Yellowknife and town hall. The first mayor of Yellowknife was Jock McNiven. In September 1967, Yellowknife officially became the capital of the Northwest Territories. This important new status sparked what has been coined as the third boom in Yellowknife. New sub-divisions were established to house an influx of government workers. In 1978 the Soviet nuclear-powered satellite Kosmos 954 crashed to Earth near Yellowknife. There were no known casualties, although a small quantity of radioactive nuclear fuel was released into the environment, and Operation Morning Light—an attempt to retrieve it—was only partially successful. A new mining rush and fourth building boom for
Yellowknife Yellowknife began with the discovery of diamonds north of the city in 1991. The last of the gold mines in Yellowknife closed in 2004. Today, Yellowknife is primarily a government town and a service centre for the diamond mines. On April 1, 1999, its purview as capital of the NWT was reduced when the territory of Nunavut was split from the NWT. As a result, jurisdiction for that region of Canada was transferred to the new capital city of Iqaluit. Consequently, Yellowknife lost its standing as the Canadian capital city with the smallest population. Yellowknife is on the Canadian Shield,