Mining continues to fuel the economy of Timmins, as it has for the past 100 years.
So when the price of gold hits US $1,200 per ounce -as it did on Wednesday -it's big news in this city and region.
"The economists and people who have followed gold for years have always talked about it hitting the US $1,500 mark, which I think now is becoming more realistic," Mayor Tom Laughren said.
"When you look at what it will mean to our community, I think in terms of exploration -- which is really at a high, if you look to the west of us as an example -- this will help create more opportunities. And exploration is where there's a lot of local dollars spent at a great benefit to the community from a work and supplier perspective.
"The other area it will help us with is with people who are looking at starting up mines who have great pieces of property ... but there are huge capital dollars that are needed. The confidence in gold will hopefully bring those people who may have invested in other areas into investing in these mining opportunities."
Gold s upward march on yesterday, closing at US $1,217.80.
The mayor also sees it having a positive impact on some of the existing projects.
"Local operations that may have been looking at some marginal areas before ... this definitely helps those marginal areas to become producers," Laughren said.
"We're pretty fortunate in Timmins from a gold perspective that we have three or four good mills in the region, so I think from a milling perspective we're in good shape and have capacity ... It helps some of the mining operations to ensure that they have reserves going forward.
"I suspect it will spur all kinds of exploration around a lot of the existing mines, as well."
The mayor doesn't think gold reaching this week's price milestones milestone will have an immediate impact on existing gold mine operations.
"I don't believe some of the existing mines will change their business philosophy just because today it went to $1,200," Laughren said Wednesday.
"I think they are looking at the long term and where they think the price of gold will remain over the next year or two ... That will spur whatever capital opportunities they have been looking at and I think that may fast track them, just because of where the price of gold is today."
Chris Cormier, mine general manager, with Goldcorp agreed.
"It's actually back to where it was in February or March of this year when you look at the Canadian (price) based with the exchange rate ... It was over Cdn $1,200 in February and March, so it's just returned to that number now. It dropped for most of the year and then came back with the exchange rate," he said Wednesday.
"Better revenue is good, but we don't typically do our planning on the spot price ... So there won't be any immediate changes because you can't react to something that's only been around for a day."
He added when most mining companies do long-term planning, they look at a three-year average, which is usually lower than the spot price.
"Typically there are no companies that use spot price for future planning," Cormier said.
Goldcorp -- which employs about 650 people at its Timmins operations, not counting contractors -- is the largest gold miner in the Porcupine camp.
"Right now we are reviewing that (the life span of the company's mining operations in Timmins) given some of the projects that we're looking at getting approval for, so I can't comment on that right now," Cormier said, when asked about the future of the company's Timmins operations that include the Dome and Hoyle Pond underground mines, processing of surface stockpiles from past open pit operations and a mill.
"We review projects at the end of every year typically and look at what we want to invest in going forward and we hope we can be around in Timmins for a long time ... we're just coming up on our 100th birthday, so hopefully we can extend that well into the future."
Companies like Goldcorp tend to look at the big picture when it comes to the price of gold.
"The upward trend in pricing has been positive over the last couple of years ... it's not just today," Cormier said. "The higher the price goes the better it is for opportunity and economy in any region, so certainly we want the price to stay as high as it can for as long as it can.
"We all know this is a very cyclical industry and the price goes up and it does come down ... so you have to be prepared for when and if it does, but everybody does love when the market is high like this."
He said if prices remain high for a long period of time it will build confidence in investing in projects.
"When you invest in something ... the price is $1,200 today ... but say you want to mine a stope underground or a new project somewhere in town," Cormier said.
"It could take us four to five years just to develop that project to start getting revenue out of it and you're guessing that the $1,200 price we saw this morning -that's only been here for a day will be here four years from now."
Gold is always quoted in U. S. dollars, "but our particular operation is in Canada," Cormier said.
"People forget there is the exchange rate as well, so you have to look at the Canadian dollar gold price, not U. S."
In addition to Goldcorp, the other major players in this region when it comes to gold production at Lake Shore Gold and Apollo Gold.
With prices remaining high and exploration nearing a fever pitch, however, there is a potential for other companies to jump on the bandwagon.
"I know over the past four or five years, there has been great optimism and a lot of activity taking place because of the seismic surveying Discover Abitibi did over a great part of our region," Laughren said.
"There was a lot of optimism as it related to gold at the Prospectors and Developers conference in Toronto last February, with Timmins being probably one of the most predominant gold mining camps in Canada ... so Timmins is well positioned to be able to -- because of the drillers and suppliers and the expertise we have here -- work with that influx.
"In the past few years exploration companies have struggled to have enough equipment and manpower and I suspect that's still a struggle, but I would sooner have that problem than the opposite ... of no opportunities."
And it isn't just the traditional areas that companies are turning to in their search for gold
"At one point in time very few explorers or prospectors or geologists ever believed that the gold went west of the Mattagami River and that was sort of your stopping point," Laughren said.
That has changed, of course, with the discoveries made by Lake Shore Gold.
"When you look at the impact (mining) has on our community -- the salaries, the suppliers," Laughren said. "I am confident mining will continue to have a huge impact over the next 100 years, as well. I think Timmins really is a jewelry box and there is a lot of potential left."
The mayor isn't surprised to see the price of gold steadily rise in recent months
"History has shown that gold is always the investment that people fall back on ... I think there was a period of time that people were really making their investments based on the America dollar," Laughren said.
"I think if you look at where the American economy is today obviously the president's decision to ramp up in Afghanistan ... you're talking about an economy that is very much in deficit and I think people are a little bit fearful right now.
"I think they look at gold and the opportunity of gold being a worthwhile, strong investment that I suspect is going to rise over next little bit for sure and let's hope it hits that US $1,500-an-ounce level."
