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Preliminary Review Summary of Mining Operations

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Preliminary Review Summary of Mining Operations BRITISH COLUMBIA DEPARTMENT OF MINES HON. W. A. MCKENZIE, Minister. EOBT. DUNN, Deputy Minister. J. D. GALLOWAT, Provincial Mineralogist. J. DICKSON, Chief Inspector of Mines. BULLETIN NO. 3, 1930 PRELIMINARY REVIEW AND SUMMARY OF MINING OPERATIONS FOR THE YEAR 1930, IN THE PROVINCE OF BRITISH COLUMBIA COMPILED BY JOHN D. GALLOWAY, Provincial Mineralogist. PRINTED BY AUTHORITY OF THE LEGISLATIVE ASSEMBLY. VICTORIA, B.C.: Printi d by CHARLES F. BANPIBLD, Printer to the King's Most Excellent Majesty. 1930. BCEMPR iBULL 3-1930 EMPR: c. 2 MAT Hi.ii 111 Ralney, Eant Side of Portland Canal near Stewart. To the Hon. W. A. McKenzie, Minister of Mines, Victoria, B.C. SIR,—I beg to submit herewith a preliminary review and summary of mining operations in the Province for the year ending December 31st, 1930. The object of this bulletin is to summarize briefly the progress of the industry and to estimate approximately the value of the mineral production for the year 1930. Included are reports on each of the Mineral Survey Districts of the Province by the Resident Engineers and a summary regarding coal-mining by the Chief Inspector. I have the honour to be, Sir, Your obedient servant, JOHN D. GALLOWAY, Provincial Mineralogist. Bureau of Mines, Victoria, B.C., December 15th, 1930. PRELIMINARY REVIEW AND SUMMARY OF MINING OPERATIONS, 1930. GENERAL SUMMARY. BY JOHN D. GALLOWAY, PROVINCIAL MINERALOGIST. The gross value of the mineral production of the Province for 1930 is estimated at $55,164,515, a decline from the output in 1929 of $13,080,928, or 19.15 per cent. The following table shows the estimated production for 1930 and comparative figures for 1929 :— ESTIMATED MINERAL PRODUCTION FOR 1930. (1929 FINAL FIGURES SHOWN FOR COMPARISON.) PRODUCTION, 1929. ESTIMATED PRODUCTION, 1930. Description. Quantity. Value. Quantity. Value. Increase. Decrease. Gold, placer, oz 6,983 $118,711 9,100 $154,700 $35,989 Go'Id, lode, oz 145,339 3,004,419 154,000 3,183,457 179,038 Silver, oz 9,918,800 5,256,270 11,800,000 4,534,268 $722,002 Copper, lb 101,483,857 18,375,6S2 92,000,000 11,9'28,720 6,446,962 Lead, lb 302,346,268 15,269,696 320,000,000 12,605,120 2,664,576 Zinc, lb 172,096,841 9,268,792 2-50,000,000 9,043/250 225,542 Coal, tons ('2,240 lb.)... 2,251,252 11,256,260 1,878,000 9,390,000 1,866,260 Structural materials 3,921,768 3,400,000 521,768 Miscellaneous minerals and metals 1,773,845 925,000 848,845 Totals §68,245,443 $55,164,515 $13,080,9'2S The value of the metallic production—gold, silver, copper, lead, and zinc—amounts to $41,449,515, the coal production to $9,390,000, and the output of structural materials and miscellaneous products is valued at $4,325,000. Increased quantity outputs are shown for gold, silver, lead, and zinc, with decreases in coal and copper and a lowered valuation for structural materials and miscellaneous products. The big drop in the gross value is mainly accounted for by much lower metal prices and a decreased coal-output. It is remarkable, however, to note that, notwithstanding very much lower metal prices, record outputs of silver, lead, and zinc will have been made this year. Valued at 1929 prices, the estimated mineral production for 1930 would approximate nearly $70,000,000, which shows that quantity production of metals and minerals during the year has, in the aggregate, been at the greatest rate in the history of mining in the Province. The tonnage of ore mined and treated in the Province in 1930 is estimated at 6,600,000 tons, as compared with 6,977,681 tons in 1929. The closing of a number of mines at different times during the year accounts for the decreased tonnage. The average gross value of the ore mined during the year is estimated at $6.25 a ton, as compared with $7.35 a ton in 1929. This drop of 15 per cent, in the value of the ore mined reflects the effect in the aggregate of the lowered metal prices prevailing during 1930. Profits of the industry will be considerably less this year than in recent years. The official index of profits is dividends, but these usually lag a bit behind in indicating current profits. Dividends for 1930 will not be as much lower than for 1929 as the lessened profits for this year would indicate. This year a bigger percentage of profits has been paid as dividends and in some cases surpluses have been dipped into. It is estimated that a total of $11,000,000 or more will be paid out in dividends for 1930. While the dividend record this year will be satisfactory, the outlook is for lower dividends in the next few years than in recent years. However, dividends are not so important to the life of the Province as steady pay-rolls and the money circulated for supplies, transportation, etc. 6 BUREAU OF MINES. The year 1930, now approaching its end, has been an unfortunate one for the mineral industries of the world. The mining of minerals and the production of metals is a business peculiarly dependent on world progress, and during the past twelve months normal business has been severely interrupted. The two important factors in denoting hard times for the miner of base metals are extremely low prices for metals and the difficulty of marketing these metals even at the prevailing low prices. Similarly, industrial depression has caused declines in all the varied branches of the industry—at least in dollar values. However, in spite of an unusually bad year for the world in general, mining in British Columbia has held up remarkably well in 1930. The main mines of the Province have continued production and in some instances have increased their outputs; and some new mines have commenced production. Although numerous small properties have closed down and many pessimistic statements are made, if viewed in a broad way the conclusion must be that British Columbia's mining industry has weathered the storm of depression in a better way than might have been expected. The bulk of the metallic mineral production of the Province for the last five years has been made by five mines, and the record of the past year shows that many small mines closing down affects but little the total production. During the last three years, development had indicated that a number of properties were likely to become producers in the near future. Five of these were brought into production since December, 1929, but abnormally low metal prices and the uncertain future outlook for improvement have stopped certain of these enterprises and have caused capital to look more for high-grade properties than before. It cannot be expected, there• fore, that the industry will do much more than hold its own, so far as metal production is concerned, until prices improve materially. It is decidedly encouraging, however, that during a period of world depression in mining (except gold) British Columbia should have made such a splendid record. With improvement in world conditions, which is bound to come sooner or later, the mineral industry of British Columbia will continue to expand in future years as it has in the past. PRODUCTION OF VARIOUS MINERALS BRIEFLY REVIEWED. Placer Gold.—The production of placer gold is estimated at $154,700, as compared with $118,711 in 1929. The principal placer-mining camps are in Atlin, Cariboo, and Quesnel, while less important areas, such as Liard, Omineca, Clinton, Similkameen, and Fort Steele, add to the production in proportion. The production-from Atlin during the last two years has been much less than normal, as the three larger companies have confined their attention to develop• ment-work. Indications are that the increase shown by this camp this year over 1929 will continue in the future. Cariboo Division made about the same production as in 1929, but many plans now under way may result in a larger output in future years. Quesnel Division made a substantially larger output in 1930 than in the previous year and future prospects are encouraging. The interest now being taken in gold-mining is stimulating an increased interest in placer- mining, and this branch of the industry may be expected to return gradually to something approaching its former importance. Lode Gold.—The production of lode gold for the year is estimated at $3,183,457, an increase of $179,038, or 6 per cent., as compared with 1929. The largest part of the gold-output comes from the Premier mine, which made a lower output in 1930 than in the preceding year. The next most important gold-mine is the Pioneer, which gives every indication of becoming of increasing importance in the future. The Reno and Union mines are new producers this year, the former being a straight gold-mine and the latter a gold-silver property. The Nickel Plate mine is still producing gold, but not as much as in former years. A few small gold properties and by-product production from copper-mining account for the remainder of the gold-output of the Province. It is quite apparent that there is an active interest in searching for gold properties in British Columbia. A number of small properties in the Nelson Division are being developed and many old properties are being carefully examined. Silver.—The production of silver is estimated at 11,800,000 oz., as compared with 9,918,800 oz.
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