Canadian Mining Journal September 2014 by The Northern Miner Group

CANADIAN Mining Journal c

’

www.canadianminingjournal.com

September 2014

MINER WORKS DEPOSIT FOUND BENEATH ISLAND

Ore Processing at Bolivian Gold Mine

The gold standard in chemical process pumps Critical reasons why mining engineers are turning to Iwaki M Series chemical process, magnetic drive pumps featuring leak-free, seal-less technology: • SAFETY – Protects workers from potentially harmful chemical spills due to pumps with leaking mechanical seals • SAVINGS – Eliminates downtime and frequent repair due to leaking seals • RUGGEDLY BUILT – Ductile cast iron housing for superior durability in harsh environments • TOUGH INTERIOR – corrosive chemicals • ENVIRONMENTALLY SMART – Protects environment against noxious chemicals and avoids the clean-up costs resulting from spills applications, along with the reliability that has earned Iwaki a rock solid reputation for over 55 years.

MAGNETIC COUPLING

MXM Series 1/2 to 5 HP Maximum Flow – 160 GPM (606 LPM)

MDM Series 3 to 25 HP Maximum Flow – 350 GPM (1,325 LPM)

IWAKI MAGNETIC DRIVE PUMP TECHNOLOGY Magnetic coupling eliminates the need for mechanical seals which require frequent replacement due to failure.

MDW Series 30 to 100 HP Maximum Flow – 1,320 GPM (4,997 LPM)

For more information: 508-429-1440 • www.iwakiamerica.com/mining.htm

THE CHEMICAL PUMP SPECIALISTS

Departments 5 Editorial

This month Editor Russell Noble talks about the recent tailings dam disaster at the Mount Polley mine in British Columbia.

CANADIAN Mining Journal CONTENTS

6 Investing

Columnist Ned Goodman says: “Fasten your belts, the volatility of the stock market might soon make it subject of a negative shake-up.”

8 Law

Norton Rose Fulbright Canada’s Pierre-Christian Labeau looks at aboriginal rights and two new court cases.

GOLD IN CANADA 10 Richmont Mines develops a gold property located under an island near Wawa, Ontario.

32 Technology

How one company has drastically reduced the number of fuel tanks on site by replacing steel barrels with soft-sided tanks.

34 Products

The latest products and services available to the Canadian mining industry.

36 In My Mine(d)

Lawyers from the firm of Stikeman Elliot pose questions and provide answers to help better understand the Supreme Court’s recent ruling on aboriginal titles.

38 Unearthing Trends

A regular column by Ernst & Young LLP, Vancouver.

Goldcorp is kept busy with three mines set to go into production before the end of the year.

Ressources Appalaches pours first gold from its revived Dufferin Mine in Nova Scotia.

CANADIAN Mining Journal c

’

www.canadianminingjournal.com

September 2014

ABOUT THE COVER This month’s cover shows underground work at Richmont Mines’ Island Gold Mine near Wawa, Ontario.

Canada Post Canadian Publications Mail Sales Product Agreement No. 40069240

MINER WORKS DEPOSIT FOUND BENEATH ISLAND

Coming in October CMJ2014_Sept.indd 1

2014-08-20 11:20 AM

Mining in Quebec will be theme of the issue. Also, a special 16-page section on Equipment Maintenance and Repair.

Seabridge Gold’s KSM project is claimed to be the world’s largest undeveloped gold/ copper project by reserves.

For More Information

Please visit www.canadianminingjournal.com for regular updates on what's happening with Canadian mining companies and their personnel both here and abroad. A digital version of the magazine is also available at www.digital.canadianminingjournal.com

www.canadianminingjournal.com September 2014 • Canadian Mining Journal |

WE ARE SO CONFIDENT YOU WILL LOVE SF-100 YOUR FIRST FILL IS ON US! *

When the pressure to perform is on, more mining operations trust Bel-Ray lubricants. Bel-Ray creates lubricants to meet user-specific needs—lubricants that reduce wear, extend component life and withstand the extreme demands of mining. Plus, Bel-Ray oils and greases are packaged in globally compliant, multi-lingual labeling—an industry first from the leader in specialty lubricants. If you’re thirsty for maximum performance and efficiency, Bel-Ray is your thirst quencher.

SEE THE ENTIRE LINE OF BEL-Ray PRODUCTS aT BELRay.COM. *Qualifying customers who fully covert to Molylube® SF-100 Open Gear Lubricant may be entitled to four free 208 L drums of Molylube® SF-100 Open Gear Lubricant.

FLEX YOUR OPERATION

C O N Ta C T C U S T O M E R S E R V I C E @ B E L R ay. C O M

Editorial

CANADIAN Mining Journal September 2014 Vol. 135 — No. 7 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 Circulation Manager Cindi Holder 416 442-5600, ext. 3544 cholder@bizinfogroup.ca Publisher Robert Seagraves 416 510-6891 rseagraves@canadianminingjournal.com Sales Western Canada, Western U.S.A.

Bonnie Rondeau 416-510-5245 brondeau@canadianminingjournal.com Toll Free Canada: 1-800-268-7742 ext 6891 or 5245 Toll Free USA: 1-800-387-0273 ext 6891 or 5245 Group Publisher Anthony Vaccaro President Bruce Creighton

Vice-president Alex Papanou

Established 1882 Canadian Mining Journal provides articles and information of practical use to those who work in the technical, administrative and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry. Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by Business Information Group L.P. BIG is located at 80 Valleybrook Dr., Toronto, ON, M3B 2S9. Phone (416) 442-5600. 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 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 obtain the permission of the owner of the copyright. For further information please contact Russell Noble at 416-510-6742. Subscriptions — Canada: $47.95 per year; $76.95 for two years. USA: US$60.95 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. GST registration # 809744071RT001. 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 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; E-mail: privacy officer@businessinformationgroup.ca; Mail to: Privacy Officer, Business Information Group, 80 Valleybrook Dr., Toronto, ON, M3B 2S9. Publications Mail Agreement #40069240. PAP Registration No. 11000. We acknowledge the financial support of the Government of Canada through the Publication Assistance Program towards our mailing costs. Return undeliverable Canadian addresses to: Circulation Dept., Canadian Mining Journal, 80 Valleybrook Dr., Toronto, ON, M3B 2S9. E-mail: bigcirculation@bizinfogroup.ca Canada Post: Publications Mail Agreement PM40069240. Please forward Forms 29B and 67B to 80,Valleybrook, Toronto, ON M3B 2S9. Canadian Mining Journal, USPS 752-250. US office of publication: 2221 Niagara Falls Blvd., Niagara Falls, NY 14304-5709. Periodicals Postage Paid at Niagara Falls, NY. US postmaster: Send address changes to Canadian Mining Journal, PO Box 1118, Niagara Falls NY 14304. We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs.

A remote mess for all to see Photo courtesy of Cariboo Regional District.

By Russell Noble

here’s probably not a mine owner or operator in Canada, or around the world for that matter, who doesn’t feel for the people at Imperial Metals of Vancouver after last month’s disaster involving the failure of a tailings pond at its Mount Polley mine near Likely, B.C. One can only imagine the feeling that company President Brian Kynoch got when answering that phone call from the mine and hearing what just happened. As every miner knows, a mine becomes their baby because of the time and effort put into watching it grow from infancy to maturity. Growing pains are an understatement when describing many of the challenges and hardships that miners must face when developing a mine and to have something happen like what just hit the people at Imperial Metals must feel like the death of a child. And sadly, this particular death won’t be put to rest in a matter of days like you would with a human being. The breach of that tailings pond will live on and fester in the minds, and on the books as they already have with company’s stock value, because of what damage those billions of gallons of tainted water did to their immediate surroundings. Initially the damage was obvious as the above photo clearly shows some of what the torrents of water did as they ripped through the countryside, but it’s down the road when the dust settles, so to speak, that the date (Monday, August 4, 2014), will raise its ugly head time and time again in court documents as teams of lawyers remind everyone of what happened at Mount Polley that day. There will be no getting away from the fact that someone, and more likely dozens, will have court dates and regardless of who designed the pond, or who built it, or who managed and maintained it, the fault will

ultimately be that of the people whose name is on the front gate. At least that’s what the residents of Likely will conclude. In fairness to Imperial Metals Inc., however, it’s not necessarily a factual conclusion because the company does have a pretty solid reputation of being a caring, complying, and socially conscious mining company but nevertheless, they are involved with this disaster up to their necks and as I alluded to earlier, will be for years to come. And what’s even more concerning is what ‘unknowns’ will emerge in the future that will be blamed on the disaster of Monday, August 4, 2014? It’s a perfect “I told you so” scenario for those opposed to mining and I’m afraid what happened last month in central B.C. will only fan the flames higher and serve as more fuel for activists who are increasingly bent on making mining look bad. I can’t argue that fact at the moment because quite honestly, I’ve seen some nasty-looking tailings ponds in my travels and I’ve often wondered (and worried) what damage would be caused should a breach occur? From what’s on the table so far, the Mount Polley tailings pond was not a ‘nasty’ pond as I just said but nevertheless, it broke and there’s a lot of fixin’ to do and I’m sure those at Imperial Metals are still sick over what happened and like the death of a child, they’ll never forget the date and time when it happened. They say that time heals pain but for all of us who have lost loved ones, we know that time only lessens it and that’s about all of the condolences I can give to Imperial Metals Inc. and all others affected by what happened on Monday, August 4, 2014. It was a sad day for Imperial Metals but an even sadder one for mining and the environment. CMJ

Canadian Business Press Indexed by Canadian Business Periodicals Index

September 2014 • Canadian Mining Journal |

Investing

Stock market is possibly in for a negative shake-up

Ned Goodman is President and Chief Executive Officer of Dundee Corporation

By Ned Goodman

he recent issue of the Bank Credit Analyst (BCA) tells us to “Beware The Derivative” because the end of the deleveraging cycle by central bankers could weigh on the growth of the economy. Their assessment is that the easing in the deleveraging pressures will create a falling savings rate, the easing of bank lending standards, a rebound in cyclical spending and, of course, those rising asset prices. These are the forces that have boosted recent U.S. growth but BCA says that once the deleveraging cycle ends, that source of support will end and will get in the way of the Federal Reserve’s wishes to raise interest rates off the zero mark. They also say that “the Fed has misjudged the amount of economic slack,” which I think is so, and therefore the output gap is really bigger than is thought. In my opinion, the Fed has underestimated the optimum amount of spare capacity in the U.S. economy and is looking the other way on inflation, blaming “noise.” Getting away from the BCA, Richard Fisher, President of the Federal Reserve Bank of Dallas wrote a Wall Street Journal article that sent a warning to complacent investors that the U.S. Fed cannot keep interest rates near zero indefinitely. His article opened with a single sentence paragraph: 6 | Canadian Mining Journal • September 2014

“I have grown increasingly concerned about the risks posed by the current monetary policy.” In my view, that is a strong statement meant to get the attention of investors and businesses impacted by interest rates. Fisher also followed up with, I quote: “I believe we are at risk of doing what the Fed has too often done, overstaying our welcome by staying too loose, too long.” We all know that lower interest rates encourage more risk taking. These statements from Fisher follow a recent previous statement from the Bank for International Settlements (BIS) in its 84th annual report, where it called out central bankers for creating a completely artificial market (my Botox economy and market). It noted that, “It is hard to avoid the sense of puzzling disconnect between the market’s buoyancy and underlying economic developments globally.” The BIS added that, “instead of adding to production capacity, large firms prefer to buy back shares or engage in mergers and acquisitions. And despite lacklustre long-term growth prospects, debt continues to rise. It will be difficult to ensure a smooth normalization,” and that, “the predominant risk is that central banks will find themselves behind the curve, exiting too late or too slowly.” So, fasten your belts! The low rate, low volatility stock market that has made

many on Wall Street and Bay Street fat and happy might soon be in a negative shake-up. CMJ

DRAWING ENERGY FROM THE SOURCE Thunder Bay 807-625-6700 Timmins 705-264-9413 Sudbury 705-674-0119 Val d’Or 819-825-4711

www.wspgroup.com/canada

www.canadianminingjournal.com

WHAT WE DO IS GROUNDBREAKING BECAUSE WHAT YOU DO IS BACKBREAKING. With best-in-class capabilities across the board, the all-new 2015 Super Duty delivers the power, towing and efciency your job demands. So no matter what you put it through, you can count on Canada’s best-selling work truck† to pull through. BEST-IN-CLASS:* 31,200 LBS. MAX. TOWING | 860 LB-FT OF TORQUE | 440 HORSEPOWER | DIESEL FUEL EFFICIENCY

Vehicle may be shown with optional equipment. *Class is Full-Size Pickups over 8,500 lbs. GVWR vs. 2014/2015 competitors. F-250/F-350 with available 6.7L Power Stroke® V8 diesel engine. Maximum towing capacity of 31,200 lbs., when properly Size Pickups over 3,856 kg (8,500 lbs) GVWR. Based on Ford simulated city-suburban drive-cycle tests of comparably equipped SAE Standard J1321. Actual fuel consumption will vary. †Based on IHS Automotive: Polk Canadian Total New Registration data ©2014 Ford Motor Company of Canada, Limited. All rights reserved.

FORD.CA

Max. horsepower of 440 and max. torque of 860 lb-ft on 2015 equipped. Best-in-class diesel fuel consumption: Class is Full2015 Ford and 2011–2013 competitive models, consistent with for vehicles over 8000 lbs. for January 2013 – February 2014.

Law

Aboriginal rights: two new court cases Pierre-Christian Labeau is a partner at Norton Rose Fulbright and chair of its aboriginal law team.

By Pierre-Christian Labeau

ver the past ten years, the law of aboriginal rights has been evolving at an astonishing pace. Two recent Supreme Court of Canada decisions have clarified important elements of the legal framework applicable to aboriginal rights. These decisions are likely to have a substantial impact on the mining industry in Canada in the near and long term. Aboriginal title: Tsilhqot’in Nation v British Columbia In the first decision, the Supreme Court recognized for the first time that an aboriginal group, the Tsilhqot’in Nation of British Columbia, has title to a large tract of its ancestral lands. This decision is of considerable significance in provinces where aboriginal rights have not been settled by treaty, including British Columbia and Quebec. THE COURT IDENTIFIED THREE REQUIREMENTS TO GROUND ABORIGINAL TITLE:

• s ufficiency of occupation prior to the assertion of European sovereignty • c ontinuous occupation (where present occupation is relied upon) • exclusive occupation The Court explained that aboriginal title confers ownership rights similar to those associated with fee simple ownership: a right to possess the land; a right to the economic benefits of the land; and a right to proactively use and manage the land. Title is held for both present and succeeding generations, which means that the land concerned cannot be developed in a way that would deprive future generations of the benefit of the land. According to the Supreme Court, the 8 | Canadian Mining Journal • September 2014

right to control the land conferred by aboriginal title means that a government seeking to use the land must obtain the consent of the aboriginal title holders. If such consent is not obtained, a government that still wishes to authorize a mining project must establish that it has discharged its procedural duty to consult and accommodate the aboriginal title holders. It will also have to justify any incursion by showing that its actions are for a compelling and substantial objective and that they are consistent with the fiduciary obligation owed by the Crown to the aboriginal group. Failing consent by the aboriginal group, the project may not proceed if the government has not discharged its duty to consult and cannot justify the infringement of aboriginal title. Treaties entered into with aboriginal peoples: Grassy Narrows First Nation v Ontario (Natural Resources). The historical treaties that were signed by aboriginal groups and governments between the mid-19th century and the early 20th century provide that the aboriginal groups who signed the treaties yielded ownership of aboriginal lands, with the exception of reserve lands. In return they received annuity payments, goods and hunting and fishing rights on the ceded land until the land was taken up by the government for settlement, mining, logging or other activities. In the Grassy Narrows First Nation case, also heard by the Supreme Court of Canada, a forestry licence was challenged on the grounds that the province of Ontario could not take up the ceded lands without first obtaining the approv-

al of the federal government or, at least, only with its collaboration. The Supreme Court ruled that the division of powers under the Canadian Constitution determines which level of government may exercise the rights or discharge the obligations provided for in the Treaty. Since the Constitution gives the province of Ontario exclusive power to manage the development of natural resources, including mining and logging, the approval of the federal government is not required. The Court noted, however, that Ontario’s right to take up the ceded lands is subject to the prior duty to consult the aboriginal group concerned and, if necessary, to accommodate its interests. The Ontario Superior Court of Justice will next have to decide, further to the decision of the Supreme Court of Canada, whether the forestry licence should be cancelled on grounds that it infringes the hunting and fishing rights of the Grassy Narrows First Nation. Conclusion The Supreme Court of Canada explained that the fundamental objective of modern aboriginal and treaty rights law is to achieve reconciliation between aboriginal and nonaboriginal peoples and their respective claims, interests and aspirations. The mining industry has acted proactively by seeking to develop close ties with the aboriginal communities that are affected by its projects. Recent decisions of the Supreme Court confirm the need to get aboriginal communities involved so that they can enjoy the benefits of these projects, which include employment, business opportunities and financial benefits. CMJ www.canadianminingjournal.com

Achieve resource-to-market excellence in your mining supply chain

Introducing the Integrated Planning and Optimization Solution for mining Control your entire operation Today’s mining operations need a solution that can deliver on individual KPIs, achieve overall efficiency, and avoid issues in the supply chain that could create bottlenecks further down the line and potentially affect stock management, deliveries, and maintenance costs. Let Schneider Electric be your partner in efficiency Our Integrated Planning and Optimization Solution can help you manage your entire mining operation from resource to market. It lets you optimize planning and scheduling, increase production, enhance asset and process performance, and reduce energy and water consumption. The timely and accurate information it provides will help you make better decisions that can increase productivity by up to 20%!

StruxureWare

for Mining, Minerals, Metals

Powered by StruxureWare™ software for Mining, Minerals, and Metals From resource to market, StruxureWare achieves an efficient infrastructure and delivers: • Ease of integration • Consistent user experience • Scalable platform

Start optimizing your mining supply chain today!

Watch our video to see how, and enter to WIN a FREE Samsung Galaxy Note 3! TM

Visit www.SEreply.com Key Code i364u © 2014 Schneider Electric. All Rights Reserved. Schneider Electric and StruxureWare are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. All other trademarks are the property of their respective owners. • www.schneider-electric.com • 998-1234356_GMA_CA-GB_Note3

| Gold in Canada

MINING TO THE RESCUE Richmont Mines helps support town after foresters pull out By Russell Noble

awa is a small town located about 250km north of Sault Ste. Marie, Ontario. It’s right at the junction of provincial highways 101 and 17, Canadian National and Algoma Railways service the area, and Lake Superior is just about 50km to the west. As small towns go, Wawa has a lot to offer and until the late 1980s, the forest industry considered it to be one of the prime locations in Ontario to set up shop and to draw from many of the town’s 2950 residents to work in the surrounding forests and mills.

10 | Canadian Mining Journal • September 2014

www.canadianminingjournal.com

Aerial of Island Gold Mine shows its proximity to Goudreau Lake where the gold is being mined.

September 2014 â&#x20AC;˘ Canadian Mining Journal |

| Gold in Canada Ore being loaded for transport to the surface.

When much of the industry decided to pull up roots (sorry for the pun), unemployment skyrocketed and it wasn’t until the mining industry came to the rescue when the focus moved from forestry to developing the area’s vast mineral resources. Wawa is in the heart of the mineralrich Michpicoten greenstone belt and contains a host of ores, including a series of sub-parallel lenses containing gold mineralization within deformed rocks under Goudreau Lake, located about an hour’s drive northeast of the town. Finding minerals under a lake is not unusual, but what makes this discovery Underground work involves routine inspections.

interesting is that it caught the attention of Richmont Mines Inc. from RouynNoranda in neighbouring Quebec. Richmont Mines was founded in 1981 by Jean-Guy Rivard who focused on the exploration and development of underground gold deposits. Since then, the company has been instrumental in the development of the Francoeur, Beaufor and East Amphi mines in Quebec, plus the Nugget Pond and Hammerdown mines in Newfoundland. And since 2005, the company has also been working about 83km northeast of Wawa on its Island Gold Mine property (named appropriately because of its loca-

tion under an island on Goudreau Lake), a site containing 251,572 tonnes (Proven Reserves) and 48,086 ounces of gold at 5.95 g/t, and 481,775 tonnes (Probable Reserves) and 95,419 ounces of gold at 6.16 g/t. In addition, Measured Resources are 28,087 tonnes and 5,031 ounces of gold at 5.57 g/t, Indicated Resources are 255,600 tonnes and 59,402 ounces of gold at 7.23 g/t while Inferred Resources are 362,858 tonnes and 82,744 ounces of gold at 7.09 g/t. The Island Gold property is stratigraphically positioned in the area composed by intermediate felsic volcanic rocks capped by pyrite-bearing iron formations containing gold. The veins containing gold have been found roughly at the -100m and -500m levels. Nearly 100,000m of drilling were completed underground at the Island Gold Mine, including about 62,000m for continuing exploration, 20,000m of definition drilling and 18,000m of exploration in other areas of the mine. From the end of 2011 and throughout 2012, Richmont completed extensive exploration drilling below the Island Gold Mine infrastructure. Using a total of 117 surface and underground holes, the company modeled and established a mineral resource estimate for the deep extension below the mine of 1.5 million tonnes and 508,000 ounces at 10.73 g/t in February 2013. Additional drilling expanded this resource base to its current estimate of Indicated Resource of 456,013 tonnes and 168,897 ounces of gold at 11.52 g/t and additional Inferred Resource of 3,196,114 tonnes and 954,583 ounces of gold at 9.29 g/t. Because of where the gold is located, mining in the current operations is done via a ramp, and is predominantly done using the longitudinal long-hole retreat method on levels that are approximately 22m apart vertically. Mining consists of drilling downwards in a series of vertical holes from one level to the next and blasting in vertical slices. The broken ore then ends up in the bottom of ore drift and is hauled out with scoop trams to the on-site mill.

12 | Canadian Mining Journal • September 2014 www.canadianminingjournal.com

We’ve expanded into hard rock mining. Our recent acquisition has added proven hard rock products to our world-class portfolio, including hydraulic drills, loaders, trucks, utility vehicles and shaft sinking equipment. Joy Global’s hard rock consumables continue to set the standard for raise bore, blast hole and in-the-hole drilling tools, as well as ground-engaging buckets and lips. The result is a complete breakthrough for our customers with unparalleled service, technology, quality and safety expertise. To learn more, visit joyglobal.com.

JoyGlobal.com

| Gold in Canada

Miners on break underground.

Broken ore is extracted before another slice is blasted to ensure a maximum recovery of ore should any unplanned caving occur. Once the stope is completed, waste rock is dumped in the hole as non-cemented rock fill. To get space to blast the second stope of the same horizontal sublevel, a void is pulled as a primary opening. The second stope is then blasted, mucked and backfilled, and so on and so on, until all sublevels are mined out. The recovery process involves bringing

the ore to the surface and to a mill located approximately 0.8km from the portal of the mine’s ramp. Current mining operations extend to an approximate vertical depth of 450m, but the company has been extending the ramp at depth in order to access the higher-grade established resource below the mine’s infrastructure. The ramp reached a vertical depth of 620m at the end of June, 46m below its depth of 574m at the end of 2013. The ramp is 4.5m x 4.5m and there are A vast amount of core is kept on site for reference.

14 | Canadian Mining Journal • September 2014

four main ventilation fans on surface (two 54-inch diameter Joy units each with a 200 hp motor, and two 60-inch Hurley fans each with 350 hp motors) to provide a total volume of 366,000 cfm of fresh air. There are also four propane burners producing 43 million BTU for air heating and six compressors producing 8,000 cfm. A 750-cfm diesel compressor is also onsite in case of emergency, either for surface or underground needs. About 750 tonnes per day is being delivered to the mill, with 65 per cent of it coming from stopes and the remaining tonneage from ore development. The Island Gold Mine’s Kremzar Mill uses a conventional gold milling approach using the carbon-in-pulp (C.I.P.) process. The plant consists of a crushing circuit (primary and secondary crusher) followed by a ball mill for size reduction, then thickening of the ground slurry ahead of cyanization and C.I.P. processing. Gold is recovered using an electrowinning cell fitted with stainless steel mesh cathodes. Before all of that, however, ore from the mine is delivered directly into the crusher feed hopper or deposited in a nearby stockpile area. The crushing plant consists of a fixed grizzly with a rock breaker, feed storage www.canadianminingjournal.com

REMOTE caMps caN bE up aNd RuNNiNg THis EasiLY WiTH asi. ASI provides fast, easy-to-deploy, customized water and wastewater solutions for mining services, oil companies and remote camp operators. Using some of the most advanced environmental technologies, we make it easy to get your project started and your existing sites running more efficiently. No two projects are exactly alike so we develop right-sized, custom solutions that are tailored to your specific situation. From obtaining regulatory approvals, to design, build and ongoing operation, we provide a single-point of accountability and cost certainty for our clients. For over 25 years weâ&#x20AC;&#x2122;ve made water and wastewater solutions our core business, so you can focus on what you do best.

Customized water & wastewater solutions.

asi-group.com

| Gold in Canada An inside look at Kremzar Mill at Island Gold Mine.

hopper, vibrating grizzly feeder, jaw crusher followed by a cone crusher installed in closed circuit with a vibrating screen. The jaw crusher (30” x 42”), is operated with approximately 75mm closed-side setting to help ensure that the final crushed product size will be 80 per cent passing 100mm. Undersize products are sent to a vibrating screen in closed circuit with a 4 ¼ short head cone crusher. The cone crusher is operated with an approximate 25mm closed-side setting to help ensure that the final screen undersize product will be 80 per cent passing 16mm. At this stage, the undersize product is dropped into a fine-ore bin storage of 500 ton live capacity. The mine’s grinding circuit is composed of two grinding mills in series and is fed directly from the fine-ore bin to grind to 80 per cent passing 75 microns with only one ball mill, operated in closed circuit with cyclones. Like all mines, tailings are a major consideration in the operation of the Island Gold Mine and Richmont Mines has taken every precaution to help ensure that minimal harm comes to the surrounding environment. Tailings discharge point is located about 750m from the mill where they are pumped through a pipeline and dis-

charged into a massive holding area where part of the discharged water is pumped back (800m3/day) to the mill and then treated and recycled. The remaining water follows a small creek before reaching a clear-water pond. At this point, an impervious dam controls the water discharge into the environment. In addition to water treatment through a primary tailings and secondary settling pond, the Island Gold Mine site includes the mill, ramp and portal, plus a 15-km gravel mine access road to the nearby town of Dubreuilville where bunkhouses are located for mine personnel. The site also features a hydro-electric power supply, an office, core-logging and storage facilities, and a warehouse. Since the start of commercial production in October 2007, Richmont’s 100 per cent-owned Island Gold Mine has produced more than 256,000 ounces of gold and in 2014, the company is targeting approximately 35,000 to 40,000 ounces of production. With a million-ounce gold resource at depth, the Island Gold Mine is an asset that has the potential to transition into a longer-life, higher-grade and lower-cost operation and is proof that gold mining in Canada is in good hands thanks to companies like Richmont Mines Inc. from Rouyn-Noranda, Quebec. CMJ

Exterior of Kremzar Mill with hydro-electric power supply and two pieces equipment from the company’s fleet of heavy machines.

16 | Canadian Mining Journal • September 2014

www.canadianminingjournal.com

STRONG VALUES. STRONG BOTTOM LINE.

Strong business ethics, transparency and environmental stewardship arenâ&#x20AC;&#x2122;t just the right things to do â&#x20AC;&#x201C; they also help build your corporate brand and strengthen your bottom line. Find out how EDC can help you strengthen your corporate social responsibility practices at edc.ca/responsible

| Gold in Canada

LOOKING

FORWARD GOLDCORP HAS PLENTY OF WORK AHEAD

By Eastern Correspondent D’Arcy Jenish

18 | Canadian Mining Journal • September 2014 www.canadianminingjournal.com

Goldcorp’s Cochenour Mine is one of the company’s ‘stand-out’ projects.

s the chief operating officer of Vancouverbased Goldcorp Inc., George Burns usually has his hands full maintaining the production and profitability of the company’s open pit and underground mines, which are located in Canada, the U.S. and Mexico as well as Central and South America. This year, however, he’s a little busier than usual. After all, Goldcorp is on course to achieve what might be called a mining hat trick. Barring unanticipated delays or disruptions, Goldcorp will have three new mines in production by year end and Burns, with characteristic understatement, says: “These are pretty exciting times for the company.” On July 25, the company poured its first gold from its underground Cerro Negro mine in the province of Santa Cruz in southern Argentina and will produce between 130,000 and 180,000 ounces there this year.

Production is also scheduled to begin before year end at Goldcorp’s Cochenour mine in the historic Red Lake mining camp in northwestern Ontario and at its Eléonore mine in the James Bay region of northern Quebec. Goldcorp acquired both properties from junior mining companies as advanced exploration projects and has spent years bringing them to the brink of production. Eléonore is located some 200km east of the Cree coastal community of Wemindji and Goldcorp wisely worked hard to win the support of the Cree Nation of Wemindji and the broader Cree Nation Government. The result, after some five years of careful consultation and sometimes difficult negotiations, was an agreement that could well serve as a template for other resource companies dealing with First Nations and traditional lands. The standard approach, says John Paul Murdoch, legal counsel for the Cree Nation of Wemindji, is to negotiate an impactbenefit agreement in which the communi-

ty demonstrates the potential and possible harmful effects of the development and the company provides compensation. Instead, Goldcorp and the Cree signed a collaboration agreement based on a partnership. “Our chief, Rodney Marks, didn’t want an impact benefit agreement,” says Murdoch. “He wanted to see if we could negotiate as true partners. Goldcorp wanted stability and our chief said ‘Okay, we’ll provide stability. I’m going to work very hard to get my community to buy in.” To date, the approach has worked well and delivered dividends for both sides. Goldcorp has brought Eléonore from advanced exploration to production without the blockades, demonstrations and court challenges that often stall or kill resource developments. The Cree, meantime, are enjoying durable economic benefits. “We started by building a relationship first, by understanding the Cree, their vision and what is important to them,” says Burns. “We have an awesome partnership with them.” September 2014 • Canadian Mining Journal |

| Gold in Canada Miners work underground installing equipment and below, operating heavy machinery.

Cree lawyers helped the company draft the permits submitted to the Quebec regulatory authorities. Other members of the community assisted with the design and construction of the access road from the coast to the mine site. “When we were looking for gravel pits and routing, the Cree were very helpful in

20 | Canadian Mining Journal • September 2014

minimizing disturbance and picking the optimal route,” Burns adds. Goldcorp created a training program for Cree workers and has employed them in the construction of the ramp and production shaft and they will form part of the mine’s permanent labour force. The company has also built an industrial-scale dry

cleaning plant in Wemindji, which will be used to clean coveralls and other garments and will provide benefits to both parties. It will create jobs in Wemindji and minimize the footprint of the mine site, always an important factor in remote locations. The Eléonore mine will be a very large underground operation once it is in full production at some point in 2018. The production shaft will be sunk to a depth of 1,500m, but it will be another year before it is fully constructed. The workforce will number about 1,600 and many of those workers will be flown in from Montreal as well as several Cree communities on the southern coast of James Bay. The mine will produce about 7,000 tonnes of ore per day and around 600,000 ounces of gold per year. The projected life of the mine is 15 years, but that estimate is based on the reserves discovered to date. “The deposit is open at depth and we’re intersecting economic grades in the deepest holes we’ve drilled,” says Burns. “Once the production shaft is finished and the www.canadianminingjournal.com

MINE RUNNER

1.519.599.2015 www.rockbreaker.com

35 ELGIN STREET, NORTH THORNBURY, ONTARIO CANADA, N0H 2P0

| Gold in Canada

ramp is in place we’ll continue to explore and get a better understanding of the ultimate size of this deposit.” Goldcorp has acquired a significant land holdings around the Eléonore mine and Burns and his fellow executives believe they are on the cusp of something big in James Bay. “Our focus now is on developing Eléonore,” he says. “Once we

get it ramped up and into production we’ll be stepping out and looking for the next mine in the district.” The Cochenour mine in the Red Lake district, located 230km northwest of Dryden, Ont., won’t add to Goldcorp’s annual production. Instead, it will replace the output from the Campbell mine, which has been producing almost 500,000

ounces per annum, but is now nearly depleted after 60 years of operation. “We’re doing what’s called remnant mining, extracting the last chunks of ore from that historic deposit,” says Burns. Goldcorp acquired the Campbell mine from Barrick Gold in 2006 and two years later picked up Cochenour, which is located five kilometres to the west. The prop-

MANY CLAIM TO BE CAPABLE BUT DMC MINING SERVICES DOES IT SAFELY. THE ROAD TO ZERO HARM LEADS TO LOWER COST AND AVOIDS SCHEDULE DELAYS. WHY TAKE A CHANCE. BRING US TO YOUR NEXT PROJECT.

Contract mining Shaft sinking Raise boring and raise excavation Mine construction and infrastructure Mine development and rehabilitation Head frames and hoisting plants Ground freezing and grouting programs Engineering design and feasibility studies Property development through equity investment, partnerships or joint ventures Peter van Alphen 191 Creditview Road, Suite 400, Vaughan, Ontario, Canada L4L 9T1 Tel: 905-780-1980; Email: pvanalphen@dmcmining.com

www.dmcmining.com

22 | Canadian Mining Journal • September 2014

Phil Buck 488 East 6400 South, Suite 250, Murray, Utah, USA 84107 Tel: 801-975-1979; Email: pbuck@dmcmining.com

www.canadianminingjournal.com

A profile of the Eléonore Mine clearly shows the scale of the operation.

erty has been mined in the past, but it had sat dormant since 1971 when the last mining operation shut down. A junior company drilled deeper and discovered the Bruce Channel, a highgrade, narrow-vein structure that contains up to two ounces of gold per tonne. Goldcorp has widened the old Cochenour production shaft and driven it 245m deeper, but it will primarily be used for ventilation and as a safety exit once the mine is operating. The company plans to use the existing mill at the Campbell mine to crush, grind and process the ore and has devised an ingenious solution (an underground railway) to move ore from the new operation to the old one. Goldcorp has spent the last three years drilling, blasting and developing a haulage drift between the two sites. The drift is 12 feet wide, 16 feet high and five-km long and the ore will be transported by a battery-powered locomotive towing four, 40-tonne cars. When the train arrives at the bottom of the Campbell production shaft, ore will be lifted to the surface for processing. Constructing the drift has been a costly and time-consuming project, Burns notes, but it saves the company building an entirely new processing facility for Cochenour. It minimizes the surface disruption and allows the company to transport ore under the community of Cochenour, rather than through it. The new mine is expected to be in production for at least 20 years, based on current estimates of reserves, but Goldcorp

expects to be working the Red Lake camp for much longer than that. The company recently announced a discovery at an old mine north of Campbell and east of Cochenour and plans to rehabilitate some existing drifts in order to

conduct an underground drilling program. “Hopefully this new discovery will lead to some huge value creation for our shareholders,” says Burns. “My view is that this is an unbelievable gold mining camp and there’s lots more to be found.” CMJ

Aerial of Goldcorp’s Eléonore Mine.

September 2014 • Canadian Mining Journal |

| Gold in Canada

NEW

LIFE Miner pours first gold from historic mine By Russell Noble

s the crow flies, Rimouski, Quebec, located on the south shore of the St. Lawrence River about 325km east of Quebec City, and the Town of Port Dufferin, Nova Scotia, on the south coast of the province approximately 140km east of Halifax, are almost on the same longitude, but about 600km apart. It’s about a three-and-a-half hour flight in a small plane or almost six-hours by road through some of the more picturesque scenery in eastern Canada. Travellers will agree that it’s a pretty drive but after the first three or four hours or so, most admit that it’s also a monotonous and tiring journey. At least that’s what Alain Hupe, president and CEO of Ressources Appalaches, says about the route from his Rimouskibased office to the site of his company’s Dufferin Gold Mine in Nova Scotia. For the past six years since Ressources Appalaches became the new owner of the property, Hupe has been working on upgrading much of the mine’s infrastructure including a processing plant with an operating capacity of 300 tonnes/day, an access ramp, electrical power, and an eight-km gravel road connecting with Provincial Highway 7. From the signing of the purchase agreement in 2008 and for the following three years, Ressources Appalaches con24 | Canadian Mining Journal • September 2014

ducted a drilling program to confirm the extension of the property’s gold-bearing quartz veins eastward and to depth. The company completed 11,626 metres of drilling and in all, 73 holes were punched showing grades reaching as high as 339g/t Au over 0.4m and 350g/t Au over 0.3m, with significant intersections including 10.97g/t Au over 10.1m and 8.34g/t Au over 9.0m. With these kinds of results and now with more than 18 quartz veins identified, the gold-bearing structure has been followed for 1.4km and down to a depth of nearly 400m. Hupe says that vein #1 starts at the mine’s portal and plunges 8-10˚ to the east for a distance of about 1,200m to a depth of 200m. Work by previous owners indicated 12 other veins beneath the #1 vein, also extending eastwards. In addition, new veins have been located above #1 thanks to a continuous drilling program. As already mentioned, the Dufferin Mine is not a new mine. In fact, mining was performed on and off between 1994 and now by three different companies. A total of 77,738 tonnes of ore has already been extracted and 9,053 ounces of gold recovered, with an average head grade of 6.1g/t Au and recoveries from 45 per cent to a maximum of 60 per cent. With this historical information and new data obtained through its own drilling program, Ressources Appalaches www.canadianminingjournal.com

moved forward with confidence, starting with the development of a -12% ramp access from the portal to new depths. The ramp is 4m x 5m wide and is used as the primary access to the mining levels, as well as for mine ventilation, dewatering and other mine services. Alain Hupe explained the initial development advanced along strike on the top of the saddles to access higher concentrations of gold and that drifts will also be used for diamond drilling and geology sampling for new mining zones. “The approach to drilling below the initial access as well as along the flanks will depend on the size of the saddle as well as the reaching capabilities of the mining equipment. A minimum width of two metres will be maintained,” says Hupe. Limb development, says Hupe, should represent only from 10 to 30 per cent of the total production and depending on the limb thickness and grade, decisions on how to proceed within each area will be made according to a number of criteria. If vein thickness is greater that 1m and the estimated diluted grade is higher than 6g/t, benching will be used. If the vein is narrower than 1m, but diluted grades are higher than 6g/t, a slashing method, with occasional blasting, will be used in conjunction with a small underground excavator. The mill feed target is set at a maximum of 300 tonnes/day with an average total mining rates of 500 tonnes/day

Much of the processing equipment at the Dufferin Mine has been refurbished by Ressources Appalaches.

which allows for approximately 200 tonnes/day of waste rock. A standard development round will cover an area of approximately 20 m(2), with an advance of 4m per round with an actual drilling depth of 4.5m. Hupe says each standard round breaks about 212 tonnes of rock at a minimal rate of two rounds per day. The company plans to maintain an ore stockpile to provide a minimum of 20 days of mill feed. The stockpile is segregated into high grade and low grade for grade control. Crushing takes place during the day shift only, leaving the fine ore bin full at the end of the shift and approximately 200 tonnes of crushed rock in the short-term stockpile located adjacent to the crusher. In addition to crushing capabilties, a

vast fleet of mining equipment is expected to be on site including one 2-boom jumbo (110 hp), one 1-boom jumbo (110 hp), two 16-t haul (165 hp) trucks, one 3.5yard (165 hp) scoop, one 1.5-yard (110 hp) scoop, one (110 hp) scissor lift, one underground (110 hp) boom truck, one (75 hp) man carrier/explosive truck, and one (110 hp) low-profile grader. It’s obvious that transforming an old mine into a new and productive property requires years of research and faith in the property but that’s what Ressources Appalaches is doing with its Dufferin Mine and as Alain Hupe says, the trip between his head office in Rimouski to the Town of Port Dufferin has often been long and monotonous but after seeing the company’s first gold pour in July, “It’s been worth it!” CMJ

The portal at the Dufferin Mine measures 4m x 5m wide leading to a -12% ramp.

September 2014 • Canadian Mining Journal |

| Gold in Canada

BIG JOB,

BIG GOLD TEAMWORK PAYS OFF FOR B.C. MINER

R Staff Report

ecent news that Seabridge Gold’s KSM Project in Northwest British Columbia was issued an Environmental Assessment Certificate by the Province of British Columbia was monumental on several fronts. In addition to its size (with 38 million ounces of gold, plus 10 billion pounds of copper), KSM asserts to be the world’s largest undeveloped gold/copper project by reserves. The $5.3 billion project marks just the second metal mine in five years to receive environmental assessment approval from the Government of British Columbia, a lengthy, comprehensive and expensive process.

26 | Canadian Mining Journal • September 2014

www.canadianminingjournal.com

A picturesque view of Seabridge Gold’s Mitchell deposit at the KSM Project.

September 2014 • Canadian Mining Journal |

| Gold in Canada

Two aerial views show storage and works areas and the camp in relation to two creeks.

This endorsement is an impressive achievement, backed by more than six years of aboriginal, community and government engagement; seven years of environmental, engineering and exploration work; and six years in the environmental assessment process. For Seabridge, the provincial gold seal of approval recognizes that KSM is a safe, well-designed, and an environmentally responsible project that is technically fea-

sible and offers significant economic benefits to both British Columbia and Canada. But it also acknowledges the amount of effort the company put into engagement with Treaty and First Nations communities to keep them informed and obtain feedback. According to Rudi Fronk, chairman and CEO of Seabridge, responsible exploration and development was the foundation of KSM’s Environmental Assessment

Power projects need people power www.valard.com

28 | Canadian Mining Journal • September 2014

application, focussed on four key areas: ensuring the health and safety of communities and employees, protecting the environment for present and future generations, ensuring communities benefit from the project at every stage and keeping communities informed and engaged. Fronk insists it’s more than just a commitment, it’s a mindset woven into the fabric of his company’s makeup and a must in today’s resource development industry.

No matter how large or complex your mine’s power needs are, Valard has the resources to deliver a successful outcome. From engineering and procurement to construction and maintenance – get in touch with us for a simple, cost-effective solution.

Canada’s Largest Power Line Workforce Extensive Bonding Capacity Competitive Project Financing

www.canadianminingjournal.com

A crew of drillers take a break while working on the property (left) and aerial photo shows the camp and its elongated set-up.

“It’s not enough to just have an economically and technically feasible project that satisfies investors if you can’t prove that your project is not going to harm the environment. If you don’t meet with local communities and First Nations to talk about the project, answer their questions and incorporate their feedback, and also make an effort to ensure they benefit in meaningful ways, your project won’t have a chance of succeeding. That’s earning the ‘social

o d h c W h i u s e? yo u

licence to operate.’ The term may be overused but the meaning behind it cannot be disregarded or downplayed,” says Fronk. Meaningful engagement Expanding on the engagement of the project’s stakeholders, Fronk shares insight into the amount of work the company undertook. “Over six years we held 23 open houses in communities in British Columbia and Alaska, participated in 32 project

working group meetings and had 57 visits with Treaty and First Nations. We made $500 million in design changes in response to concerns of the local aboriginal groups.” Expensive, yes, but Fronk says, well worth it. The project has been accepted by the Nisga’a Lisims Government as well as the Tahltan, Gitxsan, Gitanyow and Skii Lax Ha First Nations. Acceptance of resource projects in aboriginal territory has never been more important in light of

Drums carry a high price tag. They’re expensive to buy, inefficient to transport, harder to handle, prone to small spills, cause injuries and are often abandoned and left behind.

Arctic King collapsible fuel bladders are better for the environment, easier to deploy and move, safer to use and cheaper to transport.

www.sei-ind.com 604-946-3131

September 2014 • Canadian Mining Journal |

| Gold in Canada the recent Supreme Court of Canada’s Tsilhqot’in land title decision. Safety by design A well-designed, technically sound project that ensures the health and safety of people and the environment is a critical factor in the Environmental Assessment. The recent tailings pond breach at

Imperial Metals’ Mount Polley coppergold mine in the interior of B.C. has brought increased scrutiny and skepticism by First Nations, government, investors and the public about the safety of such facilities at existing and proposed mines in the province. Rudi Fronk understands and appreciates the increased attention, but wants it

Think Innovation, Durability, Quality • 100,000’s of Options • Same Quality • Same Lead Time

Find your storage solution at rousseaumetal.com

Durability Modular Drawer System " Get an unbeatable product with exceptional strength. " Other Rousseau product lines

1.866.463.4270 info@rousseaumetal.com

rousseaumetal.com

30 | Canadian Mining Journal • September 2014

known that KSM’s proposed tailings management facility has been extensively reviewed. “Scrutiny by all levels of government and independent engineers has added several years and millions of dollars in cost to the Environmental Assessment, but it has been worth it. We are confident our design is sound.” Protecting the environment Fronk says protection of the environment, including water quality and aquatic life, is a guiding principle behind its design. “The water management system design process was influenced by concerns associated with potential downstream effects both in the Unuk and Nass rivers. Any water used in the mining process will be treated before it’s released. KSM will fully meet applicable water quality standards established by the Canadian and Provincial governments.” There’s no doubt that a project the size of KSM is going to have an environmental footprint, but every possible step has been taken to reduce the footprint and minimize impacts. A number of design changes were made to minimize potential impacts to the environment, fish and wildlife, such as adding a liner to the centre cell of the Tailings Management Facility and relocating the mine’s access road away from areas of sensitive fish habitat. Fronk says that Seabridge has conducted extensive environmental baseline studies, including fish and fish habitat, wildlife, aquatics and water quality, and vegetation, since the fall of 2007 to support development of the project design, water and wildlife management plans, and reclamation and post-operation monitoring plans. The company will be under legal obligation to ensure it meets 41 conditions outlined in the Provincial EA Certificate. Behind the numbers Obviously there must be strong economic potential for local communities and government behind any approval. Over its 52-year mine life, KSM will be a major driver for economic development, generating 1,800 direct and 4,770 indirect jobs across Canada during the five-year construction period and 1,040 direct jobs annually while in production, many of which will be local. www.canadianminingjournal.com

Seabridge Chairman and CEO Rudi Fronk (right) and one of the many tours of the site (inset).

Seabridge already employs many aboriginal and non-aboriginal men and women from local communities near KSM and has been actively contributing to education and training programs in the region to help create skilled, local labour. And since 2006, the company has spent more than $176 million in exploration, engineering and environmental work, with approximately 80 per cent ($140 million) in local B.C. communities. But, the Environmental Assessment Certificate is just the first step. Seabridge is now focused on obtaining a similar approval from the Canadian Environmental Assessment Agency (as part of a joint har-

monized EA review), as well as the necessary permits, strategic partnerships and financing to begin construction. In the eyes of Rudi Fronk, KSM is a demonstration of what can be achieved when a company relies on the expertise of

world-class consultants, incorporates recommendations from local aboriginal and other subject-matter experts, submits to a stringent regulatory process and allows human and environmental protection to guide every action. CMJ

September 2014 â&#x20AC;˘ Canadian Mining Journal |

| Technology

KICKING THE CAN How one mining company drastically reduced its use of fuel drums Staff Report

xploring Canada’s Yukon often means setting up an exploration base camp in the middle of nowhere without roads or nearby supplies, but that’s what Anthill Resources Ltd., a Vancouver-based mining investment firm has done with a 2,400 sq. km. claim block in the newly defined Rackla Gold Belt, located 150km east of Mayo. With a myriad of logistical hurdles to overcome, the company is now working the Rackla Belt, a Carlin-type gold deposit that launched a gold rush in the past and has now inspired a new one in northern Canada. A typical remote exploration site. Note the construction of the soft-sided collapsible fuel tank area adjacent to the camp.

Carlin gold deposits are named after the Carlin mine in Nevada, the first mass producer of this type of gold during the 1960s. Characterized by microscopic particles of gold running through pyrite and arsenopyrite, a significant new Carlin deposit was recently discovered in Canada’s sparsely populated and remote Yukon Territory. “The potential for this style of gold mineralization was always thought to be there,” says Jeff Cary, project manager for Anthill Resources Ltd. “Since the first discovery, a lot of excitement has been generated.” Anthill Resources’ Einarson project contains nearly 12,000 individual claims. “It’s in a very remote area with mostly float-plane access,” says Cary. “It’s crown land but in truth, it’s everyone’s backyard. It’s Canada’s northern frontier.” “When people are in the field, they work hard and get dirty and they need good facilities and comfortable accommodations,” says Cary. “Our camps have tents with wood-frame floors and canvas tops, electricity and heaters. There’s even camp Internet access.” Keeping all of that running smoothly depends on diesel and jet A fuel supplies that, for decades, have traditionally been delivered in fuel drums. Unfortunately, says Cary, drums carry a high price tag in more ways than one. They are expensive to buy and inefficient to transport and worse yet, they’re often abandoned and left behind, littering the landscape.

32 | Canadian Mining Journal • September 2014 www.canadianminingjournal.com

A closer look at one of the collapsible BATT units that can be transported to remote sites by aircraft.

The sheer number of abandoned drums also creates a significant spill risk from small amounts left inside, but multiplied by the sheer number of drums in use. As well, injuries are common for workers who have to move the drums on a daily basis. “We wanted to find a solution that drastically reduced our drum use, if possible,” says Cary. “For us, as a company, it’s important to erase the perception that mining exploration is potentially bad for the environment.” With about10 barrels of fuel needed per day, Anthill Resources opted to replace the bulk of its drum use with a string of five products from Canadian manufacturer SEI Industries Ltd., of Delta, B.C.. “We started right at the beginning of the fuel supply chain with the BATT (a double-walled collapsible fuel tank) which allows us to fly in bulk fuel in a soft-sided collapsible tank inside an aircraft like the Otter,” says Cary. Originally developed as a tool for South American law enforcement operations, the BATT is specifically customized to each aircraft’s interior. Looking a little like a long, narrow waterbed, the BATT’s bulk fuel is offloaded using a pump that also filters the fuel before transferring it into SEI’s Arctic King fuel storage tank. “We bought two Arctic King tanks – one for diesel and one for Jet A – each holding 18,927 litres of fuel,” says Cary. “The advantage of the Arctic King tanks are that they allow us to transport and store fuel more efficiently with minimal personnel and minimal fuel spill risk.” To meet environmental regulations, the tanks are surrounded by a secondary containment system, also made by SEI, called an Insta-Berm which can catch any spills even though they are highly unlikely. “Spills are unacceptable but I don’t worry about them anymore,” says Cary. “Plus, there have been cost savings. Taking empty drums back out used to cost around $2,000 to fly out 12 barrels,” he adds. Cary says a typical field season could end up with several hundred empty drums that have to be removed. While some companies choose to bring in a barrel crusher, the remains still have to be disposed of. “As well, the old barrels are quite an eyesore.” “Now we have unparalled safety, no fuel condensation problem, and we’ve minimized the amount of barrels we have to deal with at the end of the project.” CMJ

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

September 2014 • Canadian Mining Journal |

| Products

SPECTROMETRES The oreXpress and oreXpress Platinum Sspectrometers from Spectralevolution come with mineral identification software for fast, accurate and repeatable core logging that produces a precise and complete picture of mining potential. The mineral analyzers are designed to improve core logging tasks thanks to a mineral contact probe that can scan 400m of core at 25cm intervals in a day.

GOLD DRYER Grieve’s No. 864 is a 350ºF, natural gas-heated belt conveyor oven used for drying gold ore samples. This oven features a five-foot long open belt loading zone, 35-foot long insulated heat zone with recirculated airflow and a one-foot long open belt unloading zone, plus four-inch insulated walls, aluminized steel interior and exterior. A six-foot wide, one inch x one inch galvanized steel, flat wire conveyor belt with ¼ HP motor drive, variable from five to 50 feet per hour, transports the workload.

BELT CLEANER Flexco has just introduced its Motorized Brush Cleaner to its line of belt cleaners. Designed to clean chevron, cleated, and raised-rib belts, the new unit is also useful on worn or pitted vulcanized or mechanically spliced belts. For optimal cleaning performance, the brush spins opposite the direction of the belt while the patterned polypropylene bristles reduce material build up by dislodging trapped material from the belt. It’s available in sizes to fit belt widths of 18 to 84 inches.

We see an additional 100,000 ounces of gold Accurate structural geology interpretation can mean the difference between a money pit and a gold mine. When our team of the world’s best structural geology specialists analyse complex data you get insights that let you make confident, informed decisions.

ULTRASONIC SENSORS CARLO GAVAZZI announces the launch of its Long Range UA30CAD60 Series Ultrasonic Sensors with digital and analogue output configurations designed for use in a wide variety of applications, including material handling. The sensors offer sensing distances of 250 to 6000 mm and are available as either cabled or M12 quick-disconnect versions.

Before you undertake your next mining project, let us give you a clear picture of the risks and rewards. For a snapshot of 17 distinct services to the global mining industry, download our new mining brochure, available at: srk.com

>1,500 professionals • > 50 offices • 20 countries • 6 continents

34 | Canadian Mining Journal • September 2014

www.canadianminingjournal.com

AUTOMATIC ROD CHANGER Atlas Copco’s Pit Viper Auto Rod Change (ARC) system is a patent pending technology to remove rods during the retract and cleaning phases. The company’s primary goal was to build a fast, repeatable and reliable system. The multi-tasking software controls are coupled with a redesigned mechanical breakout system and sensor suite to deliver a mine-ready solution. ARC has been tested and run in a variety of mine conditions to help ensure it is ready for the demanding environments a blasthole drill will face.

WE BUILD PARTNERSHIPS THAT STAND THE TEST OF TIME

With our industry leading expertise and in-house capital, we are here to help in good times and bad. Dundee Capital Markets is a full-service investment dealer focused on hard assets with principal businesses that include investment banking, research and institutional sales & trading.

dundeecapitalmarkets.com

DUNDEE CAPITAL MARKETS IS A REGISTERED TRADEMARK OF DUNDEE CORPORATION.

PROFESSIONAL DIRECTORY

OVENS & FURNACES Providing effective, environmentally responsible waste management solutions since 1994. www.ecosolutions.com ADVERTISERS INDEX Andritz Separation Inc..........................................31........................................................... www.andritz.com ASI Water ...............................................................15...................................................... www.asi-group.com BBA Inc...................................................................33....................................................................www.bba.ca Bel-Ray Company Inc.............................................4...........................................................www.BELRAY.com Breaker Technologies...........................................21..................................................www.rockbreaker.com Carlo Gavazzi..........................................................37.............................................. www.GavazziOnline.com DMC Mining Services...........................................22....................................................www.dmcmining.com Dundee Capital Markets.......................................35............................... www.dundeecapitalmarkets.com Eco Waste Solutions.............................................35................................................ www.ecosolutions.com Export Development Canada...............................17..............................................www.edc.ca/responsible Ford Motor Company..............................................7.................................................................... www.ford.ca Goldcorp Inc...........................................................40........................................ www.goldcorp.com/careers Grieve Corporation................................................35...................................................www.grieve.corp.com Hard-Line Solutions...............................................39...........................................www.hard-line.com/teleop Iwaki America Inc...................................................2........................... www.iwakiamerica.com/mining.htm JOY Global...............................................................13..................................................... www.JoyGlobal.com Rousseau Metal Inc..............................................30.............................................www.rousseaumetal.com Schneider Electric Canada Inc............................9............................... www.Sereply.comKey Codei 364u SEI Industries Ltd...................................................29.........................................................www.SEI-IND.com SRK Consulting (Canada) Inc...............................34..................................................................www.srk.com Valard LP.................................................................28............................................................ www.valard.com WSP Canada Inc.....................................................6........................................www.wspgroup.com/canada

Large-Capacity Walk-In Ovens Standard sizes to 786 cu. ft. Special sizes to your specs Gas & Electric models Choice of air flow patterns Temps to 1200ºF

www.grievecorp.com 847-546-8225 GRIEVE CORPORATION AD4393g September 2014 • Canadian Mining Journal |

In My Mine(d)

Helping understanding the Supreme Court’s decision By Rachel Hutton and Patrick Duffy

hile lawyers, analysts and journalists are depicting the Tsilhqot’in Nation v. British Columbia decision as “monumental,” “landmark,” “groundbreaking” and “historical,” the active participants (developers, Aboriginal groups and government) are asking: What does it mean? What does this change? Despite the earth having apparently moved, one important principle has not changed following this decision. For parties desiring certainty in acquiring rights over lands claimed by First Nations, best practice remains to obtain consent from the affected groups, typically by way of a negotiated and binding agreement. However, the bargaining power now vested in groups that have viable claims to Aboriginal Title is undeniable. Where such a claim exists, the ability of governments to override Aboriginal concerns is significantly constrained. There are no shortcuts to achieving a full understanding of the impact of this case, and to properly do so, one should (at a minimum) begin with the Calder case, decided by the Supreme Court of Canada in 1973. Indeed, any well-rounded study of the relevant issues involves tackling the cultural, legal, constitutional and above all, historical aspects of the problematic and contentious relationship between Aboriginal peoples and Canada, beginning well over a century ago. As a starting point, or an alternative to delving into the complexities of Aboriginal law, we have prepared a set of brief Questions and Answers addressing the questions we are being asked about the case. 36 | Canadian Mining Journal • September 2014

Q: What did the Supreme Court grant the Tsilhqot’in First Nation? A: The Supreme Court of Canada made a declaration of Aboriginal Title to the Tsilhqot’in First Nation over approximately 2,000 square km of Crown land in south-central British Columbia. The area over which title was declared represents 5% of Tsilhqot’in First Nation’s traditional territory and less than half of what the Tsilhqot’in originally claimed. No privately owned land was involved in the final claim.

the decision provides guidance for establishing Aboriginal Title, it is ultimately a context-specific inquiry that will vary from case to case. Much has been made of the nomadic aspect of the Tsilhqot’in First Nation’s historical use of the lands, but it is important to note that the Tsilhqot’in were required to prove exclusivity, continuity and sufficiency of occupation and use by way of legal proceedings that lasted for over 15 years. The mountainous nature of the terrain (which made intensive occupation impossible) and the lack of competing claims of Aboriginal Title from other groups were key factors in establishing the Tsilhqot’in’s claim. It remains to be seen how the courts will interpret the requirements in less remote areas where there are overlapping claims for title.

Q: What is “Aboriginal Title”? A: Aboriginal Title is not the same as “fee simple” title, being the modern legal concept of ownership of land in Canada. Aboriginal Title is a unique concept that confers a right to control the land and requires governments and other seeking to use the land to obtain the Q: What can we expect to see in terms of consent of the Aboriginal title holders. claims for Aboriginal Title following However, as discussed below, Aboriginal this case? Title is not absolute and proposed A: We anticipate that a number of First incursions on the land can be justified Nations will commence actions seekin certain circumstances. ing declarations of Aboriginal Title over claimed lands. The clarity proQ: What does this case mean for lands vided by this decision sets the stage for Courts to evaluate evidence and make claimed by other Aboriginal peoples? findings as to declarations of Aboriginal A: This is the first declaration of Title with less uncertainty. However, as Aboriginal Title granted by a with the implementation of any new Court. Groups claiming Aboriginal legal guidelines, some uncertainty is Title to lands now know the legal stanbound to persist and the facts of each dard that they need to meet to obtain a claim will vary considerably. declaration from the Courts recognizing or acknowledging their interests. Q: How has the Crown’s duty to consult Q: Does this case make it easier to estabwith, and accommodate affected Aboriginal peoples been changed by lish Aboriginal Title? this decision? A: Impossible to say at this point. While www.canadianminingjournal.com

In My Mine(d)

Rachel Hutton is a Partner and Patrick Duffy an Associate with Stikeman Elliott LLP, Baristers & Solicitors.

A: Not directly. The Court reaffirmed that the extent of the Crown’s duty to consult and accommodate is determined along a spectrum. The duty to consult and accommodate where there is a potential infringement of Aboriginal Title (whether proven or claimed) is at the high end of the spectrum and is greatest when a declaration of Aboriginal Title is made. Prior to a claim for Aboriginal Title being made, the duty is unchanged. Q: Once Aboriginal Title is declared, do the relevant Aboriginal peoples have complete control of the use of their lands? A: Although Aboriginal Title grants the right to exclusive use and occupation of the subject lands, it is subject to important qualifications: • The land cannot be “alienated except to the Crown.” •T he land cannot be “encumbered in ways that would prevent future generations of the group from using and enjoying it.” •T he land cannot be “developed or misused in a way that would substantially deprive future generations of the benefit of the land.” • I f governments and others wishing to use the lands do not obtain consent, then they must justify the proposed use by demonstrating that the duty to consult and accommodate has been fulfilled, the actions are backed by a compelling and substantive objective, and are consistent with the Crown’s fiduciary obligation to the group. •T he practical result is that once

Aboriginal Title is established (and perhaps once it appears likely to be established), the importance of obtaining consent from an affected Aboriginal group has been raised to a lofty height. Q: Are existing agreements with Aboriginal groups affected by this decision? A: No. The decision should not impact existing agreements with Aboriginal groups. Q: Does this case affect lands subject to treaties? A: This case does not directly apply to situations where an Aboriginal group has entered into a treaty. However, historic treaties, as compared with modern comprehensive treaties, have generally been more susceptible to challenges of enforceability. This case does not change that. The infringement of treaty rights is the subject of another case before the Supreme Court

of Canada, Keewatin v. Ontario, which is due to be released later this year. Q: Once Aboriginal Title is established, what happens to approved projects on the lands, and legislation affecting the use of those lands? A: This portion of the judgment is likely to generate the most uncertainty. Chief Justice McLachlin ruled that after Aboriginal Title is established, projects may be required to be cancelled, and legislation found to infringe on the title may be subject to repeal. It is not clear to what extent this applies retroactively or prospectively, to approvals already granted (or to be granted) and to existing or future legislation. This article provides a summary overview of only some of the many questions and issues that this case raises, and each topic could easily bear further detailed analysis, especially as to how this ruling impacts specific projects and claims. CMJ

SIL3 Pull Cord Switch System (Approved by TÜV according to EN61508-SIL3 and EN954-1 Cat. 4)

Addressable up to 5km per zone For new or retrofit applications

Real Time Diagnostics No more searching for tripped switches 888.575.2275 www.GavazziOnline.com Gavazzi@CarloGavazzi.com September 2014 • Canadian Mining Journal |

Exploration Opportunities

A practical approach to mitigating risks By Zain Raheel

raud and corruption remain inherent risks within the global mining and metals business. These risks become amplified as companies explore opportunities in emerging markets where business practices are different and where laws regarding corrupt practices may lack legislative and enforcement strength. In today’s lower margin environment, where mining executives are under pressure to deliver improved financial performance, there may be a temptation to “bypass bureaucracy” and “accelerate” critical licensing and permitting processes. These rationalizations could lead miners down the path to potentially corrupt business practices. It is therefore no surprise that countries have introduced legislation, such as the UK Bribery Act, and have, recently, pursued more aggressive enforcement of existing legislation, such as the US Foreign Corrupt Practices Act (FCPA) and our own Corruption of Foreign Public Officials Act (CFPOA). Regulators stress that it is up to companies to put the programs in place to identify, detect and manage fraud and corruption risks across operations. Generally, programs reflect the following themes: 1. Conducting a corruption risk assessment Identifying and analyzing risks is essential to developing an effective anti-corruption compliance program. The first stage of risk assessment should focus on actual risks posed, the degree of business with governmental entities, its use of agents and other intermediaries, the countries where you’re operating, the regulatory environment and other factors. The second stage should identify the policies and controls already in place to mitigate these risks. Then it’s time to identify gaps and create a targeted roadmap to develop an effective and efficient anti-corruption compliance program. 38 | Canadian Mining Journal • September 2014

Zain Raheel is a partner in EY’s Fraud & Investigation Dispute Services practice and leads the Anti-Corruption initiatives for the Canadian Mining & Metals Sector. He is based in Toronto.

2. Developing a corporate anti-corruption policy Companies can set the tone from the top with a robust anti-corruption policy that complies with and meets the requirements of relevant legislation. Effective policies help to implement internal controls to ensure proper management, accountability and safeguarding of shareholder assets. Companies should also provide examples of “red flags” and encourage employees to report violations or seek guidance on problematic situations. 3. Implementing specific anti-corruption policies Companies are entitled to rely on controls, but should pay particular attention to those that effectively mitigate risks identified in the risk assessment. For example, the use of third parties such as agents, consultants and commercial sales representatives can expose companies to serious risk. The majority of reported FCPA cases involve a link to thirdparty intermediaries. A few targeted policies can address these risk areas. Programs that address the risks posed by these groups are best served by taking a risk-based approach and developing policies that determine the appropriate level of oversight and diligence. 4. Implementing anti-corruption financial controls Strong pro-active and detective controls are the first line of defense against the risk of corrupt payments. Increased financial controls in high-risk areas can be a critical firewall in avoiding violating accounting provisions such as the books and records provision of the FCPA. This often translates into enhanced financial controls designed to identify transactions with heightened corruption risk profiles, as well as more traditional financial controls such as improved transaction review, approval and accounting procedures, controls around bank accounts and petty cash, enhanced vendor approval and payment pro-

cesses, leading to an overall increased scrutiny of high-risk transactions. 5. Conducting anti-corruption compliance training Companies operating beyond their borders should make anti-corruption training available for local employees. Robust and regular training educates staff on corruption policies. 6. Monitoring the program Monitoring exists as a benchmark for overall program effectiveness. It can include continuous data monitoring as well as regular anti-corruption compliance audits. These audits can focus on compliance of various elements of the anti-corruption program and to test for substantive non-compliance by seeking to identify potential violations or “red flags.” They can uncover new risks and can provide feedback as part of an ongoing corruption risk assessment process. 7. Incorporating anti-corruption procedures into transaction due diligence The regulatory expectation is that anti-corruption efforts address all manner of company transactions — including M&A and joint ventures. Acquirers would be wise to incorporate anti-corruption procedures into negotiations given the potential risks inherited through successor liability. 8. Periodically re-assess risk and modify the program Risks change over time and static programs are ineffective. Companies must continually re-evaluate potential risks and evolve anti-corruption programs. In today’s increasingly complex regulatory landscape, companies must undertake a robust anti-corruption program. It’s time to re-evaluate fraud and corruption prevention efforts and ensure a practical approach to mitigating these formidable risks. CMJ www.canadianminingjournal.com

W E

A N Y T H I N G

(+1) 705-855-1310

C A N

Y O U

contact@hard-line.com

R U N .

hard-line.com/teleop

WE COULD HAVE USED THIS SPACE TO TALK ABOUT OUR SUCCESS, BUT WE’D RATHER TALK ABOUT YOURS.

ENGINEERS: MINING • MECHANICAL • ELECTRICAL GEOTECHNICAL • ENVIRONMENTAL METALLURGICAL

GEOLOGISTS:

We recognize it takes world-class people to run world-class mines. When you work with us, you’re part of a growing community of skilled professionals committed to pioneering advances in modern, sustainable mining. Together, Creating Sustainable Value.

PRODUCTION • EXPLORATION

BUSINESS SUPPORT: ACCOUNTING • FINANCE HR • SAFETY • SUSTAINABILITY PROJECT SUPPORT & MANAGEMENT

NYSE: GG | TSX: G 3

Join us.

goldcorp.com/careers