Higher gold prices have prompted the Yukon government to double its estimate of what companies will spend on mineral exploration this year.

In January, the Yukon government estimated it would be in the range of $20 million to $30 million. It has now revised that to $60 million.

Underworld Resources has been conducting Yukon's biggest exploration program at its White Gold property, 90 kilometres south of Dawson City.

Gold prices are at 18-month highs (CBC)

"They're doing 25,000 metres of drilling, that's 25 kilometres of drill core, and their budget is up somewhere over $10 million now," Mike Burke of the Yukon Geological Survey's Mineral Services Unit said in an interview with CBC News Wednesday. Underworld has been barging heavy equipment and other supplies up the Yukon River from Dawson City, building roads, and flying in other supplies.

Gold prices have climbed to more than $1,000 US an ounce as the value of the U.S. dollar has fallen. Demand is also up as investors look for an asset that will keep its value if massive government stimulus worldwide leads to high inflation.

Yukon enjoyed a boom in exploration in 2006, but that fell off as sources of investment capital dried up in the recession.

Gold for September delivery closed at $1,013.60 US on the New York Mercantile Exchange on Thursday. Earlier in the day, it touched $1,019.50.