Engineering & Mining Journal

DEC 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 79 of 115

78 E&MJ • DECEMBER 2018 MINING IN ONTARIO a market cap of C$1 million. Now we have a C$250 million market capitalization with strong growth potential." The Harte Gold leadership team was joined by Ontario premier Doug Ford and the Minister of Energy, Northern Development and Mines, and Indigenous Affairs, Greg Rickford to cut the golden tape and officially open the mine that has been years in the making. Roman thanked the town of White River and the Netmizaaggamig Nishnaabeg and Biigtigong Nishnaabeg First Nations for their continued support, and spoke of how the Sugar Zone mine will revitalize the com- munity in northwestern Ontario. Exploration in Ontario: The hunt for the next world class deposit As impending mine closures for the major players approach, the eyes of the junior community are widening with an acute sense that new greenfield projects of sub- stantial proportions and quality will have to be found, or acquired, in the near future. In a tier one jurisdiction with little threat of political instability halting production, the prospect of a high-grade discovery in Ontario is tantalizing for all involved in the industry. The Ring of Fire has yet to catch light, as the two proposed 300-km all-season roads necessary to access the remote Eagle's Nest project became caught up in lengthy First Nations consultation. However, a turning point came in 2017, as Noront Resources changed its approach, deciding to make the Indigenous peoples proponents of the ac- cess roads, enhancing their participation in the EA process. Regarding the construction timeline, Alan Coutts, CEO of Noront Re- sources, expects EA work on the roads to be completed by the beginning of 2020, with construction due to start immediately after- wards: "Construction will start on the Eagles Nest mine once the permitting process is fin- ished and physical construction of the roads has begun," he said. A high-grade discovery at Red Lake The Red Lake Gold Camp, northern Ontario, is home to Goldcorp's Red Lake mine, one of the largest gold camps in Canada and the world. It is also the location of a hive of exploration activity, as a variety of juniors jostle for a share of the spoils in a district that has produced over 29 million oz of gold since 1949. Vancouver-based junior Great Bear Re- sources (GBR) caused a stir in the Canadian mining community in August 2018, when results of its high grade gold discovery at the Red Lake Camp announced intercepts of 26 g/mt over 16m, and 68 g/mt over 7m. Since the announcement of the drill results at the Dixie project hinge zone, GBR's share price rose from C$0.50 to C$1.80 in less than a month, reaching over C$3.30 by mid- October 2018. Chris Taylor, GBR's director, president and CEO, commented on GBR's remarkable results: "Not one drill hole has failed to hit gold at the Dixie limb." Toronto-based investment banking firm, IBK Capital, orchestrated a C$10 million private placement for GBR on August 24th 2018, which included a C$4.8 million in- vestment from Rob McEwen. Michael White, president and CEO of IBK Capital, is bull- ish about the potential of the discovery: "A high-grade deposit of this size, concentrated in a near vertical shoot or hinge, is straight- forward to mine, and such a discovery could easily trade through C$1 billion dollars in value," he proclaimed. The best place to find a new mine is in the shadow of an old one Continuing the theme of juniors focusing ex- ploration on gold-rich, past producing areas, Manitou Gold is also following the adage that 'the best place to find a new mine is in the shadow of an old mine'. Its acquisition of 25% of the Goudreau-Lochalsh deforma- tion zone (GLDZ belt) came in two separate Stephen Roman, chairman, president and CEO of Harte Gold. Michael White, President and CEO, IBK Capital.

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