Canadian Mining Journal October 2017 by The Northern Miner Group

c a n a d a

â&#x20AC;&#x2122;

f i r s t

m i n i n g

p u b l i c a t i o n

MINING IN

Quebec & the Maritimes

SPECIAL REPORT:

Getting vehicles winter-ready

OCTOBER 2017 | www.canadianminingjournal.com | PM # 40069240

01_CMJ October2017_cover.indd 1

2017-09-27 12:44 PM

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 October2017_Ad pages.indd 2

MINING.SANDVIK.COM

2017-09-26 12:23 PM

CANADIANMINING

OCTOBER 2017 VOL. 138, NO. 08

JOURNAL

FEATURES

12 Q&A with CEMI president and CEO Doug Morrison on the path forward for the mining industry.

CMJ

MINING IN QUEBEC 16 Stornoway Diamond opens the first diamond mine in Quebec.

•

25 How the ambitious Plan Nord initiative is faring three years after its relaunch.

CANADIAN MINING JOURNAL

27 THE EAST COAST 28 Trevali thinks zinc in New Brunswick.

31 Rambler Metals & Mining ramps up at Ming.

36 Preparing heavy duty vehicles for the winter

months.

39 How miners can benefit from having a cold weather maintenance program in place.

DEPARTMENTS 5 EDITORIAL | Infrastructure is back in vogue. 6 UNEARTHING TRENDS | Zahid Fazal, Quebec Mining and Metals leader at EY Canada outlines the top business risks for Quebec mining companies. 8 FIRST NATIONS | AFN Ontario Chief Isadore Day comments on the reorganization of Indigenous and Northern Affairs Canada. 9 FAST NEWS | Updates from across the mining ecosystem. 42 CSR & MINING | Lawyer Michael Torrance advocates for a national plan on business and human rights.

www.canadianminingjournal.com OCTOBER 2017

03_CMJ October2017_Contents.indd 3

36 ABOUT THE COVER

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 |

2017-09-27 1:10 PM

W W W. B E L R AY. C O M

Maintenance Cost Savings Decrease Downtime Extend Component Life Reduce Consumption Outstanding Extreme Pressure, Shock Load and Anti-Wear Properties Made in the USA

CMJ October2017_Ad pages.indd 4

2017-09-26 12:23 PM

FROM THE EDITOR

CANADIANMINING October 2017 Vol. 138 – No. 8

38 Lesmill Rd. Unit 2, Toronto, Ontario M3B 2T5 Tel. (416) 510-6789 Fax (416) 510-5138 www.canadianminingjournal.com

JOURNAL

CMJ

Editor-in-Chief Alisha Hiyate 416-510-6742 ahiyate@canadianminingjournal.com CANADIAN MINING JOURNAL Twitter: @Cdn_Mining_Jrnl

•

News Editor Marilyn Scales mscales@canadianminingjournal.com Production Manager Jessica Jubb jjubb@glacierbizinfo.com Manager of Product Distribution Jackie Dupuis 403-209-3507 jdupuis@jwnenergy.com Publisher & Sales Robert Seagraves 416-510-6891 rseagraves@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 Robert Seagraves at 416-510-6891. 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: 1-800-387-2446 ext 3505; Fax: 403-245-8666 ; E-mail: jdupuis@jwnenergy.com Mail to: Jackie Dupuis, 2nd Flr. 816–55th Ave. N.E. Calgary, Alberta T2E 6Y4. We acknowledge the ﬁnancial support of the Government of Canada.

OCTOBER 2017

05_CMJ October2017_Editorial.indd 5

Infrastructure back in vogue Alisha Hiyate

tornoway Diamond officially opened Quebec’s first diamond mine, Renard, last October. Located in the Otish Mountains in north-central Quebec, 360 km north of Chibougamau, the mine, would never have been built without road access. Plan Nord, the Quebec government’s plan to open up more of the resource-rich province to development, was enacted just in time to make Renard possible. Launched originally in 2011 and then relaunched in 2014, the plan calls for $2.7 billion in total public and private investment between 2015 and 2040. Under the auspices of Plan Nord, a 240-km all-weather road from Chibougamau to Renard was completed in September 2014. The first 143 km was built by the province and the last 97 km by Stornoway – with financing made available by the province. It’s fitting that at the same time we were putting together this issue, with a focus on Quebec, there have been two new infrastructure announcements in other parts of Canada aimed specifically at enabling mining activity. On Aug. 21, the Ontario government announced that it is moving ahead with its long-promised $1-billion all-weather road into the Ring of Fire. And on Sept. 2, the federal and Yukon governments committed $360 million ($247.4 million from the feds and $112.8 million from the territory) to improve road access in two mineral-rich areas of the territory: the Dawson Range in central Yukon and the Nahanni Range in southeastern Yukon. The “Yukon Resource Gateway Project” will help upgrade over 650 km of road and build or replace bridges, culverts and stream crossings in the two areas. In a press release, the governments explained the investment would “set the stage for the long-term development of the territory’s growing mining sector.” In the case of the Ring of Fire, the Ontario government originally pledged $1 billion toward road infrastructure in 2014. Three years later, it has only come to an agreement with three First Nations communities. It has agreed to fund an east-west road connecting the Webequie and Nibinamik communities to the provincial highway network north of Pickle Lake, and continuing through Webequie to the Ring of Fire. It has also committed to funding a northsouth road to Marten Falls First Nation, with an a possible extension to the Ring of Fire. Environmental assessments are expected to begin by January, and construction is planned to start in 2019, if all approvals are granted. However, not all the First Nations in the region are onboard. Eabametoong and Neskantaga, who were not part of the announcement, have made it clear that the development can’t proceed without them. And even the communities that were part of the announcement say they’ve only agreed to a study on the proposed development. Provided it moves ahead, a road into the Ring of Fire would most benefit Noront Resources and its Eagle’s Nest nickel-copper-PGM project – as well as the isolated First Nations communities in the region. But it would certainly also encourage a lot of mineral exploration in an as-yet underexplored area of the province. Neither announcement is the bold vision that Plan Nord represents. But they are a step in the right direction, and could provide a nice shot in the arm for a still sufCMJ fering industry. CANADIAN MINING JOURNAL |

2017-09-27 12:45 PM

UNEARTHING TRENDS

The top business risks for Quebec mining companies by Zahid Fazal

rebound in commodity prices and a lower Canadian dollar have injected fresh momentum into the mining industry in Quebec. In some ways, this is a continuation of the strengthening we’ve seen across the industry since the financial crisis. Things have improved significantly since 2008, with producers across the province shoring up their balance sheets and holding much healthier cash balances. And on the cost side, miners are continuing to drive down expenses through a focus on productivity and the subsequent automation and digitization of their operations. Even with these positive indicators, insufficient financing and volatility in the mining industry continue to persist, and a number of other significant business risks pose challenges for Quebec producers. Based on EY’s 2017 ranking of the business risks facing mining and metals, the following three risks stand out as particularly relevant for producers and explorers based in the province. Productivity While mining companies continue to focus on productivity gains, the risk of falling behind remains real. As a result, productivity is the top risk for CEOs and their companies’ boards. By adopting a manufacturing mindset, miners can manage variability and hence improve productivity. In doing so, digital alignment, a market-to-mine approach and a zeroloss focus culture will significantly close the integration gap. Digital technology will remain critically important to driving further productivity improvements for mining companies. For example, using technology to create a complete digital picture of an orebody can help with plant optimization through real-time recovery management, allowing producers to accurately forecast feed types. Advanced modelling can also help producers understand bottlenecks in their value chains, which can be difficult to study as they are spread over long distances. Finally, using predictive analytics to extend maintenance windows and automated planning and scheduling will help further drive down costs and optimize asset productivity. All of these have the potential to drive cost savings in operating productivity, and even have a positive impact across areas like back-office process and risk management. Cash optimization Strengthening commodity prices and cost-cutting measures 6 | CANADIAN MINING JOURNAL

6_CMJ Oct2017_EY trends.indd 6

Recent data does show that global drilling has increased as the sector returns to growth. However, challenges remain as exploration has become more expensive as reserves are harder to access, more remote or on environmentally sensitive land.

have led to stronger cash generation and improved balance sheets. However, the industry’s transition back into growth mode will create new cash demands. Working capital investment is set to rise due to increased activity. In addition, the curtailment of sustaining capital expenditures, which helped miners optimize cash, is unlikely to continue aggressively as in recent years. Optimizing these competing capital demands will be critical as commodity prices continue to be volatile.

Resource replacement After peaking in 2012, exploration budgets have fallen dramatically around the world and haven’t rebounded. To put this in context, investment in exploration was down 66% to US$6.8 billion in 2016, from US$20.5 billion four years earlier, according to a March 2017 report by S&P Global Market Intelligence. The picture in Quebec has been no different, with lower investments in future projects. Recent data does show that global drilling has increased as the sector returns to growth. However, challenges remain as exploration has become more expensive as reserves are harder to access, more remote or on environmentally sensitive land. To overcome these challenges, in addition to bolstering exploration spending, miners are forming strategic partnerships with junior miners to expand their reserve base, acquiring existing projects or mines, as well as improving technology to achieve higher exploration success rates. The degree to which these business risks impact any given producer will vary, but Quebec-based mining and metals companies have to pay attention to them in the years ahead, and develop proactive strategies for mitigating challenges long CMJ before they are knocking on the front door. ZAHID FAZAL is partner, Assurance Services, and the Quebec Mining and Metals Leader at EY Canada

WWW.CANADIANMININGJOURNAL.COM

2017-09-27 12:47 PM

Trusted provider of global mining & exploration intelligence since 1915.

100 Years OBAL MINING NEWS OF GL

Geotech_Earlug_2015_VTEM_Colour3.pdf 1 2015-09-25 9:59:47 AM

VTEM™ ZTEM™ Gravity Magnetics Radiometrics Data Processing Interpretation 905 841 5004 | geotech.ca

SPECIAL FOCUS: QUEBEC / 7–10

One of The Largest Silver Discoveries of 2014 TSX.V: GRG www.goldenarrowresources.com

Editorial

Canadian Mining Hall of Fame

Discipline pays off / 4

Five new inductees / 5

OCTOBER 5–11, 2015 / VOL. 101 ISSUE 34 / GLOBAL MINING NEWS · SINCE 1915 / $3.99 / WWW.NORTHERNMINER.COM

Liberals, Greens Q&A on mining in Canada

Geotech_Earlug_2015_VTEM_Colour3.pdf 1 2015-09-25 9:59:47 AM

VTEM™ ZTEM™ Gravity Magnetics Radiometrics Data Processing Interpretation 905 841 5004 | geotech.ca

SPECIAL FOCUS: QUEBEC / 7–10

One of The Largest Silver Discoveries of 2014 TSX.V: GRG www.goldenarrowresources.com

Editorial

Canadian Mining Hall of Fame

Discipline pays off / 4

Five new inductees / 5

Mining sector forced to innovate

One of The Largest Silver Discoveries of 2014 TSX.V: GRG www.goldenarrowresources.com

Canadian Mining Hall of Fame

Discipline pays off / 4

Five new inductees / 5

Mining sector forced to innovate TECH CONFERENCE

| New technology stokes productivity gains, but ‘no silver bullet’

ELECTION 2015 | Credibility and accountability are top concerns

BY ALISHA HIYATE ahiyate@northernminer.com

BY JOHN CUMMING jcumming@northernminer.com

he mining sector is facing a DarW delegates at the winian moment, first annual Technology and Innovation in Mining conference in Toronto heard in September. Just as species deal with changes in their climate, food sources or other circumstances, miners dealing with mounting cost, social and technical pressures must innovate if they want to survive, research group AMIRA International managing director Joe Cucuzza said. “If you look at Darwinian evolution, there are more species that go extinct than actually quickly adapt,” Cucuzza told the conference. “The point is that in our industry, we need to adapt quickly. COAL OUTLOOK: WOOD MACKENZIE SEES RAY OF HOPE / 4 Those that are slow to adapt, unfortunately, are going to go extinct.” The conference, organized by Dubai-

BY JOHN CUMMING jcumming@northernminer.com

Mining sector W forced to innovate

ith Canadians looking ahead to a federal election on Oct. 19, The Northern Miner submitted mining-related questions to the leaders of the four major political parties running across CanTECH CONFERENCE | New technology stokes productivity gains, but ‘no silver bullet’ ada. The following are the answers from the Liberal Party of Canada ELECTION 2015 | BY ALISHA HIYATE leader Justin Trudeau and Green Party Credibility and ahiyate@northernminer.com accountability are of Canada leader Elizabeth May and top concerns their parties: he mining sector is facing a DarThe Northern Miner: In recent years winian moment, delegates at the BY JOHN CUMMING first annual Technology and Injcumming@northernminer.com the federal has streamlined novation in Mining conferencegovernment in Toronto heard in September. environmental permitting for miners ith Canadians looking Just as species deal with changes in byfood trying tooravoid ahead to a federal election their climate, sources other duplicating provinon Oct. 19, The Northern circumstances, miners dealing with efforts. Do you support this apMiner submitted mining-related quesmounting cial cost, social and technical tions to the leaders of the four major pressures must innovate ifDoes they want to federal government proach? the political parties running across Cansurvive, research group AMIRA Interhave adirector unique role to play in avoiding ada. The following are the answers national managing Joe Cufrom the Liberal Party of Canada cuzza said. catastrophic tailings dam failures, such leader Justin Trudeau and Green Party “If you look at Darwinian evolution, of Canada leader Elizabeth May and there are more that go extinct as species the Mount Polley spill in B.C. in their parties: than actually quickly adapt,” Cucuzza 2014?“The point is that The Northern Miner: In recent years told the conference. the federal government has streamlined in our industry, we need to adapt quickly. Justin Trudeau/Liberal Party: The environmental permitting for miners Those that are slow to adapt, unfortuby trying to avoid duplicating provinnately, are going to go extinct.” Harper government has eroded the cial efforts. Do you support this apThe conference, organized by Dubaicredibility of Canada’s environmental proach? Does the federal government See TECHNOLOGY / pg. 2 have a unique role to play in avoiding reviews by narrowing their application, catastrophic tailings dam failures, such Autonomous haulage trucks on the move at Rio Tinto’s West Angelas iron ore mine in Australia’s Pilbara region. as the Mount Polley spill in B.C. in limiting public participation and slash2014? ing the capacity of the federal governJustin Trudeau/Liberal Party: The Harper government has eroded the ment to protect the environment. credibility of Canada’s environmental reviews by narrowing their application, They have ended over 50 years of limiting public participation and slashing the capacity of the federal governenvironmental oversight in Canada ment to protect the environment. by repealing the Canadian EnvironThey have ended over 50 years of environmental oversight in Canada mental Assessment Act so that the by repealing the Canadian Environmental Assessment Act so that the federal government can sidestep enfederal government can sidestep environmental reviews of potentially vironmental reviews of potentially harmful projects. harmful projects. Without public trust, Canada’s environmental assessment processes are Without public trust, Canada’s enincreasingly paralyzed. Not only are vironmental assessment processes are we not doing a good enough job at protecting our environment, we are increasingly paralyzed. Not only are not getting our resources to market. We need clear and efficient processes we not doing a good enough job at that have reasonable, evenhanded protecting our environment, we are rules, clear beginning and end points and decisions that can be relied on. not getting our resources to market. We will launch an immediate, public review of Canada’s environmental We need clear and efficient processes assessment processes. Based on this that have reasonable, evenhanded review, a Liberal government will rules, clear beginning and end points See ELECTION / pg. 3 and decisions that can be relied on. We will launch an immediate, pubCOAL OUTLOOK: WOOD MACKENZIE SEES RAY OF HOPE / 4 lic review of Canada’s environmental assessment processes. Based on this review, a Liberal government will

905 841 5004 | geotech.ca

Editorial

OCTOBER 5–11, 2015 / VOL. 101 ISSUE 34 / GLOBAL MINING NEWS · SINCE 1915 / $3.99 / WWW.NORTHERNMINER.COM

Liberals, Greens Q&A on mining in BY ALISHA HIYATE Canada ahiyate@northernminer.com

| Credibility and accountability are top concerns OCTOBER 5–11, 2015 / VOL. 101 ISSUE 34 / GLOBAL MINING NEWS · SINCE 1915 / $3.99 / WWW.NORTHERNMINER.COM

VTEM™ ZTEM™ Gravity Magnetics Radiometrics Data Processing Interpretation

| New technology stokes productivity gains, but ‘no silver bullet’

ELECTION 2015

Liberals, Greens Q&A on mining in Canada

Geotech_Earlug_2015_VTEM_Colour3.pdf 1 2015-09-25 9:59:47 AM

SPECIAL FOCUS: QUEBEC / 7–10

TECH CONFERENCE

ith Canadians looking ahead to a federal election on Oct. 19, The Northern Miner submitted mining-related questions to the leaders of the four major political parties running across Canada. The following are the answers from the Liberal Party of Canada leader Justin Trudeau and Green Party of Canada leader Elizabeth May and their parties: The Northern Miner: In recent years the federal government has streamlined environmental permitting for miners by trying to avoid duplicating provincial efforts. Do you support this approach? Does the federal government have a unique role to play in avoiding catastrophic tailings dam failures, such as the Mount Polley spill in B.C. in 2014? Justin Trudeau/Liberal Party: The Harper government has eroded the credibility of Canada’s environmental reviews by narrowing their application, limiting public participation and slashing the capacity of the federal government to protect the environment. They have ended over 50 years of environmental oversight in Canada by repealing the Canadian Environmental Assessment Act so that the federal government can sidestep environmental reviews of potentially harmful projects. Without public trust, Canada’s environmental assessment processes are increasingly paralyzed. Not only are we not doing a good enough job at protecting our environment, we are not getting our resources to market. We need clear and efficient processes that have reasonable, evenhanded rules, clear beginning and end points and decisions that can be relied on. We will launch an immediate, public review of Canada’s environmental assessment processes. Based on this review, a Liberal government will

Autonomous haulage trucks on the move at Rio Tinto’s West Angelas iron ore mine in Australia’s Pilbara region.

he mining sector is facing a Darwinian moment, delegates at the first annual Technology and Innovation in Mining conference in Toronto heard in September. Just as species deal with changes in their climate, food sources or other circumstances, miners dealing with mounting cost, social and technical pressures must innovate if they want to survive, research group AMIRA International managing director Joe Cucuzza said. “If you look at Darwinian evolution, there are more species that go extinct than actually quickly adapt,” Cucuzza told the conference. “The point is that in our industry, we need to adapt quickly. Those that are slow to adapt, unfortunately, are going to go extinct.” The conference, organized by Dubai-

Geotech_Earlug_2015_VTEM_Colour3.pdf 1 2015-09-25 9:59:47 AM

VTEM™ ZTEM™ Gravity Magnetics Radiometrics Data Processing Interpretation 905 841 5004 | geotech.ca

SPECIAL FOCUS: QUEBEC / 7–10

TNM_Oct 05 2015 Issue.indd 1

See TECHNOLOGY / pg. 2

Canadian Mining Hall of Fame

Discipline pays off / 4

Five new inductees / 5

PM40069240

OCTOBER 5–11, 2015 / VOL. 101 ISSUE 34 / GLOBAL MINING NEWS · SINCE 1915 / $3.99 / WWW.NORTHERNMINER.COM

Liberals, Greens Q&A on mining in Canada

Mining sector forced to innovate TECH CONFERENCE

| New technology stokes productivity gains, but ‘no silver bullet’

ELECTION 2015 | Credibility and accountability are top concerns

BY ALISHA HIYATE ahiyate@northernminer.com

BY JOHN CUMMING jcumming@northernminer.com

See ELECTION / pg. 3

One of The Largest Silver Discoveries of 2014 TSX.V: GRG www.goldenarrowresources.com

Editorial

See TECHNOLOGY / pg. 2

RIO TINTO

15-09-29 8:10 PM

ith Canadians looking ahead to a federal election on Oct. 19, The Northern Miner submitted mining-related questions to the leaders of the four major political parties running across Canada. The following are the answers from the Liberal Party of Canada leader Justin Trudeau and Green Party of Canada leader Elizabeth May and their parties: The Northern Miner: In recent years the federal government has streamlined environmental permitting for miners by trying to avoid duplicating provincial efforts. Do you support this approach? Does the federal government have a unique role to play in avoiding catastrophic tailings dam failures, such as the Mount Polley spill in B.C. in 2014? Justin Trudeau/Liberal Party: The Harper government has eroded the credibility of Canada’s environmental reviews by narrowing their application, limiting public participation and slashing the capacity of the federal government to protect the environment. They have ended over 50 years of environmental oversight in Canada by repealing the Canadian Environmental Assessment Act so that the federal government can sidestep environmental reviews of potentially harmful projects. Without public trust, Canada’s environmental assessment processes are increasingly paralyzed. Not only are we not doing a good enough job at protecting our environment, we are not getting our resources to market. We need clear and efficient processes that have reasonable, evenhanded rules, clear beginning and end points and decisions that can be relied on. We will launch an immediate, public review of Canada’s environmental assessment processes. Based on this review, a Liberal government will

See TECHNOLOGY / pg. 2 Autonomous haulage trucks on the move at Rio Tinto’s West Angelas iron ore mine in Australia’s Pilbara region.

RIO TINTO PM40069240

See ELECTION / pg. 3

Autonomous haulage trucks on the move at Rio Tinto’s West Angelas iron ore mine in Australia’s Pilbara region.

COAL OUTLOOK: WOOD MACKENZIE SEES RAY OF HOPE / 4

RIO TINTO PM40069240

TNM_Oct 05 2015 Issue.indd 1

15-09-29 8:10 PM

SAVE UP TO 50% WITH MULTI-USER ACCOUNTS RIO TINTO

PM40069240

TNM_Oct 05 2015 Issue.indd 1

See ELECTION / pg. 3 15-09-29 8:10 PM

COAL OUTLOOK: WOOD MACKENZIE SEES RAY OF HOPE / 4

TNM_Oct 05 2015 Issue.indd 1

15-09-29 8:10 PM

Empower Your Team With Authoritative News and Analysis From The Northern Miner Each member of your team can have their own access to reliable, timely and informed analysis of global mining and exploration activity. For more information please contact George Agelopoulos:

@ gagelopoulos@northernminer.com

416-510-5104 Toll Free: 1-888-502-3456 ext. 43702



CMJ October2017_Ad pages.indd 7

2017-09-26 12:24 PM

FIRST NATIONS

INAC split is a big step toward better services and establishing self-government By Isadore Day

n late August, Prime Minister Justin Trudeau announced a signiﬁcant cabinet shuffle that will see Indigenous and Northern Affairs Canada (INAC) split into two departments. Former Health Minister Jane Philpott becomes Minister of Indigenous Services while former INAC Minister Carolyn Bennett becomes Minister of Crown-Indigenous Relations and Northern Affairs. I recognize this move by the Trudeau government as strategic and workable, as we have many ongoing priorities that must be transitioned in a responsible manner. Ministers Philpott and Bennett have my full support in these critical months ahead leading into the next federal mandate. I acknowledge Minister Philpott’s strong humanitarian values and the close working relationship that I had with her on the national health ﬁle for the last two years. I look forward to continuing that relationship in her new role. The work of Minister Bennett over the past two years has greatly renewed the relationship between Canada and First Nations while setting the path forward for true Reconciliation. I acknowledge and thank Dr. Bennett for her contributions and ongoing efforts for Ontario First Nations. However, both ministers have allowed the bureaucracy to drag their heels on complying with the Canadian Human Rights Tribunal ruling to provide equal funding to First Nation children in need of medical care. This is a shameful situation that would not be tolerated by First Nation leadership and mainstream Canadians. At the same time, our chiefs have seen little or no improvement with respect to the delivery services and response to critical needs. Since last year, I have spoken at a number of governance events with both federal and provincial bureaucrats. Here is an excerpt from one of those speeches:

Rebuilding and repairing the nation-to-nation relationship is not simply a matter of clawing our way to the top of federal and provincial budget cycles, year in and year out. Drastic changes must be made in the current relationship, beginning with making the current bureaucracy responsible and responsive to our needs. We can no longer be treated like second- or third-class citizens.

8 | CANADIAN MINING JOURNAL

08_CMJ Oct2017_First Nations.indd 8

We will no longer tolerate the adversarial approach that still seems to dominate the bureaucratic mindset. We must finally become equal partners in this 150-year-old confederation that began with four provinces in 1867. We must finally restore the Treaty relationship when we were treated as equals with the newcomers 250 years ago. A significant step towards restarting the relationship begins with breaking the cycle of poverty by establishing long-term sustainable funding. It begins with breaking the cycle of dependence by moving toward selfgovernment and self-sustaining economies. Today, we are still in the process of internally rebuilding our organizations – whether it be the Assembly of First Nations; the Chiefs of Ontario; Nishnawbe Aski Nation; the Association of Iroquois and Allied Indians; and so on, right across the country. Once we are able to effectively engage both the federal and provincial governments, renewal of the nation-tonation relationship will progress at a rapid pace over the coming months and years. I remain confident that this current federal government is committed to following through on its mandate with Indigenous Peoples. But we need the bureaucracy to act at the speed of 21st century “deliver-ology” – not at the pace of 19th century colonialism.

I believe this cabinet shuffle is not only a sign that the federal government is serious on following through with its mandate to improve the relationship with Indigenous Peoples. It is a signiﬁcant step towards what we all want – happy, healthy self-sustaining and self-governing communities. Now we must work together to make this happen for the sake of our children. CMJ ISADORE DAY Wiindawtegowinini, is Assembly of First Nations Ontario Regional Chief.

WWW.CANADIANMININGJOURNAL.COM

2017-09-27 12:48 PM

FAST NEWS • Optimization |

Updates from across the mining ecosytem

Gekko introduces Carbon Scout

ollowing a collaboration agreement signed with Curtin University in Western Australia for the development and commercialization of a cutting-edge carbon management technology, Gekko Systems is pleased to report that the units have now reached the commercial release stage. The all new Carbon Scout promises to quickly become critical for gold processing plant optimization and for minimizing soluble gold losses on tails. The self-contained device collects slurry samples from carbon-in-pulp and carbon-in-leach tanks to determine the distribution of the activated carbon in the pulp for each tank, to an accuracy of ±0.5 grams of carbon per litre of pulp. Only a single point of measurements is needed for up to 10 tanks. Gekko says the Carbon Scout can increase plant efﬁciency and safety, make accurate and consistent carbon analytics, and reduce upfront investment. Moreover, it can be expanded to mea-

• Flotation |

Gekko’s new carbon scout could be a game-changer in carbon management for gold miners. CREDIT: GEKKO SYSTEMS

sure pH and dissolved oxygen. Gekko Systems’ managing director, Elizabeth Lewis-Gray said, “We are excited to be offering gold mine operators a real solution to minimize their soluble gold losses. At Gekko, we strongly believe that the new Carbon

Scout technology can make the difference between storing gold in the bank, rather than in tailing dams.” The company reports that the machines have been tested in several locations during the ﬁrst half of the year, delivering conclusive and positive results on each occasion.

Eriez teams up with CEEC to boost efficiency

eading mineral processing technology company Eriez has joined forces with the Australia-based Coalition for Energy Efficient Comminution (CEEC) to continue to drive improvements across the global mining industry. CEEC is an international, not-for-profit company that champions energy efficient mining and processing and is entirely funded by the minerals industry. Its mission is to share energy efficient, productive mining processes to help reduce costs, lower footprint and improve shareholder value. Announcing a sponsorship agreement with Eriez, CEEC CEO Alison Keogh said she was pleased to welcome the U.S.based company to the CEEC team. “Eriez brings an exciting option to mineral processing circuits with its innovative HydroFloat technology, which has potential to significantly cut costs and boost processing efficiency,” she said. “Eriez highlights the potential to add significant value through flotation of coarser material. When successfully commercialized at full scale, this will dramatically reduce costs by lowering use of energy, water and other resources per unit.” Eriez Australia managing director Jaisen Kohmuench said his company was proud to partner with CEEC to share its key learnings with the industry. “Two decades ago, Eriez pioneered coarse flotation in the phos-

OCTOBER 2017

09-11_CMJ Oct2017_Fast News.indd 9

phate and potash industries. Since then we’ve advanced our technology, resulting in development of our coarse flotation system, the HydroFloat,” Kohmuench said. “This innovative separator has a fluidized bed which increases particle contact with bubbles and reduces the turbulent action often found in conventional mechanical Column flotation in a potash plant. flotation cells. As a result, we’re CREDIT: ERIEZ able to recover much coarser particles, even those with minimal surface area exposure.” Kohmuench also pointed out a recent study by Dr. Jan Miller at the University of Utah has shown that HydroFloat can recover copper ore particles as coarse as 1 mm with a mineral surface expression as low as 1%. By increasing the size of ore particles from 20 to 80 microns, for example, the energy required per tonne drops from 20 to 30 kWh/t to less than 7 kWh/t. “With grinding consuming up to 3% of the world’s total electrical energy consumption, coarse flotation could save the industry signiﬁcant costs and greatly reduce its energy use and carbon footprint,” Kohmuench added. CANADIAN MINING JOURNAL

2017-09-27 12:49 PM

FAST NEWS • Equipment |

Updates from across the mining ecosytem

Cat tests battery-powered LHD in Canada

aterpillar’s underground mining group is preparing to ship a proofof-concept battery electric load-hauldumper (LHD) to a mine site located in Canada. The initial build and validation testing of this R1300G test unit began in early 2017 at the Caterpillar Peoria proving grounds and will continue through the fourth quarter and into 2018 moving muck in a Canadian mine. The test machine is a proof of concept for packaging and performance of a lithium-based energy storage solution Caterpillar plans to bring to the LHD market. The Cat R1300G proof of concept does not represent a ﬁnal design that will go to market. After testing, Caterpillar will launch a full new product introduction program that follows a more in-depth, rigorous design and validation process. “Our customers are planning for deeper mines with very high ambient rock temperatures where ventilation costs are pivotal to making the mine viable,” said Jay Armburger, product manager with responsibility for underground technology. “One means of reducing ventilation demand is through electriﬁcation of the mining equipment.” The program started with a full production study and data analysis of the diesel machine in order to set a baseline. Once this was accomplished, the transformation of the R1300G to a battery

10 | CANADIAN MINING JOURNAL

09-11_CMJ Oct2017_Fast News.indd 10

This Cat proof-of-concept battery powered LHD is being tested in a Canadian mine. CREDIT: CATERPILLAR

electric version began. The modifications included removing the engine, transmission and torque converter then reconfiguring the engine end frame to accommodate the battery boxes and electric motors. The result is a battery electric powertrain driving a conventional and mechanical drivetrain (drive shafts and axles). The R1300G proof of concept is an older machine without the benefit of efficient electro-hydraulics. As a result, it will drive worst case scenario loads on the batteries. The final design of the new loader will enhance battery life through the use of load-sensing hydraulics driven by piston pumps such as those on the new Cat R1700. The less refined proof-

of-concept machine will yield solid understanding of heat generation and cooling needs, performance criteria, space claim and safety considerations in the day-to-day operation of the machine. Caterpillar is focusing on fast charging of the batteries on the machine such that an operator can take a quick break and come back to a charged machine. In addition to developing the LHD itself, the program has been prototyping a robust charging station. The technology behind the charging station is unique to Caterpillar and uses Cat components and technology. Recharging on the machine prevents the mine from incurring additional infrastructure costs or from having to manage or store replaceable battery packs.

WWW.CANADIANMININGJOURNAL.COM

2017-09-27 12:49 PM

• M&A |

Toromont expands with Hewitt acquisition

oromont Industries announced in August that it has agreed to acquire the Hewitt Group of companies in a C$1.02 billion deal. Toromont will pay C$917.7 million in cash plus 2.25 million Toromont shares (nominally $100 million based on 10 day average share price as at signing). Hewitt Equipment is the authorized Caterpillar dealer for Quebec, Western Labrador and the Maritimes, as well as the Caterpillar lift truck dealer for most of Ontario. Hewitt is also the MaK dealer for Quebec, the Maritimes and the U.S. Eastern seaboard from Maine to Virginia. “The acquisition delivers a substantial growth opportunity… and strengthens our expertise in the mining, construction, power systems and forestry sectors,” said Toromont president and CEO Scott J. Medhurst. “With the trend towards consolidation taking root in each of the sectors in which Hewitt operates, we are confident that our customers and employees will benefit from working within an even larger organization with access to even more resources and capital,” noted chairman and CEO Jim Hewitt. Upon close of the acquisition, Toromont’s Caterpillar dealership will operate 120 branches in Nunavut, Manitoba, Ontario, Quebec, New Brunswick, Prince Edward Island, Nova Scotia and Newfoundland and Labrador, giving the company one of the largest sales territories in the Caterpillar dealer network. Toromont expects to maintain existing facilities and under its decentralized business model, regional leadership will continue to run their businesses locally to make decisions in the best interests of their customers. Toromont will fund the acquisition through current cash on hand, unsecured debt financing of up to $750 million and the issuance of 2.25 million Toromont shares. A syndicate has committed bank financing of up to $750 million to fund the acquisition and a revolving working capital facility of up to $500 million. Prior to closing the deal, Toromont intends to launch a bond offering (private placement) of up to $400 million and correspondingly reduce the draw on the bank financing. The transaction is expected to close by mid-October.

• Renewables |

B2Gold taps Cat for solar power

2Gold has selected Caterpillar and Cat dealer Barloworld to supply 7 MW of solar power at the Otjikoto mine in Namibia. The full system, including Cat photovoltaic (PV) solar modules and the Cat microgrid master controller (MMC), will be used to reduce reliance on a heavy fuel oil power plant currently used to power the mining facility. Barloworld is supplying engineering, procurement and construction services for the project. Installation of the system is underway, with the completion of the project expected in early 2018. CMJ

OCTOBER 2017

09-11_CMJ Oct2017_Fast News.indd 11

Providing full service mining solutions and innovation around the world for over 55 years.

EXPERIENCE • • • • •

Shaft Sinking Mine Development Contract Mining Raiseboring Raise Mining

• Underground Construction • Engineering & Technical Services • Specialty Services

AFRICA | ASIA | AUSTRALIA EUROPE | NORTH AMERICA SOUTH AMERICA Mining Contractors and Engineers

Consider it done.

redpathmining.com

CANADIAN MINING JOURNAL

| 11

2017-09-27 12:49 PM

Q&A

withDoug

Morrison

Innovation has been the hot topic of the mining industry for several years now – but how much progress have we actually made? CMJ spoke with Douglas Morrison, president and CEO of the Centre for Excellence in Mining Innovation (CEMI), to find out. Based in Sudbury, Ont., CEMI works with small and medium enterprises (SMEs) that have or are working on technologies that could be applied to problems that the mining industry is facing. In this interview, Morrison discusses where the industry needs to go from here, CEMI’s work on practical solutions, and the “commercialization gap.”

In recent years, the mining industry has been consumed CMJ: with some big challenges – productivity, financial performance and social licence being some of the big ones – and the consensus has been that the industry needs to change and innovate to get to solutions. How much progress would you say has been made to date?

Douglas Morrison:

I think that the industry is making some incremental progress – certainly on the productivity issues. They’re looking at the types of projects that will move the industry forward in relatively small steps at a time, so changing from diesel engines to battery driven equipment for example will have an impact, but it won’t be very large. They’ve already gone through the exercise of cost-cutting and reducing expenditures internally, so that was their first step, and having done that, they’re now beginning to re-examine some of the incremental innovations that they could bring to bear. They have not been very strongly supportive of external innovation agencies like ourselves or others and so they’re beginning to reconsider what they should do there. The biggest thing they’ve done so far is working with OEMs to make a transition from diesel engines to electric engines driven by batteries. I don’t believe there’s been a lot of progress made by

12 | CANADIAN

MINING JOURNAL

12-14_CMJ Oct2017_D Morrison.indd 12

the mining companies in re-examining the platforms that they use for some of these issues. So organizations like ourselves have done more of that work.

CMJ: So what needs to happen now? The changes that have to take place are becoming DM: more and more urgent, but also more and more significant. So it’s my view that we’ll not see the scale of change that

we need in productivity and cost of production, and return on investment simply by continuing to make incremental improvements. What it does require is a re-examination of some of the important technological platforms that the industry has relied on for the last 50 years or so. So we’ve relied on economies of scale in underground production, with larger and larger trucks and equipment. That then brings with it an increasing burden on ventilation, so as mines get deeper and hotter, the demands for ventilation increase at the same rate that the equipment is increasing in scale, so you really are not making a significant improvement in your cost of production. So it does require a significant rethink on how we do things. www.canadianminingjournal.com

2017-09-27 12:49 PM

The launch of a demonstration model of the hydraulic air compressor (HAC), developed by the CEMI-managed Ultra Deep Mining Network, in Sudbury this summer. The original HAC was used to power pneumatic equipment in the early 20th century. The newly designed HAC was designed to produce inexpensive cooling for underground mines. Because it produces fresh air, it may also have ventilation uses. CREDIT: CEMI

you give us another example of a platform that needs CMJ: Can to be rethought? Sub-aqueous deposition is the technology platform DM: that the mining industry has used to manage metal mining tailings for a long time. We think we have to shift to a

different platform. There have been significant failures of tailings dams around the world. It is very unusual for Canadian mines to have these kinds of failures, but it is nevertheless a problem that happens somewhere in the world almost once a year. And what happens is it undermines the credibility of the industry as a whole because people become less confident that any mining company can manage their tailings dam effectively. Our response to that has been to say: is there a different way for us to manage our tailings and waste water so we can provide the public with greater assurance that there will not be a disaster at some point? The risk of failure in a conventional tailings dam is the water. If there was no water behind the dam, there would be very little environmental impact because when they’re not saturated, the tailings would not flow very far. The water’s there to prevent the oxidation of the acid-generating minerals and to prevent acid drainage into the environment. So we’re trying to come up with a different way to do that. It will be a form of dry-stacking but it won’t be the kind of dry-stacking that is currently being considered. The conventional approach to dry-stacking is just to stack it without water but then to put a cover on top that will prevent the percolation OCTOBER 2017

12-14_CMJ Oct2017_D Morrison.indd 13

of water into the tail. We think a better solution would be to remove those acid-generating minerals, so we would be depositing a benign tail that has a very small percentage of contaminants in it so that you could grow plants on top of it. We’re ultimately looking for full and final remediation – where you don’t have to actively manage that site any longer. Our initial target is to work on some of the legacy sites in Ontario to prove out the technologies we’ve been developing, and then bring those to bear on progressively larger and larger tailings ponds. In doing that, we’ve identified a couple of pieces of technology that we think are critical: one is a technology to continuously monitor dissolved metal in the tailings leachate. And there are a whole suite of physical techniques to reprocess tails and extract the contaminants and extract any valuable materials from the tailings and then be able to redeposit a benign tail. You mentioned that the problems the industry has to CMJ: address are getting more urgent. Why isn’t the industry moving faster on solutions? Twenty years ago, I worked for Inco in the Mines DM: Research Department. But research and development, which was something that mining companies used to do internally, that has now been completely outsourced to organizations like CEMI and Mirarco and the university base. For us, the difficulty is not coming up with good ideas, there are many really CONTINUED ON PAGE 14

CANADIAN MINING JOURNAL |

2017-09-27 12:49 PM

good ideas in universities and in small companies – the problem is commercialization. People talk a lot about the innovation gap, but the real problem is the commercialization gap – to get a really good, practical solution into a commercially viable outcome. If mining companies can’t buy or lease a technology, or hire expertise through consultants or through employees, then those mining companies cannot adopt any new technology. So we have lots of good, practical ideas inside SMEs, but how do we accelerate that level of development through to a commercially viable outcome? That’s where CEMI is focusing all of our attention – on that commercialization process. We think the best way to solve the problems of the mining industry is by working through this larger SME community to provide commercially viable solutions. One problem that we have is the 1:1 dollar match that’s commonplace for all government funding. It works very well for research because research is typically done on a very small scale. It doesn’t usually involve building very large pieces of equipment or installations. Those cost multi-million dollars. In the innovation process there’s three steps – essentially going from a bench scale to pilot scale, to full-scale trials, then operating trials. The cost of doing those three steps is very much larger than laboratory development and invention. So the constraint that we have is the 1:1 match of government funding to private sector funding. While the government has recognized the need for innovation, they’ve so far failed to recognize the difference between research and innovation. Research produces new knowledge, but innovation creates a new business – new economic activity. Innovation is actually a commercial exercise, not a technical exercise. If the government wants to focus on innovation, it has to recognize that the risks and the costs of innovation are much higher than the risks and costs of research. This summer, CEMI and the Canada Mining Innovation CMJ: Council (CMIC), based in Ottawa, made a joint submission for the federal government to choose mining as a Supercluster industry

that would get strategic funding (also based on 1:1 ratio), as part of the government’s Innovation Agenda. Tell me a little bit about your proposal for a CLEER (Clean, Lowenergy, Effective, Engaged and Remediated) mining Supercluster and what it would mean for Canada’s mining sector if it’s chosen?

One of the objectives of the Supercluster initiative was DM: that the investment would help that particular industry to become a leader in its field. We feel very strongly that the Canadian mining industry because of the number and scale of mines that we have, but more importantly because of the size and scale of our service sector companies, that we have a very significant opportunity to become a global leader in delivering innovative solutions to the global mining industry. We think we have a better chance of achieving that than many of the other sectors which people think of as more important than mining – auto sector or the aerospace sector or pharma – those are significant parts of the Canadian economy but very small players in their global industries. The primary focus of this submission was on developing clean

14 | CANADIAN

MINING JOURNAL

12-14_CMJ Oct2017_D Morrison.indd 14

CEMI’s canopy system. CREDIT: CEMI

technologies – the kind of technologies that will improve the environmental performance of mining operations. The idea is identify SMEs that have potential solutions to waste management and other problems in mining, and to help those companies develop those solutions for application to the mining industry and then beyond that, in the broader economy. By doing that, the government investment in projects improves the performance of the mining industry here at home, feeds more technology into the broader economy, increases the level of economic activity related to mining inside Canada and globally, expanding the number and quality of jobs here in Canada. The decision for which industries would be invited to make full submissions was scheduled for late August. It’s now late September, but we haven’t heard anything yet. are some of the other specific problems aside from CMJ: What tailings that CEMI has been looking at? We’ve been looking at advance rates – The length of DM: time it takes us to get into production has an impact on the investment profile for that new deposit, so if you can

access it faster, you can actually increase its net present value. The industry’s advance rate is now down to less than 4 metres a day – it’s taking more and more time to get to the orebody. So we have to find a way to shorten the development cycle – mucking out broken rock, installing ground support, drilling the face and charging the face. We’ve developed a canopy system that allows us to carry out some of those activities concurrently – the canopy protects everybody so we can be drilling the face and loading the explosives into the holes while we’re still doing the ground support behind the jumbo. Now you’re doing simultaneous activities and the critical path gets shorter – about 10.5 hours for a cycle. So instead of doing 4 metres of advance a day you can do 8 metres – that means getting to the next orebody twice as fast. There are three canopies that are all slightly different and they work together in concert. All three have been built by Nordic Mine Steel in North Bay, who we’ve licenced this technology to. When we finish operational trials at Norcat, then it becomes commercially available. The next step in rapid development is new rock transport equipment and we’re talking to different companies about helping to develop the prototype units. CMJ www.canadianminingjournal.com

2017-09-27 12:49 PM

T:8.125” S:7”

S:10”

In the mining business, downtime is the enemy. Mobil™ offers three ways to fight it: lubricants that withstand extreme conditions, services that help optimize equipment reliability, and industry expertise that covers decades. Learn more at mobil.ca/industrial.

CMJ October2017_Ad pages.indd 15

2017-09-28 11:07 AM

T:10.75”

Together, we’ll move mountains.

Mining in Quebec

STORNOWAY

blazes A TRAIL IN QUEBEC

16 | CANADIAN

MINING JOURNAL

16-20_CMJ Oct2017_Renard.indd 16

www.canadianminingjournal.com

2017-09-27 12:50 PM

PROVINCE’S FIRST AND ONLY

diamond mine

REACHES FULL PRODUCTION

By Alisha Hiyate

tornoway’s Renard diamond mine, 360 km north of Chibougamau, represents a lot of firsts. Renard is the first diamond mine in Quebec and the first diamond mine in Canada to be 100% owned and developed by a junior. The complex $946-million financing that the company negotiated in 2014 to build the mine was the largest ever raised for a publicly listed diamond company. Not only that, but the company did it at a time when mine financing was incredibly difficult to get. Renard is also the first diamond mine in Canada to enjoy all-weather road access – the first tangible beneficiary of Quebec’s Plan Nord – an ambitious infrastructure program meant to open up the northern reaches of the province to resource development. The open pit and underground mine – which is forecast to produce an average of 1.8 million carats annually over its 14-year mine life – was completed under budget ($775 million compared with a budgeted $811 million) and on schedule. By all accounts, the build and ramp up has gone well: Renard achieved commercial production on Jan. 1 and full nameplate production of 6,000 t/d at the end of June. CONTINUED ON PAGE 18

Open-pit mining at Renard. CREDIT: STORNOWAY DIAMOND OCTOBER 2017

16-20_CMJ Oct2017_Renard.indd 17

CANADIAN MINING JOURNAL |

2017-09-27 12:50 PM

“The orebody’s performing well, the rock is all in the right place, and we’re getting a better mix of geological units than we expected,” says president and CEO Matt Manson, outlining Renard’s performance so far. “The grade is reconciling fine, costs are in line – we did $54 a tonne in the last quarter and we’ve been consistently achieving our budgeted costs on a per tonne basis. And the sales are doing well also – we’ve done about seven tender sales now and we’ve seen the market warm to the goods.” Now that all the big hurdles of financing, constructing and bringing online a remote mine are out of the way, Stornoway is facing more run-of-the-mill challenges – literally. “The challenge that we’ve got is a quality issue in our process plant where we’ve got a higher level of diamond breakage than we’re comfortable with,” Manson said in an interview in September. That breakage level of 20-25%, is about 10% higher than expected – and it’s affecting the prices Stornoway is receiving for Renard diamonds. “Originally our resource calculations estimated internal breakage of 10-15% because it’s normal to break diamonds in a diamond process plant,” explained Patrick Godin, Stornoway’s chief operating officer. “It’s the percentage we have compared to what we expected that is reducing the value of our sales.” The high levels of breakage can be attributed to the physical impact of waste – mainly hard, gnessic granite – against diamonds and the steel linings of the crushers. The Renard orebodies have a lot waste, with high levels of internal dilution that can vary up to 50-70%. Spectral sorting In August, the company unveiled a plan to better manage the breakage. In yet another first, the company will add a TOMRA

18 | CANADIAN

MINING JOURNAL

16-20_CMJ Oct2017_Renard.indd 18

spectral sorting circuit to the plant to reduce the high levels of waste rock in the crushers. Spectral sorting is not new to mining, but Renard will be the first diamond mine to incorporate it. “Others are trying it – when we were running our trials in Germany with the supplier, there was another well-known diamond miner at the same time doing a similar trial so we’re certainly not alone in this,” Manson said. Testing has shown that the technology – which sorts the waste rock from the kimberlite based on spectral response – is successful in segregating the olivine-rich kimberlite from feldspar and quartz-rich waste rock. “Ore sorting for us is a) an obvious thing to look at given the amount of waste in the ore and b) lucky for us, there’s a very strong spectral contrast between most of the waste and the kimberlite and the modern technologies that are out there allow us to do this.” The $22-million new spectral sorting circuit will have a capacity of 7,000 t/d – the maximum allowed under Renard’s current permits. It will be installed after the primary jaw crusher and before the secondary cone crusher to extract waste in the +30mm-200mm size range. The circuit is expected to be commissioned in the first quarter of 2018. Godin says it should remove about 35-40% of the waste. The circuit, which can be expanded in the future, also provides the added benefit of increasing processing capacity by removing a large volume of material from the front of the plant and opening up the back of the plant. It will add about $1 per tonne to operating costs. Infrastructure and site development For a remote site like Renard, key infrastructure is make-orbreak. Under Plan Nord, a 240-km road extension linking Renard to Chibougamau was built – the first 140 km by the province’s Ministry of Transportation and the last 100 km built by Stornoway. “We wouldn’t have been able to build this mine without a road,” Manson acknowledged at the official opening of Renard last October. The road opened up the opportunity for another first at the mine – it has the first and only processing plant in Canada to be powered by a liquefied natural gas (LNG) plant. Road access made the option less expensive than diesel or grid power. While open-pit mining has been ongoing at the side-by-side Renard 2 and 3 kimberlites since 2015 (and at Renard 65 since 2014), the company has also been getting ready for underground mining with ramp development starting in 2015. As of next year, the principal source of ore to the plant will be underground mining at Renard 2, which will be mined for 10 years. (Probable reserves at the mine are hosted in four kimberlites, including Renard 4, totalling 22.3 million carats contained in www.canadianminingjournal.com

2017-09-27 12:50 PM

Stornoway has grown to nearly 500 employees. The company priortizes hiring within the local Cree communities of Eeyou Itschee, who accounted for nearly 20% of workers onsite in June. CREDIT: STORNOWAY DIAMOND

33.42 million tonnes grading 66.6 carats per hundred tonnes.) Development of the underground mine has progressed on schedule: by mid-year, it had reached 2,746 metres, slightly ahead of plan. Work in the second quarter focused on lateral development in kimberlite at the 160-metre level, development of the production drifts at the 270- and 290-metre levels, and on the fresh air raise. Stornoway has had one wrinkle with regards to its processed kimberlite management plan, which originally called for all the processed kimberlite to be dry-stacked. LabServiesAd.qxp_Layout 1 9/15/17 4:45 PM Page 1

“We are generating more fines than expected and we did tests on the centrifuge (used to dewater the fines) at the detail engineering stage and it wasn’t performing as expected,” Godin told CMJ. “It was not possible to achieve the geotechnical characteristics required to dry-stack the material.” Instead, the company will dry-stack 60-65% of the processed material and store the rest as a slurry inside a containment constructed from the dry-stacked material. Godin says the plan has the same footprint as the original plan, and that modified permit authorizations were received in July. CONTINUED ON PAGE 20

Complete Lab Services for

Flow Sheet Development

With more than 20,000 sq.ft. of dedicated laboratory space and an array of lab and pilot equipment, the Eriez Flotation Division (EFD) has the tools to test and provide detailed process analysis and state-of-the-art solutions for nearly any application. Eriez’ Flotation Lab Equipment includes: • Single and multi-stage column flotation circuits • Bench top flotation cells • Pilot-scale columns • Lab-and pilot-scale HydroFloat Separators • Lab-and pilot-scale CrossFlow Separators

To see it all visit EriezFlotation.com

OCTOBER 2017

16-20_CMJ Oct2017_Renard.indd 19

• Grinding equipment (cone, ball, and rod mills) • The CPT Mini Pilot Plant • XRF analytical capabilities

+1 604-952-2300

CANADIAN MINING JOURNAL |

2017-09-27 12:50 PM

The Renard mine site, in north-central Quebec. CREDIT: STORNOWAY DIAMOND

Diamond sales Stornoway has had seven diamond tenders so far, starting last November, but only one has achieved an overall price within the company’s guidance of US$100-132 per carat. In the first quarter of the year, the average price was US$81 per carat, increasing to US$87 per carat in the second quarter. The company received $101.50 per carat in a July sale for what Manson says what a “standard mix” of Renard stones. (A March 2016 updated mine plan estimated average prices at US$155 per carat.) Two issues have negatively affected the pricing: breakage, which has reduced the size and quality of the Renard stones, and a demonetization event in India last November that depressed the price of small stones. (Much of the market for small stones is in India and the demonetization – which suddenly invalidated the 500-rupee and 1,000-rupee notes that made up over 80% of the currency in circulation – caused a liquidity crunch for Indian diamantaires.) In addition, new production is always subject to a discount at first – until buyers get to know the product and get comfortable with the quality. Manson says the real price of Renard goods – accounting for variability between parcels in size, quality etc. – has actually risen by 19% since the first sale. A small portion of the rise, between 3-6%, has been an increase in market prices for rough, but most of the increase reflects buyers’ comfort with the stones. So far, the company has sold around 1 million carats in all, including 350,159 carats in the second quarter, which brought in revenues of $42.6 million. “We’ve had very good reports on yield, the amount of polished you can get out of the rough,” Manson says. “There’s no skins or coats on our goods,” he adds. “They’re very easy to assess when you pick them up and look at them 20 | CANADIAN

MINING JOURNAL

16-20_CMJ Oct2017_Renard.indd 20

CEO Matt Manson and COO Patrick Godin at a Birks store in Montreal, which sold the first jewelry made with Renard diamonds this spring. CREDIT: STORNOWAY DIAMOND

and they’re very predictable when you polish them.” In addition, the goods don’t break on a polishing wheel, and the colour of brown Renard diamonds in particular have shown to improve on polishing. Peak diamond Noting that three new mines have started up in the past year – Renard, Gahcho Kué and Firestone Diamonds’ Liqhobong in Lesotho – Manson says that the diamond market is currently fully supplied. “I think we’re at peak production right now,” Manson says. “There’s maybe one new project to come in Angola with Alrosa and Endiama, but that’s it – and looming on the horizon is the likely closure of the biggest producer of diamonds in the world, which is Argyle, around 2021.” While the diamond market has had its challenges, Manson remains an optimist about the fundamentals of the diamond market. “We’re miners – we can’t really afford to get too wrapped up in the short-term week-by-week or month-by-month trends of the diamond market,” he says. “We’re building billion-dollar projects with 15, 20-year outlooks, so we try to remain disciplined and look at the diamond market from a 10, 15, 20-year outlook.” Manson adds: “And if you do that, it looks fantastic because where is new diamond supply going to come from? That fundamental optimism is the optimism that underlies everything CMJ we’ve done at Stornoway.” www.canadianminingjournal.com

2017-09-27 12:50 PM

Sub-arctic environment. Aggressive deadline. Successful delivery of engineering for the diamond processing plant at Quebec’s first diamond mine. Impossible? Not for DRA. The Renard Mine is located in the James Bay region of Quebec, an environment that poses logistical and climatic challenges. DRA’s smart engineering solutions and fit-for-purpose design addressed the climatic conditions by positioning the process plant inside a winterized building with an optimized footprint. This resulted in capital and operating cost savings. DRA’s global project team quickly adapted to the requirements and successfully delivered the full diamond processing plant at Quebec’s first diamond mine within very tight timelines.

DRAglobal.com

CMJ October2017_Ad pages.indd 21

Extraordinary Possibilities

2017-09-26 12:24 PM

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

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

IMPRESSIVE DIESEL TORQUE 925 LB.-FT.***

BEST-IN-CLASS GAS TORQUE 430 LB.-FT.

Vehicle may be shown with optional and aftermarket equipment. *Maximum towing capacity of 32,500 lbs on F-450 DRW 4x4 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 based on Ford segmentation. **When properly equipped. Maximum payload of 7,630 lbs on F-350 DRW 4x2 with 6.2L V8 gas engine. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR based on Ford segmentation. ***Maximum diesel torque of 925 lb-ft on F-250/F-350 with 6.7L V8 diesel engine. When properly equipped. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR based on Ford segmentation. ¤Maximum gas torque of 430 lb.-ft on F-250/F-350 with 6.2L V8 gas engine. When properly equipped. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR based on Ford segmentation. Class is Full-Size Pickups over 8,500 lbs GVWR. Driver-assist features are supplemental and do not replace the driver’s attention, judgment and need to control the vehicle. ©2017 Ford Motor Company of Canada, Limited. All rights reserved.

CMJ October2017_FORD DPS Ad pages.indd 22

2017-09-26 12:22 PM

SUPER DUTY: GET THE JOB DONE RIGHT

THE MOST CAPABLE, HEAVY-DUTY PICKUP WEâ&#x20AC;&#x2122;VE EVER BUILT

ed ass ize ups rol

CMJ October2017_FORD DPS Ad pages.indd 23

2017-09-26 12:22 PM

Mining in Quebec

18 23 17

4 22

8 15 21 5

24 20

16 2 13

*Based on information from the Quebec Ministry of Energy and Natural Resources (MERN), July 2017

MINING JOURNAL

24-26_CMJ Oct2017_Plan Nord.indd 24

PRODUCING MINES

24 | CANADIAN

1. 2. 3. 4. 5. 6.

Bachelor Lake gold mine, Metanor Bracemac-McLeod copper-gold mine, Glencore Canada Casa Berardi gold mine, Hecla Quebec Ă&#x2030;lĂŠonore gold mine, Goldcorp Fire Lake iron ore mine, ArcelorMittal Lac Tio titanium mine, Rio Tinto Fer et Titane

7. Langlois copper-gold mine, Nyrstar Canada 8. Mont-Wright iron ore mine, ArcelorMittal 9. Nunavik copper-nickel mine, Canadian Royalties 10. Raglan copper-nickel mine, Glencore Canada 11. Renard diamond mine, Stornoway

www.canadianminingjournal.com

2017-09-27 1:35 PM

Plan Nord Pointing the way

By Marilyn Scales

alling it the “project of a generation” then-Quebec Premier Jean Charest launched Quebec’s ambitious Plan Nord in May 2011. He promised to invest more than $80 million in support of mining, energy and forestry projects over 25 years. A line was drawn across the province at the 49th Parallel from north of Rouyn-Noranda to Baie-Comeau. Plan Nord was to generate $14 billion in revenue and 20,000 jobs a year. It offered a new business model that was to build roads and improve the lives of the northern residents. The next year, Charest imposed university tuition hikes. His move set off a round of strident protests, and his Liberal Party lost the election of 2012. Plan Nord languished. When the Liberals under Phillippe Couillard won a majority in the 2014 general election, Plan Nord was relaunched as outlined in Bill 11. The plan calls for expenditures of $2.7 billion between 2015 and 2040. Bill 11 included new funding of $25 million for a feasibility study on building a 20-milltion t/y rail line from the Labrador Trough 300 km to Point Noire (a boon for iron ore miners). Montreal-based Canarail is carrying out the study. A further $50 million was promised to expand the Gaz Metro liquefied natural gas plant so supply projects in the Plan Nord area (including the new Renard diamond mine). New was the creation of the Société du Plan Nord (SPN) mandated to co-ordinate the efforts of the public and private sectors under terms of Plan Nord. SPN and its subsidiaries will be responsible for awarding contracts that meet the criteria

ACTIVE MINING PROJECTS

OCTOBER 2017

24-26_CMJ Oct2017_Plan Nord.indd 25

12. 13. 14. 15. 16. 17. 18.

Arnaud phosphate dev’t, Mine Arnaud Sept-Iles Barry gold PEA, Metanor Resources BlackRock iron ore, BlackRock Metals Bloom Lake iron ore dev’t, Champion Iron Mines Douay West gold PFS, Aurvista Gold DSO iron ore, Tata Steel Minerals Canada Eldor (Ashram) rare earths PEA, Commerce Resources

for the area. Funding for SPN will come from the Fonds Plan Nord supported by the Quebec government to $170 million, $10 million of which will come from Hydro-Québec annually. The Quebec government has set out certain priorities intended to boost the resource sectors. It will promote the responsible development of resources in the north, diversify the range of resources developed, promote private investment, and increase the processing of resources in the area. All the while it will encourage the diversification of local and regional economy with support for all sizes of enterprises at any stage of development. The sum of these goals will be to maximize economic benefits in the Plan Nord area and the rest of the province. Specifically for the mining sector, Plan Nord outlined five goals: 1) gather basic geological knowledge, 2) clean up and CONTINUED ON PAGE 26

Plan Nord was to generate $14 billion in revenue and 20,000 jobs a year. It offered a new business model that was to build roads and improve the lives of the northern residents. 19. Lac a Paul phosphate dev’t, Arianne Phosphate Radisson 20. Lac Gueret graphite dev’t, Mason Graphite 21. Lac Knife graphite FS, Focus Graphite 22. Rose, tantalum-lithium PEA Critical Elements 23. Strange Lake-B zone rare earths PEA, Quest Rare Minerals 24. Whabouchi lithium dev’t, Nemaska 25. Windfall Lake gold PEA, Osisko Mining Adv Expl, PEA

CANADIAN MINING JOURNAL |

2017-09-27 12:52 PM

As laid out, Plan Nord is a very broad-based undertaking. The exploration, development and mining industry has much to contribute to the economic expansion of the region. The forestry, oil & gas, as well as infrastructure construction will also contribute. restore former exploration sites, 3) communicate and promote discussions between all stakeholders, 4) support the development of diverse projects such as diamonds, apatite, ilmenite, graphite and rare earths, and 5) take a stake in companies mining or processing minerals on public land. Notably missing from Plan Nord is support for the uranium industry. There are no such mines in the province, but the potential exists. The original moratorium on exploration, development or

CONSERVATIVE INTERPRETATION: Improved grades and gold continuity

TSX:ER OTCQX:EANRF

Updated Eau Claire Mineral Resource Estimate Category M&I Inferred

Tonnes 4,170,000 2,227,000

Grade (g/t Au) Contained Au (Oz) 6.16 826,000 6.49 465,000

Open pit and underground scenario delineated Advancing to Preliminary Economic Assessment (H1 2018) For more information and footnotes related to the mineral resource update, please see Eastmain press release dated, September 11, 2017.

Focused Management Aggressive Exploration The Right Location 3 Key Assets in James Bay, Quebec

www.eastmain.com 26 | CANADIAN

MINING JOURNAL

24-26_CMJ Oct2017_Plan Nord.indd 26

mining of uranium projects was announced in 2013. Quebec’s environmental regulation agency (BAPE) recommended in July 2015 after a year-long review, that uranium mining be banned at least temporarily or even permanently. Supported by indigenous communities and environmental activists, BAPE noted the dual problems of the long half-life of radioactive materials and the lack of long term studies of techniques to store such material. Leaving aside the problematic uranium sector, Plan Nord is making measurable progress toward its goals. The building of an extension of Labrador Ave. in BaieComeau has begun as the starting point of the future route 389. One project that will benefit from a new all-weather road is the Lake Gueret project of Mason Graphite located about 300 km north of the town. SPN, Tata Steel Minerals Canada and Quebec Iron Ore (a Champion Iron subsidiary) have agreed to develop and manage industrial facilities at Pointe-Noire in Sept-Îles. The $220-million investment will create facilities that can handle the largest iron ore carriers in the world. Iron ore from the Labrador Trough will be shipped from Pointe Noire to global customers. Construction began in July on a $15-million conveyor that gives access to the multi-user dock in the port of Sept-Îles. By April 2017, the Quebec government said it could link as many as 7,350 jobs to Plan Nord activities. Mining construction activities generated 5,400, mining operations provided 1,600, and direct investment by the SNP made 350 more available. Quebec and the Canadian governments are investing almost $265 million for major repairs to James Bay Road. The project covers 620 km, more than half of which will be resurfaced. Replacing culverts and road safety devices will extend the life of the road, reduce long term maintenance costs, and bring more goods and services to remote communities. A commercial greenhouse pilot project, co-ordinated by SPN, will be built in Kuujjuaq. It involves spending $5 million over three years. The greenhouse will be warmed by heat from a waste-to-energy plant. The project is aimed at two goals: 1) providing fresh fruit and vegetables for residents and 2) solving the problem of open air waste burning. In August, SPN announced it will support eight local initiatives in Nunavik (the northernmost region of Quebec, not to be confused with the territory, Nunavut). These include a symposium on school success, a study of the Arctic char in Deception Bay, business collaboration missions, community land use, hiring of a social worker, renewable energy, and the feasibility of a fish farm. As laid out, Plan Nord is a very broad-based undertaking. The exploration, development and mining industry has much to contribute to the economic expansion of the region. The forestry, oil & gas, as well as infrastructure construction will also contribute. But do not let us lose sight of the great progress that can be made by indigenous and local communities. Economic opportunity can lead to entrepreneurship, sustainable individual incomes, better transportation, lower cost nutrition, and many CMJ more benefits we in southern Canada take for granted. www.canadianminingjournal.com

2017-09-27 12:52 PM

CANADA’S

East Coast 28 31

TREVALI THINKS ZINC IN NEW BRUNSWICK

27_CMJ October2017_East Coast Cover.indd 27

RAMBLER RAMPS UP AT MING Rambler Metals & Mining’s Goodyear’s Cove port site in Newfoundland, used to store and ship concentrate. CREDIT: RAMBLER METALS & MINING

2017-09-27 12:52 PM

The East Coast

CARIBOU F the cornerstone of Trevali’s zinc strategy By D’Arcy Jenish

or half a century – from 1958 till 2008 – several companies took a run at mining the polymetallic Caribou deposit in northeastern New Brunswick, which hosts zinc, lead, copper, silver and gold. But for one reason or another, either low commodity prices or inappropriate technology, none succeeded in the long run. The prospects appear much more favorable for the most recent owner-operator – Vancouver-based Trevali Mining. Trevali has the right technology for milling the extremely fine grade ore and zinc – the predominant mineral in the ore – is in short supply while demand is strong and growing. Equally important, though, the Caribou mine is the cornerstone of the company’s strategy of becoming one of the world’s leading producers of zinc – a vitally important base metal. Indeed, Trevali vaulted from Canadian junior producer to top 10 globally last month when it acquired an 80% interest in the Rosh Pinah mine in Namibia and a 90% stake in the Perkoa mine in Burkina Faso from Glencore. Both mines produce zinc.

Underground development at Trevali Mining’s Caribou mine in New Brunswick. CREDIT: TREVALI MINING

28 | CANADIAN

MINING JOURNAL

28-30_CMJ Oct2017_Trevali.indd 28

www.canadianminingjournal.com

2017-09-27 12:53 PM

IA L

MA N

28-30_CMJ Oct2017_Trevali.indd 29

OUR RES OU ING R AG CE

OCTOBER 2017

both in late September. The Halfmile property contains indicated resources of 6.3 million tonnes grading 8.13% zinc, 2.58% lead, 0.22% copper and 30.8 g/t silver (plus 6 million tonnes of inferred resources at slightly lower grades) and is open at depth. Stratmat contains indicated resources of 4.7 million tonnes grading 5.31% zinc, 2.07% lead, 0.41% copper, 48.5 g/t silver and 0.6 g/t gold (plus 2.4 million inferred tonnes at simCONTINUED ON PAGE 30 ilar grades).

“We have more than doubled our zinc production with the closing of those acquisitions,” says Trevali president and chief executive officer Mark Cruise. “We’re now the eighth largest zinc producer globally and given that 85 to 90 per cent of our revenue is from zinc, we are the world’s largest Mark Cruise pure-play listed zinc company.” Trevali acquired the underground Caribou mine, located 50 km west of Bathurst, N.B., in 2012 and declared commercial production in July 2016. The company invested between $80 and $90 million to put the property into production, but Cruise notes that that was about half what it would have cost to develop a green field discovery. Trevali inherited about 13 km of underground workings and a shaft that descends to 500 metres below surface. For the time being, the company is relying on ramp access to move men and equipment into the mine and to haul the ore out. However, the ramp and tunnels were constructed to accommodate 30-tonne trucks and Trevali enlarged them to enable 42-tonne trucks. The 3,000-tonne-per-day mill also required upgrading. “The mill was built over three main periods,” says Cruise. “It was a bit of a Frankenstein, to be honest. Each mining company tweaked bits and pieces so you had a variety of standards, whether it was piping or pumping.” Trevali updated the piping and pumping and built a new SAG mill which grinds the rock to particles measuring 30 microns. That is fine enough for typical zinc-bearing ores. However, the Caribou mine’s polymetallic ore must be ground even finer in order to separate the lead from the zinc. So it’s ground a second time in an IsaMill grinder – a technology developed in Australia in the early 1990s and now used by 40 different companies in 20 countries. It grinds the ore down to 10 to 15 microns. “It’s almost like talcum powder,” Cruise says. “It’s that fine. That’s what we need to do to liberate the metal.” The Caribou mine currently has a projected lifespan of six years based on a measured and indicated resource of 7.2 million tonnes and an inferred resource of 3.6 million tonnes. The ore currently being mined averages 7% zinc, 2.8-3% lead, 0.3-0.4% copper, and 60-80 g/t silver as well as 1 g/t of gold. “It’s a true polymetallic deposit,” Cruise says. “We only produce two saleable products at the moment, a zinc concentrate and a lead-silver concentrate. We’re looking at lab-based tests or pilot-plant testing to see if we can produce a copper-gold concentrate.” Trevali is currently conducting exploratory drilling at the Caribou deposit and all indications are that it is open at depth. The company also owns two other nearby advanced exploration properties – the Halfmile mine and the Stratmat – that could significantly extend the life of the camp since both are within trucking distance of the Caribou mill. Trevali will be releasing advanced engineering studies on

T LO T EN PING OU R P O

November 1 - 4, 2017 Delta St. John’s Hotel & Conference Centre, St. John’s, NL

‘New Trends and New Developments’ Mines Branch Overviews & Posters Geological Survey Public Lecture Trade Show Short-Courses Networking Events Procurement Session Prospectors Tent Core Shack Technical Sessions on Geology, Exploration & Mining

For further information, please contact: Phil Saunders: philsaunders@gov.nl.ca tel 709.729.6193 Shawn Duquet: shawnduquet@gov.nl.ca tel 709.729.0573 www.nr.gov.nl.ca/nr/mines/mineral.html

NL Branch

CANADIAN MINING JOURNAL |

2017-09-27 12:54 PM

The company also owns the small satellite Restigouche mine and plans to put it into production in the second half of 2018. It is only 20 km from the Caribou mine and ore can be transported by truck on paved road to Caribou for processing. “We’ve got the only active mine in the Bathurst camp,” Cruise says. “Our hope is that all the deposits remain open for expansion. It allows us to take a longer-term view of the business than has been the case previously.” And the company’s timing couldn’t be better. Zinc is currently trading at a 10-year high and Cruise believes that the rally has just begun. The commodity is in short supply, largely due to a shortage of funds for exploration and development for the past 15 to 20 years. At the same time, demand has been increasing. Zinc has long been used primarily as an anti-corrosion agent in automobiles, appliances, infrastructure and steel rebar, among other things, but new uses are emerging. Zinc is now being added to fertilizers and has been shown to increase yields by 20-30%. As a result, farmers are using more fertilizers containing zinc every year. New research is also showing that zinc-based batteries may be safer and more stable than the lithium batteries that currently dominate the market. “That’s why we think this zinc rally could be stronger for longer,” Cruise explains. “We’re well-positioned to develop our mines, grow the company and take advantage of growing demand for the commodity.” CMJ

Above: The 3,000 t/d processing plant at Caribou. CREDIT: TREVALI MINING Below: Flotation circuit at Caribou. The plant produces a zinc and lead-silver concentrates. CREDIT: TREVALI MINING

THE POWER OF PEOPLE, FOR OVER 50 YEARS www.MacintyreMining.com

1390 Government Road West Box 517 Kirkland Lake, ON P2N 3J5 | Telephone: 705.567.6663 | Fax: 705.567.4925

30 | CANADIAN

MINING JOURNAL

28-30_CMJ Oct2017_Trevali.indd 30

www.canadianminingjournal.com

2017-09-27 12:54 PM

The East Coast

RAMBLER plans new chapter for Ming Expansion in the works for Newfoundland copper mine

By D’Arcy Jenish

ambler Metals and Mining is a small Newfoundland copper producer but the team of executives who run the company intend to more than triple the daily production from their underground Ming mine, which is located near the town of Baie Verte on the northeast coast of the province. And they have put in place a solid plan to achieve that lofty goal. Rambler put the mine into production in the fall of 2010 – after it had lay dormant for almost 30 years – and declared commercial production one year later. Since then, the company has been mining and processing 650 tonnes per day, but it is currently in the process of ramping up to 1,250 tonnes a day and the longer term goal is 2,000 tonnes daily. “Our first milestone is to achieve 1,250 tonnes on a consis-

OCTOBER 2017

31-32_CMJ Oct2017_Rambler.indd 31

tent basis by the end of this year,” says Rambler president and CEO Norm Williams. “What we’re looking at beyond that is how we can get to 2,000 tonnes to unlock more value.” A subsidiary of New Brunswick’s Irving Oil Group developed the Ming mine and operated it from 1972 until 1982. The company mined a massive sulphide deposit down to a depth of about 762 metres (2,500 ft.), but had to cease operations after reaching the limits of its mining claims. When it failed to reach an agreement with an adjacent property owner, it mothballed the mine. CONTINUED ON PAGE 32

Top. A Haulage truck brings a load of ore to surface at Ming. Middle. The Ming mine site, including the portal entrance, waste water treatment plant, maintenance garage and mine office/dry buildings. CREDIT: RAMBLER METALS & MINING

CANADIAN MINING JOURNAL |

2017-09-27 12:54 PM

By the late 1990s, the claims on both properties had lapsed. Newfoundland-based Altius Minerals assembled the claims in one large package to avoid future disputes and began drilling from surface a promising deposit called the Lower Footwall. Altius created Rambler Metals & Mining to develop the property and funded it through a public share offering, but subsequently relinquished its interest. Rambler de-watered the mine – pumping 1 billion litres (290 million gallons) of water out of it – in order to conduct underground drilling of the massive sulphide deposit and the Lower Footwall. The drilling revealed that the Lower Footwall is a much bigger orebody than the massive sulphide deposit,

We’ve got it in the bag! BULK BAGS TOTE BAGS SUPER SACKS

If we don’t have it, we’ll custom make it for you!

info@bagsupplies.ca • www.bagsupplies.ca Tel: 1.519.271.2040 Fax: 1.519.271.2027

32 | CANADIAN

MINING JOURNAL

31-32_CMJ Oct2017_Rambler.indd 32

Williams says. It is 150 metres wide along strike and 30 to 40 metres thick on average and the grades increased as they drilled deeper into it. Nevertheless, Rambler has been mining the massive sulphide deposit since putting the mine into production. The company has been processing ore at the Nugget Pond milling facility, which is located some 40 km from the mine. It was constructed in the mid-1990s as a gold processing facility, but Rambler acquired it in 2009 for $3.5 million and added a copper flotation circuit to handle ore from Ming. Rambler is now beginning to mine the Lower Footwall deposit – the key component to boosting production to 1,250 tonnes per day. But before it could begin tapping that orebody, the company had to construct new ramps, some existing ones had to be enlarged and the company required additional outside financing to handle that level of capital spending. In June 2016, CE Mining Fund II, a private investment firm based in the Cayman Islands, injected some $38 million (£20 million) in exchange for 72% of the outstanding shares in Rambler. “They are the controlling shareholder right now,” Williams acknowledges. “They see tremendous value that can be unlocked. That’s why they invested. They’re five to ten-year money. They’ll get out of the stock when we create the value that Rambler is capable of creating.” Rambler intends to issue a new National Instrument 43-101 report updating a 2015 prefeasibility study on Ming and confirming that the mine has achieved consistent production of 1,250 tonnes per day – two-thirds of which will come from the Lower Footwall. From there, the company will set its sights on boosting production to 2,000 tonnes a

Rambler’s concentrate storage and shipping facility; Employees at the Ming mine. CREDIT: RAMBLER METALS & MINING

day. Williams says the company plans to release a feasibility study in the second half of 2018 outlining how it can get to 2,000 tonnes per day – then Rambler will go shopping for more capital. Rambler will conduct a deep drilling program on the Lower Footwall to determine the full extent of the deposit. The company also has the option of re-commissioning a shaft, which the original operators sunk to a depth of 550 metres (1,800 ft.). However, the hoists and electrical works were stripped out when the mine was mothballed. The Ming mine will remain Rambler’s cornerstone and Williams envisions a 20-year operation at 2,000 tonnes per day, but the company also has other irons in the fire. In February, 2012, Rambler acquired a 17% stake in Maritime Resources, a junior exploration company that owns the Hammerdown gold mine, which is also located in the Baie Verte area. It operated briefly before being closed in 2004, but a National Instrument 43-101 report concluded that the deposit could still yield between 360,000 and 480,000 oz. of gold. And the company has one other prospect in its portfolio. In June 2016, Rambler completed the acquisition of Thundermin Resources and its Little Deer project, an advanced exploration copper property located in the same bay as the Nugget Pond facility. “We have a great story with big scale-up opportunities,” Williams says. “The demand is there. The world needs copper. We see supply shortfalls coming and we’re expanding at a time of upward CMJ lifting prices.” www.canadianminingjournal.com

2017-09-27 12:54 PM

CMJ October2017_Ad pages.indd 33

2017-09-26 12:26 PM

IT’S TOUGH TO EXTEND DRAIN INTERVALS TO 750 HOURS BUT NOT FOR DURON™ With DURON protecting your engine you could achieve drain intervals* of up to 750 hours in even the most demanding of operations. That’s the kind of drain intervals we call tough. And it’s all proven in the real world with ﬁeld testing on tough jobs like yours.

WE’VE TALKED TOUGH. NOW WE’VE PROVEN IT. DURON.™ THE TOUGHER. THE BETTER.™

HEAVY DUTY DIESEL ENGINE OILS FIND OUT MORE. THE SOONER. THE BETTER. DURONTHETOUGHERTHEBETTER.COM

* Extending drain intervals should always be undertaken in conjunction with an oil analysis program. ™ Owned or used under license.

CMJ October2017_Ad pages.indd 34

2017-09-26 12:26 PM

Photo: ewg3D, iStockphotos.com

GETTING VEHICLES WINTER-READY

35_CMJ October2017_EMR Cover.indd 35

TIPS ON ENGINE OIL, IN-TANK WARMERS AND BATTERY HEATERS

2017-09-27 12:55 PM

PREPARING HEAVY DUTY VEHICLES FOR THE WINTER MONTHS

big CHILL

THE

By Brian Humphrey

ith the winter months approaching, itâ&#x20AC;&#x2122;s time for mining operators to prepare their heavy duty vehicles to withstand the pressure and challenges presented by extreme cold conditions. The equipment used in mining environments is exposed to varying challenges posed by cold weather. Heavy loads can put engines and other crucial component parts under strain that can lead not only to engine 36 | CANADIAN

MINING JOURNAL

36-38_CMJ Oct2017_PetroCan.indd 36

wear, but even failure. In mining operations, where time is money, downtime can equate to thousands of dollars of lost revenue and slow down overall operations. Turning our attention to engines in particular, heavy loads and extreme temperatures can put them under strain, and stress conventional lubricants. In these difficult conditions, the viscosity in engine lubricants can become a cause of concern. If www.canadianminingjournal.com

2017-09-27 12:56 PM

EQUIPMENT MAINTENANCE & REPAIR SP E CIAL REP O RT *

the temperature drops into the â&#x20AC;&#x153;criticalâ&#x20AC;? zone, depending on the chemical composition, the lubricant can start to stiffen or become overly viscous. This results in machinery hardware being improperly lubricated, and under such testing conditions, some equipment may seize up or fail. So how can mining operators ensure their engine oils are working at their optimum level and contributing to overall operational efficiencies? OCTOBER 2017

36-38_CMJ Oct2017_PetroCan.indd 37

A move to lower viscosity oils For optimum operational performance, we recommend mining operations consider using a lower viscosity oil, one which is able to maintain its viscosity and flow as temperatures drop. Lower viscosity oils provide better engine protection in colder operating conditions as they are better able to move around machinery at a quicker pace, keeping the components well CONTINUED ON PAGE 38

CANADIAN MINING JOURNAL |

2017-09-27 12:56 PM

lubricated. A colder climate necessitates the need for a lower viscosity engine oil to ensure proper and adequate flow of oil to protect key critical engine components. Depending on Original Equipment Manufacturer (OEM) recommendations, fleet managers may wish to consider additional engine oil viscosity options, such as SAE 0W-40, 0W-30 or 5W-40, which can provide superior protection for heavy duty equipment working in extreme cold environments. Why? Because these synthetic formulations are designed to shield critical engine components from the coldest climates and have been developed to deliver the highest performance standards in demanding heavy-duty applications. By choosing an effective lubricant, companies can ensure their assets and machinery remains in top operating condition in the toughest of environments and the harshest terrains. PetroCanada Lubricants’ DURON Next Generation product line is our toughest and most durable product line designed specifically to keep mining operations working, no matter what. When it comes to preparing for low temperatures, fleet managers should also be looking at their multi-grade hydraulic, driveline and gear oils. The entire vehicle powertrain and hydraulic system can experience improved operating efficiency by utilizing the lowest viscosity grades allowed by the component OEM ambient temperature requirements. It’s important to have the right stock of oils for the specific application, and operators should also be regularly checking coolant condition and batteries to ensure engines are running safely and efficiently during the cold months. Is there a need for separate summer and winter oils? The short answer is no. With the availability of multi-grade oils such as a SAE 15W-40 or 10W-30, fleets can benefit from not requiring a seasonal change, thanks to their ability to handle both ends of the spectrum of operating temperatures. This also allows mining operators to stock one product, rather than two. The cold climate poses a significant risk to machinery in the industry, as well as various other sectors. But falling temperatures doesn’t mean that equipment must be put at risk or operations must come to a halt. On the flip side, a hotter climate may dictate the need for heavier engine oil that has the added ability to resist oil breakdown at those higher operating temperatures. Our range of heavy duty diesel engine oils offer a comprehen-

The cold climate poses a significant risk to machinery in the industry, as well as various other sectors. But falling temperatures doesn’t mean that equipment must be put at risk or operations must come to a halt. sive range of products to meet any climate and operating condition, whether hot or cold. With a business to manage and vehicles to keep running, it’s important that those in charge are choosing the most appropriate product to meet the demands of the seasons, and their operating conditions. This choice should be based on the particular OEM ambient temperature range recommendations as provided in the owner’s manual. Testing conditions Used oil analysis can be of real value to the mining community and is an area of operational management which we regularly support our customers with. A good program can reduce unscheduled down-time, improve equipment reliability, extend equipment life, optimize oil change intervals and reduce maintenance costs. It is important owners understand how this testing works and how it fits into the other requirements of equipment maintenance. As part of a sound maintenance regime, a good used oil analysis program is a cost-effective process that can monitor oil condition in heavy equipment. Oil analysis typically involves three basic steps: taking a representative sample from the equipment you are interested in, sending the sample to a qualified used oil analysis lab in an expedient manner, interpreting the results and acting on them. This analysis is most effective when performed at regular intervals so that a trend can be generated, which is used to improve performance and efficiency of your equipment. We recommend mining operators make this testing an essential part of their overall maintenance schedules to ensure optimum performance all-year-round. (For more information about our LUBE 360 oil analysis program, you can visit it at https://lubricants.petro-canada.com/en-CA/knowledge-centre/LUBE360-services.) Making the right decisions now Mining operations work under time and climate-pressured conditions, and any delays or downtime can quickly accumulate to put strain on the bottom line. It’s therefore essential that heavy duty vehicles have the most efficient lubricant in place to CMJ keep the engine operating at its optimum capacity. Brian Humphrey is OEM technical liaison, Petro-Canada Lubricants. For more information please visit www.duronthetougherthebetter.com.

38 | CANADIAN

MINING JOURNAL

36-38_CMJ Oct2017_PetroCan.indd 38

www.canadianminingjournal.com

2017-09-27 12:56 PM

EQUIPMENT MAINTENANCE & REPAIR SP E CIAL REP O RT *

COLD WEATHER MAINTENANCE CUTS COSTS & DOWNTIME By David Marohnic and Vaughn Lenander

Photo: Superesc, iStockimages

anadian mining companies cannot control shifting currencies and commodity prices, but they can control how they operate. There is a real opportunity to increase margins by managing operating assets. A strategic equipment maintenance program helps ensure investments like crushers, shakers, haulers and shovels operate more efficiently and last longer thereby reducing machine repairs or replacement costs, minimizing unplanned maintenance down time and increasing worker safety. By incorporating a rigorous maintenance process that involves maintaining and modifying existing machinery and engaging in preemptive maintenance of new machinery, the industry can drive down costs, increase uptime and prioritize equipment maintenance activities by identifying the behavior of assets or asset components before functional failures occur. Cold temperatures are another critical factor for many Canadian mines. Mining equipment operates in the harshest environments, which dramatically affects reliability. Although each siteâ&#x20AC;&#x2122;s conditions differ, facing low temperatures, high winds and icy conditions make production difficult at best. Heavy machinery struggle to start and take longer to warm up, and repairs to correct issues caused by cold weather and extreme conditions cost two to six times as much as warm weather fixes. Fortunately, there are solutions and equipment that mitigate cold weather issues, and the mining industry would be well served to incorporate them into their maintenance programs.

OCTOBER 2017

39-40_CMJ Oct2017_Phillips and Temro.indd 39

Fuel Gelling Diesel fuel gels when paraffin in the diesel solidifies due to temperature drops. Of particular interest are two important temperature points: the cloud point (approximately 0 Celsius) which is the temperature at which paraffin wax begins to precipitate in the fuel; and the pour or gel point (approximately -9 Celsius), where so much wax has precipitated that fuel no longer flows. The solutions are relatively simple, and need to be proactive. Additives prevent the paraffin wax from gelling together and solidifying. In-line fuel warmers can be installed directly in the fuel line immediately before the filter. This keeps fuel warm prior to entering the filter to avoid clogging. Yet another option is an in-tank warmer which warms fuel as it is being drawn out of the tank. Heat generated from warm coolant is transferred to the cold fuel. If sufficient heat is not available prior to startup, an auxiliary heater can be used in conjunction with in-line and in-tank warmers to preheat the fuel and prevent problems associated with fuel gelling at engine startup. For larger engine applications or lesser quality fuel, multiple warmers may be used simultaneously. Cold Hydraulic Fluid The effects of cold weather are similarly devastating for hydraulic fuels. High oil viscosity can result in a dramatic drop in the CONTINUED ON PAGE 40

CANADIAN MINING JOURNAL |

2017-09-27 12:57 PM

oil’s static pressure, which is caused by excessive suction on the pump’s inlet. The reduction in pressure causes vaporous bubbles which are released into the oil, wreaking havoc on the hydraulic system. The proactive solution for such potentially affected assets are in-tank warmers, which heat hydraulic fluids prior to equipment operation. Stand-alone heat exchangers transfer excess heat from hot coolant to hydraulic fluid, and don’t require utility power. Subsequently, warm hydraulic fluid reduces pump wear and potential pump cavitation. Industrial immersion heaters are another option for cold hydraulic fluids. They are electric heaters installed in the hydraulic fluid tank which warms the fluid through direct contact with the heating element, similar to an engine block heater. Industrial immersion heaters require an AC voltage power supply of 120 VAC or higher, which can be supplied by a gen set or utility power. Cold Batteries In deep cold weather, the charge acceptance of batteries is very low, sometimes as low as 2 amps per hour. Keeping the batteries warm will maximize the power output and ability to accept a charge. Additionally, cold electrolyte in a flooded cell battery slows down the molecular action in the battery. The colder the batteries, the more resistant they are to accepting a charge and the available power is decreased. Maintaining warm batteries before engine startup will help to assure maximum battery power output. During engine operation, maintaining warm batteries will allow them to accept a full charge for engine startup. In cold weather operation discharged batteries can freeze and should not be jumped. Effective options to maintain battery heat include

heat exchangers or electric battery blankets. Heat exchangers installed under the batteries use heat from circulated hot engine coolant. Battery blankets are wrapped around the batteries and run off 120 or 240 Volt AC. These warming products help prevent deep cycling, extend battery life, and put less load on charging systems. Engine Run Time Reducing the run times helps extend time intervals between routine service maintenance, thereby reducing the number of hours on the main engine. By adding a preheating system, such as a diesel fired coolant heater or electric heaters powered by a gen set or utility power, the subsequent heat energy sources provide heat to in-line, in-tank or electric heaters without starting the main engine. Mining operations in Canada rely on heavy machinery which, in many cases, do not have the luxury of operating in optimum conditions. They run in some of the coldest, most adverse conditions and failure is not an option. Granted mining machines are designed to be highly durable, but a proactive maintenance plan and advanced heating systems will ensure they meet the rigorous demands of cold weather, as well as open pit and hard rock mines. CMJ David Marohnic and Vaughn Lenander are sales and application engineers at Phillips and Temro Industries, a global OEM and aftermarket provider of custom engineered thermal systems and solutions. 1. Hot Fox in-tank fuel warmer with thermostat.

2&3. BH-3100 Series severe cold weather battery heater that utilizes heat energy from engine coolant. 4. I-909BTEH-B100 in-line fuel warmer with 120V electric preheat. CREDIT: PHILLIPS & TEMRO

40 | CANADIAN

MINING JOURNAL

39-40_CMJ Oct2017_Phillips and Temro.indd 40

www.canadianminingjournal.com

2017-09-27 12:57 PM

PROFESSIONAL DIRECTORY SILO INVENTORY IN 3D Scanner

• Non-contact sensors • Accurate in dust

   

• Remote monitoring • Automated alerts

WWW.CONMICO.COM

GROUT SYSTEMS MIXERS SHOT-CRETERS CONCRETE PUMPS TEL: 1(905) 660-7262

www.binmaster.com l 1-800-278-4241

ADVERTISERS INDEX Accurate Court Bailiff Services ................................... 41 aebailiffs.com Alex MacIntyre & Associates ....................................... 30 macintyremining.com Bag Supplies Canada .................................................. 32 bagsupplies.ca Bel-Ray Lubricants ........................................................ 4 belray.com BinMaster . . . ................................................................. 41 binmaster.com ConMico Inc. ............................................................... 41 conmico.com DRA Global . ................................................................. 21 draglobal.com Eastmain Resources .................................................... 26 eastmain.com Eriez . . . . . . . . . . . . ................................................................. 19 eriez.com Ford Motor Co. of Canada .................................. 22 & 23 ford.ca Hard-Line Solutions .................................................... 43 hard-line.com Hercules Sealing Products .......................................... 41 herculeslca.ca Imperial Oil Mobil ........................................................ 15 mobil.com/shc Metso Minerals ............................................................ 44 metso.com Government of Newfoundland .................................... 29 gov.nl.ca Petro Canada Duron .................................................... 34 duronthetougherthebetter.com Redpath Mining ........................................................... 11 redpathmining.com Ressources Metanor ................................................... 18 metanor.ca Sandvik Mining .............................................................. 2 sandvik.com SRK Consulting ........................................................... 41 srk.com OCTOBER 2017

41_CMJ October2017_Directory.indd 41

>1,400 professionals • > 45 offices • 20 countries • 6 continents

COURT BAILIFF SALE OF MINERAL TENURE LOCATED IN SOUTHEASTERN B.C. FOR SALE: Mineral Tenure formerly held by AMT Tillicum Holdings Inc. (the “Mineral Tenure”) pursuant to a Supreme Court of British Columbia Writ of Seizure and Sale filed on March 2, 2017 in BC Supreme Court Action No. S153545 1 Mineral Tenure, in the Slocan Area, Southeastern, British Columbia. Tille#: 320414/Title Type: Mineral/Title Sub Type: Lease/Title Type: Mining Lease/Mining Division: Slocan/Owners: 283749 Mineral Titles Branch AMT Tillicum Holdings Inc./Info at “BC Mineral Titles Online”. Terms and Bid Documents may be obtained from the Court Bailiff. Warning – This property is offered for mining purposes only and ownership of the title to it does not Include ownership of the surface rights or the right to use the surface for residential or recreational purposes. BIDDING ENDS: Noon, PDT on October 31/2017.

For further information on Terms and Conditions and/or to obtain a bid form please contact the Court Bailiff: PHONE:

604.526.2253

EMAIL:

support@aebaillffs.com

CANADIAN MINING JOURNAL

| 41

2017-09-27 12:58 PM

CSR & MINING

It’s time for a national plan on responsible business and human rights By Michael Torrance

anada is lacking a coherent policy approach to address business and human rights as well as the risks of modern slavery in corporate supply chains. Closing this gap should be a priority for the Canadian government to keep up with our global peers and maintain competitive advantage for Canadian business. An important first step would be to develop a national action plan on responsible business and human rights. Such a plan would bring Canada in line with Britain, Australia and the United States, all of which have either introduced legislation or developed action plans in line with global standards. There is an increasing expectation that businesses should respect human rights and take concrete, actionable steps (such as due diligence, monitoring and reporting) to prevent human rights abuses in company operations and provide remedies if such abuses take place. Many Canadian companies do substantial work to ensure this happens. However, there is little or no unifying direction from the federal government. In 2011, the United Nations Commission on Human Rights adopted the Guiding Principles on Business and Human Rights, which codifies the concept of corporate respect for human rights. The U.S., Britain and several European countries have developed national action plans for implementation of this standard. In 2015, Britain introduced the Modern Slavery Act, which requires businesses of a certain size to report on how they manage the risk of slavery in their global supply chains. While no particular management approach is prescribed, the act of reporting on how companies take steps to address risks of human trafficking, debt bondage and forced labour drives market pressures to adopt best practices. A similar legislative approach has been adopted in California and will likely soon be adopted in Australia. But the Canadian government has not yet followed suit. While human rights and Indigenous rights have been raised by the government as an issue for discussion in the context of the North American Free Trade Agreement negotiations and is regularly addressed in international trade agreements, there is no public policy strategy to address the human rights impacts of Canadian business globally and in line with international standards. The United Nations Working Group on Business and Human Rights recently commented on a lack of coherent policy in Canada on this topic – underscoring the reputational risk of not addressing it squarely. 42 | CANADIAN

MINING JOURNAL

42_CMJ Oct2017_CSR.indd 42

A national action plan will put Canada on a path to promote global competitiveness and enhance Canada’s reputation in the ﬁeld of human rights.

Promotion of good practices will be a net benefit for Canadian companies as it will set a baseline for behaviour that meets the responsible business and human rights expectations of investors, financiers and customers. These market actors increasingly condition access to capital and markets on sound human rights practices. There is also an important role for government to promote consistency in setting a standard of acceptable conduct to protect the reputation of Canadian business globally. Since 2009, Canada has had in place a corporate social responsibility strategy for the extractive sector, which is intended to preserve and enhance the reputation of that industry globally. These mechanisms were innovative for their time but are not keeping pace with global developments. The current policy approach is overly focused on the mining sector, ignoring global supply chains that cut across industries. The current strategy has also failed to address legal uncertainty regarding the remedy of human rights impacts. This has resulted in costly lawsuits being filed in Canada concerning alleged human-rights impacts outside of Canada. A national strategy should give thought to how the issue of remedy should be dealt with and whether the courts are in fact the right venue to address these issues. The experience of other jurisdictions strongly suggests they are not. Any national action plan would need to grapple with whether new, creative approaches are needed. Canada has an opportunity to again be a world leader on the topic of responsible business and human rights. A national action plan will put Canada on a path to promote global competitiveness and enhance Canada’s reputation in the field of human rights. It is much needed and long overdue. This fall, public hearings hosted by the federal government will consider how to deal with the issue of child labour and will inevitably consider the topic of human rights in supply chains. These hearings will hopefully initiate a dialogue that will CMJ move Canada in the right policy direction. MICHAEL TORRANCE is a lawyer with Norton Rose Fulbright, Toronto.

www.canadianminingjournal.com

2017-09-27 12:59 PM

CMJ October2017_Ad pages.indd 43

2017-09-26 12:26 PM

Take a digital step towards cost effective maintenance with Metso Metrics Services. This is how we make the big difference, the Metso Way.

Looking for ways to improve the performance of your LokotrackÂŽ mobile crushing and screening fleet? Before making important decisions that affect your maintenance and operations, you need access to the right data at the right time. Metso Metrics Services, our remote monitoring and reporting system, gives you key operational and maintenance data with access to Metso and our partnersâ&#x20AC;&#x2122; expertise. Information measured and recorded include utilization rates, production levels, maintenance plans, and fuel consumption for your mobile equipment. Through our unique combination of technology, OEM parts, and full range of services, we offer the ultimate solution to help you achieve the maintenance and performance results you set for your fleet. Find out more at metso.com/MetricsServices #TheMetsoWay

CMJ October2017_Ad pages.indd 44

2017-09-26 12:27 PM