In 2004, Canadian gold production reached its lowest level since 1987, totalling 128.5 t, a decrease of 8.7% compared with the 2003 total of 141 t. As a result, the value of Canadian gold production fell to $2.2 billion in 2004, down from $2.3 billion in 2003. The lower production was primarily the result of mine closures in Newfoundland and Labrador, Ontario, Manitoba and the Northwest Territories, combined with lower grades at some producing mines.

Ontario accounts for 55% of Canada's total gold production, followed by Quebec (19%) and British Columbia (16%). The other provinces and territories contribute the remaining 10%. Gold exports increased in 2004, with their value (including gold contained in scrap and base-metal concentrates) at about $3.45 billion, up from $2.75 billion in 2003 but with a 16% decrease in the amount of gold exported (78.8 t, down from 171.1 t in 2003). Imports were an estimated 75.6 t valued at $1178 million, up from 36.7 t worth $535 million in 2003.

In British Columbia, Bralorne Gold Mines Ltd. continued work on the Bralorne Pioneer mine. New resource figures released in April, based on the current bulk sampling program, indicate a measured mineral resource of 3425 t averaging 8.4 g/t gold, an indicated resource of 17 729 t at 11.0 g/t gold, and an inferred resource of 412 700 t at approximately 10 g/t gold. A pilot test-mill facility was built to treat a 10 000-t bulk sample. The company poured its first ounce of gold in April 2004. The Bralorne property comprises the former King, Bralorne and Pioneer mines that collectively produced some 127 t of gold from 1897 to 1971.

Northgate Minerals Corp. is proceeding with the permitting stage for its Kemess North mine development in northern British Columbia. The Kemess North project will increase the productive life of the company’s existing infrastructure in the region by more than 11 years and sustain some 450 jobs until at least 2019. Kemess North is an undeveloped gold-copper deposit located about 6 km north of the Kemess South mine. Annual metal production during the mine’s 13-year life is expected to average 7.5 t of gold and 51 000 t of copper.

In Manitoba, mining and milling operations at the New Britannia mine were suspended in September 2004. By January 2005, exploration efforts were unsuccessful at defining more ore and the mine owners, Kinross Gold Corp. (50%) and High River Gold Mines Ltd. (50%), decided to discontinue development at the mine, which is now on care and maintenance. New Britannia began commercial production in 1995 and exceeded its original eight-year mine life.

In Newfoundland and Labrador, Richmont Mines Inc. closed the Hammerdown mine in May 2004. In total, 40 058 t of ore with a recovered average grade of 12.88 g/t gold were processed during the year, compared with 87 659 t at a recovered average grade of 13.17 g/t gold in 2003.

In the Northwest Territories, Miramar Mining Corp. ended mining operations at the Giant mine near Yellowknife in July. The company’s only other producing mine, the Con mine, also in the Yellowknife region, closed in November 2003. The termination of mining operations in Yellowknife enabled the company to focus its full attention on development projects at Hope Bay and Back River in Nunavut.

In Nunavut, Kinross Gold Corp. reactivated the Lupin mine in March 2004 and is expected to continue production through to mid-2005. Kinross suspended operations at Lupin in 2003 owing to the poor economic performance of the operation. The plant and equipment were placed on care and maintenance pending the results of a review. The company decided to extract the shaft and crown pillars as well as previously developed remnant ore.

In Ontario, Barrick Gold Corp. completed a deal in July 2004 to sell the Holt-McDermott mine, adjacent land holdings, and the mill and mill-related facilities to Newmont Canada Ltd., which owns and operates the adjacent Holloway mine in northeastern Ontario. Newmont assumed ownership of the property in October following closure of the mine. In addition to acquiring the assets, Newmont also acquired the asset retirement and other environmental obligations associated with the mine. Newmont retained 25 former Barrick employees to continue with milling operations.

Cambior Inc.’s Mouska mine in northwestern Quebec resumed operations in October 2004 following the completion of a shaft-deepening program. The resumption of mining at Mouska provided high-grade ore for processing at the Doyon mill. Together with the Doyon mine reorganization, the company expects the Doyon Division (which includes both the Doyon and Mouska mines) to mill 834 000 t of ore in 2005 at an average grade of 6.5 g/t gold.

Agnico-Eagle Mines Ltd.’s LaRonde mine, also in northwestern Quebec, reported record production in 2004, with gold production increasing by 15% to 8.4 t (271 567 oz). The company reduced cash costs to $56/oz, down by 79% from the previous year, as a result of higher production, lower unit mining costs, improved prices for metals, and the elimination of production royalties. At the end of 2004, gold reserves at LaRonde were essentially unchanged at 159 t (5.1 million oz).

Inmet Mining Corp. completed a mill expansion at its Troilus mine, which increased average throughput to 18 500 t/d. The $16.5 million expansion involved the installation of a larger secondary crusher and new ball-mill circuit. Troilus is now fine-tuning the new metallurgical circuits of the expansion to achieve the expected approximate 2% improvement in gold recoveries for 2005.

Aurizon Mines Ltd. completed a feasibility study on its $84 million Casa Berardi project in northwestern Quebec. The study completes the second stage of the company’s development program for the project, which includes an initial 5.5-year start-up plan for the project, built around a mineral reserve based on drilling above the 700-m level. The pre-production time required to bring the project to commercial production is expected to be 18 months. The study also addressed the technical problems encountered prior to the mine’s closure in 1997.

Campbell Resources Inc. focussed its development activities on preparing the Copper Rand project to enter into commercial production by the end of 2004. The project was delayed by five months because of ground conditions and difficulty in securing a ventilation raise. The difficulties were resolved in February 2005 and the commissioning of other major components for the project was completed on schedule.

In Saskatchewan, Claude Resources Inc.’s board of directors approved the capital expenditure necessary to double the throughput of the Seabee mill from its current rate of 550 t/d to 1100 t/d. The Seabee mine and mill, located in north-central Saskatchewan, have produced in excess of 20 t of gold since they entered into production in 1991. The mine is a high-grade, narrow-vein underground operation with approximately 733 000 t of reserves and an additional 1.4 Mt of resources. Delineated gold-bearing structures at Porky Lake and the recently announced discovery at Santoy Lake are both within trucking distance of the Seabee mill. Batch processing of the Porky and Santoy Lake bulk samples is forecast for the second half of 2005. The expanded mill capacity and successful bulk sampling of Porky and Santoy could enable Seabee to expand gold production into the 2- to 3-t/y range by 2006.

The author is with the Minerals and Metals Sector, Natural Resources Canada.

Telephone: (613) 992-4401

E-mail: pchevali@nrcan.gc.ca

Source: http://www.nrcan.gc.ca/mms/cmy/2004revu/gol_e.htm