Local mayors expect the proposed revival of a nearby gold mine could shine brightly on their rural-Newfoundland economy.
Maritime Resources Corporation last week registered a project for environmental assessment to develop a gold mine near the communities of King’s Point and Springdale on the Baie Verte Peninsula. According to a registration document filed with the Department of Municipal Affairs and Environment, the mine could have a life of six years and create upwards of 150 direct jobs when operating at peak capacity. The initial estimated capital investment for the Hammerdown gold mine would be $57 million.
This is all music to the ears of King’s Point Mayor Perry Gillingham. His town of approximately 650 residents is five kilometres from the site of the proposed mine.
“It would be good for us and the overall area of Green Bay,” said Gillingham, whose council has met with the company. He understands the mine would provide well-paying jobs.
“It would be a tremendous spinoff for the local businesses in place,” said Springdale Mayor Dave Edison. With a population of almost 3,000, Springdale is the region’s largest community, and Edison said it already has a number of supply businesses that can work with the mining industry.
The site in question has a history when it comes to gold mining. Richmont Mines operated the mine as a small open pit and underground operation from 2000 to 2004. Ore from the mine was processed at the Nugget Pond processing plant, located 140 kilometres away from the site near the resettled community of Snook’s Arm. Richmont Mines ceased operations in 2004 and decommissioned the site a year later due to a low price for gold.
A conceptual rendering of the proposed Hammerdown gold mine site. — MARITIME RESOURCES CORP. – Contributed
Hot commodity
The commodity’s price in Canada has shown strength in recent months, at times exceeding $2,400 per ounce. According to a SaltWire Network article published last month on Anaconda Mining’s drilling plans for eastern Nova Scotia, this sort of price level has not been witnessed since the early 1970s, making it a highly profitable time to mine gold.
Gillingham and Edison both acknowledge the fact activity at the mine in the early millennium benefited their respective towns quite a bit. Both communities also have many residents currently employed in the industry who travel for work.
“There’s a lot of miners here that travel to Labrador, Alberta and Nunavut — wherever there’s mines to,” Gillingham said, adding there are likely miners nearing retirement who would love to finish their careers working close to home.
Springdale Mayor Dave Edison. — SALTWIRE NETWORK FILE PHOTO
Springdale has potential housing subdivisions on the horizon and Edison expects the mine, if it proceeds, would help fill some of these homes.
“It’s easy for (council) to support this,” he said. “We’ve spoken to the CEO of this company, and they’re a reputable company.”
Although he recognizes the short-term value of the mine, Gillingham knows the project will help his town in the long run. Over the last 10 years, King’s Point has placed more emphasis on attracting tourists to the region, highlighting the natural beauty of Green Bay.
“That’s something that can continue on a yearly basis,” he said. “The mine is good. Don’t get me wrong. It will be a big boon for the area … But when that’s gone, hopefully tourists will still be here.”
The project was registered for environmental assessment July 8. The deadline for public comments is Aug. 12, with a decision due from the minister Aug. 22. According to Gillingham, drilling at the site is ongoing and it’s hoped work to develop the mine could begin in 2021.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
