Steep Rock sees banner year

/NOVEMBER 1950

Steep Rock Iron Mines appears headed for a record-breaking year.

With ore production averaging 9,000 tons per day over the past month, shipments for the year could exceed 1.2 million tons. At the beginning of the month, production from the mine stood at 1.1 million tons, which already surpasses last year’s total. The gross value will certainly exceed $10 million.

The current year is expected to show a net profit of about $2.5 million, and Steep Rock is finding hungry markets for all the ore it can produce. The bulk of the ore will fetch about US$8.10 per ton, a strong price in any market.

With the ore season drawing to a close, expansion plans are being pushed. The program, which would cost $11 million, is aimed at increasing the minimum annual output to 3-4 million million tons, beginning in 1954.

Hollinger develops iron deposits

Hollinger-Hanna, which manages Iron Ore Co. of Canada, has secured $200 million in financing to develop IOC’s iron ore deposits in Quebec and Labrador.

The amount of high-grade ore minable by open-pit methods exceeds 400 million tons. Plans call for the immediate construction of power plants and loading facilities; the largest undertaking will be the construction of a 360-mile railroad from the deposits to the port of Seven Islands on the St. Lawrence River.

Ore shipments would start in 1955 and reach 10 million tons shortly thereafter.

Lamaque launches expansion

Lamaque Gold Mines is expanding its mill by 500 tons in order to stay ahead of rising costs and narrowing profit margins during a time of fixed gold prices.

In addition, Lamaque will sink a shaft on a new part of its property, in the Bourlamaque district of Quebec.

Earnings are holding up well, despite a heavy development program. However, profits are expected to fall to about 33 per share, compared with 38 in 1949.

Lamaque is the province’s largest gold producer.

Red Lake shows sizable earnings

Campbell Red Lake Mines should produce more than $2 million in gold in 1950, the first full year of production.

Output for the first nine months was $1.7 million from 104,114 tons, for an average of $16.07 per ton. At the end of October, the figure was already $1.8 million.

Operating costs for the first nine months of 1950 averaged $8.47 per ton, of which 78 is loan interest.

Reserves amounted to 450,000 tons containing the gold equivalent of $17.07 per ton, at a gold price of $38.50 per oz. The mill continues to operate at a capacity of 400 tons per day.

Development interest in the mine is now centred on a section 400 ft. southwest of the “A” zone. Drifting is under way to the northwest, on the third level.