Yellowknife, the capital of the Northwest Territories since 1967, is named after the Yellowknife Dene who moved into the area in the early 1800's. It lies within the traditional hunting area of the Dogrib Tribe who re-occupied the land following the decline of the Yellowknife Chipewyans in the 1820's. As a result of Alexander Mackenzie's visit in 1789, a trading post, known as Fort Fort Providence, was established near the mouth of Yellowknife Bay. This post was still in existence 31 years later when Franklin made his journey to the Coppermine River in 1820, but was abandoned shortly afterwards.
In 1896 gold was discovered at Yellowknife Bay by miners on their way to the Klondike. There was no great staking rush at this time, however, because of the inaccessibility of the country. It was not until about 1930, with the discovery of pitchblende on Great Bear Lake, and the advent of aircraft travel in the north, that further development took place.
In 1934 visible gold was found on the shores of Yellowknife Bay, and by 1936, Yellowknife was a boomtown. A number of companies, including Consolidated Mining and Smelting Company of Canada, began to sink shafts on the "Con", "Negus", and "Giant" claims during 1936 and 1937. Commercial gold production began in the Yellowknife district in December 1938. In 1939 the Yellowknife Administration District was created and the first municipal government of the Mackenzie District was established the following year. By 1940, Yellowknife had a population of 1,000.
Development was halted soon after, however, when in 1942 two of the six mines were closed. The primary reason for the drop in production was two-fold: one, gold was not a strategic resource during the war effort, and concurrently, there were fewer men to work the mines as they were needed for military service during World War II. By the fall of 1944, gold production in the area had ceased entirely.
A new rush began again at the end of the war when Giant Yellowknife Mine opened. By this time, the town was very overcrowded as it grew out around the Bay in Old Town. A new town site was surveyed and construction of New Town began in 1947. By the end of that year, gold mines were once again in full-scale production. A significant factor that aided in the expansion of Yellowknife was the completion of a hydroelectric power station on Snare Lake in 1948. This facility did much to alleviate power shortages, which had previously hindered operations in the area.
Yellowknife became a Municipal District in the summer of 1953 at which time its first mayor was elected. In 1967, it was named as capital of the Northwest Territories, and on January 1, 1970, Yellowknife became the first city in the Northwest Territories.
The City has continued to grow as a mining, transportation, communications and administrative center, while retaining the character and spirit of a small northern town. In 1996, with a population of over 18,000, the City sparkles with the anticipation of diamond mine development north of the city.
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