RE: New Major player in N.B.Here's what Titan's talking about. I joined he and mallgirl and took a position in ELN today. I figure between it and SXL I'll have all bases covered or should that be setting up for a grand SLAM?
Mining Canadian subsidiary actively seeking new base metals deposit
JON MACNEILL
TELEGRAPH-JOURNAL
FREDERICTON - A sizeable resource find in the Bathurst Mining Camp could displace some of the 900 jobs that will be lost when the current zinc operation there shuts down, says a senior geologist with Votorantim Metals Canada, Inc.
Stephen MacConnell, a senior project geologist with Votorantim Metals, says while some figure Brunswick Mine is tapped out, his company believes advanced exploration techniques will yield another sizeable discovery. Photo: David Smith/for the Telegraph-JOurnal
The Canadian subsidiary of Brazilian mining giant Votorantim Metais is actively seeking a new base metals deposit around Bathurst.
Brunswick Mine near Bathurst was the largest underground zinc deposit in its day but is expected to dry up in the next couple of years, leaving some 900 people out of work.
If Votorantim finds a deposit the likes of which they believe is there, those jobs might not be lost for too long.
"That's the hope, it would be the ideal scenario," said Stephen MacConnell, a senior project geologist and head of Votorantim Canada's Bathurst field operations.
"But it really all depends on what you find and where you find it."
MacConnell spoke about his company's exploration efforts in Bathurst during an industry conference held in Fredericton this week.
The geologist said while some figure Brunswick Mine - where a 120 million tonne deposit of zinc has created thousands of jobs over the last 50 years - is tapped out, his company believes advanced exploration techniques will yield another sizeable discovery.
MacConnell referenced the Flin Flon-Snow Lake VMS Camp in northern Manitoba as proof that old sites can hold hidden treasures.
"It has a similar exploration history as Bathurst, they've been producing VMS-type deposits there for 50 or 60 years," MacConnell said.
"And there's this conception that, being older camps, everything had been found. But a few years ago Hudson Bay Mining and Smelting - doing similar work to what we are planning and are doing at the moment - found a brand new deposit within sight of some of their old deposits," MacConnell said, adding the new Snow Lake find was more than 20 million tonnes.
"There are significant deposits left to be found, it's just that the more modern techniques that we have available to us nowadays allow us to look for these types of deposits."
In August, Votorantim formed a joint venture with Vancouver's El Nino Ventures Inc. and Xstrata Zinc Canada, the owner of Brunswick Mine.
The agreement would see Votorantim earn a 50 per cent interest in the Bathurst Mining Camp project by incurring exploration expenditures of $10 million over a period of five years. The company, part of Votorantim Group, could increase its interest to 70 per cent by spending another $10 million over an additional two years thereafter.
The Bathurst Mining Camp is 70 kilometres in diameter and has produced eight mines.
Separate from the joint venture, MacConnell said Votorantim Canada also has an agreement with the province for an advanced exploration project in the camp.
Under the three-year deal signed on April 1, the company must spent at least $1 million and up to $2.5 million per year on exploration, of which the government will reimburse Votorantim by up to 50 per cent.
Speaking at a mining industry conference in Saint John on Monday, Minister of Natural Resources Bruce Northrup welcomed Votorantim as a new "major player" in the province.
"We all know the Bathurst Mining Camp has been one the richest base metal mining regions in the world. There is good reason to believe it still has the potential to yield new base metal deposits," Northrup said.
"Finding these new deposits requires a firm commitment by the private sector to invest in the discovery and development of new mines."
Over the last 14 months, Votorantim has performed a number of geophysical surveys, soil geochemistry tests and other techniques to determine potential deposits sights.
At its peak in 2010, MacConnell said the company employed more than 20 New Brunswickers between survey and drilling crews.
"Next year is going to be extremely busy for us," he said. "We've had one drill working so far this year, but next year we could very well be up to three or four drills."
Upwards of 60 people - mostly all locals - could be employed by the company in 2011.
MacConnell said the company would need to find around 20 million tonnes of base metals before it would consider production.
The geologist noted the depth of the deposit is all factor, as deeper ore would be more expensive to extract and would need to be larger in size or have a superior grade.
If the company finds a suitable deposit, actual production would be a good four or five years away, he said.
"There's a misconception that because Bathurst is a mature camp, then it's a depleted belt.
"The proof in the pudding is always on the end of the drill bits ... but we are very keen on the Bathurst camp and we believe the camp does have huge potential still," MacConnell said