Funding gives Quebec mines opportunity for new lease on life

A little government money goes a long way underground, says Jean-Guy Rivard, president of Richmont Mines (TSE).

Richmont is one of five mining companies in la belle province to snag a share of a $5-million provincial government program aimed at keeping Quebec’s mines alive.

Quebec’s Ministry of Energy and Resources is picking up half of the $992,000 bill for the underground exploration program Richmont initiated at its Francoeur mine in the Rouyn-Noranda camp last month.

Richmont’s plans include 820 ft. of drifting on the 14 level, 1,970 ft. on the 13 level and just over 21,000 ft. of underground drilling. The program is aimed at sustaining production above 180,000 tons a year and increasing known reserves, thus extending the life of the mine.

The Francoeur mine has been a producer, on and off, for the past 55 years. Since it took hold of the reins in 1985, Richmont has extracted 800,000 tons of ore at an average grade of 0.18 oz. gold per ton.

As of Jan. 1, 1995, proven and probable reserves amounted to 993,000 tons at 0.2 oz. gold per ton.

The company has been able to keep proven and probable reserves at Francoeur steady at about 1 million tons since production began, “but maybe after 800,000 tons it’s getting more difficult,” says Rivard.

He adds that the cost of expanding reserves through underground exploration (rather than surface drilling) can be prohibitive.

“Even if you have a mine, you always have to pay for exploration, and maybe you’ll break your neck in the long run. So we’ve been fighting to get some kind of arrangement with the government so we could do some exploration underground.”

The prospect of Francoeur and other mines having to close in the near future is exactly why the “mise au jour de reserves dans les mines” program was initiated in November, 1993, said mining engineer Andre Jean of Quebec’s energy and resources ministry.

“The goal is to avoid the closing of mines where we can observe a decrease in ore reserves.”

For about five years, Rivard worked hard at pressing the ministry to help fund underground exploration of new targets at producing mines. “You don’t get a program like this doing nothing.”

In order to qualify for the program, a company must present the province with a program to explore a promising new target.

“If you have an orebody, and you can show the government that you need exploration to increase your reserves and give longer life to your mine, you may qualify,” Rivard explains.

In order to apply for financial aid a company must demonstrate that it has identified a new target of potential mineralization, as opposed to known reserves which it may want to upgrade.

Rivard adds that some mine operators may not qualify for funding because they, unlike Richmont at Francoeur, do not own sufficient lands around a mine to be able to explore a new target at the same location.