Windy Craggy phantom haunts CIM gathering

Halloween was still weeks away, but that did not prevent the ghost of Windy Craggy from stalking the District 6 annual general meeting of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM).

The theme of the Vancouver meeting was: “The future of mining in British Columbia: domestic and international opportunities”.

Not surprisingly, discussions of local exploration potential and how it compares with potential elsewhere gave rise to comments on the demise of the Windy Craggy copper property in northwestern British Columbia. In June, 1993, the province’s premier, Michael Harcourt, announced plans to create a park in the Tatshenshini-Alsek basin. The government then expropriated claims held by more than 20 companies or individuals, the most advanced being Windy Craggy. The deposit contains 297 million tonnes of 1.4% copper (plus gold and cobalt) and is estimated to have a metal value of $8.5 billion. The owner, Geddes Resources (TSE), is currently in negotiations with the government to determine a compensation figure.

John Willson, president of Placer Dome (TSE), conjured up the Windy Craggy phantom when, in a speech at the plenary session, he referred to the importance of political stability. “There is enough geological and price risk in our business without adding political uncertainties,” he said, adding, “I cannot overemphasize this fact.”

Willson pointed out that not many years ago, British Columbia was regarded as one the safest places in the world for mining investment. “Not so today,” he said. “At about the same time as the richest copper deposits in Chile are being brought into production to produce decades of wealth, jobs and tax revenues, here in British Columbia the government unilaterally bypassed its own `co-operative’ assessment process and turned one of the most promising copper deposits in Canada into a park.”

In addition to political stability, Willson singled out geological potential and corporate strategy as Placer’s criteria for comparing mining opportunities in different parts of the world.

He admitted that British Columbia’s geologic location “on the Pacific Rim of Fire” gives it excellent potential for hosting copper porphyries, zinc-lead-silver deposits and, to a lesser extent, gold occurrences. “But grades tend to be lower (here) than elsewhere”, he qualified. “For example, it is estimated that the size and grade of orebodies in Chile outstrip those of Canadian orebodies by a ratio of 2.5-to-1.”

This disadvantage is compounded by the fact that gold is Placer’s primary focus, whereas British Columbia’s prospective potential for the precious metal is regarded as low in comparison with parts of South America and the Asian Pacific Rim.

On the other hand, Anne Edwards, the province’s mines minister, said she is optimistic about mining prospects in British Columbia. As an example of her government’s support, she pointed to the program known as Explore B.C. Clive Johnson, president of Bema Gold (TSE), agreed with Willson that, in terms of exploration and development, British Columbia is less attractive than many other parts of the world. (One reason Bema shifted its focus away from North America in 1988 was because it saw environmental laws and regulations as getting only worse. The decision proved prophetic.) However, Johnson conceded that although excessive government regulations are a problem, they are not the biggest consideration.

“We are a business and, as a result, are looking for the biggest bang for our buck,” he said, adding that there simply are better opportunities outside of the province.