Exploration boom reminiscent of Greenstone glory days

Skyrocketing commodity prices are the driving force behind the renewed interest in the mining sector and Greenstone is reaping the benefits. A generation ago many of the now defunct mines were harvesting gold in a market where it fetched about $35 an ounce. Today the prices have hit as high as $1,000 an ounce and that means the quest for the precious metal is red hot not expected to cool anytime soon.

''I think the next five years will be very encouraging for the additional properties we haven't even drilled yet. We drilled three past producing mines and hit gold on all three,'' Roxmark Mines geologist Glen Hart said.

''I'd say its one of the most prolific areas there is, and that is getting the attention of the mining community globally. I go overseas and it's the top conversation. Greenstone is on the global map which is good for the community,'' Mike O'Brien, corporate communications manager with Sage Gold said.

Geraldton today prides itself on being the little town with the heart of gold but in the 1930s gold mining dominated economic activity in the area for decades, producing more than 4 million ounces of gold. Edgar Lavoie is a local historian and he has written a handful of books on the subject and has extensively researched the glory days.

''At one time in the vicinity of Geraldton there was ten operating mines and if you increased the area from Lake Nipigon to Long Lake there was 18 producing mines.''

Lavoie feels the past bodes well for the future and he is not alone. Mark Smyk, a regional geologist with the Ministry of Northern Development and Mines, says there has been a remarkable increase in the amount of claim staking taking place.

''Within essentially the last 6 to 8 months there has been a real upsurge in staking, several thousand claims been staked since last fall. This translates into several millions of dollars being spent,'' he said.

Smyk says the ministry has always felt the Greenstone area was under-appreciated given its past history as a gold producer. He says Kodiak Explorations Golden Mile Discovery has raised the potential for the area and generated a lot of excitement.

''And this has really raised the curiosity, interest and excitement of the local populace. Its one thing to be hearing about exploration taking place in the bush but to see a drill on the highway into town, that is something else.''

In fact, Kodiak's Golden Mile Discovery has just been honoured as one of two top discoveries of the year at the 2008 Mines and Minerals Symposium. Kodiak president, Bill Chornobay says his company has been actively exploring the Beardmore Geralton Camp for five years. According to Chornobay, the region has a lot going for it that helps mitigate the risks of production including its proximity to rail and road access, energy and a ready made workforce. He says the Golden Mile discovery has caught the attention of the industry and the financial institutions.

''Several companies are now exploring and the total spent is around $32 million in exploration for 2008, it was long overdue and it will benefit stakeholders, companies and communities for some time to come.'' Chornobay feels the current activity reawakens the area's legacy of exploration and will secure it for many years to come. An example of the roots that Kodiak is laying down in the municipality came earlier in the year when they purchased a motel and restaurant outside of Jellicoe.

''With the property coming along like it has and knowing we'd be here awhile, it seemed natural to acquire a facility we could rely on as a base camp for Kodiak,'' he said.

Many of the companies are relatively new to the area with the exception of Roxmark Mines. The company has been around since the late 60's and has spent the last few years consolidating property of pre-existing gold mines. Late last year the company announced its intentions to re-open the Northern Empire Mine located in Beardmore and geologist, Glen Hart said ''We were hoping it will be able to be producing within two years.''

The mining method and resource size will determine the number of jobs as will the potential of numerous other sites that Roxmark has. Employment in the sector is an issue. The region has been hard hit by the downturn in forestry but many are not yet trained to make the transition.

Barb Courte is the president and owner of two drilling companies and she has worked with Confederation College in an effort to get more locals trained for the job.

''Its a major issue finding good workers with the skills when I hire its with the intention of turning them into drillers,'' she said.

In 2006, the Greenstone Economic Development Corporation decided it was time to become more focused on mining and exploration and began utilizing 3-D Data Mines technology to create a historical data base of the area which has been beneficial to exploration activity.

''Trying to find trends and fault lines working with the private sector to help us in creating models that would offer exploration options,'' Jamie Armstrong, project analyst - GEDC said.

Roxmark geologist Glen Hart says the data mines technology has proved its worth saying ''Right now were drilling tricky holes with 3D model we can avoid places dangerous to drill. ''

The GEDC with the help of FedNor has also embarked on The Greenstone Mineral Development Initiative and they are in the first phase of that plan to help facilitate the new rush for gold in the area.