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Exploration lures new players to Thunder Bay

Sudbury isn't the only city that prides itself as a mining supply hub.
Rick 2 a
Rick Prior of Loch Lomond Equipment Sales is primed for future business in the mining industry as a new distributor for a heavy-duty industrial-commercial ATV.

Sudbury isn't the only city that prides itself as a mining supply hub. 

Thunder Bay's inner city industrial parks are gradually filling up with companies looking to position or re-tool themselves for the flurry of exploration activity in northwestern Ontario and the Far North. 

Of the Ministry of Northern Development, Mines and Forestry's four mining divisions in northwestern Ontario, the Thunder Bay division recorded 103,873 active claims last year, the highest in Ontario.

Last year, exploration companies spent $156 million across northwestern Ontario, working 236 active programs. The ministry forecasts this year's expenditures to be in the $272-million to $300-million range, with gold being the commodity of choice.

Those kind of numbers aren't lost on forestry consultant Laird Van Damme.

His company, KBM Forestry Consultants, are in the midst of a name change to KBM Natural Resources Group.

"You caught us right in the middle of a transition," said Van Damme.

After watching the forestry industry get bashed for the last six years, working with partner Peter Higgelke, they decided to take their talents in forest management, aerial photography, GIS mapping to mining and renewable energy clients.

"We've done a lot of management plans and those skills are transferable in project planning," said Van Damme. "It's opening up doors in mining in a big way."

For decades, they were tied to the hip of the forestry companies or operated by word of mouth. Now they've finally taken the bold step of advertising who they are by hiring sales manager Andrew Kane to get the word out.

"I'm finding when I'm cold calling for our aerial photography services, the mining companies are saying, we didn't know you guys existed," said Kane.

Van Damme already has his foot in the Ring of Fire this fall, conducting field survey work for Cliffs Natural Resources at their Black Thor discovery.

Their retail store now stocks prospecting and survey supplies, and they're a distributor for Entac Emulsion Products, a non-toxic soil binding agent for controlling dust in mines, road shoulders and tailings pond.

Rick Prior, co-owner of Loch Lomond Equipment Sales, was looking to diversify his seasonal business of refurbishing and reselling ski hill groomers, a company he shares with ski hill operator Ward Bond.

Many of their clients are First Nation communities in Ontario and Manitoba who use the machines to clear snow on ice roads.

"Some of these communities adjacent to the Ring of Fire are being called upon to supply equipment for (constructing) additional roads and hauling stuff."

Located at the ski hill, the company will build a three-bay maintenance shop next year where they plan to set up an outdoor test track to showcase the off-road vehicle to customers.

They've hooked up with PFM Manufacturing of Montana to be a Canadian distributor for a pumped-up version of an ATV called the Land Tamer.

With a deal signed in September, the first vehicles were scheduled to arrive in November, and Prior's company was ready to take orders.

When GAL Power Systems wanted to break into the Northern Ontario market, they needed someone who knew the lay of the land.

They picked Thunder Bay's Joe Gagliard,i who has 30 years in the power generation industry working in forestry, mining and public utilities.

The Ottawa-based company specializes in emergency power backup generators and knew Gagliardi from his days at NWD Diesel in Thunder Bay. He worked with Hydro One and Indian and Northern Affairs Canada in outfitting many fly-in First Nation communities with their first generating stations.

Since opening a distribution warehouse in last spring, they've partnered with other mining supply outfits, like Matrix Helicopter Solutions, servicing junior mining companies at their remote exploration camps with diesel generators.

Closer to town, GAL is hoping to make inroads with North American Palladium at their Shebandowan project, west of Thunder Bay.

"We're hoping that will rejuvenate which will give us another opportunity."

Gagliardi said they can put a camp system together that supplies as much as 3 megawatts of power.

"We figure out the sizing for them on what's the most appropriate combination of generators, big or small, depending on what equipment they have in electric and propane."

A few blocks away, a leading Yellowknife mining supplier has moved into town with a small office and warehouse in the inner city.

Andy Young, president of Discovery Mining Services, said establishing a presence in Thunder Bay was all about getting in on the Ring of Fire action.

"To put a branch office in Thunder Bay at this time only makes sense."

With 18 years in the exploration business across Canada, they offer camp rentals, re-supply and all the logistical support that comes with it.

"We look for the most efficient way of mobilizing a camp. We'll shop around for the best price and use local knowledge."

As a lean-running outfit, they'll hire locals as cooks and for camp labour.

Discovery previously worked in Northern Ontario near Fort Hope and have some Thunder Bay-based mining clients, like Mega Precious Metals, who have projects in the Territories.

"It made the choice to come down a little easier," said Young.

Among their clients are Peregrine Diamonds, Sabina Gold and Silver and Mineral and Metals Group.