Exploration at risk in Manitoba’s second fire emergency

Wildfires pushed Manitoba to declare its second state of emergency in six weeks, sidelining exploration activities for at least two companies.

Several communities had already declared mandatory evacuations this week.

“We are asking Manitobans to help out in a number of ways and we want to underscore just how serious this wildfire season is,” Premier Wab Kinew said in a statement on Thursday.

There were 105 active fires burning in the province and 261 fires have burned this year to date, compared to a 20-year average of 197, Kristin Hayward, assistant deputy minister with Natural Resources and Indigenous Futures, said Thursday. More than 10,000 sq. km of area has burned this season as of Tuesday, while the 20-year average has been 940 sq. kilometres.

‘Restricted access’

Grid Metals (TSX: GRDM; US-OTC: MSMGF) faces restrictions to its Makwa nickel project, about 180 km northeast of Winnipeg, which it holds in a joint venture with Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK). A large zone where fires are burning out of control is north and east of Makwa, according to the Manitoba FireView map. Grid has four exploration sites in southeastern Manitoba.

“Access to the bush is restricted in our area, requiring a permit to get access,” Grid Metals CEO Robin Dunbar told The Northern Miner by email. “Most of our property we don’t have permission to visit.”

Grid’s infrastructure is currently unaffected by the fires, which have already burned through the area, but Dunbar said authorities are worried about flare ups or new fires starting.  

Makwa is just west of Sinomine’s Tanco site, one of Canada’s two lithium mines. Tanco produces lithium, cesium and tantalum. The nearby fire zone covers the main access road to the mine from the community of Bird River. The Northern Miner has requested comment from Sinomine.

Alamos on hold

In northwest Manitoba, wildfires spurred the town of Lynn Lake to order a mandatory evacuation of all residents. Alamos Gold (TSX, NYSE: AGI), which has an exploration project nearby, has kept its operations paused since late May, spokesperson Rebecca Thompson said by email on Thursday.

Alamos’ assistance to evacuation efforts for Lynn Lake and the Marcel Colomb First Nation and Mathias Colomb Cree Nation communities is ongoing, the company said in a news release.

Snow Lake suspended

Snow Lake, further south of Lynn Lake, has also ordered residents to evacuate and Hudbay Minerals (TSX, NYSE: HBM) has temporarily suspended operations at its namesake gold-zinc-copper mine, as well as some exploration activities, the company said in a release.

A limited workforce remains on site to monitor the situation and assist with emergency activities, it said, adding that it believes its infrastructure and facilities in Snow Lake are at low risk of being damaged.

“We expect a quick and safe return to full operations as soon as possible, and we will continue to work with local and provincial authorities to ensure continued rebuilding of our communities after this difficult wildfire season,” Hudbay Senior Vice-President Rob Carter said in the release.

Thompson emergency

Thompson, known for its nickel belt in north-central Manitoba, declared a state of emergency on Monday. A 125-sq.-km fire is burning out of control just north of the city.

Though Thompson hasn’t declared a state of emergency, the city’s website has requested residents complete a pre-planning registration in case an evacuation order is made.

Vale’s (NYSE: VALE) Thompson nickel project is just 5 km south of the city. The Northern Miner did not immediately receive a response to a request for comment. The company is collaborating with Hudbay and Alamos on wildfire assistance. The three companies gave $1.25 million to the Canadian Red Cross to support emergency relief and rebuilding efforts amid the fires.