Minister of Mines PROVINCE of BRITISH COLUMBIA
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Minister of Mines PROVINCE OF BRITISH COLUMBIA ANNUAL REPORT For the Year ended 31st December 1948 BRITISH COLUMBIA DEPARTMENT OF MINES VICTORIA, B.C. Hon. R. C. MACDONALD, Minister. JOHN F. WALKER, Deput?J Minister. JAMFS STRANG, Chief Inspector of Mines. G. CAVE-BROWNE-CAVE, Chief Analyst and Assayer. HARTLEY SARGENT, Chief Mieing Engineer. P. J. MULCAHY, Chief Gold Conm?issio?ze? To His Honow CHARLES ARTHUR BANKS, C.M.G., Lieutenant-Govenlol, of the Province of British Columbia. MAY IT PLEASE YOUR HONOUR: The Annual Report of the Mining Industry of the Province for the year 1948 is herewith respectfully submitted. R. C. MACDONALD, Minister of Mines. Minister of Mines’ O,@ce, Mav, 1949. rials, 1947 and 1948 ~~~~ ~~~~ 25 Table XII (Graph).-British Columbia Mine Production, 1895-1948 ~.~~~~~~~~. 26 Table XIII (Granh) .-Eritish Columbia Lode Mines Production. 1913-48 ~~~, 27 A6 REPORT OF THE MINISTER OF MINES, 1948. ANNUAL REPORT OF THE MINISTER OF MINES, 1948. Review of the Mining Industry. Ey Hartley Sargent. The value of British Columbia mineral production in 1948 was $152,524,‘752. This record value may be compared with $113,221,254, the 1947 value, and with $60,525,000, the average value for the preceding twenty-five years. There were moderate increases in the quantities of all the principal metals and of structural materials in 1948, but the great increase in value can be traced in a great measure to substantially increased unit prices for copper, lead, zinc, and coal and to a moderate increase in the price of silver. Quantities and values of the principal products for 1948 and 1947 are given in Table I (p. 13). Metal prices for each year beginning with 1901 are given in Table II (p. 14). The valuation of coal is the subject of a paragraph on page 12. The quantities of the principal products mined in 1948 are considerably greater than in several recent years when the output was reduced because of war conditions and strikes. In quantity, placer gold, silver, and copper were considerably less than the average for the last twenty-live years, while lode gold, lead, and zinc were not very far from the twenty-five-year average; however, the high prices for silver, copper, lead, and zinc in 1948 gave the output of these five metals a combined value of approxi- mately $126,500,000, compared with $55,500,000 in 1938, and an average of about $47,200,000 for the last twenty-five years. Antimony, bismuth, cadmium, tin, tungsten, and sulphur had a combined value of $5,190,660 in 1948. The price for tungsten concentrates fell from, $30 to $24.50 per unit of tungstic oxide during 194X. The Emerald mill has been converted to treat lead-zinc ore, and the production of tungsten concentrates has been suspended. Coal production in 1948 was 1,809,018 short tons, compared with 1,923,5’73 short tons in 1947. The 1948 output was somewhat less in quantity than the average for the nineteen-forties but was considerably greater than in the nineteen-thirties. Because of the increased price, the value was the highest for any year since 1929. Produc- tion on Vancouver Island has been reduced in recent years because of the declining output of the Nanaimo field. The Table River mine near Comox has been under development, and when it reaches full production, an increase in the Vancouver Island output is expected. Since 1940 well over half the output for the Province has come from the Crowsnest Pass field, and in the past two years production from strip mines in that field has amounted to an important part of the total output. Strip mining has also been started in the Princeton field. Exploratory work has demonstrated that the gypsum deposit, discovered in 1947, near Windernwre is very large. It is proposed to ship crude gypsum from this deposit to a processing plant to be built near Spokane. Exploratory work was done on a deposit of asbestos (variety anthophyllite) near Okanagan Falls. The output of cement, clay products, sand, gravel, and other structural materials was high in 1948. The loss of the Kilgard plant of the Clayburn Company by fire, early in 1949, will seriously reduce the output of clay products until a new plant is built. 1 A8 REPORT OF THE MINISTER OF MINES, 1948. Drag-line dredges accounted for most of the placer gold recovered in 1948. After construction of 68 miles of road from the Alaska Highway a dredge was built on &Dame Creek and was operated from May until the end of the season. A new dredg- ing operation was begun on Pine Creek. These two new dredges and the dredge of the Swift River Dredging Company recovered most of the placer gold mined and were responsible for the considerable increase over the 1947 output. The Atlin placer- mining area had another very quiet season, and there was less than usual activity in hydraulic mining in the Cariboo. The Lowhee hydraulic mine, which has been operated each year since about the beginning of the century, was operated successfully by four men on a lay; company operation of the mine ended in 1947. In 194X lode-gold xnining may have passed the most difficult part of a very unfavour- able period, marked first by war-time difficulties in obtaining men, supplies, and equip- ment, and subsequently by greatly increased prices for materials, greatly increased wages, shortage of lahour, and the loss of the exchange premium. Unit costs are still high, hut more labour is obtainable and some hen&t is being received under the “ Emergency Gold Mining Assistance Act,” The Silbak Premier mine was shut down in July and the Privateer was shut down in November. Production began at the Premier mine in 1918, and continued under the name of Silbak Premier when the adjoining Prem,ier, 6.C. Silver, and Sebakwe properties were consolidated in 1935. The combined production amounted to about 1,750,OOO oz. of gold and 37,000,OOO oz. of silver, as well as some copper, lead, and zinc. Dividends paid amounted to more than $21,000,000. The mine was not eligible for assistance under the ” Emergency Gold Mining Assistance Act ” because silver, lead, and zinc were contributing mcwe than NO per cent. of the value of the output. The Polaris-Taku, Cariboo Gold Quartz, Island Mountain, Bralorne, Pioneer, Nickel Plate, and Hedley Mascot mines were operated throughout the year. Milling was resumed late in the year at the Sheep Creek mine. Prevailing high prices stimulated interest in silver and base-metal properties, and substantial progress was made in development programmes and in provision of plants. The major copper producers operated continuously. A mill was built at the gold-copper property of Vananda Mining Company at Vananda, and exploratory work was done on properties near Nicola and Phoenix. Silver and silver-lead-zinc properties in widely separated parts of the Province received much attention. At the Sullivan mine the new main haulage-level was nearly completed and changes were being made in the mill. Exploratory work and development were done by the Consolidated Mining and Sm&ing Company on properties at Riondel, near Nakusp, and at Tulsequah. Other companies did work on properties in the East Kootenay, Sloan-Ainsworth, and Nelson areas, and at Hazelton and Alice Arm. The Sullivan, Base Metals, Lucky Jim, Whitewater, Western Exploration, and Highland Bell mines were the principal producers of silver-lead-zinc and silver ore. The Bri- tannia mine, in addition to copper, produced a substantial quantity of zinc concentrates. Ore from several properties was milled on a customs basis at the Western Exploration and Whitewater concentrators. A new mill at the Silver Standard mine at Hazelton came into production in September, a mill for the Torbrit silver mine was essentially complete by the end of 1948, and preparations for production of lead-zinc ore were well advanced at the Emerald and the Reeves MacDonald properties. The high prices for silver, lead, and zinc made it possible to ship ores and concen- trates long distances. In 1948 shipments were made to the Trail smelter from Aus- tralia, Hong Kong, Peru, and Quebec, as well as from, northern Washington. Late in 1948, production of iron ore for export to a ferro-alloy plant at Wenatchee, Wash., was begun near Quinsam Lake, Vancouver Island. REVIEW OF THE MINING INDUSTRY. A9 Production was recorded in 1948 from 99 lode-mining operations, including gold mines, copper mines, silver and silver-lead-zinc mines, one tungsten mine, and one producer of siliceous flux. These numbers include properties from which shipments of a few tons were made as well as the large producers. The total quantity* of ore mined in 1,948 was 5,766,970 tons. The net value of the output of lode mines was $101,519,910. The quantity of coal mined was 1,809,018 tons. The average number employed in all branches of the mining industry was 16,397, salaries and wages totalled $38,813,486, expenditures for fuel and electricity amounted to $6,139,174, and for process supplies amounted to $11,532,181; Dominion taxes amounted to $16,974,914, Provincial taxes to $5,141,148, and municipal and other taxes to $475,516; Workmen’s Compensation, silicosis, unemployment insurance, and other levies amounted to $1,530,238; dividends paid in 1948 amounted to $37,672,319. * rncluding tuwsten ore an.3si!ieeo”r flux IYarn lodeminer Statistics. Mining statistics are collected and compiled and the statistical tables for this Report are prepared by the Bureau of Economics and Statistics, Department of Trade and Industry.