Canada’s top gold mines pass peak

For the first time in years, annual production from Canada’s largest gold mines has declined rather than increased.

Mainly as a result of lower grades at the big Hemlo mines in Ontario, cumulative production from the country’s top 12 mines fell by about 3%, to 2.76 million oz. in 1992.

The David Bell mine registered the most precipitous slide. Ranked third in 1991, the smallest of the Hemlo trio dropped to sixth place on the top-12 list as gold production fell 25.6% to 210,512 oz.

Grades were also lower

at Canada’s largest producer, the Williams mine, also at Hemlo, where production slipped from 518,703 oz. in 1991 to 496,920 oz.

By contrast, the nearby Golden Giant mine surpassed all previous records by churning out more than 450,000 oz.

But although the Hemlo mines still have 10 to 15 years of life ahead of them, the gold camp has reached its peak in terms of annual output. Production at Golden Giant, for instance, will drop to about 410,000 oz. this year as mined ore grades approach the average grade of the remaining reserves. And aside from the Eskay Creek deposit in British Columbia, there are few new mines coming on-stream to replace the camp’s lost ounces.

“Deposits discovered through exploration in Canada have been increasingly marginal,” notes Gold Fields Mineral Services in Gold 1993. “In addition, many Canadian companies have a multi-metal culture and are tending to direct their exploration and development funds toward base metals. Consequently, only a few new mines are expected to be developed in Canada in the next few years.”

But not all the top mines headed downhill in 1992. Noteworthy members of the top-12 club include the LaRonde mine in northwestern Quebec, where output jumped 15% to a record 134,474 oz., and the Snip mine in northern British Columbia, where gold production soared to an all-time high of 154,402 oz. from 109,162 oz. the year before. The Campbell mine took third place on the list as higher-grade (0.68-oz.-per-ton) ore was mined to produce 298,829 oz. But as a result of lower grades and excessive dilution, output at Bousquet No. 2 in northern Quebec fell by 15% to 149,169 oz. and the mine dropped in rank to ninth from seventh.

As a result of lower output, David Bell lost its position as the lowest-cost producer. It was replaced by Golden Giant, where costs (excluding depreciation) averaged US$113 per oz.

Teck (TSE), which operates David Bell under a joint venture with Homestake Mining (TSE), says delays in mining high-grade sill pillars at David Bell forced the partners to exploit lower-grade stopes on the eastern fringe of the deposit.

CANADA’S TOP 12 GOLD MINES

Mine Owner(s) Production

oz.

1992 1991

1 Williams Homestake/Teck 496,920 518,703

2 Golden Giant Hemlo Gold 451,403 443,438

3 Campbell Placer Dome 298,829 260,521

4 Doyon Cambior/Lac 249,594 257,271

5 Lupin Echo Bay 214,482 216,877

6 David Bell Homestake/Teck 210,512 283,128

7 Dome Placer Dome 172,997 144,526

8 Snip Cominco/Prime Resources 153,402 109,162

9 Bousquet 2 Lac 149,169 175,844

10 La Ronde Agnico-Eagle 134,474 116,831

11 Detour Lake Placer Dome 129,550 119,530

12 Con Nerco 120,000 123,000