European mission raises profile of central Newfoundland

A mining trade mission that visited Europe in early autumn 2002 to drum up interest in central Newfoundland’s resource potential has proved successful, according to the president of the Newfoundland and Labrador Chamber of Mineral Resources (NLCMR).

“We’re still waiting for the final report from the man who arranged the trade mission, but we’ve already had two good summaries in fairly influential publications,” says Peter Dimmell.

The publications, The Gold News and Mining Journal, are both published in Europe. The latter is a “signature publication” for the industry, Dimmell says, and most mining company executives read it regularly.

“We’ve had feedback about the trade mission that is quite encouraging,” he adds. “I know people here [in Newfoundland] who went on the trade mission and who are still making contact with people in Europe.”

But he concedes: “I haven’t had anyone specifically tell me that ‘yes, someone’s going to come over and put money into it,’ the reason being that at this time of year not much is invested in the industry.”

The 10-day mission to London, Geneva, Zurich and Paris, which occurred in late October, included representatives from NLCMR, junior mining companies and the Newfoundland government. Funding for the trip was provided, in part, by the Atlantic Canada Opportunities Agency (ACOA).

The presence of numerous juniors in central Newfoundland is what prompted the NLCMR to organize the mission. In addition to $75,000 of its own funds, the chamber secured $225,000 from the ACOA.

The objective was to encourage European financiers to invest in junior mining companies exploring in the province. The selling point: gold exploration — specifically in the geologically distinct region of central Newfoundland.

Companies represented on the trip included Altius Minerals, Copper Hill Resources, Vulcan Minerals, Rubicon Minerals, Candente Resource and GlobeNet Resources. All are exploring for gold and base metals, with most of the drilling occurring in the Botwood Basin, where Carlin-type mineralization has been reported.

An indication of the potential this area offers is the presence of Barrick Gold, which is participating in a joint venture with St. John’s-based Altius.

Altius President Brian Daltons says he is positive his company will to do a “fair bit of business” as a result of the mission, and points out that several European investors are already trying to become shareholders in the company.

“The trip was a positive thing,” says Dimmell. “A lot of people said to me, ‘we didn’t realize you guys had such potential.'”

— The author is a freelance writer based in Grand Falls, Nfld.