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Minister of Mines PROVINCE of BRITISH COLUMBIA

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Minister of Mines PROVINCE of BRITISH COLUMBIA Minister of Mines PROVINCE OF BRITISH COLUMBIA ANNUAL REPORT for the Year Ended 31s December 1959 BRITISH COLUMBIA DEPARTMENT OF MINES VICTORIA, B.C. HON. W. K. KIERNAN, Minister. P. J. MULCAHY, Deputy Minister. J. W. PECK, Chief Inspector of Mines. S. METCALFE, Chief Analyst and Assayer. HARTLEY SARGENT, Chief, Mineralogical Branch. K. B. BLAKEY, Chief Gold Commissioner and Chief Commissioner. Petroleum and Natural Gas. J. D. LINEHAM, Chief, Petroleum and Natural Gas Conservation Branch. To His Honour FRANK MACKENZIE Ross, C.M.G., MC., LL.D., Lieutenant-Governor of the Province of British Columbia. MAY IT PLEASE YOUR HONOUR: The Annual Report of the Mining industry of the Province for the year 1959 is herewith respectfully submitted. VI. K. KIERNAN, Minister of Mines. Minister of Mines Office, March 31st, 1960. Brian Terence O’Grady died at Victoria on July lZth, 1959, at the age of 76. He had been in the employ of the Department from 1920 until his retirement in April, 1948. He was very well known in the mining industry. Mr. O’Grady was born in Madras, India, and was educated in Eng- land at Wellington College and the Royal School of Mines. After three years in South Africa he came to Canada in 1907. From 1910 to 1913 he was engineer in charge of surveys for the Municipality of Victoria. He was on active service from 1914 to 1918, winning the Military Cross and the Serbian White Eagle. He joined the Department as Assistant Resident Mining Engineer at Revelstoke in 1920, became successively Resident Mining Engineer at Nelson and Vancouver, and from 193X was engaged in special work at Victoria. In 1942 he joined up as a captain in the Pacific Command and was field supervisor of the Pacific Coast Militia Rangers. While in Victoria he was adviser to the Superintendent of Brokers, and for several years after retirement he did consultive engineering work for the Department of Public Works and the Depart- ment of Mines. Mr. O’Grady is survived by his widow, one son, and one daughter. LIST OF ILLUSTRATIONS CONTENTS A7 LIST OF ILLUSTRATIONS-Continued ANNUAL REPORT OF THE MINISTER OF MINES 1959 Introduction A Report of the Minister of Mines of the Province of British Columbia has been published each year since 1874. The Annual Report records the salient facts in the progress of the mineral industry, also much detail about individual operations, including those undertaken in the search for, exploration of, and development of mineral deposits, as well as the actual winning of material from mineral deposits. The Annual Report of the Minister of Mines now contains introductory sec- tions dealing with Statistics and Departmenta! Work, followed by sections dealing with Lode Metals; Placer; Structural Materials and Industrial Minerals; Petroleum and Natural Gas; Inspection of Lode Mines, Placer Mines, and Quarries; Coal; and Inspection of Electrical Equipment and installations at Mines and Quarries, each with its own table of contents. A table listing the properties described, in geographic groupings, precedes the index. An introductory review of the mineral industry and notes at the first of several of the main sections deal generally with the industry or its principal subdivisions. Notes in the various sections deal briefly with exploration or production operations during the year or describe a property in more complete detail, outlining the history of past work and the geological setting as well as describing the workings and the mineral deposits exposed in them. Some notes deal with areas rather than with a single property. The work of the branches of the Department is outlined briefly in the section on Departmental Work. This section is followed by notes dealing briefly with the work of other British Columbia or Federal Government services of particular inter- est to the mineral industry of British Columbia. Information concerning mine operations and some of the activities of the Inspection Branch of the Department of Mines is contained in the section on Inspection of Lode Mines, Placer Mines, and Quarries, early in the section on Coal and in the section on Inspection of Elec- trical Equipment and Installations at Mines and Quarries. The section on Statistics begins with an ontline of current and past practice in arriving at quantities and calculating the value of the various products. Review of the Mineral Industry* The final figures for 1959 mineral production in British Columbia indicate that, compared with 1958, the aggregate value increased 2.8 million dollars. How- ever, the 1959 figure, $149,56X,162, is 8 per cent below the average for the past decade. Compared with 1958, the value for principal metals was virtually unchanged, gains were recorded for miscellaneous metals, industrial minerals, and fuels, and a 5-per-cent loss was recorded for structural materials. Average prices for the principal metals year by year are shown on page A 14. The 1959 price for gold, almost the lowest in ten years, reflects the high discount on United States funds in Canada. The average discount for 1959 was 4.09 per cent, compared with 2.91 per cent for 1958. For silver, copper, and zinc, price gains more than offset the greater discount, and the prices in Canadian funds exceeded those of 1958. The lead price was slightly below that of 1958. The price for copper improved almost 12 per cent compared with the 1958 price and stimulated copper output, which substantially exceeded the 1958 figures in quantity and value. The improvement in copper production is partly obscured by the fact that from late August until the last few days of 1959 the Tacoma smelter was closed because of a strike. During that period most of the copper concentrates produced in British Columbia and some gold concentrates were stockpiled. Although the mines operated during the period, the concentrates remaining in the stockpiles at the end of the year are not credited to 1959 production. For the other lode metals of the principal metals group, 1959 quantities were a little below those of 1958 and, except for zinc, values also were below 1958 levels. The miscellaneous metals group increased, compared with 1958, because of increases in iron ore and by-product metals. Industrial minerals increased because of increases in asbestos, sulphur, and gypsum. The decline in the structural materials group from the 195X level stems from reduced output of sand, gravel, rubble, riprap, and crushed stone; the other items of the group-cement, lime and limestone, and stone-increased. Coal output has been falling since 1956, and the 1959 value was about half that of 1956; however, increases for oil, natural gas, and natural-gas liquids more than offset the decrease in coal, giving a combined value for fuels that is the highest in three decades. Comparison of 1959 output for any mineral product with that of 195X or any year in the period 1950-59 can readily be made in Table III, pages A 16 and A 17. The percentage of the aggregate value contributed by each group of products in 1959, with the average for the ten-year period in brackets, were: Principal metals, 62.6 (72.7) per cent; miscellaneous metals, 7.6 (6.8) per cent; industrial min- erals, 9.4 (4.5) per cent; structural materials, 12.7 (9.X) per cent; fuels, 7.6 (6.0) per cent. Comparison with earlier decades would make it apparent that industrial minerals and structural materials, and some metals of the miscellaneous group have been gaining in relative importance as well as in dollar value. The increased output of copper resulted from the resumption of production at the Britannia and Woodgreen mines and the beginning of production by Phoenix Copper Company Limited. Nickel production was resumed at the Pride of Emory property, which had closed in 195X. Iron ore was shipped from four mines, the Nimpkish and Hualpai companies shipping for the first time. The Torbrit company closed its operation at Alice Arm, having produced 18,600,OOO ounces of silver since production began in 1949. REVIEW OF THF. MINERAL INDUSTRY, 1959 A I1 Exploration and development were carried on actively in many parts of the Province, interest being directed toward the principal metals, toward iron and mo- lybdenum, and also toward siliceous flux and industrial minerals. The number of lode mineral claims recorded in 1959 was 13,455, just four fewer than in 1958; the number of certificates of work issued was 13,818, some 3,760 more than in 1958. The acreage held for petroleum and natural gas under lease, permit, or licence in northeastern British Columbia increased; holdings in other areas decreased substantially. Exploration was carried on in many areas, but drilling was confined to northeastern British Columbia. In that area drilling was done on 140 wells- forty-four were completed as gas wells, twenty as oil wells, forty-six were abandoned, and at the end of the year two were suspended and twenty-eight drilling. Production of oil, natural gas, and natural-gas liquids all increased, oil production increasing more than SO per cent compared with 1958. Revenue to the Government from petroleum and natural gas amounted to $16,575,155.81, including rental fees, penalties, and miscellaneous $4,790,850.90, tender bonus $10,990,814.32, and royalties $793,453.90. The average number employed through 1959 in placer, lode, coal, industrial- mineral, and structural-material mining was 10,779. Major expenditures by all branches of the industry included: Salaries and wages, $49,961,996; fuel and electricity, $7,677,321; process supplies (inclusive of explosives, chemicals, drill- steel, lubricants, etc.), $17,371,638; Federal taxes, $8,401,819; Provincial taxes, $2.195,194; municipal and other taxes, $2,059,480; levies for workmen’s com- pensation (including silicosis), unemployment insurance, and other items, $2,140,- 113.
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