PROFILE (March 23, 1992)

By 1998, all of Minnova’s currently producing mines would have exhausted their reserves though the company is awash in cash. Last year Minnova earned more than $8-million interest from its cash alone. As a result, the hunt for ore has been David Watkins’ top priority since he became president last July.

Minnova’s 100% owned Izok Lake copper-zinc deposit in the Northwest Territories, with estimated reserves of 13.4 million tonnes, is the company’s most promising project. “Izok seems an excellent bet to provide major production in a visible time horizon,” he says. “At present we don’t see an opportunity of acquiring an instant producer.”

Minnova has just concluded an agreement in principle with Metall Mining, which will acquire a 40% interest in Izok for $15 million. Metall can earn a 40% interest for an additional $2 million in Izok’s neighboring Hood River and Gondor properties, owned 100% and 60% respectively by Minnova. Izok, Hood River and Gondor, purchased from Falconbridge Ltd. collectively for US$20 million earlier this year, reflect Watkins’ effort to shift Minnova’s focus from areas of its existing orebodies to less intensely explored lands. “We are increasing our presence in frontier regions with potential for longer-term development,” he says. “We feel the Northwest Territories and Latin America are areas we would like to place our bets.” The challenge is to develop infrastructure and train personnel.

“My goal is to provide Minnova with strong productivity and financial capability well into the next century.” Watkins notes that the company’s aggressive exploration program may bring some of its projects, other than Izok, into production prior to 1998.

Born in 1944 in Washington, D.C., he graduated from Queen’s University with a B.A. in geology (1967) and from Carleton University with an M.Sc. in geology (1970).

Watkins had worked in Australia, Ecuador and Mexico for various companies before he joined Newmont Mining in 1972. In 1977, he left Newmont for Falconbridge Copper which became Minnova in 1986.

Watkins and his wife, Christine, have one son and two daughters. Christine is a minister at a United Church in Woodbridge, Ont., near Toronto. “It is great that she has a strong commitment of her own,” he says.

What is Minnova’s distinctiveness in the Noranda group of companies? “We think of ourselves as more entrepreneurial, less bureaucratic than the other companies of the Noranda group,” he says. “We keep our technical strength in the field. Mining engineers and geologists enjoy autonomy in their search for ore.”

Will a merger between Minnova and Kerr Addison change Watkins’ strategies? “Should the two companies merge, the assets of Kerr Addison, a holding company, will only strengthen Minnova’s financial position,” he replies.