The biggest VMS discovery on the planet
The biggest VMS discovery on the planet
The biggest VMS discovery in history kickstarted a stock market frenzy. In June of 1963, Texas Gulf Sulphur
The biggest VMS discovery in history kickstarted a stock market frenzy.
In June of 1963, Texas Gulf Sulphur company invested $18,000 and a 10% net profits royalty for a 2-year option on mining claims, located 10 miles north of Timmins. These claims, once owned by the late Murray Hendrie's estate, initially seemed of limited value. The turning point came in October 1963 when a ground electromagnetic survey uncovered promising potential below the surface.
In early November 1963, Ken Darke, an exploration geologist with Texas Gulf, initiated drill hole K-55 on the Hendrie property. The geologists, overwhelmed with enthusiasm after examining the sample, quickly drove 12 miles to a motel and called the superior's home at midnight to share the exciting results.
The directive was given to halt drilling operations and conceal the discovery site meticulously. Tractor tracks were obscured by branches, and new trees were strategically planted to conceal the original drill hole. In a strategic move to confound rival mining companies' pilots flying overhead, the drill team replicated their camp at the opposite end of the township.
Prior to Texas Gulf Sulphur revealing its discovery to the investing public, those in the know began capitalizing on the discovery. The president, directors, and executives started buying stock right from the moment the company extracted the first sample from the ground. This trend extended to some geologists, engineers, and their spouses.
Assays weren't available until December, and the official announcement came on April 16, 1964. The results were astonishing—182 meters at 1.15% Cu, 8.64% Zn, and 122 g/t Ag. This marked the birth of the Kidd Creek VMS deposit.
Despite unconfirmed rumors causing stock movements earlier, the announcement triggered an unprecedented staking rush. Over 6,000 claims were staked within the 1st week, propelling the values per claim. The stock market experienced chaos, with record-breaking trading volumes and over 100 stocks recording new highs.
The initial body, measuring 245x90 meters and reaching a depth of 250 meters, initiated mine production in 1966. Starting as an open-pit operation, Kidd Creek evolved into an underground mine in 1972.
The journey took twists, changing ownership from the Canada Dev Corp in 1981 to Falconbridge in 1986. Further changes occurred as Falconbridge merged with Xstrata in 2006, ultimately becoming part of the Glencore family in 2013.
By 2003, Kidd Creek's depths revealed mineralization persisting to 3,109 meters below ground level. A drill intersection cut through 443m @ 1.16% Cu, 7.76% Zn, 0.73% Pb, and 84 g of Ag, concluding in sulphides.
Kidd Mine holds the title of the world's deepest base metal mine, with the bottom shaft 4 descending to a depth of 3,014 meters below the surface.
Kidd Creek has been a vital employer in the Timmins region, contributing significantly to the local economy, and it generated billions of dollars in tax revenue and royalties.