In a strategic bid to establish secure and reliable North American supplies of minerals critical to defense and the broader economy, the U.S. Department of Defense and Canadian government are jointly investing up to US$27.3 million (C$35.4 million) to aid Fireweed Metals Corp. in advancing the Mactung tungsten mine project in eastern Yukon toward a final investment decision, as well as the infrastructure needed to unlock the broader critical minerals enriched district along the Yukon-Northwest Territories border.
Rising global demand and geopolitical tensions have prompted the U.S. and Canada to jointly and independently invest in domestic mineral production and processing, reducing reliance on imports and bolstering supply chains vital to economic growth, technology, and defense.
Under an expanding partnership between DOD and the Canadian government, several companies have received significant funding for projects in Canada that could strengthen North America’s critical minerals supply chains.
Electra Battery Materials Corp. secured US$20 million (C$27.3 million) from DOD to complete its Ontario Cobalt Refinery, while Fortune Minerals Ltd. received joint investments of US$6.4 million (C$8.7 million) from both DOD and NRCan to advance its NICO cobalt-gold-bismuth-copper project in Northwest Territories.
These collaborations exemplify a coordinated effort to mitigate reliance on foreign sources, particularly China and Russia, while bolstering economic growth and supply chain resilience across the continent.
“Through our continued work with the United States, driven by the Energy Transformation Task Force and the Joint Action Plan on Critical Minerals collaboration, and other allies, we are developing secure critical minerals value chains that will bolster national and economic security in Canada and the U.S., and build a strong economic future for workers and businesses on both sides of the border,” said Canada Minister of Energy and Natural Resources Jonathan Wilkinson.
Securing North American tungsten
Marking a critical move in potentially securing North American supplies of tungsten, as well as other minerals critical to both countries, the latest U.S.-Canada collaboration will see DOD award up US$15.8 million (C$22.5 million) in Defense Production Act (DPA) Title III funding to advance Fireweed’s Mactung tungsten mine project toward a final investment decision.
Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy, says the tungsten that could be produced from a mine at Mactung “is used in a diverse set of DOD systems and is essential to national security.”
“The United States is overly reliant on overseas sources of tungsten and a secure North American supply for this commodity will mitigate one of our most critical material risks,” she added. “This award also highlights the importance of the Department’s partnership with our Canadian allies.”
In addition to the DPA Title III grant from DOD, the Canadian government is investing C$12.9 million (US$9.9 million) from the Critical Minerals Infrastructure Fund (CMIF) for the first phase of the North Canol Infrastructure Improvement Project, which includes developing preliminary designs for improving over 250 kilometers (155 miles) of roads, as well as upgrades to power transmission lines in eastern Yukon.
“The coordinated investments by the United States and Canadian governments underscore the critical importance and strategic value of Fireweed’s mineral assets at Macmillan Pass,” said Fireweed Metals President and CEO Peter Hemstead. “This joint announcement is a testament to the determination of both governments to unlock this new critical minerals district in Canada.”
Map of Fireweed Metals’ properties in eastern Yukon.
Fireweed Metals’ Macpass zinc-lead-silver and Mactung tungsten projects in eastern Yukon.
Fireweed’s Macpass project hosts an estimated 56 million metric tons of indicated resource averaging 5.49% (6.78 billion pounds) zinc, 1.58% (1.95 billion lb) lead, and 24.2 grams per metric ton (43.5 million ounces) silver; plus 48.49 million metric tons of inferred resource averaging 5.15% zinc (5.5 billion lb), 2.08% lead (2.23 billion lb), and 25.3 g/t silver (39.42 million oz).
Macpass also hosts significant quantities of gallium and germanium, tech metals that have risen in criticality since China’s recent ban on exports to the United States.
The adjacent Mactung mine project boasts an estimated 41.5 million metric tons of indicated resource, encompassing both underground and open-pit settings, with an average grade of 0.73% (665 million lb) tungsten trioxide; plus 12.3 million metric tons of inferred resource, also spanning underground and open-pit areas, averaging 0.59% (158.7 million lb) tungsten trioxide.
Such impressive figures position Mactung as a strong contender for the title of the world’s largest high-grade tungsten deposit, reinforcing its strategic importance for North America’s critical mineral supply chains.
“In the coming months and years, our team will work to ensure our projects and the enabling infrastructure move forward in a way that respects rights-holders, provides benefits to communities in the region, and demonstrates how critical minerals can be developed responsibly,” said Hemstead.
Abundant critical minerals
It is the abundance of these critical minerals at the heart of the Macmillan Pass district – zinc, lead, silver, tungsten, germanium, and gallium – that has most likely drawn the collaborative investments from DOD and the Canadian government.
The focus on the district arises from its potential to mitigate supply chain vulnerabilities and reduce North America’s reliance on imported critical minerals, offering a stable domestic supply for clean energy, defense, and other sectors of the economy.
Essential for corrosion-resistant steel, zinc supports renewable energy infrastructure like wind turbines and advanced batteries, while lead is critical for energy storage and radiation shielding in electric grids and defense systems.
Renowned for its conductivity, silver enhances solar panel efficiency, electric vehicle technologies, and advanced defense electronics, while tungsten’s exceptional density and heat resistance make it vital for aerospace components, high-temperature equipment, and military-grade munitions.
Crucial for semiconductors, gallium enables advanced electronics, solar cells, and LED technologies, while germanium supports high-performance optics, fiber optics, and infrared systems for telecommunications and defense.
Together, these minerals address vulnerabilities in North America’s industrial base and reinforce efforts to transition to clean energy and enhance national security.
“Canada is positioning itself as a global supplier of responsibly sourced critical minerals, which are increasingly in demand for the clean and digital economy as well as for defense applications,” said Wilkinson. “The Fireweed project will develop the necessary energy infrastructure to power multiple critical minerals mines and communities with clean energy.”
With the secured funding, Fireweed’s team aims to advance the Mactung tungsten project toward a final investment decision, a crucial step where the project transitions from planning to construction.
At the same time, the team will spearhead the planning for critical regional infrastructure improvements, including road and power development, which are expected to benefit not only Mactung but also the broader Macmillan Pass district, enhancing access and unlocking the full potential of its rich critical mineral resources.
“These investments by Canada and the United States build on our long history of friendship and collaboration, complement the region’s deep expertise in mining, create good jobs in the Yukon and advance economic growth, now and into the future,” Wilkinson added.
Expanding Yukon access
Mineral projects near the North Canol Road.
Shortly after the announcement, Snowline Gold Corp. – one of the largest explorers in the region – applauded the collaborative investments by DOD and the Canadian government, congratulated Fireweed’s efforts to bring significant attention to such a remote area of the North, and noted the broader benefits these investments could bring to its own Rogue project and other properties in the area.
“We are excited about the positive impact that this infrastructure funding could have on the broader minerals district, including Snowline’s flagship assets, and we commend the Fireweed team for their effort and initiative,” said Snowline Gold CEO Scott Berdahl.
Situated approximately 75 kilometers (46 miles) from the North Canol Road – a historic World War II route built to transport oil from Norman Wells in Northwest Territories to Whitehorse – Snowline’s additional properties are well-positioned to gain from the enhanced access and planned upgrades supported by these investments.
“In recent years, Macmillan Pass and the surrounding Selwyn Basin have demonstrated clear potential towards becoming an important foundation of the Yukon’s economic future and an important contributor of responsibly sourced metals to the North American supply chain,” added the Snowline CEO. “A shared infrastructure corridor could maximize such benefits while minimizing cumulative impacts.”
And these improvements would not only benefit Snowline – Strategic Metals Ltd., Rackla Metals Inc., Onyx Gold Corp., and other companies with projects near the North Canol Road could also gain from the enhancements planned for the region.
“And while Snowline’s focus remains on our gold exploration targets and our Valley deposit, our mineral claims cover geology prospective for critical minerals, particularly for zinc and tungsten,” finished Berdahl. “We see additional potential for critical minerals biproducts from primary gold systems on our claims.”
