Technology opens path to undiscovered minerals.

Technology is pushing exploration companies where they have never gone before. At the front end the industry has developed new techniques in mineral exploration that help geologists see more of what's under the ground. On the back side they've come up with wonderfully innovative mining methods that give them a path to minerals that had been out of reach.

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Mining companies have to be cognizant of the fact that they can now look at exploration in different ways, according to Saskatchewan Mining Association Exploration Section Chairman Charles Roy.

"The exploration community has to be aware of these new technologies that may allow us access to deposits that are more difficult to mine," Roy says, using freeze technology along with raise bore and potentially jet bore mining as examples of how mining has advanced.

Non-conventional mining techniques are--understandably--not looked at when highly cost-effective approaches such as open pit mining can be used to extract minerals. However, there will come a time when companies in Saskatchewan will take greater advantage of these new methods.

"While it is true the Athabasca Basin is mature and being depleted, I would argue there is still great potential there and that two-thirds of the basin hasn't been fully explored," Roy says, pointing to the west side of the Athabasca Basin as being under-explored, particularly when it comes to the deeper targets.

Research done at universities around the world and an influx of federal research money have gone part-way in the direction of improving exploration techniques. There is more work to be done but geologists now have a better understanding of how deposits are formed and with the help of new and deeper-penetrating airborne systems they will get a head start on finding new deposits.

Roy estimates 20 per cent of exploration budgets are spent on advanced deposits while another 20 per cent is directed to brown field exploration, bringing to mind "the old adage that the best place to look for a mine is within sight of the head frame of another mine." The largest slice of the exploration pie feeds ventures into uncharted territory or the so-called green field or grass roots exploration.

Higher commodity prices over the last year led to a bit of an acceleration in exploration activity heading into 2004 and Roy predicts that we're about to see a furious pace when it comes to the search for uranium. It's either that or companies will have to look at diversifying globally.

"It takes about 20 years to go from discovery to production, and right now we're saying that in eight to 10 years or perhaps less the demand for uranium is going to exceed supply," he says.

From a historical perspective the search for uranium is a relatively young science. Although it has been mined since the early 1940s the federal government were the only explorers until 1948. After those reins were taken off there was a wave of exploration in the 1950s and early 1960s and another wave during the energy crisis of the mid-1970s when all the major oil companies were in the Athabasca Basin looking for uranium. The coming wave will be a mix of junior and established companies.

"We're seeing a lot of increased junior activity in the province, companies that raise money quickly and make decisions quickly," Roy explains. "Plus the large companies, Cameco and COGEMA, are still very active and are in it for the long term, looking 25 to 30 to 40 years down the road."

Exploration for diamonds is now on par, in dollar value, with uranium exploration in Saskatchewan. Shore Gold has gone underground at their site east of Prince Albert and are expecting results from that endeavor later this year.

"I think what will go a long way is if they can demonstrate they are getting high enough grades to justify moving ahead," Roy says.

Exploration companies are working in the largest known kimberlite field in the world but with the amount of overburden they have to deal with, compounded by a cover of sand that makes it impossible to do traditional till sampling, picking one spot over several hundred hectares and drilling to recover a sample is 'like looking for a needle in a haystack'.

"The fact that a gem quality diamond was found in a drill core from the De Beers, Kensington, Cameco and UEM Inc. Joint Venture (in December of 2003) is fairly rare, almost amazing to find. The area continues to show great potential."

Another commodity sparking interest around Saskatchewan is a rare earth occurrence northeast of Uranium City. As well, there still exists the potential for another viable gold mine to complement the Seabee mine.

"The problem with gold in Saskatchewan is that while geologically everything is right, all these other deposits have been fairly small," which Roy says brings up the concept of transporting all the ore to a central mill.

"I do believe that if gold prices stay at the $400 (U.S., per ounce) mark you'll see more companies exploring in the province."

Roy sees two fairly large hurdles facing the exploration industry and both touch on Aboriginal involvement in mining. The first has to do with Aboriginal land ownership and the duty companies have to consult with local, traditional land owners. There is a global awareness of Aboriginal rights during exploration that must be respected, Roy says.

The second issue gives rise to the potential for greater Aboriginal employment in mining. Rising commodity prices spurs activity and increases the demand for skilled and educated workers both within mining companies and in the industry's support sectors. Aboriginals in the exploration industry are in a position to capitalize.

"I see a real bottleneck coming in that there's just not enough people or companies available to do some of the basic exploration activities such as line cutting and geophysics," Roy says. "There are a lot of opportunities for people within companies, opportunities for joint ventures with existing companies and opportunities for people with an entrepreneurial spirit."--J.A.