Canadian Mining Journal February/March 2014 by The Northern Miner Group

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MINING IN

ONTARIO GOING DEEP FOR THE

BIG SCORE

February/March 2014

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CANADIAN Mining Journal

Departments 5 Editorial

This month Editor Russell Noble talks about Prime Minister Stephen Harper’s recent announcement to continue spending money on a remote highway in the NWT while other infrastructure projects are far more worthy of federal dollars.

CONTENTS

Mining in Ontario

6 Investing

Ned Goodman’s regular ‘Investing’ column looks at the U.S. economy and the financial road ahead as the Federal Reserve goes through the transition of its new leadership.

8 Law

Norton Rose Fullbright Canada’s Jean-Phillippe Buteau discusses Quebec’s Bill 70 and how it will impact on the province’s mining industry.

64 Products A look at new products and services

designed to make the work of Canada’s miners easier and more productive.

68 Modern Technology This month CMJ features Galaxy

Broadband Communications (GBC) of Mississauga, ON. and its internet systems designed to keep miners in remote locations in touch with essential information services.

70 Unearthing Trends EY’s Graeme Deans and Doug

Jenkinson take a serious look at “Divesting to Reinvest.”

Vale’s Totten Mine

Vale is set to open its first new mine in Ontario in more than 40 years.

18 De Beers’ Victor Mine

Tango Extension at Victor diamond mine holds promise for longer life.

Ontario Graphite’s Kearney Mine

New work at old mine should result in huge supply of graphite to world markets.

Glencore’s Kidd Mine

“Canada’s Safest Metal Mine” shows and tells why it’s the best.

38 Urban Mining

Pedestrian tunnel to Toronto’s Billy Bishop Airport poses many mining challenges.

Goldcorp’s Cochenour Mine

Historic Red Lake mine turns into a technically challenging underground project.

50 Rubicon’s Phoenix Mine

Older mine holds great new promise.

54 Ontario Mining Association Report OMA President Chris Hodgson takes

a look at mining activities throughout the province.

56 ’

CANADIAN Mining Journal c

www.canadianminingjournal.com

February 2014

ABOUT THE COVER Photo taken at Totten Mine was provided by Cementation Canada Inc.

New Mining School

Ontario mining school celebrates first year of developing educational models designed to train a new class of mining professionals.

MINING IN

ONTARIO GOING DEEP FOR THE

BIG SCORE

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CANADIAN Mining Journal February/March 2014 Vol. 135 — No. 2 80 Valleybrook Drive, Toronto, Ontario M3B 2S9 Tel. (416) 442-5600 Fax (416) 510-5138 www.canadianminingjournal.com Editor Russell B. Noble 416 510-6742 rnoble@canadianminingjournal.com Field Editor Marilyn Scales 613-270-0213 mscales@canadianminingjournal.com Art Director Mark Ryan roduction Manager Print Production Manager P Steve Hofmann Phyllis Wright

Editorial

Two roads too late? By Russell Noble

orry, but I find it hard to get excited by the recent news that Prime Minister Stephen Harper has broken ceremonial ground on a new all-weather highway from Inuvik to Tuktoyaktuk. Publisher & Sales Robert Seagraves As much as I favour any infrastructure 416 510-6891 work the Feds are willing to pay for, I have rseagraves@canadianminingjournal.com to question why a 140-km gravel highway Sales Western Canada, Western U.S.A. (that’s been on the books since the Bonnie Rondeau Diefenbaker years in the 1960s) now gets 416-510-5245 brondeau@canadianminingjournal.com a push and will still be on the books until Toll Free Canada: it’s scheduled to be completed in 2018? 1-800-268-7742 ext 6891 or 5245 Toll Free USA: Sure, the PMO’s office says, “The link 1-800-387-0273 ext 6891 or 5245 that hooks up to the Dempster Highway Group Publisher running through the Yukon is expected to Doug Donnelly President Vice-president deliver many economic benefits and save Bruce Creighton Alex Papanou northerners hundreds of dollars a year in Established 1882 shipping costs.” Canadian Mining Journal provides articles and information of practical BUT, and that’s a big ‘but,’ is saving use to those who work in the technical, administrative and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and northerners hundreds of dollars worth it mining industry. Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by Business Information Group L.P. BIG is located at because I can think of a number of other 80 Valleybrook Dr., Toronto, ON, M3B 2S9. Phone (416) 442-5600. highway projects that would not only save Legal deposit: National Library, Ottawa. Printed in Canada. All rights reserved. The contents of this magazine are protected by copyright and may be used only money but moreover, help make it? for your personal non-commercial purposes. All other rights are reserved and commercial use is prohibited. To make use of any of this material you must first I know the new highway is what Prime obtain the permission of the owner of the copyright. For further information please contact Russell Noble at 416-510-6742. Minister Diefenbaker envisaged more than Subscriptions — Canada: $47.95 per year; $76.95 for two years. USA: US$60.95 50 years ago as a way of improving the lives per year. Foreign: US$72.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add GST and Provincial tax where necessary. of the handful of people living that far GST registration # 809744071RT001. north but really, is it honestly going to From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not facilitate economic development the way wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374; Fax: 416-442-2191; Prime Minister Harper says it will? E-mail: privacy officer@businessinformationgroup.ca; Mail to: Privacy Officer, Business Information Group, 80 Valleybrook Dr., Toronto, ON, M3B 2S9. Infrastructure, by definition, means in Publications Mail Agreement #40069240. PAP Registration No. 11000. We part: “The basic facilities, services, and acknowledge the financial support of the Government of Canada through the Publication Assistance Program towards our mailing costs. Return undeliverinstallations needed for the functioning of able Canadian addresses to: Circulation Dept., Canadian Mining Journal, 80 Valleybrook Dr., Toronto, ON, M3B 2S9. E-mail: bigcirculation@bizinfogroup.ca a community…” and while the intent of Canada Post: Publications Mail Agreement PM40069240. Please forward the new highway will serve some of the Forms 29B and 67B to 80,Valleybrook, Toronto, ON M3B 2S9. Canadian Mining Journal, USPS 752-250. US office of publication: 2221 Niagara needs of the communities of Inuvik and Falls Blvd., Niagara Falls, NY 14304-5709. Periodicals Postage Paid at Niagara Falls, NY. US postmaster: Send address changes to Canadian Mining Journal, Tuktoyaktuk, I question the timing of the PO Box 1118, Niagara Falls NY 14304. project, even if it has taken five decades to We acknowledge the financial support of the Government of Canada through the Canadian Periodical Fund of the Department of Canadian Heritage. get this far. Circulation Manager Cindi Holder 416 442-5600, ext. 3544 cholder@bizinfogroup.ca

What about a road into Ontario’s Ring of Fire? That’s a road that should, almost must be built for the sake of “economic development” because like it or not, those vast

TUKTOYAKTUK INUVIK

Fort Smith

Road in Progress

RING OF FIRE

Road in Need

resources buried in Northern Ontario are more of a key to Canada’s economic well being than anything the far north can offer right now. As much as I like and understand many of the people who live and work north of the 60th parallel, the truth of the matter is that a road to viable resources is far more important than a ‘dream’ road to frozen reserves. CMJ

Canadian Business Press Indexed by Canadian Business Periodicals Index

February/March 2014 • Canadian Mining Journal |

Investing

Bailing on the buck?

By Ned Goodman

e are barely into 2014 and already the headline noise coming out of Wall Street is that we should be looking at financial stocks for our portfolio. This concept has been around for some time, along with the new “Volcker Rules,” and the bullish noise that has been pushed into financial stocks for some time now. The main force facing all financial companies is of course the outlook for interest rates and the ultimate shape of the yield curve. Longer-term, U.S. bond yields will be bumpy but in the end will rise significantly as the Federal Reserve goes through the transition of its new leadership. I was fortunate to spend some time with Warren Buffet recently and learned that he was quite positive that U.S. interest rates are going higher. In his view, it will be the basis of renewed U.S. economic growth which is expected to continue gradually before 2014 ends. But it is also likely that the new Federal Reserve leadership will be filled with a lot of public lip service before we will see any significance of higher interest rates and positive moves for financial stocks. Personally, I am more concerned about the U.S. heading into a hyperinflationary mode before the end of 2014. John Williams of Shadow Government Statistics carries more weight for my viewpoint and he has been predicting U.S. hyperinflation “by the end of 2014” for the United States since January 25, 2012. He then predicted that “Heavy sellers of the U.S. dollar could hit with little warning.” In November 2012, Dr. Williams wrote that the U.S. economy was already in a stagnant renewed contraction. To quote his 2012 viewpoint which he still maintains is inevitable. “The U.S. financial and political system has been troubled for decades with the government and consumers living well beyond their means supported by excessive and unsustain6 | Canadian Mining Journal • February/March 2014

able growth in debt. Faced with structured impairments to individual income growth, the Federal Reserve (former Chairman Alan Greenspan) actually encouraged the excessive growth of consumer debt as a way to support overall economic activity which continuously was borrowing economic growth from the future, and the Federal government handled their affairs likewise. Inevitably the day of reckoning for the U.S. financial and banking system came literally to the brink of collapse in September 2008. To prevent the unthinkable, the Federal Reserve and the US government, created, spent, loaned, guaranteed and gave away whatever money was necessary.” But they did bail out or acquired a number of fairly large corporations including a number of banks, AIG, GM and Chrysler. Anything needed to keep the system afloat was pursued, whatever the cost. These actions did forecast a system collapse, but did not really resolve the fundamental underlying difficulties. The in-place economic downturn “exacerbated systemic excesses.” Dr. Williams goes on with “contrary to official GDP reporting, there has been no subsequent economic recovery in the U.S. Broad business activity in the U.S. has been stagnated since 2006 and the “negative implication of a deteriorating economy for the U.S. dollar, political, and central bank issues are rapidly turning against the U.S. currency, upping the risk for a major sell off of the U.S. dollar in the foreign exchange market in the near term” (November 20, 2013 quote). Dr. Williams expects that the dollar weakening will translate into higher oil prices and new consumer inflation. On November 20th, 2013, Dr. Williams reiterated that his hyperinflation call of 2012 remained unchanged saying that “the entire unfunded liabilities for the Medicaid overhaul added nearly $8 trillion in net present value unfunded liabilities to the 2014 www.canadianminingjournal.com

Investing

Ned Goodman is President and Chief Executive Officer of Dundee Corporation

federal deficit exceeding the total $7.4 trillion gross federal debt of the time in 2014. On a GAAP basis, the U.S. faces long-term insolvency, and the global financial markets and central bankers as well as the “miscreants currently controlling the US government.” He goes on to say that “The chances of the U.S. actually not paying its obligation or interest are nil.” Instead, typically a country which issues debt in the currency it prints for the cash it needs, which it can no longer raise adequate funds through the usual confiscatory tax rates, and when it can no longer” sucker the financial system and its trading partners into funding its spending. That results in inflation, eventual full debasement of the currency, otherwise known as hyperinflation.” The purchasing power of the current U.S. dollar can drag effectively to zero. If or when the resulting dollar crisis intensifies causing a general flight from the dollar, odds are high for the loss of the U.S. dollar’s global reserve status and these circumstances can unfold at any time, with little or no warning. Irrespective of short-lived gyrations, the U.S. dollar should face net heavy selling pressure in the months ahead from a variety of factors including, but certainly not limited to (1) a lack of Fed reversal on QE3; (2) a lack of economic recovery and, or (3) concerns of increased quantitative easing by the Fed; (4) inability/refusal of those controlling the government to address the long-range sovereign solvency issues of the United States; (5) declining confidence in and mounting scandals involving the U.S. government. It is the global flight from the dollar--which increasingly could become a domestic flight as well—that would set its early stages of domestic hyperinflation. CMJ

February/March 2014 • Canadian Mining Journal |

Law

Ending the uncertainty with Québec’s Bill 70 Jean-Philippe Buteau is a Partner, Norton Rose Fulbright, Québec

By Jean-Philippe Buteau

fter three unsuccessful attempts by two succeeding governments and persisting threats of elections, one would have walked away from the idea of reforming the mining regime in Québec. With the defeat of Bill 43 which proposed a major overhaul of the current mining regime, the current minority government presented Bill 70, entitled “An Act to amend the Mining Act (Québec)” just a few weeks before the holiday break and got it approved on December 10, 2013 after an epic legislative sprint. Despite the fact that Bill 70 includes more modest changes than what the current government initially proposed in Bill 43, the new rules address a number of environmental concerns, foster greater transparency in the mining industry and attempts to promote greater social acceptability of mining projects. Most of these changes had already reached consensus in previous aborted bills. Others only aim at codifying existing industry best practices. Key changes The key changes adopted through Bill 70 impact exploration, production and restoration for mining companies. General An aboriginal community consultation policy specific to the mining sector which is to be drawn up by the Minister. Documents and information obtained by the Minister from the holders of mining rights will be made public. Much more severe penalties, with fines of up to $6,000,000, which is consistent with Quebec’s scheme of environmental penalties. Regional county municipalities are

now allowed to delimit any “miningincompatible territory” in their land use and development plan. Exploration The need for a claim holder to notify the landowner and municipality upon obtaining the claim rights and at least 30 days before performing work. Expropriation is no longer available during exploration phase. Specific obligations with respect to uranium projects and findings. Production Application for mining leases will have to be accompanied by a project feasibility study as well as a scoping and market study as regards processing in Quebec. The Minister will have the power, before mining operations begin, on reasonable grounds, to require maximization of the economic spinoffs within Quebec of mining the mineral resources authorized. On an annual basis, the lessee will have to send the Minister a report showing the quantity of ore extracted during the year, its value, the duties paid under the Mining Tax Act during that period and the overall contributions paid. For all mining leases, a monitoring committee whose role is described in rather vague terms as “fostering the involvement of the local community in the project as a whole” needs to be established. Amendments to the Regulation respecting environmental impact assessment and review in order to require an environmental impact assessment for all ore processing plant construction projects, all mine opening and operation projects where the processing or production capacity of the plant

8 | Canadian Mining Journal • February/March 2014

or the mine is 2,000 metric tons or more per day and all projects for processing of rare earth ore, regardless of the processing or production capacity of the project. Restoration The obligation to provide a financial guarantee covering the anticipated cost of all rehabilitation and restoration works. Hope out of chaos Although a few items still need some clarifications, the adoption of Bill 70 brings to an end several years of uncertainty about mining legislation in Quebec which should facilitate the design and planning of mining projects. It also removes some previously proposed discretionary rights that would allow the Minister to refuse or revoke mining leases for public interest criterion which would have transformed some mining projects in easy election targets. At the least, the newly adopted Mining Regime will allow mining specialists in Quebec to focus on finding and operating mines that will create and secure thousands of direct and indirect jobs and bring wealth to the population of Québec. Over the last few years, the main actors in the mining industry have become experts in reviewing bills amending the mining regime. As a matter of survival, they have spent time and efforts with their financers and the street trying to explain the idea behind this legislative chaos. With the market conditions prevailing over that period, some companies and projects have died, running out of resources or patience. Let’s hope that for those who survived, Bill 70 might be the start of a successful mining era in Québec. CMJ www.canadianminingjournal.com

| Mining in Ontario

VALE’S VISION Reviving Totten Mine from its flooded past

Vale set to open first new mine in Ontario in more than 40 years By Russell Noble

ight years ago when Vale acquired the Totten Mine from Inco, the words “cut and dry” were as far from reality as the remaining nickel at the bottom of their new, but flooded mine. In fact, with more than 123 million gallons of water separating them from the bottom of the mine’s 4,130-foot main shaft and the nickel, it’s no wonder that Vale started thinking it had just bought the deepest ‘fishing hole’ in Ontario. Under care and maintenance since 1972, and allowed to flood since 1976, the timbered shaft and drifts at the 47-yearold mine contained enough water to fill more than 250 average 16’ x 32’ backyard swimming pools. In other words, the Totten Mine was literally a bottomless puddle more suited as a municipal reservoir than a nickel mine, but for Vale that obviously wasn’t going to be the case. With almost $760 million earmarked for the Totten Mine project, Vale was serious about opening its first mine in Ontario in nearly 40 years and a little water, albeit a lot in this case, wasn’t going to get in its way. As all companies know, water is both a friend and enemy to miners because next to electrical power, it’s one of the two key ingredients required to make a mine work.

Too much of it, however, and it becomes a problem and getting rid of it was one of first challenges Vale’s project team faced when putting its mine plan in action. Dewatering the mine and getting rid of the 123 million gallons of water wasn’t necessarily a monumental problem for Vale because it had extensive wastewater pumping and treatment plans well in order from the start of the project in 2006. The biggest challenge, however, and question in the minds of Vale’s project team involved the structural integrity of the mine once the water was removed. As mentioned earlier, the Totten Mine was an old timbered structure that’s been submerged under water for more than 38 years. And again, one of the bigger challenges Vale had was rehabilitating the shaft after the mine was dewatered in conjunction with underground activities. If extensive timber work was going to be required, this would significantly impact project delivery. A 24-year veteran with engineering and management experience on projects in Manitoba and Ontario, Bob Booth, Senior Project Manager for Vale’s Totten Mine, said he admits to being concerned about the unknown condition of the wooden timbers after being under water for so long.

10 | Canadian Mining Journal • February/March 2014

www.canadianminingjournal.com

Totten Mine’s Lance Howland, Chief Mine Geologist (far left), David Landry, Ground Control Engineer (middle), and Erick Jarvi, Chief Mine Engineer (right), inspect the brow area of the mine’s first blasthole stope. Photo Credit: Mining Industrial Photographer courtesy of Vale.

February/March 2014 • Canadian Mining Journal |

| Mining in Ontario

Control room.

“It’s rare to see new timbered shafts in this day and age. Understandably, we were all anxious to see what condition the beams were in once the water was lowered and they were exposed for the first time in so long.” Much to Booth’s and the entire projectteam’s surprise and relief, the timbers weren’t in bad shape. “Being immersed in water was actually a good thing because the wood didn’t get a chance to dry out and therefore it remained relatively strong and structurally intact,” said Booth. Once the team had a better understanding of the structural integrity of the shaft, it was able to focus on designing

surface facilities. From the very beginning, Totten Mine was designed with the environment in mind. From a small surface footprint to enclosed material handling operations to integrated water management systems, Totten has been designed to operate with minimal potential impacts on the environment. “Respect for the environment and the community in which we operate has always been an important element in the design of Totten Mine,” said Booth. “The environmental management of this site is something we can all be very proud of.” It was also important to the Totten Mine project team that they respected that Totten Mine was located within the tradi-

Hoist.

12 | Canadian Mining Journal • February/March 2014

tional territory of Sagamok Anishnawbek First Nation. Vale was able to successfully negotiate an Impact Benefits Agreement in June of 2012. “Vale’s relationship with the Sagamok First Nations influences how Totten is structured and operates,” said Booth. “The mine features three onsite water treatment plants and we have direct liaison with local aboriginal groups and vendors.” On a project as complex and sensitive as the Totten Mine, Booth stressed that in-house project management and plain old team work with the more than 600 workers representing the various contractors and Vale personnel on the job combined to make the project a success.

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Safety, naturally, was everyone’s concern (and responsibility) and the team’s motto: “One team, one-way to zero harm” was successful because the Totten Team recently celebrated one million man hours without a lost-time injury.” That’s a huge achievement and one of those “Team Totten” members that was at the forefront of the project when the challenges often seemed almost insurmountable was Cementation Canada Inc. of North Bay. Being a company that specializes in just about every aspect of mine engineering and development, Cementation was one of the first contractors on site when it set up camp at the Totten Mine in April

2007 to start with the initial scope of dewatering and rehabilitating the shaft. The company was also responsible for managing the construction of the mine’s new head frame and hoist plant. It also carried out some of the initial large diameter raise boring for the new mine ventilation system. Eric Kohtakangas, Cementation’s Vicepresident, Operations, Totten Mine Reactivation Team, said that “After mobilization to the site, Cementation installed a temporary dewatering set-up in the escape raise from the 1250 level to the surface. While pumping (using ITT Flyght Canada Model B-2400, 144 hp submersible pumps) started in this raise, a temporary hoist was

installed with pump winches to dewater through the existing timber shaft.” “Initial pumping through the escape raise towards the 650 level allowed for dewatering to commence while the main pumping station was being set up for main pumping and rehabilitation in the shaft concurrent with new headframe construction. Accessing the 1250 level allowed for initial early ventilation, plus it allowed for the development required to establish a raise bore nest on 1250 and drilling of an eight-foot diameter hole from level 1250 to 4000 level.” Kohtakangas explained that all shaft timber or shaft equipping was rehabbed as the water level in the shaft was lowered

Aerial view of Totten Mine.

February/March 2014 • Canadian Mining Journal |

| Mining in Ontario

Bolting

Photo by Cementation

through pumping. Initial inspections revealed, like Bob Booth mentioned earlier, that most shaft timber and guide strings were in good condition and that the concrete rings appeared solid. “Hanging rods, guide brackets and bolts showed some evidence of surface rust. A decision was made later in the project to carry out additional extensive refurbishment and support to help ensure safety for the planned increased payloads for skipping at higher speeds,” said Kohtakangas. With the completion of the shaft

Inspection of the mine’s first blasthole stope.

dewatering and shaft rehabilitation, Cementation removed the old existing shaft manway and installed guides in the manway compartment to allow for an auxiliary conveyance. Almost two years to the day after Cementation arrived at the site in 2007, all 123 million gallons of water had been removed from the mine and shaft rehab work was completed to the shaft bottom elevation just below the 4000 foot level. Concurrent to the shaft dewatering and shaft rehab, the existing head frame

and hoist house was demolished and a new head frame and hoist plant was built. Cementation started the raise boring of the ventilation circuit for the Totten Mine in 2008. This three-raise project included one raise at a diameter of 18 feet, one raise at a diameter of 16 feet, and the longest raise of 2,725 feet at a diameter of 8 feet for a total of more than 6,400 feet. All completed without incident or inhole hardware failure. Additional raise boring for the mine

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| Mining in Ontario ventilation system was completed by J.S. Redpath which consisted of 10 and 12-foot diameter raises from the 1850 level down to the 3150 and 3850 levels as well as an 8-foot diameter raise form surface down to the 1250 level. Fully vented and on its way to producing up to 2,200 tonnes per day, miners will reach that mark by 2015-16 but in the meantime, the mine’s 43,200 feet of recent

lateral development will help it produce the ore required over the first 23 months of production. Accessing the ore is being done through a network of 14 x 14-foot drifts with 14 x 16-foot ramps to accommodate a fleet of 30-tonne trucks and six-yard scoops. Additional features include a DaveyMarkham hoist in a 9 x 18-foot service shaft and two conveyances with FLSmidth

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and Stainless Steel Technology equipment. There are two conveyances featuring a 15 and 18-tonne skip and an underslung cage for 17 miners and a double-deck auxiliary cage for eight. All mining is currently being done on the 3150 and 3850 levels. At the mining levels, production involves a fleet of Redbore 40 raise drills and two fully automatic Atlas Copco Simba 4.5-inch in-the-hole drills, equipped with electronic detonators, for blasting on the faces. In keeping with innovations, at full production, Totten Mine will also include an automated backfill system with 5,000 tonnes of sand stockpiled on the surface and fed automatically to underground locations through a series of diverter valves. Golder Associates designed the system whereby bulk cement is stored in a tower and transferred by screw conveyor into a three-impeller mixer to make a water/ cement slurry. As needed, the slurry is initially sent to the 1250 level, then horizontally 300 feet to another valve where it descends to the 3615 level. Underground development work and surface activities at the Totten Mine involved as many as 500 people at one time. In order to maintain communications and most of all safety, one of the things that Bob Booth says sets the Totten Mine apart from many of the others is the number of sophisticated electronic devices that are used to keep in touch with what’s going on in and around the mine. “Everything from the top of the head frame, down the shaft, to the ore faces, to the equipment and the operators working at them, are being monitored to help ensure safety at all levels,” says Booth. “There’s not an inch of this mine, nor a person or piece of equipment in it, that’s not under the watchful eye of our central control team and that’s a good thing because we’re determined to make the Totten Mine the safest and most productive place to work. “What’s more, we have a motto to live up to: “One team, one-way to zero harm” and we are continuing this culture into the operations phase of the Totten Mine.” CMJ

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| Mining in Ontario

TWOTO

TANGO TANGO EXTENSION TO LENGTHEN LIFE OF DE BEERS’ VICTOR DIAMOND MINE By Field Editor Marilyn Scales

t may be premature to begin development of Ontario’s second diamond mine, but De Beers Canada is giving the most likely candidate – the Tango Extension kimberlite – a thorough going-over. The Victor diamond mine became Ontario’s first when it opened in 2008, but its life was known to be limited to about 12 years. Now halfway through the resources, De Beers is looking at some of the 18 other kimberlites nearby. The Tango Extension kimberlite (not to be confused with the Tango kimberlite) is at the advanced explo-

ration stage, but appears to be the most likely to extend the life of the Victor processing facilities. Before looking at what is officially the “Victor mine extension project,” a brief review of the mine and facilities is in order. The wilds of Northern Ontario is never going to be a cheap place to build a mine, and De Beers spent slightly more than $1 billion developing the Victor pit, the processing facilities and the permanent camp in the swampy muskeg of the James Bay lowlands. The processing plant has an annual

18 | Canadian Mining Journal • February/March 2014

capacity to treat 2.7 million tonnes of kimberlite, recovering a nominal 600,000 ct of diamonds each year. In 2011 the output was significantly higher, 779,000 ct. Because the diamonds are of exceptional value (US$400 per ct in the rough state), the recovery plant is highly automated. Missing even one stone would have a negative impact on profits. The plant relies on dense medium separation and x-ray sorting. Processed kimberlite is not acid generating and stored on site. More detail is available in the January 2009 issue of CMJ. www.canadianminingjournal.com

Aerial view and a closer look give scale to the size of the project.

The recovery process is highly automated. Missing even one stone would have a negative impact on De Beersâ&#x20AC;&#x2122; profits.

The nearest aboriginal community is Attawapiskat 90 km away. De Beers established a marshalling yard there to assemble material that must be trucked to the mine site over a winter road, otherwise access is via air for small supplies and the workforce of roughly 500, more than 40% of whom are aboriginal. De Beers has signed impact benefit agreements with the Attawapiskat, Moose Cree, Kashechewan and Fort Albany First Nations. A working relationship is also in place with the Taykwa Tagamou Nation.

The closure of the Victor mine is anticipated in 2018. Progressive reclamation has already started. That will be followed by post-closure reclamation into 2021 and environmental monitoring thereafter. Rather than let an expensive processing plant and state-of-the-art accommodation complex go begging, De Beers has been exploring the other kimberlites near Victor. The most promising so far is the Tango Extension less than 8 km northwest of the Victor mine. The geology of the Tango Extension kimberlite is similar to that of the Victor

kimberlite. It has the classic champagne glass shape, formed by continuous volcanic activity 160 million to 170 million years ago. The kimberlite is subdivided into four geological units, each with a different grade and diamond size characteristics. The surface of the Tango Extension measured approximately 7.7 ha, and drilling has revealed that it extends to 292 metres below surface, although not all of the deepest portion is mineable. The host rock is comprised of limestone with sections of mudstone. The kimberlite is overlain by about 20 metres

February/March 2014 â&#x20AC;˘ Canadian Mining Journal |

| Mining in Ontario Photo clearly shows the extent to which the processing and other structures have made the site a self-contained operation within a remote surrounding.

of marine clay topped with a few metres of peaty muskeg typical of the area. The finished pit area will cover 36 ha as reflects the removal of the overburden. Stockpiles

of mine waste rock, overburden and peat, plus the roads associated with mining, will occupy approximately 330 ha. Key to the viability of developing the

Heavy machines carve away at rock deep within the mine.

20 | Canadian Mining Journal • February/March 2014

Tango Extension is that the processing plant, mining fleet, workforce and infrastructure are already on site. Mining at a nominal rate of 3 million tonnes annually will keep the Victor diamond recovery plant at capacity. The fleet – including Caterpillar 385 and 992 loaders, one Tramac/Montabert EXC2 blasthole drill, plus two Cat 777, four Haul Max and two Cat 733 trucks – will be moved to the new pit. Employees are skilled and their accommodations in place. The processed kimberlite containment area is permitted and can accept tails generated by a further five years of mining. The site has a source of power and transportation links. De Beers has already been in general discussions concerning Tango Extension with the First Nations who are party to impact benefit agreements. The IBAs contain clauses that include work to extend the mine life within the original agreements. Water management is expected to be very similar to the Victor mine. A series of dewatering wells will discharge clean www.canadianminingjournal.com

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A MINE OF SOLUTIONS Technical, economic and feasibility studies NI 43-101 technical reports Mine planning, design and simulation Plant design and simulation EPCM projects Commissioning assistance Power generation and T&D Automation and industrial IT Telecommunications Optimization of drilling and blasting applications Process optimization and control

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groundwater to the Attawapiskat River at the existing facility. Surface water will be treated on site and either discharged with the dewatering well water, or discharged to the muskeg wetlands. Wastewater from site washroom facilities will be trucked to the existing Victor facility for treatment. During the permitting phase, De Beers and the Ministry of the Environment will determine, based on detailed hydrogeological modeling, to what extent any seasonal flow supplementation of nearby muskeg streams might be necessary. This precautionary practice has been proven to be effective during the operation of the Victor mine. Wastes will continue to be managed as at Victor. Stockpiles of muskeg peat, overburden, waste limestone-mudstone and possibly low grade kimberlite will be established close to the Tango Extension mine. These will eventually be reclaimed and revegetated using methods previously proven at Victor. Processed kimberlite ore, after recovery of the diamonds, will initially continue to be placed in constructed above-ground containment dikes as is the case at Victor. However, the environmental assessment will evaluate the option of placing both coarse and fine processed kimberlite wastes into the former Victor mine pit. This latter option is expected to substantially reduce the environmental footprint of the mine and also improve the economics of the project. The extensive environmental monitoring and research programs for the Victor mine provide confidence that the Tango Extension project can go ahead with minimal environmental impacts. Concerns about mine effects on caribou, fish, water quality, etc., have proven to be as predicted at Victor, or significantly less than expected, in every case. Next steps De Beers has scheduled a bulk sample program for the Tango Extension kimberlite to be carried out in the first quarter of 2015. The results of this will be used to better understand the financial potential of the pipe. At that time the company will prepare a capital cost estimate for development that will include the pit and a surface buildings such as an office and lunchroom at the Tango Extension site. Resource tonnage, carats per hundred tonne numbers, and the value per carat will also be calculated when the results of the bulk sample are known. Meanwhile a dewatering flow test is planned for March 2014. This will help determine the economics of dewatering the proposed new pit. These results will also be used to finalize the fixed costs, including the mining approach, for the project. A spokesman for De Beers said that early indications are that the Tango Extension is not as economically viable as the Victor mine. The company will maintain its commitment, currently more than $50 million annually, to local communities. Whether that level of funding will be adjusted while mining the Tango Extension has yet to be determined, but De Beers remains focused on providing local priority for training, employment and business opportunities. The Tango Extension environmental impact assessment is to be completed in July 2014. Mine dewatering is still being studied www.canadianminingjournal.com

A101768 AEL IRON 178x254 CMJ fa.pdf

2012/07/03

2:48 PM

| Mining in Ontario and comprehensive community consultations will be held. Given the timelines set out by the Canadian Environmental Assessment Act in 2012, De Beers expects a decision from the minister in mid-2015. If there are no major delays, a development decision may be made early enough so that financing can be secured and equipment mobilized for a winter 2016 start of construction.

The timeline is tight – three winters of construction at Tango Extension so that mining can start in 2018 before the Victor pipe is exhausted in the first half of that year. De Beers warns that any extended gap in the mining sequence between the

two pipes will have a negative impact on the financial model for Tango Extension. As the exploration of the Tango Extension kimberlite continues, De Beers may be prepared to develop Ontario’s second diamond mine. CMJ

A fleet of various CAT trucks is required to keep the flow of material flowing through the processing cycle.

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Ontario forecast calls for

LARGE FLAKES Graphite mine gets ready to weather competition By Russell Noble

A view of the Kearney Mill tucked away in a picturesque setting of rolling hills just 4 km from Algonquin Park.

26 | Canadian Mining Journal â&#x20AC;˘ February/March 2014

www.canadianminingjournal.com

The mill during the deep freeze of winter.

Kearney Graphite Mine Site A detailed map shows the mill Area in relation to other parts of the mine and surrounding features.

Graphite Lake

Open Pit

Waste Rock Pile

Polishing Pond

February/March 2014 â&#x20AC;˘ Canadian Mining Journal |

| Mining in Ontario

hen the word “flakes” is mentioned in Ontario at this time of year, most people think about the heavy snow that’s been covering the roads and ski hills across much of the province. Weather reports describe the flakes as everything from “heavy” to “wet,” to “light and fluffy,” but never “large and silverygrey,” which is the way Ontario Graphite describes the flake graphite it’s about to start producing from its new mine near Kearney. Located between Huntsville and North Bay, about 250 km north of Toronto, the Kearney Graphite Mine is neatly tucked away on 445 hectares of Crown land adjacent to Graphite Lake. Its closest neighbour, Algonquin Park, is a little over 4 km away, but visitors to the park would never know there’s a graphite mine just over the hill thanks to the mine’s conscientious effort to run a clean and quiet operation. In fact, the only thing that gives away the mine’s location is a small “Kearney Mine” sign on the main road, 15 km from the site. Its tranquil setting, amidst rolling hills and dense forests, makes the site almost resort-like because of the carefully maintained property and surrounding area. In actual fact, the Kearney Graphite Mine is a full-scale, open-pit operation with an inventory of 51.5 million tonnes of Measured and Indicated Resources at an average grade of 2.14 per cent Cg (carbon graphite), with an additional 47.8 million tonnes of Inferred Resources at an average grade of 2.0 per cent Cg.

That’s enough material for a 50-year mine life, but right now Ontario Graphite’s focus is getting the place up and running to full capacity and producing more than 20,000 tonnes of high-quality (92% to 97%) flake graphite mineral concentrate. Like most mines, the Kearney Graphite Mine is not a new discovery. In fact, flake graphite was first identified in rocks outside the town of Kearney in the 1980s, but it wasn’t until 1989 when Cal Graphite started milling ore that word of the mine got out. Cal Graphite worked the pit until 1994, producing almost 100,000 tonnes, until production and management problems led

to the company shuttering the operation. The Kearney Mine site remained closed until 2006 when Ontario Graphite saw the value in the remaining resources and moved in with the vision of making the mine one of only three producers of natural flake graphite in North America and, most likely, the sole producer by 2016. The Kearney Mine is currently the largest confirmed graphite mineral resource project in North America, and one of the larger individual deposits in the world, and it’s well on its way to bringing actual product to market. By doing so, it will be the first to provide new graphite supply to customers in

A fleet of Ontario Graphite’s new equipment moves aggregate to build a dam raise.

A new cut to shorten haul distances.

28 | Canadian Mining Journal • February/March 2014

www.canadianminingjournal.com

North America and around the globe. Those customers are understandably anxious and awaiting the re-start of the Kearney Mine later this year. Local businesses and residents in the community and surrounding area are also eagerly anticipating the impending boost to the local economy. The project promises to create 80 direct, full-time jobs and up to three times that amount in spin-off positions. The company has been working diligently to reactivate the mine and mill and to start processing approximately one million tonnes of ore per year while producing more than 20,000 tonnes of natural, large-

flake, high-carbon graphite concentrate. It’s on schedule to begin production by fall of 2014. Jerry Janik, General Manager of the Kearney Mine says, “We’ve worked hard to build a strong management team and we’re confident that, with new mine and mill managers in place and about 20 other employees already on-site, we’ll be in production as planned in 2014.” Firing up an operation like the Kearney Mine takes more than flipping a switch. One of the first challenges the Ontario Graphite team faced was getting power to the site. Being an off-the-grid facility, the answer proved to be the

installation of three – with a fourth on standby – 1.24-megawatt diesel generators for plant operations. In keeping with a new approach, Janik says the company’s engineers designed the power system so that waste heat from the generators will be used in the drying process and to heat the mill building. Inside the mill, all of the major pieces of equipment needed to re-commission the mine were either refurbished or replaced, while one of the more noteworthy components of the operation was the installation of a new 5.5-metre, hydraulically driven SAG mill. Janik said that additional flotation cir-

Equipment used in processing graphite including a flotation floor, regrinding mill vacuum filtration belt.

February/March 2014 • Canadian Mining Journal |

| Mining in Ontario cuits on the ball mill were also installed to improve both the recovery and quality of the graphite. Additionally, high-efficiency horizontal screens were put in place for precise sizing and were fully enclosed to contain dust. Away from the mill, Janik said the company has taken a very serious look at the pit, its location, and the way it was mined by the previous owners.

“Our mine plan has been designed to include minimizing the amount of waste removal,” said Janik. “This includes trying to use our non-bearing graphite rock as an aggregate source to further minimize our footprint and impact.” The company has also gone to great planning and expense to rebuild the access road to the site in an effort to lower the grade and provide safer entry and exit, par-

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General Manager Jerry Janik at the open pit of the Kearney Mine.

ticularly during winter operations. While this will have the effect of reducing haul distance and cycle times, it is further indicative of the company’s commitment to health and safety in all aspects of the business. The non-graphite bearing rock will be used as a source of aggregate for community construction projects, like road maintenance, and to promote ongoing conservation at the mine site. Janik also pointed out that, “Eightyfive per cent of the water used within the mine will be recycled in the milling stage, reducing the need to use water from the many surrounding lakes.” As mentioned at the outset, Ontario Graphite’s large-flake deposit at the Kearney Mine is massive and has already been deemed by some to be one of the largest individual deposits in the world. Janik says the mine holds great promise for the future because of its four types of graphite: Flake Graphite (FG); HighPurity Flake Graphite (HFG); Micronized Flake Graphite (MFG); and High-Purity Micronized Flake Graphite (HMFG), all of which will be used in several markets. “Graphite is used in everyday life in products as common as pencils, batteries and cell phones,” says Janik. “I’m honoured to be a part of a team that will produce high-quality, competitively priced graphite for customers around the world for years to come.” CMJ Ontario Graphite’s Kearney Graphite Mine.

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| Mining in Ontario

BEING SAFE

NO ACCIDENT IS

By Correspondent David Godkin

he superlatives trip off the tongue for both the mine and the region in which it sits. One of the largest Archean greenstone belts on Earth. One of the largest base metal deposits in world. The mine itself? The world’s deepest base metal mine, plunging to almost 3,000 meters. “There are deeper mines in South Africa,” says Mine Manager Tom Semadeni, “but they start much higher above sea level, making Kidd Mine near Timmins, Ontario “the closest accessible point to the very centre of the Earth.” But operating so far underground also “poses all kinds of technical challenges. “The more significant ones are just the logistics of getting people and materials to work. It takes a long time to get down there.” Deep mine, deep pockets… Back in 2004, mine owner Glencore was told adding 3.4 million tonnes of copper/

zinc ore to its mine plan meant it would have to dig deep, spending $120 million to develop three additional production levels. By December 2011, that dollar number was closer to $140 million. “We had to deepen the ramp, establish infrastructure like dewatering, back filling and electrical systems,” Semadeni says. Added to the challenge of installing a location pocket at the 2,900 meter level, he says, were increases in atmospheric pressure which elevate air temperatures and place additional loads on ventilation systems. Now, with expanded ventilation and backfill systems to the new sections of the mine up and running, Glencore turns its attention to upgrading some of its underground loaders. Working with Sandvik, Glencore has automated two of its 16 loaders so that they no longer require equipment operators. Instead, a video feed enables an operator at the mine’s surface to view the bucket underground and fill it to capacity using remote controls. Once

32 | Canadian Mining Journal • February/March 2014

released, it wends its way through the tunnel’s labyrinth until it reaches the dump point where the operator releases the load. “It then travels automatically all the way back to the loading point where the operator fills and releases the bucket again. To my knowledge, we’re the first mine in North America to do this.” No more underground operators means no more delays getting staff down to the equipment, resulting in “a big productivity improvement,” Semadeni adds. While it’s “still early days” (Sandvik’s LH514 AutoMine Lite loading system has only been at work a few months) Semadeni estimates it has achieved a peak of 30 per cent improvement over more conventional underground loaders. The first rule of thumb: accidents don’t just happen… Having one less man underground makes Kidd not only more productive, but safer. That dovetails with yet another superlative www.canadianminingjournal.com

People movers at Glencore’s Kidd Mine help ensure that miners get to and from their work areas safely.

heaped on Glencore and its Kidd Mine: Canada’s safest metal mine. Last September Glencore grabbed an award from Workplace Safety North. That award sits nicely alongside the John T. Ryan national safety trophy which Kidd Mine won in early 2013 (3.3 million work hours without a lost-time incident) and the award it won in 2008 for the best safety record at an eligible Ontario metal mine. Semadeni says there’s nothing accidental about any of this; Glencore is merely continuing a tradition of safety he believes has characterized Canada’s mining companies at home and abroad, driven in part by the expectations of ordinary Canadians. Those same expectations drive his staff. “I think that’s what’s allowed us to be successful at the mine here…We’ve had a lot of employee involvement in an environment of very high expectations.” As a result, the frequency of accidents at Kidd Mine “is about a tenth of what it was, say, seven years ago.”

Semadeni credits “many, many things” for that improvement. For years Kidd Mine has used the Neil George, Five-Point Safety System focused on training the workforce to recognize risks and hazards and putting controls in place to address them. In 2004 the company and its union also introduced the “zero acceptance program.” Simply put,

workers and management agreed no one would continue working if substandard conditions existed at the mine site. Within four years its modified work injury frequency stood at an award-winning 0.54 per 200,000 work hours. Key to mine safety, says Semadeni, is avoiding finger pointing among staff.

Aerial view of Kidd Mine near Timmins, Ontario.

February/March 2014 • Canadian Mining Journal |

| Mining in Ontario

Interior look at concentrator grinding mills in motion and a closer look at them during start up.

Instead, staff are encouraged to begin each new shift by asking what happened on the previous shift. Did everything go smoothly and safely? If so, fantastic. Conversely were there things that we might need to change? The Positive Attitude Safety System (PASS) reinforces the zero acceptance program at Kidd Mine by ensuring a healthy discussion and selfevaluation of safety preparedness at all levels, including supervisors, says Semadeni. Semadeni maintains mining is no different than any other heavy industry. “We have electricity, we have compressed air, we have people working at height and people interacting with large machinery. We have to make sure people understand the hazards associated with those types of activities.” But safety can’t be left solely to

Rock breaking is potentially dangerous but thanks to automation, Glencore has been able to make the task safer by having operators work with remote controls.

individual judgment, he asserts. You also require a hierarchy of controls to help you decide when it’s best to eliminate rather than merely minimize a hazard. Eliminating the operator on the automated scoop loader is a good example of that. “The least effective control is administrative where you just write a procedure to say, “Okay you’re going to wear really thick gloves or a shield because you’re going to be peppered by something and we can’t figure out a way to stop it.” Any risk you can’t eliminate, says Semadeni, you manage. “We put five cameras on our big equipment, for example, so that the operator can see all around the equipment.” Glencore also creates “no-go zones” prohibiting workers from entering an area where large equipment is operat-

34 | Canadian Mining Journal • February/March 2014

ing. But danger comes in smaller packages, too, Semadeni points out. “On our smaller pieces of equipment we put very powerful strobe lights to make sure that they’re visible. “We approach it as a science. We say safety is a process in which there is a cause and effect relationship. You make a list of all the scenarios in which a person could get hurt and then you ask `Do we need a special procedure, a tool to stop that from happening?” Rule two: It’s not all about the rules… The job doesn’t end there. You also have to monitor the safety processes to determine how effective they are. Glencore puts a lot of effort into what it calls “job spot or task observations” where supervisors and staff monitor work practices on the job and make recommendations on ways to lower risk. Does being assessed in this way make staff unduly self-conscious or defensive? It needn’t, says Semadeni, if everyone understands safety is a value. “We shouldn’t be following the rules because the company wants them to… people should be following the rules and procedures because they make sense.” Underpinning work safety culture is a basic understanding that no-one is immune to danger, that we’re all only human. We get tired. We get frustrated. We rush when we should take our time. Worse we become complacent. Here, www.canadianminingjournal.com

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Moving material by rail helps reduce truck traffic and therefore reduces the number of vehicles on site.

building self-awareness is key, says Semadeni. To that end, Glencore has adopted a formal program called SafeStart which

helps staff understand how their state of mind can contribute to them getting hurt. “And then we give them tools to combat that. So it’s become a very personal thing.” Most mine managers understand that there’s a productivity spin-off from safety controls. Safety control “means you’re working in a more controlled environment. There are fewer surprises and fewer disruptions to production.” Tom Semadeni says that will be even more apparent as industry moves forward, but the increased benefits of safer controls will only occur by chipping away at the persistent notion that “accidents sometimes just happen.” They don’t. “With a little bit of knowledge, people understand there is a cause and effect relationship. That there’s no such thing as an accident. Things happen for a reason. Something goes wrong and as a result someone is injured or worse.” Equally important, Semadeni adds, is treating staff like adults and engendering a feeling of pride and engagement on site.

It’s the sense that you’re part of something bigger than yourself, in particular part of the surrounding community. “It’s important that we’re in good standing with community and feel proud to wear the brand of Kidd operations out in the community.” Semadeni likens it to being on a hockey team. People like being winners. Employees at Kidd operations see themselves as members of a winning team and celebrate that fact. But part of being a winner is sharing your successes. People in the community surrounding Kidd operations take enormous satisfaction knowing there is “a centre of excellence in their midst. It helps validate each person who works here, says Semadeni. “So when they’re at the arena or Tim Horton’s and the topic comes up about safety, something you hear a lot about on the radio, it’s important to me that people locally know this mine is top notch. It’s important for our employee to know that and the people around them as well.” CMJ

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| Mining in Ontario

URBAN MINING Tunneling in shale poses many challenges at Billy Bishop Airport By Eastern Correspondent Dâ&#x20AC;&#x2122;Arcy Jenish

After the breakthrough at Toronto island with massive amounts of shale still in the foreground.

38 | Canadian Mining Journal â&#x20AC;˘ February/March 2014

www.canadianminingjournal.com

A Tunnel Boring Machine breaks through at Toronto island.

ometimes the smaller jobs can be the toughest and the most challenging. Take, for example, the pedestrian tunnel currently under construction that will link the mainland with the Billy Bishop Toronto City Airport, located on the western tip of the Toronto Islands. The elevator shaft on the mainland is a mere 100 feet deep—small change by mining industry standards—and the tunnel beneath the Western Channel is just over 600 feet long—which may not raise many eyebrows among underground miners. “It’s not a long tunnel,” concedes Gary Benner, Vice-president of Newmarketbased Technicore Underground Inc., the prime contractor on the project, “but it’s complicated because it’s in shale, not hard rock. That has a big impact on how you build it.” Work on the $82.5 million project— to be funded largely through airport user fees—began April 2012 and Technicore crews have toiled round the clock since then except for a few days

over Christmas 2013 when a devastating ice storm hit the city. The project is slated for completion later this year, at which point the nearly 2.4 million passengers who use the island airport annually will be whisked back and forth on fast-moving pedestrian walkways rather than a ferry named Marilyn Bell I. Technicore crews began by excavating the elevator shaft and that’s where they encountered their first challenge. They had to dig through 30 feet of soft, wet sandy overburden before hitting bedrock and they had to install interlocking secant piles to secure and seal this segment of the shaft. The piles are cylindrical holes—one metre in diameter in this case. Once drilled, they are filled with concrete and they are overlapping, or interlocking, which adds strength and keeps out water. Technicore crews drilled the primary or odd numbered piles first; say, for example, one, three, five and seven, and then poured concrete into them. After the concrete had set, the crews drilled the intermediate or even-numbered piles (two, Excavator works the primary cut.

February/March 2014 • Canadian Mining Journal |

| Mining in Ontario

Tunnel drift under Western Gap between mainland and Toronto island.

four, six and so on) and they cut into the edges of the primary piles to create the overlap or interlock. By December 2012, the shaft had been excavated to depth and the tunneling began and that’s where things became very complicated. As Benner explains, the tunnel passes through soft, horizontally layered shale that is prone to collapsing. Before they could begin to excavate the tunnel, they had to create an arched crown, or secant wall above it in order to distribute the

loads and eliminate the possibility of a collapse. They used two laser-guided, manually operated tunnel boring machines (TBMs), nicknamed Chip and Dale, designed and manufactured by a Technicore affiliate. The cylindrical TBMs drilled seven piles, each of which were 1.9 metres in diameter, and they drilled from the mainland shaft to the island, initially at a grade of one per cent. However, about threefifths of the way through, the grade

changed abruptly to four per cent and the TBMs broke through on the island nearly 50 feet above where they had started. Technicore crews first drilled the primary piles; one, three, five and seven, and these had to be at different elevations to create an arched crown. Then they filled each of them with some 500 cubic metres of concrete before they drilled the intermediate piles; two, four and six. “It was a huge challenge to get that concrete in place,” Benner says, “because TBM completes second pilot hole.

Excavators work on island shaft.

40 | Canadian Mining Journal • February/March 2014

www.canadianminingjournal.com

we pumped from the low end on the mainland and had to fill 600 metres of tunnel and we had to go uphill 50 feet to the island. Everybody said you couldn’t do, but we did it.” Another affiliated company mixes, supplies and delivers the concrete for all of Technicore’s tunnelling projects and the affiliate found the solution. “We came up with a proprietary mix,” says Benner. “It would remain fluid for up to 10 hours. It would flow for the length of the drifts and it was the right strength to allow us to drill the intermediate drifts and create the interlock. The interlock had to be almost perfect to achieve the structural integrity of the arch. It worked out to within an inch all the way around, which is pretty amazing.” The excavation of the actual tunnel, which measures 36 feet wide by 26 high, began in June and Technicore used the TBMs to drill two pilot holes. That made it easier for German-manufactured Liebherr mining backhoes, equipped with hydraulic breakers, to chip away at the rock until the tunnel was excavated to its full size. As well, the pilot holes served as ventilation shafts and fans installed on the island side sucked out the enormous amounts of dust created while the backhoes were at work. The breakthrough to the island occurred at 11:30 a.m. on August 23, 2013 and was cause for a celebration and a major media event. “This is a watershed moment for our Filled and reinforced pilot holes as tunneling advances.

A colourful display where pilot holes start to shape the tunnel.

passengers,” said Mark McQueen, Chair of the Toronto Port Authority board. “The pedestrian tunnel is well on its way to being complete, now that the most technically difficult element of the project is behind us.” Since then, Technicore has sprayed the base, the sides and the roof with a thin layer of concrete to stabilize the shale. Next a sub-contractor waterproofed it by installing sheets of rubberized material similar to swimming pool

liner. Over the past few weeks, Technicore has been pouring in stages a steel reenforced concrete base that is four feet thick to resist upward pressures that might cause cracking. By the end of March, Benner says, Technicore should be finished pouring the concrete for the walls and the roof and will make way for other contractors who will install electrical and mechanical systems, lighting, the mobile walkways and a bank of 10 elevators. CMJ

The Technicore team proudly poses after the breakthrough.

February/March 2014 • Canadian Mining Journal |

| Mining in Ontario

DEEP Defying the

UNIQUE SOLUTION ANSWERS MINER’S BIG QUESTION

Staff Report

“Standing tall” are two words that connotate ‘pride in achievement’ and that’s exactly what J.S. Redpath Limited of North Bay feels right now after successfully answering the question: “What do you do when you have an ore body sitting under a channel in the middle of a lake?”

oldcorp Red Lake Mines asked J.S. Redpath that very question six years ago because that was the dilemma the miner faced when it acquired the Bruce Channel Discovery from Gold Eagle Mines Inc. in 2008. At the time, J.S. Redpath Limited had been commissioned by Gold Eagle to sink an exploration shaft on McKenzie Island on Red Lake, in northern Ontario, the only available land in their claim package to access the discovery. With transportation limited to barge during open-water 42 | Canadian Mining Journal • February/March 2014

seasons or ice road in winter, logistics of such a program were less than ideal. The one ace that Goldcorp had up its sleeve was the historic Cochenour mine, sitting idle on the shore of the same channel in Red Lake. Not without its own challenges, this historic site sits immediately behind the fences of the local Cochenour residents’ backyards. The mining program would prove to include stakeholder challenges not always common in a shaft and mine development projects; more specifically, how is a mine developed with all its potential construction, equipment, blasting, ventilation, increased heavy equipment traffic and noise, without bothering a few of the neighbours? Stakeholder engagement would undoubtedly play a significant role in the success of this project, and still does to this day. The new Cochenour Project is situated in one of the world’s most prolific gold camps, just south of the old Cochenour Mine site which ceased production in 1971. www.canadianminingjournal.com

Below (left) and above ground at Goldcorp’s Cochenour mine adjacent to Red Lake in Northern Ontario.

The underground project area is five kilometres west of Goldcorp’s flagship operation, Red Lake Gold Mines, and approximately 230 km northwest of Dryden. The area is accessible by Highway 105 which heads north from the Trans-Canada Highway, and also by daily commercial air services which connect the local communities to both Thunder Bay and Winnipeg. The Cochenour/Bruce Channel deposit is located down-dip from the historic Cochenour mine. It made sense that advanced exploration of the deposit could be optimized by using the old Cochenour shaft, although the program would be limited, owing to the facility’s size and antiquated state. In May 2009, Goldcorp announced that the work would proceed utilizing the existing Cochenour facilities, while an upgraded shaft and hoisting plant would be designed and built concurrently. The new facility would be part of a much larger plan to optimize the Red Lake assets including a 6.7 km underground drift (currently under construction by J.S. Redpath Limited) that will allow efficient ore hauling from Cochenour to the existing processing facilities at Red Lake’s Campbell milling operation. The drift also opens up exploration, at depth, of 5 km of untested ground in one of the world’s richest gold districts. J.S. Redpath began the task of designing a system to dewater and rehabilitate the existing shaft, with concurrent efforts directed toward the future infrastructure designs and methods. The total program included simultaneous access of both the top and bottom of the Bruce Channel ore body through the future widening of the existing Cochenour shaft and the con

tinued construction of a 6.7-km-long rail haulage drift from the existing Red Lake underground workings. The Goldcorp/Redpath team went to work designing a program that would allow early access to the underground workings for diamond drilling purposes, with parallel engineering and construction of the new facilities. This variant on traditional approaches would significantly reduce the overall project schedule. By initiating the underground exploration from the existing facilities, long lead items for the new plant could be removed from the critical path, all the while valuable exploration information would get a head start, measured in months. A pre-requisite to carrying out simultaneous work would be to find an alternate access into the old shaft, while the existing facilities were removed and new headframe and hoist were erected. The teams came up with a creative concept that utilized a “drop shaft” sunk in the position where the future ventilation plenum would be located. From the bottom of the 18-foot-diameter drop shaft, some 75 feet below collar elevation, a “rope drift” would be driven over and broken into the existing timber shaft, with hoist and winches commissioned in the evase location at the bottom of the drop shaft. Rope sheaves would be mounted and inverted from a temporary structure in the timber shaft just below a shaft seal/ bulkhead installation. The bulkhead provided for the separation of surface works above, and the timber shaft below; the plans key component for concurrent stripping of existing shaft furnishings and the erection of the new headframe. By utilizing February/March 2014 • Canadian Mining Journal |

| Mining in Ontario

Not all of J.S. Redpath’s work was below ground and out of site.

the drop shaft for use as both early shaft access and permanent ventilation, the multi-use concept would provide an overall savings to the project. But what of the old open stopes just below the crown pillar where the drop shaft, rope drift and new collar house would be constructed? Mining at Cochenour in the past had progressed to within 75 feet of surface, in the exact locations of some of the new infrastructure. Since the available footprint did not permit new areas to construct, these openings had to be surveyed, modelled and backfilled prior to commencement of construction.

The first order of business was the pumping out of some 276 million gallons (418 Olympic size swimming pools) of water from the old Cochenour workings. With the existing hoisting plant re-commissioned, workers accessed the shaft to dewater and rehabilitate the three-compartment timber shaft down to a depth of 2350 feet, at which point debris at that elevation made access to final shaft bottom at 2756 feet impassable. Dewatering was carried out with twin 125 hp submersible pumps suspended from a purpose built crosshead and lowered with a designated hydraulic winch in one of the two existing hoisting compartments. Worker and material travel via the existing Cochenour hoist was limited to the other compartment, to allow pumping to be carried out independently from other hoisting operations. Pumping stations, utilizing 500 hp multi-stage pumps, were set up as required on the newly accessed levels and pumped to a surface water treatment plant. As levels were dewatered and cleaned of slime and debris, bulkheads were installed to close access to the old workings. In all, 18 levels were exposed, cleaned up and inspected. The first phase of diamond drilling was carried out from the 2050 level, where Redpath crews were required to extend the existing workings. That was a significant challenge in itself, as there weren’t any means of loading and hoisting to surface the development rock to be generated during this program. A unique “Ejector” car was later designed and built to allow

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the development rock to be trammed to existing open stopes on the 1300 level and dumped. This was but one of the unique challenges that had to be overcome during the program; that at times seemed to throw a new challenge at the team daily. With little documented information of the existing mining openings available, crews routinely came upon excavations that required backfilling prior to proceeding with development. In early October 2010, with the drop shaft and rope drift completed to coincide with the commencement of surface construction, the diamond drills were demobilized, the surface plant decommissioned, and a shaft bulkhead installed 60 feet below the existing collar elevation. Access in the drop shaft was by means of an Alimak HEK double drive electric personnel cage. This unit would also serve to remove old shaft timber and furnishings as it was stripped from the shaft and trammed across the rope drift on rail cars via air tugger. Seventy-five feet below the collar, a shaft stripping hoisting plant was installed. This consisted of a single drum Timberland 300 hp personnel hoist with .75-inch diameter rope for worker transport during the shaft stripping. A pair of New Era 56-inch stage winches with 1-inch diameter rope suspended the timber stripping work stage. A Timberland 40-inch diameter emergency egress hoist outfitted with .75-inch rope rounded out this plant. The drop shaft and hoisting plant provided for uninterrupted access to the shaft during decommissioning and remov-

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al of the existing Cochenour hoisting facilities including the headframe and hoist and buildings on surface. By December 2010, the new concrete headframe, collar house and hoist plant were being erected. At the same time, shaft stripping commenced from the deepest point reached in the shaft pumping/rehabilitation phase at the 2350 elevation. As crews retreated upward with the progress of the removal of the shaft timber and services, the dewatering pumps were shut down and removed accordingly. The obvious outcome of the suspension of the pumping system would be encountering the recharging water elevation during shaft slashing activities, to commence some months later. A robust pumping system had to be incorporated into the designs to handle the re-pumping of the shaft during slashing activities, at a rate that would not excessively impede the shaft sinking progress. The 2300 feet of timber and services removal in the old shaft was completed on schedule to coincide with the completion of the new headframe and hoist plant in June 2011. The drop shaft facilities were decommissioned, and a second raise climber was installed, inverted in the existing collar on surface to remove the shaft bulkhead and slash the shaft collar to permanent dimension. Slashing to full 18-foot diameter in the collar area was completed inside the new headframe to a depth of 140 feet, to allow the installation of the new shaft sinking gear. The full sinking plant consisting of a refurbished 12-foot double drum Nordberg hoist outfitted with 1.75-inch non-

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rotating rope and 2 x 1750 hp motors, 10-foot double drum CIR auxiliary hoist with 1.25-inch non-rotating ropes and 2 x 700 hp motors, 3 each 84-inch diameter 85,000 pound line pull New Era stage winches complete with 1.75-inch diameter ropes, 5 deck sinking galloway, Brutus shaft mucker, 2 boom electric hydraulic jumbo, collar doors, 20-foot high by 18-foot diameter concrete shaft forms and the sinking bucket dump. This was completed in November 2011. Further challenging the designs of the sinking plant, more specifically the galloway and shaft forms, was the requirement to accommodate three compartments and a fourth “deepening” compartment at three separate locations throughout the length of the old shaft. With the 18-foot diameter shaft designed to centre the three compartments, it meant the full area of the fourth compartment would be outside the new circular concrete shaft dimensions. To allow for the loads presented by filling this void behind the concrete forms, a separate set of secondary hanging rods had to be installed at these locations. The sinking cycle was far from standard through the upper portions of the project on account of the frequent encounter with previous shaft loading pockets and finger raises that broke through into the various workings. The bottom deck of the galloway required provisions for covering the opening of the rectangular shaft excavation so that no worker was exposed to a fall hazard. Initial shaft slashing had the broken rock filling the existing shaft void, negating the need to utilize the shaft mucker and hoisting this rock to surface. In March 2012, the old shaft void was eventually filled and rock mucking/hoisting commenced using the Brutus mucker and surface bucket dumping system. Seeing as the shaft had 18 existing levels to contend with, each station brow presented fresh challenges, and very close coordination and planning to execute their excavation safely. At some of these old stations, voids were encountered below

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the station floors that required extensive rehabilitation prior to the resumption of sinking activities. As slashing proceeded, it was imperative not to allow the recharging water to impede sinking productivities. The recharging water was kept lower than the advancing shaft bottom via pumping through the existing ore/waste pass system. Cage protected submersible 60 hp pumps were lowered by tugger to next approaching level. The 60 hp units pumped to inline 150 hp pumps that in-turn, pumped to pre-existing sump stations (475L, 1175L). Often a series of 150 hp in-line pumps at intermittent levels (~200 feet apart) were required to transfer the water to sumps where the 500 hp pumps would handle to surface. Once out of the reach of accessible ore/waste pass systems, it was deemed necessary to drill dewatering holes levelto-level with a ‘bar and arm’ style drill. Once drilled through, the holes were reamed to eight inches where a 40 hp pencil pump was lowered behind the pre-existing bulkheads/dams to pump out the up-coming level. The bar and arm holes were used to monitor and pump behind the existing bulkheads. In some cases the ore/waste passes were blocked but they were accessible at each level, Shaft slashing eventually reached the lowest point accessed during shaft rehabilitation and dewatering at the 2350 elevation. From here, some 400 feet of slime, shaft timber and debris from decades of operations were removed systematically in advance of slashing the face. Pumping of the water and slimes proved to be a challenge through this 400 foot section. The majority of the slimes were diluted with water and handled via the pumping system. The old rectangular shaft bottom at 2756 was eventually reached in August of 2012. A minor conversion to the galloway configuration was required to accommodate the transition to full-face shaft sinking methodologies at this point. Full-face/blind shaft sinking starting in September of 2012. During the slashing phase, 50 blast holes two inches in

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ISO 9001: 2008 Certified February/March 2014 • Canadian Mining Journal |

| Mining in Ontario

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diameter x 16 feet long were required to excavate to the final circular shaft dimension. Full-face sinking consists of 90 holes x two inches diameter in five circular radiating rows, drilled to a depth of 14 feet with a two-boom electric/ hydraulic jumbo. The jumbo is outfitted with Montabert 109 drills. Holes are loaded with 1.5-inch x 16 inch nitro-based explosive cartridges, 90 gram boosters and nonel caps initiated with detonating cord. All blasting is initiated electrically from the surface central blast unit. Mucking is carried out utilizing three x eight-tonne sinking buckets and a pneumatic Brutus telescopic boom type shaft mucker. Average bucket count is in the range of 75 buckets per bench. Bolting consists of 6-foot split sets and screen, with bolting being carried out as shaft mucking exposes sufficient wall area to bolt. Shotcrete is used where required. Unique to the project, mucking was limited to day-shift only, to minimize noise of the dumping activities for the Cochenour residents, until the dump area could be noise attenuated. A standard 300 mm monolithic concrete liner was poured utilizing concrete buckets behind 20-foot-high shaft forms with concrete inserts casted in the A ring. Galvanized shaft steel sets with a single cage and two skip compartments and an auxiliary hoisting compartment, are installed behind the advancing shaft bottom. Sinking buckets and crossheads run on the newly installed shaft guides. Currently crews are excavating the 3400 level station where a lip pocket will be installed. The lip pocket will handle development rock as crews drive development headings out to the orebody for further definition drilling. A ramp will be completed from this elevation to link up with the high-speed haulage drift excavated below. Final shaft bottom elevation will terminate at the 3660foot elevation in the first quarter of 2014, where provisions for loading pocket installations will be made. As exploration of the zone continues, the shaft bottom arrangement will be flexible enough to allow a quick resumption to shaft sinking if so required. With the shaft portion of the program complete, it is clear the old Cochenour shaft presented significant options for early access to underground drilling, while planning and construction of permanent facilities was carried out. Not without significant challenges, it is clear that with careful planning and a bit of creative thinking; a perceived liability could be turned into a tremendous opportunity to prove up the next great orebody in the Red Lake camp. CMJ

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| Mining in Ontario

High grades mean

HIGHER HOPES “Marginal” mine holds great promise

By Eastern Correspondent D’Arcy Jenish

ike Lalonde is a mining industry veteran and he’s a well-travelled one at that. “I’ve been in operations for more years than I care to admit,” he says. “I’ve worked all over Canada and as far north as Greenland. I’ve spent time in the U.S. and Central and South America.” Born and raised in Timmins, he followed in the footsteps of several uncles who were miners. He was involved in the development of Kidd Creek’s underground mine in Timmins in the 1980s, Franco-Nevada’s Ken Snyder Mine in northern Nevada in the late 1990s and Goldcorp’s Marlin Mine in Guatemala. Lalonde was director of underground mining at Goldcorp’s Red Lake operations

in northwestern Ontario before becoming chief operating officer of Vancouverbased Rubicon Minerals Corporation in June 2012 and, for now, his mining-related travels appear to be finished. Lalonde took over as Rubicon’s president and chief executive officer in January 2013 with a mandate to put Rubicon’s Phoenix gold project, also located in the Red Lake district, into production by early 2015. The company expects to produce 165,000 ounces annually for 13 years from an underground mine or deposit that lies beneath the East Bay of Red Lake and within sight of the headframe of Goldcorp’s Cochenour mine, which is now in development. The Phoenix property is also some five

50 | Canadian Mining Journal • February/March 2014

www.canadianminingjournal.com

kilometres from Goldcorp’s two other Red Lake mines, one of which is the Campbell mine that has been producing since 1949. Lalonde took a risk in jumping from a major producer like Goldcorp to a startup like Rubicon, which is--at this point--a one-asset company but he’s confident the move will pay off and that he’ll be staying put for a while. “I recognized that Phoenix would be a long-term prospect given the history of the Campbell and Red Lake projects,” he says. “The Campbell mine had a resource of about 200,000 ounces when it went into production. It wound up producing seven million ounces and it’s still going strong today.” Rubicon’s Pheonix project is based on a newly discovered deposit located in the heart of one of the world’s most productive gold-mining districts. The company’s chief geologist, Mark Ross, worked at the Campbell Mine from 2000 to 2006 when it was owned by Placer Dome. “We used to call it the jewelry box,” says Ross. “It’s amazing the grades that come out of this place. It doesn’t make any sense. It boggles the mind. You can make a lot of mistakes and still make a lot of money. In a marginal mine, every mistake is counted ten times.” Rubicon holds title to claims totalling

Rubicon’s Phoenix gold mine is expected to employ about 200 people from the Municipality of Red Lake.

100 square miles in the Red Lake district, which were assembled by former president and current chairman David Adamson, but for now it is focussing all its resources on putting the Phoenix project into production. The company has drilled 412,000 metres of core samples since 2002 and explored the narrow, near vertical F2 deposit to a depth of 1,400 metres. The drilling was done on the ice from midJanuary till early April most years and from barges when the lake was ice-free. Lalonde says the exploration program has revealed that the F2 is a lode deposit containing a resource estimated at 3.3 million ounces, and the grades delivered to the company’s mill will be in the range of 8.1 grams per tonne. Rubicon is fully permitted to begin

producing at a rate of 1,250 tonnes a day. It has sunk a shaft to a depth of 730 metres and has blasted tunnels out to the deposit at the 240-metre and 305-metre levels. Construction of the surface infrastructure is also well advanced. The company has built a two-kilometre access road, erected power lines from the grid, and built an electrical sub-station on site. The headframe and high-speed hoist were finished in the spring of 2012 and a tailings management facility capable of handling the first two years of production is also complete. The company will process the ore on site and has finished the mill building while the interior is still under construction. It has been designed to handle 1,250 tonnes per day, but can be expanded to put through twice that amount daily.

The Phoenix mine is already a busy place as crews enter the main complex with a headframe that can be seen for miles.

February/March 2014 • Canadian Mining Journal |

| Mining in Ontario Interior work at the mill is still under construction.

Lalonde says that the ore will be crushed underground before being hoisted to the surface. It will go to a grinding circuit first, where approximately 40 per cent of the gold will be recovered by gravity, and the balance will be processed in a carbonin-leach circuit. The total cost of putting the mine into production, as of October 2013, was $210 million. Rubicon has already raised $77 million and, as of year-end, was in negotiation with various parties to raise the additional $133 million. Both Lalonde and Ross are confident that there is more gold to be discovered below the 1,400-metre level of the F2 deposit and additional exploration will be conducted from underground platforms. As well, there may be considerable untapped potential on the claims the company holds. “We’ve got a lot of good prospects on that land, but we’ve got to concentrate our expenditures on the Phoenix property”

52 | Canadian Mining Journal • February/March 2014

says Lalonde. “We’ve got to manage the purse strings so we can move this thing to production.” Rubicon expects to employ 200 people when the mine is up and running and will draw some, but not all, its personnel from the Municipality of Red Lake, which actually consists of four small urban areas with a total population of 4,600. The company will also look for workers in several First Nations communities in the vicinity and, if it cannot meet all its requirements locally, it may have to fly people in and out from Winnipeg, which is about 250 kilometres by air or a 40-minute flight. In any event, Lalonde is confident it is only a matter of time before the company pours its first Phoenix gold and he’s got a hunch that there’s a lot more to be discovered on the site. “Sometimes it’s difficult to uncover the full potential right off the bat,” he says. “The resource right now is good for 13 years at 1,900 tonnes per day, but that doesn’t mean it stops there.” CMJ

www.canadianminingjournal.com

| Mining in Ontario

MINERS It’s always Safety First!

By Chris Hodgson President of the Ontario Mining Association

othing is more sacred in the mining industry than the principle that at the end of each and every shift, the men and women who are miners go home safely and soundly to their family and friends. In Ontario, mine sector productivity and output have been increasing while safety performance has been improving. This positive trend is being achieved through collaboration and cooperation amongst industry, labour and government. The recent launch of the comprehensive mining safety review by Ontario Labour Minister Yasir Naqvi is the next

54 | Canadian Mining Journal • February/March 2014

logical step in the ongoing process to improve the health and well-being of mineral industry employees and reach the goal of zero harm. Chief Prevention Officer George Gritziotis is leading an advisory panel of industry, labour and health and safety representatives to carry out this evidence-based review. “It is about outcomes, responsiveness and comprehensiveness,” said Mr. Gritziotis. “It is about having a positive impact on the workplace as soon as possible, whether through regulation, mandatory training or best practices.” This collaborative review follows up on recommendations contained in the www.canadianminingjournal.com

Remote and hostile environments are often the conditions in which many of Ontario’s miners find themselves working. Regardless of where they are in the province, however, today’s miners say: “It’s always safety first.”

report on safety from the Dean expert panel. Mining is one of the safest industries in the province and it has demonstrated steady and significant improvement in safety performance for years. The journey to eliminate injuries in the industry began decades ago. This review can help sustain that improvement and assist the sector to be better prepared for future growth and innovations. While the lessons learned from this review will clearly benefit mine safety, it is expected that some aspects will be transferable and adaptable to other industrial sectors, which are striving to improve their safety records. Best practices and good ideas will be shared and the Prevention Office is the right mechanism to deliver this information.

The expertise on the mining health and safety review panel is outstanding. Reporting to Mr. Gritziotis are Fergus Kerr as industry co-chair and John Perquin as labour co-chair. Joining the team are Roger Emdin, Manager of Sustainable Development for Glencore’s Sudbury Operations, and Mike Bond, Chair of USW/Vale Safety, Health and Environment Executive Committee. Further safety expertise on the panel will be provided by Candys Ballanger-Michaud, Executive Director of Workplace Safety North, and Dr. Cameron Mustard, President and Senior Scientist at the Institute for Work & Health. Wendy Fram from Mines Inquiry Needs Everyone’s Support is an observer to the advisory panel. The 12-month review is to focus on new technology, training

and ground stability. Other activities will involve assessing the effectiveness of health and safety regulations, exploring the use of barricades and warning systems and examining past mining related coroner’s jury reports and inquiries. Ontario’s mining industry has improved its safety performance by 96% from 1976 to 2012 based on lost time injury statistics. With the guidance provided by the Royal Commission Reports of Ham in 1976 and Burkett in 1981, the industry increased its focus on ensuring that workers receive the best training available. In 1979, mandatory safety and training through a Common Core program was provided for underground workers. Since then, the Common Core has expanded and been improved to include supervisors, surface mining, mill and smelter operations and diamond drilling as well as numerous specialty modules. According to an economic study by the University of Toronto – Mining: Dynamic and Dependable for Ontario’s Future – the mining industry in this province invests $1,800 per employee annually in training and health and safety initiatives. This sizeable year-in and year-out investment provides constructive actions to support achieving safety yardsticks. Preliminary numbers for 2013 show the mining sector in Ontario with a lost time frequency of 0.4 per 200,000 hours worked, which marks an improvement from 0.5 in 2012 and 0.6 in 2011. Comparative lost time injury frequencies for mining in this province are 3 in 1991 and 1.3 in 2001. Overall, employees in the Ontario mining industry are safe, highly skilled, highly paid and highly productive. While the safety performance of Ontario’s mining industry is certainly worthy of recognition, no one in the industry would consider it good enough until it reaches zero harm. Collective efforts on many fronts involving employers, workers, unions, safety agencies, such as Workplace Safety North and the Prevention Council, and government are being taken to reach that ideal. This safety review is a welcome and additional measure to help guide the industry on the continuing path of safety improvement and to help the industry collectively achieve that goal of zero harm. CMJ

February/March 2014 • Canadian Mining Journal |

| Mining in Ontario

MINERS By Dr. Bruce C. Jago, P.Geo Franco Nevada Executive Director Goodman School of Mines Laurentian University Sudbury, Ontario

esource-based industries are on the cusp of reaping the immense benefits of a revolution in mining education. For decades, the liberal arts educational model—defined by broad spectrum learning—prevailed within many colleges and universities. It was seen as the best way to provide students with a wider, less vocationally centered perspective on society. Later, as views on the purpose of higher education changed, the balance tipped towards training focused on well-defined career paths or professions. Today, it is being recognized that neither paradigm alone can meet the needs of an evolving mining industry with new

56 | Canadian Mining Journal • February/March 2014

operational standards. I have often heard from industry colleagues about the need to broaden the educational base of university and college graduates so they are trained to respond in equal measure to both social demands and the technical demands of their chosen professions. To operate successfully, mining companies must show strong commitment to responsible, safe, sustainable and culturally informed development. The social licence to mine must be earned—a complex process that can change from town to town amongst isolated communities in increasingly remote regions. Industry is looking for employees with multi-disciplinary talents in areas as diverse as geology, engineering, leadership, management, business, www.canadianminingjournal.com

at Laurentian and in Sudbury for more than 25 years. The fulfillment of this vision will result in the graduation of top-quality students who will be instrumental in filling a looming workforce shortage, estimated to be between 60,000 to 140,000 people by 2020.

Laurentian is the only Canadian university located in a major mining camp. As such, GSM students and researchers have unparalleled access to a living laboratory with some of the most interesting eco-systems and richly endowed economic geology in the world. Its Earth Sciences, Engineering and Environmental degrees are recognized as being among the top educational programs of their type in Canada and are supported by world-class research centres such as the Centre for Excellence in Mining Innovation, the Mineral Exploration Research Centre, the Vale Living with Lakes Centre and government offices including the Ministry of Northern Development and Mines, the Ontario Geological Survey and GeoLabs. The GSM works collaboratively within disciplines that define mining cycle activities, such as Earth Science, Engineering, Management/Commerce, Environmental Science/Ecology, Indigenous Studies, Occupational Health and Safety, and Northern Development.

One of the Goodman School of Mines’ many instructors rolls up his sleeves to get involved with a classroom full of students on the road to making mining their future.

anthropology, restorative ecology and occupational health and safety. To answer some of the mining industry’s demands for individuals with the aforementioned talents, Laurentian University’s Goodman School of Mines (GSM), located in the City of Greater Sudbury, one of the richer mining districts in North America, is working to develop hybrid educational models that will be used to train a new class of mining professionals. The GSM was officially launched in late 2012 with the support of benefactor Ned Goodman, one of Canada’s most renowned mining financiers. His vision for the GSM—to create a globally recognized site of educational excellence where students are taught the entire mining cycle—is one that has been discussed

February/March 2014 • Canadian Mining Journal |

| Mining in Ontario

Laurentian University in Sudbury is home to the Goodman School of Mines.

With an understanding of what’s required to work in the mining industry, our principal mandates are to: • Enhance and broaden the skills of undergraduates, graduates and returning professionals by driving the creation of interdisciplinary programs, workshops and modular courses. • Generally improve the university experience for students in mining-related programs. • Make connections with industry and community partners to provide industry-relevant programming and connect students with industry through industry-sponsored events. • Formalize new provincial, national and international alliances to develop an international network of schools of mines with Laurentian as a major hub. Four major budgetary line-items, which benefit all mining-cycle programs, fund: • Development of course majors, interdisciplinary minors, modular executive courses and workshops including development of video conferencing facilities to engage students and professionals at remote locations. • Scholarships, fellowships and awards that recognize the importance of research and academic excellence. • Financial support for internships and international field trips, field schools and conferences. • Equipment purchases and facilities up-grades. In our first year, GSM created four interdisciplinary minors (pending committee review), and engaged in advanced planning to develop modular executive courses in Resource Estimation, Exploration Targeting, Extractive Metallurgy and Bioremediation of Metal-Contaminated Sites. Discussions were also held regarding the eventual creation of a Mining MBA as well as a Mining Business Competition. The school’s current branding slogan—Bold. Ambitious. Driven—is indicative of both the GSM’s progress to date and its future aspirations. We want to be the best. As we continue to grow in expertise, and with industry support and collaborative partnerships, we will achieve this ambitious goal. We are perfectly placed to do it. CMJ To learn more about the Goodman School of Mines, Laurentian’s mining-related programming, diverse career opportunities and the workshops, minors and executive modular programs planned for 2014, click the following link: http://laurentian.ca/search/site/ content/goodman-school-of-mines. 58 | Canadian Mining Journal • February/March 2014

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| A look at some OMA members

ACCULINK FENCE & WIRE

Ontario Mining Association member Acculink Fence & Wire may have built a solid business on the old premise that good fences make good neighbours but it is also helping make mines safer. The company, which started in 1969, has more recently moved into producing mining mesh, screening and specialty wire products for underground mining. The screening made by Acculink is an integral part of the ground control systems and safety practices of many underground operations. Christina Marra, Director of Purchasing and Sales for Acculink, points out that the company started making mesh to assist with ground control in mines by responding to a request from a Quebec-based mine contractor who is a regular customer. Acculink, which is the manufacturing division of Roma Fence, employs about 50 people at its exceptionally clean and well-organized facility in Bolton, northwest of Toronto. Ms Marra points out that about 30% of Acculink’s products are used by Roma Fence, which is involved in the residential, commercial

AGNICO EAGLE

With its headquarters in Toronto, OMA member Agnico Eagle has re-crafted its logo to reflect its flight path as a global gold producer. The company has its roots in Agnico Mines, which was created by Canadian Mining Hall of Fame inductee Paul Penna in 1957 through the consolidation of silver interests in the Cobalt area. In 1972, Agnico Mines merged with Eagle Gold Mines, which had prospects in northwestern Quebec, to become Agnico Eagle Mines Limited. From a modest start with precious metals production and development in Ontario and Quebec, the company has matured into a global mining company. In 2012, it produced about 1,043,000 ounces of gold and 4.7 million ounces of silver from properties in Canada, Mexico and Finland. From 2008 to 2011, Agnico Eagle developed five new mines and increased its gold production by more than 325%. The Kittila mine in northern Finland is 900 kilometres north of Helsinki and 150 kilometres north of the Arctic Circle. It 60 | Canadian Mining Journal • February/March 2014

and institutional fence installation and retail business. The Roma group has about 120 employees. “We sell perimeter fencing, high security fencing, equine and farm fencing for rural applications and decorative fencing,” adds Ms Marra. The company also produces automated entry systems, concrete fencing and sound barriers, which separate busy thoroughfares from residential areas. This family run business, which was started by company President Tony Marra, has grown into Ontario’s largest fencing company. It maintains several business locations in the province. Acculink is a member of the Canadian Fence Industry Association, Toronto Construction Association, Landscape Ontario, Building Industry and Land Development Association, Ontario Regional Common Ground Alliance and the OMA. It is also a company giving back to the community. Recently, it entered into a multi-year agreement to provide an Acculink scholarship to students in the Earth Science program at the University of Western Ontario. It is specifically targeted to students studying mining and mineral exploration courses. Acculink supports many local charitable and social organizations and it has a special relationship with the Thalassemia Foundation of Canada. Mining companies and mine suppliers like Acculink are responsible, solution-providing partners in society. They do more than help produce and process minerals essential to our modern lifestyle. They volunteer and add great value to the quality of life in their communities and beyond. CMJ started production in 2009 and became the first mine Agnico Eagle opened outside of Canada. Pinos Altos in Mexico started commercial production in the fall of 2009 and is now a major gold and silver producer. In Canada, the LaRonde property is Quebec is billed as the company’s flagship with a current mine life stretching to 2026. It has produced more than 4.3 million ounces of gold since opening in 1988. The company’s largest annual gold producer is the open pit Meadowbank gold mine in Nunavut. Production began here in 2010 and in 2013 anticipated production is 360,000 ounces of gold. So maybe this soaring flight on production charts upward warrants a new corporate logo stronger than the old stylized letters AEM. “Our new look goes far beyond just a symbol. It really is a reflection of our true identity,” said Sean Boyd, Agnico Eagle President and Chief Executive Officer. “Our brand is not what you see on paper – it is our people and the core values we believe in. We have kept the eagle as our defining symbol because it reflects the pride we have in our heritage and our enthusiasm for the future,” he added. It is no coincidence that our eagle is moving forward and in full flight.” And Agnico Eagle is putting significant investments into the ground to stay on this flight path. The company’s exploration budget for 2013 is $92 million with about 60% of that total dedicated to mine site and advanced project exploration. The company has geologists based in Canada, the United States, Mexico and Finland who are involved in 86 projects covering more than 4,000 square kilometres of land worldwide. CMJ www.canadianminingjournal.com

ST. ANDREWS GOLDFIELDS St Andrew Goldfields continued to make progress on its Taylor advanced exploration gold project about 50 kilometres east of Timmins. A 8,500 tonne bulk sample from the Taylor project yielded 686 ounces of gold, which contributed to the 25,353 ounces of gold St Andrew Goldfields produced in the second quarter from its three operations. The company has advised that gold production from its Holt, Holloway and Hislop mines (“H3” cubed) is expected to be between 95,000 ounces and 105,000 ounces of gold in 2013. “Our second quarter results remain strong with production at the 25,000 ounce level,” said Jacques Perron, President and Chief Executive Officer of St Andrew Goldfields. “With just under 50,000 ounces of gold produced in the first half of the year, we are on track with our plan and well positioned to meet our 2013

guidance. We remain focused on reducing costs and maintaining our strong cash position.” Along with its three producing operations, the company holds an extensive land position east of Timmins, within the Abitibi greenstone belt, which is one of the most important historic gold mining districts in Canada. Along with the Taylor advanced exploration project, it is conducting a broad mineral exploration program across its properties straddling the Porcupine-Destor fault zone. St Andrew Goldfields is targeting a production level in 2014 of 120,000 to 130,000 ounces of gold. Historic gold production from the Timmins to Val d’Or corridor is in the range of 180 million ounces of gold. Current proven and probably mineral reserves for St Andrew Goldfields contain more than 735,000 ounces of gold. Along with a long track record as gold producer, St Andrew Goldfields has been a leading and creative supporter of the Ontario Mining Association’s So You Think You Know Mining high school video competition. This year, the company offered Ontario high school students of any St Andrew Goldfields employee who produced a film and entered SYTYKM eligibility for a $250 cash prize from a random draw. CMJ

BRIGUS GOLD

While the price of gold has slid recently, this doesn’t mean that precious metals explorers and developers have been operating in a holding pattern waiting for a price rebound. Companies have been making adjustments, striving to control costs, advancing projects and building reserves. They know vagaries of gold price movements can be volatile both in going up and tumbling down. The second quarter of 2013 saw a 13% decrease in average gold prices to US$1,414 per ounce. This marks the largest quarterly decline in gold prices since 1980. During that period, Brigus Gold stayed on course for its exploration program, announcing increases in the quantity and quality of its ore reserves, and production targets. The company recently updated the resource estimated of its Grey Fox discovery, which was first identified in December 2011. It announced a 31% increase in open pit indicated grade and a 14% improvement in its underground indicated grade. This increase in ounces of gold in the ground enhances the prospects of future production. “This new resource estimate is an important milestone for Brigus and our growth plans for the Black Fox Mining Camp,” said Wade Dawe, Brigus Gold’s Chairman and Chief Executive Officer. “The potential for future economic extraction in both open pit and underground development remains strong.” Precious metal production from the Black Fox mine and mill continued on pace. During the first quarter of 2013, 26,316 ounces of gold were produced and half year production of gold was announced at 49,620 ounces.

“The second quarter production of 23,304 ounces of gold is a positive accomplishment for the Company,” said Daniel Racine, Brigus Gold’s President and Chief Operating Officer. “Despite the temporary suspension of milling activities during this quarter the Company is on track to meet its original guidance of 90,000 to 100,000 ounces of gold in 2013.” Along with the Black Fox Timmins area production and exploration property, Brigus Gold is evaluating its Goldfields project near Uranium City in northern Saskatchewan. Black Fox is situated 75 kilometres east of Timmins and 11 kilometres east of Matheson. Brigus also has a gold project in Mexico. CMJ February/March 2014 • Canadian Mining Journal |

| A look at some OMA members

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HARTE GOLD Unlike many other gold miners who held back and watched helplessly as gold dropped dramatically in the second quarter of 2013, Harte Gold continued to advance its Sugar Zone property, located near White River 60 kilometres east of the Hemlo gold belt, towards becoming a producing mine. The company was able

LAKE SHORE GOLD OMA member Lake Shore Gold Corp. exemplifies findings in the recent economic impact study: “Mining: Dependable and Dynamic for Ontario’s Future.” This report, which demonstrates among other things that mining boosts communities, was produced by University of Toronto economists Peter Dungan and Steve Murphy. Lake Shore Gold produced more than 85,700 ounces of gold in 2012 and it is a newer bullion producer in the Timmins camp – production began two years ago. The company operates its Timmins West complex and Bell Creek complex, where its mill is located, and it is developing the Fenn-Gib project, which is located about 60 kilometres east of Timmins. The Fenn-Gib project has potential to be developed as an open pit gold mine. Exploration results from the property near Matheson show an indicated resource of 1.3 million ounces of gold and 800,000 inferred ounces of gold. In 2012, the company spent $138.5 million on supplies and services in Timmins and a further $90 million was spent outside the Timmins area. “We are really trying to keep our dollars as close to Timmins as we possibly can,” said Dan Gagnon, Senior 62 | Canadian Mining Journal • February/March 2014

www.canadianminingjournal.com

to announce recently significant progress made on its Sugar Zone property during the second quarter of 2013. “The goal of Harte Gold’s optimization efforts is to generate project efficiencies, accelerate project timelines and slow both up-front and overall project costs,” said Stephen G. Roman, President and Chief Operating Officer of Harte Gold. “The Sugar Zone deposit is a high grade gold deposit with significant potential along strike and at depth. ”Mineral exploration drill results indicate the Sugar Zone has an indicated resource of 275,000 ounces with a further 131,300 ounces of gold inferred. Bulk sampling is scheduled to be completed in early 2015. The Ontario Ministry of Natural Resources has completed its environmental assessment of the advanced exploration and bulk sampling program and all permits are in place to proceed with site development work. The Ontario Ministry of Environment has completed its environmental assessment work. The site’s closure plan has been approved. Harte Gold also has in place an agreement to have its bulk sample from the Sugar Zone processed at Richmont Mines’ Island Gold Mill. The company is ready to proceed with construction of an access road connecting the site to provincial Highway #631.The company signed an exploration agreement with the Pic Mobert First Nation in 2011. This provides a framework for cooperation throughout the advanced exploration stage of the property’s development. Once commercial production of gold begins from the property, the company and the First Nation will work to develop an Impact Benefit Agreement. Harte Gold also holds the Stoughton-Abitibi gold property, which is located east of Timmins. CMJ

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Vice President Operations at Lake Shore Gold. “Sixty-one percent of our spending was in Timmins and of the non-local spending of $90 million, roughly $53 million was spent in Northern Ontario.” It is this type of spending that supports Timmins’ mine supply and service sector, which is estimated to have a value of more than $590 million annually and employs about 4,600 people. Lake Shore Gold is aiming to increase its production to between 120,000 and 135,000 ounces of gold in 2013 and 2014. The company expects to spend about $169 million at Timmins West and the Bell Creek mine and mill this year. Also in 2013, it will be investing about $10 million in mineral exploration activities, about the same amount as in 2012. “We have a full pipeline of attractive projects and properties to drive future growth,” said Mr. Gagnon. Lake Shore Gold is a major employer in the Timmins region. It has more than 500 full time employees of its own and for mine development, mill expansion and other infrastructure work, there are about 300 contractors working at company sites. Mr. Gagnon says one of his main focuses is to ensure that workplace safety is integrated into all aspects of the company’s operations. “My commitment to the families and to the people is really on safety,” said Mr. Gagnon. “Economic success is one thing but it doesn’t count if people are not working safely.” Lake Shore Gold was formed in 2002 as an explorer for gold and base metals in the Canadian Shield. It became a gold producer in 2011. CMJ

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February/March 2014 • Canadian Mining Journal |

| Products VERSATILE STRUCTURES Sprung Structures announces that its versatile structures are the ideal solution for mining companies who require immediate infrastructure in a variety of challenging conditions. The structures can be erected under rigid construction timelines with flexible cost saving foundation requirement options. They are designed to shed snow and are engineered to withstand extreme wind loads. Applications include: On-Site Warehousing and Equipment Storage, Vehicle Maintenance Facilities, Safety Meeting Rooms, Training Facilities, On-Site Dining, Dormitory Housing, Recreational Facilities, Aircraft Hangars, Bulk Storage, Milling Operations, Remote Ore Processing Facilities, Winter Hoarding, Winch and Hoist Housing, Environmental Remediation, Pond Enclosures and Core Sampling Facilities.

HAND PROTECTION Mechanix Wear new ORHD gloves are designed to combat impact injuries and enhance gripping power. Dual density thermal plastic rubber (TPR) safeguards knuckles and metacarpals from forceful impacts, while dual density TPR with dedicated flex points provide critical pinch-point protection to the tip of each finger. Two mm EVA foam lies beneath the hard density TPR to help disperse blows to the top of the hand while the extended slip-on cuff protects the wrist. The palm is reinforced with durable synthetic leather and PVC bonded dots for durable gripping power.

OFF-HIGHWAY TRUCKS The new Cat® 770G and 772G off-highway trucks have been designed with major advancements in emissions technology, transmission and traction control systems; frame, drivetrain, and cooling system enhancements; added operator amenities; and serviceability improvements. Many of the features introduced on larger Cat G Series trucks are being incorporated on the new 770G and 772G models. With nominal rated payload capacities of 40 and 52 tons (36.3 and 47.1 mt), respectively, the new trucks use Cat C15 (770G) and C18 (772G) engines, with net power ratings of 477 (770G) and 550 (772G) horsepower (356 and 410 kW).

BULK VIBRATORS Martin Engineering announces the availability of its bulk material handling systems, screens, shale shakers, and other solids separation equipment through the industry’s first factory-direct vibrator rental program for these applications, helping ensure that customers are protected from surprise repair costs and the associated downtime. Under the new program, all service and maintenance is covered by a monthly flat-fee agreement, with any failed units replaced by the manufacturer at no charge. Rental customers avoid the financial burden and potential production outages from sudden drive failures, instead able to focus employees on core business activities, with Martin Engineering taking responsibility for vibrator upkeep and repairs.

64 | Canadian Mining Journal • February/March 2014

www.canadianminingjournal.com

IMPLICIT MODELLING Maptek’s Vulcan 9 Implicit Modelling now allows users to generate automatic models of complex geological domains from drillhole information. Vulcan implicit models can be analysed and iterated faster than traditional methods, saving users time and providing more reliable results. Vulcan 9 contains performance and display enhancements, as well as new functionality for object attribution, a Locally Varying Anisotropy method, and improvements to underground ring and mine design tools.

THREAD FASTENER Henkel’s Loctite® 204 Threadlocker is a high-strength product designed for large fasteners. It features ,• High lubricity, • Temperature Resistant from -65°F to 300°F , and Fixture/Cure Time 90 min./24 hrs. • Colour: Black

SAFER TORCH Victor Technologies announced that it has launched its Victor ST400 straight torch, which incorporates a new handle that uses a high strength alloy material for durability and features an ergonomic shape to improve operator comfort. The torch’s three-tube design provides a clearer view of the cutting path, while visual cues on the oxygen and fuel knobs simplify use, enhancing safety.

ELECTRIC VEHICLE The latest product from Papa Bravo is its Marmot-EV, an electric vehicle designed specifically for ramp access underground operations. The vehicle is available in a two- passenger, regular cab or a four- passenger crew cab in an open-air or closed cab with heating and air conditioning. The vehicle features 590 ft-lbs of torque with 188 hp and the ability to travel 130 km on a single charge. It can re-charge in under an hour. The AC motor delivers powerful climbing and towing capabilities necessary in the hard rock mining environment; the Marmot is capable of climbing 25% grade continuously for a 3 km rise in elevation at 12 km/hr, carrying a full payload.

OFF-ROAD TRAINING Immersive Technologies’ new simulator module includes a complete replica cab of the Caterpillar 24M Motor Grader, with fully functional controls and instrumentation sourced directly from Caterpillar. The combination dash mounted instrument cluster and the CAT Advisor Messaging System provide key machine operating information and gives the operator insight into the machine’s operation and maintenance needs. The level of training effectiveness and realism is achieved in part through Immersive Technologies’ VirtualGround™ 3.0 which was designed to provide the most realistic material response and visual appearance. These elements are crucial details in support of effective training, up-skilling and assessment of grader operators.

February/March 2014 • Canadian Mining Journal |

| Products UNDERGROUND LOADER Atlas Copco has just introduced its Scooptram ST18, an 18-tonne capacity underground loader for large operations including production mining and development work.The Scooptram ST18 works well with the 60-tonne capacity of the Minetruck MT6020 and completes Atlas Copco’s range of underground loaders in this segment. Scooptram ST18 safety features include an automatic brake test, protection guards, three-point access system, boom lockup, fire suppression systems and a machine protection system that monitors the engine, transmission and hydraulics.

GOOSENECK TRAILER Talbert Manufacturing’s telescopic 55-ton hydraulic removable gooseneck (HRG) trailer offers a 20-inch deck height and the versatility to extend deck length and the flexibility to operate with multiple rear axle configurations. Talbert designed the 55-ton HRG with a telescopic deck capable of extending from 30 to 50 feet long. Extended, the unit has a 27-foot wood deck in the front and a three-foot wood platform in the rear with beams stretching between. The trailer expands and locks in four-foot increments. The HRG features a 96-inch swing radius and a gooseneck extension with a 120-inch swing clearance.

CONVEYOR SYSTEMS Superior Industries says that unlike traditional wing pulleys that trap fugitive material and cause wings to tip or bend, its new Chevron Pulley deflects fugitive material out and away, preventing costly belt damage. Also, with its rounded contact bars, its continuous belt contact reduces beating action and vibration for quiet operation. The company also offers its Navigator Return Trainer idler to maintain proper belt tracking by using the gravity of the belt weight to make the roller shift and thus track the belt.

SCREEN MEDIA Major Wire International’s Flex-Mat 3 High-Performance Screen Media with independently vibrating wires helps eliminate blinding, pegging and clogging in both dry and wet coal screening conditions on screen decks. Available in hooked tensioned panels and on modular frames. Flex-Mat 3 panels have more open area, providing up to 30 per cent more screen capacity than woven wire and up to 50 per cent more screen capacity than polyurethane and rubber panels.

CONE CRUSHER Sandvik Mining now offers the speedy electric dump valve system which is the quickest tramp iron protection system of any cone crusher available on the market. With a hydraulic pressure sampling rate of 200 times per second it has shown to reduce exposure to damaging pressure peaks by over 90%. Validated in tertiary/pebble applications at major mining companies worldwide, it’s available for the current CH870, CH890, CH895 and can be retrofitted on selected previous models.

STATIONARY BOOM Breaker Technology (BTI) announces the availability of its 5th generation NT-E Series Rockbreaker stationary hydraulic boom system, which comes with the newly engineered PP60 Power Pack. The NT-E is loaded with innovative features such as robust connections, improved pedestal mounting and common cylinder sizes. This allows for reduced spare parts inventory combined with enhanced coverage and a larger breaker capability. The PP60 Power Pack comes standard with a 60L reservoir, continuous oil circulation, oil level sight glass, temperature gauge, pressurized filter cap, pressure filter and starter panel mounting.

66 | Canadian Mining Journal • February/March 2014

www.canadianminingjournal.com

E Q U I P M E N T M A I N T E N A N C E & R E PA I R Bent, Bruised, But not Broken

Those words describe just about every piece of heavy equipment in use today. In fact, any machine that isn’t “bent” or “bruised” a little probably isn’t a working machine because more than likely, it’s “broken!” And that’s bad for business. As every owner and operator knows, downtime can put them out of business and for that reason, Equipment, Maintenance & Repair (EM&R) takes a look at what’s available to help prevent equipment failure. Tips on equipment, maintenance and repair, plus the latest in products and services, will be featured in the pages of EM&R. Coming this June, EM&R will provide its readers with a ‘new’ look at an ‘old’ problem. Contact us now to let the mining industry know how you can help maintain their equipment and machinery’s optimum performance levels.

Advertising closes MAy 5. MAteriAl due MAy 12.

Readership: 25,000**

Canadian Mining Journal

www.canadianminingjournal.com

averages 28,250 unique visitors each month.***

You can view our media kit at: www.canadianminingjournal.com/mediakit AAM Audited Circulation: 10,123* – the only Audited mining publication in Canada. * June 2013 AAM Audit Statement ** Statistics based on responses to our July 2013 readership survey *** Google Analytics October 2013

EquipmEnt maintEnancE & REpaiR a 16 page centre-spread supplement bound within the June/July edition of

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PleAse contAct: Robert Seagraves rseagraves@canadianminingjournal.com 1-416-510-6891

Bonnie Rondeau brondeau@canadianminingjournal.com – 1-416-510-5245 Toll Free Canada: 1-800-268-7742 extension 6891 or 5245 U.S. Toll Free: 1-800-387-0273 extension 6891 or 5245

| Modern Technology

KEEPING IN

TOUCH WHAT YOU NEED TO KNOW TO MANAGE AN INTERNET NETWORK IN A MINE CAMP.

any mine sites are notorious for causing hardships but the one thing that is perhaps to most aggravating of all is being “disconnected” from society. Cold weather, darkness and rugged terrain are just a few of the ‘bearable’ elements associated with remote mine sites but when it comes to ‘communications,’ keeping in touch with the outside world is paramount in the minds of most miners. In fact, one would almost go so far as to say that a reliable, highspeed internet service is nearly as important as a good camp cook. The demand for a reliable internet service has gone beyond a “luxury” to the point that it’s now considered “essential” to the safe and efficient operation of a mine. And, providing reasonable and acceptable internet to employees has become a key requirement in maintaining good work morale and keeping people in camp. So why is bad internet tolerated at all? Likely the answer is because most camp managers lack the necessary tools or ability to scale the camp’s needs to the bandwidth available. Also, they often don’t have time to deal with it.

SO, WHAT’S THE SOLUTION? Galaxy Broadband Communications Inc., (GBC) of Mississauga, Ontario has one through its SMU (SkyNet Management Unit). It’s a powerful device that is remotely managed and monitored by experts 24/7. Full reporting on traffic use down to the application level is available to camp managers. Also for managers with a C-Band Satellite service who are looking for more speed, GBC says there is now a very costeffective solution they should know about. C Band satellite links have been around since the 1980s and are still the mainstay for data and voice communications for remote mining operations but today, the internet forces faster and faster connections which can put enormous pressure on core systems. Operators face a difficult dilemma; invest many thousands to upgrade internet capacity on site or tolerate the complaints. As mentioned earlier, internet capabilities have an increasing 68 | Canadian Mining Journal • February/March 2014

Galaxy’s Northern Network Coverage.

influence on camp morale and crew welfare and it is critical that operators opt to increase bandwidth. GBC announces an affordable option that should be of particular interest to miners in the northern regions of Yukon, NWT and Nunavut. Through its Ka Band Enterprise Grade Service, the company says its Ka Band offers a bigger “bang for the buck” because of the inherent technology and most importantly, the much smaller dish size. Although Ka band has been around for six or seven years, Galaxy is the first company to use the frequency for a True Enterprise Grade Service. The most important benefit of Ka band is the amount of data that can be packed into the signal.

Coupled with a powerful spot beam, the Galaxy Network has the capability to deliver more bits of data for a lower price. This can dramatically increase speeds plus it can be easily configured in a load sharing arrangement with an inexpensive router. CMJ www.canadianminingjournal.com

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Advertisers Index AEL Mining Services..............................................................23....................... www.aelminingservices.com Banco Base Treasury.............................................................52.............................. www.bancobase.com/en BBA Inc....................................................................................22................................................. www.bba.com Bel-Ray Company Inc.............................................................15.............................................www.belray.com Brandt Engineering.................................................................31............................................... www.brandt.ca Breaker Technologies.............................................................4................................... www.rockbreaker.com Carlo Gavazzi...........................................................................69...............................www.GavazziOnline.com Columbia Steel Casting Co. Inc............................................53...............................www.columbiasteel.com Denison Environmental Service...........................................62................www.denisonenvironmental.com DMC Mining Services............................................................24.................................... www.dmcmining.com Dundee Capital Markets........................................................63................www.dundeecapitalmarkets.com Eco Waste Solutions..............................................................69.................................www.ecosolutions.com Flexco........................................................................................69.............................................www.flexco.com Galaxy Broadband Communications...................................16............................www.galaxybroadband.ca Goldcorp Inc............................................................................71........................................www.goldcorp.com Grieve Corporation.................................................................62.................................... www.grievecorp.com Hard-Line Solutions.................................................................9.........................................www.hard-line.com Henkel Canada Corporation..................................................46.......................... www.henkelna.com/mining Industrial Equipment Mfg. Inc..............................................47.....................................................www.iem.ca Italvibras USA..........................................................................69.................................www.italvibrasusa.com Joy Global................................................................................21......................................www.JoyGlobal.com

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Liquidity Services Inc.............................................................36......................................... www.go-dove.com Luff Industries..........................................................................63................................ www.luffindustries.com Major Drilling Group...............................................................52................................. www.majordrilling.com Metso Minerals.......................................................................49.............................................www.metso.com Motion Industries....................................................................59.............................. www.motioncanada.com Petro Canada Certigard..........................................................2... www.lubricants.petro-canada.ca/mining Polydeck Screen Corporation..............................................44........................... www.polydeckscreen.com PowerFlow Engineering Inc..................................................69...............................................www.pfeinc.net Redpath Mining........................................................................7...............................www.redpathmining.com Rio Tinto Canada Diamond Exploration...............................48........................................... www.riotinto.com Rousseau Metal Inc...............................................................30............................. www.rousseaumetal.com Ruukki Metals .........................................................................35.............................................www.ruukki.com SMS Equipment.......................................................................72.......................................www.smsequip.com Sprung Instant Structures Inc..............................................14.............................. www.sprung.com/mining SRK Consulting........................................................................57.................................................. www.srk.com Stantec Consulting Ltd...........................................................58.......................................... www.stantec.com State of Alaska........................................................................37............................................. www.alaska.gov Target Logistics.......................................................................25................................ www.targetlogistics.net Valard LP..................................................................................45.............................................www.valard.com Worley Parsons.......................................................................17............................. www.worleyparsons.com

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www.GavazziOnline.com Gavazzi@CarloGavazzi.com February/March 2014 • Canadian Mining Journal |

Unearthing Trends

Divesting to reinvest Graeme Deans and Doug Jenkinson are both Partners in EY’s Transaction Advisory Services practice. They are based in Toronto. For more information on EY’s mining and metals practice, or our Global Corporate Divestment Study, visit ey.com/ca.

By Graeme Deans and Doug Jenkinson

cross the mining and metals industry — in Canada and around the world — we’ve seen companies facing capital constraints turn to lower-risk value-creation and growth strategies. Continued economic uncertainty and commodity price volatility has created a breed of new risk-averse investor. Gold prices, for example, fell by more than 28% in 2013, polarizing gold mining companies to either rich buyers or poor sellers. Chief among the considerations companies in search of capital are pursuing is the divestment of non-core or nonstrategic assets. More and more players are viewing these transactions as an opportunity to raise and reinvest capital into areas that lend to the company’s strategic advantage or long-term success — rather than the mark of failure that was once perceived. EY’s Global Corporate Divestment Study shows that 81% of companies across sectors that based divestment decisions on portfolio review experienced a higher valuation multiple after their last divestment. But carving out assets is not without its challenges — on both the buy and sell side. Each party must manage complementary and conflicting priorities to ensure a successful transaction on either side. Seller steer clear The temptation for many companies on the sell side, particularly those struggling in the more recently tumultuous mining industry, is to dispose of the asset as quickly as possible without negotiating the deal aggressively and potentially leaving money on the table. Other common

costly mistakes on the sell side include a lack of executive leadership, inadequate resources (either in numbers or skills), weak coordination or governance policies and failure to acknowledge the complete pool of buyers, anticipate their needs and consider their day-one functionality. Buyer beware Buyers considering acquiring a carvedout asset face a different set of challenges. This side of the transaction often struggles with valuing the assets, performing diligence on the seller’s financial and operating statements, and maintaining and continuously updating their own deal analyses and models. A buyer must also prepare for day one and overall integration — which will likely entail negotiation with the seller for one or many transition service agreements (TSAs). Buyers often rely too heavily on the seller in TSA discussions which conveys advantage to the seller. Capturing value Capturing value in any transaction begins by considering the perspective of both buyer and seller. Both parties share the common goals of preserving value, maintaining credibility, enhancing reputation and minimizing post-closing disputes. Only when companies take the time to consider alternative perspectives can they gain a better understanding of where value can be created and destroyed. It’s that kind of proper due diligence that greatly reduces the chance of surprises interfering with the transaction completion. Important steps can’t be neglected.

70 | Canadian Mining Journal • February/March 2014

COMPANIES CAN MAKE A GOOD DEAL BETTER BY: SELLERS

• Understanding buyers’ motivations • Preparing carve-out financial statements • Being transparent about costs • Considering the impact on the remaining business

BUYERS • Coming to terms with the components of the asset • Assessing up-front and ongoing costs • Making readiness a priority • Focusing on the details of TSAs

The trend towards divestments isn’t set to slow in the year ahead. Mining and metals companies in search of capital are continuing to look closely at their portfolios. Though non-core, easier-toextract assets first made the mark, underperforming, high-cost or highrisk assets are beginning to fill the divestment pipeline in the mining and metals industry as companies seek to remove costs and reinvest capital. Portfolio optimization is an ongoing discipline, however, not a short-term strategy. And knowing the ins and outs of selling and buying carve-outs can become powerful means of managing capital to increase shareholder value. At the end of the day, it’s about creating a stronger competitive advantage in the marketplace. Buyer or seller, the opportunity to capture value is there, if you’re willing to work for it. CMJ www.canadianminingjournal.com

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