Tag Archives | Gregory Reynolds

Postponements to Ontario Mining Act Revisions Best for Industry and Aboriginal Groups – by Gregory Reynolds

Gregory Reynolds - Timmins ColumnistWhen it comes to timing mining cycles or stock movements, when everyone believes something it usually turns out that they are wrong.

The 10-year boom in commodities turned out to be less than four years and no one knows when it will resume.

Yet, there is a bright side for the Canadian mining industry, and especially the Ontario segment. The provincial government has postponed its planned revisions to the Ontario Mining Act.

Bowing to several pressure groups, the McGuinty government had intended to ram through major changes before the New Year. The world-wide meltdown in credit facilities brought the Liberals to their senses.

Ontario has four major industries, new vehicle and parts manufacturing, mining, forestry and tourism. Even before the housing crisis in the United States spread into every sector of the world economy, the forestry industry was written off by Queen’s Park.

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Historically, the Value of Gold Always Rises During a Financial Crisis – Gregory Reynolds

When in the midst of a perfect hurricane that is threatening the world’s financial structure, it helps to remember an old adage – To know where you are going, look back to where you have been.

The era that should be examined is the Great Depression which began in 1929 with many similar events to what happened in the past few months. It didn’t officially end until 1939 when the world plunged into the Second World War but the reality is that the worst ended in 1934.

The slow climb to normality took six years but it could be seen and measured.

The single most important step taken by the United States, then as now a world power, was the decision on Jan. 31, 1934 to raise the price of gold from US$20.67 an ounce to $35 an ounce.

As president of the United States, Franklin Delano Roosevelt surveyed the wreckage of the U.S. banking system and decided drastic action was required. On March 6, 1933 he closed all the banks for a three day holiday.

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Timmins – the Legendary Porcupine – has a Golden Prosperous Future – by Gregory Reynolds

Gregory Reynolds - Timmins ColumnistThe world-wide boom in commodities has seen profits for Canadian mining companies soar and shareholders are loving it.

Buried in the good news is an interesting development that may prove beneficial to mining companies and the communities dependent upon them even after base and precious metal prices hit the bottom of the present cycle.

Flush with profits, mining companies are taking intense and expensive looks at former producers in Ontario’s historic mineral camps. What this is doing in the short term is putting pressure on the exploration sector as companies turn back to Red Lake, Kirkland Lake, Sudbury and Timmins while coping with a shortage of workers.

Still, it is good for the local economies and contains the promise of a bright future if mineable ore can be found in closed workings.

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Northern Ontario’s “Ring of Fire” Mineral Discovery Sets off Staking Rush – Gregory Reynolds

Gregory Reynolds - Timmins Columnist

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

The results of a single diamond drill hole announced in August of 2007 set off a massive staking rush into the muskeg swamps of Northern Ontario’s James Bay Lowlands.Someone, after looking at a satellite picture of the area, came up with a name for it – the Ring of Fire.

The name quickly became a part of Canadian mining lore and today over 100 companies have holdings inside the ring.

It will take several hundred million dollars to determine whether a new Sudbury Basin type base metal mining camp is being born but the promoters’ hype is that it is so.

That original hole was pulled by a junior company that, as did so many other small exploration ventures, survived ups and downs over the years.Still, Noront Resources Ltd. persevered and it appears Lady Luck has finally asked it to the dance.

What is interesting about the Noront discovery, known as the McFaulds Lake area Double Eagle Project, is that the Aug. 28, 2007 announcement merely hinted at a big find.

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Canada’s Federal Government Making a Mess of Aboriginal Land Claims and Mining Issues – Gregory Reynolds

Gregory Reynolds - Timmins ColumnistThere is a belief among mining people that the land disputes making news almost daily are best left to the two parties directly concerned – provincial governments and Aboriginal groups.

The truth is that two of Canada’s primary industries are threatened by the failure to tackle land claims in a meaningful way.

Mining and forestry have remained on the sidelines while negotiations become pension funds for lawyers and job protection insurance for civil servants.

There is a third party that not only should be at every negotiating table but should be actively involved. That is Canada’s federal government.

More and more native bands are saying they do not want trees cut or mineral exploration on their traditional lands until outstanding claims are settled.

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Map Staking May Not Be The Answer – Gregory Reynolds

Gregory Reynolds - Timmins ColumnistThe Ontario government appears to be boxing itself in when it comes to the issue of map staking.

While large Canadian mining companies and some bureaucrats in the Ministry of Northern Development and Mines (MNDM) favour map staking over the traditional method of acquiring Crown land with the possibility of a mineral resource, prospectors and most small mining companies are opposed.

Actually going into the wilderness and physically walking the boundary of a mining claim, known as ground staking, generates a great deal of wealth for several sectors of the economy.

On the other hand, under map staking, a company or an individual can sit at a computer and pick out the land desired. Upon paying the ministry its fees, the company or the prospector has acquired temporary title to the land.

It must be noted under map staking, a company in Russia or a geologist in South Africa would be able to stake several hundred, or even several thousand, claims if the bill could be paid over the internet.

While the province is considering map staking for south of the French River and the debate over its value has raged over that point, there is another aspect to the situation. Continue Reading →

Gold Prices May Not Have Silver Lining – Gregory Reynolds

Gregory Reynolds - Timmins ColumnistThe long awaited – and predicted – push by the price of gold through the US$1000 an ounce barrier has occurred.

There is jubilation in the hearts of the gold bugs of the world, those faithful who attend conferences year-after-year to hear the word from on high: gold is the only asset to hold.

That the wait between gold’s previous record high in 1980 at US$850 an ounce to the March 13 break through was 27 years is being ignored.

The gold mining industry, especially in Canada, has reason to be happy but there is a need to look past the event and to ask why it happened.

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