February 16, 2007
First Shipment of Gold Ore to Arrive in the Province for Processing
The arrival in the next few days of the first shipment of gold ore from Greenland for processing in this province is an economic boost for the Baie Verte Peninsula and a significant development for the province�s mining industry.
"For the first time, a mineral resource is being shipped into this province for processing, bringing a new life for the Nugget Pond mill and related employment and economic spinoffs," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "This is a positive development for an area with a strong mining past and a bright future for the return of mining-related economic development."
Crew Gold (Canada) Ltd. acquired the Nugget Pond processing facility in October 2006 to process ore from its Nalunaq gold mine in south-western Greenland. Significant capital investment has gone into reactivating the mill and constructing the required infrastructure. The reopening of the mill will create about 30 new positions, with local companies being contracted to provide trucking, security and other services.
It is expected ore will be shipped to Nugget Pond from Greenland on a monthly basis, with between 160,000 and 200,000 tonnes being processed annually. The ore will be shipped through South Brook initially, while the company constructs a loading facility at Snooks Arm. Greenland�s Nalunaq mine has a life expectancy of about 10 years.
"The reopening of this mill will benefit the immediate community, both through direct employment and the related increased economic activity," said Paul Shelley, MHA for Baie Verte. "The company is building relationships in the community and making use of existing services which is excellent to see. For example, the La Scie Fire Department has been contracted to supply first response and training programs."
The Baie Verte Peninsula is benefiting from a renewed interest in the area�s mining infrastructure and resources. Rambler Metals and Mining, a British company, is exploring the possibility of reopening a dormant copper mine. The company is planning a dewatering program to allow for underground drilling of previously unexplored ore bodies. It is already advertising mining-related positions in anticipation of the beginning of advanced underground exploration.
At the same time, the Pine Cove gold deposit is in the final stages of permitting by Anaconda Gold Corporation, with mining of the probable reserves of 2.3 million tonnes possibly starting later this year.
The mining industry makes a significant contribution to the provincial economy, particularly in rural Newfoundland and Labrador. In 2007, the value of mineral shipments is expected to exceed $3 billion, up from $2.6 billion in 2006. Exploration expenditures will be similar to, if not better than, 2006 at $83 million.
"Our new and potential future mining developments should ensure the province continues to realize significant economic benefit from our mineral resources in 2007," Minister Dunderdale said. "Government is positioning the mineral industry for strong continued growth with the strategic funding of initiatives to increase the level of geoscience information to the industry and encourage exploration activity. We increased the budget of the Mineral Incentive Program by 55 per cent last year to promote mineral prospecting and exploration activity and to leverage additional investment from the private sector. These initiatives contribute to the strength and growth of this important industry."
2007 02 16 10:40a.m.
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