Timmins Report Matheson stops prosperity

Black River – Matheson Township council has been accused twice of behaving in a manner that prevents prosperity to the township, located 40 miles east of Timmins, near the burgeoning Harker-Holloway gold camp.

The accusations followed council’s refusal to allow HSK Minerals (TSE) of Toronto to stake claims on property in Holtyre, the site of the productive Ross mine of Giant Yellowknife Mines (TSE).

A spokesman for the company, Thomas Obradovich, spoke to council August 15. He said the company wants to stake claims because it has staked the land on either side of the area in question.

“I’m a little distraught,” said Obradovich. “But, I am not giving up. I intend to pursue this matter to the bitter end.”

Council seemed to be afraid staking the claims would some day lead to drilling and perhaps the destruction of water wells in the area.

Obradovich said his company had $1 million worth of compensation insurance should the claims some day end in a drilling program, a program that would not affect anyone’s ability to get water.

Obradovich assured council all he wanted to do was stake claims and said his company would bend over backwards to work with council should any further developments occur — such as a shaft sinking.

“As far as I’m concerned, we offered them the moon,” he said. “It seems to me they are afraid of prosperity.”

HSK Minerals has projects in Kirkland Lake and Obradovich invited council to ask the residents there about the company. He said he had also been in touch with Environment Canada in Timmins.

“We told them our terms and they saw no problems,” he said. -30-

It might be sad, but most of the people around Timmins, especially the oldtimers, remember the old Paymaster gold mine as the scene of a terrible tragedy.

That was back in the 1930s, when a cage plunged to the bottom of the Paymaster main shaft and killed a number of miners.

What is less remembered about the old property on the Back Road in Timmins is that it was once a major gold producer in the Porcupine Camp, and was also one of the deepest mines.

But a relatively new company, Associated Porcupine Mines (TSE), along with the help of American Reserve Mining (VSE), is breathing some life int o what may be the most photographed mine-mill complex in Timmins.

C. A. Burns, president and chief executive officer of Associated Porcupine, says there is still quite a bit of work to do before any kind of production decision can be reached on the property, which produced $41.6 million worth of gold between 1922 and the time it closed in 1966.

“We are not in the process of dewatering the property yet,” said Burns, adding quickly that American Reserves had been given the chore of spending $15.2 million to bring the mine back into production, with the incentive of a 50% joint venture interest in the property.

“Tenders are being considered for dewatering now,” said Burns. “As for surface work, crews are working on the headframe, on the back legs and the main supports, in order to strengthen them and support the tower.”

As for the main 4,460-ft shaft, the cap still sits atop it, said Burns.

Reserves at the mine have been outlined at 794,000 tons grading 0.23 oz of gold per ton, he said, and a surface drilling program is attempting to outline further reserves below the bottom level of the mine at 6,025 ft.

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More than 17 months of operating losses at the Schumacher division of Giant Yellowknife Mines Ltd. has prompted a closure of the mine’s No 6 shaft.

Peter Rowlandson, Giant Yellowknife’s Timmins division general manager, said the losses have occurred despite an energetic program to increase exploration and development and to add new mining equipment, and despite the “diligent effort of those involved at the property.”

“Development in the No 6 shaft area is being suspended,” said Rowlandson, “and the developed ore at No 6 shaft will be mined out over the next three months.”

The suspension of development at No 6 shaft will not mean any layoffs of employees covered by the collective bargaining agreement, said Rowlandson. Of the 25 workers who will be affected, all have been or will be offered jobs elsewhere in the company.

But the news wasn’t quite as good for about nine private contractors working underground.

“Because of the severe shortage of underground miners in this area, we were using a small number of contractors in other areas of the mine,” said Rowlandson. “About nine of these contractors will lose their jobs as we move our own people from the No 6 shaft into other areas. Despite the fact development work is being suspended at the old No 6 shaft, exploration is expected to continue at a record pace at the east end of the old mine, once known as the McIntyre Mine.

“This exploration work will continue,” said Peter Rowlandson. “At present, drifting is being carried out on the 1,250-ft level to access the downward extension of previously- mined high grade ore zones. These zone are expected to be intersected in the fourth quarter of this year.”

Rowlandson expressed the hope that this exploration work could be continued, and that the life of the property could be extended.

“In addition to this, both surface and underground diamond drill programs are being carried out to try and prove up new reserves,” he said.

“Giant Yellowknife will be monitoring the Schumacher operating and exploration results very closely over the next several months, in order to determine the long range viability of the property.