1992 — A LOOK BACK — New mining projects create job

Six new mines were opened and six former producers were reactivated across Canada in 1992. The mining projects created or saved 1,131 jobs, according to the federal department of Energy, Mines and Resources.

In the north, Curragh’s (TSE) zinc-lead-silver Grum mine on the Vangorda Plateau at Faro, Yukon, was scheduled to be in production by the end of December. Operating at a rate of 16,390 tons per day, the mine is estimated to have an 8-year lifespan. The Grum ore is feeding the otherwise hungry Faro concentrator as the Faro underground and open pit are both depleted. The 1,100-ton-per-day Equity Silver underground mine in Houston, B.C., came on stream in November. Earlier in the year, Equity Silver (TSE), 58.8% owned by Placer Dome (TSE), reported it had defined a new mineralized zone of 530,000 tons grading 5.54 oz. silver and 0.13 oz. gold per ton, and 0.7% copper, below the open pit, which closed in October because of ore depletion. In Estevan, Sask., Luscar’s Shand coal mine opened in September with a daily capacity of 7,150 tons.

Eastern Canada boasted three new mines, in the Sudbury, Kirkland Lake and Timmins areas.

Falconbridge’s Thayer Lindsley project north of Sudbury, Ont., entered production in August. Published reserves of all zones total seven million tons grading 1.58% nickel, 1.51% copper and unspecified precious metals. Ore is being milled at the company’s nearby Strathcona mill.

In December, Northfield Minerals (ASE) reopened the Cheminis gold mine near Virginiatown, Ont.

Also in December, private company Rundle Gold Mines reactivated its namesake producer, which was discovered in the 1940s, at Timmins, Ont. Rundle is estimated to contain 551,000 tons averaging 0.2 oz. gold. (On the verge of production is Monk Gold and Resources’ gold project at Wawa, Ont.) In Quebec, Noranda (TSE) started extracting ore from the zinc-copper Norita East mine near Matagami Lake in August, and Astoria near Rouyn-Noranda poured its first gold in December.

Deak Resources (TSE) acquired Astoria and its adjoining property this year from Yorbeau Resources (TSE), which retains a 40% net profit interest (NPI) in the property until it has received $3 million. Then, Yorbeau will collect a 2% net smelter return (NSR) royalty for five years; it can convert either its NPI or NSR into a 40% working interest in the property between Jan. 21, 1994, and Dec. 31, 2000.

With 1.18 million tons of probable and possible diluted reserves grading 0.2 oz. gold, Astoria operates at a rate of 495 tons per day.

September marked the opening of AquaGold Resources’ (ASE) Glen Morrison limestone mine at Sydney, N.S. In October, NovaGold Resources (TSE) started mining copper from Murray Brook, a former gold producer at Bathurst, N.B. Reserves are estimated to be 600,000 tons grading 2.5% copper. Also in the Maritimes, Princeton Mining (TSE) resumed wet processing the Baie Verte asbestos tailings in April near Baie Verte, Nfld., and Royal Oak Mines (TSE) reactivated the Hope Brook gold mine on June 28 in the same province. Royal Oak purchased Hope Brook in April from BP Canada. The mine is expected to average 120,000 oz. annually during the next seven years.