Gold Eagle to sink 1,460m shaft on Island
by Jennifer Patenaude
Staff Reporter

Gold Eagle Mines is hoping history will repeat itself as it prepares to sink a 1,460 metre vertical exploratory shaft on McKenzie Island, adjacent to the former Gold Eagle Mine site.

Hoping to maintain a positive and long-lasting relationship with the community, the management team, along with representatives from engineering consultant AMEC, held two information sessions last week to discuss details of their advanced exploration program and to address any local concerns. A consultation meeting was held in council chambers at the Municipal office on Wednesday and a second public meeting took place on Thursday at the Cochenour Hall with about 90 interested citizens in attendance.

Speaking on Wednesday to a large crowd of local officials from organizations including the Ministry of Northern Development and Mines, the Ministry of Natural Resources, the McKenzie Island Residents Association, the Ontario Provincial Police, and the Red Lake Cross Country Ski Club, Gold Eagle Mines President and Chief Executive Officer Simon Lawrence said, “Red Lake is very well-known worldwide for its two quality and successful mines: Campbell and Goldcorp. We believe there is a possibility for a third.”

The company has already spent the last four and a half years conducting basic investigation and surface drilling on its property located next to the old Cochenour-Willans mine. Studies so far have indicated that there is economic potential for a mineralized structure at depth between the two mines, which requires exploration below the waterway between McKenzie Island and Cochenour.

Entering into its advanced stage of exploration, which Lawrence noted as the most expensive and risky factor in the development process, Gold Eagle Mines is anticipating preliminary costs of $65 million. The company said it is well funded with $108 million on hand and no debt. “While there is no guarantee at this stage of the game, we at the company are all very optimistic that this endeavor could yield a successful development,” Lawrence said.

Constructing the shaft near to the old mine site on McKenzie Island proved to be ideal for many reasons. According to Allyson Desgroseilliers, senior environmental engineer at AMEC, using the former site allows for minimal land disturbances, the company also has the surface and mineral rights and the location is close to the mineralized zone, while still being an optimal distance away from the shoreline.

Resuming exploration nearly 70 years after the initial closure of Gold Eagle Mines in 1941, Lawrence noted the company’s findings as a significant gold discovery.

However, Lawrence explained that developing Red Lake’s third great mine could still be ten to fifteen years down the road, depending on the results from their exploration efforts. The company is looking at three years just for the construction of the mine site, which will include installation of underwater hydro lines, receiving all essential permits and licencing, advancing the shaft and constructing the waste water rock pads and drainage systems, as well as the development of a water treatment plant, if necessary.

he shaft sinking is expected to commence in mid 2008 and J.S. Redpath Limited has been hired to begin the specialized design and engineering work required.

A separate ice road running adjacent to the municipal winter road between McKenzie Island and Cochenour will be developed for transportation of material during the winter months and a 110 foot, 120-ton barge will deliver the goods once the water is open. Company officials assured that barge service would not take place overnight and would be operated on demand, so there may be days when it remains stationery at the dock.

Utilizing existing barge landings, the company is making every effort possible to minimize any further land disturbance. This includes reusing the old tailings pond on the Island as part of the water management requirements and any leftover waste rock from the old mine site.

Project manager John Whitton, who noted Goldcorp as being unfairly criticized as of late for its transient workforce, said that should the company receive favorable results from its exploration program, Gold Eagle Mines is considering the feasibility of erecting quality accommodation on the old Gold Eagle Hotel site on McKenzie Island.

He said the intent is to erect a lodge style of accommodation for 40 to 60 people to house the specialized workforce required for the project. “However, going forward, Gold Eagle does not want to be in the hotel business and hopes that by erecting a quality facility, it can form the basis for a viable commercial operation on the old Hotel site,” Whitton said.

During the Wednesday presentation, Mayor Phil Vinet officially welcomed Gold Eagle Mines back to the area and encouraged the company to attract and maintain a local workforce.

“From a corporate viewpoint, it makes good business sense and is optimal to have the people from the community working for us,” Whitton said. “There is a commitment there from a local workforce and best of all; you’re not going to have to force them to work here. We want to do the best we can with the people around us and the resources we have.” 

Lawrence agreed. “It seems crazy to me to fly someone in from Saskatchewan, for instance, to do a job that can be done by a local resident. We have a chance to build a really good culture here and we are going to make every effort to use local manpower. We are very keen on that.”

The company is not getting ahead of itself though. It is anticipating eight years of advanced exploration before any production plans commence. Whitton said there is still a lot of work and planning to be done before they can make any promises.

“First we need to get a mine here and get it into production. That’s when the benefits will start to filter down to the community,” Lawrence stated. “It’s going to take teamwork, dedication, belief, and as always, a great deal of good fortune.”