The Canadian mining industry contributes significantly to the Canadian economy. The country is rich in mineral and metal endowments making Canada one of the leading producers metals and minerals. Since the industry contributes greatly to the economy the government has been supportive of Canadian companies that are running operations in several places.
Canadian miners enhance exploration and drilling activities
There is huge potential in the mining industry and most companies have invested significantly in exploration activities. The companies seek to discover new deposits that will help them in strengthening their portfolios. For instance, Pan American Silver Corp (NASDAQ:PAAS) has announced an initial mineral resource estimate of around 72.5 million tonnes at the La Colorada mine in Mexico.
The company discovered the Polymetallic deposit in 2018 and it averaged 44 grams per tonnes of silver 4.40% zinc, 2.02% lead, and 0.17% copper. The inferred mineral resource assumes a cut off value of around $60 per tonne after factoring smelting, refining and transportation costs.
The company’s VP Business Development and Geology Christopher Emerson indicated that the discovery of the initial inferred resource containing 102 ounces and other metals shows the significance of the exploration. He added that it is only a year since they announced the discovery of mineral resources in the area. The company has completed drilling around 54,000 meters into the mineral deposit.
Kirkland Lake Gold report exploration result for Macassa mine
Also Kirkland lake Gold (NYSE:KL) has reported new drill results from its underground exploration at the Macassa Mine in Ontario. The latest results include 45 drill holes from the west and east exploration drifts on the 5,300 level and 5,600 Ramp. The company indicated that the results reported were from three underground drill rigs that target Amalgamated Break and SMC East and West. Kirkland Lake Gold plans to continue drilling through the rest of 2019.
Kirkland Lake Gold CEO and President Tony Makuch stated that the results show considerable exploration potential at the Amalgamated Break. Equally, they increase the company’s confidence that it can significantly grow the SMC. The CEO added that the company had identified potential areas of high-grade mineralization and there are plans to continue drilling and exploring new high-grade zones.
Barrick Gold to drop $1.5 billion of unprofitable assets
Barrick Gold Corp has announced that it is a step closer to selling its entire 90% stake in the Massawa project in Senegal. The company will sell its stake to Teranga Gold Corporation for around $430 million. This sale is part of the company’s strategy that seeks to drop around $1.5 billion of its unprofitable mine.
The Canadian gold miner sold 50% of its Kalgoorlie super pit gold mine last month to Australian mining company Saracen Mineral Holding for around $750 million. Equally the company plans to sell its Lumwana copper project in Zambia and the Tongon Mine in Ivory Coast.
This year gold miners have notched transactions or almost $30 billion. This is in a bid to win back investors and replace declining reserves.