Another Hemlo?

A mere six years have elapsed since news of the fabulous Hemlo discoveries rocked the mining world. Yet details of another gold discovery, which displays geological parameters of Hemlo-size proportions, are being greeted with relative quiet by the mining community.

At Courageous Lake, 130 miles northeast of Yellowknife, N.W.T., partners Noranda and Getty Resources are mounting a $6.3-million program designed to test the Tundra deposit.

In preparation for spring breakup, Noranda flew in 13 Hercules aircraft loaded with equipment and supplies.

Although official reserves stand at 1.3 million tons grading 0.28 oz. gold per ton, drilling to date suggests reserves could be increased to well over 20 million tons of a similar grade.

Yellowknife sets 5-year goal

Nothing if not ambitious, Giant Yellowknife Mines is embarking on a 5-year program aimed at expanding gold production to 300,000 oz. per year from the current 200,000 oz. The cost of the entire program could approach $100 million.

Currently, the company produces gold at its mines in Northwest Territories and in the Timmins area of Ontario.

The thrust of the new program will be underground development at Yellowknife combined with open-pit production and the introduction of heap leaching at Timmins.

The age of the Loonie

Goodbye dollar bill. Hello dollar coin.

“The average guy on the street loves the new coin,” says Murray Church, communications director of the Royal Canadian Mint, but then again, the average guy on the street doesn’t have a choice: the “Loon coin” is here to stay.

This week, about 40 million of the coins, which are made of an amalgam of nickel (about 91.5%), with an aureate coating of copper and tin that imparts a lustrous bronze colour to the coin’s appearance, began circulating in major Canadian cities.

More than just another coin, the new dollar piece is acknowledged to be the most significant change to our coinage system in the past 50 years. There may be some doubters, but we think the country will take to the so-called “Loonie” with enthusiasm.

Gold mines spark interest

There’s been a lot of buyer interest since Falconbridge announced it was considering selling the Owl Creek and Hoyle Pond gold mines in Timmins. Ont., according to Falco Chairman William James.

Then again, the company’s plans regarding the two mines, which last year produced 63,000 oz. gold, are far from definite.

James says several options are being considered, including the formation of a stand-alone gold company, shares of which would be sold to another company or the public.

If the right price is not forthcoming, Falco might just hang on to the mines. Cash flow from the operations is about $23 million annually.

Lac des les takes shape

Madeleine Mines has a major program under way at Lac des iIles, Ont., northwest of Thunder Bay, which will see Canada’s first platinum-palladium mine in full-scale production within a year.

The big, open-pit deposit will be an extremely low-cost operation that should prove quite profitable.

The company’s 3,000-ton mill and crushing plant at its permanently closed copper mine in Quebec’s Gasp region has been dismantled and is now ready to be shipped to the new site.

Rejecting participation from any of the major mining companies, J.P. Sheridan, who has zealously held on to this ground for several years, has elected to “go it alone” — right through to the refined metals, and that includes total financing.