Tag Archives | northern Ontario

A Ten Point Northern Ontario Stimulus Package – by Dr. David Robinson

Dr. David Robinson - Laurentian University Economist

 Dr. David Robinson is an economist at Laurentian University in Sudbury, Canada. His column was originally published in Northern Ontario Business.

Harper has adopted the coalition budget. He will spend up to $30 billion to moderate the recession that he recently discovered. That is $895.66 for each man, woman and child in Canada. Northern Ontario has 678,900 of Canada’s 33,495,032 citizens. Our share of the stimulus package is $563 million. We should make sure it is well spent.

Economic stimulus is not about bailing out companies by giving them money. It is about helping businesses survive by stimulating demand. That’s why there is so much emphasis on  infrastructure projects. Infrastructure usually means roads, and other public works. Infrastructure projects put the construction industry to work. The construction industry hires unemployed workers. Since supplies are generally bought locally, infrastructure projects boost the local economy.

Tax cuts, on the other hand, are a very poor way to help Northern Ontario. If you give every Northerner $895, a lot of it would be spent on consumer goods. Canada imports consumer goods, so a tax cut goes almost directly to foreign producers. The Harper-Flaherty GST cut was terrific for our trading partners.

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Historically, the Value of Gold Always Rises During a Financial Crisis – Gregory Reynolds

When in the midst of a perfect hurricane that is threatening the world’s financial structure, it helps to remember an old adage – To know where you are going, look back to where you have been.

The era that should be examined is the Great Depression which began in 1929 with many similar events to what happened in the past few months. It didn’t officially end until 1939 when the world plunged into the Second World War but the reality is that the worst ended in 1934.

The slow climb to normality took six years but it could be seen and measured.

The single most important step taken by the United States, then as now a world power, was the decision on Jan. 31, 1934 to raise the price of gold from US$20.67 an ounce to $35 an ounce.

As president of the United States, Franklin Delano Roosevelt surveyed the wreckage of the U.S. banking system and decided drastic action was required. On March 6, 1933 he closed all the banks for a three day holiday.

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Junior Miner Canadian Arrow on Solid Ground with First Nation – by Ian Ross

This article was first published in Northern Ontario Business, a newspaper that has been providing northerners with relevant and insightful editorial content, business news and information for over 25 years.

First Nation approval was key in Canadian Arrow Mine’s gradual development of its highly-prospective Kenbridge nickel deposit in northwestern Ontario.

At a spring awards gala of the northwestern Ontario mining fraternity, a speaker at the podium described the rugged (and somewhat shadowy) individual freedom of the prospector.

“It happens in the bush, where no one knows what you’re doing, and you move from place to place.”
Secrecy, deception and pipe dreams have all been part of mining lore.

Yet Canadian Arrow Mines president Kim Tyler never could quite fathom over his 27-year mining career why the industry chooses to keep matters close to the vest.

“There’s more to be gained in sharing information than in being secretive.” says the former geologist for Inco, Teck-Cominco, Royal Oak Mines and Rio Tinto.

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Timmins – the Legendary Porcupine – has a Golden Prosperous Future – by Gregory Reynolds

Gregory Reynolds - Timmins ColumnistThe world-wide boom in commodities has seen profits for Canadian mining companies soar and shareholders are loving it.

Buried in the good news is an interesting development that may prove beneficial to mining companies and the communities dependent upon them even after base and precious metal prices hit the bottom of the present cycle.

Flush with profits, mining companies are taking intense and expensive looks at former producers in Ontario’s historic mineral camps. What this is doing in the short term is putting pressure on the exploration sector as companies turn back to Red Lake, Kirkland Lake, Sudbury and Timmins while coping with a shortage of workers.

Still, it is good for the local economies and contains the promise of a bright future if mineable ore can be found in closed workings.

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Excerpt From Michael Barnes New Book – More Than Free Gold: Mineral Exploration in Canada Since World War II

More Than Free Gold - Michael BarnesFaults and Fissures Vein Deposits

The discovery of silver and gold vein deposits marked the start of Canada’s mining legacy. The discovery of gold at Kirkland Lake and Timmins and silver in Cobalt and near Thunder Bay set the stage for the development of these parts of Canada’s hinterland and founded the development of a mining culture that continues today. …

Gold mining has come a long way in Ontario since the first property, the Richardson Mine in Eldorado near Madoc, fizzled shortly after its 1867 opening. The scattering of small mines working in northwestern Ontario eked out a few ounces of gold in the early part of the twentieth century. The success of the Cobalt camp gave witness to the Mexican proverb, “It takes a silver mine to make a gold mine,” by providing a labour pool and ready financing for the rich gold bonanzas of the Porcupine and Kirkland Lake.

The Porcupine-Timmins area produced 67 million ounces of gold from 48 mines between 1910 and 2004. The smaller but richer grade Kirkland Lake camp had an output from twenty-four mines that gave up 42 million ounces between 1917 and 1990.

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The Shy Philanthropist from Schumacher – Michael Barnes

They speak well of Fred Schumacher in the community which honours his name just outside of Timmins. He was well-to-do before he came to the gold camp and seems to have made money for fun there.

Born in Denmark in 1863, the young immigrant to the United States eventually became a pharmacist but he did not make drug dispensing his occupation. Instead he became a salesman and later married the daughter of the firm’s owner.

He founded his own patent medicine firm and became rich in the process. Then he decided he needed some excitement in his life and investigated the potential of the new gold-fields in Northern Ontario. Continue Reading →