Manitoba's Mineral Industry

Exploration and Development Highlights 2002

Development
Exploration
Gold
Base Metals
Diamonds
Platinum Group Metals
Specialty Minerals
Government Initiatives and Policies


Exploration and deposit appraisal expenditures in Manitoba remained steady in 2002 and at an estimated $30.2 million are expected to be comparable or slightly higher than the preliminary estimate of $28.3 million spent in 2001. Overall investment in mineral exploration in Canada in 2002 continued to be pressured by global economic and political uncertainties that suppressed consumer demand for mineral commodities.

Development

Hudson Bay Mining & Smelting continued to advance The 777 Project in Flin Flon. At $400 million, this is the largest single capital investment in the company’s history. The project comprises 6 components. Subprojects already completed include: expansion of the zinc pressure leach plant and construction of a new zinc cellhouse (2001); environmental upgrades to the copper smelter (2000); and the opening of the Chisel North mine in Snow Lake (2000). Sinking of the 1530-m shaft at the new 777 mine in Flin Flon was completed in July 2002. Lateral development will take place throughout 2003 and full production of 1 million tonnes per year is expected by August 2004. The 777 deposit contains mineable reserves and resources of 14.2 million tonnes grading 5.09% zinc and 2.53% copper.

In Thompson, the construction phase at Inco’s Birchtree mine deepening project was to be completed this year. Deepening Birchtree will enable the development of 13.6 million tonnes of ore grading 1.79% nickel and will allow daily production to nearly double to 3175 tonnes.

Exploration

Gold

The resurgence in the price of gold in 2002 spurred interest in a recent gold discovery and has renewed interest in previously discovered gold deposits in Manitoba.

International Curator Resources and Rare Earth Metals conducted follow-up drilling at their Assean Lake gold property northwest of Thompson. In 2001, drilling intersected the Hunt Zone that has subsequently been tested over a 600-metre strike length and to a depth of 350 metres in 26 holes. The Hunt Zone has returned grades of up to 9.37 grams per tonne gold over 8.15 metres. Drilling of geophysical and MMI (mobile metal ion) anomalies in 2002 intersected new gold zones and encouraging nickel grades on the eastern portion of the large property. Recent EM surveys will be followed by up to 4500 metres of drilling that are planned for this winter.

Moving the drill at Bema's Monument Bay project, winter 2002.In early 2002, Bema Gold optioned the Monument Bay gold property near the Ontario border from Wolfden Resources. Bema completed a successful winter drill program, further defining the high-grade Twin B Zone and upgrading the initial inferred resource to 500 600 tonnes grading 18.3 grams per tonne gold, representing a resource of approximately 300,000 ounces of gold. In the summer, a regional mapping and sampling program and airborne geophysical survey were conducted. Follow-up drilling focussed on the Seeber West Zone that returned intersections of up to 2.0 metres of 8.79 grams per tonne gold. A 10 000-metre winter drill program is planned to upgrade the resource base at Monument Bay and to test exploration targets on their permits.

TVX Newmont Americas and partner High River Gold Mines completed linecutting and were to commence drilling on the Three Zone northwest of the New Britannia mine at Snow Lake. The Three Zone provided feed to the Snow Lake operation in 1994-95 when New Britannia was being developed. Previous drilling at the zone had intersected encouraging gold grades below the 450-metre level.

First Majestic Resource Corp. completed biogeochemical surveys and mapping at their Wekusko–Ferro gold properties near Snow Lake. Results will be used in conjunction with geophysics to delineate drill targets for a winter drill program.

Foran Mining completed a trenching program on their Otter Lake gold property south of Flin Flon. Foran also carried out sampling of old trenches on a gold property under option at North Star Lake.

Wildcat Exploration completed a proposed 5000-metre drill program on their extensive holdings in the Bissett camp in southeastern Manitoba. Drilling focussed on the past-producing Poundmaker property, where previous drilling intersected 2.84 metres of 9.0 grams per tonne gold.

Base Metals

Hudson Bay Exploration continued ground follow-up work testing Spectrem airborne targets in the Flin Flon–Snow Lake Belt as well as beneath the Paleozoic in the Hargrave Lake–Moose Lake area. Hudbay’s parent company, Anglo American Exploration, flew Spectrem airborne surveys over their Rock Lake permit north of Thompson. Ground geophysics and drilling is planned for 2003. Anglo also plans to conduct airborne geophysics on their permit southeast of Thompson in early 2003.

Bell Resources conducted trenching, mapping and geophysical surveys at their Cleaver Lake property east of Flin Flon. Recent work by prospector Bruce Murray resulted in the discovery of a new copper showing which has returned values of up to 4% copper plus minor zinc and gold values. Bell plans to conduct drilling on the property in 2003.

Inco Technical Services completed an extensive program of geophysical surveys and drilling on high-priority targets in the Thompson Nickel Belt, in an attempt to discover new mineralization near current mines or previously known deposits.

Nuinsco Resources completed additional linecutting and UTEM surveys at the Mel property north of Thompson, in a newly defined extension of the Thompson Nickel Belt (TNB). Drilling to test newly defined conductors is planned for early 2003. Nuinsco is attempting to earn 100% interest in the property from Inco, the project operator.

Donner Minerals and Falconbridge reached an agreement to explore Falconbridge’s Stephens Lake property near Gillam. The property covers what Falconbridge interprets as a potential extension of the TNB. The partners completed airborne and ground geophysical surveys and a winter drill program is planned.

Teck Cominco completed a 5-hole drill program on their permits in the Baldock Lake area north of Thompson.

Aur Resources conducted drilling at their Counsell Lake property near Lynn Lake, following up on an encouraging copper zone discovered in 2001.

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Diamonds

Edwin Gaucher of Explorateurs-Innovateurs de Québec Inc. conducts geophysical work at the company's Oxford Lake property, with the assistance of local prospectors Harold Frieses and Brian Beardy.Both junior and senior diamond explorers continued to acquire prospective ground in the Knee–Oxford lakes and Gillam areas. Airborne and ground geophysics and till sampling were conducted by companies such as Valerie Gold, BHP Billiton/Dunsmuir Ventures, Iriana Resources, Marum Resources, Kennecott and De Beers. Valerie Gold completed drilling at their Crystal property east of Gillam. In the Hudson Bay Lowlands, Foran Mining acquired a permit in the Kaskattama River area east of York Factory and completed airborne and ground geophysical surveys.

Platinum Group Metals

Gossan Resources conducted drilling on the Peterson Block of their Bird River property, testing geophysical anomalies for PGE and base metals. Earlier prospecting and resampling of drill core from an adjacent property encountered encouraging base metal and PGE values. Additional drilling is planned for 2003.

Specialty Minerals

Increased exploration for tantalum- and cesium-bearing pegmatites occurred in the Bernic Lake area in southeastern Manitoba. Companies conducting drilling programs included Tantalum Mining Corporation east of the Tanco mine site, Avalon Ventures near Shatford Lake and Emerald Fields Resource Corporation east of Bernic Lake.

Rare Earth Metals conducted mapping and prospecting at their Eden Lake rare earth metals property east of Lynn Lake. New work by Brandon University’s Dr. Hamid Mumin documented a carbonitite complex, the first to be discovered in Manitoba.

Government Initiatives and Policies

Increasing competition in the global marketplace is one of the major challenges facing the Canadian mining industry today. Manitoba has addressed the challenge with enhancements to investment incentives, regulatory processes and access to information including

  • the renewal of the Mineral Exploration Assistance Program and the Prospectors Assistance Program for an additional three years;

  • the introduction of the Manitoba Mineral Exploration Tax Credit, a 10% tax credit for Manitoba investors;

  • amendments to The Mines and Minerals Act and regulations to simplify regulatory processes and reflect the changing nature of the industry; and

  • ongoing development of internet data delivery with recent additions to the GIS Map Gallery including twenty-one 1:250 000 maps as well as drill core, geochronology and mineral occurrences data.

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