Air of confidence evident at Thunder Bay conference

Recent increases in the price of gold helped to create a mood of optimism at this year’s annual Northwestern Ontario Mines and Minerals symposium held in Thunder Bay recently. The symposium’s theme was “Exploration in the ’90s” with veteran prospector John Larche delivering the opening address to about 350 delegates in attendance.

Larche said senior companies are now in a good cash position, but the junior sector is in poor shape financially.

“If junior companies have access to risk capital, there is a great benefit to all Canadians,” he said. “There is little doubt that all people should be concerned about the future of exploration in Ontario.”

Guest speaker Maureen Farrow, an economist with the Coopers & Lybrand Consulting group, said the gold price will likely stay above US$400 this year, and could go even higher, depending on the outcome of political events in South Africa, the world’s largest gold producer.

Northwestern Ontario already accounts for more than half the province’s gold output, and has nearly 20 advanced gold exploration projects which could become viable at higher bullion prices.

Probably the biggest challenge facing the exploration industry is to refocus some of its emphasis toward base metal exploration, said Farrow. There are less than 11 years worth of zinc reserves in Ontario at the current rate of output. “How can Ontario maintain a share of the international metal market if the reserves are not there?” she asked.

She said the challenge in exploration is two-fold — to maintain the existing market position, and to add to the reserve base wherever possible.

“It’s also important to take a close look at exploration methodology, and then get on with it,” she said.

Larche noted that in Ontario, “we must accept the fact that most of the surface ore deposits have been found.”

Explorationists are going to need money as well as the best technology and geological information available,” he said.

More than 50 poster and core shack displays were presented covering the ministry’s geological activities, as well as the northwestern region’s gold and base metal deposits. Several mining companies and producing mines were featured including Inco’s Shebandowan nickel mine, Minnova’s Winston Lake division, Noranda’s Geco division, and a number of gold mines ranging from Hemlo to Red Lake.

Tom Lewis — Placer Dome’s regional geologist and a key player in bolstering membership of the Northwestern Ontario Prospectors Association — said the outlook for exploration looks bright, but it is becoming more competitive as the number of senior companies seeking properties in the area is increasing.