EDITORIAL PAGE — Down but not out

At times, it seems as if practically the whole of the Canadian exploration fraternity has packed its bags for Chile or Mexico or Peru or some other distant land. But in spite of the serious barriers encountered by explorationists and miners north of the 49th Parallel (especially the uncertainties created by environmentalism and the seeming indifference displayed by some governments), Canadian mining companies haven’t completely forsaken their home turf. There are, in fact, several large and small mining projects in the development pipeline.

The biggest and most advanced is the Louvicourt project in Quebec, which will begin producing concentrates this year. Owned by Teck, Aur Resources and Novicourt (a Noranda subsidiary), the copper-zinc-gold orebody is scheduled to reach full, 4,000-tonne-per-day production in 1995. In a

less-than-customary twist, it’s the junior outfit, Aur, that is the operator. As significant as Louvicourt is, it is only a part of the rejuvenation of mining in northwestern Quebec. From small projects like the Donalda mine reported within these pages last week to Cambior’s stab at remining the Mobrun deposit, from MSV’s and Campbell’s attempts to revitalize the Chibougaumau area to Murray Pezim’s dabbling with a focused exploration effort in the Abitibi area, it is clear that this is one of the liveliest areas in the country.

In Ontario, the Holloway gold project near Matheson has cleared another hurdle on the way to development. Last week, we reported on a positive feasibility completed by owners Hemlo Gold, Freewest and Teddy Bear Valley. Development would entail spending about $55 million. Custom-milling is the favored processing option.

Out west, Eskay Creek, a small yet rich orebody, seems destined for development. The province, making the most of a bad situation ever since last year’s expropriation of Windy Craggy, issued Eskay’s owners a mine development certificate to demonstrate the government is “actively looking for business.” When developed, Eskay will be in the business of producing 210,000 oz. of gold and 9.4 million oz. of silver annually.

Also in British Columbia, Gibraltar Mines, an old producer with a new, aggressive attitude, is considering developing the Mt. Polley project. Ore from this 54-million-ton, low-grade copper-gold deposit would be processed at the existing Gibraltar mill at McLeese Lake. This one is far from a sure bet, but it’s an encouraging sign that the operators at Gibraltar, where the existing mine is at a standstill because of depressed copper prices, aren’t sitting on their hands waiting for the metal market to bail them out. In Saskatchewan, the uranium province, Cameco has received the OK to develop three deposits at its Rabbit Lake complex. On the gold front, a rich little mine might be in the making near La Ronge, where Waddy Lake Resources has gone underground to confirm initial results.

In Manitoba, Granduc Mining has been granted a first-stage development permit at its Keystone gold project.

In the north, we need only mention the word “diamonds,” while in the Maritimes there are at least a few exploration plays moving along. All and all, things could be much worse in the land that natural resources built.