Manitoba Mining Information

Drilling the Manitoba Gold - The Rush is On

A featured story in today’s local business section of The Winnipeg Free Press (Wed Feb 13 2008), is running under the headline

Manitoba gold rush is on — let the drilling begin

Martin Cash the author, reports on interviews with company executives and market analysts, discussing Gold and Manitoba gold mines. Highlights of the story include an interview with Stephen Mlot the CEO of Carlisle Goldfields Ltd a gold exploration company that has just started a new phase of drilling at its MacLellan gold project near Lynn Lake.

Mr Mlot says he is not happy about the way the markets are treating junior mining companies these days, but he is very happy about the price of gold. He goes on to say “At some point, investors will say the large gold companies are too expensive and that there is a better bang for their buck from the junior companies. When the sentiment moves away from the major companies, it will return to the juniors.” Mr Mlot, was in Winnipeg Tuesday speaking to investors and potential investors.

Further into the story the reporter quotes David Stein, an analyst with Cormark Securities in Toronto “Back in 2001, if you talked to me about $500 per ounce, let alone $900 per ounce, I would have though a lot of big mines would be in production by now, but they are not.” Stein said he believes a company like San Gold will eventually be able to benefit from the market, but it has to be patient. San Gold, which opened the old Harmony gold mine in Bissett in 2006, expects to produce 50,000 ounces of gold in 2008 and get that up to close to 150,000 ounces by 2010.

On the subject of San Gold Corp he adds “With those volumes, it would be among the top 10 producers in Canada.

There is more gold exploration in Manitoba these days than anyone can remember resulting from several key factors including: the province’s rating as being number one in mining policy and the price of gold. Companies that are presently mining, exploring and developing Gold Deposits in Manitoba, creating the action in the new Gold Rush are:

San Gold Corp. (SGR) — Currently the only gold producer in the province, the Bissett-area mine is forecasting production of 50,000 ounces this year and up to 150,000 ounces by 2010. Additional exploration is going on, with promising results 1.5 kilometres from its mine.

Carlisle Goldfields Ltd. (CGJ) — Extensive exploration is ongoing in the hopes of reopening the MacLellan gold mine near Lynn Lake that has been closed since 1989. Company officials are working on a feasibility study, and a resource estimate report is expected within weeks.

Garson Gold Corp. (GG) — Garson is doing exploration towards reopening the New Britannia Mine, which operated from 1949 to 1958 and again from 1995 to 2004. New drill results were announced Tuesday. Some say it could be the province’s next producing gold mine.

Harvest Gold Corp. (HVG) — One of a handful of junior exploration companies drilling on properties in and around San Gold’s Bissett mine.

Rolling Rock Resources Corp. (RLL) — Just started a winter drilling project at its Domain property 15 kilometres east of Oxford House in northern Manitoba.

Black Pearl Minerals Consolidated Inc. (BLK) — Active on a property called Gold Dust Zone near Snow Lake.

Puma Exploration Inc. (PUM) — This Quebec-based company is working a possible gold property near Little Stull Lake in the God’s Lake region of northeast Manitoba.

There are numerous other companies that are actively exploring for gold and other minerals in the province creating a new level of industry activity. In fact total (all metals) mineral exploration expenditures are expected to reach the $100 million dollar level this year in Manitoba. This figure is double what was spent in 2007 and four times the total of only five years ago.

Winnipeg Free Press