Annual Zinc Review (November 01, 1988)

The mining of sphalerite, the ore mineral of zinc, is headed for a downturn in Canada. But you’d never suspect it, judging from the amount of money being spent developing new mines and modernizing old refineries. New orebodies of significant proportions, though, are not being found. Many small deposits have been discovered and developed into mines recently (Ansil, Mobrun and Isle Dieu, for example). But they are not increasing reserves at a fast enough clip to replace those being mined at an ever-increasing rate from the major orebodies that made Canada the top zinc miner in the world.

The major zinc deposits in Bathurst, N.B., Kimberly, B.C., Timmins, Ont., Faro, Y.T., Flin Flon, Man., Manitouwadge, Ont., and Polaris, N.W.T., produce the vast majority of Canada’s zinc concentrates. The largest new orebody discovered in recent years (1979) consists of three Westmin discoveries on Vancouver Island which totalled 12 million tonnes. The average grade there is about 5.4% zinc. The Selbaie deposit, near Joutel, Que., another sizeable deposit, contains about 17 million tons at 2% zinc.

It was discovered in 1974.

Noranda Inc. and BP Selco’s Duck Pond deposit in Newfoundland and the Stratmat deposit in New Brunswick, by comparison, have drill- indicated reserves of 3.6 million tons of 7.6% zinc and 1.7 million tons of 8.2%. Reserves at Chisel Lake, the most recent discovery in Manitoba, made by Hudson Bay Mining & Smelting, has probable reserves of 2.7 million tons grading 9% zinc. All of these discoveries are minuscule when compared to the 157-million-tonne Brunswick deposit.

The 44-million-tonne Grum deposit, adjacent to the operating Faro open-pit mine in the Yukon, is the largest new zinc mine being developed in Canada. The average grade there is 5.8% zinc. It was founded in 1974 by Kerr Addison Mines and AEX Minerals. Operator Curragh Resources plans to have it in production, supplementing ore from the dwindling Faro deposit, in 1989. The mill at Faro produces about 1,210 tons of zinc concentrates per day grading about 50% zinc. It is trucked to Skagway, Alaska, and shipped to smelters in Australia, Asia and Europe. Production in 1988 was affected by a one-month strike.

The $73-million Winston Lake mine, which came into production this year, is one of the highest-grade zinc mines in the country, with reserves of 3.1 million tonnes grading 16% zinc. Concentrates from there go to Noranda’s electrolytic zinc plant in Valleyfield, Que., which this year is undergoing a $120-million modernization program which will automate the electrolysis process where 230,000 tonnes of zinc are produced each year.

The lack of new discoveries in Canada is no reflection of poor market fundamentals for zinc. Predictions of continued increases in the consumption of the metal in 1988 appear to be coming true and prices are steadily rising. Consumption in the West set a new record in 1987 of five million tonnes. Total production in the non- communist world, on the other hand, was 5.28 million tonnes.

Despite the decline in ore reserves and the paucity of major new discoveries, Canada will continue to be the second-largest producer of refined zinc (behind Japan) well into the 1990s.

Cominco Ltd., Canada’s largest refiner of the metal, will start bringing zinc concentrates into the country to its zinc refinery in Trail, B.C. The concentrates will come from Alaska’s Red Dog mine sometime in 1991. About half of the 750,000 tons of concentrates expected to be produced there each year will be refined in Trail. The Red Dog is a big, rich deposit, with a total of 85 million tons grading 17% zinc.

Concentrates from the $420-million Red Dog mine will more than replace those from the mined-out Pine Point mine, in the Northwest Territories, and the Sullivan mine, in Kimberly, B.C., which is on its last legs. Mining ceased permanently on April 16, 1988, at Pine Point, which is 50%-held by Cominco. But the sale of zinc concentrates was maintained at normal levels by inventories. In the first six months of 1988, Pine Point sold 119,900 tonnes of zinc concentrates.

On the other hand, the Sullivan mine, which has been producing concentrates for 79 years, coughed up 131,400 more tonnes in 1987. The zinc plant at Trail can produce 300,000 tons of refined zinc per year and is expected to operate at capacity all this year. It recently underwent a $150-million modernization program.

To make up for loss of production from the Pine Point mine, the company increased to 45% its interest in the Polaris mine in 1988. In the first six months of 1988, the mine produced 103,300 tonnes of zinc concentrates. Shipments this year from this far north mine began July 15 — the earliest date in the mine’s 6-year history.

Hudson Bay Mining & Smelting is Canada’s third-largest zinc producer, pouring 84,450 tonnes in Flin Flon in 1987.


The mining of sphalerite, the ore mineral of zinc, is headed for a downturn in Canada. But you’d never suspect it, judging from the amount of money being spent developing new mines and modernizing old refineries. New orebodies of significant proportions, though, are not being found. Many small deposits have been discovered and developed into mines recently (Ansil, Mobrun and Isle Dieu, for example). But they are not increasing reserves at a fast enough clip to replace those being mined at an ever-increasing rate from the major orebodies that made Canada the top zinc miner in the world.

The major zinc deposits in Bathurst, N.B., Kimberly, B.C., Timmins, Ont., Faro, Y.T., Flin Flon, Man., Manitouwadge, Ont., and Polaris, N.W.T., produce the vast majority of Canada’s zinc concentrates. The largest new orebody discovered in recent years (1979) consists of three Westmin discoveries on Vancouver Island which totalled 12 million tonnes. The average grade there is about 5.4% zinc. The Selbaie deposit, near Joutel, Que., another sizeable deposit, contains about 17 million tons at 2% zinc.

It was discovered in 1974.

Noranda Inc. and BP Selco’s Duck Pond deposit in Newfoundland and the Stratmat deposit in New Brunswick, by comparison, have drill- indicated reserves of 3.6 million tons of 7.6% zinc and 1.7 million tons of 8.2%. Reserves at Chisel Lake, the most recent discovery in Manitoba, made by Hudson Bay Mining & Smelting, has probable reserves of 2.7 million tons grading 9% zinc. All of these discoveries are minuscule when compared to the 157-million-tonne Brunswick deposit.

The 44-million-tonne Grum deposit, adjacent to the operating Faro open-pit mine in the Yukon, is the largest new zinc mine being developed in Canada. The average grade there is 5.8% zinc. It was founded in 1974 by Kerr Addison Mines and AEX Minerals. Operator Curragh Resources plans to have it in production, supplementing ore from the dwindling Faro deposit, in 1989. The mill at Faro produces about 1,210 tons of zinc concentrates per day grading about 50% zinc. It is trucked to Skagway, Alaska, and shipped to smelters in Australia, Asia and Europe. Production in 1988 was affected by a one-month strike.

The $73-million Winston Lake mine, which came into production this year, is one of the highest-grade zinc mines in the country, with reserves of 3.1 million tonnes grading 16% zinc. Concentrates from there go to Noranda’s electrolytic zinc plant in Valleyfield, Que., which this year is undergoing a $120-million modernization program which will automate the electrolysis process where 230,000 tonnes of zinc are produced each year.

The lack of new discoveries in Canada is no reflection of poor market fundamentals for zinc. Predictions of continued increases in the consumption of the metal in 1988 appear to be coming true and prices are steadily rising. Consumption in the West set a new record in 1987 of five million tonnes. Total production in the non- communist world, on the other hand, was 5.28 million tonnes.

Despite the decline in ore reserves and the paucity of major new discoveries, Canada will continue to be the second-largest producer of refined zinc (behind Japan) well into the 1990s.

Cominco Ltd., Canada’s largest refiner of the metal, will start bringing zinc concentrates into the country to its zinc refinery in Trail, B.C. The concentrates will come from Alaska’s Red Dog mine sometime in 1991. About half of the 750,000 tons of concentrates expected to be produced there each year will be refined in Trail. The Red Dog is a big, rich deposit, with a total of 85 million tons grading 17% zinc.

Concentrates from the $420-million Red Dog mine will more than replace those from the mined-out Pine Point mine, in the Northwest Territories, and the Sullivan mine, in Kimberly, B.C., which is on its last legs. Mining ceased permanently on April 16, 1988, at Pine Point, which is 50%-held by Cominco. But the sale of zinc concentrates was maintained at normal levels by inventories. In the first six months of 1988, Pine Point sold 119,900 tonnes of zinc concentrates.

On the other hand, the Sullivan mine, which has been producing concentrates for 79 years, coughed up 131,400 more tonnes in 1987. The zinc plant at Trail can produce 300,000 tons of refined zinc per year and is expected to operate at capacity all this year. It recently underwent a $150-million modernization program.

To make up for loss of production from the Pine Point mine, the company increased to 45% its interest in the Polaris mine in 1988. In the first six months of 1988, the mine produced 103,300 tonnes of zinc concentrates. Shipments this year from this far north mine began July 15 — the earliest date in the mine’s 6-year history.

Hudson Bay Mining & Smelting is Canada’s third-largest zinc producer, pouring 84,450 tonnes in Flin Flon in 1987.


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