History Of Mining - MineralsEd

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A HistoryofMining And MineralExplorationinCanadaAnd OutlookFor The FutureNatural Resources Ressources naturellesCanadaCanadaRessources naturellesNatural Resources

A HistoryofMining And MineralExplorationinCanadaAnd OutlookFor The FutureDonald A. CranstoneNatural Resources Ressources naturellesCanadaCanadaRessources naturellesCanadaNatural ResourcesCanada

Minister of Public Works and Government Services Canada – 2002Catalogue no. M37-51/2002EISBN 0-662-32680-6Additional copies of this publication are available inlimited quantities at no charge from:Minerals and Metals SectorNatural Resources CanadaOttawa, Ontario K1A 0E4Telephone: (613) 947-6580Facsimile: (613) 952-7501E-mail: dcransto@nrcan.gc.caIt is also available on the Internet at:http://www.nrcan.gc.ca/mms/topi-suje/hist e.htmCette publication est aussi disponible en français, sous le titreHistorique de l’exploration minérale et de l’exploitation minièreau Canada et perspectives pour l’avenirNo de catalogue : M37-51/2002FISBN : 0-662-87640-7This publication is printedon recycled paper.

ForewordThis report traces the emergence of Canada's mineral industry and providesconcise information on production, reserves, exploration results and outlook. Thereport is being published by Natural Resources Canada and also by the Germangovernment's Bundesanstalt für Geowissenschaften und rohstoffe (FederalInstitute for Geosciences and Natural Resources) for distribution in Germany inthat organization's Rohstoffwirtschaftliche Länderreihe series, a series of reportsconcerning various countries that present summaries of topics such as their geology, mineral industries and production, mineral resources, mineral deposits andmineral production economics.A brief summary chapter entitled "Canada's Petroleum Industry," included forthe benefit of German readers, will also be of interest to Canadians.Richard T. Haworth, Ph.D.Assistant Deputy MinisterMinerals and Metals Sectoriii

Table of ContentsForewordiii1.Early History of Canada's Mineral Industry12.History of Prospecting and Mineral Exploration in Canada53.Canada's Mineral Production Through the Years94.Exploration Expenditures in Canada for e of Changing Metal Prices on ExplorationDiscussion5.Changing Rates and Costs of Ore Discovery in Canada6.Ore Reserves and the Long-Term Future of CanadianMineral Production6.16.26.3IntroductionCanada's Reserves of Metal in OreSummary of Canada's Ore Reserves in the Future131415172727367.The Future of Mineral Exploration in Canada398.Canada's Petroleum Industry419.Sulphur Production in Canada4510.Principal Mineral Areas of Canada4711.List of References49List of Figures1.1Map of Canada Showing Locations of Places Mentionedin the Text23.1Value of Canada's Non-Petroleum Mineral Production,1886-200093.2Canadian Silver Production, 1869-200093.3Canadian Lead Production, 1887-20009v

3.4Canadian Gold Production, 1858-20003.5Canadian Nickel Production, 1889-2000103.6Canadian Platinum Group Metals Production, 1887-2000103.7Canadian Cobalt Production, 1904-2000103.8Canadian Copper Production, 1848-2000103.9Canadian Zinc Production, 1898-2000113.10Canadian Molybdenum Production, 1902-2000113.11Canadian Uranium Production, 1933-2000113.12Canadian Iron Ore Production, 1886-2000113.13Canadian Asbestos Production, 1880-2000113.14Canadian Gypsum Production, 1874-2000113.15Canadian Potash Production, 1958-2000123.16Canadian Salt Production, 1886-2000123.17Canadian Coal Production, 1867-2000123.18Canadian Peat Moss Production, 1941-2000124.1Prospecting and Exploration Expenditures in Canada,1946-2000134.2Comparison of Exploration Expenditures for Uranium inCanada and the NUEXCO Uranium Price, 1970-90164.3Total Exploration Expenditures in Canada and the MetalPrice Index, 1969-2001165.1Nickel Discovered in Canada by 10-Year Period, 1846-1985175.2Copper Discovered in Canada by 10-Year Period, 1846-1985175.3Zinc Discovered in Canada by 10-Year Period, 1846-1985185.4Lead Discovered in Canada by 10-Year Period, 1846-1985185.5Molybdenum Discovered in Canada by 10-Year Period,1846-1985185.6Silver Discovered in Canada by 10-Year Period, 1846-1985185.7Gold Discovered in Canada by 10-Year Period, 1846-1985185.8Nickel Discovered in Canada by Three-Year Period, 1946-9019vi9

5.9Copper Discovered in Canada by Three-Year Period, 1946-90195.10Zinc Discovered in Canada by Three-Year Period, 1946-90205.11Lead Discovered in Canada by Three-Year Period, 1946-90205.12Molybdenum Discovered in Canada by Three-Year Period,1946-90205.13Silver Discovered in Canada by Three-Year Period, 1946-90215.14Gold Discovered in Canada by Three-Year Period, 1946-90215.15Uranium Discovered in Canada by Three-Year Period, 1946-90215.16Value of Metals Discovered in Canada at 1987-91 AveragePrices, by Three-Year Period, 1946-90225.17Exploration Expenditures in Canada by Three-Year Period,1946-90225.18Value of Metals Discovered in Canada Per Dollar Spent onMineral Exploration, by Three-Year Period, 1946-90225.19Copper Discovered in Canada by Geological Deposit Type, byThree-Year Period, 1946-90235.20Zinc Discovered in Canada by Geological Deposit Type, byThree-Year Period, 1946-90245.21Gold Discovered in Canada by Geological Deposit Type, byThree-Year Period, 1946-90255.22Uranium Discovered in Canada by Geological Deposit Type,by Three-Year Period, 1946-90266.1Value of Mine Production in Canada by Commodity, 2000276.2Canadian Proven and Probable Reserves of Nickel Metal inOre, 1974-2000286.3Canadian Nickel Reserves-to-Production Ratio, 1973-99286.4Canadian Proven and Probable Reserves of Copper Metal in Ore,1974-2000296.5Canadian Copper Reserves-to-Production Ratio, 1973-99296.6Canadian Proven and Probable Reserves of Zinc Metal in Ore,1974-2000306.7Canadian Zinc Reserves-to-Production Ratio, 1973-99306.8Canadian Proven and Probable Reserves of Lead Metal in Ore,1974-200031vii

6.9Canadian Lead Reserves-to-Production Ratio, 1973-99316.10Canadian Proven and Probable Reserves of Molybdenum Metalin Ore, 1974-2000326.11Canadian Molybdenum Reserves-to-Production Ratio, 1973-99326.12Canadian Proven and Probable Reserves of Silver Metal in Ore,1974-2000336.13Canadian Silver Reserves-to-Production Ratio, 1973-99336.14Canadian Proven and Probable Reserves of Gold Metal in Ore,1974-2000346.15Canadian Gold Reserves-to-Production Ratio, 1973-99346.16Canadian Measured and Indicated Uranium ResourcesRecoverable at Prices Up to 100/kg of Uranium, 1975-2000356.17Canadian Uranium Resources-to-Production Ratio, 1974-98358.1Volume of Canadian Production of Crude Petroleum, 1881-2000428.2Volume of Canadian Production of Natural Gas, 1913-2000428.3Volume of Canadian Production of Natural Gas By-Products,1961-2000428.4Value of Canadian Crude Petroleum Production, 1886-2000428.5Value of Canadian Natural Gas Production, 1886-2000428.6Value of Canadian Natural Gas By-Products Production,1886-2000429.1Canadian Elemental Sulphur Production, 1956-200045viii

1. Early History Of Canada'sMineral Industry1The first Aboriginal inhabitants of the WesternHemisphere arrived about 40 000 years ago, mostlikely from Asia during a late Pleistocene interglacialperiod, but possibly by boat across the Pacific orAtlantic oceans. They used various minerals to produce tools, weapons and decorative objects, includingpebbles and cobbles for tools and weapons, and flint,chert, pipestone, native copper, gold, silver andturquoise, many of which were traded amongst theAboriginal peoples.Vikings from Iceland were the first Europeans knownto have reached Canada. About the year 1000, asmall group of them sailed from Greenland to L’Anseaux Meadows on the northern peninsula of the islandof Newfoundland, where they lived for several years.Almost 500 years later, in 1497, John Cabot sailedfrom Bristol in England to “discover,” in June of thatyear, what was most probably the island of Newfoundland. Within only a few decades, thousands offishermen from Portugal, France and England werefishing on the Grand Banks, an area of continentalshelf in the Atlantic Ocean to the south of Newfoundland. Some fishermen stayed the winter in Newfoundland during the 1500s, but the first small permanent English settlement was established in 1610at Conception Bay in eastern Newfoundland. TheFrench had established the first permanent European settlement in what is now Canada at QuébecCity two years earlier in 1608.The early settlers in Canada produced a limited number of mineral commodities for local use, chieflybuilding stone, brick clay, sand, gravel, and lime formortar and plaster. Coal was discovered on CapeBreton Island, Nova Scotia, by the French in 1672(Figure 1.1). The British Navy first obtained coalthere in 1711. In New Brunswick, coal was firstmined by settlers in 1782. Coal was discovered inAlberta in 1800 and, on Vancouver Island, BritishColumbia, coal deposits were discovered in 1835 and1850.Iron ore was found along the St. Lawrence River nearthe mouth of the Saint-Maurice River and smeltedthere to produce iron for local use beginning in 1737.During and after the American Revolution, Britishloyalists (United Empire Loyalists) from the UnitedStates moved in the 1780s and 1790s to easternCanada, including what is now southern Ontario,where iron furnaces utilizing local ore were erected in1800, 1820 and 1822. The earliest recorded Canadian production of gypsum was in Nova Scotia in1789 and in Ontario in 1822.Initial Canadian nonferrous metal production, of copper, began in 1848 at a mine on the north shore ofLake Huron at Bruce Mines, Ontario, mining adeposit that had been discovered there in 1846.Canada’s first production of gold was in the late1850s from the small Early Bird mine on the QueenCharlotte Islands of British Columbia. Placer goldhad been found on the Chaudière River in Quebec’sEastern Townships in 1823, but production there didnot start until 1862. Placer gold was discovered andinitially produced in 1859 in the Cariboo region ofBritish Columbia, which has yielded a total of some110 tonnes (t) of gold, with minor amounts of goldstill being produced from small lode-gold depositsthere. Gold was also discovered in Nova Scotia, withthe initial gold discovery there made in 1860. Overthe years, some 45 t of gold were recovered in NovaScotia, all of it from small gold deposits. Petroleum,found in 1857 at Oil Springs, Ontario, near LakeErie, represented North America’s earliest commercial petroleum discovery (see Chapter 8, “Canada’sPetroleum Industry”).Cariboo gold, Ontario petroleum, and increased output of Cape Breton coal marked a turning point inCanadian mineral production from minor local eventsto developments of greater significance. During the1870s, a phosphate industry based on apatite wasdeveloped in western Quebec and adjacent easternOntario with by-product sheet phlogopite and sheetmuscovite production from many small carbonatitedeposits located within 100 or 150 km of Ottawa, the1 The sources of the historical information presented in thischapter and in Chapter 2, “History of Prospecting and Mineral Exploration in Canada,” are: 1) the author’s knowledge, gathered from many sources over the past 45 years,and 2) a listing of Canadian mining events over the period1604-1956 compiled and published in 1957 by the DominionBureau of Statistics - now Statistics Canada (see DominionBureau of Statistics, 1957, in the list of references).

2A History of Mining and Mineral Exploration in Canada

A History of Mining and Mineral Exploration in Canadanational capital. In the 1880s, asbestos was discovered in the Eastern Townships of Quebec to the southof the St. Lawrence River, and this area is still aworld-class asbestos-producing region. Nickel-copperdeposits were discovered at Sudbury, Ontario, aftermineralization was exposed in 1883 in a rock cut during construction of the Canadian Pacific Railway towestern Canada, near what became the Murraymine. The Frood mine, also at Sudbury, where production commenced in 1887, was still in operation in2000 but with its end in sight after yielding an estimated 5 million tonnes (Mt) of nickel, 5 Mt of copper,900 t of silver, 55 t of gold, and substantial quantitiesof platinum group elements, selenium, tellurium, ironore pellets, and sulphur dioxide gas used to producesulphuric acid and liquid SO2.Prospecting in southern British Columbia led to thediscovery of a substantial number of gold, silver andbase-metal deposits, including, in 1893, the exceptionally large Sullivan lead-zinc-silver deposit atKimberley, British Columbia, which closed in 2001after yielding 10 Mt of lead, 10 Mt of zinc, 9900 t ofsilver, and much smaller quantities of antimony, tin,bismuth, cadmium, gallium, germanium and indium.In 1896, the discovery of placer gold on the KlondikeRiver in the Yukon Territory resulted in the biggestgold rush in Canadian history. Some 430 t of placergold have been recovered from the Yukon where theproduction of placer gold has continued from variousrivers and streams over a period of more than 100years and from recently developed lode-gold mines.In 1903, silver was discovered at Cobalt, Ontario,during railway construction. Many high-grade butrelatively small-sized vein-type silver-cobalt-nickelarsenide deposits were discovered in the vicinity ofCobalt, which became one of the world’s major silverproducing districts. More than 18 000 t of silver, plusquantities of cobalt and nickel, were recovered atmines in the vicinity of Cobalt between 1903 and1989 when production was suspended at the oneremaining mine because of low prices. Additional silver production at Cobalt is likely in the future, if andwhen the silver price increases.3

2. History Of Prospecting andMineral Exploration In CanadaPrior to the 1870s or 1880s, nearly all of the significant mineral deposits in Canada were discoveredaccidentally by individuals who were not activelysearching for deposits. The discovery of placer gold inthe Cariboo district in 1859 resulted in gold and basemetal prospecting in the mountainous regions ofBritish Columbia and also in gold prospecting in theYukon Territory. Similarly, the discovery of lode-golddeposits in Nova Scotia resulted in widespreadprospecting activity there. Prospecting activityslowly spread to other parts of Canada. In 1909,prospectors found high-grade gold quartz veins in thePorcupine District of Ontario (now the City of Timmins). More than 2200 t of gold have been producedfrom this district and production continues frommines there, both old and new. In 1911, prospectorsdiscovered another major gold deposit, which becameknown as the “Golden Mile,” at what is now the townof Kirkland Lake, Ontario. Some 800 t of gold havebeen recovered from the six or more mines on thissingle gold deposit. Production had continued thereuntil 1999 from the one remaining mine, the Macassamine, which is currently closed awaiting higher goldprices. In the province of Quebec, immediately to theeast of Ontario, many important gold deposits, thelarge Noranda copper-gold deposit, and other basemetal deposits were discovered, beginning in the1920s, by prospectors working along what becameknown as the Rouyn–Val-d’Or gold belt. Additionaldiscoveries are still being made along this belt.Prospectors spread through northern Quebec,Ontario, Manitoba and Saskatchewan, making discoveries and arriving at the Yellowknife gold districtin the Northwest Territories in the mid-1930s. Manynew orebodies were discovered in these previouslyunknown gold-bearing areas.In these early days of the industry, many prospectorswere “grubstaked” (that is, their prospectingexpenses were financed by local business people, insome cases by individual business people and sometimes by “syndicates” of several people in return foran interest in any discoveries made by the prospectors). Small companies, known as “junior companies,” were formed to explore for discoveries andhopefully to develop mines on deposits found. Theyobtained the needed funding by selling companyshares to the public.Until float-equipped aircraft became generally usedfor transportation into remote areas of Canada,prospectors searching for mineral showings in theCanadian Shield normally traveled by canoe andlived in tents. In the 1920s and 1930s, many miningcompanies formed their own exploration departments, employing their own geologists and prospectors.Except for gold and silver, metal prices were lowduring the Great Depression of the 1930s, and,as a result, exploration for non-precious metalswas severely reduced. In 1934, the United Statesincreased the gold price from US 20.67 toUS 35.00 per troy ounce (31.103 grams), leading to amajor increase in gold exploration, gold mine development and gold production in Canada. In 1939, warsoon brought exploration to a halt, except explorationfor strategic minerals not normally available fromsources in North America, such as chromite, manganese, tin and tungsten. At most mines, work toreplace the ore mined by new reserves either ceasedor was cut to an absolute minimum.When the war with Germany began, the UnitedStates was a neutral nation and Canada had to payfor needed war material imports with U.S. dollars orwith gold. As a result, the manpower, equipment andsupplies needed for gold mining in Canada receivedCanadian government priority. In 1941, a lend-leaseagreement was worked out so that war materialscould be obtained from the United States on credit.Gold mining lost its priority and it became impossiblefor many gold mines to obtain the people and suppliesthat were needed to continue to produce. The resultwas rapid closure of many of the gold mines inCanada, and employment and production were cutback at those gold mines that did continue to produce.When the war ended, gold exploration resumed inCanada in 1945 and 1946, but inflation and a fixedgold price soon made it unattractive to explore forgold. New exploration opportunities soon appeared.There were urgent military requirements for uranium. Exploration for that metal was greatlyassisted during the 1940s by use in Canada andelsewhere of the Geiger counter, invented in Germany in the 1920s and adapted in Canada in theearly 1940s as a field instrument for uranium

6A History of Mining and Mineral Exploration in Canadaexploration. Subsequently, the Canadian inventionof the much more sensitive scintillometer as a mineral exploration instrument in the early 1950s provided a sensitive radiation detector that could detecturanium from much greater distances than had beenpossible with the Geiger counter. The subsequentinvention of the gamma ray spectrometer made itpossible to distinguish radiation from specificradioactive elements, making it possible to determinewhether the radiation came from uranium, thoriumor other elements – something that the Geigercounter and scintillometer had been unable to do.Radioactive minerals could now be much more readily detected and important uranium deposits weresoon discovered at Beaverlodge Lake, Saskatchewan(the first orebody was discovered there in 1948), inthe Bancroft District of Ontario (first ore discovery in1949), and at the major Elliot Lake, Ontario District(first ore discovery in 1953). Canada’s original uranium mine had been discovered in 1930, at whatbecame known as Port Radium, on the east short ofGreat Bear Lake in the Northwest Territories. Untilthe early 1940s, radium was the principal product ofthe mine, used for the treatment of cancer, with theuranium being a by-product used in colouring glassand in ceramic glazes, but the emphasis shifted in1943 to uranium for the production of nuclearweapons. Reactor-produced nuclear isotopes are nowused for medical and engineering inspection purposesand the market for radium has disappeared.The ability to detect radioactivity was not the onlynotable development of new geophysical instruments.During the war, the airborne magnetometer wasdeveloped to detect submarines. It was recogni

Natural Resources Canada Ressources naturelles Canada Natural Resources Canada Mining And Mineral Exploration CanadaCanada A History of And Outlook For The Future in. eoure naturelle . mineral industries and production, mineral resources, mineral deposits and mineral production economics.

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