Canterra enduring downturn
Company says challenges won't hinder exploration work
Karen K. Ho
Northern News Services
Monday, November 30, 2015
SOMBA K'E/YELLOWKNIFE
Canterra Minerals Corp. may be taking longer than expected to raise $500,000 in its latest round of financing - which has been extended three times - but president and CEO Randy Turner insists its Hilltop project in the territory is still going forward.
Canterra president and CEO Randy Turner, left, with geologist Kendra Johnston at Javaroma in Yellowknife during their 36-hour visit on Nov. 18. - Karen K. Ho/NNSL photo |
"It is fair to say, it is the toughest that any of us have ever seen," he said. "Whether it's gold or diamonds or whatever, this industry has had its most challenging last couple of years than ever. And I've been in it a long time. People are hunkering down."
Even with that mood in this industry, this year there was a record number of people attending the Yellowknife Geoscience Forum.
While Turner and geologist Kendra Johnston were not able to attend this year, the two did squeeze in a 36-hour visit to the territory the week prior to the three-day event.
Turner and Johnston said the high cost of operating in the North can be a deterrent for exploration but that this is not unique to Northern Canada.
When asked about a recent report about an anticipated decline in exploration spending in the territory for the year, Turned said the country as a whole was experiencing a downturn in commodity prices.
"To single out the NWT, that it's downturning here, it's parallelling exploration in most other places in Canada and elsewhere," Turner said. "I think the NWT is still a great place to explore. The opportunities for discoveries here is huge but it takes dollars and the investment dollars in junior exploration market are just not there."
The Vancouver-based resource and diamond exploration company was one of this year's recipients of the GNWT's Mining Incentive Program which they say has helped the organization whether the downturn.
"I think the Mining Incentive Program was a nice bonus for us," Johnston said. "We were up here exploring prior to receiving that grant funding. I think it's important to note that it's helping industry move forward in a rather tough time."
"We really hope they will continue that program because it is an incentive," Turner said. "I think it really encourages and helps the junior explorer. These programs are really crucial in the downturn in the mining sector."
Both Turner and Johnston said exploration continues to be extremely expensive.
"This area up here needs as much exploration as we can get," Turner said, adding that many of the territory's diamond mines are maturing.
"There hasn't been a major discovery here in 15 years. It's going to be a very challenging time for the next 15 to 20 years if we've got no new mines coming on."
The company's Hilltop Property is approximately 185 kilometres northeast of Yellowknife and about 45 kilometres southwest of De Beers' Snap Lake Diamond Mine in the Lac de Gras area.
"You've got to come here and keep your name out there and let people know you're still exploring and active," Turner said.
Turner and Johnston also planned on meeting with government officials, communities and suppliers during their time in Yellowknife.
When it comes to the claim from the Lutsel K'e Dene First Nation that Canterra did not communicate with the organization in an Oct. 13 e-mail to the Mackenzie Valley Land and Water Board, Turner and Johnston said they were working to talk it out.
"As a exploration company, in order to do our part we do have discussions with the local groups," Turner said. "We've done this and we will continue to do this, to inform people of our activities. It's good corporate governance."
The president and CEO also cited his company's junior status and its limited access to funds.
"We also feel we all have to work together in the future," he said.
"I think it's important to us to have a good working relationship with anybody within the region," Johnston added. "All of those relationships are important to make sure a project of any size goes forward. It is something we'll put time and energy into and that's proof of us being here to meet with various groups."
Over the next six to 12 months, Turner and Johnston said they plan on continue exploring and that results from their latest samples will determine how extensive their plans will be for next year.
"Diamond exploration is a slow process," Turner said. "We'll continue to be here because we think there's a lot of opportunity. It's just not as easy as it was back in 1992. It's a whole different game."
