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 80 of 115 E&MJ • DECEMBER 2018 79 MINING IN ONTARIO transactions: the purchase of four mining patents in 2017, consisting of over 160 acres of unexplored land adjacent to the past producing Edwards and Cline mines, followed by the purchase of Argo Gold's RockStar property, totalling in excess of 7,000 acres, in April 2018. Pat Dubreuil, president of Manitou Gold, sees Alamos Gold's success in the GLDZ belt as an indication of the potential for world- class deposits there: "Alamos Gold's explora- tion activity is quickly proving up 2 million ounces of defined reserves in the area. They have been consistently producing 100,000 oz of gold per year and have become one of the lowest cost producers in Ontario." Creating value through the project generator model With mineral prices stuttering and a lack of capital flowing into the junior space, the traditional junior business model of raising money for drilling activities is increasingly spurned in preference of a project generator model. One such company is Noble Mineral Exploration (NME), holding the Project 81 property, consisting of over 79,000 hectares of mineral rights in the Timmins/Cochrane area of Northern Ontario, located only 3 km north of Glencore's famous Kidd Creek mine, which has produced over 150 million tonnes since 1963. Due to the size of the land package NME owns, it has been able to develop its assets with strategic partners such as Spruce Ridge, MacDonald Mines, Orix Geoscience, CGG Geoscience and BECI Exploration Consulting. Vance White, presi- dent and CEO of NME, expanded on the type of mineralization in the vicinity of Project 81, and its potential: "These very large VMS (vol- canogenic massive sulfide) deposits occur in clusters which lend themselves to the oppor- tunity for satellite deposits, and these satel- lite deposits could host between 30 million and 50 million tonnes, with an institutional value of well over C$1 billion." Canadian exploration beyond Ontario Toronto is renowned for the global reach of its mining industry, but is also home to a number of junior companies with operations in other Canadian provinces. Some of the provinces outside of Ontario, while serving up logistical challenges, offer the benefit of under-explored land that often comes at a cheaper premium. In late 2016, Black Widow Resources rebranded to BWR Exploration, shifting its attention away from Ring of Fire targets in Ontario and towards the Little Stull Lake gold project in Manitoba, which was ac- quired from Puma Exploration. Neil Novak, president and CEO of BWR Exploration, ex- panded on the reasoning behind the change of direction: "We targeted projects that have historical resources on them and that needed further exploration to bring them along the exploration cycle from historical resource to a maiden compliant resource." Novak, whose previous company Spider Resources was dubbed the spark that lit the Ring of Fire, intends to prove this area of NE Manitoba, adjacent to the Ontario border, is an emerging gold camp of high potential: "The aim is to work over a few years with definition and delineation drilling to ap- proach the 1 million-ounce range," he said. Vance White, president and CEO, Noble Mineral Exploration.

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