Spinoffs from mining benefit Northwestern Ontario

The region’s rich mineral endowment, which extends from the Manitoba border in the west to Lake Nipigon in the east, has served as a magnet, attracting prospectors, geologists, and mine developers.

The famous Red Lake and Pickle Lake gold camps have been the site of some of this country’s richest and most prolific precious metal mines. Underlain by numerous greenstone belts of the Precambrian Shield, northwestern Ontario’s favorable geology has long attracted the eye of explorationists.

But there have been obstacles, too. Some of the most promising mineral deposits still lie in relatively remote areas, where lack of power, infrastructure or road access present obstacles to development.

Nevertheless, during the past few years, the economic contributions and job-creation abilities of the mining and exploration industry have been aptly demonstrated. A bumper crop of new mining projects have sprung up, stimulating the over-all economy of the northwestern region.

On the mineral exploration front, senior mining companies like Noranda Exploration, Placer Dome (TSE), Inco Ltd. (TSE), Rio Algom (TSE), Granges Exploration (TSE), and Bond International Gold (TSE) are among the region’s most active players. The main staging area for those companies is Thunder Bay, where some 27 mineral exploration firms now have offices.

One geologist, who works for an exploration company based in Thunder Bay said “I don’t think people realize the contribution mineral exploration makes to this region.”

The city of Thunder Bay has never really been looked upon as a major mining centre, but judging by the number of exploration companies based there, things could be changing.

One local organization, known as the Northwestern Ontario Prospectors Association, has nearly 180 members. One spokesman said the prospectors’ association is as active as ever, promoting exploration and mining development in the area.

While the over-all level of exploration activity is down by about half from the record highs experienced a few years ago, many important projects are still advancing, and new mines continue to open, replacing jobs lost by mines which have closed down.

In June, for example, Placer Dome officially opened its new Dona Lake gold mine, 10 miles south of the town of Pickle Lake, Ont. More than 140 new jobs were created — an important economic stimulus to that remote area.

In the Opapimiskan Lake greenstone belt, 80 miles north of Pickle Lake, a new gold mine on the Musselwhite property could be given the production go-ahead in the next few months. That decision awaits positive results from a feasibility study, currently in the final stages of completion.

The three partners in the Musselwhite consortium — Placer Dome, Inco and Corona — should be making an announcement soon on the status of Musselwhite, where a $100-million fly-in mine is contemplated.

A hydro line to bring electricity into the remote mine site could cost as much as $16-30 million, according to one estimate. The new mine could b e expected to create as many as 250 new jobs, if it is given the go-ahead.

Last year, Bond International Gold (TSE) brought its Golden Patricia mine into production, 50 miles west of Pickle Lake. That mine has exceeded expectations by producing 72,000 oz of gold in its first year of production. Of the nearly 140 people employed at the mine, some 30 come from local native communities in the area. It’s another mining success story from the remote northwestern region.

In the Red Lake camp, Goldquest Exploration (TSE), which is 60%- owned by Dickenson Mines (TSE), has teamed up with Chevron Minerals in an $8-million joint venture exploration program. A major drilling campaign is under way this year. Meanwhile, Inco Gold, a subsidiary of Inco Ltd. (TSE) continues at a measured pace to evaluate the old Cochenour-Willans mine, also in the Red Lake camp. Other companies exploring actively in the camp are Noramco Mining (TSE) and Placer Dome (TSE).

In the Lake of the Woods area near Kenora, Nuinsco Resources (TSE) and Deak International Resources are continuing to build reserves on the Cameron Lake gold deposit which is advancing toward production, pending financing arrangements.

Farther east, along the Trans Canada Highway at Shebandowan, Inco Ltd. (TSE) is mining copper- nickel ore again from its underground operation which had been closed down previously. The copper-nickel concentrate is being shipped to Inco’s smelter in Sudbury and mining is being done on a contract basis by the firm of McIssac Exploration from Sudbury.

On the Moss Lake project, about 70 miles west of Thunder Bay, partners Tandem Resources (ME) and Storimin Explorations (ASE) have spent some $8.4 million exploring an interesting gold deposit, and another 20,000 ft of diamond drilling were planned for this year.

In the Beardmore gold camp, east of Lake Nipigon, Placer Dome is in a $7-million joint venture with Metalore Resources (TSE) on the latter company’s Brookbank gold deposit. A $1-million exploration program, including a significant amount of diamond drilling, is under way.

Another major exploration program under way is by Placer Dome and junior joint venture partner Golden Crescent Resources (ASE) on the Talbot Lake gold project, situated west of Ft. Hope, Ont. Although still at the pre-feasibility drilling stage, the deposit has yielded impressive intersections including 1.08 oz gold per ton over 8.2 ft and 0.48 oz over 24.8 ft. To date, Placer Dome has drilled more than 26,000 ft in some 47 holes.

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