Mineral output up in New Brunswick

Natural Resources and Energy Minister Morris Green has released preliminary figures which show the total value of minerals produced in 1988 was over $831 million, up 34% over 1987. The increase resulted from higher production and improved prices for some of New Brunswick’s key minerals.

“These figures are particularly encouraging but are subject to adjustment when final production and sales have been verified,” said the minister.

The most notable improvements were for zinc concentrates produced by Brunswick Mining and Smelting Corp. (TSE), which rose in value to $379 million and represents 45% of total minerals produced. The next most significant gain in value was potash, which increased in value 49% over 1987. This increase is directly attributable to higher potash prices and improved production from two potash mines in the Sussex area.

Both lead and silver increased in quantity produced but experienced downturns in prices from the previous year. Lead was valued at $73 million, 9% of total minerals produced and silver was valued at $50 million, 6% of total minerals produced. Copper prices and production realized record increases over 1987 and accounted for $31 million, 4% of the total. The remaining $546 million (66% of total mineral production) includes: antimony $7 million, bismuth $3 million, cadmium $1.6 million and gold $1.3 million.

Antimony was produced by Dominion Explorers (TSE) at its Lake George mine, the largest primary producer of antimony in North America. The gold yield increased at New Brunswick’s only producing gold mine, Gordex Minerals’ (TSE) in Cape Spencer. Gold and antimony are also significant byproducts of Brunswick Mining and Smelting’s operation in Bathurst.

Non-metals represent 25% ($205 million) of the value of mineral production. By far, potash yields the most value of all non-metals produced in the province. Other non-metals such as peat and sulphur (from smelter gas) contribute considerably to the province’s mineral industry. Gypsum, salt and silica are also mined in New Brunswick.

The mineral fuel industry in New Brunswick contributes 4% of the total value of mineral production. Coal is the major contributor, but oil and natural gas are being produced on a steady basis in the province.

Structural materials valued at $46 million comprise clay products, cement, lime, sand and gravel and stone. These commodities are produced at many locations throughout the province and are the backbone of the construction industry.

The year 1988 has been New Brunswick’s most productive to date, and there are indications that the future could be even better. A feasibility study for re-opening the Heath Steele mine has recently been completed by Brunswick Mining and Smelting Co. and Heath Steele Mines. The study is currently under review by governmental agencies. Resuming operations at the Heath Steele mine would increase the province’s production of zinc, lead, copper and silver by 20%. If the necessary approvals are obtained, production could commence in late 1989.

In addition to the potential at Heath Steele, East West Caribou Mining has successfully commenced production at the former Anaconda Canada site and will be producing throughout 1989 at a rate of 2,000 tonnes per day. This represents a further 20% increase over existing base metal production in the province. The Restigouche base metal deposit is being drilled by Marshall Minerals (TSE) for reserves as well as deposit definition. There are favorable indications that mine development could take place.

Gold output should improve in 1989 as NovaGold (TSE) begins construction at its Murray Brook deposit. During 1988, Northumberland Mines merged with NovaGold and, after some unfortunate delays, managed to finalize financing requirements for the project to proceed. Gordex Minerals continues to explore the Cape Spencer area in partnership with Cambior (TSE). Initial drilling indicates further potential for development in the area.

In 1988 as in the past several years, mineral exploration focused on gold. Exploration expenditures of approximately $8.4 million have been reported, although the actual amount spent in the province may be twice that. Claim staking increased 53% over 1987, and the total number of claim equivalents in effect was up 14%. As in 1987, the search for gold was most intense along the Bay of Fundy coast in southern New Brunswick, in the Riley Brook, Upsalquitch-Jacquet River, Millstream-Alcida areas and at the eastern end of the Rocky Brook-Millstream fault system (Tobique-Chaleur zone) of northern New Brunswick.

Stable, improved base metal prices over the next four to five years could stimulate increased interest in the Bathurst/ Newcastle area, where there are a large number of known base metal deposits.

]]>