Newfoundland backs new enterprises

AUGUST 1951

Under the driving force of Premier Joseph Smallwood, the Newfoundland government is pushing a program designed to broaden the provincial economy. The campaign largely revolves around promoting the development of the province’s natural resources, chiefly mining and lumber.

The government enthusiastically endorses the potential of the province’s mining and lumbering industries by backing them with cold, hard cash.

The first of the government projects is a $750,000 birch mill near the village of Donovan, not far from St. John’s. The mill will employ 300 men.

Much more ambitious is the $3-million cement plant, which is scheduled to go into production in the fall.

Last year, the government spent $185,000 on an aerial magnetometer survey within a 5,000-sq.-mile block of land surrounding Notre Dame Bay.

Future bright for United Keno

Big things lie in store for United Keno Hill Mines. The company has acquired the pick of a broad mining camp, made fruitful by high metal prices, new transportation and power facilities and modern mining techniques.

All production is being drawn from the Hector mine, with three more mines under development. Without further exploration, there are 11 other potential mines on the company’s land holdings.

Completion of a hydroelectric power project next year will relieve one of the main bottlenecks to expansion. A new $600,000 cyanide plant, which will treat present tailings, is being rushed into production. The plant will raise silver recovery from 82% to 94%. It should pay for itself in three years.

Placer unveils tungsten program

Further word on Placer Development’s tungsten showings, which have been detailed in drilling at the Jersey mine, near Salmo, B.C., suggests that it is the most important tungsten deposit thus far found in Canada. Indeed, it probably ranks with the best on the continent.

A contract has been arranged with the U.S. government for tungsten production from 1952 until 1958. The agreement provides for the purchase of the estimated production at a market value of $65 per unit. It is thought that the company stands to make a profit of about $40 per unit once the mine is in production.