History of the Northwest Territories 1935, nearly 1000 men grouped into 188 surveying parties covered a wide range of Canada looking for precious minerals. The most valuable discovery was made in the Yellowknife district where nearly 3000 square miles of good gold prospecting territory was located. This brought about the town of Yellowknife. Thirty-two years later, when the Government of the Northwest Territories came North from Ottawa, Yellowknife became the new capital. During World War II, between 1942 and 1946, forty thousand American military and civilian personnel came to the Canadian Northwest; invited by the Canadian government. Plans called for the Alaska Highway to connect
Yellowknife also resulted in new discoveries at the Con Mine, greatly extending the life of the mine. The Yellowknife townsite expanded from the Old Town waterfront, and the new townsite was established during 1945–1946. The Discovery Mine, with its own townsite, operated to the north-northeast of Yellowknife from 1950 to 1969. Between 1939 and 1953, Yellowknife was controlled by the Northern Affairs department (now Indigenous and Northern Affairs Canada) of the Government of Canada. A small council, partially elected and partially appointed, made decisions. By 1953, Yellowknife had grown so much that it was made a municipality, with its own council