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Massive open-pit gold mine opens in northwestern Ontario

Mining, community leaders reflect on arduous path to reach gold production
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Equinox Gold CEO Greg Smith, chair Ross Beaty and outgoing general manager Eric Lamontagne cut the ribbon to officially open the Greenstone Gold Mine Aug. 29. (Video Livestream capture)

GERALDTON - When Long Lake #58 Chief Judy Desmoulin views what’s been accomplished with the opening of a massive open-pit gold mine outside Geraldton, she offers a template of what can be accomplished in Canada when all parties work together to reach consensus.

"This is the model that needs to happen everywhere, with every industry.”

Desmoulin took to the podium on Aug. 29 for the official opening of Equinox Gold’s Greenstone Gold Mine, one of the largest open-pit operations in Canada and the Vancouver company’s flagship mine.

The recurring theme of the celebratory livestreamed event, which was marked by traditional drumming, a pre-arranged blast and a ribbon-cutting, was the strong partnership bonds and teamwork formed between the company and four area signatory First Nations, of which Long Lake #58 is one.

The four years of tough negotiations between industry and the communities to reach a consensus agreement for development to occur were not easy, but they “needed to be done,” Desmoulin said.

The company today boasts 500 direct jobs at the site, the creation of 800 local spinoff jobs, and employment for 1,300 across the region.

Those opportunities weren’t always available to local Indigenous people when underground gold mining began on the very same property in the early 1930s and continued up to 1970 when the mines were shuttered. That is until Ewan Downie and Premier Gold began exploration in 2007 on the long journey toward reviving gold production under the Equinox Gold banner today.

“We’ve come to this day with a lot of success,” Desmoulin said. “It’s about time we’re acknowledged. I’m really, really grateful. My heart is just swelling with pride at this time.”

All local leaders were on board during the sod-turning ceremony in October 2021 for the impactful $1.3-billion project, which involved relocating the homes of 65 families and re-routing Highway 11 around the pit.

The first gold pour took place on May 22 as the ramp-up to full commercial production continues. In May, June and July, the mine produced 2,625 ounces, 13,625 ounces and 19,750 ounces, respectively.

Outgoing Greenstone Mine general manager Eric Lamontagne, who devoted 12 years to the mine’s planning and construction, admitted he harboured immense doubts as to whether the project would ever come to fruition.

In reflecting back on the journey to build the mine, Lamontagne said, with sensitivities of having to tear down homes to enlarge the mine’s footprint, the corporate fights between former joint venture partners, and the difficult negotiations to reach agreements with its eventual First Nation and Métis Nation of Ontario partners, is worthy subject matter for a book.

“Negotiations were not easy. It took four years, but with the concessions made by both parties, we were able to close the gap and sign agreements. I cried, believe me. Probably because some days I was discouraged and did not believe that it will possible, but I needed to keep that for myself (and) do not spread the negativism to my team.”

Lamontagne called leaving Greenstone Gold Mines, a place where he spent countless hours, like leaving a second home and family. Grateful for the experience and the achievement, Lamontagne said he’ll be “cheering from the sidelines” for the mine’s continued success.

A much-admired community figure, he left the podium to a loud ovation.

The Greenstone Mine brings back to life an area that had been economically stagnant. The progressive development, atop a former mining camp, was lauded for the environmental remediation in cleaning up contaminated soils from earlier mining operations, proper disposal of old mine tailings, and diversion of all the mine’s water runoff to a new water treatment plant.

Provincial Mines Minister George Pirie called Equinox Gold “the best of the best” in Canadian mining and Greenstone Mine an “incredible achievement” built on time and budget with the participation of First Nations. Environmental protection and First Nations partnerships that breed community successes are part of the new reality of sustainable mining in Ontario, he said. “That’s just the way we mine right now.”

In attending his second mine opening this year, Pirie drew comparisons with IAMGOLD’s new Côté Lake mine at Gogama, a $3-billion project with jobs for 1,600 that’s resulted in full employment for the communities of Flying Post and Mattagami First Nations.

“It’s not an accident that there’s two mines opened in Northern Ontario this summer,” said Pirie, “because we know how to do it with the full co-operation of all parties.”