The geology of Atlantic Canada is associated in the minds of many Precambrian geologists and Upper Canadian mining analysts with images of small-scale industrial mineral operations making little, if any profit. Coal, tin, antimony and salt (that’s something they put on fish isn’t it?). Gold is no different.
It has been 60 long years since an ounce of the yellow metal has been extracted from Nova Scotian ores by a public company. During that time east coast geologists have had to wage a constant battle with this image, perpetuated by the outdated geological theory of saddle reef gold deposits that “appear to pinch out at depth.” Convincing investors accustomed to big, wide Precambrian gold deposits has not been an easy task. But persistence has paid off for at least one company, so far.
The first official gold pour from Seabright Resources’ mill next week will indubitably make headlines in Halifax newspapers, returning, as it will, Nova Scotia to the ranks of Canada’s gold producers. But the mill’s performance over the coming months will be watched more closely than probably any mill in the country, by those brokers and investors still not convinced this tiny province has the orebodies long-term gold producers are made of.
Shareholders of a handful of other gold explorers in the region will be just as interested. During the past year, they have invested some $60 million in exploration money in Nova Scotia alone — money that will be put to work, hopefully to lay to rest once and for all that small-time, marginal east coast mining image.
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