Predictions of a record-breaking year for hard-rock mineral exploration in the Yukon have borne out, delegates to the annual Yukon Geoscience Forum in Whitehorse heard this morning.

Delegates also heard how labour shortages and fuel prices may be behind the number of active placer mines in the Yukon. They also heard how the value of the mining industry in Alaska this year has hit a record historical high of $2 billion.

Geologist Mike Burke of the Yukon Geological Survey said in his presentation to the forum that exploration expenditures were approximately $80 million this year, setting a record far in excess of both the $55 million spent last year and the previous $56 million spent in 1996.

To the end of October, there were more than 180,000 metres of exploration holes drilled in the territory, he said.

'You could lay that amount end-to-end from Whitehorse to Carmacks and every foot of it would cost you $100.'

Burke said the number of quartz claims staked was in the neighbourhood of 12,000, the highest number since the staking rush of the mid-1990s fuelled by interest in the Finlayson district.

'It was very active year for claim staking and you can see claims-in-good standing is on the rise,' Burke said, indicating the claims-in-good standing are approaching 60,000, the most since the mid-to-late 1990s.

There were approximately 150 exploration projects in the Yukon this year, of which 70 spent more than $100,000 while 21 spent in excess of $1 million.

There was approximately $30 million spent on exploring for gold, accounting for 35 per cent of all exploration expenditures.

The 29,500 metres of drilling at the Ketza River property by YGC Resources was the largest gold exploration program this year, though Sherwood Copper Corp. and exploration at its Minto mine project was not far behind, Burke said.

He said the largest exploration project overall was the Selwyn Project at Howard's Pass, where Pacifica Resources Ltd. spent $12 million drilling what could turn out to be the world's largest zinc deposit.

Alexco Resources Corp. was also active in the Elsa area, spending in excess of $5 million drilling the properties it recently acquired through the bankruptcy proceedings of the United Keno Hill Ltd.

Figures indicate that Sherwood Copper Corp.'s investment into its Minto property has again put expenditures into mine development in the Yukon back on the charts, with a total of $50 million spent, most of it at the Minto mine.

Placer geologist William LeBarge, also with the Yukon Geological Survey, told delegates information so far indicates the number of active placer mines in the Yukon this year fell to 115 from 128 last year, and 163 in 2004.

While the gold ounces reported so far sit at 55,758, down from 70,322 last year, the rising gold prices have pushed the value of this year's placer activity to $30.4 million, or a hair higher than the $30.3 million recorded last year.

LeBarge said placer operators have complained about the ability to get workers, suggesting the labour shortage, rising fuel prices and the late spring thaw may have contributed to this year's reduction in the number of placer mines.

In the past, the trend showed that amount of production generally rose with the increase in gold prices and fell with the decrease, though that trend has fallen off with the amount of production dropping in the last three years compared to a rising gold prices, LeBarge pointed out.

Figures presented by LeBarge show that the Indian River, Dominion Creek and its tributaries again accounted for the largest amoung of gold production, with 17,648 ounces reported for 31.7 per cent of the total.

The area including the Klondike River, Bonanza and Hunker creeks reported 14,773 ounces mined, or 26.5 per cent of the total.

In contrast, the placer mining district described as Whitehorse south reported the least gold production with 24.8 ounces produced, accounting for less than half of a per cent of the total production.