Conquering the new frontiers (1965-81)

Feb. 24, 1966

Initial drilling has enabled Brenda Mines to increase substantially the tonnage estimates for its large, low-grade, copper-molybdenum property, about 14 miles west of Peachland in the Okanagan Valley, British Columbia.

Based on the first five drill holes from which complete assays have been returned, a total of 5,703,000 tons averaging 0.25% copper 0.08% molybdenum has been indicated, according to a report by the company’s consultants, Chapman, Wood and Griswold. Average vertical depth of the five holes is 383 ft. Each hole represents over one million tons.

March 23, 1967

Following an intensive engineering and feasibility study, decision has been reached to bring to production the highly regarded lead-zinc-silver property of Anvil Mining Corp. Anvil of course, is in the familiar Vangorda Creek district of the central Yukon, and was formed by Cyprus Mines Corp., 60%, and Dynasty Explorations, 40%.

Capital cost estimates for the project are approximately $60 million, with the objective being to have the mine in operation in 1969.

Oct. 5, 1967

The fabulous Athabasca tar sands, which contain the world’s largest known reserves of oil as well as vast tonnages of sulphur, have finally been tapped.

In a new unique mining-processing undertaking that holds tremendous economic implications for the whole Canadian economy, the $235 million complex of Great Canadian Oil Sands was formally ushered into production over the weekend.

Feb. 1, 1968

Possible development of Indonesia’s vast nickel reserves moved a stage forward Monday with the signing of an exploration agreement between International Nickel Co. of Canada and the Indonesian government. Inco will now go ahead as rapidly as possible with a comprehensive exploration program, states H. S. Wingate, Inco’s chairman and chief officer. If results justify, the company will undertake metallurgical and other work.

The nickel deposits to be explored are located on the Island of Sulawesi (Celebes) in a remote, jungle area.

Feb. 29, 1968

Production for the famed Hollinger gold mine at Timmins will cease at the end of March.

Final ore exhaustion comes after more than 57 years of operation, during which time the mine set Canadian records in bullion production of approximately $600,000,000.

Dec. 5, 1968

Gulf Minerals Co., wholly-owned subsidiary of Gulf Oil Corp., has obtained “highly significant” results from an exploratory drill hole on a project in the Athabasca sandstone on its Northern Saskatchewan property in the Wollaston Lake area. The location is some 200 miles southeast of the uranium mines in the Beaverlodge area on the north shore of Lake Saskatchewan.

Assay results indicate uranium mineralization of a grade equal to Beaverlodge uranium values and several times better than the grade of ore in Elliot Lake uranium area in Ontario. Uranium mineralization was located through an extensive radiometric survey carried out over a large area during the past 18 months.

April 10, 1969

Canada’s metal mining industry is roving the world for new important ore deposits.

International in scope for some years, the industry’s interest has never been as great as it is today in the mineral potentialities in other lands.

Its investment in foreign countries in the next few years will boom by approximately $450 million, and, if all projects in view are brought to fruition, the total could rise by $750 million.

Jan. 29, 1970

Ceremonies this week mark the formal opening of Anvil Mining Corp.’s big lead-zinc-silver project at Faro, about 135 miles northeast of Whitehorse, Yukon.

The $64 million facility, a joint undertaking of Cyprus Mines Corp. (60%) of Los Angeles, Calif., and Dynasty Explorations (40%) of Vancouver, made it first ocean shipment of concentrates on Dec. 8, for ports in Japan.

This event was the climax of a program that began six years earlier when Dynasty Explorations was formed in 1964 to undertake an extensive exploration campaign in the Yukon.

Jan. 7, 1971

Breaking tradition that is as old as the paper itself, this issue of The Northern Miner carries no advertisements on the front page. This is in keeping with the modern trend, and few papers of national stature still present advertising on their front pages. However, until only a few years ago we were in the august company of the London Times as that prestigious publication carried front page advertisements for the first 280 years or so of its existence.

Aug. 12, 1971

Cominco Ltd. in diamond drilling on the original Polaris property of Bankeno Mines on Little Cornwallis Island, in Canada’s Arctic Islands, has come up with several significant zinc-lead intersections, The Northern Miner can report following conversations with company officials. Cominco has had the property under an option agreement since 1964 and has a 75% interest in the ground, with Bankeno retaining a 25% carried interest.

While much too soon to discuss the economics of the situation, because of the limited results so far as well as the remote location, the findings are nevertheless regarded as being of potential importance and most encouraging.

Diamond drill hole No. 1 has returned as the main intersection a core length of 85 ft. averaging 24.7% zinc and 5.1% lead, for a combined average of 29.8%. This is in a vertical hole and extended from 414-499 ft. Preceding the main section was a core section of 39 ft. averaging 3.1% zinc and 0.8% lead from 375-414 ft. A deeper intersection also was encountered showing 20 ft. averaging 8.9% zinc and 5.3% lead from 615-635 ft. in the hole.

Sept. 16, 1971

The Highland Valley area, the valley of the giants, is shaping up as one of the world’s major copper producing centres.

Projects proceeding, planned, and in the cards add up to approximately $385 million in capital expenditures and one can visualize that within three or four years the area’s mines, altogether, will be handling at least 135,000 tons of ore a day for an annual production in the vicinity of $200 million. They will provide permanent jobs for more than 2,000 persons. Approximately 1,900 men are already working in mining operations or on projects in the area, but the large majority is engaged in construction and may be expected to leave the area upon completion of their work.

The Highland Valley district embraces the copper-molybdenum deposits of Bethlehem Copper, Lornex Mining, Highmont Mining, Valley Copper Mines and Alwin Mining. Lornex is 50% owned by Rio Algom Mines and 20% by Yukon Consolidated Gold, and Valley Copper owned 69% by Cominco. Teck Corp. has a 45% interest in the mineral rights of Highmont.

June 29, 1972

Falconbridge Nickel Mines has brought into production it first laterite nickel operation. And, it’s a honey. Make no mistake about that, it’s going to contribute handsomely to the company’s profits. Of course, there is the matter of $185 million in loan capital that will have to be retired, but that should be managed with no great difficulty.

The new mining and metallurgical complex is presently running at about two thirds capacity, The Northern Miner learned on attending the colorful opening ceremonies here last week. Later this year, by the fourth quarter at least, the plant will be operating at its rated annual capacity of some 63,000,000 pounds of nickel in ferronickel (40% nickel).

Aug. 24, 1972

Next week The Northern Miner will have a new look. We are going to change to the web offset printing process. The page size will be smaller, the type face larger and the paper will no longer reflect light into your eyes. Also, we’ll combine our customary two sections into one larger one. All our regular features and news reports will be continued, of course.

April 12, 1973

Gold mining in this country is making quite a comeback.

At least a dozen long dormant mines will be reopened this year, with many more planning to resume exploration, The Northern Miner finds.

It’
s a scene that hasn’t been witnessed here for many a year and is, of course, a direct reflection of the much higher price that gold commands.

Even the most highly skeptical are finally conceding that the rise is real and is “for keeps.” A prominent Canadian mining executive who has just returned from a trip to Switzerland where he discussed the gold question with prominent world bankers in that country was told that “there is no way” that gold will ever again sell under $80 an ounce.

Aug. 16, 1973

Further recent underground drilling of the new E zone of Canada Tungsten Mining Corp. now shows beyond question that this company has come up with a major ore discovery at its Flat River area property near the N.W.T.-Yukon border. In fact, it is already making a preliminary estimate of 4,000,000 averaging 1.60% WO3 and 0.22% copper. Still wide open, this is even now sufficient to supply the mill at its current rate for 20 years.

July 18, 1974

Working quietly for the past few months, Sheridan Geophysics Ltd. has its teeth into what officials feel is an important palladium-platinum deposit. It is at McKernan Lake in the Lac des les area, 55 miles northwest of Thunder Bay, Northwestern Ontario.

The property, which at one stage was held by Gunnex Ltd., was recently staked by two Lakehead prospectors when the claims apparently inadvertently fell open. It was subsequently acquired by the Sheridan group who quickly moved in a diamond drill. The ground has now been turned over to Boston Bay Mines, a recent VSE listing with some $250,000 in its treasury. Boston Bay, in turn, is controlled by Belleterre Quebec Mines which holds something in excess of 600,000 shares. Both Belleterre and Boston are in the Sheridan camp.

March 6, 1975

Amoco Canada Petroleum Co. has confirmed that its Mining Division has indeed come up with a gold discovery in Northeastern Ontario, close by the Quebec boundary, where it has staked upwards of 1,000 claims.

One of the few brand new gold finds to be made in this country since the rise in the price of the yellow metal, it could be an important one, for it obviously holds tonnage potential. The company, a subsidiary of Standard Oil Company (Indiana), had been exploring the area for base metals.

The discovery is located about 125 miles northeast of Timmins or about 30 miles due west of the big new base metals discovery of Selco and Pickands Mather reported in this paper last week.

Nov. 20, 1975

The Saskatchewan New Democratic government has decided to buck the legal battle now going on between itself and the potash industry with plans to take over some or all the 10 potash mines now operating in that province.

Typically, the takeover comes when the industry is in its peak period, well established after millions in private capital have been invested, and justified with the meaningless slogan, “It belongs to the people.” (So what else is new?)

June 23, 1977

Despite its remote location on the southern tip of Baffin Island in Canada’s high Arctic, Nanisivik Mines is shaping up as one of the most efficient underground mining operations in the country.

The mine, a zinc-lead-silver producer that came into production only last fall, is now milling at the rate of 2,200 tons daily — a figure well in excess of the designed plant capacity of 1,500 tons.

Furthermore, this 2,200 tons of ore is being obtained with a total underground work force of only 30 which should certainly make this mine a candidate for the highest productivity per man shift for any underground base metal operation in Canada.

Dec. 22, 1977

In the largest ever uranium sale by a Canadian or world producer, Denison Mines has contracted with Ontario Hydro for the supply of 126 million lb. uranium oxide between 1980 and 2011.

The value of the contract has not been disclosed, but pricing arrangements provide that the prices to be paid by Hydro will be determined periodically according to a formula based on production costs, an agreed profit margin for Denison and the prevailing world uranium price.

April 13, 1978

With 35 drill holes now completed, it is becoming abundantly clear that Imperial Oil’s Saskatchewan uranium discovery at Midwest Lake is indeed a major one. As previously reported, this is a joint venture with Imperial’s Esso Minerals Canada, Numac Oil and Gas and Bow Valley Industries et al.

The zone now has a length 2,800 ft. and still open. Widths range from less than 100 ft. to over 200 ft., but data available will not permit further precision, officials say.

Average grade of the 19 sampled sections from 13 holes for which assays are available is slightly under 2% U3O8, in addition to which there are “significant” values in both nickel and silver.

Drilling will soon be temporarily suspended but will resume immediately after breakup.

April 20, 1978

This year marks more than 100 years of commercial production of asbestos in Quebec’s Eastern Townships.

While there is some question over who discovered the mineral in the district, it is generally agreed that it was first found in the Thetford Mines area in 1875. In that year, Andrew Johnson, a timber merchant who was active in the area, determined the nature of the rock. It is believed that first commercial extraction of asbestos ore by hand-cobbing occurred in 1876.

Commercial production of asbestos ore in the Thetford Mines area was followed soon by production at Asbestos.

Currently, the Quebec asbestos industry accounts for some 81%-82% of domestic primary production and between 23% – 27% of world mine output. Asbestos represents the most significant non-metallic mineral produced in Canada and, within Quebec, primary asbestos production accounts for approximately one-third of provincial mineral output value.

Jan. 24, 1980

The soaring price of gold and silver took a deep breath at midweek after shooting to still another record high on Monday, Jan.21.

That afternoon’s London gold fixing was at US$850 per ounce…just a shade below $1,000 in Canadian funds. Silver topped at US$49 per ounce.

However, mid-week, the metals had pulled back to around US$670 and US$42, respectively. This indicates that gold has come off an astounding US$180 per ounce but one must remember that the latest price is still some US$14 above that which prevailed only a week earlier. It’s all so relative…and in another way, irrelevant. It was not too long ago when a weekly price change of 80 or 90 was considered significant.

Perhaps more than anything else, the wild break out of precious metal prices has underscored the fast diminishing value of our currencies. Even more dangerous is the psychological damage to the extent that the general public shrugs off even greater price increases while, at the same time, raising compensation expectations.

A consolidation in precious metal prices is long overdue but even a US$200-300 correction in the price of gold will leave that metal at extremely attractive prices. Even at US$500 gold and a discounted Canadian dollar, Canadian gold producers should have a banner year and the search for new mines should still accelerate.