You could be right, Buckey. Perhaps 2001 will be a mining year. Interesting post on SH.
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What a rush
By Rob O’Flanagan/THE SUDBURY STAR
Call centres and shopping complexes have dominated discussions about new economic activity in Sudbury
for the past two years. But the big money is still in the ground, say prospectors, and heated exploration
activity, backed by some of the world’s largest mining companies, is a sure sign that mining exploration is
booming in the region.
It may be a quiet boom, but it is a boom, nevertheless.
The Sudbury office of the Ontario Geological Survey is humming with claim staking activity, and prospectors
say a “rush” is on to find valuable minerals in the Sudbury mining district. Platinum Group Metals (PGM) are
fast outstripping nickel and copper as the rare metals of choice.
“We’ve been very busy over the last year,” says Mike Cosec, district geologist with the Ontario Geological
Survey in Sudbury. “This has been the busiest exploration season in a decade. In the last year, we have had
four junior mining companies open offices in Sudbury.”
Despite the feverish activity, skepticism still abounds among mining analysts who have clear memories of an
unfulfilled platinum and palladium exploration boom in the eighties. And no one can predict whether prices
for PGM will remain at their current, all-time high levels.
But junior exploration companies and prospectors say high prices are all but guaranteed for several years to
come, given the increased demand for PGMs in the auto industry, and the uncertain supply of Russian
platinum, palladium and rhodium.
Many in the industry say the present boom is legitimate, and will result in PGM mines.
Exploration companies today make fewer outlandish claims, and are more guarded about their activities,
says Sudbury-area prospector Terry Loney of Klondike Bay Resources, and Robin Dunbar, president of
Mustang minerals.
The mining industry, Loney says, is still reeling from the Bre-X fiasco in which fabricated gold findings
caused problems for mining stocks.
But the skepticism that the incident caused is beginning to fade under the hot glow of exploration in the
Sudbury region.
Exploration companies are streaming into the area, sending personnel and equipment into the bush in the
Sudbury mining district.
“The Sudbury area is really hot right now,” said Loney, whose company has holdings in the Wanapitei Lake
area. “We are seeing a quiet boom. There isn’t a lot of hype and hoopla, mostly because of the Bre-X
scandal.
“These days, prospectors must have real proof of their findings before they can go public with them.”
Loney says there is “tons of money” being pumped into the local economy as a direct result of exploration.
Companies are spending millions in Sudbury and surrounding towns on helicopter, heavy equipment and
vehicle rentals, lodging and travel expenses.
Plus they are hiring well paid consultants and geologists for the Sudbury area, Loney said.
"Sudbury is the hottest mining area in Canada right now," he added. "You would have to call it a mining rush."
"Sudbury is blessed with rich PGM ground,," said Cosec." "Right now, we are third behind Russia and South Africa, but the resources of those two contries are diminishing. We might jump into second place depending on how the situation with those two places goes (Investor information, available over the internet, suggests that more than 60 companies and indivduals are working claims in the Sudbury mining district, which eccompassies rich Platinum Group Metal finds in the AgnewLake district, 60 km to the west, the Wanapitei Lake area and Foy projects to the North and the River Valley PGM find to 60 km to the east.
The Sudbury Basin itself is also a hive of activity, both in PGM and traditional nickel exploration.
Inverstors are keeping a close eye on the companies in the event that exploration activity becomes mining activity.
Junior exploration companies like Pacific North West Capital Corporation (PFN), Mustang Mininerals, Canalaka Ventures, Aurora Platinum Holdings have committed millions to diamond drilling in PGM hot-spots in the new year.
The search for platinum and palladium generated $15 million in junior exploration work commitments in the year 2000, and that figure is expected to grow markedly in 2001.
Work will intensify immediately in 2001, stimulated by the Dec. 12th announcemtn by PFN that the world's largest platinum-group metal producer, Anglo Platinum Corporation, or Amplats) has funded a minimum $2 million Phase 1 Exploration program on the River Valley PGM projects.
Situated north of Warren, insiders expect the find to become a mine within two or three years.
EXPLORATION BOOM
In a joint venture with Falconbridge, Mustang Minerals will spend 2.5 million between October of this year, to October 2001, says Robin Dunbar. A total of 1.7 million will be spent in the River Valley area.
Dunbar addes that the investors and analysts are taking note of Sudbury's exploration boom in large part because of major mining companies like Inco, Falco, Anglo Platinum and Implats are backing it.
"I think we are on the leading edge of the exploration work," said John Royall, PFN's senior geologist. "River Valley is the most advanced PGM property, and that was confirmed by the Anglo Platinum investment.
This is an extremely exciting time for exploration work in the Sudbury area!
Pfn's $2 million drilling program will result in an extensive two-rig diamond drill program that is expected to finish by June, 2001. Upon completion, results will be evaluated by PFN and Anglo Platinum and a budget will be established for the period running from July to December 2001.
"We're very confident that the price of PGM will remain high because they have very specificuses, especially in catalytic converters in automobiles, "Royall added." "Cars are being made in greater numbers, and converters are becoming standard equipment.
"The auto inustry is very concerned about where the supply will come from. The price is bound to go up."
BYPRODUCT OF SMELTING
The Sudbury mining district is blessed with unusually high concetrations of PGM, which has been refined as a byproduct of nickel smelting by Falco and Inco for years, Royall said, adding that the metals are expreemly difficult to find, and are very rare.
"They are only found in a very few areas in the world, " Royall said."There are hardly any PGM depostis in North America, and Sudbury is one of the only areas that has them in abundance."
In 1999, South Africa accounted for around 92% of market economy platinum mine production, and 83% of tatal platinum supplies. Russia produces nearly two-thirds of the world's palladium supply. |
