Published September 18, 2024

Nelson Sergerie, LJI Journalist

Gilles Gagné, The Gaspé Spec Editor

 MURDOCHVILLE – Even though all the analyses are not yet complete, Robert Wares, president and chief executive officer of Osisko Metals, believes that with the current data, a revival of Murdochville’s Gaspé Mines is likely. 

On September 10, Mr. Wares made his third presentation in two years, aiming to showcase the progression of the Osisko Metals project over the last three years. Approximately 115 people attended the presentation, with the attendees mostly expressing support for the mine’s reopening. However, there were questions regarding the venture’s timeline and environmental aspects. 

Robert Wares stated that a revival of mining activities in Murdochville in the next six or seven years will largely depend on the rising price of copper, the main condition needed for  profitability. 

“We hope to have a minimum price of US$4.25 per  term. We hope it will go higher, to US$5.00. Several economists predict that the price will rise to US$5.00 and remain there for the next five years. At this price, it would be very profitable,” says Mr. Wares. 

Copper is currently trading at around US$4.10 per pound. The effects of a worldwide shortage could be felt as soon as 2025, added Robert Wares, specifying “This metal is vital for the decarbonization of the economy.” 

The preliminary economic study will likely be filed in February. An in-debt feasibility study will be required to find investors. However, $1.8 billion of capital will be needed to reopen the Mount Copper open pit and install an ore concentrator. The site of the former smelter will be used in the latter case.   Robert Wares mentions that $70 million will have to be raised between now and 2028 to move the venture forward. He is confident about that possibility as well. 

When Mr. Wares was asked if, with the current data, would the company launch the project today if it could, he was categorical in his answer: “In my opinion, yes. Yes, absolutely.” 

The environmental aspect still worries a few citizens, particularly the dewatering of the Mount Copper mine pit and the caribou protection line that encroaches on the mining area. 

In the latter case, the encroachment comes from the fact that Osisko Metals must submit two eventual locations for the mine tailings. One is situated east of the projected mine, at the original location  used by Gaspé Copper Mines, and the other is located to the northwest, encroaching on the caribou protection zone. 

“We have had very few questions about the long-term environmental impact. Minister (of the Environment, Benoit) Charette’s new caribou habitat regulation zone could potentially be a problem for the mining development of Mines Gaspé. We will file a brief in October to express our concerns and propose to the government to push the eastern limit of the residential zone, 10 to 15 kilometres further west to free up the territory,” explains Mr. Wares. 

“There is no evidence of caribou presence in this area,” he says, arguing that the will decide where the tailings will go. 

Open pit dewatering 

In regards to the dewatering of the pit and the discharge into the York River, the Osisko Metals president assures that he is doing everything in his power to limit the impacts, particularly on the salmon habitat. 

“The goal is to have zero impact on the river. The dewatering will be done over a minimum of two and a half years and the rate will be mitigated depending on the seasons and the volume of water. During the summer, sometimes, the level of the York River is dangerously low. This could be an opportunity to increase the rate to avoid that. We will do new tests this fall. And we believe that we have found a form of passive treatment for the water to reduce the copper levels in the water,” said Mr. Wares. 

This passive treatment uses limestone to clean the water to a certain degree. According to tests carried out over the last few months, the Mount Copper pit water contains 60 parts of copper per billion. 

“The goal would be to reach 20 parts per billion, which would be acceptable to all,” he adds, indicating that this would be under Directive 019 on the mining industry, which sets the acceptable monthly average concentration at 300 micrograms of copper per litre. 

“Salmon don’t react to a lot of other metals but they react a lot to copper. We will even try to reduce the concentration of copper to 15 parts per billion,” says Robert Wares. 

The Mount Copper open pit mine currently contains 35 million cubic metres of water, the equivalent of 35 billion litres. 

Transportation 

The ore produced in Murdochville will likely be transported by truck to Gaspé and would then be transported by ship to smelters located in Europe and by train to the Horne Foundry in Rouyn-Noranda in the Abitibi region.  “It will be up to Glencore to decide,” says Mr. Wares about the destination of the production.  Glencore, the former owner of Gaspé Mines, sold the property to Osisko under an agreement reached in 2022, retaining the right to buy 100% of the mine’s production. 

Jean-Claude Plourde, a resident of Gaspé asked about the impact of the heavy traffic on Road 198, Mr. Wares pointed out that despite “the trucks being bigger today, as they can carry 35 tons,” the number of trucks would also be higher compared to when the first Gaspé mines operated between 1953 and 2002. 

More drilling to come 

The drilling results carried out this year remain encouraging and will be announced by press release this fall. The exploration team drilled over 8,000 metres between the spring and the end of the summer. 

“Additional drilling will be carried out in 2025 in order to get more information about the size of the mine and confirm its copper content. We will drill on Mount Copper towards Mount Needle to determine the limits of the mining zone,” stresses Mr. Wares. 

Quality of life 

Most people who attended the September 10 meeting expressed support for Osisko Metals. Lise Cyr was among them. “I have lived here for 67 years. I think, between you and me, that we are very happy to see that there will be another mine.” 

Julie Lévesque, another Murdochville resident, inquired about the permits needed by Osisko Metals before starting the construction of the new mine and the ore concentration plant that will go with it. 

Robert Wares explained that securing all the permits needed to reopen the mine will take the same time, two years will be required for the company to secure the capital needed to bring the venture to fruition. 

Emmanuelle Desrochers-Perrault, a management consultant and project manager who lives in Murdochville, supports the project but is concerne about the social impact of the eventual mine’s reopening. 

“I am really interested in the environmental aspects of the project. This milieu will remain once we are gone. Our children will stay here. I care about the social impact the project could have for the people who have chosen nature, quietness and an access to the outdoors”, Ms. Desrochers-Perrault points out. 

Citizens who do not want to live in Murdochville could be offered to sell their homes to the company, as was done in Malartic, Abitibi, where Osisko Metals developed a gold mine. 

Mr. Wares hopes to see the mine restart at the end of 2030, but 2031 is more likely. 

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