La Sarre meeting attracts large turnout of companies

More than 350 people from all sectors of the mining industry were recipients of red carpet treatment offered by residents of this northern Quebec community last week. The event was the second annual mining convention which provides companies and mining people with a forum to update themselves on the vast amount of exploration activity under way near here.

La Sarre, which has been billed as the gateway to the vast Casa Berardi region immediately north of town, has plenty of reasons for wooing the mining industry. The surge in exploration has seen more than $100 million spent in the La Sarre area out of more than $228 million in the entire province of Quebec last year. And a majority of that came via flow-through share financings. A significant part of that money has found its way into the community in the form of exploration camp supply purchases. Other benefits have come from mining crews living and spending earnings in town.

The community is so pleased with the economic benefits flowing from mining that the main players in the Golden Pond mine development project north of here, were feted at a banquet attended by more than 400 people. Hosted by the Economic Council for La Sarre, head table guests included Bruce McDonald, Chairman of Noramco Mining Corp, Inco vice president Walter Curlook and government mines ministers Gerald Merrithew and Raymond Savoie.

The Golden Pond deposits were first discovered by Inco in the early 1980s. Golden Knight Resources, initially controlled by Bruce McDonald and now by Teck Corp., holds a 40% interest in the project. Gold production is scheduled to begin next year at 60,000 oz per year, eventually increasing to 85,000 oz by 1991. The project has been the catalyst for a massive staking rush which has seen an area of 50 miles by 30 miles staked by more than 40 junior and senior mining companies.

La Sarre’s industrial commissioner, Philippe St-Georges announced that three engineering firms are planning to open facilities in town which will offer services to mining companies in the area. These include snc, Canada’s largest engineering firm headquartered in Montreal, Pellemon Inc., also of Montreal and Dimension Environmental. See highlights, P. 2