1993 A LOOK BACK — New mine production comes on-stream in

Several mines were either placed in production or reopened in 1993 by Canadian companies, both at home and abroad.

Gold was the metal of choice and Ontario and Quebec experienced the most activity. There were, however, some notable exceptions.

Candorado Mines (VSE) began producing gold by heap leaching tailings from the Mascot mine near Hedley, B.C. The project is expected to last two years, based on reserves of 615,000 tons averaging 0.04 oz. gold per ton. Production from Canadas only primary palladium mine, Lac des Isles, began in November. Joint owners North American Palladium (TSE) and The Sheridan Platinum Group report probable reserves of 7.4 million tons averaging 0.18 oz. platinum group metals and 0.01 oz. gold per ton, as well as 0.1% copper and 0.1% nickel.

Meanwhile, two projects reopened in the Kirkland Lake-Larder Lake area of northeastern Ontario and a new mine started production in northwestern Quebec. Development at the Astoria gold mine, near Rouyn-Noranda, Que., began in early 1993 and Toronto-listed partners Deak Resources and Yorbeau Resources report that, since July, 25,000 tons of ore have been milled at the Kerr mill in Virginiatown, Ont. Production is at capacity (12,000 tons per month) and reserves are 1.2 million tons averaging 0.2 oz.

After a 5-month shutdown, the Kerr gold mine was reopened by Deak last July. It produced 15,000 tons of ore per month, 1,200 of which were milled on a daily basis. Current reserves are 1.8 million tons averaging 0.12 oz. In the same vicinity, the Cheminis gold deposit was reopened by Northfield Minerals (ASE). Again, ore was milled at the Kerr mill, and reserves are estimated at 2 million tons averaging 0.16 oz.

Several other projects in central Canada are worth mentioning. Cambior (TSE) and Aurizon Mines (TSE) reopened the Sleeping Giant mine, 50 miles north of Amos, Que., and poured the first gold in early August. A total of 96,597 oz. were mined between 1988 and 1991 and minable reserves now stand at 458,000 tons grading 0.22 oz. By milling 170,000 tons per year, the companies hope to produce 35,000 oz. at US$215 per oz.

At the Copper Rand and Portage mines of MSV Resources (ME), near Chibougamau, Que., production resumed after having been suspended since November, 1992. Total mill capacity from the two producers is 3,000 tons per day and MSV expects to crank out 45,000 oz. gold and 11 million lb. copper annually. In the Timmins, Ont., camp, the Hislop mine of St Andrew Goldfields (TSE) began production from the open-pit area. Production was from lower-grade ore mined during development. A possible reserve of 650,000 tons is estimated, averaging 0.061 oz. gold, and ore is processed at the companys nearby Stock Twp. mill.

A 22,000-ton bulk sample was taken from the reopened Donalda gold project near Rouyn-Noranda. Orco Resources (ME) is mining 550 tons per day on a contract basis, with ore trucked to the Norbec mill owned by Metall Mining (TSE). Having undergone extensive underground exploration by partners Metall and Thunderwood Resources (TSE), the deposit is now reported to contain 725,000 tons averaging 0.26 oz. per ton.

In November, joint owners KWG Resources (ME) and SEG Exploration (ME) reopened the Granada gold project, 3.5 miles southwest of Rouyn-Noranda. Daily production of 1,000 tons will come from two zones which contain a total of 770,000 tons probable and an additional 3 million tons possible. Meanwhile, over in Western Canada, two gold projects created a modest upswing. Annual production from the open-pit BT deposit of the Keystone gold mine in Manitoba is expected to be about 40,000 oz. at US$203 per oz. Owners Granduc Mining (TSE) and Black Hawk Mining (TSE) expect the milling rate to rise to 1,600-2,000 tons per day from the current 1,100 tons. Ore is trucked 8 miles to the Lynn mill in Lynn Lake, Man., and reserves are 1.4 million tons at 0.083 oz. (The companies plan to mine other reserves, totaling 1.8 million tons at 0.11 oz., from the nearby Farley Lake deposit.)

In the fall, Wheaton River Minerals (TSE) bought an interest in the Golden Bear project in northwestern British Columbia. Production is from ore stockpiled by previous operations, and this should last until late 1994. Meanwhile, the company is exploring for new reserves on the property. Current minable reserves from the Main Bear deposit are 180,000 tons grading 0.58-0.67 oz. There are, however, two other deposits on the property, which are expected to increase that estimate.