Ontario supports Shoal Lake mining

Ontario’s mines minister, Gilles Pouliot, says the Ontario government supports mining development on Shoal Lake in northwestern Ontario as long as it does not threaten the available supply of drinking water. “My ministry supports the development of sound mining operations but will not permit activities that jeopardize people’s health,” says Pouliot. “Manitoba and Ontario support the environmental assessment process, which has authority to call public hearings into the matter.”

Over the years, companies have invested millions of dollars in mineral exploration and mining development at Shoal Lake, while at the same time, cottage development on the lake has increased significantly.

Toronto-based Consolidated Professor Mines (TSE) is putting the final touches on its environmental assessment report for the proposed Duport gold mine at Shoal Lake.

The project made history back in 1989 by becoming the first planned mine in Ontario to be designated for review under the Environmental Assessment Act.

“The whole environmental assessment process is taking a lot longer than we had originally anticipated,” said Richard Dunlop, president of Consolidated Professor.

Duport was designated under the E.A. Act largely because of concern over its possible impact on the water supply of Winnipeg, Man. An acqueduct to supply water from Shoal Lake to Winnipeg is about 13 km west of the proposed mine site.

At an estimated capital cost of $53 million, the Duport mine would produce about 50,000 oz. of gold per year from ore grading 0.37 oz. gold per ton. Proven and probable reserves stand at 944,000 tons grading 0.39 oz. gold. If allowed to go ahead, the mine would create more than 100 new jobs in an area of high unemployment.

“When the banks are more friendly, and the environmental assessment review is complete, the project could go ahead as planned,” said Dunlop.

Although the environmental assessment review process is taking longer than had been originally anticipated, Consolidated Professor is moving ahead on another front. The company said it has made progress toward a development agreement with the neighboring Shoal Lake native band.

Terms of a development agreement with the local native bands have been prepared in draft form, said Dunlop.

According to the company, the Shoal Lake First Nations have indicated support for an accord that would target 25% of the mine’s estimated 175 skilled jobs for band members.