Mr. Leef, thank you. It's almost as if you've planted the witness.
I've done a geothermal study for the Takhini Hot Springs for David Morrison of the Yukon Energy Corporation. I've also been retained by the Na-Cho Nyak Dun to examine the geothermal potential of Mayo.
I can unequivocally state that using current technologies, the supply side for electrical power in those regions using geothermal ranges between 11¢ and 13¢ per kilowatt hour, depending upon the development scenario. That is using what we would call fairly standard development packages from a technological perspective.
Our belief is that with some innovative exploration techniques you can reduce the number of basically dry wells, which is the only removable expense, and to some degree with some new materials you can have more efficient heat exchange. Our expectation of the upside would be something on the 3¢ to 4¢ range, say 10 years from today. So I would expect the geothermal resources in your region would be able to produce in the 7¢ to 9¢ range all in.
Now the issue we have with regard to the market in Whitehorse—and this is an issue that Mr. Morrison is struggling with—is both on the demand side, which of those mining projects are going to show up, and where, because geothermal is a very resource-based activity, so to some degree we're beholden to paying attention to where it is. Also there are a few very low-cost hydro options that are in the 7¢ to 8¢ range that he might be pursuing, but with differential environmental impacts.
So trying to address the strategic thrust of your question—whether this is motivated by a move to green—I don't think so. I think geothermal needs to be cost-competitive with all forms of supply, and if it can't be all in, it shouldn't be entertained. However, there are many places in the Yukon where it is the most cost-competitive form of supply, and we're currently in discussions with Yukon Energy Corporation.
In terms of the sidebar with regard to private investment in the Yukon and the Yukon power sector, that's somewhat problematic because it's run by a crown corporation. So until that mandate is relieved or adjusted or negotiated away by the Government of the Yukon, we are not permitted to invest in energy facilities in the Yukon.
Does that answer your question?