Professor preparing environmental report

Last August, Duport became the province’s first private sector gold project to be designated for review under Ontario’s Environmental Assessment Act.

Following that designation, some mining analysts suggested investors sell their shares of Consolidated Professor because the environmental risks of the Shoal Lake location may prevent the company from developing a mine.

According to President Richard Dunlop, however, completion of the environmental assessment procedure is expected next year and public hearings could begin in Winnipeg and Kenora as early as next September.

To date, a low gold price combined with environmental concerns have prevented the junior company from making a mine out of the high- grade deposit which hosts proven and probable reserves of 937,000 tons grading 0.39 oz gold per ton.

Based on the company’s latest calculations, “an acceptable rate of return would result from a production period of six years at a gold price of $430(US) per oz.”

Capital costs are estimated at around $53 million(C), according to Dunlop.

Considered as refractory, the ore at Duport requires a complex and expensive pressure oxidation process for treatment of flotation concentrates. Most of the gold is contained in arsenopyrite, a sulphide mineral commonly associated with gold.

According to Dunlop, terms of reference for the environmental assessment report are being outlined following consultation with officials of the Environment Ministry. After approval of the terms of reference, the company will complete and submit a final report to the ministry.

During this process public meetings and open houses will be held in Ontario and Winnipeg next year.

Earlier this year, numerous articles appeared in several Winnipeg newspapers alleging that the city’s drinking water would be at risk from the proposed mine at Shoal Lake. The city’s water intake pipe is about 13 km west of the proposed Duport minesite.

Environmental groups lobbied heavily for political intervention, which event ually led to the project being designated under the Environmental Assessment Act of Ontario.

Throughout the review process, it will be Consolidated Professor’s responsibility to demonstrate to the public and regulatory authorities that the Duport project has been designed to operate in compliance with all the environmental guidelines, and that there will be no adverse impact on Shoal Lake water quality.

Duport is likely to be a precedent- setting case and will be closely watched by all members of the mining industry as well as by the public.

“Communication has continued with Native residents, the Kenora Council and local business interests to define the job opportunities and other economic benefits associated with a future mining operation,” says Dunlop.

For the nine months ended Sept 30, the company reported a net loss of $100,587 or 1 cents per share, compared with $102,884 a year ago. Cash at the end of the period was $1.12 million, compared with $1.47 million on Sept 30, 1988.

Consolidated Professor is 22.8% controlled by Conwest Exploration (TSE), which owns about 3.2 million of the company’s 14 million issued common shares.

]]>