Another piece from my hometown newspaper. Randy Edison was my high school basketball coach keep it coming randy.
Playing a sound hand
The actions of mining companies are often viewed with skepticism, and
such is the case with the recent efforts by Abiting Inc. to identify (and
hopefully) develop the reserves at the former Major General
Resources-owned properties near King's Point.
Locals have hung on a thread of information about the property since the
first exploration activity took place in the mid-to-late 1980's. As time has
gone on, the skepticism has grown as locals have resigned to chalking
the activity up to just another effort by a junior exploration company to
create an interest in itself and raise some dollars from investors.
As the early talks of significant gold finds filtered out to the public the
initial reaction was one of delight as area residents, particularly
business people, hoped beyond hope that some form of mining
operation would begin and in turn create a number of jobs which would
then, in turn, solidify the local economy.
As first one potential developer and then another and still another took a
look at the property and walked away, these same people became
almost cynical in their assessment of the project and its so-called
potential. Being an area heavily cloaked in a mining and mineral
exploration history, locals should have known that all is not always as it
first appears and while everyone was excited over the possibilities of a
mine development, the excitement should have been bridled. This area,
above all others in the province, has witnessed first hand the ups and
downs of mineral exploration and mine developments. Afterall, we have
seen the Gullbridges, Whalesbacks and Little Bay Mines come and go,
and even these developments weren't a certain go the first day they
were discovered.
Mineral exploration and mining development takes time (the normal
gestation period for a mine is in the range of 10 years) and time is
something we all have plenty of. The worse thing that could happen as
Abiting Inc. busies itself with the task of outlining the true reserve at
Hammerdown and Rumbullion is to have the future of the project
jeopardized by speculation and idle gossip. Some locals have taken to
downgrading the Quebec company's efforts without even getting all the
facts. Some have gone so far as to call the efforts vain and still others
have suggested that a Voisey's Bay-like approach should be taken on
the project forcing any developer to process the ore on site.
The fact of the matter is that the reserves as they are now identified have
not proven sufficient to sustain the capital costs required to construct a
milling operation. Unless the reserves are significantly expanded
through this most recent exploration program, Abiting officials would be
foolhardy to try and convince any investors to get behind a project which
wouldn't provide the same return on their dollar as the current tentative
plan to see the ore milled at Richmont Mines, should things proceed to
that point.
Abiting officials have been forthright with their information and not trying
to hoodwink anyone into thinking they're going to shatter the gold-mining
world with their efforts on this project. The people working in the field
here locally are confident, however, of the abilities of those within the
firm who take these types of developments to the next stage of
development and the only assurance given is that this project is (and will
continue to) get a good hard look with an eye towards maximizing
potential. Doesn't it make sense that these people who are in the
business of, and earn their livelihoods by, making money from mining
would leave no stone unturned to find a way to make money off this deal.
As these people go about their business, the best course of action for
locals is to hope and pray the world gold prices remain favourable.
Nothing could spark a mine at this property more than a rise in the price
the product will fetch on world markets.
-- Randy Edison
I just can't believe how much this is being talked about in Springdale.
Steve Joy |
