Northern Promise: Home of the world’s richest gold mine braces for coming headwinds – by Peter Koven (National Post – August 20, 2013)

The National Post is Canada’s second largest national paper.

Northern Promise is a six-part series that explores the pace and progress of development in Canada’s remote communities. In this second instalment Peter Koven visits the home of the world’s richest gold mine

Fifty-four hundred feet below the surface, roughly underneath the local airport, a massive drill is pounding out a path to Red Lake’s latest set of riches.

Workers stand back and protect their ears as the driller carefully targets the sheer rock wall up ahead and begins to break it apart. It is slow and careful work; the horizontal drill makes about 15 to 23 feet of progress per day, sometimes less. But it is closing in on the destination, which will be reached later this year after more than three years of work.

The end result will be a five-kilometre drift connecting Goldcorp Inc.’s existing operations here with the Bruce Channel, a high-grade discovery that will be a flagship of the company’s Red Lake operations for decades to come. The ore from Bruce Channel (or Cochenour) will be hauled back to Goldcorp’s Campbell mill via an underground tram system, which is already running and is being expanded as fast as the drillers up ahead can open up the drift.

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NEWS RELEASE: Lac Seul First Nation and Goldcorp Inc. Sign Collaboration Agreement

August 19, 2013

RED LAKE, ON, Aug. 19, 2013 /CNW/ – GOLDCORP INC. (NYSE: GG) (TSX: G) (“Goldcorp”) and Lac Seul First Nation have signed Obishikokaang Collaboration Agreement setting a framework for continued consultation and support for current and future operations of Red Lake Gold Mines and defining the long-term benefits for the First Nation. A signing ceremony was held Friday, August 16, in the Municipality of Red Lake, Ontario.

The agreement will bring recognition and economic benefits to Lac Seul First Nation, comprised of about 3,200 band members with significant historical ties to the development of the Red Lake gold camp. Many band members reside within the Municipality of Red Lake.

“Goldcorp’s commitment to working with First Nations is once again demonstrated with this agreement, ensuring both the sustainable development of the areas in which we operate and long-term economic benefits for communities,” said Chris Cormier, Mine General Manager at Goldcorp’s Red Lake Gold Mines. “We look forward to working in partnership with Lac Seul First Nation to foster continued dialogue and to implement the initiatives set out in the agreement.”

“This agreement demonstrates that Lac Seul First Nation can work successfully with industry,” said Chief Clifford Bull of Lac Seul First Nation.

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Gold producers squeezed by rising costs and sliding prices – by Tim Kiladze (Globe and Mail – August 12, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Midway through his master’s degree in geology in the 1980s, Brian Christie trekked to the Red Lake gold mine in Northwestern Ontario as part of a research project. About 930 metres deep, more than one and a half times the CN Tower’s height, the remote mining project was a treat for a geology student eager to make his mark in the industry.

At the time, Red Lake was near the top of the list of the world’s most important gold mines in terms of grade and volume. Even today, after decades of production, some areas of the mine produce 57 grams of the gold per tonne – many multiples ahead of the industry average.

Yet the enthusiasm for projects such as that once drew Mr. Christie to research Red Lake has been undercut by a 10-month slide in gold prices and at least $23-billion worth of writedowns by Canadian gold miners over the past year and a half.

Today, Red Lake’s high-grade gold is found as far down as 2,350 metres, about four times the CN Tower’s height, which shows the difficulty gold miners face in trying to boost their stock valuations even if prices for the precious metal rebound.

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Rubicon Minerals appoints new operations boss – by Staff (Northern Ontario Business – January 7, 2013)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Rubicon Minerals has appointed a new vice president of operations and hired a new director of investor relations. “Putting in place a team that can take us to the next level is one of my key priorities,” said Michael Lalonde, Rubicion president and CEO, in a Jan. 7 statement.

Dan Labine is the new operations boss, effective Jan. 21 and Allan Candelario will handle investor relations. Labine has more than 35 years of engineering, mine operation, and project management experience, most recently as Goldcorp’s senior project manager in charge of the construction and development of the Cochenour project in Red Lake.

Rubicon is constructing a gold mine in the Red Lake district. Its Phoenix Gold project is slated for a 2014 startup. Labine supervised the construction of a five-kilometre underground haulage drift between the Cochenour project and its Red Lake mine infrastructure.

Labine previously worked in management for Inco, AMEC Earth and Environmental Ltd. and was a senior project engineer for Nordpro Mine and Project Management Services.

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Crown has to respect treaty rights: Wabauskang Chief Leslie Cameron – by Jon Thompson (Kenora Daily Miner & News – December 24, 2012)

http://www.kenoradailyminerandnews.com/

Facing a lawsuit that could threaten its Phoenix Mine at Red Lake, Rubicon Minerals is not only vowing to fight back in court but to work with Wabauskang First Nation, who launched the suit on Thursday.

Based on an Ontario Superior Court of Justice decision that could redefine harvesting rights in the province, Wabauskang has asked a provincial court to either suspend or entirely cancel the approval of Rubicon’s closure plan, the primary authorization that will allow the company to begin production. The case, known as the Grassy Narrows Trappers’ Decision, found only the federal government can alter treaty agreements. The province has appealed that decision.

“We would rather not go to court, but until Canada and Ontario fulfill their responsibilities to us, we have no choice,” said Wabauskang Chief Leslie Cameron, arguing the province has unlawfully delegated its consultation responsibilities to the company. “Rubicon talks about their consultation, but where’s the government’s consultation? Ontario relied on Rubicon. That’s not right.”

Cameron compared her community’s case to that of Wahogshig First Nation’s case against Solid Gold Resources, which that First Nation argued in court on the same day Wabauskang filed its suit. She said Wabauskang will be closely watching the decision on Wahogshig, which is expected in mid-January 2013.

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First Nation clashes with Red Lake gold miner – by Ian Ross (Northern Ontario Business – December 21, 2012)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

A small northwestern Ontario First Nation community is threatening legal action against a Red Lake gold miner which is advancing a high-grade deposit toward an early 2014 startup.

Wabauskang First Nation Chief Leslie Cameron said negotiations for a benefits agreement are not going well between his community of 300 and Rubicon Minerals over its Phoenix Gold project.

The band has instructed its lawyers to file a lawsuit at the Ontario Superior Court opposing Rubicon’s project. While the band is frustrated with the pace of development by the Vancouver-based miner, it has an even bigger bone to pick with the federal and provincial governments.

In a Dec. 17 news release, the band said it has repeatedly reminded and complained to Queen’s Park and Ottawa of its “constitutional obligations to consult and accommodate,” with First Nations on mining and exploration projects. But the band said both levels of government have ignored them and foisted those duties onto the mining companies.

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NEWS RELEASE: Wabauskang First Nation Files Lawsuit Against Ontario and Rubicon

Wabauskang First Nation
Treaty 3
December 20, 2012

Wabauskang First Nation’s lawsuit opposing Rubicon Mineral’s proposed Phoenix Mine at Red Lake, Ontario has been filed at the Ontario Superior Court of Justice.

“We will oppose Rubicon’s mine until our Treaty rights are respected,” said Wabauskang Chief Leslie Cameron. “We would rather not go to court, but until Canada and Ontario fulfill their responsibilities to us, we have no choice.”

Wabauskang’s lawsuit asks the court to either suspend or entirely cancel the approval of the closure plan, which is the primary authorization that will let Rubicon go into production. The lawsuit relies on last year’s court win by Grassy Narrrows First Nation in Keewatin, where the court found that only the federal government can justify an infringement of Treaty rights.

“We know that Ontario has been informing companies that any authorizations they get in the Keewatin lands may not be valid because the court has found that Ontario doesn’t have jurisdiction to issue authorizations. We think Rubicon’s closure plan is an example of an authorization that will ultimately be cancelled by the court.”

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Wabauskang heading to court to stop gold mine – by Shawn Bell (Wawatay News – December 18, 2012)

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

Wabauskang First Nation is preparing to file a lawsuit to oppose Rubicon Minerals’ proposed Phoenix Gold Mine in Red Lake.

The Treaty #3 First Nation says it was left with no choice but to go to court after attempts to work with the company over the past year to address Wabauskang’s concerns failed to resolve the differences.

Wabauskang Chief Leslie Cameron pointed blame over the dispute directly at the federal government. Cameron said the government has passed its duty to consult First Nations onto Ontario and then onto mining companies. “The government has to deal with us directly,” Cameron said. “They can’t hide behind mining companies.”

Cameron said Wabauskang expressed its concerns with Rubicon’s Phoenix Gold Mine project right from the time the project was initiated. Despite those concerns, Ontario approved the mine’s process review in the fall of 2011.

“We didn’t want to go to court, so even though we don’t think Ontario had the authority to approve the mine, we tried to work with the company over the last year to resolve our concerns,” Cameron said. “We’ve been unsuccessful, so we’re forced to go to court to ensure that our interests are protected.”

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NEWS RELEASE: Rubicon remains committed to further discussions with Wabauskang First Nation

TSX:RMX | NYSE.MKT:RBY

TORONTO, Dec. 17, 2012 /CNW/ – Rubicon Minerals Corporation (TSX: RMX | NYSE-MKT: RBY) (“Rubicon”) has learned via press reports that, on December 17, 2012, Wabauskang First Nation (“WFN”) instructed its lawyers to file a lawsuit related to Rubicon’s Phoenix Gold Project in Red Lake, Ontario. At this time, since it has received no notice from WFN, the details of its lawsuit are unknown to Rubicon.

By way of background, Rubicon has been engaged in discussions and consultation with WFN since January of 2009. As part its Closure Plan obligations, Rubicon confirmed its intention to continue to consult with WFN with respect to the Phoenix Gold Project.

Rubicon has, in good faith, met with the community representatives of WFN and other Aboriginal Communities to ensure their interests have been heard and incorporated into the planning process. Some of the efforts made by Rubicon with respect to WFN are as follows:

  • as noted above, discussed and consulted WFN directly since January 2009;
  • provided funding to WFN pursuant to its Consultation & Accommodation Protocol for environmental reviews, legal assistance, financial analyses, a traditional use study, travel, per diems and honorariums;

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A good look at new mining – Thunder Bay Chronicle-Journal Editorial (September 28, 2012)

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

THE Ring of Fire is on many minds these days. As miners prepare to dig into the James Bay lowlands, Northern Ontario communities jockey to provide services and employees. But the North’s new mining boom extends well beyond the Ring. A new analysis, commissioned by Ambassadors Northwest, showcases stunning opportunities that will transform the region. Billions of dollars are at stake. Communities will share handsomely if governments do what they must do to make it happen.

Conducted by university and college professors, the study looks at nine mining projects underway in the Northwest. It does not include existing mines. The Ring of Fire’s two biggies — Cliff’s Natural Resources’ Black Thor and Noront Resources’ Eagles Nest — are familiar. But seven other projects are similarly mature or near development with the potential to become producing mines in five years.

They are: Bending Lake Iron Property surrounded by Atikokan, Ignace and Dryden; Goldcorp’s Bruce Channel and Cochenour projects and Rubicon Minerals’ Phoenix Gold project in the famed Red Lake gold field; Osisko Mining’s Hammond Reef project near Atikokan; Rainy River Resources’ gold project; Stillwater Mining’s copper and paladium operation near Marathon; and Treasury Metals’ Goliath gold project in the Wabigoon and Dryden area.

The dollar value, employment and tax revenue potential of these projects is “substantial,” the study says. That’s an understatement. The total value of unmined metals and minerals is estimated to be $135 billion based on June commodity prices.

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Boom in the making [Northwestern Ontario mining] – Kris Ketonen (Thunder Bay Chronicle-Journal – September 28, 2012)

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

The full study can be found at:  http://www.thunderbayventures.com/upload/documents/mining-in-northwestern-ontario.pdf

Northwestern Ontario stands to reap huge financial rewards when the region’s developing mining sector matures, but a great deal of time and money must be invested to ensure the region is ready, a new study states.

Mining in Northwestern Ontario: Opportunities and Challenges examined several in-development mining projects, and found that when up and running, thy have the potential to create more than 13,000 jobs in the region alone, and the yet-to-be mined minerals and metals found here have a value of around $136 billion.

In addition, more than $16 billion in tax revenue is expected to be collected by the provincial, federal and relevant municipal governments during the average 17.5-year lifetime of the mines.

“There are a few objectives we had for this report,” Bahram Dadgostar, dean of Lakehead University’s faculty of business and one of the study’s authors, said Thursday after the release of the report.

“One is to make sure that communities are aware of the wealth that we have underground here, and the opportunities that we can have when we explore that. “And second is (to) make government aware of the wealth here and the profit that they can get out of it if they . . . effectively contribute to the process.”

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Gold miner Goldcorp is cornerstone of the Red Lake community

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario Mining Association member Goldcorp’s Red Lake Mines is the cornerstone of its namesake community in the northwestern corner of Ontario.  Though the impact of this mining operation is felt regionally, provincially, nationally and internationally, its role is the most profound within sight of its headframes.

Red Lake, which is located in the Central Time Zone, more than 1,900 kilometres north and west of Toronto, has a current population of about 5,200.  It is comprised of the communities of Red Lake, Balmertown, Cochenour, McKenzie Island, Madsen and Starratt-Olsen.  Goldcorp is the largest employer in the community with approximately 1,000 workers and 500 contractors on board.

Goldcorp’s operations, which are all underground, in this area are supported by four headframes and hoists and two milling facilities with a capacity of 2,800 tonnes per day.  Red Lake Mines is the largest gold producer among Goldcorp’s multiple operations in Canada, the United States and Latin America.  In 2012, Red Lake Mines is expected to produce between 460,000 and 510,000 ounces of gold.  In 2012, Goldcorp’s total production from all of its operations is expected to be between 2.35 and 2.45 million ounces of gold.

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OMA member profile: Rubicon’s Phoenix Gold Project [Red Lake] — new mines from old sites (5)

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

For Ontario Mining Association member Rubicon Minerals Corporation, like the reference of its name to Roman history, there is no turning back as it advances its Phoenix Gold Project in Red Lake towards adding to the 26 million ounces produced in this historic gold area.  Rubicon acquired control of the property in 2002 and it has a bullion production target of the first quarter of 2014.

“This is an interesting and exciting project, which has a history,” said John McDonald, Mine Manager.  “It is not often that you can jump relatively quickly from advanced exploration, to mine development and potential production in a short time period.”

Rubicon inherited some infrastructure from what was known as the old McFinley Mine site, which never really was a gold producer.  Claims were first staked on this property in 1922 and initial underground exploration took place in 1956.  From 1982 to 1989, further exploration was carried out, a shaft was built, three underground levels were developed in the mine, a 150-ton-per-day mill and tailings compound were built and bulk sampling was done on a satellite target, which lies approximately 500 metres away from the eventual discovery.

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OMA member profile: Claude Resources Madsen — new mines from old sites (4)

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario Mining Association member Claude Resources is making progress toward having its Madsen advanced exploration project contribute once again to the total of more than 26 million ounces of gold, which have been produced in the Red Lake district.  The Madsen Mine, which is located about 10 kilometres west of Red Lake, operated from 1938 to 1976 and produced more than 2.4 million ounces of gold during that period.

Since taking over the Madsen property in 2008, Claude Resources has been refurbishing the hoist, shaft and headframe, preparing the mine and mill for future production and carrying out further exploration drilling to expand resources.  Mitch Kocis, Madsen Project Manager, presides over decades old collections of geological maps of the site.

“This site goes back to the late 1930s and the changes in these maps tell a story,” he said.  “You can see the changes in the geologist’s thinking from decade to decade as part of the evolution of this property.”  The site has a 4,100-foot-plus shaft, a 500 ton per day mill that could be expanded to 750 tons per day and a tailings management facility in place. 

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Red Lake amps up electricity fight – by Ian Ross (Northern Ontario Business – July 2012)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

Out of power?

There’s a “looming electrical power crisis” in Red Lake, one of the world’s gold mining capitals, and its economic development officer is looking to garner regional support to push for transmission line upgrades.
 
Bill Greenway wants to kick off a lobbying campaign directed at the Ontario Power Authority (OPA) to build a beefed-up transmission line to service a slate of new mine developments.
 
Since 1930, the Red Lake district has been a consistent producer of high- grade gold. But while much of the province’s power planning attention is directed at the Ring of Fire in the Far North, Greenway feels his town’s concerns have been placed on the backburner.
 
“I’d like to think we have a Ring of Gold,” said Greenway. He maintains the current 115 kV (kilovolt) high voltage serving Red Lake is inadequate to meet the municipality’s and industry’s future growth needs.

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