Bumper crop of mining projects for northwestern Ontario

Despite these facts, the economic contributions and job-creation abilities of the mineral exploration industry are often underestimated.

As an indication of the size of the sector, almost 400 people attended the Mines and Minerals Symposium of Thunder Bay on Feb 7-8. Hosted by the Ministry of Northern Development and Mines, this annual event reviews exploration and development in 1988 and presents the outlook for 1989.

Outsiders are often surprised by the size of this gathering, but it is only the tip of the mineral exploration iceberg in the Thunder Bay area. Few people realize, for example, that 27 mineral exploration companies have offices in Thunder Bay. The largest of these, Noranda Exploration (TSE) has a full-time staff of 40 in the city. Another 30 employees work from a satellite office at the Hemlo mine site near Marathon.

During peak periods, Noranda’s Thunder Bay office hires an additional 90 students, as well as contractors who carry our line cutting, geotechnical surveys, diamond drilling and other functions.

In total, the Noranda workforce managed out of Thunder Bay ranges from 150 in the winter to 300 in the summer. The company’s Thunder Bay office spent $12 million on exploration in 1988, making a significant contribution to the northwestern Ontario economy.

Spin-off benefits are also considerable. The 27 mining companies with offices in Thunder Bay depend, in turn, on the expertise of 29 other firms which provide services such as supplies, chemical analyses and diamond drilling.

All told, employment by Thunder Bay’s mineral exploration companies and their allied services is nearly 500 year round, rising to more than 1,000 during peak exploration periods.

This economic activity contributed to the economy of the entire northwest, where 500 exploration projects were carried out in 1988. And, as mining people point out, the higher the level of activity, the greater the chances of significant discoveries and producing mines.

In 1988, two mines came into production in the region.

Minnova Inc. (TSE) opened its Winston Lake zinc-copper mine 27 km northwest of Schreiber on July 27. One-hundred and fifty new jobs were created — a well-received economic stimulus for nearby towns.

And, on Oct 1, Bond Gold Canada brought its Golden Patricia gold mine into production 80 km west of Pickle Lake, Sioux Lookout and Dryden, as well as nearby Indian reserves.

In addition, Ateba Mines (TSE) officially opened the Pan-Empire mill and ore sorter in Beardmore on May 5. Ateba processes its own gold-bearing ore at the mill and provides custom milling services for other firms.

The pace of mining development is expected to continue in 1989. Two mines in the northwest are committed to come into production by spring.

West of Thunder Bay, Inco (TSE) will resume production at it Shebandowan nickel-copper mine with a workforce of about 200. The mine had been inactive since 1985. Southeast of Pickle Lake, a workforce of about 120 will bring Placer Dome’s (TSE) Dona Lake gold mine into production.

We may see more production commitments in the near future.

In Red Lake, McFinley Red Lake Gold Mines (TSE) has a fully- operational mill processing bulk samples from its underground exploration. The company will soon make a production decision based on the result.

Also in Red Lake, Inco Gold is dewatering the Cochenour-Willans gold mine to carry out an exploration program which could lead to the reopening of this former producer.

Northwest of Pickle Lake, a consortium of companies led by Placer Dome has delineated six million tons or ore grading 0.2 ounces of gold per ton at the Musselwhite project. It is currently exploring this property through underground workings and will carry out a feasibility study. If results are positive, production could start in 1991 with a workforce of more than 250.

In Kenora, two possible mine site are being explored through underground workings. Both have outlines substantial gold reserves.

Nuinsco Resources (TSE) is exploring a property southeast of Kenora. It reports 788,000 tons containing 0.194 ounces of gold per ton. In 1989, Nuinsco will explore deeper levels in order to increase reserves and possibly bring this operation closer to a production decision.

West of Kenora on Shoal Lake, Consolidated Professor Mines (TSE) has outlined 2.08 million tons grading 0.35 oz of gold per ton. A production decision hangs on the company’s ability to raise capital for the required infrastructure.

Also at Shoal Lake, Bond Gold Canada has outlines a deposit with reserves of 863,500 tons grading 0.25 oz of gold per ton by surface drilling.

In Geraldton, Ateba Mines and Roxmark Mining (TSE) have delineated 944,000 tons grading 0.18 oz of gold at the Magnet Mine. Exploration, development and bulk sampling will be carried out this year.

North of Thunder Bay, Madeleine Mines (TSE) has outlined a significant deposit of platinum group metals. Infrastructure which would enable the mining of this deposit is currently being put in place, but no formal production decision has been made.

There are 28 mineral exploration properties in northwestern Ontario deemed to be at an advanced stage of exploration. This means a mining company is carrying out detailed diamond drilling and/or underground exploration to see if a mine could be run at a profit.

Production decisions on many of these are several years away, but many prospects can be looked upon with optimism. Some will eventually become mines that will bring long-term economic benefits to the northwestern region.004 Maurice Lavigne Jr. is the resident geologist for the Thunder Bay district with the Ministry of Northern Development and Mines.

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