Controversy growing over Shoal Lake mine

At issue are concerns related to a possible threat to Winnipeg’s drinking water source from abandoned mine tailings and a possible new gold mine at Shoal Lake.

The controversy has recently become heated and now involves concerned citizen groups, mining companies and the highest levels of both provincial governments. Manitoba Premier Gary Filmon and Ontario Premier David Peterson recently met in Quebec City to try to deal with the Shoal Lake controversy. The discussions will continue at the Sudbury conference where mines ministers from all the provinces will meet.

Shoal Lake, which is situated near the border between Ontario and Manitoba, is Winnipeg’s chief water source, providing the city with about 100 billion litres of water annually.

The Shoal Lake area has hosted a number of small gold mining operations over the years. More recently it has been the site of exploration programs by a number of mining companies. At least two significant gold deposits are known to occur in the Shoal Lake area.

Although the controversy has been brewing for a number of months, the recent premier’s meeting in Quebec is the first time Peterson and Filmon have met specifically to discuss the Shoal Lake situation.

Toronto-based junior mining company Consolidated Professor Mines (TSE) has spent more than $8 million at Shoal Lake during the past three years exploring a medium-sized gold deposit. Reserves at the Duport deposit stand at 2.29 million tonnes grading 12.0 g of gold per tonne and could be economically developed at a gold price of $400. The company has submitted initial environmental applications to develop the new mine, which would cost about $53 million to develop and would result in about 165 new jobs.

Meanwhile, Ontario has not yet decided whether the project will be designated and reviewed under the rigorous provisions of the Environmental Assessment Act.

“Consolidated Professor has no interest in confusing the issue of jurisdictional responsibility for the project,” said president Richard Dunlop in a letter to Ontario’s environment minister this year. “We will continue to work closely with the appropriate ministries, native groups and other constituents in the area to ensure that the Duport project will be developed in a responsible and judicious manner.”

A second significant gold deposit in the area is being explored by Kenora Prospectors and Mines (COATS) and Bond International Gold (TSE).

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