en.Wedoany.com Reported - Gold Terra Resource Corp. has updated the resource estimate for its Con brownfield project in Canada's Northwest Territories, with the contained gold nearly doubling compared to the initial 2022 estimate, though the grade has declined significantly. The company reported last Friday that the updated indicated resource stands at 729,000 tonnes grading 4.39 grams of gold per tonne, containing 103,000 ounces; the inferred resource is 7.5 million tonnes grading 3.69 grams of gold per tonne, containing 895,000 ounces. Total tonnage in both categories more than tripled, but grades dropped by at least 40%.
The Con project is located 2 kilometers south of downtown Yellowknife. Gold Terra operates it under an option agreement, with Newmont (NYSE: NEM; TSX: NGT) holding full ownership. The company plans to complete a preliminary economic assessment for the project by the end of this year. CEO Gerald Panneton stated that this first phase of the 2026 resource update demonstrates the potential of the Con mine, giving Gold Terra the opportunity to acquire a 100% interest in the asset. The company's drilling efforts are advancing the project to accumulate sufficient ounces to support a potential restart of the Con mine.
This resource update comes at a time of uncertainty for the region's mining sector. The Northwest Territories' only two remaining diamond mines are nearing the end of their lives, with no other projects of comparable scale coming online in the short term. The Con mine, which operated from 1938 to 2003, was once a cornerstone of Yellowknife, and its restart could revive the region's gold mining heritage.
Eric Sprott holds a 10% interest in Gold Terra, while the Mackenzie Fund holds 7%. This update focuses on three target areas at the Con mine: Yellorex, the 103N Zone, and Crestaurum, with the 103N Zone accounting for nearly 60% of the project's total contained gold. These three deposits lie within the Campbell Shear Zone, representing the northern extension of the Con mine. This shear zone is also the gold-bearing structure of the historic Giant mine on the northern edge of Yellowknife. Gold Terra stated that the 103N Zone is a discrete area within the project, developed during the later stages of the Con mine's operation, with existing underground workings and drilling data. An 11,000-meter winter drilling program is currently underway, with drilling expected to target the 103N Zone in June.
Gold Terra plans to release a second resource update this fall, which will incorporate drilling results from the Northbelt-Walsh Lake deposits (Pickle, Sam Otto, and Barney), located 20 kilometers north of Yellowknife. The company's option agreement with Newmont extends until 2027, at which point Gold Terra can acquire Newmont's subsidiary, Miramar Northern Mining. Under the agreement, Gold Terra must spend at least C$8 million (approximately US$5.8 million) on exploration, complete a pre-feasibility study demonstrating a total of 1.5 million ounces of gold across all resource categories, obtain relevant approvals, and make a final cash payment of C$8 million.
The Con mine produced 5.1 million ounces of gold from 1938 to 2003, at grades ranging from 16 to 20 grams per tonne. On Friday morning, the company's shares fell 2% in Toronto to C$0.20 per share, giving it a market capitalization of approximately C$91.4 million. The share price has ranged from C$0.05 to C$0.29 over the past 12 months.
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