UPDATE: MINING IN NORTHWESTERN ONTARIO
Precious metal prices strengthened in early 2019, therefore providing direct benefit to New Gold Inc., Harte Gold Corporation, Barrick Gold Corporation, Goldcorp Inc. and North American Palladium Ltd., and their mines in Northwestern Ontario! As of January 31
st, the price of gold reached $1321.00 (USD) per ounce and palladium climbed to $1360.00 (USD) per ounce.
Robust gold prices provide a level of confidence with respect to future mine development including: Greenstone Gold’s Hardrock Mine, Treasury Metal’s Goliath Project, Pure Gold’s Madsen Mine and First Mining Gold’s Springpole Lake Project.
Greenstone Gold (Centerra Gold and Premier Gold) have $54M budgeted for 2019 expenditures at the Hardrock Mine, including: detailed engineering, infill drilling, indigenous consultation, permitting, provincial EA completion, project support and property acquisition. If all time lines are met Greenstone Gold states that a production decision could be made in late 2019, with construction leading to production by 2021.Open pit mine life is 15 years, with underground resources (future shaft) significant as well.
Treasury Metals anticipates that the Federal EA for the Goliath Deposit will be completed by mid-year. A business decision on construction will then be made by the end of 2019;if that decision is positive, mine and mill construction could begin in 2020. Mine life (open pit and underground) is 13 years.
Pure Gold will complete their Feasibility Study for the Madsen Mine project (located west of Red lake) in early 2019. A decision on production will follow. In addition metallurgical, infrastructure and development studies are proceeding. Current gold resources suggest a 14 year mine life.
First Mining Gold continues work with the Federal government on the Environmental Assessment (EA) for the Springpole Lake Gold Deposit, located east of Red Lake. The request to Ontario for all weather road access started in 2018.
Lithium remains a sought after commodity globally for high temperature glass and electric vehicle applications. Some oversupply in the marketplace has depressed the price in the short term. Electric vehicle demand will ramp up significantly by 2025. The Northern Miner newspaper forecast that 17 million electric vehicles (EVs) will sold in that year alone.
Exploration projects by Avalon Advanced Materials (N. of Kenora), Frontier Lithium (N. of Red Lake), Ardiden (NE. of Armstrong) and Rock Tech Lithium (S. of Beardmore) have lithium deposits totalling approximately 20 million tonnes, that potentially can assist to address EV demand 5 years out. The global industry is shifting toward hard rock deposits, as opposed to brines, making the Northwestern Ontario deposits extremely attractive.
Zenyatta Ventures Ltd. (Zen Graphene Solutions) have initiated a bulk sampling program on the Albany Graphite Deposit located proximal to Constance Lake First Nation and Hearst. 990 tonnes of ore is being drill extracted by reverse circulation drilling, which will then be refined by SGS Laboratories to 99.8% pure “graphene pre-cursor material”. The final product will be then be available for customer testing, with the graphene market being the priority.
Superior Lake Resources is looking to reopen the Winston Lake-Pick Lake Mine Zinc Mine located north of Schreiber. Potential production is forecast, by the company, to commence within 3 years. Two million tonnes of 15% zinc ore will feed a 1000 tonne per day mill, for 8 years.
For more information on these projects and how we can help you in the mining services industry please contact John Mason - Project Manager-Mining Services CEDC at
jmason@thunderbay.ca or view more material at
www.ThunderBayCEDC.ca. For more information on investing in or moving to Thunder Bay visit www.GoToThunderBay.ca.
