As Quebec approves one of Canada's largest gold mines, Osisko pledges community cooperation
As construction soon begins on the largest open-pit gold mine ever dug in Quebec (expected to rival Ontario's Red Lake mine in production), part of a community has already been moved from on top of the deposit.
Author: Dorothy Kosich
Posted: Friday , 21 Aug 2009
RENO, NV -
mineweb.com
Just days after Osisko Mining announced it had raised C$150 million in a bought deal, and had sold a 12.5% interest to Goldcorp, the Montreal-based junior explorer said Thursday the Province of Quebec had approved construction of its Canadian Malartic gold project.
After formal authorization certificates are issued by the provincial government, construction work on the mine and the mill is expected to commence almost immediately.
The C$1 billion (US$789 million) project will develop one of Canada's largest single gold deposits in Quebec's Abitibi gold camp, which has thus far mined 60 million ounces of gold. Osisko CEO Sean Roosen said the project is now 90% financed.
Canadian Malarctic has 6.28 million ounces of proven and probable gold reserves along with 3.65 million measured and indicated ounces of gold.
Although the project will generate 800 direct jobs during construction and 465 mining jobs during its 10-year mine life-with most going to the residents of Malarctic and the Abitibi-Tescamingue region-not everyone was happy to see the mine developed. For instance, a number of local residents originally had no idea their homes were built on a large gold deposit.
The company has budgeted US$87 million for the relocation of a neighborhood of 75 residences, along with a new elementary school, a day care facility, and an adult training center. Many homeowners have already been moved.
Quebec singer-songwriter Richard Desjardins led a demonstration in the small town of Malartic against the open pit mines, which he compared to the tar sands projects in Alberta. The project has also lead to the creation of a provincial coalition, which is pushing for a change in Quebec's mining code.
However, Malartic Mayor Andre Vezueau says most people are happy about a project that "will bring much-needed investments and development to our region. Malartic began its life as a mining community during the gold rush in the 1930s. After the last mine closed in the 1980s, Malartic became a logging town until the last saw mill closed in 2006.
In a news release Thursday, Roosen said the company will adhere to conditions which he claimed "will increase the level of harmony already established with the town of Malartic and its citizens."
"We are impressed by the thoroughness, discipline and diligence of the entire examination and approval process, and are attentive to the comments and recommendations from all parties," he said.
"After the many Osisko-initiated consultations conducted, the subsequent efforts of the BAPE [Quebec's environmental review board] have helped us learn even more about the concerns of the Malarctic and Abitibi-Tescamingue communities," Roosen said. "We will take this all into sincere consideration as we now proceed with the final steps of the project and transition to become the country's newest intermediate producing gold mining company." |
