Chapter 379: The Second Gold Production Base
Li Tang sought to meet Layton several times but was consistently refused.
This was the first time he'd actively sought someone out to extend an olive branch yet had been repeatedly rejected.
Clearly, Layton had set his mind to opposing Li Tang at all costs. He continued his relentless efforts to smear Li Tang's investment in the Mary River iron ore project on television, newspapers, radio, and various other media outlets.
Even though Prime Minister Martin publicly stated in an interview that Cold Iron Company's investment in the Mary River iron ore project was completely transparent and would significantly boost the economic development of Nunavut, the support of the highest authority wasn't immediately effective.
Layton's inflammatory statements successfully ignited public anger, creating significant public controversy around the project. The nation's public opinion quickly divided into two opposing factions, engaging in an endless battle of words.
With this escalating media storm, Li Tang realized that, in the short term, it would be difficult to silence the opposition voices.
Unless Layton—the instigator—publicly admitted his mistakes and reversed his stance to support Cold Iron Company, the group rallying behind him would continue their relentless criticism.
Yet, Layton remained staunchly opposed, not only targeting Li Tang but also openly criticizing the Martin administration. He ignored all Li Tang's requests to meet.
Given these circumstances, Li Tang decided to push forward aggressively with the preliminary preparations for the Mary River iron ore project, hoping that perhaps government authorities might ignore the growing public criticism.
However, the reality quickly showed that public sentiment and controversy greatly influenced government decision-making in Canada. The Canadian Investment Review Bureau conducted a national security review of Cold Iron Company's investment plan and ultimately rejected it, citing national security concerns. The reasons provided emphasized the involvement of major investors like Haigang Steel, Tangshan Steel, and Hualing Steel—all state-owned Chinese enterprises—thus requiring further investigation into the investment intentions.
Li Tang clearly saw that this project was quickly heading down the same path as the Talago coal project—trapped in endless disputes and controversies, stuck in bureaucratic mud from which it would be very difficult to escape.
During this frustrating period, even Frando was becoming desperate after repeatedly trying to push forward the Mary River iron ore project. After discussing with Li Tang, Frando flew to Congo in Africa, where the copper exploration projects were at least straightforward and less politically charged.
Meanwhile, Li Tang temporarily set aside the iron ore project and boarded a plane provided by Barrick Gold Corporation, flying directly to Chapleau Township.
"It's a large deposit," He Runqi remarked confidently. He had been working closely with Barrick Gold's exploration team in Chapleau and had detailed insights into the project.
Upon Li Tang's arrival, He Runqi took him to a drilling site less than ten kilometers away from Chapleau Township to examine the ongoing exploration work.
"Following this fault line, several quartz-vein-type gold deposits have been identified, varying in size," he explained, holding a detailed geological map. "Additionally, other structures branching off this main fault toward the south also have excellent exploration potential."
"Are all the mineralized bodies concentrated on this single fault?" Li Tang asked.
"Not entirely," He Runqi pointed at the southern intersection of two faults. "Significant deposits have also been discovered at the intersection zone of these two faults."
After he finished speaking, he glanced at Barrick Gold's exploration team nearby and chuckled. "The gold resources identified here so far are significant. By my rough estimate, the total gold resources are already approaching 100 tonnes. However, the deposits here are quite dispersed, with many small mineralized bodies having relatively lower grades. According to Barrick's usual approach, these smaller mineral bodies wouldn't typically be included in economically recoverable reserves. But remember our initial agreement with Barrick: according to China's exploration standards, all mineral bodies with grades above 3 grams per tonne must be counted. This directly relates to our interests!"
In China, exploration projects were typically funded by geological exploration funds. Geological teams would naturally aim to maximize reported reserve numbers to demonstrate their effectiveness and generate political achievements, regardless of whether these reserves were truly economic or not.
In contrast, exploration projects in Canada were mostly financed and operated by mining companies themselves, leading to more pragmatic approaches. They only included mineral bodies in their reserve calculations if they believed those deposits were economically viable for extraction, based on considerations like depth, ore hardness, extraction complexity, and current market prices.
He Runqi's approach was simply to include every mineralized body with grades exceeding 3 grams per tonne, regardless of actual mining feasibility, into the total reserve calculation.
This naturally created friction with Barrick Gold's exploration team, as their approach was strictly commercial and pragmatic.
After heated debates, both teams eventually reached a compromise, deciding to present two different resource estimates—one based on Barrick's usual economic criteria and one based on China's standard requirements.
"Nicely done!" Li Tang praised with a thumbs-up. "I don't care what their internal procedures are. Since we helped them discover the Chapleau gold deposit, we must fully claim what we're entitled to—no compromise!"
When it came to profits, there was no room for politeness. Moreover, the original contract was clearly written in black and white. According to China's mineral exploration standards, all mineralized bodies over 3 grams per tonne had to be counted into the total reserves, regardless of their immediate commercial viability.
"When signing the original contract, you clearly outlined the work we should prioritize," He Runqi laughed. "We all know exactly what we're here to do."
Li Tang patted He Runqi's shoulder in approval, clearly delighted. "You've done exceptionally well on this project. With the Chinese New Year approaching again, I came specifically to tell you that you can pack up and take the flight home for a vacation. You deserve a good rest."
"We're at a critical stage of the project. If we leave now, Barrick's team might mess things up," He Runqi shook his head. "We've decided not to take a break this New Year. However, once the project concludes, I promise everyone will receive a long vacation and a substantial project bonus."
"You're really not returning home?" Li Tang actually didn't support such exhaustive work schedules.
"No," He Runqi gestured to the other Chinese technicians nearby. "We've already agreed to stay here together over the New Year. But, Mr. Li, I do have a favor to ask: when the project is completed, can you grant everyone in our team around half a month off?"
Li Tang looked at his hardworking employees from China and felt deeply moved, eventually nodding his approval. "Absolutely. You're in charge of your own team's schedules."
Meanwhile, on the other side, Mark, Barrick Gold's CEO, accompanied by several senior executives, was busy visiting the site. On one hand, they came to accompany Li Tang; on the other hand, Mark wanted to personally inspect this highly successful project and take some promotional photos to release to the press.
After all, such positive news would demonstrate Mark's successful leadership of Barrick Gold to shareholders worldwide.
"Mr. CEO, the Chapleau gold exploration project has achieved a major breakthrough," the project leader proudly reported. "Multiple mineralized bodies have already been identified. After discussions with the Chinese technical team, we've calculated two separate resource estimates. One, based on the fixed boundary grade of 3 grams per tonne, stands at approximately 95 tonnes. The other, calculated according to our company's standard cut-off grade of about 5 grams per tonne, yields economically recoverable reserves of about 1.6 million ounces—around 44 tonnes."
"The difference in numbers is significant," Mark remarked, slightly puzzled.
"Our calculations exclude many smaller mineral bodies and marginal areas, counting only clearly profitable sections," the project leader explained.
"Understood," Mark acknowledged calmly. He knew he had committed to pay Li Tang's team according to their requested standard, and backing out wasn't an option.
The project leader added enthusiastically, "The greatest value of the Chapleau gold exploration isn't just the 1.6 million ounces currently identified. These reserves are likely to increase as exploration continues. The most important discovery, though, is our increasing confidence in the significant exploration potential that still remains in this entire region!"
He glanced briefly at Li Tang and the others standing in the distance, lowered his voice, and continued, "We speculate that within some geological structures, there could even be much larger, richer gold deposits waiting to be discovered!"
"So you're saying the project isn't over yet?"
"Far from it! In fact, we're only just beginning!"
The project leader's eyes widened as he spoke passionately, almost spraying saliva as he emphasized, "Without a doubt, this place will become Ontario's second major gold production center!"
To become a primary gold-producing base, reserves of just a few dozen tonnes wouldn't suffice. Before this, Ontario had only one recognized gold production area—in the northwestern Arctic region, centered around the Red Lake deposit. It encompassed multiple large deposits, each exceeding hundreds of tonnes, with combined total reserves surpassing 650 tonnes.
If Chapleau Township could become Ontario's second gold production base, it meant discovering gold reserves totaling hundreds of tonnes.
For Barrick Gold Corporation, that would undoubtedly be their winning weapon against Newmont Gold Corporation, and it would surely be Mark's greatest achievement as CEO of Barrick Gold.
Mark struggled to contain his excitement. "Previously, we secured exploration rights covering an additional area of nearly ten thousand square kilometers around Chapleau. Is this sufficient? Can it encompass the entire potential mineralized area?"
Once the news of a major gold discovery at the Chapleau Gold Project became public, it would undoubtedly trigger intense market reactions. At that time, countless exploration teams would flood the area, wielding geophysical equipment and drilling rigs, ready to turn every stone.
Their principle in exploration had always been to prevent others from benefiting from their pioneering work. If possible, they wanted exclusive control of the discovered deposits, leaving no gaps for competitors.
History had taught them this lesson well. The first team to discover high-quality diamonds near the Arctic Circle wasn't the one that profited the most. Rather, those who arrived later often discovered even larger diamond deposits, reaping greater rewards.
"It should be enough," the technical director replied, though with some uncertainty. "We've included all areas with significant exploration potential. If there are additional gold deposits further outside our current boundaries, discovering them would require substantial luck, and the exploration would become extremely challenging and economically unattractive."
"Good." Mark's enthusiasm began to cool slightly. Turning his head, he cast another respectful and admiring glance toward Li Tang standing not far away.
Everyone in the mining world knew that Li Tang's exploration skills were unmatched globally. Any project he led or participated in inevitably led to extraordinary mineral discoveries.
At the beginning, he had exerted tremendous effort to invite Li Tang personally to assist with their gold exploration project. Especially since Li Tang had boldly chosen Chapleau Township—a place no one else even gave a second glance—as the site for the project.
He still vividly recalled how Ontario's most esteemed exploration expert, Bill, had initially insisted on selecting an area further north. At that time, no one could understand why Li Tang stubbornly chose the southeastern part of Ontario, an area where no gold deposits had ever been identified.
Investing several million dollars in an exploration project, Mark had felt considerable anxiety. Despite knowing Li Tang possessed extraordinary insight—akin to an omniscient viewpoint—he still worried Li Tang might not take the project seriously enough.
Yet now, it was clear that the Chapleau Gold Project indeed contained significant gold deposits, and it was very likely to develop into a famous gold production region nationally, even internationally!
Even knowing how extraordinary Li Tang was, at this moment, Mark felt Li Tang was genuinely the god of mineral exploration—the mining industry's deity!
Mark's admiration wasn't merely because Barrick Gold Corporation stood to profit handsomely from this discovery; more importantly, it stemmed from deep respect for Li Tang's unmatched technical abilities.
Gazing at Li Tang's back from a distance, Mark was overcome with emotion. After a long pause, he asked the project leader thoughtfully, "We've been working here for a long time now. Do you understand yet why Li Tang originally chose this location for the project?"
His goal for the exploration team wasn't just to find significant gold deposits at Chapleau. More importantly, they had a rare chance to collaborate directly with Li Tang and, ideally, learn something about his extraordinary exploration methods.
This was the difference between being given a fish and being taught to fish.
They couldn't expect Li Tang to always be available to lead their exploration projects. Perhaps the Chapleau Gold Project would be their last chance to collaborate directly with him.
Acquiring some of the core, cutting-edge techniques from Li Tang himself would be more valuable than even discovering a major gold production area.
Unfortunately, the project leader shook his head helplessly, appearing somewhat disheartened. "I've always wanted to gain insight into Li Tang's exploration approach and techniques. I've also discussed technical matters extensively with his team. However, surprisingly, their methods are essentially the same as ours. In fact, their grasp of certain exploration concepts sometimes even seems slightly behind ours."
"Behind us?" Mark was skeptical. "There must be some advanced techniques we haven't grasped yet hidden in their approach!"
"We've done our best," the project leader admitted humbly, looking down at the ground. "Perhaps we genuinely haven't noticed what makes them exceptional, even if it's right in front of us."
"It's alright. The project is still ongoing. Continue observing and look for opportunities to talk directly with Li Tang again. Try your best to uncover the secret behind this major discovery!"
"Yes, sir." The project leader nodded vigorously, his own eyes filled with admiration as he watched Li Tang's figure, seemingly larger than life.
Mark didn't have much technical expertise himself, so this was as far as he could advise. He quickly instructed, "Immediately notify Bill about the current status of this project and invite him here for further evaluation."
Bill was enjoying his leisurely retirement life.
This retirement had lasted for over twenty years already.
Looking at the tall weeds outside his door, dry and yellowed from the cold weather, Bill felt they were an eyesore. He took out his lawn mower and enjoyed a cup of coffee before beginning his task, savoring the morning sun as he worked.
Amidst the noisy hum of the lawn mower, he didn't hear the footsteps approaching from behind.
It was only when his back began to ache from bending over, forcing him to stop and straighten up, that he finally noticed the person standing quietly behind him.
"You're from Barrick Gold Corporation's exploration department. I've met you before," Bill recognized the visitor.
"Mr. Mark instructed me to deliver these documents regarding the Chapleau Gold Project," the visitor explained. "He asked me to inform you that your expertise is urgently needed."
"Alright, leave the documents here," Bill replied. He still hadn't finished mowing and wasn't particularly eager to read paperwork immediately.
But the messenger knew the importance of these documents. Unsure where to place them, and feeling it inappropriate to set them on the lawn, he stood silently holding the materials, watching Bill continue mowing.
"You can put them down on the ground. I'll take them inside later," Bill said, noticing that the messenger remained standing.
"These materials are very important!" the messenger emphasized without budging. "Li Tang has also arrived. He and Mr. Mark are currently inspecting the project."
"Li Tang finally came?" Bill paused, instantly interested.
Earlier, Bill had agreed to Mark's invitation to temporarily end his retirement solely because Li Tang was involved. His goal was to uncover some advanced exploration techniques from Li Tang, something not found in any other country.
However, after making the tiring journey to Chapleau previously, he hadn't learned anything new—especially since Li Tang had left shortly after Bill arrived. Bill had been quite frustrated and eventually returned home under the pretext of poor health, resuming his comfortable retirement.
"Li Tang is here now," the messenger confirmed, raising the documents in his hand. "And the Chapleau Gold Project has made a significant discovery!"
"A significant discovery?" Hearing this, Bill immediately abandoned his mower, motioning excitedly to the messenger, "Come inside! Let's have some coffee and discuss this further."
Inside, Bill quickly poured a cup of coffee for his guest, then eagerly flipped through the documents.
After a moment, he abruptly stood up from his chair. His aged face suddenly revealed excitement he hadn't shown in many years, and his hunched back seemed to straighten a bit.
With a trembling, hoarse voice, Bill exclaimed, "Chapleau Township…could really become Ontario's second major gold production base?"
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