The Wilmington morning star., 1947-03-02

- oJNSC VI "CAAU
Ear, are keeping their identity Sc
cret. The Quebec provincial leg
islature was told by the provin-
cial minister of mines that a
least three large mining compa.
MES" have sought concessions ad.
joining areas already leased.
1.-THE Northern Miner" a lead
ing trade publication, reports that
several wealthy groups have in.
dicated their interest" and al.
though the source of this capita,
also remains undisclosed, much O.
it is understood to be American.
The deposits are in two conces.
sions, one in Labrador, under the
Newfoundland government, anc
n in Quebec, a province of Can.
ada. The Hollinger Consolidated
Gold Mines, operators of the larg.
est gold mine in Canada, contro.
both concessions, with a minority
interest held by the American M.
A. Hanna company, a firm which
has been in the iron business for
rs years and currently operates
Is iron mines.
The Labrador concession. the
more explored of the two to date
covers 20,0 900 square miles and is
under Hollinger's Labrador Min
ing and Exploration Co. The Que
oes side is worked by the Hol
linger North Shore Exploratio:
Co., which has rights over $500
square miles.
What is known of the deposit.
SO far is based principally on the
findings reported by these tw.
companies, which indicate d tota
OF more than 1850, 900 long ton.
OF ore per vertical foot, with al
average grade of 81 per cent iron
a high content. The American av
erage is a little better than 81
per cent and typical European ore
runs from 30 to IS per cent.
The largest located orebodie,
are from 300 to 1,5Oo feet in widtt
with Individual lengths OF 2 mile
or more. Several holes have beer
orllled to a depth of more thar
200 feet.
The Canadian governments Blu
reau of Statistics describes thu
Observation-Disclosures field as ga ma
Jor potential source Of high grade
IRON ore" and adds that sit seem.
possible that the range Evil
prove to be comparable in impor
lance to the Mesabi range of Min
nesota, the output from which i.
81 1900, 900 tons a year"
Comment in mining circles i.
even more enthusiastic than tina
Of additionally cautious govern
ment statisticians. Members O
the Quebec Provincial Legisla
ture, In debate on a bill which
Trey passed granting rights to tn,
Holllnger interests, were told b,
quebec government officials tina
the company planned eventaall,
to spend 5000, 000, 900 to bring thu
field into production.
Jonathan Robinson, Ouebe,
minister of Mines, said the com
pany planned to build a 350-mile
railway southwark along the Que
pee Labrador boundary, roughl,
following the Romano river t.
the Gulf of st. Lawrence. at a
cost Of $40, 900, 900.
Power would come from thu
Great Hamilton Falls, an undel
veloped torrent OF water near thu
range in Labrador which drop:
zl6 feet, or 149 feet more thar
niagara falls. Docksites on thu
gull, churches, schools and whole
new communities would follow tn,
development.
Hamilton Falls does not 90 witt
the Newfoundland government
concession to the Labrador min
ing and exploration company. bu
the firm does have first rights OF
lt for mining purposes and eth,
Northern Miner" says develop
ment costs would not be exces
sive."
The Quebec lease to the Hol
llnger interests would run to 9
years if all renewal rights are eS
ercised. A $500 square mile are;
is leased for exploration for L
years, inside of which a 300
square-mile plot is for actual ez
ploitation for 20 years with thre
renewal options of 20 years each
This agreement calls for an ar
nual rental Of 500. 900 after tn
company comes into operatio
and a royalty ranging from fou
to seven per cent. The Newfounc
land governments concession fo
the Labrador side stipulates
royalty of five per cent of the ne
profits on ore sold, plus taxes.
THE general conditions for or
Grating are exceptionally favor
ably to low-cost production" sal
an official Of the Canadian go.
ernment's Bureau of Mines. 9Th
capital investment, though large
will not be excessive"
Government officials believ
open.pit mining could be carrie
! on throughout the winter withol
: difficulty. pointing out that this.