THE GRADUATING CLASS

The gold exploration boom that began in the late 1970s continues to beget new mi nes — 12 of them in the latest graduating class. Considering the thousands of p roperties explored each year and the millions of dollars spent, a new mine is a rare thing. And yet who can remember another 12-month period (from last summer t o this one coming) that saw so many new mines — a total of 8,645 tons per day o f new production. That will mean about 1,600 ounces of gold every day. Total rev enue from these new mines (at full production and today’s gold price) will be ab out $300 million. While the figure isn’t astronomical, it hardly puts gold minin g into the Sunset Industry category, especially since there is little likelihood of any gold mines closing this year. And it should be understood that expected new production in 1988 far exceeds this. In other words, gold mining is in a gro wth phase.

One of the more peculiar things about the new mines is their locations: at least one in every province and territory except Alberta and Prince Edw ard Island ( but even Alberta is experiencing a boom in placer gold mining). Since most of th em are in northern towns or isolated outposts, the even spread across the countr y is welcomed by economic planners. Some of the towns will be welcoming the new development all the more in light of recent developments in the forestry industr y, which could mean the closing of some marginal lumber operations.

Included in the list this year are producers that came on towards the end of 1986 as well as those slated to go into production this year. Most of t he mines a re small ones, even though the average production rate will be 720 tons per day at full capacity. If you knock off the top three producers — Hope Brook, Mascot and SherrGold — the average plummets to 316 tpd. Although company officials won’t always agree, some of the smaller mines shouldn’t be considered much more th an test operations. This isn’t always the case, however. One of the smallest, Bl ackdome, is already paying dividends despite its production rate of only 200 tpd.

There are a few oddities in this year’s class. Heap leaching made its appearan ce in Canada for the first time in 1986 and it is reflected in two of the new pr oducers from the Maritimes: Hope Brook and Gordex Minerals. The group also inclu des the first mines that can be attributed almost entirely to flow-though financ ing; D’Or Val’s Beacon and the Canamax-csa Bell Creek operation are good example s. While all of the operations are good for the economic health of their respect ive areas, SherrGold is actually responsible for saving a town. The only other m ajor source of revenue for Lynn Lake, Man., was Sherritt Gordon’s Fox mine which closed last year after running out of ore. Both the Star Lake (Starrex and smdc ) and the little Bootleg Gold Project (Vista Mines) will become the first pure g old producers in Saskatchewan in some years, while Mt. Skukum is ironically the first sizeable hard rock gold mine in the Yukon. Mascot will become the largest open pit gold mine in Canada once Hope Brook finishes with its pit in a couple o f years.