Forty Years Ago – April 1963

Falco has record earnings

Largely because of additional investment income as a result of the merger with Ventures, the devaluation of the Canadian dollar, and lower writeoffs, Falconbridge Nickel Mines was able to report the highest earnings in the company’s history.

Profits amounted to $19.83 million, compared with the previous highs of $17.1 million in 1962 and $16 million in 1960.

A record $12 million, or $2.50 per share, was paid in dividends, up from $6.4 million disbursed in 1961.

The nickel operations continued to provide most of the company’s income. Earnings from its wholly owned sudsidiary, Fahralloy Canada Ltd., were the highest since its inception. Giant Yellowknife Mines also set a new record for earnings and dividends.

Education in peril: CIM’s Bradfield

Education was the primary topic at the annual meeting of the Canadian Institute of Mining and Metallurgy in Edmonton.

In a hard-hitting address, President J.R. Bradfield placed some plain, unvarnished facts before the members.

Canada, he said, is far behind other industrial countries in education, and that, relative to our material wealth per capita, we are in a poor position indeed. Only 46% of Canadians have more than a primary school education, and Bradfield went on to say every child should have a high-school education.

“We are far overrated and do not stand a chance in competition with other countries unless we make tremendous strides in education without delay,” he said.

Madsen Red Lake improves

Despite slightly lower production, Madsen Red Lake Gold Mines saw its earnings rise in 1962. The modest improvement is due to the higher price received for its product, which in turn reflects the discount on the Canadian dollar.

The higher price received averaged $1.90 over the average gold price of $35.52 in 1961 — equivalent to nearly $200,000 on the 100,878 oz. produced.

Profits for the year amounted to $657,920, equivalent to 19 per share, compared with $649,672 in 1961.

Ore reserves improved sharply over the past year, and are now calculated at 845,400 tons with an average grade of 0.33 oz. gold per ton, up from 666,860 tons of the same grade in 1961.

More drilling at Raglan

Four diamond drills are operating in a renewed exploration program on the extensive nickel-copper holdings of Raglan Nickel Mines in the Ungava Area of far-northern Quebec.

The program, which will cost an estimated $600,000, will likely involve 40,000-50,000 ft., Raglan President E.T. Donaldson tells The Northern Miner.

Management anticipates that the new program will increase indicated ore reserves, which at the end of the past season totalled 8.1 million tons grading 1.54% nickel and 0.78% copper. This estimate follows more than 55,000 ft. of surface drilling.

Labrador plant puts IOCC on map

Trial runs are getting started at the new, $65-million plant of Carol Pellet Co. in Labrador City. The plant, the largest in the country, promises to put Iron Ore Co. of Canada in the pellet business in a big way.

When it reaches capacity, the new plant will be handling iron ore concentrate from IOCC’s big Carol project at the annual rate of 5.5 million tons.