Twenty Years Ago / October 1983

Gold at crossroads

The gold market has moved to a new crossroads. Its unprecedented 8-month-long ability to hold above US$400 per oz. has been shattered.

Erasing most technical support points, gold fell to its lowest level in a year. The sudden fall of US$24.60 has injected new uncertainties and nervousness in a market where bullish factors still outweigh the bearish elements.

Meanwhile, silver was down by a total of US$1.82 to close at the year’s low of $12.35. Platinum lost a total of $48.90 to close at US$382.40 on the New York Mercantile Exchange.

Lupin ahead of schedule

Echo Bay Mines is ahead of schedule in its $5-million expansion of mill capacity at the Lupin gold mine in the Northwest Territories.

President John Zigarlick says the program, which will increase gold production to 140,000 from 122,000 oz. per year, will be completed by the end of this month, two months prior to the target date.

Ontario sets claims record

An all-time record has been set in Ontario for the number of claims staked in a year.

Through a survey of the nine provincial mining recorders, The Miner has learned that more than 60,000 claims were recorded in the first nine months of the year. With three months yet to go, the tally has topped the previous record of 57,367 claims set during the heat of the uranium rush in 1955.

Cominco unveils smelter

Cominco looks set to remain a major zinc producer, judging by the recent opening of a mammoth zinc-electrolytic and melting plant in Trail, B.C.

According to Chairman Norman Anderson, this $210-million project, which is largest component in a $700-million expansion program that began in 1977, was completed “right on target, cost-wise and production-wise.”

Noranda restarts Horne smelter

The deposit that got Noranda Mines started is going back into production, though this time around it is not for the copper, which it yielded so generously for half a century.

Noranda is reviving the Horne smelter in the town bearing its name to get at the gold ore left behind during original mining operations. The key to the project, known as the Remnor, is the silica content of the ore — about 65% SiO2. The Remnor will become the main source of flux for the company’s big smelter.

Hemlo’s size surprises

The Hemlo orebody just keeps growing, and while the grade seems to be holding steady, it is fast becoming apparent the deposit could be the largest-ever for gold in this country’s history.

The most recent reserve increase comes from Lac Minerals, which reports 15.3 million tons in the possible category grading 0.19 oz. gold per ton, all in the B zone.

This does not include the 3.8 million tons grading 0.18 oz. per ton in the A zone, which made up the original discovery and is listed in the probable category.

These reserves can be added to the 22 million tons grading 0.28 oz. on the Goliath Mines property, the 8.4 million tons grading 0.36 oz. per ton on the International Corona Resources property, and the 2.1 million tons grading 0.32 oz. per ton on the joint-ventured quarter claim. It all adds up to 51.7 million tons with an average grade 0.23 oz. gold per ton, and there is still lots of room to grow.