Canadian Mining Journal October 2016

c

a

n

a

d

a

’

s

f

i

r

s

t

m

www.canadianminingjournal.com

MINING IN

QUEBEC

VARIETY OF PROJECTS CALLS FOR FULL RANGE OF SITE VEHICLES

i

n

i

n

g

p

u

b

l

i

c

a t

i

o

n

October 2016

SPECIAL REPORT EQUIPMENT MAINTENANCE & REPAIR

Canada Post Canadian Publications Mail Sales Product Agreement No. 40069240

01_CMJ Oct2016_Cover .indd 2

2016-09-21 8:17 AM

RELIABILITY

HYDRAULIC OIL

EXPECT TO REALIZE MORE WITH HYDREXTM XV Your hydraulic system is exposed to a wide range of temperatures and conditions.

HYDREX is the one brand of hydraulic oil you can always count on for up to 2x better wear protection*. With HYDREX XV, you can also expect reliable, all-season protection across the toughest environments. Factor that year-round reliability across your mining operation and you’ll realize operational efficiencies that save you time and money.

Help your business realize more. Visit TryHYDREX.com *Measured against leading North American hydraulic oil brands.

CMJ Octber2016_Ad pages.indd 2

DOCKET #: 12861

Petro-Canada is a Suncor business

Trademark of Suncor Energy Inc. Used under licence.

TM

FILE NAME: 12861-PCL-P-020-2016-E

2016-09-21 8:10 AM

CANADIAN Mining Journal www.canadianminingjournal.com

OCTOBER 2016 VOL. 137, NO. 8

10

FEATURES MINING IN QUEBEC 10 Gold Bullion Development Corporation takes a new look at historic Granada gold mine near Rouyn-Noranda in northwestern Quebec.

14 Wesdome Gold Mines renews work at Kiena mine complex near Val d’Or after high gold grades give new hope for closed mine.

16 Stornoway Diamonds proudly marks the end of a 15-year journey to build Quebec’s first diamond mine.

14

24 Canadian Mining Journal takes a quick look at some of the mining and exploration projects happening in Quebec.

28 An in-depth look at why skilled and well-trained technicians are so important to mine owners and operators.

32 Driven by changes in environmental policies, oil manufacturers will soon be introducing new products to the mining industry.

DEPARTMENTS 5 EDITORIAL |

Editor Russell Noble talks about the skill levels in today’s workplace and how he thinks that many of the people in the current workforce aren’t mechanically minded enough to handle what’s required to keep the wheels of industry rolling.

16 ABOUT THE COVER

6 FIRST NATIONS |

Ontario Chief Isadore Day says that governments and industry must work closer with First Nations on creating sustainable economies that will help save the environment.

8 IN MY MINE(D) |

Dr. Paul Smith, vice-pesident and centre manager, Xerox Research Centre, Mississauga, ON., talks about his company’s little known research and security services.

9 CSR & MINING |

A regular column by Michael Torrance, a lawyer with Norton Rose Fulbright, Toronto, looks at sustainable development goals and the mining sector.

62 UNEARTHING TRENDS | Abhay Raman, EY’s Cyber Risk Services Leader, looks at ways to stay a step ahead of cyber attackers.

OCTOBER 2016

03_CMJ Oct2016_Contents.indd 3

This month’s cover provided by Ford.

Coming in November Canadian Mining Journal’s popular Buyers’ Guide, a comprehensive list of suppliers, products and services for the mining industry in Canada.

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

CANADIAN MINING JOURNAL

|3

2016-09-21 8:56 AM

E20001-F420-T195-X-7600

SIMINE Gearless Mill Drives Take benefit from an expert partner for drive solutions – backed by 500 operating years of experience

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency – thanks to a 40-foot SAG mill and two 26-foot ball mills. Because reliability and robustness are extremely important at an elevation of 4,200 meters above sea level, the mining company selected drive solutions from Siemens. One 24,000-kW gearless drive and two 16,400-kW models have been keeping the mills running steadily since 2012, even under the extreme conditions in the high mountains of South America.

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980. In the 34 years since then, these drives have been in operation for a combined total of 500 years. Downtimes due to unscheduled maintenance work average less than twelve hours per year. With a gearless mill drive from Siemens you can be part of this unparalleled success story, and benefit from the extensive experience of an expert partner.

Quantity of operating

SIMINE Gearless Mill Drives

50 40 30 20 10

500 operating years

0 1980

1990

2000

2010

Year

siemens.com/mining

CMJ Octber2016_Ad pages.indd 4 27135.indd 1

2016-09-21 10:4208:07 AM 25.06.15

CANADIAN Mining Journal

EDITORIAL

Keeping moving parts … moving

October 2016 Vol. 137 — No. 8 38 Lesmill Rd. Unit 2, Toronto, Ontario M3B 2T5 Tel. (416) 510-6789 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 Production Manager Jessica Jubb Circulation Manager Cindi Holder 416-510-6789, ext. 43544 cholder@glacierbizinfo.com Publisher & Sales Robert Seagraves 416-510-6891 rseagraves@canadianminingjournal.com Sales Western Canada, Western U.S.A. and Quebec Joelle Glasroth 416-510-5104 jglasroth@canadianminingjournal.com Toll Free Canada & U.S.A.: 1-888-502-3456 ext 2 or 43734 Group Publisher Anthony Vaccaro

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 BIG L.P. Mining.

BIG is located at 38 Lesmill Rd., Unit 2. Toronto, ON, M3B 2T5.

Phone (416) 510-6891.

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: $51.95 per year; $81.50 for two years.

USA: US$64.95 per year. Foreign: US$77.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add HST and Provincial tax where necessary. HST 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: 1-888-502-3456 ext 2; Fax: 416-447-7658; E-mail: cholder@glacierbizinfo.com Mail to: Cindi Holder, BIG Mining LP, 38 Lesmill Rd, Unit 2, Toronto. ON, M3B 2T5.

We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs.

OCTOBER 2016

05_CMJ Oct2016_Editorial.indd 5

By Russell Noble

Mechanically minded is a term that is commonly used to describe someone with an interest in tinkering with mechanical devices. It’s basically an interest in moving parts.

But unlike the other minded people in today’s society, namely the closed variety, mechanically minded people are a dying breed because rarely does anybody really like to tinker or, for that matter, do anything for themselves anymore, especially if dirt is involved.

It’s a generational thing because it’s easier to pay someone else to do the dirty work, but honestly, I think it’s more likely because many people just don’t know how to do much of anything for themselves anymore.

I’ve mentioned it here before, but we’ve become a society filled with people with limited skills; a generation that knows little-to-nothing beyond what they do on a dayto-day basis to earn a living. They seem to be loaded with disposable income, and for that, plumbers, electricians and auto mechanics are thankful.

But even more appreciative are companies like H&R Block during tax time, and a slap-in-the-face to many men; a company called “Husband For Hire” in Toronto that has found a niche market for mechanically skilled people to step in where husbands apparently don’t care, don’t have the time, but more likely, don’t have a clue.

I’m not saying that all husbands are inept at doing mechanical things around the house, and I applaud “Husband For Hire” for its initiative and clever name, but it’s perhaps a sign of the times that leads me to believe that people are relatively ‘unskilled’ when it comes to mechanical things.

To many people, nuts and bolts, and the tools required to put those two components together, are foreign objects; as foreign and misunderstood as some of the other languages spoken around the world.

But if ‘nuts and bolts’ are so foreign and misunderstood, then why are they used daily during business discussions in all industries to describe the basic ingredients for success?

“Let’s get down to the nuts and bolts of the matter” is something that’s said in almost every boardroom around the world, and in different languages too. But, regardless of what tongue they’re spoken, they mean the same.

The basis for success means taking a hands-on approach to keeping the moving parts that make things work, working. Analysing and watching them go round and round does nothing but admit cluelessness.

But sadly, that’s what’s happening in far too many circles today. Thankfully, however, the mining industry hasn’t fallen into that circle… yet.

But I can see how it could.

When you ask any mine operator for a list of people who are critical to the day-to-day operation of a mine, the obvious answer will be: “All of them!”

But ask a little deeper, and I’m willing to bet the answer will be: “Anyone who can jump in and fix a problem in an emergency.”

Mechanics, and particularly welders, are those people; the skilled tradespeople who don’t think twice about getting dirty for the cause.

In fact, I’ve met a few of these people over the years who have told me that they actually “enjoy it” when something goes wrong because they get a chance to fix a problem instead of just doing routine maintenance.

I know that it’s a nightmare when something breaks in a mine, but thankfully there are still mechanically minded people working in the mining industry to help ensure that CMJ moving parts keep moving.

CANADIAN MINING JOURNAL

|5

2016-09-21 8:30 AM

FIRST NATIONS

Poised to become a powerful economic force

By Isadore Day, AFN Ontario Regional Chief From clearing the plains in Canada to bulldozing sacred sites in North Dakota: governments and industry must end the atrocities and work with First Nations on creating sustainable economies that will save the environment

O

ver the Labour Day long weekend, thousands of American Indians and Canadian First Nations gathered at Standing Rock Sioux Nation in North Dakota to protest the construction of a pipeline that will not only contribute to future greenhouse gases and global warming, but add another sad chapter to the long list of atrocities committed against our Peoples.

On this very holiday weekend, 25 years ago, many American Indians and activists joined Mohawks and First Nations at Kanesatake, QC, to protest the forced expansion of the Oka golf course on a sacred burial site. The images of Quebec police and Canadian military confronting our Peoples have become iconic world-wide.

Next year, we will be celebrating the 150th anniversary of the Confederation of Ontario, Quebec, Nova Scotia and New Brunswick. In order to build a railroad and expand out west to add the future provinces of Manitoba, Saskatchewan and Alberta, the Canadian government forcibly removed and later starved tens of thousands of our Peoples.

“Clearing the plains” was the beginning of the human rights violations that still exist today, and directly contributes to the crisis of missing and murdered indiginous women; and the high proportions of our children in care, suicides, and our Peoples in prison.

At Standing Rock, innocent men, women and children – peaceful protesters – were attacked with tear gas, pepper spray and dogs in order to allow bulldozers to destroy sacred land for another pipeline.

LaDonna Bravebull Allard of the Standing Rock Sioux perfectly summed up this latest atrocity: “The U.S. government is wiping out our most important cultural and spiritual areas. And as it erases our footprint from the world, it erases us as a people. These sites must be protected, or our world will end, it is that simple. Our young people have a right to know who they are. They have a right to language, to culture, to tradition. The way they learn these things is through connection to our lands and our history.”

However, it’s not just our People’s footprint in this world that is being erased, all of humanity is at stake. It was just 10 months ago that the newly elected Trudeau government pledged to spend 6|

CANADIAN MINING JOURNAL

06_CMJ Oct2016_First Nations.indd 6

billions to help end global warming at the December 2015 Paris Climate Change conference.

At the same time, this very same government, along with industry, is spending millions of dollars on consultations and lobbying the U.S. government in order to build more pipelines to ship the very substance – oil – that is the number one contributor to global warming. How incredibly ironic is that? At the very least, building more pipelines to ship more crude oil will only result in short-term economic gains – and very few new jobs – in return for the long-term destruction of our ancestors’ lands, the water we all drink, and the air we all breathe.

The answer to ending these atrocities against both our Peoples, and Mother Earth, is so very simple. Canada, the United States, and 193 other countries pledged to gradually end our reliance on fossil fuels in order to stop global warming. Now is the time to expend that energy on building a green economy.

Now is the time to turn over the protection of our shared environment – water, air and lands – back to our Peoples.

The need for cleaner, greener economic solutions makes the timing right for the Ontario First Nation Economic Forum. On October 12 and 13, Chiefs, economic development officers, business, industry, and all levels of government will gather to advance the concepts of wealth creation for First Nations – wealth creation that does not harm the environment.

OFNEF 2016 will also build upon the original OFNEF held in 2010 in Fort William First Nation. Over the past year, the new provincial relationship of the Political Accord, and the new federal fiscal relationship, promises real investments in First Nation infrastructure and economies. This represents an unprecedented opportunity for First Nations to be fully involved in local, regional and national economies.

OFNEF 2016 will examine current gaps, provide solutions, and identify specific actions items that will lead to wealth creation, increased infrastructure, and improved socio-economic conditions for First Nations in Ontario. Successful sustainable joint partnerships with industry and established community economic development projects will also be highlighted. The event will be co-chaired by Six Nations Chief Ava Hill and Akwesasne Grand Chief Abram Benedict.

First Nations in Ontario are poised to become a powerful economic force in terms of natural, renewable, and human resources. We first need to level the socio-economic playing field in regard to equally sharing our lands and resources. Once that is accomplished, First Nations will become the economic engines CMJ that will generate prosperity for all.

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 8:34 AM

CMJ Octber2016_Ad pages.indd 7

2016-09-21 8:12 AM

IN MY MINE(D)

Security innovations to help ensure product safety

By Dr. Paul Smith

D

eep in a state-of-the-art lab in Mississauga, Ont., Working closely with the client, our scientists began to develop researchers are tackling problems that cost businesses and test a series of chemical markers that could be added to the fuel around the world billions of dollars every year. to show a specific response when exposed to a stimulus.

The engineers and scientists at the Xerox Research Centre of One of the many challenges during the research and testing Canada (XRCC) spend much of their time helping companies phase was trying to come up with an additive that could survive come up with innovative security solutions to battle counterfeits the complex chemical environment of liquid fuel for its lifetime. and protect their brands against pirates. This is an enormous Once our team formulated a marker that met all of the client’s challenge with an annual global price tag of $1.7 trillion, accord- goals, we were able to begin manufacturing large batches of the ing to the Organization for Economic Development. additive in our Scale-Up Engineering Pilot Plant, which is outfitIt may be surprising at first for some to learn that Xerox, a ted with chemical reactors capable of producing anywhere from company that made a name for itself by inventing the photo- 2 to 2,000 litres of material at a time. copier, is so heavily invested in developing security materials, but Innovation is a critical success factor for Canada’s long-term the work is a natural extension of the innovative research and economic resilience. Our vision is to help drive innovation in development we have carried out for decades.

Canada, and to help businesses grow through the commercializaFor more than 40 years, XRCC developed new materials like tion of breakthrough materials, technologies and services. inks, toners and photoreceptors for the Xerox’s own purposes. As the primary materials research and development centre for Xerox’s operations around NOT ONLY DO WE HAVE STATE-OF-THEthe globe, virtually every Xerox product in market today has been influenced in some way by the ART FACILITIES AND EQUIPMENT TO research team in Mississauga.

But over the past five years, however, we have HANDLE R&D FOR JUST ABOUT ANY SECURITY opened the doors to our labs so we can put our expeMATERIALS CHALLENGE, INCLUDING MINING, rience and expertise to work for other companies, collaborating with them to develop custom high tech WE ALSO HAVE A WORLD-CLASS TEAM OF security solutions and bring them to market.

MORE THAN 60 CHEMICAL ENGINEERS, Not only do we have state-of-the-art facilities and equipment to handle R&D for just about any secuPHYSICISTS AND SCIENTISTS WHO rity materials challenge, including mining, we also UNDERSTAND THE IMPORTANCE OF GETTING have a world-class team of more than 60 chemical engineers, physicists and scientists who understand PRODUCTS TO MARKET QUICKLY. the importance of getting products to market quickly.

Our researchers have also demonstrated particular expertise for developing materials that enable security features, including fluorescence, colour shifts, metalAs we look to the future, we envision that XRCC will conlic finishes, and electronic properties. These materials can be incorporated directly or indirectly into life-critical products like tinue to invent and develop new materials’ platforms, explore medicines, food, toys, cosmetics, fertilizers, aircraft and car parts. ways to incorporate materials into functional prototypes, and To illustrate how the process works, consider a recent example push the limits of materials and ‘device’ performance to impact CMJ of a client who came to us with a unique security challenge that business across markets in Canada. required a creative solution. We were approached by a company that delivers fuel across the globe who needed to guarantee that their product was genuine and hadn’t been diluted or tampered DR. PAUL SMITH, Vice-president and Centre Manager, Xerox Research Centre of Canada, Mississauga, ON. with in any way.

8|

CANADIAN MINING JOURNAL

08_CMJ Oct 2016_In my mined.indd 8

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 9:49 AM

CSR & MINING

World Bank safeguards for sustainability revised

By Michael Torrance

T

he World Bank has recently introduced a newly revised set of sustainability “safeguards” following extensive public consultation.

Published in August 2016, the new safeguards are intended to apply to World Bank investments, which are normally directed at governments rather than the private sector (which the World Bank funds through the International Finance Corporation [IFC]). The World Bank works with governments in developing countries seeking financing for infrastructure and service facilities.

The World Bank may fund these projects and has a sustainable development objective, including encouraging protections for environmental and social matters. This is done through the promotion of World Bank policies called “safeguards” that require borrowing governments to address certain environmental and social risks in order to receive World Bank support for investment projects.

In part, this sets a baseline standard that governments themselves are expected to meet, in their activities and national governance of environmental and social matters. The World Bank may offer capacity and institution building to governments to achieve these objectives. Examples of expectations that may be set as a pre-condition for investment might be conducting an environmental and social impact assessment, consulting with affected communities about potential project impacts, or compensating for adverse impacts on livelihoods of displaced people.

Prior to this update, the World Bank safeguards diverged significantly from other newer standards like the IFC Performance Standards and Equator Principles. The new safeguards framework brings the World Bank’s environmental and social protections into closer alignment with those other standards. For example, there is more emphasis on public participation, and accountability including expanded roles for grievance redress mechanisms.

Unlike the old safeguards, the new standards include labour and working condition protections and community health and safety measures that address road safety, emergency response and disaster mitigation (like the IFC Performance Standards). There are also rules regarding environmental assessments and management.

It also includes an enhanced stakeholder engagement and non-discrimination human rights requirements.The new standards will be rolled out over the next 12 to 18 months, with implementation expected to take place in 2018.

The new safeguards are of interest for Canadian miners for a

OCTOBER 2016

09_CMJ Oct 2016_CSR.indd 9

couple of reasons. First, they illustrate that there is increasing convergence around common standards for sustainability, like the IFC Performance Standards, which should guide Canadian miners in understanding what sustainability expectations can mean in their operations. This is consistent with the Government of Canada’s own CSR Strategy for the Extractive Sector which itself

THE NEW SAFEGUARDS FRAMEWORK BRINGS THE WORLD BANK’S ENVIRONMENTAL AND SOCIAL PROTECTIONS INTO CLOSER ALIGNMENT WITH THOSE OTHER STANDARDS. FOR EXAMPLE, THERE IS MORE EMPHASIS ON PUBLIC PARTICIPATION, AND ACCOUNTABILITY INCLUDING EXPANDED ROLES FOR GRIEVANCE REDRESS MECHANISMS.

endorses those standards. The standards enunciated in the safeguards are also the product of consultation involving World Bank stakeholders, including member countries, civil society organizations from developed and developing countries, academia, development experts, and others in 63 countries. As such, they reflect a vetted best practice in sustainability that should guide corporate standards. The new safeguards also illustrate how developing country governments are being encouraged to adopt expectations for environmental and social management that conform to these international standards. This all potentially factor into country regulatory requirements that will affect Canadian miners working CMJ in these jurisdictions.

MICHAEL TORRANCE is a lawyer with Norton Rose Fulbright, Toronto.

CANADIAN MINING JOURNAL

|9

2016-09-21 8:36 AM

MINING IN QUEBEC

10 |

CANADIAN MINING JOURNAL

10-13_CMJ Oct2016_Granada.indd 10

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 8:49 AM

By Correspondent David Godkin

B

y most production standards, it’s not a large mining property. Located 5km south of Rouyn-Noranda in northwestern Quebec, the two kilometer structure at Granada Gold Mine hasn’t delivered any meaningful amount of gold since the mid-1930s when just over 51,000 ounces were hewed from its flanks So why is junior mining company Gold Bullion Development Corporation so interested now?

Simple, answers Gold Bullion’s President and CEO Frank Basa; Granada fits the company’s operational profile: “We only do what we call “one-step” projects; they’ve got to be really, really simple; otherwise we won’t get involved.” Second is what Basa and his colleagues discovered when they first arrived at the mine site in 2006: 20,000 metres of drilling, two viable shafts, underground workings and two large bulk samples already completed.

CONTINUED ON PAGE 12

OCTOBER 2016

10-13_CMJ Oct2016_Granada.indd 11

CANADIAN MINING JOURNAL

| 11

2016-09-21 8:50 AM

MINING IN QUEBEC “We looked at all the old drawings and saw that there was still blocked-out ore that hasn’t been mined. Historically, this was 9 g/t to 12 g/t which is quite high grade even by today’s standards.”

Basa had his one-step project. Th metallurgy was simple. The geology was simple. And the scale was there. By his own admission, an “old-school” miner, Basa’s next step was to perform his own 140,000 tonne bulk sample, “and sure enough,” he says, “the gold was better than we thought.” 30,000 tonnes of the sample were processed using an on-site mill, yielding an average gold grade of 1.62 g/t with a 90-per cent rate gold recovery. Beamed Basa, “It looks good.”

Getting that reserve right the first time Brent Cook is a senior geologist and independent exploration analyst who’s familiar with the Granada mine, and who agrees with Basa’s assessment.

“That’s the grade they got and they got decent recovery.” Also, the gold mineralization is hosted by east-west trending smokey grey, fractured quartz veins and stringers with free gold occurring at vein margins or within fractures of the quartz veins or sulphides, another positive,” he says. “When you grind it up the gold comes out. I assume they’ll use gravity and a cyanide leach.”

Cook offers one caveat, however.

Reserve estimates are tricky; get one wrong and it can haunt you. Cook cites a report prepared by mining consultant Roscoe Postle Associates Inc. in Toronto which showed that of the 76 mining companies that failed over a 10-year period, 70 per cent of that was due to resource estimation errors.

Why that is of particular importance at the Granada mine, Basa acknowledges, is the Granada property’s highly variable, nuggety deposit. “That’s why we’ve got to mine this open pit instead of underground because you cannot follow a vein on surface. So we’re trying to bulk this up.”

Mining in bulk helps to recover small, irregular veins that can’t be recovered individually.

But mining in bulk won’t be a cakewalk.

According to a prefeasibility study and technical report prepared by SGS Canada 12 |

CANADIAN MINING JOURNAL

10-13_CMJ Oct2016_Granada.indd 12

Heavy equipment can be found throughout the Granada Gold Mine site in northwest Quebec as Gold Bullion Development Corporation works the historic property for gold that was left behind from the 1930s when the site produced more than 51,000 ounces.

Inc., proven and probable ore reserves at Granada total 569,000 tonnes. To get to that, the company must strip 840,000 tonnes of overburden and a whopping 8.44 million tonnes of waste rock for a ratio of 15.7 in Year 1, 18.7 in Year 2, and 13.2 in Year 3. “That’s huge,” said Cook.

“And the deeper you go the harder it gets.”

“Ore makes money. Waste loses money,” Cook acknowledged again. Where that matters is if the company puts itself up for sale, something Basa says he’ll entertain.

With its market value capped at $35 million and a net current value for its high grade resource at $21.6 million over three years, buyers may be far and few between, Cook also points out. He believes the company may be betting on mining the much larger, remaining resource.

“But I must point out that the rest of the resource is half the grade (2.2 g/t) of the one they’re doing in the prefeasibility study (4.24 g/t). “Not at this mine,” answers Basa.

“In fact the grade increases with depth.” He estimates an underground grade of three to four grams, good news “because with two grams underground you can make money now. Everything looks positive.”

“You drill for structure, mine for grade…”

Basa acknowledges a structure of between 42 and 70 per cent nuggety gold at Granada. No way you can quantify that

with a two or three inch diamond drill core, he says. Even the 90,000 meters of drilling his crews performed “don’t truly reflect what’s going to be there. That’s why we did this bulk sample of nine million tonnes.”

Gold Bullion will stockpile the low grade and high grade ore, moving 600,000 tonnes of the high grade for custom milling at Iamgold’s Westwood mill at Abitibi and the remaining low grade of 1.4 million tonnes to another local mill.

As for those enormous strip ratios, Basa says that’s just at the beginning. “We’ll be taking out a lot of rock when we firs start, but as we go lower you’ll see that strip ratio come down to zero.” Basa also places part of the blame for the amount of rock that must be mined on Quebec’s mines ministry. “We spent months doing tests for noise.” Once the ministry had determined noise buffering was needed, Basa wasn’t about to build sounds walls with ore.

“So we had to blast a lot of rock to build these huge, huge sounds walls, which was kind of silly. The nearest house is three quarters of a kilometer away, through dense evergreen forest.”

Gold Bullion’s decision to ship out the ore for processing at Iamgold instead of building its own mill was an easy one, says Basa. “To build our own mill on site would cost $280 million. Why spend money building a mill when there are eight mills within a hundred kilometers in our area.”

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 8:52 AM

Gravel roads will be built on site using waste rock, with rail transportation available and an airport located 13km in a straight line from the old pit.

All that and more may be needed if, as Basa and his colleagues at Gold Bullion believe, the property has more life beyond Year 3. That will be made possible by additional space for staff quarters, existing tailings storage areas, potential waste disposal areas, heap leach pad areas, and a potential processing plant site. It’s all there, according to the SGS report.

Many of those mills are short of rock to mill, he adds. His goal: to build long-term relationships beyond Iamgold to include other mills such as those at Northern Sun and Kirkland Gold.

Gold Bullion’s frugality extends to its equipment fleet at Granada. “We looked at getting our own fleet,” says Basa, “but you go out and get your own equipment and it’s about $4 million or so.” After working out unit cost per tonne, Basa approached local equipment companies and secured lease and maintenance agreements to break up and truck the rock.

“Contractors sit around all winter and would rather work their equipment; we get a great rate, they’re happy and the rock all gets removed, shipped and the ore stockpiled at somebody’s mill site. Boom!

You’re done.”

A conventional drill and blast, load and haul cycle operation Granada will rely on a fleet of hydraulic excavators with a 5 tonnes bucket capacity (Volvo 460, Cat 336), up to seven 35 tonne Volvo A35 off-road trucks, a Cat 980H wheel loader and D6 dozer, all supported by auxiliary equipment.

Basa also places a premium for an operation of this size and comparatively short mine life on low cost surface structure.

Hence, the inexpensive trailer offices steel cladding and roofing building for sanitary facilities, and mine dry, first aid facilities, small repair shop and secondary warehouse.

OCTOBER 2016

10-13_CMJ Oct2016_Granada.indd 13

Go on…make me an offer I can’t refuse…

So how confident is Basa about Granada’s more immediate prospects? Plenty. Give us the next three years and we’ll turn this two kilometer combination open pit and underground op into five million ounces of gold, he says.

But it may not end there. The company still has 13 additional kilometers to examine, notably “really high grade” gold east in the Aukeko vein zone.

Just as it did at Granada, Basa will rip a page from the old time miner’s book: Go to the places they went and “not waste any time just drilling around thinking they might make some money.”

All of this seems to be in service of generating offers in the company from those already focused on gold mineralization in the Cadillac Trend.

Gold Bullion has yet to boost its market cap to an earlier high of $121 million, the result, Basa says, of an aggressive marketing plan. Again, simple geology and metallurgy supported by numerous mills, existing truck and rail facilities are central parts of its impending marketing plan for what remains behind.

“At the end of the day there will be at least 4.2 million ounces left behind.

I think someone will seriously knock on our door.”

In fact, Basa sees that figure rising to more than five million ounces. “Will we exceed 10 million? Not certain. But there aren’t very many fi e million ounce deposits on the Cadillac trend.”

CMJ

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.

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

>1400 professionals • >45 offices • 20 countries • 6 continents

CANADIAN MINING JOURNAL

| 13

2016-09-21 8:53 AM

HIGH GOLD GRADES GIVE NEW HOPE FOR CLOSED MINE

By Russell Noble

F

or many companies, “care and maintenance” means Th End. It’s a sad term known throughout the mining industry that says: “Thingsaren’t going well, and operations will be suspended until further notice.”

In other words, the mine is ultimately closed for business.

Like the mines themselves, the reasons for declaring “care and maintenance” run the gamut from spent resources, to declining market prices that make the cost of mining unprofitable, to the most common factor of all, no money.

And, as we all know, when there’s no money, and the cost of mining exceeds the value of the product, it’s time to quit.

Thankfully, however, there are still companies like Wesdome Gold Mines Ltd., of Toronto, who are not quitters, and their Kiena mine complex located near Val d’Or, Quebec, is a perfect example of the company’s never give up attitude.

In fact, even after struggling to hold onto their Quebec property, Wesdome’s management continued to believe in Kiena, and that its excellent geological potential would someday once again deliver value to its shareholders.

And now, more than two-and-a-half years after suspending operations, company Vice-president, Exploration, George Mannard, proudly announces that renewed drill results “exceed expectations, and that new rich veins are unlike anything 14 |

CANADIAN MINING JOURNAL

14-15_CMJ Oct2016_Wesdome.indd 14

previously encountered at this property.”

Again, faith and perseverance looks like it will pay off as two drills are now testing for a repetition along a Z-fold interpretation 200-300 metres below existing mine infrastructure at a depth of approximately 1,200 metres. The nominal drill spacing to test the target is 100 metres.

Mannard says at least two quartz veins and quartz vein breccia systems have been observed so far, all occurring near altered and deformed komatiite – theoleiitic basalt contacts.

And the results are impressive, just look at these numbers: • 94.35 g/t Au over 17.40 metres uncut (18.03 g/t cut) in hole U-6124.

• 223.12 g/t Au over 14.25 metres uncut (18.59 g/t cut) in hole U-6125.

• 238.81 g/t Au over 5.00 metres uncut (15.71 g/t cut) in hole U-6125.

• 8.43 g/t Au over 8.20 metres uncut (3.82 g/t cut) in hole U-6130.

Historically, the Kiena mine complex was known as a good producer, and with these results, you can see why management is optimistic that its mine will once again regain its status as being one of the province’s better gold mines.

And why not?

The mine is already fully permitted, and the integrated mining WWW.CANADIANMININGJOURNAL.COM

2016-09-21 8:59 AM

MINING IN QUEBEC

Three photos show various stages of activity at the Kiena mine complex near Val d’Or. Although the mine has been under care and maintenance for more than two-and-a-half years, Wesdome Gold Mines is back on the scene and drilling for new reasons to once again possibly reopen the mine.

and milling infrastructure, which includes a 900-metre production shaft and a 2,000 tonne per day capacity mill, produced (from 1981-2013) 1.75 million ounces of gold from 12.5 million tonnes at a grade of 4.5 g/t.

The bulk of this production came from depths between 120 and 960 metres.

Aside from the strong results listed earlier, the complex’s resources currently stand at 4,313,000 tonnes at an average grade of 3.7 g/t for 513,000 ounces in the measured and indicated category, with an additional 336,000 tonnes at an average grade of 7.5 g/t for 80,000 ounces of gold in the measured and indicated category, and 2,311,000 tonnes at an average grade of 8.0 g/t for 598,000 ounces of gold in the inferred category, from its adjacent property.

In total, Wesdome’s Val d’Or property consists of a contiguous block of mining claims and concessions covering more than 7,500 ha. This 8 x 9km parcel includes 8 shafts, more than 2.8 million ounces of historic gold production, and once again, a central 2,000 t/d milling and refining complex TheKiena mine complex is a perfect example of a mine “at rest,” so to speak, but one that holds promise to once again become a productive, and profitable operation for Wesdome Gold Mines of Toronto.

CMJ OCTOBER 2016

14-15_CMJ Oct2016_Wesdome.indd 15

CANADIAN MINING JOURNAL

| 15

2016-09-21 8:59 AM

MINING IN QUEBEC

It’s taken more than 15 years, but Stornoway Diamonds has transformed a harsh site in northern Quebec into a massive facility on the remote horizon.

16 |

CANADIAN MINING JOURNAL

16-21_CMJ Oct2016_Stornoway.indd 16

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 9:01 AM

Special Report

I

t’s not easy to over deliver, let alone deliver according to plan. But it’s what Stornoway Diamond has a knack for doing.

In mid-July, the company started processing ore at Quebec’s first operating diamond mine ahead of its already revised schedule.

CONTINUED ON PAGE 18

OCTOBER 2016

16-21_CMJ Oct2016_Stornoway.indd 17

CANADIAN MINING JOURNAL

| 17

2016-09-21 9:01 AM

MINING IN QUEBEC

It really marks the end of a 15-year journey of huge amounts of effort in exploration, development studies, permitting, financin and construction.

MATT MANSON, PRESIDENT AND CEO, S T O R N O WAY

“The e’s a huge amount of human capital that goes into bringing any mine into production – not just time and money. So seeing it happen, and it is happening under the best circumstances, [means] we are doing very well. We’re ahead of schedule, we’re below budget … it’s a terrific experience,” Matt Manson, the company’s president and CEO, says in a phone interview.

The Glasgow native, who became president in March 2007 and CEO in January 18 |

CANADIAN MINING JOURNAL

16-21_CMJ Oct2016_Stornoway.indd 18

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 9:08 AM

2009, notes Stornoway chose ore processing as the “moment to celebrate” the achievements at Renard. “It really marks the end of a 15-year journey of huge amounts of effo t in exploration, development studies, permitting, financing and construction.”

Ashton Mining of Canada and Soquem – the mining exploration arm of the Quebec government – found the diamond deposit in 2001. Stornoway acquired half of the project through its purchase of Ashton in 2007, and the rest from Soquem in 2011.

Despite the early bumps in sketching out Renard’s economics, Stornoway proved up the project’s potential and nailed down financial and local support. It has since exceeded its construction goals.

Back in February, the miner re-baselined its schedule for construction. It anticipated ore processing would kick off in September, with commercial production beginning by year-end 2016, roughly fi e months ahead of its previous plan. This revision lowered Renard’s estimated start-up capital to $775 million, from $811 million earlier.

In July, Stornoway processed 10 weeks ahead of the re-baselined target and seven months ahead of its estimate.

OCTOBER 2016

16-21_CMJ Oct2016_Stornoway.indd 19

A project the size of Stornoway`s Renard diamond mine takes plenty of people (and machines) to build as shown here by the equipment and the faces of those who worked for more than 15 years to make it all happen.

Manson attributes this to three factors.

The first is contracting and procurement. “We’re the only mine under construction in Eastern Canada, and that’s a big construction market. We were able to expedite the process of finding preferred vendors and contractors,” he says.

Given that the company built Renard during the downturn in global mining, it benefitted from minimal lead times on equipment and material delivery. “Everything was immediately available to us,” Manson says. For example, the 2011 feasibility estimated an 18-month lead time on Caterpillar equipment, which Stornoway received in a few weeks.

Second, the company’s contractors and employees were efficien and more productive than expected, Manson says, “because we had the best teams.”

Thi d, when Stornoway completed the original schedule as a junior looking to raise $1 billion to build a greenfield diamond mine, a lot of risks in the time line

never materialized, Manson notes.

Days after closing a $946-million fina cing, Stornoway started construction at Renard on July 10, 2014.

In March 2016, the company updated the mine plan, extending Renard’s life by three years to 14 years. The extension came from a 25% increase in reserves.

Based on open pit and underground reserves of 22.3 million carats (from 33.4 million tonnes grading 0.67 carat per tonne), Renard should produce 1.8 million carats a year during the first decade.

Life-of-mine operating costs should average $56.20 per tonne, or $84.37 per carat.

Meanwhile, Stornoway will focus on reaching commercial production. While the executive does not expect to re-forecast Renard’s year-end target, analysts project that commercial production should start two to three months ahead of plan.

As of July 13, the miner had stockpiled 1 million tonnes of ore to support the CONTINUED ON PAGE 20

CANADIAN MINING JOURNAL

| 19

2016-09-21 9:08 AM

e3 Plus Award

ramp up. Michael Parkin, an analyst at Desjardins Capital Markets, points out that the re-baselined schedule expected the stockpile would reach 800,000 tonnes in September. Higher stockpiles show mining from the pits is “going well,” he writes.

Stornoway will source ore for 2016 production from the Renard 2 and Renard 3 pits, and supplement this with the stockpile if needed.

The operation should process 2.2 million tonnes a year, or 6,000 tonnes per day, before expanding to 2.5 million tonnes a year, or 7,000 tonnes per day in 2018. This would coincide with underground mining at R2.

The plant should hit full production – described as 2.2 million tonnes a year at 78% plant use – within nine months, or by March 2017.

“We are comfortable with the project to date,” Parkin says. Th “biggest remaining risk” is reconciling the resource to see how the grade and average value per carat compares to the block model, he adds.

“We’re not going to declare success on this project until we’ve gone through the ramp up and the resource is reconciled correctly.”

He adds that the latter would take several months.

The March 2016 reserve includes four kimberlites: Renard 2,

PROUD TO BE A KEY PARTNER OF STORNOWAY’S SUCCESSFUL RENARD MINE DEVELOPMENT Designed to be respectful of environment and communities

1 800 463-2839 | norda.com

20 |

CANADIAN MINING JOURNAL

16-21_CMJ Oct2016_Stornoway.indd 20

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 9:09 AM

MINING IN QUEBEC

Photos show people working outside and within the massive plant (adjacent) that now occupies the site.

The operation should process 2.2 million tonnes a year, or 6,000 tonnes per day, before expanding to 2.5 million tonnes a year, or 7,000 tonnes per day in 2018.

This would coincide with underground mining at R2.

Renard 3, Renard 4 and Renard 65. At the time, the weighted average price of the reserve was $209 (US$155) per carat.

Stornoway intends to sell all of Renard’s diamond production by tender sale in Antwerp. First sales should occur in January 2017.

Along with being ahead of schedule, the company has received nearly $83 million in proceeds, after 97.5% of its warrant holders exercised their 90¢ warrants to buy 91.9 million shares before the July 8 expiry date.

“We have a lot more cash on the balance sheet than we expected to have,” Manson says. “That gives us a lot of financia flexibility as to what we do with the cash fl w when it starts.”

CMJ This Special Report was provided by Salma Tarikh, a staff writer with CMJ`s sister publication The Northern Miner.

OCTOBER 2016

16-21_CMJ Oct2016_Stornoway.indd 21

CANADIAN MINING JOURNAL

| 21

2016-09-21 9:09 AM

MINING IN QUEBEC

Remote

By Russell Noble

Keeping in touch with fiel crews can sometimes be a nervewracking experience because of the rugged terrain the work in.

22 |

I

n today’s society, most people associate the word ‘remote’ with a device that switches channels on their television but for people working in the world of satellite communications, ‘remote’ usually refers to a location situated far from any main centres of population.

This is the case for Galaxy Broadband Communications Inc. of Mississauga, Ontario, a company that has been providing satellite services for more than 20 years to customers in remote parts of Canada where there is no fibre or cell coverage And, as almost everybody in the civilized world knows, working in areas with no satellite service is difficul because of today’s need and demand for an instant and uninterrupted connection with the outside world.

Whether you’re using Facebook, Facetime, or Google to download electronic versions of the hometown newspaper, keeping in touch by voice and data on a constant basis is what Galaxy provides in regions where the only sign of civilization is the clothes they’re wearing.

In other words, the company’s high-speed internet services can provide support with the bare necessities: an auto-deploy system or – something used on a recent project for Abitibi Geophysics in northern Quebec – Galaxy SCOUT, a portable system that fits in the back of a pickup or transported by helicopter.

Because of the remoteness of the site, about 175km

CANADIAN MINING JOURNAL

22-23_CMJ Oct2016_Galaxy.indd 22

R PORTABLE SATELLITE SYSTEM PROVIDES AN ALL-IN-ONE COMMUNICATION SOLUTION

northwest of Val d’Or, near the town of La Sarre, Galaxy used its SCOUT system to enable Abitibi’s field crews to move easily around the site, which allowed them gather polarity and magnetic data to help define target areas for a potential drill program.

As mentioned earlier, the site was extremely remote and only accessible by a 150km-long forestry road.

For safety purposes, Abitibi needed a system that would enable them to use Voice Over IP to keep in touch with site crews. It also allowed them to have an internet connection to the head offic in Val d’Or to download data files in the evening when the crews were back in camp.

Doug Harvey, Galaxy’s Vice-president of Business Development and Marketing said, “The portability of the SCOUT was very important on the Abitibi site because of the geographical challenges in this part of Quebec. The quick-deploy satellite antenna on the system made it easy for the site crews to almost immediately connect to the Internet and transmit data at the end of each and every day.”

Most importantly, said Harvey, was the reassurance and peace of mind the system gave management at Abitibi Geophysics concerning its fiel crews were safely back in camp and ready to work another day.

Keeping in touch with field crews can sometimes be a nerve-wracking experience because of the rugged terrain they work in. Additionally, getting technical WWW.CANADIANMININGJOURNAL.COM

2016-09-21 9:11 AM

N

ON

Response data sent from the field to urban control centres can be even more daunting, but thanks to advances in remote and transportable communication systems like the SCOUT technology provided by Galaxy Broadband, mining and other exploration crews are now able to venture farther into the wilderness to look for new mineral resources while simultaneously keeping in touch with the outside world.

“The portable unit was quickly deployed by our crew and the technical support was very helpful and available. We used it for about two months and the link was very stable and dependable, we never experienced any slowdown or disconnection during that period. The voice over IP was very clear even when the internet was under heavy usage by the rest of the crew, we always had a clear channel to communi-

22-23_CMJ Oct2016_Galaxy.indd 23

cate (with a Canadian phone number) with our crew even in a remote area, which is very important for the safety of everyone. We were very pleased with the overall experience and we will use a SCOUT unit the next time we need an internet and phone connection remotely!” Maxim Belleau – Technical Electronics Supervisior, Abitibi Geophysics Inc. CMJ

2016-09-21 9:12 AM

MINING IN QUEBEC

Staff Report

Plan Nord” is one of the more ambitious eco nomic, social and environmental projects ever

proposed in Canada. It’s a massive development

project in Quebec that started in May 2011, and since then has been described as everything from “foolhardy and a pipe dream,” to “outstanding and long overdue.”

But regardless of varying opinions on the 25-year, $80-billion plan for the 1.2 million square-kilometer territory north of the 49th parallel that comprises roughly 72% of Quebec’s geographical area, there`s no denying that Plan Nord is a unique project that will be in the headlines around the world for years to come.

The scope and scale of the project alone make it newsworthy.

The territory covered by Plan Nord has one of the larger fresh water reserves and accounts for more than three quarters of Quebec`s installed hydroelectric power generation capacity, as well as approximately the same potential of untapped water, wind and solar energy resources.

It contains more than 200,000 square kilometers of commercial forests, representing over 50% of the province`s usable forests, as well as a vast array of mineral ore deposits.

Because of these resources, it`s anticipated that Plan Nord will generate and maintain an average of 20,000 jobs over its 25-year life span. And that`s truly remarkable.

But what`s equally impressive is the amount of work that is also going on elsewhere in Quebec. Here`s a quick look and just a few companies and what they`re working on right now.

24 |

CANADIAN MINING JOURNAL

24-26_CMJ Oct2016_Plan Nord.indd 24

A QUICK LOOK AT WHAT’S HAPPENING IN QUEBEC WWW.CANADIANMININGJOURNAL.COM

2016-09-21 9:13 AM

LITHIUM: Nemaska drills new zone at Whabouchi Nemaska Lithium of Quebec City has drilled a new mineralized zone at its Whabouchi lithium project 300 km northwest of Chibougamau, in the James Bay region. The company recently expanded its definition drilling campaign to 50 holes, and the discovery was made at the southwest end of the planned pit area.

Hole WHA-16-190 intersected the new zone along 29.1 metres of core length at a vertical depth of 150 metres. So far 12 holes have cut the new mineralized zone. Results from fi e holes confirm that the lateral extent of the zone is as much as 100 metres. Additional details will become available as the company receives assay results.

Nemaska is preparing the Whabouchi site to take a 60,000tonne bulk sample by installing a modular mill. The feasibility study outlines a combined open pit and unground operation with a mineral processing plant adjacent to the mines. The concentrate would be further treated in a hydrometallurgical plant to be established in Shawinigan, QC. The project has a measured and indicated resource of 27.99 million tonnes grading 1.57% Li2O and an inferred resource of 4.69 million tonnes grading 1.51%.

Osisko Mining of Montreal has released more results from drilling at its Windfall Lake gold project 100 km east of Lebelsur-Quevillon. The best intersections are coming from the recently discovered Wolf zone. The results have allowed the company to expand the new zone.

Hole OSK-W-16-708-W1 intersected 12.2 g/t Au over 4.0 metres in the hanging wall (765.5m – 769.5m), 12.5 g/t Au over 3.8 metres in the Wolf zone, and significant additional intercepts in the footwall including 4.79 g/t Au over 2.4 metres, and 15.4 g/t Au over 6.4 metres, all at depths between 765 and 845 metres.

The new intercepts are located approximately 100 metres verOCTOBER 2016

24-26_CMJ Oct2016_Plan Nord.indd 25

tically below the previously described Wolf zone mineralization.

And these were not the only high grade intercepts.

Hole 718 returned 23.2 g/t over 3.0 metres that led Osisko to expand an unnamed zone for 95 metres up-dip. The Caribou S3 zone was expanded 95 metres down-dip thanks to 22.6 g/t over 3.0 metres in hole 715. “Thesenew intercepts demonstrate the high potential for significant new mineralization near the known Windfall mineral inventory through continued definition and exploratory drilling, more specifically in the eastern extension of the deposit,� Osisko said in a release.

CANADIAN MINING JOURNAL

Photos: kinugraphik, iStockphoto

GOLD: Osisko cuts 15.4 g/t to expand new Wolf zone at Windfall Lake

| 25

2016-09-21 9:14 AM

MINING IN QUEBEC

GOLD: Osisko makes new find in Urban Township Osisko Mining of Montreal has made a new gold discovery during exploration of its Urban-Barry property about 200 km northeast of Val d’Or. The company has one drill turning on this part of its Windfall Lake gold project.

The discovery hole, OSX-W-16-717, returned 3.22 g/t Au over 11.6 metres. The hole was drilled 3.7 km west-northwest of the main Windfall deposit. Gold mineralization occurs within a zone of strong texturally destructive sericite and silica alteration and

andesite volcanics containing 2% to 3% pyrite stringers with tourmaline, fine grained pyrite disseminations and zones of silica fille brecciated stringers cross-cutting the interval, according to Osisko in a news release.

Thecurrent resource of the Windfall Lake deposit is 2.76 million indicated tonnes averaging 8.42 g/t Au (748,000 oz) and 3.51 million inferred tonnes at 7.62 g/t Au (860,000 oz).

GOLD: Integra begins drilling Lamaque Deep target Vancouver’s Integra Gold Corp. has begun a 2,000-metre pilot hole to reach the Lamaque Deep target at its Lamaque South project in Val d’Or. When the pilot hole is complete, probably by the end of the year, the target will be drilled with at least 15 wedged holes at various intervals. The entire program will total about 10,000 metres of drilling.

When Integra acquired the Sigma/Lamaque complex next to its Lamaque South project, experts pored over the historic data from the two past producing mines. The company says the historic data that has been compiled provides compelling evidence that down dip

extension of the Lamaque Main plug system continues at depth, particularly where the plug intersects shear structures dipping south from the Sigma mine side of the original property boundary.

The company went on to say, “Geological compilation work has also demonstrated that the Lamaque Deep target area hosts most of the gold bearing structures and favorable host rocks from both mines providing optimal gold discovery conditions: pipe-like intrusive dioritic ‘plugs,’ a favorable host rock which dips northeast towards the Sigma mine, and similar quartz-tourmaline-pyrite gold-bearing vertical and ‘fla ’ veining arrays related to shear zones.”

GOLD: Integra beings driving new ramp at Lamaque South Vancouver-based Integra Gold has begun driving an underground exploration ramp at the Lamaque South gold project at Val d’Or. The ramp will make it possible to drill closely spaced holes from underground, and it will provide access to a bulk sample.

Promec Mining, also of Val d’Or, has been awarded the $26-million contract. The necessary equipment and most of the crew is on the site. The first blast for the ramp took place this week. Th project will be complete in 12 to 15 months.

The ramp will be 5.1 metres wide and 5.0 metre high and reach a vertical depth of 180 metres below surface. Included in the work are 420 metres of lateral development in mineralized zones within

the C1 and C2 zones. Promec will use Integra’s facilities at the Triangle site for equipment maintenance and, if required, its own facilities located 3 km from the portal.

The proposed underground exploration program will also include a bulk sample of more than 20,000 tonnes with which to reconcile gold content versus resource estimates as well as to conduct detailed metallurgical tests. The ultimate size, location and timing of the bulk sample will be determined using information gathered from the results of the ongoing surface exploration drilling and from underground drilling as results become available.

NICKEL-COPPER: Balmoral releases maiden estimate for Grasset deposit Balmoral Resources of Vancouver has released the maiden resource estimate for the Grasset nickel-copper deposit at the Detour Trend in the Matagami region.

With a 1.00% NiEq cut-off grade, the indicated resource is 3.45 million tonnes averaging 1.79% NiEq. Separately the indicated tonnage grades 1.56% Ni, 0.17% Cu, 0.03% Co, 0.34 g/t Pt and 0.84 g/t Pd. Theinferred resource is 91,000 tonnes at 1.19% NiEq, or 1.06% Ni, 0.11% Cu, 0.03% Co, 0.20 g/t Pt, and 0.48 g/t Pd. The Grasset deposit is comprised of the sub-parallel H3 and H1 26 |

CANADIAN MINING JOURNAL

24-26_CMJ Oct2016_Plan Nord.indd 26

zones. The H3 zone has been intersected from the bedrock surface to a depth of approximately 550 vertical metres and remains open below that level. TheH1 zone, targeted by considerably less drilling to date, has been intersected for over 1,000 metres along strike and to a vertical depth of 450 metres. It remains open along strike to the northwest and to depth across its entire strike length.

Balmoral said the estimate focuses on the higher grade centre core of the Grasset deposit. Approximately 99% of the indicated resource is contained within the H3 zone.

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 9:15 AM

ROUTINE CARE

HELPS REDUCE WEAR & TEAR

Photos: da-kuk, iStockphoto

A LOOK AT WAYS TO CUT COSTS AND MAKE EQUIPMENT LAST LONGER

27_CMJ October2016_EMR Cover.indd 27

2016-09-21 9:18 AM

Skilled trades are

machine surgeons M

ining is a capital intensive industry filled with extensive investments in physical assets that all operate under arduous conditions, and keeping those assets productive requires maintenance, an activity that chews up a big part of operating budgets.

And, while it is likely that this state of affairs will endure, costs can be reduced while gaining a few other benefits you might not have considered.

Machinery does not last forever – it gets used and used up. It wears out, and it breaks down for other reasons – randomly. Why does it fail?

First of all, machinery is not designed to last forever, and while computer-aided designs and the use of stronger materials helps develop equipment that is lighter and stronger (without wasting excessive amounts of material on “over capacity”), machines do fail.

Engineers build in some safety factors to allow for material variability, manufacturing tolerances, safety factors, and to allow for their own uncertainty, but users of the equipment don’t know how much extra has been designed in, so they tend to push it a bit.

Not surprisingly, our assets actually do more for us than their nameplates suggest. But how much more? And, for how long? We just don’t know except by experience.

We could choose more robust designs for longer life, but we

28 |

CANADIAN MINING JOURNAL

28-30_CMJ Oct2016_EM&R.indd 28

might be more tempted to operate them beyond their stated operating range. Even if we resist that temptation and we do have more robust and longer lasting designs, they still don’t last forever, and likely not for life of mine.

If they did, their cost would be astronomical. Let’s consider that we do make well-informed asset choices, but accept the fact that they will ultimately fail.

Every physical asset has a design “envelop” – a range of performance that it is capable of achieving. Push the asset beyond that range and we overstress it. Consider a shovel being used to break rock – we damage its bucket, hydraulics and structure. It is designed to dig and transfer rock, not break it – that’s what blasting and rock breakers are for. To the operator, breaking the occasional rock with the shovel may seem expedient. We get away with it for a while, but each time it’s done, the shovel weakens, eventually it breaks down.

To be “safe,” keep the asset within the stated capability, not the stretch capability that you’ve just discovered by breaking it. Once repaired, it is likely to be weaker than it was when it was new.

In fact, all assets deteriorate with age due to factors we can only sometimes see. We can see erosion by slurries, wear on belts, chutes, truck buckets, shovel teeth, corrosion from caustics, acids and even water. But we can’t see fatigue – that gradual weakening of the metal from continued cyclical use.

Photos: youngID, iStockphoto

By James Reyes-Picknell

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 10:41 AM

s

EQUIPMENT MAINTENANCE & REPAIR S PECIA L R EPO RT *

Materials can take a lot of cycles at low stress, or fewer at high stress. If we overload our equipment we put it through more of those high stress cycles, leaving less resistance to the more common and more frequent lower stresses.

We can see how engineering and operations have their roles to play in keeping our maintenance costs down. Now let’s look at the maintenance function.

Maintenance spends money on labour, materials and support equipment (tools). Sometimes that goes through contractor hands but it is still for the same things. Maintenance can spend less, but that means doing less work. There are two ways to do less work.

Both entail working smarter.

We can become more efficient at what we are doing. Waste less time. We spend a lot of time getting parts and materials, traveling, finding drawings and manuals, finding instructions, getting special tools and support equipment, getting permits signed, waiting for operations to make systems ready for work and then release them to care.

In a process plant environment, the average maintainer spends so much time on those activities, plus lunch and breaks that he’s left with only 30% of his day on the tools. Shop environments are usually a bit better and mobile work crews much worse. They are not lazy or avoiding work either – they are usually very busy and even overstressed trying to keep up with demands.

We are paying our trades for much more, so how much is reasonable to expect? After all, we know he needs all those things to be done or he can’t get to his tools. Plant – up to 60% of his time can spent on the tools; shops – up to 80%; mobile – highly variable with all the factors to consider but let’s say about double what they achieve today.

How do we get there? Efficiency. We get better at what we do and specifically we get better at preparing for the work. Work should be planned in sufficient detail that nothing is left to doubt when the job starts. That includes identification of tools, parts, materials, consumables and even the work instructions. After planning comes staging – making sure that everything that is needed is actually there. Some mines go so far as to “kit” the parts into boxes or on pallets. This means less time wasted at stores. Going further, some mines even deliver those packages to the job site – a designated area in the shop beside the work bay or a drop off point in the process plant.

Imagine the preparation that goes into getting an operating room in a hospital ready for any specific surgery. The surgeon doesn’t commence work until everything is ready, including allowance for foreseeable contingencies. If we consider the planning activity, together with the needed co-ordination and co-operation from supply chain and production to be the equivalent of what is needed to make that operating room ready, then you get a good idea of what excellent planning will look like. Your skilled trades are your machine surgeons. Don’t make them look for their tools and parts, etc. while they are performing their “surgery”. That’s OCTOBER 2016

28-30_CMJ Oct2016_EM&R.indd 29

how you minimize the time they are forced to waste.

To do that you need planners and schedulers – sometimes the same person does both. You need to have your planning and materials processes tightly integrated with sharing of information and co-operation. You need a supply chain that can provide the needed materials without delay. Better still, you need the right inventory in stores – and that requires a lot more than following manufacturers’ recommendations. Maintenance needs to forecast much better than it does today. You want to achieve much closer to a “just-intime” inventory than today’s “just-in-case” situation.

You’ll have far more trades than planners and schedulers and warehouse staff. Those planners are highly leveraged. Each of them keeps many trades busy. Achieving 60% “wrench time”, nearly doubling it from today, justifies the cost of a few planners quite easily. So now your crews are busy and most of their time is on the wrenches where you want them. Fantastic. The good news is that we can go even further.

Efficiency isn’t everything we can do! We can also become far more effective at choosing the work we do. Yes – choosing the work. We don’t need to wait for the equipment to fail before we work on it.

Repairs following breakdown are more expensive than repairs done before the breakdowns. There’s less disruption to operations, less equipment damage to reverse, less likelihood of damaging other equipment and the work itself is often easier to do because parts are easier to get apart. They don’t become one with each other as they crash to a halt.

Equipment breaks down in ways that are related to age or usage and randomly. Very few failures outside of electronics are sudden and completely unpredictable. Most failures give us some warning that they are occurring before they get so far as to cause us to lose the asset’s capability. If we understand the specific failure mechanisms at play and their causes, we can often do something proactively to either avoid the failure (preventive) or forecast when it will occur (predictive) so we can act before the random failure progresses too far.

We have methods to identify this proactive work. The simplest is to follow manufacturers’ recommendations, but they are often flawed. Arguably the manufacturer benefits from having you follow

Your skilled trades are your machine surgeons. Don’t make them look for their tools and parts, etc. while they are performing their “surgery”. That’s how you minimize the time they are forced to waste.

CANADIAN MINING JOURNAL

| 29

2016-09-21 9:34 AM

EQUIPMENT MAINTENANCE & REPAIR prescriptive preventive maintenance routines and overhauls, but that’s not why their recommendations are so flawed. Few manufacturers actually operate and maintain their own products. They don’t really know what goes wrong. They only know what you buy from them – parts. They may assume they broke and develop some maintenance recommendations around that, but more likely they rely on the good old, “we’ve always recommended that”. Someone, likely a long time ago, made recommendations that have stood the test of time in technical manuals and instructions. The manufacturer has little reason to question and change them. But you do.

The biggest exception to this are the mobile equipment manufacturers. They know their equipment, they maintain a lot of it, they do so in your operating environments, they have large numbers of units in the field and they get a lot of customer feedback.

They are more likely to employ engineers to focus on reliability.

As a rule, their recommendations are good, although they may be a bit on the conservative side. After all, even with all their knowledge, whatever they recommend to your sea level mine is likely the same for the folks at higher altitudes or in hot and cold climates.

You will always know more than they do about your environment.

You know how the equipment works, how it fails, the operating conditions you expose it to, the overloading, how long it’s idle, how often it starts and stops, the inclines you climb, the altitude you run your engines at, the cleanliness of the fuel you use, the quality of lubricants, the care your operators give the equipment,

the temperatures, dust, humidity, etc. In short, you know your operating context, and it matters. Each of those factors influences failures. No manufacturer tailors their instructions to your unique environment – only you can do that.

The best method for doing that comes from the airline industry, reliability centered maintenance (RCM). Arguably it is overkill for low criticality assets, but it will pay for itself many times over if used for your critical assets. It produces recommended actions to manage failure consequences. Those actions include: maintenance (preventive, predictive), operator tasks (like oil checks, circle checks, listening for abnormalities), testing for already failed protective devices, changes that address human error (training, procedures, check lists) and allowing some items (always with very low consequences) to run to failure.

The most cost effective maintenance programs will comprise a blend of those strategies. You need to follow the recommendations.

That gets us back to how well you comply with work schedules.

Planning and scheduling alone won’t improve equipment reliability. RCM (and its more streamlined cousins) will, if you follow the schedules they produce. We have a bit of a chicken and egg dilemma. You need to be capable of following schedules in order for RCM’s outputs to be executed properly. You also need to execute the outputs properly and on schedule before you will improve reliability enough that schedule compliance becomes easy to achieve.

You need to work on both of these in parallel. As schedule compliance improves your ability to execute proactive work on time improves. As you do that, your failures will drop taking reactive work down. That frees up repair crews to do more proactive work.

Equipment is always designed with an inherent level of achievable reliability even if the designer can’t tell you what that is. They rarely attempt to do define it, because achieving it is dependent on how well you can maintain it far more than on how well they designed it. However, if you maintain it well based on an RCM type of analysis and operate it within its limits, you should then achieve what the asset is capable of achieving. If that’s not up to what you need, then you need to cycle back to engineering and equipment selection – closing the reliability loop.

Costs come down from being more efficient at execution of our work and more effective at doing the right work. The technical prize is high reliability. That means fewer breakdowns. The efficient work execution means less downtime for those fewer repairs. Operations gains uptime and stability. The mine gets productivity at a lower cost. There are also gains in safety (less breakdown means lower risks) and environmental compliance (less failure means fewer leaks and emissions). Both of those can ultimately lead to lower insurance premiums. The increased production stability increases confidence in your forecasts and potentially better market performance.

Maintenance and reliability are far more than cost centers – they are major contributors to your whole mine performance. CMJ JAMES REYES-PICKNELL is a Mechanical Engineer (University of Toronto 1977) with 39 years in Maintenance and Asset Management, and the author of “Uptime – Strategies for Excellence in Maintenance Management,” now in its 3rd edition.

30 |

CANADIAN MINING JOURNAL

28-30_CMJ Oct2016_EM&R.indd 30

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 2:35 PM

T:8.125” S:7”

After decades of research and severe testing, we ended up with a synthetic diesel engine oil that helps you get more out of your mining equipment – and your business. Mobil Delvac 1™ extends oil drain intervals and helps with fuel economy, which means more work time and less downtime. Learn more at mobildelvac.ca

Get tons more done between oil changes, literally S:10”

CMJ Octber2016_Ad pages.indd 31

2016-09-21 8:13 AM

T:10.75”

Copyright © 2016 Exxon Mobil Corporation. All rights reserved. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries unless otherwise noted.

PREPARING

MINING FLEETS FOR AN ENGINE

REVOLUTION

I

n December, we will see the introduction of API CK-4 and FA-4; a development which represents the biggest industry overhaul in heavy duty engine oil specifications for decades.

Driven by changes in environmental policy, and the need to support the rapid development of heavy duty vehicle technology, the new specifications set a new standard for diesel engine lubricants. With just a couple of months to go until these new oils are available, now is the time for heavy equipment operators to prepare for the transition.

What is different about the new oils?

Compared to oils currently on the market, API FA-4 oils are notably thinner, or lower viscosity. This reduces the amount of viscous drag from the oil in the engine, allowing them to run more efficientl and use less fuel. API CK-4 licensed oils will offe backwards compatibility, allowing use in the vast majority of older 32 |

CANADIAN MINING JOURNAL

32-33_CMJ Oct2016_Engine Oil.indd 32

diesel engine vehicles that ran previous oil categories (CJ-4, CI-4 Plus, CI-4 etc).

Both oil categories are also set to be more robust and resistant to oxidation. This has become necessary in recent years as newer engines are designed to run at higher temperature in order to improve operating efficiency However, higher temperatures accelerate the rate of oxidation and oil thickening. Improving oxidation resistance may mean that, alongside proper oil filtration longer oil drain intervals may be achieved.

Finally, and of particular relevance to mining fleet operators, CK-4 and FA-4 oils are designed to improve resistance to aeration and increased shear stability. Improving aeration control (i.e. resistance to foaming) is important for off-road engines where, in some cases, more air than usual could become entrained in the engine oil. A high level of air entrainment is dangerous, particularly at the bearings where a suitable oil film is critical to protect them

Photos: Kesu01, iStockphoto

By Brian Humphrey

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 9:20 AM

EQUIPMENT MAINTENANCE & REPAIR S PECIA L R EPO RT *

Taken together, these design improvements will provide enhanced performance, greater hardware protection, and may reduce vehicle downtime – a major source of financial drain for fleet operators. However, it is crucial that mining fleet operators understand which sub-category will be most suitable for their vehicles.

Moreover, users will benefit from the increased robustness of CK-4 oils over the previous and current CJ-4 oils, enabling increased performance and protection gains.

Meanwhile, API FA-4 oils will be specifically designed for newer on-road engine designs which aim to meet the new legislation around emissions and fuel economy. However, feedback from engine manufacturers has shown that only some of the on-road Class 8 engine producers will take advantage of new FA-4 oils at the start of the category.

As such, FA-4 oils are not expected to have an immediate impact on mining fleets and off-road OEMs will likely recommend use of CK-4 oils.

The API has recently announced the introduction of a special service ‘donut’ symbol to help consumers identify the FA-4 and CK-4 diesel engine oils right from the packaging label. All heavy duty operators will need to consult their engine OEMs for specifi

guidance regarding the recommended viscosity grade for their engines and which oils will be best suited for their business.

Time to prepare At Petro-Canada Lubricants, we see the introduction of CK-4 and FA-4 as not only an opportunity to improve the efficienc and carbon footprint of mining fleets, but also a chance to recognize the potential to cut costs and increase profitability While every fleet business will be affected by the new specifications, the impact will vary depending on the size and type of fleet At this point, many OEMs still haven’t announced whether API FA-4 and/or API CK-4 oils will be required for 2017 and newer trucks. It is likely that many fleets owners will be able to use only API CK-4 oils. More will be known closer to December 1, 2016.

In the meantime, it is essential that operators begin preparations now to ensure that they are suitably equipped ahead of the December 2016 launch.

CMJ Brian Humphrey is OEM Technical Liaison, Petro-Canada Lubricants, Suncor.

We cover a lot of ground up here...

In Canada we steer our customers and prospects to the best products to solve piping, wear and corrosion problems. Our company is changing. New products and applications. The best solutions. New changes provide extra tools in our tool belt to provide you with the best wear solution results…We are enjoying the challenges.

New company name. New products.

Same mission for Kalenborn Canada and its Partners.

www.abresist.com OCTOBER 2016

32-33_CMJ Oct2016_Engine Oil.indd 33

Kalenborn Canada Inc. 3535, St-Charles Blvd, Suite 403 Kirkland QC H9H 5B9 Tel: 450 455-0398 • Fax: 450 455-3104 E-mail: seb@abresistkalenborn.ca www.abresist.com CANADIAN MINING JOURNAL

| 33

2016-09-21 9:21 AM

ADVERTORIAL

TOP 5 FEATURES IN A TRUCK BUILT TO WORK You know each work day brings a different story, and a host of challenges. You don’t stop until it’s perfect, and surely you want your truck to work just as hard. That’s why you should have features that will help you get through anything. Here are the TOP 5 features any contractor should be looking for in a truck built to work.

Trailer Reverse Guidance System With larger trailers, visibility can be your biggest challenge. Th 2017 Ford Super Duty is the only heavy-duty truck to offer a Traile Reverse Guidance System to help out. Up to 6 cameras work together to improve sight lines, with side-view mirror cameras presenting views of the trailer that dynamically adjust as the trailer turns to help limit blind spots. Visual guides displayed in the centre stack screen give you a clear indication of where the trailer is going, and the guidelines change in synch with the movements of the steering wheel. A dynamic steering wheel icon even indicates which direction to turn the wheel to keep the trailer going in a straight line. The Super Duty’s new class-exclusive system also allows th mounting of an integrated camera at the rear of the trailer to show what is behind the trailer on the centre stack screen.

four 25-amp switches (ignition on) for a convenient way to connect a variety of aftermarket accessories and equipment

Rear Seat Storage and Flat Load Floor Not everything goes in the truck bed. When you need to carry cargo inside the cab, it’s nice to have a truck designed to make it convenient. Both the 2017 Ford Super Duty’s SuperCab and Crew Cab models have a class-exclusive rear flat load floor that help ma it easy to load large cargo. The SuperCab features rear-hinged door that open at 170 degrees for easy loading, and the 4-door Crew Cab offers a new available class-exclusive folding, lockable under-sea box for storing and securing loose or valuable items.

The best conventional towing For every time you need to bring it, your truck needs to handle it.

The all-new Super Duty® has best in class towing across the board With a max gooseneck towing of 32,500 lbs, and conventional towing capacity of 21,000 pounds — Super Duty offers greate capability than ever before, and higher than any other heavyduty pickup. To make such extreme towing possible, Super Duty features a stronger, sturdier, fully boxed frame made of over 95 percent high-strength steel; heftier axle, suspension and drivelin components; plus a factory-installed weight-carrying hitch built into the frame.

More upfitter Switche Your job often entails complicated setups and your truck becomin a mobile office. The answer to that is power, and the more better. The 2017 Ford Super Duty now features up to 2 400w A outlets, and six available factory-installed auxiliary upfitter switches.

The system includes two 40-amp switches (ignition on or off) pl

34 |

CANADIAN MINING JOURNAL

34-35_CMJ Oct2016_Ford Advertorial.indd 34

The best payload capacity available When work isn’t for the faint of heart, you need a truck capable of pulling its own weight and then some. Ford managed to increase the payload of the 2017 Super Duty® by reinvesting its body weight saving in the places that count: including making its frame 24 times stiffer. Its 7,630-lb. maximum payload rating is not only highe than ever, it’s also the best in its class. New available features like the class-exclusive BoxLink system, centre high-mount stop lamp camera, LED box lights, class-exclusive remote tailgate release and power-locking tailgate, and class-exclusive tailgate step also transform the pickup bed into a multi-use workspace.

Whatever you take on, these features will absolutely help you tackle it with confidence. The next ti you go truck shopping, just make sure the one you pick comes with them. n WWW.CANADIANMININGJOURNAL.COM

2016-09-21 8:23 AM

†

YOU’RE IN IT FOR THE LONG HAUL. BUT PULLING MORE THAN YOUR OWN WEIGHT MEANS YOU’RE DOING ALL THE HEAVY LIFTING. WHEN YOU’RE THIS DETERMINED, THERE’S NO GOOD TIME TO PACK IT IN. YOU POWER ON.

NOTHING STOPS YOU. WHICH IS WHY YOU NEED A TRUCK THAT’S

MEET THE ALL-NEW 2017 SUPER DUTY®.

BEST-IN-CLASS MAX. TOWING 32,500 LBS *

BEST-IN-CLASS PAYLOAD 7,630 LBS **

BEST-IN-CLASS 440 HORSEPOWER ***

BEST-IN-CLASS 925 LB-FT OF TORQUE ***

FORD.CA/SUPERDUTY

Vehicle(s) may be shown with optional features. *On F-450 DRW with 6.7L-V8 diesel engine. When properly equipped with available factory-installed equipment. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR vs. 2016 competitors. **On F-350 DRW with 6.2L-V8 gas engine. When properly equipped. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR vs. 2016 competitors. ***On F-250/F-350 with 6.7L-V8 diesel engine with automatic transmission. When properly equipped. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR vs. 2016 competitors. †F-Series is the best-selling line of pickup trucks in Canada for 50 years in a row, based on Canadian Vehicle Manufacturers’ Association statistical sales report up to 2015 year-end. ©2016 Ford Motor Company of Canada, Limited. All rights reserved.

34-35_CMJ Oct2016_Ford Advertorial.indd 35

2016-09-21 8:22 AM

IT’S GETTING TOUGHER DURON ™ next generation. The most durable heavy duty

diesel engine oils we’ve ever made. API CK-4 and FA-4 ready - to protect your engines and drive your productivity, in the hottest engines and coldest climates, however tough it gets. Because tough is just the way we like it.

DURON. THE TOUGHER. THE BETTER.

REVEALED: OCT 4TH. AVAILABLE: DEC 1ST 2016.

DURONthetougherthebetter.com

Petro-Canada is a Suncor business TM Trademark of Suncor Energy Inc. Used under licence.

CMJ Octber2016_Ad pages.indd 36

2016-09-21 8:13 AM

PROFESSIONAL DIRECTORY DON’T MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2016.

List in the Cost as low as Canadian Mining $250.00 per issue Journal’s Contact: Professional ROBERT SEAGRAVES 416-510-6891 Fax: 416-447-7658 Directory rseagraves@canadianminingjournal.com

Cost Listasin theCONTACT: JOELLE GLASROTH low as Mining Robert Seagraves Canadian 416-510-5104 Fax: 416-447-7658 $250.00 416-510-6891jglasroth@canadianminingjournal.com Fax: 416-447-7658 Journal’s Professional rseagraves@canadianminingjournal.com per issue Directory

ADVERTISERS INDEX Dux Machinery. . ................ 30............ duxmachinery.com Ford Motor Company. ........ 1 and 34/35............ ford.ca of Canada Galaxy Broadband............ 21........ galaxybroadband.ca Hard-Line... ....................... 7.................... .. hard-line.com Hercules Sealing. . .............. 37................. HerculesCA.ca Imperial Oil...................... 31................. mobildelvac.ca Kalenborn Canada. ........... 33......... abresistkalenborn.ca Marlink............................. 23................. .... marlink.com

Metso. .............................. 40............ metso.com/mining Norda Stelo. ..................... 20................. . . . . . . norda.com Petro Canada DURON. ...... 36......... herecomespc11.com Petro-Canada Hydrex......... 2................... tryHYDREX.com Sandvik. ........................... 39.......... mining.sandvik.com Siemens............................ 4............... siemens.ca/mining SRK

. ................................

&

SAVE UP TO 50% WITH MULTI-USER ACCOUNTS

13................. . . . . . . . . . . . srk.com

Empower Your Team With Analysis From The Northern Miner

Save Up to 50% with The Northern Miner Multi-User Account Subscriptions Each member of your team can have their own access to reliable, timely and informed analysis of global mining and exploration activity.

For pricing and other inquiries please contact Laura Arnold at

larnold@glacierbizinfo.com or 1-888-502-3456 ext. 43564

OCTOBER 2016

37_CMJ October2016_Directory.indd 37

CANADIAN MINING JOURNAL

| 37

2016-09-21 9:23 AM

UNEARTHING TRENDS

Staying a step ahead of cyber attackers

By Abhay Raman

I

n the last eight years, there have been 10 large-scale cyber hacks at mining companies that have caused major damage, including significant data breaches. The bad news? The frequency of these types of attacks is increasing, and fending off hackers in a rapidly changing environment is no easy task.

But on the flip side, companies can make themselves less attractive to cyber attackers. The first step is to determine exactly where they’re vulnerable – before a threat becomes serious. Here are five things companies can do now to proactively ward off cyber threats.

Understand your risk exposure

The entire mining sector – from urban corporate offices to rural mine sites – has a target on its back. Mining giants are attractive to attackers because of their relationships with governments and integration with global supply chains. When attackers are successful, it’s typically because companies simply don’t invest in cyber security like they need to. According to a new EY report Are you protecting the right resources, 76% of companies say they don’t have the budget for comprehensive plans. Given the number of recent breaches, investing in a security system is no longer optional. Competitors, hacktivists and state-sponsored groups all have something to gain once they reach the motherlode.

Identify critical information and assets

Attackers know what they want: confidential information, intellectual property and M&A details. But the biggest threat right now is the industrial control systems – if a hacker is able to control the mine remotely, it puts safety, security and all the mine’s information at risk. Furthermore, hackers can install malware and demand ransoms in order to restore functions. That makes the urgency to resolve the situation and the possible damage accomplished by the attack even more significant. To combat this, security teams need to develop overarching cyber strategies, but also specific strategies to protect operational technology, critical and personal information and a mine’s infrastructure.

Admit weaknesses in current cybersecurity program

Many mining companies admit their security systems are vulnerable to attack. That’s in part because so many of their technologies and systems are integrated. A vulnerability intelligence program is a key tool for finding out how those systems are 38 |

CANADIAN MINING JOURNAL

38_CMJ Oct2016_EY Trends.indd 38

working together, but only 27% of respondents to EY’s Global information Security Survey say they have one – and almost half (47%) admit they can’t detect a sophisticated attack.

Map out priorities

An air-tight cybersecurity plan should focus on: • Operational technology: This function should work with information technology to make sure the architecture around remote access is well-secured.

• Emerging technologies: Mobile technologies, machinery auto mation and cloud integration are often adopted quickly, and before they can be tied into cyber security systems. Beware: their ease of use can provide a window of opportunity for hackers.

• M&A: These generate a huge amount of confidential informa tion. Security needs to be looped-in early in the process to make sure that information is safe and both companies involved are protected.

• Third party management: Different parts of the supply chain can have fewer security controls and can put the whole eco system at risk. History shows us that third party vendors can be used as a launch point into a mining company’s system.

Any data generated between two companies needs to be pro tected, shared and stored securely.

Validate the system is working

Once a security system is implemented it needs to be monitored by the entire team: security leaders, senior management, risk advisors and information systems. One of the most effective ways to do this is through regular attack and penetration tests. And, just like any other piece of equipment, security systems need maintenance and quality control. Any upgrades can be anticipated and implemented in a cost-efficient way.

Almost every year, we find cyber security to be a top risk to the mining and metals sector – a risk that isn’t going away any time soon. The threats are real, effective and on the rise. Companies can’t turn a blind eye any longer. They need to make the right investments and allocate the appropriate resources to protect their livelihood and fend off potentially disastrous cyber attacks, before it’s too late.

CMJ ABHAY RAMAN, is EY’s Cyber Risk Services Leader.

WWW.CANADIANMININGJOURNAL.COM

2016-09-21 9:24 AM

TRUST THE NUMBERS SANDVIK 365. EXPERTS YOU CAN COUNT ON. People tell you stories about quality, commitment and innovation. But for the real story, take a close look at the numbers. With Sandvik 365, you can rely on our highly trained expert engineers to get you the right parts and services to ensure safe operation, low operating costs and service intervals that can be extended by as much as 50%.

Want to know what you can count on saving with Sandvik 365?

Find out more at mining.sandvik.com/sandvik365.

Test results are to be considered as results reached under certain and controlled test conditions.

These test results should not be treated as specifications and Sandvik does not guarantee, warrant or represent the outcome of test results in any or all circumstances.

CMJ Octber2016_Ad pages.indd 39

MINING.SANDVIK.COM

2016-09-21 8:14 AM

Delivering the right mix of mining services, so you always make the most of your resources.

Now and in the future.

That’s how we make the big difference, the Metso Way.

True performance in today’s complex mining operations is measured by getting the most out of your plant processes. Metso is meeting this challenge with customized service solutions that boost profitability: •

• •

Life Cycle Services: we take the entire range of Metso services and bundle them into customizable, easily-manageable packages to help you meet your business goals.

Field Services: Metso’s highly-trained, certified field service teams are here 24/7 to maximize your equipment’s availability.

Repair Services: Metso provides a full set of services to repair and refurbish equipment so that it is returned to as new, or latest-design condition.

Combining our global service network and deep industry knowledge with your operational expertise ensures that we provide the best solutions to deliver increased productivity, eliminate waste, and reduce risk.

Learn more at metso.com/mining #TheMetsoWay

CMJ Octber2016_Ad pages.indd 40

2016-09-21 8:14 AM