Connect with us

Mining

Red Lake: The High-Grade Gold Capital of the World

Published

on

Red Lake: The High-Grade Gold Capital of the World

Red Lake: The High-Grade Gold Capital of the World

Sponsored by Gold Canyon Resources (TSX-V: GCU)
Every major gold producing country has an iconic gold producing trend that is synonymous with prosperity. South Africa has the Witwatersrand Basin and the United States has the Carlin Trend in Nevada.

While Canada has had many prolific gold producing regions over the years, including many famous gold rushes, lately the gold capital of Canada rests in Red Lake, Ontario. It is here – in some of the world’s richest gold deposits – that the yellow metal is famously produced at the astonishing rate of two troy ounces per tonne.

The Geology

Like much gold in Ontario and Quebec, deposits are found in a greenstone formation at Red Lake.

Most of the gold production in the district has come from structurally controlled vein-type gold deposits near regional mafic volcanic-sediment contact or ‘breaks’.

Major gold camps in the Timmins and Kirkland Lake areas of northeastern Ontario also show a close association with similar breaks. However, Red Lake’s major discovery in 1995 of the High Grade Zone makes it about 50 years “newer” for exploration potential.

The History

Gold was discovered on the shores of Red Lake by L.B. Howey in 1925. Word spread quickly and the town experienced a sudden surge in economic, industrial, and population growth. People travelled by dog team, on foot, or by open cockpit airplanes to seek their fortune. By 1936, Red Lake’s Howey Bay was the busiest airport in the world, with more flights taking off and landing per hour than any other.

Between Howey and the Hasaga Mine next door, a total of 600,000 oz gold was produced. But, it would be later discoveries that would make Red Lake the future capital of high-grade gold.

In 1938, the mill started at the Madsen Mine. It would produce for the next 36 years. In 1948 and 1949 respectively, the Arthur White Mine (later Dickenson and Red Lake) mine and then the Campbell Mine went into production.

The Challenge

In the 1989, Rob McEwen gained control of an underperforming mine previously known as the Arthur White Mine and then the Dickenson Mine. McEwen, the CEO of Goldcorp, knew the mine could have similar grade and potential to the surrounding mines such as the Campbell Mine.

In 1995, the High Grade Zone was discovered. Nine drill holes averaged 9.08 ounces of gold over 7.5 feet, but the company still found the overall geology to be challenging.

In 2000 at PDAC, Mr. McEwen launched the “Goldcorp Challenge” and posted decades of geological data on its Red Lake Mine to its corporate website. Geologists, scientists, and engineers from around the world were encouraged to examine the data and submit proposals as to where the next six million ounces of gold would be found. There was a purse of $575,000 USD up for grabs. It was viewed 475,000 times and 1,400 prospectors from 51 countries registered as participants.

Finishing 1st place in the contest:

First Prize – US$95,000 – Fractal Graphics and Taylor Wall & Associates

Today at Red Lake

Since 1925, there have been 28 operating mines and 28 million oz of gold produced at Red Lake. The majority has come from four mines: Red Lake (Dickenson), Campbell, Madsen, and Cochenour.

The biggest producing mine in 2014 was Goldcorp’s Red Lake Mine, which produced 414,400 oz. The High Grade Zone is the backbone of the operation, with an average grade of more than two ounces per tonne.

There are several current projects of note in the district:

  • Rubicon Minerals: Rubicon’s Phoenix / F2 Deposit is expected to go into production in mid-2015. It is expected (conservatively) to produce 2.19 million oz with a head grade of 8.1 g/t Au
  • Gold Canyon: Gold Canyon’s Springpole project has 4.41 million oz gold (M&I) and 0.69 million oz gold (Inf.) just to the northeast of Red Lake
  • Goldcorp: Aside from Goldcorp’s operating mines, Goldcorp is currently working on bringing to life the Cochenour / Bruce Channel deposit. Under Red Lake, it has a projected mine life of 20 years and >250,000 oz/yr production. A high speed tram will connect this with the mill.

1 Comment

Markets

An Investor’s Guide to Copper in 3 Charts

Explore three key insights into the future of the copper market, from soaring demand to potential supply constraints.

Published

on

An investor's guide to copper in 3 charts

Published

on

The following content is sponsored by iShares

An Investor’s Guide to Copper

Copper is the world’s third-most utilized industrial metal and the linchpin of many clean energy technologies. It forms the vital connections in our electricity networks, grid storage systems, and electric vehicles.

In the above infographic, iShares digs into the forces that are set to shape the future of the copper landscape.

How Much Copper Do We Need?

Copper is poised to experience a remarkable 54% surge in demand from 2022 to 2050.

Here’s a breakdown of the expected demand for copper across clean energy technologies.

Technology2022 (kt)2050P (kt)
Electricity networks43648862
Other low emissions power generation93.7142.2
Solar PV756.81879.8
Grid battery storage24.6665.2
Wind453.5 1303.3
Hydrogen technologies-0.22
Electric vehicles370 3582.9
Other uses19766 22382

Copper is vital in renewable energy systems such as wind turbines, solar panels, and electric vehicle batteries because of its high electrical conductivity and durability.

It ensures the effective transmission of electricity and heat, enhancing the overall performance and sustainability of these technologies.

The rising demand for copper in the clean energy sector underscores its critical role in the transition to a greener and more sustainable future.

When Will Copper Demand Exceed Supply?

The burgeoning demand for copper has set the stage for looming supply challenges with a 22% gap predicted by 2031.

Given this metal’s pivotal role in clean energy and technological advancements, innovative mining and processing technologies could hold the key to boosting copper production and meeting the needs of a net-zero future.

Investing in Copper for a Prosperous Future

Investors looking for copper exposure may want to consider an ETF that tracks an index that offers access to companies focused on the exploration and mining of copper.

Click for Comments

You may also like

MSCI Climate Metrics Paper - A simple toolkit for climate investing

Subscribe

Continue Reading

Subscribe

Popular