MINISTER OF MINES
YEAR ENDED 31s~ DECEMBER
BRITISH COLUMBIA DEPARTMENT OF MINES.
Hon. E. C. CARSON, Minister.
JOHN F. WALKER, Deputy Minister.
JAMES DICKSON, Chief Inspector of Mines.
G. CAVE-BROWNE-CAVE, Chief Analwt and Assayer.
P. B. FREELAND, Chief Mining Engineer.
R. J. STEENSON, Chief Gold Commissioner (deceased).
P. J. MULCAHY, Chief Gold Commissioner.
To His Honour Lieut.-Colonel WILLIAM CULHAM WOODWARD,
Lieutenant-Governor of the Province of British Columbia.
MAY IT PLEASE YOUR HONOUR:
The Annual Report of the Mining Industry of the Province for the year 1942 is
herewith respectfully submitted.
ERNEST CRAWFORD CARSON,
Minister of Mines.
Minister of Mines’ Office,
Robert (Bob) Steenson, Chief Gold Commissioner in the British
Columbia Department of Mines, died on October 2nd, 1942.
Mr. Steenson was born in Victoria on February 19th, 1896, attended
school in that city, and entered the Department of Agriculture ifi
1913. Transferring to the Department of Mines in 1914, he worked
his way up through the positions of Clerk, Mining Recorder and Gold
Commissioner for the Victoria Mining Division to Chief Gold Com-
missioner for the Province.
He was instrumental in introducing modern methods of recording
and filing, including the organization and establishment of a central
recording office in Vancouver which was opened shortly before his
A keen sportsman of sterling character, with an intimate knowl-
edge of departmental affairs accompanied by long service, his loss is
keenly felt both by the Department of Mines and his many friends.
It is with deep regret that the Department of Mines records the
death of Mr. John D. Galloway, which occurred on February 21st, 1942,
Mr. Galloway, although born in New Zealand, spent the greater
part of his life in Canada, especially British Columbia. He attended
school in Greenwood, Vancouver, and Victoria, and in 1907 entered
McGill University, where he took the coume in mining engineering.
Four years later he graduated at the head of his class, winning with
this distinction the Sir William Dawson Fellowship and the British
Association Medal; and, continuing at the University as a postgradu-
ate student, he obtained the M.Sc. degree, in 1912.
In 1913 he joined the British Columbia Department of Mines as
Assistant Provincial Mineralogist. In 1917 he was appointed Resi-
dent Engineer at Hazelton and in 1925 he became Provincial Mineralo:
gist. He resigned in 1934 to engage in private practice as consulting
mining, engineer and geologist.
“John D.,” as he was affectionately known amongst the mining
fraternity, is greatly missed not only as a loyal friend but an out-
standing member of his profession.
Annual Report of the Minister of Mines, 1942.
The Annual Report of the Minister of Mines, first published in 1874, has been
ever since an annual event of interest to the mining industry. The Report appeared
after the appointment of the first Minister of Mines by authority of an Act of the
Legislature, passed in the same year. Previously Provincial mining laws had been
administered by Gold Commissioners, under the direction of the Provincial Secretary,
and for many years subsequently the portfolio for mines was held by the Provincial
The Annual Reports of the Minister of Mines originally comprised the reports of
the Gold Commissioners; the Inspector of Coal Mines, who was appointed in 1877; and
A Bureau of Mines was established by an Act of the Legislature in 1895 and placed
under the supervision of the Provincial Mineralogist, whose reports first appeared in
1896. The Annual Report then comprised the reports of the Provincial Mineralogist,
the Inspector of Coal Mines, the Gold Commissioners, and Mining Recorders. The
report of the Inspector of Metalliferous Mines was added in 1X99.
The organized collection of mining statistics was started by the Bureau of Mines
in 1895 and continued until 1939, when this work was ~taken over by the Bureau of
Economics and Statistics, Department of Trade and Industry.
The Annual Report continued to appear in this form until 1917, when under the
“ Mineral Survey and Development Act ” a number of Resident Mining Engineers
were added to the technical strength of the Department. From 191’7 to 1933, inclusive,
the Annual Report consisted essentially of the work of the Resident Mining Engineers,
and the reports of the Gold Commissioners and Mining Recorders were confined largely
to office statistics and finally combined into a statistical table. In 1934 the Annual
Report appeared in sections as well as a complete volume, and continued in this form
until 1939, when the work of the Department’s Mining Engineers, formerly the Resi-
dent Mining Engineers, first appeared in bulletin form.
Since 1939 the Annual Reports consist of a brief review of the mining industry,
a number of statistical tables regarding production, men employed, dividends paid,
etc., a synopsis of the mining laws of the Province, a summary of the work done by
the Department, progress notes on all active properties inspected or examined by either
the Inspection staff or the officers of the Mineralogical Branch during the course of
the year, and the report of the Chief Inspector of Mines and his staff,
The reports of the officers of the Mineralogical Branch are published now in bul-
letin form. The publication of bulletins by the Department of Mines is not a .new
innovation, as forty-three bulletins covering a variety of subjects had previously been
published between 1896 and 1934, inclusive, as well as a number of separate publica-
tions. In the past the bulletins were not numbered consecutively from year to year
but only for each year, and most of them were embodied in the Annual Report. Corn-
mencing with the present series of bulletins, replacing a large part of the material
formerly contained in the Annual Report, the series is being numbered consecutively
from year to year, and to date seventeen bulletins have appeared in plam much
the material that ordinarily would have been contained in this report and in the
Annual Reports for 1939, 1940, and 1941. A list of these bulletins, as well as other
publications available for distribution by the Department, will be found on page 38.
A 10 REPORT OF THE MINISTER OF MINES, 1942.
THE MINING INDUSTRY.
The value of mine production in 1942 was $75,551,093, a decrease of $2,928,626
from 1941. In the figure of $75,551,093 the value of copper is based upon the London
price, which is used so that value figures in the tables in this Report will correspond
closely with Provincial figures published by the Dominion Bureau of Statistics. The
Dominion Bureau uses the London price because most of Canada’s copper is sold in
London, btit British Columbia’s copper is sold in the United States, and the settlement
is based on the New York price, which is somewhat higher than the London price.
Since the outbreak of war the usual summary and tables reviewing and showing
detailed mine production have not been printed, and cannot be published during the
war. However, all data are being collected and will be available for publication upon
the conclusion of the war.
Compared with 1941 there was a decrease in production in the following: Lode
gold, copper, lead, and clay products. A variable increase is recorded in mercury,
tungsten, zinc, coal, non-metallics, cement, lime, etc. New products embrace arsenic,
tin, and iridium. The decrease in copper production was caused chiefly by labour
shortage, created by the miners either joining the active forces or finding work in
shipyards or other war industries. An attempt was made to remedy this situation
towards the end of the year and more labour was obtained. However, as many of the
new men were unaccustomed to mine-work, the increase in production was slight.
The lode-gold mines suffered more than any other in the industry because of labour
shortages, increased costs, fixed price, restrictions on equipment, and competition with
higher paid war industries. Fourteen or fifteen gold mines and many smaller opera-
tions have closed down during the past two years, most of them in 1942, and the
majority of them war casualties. The output of these properties in 1940 had a value
of more than $5,000,000. The decrease in gold production from 1941 is between four
and five million dollars.
The war-mineral picture is particularly bright. British Columbia’s mercury con-
tribution to the war effort is something to be proud of, and it seems likely that the
Province will be amongst the future mercury producing countries of the world. British
Columbia has also become an important producer of tungsten concentrates and this
production is expected to increase materially in 1943.
Coal showed a substantial increase in 1941 compared to 1940 and this increase
continued well into 1942. From about the middle of the year, however, labour short-
ages and wage troubles created a shortage and, although production was greater than
in 1941, it~did not reach the.proportions anticipated earlier in the year.
Zinc production maintained a high level, but shortage of labour delayed additional
output from a number of idle properties.
Lead is not classed as a war metal but as a by-product of zinc-mining. Produc-
tion has been satisfactory.
The Department, working in co-operation with the University of British Columbia,
the mining industry, the office of the Metals Controller, and the Dominion Department
of Mines, established a War Metals Research Board. The University supplied the
laboratories; the Department, the Metals Controller, and the Dominion Department of
Mines and Resources provided sufficient funds to carry on the work. A four.man
board, representing the University, the Provincial Department of Mines, the Mining
Association, and the Dominion Department of Mines and Resources, administered the
work. The Board “se8 the ore-dressing laboratories of the University of British
Columbia that are idle during the five-month summer vacation. Research-work in the
laboratories was confined to war minerals and their recovery as by-products from
existing operations, as well as treatment methods for the possible recovery ,,f war
minerals from properties not now in production. This work was supplementary to
STATISTICS. A 11
that of the ore-dressing laboratories in Ottawa, already crowded with work, and was
closely related to the field-work of the Provincial and Dominion Departments. The
work done by the Board greatly assisted some mine operators of the Province, who
advanced funds for special research.
The collection and compilation of mining statistics and the preparation of statis-
tical tables for this report is in charge of the Bureau of Economics and Statistics,
Department of Trade and Industry.
METHOD OF COMPUTING PRODUCTION.
The total mine output of the Province consists of the outputs of metalliferous
minerals, coal, structural materials, and miscellaneous metals, minerals, and materials,
valued at standard recognized prices in Canadian funds.
In the Annual Report for 1925 some changes were made in the methods used in
previous years in computing and valuing the products of the industry, but in order to
facilitate comparisons with former years the same general style of tables was adhered
to. The methods used in the 1925 Annual Report have been followed in subsequent
Annual Reports, with the addition of new tables.
The following notes explain the methods used:-
(1.) From the certified returns of lode mines of ore and concentrate shipments
made during the full calendar year by the producers the net recovered metal contents
have been determined by deducting from the “assay value content ” necessary cor-
rections for smelting and refining losses.
In making comparisons of production figures with previous years, it should be
remembered that prior to 1925 in the Annual Reports the total metal production, with
the exception of copper, was determined by taking the assay value content of all ores
shipped: deductions for slag losses were made by taking varying percentages of the
(2.) Gold-placer returns .are recei%d from operators giving production in crude
ounces recovered; these are converted to fine-gold ounces by dividing the crude-ounce
value by the old standard price of gold. The fine-gold content is then valued at the
yearly average price of gold, which in 1942 was $38.50 per bunce. On this basis the
average crude-gold value per ounce was $31.66 on Provincial placer-gold production.
(3.) The prices used in valuing the different metals are: For gold, the average
price for the year; for silver, the average New York metal-market price for the year;
for lead, the average London metal-market price for the year; and for zinc, the average
London metal-market price for the year. Copper in 1942 is valued at the average
London metal-market price. (See foot-note to Table I.) Prior to 1932 copper was
valued at the average New York price. The change was made because very little copper
was being marketed in the United States on account of high tariff charges against
importations from foreign countries. The bulk of the lead and zinc production of the
Province is sold on the basis of the London prices of these metals and they are therefore
used. The New York, St. Louis, and Montreal lead- and zinc-market prices differ
materially from the London prices of these metals and are not properly applicable to
the valuing of the British Columbia production.
A 12 REPORT OF THE MINISTER OF MINES, 1942.
By agreement with the Dominion Bureau of Statistics and the Provincial Statisti-
cal Bureaus, the following procedure of taking care of the exchange fluctuations has
been agreed upon :-
(a.) Silver to be valued at the average iVew York price, adjusted to Canadian
funds at the average exchange rate.
(0.) Lead, zinc, and copper to be valued at London prices, adjusted to Cana-
dian funds at the average exchange rate.
(4.) In 1926 a change was made in computing coal and coke statistics. The prac-
tice in former years had been to list coal and coke production (in part) as primary
mineral production. Only the coke made in bee-hive ovens was so credited; that made
in by-product ovens was not listed as coke, but the coal used in making this coke was
credited as coal production. The result was that the coke-production figures were
incomplete. Starting with the 192GAnnual Report, the standard practice of the Bureau
of Statistics, Ottawa, has been adopted.’ This consists 0‘ crediting all coal produced,
including that used in making coke, as primary mine production. Coke-making is
considered a manufacturing industry. As it is, however, of interest to the mining
industry, a table included in the report shows the total coke produced in the Province,
together with by-products, and the values given by the producers. This valuation of
coke is not, of course, included in the total gross mine production of the Province.
From 1918 to 1930 coal production was valued at $5 per long ton. In 1931 the
price used was $4.50, and from 1932 on the price used has been $4.25 per long ton.
In making comparisons with former years the decline in dollar value is accentuated
by this lowered price.
STATISTICS. A 13
TABLE I.-BRITISH COLUMBIA MINE PRODUCTION, 1941 AND 1942.
A 14 REPORT OF THE MINISTER OF MINES, 1942.
TABLE II.-AVERAGE METAL PRICES USED IN COMPILING VALUE OF PROVINCIAL
PRODUCTION OF GOLD, SILVER, COPPER, LEAD, AND ZINC.
14.42 ,, 5.62 ,,
40.624 10.061 ,, 3.319 ,,
STATISTICS. A 15
TABLE IV.-PRODUCTION FOR EACH YEAR FROM 1852 TO 1942 (INCLUSIVE).
TABLE V.-QUANTITIES AND VALUE OF MINE PRODUCTS FOR 1940, 1941, AND 1942.
TABLE VI.-PRODUCTION OF Looe Gem, SILVER, COPPER, LEAD, AND ZINC.
A 18 REPORT OF THE MINISTER OF MINES, 1942.
TABLE VII.-VALUE OF GOLD PRODUCTION TO DATE.
Year. I Placer. Lode.
STATISTICS. A 19
TABLE XIV.-COAL PRODUCTION PER YEAR TO DATE.”
A 20 REPORT OF THE MINISTER OF MINES,1942.
TABLE XVI.-COKE AND BY-PRODUCTS PRODUCTION OF BRITISH COLUMBIA,
1941 AND 1942.
or I Locality. I Class.
STATISTICS. A 21
TABLE XVII.-DIVIDENDS PAID BY MINING COMPANIES, 189%1942-Cmtinued.
A 22 REPORT OF THE MINISTER OF MINES, 1942.
TABLE XVII.-DIVIDENDS PAID BY MINING COMPANIES, 1897-1942-Continued.
ComDsnyor Mine. Locality. Class. 1 *gyt
STATISTICS. A 23
TABLE XVII.-DIVIDENDS PAID BY MINING COMPANIES, 1897-1942-Continued.
Dividends paid Yearly, 191%1942, inclusive.
10,543,500 Total $190,667,004
A 24 REPORT OF THE MINISTER OF MINES, 1942.
TABLE XVIII.-CAPITAL EMPLOYED, SALARIES AND WAGES, FUEL AND ELECTRICITY.
AND PROCESS SUPPLIES, 1942.
and Wa8es. Sumlies.
TABLE XIX.-TONNAGE, NUMBER OF MINES, NET AND CROSS VALUE OF LODE
to wlilmer of
STATISTICS. A25 .
TABLE XX.-MEN EMPLOYED IN THE MINING INDUSTRY OF BRITISH COLUMBIA,
TABLE XXI.-METALLIFEROUS MINES SHIPPING IN 1942.
Table concentration : Rutation
TABLE XXI.-METALLIFEROUS MINES SHIPPING IN 1942-Continued.
Mine or Group. / I,aation of Mine. / Mi”ingDi”iaio”. / Owner or *gent. I l+oecss. .I maraeter of ore.
DEPARTMENTAL WORK. A 29
B. T. O’Grady worked with the Superintendent of Brokers as well as investigating
the possibilities of transportation to mining properties in different parts of the Prov-
ince. In February he left the Department and was attached to the Headquarters
Pacific Command as Field Supervisor, Northern British Columbia Coast, to organize
the Pacific Coast Militia Rangers.
J. T. Mandy continued to be in charge of the Prince Rupert sampling plant and
assisted prospectors and small producers of war minerals.
H. Sargent investigated tungsten and other strategic minerals in several sections
of the Province, chiefly near S&no. During the early part of the year he accumulated
data upon potential base-metal properties.
M. S. Hedley examined all likely properties in the Similkameen and Grand Forks-
Greenwood areas for tungsten. Later he replaced R. J. Maconaehie at Nelson and
made a thorough examination of the Emerald and other properties near Salmo.
J. S. Stevenson investigated the tungsten and manganew possibilities of the
Cariboo and along the Canadian National Railways as far as Hazelton. He also super-
intended the diamond-drilling of molybdenite at Boss Mountain.
J. M. Cummings continued his work on industrial minerals and also upon the
recovery of scheelite from low-grade ores. He spent most of the mummer at the
University of British Columbia assisting the War Metals Research Board in its investi-
gations of many war-mineral ore-dressing and metallurgical problems.
R. J. Maconachie made examinations of tungsten properties in the Bridge River
and in the vicinity of Nelson and later at S&no. About the end of June he resigned
to take a position with an eastern firm. He later joined the Canadian Air Force.
Stuart S. Holland investigated the mica possibilities along the Canadian National
Railways south of T&e Jaune and in the vicinity of Mica Mountain north of Cairn
Lake. He also investigated tungsten in the Cariboo and at Trout Lake.
W. H. Mathews assisted in the spectrographic laboratory at Victoria and also
made examinations of mercury near Kamloops and tungsten properties at Stewart and
C. B. Newmarch made a reconnaissance survey of Incomappleux River and
McDougal Creek for tin and tungsten. He also examined manganese prospects at
Arrowhead and investigated tungsten and mica possibilities in the Big Bend area
north of Revelstoke.
Late in 1935 the Department of Finance, co-operating with the Department of
Mines, undertook to purchase small lots of placer gold under 2 oz. in weight from the
individual placer-miner. The Gold Commissioners throughout the Province are paying
a cash price of $29 per ounce for clean placer gold and are purchasing dirty placer gold
and amalgam on a deferred-payment basis. Purchases made under this arrangement
A 30 REPORT OF THE MINISTER OF MINES, 1942.
The object of this purchasing scheme is to give the individual miner the best
possible price for his gold, and this has been realized in that the total price paid has
been almost exactly the same as that received from the Royal Canadian Mint, except
for the mint’s handling charge of 1 per cent.
The foregoing figures show also that the individual miner benefited at a time
when work was scarce and that now he is obtaining more remunerative employment.
SAMPLING PLANT,PRINCE RUPERT.
JOSEPH T. MANDY.
During 1942 war conditions and the adverse effects of these on prospecting,
exploration, development, and mining of all ore-deposits, except those of the war
metals, resulted in a marked decrease of small-tonnage shipments by prospectors and
small operators to the sampling plant.
A number of shipments were, however, received from gold, silver, and base-metal
properties. The service of the plant proved very useful also in directing exploratory
work on, and bulk-sampling of, several war-metal ore-deposits. It assisted also in the
solution of metallurgical and marketing problems relative to small-tonnage production.
An increasing number of prospectors, through personal conference and correspon-
dence, also availed themselves of the service, especially in the direction of their search
for war-metal deposits; and 270 samples from 104 different individuals were received
for examination and determination, and detailed reports were submitted concerning
In the late autumn field examinations of several properties in the Tahtsa River
and Whitesail Lake areas were carried out.
It is of interest to note that since the inception of the sampling plant service in
August, 1937, and up to December 31st, 1942, the plant has handled 726 shipments
for which $49,227.63 has been paid to shippers. During the same period thirty-eight
shipments have been made by the plant to the smelters, for which $49,421.27 has been
received. This sums up to the remarkably small difference of ,0.391 per cent. between
the value of the purchase of the ore by the plant and the value of the sale to the
smelters, and illustrates the high degree of accuracy attained by the hand-sampling
method employed in ,the plant.
The following is a synopsis of the operating details of the plant for the year 1942,
from January 1st to December 31st :-
aasr of ShiI’menta.
A, 32 REPORT OF THE MINISTER OF MINES, 1942.
DEPARTMENTAL WORK. A 33
During the year 1942 the staff of the Department of Mines chemical laboratory
performed 3,033 assays for precious and bane metals in ores. Of these, 2,597 were for
Owa-fide prospectors and for departmental engineers and 436 were for the Govern-
ment sampling plant at Prince Rupert. A sharp increase in the number of assays for
strategic metals was noted.
Proximate analyses and B.T.U. determinations were made on 51 coal samples. Of
these, twenty-one were for the Department of Mines and thirty were for the Depart-
ment of Public Works.
As a part of a free service offered to bona-fide prospectors, 202 samples were
examined and the minerals identified.
During the year 278.2 oz. of placer gold was received from the Gold Commissioners,
who are purchasing amounts up to 2 oz. to aid the prospectors in disposing of their
For the Attorney-General’s Department seventeen examinations of a chemico-legal
nature were undertaken. Of these, three were toxicological analyses of pathological
specimens and nine were analyses of contaminated earth for arsenic. The rest were
of n varied nature, involving the examination of such samples as paint-chips, contents
of an ampulla suspected of being nitro-glycerine, wine, and crystals found in canned
salmon which proved to be calcium magnesium phosphate crystals.
Analyses of fourteen boiler-water samples for mineral composition submitted by
the Department of Public Works and analyses of sixteen samples of limestone sub-
mitted by the Department of Agriculture were made by the staff. One toxicologica
analysis was made for the Department of Agriculture.
Full use was made of the grating spectrograph and accessories installed in the
laboratory last year. During the year complete qualitative analyses were made on 334
prospectors’ samples. Standard curves were worked out whereby quantitative analyses
can be made for tungsten, tin, copper, lead, and zinc in ores. A part of the 1943 pro-
gramme involves the preparation of standard curves so that quantitative analyses can
be made for several other strategic metals in ores. Further, quantitative analyses were
made on some 500 pure mineral specimens taken from the Department of Mines
museum. These mineral specimens represented certain areas in the Province. This
work is part of a major project, the purpose of which is the complete analysis of pure
minerals occurring in selected areas of the Province. The immediate purpose of the
project is, however, a search for strategic metals. All except obviously worthless
samples, submitted by bona-fide prospectors, are now analysed completely by the spectro-
graph. This complete analysis includes an examination for strategic metals.
No fees were charged for work done for other Government Departments, but had
such fees been charged they would have amounted to the follouing:-
Attorney-General’s Department ~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ $400.00
Department of Public Works ~~~~~~~~~~~~, 450.00
Department of Agriculture ~~~~~~~~~~~~~~~.~~~
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