A stagnant gold price and a dearth of new discoveries continue to inhibit the flow of exploration capital into the provinces of Nova Scotia and New Brunswick.
Nova Scotia’s Department of Natural Resources (DNR) estimates that exploration expenditures dropped to $4-6 million in 1991, from $11 million in 1990. In February, the gravity of the situation was reinforced when diehard Bluenoser Coxheath Gold Holdings (TSE) put all of its assets, including the Tangier gold mine, up for sale.
In northern New Brunswick the decline is more moderate, but this has less to do with a healthy industry than with Noranda’s (TSE) need to find new ore around the aging Brunswick mine. With data from an unofficial telephone poll, the Department of Natural Resources and Energy estimates expenditures dipped to $9.5 million in 1991 from $11 million in 1990. Of that sum, $6 million was spent by Noranda and affiliate Brunswick Mining and Smelting (TSE). Discoveries that helped boost optimism in New Brunswick last year have yet to pan out. “It’s not looking as favorable as it did a year ago,” says Brunswick geologist Timothy Babin, referring to the Northend zone discovered about two kilometres from Brunswick. He says reserves outlined at Northend fall well short of the tonnage required to justify an exploration drift from the mine. In a younger package of volcanics near Plaster Rock, follow-up results of drilling by NovaGold Resources (TSE) and Kennecott on the Sewell Brook zinc discovery have also proved disappointing.
Still, new geological concepts have helped stir an interest in base metal exploration in both provinces. The movement is especially noticeable in Nova Scotia, where exploration has taken a complete about-face since the gold rush of the second half of the 1980s.
“One of the problems we had in Nova Scotia is that none of our gold properties developed into a successful mine,” said Paul McCulloch, project geologist for Nova Scotia’s DNR. “Now, there’s been a swing over from gold to base metals.”
He says that the expenditure estimates for Nova Scotia are misleading. If anything, he says, activity is growing as expensive, advanced gold exploration plays have been replaced by cheaper, grassroots base metal projects.
Most of this new effort is being directed at Carboniferous-age rocks in northern mainland Nova Scotia and Cape Breton. Companies involved include Rio Algom (TSE), Phelps Dodge of Canada, Scotia Prime Minerals (ASE), Westminer Canada, Cominco (TSE) and the Minas Mineral Syndicate.
Other targets include the Stirling Precambrian belt in southeastern Cape Breton Island, where Falconbridge has been drilling on several properties. New players in New Brunswick include BHP-Utah Mines, Freewest Resources (TSE), Phelps Dodge and Teck (TSE). They are focusing on both the Bathurst base metal camp and the Plaster Rock area.
“We are continuing an aggressive program in both provinces,” said Michael Gray, vice-president of exploration for Phelps Dodge of Canada. Exploring near the Heathe Steele mine, Noranda made two new discoveries in 1991. Follow-up drilling is in progress on the HC-4 zone and the C-North zones. Outside the camp at Mackenzie Gulch, Noranda has staked 150 additional claims and launched a drilling program.
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