New large northern mines challenge industry’s skills

In the far north, 1990 became a year to remember as two of the continent’s largest mines entered production. Heralding in the new decade was Cominco’s (TSE) Red Dog lead-zinc deposit in Alaska, currently being mined at a rate of 6,000 tons per day. The 85-million-ton deposit, which boasts a zinc grade of 17%, ranks as the third largest zinc producer in the world.

A few months later, the Colomac project, slated to become Canada’s largest primary gold mine in terms of throughput (10,000 tons per day), poured its first gold. Only five months after its official opening in the Northwest Territories, however, Colomac and its owner NorthWest Gold (AMEX) face an uncertain future. Having taken a $150-million writedown on the 200,000-oz.- per-year producer, NorthWest leaves Colomac’s fate in the hands of its creditors.

On a smaller scale, Saskatchewan welcomed the beginning of a 85,000-oz.-per- year production from Cameco and Shore Gold Fund’s (TSE) Jolu gold mine near La Ronge. Officially opened in June, the mine will be operated at a rate of 250 tons per day for about two years.

Slated to churn out about 40,000 oz. of gold this year, the Casa Berardi West mine in northwestern Quebec entered commercial production in April. Partners Inco Gold and Golden Knight Resources (TSE) will increase production at the new mine early in 1991, to bring total daily throughput from the East and West mines to 1,650 tons.

June marked the opening of LAC Minerals’ (TSE) Bousquet No. 2 gold mine near Malarctic, Que., a success story that is expected to reach its targeted production of 75,000 oz. this year.

Also adding to new gold production in Quebec is the Silidor mine near Rouyn- Noranda, officially opened in September by Noranda (TSE), Cambior (TSE) and Nova- Cogesco Resources (TSE). (Cambior recently offered to purchase Nova-Cogesco’s 20% interest in the mine.) At a rate of 33,000 tons per month, Silidor is expected to produce 73,600 oz. of gold in 1991. Reserves stand at 5.26 million tons grading 0.16 oz. per ton.

Just up the road at the Estrades project near Joutel, Que., reserves of slightly more than one million tons grading 10.7% zinc, 0.92% lead, 0.16 oz. gold, and 5.31 oz. silver per ton, constitute a new polymetallic mine for Breakwater Resources (TSE) Golden Group Explorations (VSE) and Golden Hope Resources (VSE). After initiating production in July, Breakwater recently stepped up production to 750 tons per day.

In mid-year, Breakwater also reopened the ill-fated Caribou lead-zinc mine near Bathurst, N.B. The 3,000-ton-per-day operation was temporarily closed recently as a result of operational problems and lower zinc prices.

Finally, Cal Graphite’s (VSE) 55-million-ton graphite deposit near Huntsville, Ont., reached production in August. Ore grading 2.5% graphite is being processed at a rate of 1,200 tons per day.