Exploration activity has businesses in Red Lake booming

Mineral exploration has been a boon to the Red Lake, Ont., district during the past year. In fact, the sum total of employment generated by those looking for mines rivals that of the Campbell Red Lake mine, the area’s largest employer.

The fervent activity has touched most Red Lake residents in one form or another, as they are either employed, or have friends and relatives who are employed, by exploration companies and contractors engaged in exploration.

Virtually all business establishments in Red Lake have benefited from this activity. The 400-500 diamond drillers, geologists, linecutters, claim-stakers, etc., must be fed and provided with logistical support at their remote camp sites.

The local grocery stores are keeping them well fed. For example, West End General Store estimates 30% of its sales are to companies carrying out mineral exploration.

This food must be cooked and Tri-Smith Supply is hard-pressed to keep up with the demand for propane and associated hardware. Bulk fuel suppliers are maintaining the energy flow to keep diamond drills turning, helicopters and planes aloft and tents warm. Prospectors fuel airline

Green Airways estimates 50% of its business in summer and 95% in winter is generated by the exploration companies.

Two years ago, Midwest Helicopters had one helicopter based out of Red Lake. It now has four. Additional helicopters are often brought in during rush periods.

Ground transportation at these remote sites consists of boats, snowmobiles, quadratracks, etc. Most of these are bought or leased locally.

Those not living in bush camps stay in town at local motels which are constantly booked. The Balmer Motor Hotel estimates 40% of its guests are employed by exploration companies.

Exploration activity has contributed to the successes of many small business in the area. These include Strapp Management and Expediting Services, Custom Fire Assaying, Accurrassay Laboratories and Davex Industries. Exploration helps the disabled

The Harmony Centre, a training centre for the disabled, produces 215 diamond drill core trays per day. Two years ago, total sales on products amounted to 20% of their operating cost. As a result of core tray production, it is now 55%. Employees benefit directly from this increase as their earnings are proportional to sales.

The fact that the disabled are benefiting from exploration activity is an incredible measure of how far-reaching the spinoffs generated by mineral exploration companies are, and how important their presence is to the community.

Another recent success story is Accurrassay Laboratories. This company established itself in Red Lake in late summer when it purchased Jack Beck’s fire assay laboratory.

The company introduced atomic absorption spectrometers which can detect gold at much lower concentration levels than the conventional fire assay method. For many years, geologists who required lower detection levels sent their samples out of town. Many are now sending their samples to Accurrassay and, as a result, the company now has 15 employees. Jack Beck’s laboratory employed three. New mine possible

Over the past few years, mines have been brought into production, at an unprecedented pace, all across Canada. It is unlikely that Red Lake will be left out in the cold with regards to new mines.

An example of perseverance is the latest phase of exploration on the McFinley property. It began in 1974, and will culminate in 1988 after a substantial bulk sample is processed in a new mill. This will determine ore grade and thus profitability. From this, McFinley Red Lake Mines can make a production decision. 91 miles of core

Equity financing for junior companies, in tandem with the exploration budgets of producing mining companies, has resulted in 482,448 ft of diamond drilling in the area. That’s equivalent to 91 miles of core which could be stretched out from Red Lake to Dryden.

The cost of producing this diamond drill core is $15 million. Another $5 million was spent on infrastructure and staff who logged and sent the core for assaying. $5 million was also spent prior to drilling to find drill targets. Forty-five companies carried out 70 diamond drilling programs in 1987.

Much of the exploration activity in 1987 was dedicated toward the re-evaluation of formerly producing gold mines and developed prospects. New gold at old mines

Often the re-evaluation of old mines in light of new information and ideas will lead to discoveries on properties thought to have been thoroughly explored.

Much of this activity is in the Red Lake area. Some is 60 miles to the east in the Confederation and Birch Lake areas. Some is as far north as 250 miles.

Work done by Golden Terrace Resources on Richardson Lake, 70 miles northeast of Red Lake, is a good example of a recent success. The focus of its attention has been the Kostynuk shaft from which the Kostynuk brothers of Red Lake extracted 1,126 oz of gold.

Virtually no information on the nature of this gold deposit exists. It is not exposed on the surface. However, by trial and error they eventually discovered 200,000 tons of rock containing gold.

Many exploration companies are taking a more grassroots approach to finding gold. They are exploring properties with few surface gold occurences. As a result, they are finding new ones.

A good example of a recent grass- roots success is the discovery of gold on Birch Lake by St. Joe Canada. A surface gold showing, known to a very few, has blossomed to 800,000 tons grading 0.13 oz gold per ton.

There will be a minimum of five underground exploration projects in the Red Lake District in 1988. A few more are being contemplated and may be initiated in 1988 as well. Maurice Lavigne is the resident geologist for the Ontario Ministry of Northern Development and Mines in Red Lake.