Canadian projects shine at PDAC convention

Although billed as an international affair, this year’s convention of the Prospectors and Developers Association of Canada (PDAC) had a decidedly Canadian flavor.

More than 3,000 delegates and guests converged on the Royal York Hotel in Toronto in early March to attend the 63rd annual convention and trade show. At least 31 countries were represented, including Argentina, Australia, Central African Republic, Saudi Arabia and Venezuela. On hand were more than 200 exhibitors, including the investors’ exchange and the core shack displays. Technical sessions were presented on various international and domestic properties and on such topics as global exploration and development, financing of junior companies and diamond exploration.

Core shack displays featured exhibits from such properties as Barrick Gold’s (TSE) Cerro Corona copper-gold porphyry deposit in Peru, Diamond Fields Resources’ (TSE) Voisey Bay nickel-copper discovery in Labrador and TVI Pacific’s (ASE) Canatuan polymetallic deposit in the Philippines. On the domestic scene, exploration plays at Voisey Bay and in northwestern Quebec had delegates buzzing, as did the ongoing diamond play in the Northwest Territories.

The Voisey Bay nickel-copper-cobalt deposit was touted as “a must-own strategic asset,” and speculation over its ultimate size was rampant. Many delegates were disappointed that core from Murgor Resources’ (VSE) gold project in Barry Twp., Que., was not available for viewing. However, discussions as to the relevance of recent assay results from the project were ongoing.

Rory Moore, diamond exploration manager with BHP Minerals Canada, told delegates that the company hopes to begin construction on the N.W.T. Diamonds project early next year. The project, a joint venture with Dia Met Minerals (TSE), is currently under a federal environmental review which is expected to be completed by year-end. Construction is slated to begin in early 1996, with production projected for late 1997.

With construction of a diamond mine in the Northwest Territories imminent, Premier Nellie Cournoyea told The Northern Miner that Ottawa must speed up the transfer of authority over mineral resources to the Territories. Unlike its provincial counterparts, the Northwest Territories does not receive tax revenues or a share of royalties from its natural resources; any money raised from these sources is, in turn, paid out by the federal government in the form of transfer payments. And with Ottawa looking to trim these payments, the Territorial government believes it is urgent that it be given control of its mineral resources so that it can generate its own revenue.

Considering the current level of interest in the Territories, Cournoyea said, “we don’t believe the federal government is taking the project seriously.” With the opportunity for new jobs, revenue and business development, Cournoyea clearly wants the Territories to be in control of its own destiny, and she hopes an agreement can be reached with Ottawa in six to eight months. Citing an improving business climate here at home, Barrick President Robert Smith told delegates that his company “has changed course in Canada” and that it has a greater domestic presence than ever before.

Speaking at a joint luncheon of the PDAC and the Canadian Club, Smith gave a brief outline of Barrick’s corporate strategy over the years and outlined plans for the future. Although about two-thirds of Barrick’s $100-million exploration budget is earmarked for Latin America, he said the company plans to invest more than $75 million in capital expenditures in Canada in 1995. This figure is three times higher than what was invested here last year.