print
this page | Discover Abitibi Initiative: Short, Medium and Long Term Impact Robert Calhoun P.Geo.  The
Discover Abitibi Initiative, made possible through funding from FedNor,
the Northern Ontario Heritage Fund and a number of private sector
stakeholders and municipalities, is having an economic impact on the
regional economy of the area. The Discover Abitibi Initiative is a
multi-phase project to acquire geoscientific information for a public
database to aid in mineral exploration in the Timmins-Kirkland Lake
region. The completion of only eight of the nineteen projects has injected more than $500,000 into the regional economy to date. This influx of money comes from project contractors who pay for hotels, aircraft fuel, food, and local labour. The seismic contractor employed six people for approximately six weeks and local contractors were hired to cut 130 kilometres of survey lines. Another local contractor is also conducting geophysical surveys on the same lines employing five to six people for about two months. A total of 11,000 claim units have been staked within survey areas where data is available in the database. This staking equates to about 1,100 person days or greater than five person years of employment at an estimated cost of $935,000. Additionally, two companies have announced that they will spend $1 million investigating the potential of claims staked on MegaTEM II anomalies located in two of the survey areas. Several other junior companies are active in the area completing work on their newly acquired claims. In the medium term, The Mining Act requires the claim holder complete a minimum of $400 of work over two years to retain their right to the claims. This minimum, if all claims were retained, would add an additional economic impact of approximately $4.4 million by employing line cutters, geologists and geophysicists. Historical statistics suggest that about 10 percent of these claims would require further testing of one drill hole per claim to test the potential of a mineral deposit. At current drill rates and assuming 250 meters per hole, this work would add up to a further $19.5 million spent in the region. A significant number of geologists, diamond drillers, assayers and other service providers would be employed over a longer period of time. All businesses in the area would benefit from this increase in employment and a feeling of renewed optimism in the long-term stability of the regional economy. In the longer term, if only one of these properties contains an economic mineral deposit, the impact on the regional economy could be felt for decades. The 40 year and counting lifespan of Kidd Creek Mine and the continuing operation of Dome Mines for over 90 years are prime examples. The discovery of only one deposit in the area would increase interest in exploration as companies scramble to acquire surrounding ground in an attempt to unearth other deposits. The development costs of a new mineral deposit range from $100 to $700 million or greater (Kidd Creek expansion $600 million, PJV Pamour pit $700 million). In addition to those examples, other mining companies such as St. Andrew Goldfields (Clavos, Stock and Taylor properties), Lake Shore and Holmer Gold (Holmer deposit) are spending significant dollars in the region. St. Andrew Goldfields have stated they are committed for the long term and data from the Discover Abitibi Initiative will be included in their exploration database in search of additional deposits. The confidence shown in the region by these developments bodes well for the future of the region. The world class public database being produced by the Discover Abitibi Initiative will be utilized by all stakeholders in the area to help locate the next generation of mineral deposits and to secure the economic stability of this region and the province. |
For
more information on APGO, please contact info@apgo.net
|