EXPLORATION ’94 — New plan proposed for Duport project

Like a phoenix rising from ashes, a new gold project in northwestern Ontario may yet be developed despite earlier environmental concerns.

In 1989, the Duport project of Consolidated Professor Mines (TSE) was designated for review under the Environmental Assessment Act, by the previous provincial government; it is the only private-sector project ever to have received such a designation.

After intense lobbying, led by the Winnipeg-based group Shoal Lake Cottagers, the project, which was considered by many to be the region’s brightest prospect for a new mine in the late 1980s, took a step back from the permitting process.

It was then that the late president Richard Cunningham-Dunlop proposed major changes to the project in an attempt to address some of the most controversial environmental concerns. (Dunlop died in 1993, prior to realizing his 20-year dream of building a gold mine on Stevens Island at Shoal Lake.) Conwest Exploration (TSE), already a major shareholder, then bought Dunlop’s interest in the project, increasing its stake to 34%. Intent on carrying out Dunlop’s dream, recently appointed Consolidated Professor President Graham Clow — no stranger to mining in environmentally sensitive areas, with five years as manager of Conwest’s far-northern Nanisivik mine and hands-on experience developing other projects — is convinced Duport has an excellent chance of producing gold.

After almost nine months of intensive study, recalculation, projections and planning, Clow, with assistance from the Conwest team, has emerged with what he calls “the `new project,’ which will operate using state-of-the-art control technology, meeting all regulatory requirements for water quality.” Clow also said, in a recent interview, that the new project will have no effect on the quality of drinking water in Winnipeg, Kenora, Shoal Lake and Lake of the Woods. (Shoal Lake is Winnipeg’s primary source of drinking water.)

Working closely with the company’s environmental consultant, HBT-Agra of Mississauga, Ont., Clow has relocated the site of the proposed mill and tailings area. It is now to be situated outside the Shoal Lake watershed. “The mill location was always an area of concern for Manitoba and we have gone out of our way to ensure that no processing will take place within the boundaries of the (Shoal Lake) watershed,” he said.

The new mine plan also calls for the hauling of ore via truck and ferry to a mainland site, where an access agreement has already been negotiated with the owners of an adjoining property. Ore would also be hauled along a proposed new road so as not to interfere with local traffic on existing roads. Also planned is the use of Inco’s S02-Air process to treat cyanide effluent before it is discharged into the tailings pond.

On the mining side, Clow sees “very good potential” for construction of a 450-ton-per-day mill, producing 45,000-47,000 oz. gold per year. Production would come from two main zones estimated to host a total of 2 million tonnes grading 0.35 oz. gold per ton. The estimate is based on about 20 years of exploration, including 442 intersections and more than 7,500 ft of underground development.

Clow said reserves are relatively consistent over 2,800 ft. of strike and 1,600 ft. and 1,100 ft. of depth in the Main and East zones, respectively. He also confirmed that both zones are “open at depth” and show excellent potential for expansion.

Assuming the use of narrow-vein, cut-and-fill methods on multiple headings, with some shrinkage stopes, Clow is confident dilution can be controlled. “The veins are very easy to follow and there is very little cross-faulting,” he explained. “There is no nugget effect and the wall rocks are generally very competent”.

With a capital cost (using all new equipment) of about $50 million, the mine’s operating cost is anticipated to be US$250-275 per oz. During an anticipated 14 months of construction, employment will average 115 jobs and peak at more than 200. During production, there would be 170 permanent jobs over a potential life of 12 years.

A recent rights offering has added $1.2 million to company coffers. Clow hopes the proceeds will carry the company through a new permitting process, which would involve full stakeholder consultation, preferably based on criteria established by the Ontario Water Resources Act and the Environmental Protection Act, as opposed to the existing environmental assessment process.

This spring, the president will be delivering an environmental review of the project to the provincial government for its consideration.

With the support of both First Nations communities on Shoal Lake, as well as the tri-municipal Kenora region, Clow is confident the project will receive the green light.

“We would hope to be in a position in early 1995 for a production decision,” he said. “And once construction starts, it would be about 18 months to production.”

He added that he and Conwest’s backers “believe the project to be environmentally and economically sound . . . There is a great deal of local support for the project and, with successful permitting, long-awaited economic revitalization of the Kenora mining district can begin.” — The author is a freelance writer from Red Lake.