Make Kitco Your Homepage

Why Norwegian mining projects have been 'been dormant for the last 40 years' - Capella Minerals

Kitco News

(Kitco News) - Metals not worth including in economic models decades ago are now helping rejuvenate old projects, said Capella Minerals CEO Eric Roth.

On Friday, Roth spoke to Kitco at the Deutsche Goldmesse conference in Frankfurt, Germany.

Capella Minerals (CVE:CMIL) is a Canadian gold and copper exploration and development company with properties located in Canada and Scandinavia.

Roth is former head of Extorre Gold Mines. The company was acquired by Yamana Gold in 2012 for C$440 million.

Capella’s portfolio includes three copper projects in central Norway, the resource-stage Hessjøgruva Project and drill-stage Kjøli and Løkken Projects. Capella also has projects in Finland, Sweden and joint ventures in Canada.

Roth said he is excited about the Norway project because it was neglected. New metals have also come to the fore, like zinc and cobalt, which were excluded from the mine's economics.

Why the former owners of Great Bear Resources, which sold for C$1.8 billion, say Kodiak Copper is 'similar'

"These mines closed in the 1980s," said Roth. "The copper mines closed for two reasons: first of all copper prices basically tanked. In the mid-80s you're talking about copper at $1,500 a tonne whereas now its $10,000 a tonne. There's been a quantum shift in metal prices. Second, in Norway it was the discovery of oil. Oil generated so much money for the country that people just left the mining industry in hibernation to move into the oil space.

"Therein lies the opportunity for us, because these projects have basically been dormant for the last 40 years. They say in our business you know the best place to find a mine is in the in the shadow of a head frame so that's pretty well what we're doing in Norway."

Follow Michael McCrae on Twitter: @michaelmccrae

Follow Kitco Mining on Twitter: @KitcoMining

Kitco's coverage of Deutsche Goldmesse was sponsored by Defiance Silver.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.