FACTS & FIGURES — Canadian gold reserves are on the rise

Levels of Canadian reserves of gold were up significantly in December 1994, compared with revised figures for 1993. Given the production decisions announced during 1995 and those expected in 1996, the high level of deposit appraisal activity and the large number of projects that have advanced to the feasibility stage, reserve levels for gold appear poised to hold or increase in the near future.

There were more than 1,500 tons of gold contained in Canadian mine reserves in December 1994, an increase of more than 10% compared with revised totals for December 1993. During 1994, additions from new mines and development, combined with exploration at established mines, replaced both the gold contained in the ore mined and the gold written off from reserves over the year.

The gold reserves of seven projects, for which production decisions were announced in 1994, were added to Canadian totals at the end of 1995. The inclusion of reserves from Prime Resources’ Eskay Creek project, north of Stewart, B.C., boosted national reserve totals by more than 70 tons.

Inmet Mining’s production commitment at its Troilus (Lac Frotet) property, north of Chibougamau, Que., resulted in the addition of 60 tons to Canadian totals, while the production decision at Hemlo Gold Mines’ Holloway project, north of Kirkland Lake, Ont., added a further 39 tons.

Other projects under way at established gold mines will also contribute to Canadian gold reserves.

Barrick Gold and Cambior are spending $24 million to deepen, by the end of 1996, their Doyon mine shaft in Quebec; this project will provide access to a zone west of the Doyon Fault, where 5 million tonnes of gold-bearing resources are indicated. Placer Dome is spending $35 million to deepen the shaft at its Campbell mine in Balmertown, Ont. This project will provide access, by 1997, to more than 560,000 tons of gold-bearing resources in the mine.

In addition, Goldcorp announced, earlier this year, plans to triple gold production to 150,000 oz. per year at its Red Lake mine, also in Balmertown.

Meanwhile, Echo Bay Mines expects to develop additional reserves in the Centre and West zones at its Lupin mine in the Northwest Territories — North America’s northernmost gold mine.

— From “1995 Minerals Yearbook”, published by Natural Resources Canada. The author is with the Minerals and Metals sector of that ministry.