Juniors more active than ever in Manitoba

Manitoba is currently experiencing considerable mineral exploration and mine development by the junior mining sector. It is possibly the most activity ever by juniors in the province, with more than 60 companies involved, either on their own or through joint partnerships. This involvement ranges from minor carried interests to one- or two-person companies working small properties, through to extensive exploration programs and mining operations. The elevated activity has kept the services industry in the north busy. contractors, a consultants, suppliers and bush airlines have felt the impact.

The province has seen a marked increase in exploration in general since the 1982-83 recession, with annual expenditure levels the last three years near or above $30 million compared with $17 million, for example, in 1983.

Claims staked, diamond drilling and the number of active companies and projects are up substantially. For 1986, exploration expenditures are estimated at about $35 million; claims staked are up 121% over 1985; drilling is up 14%; individual projects up to 244 from 201 in 1985; and assessment reports submitted up 7%.

This expansion, in large part, is due to gold exploration and development by junior mining companies using flow-through share financing.

A rough phone survey conducted in December, 1986, by the Exploration Services Section indicated that at least $27 million was spent in 1986 sing flow-through and approximately $17 million of this by junior companies. Sixty-five of 1985’s 201 reported exploration projects were by junior companies; and in 1986, 137 of the 244 reported projects were by juniors.

Of the 244 exploration projects in 1986, 148 were for gold, an increase of 41% over 1985. Of the more than 60 juniors active, only three or four a re into exploration for commodities other than gold, principally base metals.

Manitoba for years has been well known for the few dominant major mining and exploration companies such as Hudson Bay Mining & Smelting, Sherritt Gordon Mines and Inco Ltd.

Other majors currently active are Noranda, Falconbridge, BP Canada (with offices in Winnipeg), Cominco, American Barrick, Esso Minerals, Homestake, Outokumpu, Westmin, Rio Algom and the crown corporation Manitoba Mineral Resources.

Clearly by simple numbers, there are many more junior companies working in the province and for 1986 it is estimated they accounted for well over 50% of the total exploration expenditures.

As a result of this elevated activity, Manitoba saw in 1986 the opening of its first gold mine since 1948, the Sherrgold Inc. MacLellan mine near Lynn Lake, at an investment of $40 million. The Tartan Lake gold mine of Granges Exploration and Abermin Corp. officially opened May 29 this year at a capital cost of $17 million.

Pioneer Metals Corp. will spend $18 million to open its Puffy Lake gold mine by year-end and a production decision on the Farley Lake gold deposit owned by Manitoba Minerals and Hudson Bay (albeit not junior companies), is expected next year. Developments in the Snow Lake area by Nor-Acme Gold Mines, Comiesa Corp., Silver Hart Mines and Zenco Resources, bodes well for potential production from the variety of gold deposits in this camp. Investment over $100 million

If all these projects see even a modest level of success, more than $100 million will have been invested in northern Manitoba between 1986 and 1989, possibly creating 600 jobs.

Mineral activities in Manitoba are normally reported from north to south through the major geological provinces, Churchill-Proterozoic, Superior-Archean and Paleozoic cover and the main greenstone belts such as Lynn Lake, Flin Flon and Rice Lake. Lesser well-known belts are the Seal River in northernmost Manitoba and the Gods, Oxford, Island Lakes and other smaller belts in east-central Manitoba. The famous Thompson nickel belt constitutes the boundary of the Superior and Churchill provinces in western Canada. D’or Developments in joint venture with North American Metals Corp. has located e arsenopyrite-gold mineralization on its 122,000-acre exploration permit. r North American can earn a 50% interest in the project by making staged o expenditures totalling $1 million over four years.c

In the Lynn Lake district, Sherrgold Inc., 60% owned by Sherritt Gordon, poured its first dore bar at the MacLellan mine on Aug 25, 1986. With o mineable reserves of 1.6 million tons at 0.21 oz per ton and mill capacity of 1,000 tons per day, expected annual gold production is 65,000 oz.

Agassiz Resources has a 7% royalty interest in this production. Novamin Resources is a joint partner with Sherrgold in properties adjacent to the west of the MacLellan mine.

Just south of Lynn Lake, Sherrgold, in joint venture with Trans America Industries, has embarked on a large exploration program along the “Johnston Shear” in the Wasekwan Lake area.

To date, drilling on the T1A zone has outlined a geological reserve of about one million tons of 0.09 oz. South of Wasekwan, Balcor Resources, in partnership with Jalna Resources, has promising drill results on the Lasthope gold mine property.n

The prolific Flin Flon-Snow Lake belt is seeing a great deal of activity by major and junior companies, particularly the latter. Granges, with 50% joint venture partner Abermin, opened the Tartan Lake gold mine May 29.

With a total investment in the property of more than $20 million, current reserves of 513,000 tons at 0.349 oz and a 500-ton-per-day mill rate, the projected annual production is 50,000 oz. Granges active

Granges, a highly successful junior in recent years, is quite active in other parts of the belt and the province. It has encountered prospective mineralization in its large Alberts Lake and Pine Bay gold projects and its Morgan Lake (zinc- copper) project. It holds a 19.8% interest in the Trout Lake (copper- zinc-gold-silver) mine operated by Hudson Bay where the rich “North Zone” was recently discovered.

Nor-Acme Gold Mines recently completed an agreement whereby High River Resources can earn 60% of the former gold producer at Snow Lake, which operated between 1948-1955, by spending $6 million over the next four years on extensive underground exploration. Indicated reserves are 2.8 million tons at 0.16 oz.

Agassiz Resources, through its subsidiary Comiesa Corp. in joint venture with Cobra Emerald Mines and G.D. Resources Inc. have formed Snow Lake Gold Corp. to construct a $5.8-million gold recovery plant to commence this December to recover approximately 70,000 oz of gold from the old Nor-Acme arsenic concentrates. Nor-Acme holds a carried interest.

Silver Hart Mines, through its newly-formed subsidiary Snow Lake Mines, is conducting an intensive program on its 32-claim property just north of Snow Lake and the company feels it has outlined sufficient reserves to support a 1,000-ton-per-day operation in the immediate future.

Earlier work by Gold Fields Mining Corp. and Hudson Bay estimated 220,500 tons at 0.44 oz gold per ton.

Just north of Silver Hart, Zenco Resources continues to explore its Squall Lake gold property. In 1985 reserves were given at 750,000 tons of 0.1 oz. Flin Flon activity

The Varna group of Varna Resources, Noko Resources and Marker Resources has carried out an extensive gold program on a variety of properties in the Flin Flon belt and is continuing in 1987.

Other junior companies active for gold in the belt are Goldbrae nts, Catear Resources, Thompson Mines, W. B. Dunlop Ltd., Ray-Dor Resources, Hawk Mountain Resources, Almaden Resources, Snow Lake Exploration e and Westfield Minerals, if the latter firm could be classified as a junior company.

Cons. Callinan Flin Flon Mines is a joint venture partner with Hudson Bay Mining on the newly- discovered Callinan copper-zinc deposit just north of the Flin Flon mine. A development agreement between the two companies was signed in February.

In recent years the more remote Superior Province greenstone belts of east-central Manitoba have finally received considerable attention. In the Island Lake belt, Bighorn Development
Corp. and Wydmar Resource Enterprises have conducted a large program of drilling and underground rehabilitation on the old High Rock Island gold occurrence.

The companies claim a geological inventory of 348,000 tons grading 0.45 oz. Other companies active in the general Island Lake region are Midway Lake Minerals Corp., Quiet Bay Minerals Corp., River Oaks Gold Corp. and Claude Resources Inc.

In the Oxford-Gods-Knee Lake belts, besides some major companies, juniors that have been recently active are: Pluton Resource Corp., Donegal Developments and Mid- North Resources. Further east, Tanqueray Resources and partner Westmin have encountered some gold values in drilling at Kistigan Lake. Further north, Polestar Exploration Inc. and Barringer Magenta, also in partnership with Westmin, have drilled at Utik Lake.

Along the Fox River ultramafic complex, the northeast extension of the n Thompson belt, International Platinum Corp., in joint venture with BP Canada has reported platinum values in recent drilling. Greenstone belts

The smaller greenstone belts of the Superior Province in southeast Manitoba, Rice Lake, Bird River and Falcon Lake, have been prospected for more than 70 years. They are close to Winnipeg and Kenora and accessible by roads. Many junior companies and prospectors have been active in this region.

The San Antonio gold mine at Bissett operated from 1933 to 1966 and a half-dozen other smaller gold mines produced in the 1930s and ’40s. San Antonio Joint Venture continues to do exploration work at the old mine site.

In the Rice Lake belt many modest to large programs are being carried out by small- to medium-sized junior companies. They include: Kangeld Resources, Pronto Explorations, Tulsa Resources, Esstra Industries, Orenda Resources, Canhorn Mining Corp., Mutual Resources, Silver Sceptre Resources, Goldbeam Resources, H.R.N.D. Mining and Milling, Schmirf Explorations, Myriad Mineral Resources and Hat Resources along with local prospectors.

Junior companies involved with the Bird River belt include Tornew Mines with lithium interests and Dynamic Mining Exploration with chromite properties. In the Falcon Lake area, Whiteshell Ventures is trying to reactivate the old Sunbeam gold mine. Others in this area include Westley Mines, Almaden Resources and Troymin Resources.

Providing that the flow-through program escapes major tax reform modification and the price of gold remains firm, it is anticipated that exploration and mine development in Manitoba, in large part by junior companies, will continue at its present level or higher for the medium term. In light of the currently besieged base metals industry in northern Manitoba, this is a welcomed trend indeed.

The writer acknowledges the input of Peter J. Doyle in the preparation of this article. Mr Fogwill works for the Exploration Services Section, Mines Branch, Minerals