EXPLORATION 1997 — Lac Volant a high flyer for Quebec industry

The claim-staking rush in the Lac Volant region was the highlight of Quebec’s mineral industry in 1996. The industry experienced moderate growth during the year, according to figures released by the province’s ministry of natural resources.

Half of the new claims registered in Quebec during 1996 were staked in the Lac Volant region, northeast of Sept-Iles. Provincially owned Soquem led the way by exclusively staking 130 claims around the nickel-copper-cobalt showing discovered by provincial geologists in August. The showing consisted of three zones of massive and disseminated semi-massive sulphides, with grab samples grading up to 2% nickel, 2.3% copper and 0.1% cobalt.

Since the discovery, the province’s geological survey has been performing ground work in the area and is in the midst of publishing four 1:50,000 geological maps. Soquem plans to drill the showing in June 1997, with an initial budget of $50,000.

In addition to exploration work being carried out in Quebec’s traditional mining camps, there has been ongoing activity in other portions of the Abitibi belt, namely Brouillon-Fenelon, Normetal-Ligneris and Lebel-sur-Quevillon. There has also been activity in the near-north greenstone belts of the Frotet-Evans, Eastmain and Grand River regions.

During the first 11 months of 1996, almost 20,000 new claims were registered in the province, up from 11,000 registered in the same period in 1995. About 25,000 claims were renewed during the first 11 months of 1996, up slightly from the same period in 1995.

Exploration expenses in Quebec reached $135.3 million in 1996 — 3% higher than the $131.6 million spent in the previous year.

Several government programs designed to promote mineral exploration in the province are continuing into 1997. These include the following initiatives: * The 1992-98 federal-provincial mineral development agreement has allocated about $1.8 million for fiscal year 1996-97 for mineral exploration and prospecting in Quebec. The agreement has $13-million budgeted for 1996-97.

* The provincial government has an assistance program for exploration in the James Bay and North Shore regions. So far in 1996-97, $5 million has been divided among 232 projects.

* Deductions of up to 175% of surface exploration expenses can be claimed, in addition to some capital-gains exemptions.

* The Quebec government is seeking consultation concerning the revision of the province’s mining code. The government wants to simplify the rules regarding the acquisition of mining titles.

The total investment in Quebec’s mining industry during 1996 is estimated at $1.1 billion, about the same as the previous year. Expenditures are divided into exploration (12.7% of the total), development (23%), capital costs (34.6%) and repairs (29.7%).

The total value of Quebec’s mineral shipments in 1996 reached about $3.3 billion, about the same as in 1995. Some salient figures:

* The value of gold shipments increased 5% to $714 million in 1996, attributable to a 1.6-tonne rise in production to 41.8 tonnes.

* The value of silver shipments slipped $2 million to $36 million in 1996 due to a 10-tonne production drop to 156 tonnes.

* Lower copper prices caused the value of the province’s 1996 copper output to drop 14% to $396 million despite a 12% production increase to 128,000 tonnes.

* The value of Quebec’s 1996 zinc shipments increased 15% to $279 million, with production rising by 28,000 tonnes to 200,000 tonnes in 1996.

* Quebec’s asbestos industry lost a 28,000-tonne-per-year market as a result of France’s decision to ban asbestos, which came into effect Jan. 1, 1997.

Nonetheless, chrysotile producers shipped 519,000 tonnes in 1996, compared with 509,000 tonnes in 1995. The increase is attributed to strong demand from Asian markets.

* Employment in the production and drilling sectors of Quebec’s mineral industry declined 558 man-years to 18,072 man-years in 1996.