Barrick shuts down Camflo after 29 years of operation

After 29 years of operation, the Camflo gold mine in northwestern Quebec is about to hoist its last load of ore.

In October, 1963, the first bench of Camflo’s main shaft was blasted. Toward the end of this month, the 3,365-ft.-deep shaft will be capped and one of Canada’s lowest-cost gold mines will close.

Brian Meikle, senior vice-president of development for American Barrick Resources (TSE), which owns the mine, described Camflo’s early days to The Northern Miner.

Meikle started as consulting geologist in 1962 for the mine operator at that time, Camflo Mattagami. He progressed through mine management to vice-president of operations in 1978, holding that position until 1984 when the company was transformed into American Barrick Resources. Camflo derives its name from the late Gordon Cameron, manager of a local diamond drilling company, and the late Jack Florence, an Ottawa restaurateur. The company had turned its back on the booming Mattagami base metals camp after an abortive exploration program there. It was looking for something more promising and in 1962 purchased a group of eight claims about four miles east of the village of Malartic, Que.

Adjoining Camflo’s new acquisition was the property of Malartic Hygrade. It had a 450-ft. shaft on its property and was making trial shipments of ore for custom milling. East Malartic’s underground mine was still operating nearby, so too were the mines of Malartic Goldfields and Norlartic, although all were close to the end of their lives.

So started for Camflo the nerve-wracking, fits-and-starts progress of the typical equity-financed junior mining company.

“We didn’t have flow-through financing then,” Meikle said. “Every penny had to be raised on the stock market and with gold at US$35 per oz., gold properties were not high on the punter’s list. Each laboriously financed drill program had to produce at least some holes with promising gold values or interest would fade and take future financings with it.”

Camflo was lucky. By late 1963, preliminary reserves were 778,000 tons grading 0.21 oz. per ton and shaft sinking began. But results on the 450-ft. level (the lowest) were disappointing and the company was just about out of money. A final exploration stab was made. A drill program was initiated to test the mineralized structure 150 ft. below the 450-ft. level. It was successful. The top of the main orebody was found.

A consulting geologist acting for the Montreal Bronfmans liked what he saw at the mine. He recommended a major loan with Camflo’s stock as collateral. After the Bronfmans opened the door, other financings followed. “We never looked back after that,” said Meikle. “Within months, the shaft was deepened, new levels driven; we started mining a substantial orebody. Our debts were paid off.”

The consultant who recommended Camflo to his employers was a young geologist with strong entrepreneurial leanings. The industry would hear much more about him later, as the controversial mainspring of International Corona Resources — Ned Goodman.

By 1966, ore reserves were 2.04 million tons grading 0.25 oz. gold. Early mine production was custom-milled at Malartic Goldfields. The company’s own 1,000-ton-per-day mill came on line in 1969 and was expanded to 1,250 in 1975. The shaft had reached its deepest level that same year at 3,365 ft. It gave access to 23 levels but it was clear then that a significant proportion of the ore from the 2,250-ft. level, and below, would come from Malartic Hygrade’s property.

By Sept. 1, Camflo had milled 11.25 million tons for an average recovered grade of 0.167 oz. Of the total, 9.7 million tons at a recovered grade of 0.169 oz. is attributable to Camflo. Malartic Hygrade’s property is responsible for the balance. Total production is 1.9 million oz. gold. In June, 1991, Malartic Hygrade became Republic Goldfields (VSE). Camflo is a conventional mine. Most stoping was done by open, blasthole methods. Draw-point loading was by overshot loaders delivering into rail-bound cars.

Asked the reasons why Camflo was such a successful, low-cost operation, mine manager Alain Mercier said, “We had good solid rock to mine in and we’ve had cost-conscious management right from the beginning. Most of all we’ve always had a highly motivated crew. We’re all of us in it together. Some of our men have been with us for 25 years and it’s sad to see the team break up.” Stockpile cleanup will keep the mill running for about a month after the mine closes and American Barrick is hoping there will be custom milling in the future.