Opportunities in Nova Scotia’s Golden Revival

By Investing News Network

In Canada, much of the focus for investment opportunities in mining-friendly jurisdictions has been on Quebec, Ontario, the Yukon and BC.

However, it’s important for investors to understand that viable exploration opportunities are available in Atlantic Canada, particularly Nova Scotia, which has a long mining history dating back to Canada’s first gold rush in 1861 — more than 30 years before the Yukon. Since then and 1976, the province produced some 1.1 million ounces, with historic gold-mining grades ranging upwards of 10 g/t.

Nova Scotia is home to many past-producing mining camps left relatively untouched by modern exploration techniques, all surrounded by well-established infrastructure. In fact, the small province hosts a gold inventory, according to existing resource estimates, of more than 1.8 million ounces in the measured and indicated category, with an additional 2.5 million ounces inferred.

Canada’s first gold rush

Gold was first officially discovered in Nova Scotia in 1860 by John Gerrish Pulsifer, a farmer who turned to prospecting after he learned about the potential discovery of the yellow metal near the Tangier River by Captain Champagne L’Estrange two years earlier. The provincial government’s acknowledgement of Pulsifer’s discovery on the eastern shore kicked off Canada’s first gold rush in the Mooseland and Tangier regions, and it lasted from 1861 to 1874.

Two more gold rushes would sweep the province in the 20th century. The second, between 1896 and 1903, was heralded as a golden age, with mining in Nova Scotia becoming a multimillion-dollar industry dominated by large companies with heavy machinery. Gold was mainly mined from high-grade “nugget” pockets of mineralization concentrated in quartz veins. Rising gold prices in the 1930s sparked the third gold rush, which lasted until 1942, at which time gold mining in the province came to a halt.

The upside to historic mining districts

Today, there are more than 60 historic gold districts in Nova Scotia, many of which have never been fully exploited or explored, especially not with modern exploration techniques.

“The distribution and frequency of historic gold mines in the province speaks to the metals endowment in the district,” said Cooper Quinn, president and director of Osprey Gold Development (TSXV:OS). “In short — there are a lot of old gold mines. This likely means the mineralizing event was widespread and extensive, and there should hopefully be lots more to find.”

As the well-known adage says, the best place to find a new mine is in the shadow of an old mine, and the historic gold camps in Nova Scotia are proving it’s true. “Knowing the rocks are extensively mineralized is a good start — Nova Scotia’s more brownfields than greenfields exploration,” added Quinn. The possibility of hitting pay dirt on a greenfields project is becoming much harder and more expensive for today’s junior resource companies. The past production of those mines shows the gold is there for the taking with the right technology and expertise. Exploring for new discoveries in historic mining camps saves time and money, bestowing significant economic benefits for junior resource companies.

Osprey Gold holds a portfolio of five past-producing properties that are all within close proximity of each other and are interconnected by the same road system — representing a significant land package in Nova Scotia’s gold country.

With the help of modern exploration techniques and historical geological data, companies like Osprey Gold are seeking to unlock the untapped potential in Nova Scotia’s historic mining camps. The properties attracting the most attention are those that encompass a past-producing mine, possess an extensive historical database and have excellent access to infrastructure, including transportation networks.

Goldenville, Osprey’s flagship project, is located about 17 kilometers from Atlantic Gold’s (TSXV:AGB) Cochrane Hill project and 5 kilometers from Sherbrooke in the Goldenville Mining District. The largest historic gold-producing district in the province, it was responsible for 212,300 ounces of gold production between 1862 and 1942. Infrastructure in the area, including roads and power, is well developed.

Intermittent exploration on the Goldenville property between 1961 and 2014 led to the creation of a large database that includes more than 30,000 meters of surface and underground drilling and formed the basis of a NI 43-101 inferred resource of more than 2.8 million tonnes at 3.2 g/t gold for a total of 288,000 ounces of gold.

Nova Scotia: An ideal jurisdiction

Nova Scotia is a favorable mining jurisdiction not only for its mineral wealth. Strategically located along the eastern seaboard of North America, the province hosts deep-water, ice-free ports, along with well-established infrastructure and a skilled workforce.

“Infrastructure in Nova Scotia is a huge advantage over many parts of Canada, especially the north,” said Quinn. “In terms of exploration, we can drive to all of our projects, which means we don’t have to worry about the risk and cost of helicopters, or the expense of a big exploration camp, and we can shorten our downtime. If we get to construction and development, there’s nearby rail, ports and power.”

The province’s streamlined regulatory system rivals its Canadian western counterparts, including BC and the Yukon. In 2012, the Nova Scotia government began a mineral incentive program to help exploration companies in search of new discoveries, including prospector, project funding and research grants.

“Policy wise, Nova Scotia is excellent. Everything from staking information, to government geologists and permitting is very transparent and straightforward,” added Quinn. “There’s recently been an open-pit mine permitted and constructed, showing that it is possible to do so under the current rules and legislation.”

Nova Scotia’s emerging gold producers

Nova Scotia’s mining industry is experiencing a resurgence in activity alongside the government’s support for the sector. According to the CBC, the number of provincial exploration licenses …read more

From:: Investing News Network