Korean War benefits Canadian mining

An inside source tells The Northern Miner that the 700-800 Russian submarines cruising the world’s oceans pose such a threat to foreign base metal supply routes that the U.S. government has declared Mexico and Canada to be the only “outside sources” for base metals.

The Korean conflict has escalated to the point where these supply routes have become strategic to the war effort. Now America is looking to boost base metal production through subsidies because there is not enough metal for war needs and civilian consumers.

Zinc reserves are particularly low, but North American copper mines could meet the demand in the event of an emergency. A system of rationing metals is being discussed in Washington, D.C.

To meet the surging demand for aluminum in the U.S., the Aluminum Company of Canada (Alcan) will double the size of its power development project on the Peribonka River in northern Quebec.

There will now be two projects on the river instead of one, the total cost being $80 million. The dams will generate work for more than 5,000 people.

The first project, near Devil’s Falls, will be developed at a cost of $30 million; the second will be 35 miles upstream, at Chutes de la Savanne. The La Savanne dam will be even larger and cost $50 million.

Some of the cost will be offset by selling surplus power to nearby mines in the Chibougamau area.

The second full year of production at Giant Yellowknife Gold Mines has been even more encouraging than the first, says President Thayer Lindsley in the annual report covering the 12 months ended May 31, 1950.

Net profit was $500,681, against $160,761 in the previous year (or 12.5 versus 4.1 per share).

The results of development and exploration from the fourth level at the No. 2 shaft indicate an ore grade comparable to that found in the upper levels. The No. 3 shaft has been sunk to its initial depth of 1,025 ft., and work will start when preparations are complete.

In the meantime, directors approved mill expansion to a capacity of 700 tons per day. If the planned expansion goes ahead this year, the company will borrow money to finance the project.