning that exploration for 2008 will likely come in at around $100 million.

That compares to $140 million spent by the hard rock industry last year, but is still the second-highest level of expenditures on record, according to figures presented by Burke.

Money invested into development of mining properties is also down to about $10 million so far, compared to the last two years when Sherwood Copper spent tens of millions of dollars bringing its Minto Mine into production.

Burke said the $10 million is likely to grow by the end of the year, as the Chinese company which purchased the Wolverine zinc property earlier this year is still on site preparing for production in the third quarter of 2010.

Alexco Resource Corp., Burke pointed out, is still spending money to advance its Bellekeno silver property near Keno City, with an aim to making a decision early next year on whether to go into production.

The company, however, has indicated in recent talks that it's optimistic it will be in operation in 2010, with a target of producing about 33 million ounces of silver annually.

Activity in the Keno Hill silver district Alexco and others is generally on the upswing, Burke said.

He told delegates that continuing exploration work at the Minto Mine - the Yukon's only producing hard rock mine - has increased the mineral resource by 140 per cent.

"The deposit is getting bigger and bigger all the time."

Production at the Minto Mine is expected to top out by year's end at 56.7 million pounds of copper, 22,300 ounces of gold and 326,000 ounces of silver, according to figures presented by the head of mineral services for the Yukon Geological Survey.

Altogether, companies drilled about 240,000 metres of exploration holes this year with the majority searching for gold.

Of the 150 hard rock projects, 73 recorded expenditures in excess of $100,000, Burke pointed out.

He said a number of projects are reporting very promising, significant results, which underscores the remaining untapped potential for mineral discoveries in the Yukon.

This year pushed up the record for the number of mineral claims in good standing to approximately 80,000, Burke said.

While exploration remained brisk this year, it's widely held by representatives of the hard rock industry that 2009 could be an entirely different story, given the financial crisis gripping the world which will likely affect the level of investment into junior exploration companies.

Placer gold geologist William LeBarge told conference delegates this year's gold production by the placer industry was at 49,753 ounces as of Friday, representing a total value of $36.4 million.

It's expected, however, that the total production will hit 60,000 ounces by the end of the year, with a total value of about $44 million, or $6 million more than last year, LeBarge said.

He said there were an estimated 105 active placer operations this year, compared to 107 last year and 106 in 2006.

Historically, LeBarge pointed out, the intensity of placer mining activity generally mirrored the price of gold; the higher the price, the more gold produced.

But this has not been the case for the last few years, he said. He pointed to a graph that shows the production of placer gold in the last five years did not come close to matching the meteoric rise in the price to just shy of a $1,000 US per ounce at one point.

"What I am hearing from people is the high price of fuel is a major factor," he said.

Placer miners in the Indian River and Dominion Creek areas continued to account for the largest production of gold, with 14,650 ounces or 29.5 per cent of the total to date.

LeBarge said the west Yukon area made up of Sixtymile, Fortymile and Mooseburn Range recorded the second-highest rate of production with 11,595 ounces, or 23.3 per cent of the total.

Placer miners in the Klondike, Bonanza and Hunker district have so far turned in 10,814 ounces, or 21.74 per cent of the total.

While the Kluane area does not normally account for much of the territory's gold production, LeBarge did note this year's production of 1,648 ounces from the area was double last year's production, and accounted for 3.3 per cent of the total to date.

LeBarge said placer miners are continuing to have trouble finding workers.

There are just over 400 delegates registered for the forum, which is taking place at the High Country Inn.