Mining Life & Exploration News - The Northern Mining Report by Mining Life & Exploration News

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Publisher’s Note: Glenn Dredhart

The tallest buildings - the deepest mines - the strongest families. Without a solid foundation, they’d all collapse. For more than 34 years, Mining Life has been and important link in the chain that holds northern Ontario’s resource sector in place. While Ontario remains an attractive jurisdiction in which to conduct business, the companies that operate within our borders and neighbouring northwestern Quebec, have global footprints with global challenges. Mining Life and our sister company, trade show experts Canadian Trade Ex, have been here for decades providing a window into the important issues of the day. Whether its technology, labour, regulatory or indigenous issues, we are here. Companies like Glencore, Barrick, Vale and others

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commit enormous resources to navigate the often uncertain and choppy geopolitical waters in less-developed jurisdictions, or emerging markets. These giants pave the way for the juniors and explorationists to follow behind. There are incredible challenges facing today’s resource sector. Who could have predicted, for example, that a deadly flulike virus in China would send the price of copper on a roller-coaster ride? Who could have predicted the worldwide shortage of skilled trades personnel? The Mining Association of Canada released a report early this year that suggests the country’s $47 Billion industry is facing a shortage of nearly 80,000 skilled workers in the coming years as veteran miners and engineers retire. Who could have predicted that Tesla would be one of the world’s largest auto manufacturers, outpacing companies like General Motors? Each has an impact on mining. When it comes to leadership I’m proud of our history of bringing stakeholders together. Timmins mayor George Pirie was recently quoted as saying “ We need to become important to someone.” The former Placer Dome Canada CEO has been around the block and his words make perfect sense. Who is going to step in to that role? What senior level (federal or provincial) politician is going to champion the

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Canadian Mining Industry? Canadian miners are already recognized worldwide as responsible stewards and exemplary environmental role models. The IBA’s or Impact Benefit Agreements negotiated between Indigenous communities and mining companies operating in Canada are equally exemplary. Nothing is perfect. They aren’t called stakeholders for nothing. That’s why we at Mining Life and Canadian Trade Ex remained committed as ever to bringing those players together in the pages of our quarterly magazines, our website, and on the floor of our trade shows in historic resource-sector cities like Timmins, Sudbury and Thun-

der Bay. As the inaugural publisher of this magazine, I want you to know that our dedicated team of writers, account executives and administration professionals are uniformly committed to bringing the industry’s stakeholders together. As mayor Pirie continues his honourable quest to find that elusive MP, MPP, cabinet minister or Premier who embraces the notion of claiming Canada’s mining industry as important - know that we at Mining Life have considered our mining industry to be important for 34 years and we will consider it important for the next 34 as well. Page 5

By Kevin Vincent

A little over a year under his belt and there’s no looking back for Ontario’s Minister of Northern Development – the man who essentially oversees the province’s mining industry. Greg Rickford’s cabinet position has a multitude of moving parts. The full title is Minister of Northern Development, Energy, and Indigenous Affairs – portfolios that intersect on several mining fronts. Mining Life & Exploration News caught up with Rickford in early 2020 to talk about his first year in cabinet and the start of this new decade. Rickford’s top-of-mind topic was energy, a true hot button for Ontario’s $10 billion mining industry. “The amalgamation of Northern Development and Mines and Energy made perfect sense,” he told Mining Life. “The energy portfolio is a policydriven piece, a lot of the pieces that come into the ministry go out on rate mitigation.” He says his ministry is spending more time on policy and he feels the Ford Page 6

government has been very successful in its first year and a half tackling mistakes of the previous governments. “Essentially, we’ve been clearing the trees so we could see the forest,” he said. “More pointedly, cleaning up the corporate culture of electricity operators, specifically Hydro One and the sixmillion-dollar man.” Rickford is referring to high profile forced resignation of Hydro One’s President and CEO Mayo Schmidt in early 2019. In addition, the Conservative government is overhauling the Ontario Energy Board, expected to take a couple of years. Drilling down on energy issues, Rickford says he expects the government to make serious headway on issues such as peak load rates, the inflated rates charged to businesses and property owners who need electricity at important hours of the day that “drive people nuts” he added, while holding any rate increases to the cost of inflation instead of the 60% increase that happened in Ontario between 2009 and 2016. Rickford says the government is look-

ing at ways to consolidate local distribution companies and drive efficiencies in the overall system. The Minister pointed out for example, that the Newmont Goldcorp all-electric Borden Mine is a bellwether project the rest of Ontario needs to pay close attention to. He told Mining Life that the underlying intent of the allelectric production cycle is both honourable and commendable, if the cost of electricity is prohibitive, the benefits are tainted by the higher operating costs associated with high-priced energy. “You can’t have this marvelous shift in how to operate mines, certainly way more environmentally-friendly, when the cost of electricity is so high, it could be prohibitive for other mining operations to go that next step.” On the mining side, Rickford says he couldn’t be more pleased about the progress that they have made since taking office. In March of 2019, Rickford formed the Mining Working Group, a stakeholder advisory body. The group works on a 3-month objective where they examine issues and take action on them within that time frame. “I’m happy to say that we’ve achieved a number of goals including red tape reduction. For example, making it a requirement to file a return and closure plan amendment within 45 days, amended regulations to reflect the most current version of things like dam safety guidelines and reducing red tape around things like amalgamating mining claims,” Rickford said. For larger companies, the government has passed tougher regulations for establishing more realistic timelines for reducing SO2 emissions. Rickford is quick to point out that mining executives are telling Cont’d on pg. 8

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Newmont rebranding drops Goldcorp portion of name By Kevin Vincent

The start of the new year and new decade ushered in a new name, of sorts, for the owner of Timmins’ longestoperating producer. Newmont-Goldcorp is now, simply, Newmont. In their early 2020 announcement, the Company refreshed its brand, name and logo to reflect what it says is its strong and stable foundation following two historic transactions in 2019. Newmont’s refreshed brand is being

Cont’d from pg. 6

him that the new government has done more in their first year and a half than previous governments had done in six years. “The bottom line is we have to get these mines permitted and open faster than they have historically.” The Minister says industry and government officials are very excited about the Greenstone gold project in northwestern Ontario, “That’s a game-changer for Geraldton,” he added. “We managed to take care of all the regulatory and indigenous engagement issues that they were staring down so they could make a clear decision about the viability of that project. We believe there is great potential for them to announce something in the coming months to move Page 8

unveiled as Newmont enters its centenary year in May of 2020. The company says it will begin its next century of superior performance, value creation and sustainability leadership on May 2, 2021. “We successfully completed two historic transactions in 2019, which have transformed Newmont into a truly international organization with an unmatched portfolio of assets and prospects in top-tier jurisdictions around the world,” said Tom Palmer, Presi-

towards opening.” Rickford says more importantly, the Greenstone project will serve as a launchpad of sorts for communities to access supplies and services for the Ring of Fire region. The government’s approach over the past year and a half to resolving the long-standing challenges of opening the Ring of Fire region has been to focus on road access, which is also a major issue for First Nations communities. He says if a mining operation can evolve from those efforts, then that would be great news. Rickford says if he has a message for investors and other observers it’s that Ontario is “open for business and mining is open for business”. He adds that the government has approached indigenous community relations in a far more pragmatic

Tom Palmer, President and Chief Executive Officer, Newmont.

dent and Chief Executive Officer. “As this company has done many times in the past, Newmont has demonstrated its ability to adapt to change, which is truly a hallmark of our success over the last 100 years. Updating our brand represents a natural step as we approach the next 100 years in Newmont’s long and proud legacy of operating discipline, profitable growth, environmental stewardship, and developing the industry’s best talent.” Approaching 100 years as a global leader in mining, the “Newmont” Cont’d on pg. 10

way. They scrapped a prior agreement known as a Regional Framework that was essentially accomplishing very little after $20 million in taxpayers’ dollars had been spent. Instead, the government is focused on legacy infrastructure for FN communities, such as road access and workable and reasonable revenuesharing agreements typically built into IBA’s, or Impact Benefit Agreements. On that topic, he says he expects announcements in the coming weeks and months that will have a dramatic impact on the region that Ontario should have accomplished many years ago. “Our goal is to continue to work towards creating the right conditions so that mining companies can come in and pursue an opportunity,” he added.

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Borden Lake – Plugged in

but energy minister concerned about hydro rates By Kevin Vincent

Commercial production at Newmont’s all-electric Borden gold mine began in the fourth quarter of 2019 and according to Mining Life sources, the operation is running smooth. The mine, near Chapleau, is 160km west of the company’s historic gold mining properties in Timmins. Borden’s entire underground fleet of vehicles is operated with batteries and electricity, which dramatically reduces greenhouse gas emissions (GHG’s). In fact, the company expects the underground GHG carbon footprint to be fifty percent less than traditional emissions created by diesel-based equipment. Borden is expected to contribute 1800 tons a day and has created about 250 jobs. At the time of the opening, Newmont President and Chief Executive Office Tom Palmer stated: “Borden joins the next generation of Newmont Goldcorp mines and leverages our leading land position to anchor this new gold district in Ontario.” And while the success of Borden and the benchmark it represents are laudable, even Ontario’s Minister of Energy, Greg Rickford, who attended the mine’s ceremonial opening, is concerned that the benefits may not outweigh the negative impact of high hydro rates. In an exclusive profile interview in this edition of Mining Life, Rickford said, “You can’t have this marvellous shift in how to operate mines, Cont’d from pg. 8

name is well recognized and has been an iconic brand among the S&P 500 and various indexes. The updated Newmont logo leverages the gold triangle from the previous logo – which represents the apex of the industry and the pinnacle of leadership – to anchor the strength and stability conveyed by Page 10

Timmins’ Mayor George Pirie, on the Left has one on one time with Ontario Mine Minister Greg Rickford on the right. The two discuss the future of Mining in Timmins and Northern Ontario. certainly way more environmentallyfriendly, when the cost of electricity is so high, it could be prohibitive for other mining operations to go that next step.” It’s a topic that Rickford expressed both privately and openly at a Timmins Chamber of Commerce luncheon in late January. “We have an ambitious agenda for Ontario’s mining sector,” said Rickford, the MP for Kenora-Rainy River, one of the hottest mining regions in Canada right now. “We remain a leading jurisdiction for mining on the international mining stage, but as I often say, in spite of ourselves.” Rickford says there are still a number of jurisdictions outperforming Ontario and energy rates are a big factor. The minister told the audience that Newmont officials confided in him that his government did more from a regulatory standpoint to get the mine operating than the previ-

ous Liberal government had done in six years. “It cannot take us eight years to open up a frigging mine,” Rickford said. He finished that remark by asking the audience, “Can I get an amen?” and attendees responded enthusiastically. Timmins mayor George Pirie concurs. Pirie told Mining Life that the Canadian mining industry is among the most responsible in the world and operates in one of the most regulated jurisdictions on the planet. “I think the minister and his staff, along with the ministry’s new working group are doing an outstanding job trying to eliminate costly and unnecessary regulations that do little, if anything to protect the environment or enhance the lives of our indigenous population,” said Pirie. “Having said that, the industry and the ministry have a duty to consult with all stakeholders in a fair and responsible manner,” he added.

the new logo. “While our proven strategy and core values remain key to our ongoing success, we’ve updated and adapted our brand to reflect our position as a transformed business and the world’s leading gold company,” Palmer added. Newmont has the strongest and most

sustainable portfolio of operations, projects and exploration prospects in the gold sector. These assets allow the Company to sequence profitable projects in its unmatched pipeline to sustain stable gold production over a decades-long time horizon in top-tier jurisdictions around the globe.

Page 11

Kirkland Lake Gold takes a

Detour

By Kevin Vincent

Well, that seemed painless.

Now the down and dirty work of merging cultures and creating synergies begins for the “new” Kirkland Lake Gold. By the numbers it looked like this: 155,221,082 Kirkland Shares, representing 74.05% of the issued and outstanding Kirkland Shares as at the record date, were voted at the company’s special meeting January 28th, and the Kirkland shareholder resolution was approved by approximately 98.99% of votes cast by shareholders either in person or represented by proxy at the meeting. In addition to the approval by Kirkland Lake Gold shareholders, Detour Gold shareholders approved the arrangement at its own special meeting. Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, commented: “We are pleased that our shareholders have voted overwhelmingly in support of our acquisition of Detour Gold. Once complete, the transaction will create a highly competitive, truly unique company in the gold mining industry. By combining Detour Lake with Page 12

our Macassa and Fosterville mines, we will have three cornerstone assets in our two core jurisdictions of Canada and Australia, all three of which possess free cash flow generating operations, significant in-mine growth potential, and considerable regional exploration upside.” “The new Kirkland Lake Gold will be an industry leader in profitability, cash flow generation and cash resources. Given our significant financial strength, we will become increasingly active over the next year repurchasing our shares and growing our quarterly dividends. Under our normal course issuer bid (“NCIB”), we have the ability to repurchase up to 10% of our common shares in the public float, with remaining capacity under our current NCIB for future repurchases of up to 20 million shares. As we continue to generate free cash flow, both the NCIB and dividend will be important tools used to provide attractive returns to shareholders.” In a news release at the time of the acquisition announcement in 2019, Makuch said the acquisition of Detour Gold is an excellent fit for KL Gold.

“We have already taken two mining operations, Macassa (in Kirkland Lake, Ontario) and Fosterville (in Victoria State, Australia), and transformed them into high-quality assets that generate industry-leading earnings and free cash flow. The addition of Detour Lake provides an opportunity to add a third cornerstone asset that is located in our backyard in Northern Ontario,” said the President and CEO. Detour Lake will provide the pro forma company with a 20-plus year mine life which provides unparalleled optionality and, according to Makuch, excellent growth potential for the benefit of all shareholders. “The management team at Detour Gold has done an exceptional job in making improvements and building momentum at the mine. Once the Transaction is completed, we will continue efforts to optimize current operations and commence engineering work to evaluate expansion opportunities at Detour Lake, which we anticipate could lead to significant production growth, improved unit costs and higher levels of mineral reserves and mineral Cont’d on pg. 13

Tony Makuch enthusiastic

over Detour acquisition

Cont’d from pg. 12

resources,” said Makuch. While the markets reacted negatively shortly after the announcement, the stock dipped to $51.97 CDN, it rebounded back to just over $55/ share. That rebound was likely buoyed by comments made by high profile gold investor Eric Sprott who told the Financial Post shortly after the stock price dipped that he believed KL Gold was “stealing value”. Detour reported all-in sustaining costs of $1,198 in the third quarter of 2019 while Kirkland reported allin sustaining costs of $562, about half of that. A little more than a year ago (early December 2018), Detour Gold Corporation stock was hovering around $10/share (est.) at a time when other investors waged a highly public battle for control of the gold mine. Most of Detour’s board of directors were turfed during the battle. Since then, the company’s stock has risen to as much $25.45 (at the time of printing). For his part, Makuch is highly enthusiastic about the acquisition of Detour. Any mine expansions would be self-financed, Makuch said. He defended the transaction premium and cited potential to boost annual exploration spending to $40 million per year. Cost cutting and efficiencies are expected to take place over 24 months. On completion, Kirkland Lake Gold and Detour Gold shareholders will own about 73% and 27%, respectively, of the merged company. In the interim, Detour ended 2019 on a high note according to company officials. Mick McMullen, President and Chief Executive Officer, stated: “I’m very pleased to see a substan-

tial reduction in our injury rate over the past year, which reflects all of the hard work that’s being put in by our employees and contractors to keep our people safe.” He added that the great safety result was matched by strong production for the year,

where, at 601,566 ounces, Detour Gold delivered in the top quartile of its upwardly-revised guidance range for ounces of gold production. “Our cash generation was excellent as well. We improved from a net debt Cont’d on pg. 14

Page 13

Kirkland Lake Gold poised to achieve strong

operating and financial results Cont’d from pg. 13

position of $117 million at the end of 2018 to a net cash position of $114 million at the end of 2019. That represents a total cash generation of $231 million over the year,” added McMullen. “Our Detour Lake Mine orebody continues to perform strongly, with 24.9% more tonnes and slightly lower grade (minus 4.4%) for 19.3% more ounces in 2019 relative to the mineral reserves. We are seeing more lower grade material around the periphery of the deposit which is still economic and this material is being processed as ore.” McMullen said Detour is continuing to work hard to deliver on the operational improvements that it initiated in 2019, with a view to setting up the Detour Lake Mine for continued success. Meanwhile, in a year-end statement KL Gold said 2020 consolidated production is targeted at a million ounces. In addition, the company said it is planning aggressive growth projects for both Fosterville and Macassa. Those plans include two new development ramps targeting two new mining operations at Robbin’s Hill in Fosterville as well as previously identified high-grade zones near surface at Macassa. The Company also announced Page 14

three-year production guidance for the Macassa and Fosterville mines. Production at Macassa is targeted to increase to over 320,000 ounces by 2022 reflecting initial production from the #4 Shaft and potential production from the planned Macassa surface ramp. Production at Macassa is expected to grow to well over 400,000 ounces beginning in 2023. Production at Fosterville is expected to maintain the strong growth achieved in 2019 over the next three years as mining continues to advance in the high-grade Swan Zone, with the potential for production to commence from Robbin’s Hill in 2023. “Kirkland Lake Gold is poised to achieve strong operating and financial results in 2020, with both Fosterville and Macassa well positioned to repeat their solid performances in 2019 during the coming year,” said Makuch. “With target consolidated production of 950,000 – 1,000,000 ounces and low unit operating costs, we are on track to continue to generate industryleading earnings and significant free cash flow in 2020, which will contribute to further growth in our balance sheet strength. Going forward, our top priority will remain investing in Fosterville and Macassa given the substantial opportuni-

ties that exist at both operations for continued exploration success and additional growth. We will also look to increase the amount of capital we return to Kirkland Lake Gold shareholders through our dividend program and normal course issuer bid and continue to look for investment opportunities capable of generating attractive returns. “Looking at growth, we will continue to invest in organic growth in 2020 with the aim of advancing three new potential mining operations, Robbin’s Hill at Fosterville, previously identified high-grade zones near surface along the Amalgamated Break at Macassa, and our Northern Territory assets in Australia. The advanced exploration work in the Northern Territory is continuing into 2020 and has the potential to add to our production profile, with 100,000 to 120,000 ounces expected to be produced at the Union Reefs Mill during the coming year, which we are not including in our guidance until we reach a decision to resume commercial operations.” As for the company’s Holt Complex in the Kirkland Lake mining region, a comprehensive review of the operation is expected to continue in 2020 and a three-year forecast for that project is not part of their 2020 guidance.

Page 15

Save Canadian Mining Initiative Launched

By Kevin Vincent

It can be easily argued that short sellers have a shrewd understanding of a balance sheet and the ability to predict the future. Notwithstanding which side of the opinion ledger on which you might fall, some of Canada’s highest profile mining advocates are shining a spotlight on the more nefarious side of short-selling. Efforts began in late November 2019 to convince provincial regulators in Ontario to intervene in the predatory short-selling tactics of investors who specifically target junior mining companies. The Save Canadian Mining (SCM) initiative was launched by Terry Lynch, CEO of Chilean Metals. “It started at the last PDAC (Prospectors and Developers Association of Canada) and I was in my (exhibitors’) row and it was super quiet.” Lynch told Mining Life he was referring to the severely diminished level of interest in junior mining companies at the event. According to the group’s website, the goal is as follows: “In 2012 IIROC and CSA removed a trading rule known as the “tick test”, which restricted short selling to neutral or sales to positive price changes at the time of the sale. These changes were applied not only to the main listing venue of TSX Venture Exchange, but are equally applied across all Canadian trading venues, of which there are 14 today, reducing TSX Venture’s ability to effect any change. Since removal of the tick test, the Canadian markets have evolved, and there now exists a dynamic where short selling activities, high frequency trading, and algorithms are exploiting the lack of a tick test to the detriment of Canada’s junior markets. We call on CSA and IIROC to evaluate re-instituting the tick test.” Page 16

Lynch says part of the blame rests with junior miners themselves. “We let this happen by not advocating for ourselves,” he said. “PDAC runs a fine event but it doesn’t really speak for junior mining on some of these issues,” he added. Lynch adds that it’s a matter of life and death right now. Without capital, junior miners can’t go forward, and if they can’t move forward, the industry is in danger of collapsing. If the group is successful, they are looking for the following outcomes: First, to restore the no-short on the uptick rule or abolish short-selling on listed companies under $250 million. Second, to secure a public commitment from investment banks to allow listed companies to sell private placements to brokers without having to be approved by a names committee. “Brokers have a fiduciary responsibility to act in their clients’ best interest and that should govern whether or not they are able to have their investors invest in private placements. Brokers should receive compensation similar to the fees they get from participating in an IPO,” said SCM in their founding statement. SCM outlines a numbers of facts to back their case. First, and most importantly, financing for mining has been on a steady decline since the IIROC rule was changed in 2012. “While commodity markets have been challenged, the combination of 14 different trading venues, and elimination of the tick test has created an environment that is difficult for TSXV issuers to build support of predominately retail shareholders who feel that algorithms are able to get “an inside track”, states the group. Second, Oreninc’s index demonstrates that this lack of financing ac-

tivity is also contributing to a divergence between commodity prices, and the equities of junior commodity companies as junior companies have been unable to finance and continue exploration. And third, Canada’s resources markets are world leaders by share of number of listed companies, number of financings, dollar value raised, and ethical standards. The removal of the tick-test, and creation of alternative trading markets is something that many other jurisdictions have done, and this is an opportunity for Canada to lead in supporting junior markets through our globally unique platform, the TSX Venture Exchange by re-instituting the tick test and allowing TSX Venture issuers to trade on their home market only (the TSXV). The co-founders of the organization include Chilean Metals, Investing News Network, Kuya Silver, James West’s Midas Letter, Warrior Gold, Inside Exploration, Pendry Cannon, Stosic & Associates, and a number of high profile investors including Eric Sprott. Supporters who sign up for SCM’s news updates through their website are immediately greeted with a personal message from Sprott, widely regarded as one of the world’s top gold advocates. Save Canadian Mining says it is a movement to return market rules to the fair and transparent standard that helped deliver prosperity for over 142 years. In an exclusive interview with Mining Life & Exploration News, Lynch said it is almost unethical to go out and ask for investment knowing that billion-dollar hedge funds who specialize in short-selling are waiting in the wings to pillage investors. To see the complete interview with Lynch, visit the video section of www.MiningLifeOnline.net.

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Turning silver into

gold

A look back and a look ahead By Kevin Vincent

2019 was supposed to end with another set of ownership fingerprints on the storied Lake Shore and Bell Creek mining projects in Timmins. The gold assets, owned by Pan American Silver were up for sale. After deeper reflection, the Vancouver-based corporation, which bills itself as the World’s Premier Silver Mining Company, had second thoughts about unloading its gold properties in the historic Timmins mining camp. In early December, Country Manager David Bernier told the Timmins Chamber of Commerce that Pan American has high expectations in 2020 for its Timmins operations, particularly the Bell Creek property. “We’re actually going to lay off Timmins West a little bit. Timmins West has been a mine that’s been under immense pressure to produce during Bell Creek’s growth, so with that it’s a bit strained so we’re going to dial down Timmins West a bit and then actually ramp up Bell Creek next year,” Bernier told reporters at the December 4th event. Bernier said the company anticipates a 20% increase in production in 2020. Combined, Bell Creek and Page 18

Pan-American Silver

Lake Shore/Bell Creek Gold projects Lake Shore are expected to produce into at least 2025. The company also celebrated the opening of a 1000 metre shaft at Bell Creek about a year ago. The $100 million investment is paying off as expected. In 2018, the company was hoping to produce 62,000 ounces, instead they produced 70,000. The company is still trucking 3000 tonnes per day through the City of Timmins from Lake Shore to the Bell Creek mill and refinery complex. That hauling expense is expected to increase in 2020 when the City begins a massive reconstruction of Algonquin Boulevard in the City’s core. The long overdue multi-million dollar construction project will force companies like Pan American to detour around the construction. Bernier told the Chamber of Commerce crowd that those detours may be costly. In fact, he said the company’s initial estimate is that costs could increase by $1.50 to $2.00 per tonne. It took the company about nine months to properly assess what it wanted to do with the Timmins operations. The positive cash flow results and a healthy gold price certainly helped. Bernier told Chamber members that Pan American board members have given strong support for both Lake Shore and Bell Creek. The company closed its Toronto offices. Senior managers of the Timmins operations live and work in the city. Bernier says the Timmins division is now a $4.5 billion asset for Pan American.

The gold mineralization at Bell Creek mine is mined using underground longhole mining methods. At the Timmins West mine, primary mining methods include longitudinal and transverse longhole mining. Ore from both mines is processed at the Bell Creek mill via single-stage crushing and single-stage grinding, with a portion of the gold recovered by gravity methods, followed by pre-oxidation and cyanidation with carbon-in-leach and carbon-in-pulp recovery. The company’s latest reserve figures suggest proven and probable reserves are close to 10 million tonnes at just over 3gm/tonne of gold. The positive outlook for the Timmins operation means the company is planning to hire more people throughout 2020. In his address to the Chamber, Bernier said the company employs about 650 personnel and that number is expected to jump in the coming months. The majority of employees are from the Timmins area, however, due to local labour shortages, they currently have workers who commute from both Sudbury and North Bay in Ontario and Val D’or from northwestern Quebec. While Bernier was unable to shed additional light on the company’s plans for other exploration targets in the area, in and around the Timmins West and Bell Creek operations, he said he is hopeful that the strong support at the board level will continue. Under previous ownership, Lake Shore acquired the Bell Creek operation to become a single unit. The bulk of Pan American silver operations are in Mexico, Central and South America.

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Kidd Creek Life of Mine Company officials are still waiting for a clear indication from Switzerland on whether there will be a significant extension of the Kidd Creek mine. Nearly two years ago, deep drilling at the company’s historic base metals mine in Timmins turned out encouraging results. It created a hopeful buzz in the city that has lasted ever since. Mining Life & Exploration News asked for an update from company officials, all they could say is that there is nothing to report at this time. A few years ago, the life of mine sunset had been set at 2022, but the dynamic drill results, below the 10,000 foot level, gave the owners of the operation, Switzerland-based Glencore, pause for thought. The mine has been producing copper and zinc since 1966. Dozens of junior mining companies have been scouring the regional landscape next to Kidd for decades trying to pinpoint another orebody that might rival Kidd’s multi-billion bonanza. They’ve all come up empty. It turns out the other mine is likely below, deep below, the first one. Kidd Operations General Manager Mark Furlotte, speaking at the 2019 Big Event in Timmins, confirmed that the company is indeed exploring at depth. The City of Timmins is keen for Glencore decision-makers to announce their intentions. At present, the comPage 20

pany employs more than 800 people with an annual payroll in excess of $100 million. In addition, the annual spend on contractors averages $50 million a year. Based on a number of informal conversations which are being repeated throughout the community, the decision is purely based on numbers. If the targeted zone is moved into a proven or probable orebody category, there are multiple cost factors that come into play, not the least of which is engineering and getting the ore to surface. The company already utilizes autonomous recovery vehicles and they have also invested heavily in an underground fibre-optic system, featured in a previous issue of Mining Life, which has had a dramatic and positive impact on workflow conditions. Notwithstanding the autonomous technology, operated from a command centre on surface, the challenge of getting the ore to surface is still one of economics. At present, the ore is hoisted from the #4 shaft up to the 4900 level, about half-way to surface. From there it is hauled by conveyor belts to the #2 shaft where it is then hoisted an additional 5000 feet (approx.) to surface and eventual transportation by rail to the Kidd smelter complex. The 2019 deep drilling program totalled 17,000 metres. Those results have not been made public.

While the announcement of the life of mine decision remains a mystery, there continues to be small indications that innovative approaches to production are under serious consideration. At the annual International Symposium on Ground Support in Mining and Underground Construction held in Sudbury in the fall of 2019, Kidd’s senior ground control engineer David Counter outlined the company’s updated use of laser technology for mapping drifts. Kidd has been using the technology for a few years after it was introduced as part of an independent research project. Sources tell Mining Life & Exploration News that stability is of paramount importance as both heat and pressure increase exponentially the deeper a mine gets. The extreme temperature in the earth’s core is the result of different factors. It is partially due to the tremendous heat present at the formation of our planet. Another source is from frictional heating as dense material from the outer core sinks deep into the inner core. Heat is also generated by the decay of radioactive isotopes, mainly potassium, uranium and thorium, but scientists are uncertain about the significance of this factor since the amount of these radioactive elements is unknown, according to a 1997 article in Scientific American.

Page 21

Glencore and Tesla deal on Ethical Cobalt

Deal could have major dividends for cobalt mining /refining ventures By Frank Giorno

The announcement in January 2020 that Glencore is in talks with electric vehicle manufacturer Tesla to supply ethical cobalt for its new Shanghai, China plant, has created a resurgence in the cobalt market after years of uncertainty about its future. Closer to home, the Glencore-Tesla agreement on cobalt could also see the return to mining prominence in Cobalt, Ontario, a town that became a major silver mining centre in the late 19th and early 20th Centuries. An agreement would provide Tesla a secure, long-term supply of cobalt and prevent shortages at its Shanghai facility which is in the world’s largest electric vehicle market. Such an agreement is a good sign for cobalt producers in Canada. Canadian cobalt mining companies and refineries such as Canada Cobalt Works and First Cobalt are positioned to benefit from a Glencore-Tesla agreement on supplying ethical cobalt. In 2019, Glencore invested $5 million dollars towards the re-opening of First Cobalt’s cobalt refinery in Cobalt, Ontario. The refinery is North America’s only permitted cobalt refinery. Canada Cobalt Works has properties in Northern Ontario that it is exploring for developing silver and cobalt mines. The metals are closely associated with cobalt in the past being a by-product of silver mining such as in the historic Cobalt, Ontario silvering operations at the beginning of the 20th century. “The potential here is huge,” says Frank Basa, chief executive officer of Canada Cobalt Works in a 2018 interview with CBC news. Page 22

Tesla is ramping up output at its Shanghai facility dubbed “the Gigafactory”, which was built in just 11 months with Chinese government support. Tesla’s shares have rocketed to stratospheric heights as investors have become confident of Elon Musk’s drive to make Tesla into the world’s largest mass producer and seller of electric cars. In addition to Tesla, Volkswagen AG and BMW AG are also planning to roll out fleets of electric vehicles. Glencore, the world’s largest cobalt miner, is in a prime position to benefit from a boom in electric-vehicle sales. But the company absorbed losses last year because cobalt prices collapsed in mid-2018 from too much supply. In addition to the Telsa talks, Glencore also signed a deal to provide BMW with cobalt. Direct deals with miners are rare in the automotive industry. Market analysts believe the agreements are a sign that carmakers are concerned about securing enough cobalt from ethical sources. At present most of the world’s cobalt comes from the Democratic Republic of Congo, which produces about three-quarters of the world’s cobalt. Much of the cobalt from DRC is produced from makeshift mines that have used child-labour and experienced human rights violations and fatalities. Tesla President Elon Musk has stated that his company will only use ethical cobalt. According to a source involved in the negotiations, both companies have concluded the terms of an agreement and are awaiting final review and signing of the contract by company executives and board of directors. At current production rates there is

enough cobalt demand. However, with the coming into production of Tesla’s Shanghai plant, Tesla’s intention of opening a European facility and the announced entry of Volkswagen and BMW into the electric vehicle field, market analysts are boasting of an increased demand for cobalt leading to predictions of future shortages This marks a turnaround from the oversupply of cobalt during the 20172018 period which led to substantial losses for Glencore as prices plunged from a high of $44 dollars per pound in 2018 to a low of $12 dollars per pound in 2019. In the days after the reported talks between Glencore and Tesla, cobalt prices rose modestly by $0.10 per pound from $14.53 to $14.63 per pound on the London Metal Exchange. Despite a torrid year for the car industry, the burgeoning electric-vehicle market offers big opportunities for manufacturers and the companies that supply them. The biggest miners are looking to grow production of metals such as copper and nickel that are needed for the electrification of cities and cars. “Everything in here runs cobalt,” Canada Cobalt Works Frank Basa said in the 2018 CBC interview pointing to the pink hue in the tunnels of the Castle mine near Gowganda. “What they (previous silver mine operators) did was they just took the high-grade silver and left all the cobalt behind. Nobody wanted cobalt you see.” In August 2019 Glencore loaned the first tranche of a potential $45 Million loan to First Cobalt towards reopening the company’s cobalt refinery in Cont’d on pg. 24

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Electric car sales soaring

Cont’d from pg. 22

Cobalt, Ontario which would become the primary producer of refined cobalt for electric vehicles in North America. Glencore said that once a definitive feasibility study for a planned expansion is completed, which is expected to happen in early 2020, it would invest another $40 million into recommissioning and expanding the refinery, located 600 km from the US border. The facility will have capacity to produce either a cobalt sulfate

for the lithium-ion battery market or cobalt metal for the North American industrial and military applications. In addition to its refinery, First Cobalt has amassed a substantial land base in the historic Cobalt, Ontario silver cobalt district. He says the drill results are encouraging. “A lot of smoke, as they say. Now we have to find fire.” Trent Mell, President and CEO of First Cobalt told CBC in 2018. While Mell may have been a little premature with those comments and the oversupply and lack of demand for cobalt lead to a $33 decline in cobalt prices in 2018, the tide finally may be turning. “The smartphone you have in your

pocket likely has a few grams of cobalt in its battery,” said Mell, “but pounds of the stuff are needed for an electric car. And with electric car sales soaring, demand for cobalt has spiked as well”. First Cobalt has assembled an extensive property package to facilitate an exploration program across the over 10,000 hectares the Company owns to leverage this historic knowledge through the re-evaluation of the silver-cobalt mineralized system. The Camp is divided into three exploration regions: Cobalt North, Central and South. Ironically Cobalt, Ontario which once thrived on silver will finally earn its second life on cobalt, the metal that was discarded in favour of silver and for which it is named after.

HR REPORT ALARMING The Canadian mining industry is fiercely competing for a pool of skilled workers. Companies in other countries are also also actively recruiting Canadian graduates and workers, it creates a significant skills gap in the sector, according to The Mining Association of Canada’s latest report. The Canadian mining industry is worth a whopping C$47 billion, with C$29.6 billion coming from Ontario, Quebec and British Columbia, coming from The State of Canada’s Mining Industry, Facts and Figures 2019 report. The workforce shortage is compounded by the wave of skilled core of workers who are retiring. The country has shown upward signs of recovery in exploration investment in recent years in the Yukon and the Northwest Territories, with a leveling out in Nunavut after some buoyant years: $91 million in the Northwest Territories, $99 million in Nunavut and $99 million in the Yukon. Together, the industry’s direct and indirect Page 24

* Mining Industry Human Resources Council

employment exceeds 626,000 jobs, accounting for one in every 30 jobs in Canada. The industry will need to hire 79,680 new workers over the next decade, and this workforce shortage is compounded by the wave of the industry’s skilled core of workers who are retiring.

By 2030, the Mining Industry Human Resources Council (MiHR) forecasts that more than 57,000 employees will retire from the sector, which represents over 25% of the industry’s current workforce by MiHR definitions.

Page 25

IAMGOLD decision on Cote under evaluation By Kevin Vincent

It’s a tale of two cities when it comes to IAMGOLD’s future in Canada. The company continues to de-risk the fabled Cote project near Gogama, Ontario (about 110km south of Timmins) and a decision to green light the project is still being evaluated. In the meantime, IAMGOLD’s Westwood project in Bousquet Township, Quebec continues a stream of good news for investors. Westwood is located on the Doyon property, 2.5 kilometres east of the former Doyon gold mine in Bousquet Township. It covers 1,925 hectares including 120 titles, one mining lease, one surface lease and three tailings leases. The next three to four years are expected to be busy for Westwood as the company revised its production targets from just under 100,000 ounces per year to as much as 145,000 ounces by 2023. “With a goal of creating a safe and profitable underground mine, our team of in-house and external experts are developing an achievable, revised mining and development plan for Westwood,” Gordon Stothart, the firm’s president and COO, said in a December 2019 statement. “The guidance is based on Westwood’s operating reality, with potential for lower dilution and continued positive reconciliation to plan. While Page 26

the first few years of ramp-up are modest, we are working to fill our mill with lower grade surface material from satellite prospects and with custom feed.” IAMGOLD is targeting the second quarter of 2020 to release Westwood’s NI 43-101 Life of Mine Plan and Technical Report. IAMGOLD is classified as a mid-tier producer with four operating gold mines on three continents. In the meantime, IAMGOLD’s Cote Property near Gogama is on the company’s list for continued exploration. In a January 16 news release the company indicated that it intends to invest US$47 million on exploration in 2020. “Through an active and sustained exploration program, we have continued to successfully increase our mineral resources over the past several years, as well as maintain the increases in our mineral reserves, net of depletion, over the same period,” said the news release. “In 2020, implementing our selffunding model, we have reduced the budget for our near-mine and exploration projects to $47 million, which includes continued evaluation of satellite targets within large regional land positions surrounding our operations, evaluation of under-

ground potential of Saramacca and continued delineation and expansion drilling at our various advanced exploration and development projects including: Côté Gold, Boto Gold, the Rouyn Project near Westwood and the Nelligan Gold Project in Quebec.” In addition, IAMGOLD says it plans to continue exploration of various targets for new discoveries in their portfolio of advanced to early-stage Greenfield projects. IAMGOLD has made it clear they will green light either Cote or the Boto Project in Senegal. President and COO Gord Stothart told the CIBC Western Institutional Investors Conference in Banff, Alberta January 28th that a decision on which mine to green light is imminent. Stothart spoke highly of Cote indicating that the company has successfully executed a local Impact Benefit Agreement (IBA) with area First Nations, 50% of detailed engineering plans have been completed, and a number of government permits have been achieved. The company says the data indicates an 18-year production life at more than 300,000 ounces a year with allin sustaining costs (AISC) of just over $700USD per ounce.

Page 27

Gowest

Looking ahead to a fruitful 2020

Greg Romain, Gowest President/CEO By Kevin Vincent

It’s been a long haul for Greg Romain but there is light at the end of the tunnel. The on-again, off-again Gowest Gold Bradshaw project just north of the city of Timmins has new life and a terms-friendly Asian investor. Greg Romain, Gowest President and CEO, told a Timmins audience January 23rd that his board of directors and investors are optimistic that the necessary production and milling permits will be in place by July of this year and full production within the following 12 months. The company was facing a number of challenges in 2019, holding it back from production. First, they needed to complete a custom-milling agreement with Northern Sun Mining Corp. to process the Bradshaw ore. In addition, they needed to execute a credit agreement with Greenwater Investment Hong Kong Limited. And lastly, Gowest had to finalize a settlement with PGB Timmins Holdings LP. In 2016, PGB, controlled by Pandion Mine Finance, provided Gowest with U.S. $17.6 million to cover development costs at the site 42km northeast of Timmins. The agreement included a pre-paid forward gold purchase of 65,805 ounces. In mid-October, Gowest and PGB announced they had completed their agreement which they outlined two months earlier. Gowest paid PGB U.S.$7.5 million, completing their deal with one another. “The parties are now fully and finally released in respect of any and all claims and other matters arising in respect of the PrePaid Forward Gold Purchase Agreement dated as of December 16, 2016, entered into between PGB and Gowest,” stated the company in their October 2019 news release. Page 28

As soon as the company announced the conclusion of the PGB deal, it also announced a new deal with Greenwater for U.S. $7.0 million. The company used that money, along with cash to complete its settlement with PGB. Starting in May, 2021 Greenwater will receive 33 equal and consecutive monthly cash payments of U.S.$376,080. According to the agreement, Gowest is not obligated to pay down any principal or interest until May 2021. Greenwater has also agreed that Gowest can postpone the payment schedule by an additional six months. While the terms of the agreement are friendly, should the company default, Greenwater can also execute a lien against 100% of the Bradshaw assets. Then company executives turned their attention to their custom milling arrangements. Gowest terminated an agreement with QMX Gold Corporation of Val D’Or, Quebec and simultaneously announced a new agreement with Northern Sun’s Redstone Mill based in Timmins. Gowest is hoping to process as much as 30,000 tonnes of bulk sample ore. Gowest and Northern Sun needed to ensure that the idle Redstone Mill could operate effectively, so Gowest agreed to set aside $200,000 CDN per month as a standby fee while also agreeing to cover the mill’s operating costs when Bradshaw ore was not being processed. Redstone was originally designed in 2006 to handle nickel. Gowest President & CEO, Greg Romain said in October, “We are pleased to have the PGB settlement behind us so that we can return our attention to developing Bradshaw. With the recent new private Chinese ownership of Northern Sun, Gowest can now look forward to processing material from Bradshaw at the Redstone Mill, the mill which we believe is best suited for our needs. We look forward to working with and continuing to advance our relationship with the new owners of Northern Sun.”

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With PGB, Greenwater, and the Northern Sun items in its rear-view mirror, Gowest could now concentrate on raising additional operating funds. The company went looking for U.S.$6 million by issuing 20 million shares at twenty cents each, plus nine million flow-through shares. Ten days later, the company announced that just over U.S.$2 million of its $6 million target had been reached in a private placement. The proceeds of the Private Placement will be used by the Company for the continued development of its 100% owned Bradshaw Gold Deposit and for working capital purposes. The proceeds derived from the sale of the FT Units will be used for “Canadian exploration expenses”. At the January 2020 open house event in Timmins, Romain updated attendees on several topics. Among other things he said Gowest is finalizing their Impact Benefit Agreements with the area’s First Nations groups, and thanks to their environmental consultants, Timmins-based Blue Heron Environmental, their Environmental Compliance Approval (ECA) and permits to take water have been approved. “Our investors want to see that once we start pro-

duction, we won’t stop,” Romain said. The plan is to start slowly and deliberately with 600 tons per day with a midterm plan to bump that up to 1500 tons per day. The company’s 500-page closure plan is now public and Romain and his team are confident that Gowest will be the region’s next producer. Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Company’s North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100‐square‐kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43‐101 Indicated Resource estimated at 2.1 million tonnes (“t”) grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre‐Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut‐off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au. Page 29

McEwen Mining anticipating extended life for Black Fox Timmins Complex By Frank Giorno

McEwen Mining Delivers Optimistic Drill Results for Grey Fox property and an upbeat 4th Quarter 2019 and Full Year Report. The recent announcement of drill results from McEwen Mining’s Grey Fox site east of Timmins, Ontario are great news for the company that entered the Timmins mining camp in 2017 after acquiring The Black Fox mine and other assets from Primero Gold. “The drill results reported today from Gibson and Whiskey Jack illustrate clearly the growth potential of the Black Fox property,” said Sylvain Guerard, SVP Exploration. The good news contained in the drilling results released in December, 2019 together with an upbeat full year/4th Quarter 2019 report released in January, 2020 help to brighten the picture for McEwen Mining which began 2019 with production disruption at Black Fox mine due to extreme weather conditions and a fire to the crusher unit. “2019 was a year of exploration highs overshadowed by production lows. After issuing two disappointing reductions in production guidance we finally achieved our guidance. The problems that plagued us in 2019 were largely unique events that will not be reoccurring. Exploration will continue to be a key focus at Stock West, Grey Fox, Black Fox and Gold Page 30

Bar, where we see the potential to create the greatest near-term value,” said “Rob McEwen, Chairman and Chief Owner. The results were from two locations on the Grey Fox property which is adjacent to Black Fox mine. “When McEwen Mining purchased the Black Fox Complex in 2017 our thesis was that investing in exploration would eventually yield a larger, longer life, and more profitable mining operation. In 2019 we made a new discovery at Stock West, which is very close to our mill, and continued to grow the resources at Grey Fox. It is too early to tell exactly what the long-term ramifications are, but we are very pleased with what we’ve found to date,” said Stefan Spears, Vice President of Corporate Development. The Gibson drilling site returned high grade gold results that could reduce the cost of mining the ore.

Highlights of the Gibson Target Drill Results: *18.4 g/t Au over 2.4 m (0.59 opt Au over 7.9 ft) *5.6 g/t Au over 7.8m (0.18 opt Au over 25.6 ft) *8.7 g/t Au over 4.0 m (0.28 opt Au over 13.1 ft) *8.8 g/t Au over 4.4 m (0.28 opt Au over 14.3 ft) *13.2 g/t Au over 3.0 m (0.42 opt Au over 9.8 ft)

In 2018, hole 18GF-1079 intersected a broad interval of mineralization within an intrusion, which returned 3.1 g/t Au over 34 m, including 10.8 g/t Au over 6 m (core lengths). Diamond drilling tested below hole 18GF-1079 and extended the mineralization by 820 ft (250 m) down dip with hole 19GF1106; which intersected a higher-grade interval of 16.9 g/t Au over 3 m (core length), within a 200 ft (60 m) wide envelope of alteration and anomalous mineralization. Follow-up drilling has continued with 19 holes completed since last release of results in May 2019. Significant gold mineralization at Gibson has been outlined over a 1,650 ft (500 m) strike length and from surface to a depth of 2,600 ft (800 m). Hole 19GF-1147 returned the deepest intersection of 13.2 g/t Au over 3 m. At the Whiskey Jack 9 g/t Au over 44.0 m (0.29 opt Au over 144.4 ft) was found. The Whiskey Jack target is located where the contact between sedimentary and volcanic units’ changes orientation. Drilling followed-up on positive drill results released on November 4, 2019 including: 14.1 g/t Au over 8.4 m, including 59.1 g/t Au over 1.3 m core length in hole 19GF-1242. Recent drilling intersected wide zones of strong gold mineralization. In May 2019, McEwen released drilling results from the Black Fox Mine Cont’d on pg. 32

Page 31

McEwen Mining Drills 53 g/t Gold Over 6.7 m

at Grey Fox

and 3,225,000 silver ounces. Our atsources through near-mine exploratributable production from San José tion and enable more effective mine in 2019 was 51,684 gold ounces and planning. We have a large and excitCont’d from pg. 30 3,354,487 silver ounces, for a total of and found grades range from 30.64 ing year of exploration ahead of us.” 91,654 GEOs. grams gold per tonne to 396.46 gram ‘Gold Equivalent Ounces’ are calcuAs to what the next steps will per tonne. lated based on a 75:1 gold to silver be towards permitting and price ratio for Q1 2019, 88:1 for Q2 operationalizing Grey Fox, Highlights of the Black Fox 2019, 87:1 for Q3 2019, and 85:1 for Stefan Spears the V.P. of CorpoQ4 2019. 2019 GEO Guidance asMine Drill Results: rate Development had sumed an 85:1 ratio. *34.77 g/t Au over 2.65 m El Gallo Project, Sinaloa, (1.12 opt* Au over 8.69 ft.) this to say: *396.46 g/t Au over 1.81 m “Grey Fox has grown quite a bit Mexico (100%) (12.75 opt Au over 5.94 ft.) from our drilling, and positive results El Gallo delivered on guidance by *245.55 g/t Au over 1.27 m continue to come in. We are getting producing 16,333 GEOs in 2019 from (7.89 opt Au over 4.17 ft.) close to being able to establish an ini- residual leaching of the heap leach *30.64 g/t Au over 2.99 m tial plan for development,”. “Once a pad. (0.99 opt Au over 9.81 ft.) decision has been made to proceed Gold Bar Mine, *51.50 g/t Au over 0.95 m it would require about 1-2 years for Nevada (100%) Gold Bar produced 30,712 GEOs in (1.66 opt Au over 3.12 ft mining to begin.” “In 2020 we intend to focus our ex- 2019, within our revised full year pro“For a mine with a history of produc- ploration efforts on Stock West and duction guidance of 30,000 to 33,000 GEOs. In Q4, production was 9,713 ing 5 g/t gold, these drill assay results Grey Fox,” Spears said. GEOs. Throughput at the crushing are very encouraging. These results highlight the significant potential of In addition to its Timmins-based plant slowed in Q4 with the onset of our exploration to extend the mine life 100% owned Black Fox-Grey Fox winter, and we expect that to persist at Black Fox and improve its profit- complex, Stock Mill property, McE- through Q1 2020. ability,” said Sylvain Guerard, Senior wen operates mines in: The Black Fox mine produced 35,721 Vice President Exploration. “Our ge- San José Mine, Santa Cruz, GEOs in 2019, close to our revised ologists are building an improved geo- Argentina (49%) logic model of the Black Fox deposit San José exceeded the full year guid- full year production guidance of that should allow us to grow our re- ance for 2019 of 49,000 gold ounces 36,000 to 40,000 GEOs. In Q4, production was 9,887 GEOs. “Black Fox met its production goal Released at print time TORONTO, February 5, 2020 - McEwen Mining Inc. (NYSE: MUX) (TSX: and contained operating costs during MUX) is pleased to report additional positive drill results from the Whiskey the second half of 2019,” Spears said. Jack target in the Grey Fox area, part of the Black Fox Complex, located in the “The challenges early in the year were unfortunate, but ultimately they made prolific Timmins gold district, Canada. Sylvain Guerard, SVP Exploration commented: “New intersections at Whis- our team work harder to improve the key Jack have confirmed high-grade gold mineralization over significant true operation, and we’re pleased about widths, including 53 g/t Au over 6.7 m. This intersection is open and offers that.” good potential for the discovery of a new high-grade deposit, that could con- McEwen has approximately 400.3 million shares outstanding. Rob tribute to the growth of our existing resource at Grey Fox.” McEwen, owns 20% of the shares. For complete details see www.mcewenmining.com Chairman & Chief Owner, Rob McEwen

Page 32

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Familiar face takes over as manager of Harte

Dan Gagnon new General Manager By Kevin Vincent &Frank Giorno

There’s an old saying in the gold industry that suggests if you want to find gold, don’t stray too far from the last time you laid eyes on it. The same could be said for talented mine managers. One of Ontario’s newest producing properties, the Harte Gold Mine in White River announced in late January that they’ve appointed Dan Gagnon as General Manager. “Mr. Gagnon brings to Harte Gold over 30 years of experience in geology and general management from a wide range of operations across Canada” the company said in a statement. Gagnon started his career in geol-

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Gold

ogy where he spent 13 years as Chief Geologist at the Musselwhite Mine in Northwestern Ontario. For the next 17 years he worked as General Manager at a number of Canadian operations, most recently the Hope Bay Project in Nunavut, Canada. Gagnon holds a Bachelor of Science with Specialization in Geology from the University of Ottawa. “We are very fortunate to have someone of Dan’s caliber join the Harte Gold team. Dan brings a wealth of experience managing a range of highgrade gold operations and will be a valuable addition to lead a transformation of our operational philosophy at site,” said Dr. Martin Raffield, Executive Vice President and COO of Harte Gold. The company also announced that drilling is underway at the TT8 discovery, approximately 17 Km southeast of the Sugar Zone Mine. TT8 consists of a sedimentary hosted package, discovered in an area previously not known to host gold mineralization. Drilling will test the down dip potential of the mineralized outcrop. Harte Gold holds a 100% interest in the Sugar Zone Mine located in White River. The Sugar Zone entered commercial production in 2019. The company previously disclosed its pro-

duction guidance for 2020 of 42,000 to 48,000 gold ounces (for more information refer to the Company’s News Release dated January 9, 2020). The company has further potential through exploration at the Sugar Zone Property, which encompasses 79,335 hectares covering a significant greenstone belt. On another note, Harte Gold announced Stephen G. Roman Jr., the Chairman of the company stepped down from his position but will remain as a director of the company. Joe Conway will replace Roman as Chairman of the Board. “Harte Gold has been a key focus of mine for the past 10 years. We advanced a green field Ontario gold project culminating in a new Ontario gold mine and declared commercial production in January 2019,” Roman said. “The new operational team is doing a good job of getting the mine ramped up and on track. I expect the Sugar Zone Mine will be a solid producer for many years to come Roman added. “I would like to thank our longstanding shareholders for their support in developing Harte Gold over the past 10 years and Appian Capital Advisory for their significant investment and support for my vision of developing a new gold mine in Ontario which also holds significant exploration potential for new discoveries.” Roman grew up with mining. As the son of Stephen Roman, the founder of Denison Mines and a giant of mining in Canada. Roman was awarded the honour of “Prospector of the Year” for 2016 and received the “Bill Dennis Award” from the Prospectors & Developers Association of Canada (PDAC) in March 2016. The resignation of Roman along with the recent news of Dan Gagnon’s appointment as General Mine Manager, comes several months after it was announced by the company that it was in talks with Appian and Sprott to refinance its operation.

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Wesdome planning $10 million

of drilling at Eagle River in 2020 By Kevin Vincent

The production team at Wesdome’s Eagle River Mine near Wawa, Ontario is getting high marks from the company’s President and CEO as production is up, and workplace injuries are down. In its year end production report, the company revealed it far exceeded 2019 expectations.

“The Eagle River Complex continued to perform very well, with 2019 full year gold production of 91,688 ounces, far exceeding our original guidance of 72,000 - 80,000 ounces and achieving the high end of our upwards revised guidance of 88,000 93,000 ounces,” said Duncan Middlemiss, President and CEO. “We would like to thank the team at Eagle River

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for once again delivering an excellent year in terms of operational performance and especially safety performance. The company’s Total Medical Injury Frequency Rate (TMIFR) metric has decreased by 23% over 2018 representing a substantial improvement.” Wesdome Gold Mines Ltd. announced their fourth quarter and full year 2019 production results along with 2020 guidance in midJanuary. Production from the Eagle River Complex in Q4 2019 totaled 21,332 ounces of gold, representing an increase of 24% from the same period last year. Full year 2019 production of 91,688 ounces of gold as compared to 71,625 ounces of gold production in fiscal 2018 represents a 28% increase year on year and an almost a two-fold increase since 2016. “In 2020, we will continue the upExplosion-p ward trajectory of  organic growth and are setting guidance at 90,000 –100,000 ounces. Operating and all Flame-retar in sustaining costs are expected to be flat as we continue to aggressive underground Waterproof ly drill and develop workplaces in order to fill the Eagle River mill entirely from grade  higher Light Weigh underground ore in the future.” In the meantime, at the company’s  Up to 12,00 Val D’or Kiena complex, an aggressive drilling program is planned for  gears Upuptoto20 ho 2020 as the Wesdome unveil its PEA with an eye to reopening the mine.  USB Charge “At Kiena, drilling and development will be increased substantially over our 2019 program. We plan to drill a total of 85,000 metres in exploration drilling, invest $8.2 million in exploration drifts and continued ramp development, and continue our metallurgical and environmental scoping studies in preparation for a possible

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Building Canada’s Next Mid-Tier Gold Producer mine restart. Work on the PEA is ongoing and we expect to publish results in the first half of the year.” Wesdome has had over 30+ years of continuous gold mining operations in Canada. The Company is 100% Canadian focused with a pipeline of projects in various stages of development. The Company’s strategy is to build Canada’s next intermediate gold producer, producing 200,000+ ounces from two mines in Ontario and Québec. The producing Eagle River Complex in Wawa, Ontario is currently producing gold from the Eagle River Underground Mine and the Mishi Open pit. Wesdome is actively exploring its brownfields asset, the Kiena Complex in Val d’Or, Québec, with the objective of bringing the asset in production stage over the next two years. The Kiena Complex is a fully permitted former mine with a 930-metre shaft and 2,000 tonne-per-day mill. The Company has further upside at its Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario. The Company has ap-

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proximately 138.0 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”. In its year end news release the company confidently stated it is in a good cash-flow position to meet its production and exploration goals in 2020. “The Company is adequately funded to undertake the 2020 work plan, with cash and cash equivalents of $35.7 million and an available credit facility of $41.5 million at the beginning of the year, making Wesdome well positioned to execute on its path to becoming Canada’s next mid-tier gold company.”

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Moneta-Porcupine continues to find gold along string of properties By Kevin Vincent

The start of a 12th decade for the Porcupine Camp’s oldest mining company includes a flurry of activity and news. Moneta Porcupine Mines Inc., incorporated in 1910, continues to turn heads with a package of outstanding properties in northeastern Ontario. The company started the year with the release of results from the first three drill holes testing the extension of mineralization at the Windjammer South gold deposit on the aptly-named Golden Highway Project, 110km east of Timmins. The company said the drilling confirmed the extension beyond its most recent November 2019, 43-101 filing. “We are pleased to have intersected multiple zones of gold mineralization over large combined thicknesses at Windjammer South,” said Gary O’Connor, CEO & Chief Geologist. “The drill program has successfully confirmed the extensions of gold mineralization with significant step-outs both west and east of the updated NoPage 38

vember 2019 Resource Estimate and has confirmed the new geological interpretation. The 2019/2020 winter drill program is testing new gold targets at Westaway and Halfway, as well as drill testing the resource expansion potential at West Block (South West), 55 and Windjammer South deposits. The fully funded drill program is ongoing and will continue over the winter.” The Windjammer South deposit is located within a similar geological setting as the South West deposit located 1,400 m to the southwest. A week after the company confirmed the extension at Windjammer, Moneta also released news that test work on its South West deposit indicated higher than expected gold recoveries. “We are pleased that the latest metallurgical gold recovery test-work has resulted in higher gold recoveries with no deleterious elements present,” said O’Connor in a statement. “The test work indicated gold recoveries of up to 93.9% with 50.6% being recovery by gravity, with standard grind sizes at an estimated head grade of 4.65 g/t Au, and up to 95.5% at finer grind sizes.” The metallurgical gold recovery test-work was conducted to assess the potential gold recoveries and optimum process flow sheet required to develop the project at a head grade reflective of the latest mineral resource estimate on the South West Deposit. Moneta wasn’t finished with January updates. A couple of days later, the company released details of a drill program at its new Westaway target and stated they had hit 12 new gold-mineralized veins.

The highlights of that drill program included: - Extended gold mineralization 1.0 kilometre (Km) to the west of the current South West gold resource - Drilling intersected twelve (12) new veins at the new Westaway target - Intersected 7.95 metres (m) @ 3.48 grams per tonne gold (g/t Au) including 4.25 m @ 5.77 g/t Au, including 0.95 m @ 13.80 g/t Au from a new WA vein - Intersected 5.25 m @ 6.30 g/t Au including 0.80 m @ 13.40 g/t Au from the new WA-8 vein - Intersected 2.13 m @ 5.65 g/t Au including 1.41 m @ 8.03 g/t Au from the new WA-3 vein “We are pleased to have drilled significant new gold mineralization at both the new Westaway Target and the extensions of West Block,” said O’Connor. “We have intersected twelve (12) new gold mineralized veins at Westaway as well as confirming three (3) new gold mineralized veins at West Block. The drill program has now successfully extended the gold mineralization over 1.0 km west of the South West deposit within a new target area. The 2019/2020 winter drill program has now been expanded with the addition of a third drill rig to continue to expand the new gold veins at Westaway, as well as drill test the resource expansion potential at West Block (South West), 55 and Windjammer South deposits. The fully funded drill program is ongoing and will continue over the winter”. The Company holds a 100% interest in 6 core gold projects strategically located along the Destor-Porcupine Fault Zone in the Timmins Gold Camp with over 85 million

ounces of past gold production. The projects consist of the Golden Highway, North Tisdale, Nighthawk Lake, DeSantis East, Kayorum and Denton projects. The Golden Highway Project covers 12 kilometres of prospective ground along the DPFZ of which 4 km hosts the current 43- 101 mineral resource estimate comprised of an indicated resource of 556,500 ounces gold. Moneta’s land position covers 200 km Sq. and is one of the largest after three gold producers in the Timmins Camp.

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Alamos Exploration - Island Gold

starts 2020 on high note Three for three. By Kevin Vincent

Alamos Gold closed out 2019 with a trio of encouraging drill results at the company’s Island Gold Mine northeast of Wawa. “We had another exceptional year at Island Gold operationally, financially and through the drill bit,” said John A. McCluskey, President and Chief Executive Officer. The operation produced 150,400 ounces of gold in 2019, achieving a new record for the fifth consecutive year, and set a new record for free cash flow. “With the ongoing exploration success, we expect further growth in Island Gold’s mineral reserves and resources with our year-end update. This growth will be incorporated into the Phase III expansion study which we plan to complete during the second quarter of 2020. We expect this study will showcase a larger, extremely profitable, longlife operation,” said McCluskey. It has been a good run for Alamos at Island Gold since the company acquired the asset in 2017. The 2019 exploration drilling program was focused on further expanding the down-plunge and lateral extensions of the Island Gold deposit with the objective of adding new near mine Mineral Resources across the two-kilometre long Island Page 42

Gold Main Zone. All three drill targets were successful. (See the company’s website for more information) The program has been successful in extending high-grade gold mineralization across all three areas of focus, the Main, Western, and Eastern Extensions. The company says this is a continuation of the significant growth in mineral reserves and resources already realized since the November 2017 acquisition of the mine. With 2019 out of the way, McCluskey and the team are looking ahead to 2020 where they are upping their exploration budget by another million dollars. A total of $21 million has been budgeted in 2020 for surface and underground exploration at Island Gold, an increase from the 2019 budget of $19 million. “The focus remains on continuing to define new near mine Mineral Resources. The 2020 budget includes 46,000 m of surface directional drilling, 30,000 m of underground exploration drilling, and 900 m of underground exploration development to extend drill platforms on the 340, 620, 790, and 840 levels,” stated the company in its first news release of the new decade. A regional exploration program which includes 10,000 m of drilling

is also planned in 2020, focused on evaluating and advancing exploration targets outside the main Island Gold Mine area on the 9,750-hectare Island Gold Property. The Island Gold Mine is 83 kilometres northeast of Wawa, Ontario. The mine includes 217 patented, leased and staked claims covering 7,926 hectares. It is accessible via a fourseason road from Highway 519, just west of the town of Dubreuilville. McCluskey told the CIBC Western Institutional Investors Conference in January that the appetite for investors between 2014 and 2019 was weak but that has changed as gold prices and prices for other metals continue to rise. At the Young-Davidson Mine near Matachewan, the company is planning to inject another $50 million capital spend in 2020 to increase production, an annual spend they’ve made since they acquired the mine in 2015. McCluskey said the long-term capital investments at Young-Davidson are nearing the end which will give the company additional free cash, partly to increase dividends and engage in share buybacks. Between Island Gold, Young-Davidson and the company’s Mulatos gold mine in Sonora, Mexico, Alamos is producing about half a million ounces a year.

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“There’s no time for down time! There’s always a solution.” The mining industry depends on a wide range of ever sophisticated machinery to produce products, excavate minerals, build, pave or repair roads, bridges and operate water and sewage treatment plants and equipment breakdown and failure can be devastating for the bottom line! But you have no need to worry, Timmins Mechanical Solutions (TMS) is there to provide timely, effective repairs to that valuable piece of machinery on location or in the shop. “What makes us unique is we go all out to provide fast effective professional services to our clients,” explains Eddy Lamontagne, the Director of Sales and Business Development for Timmins Mechanical Solutions. “We know that mechanical breakdowns cost our clients delay, time and money,” It’s our job to expertly repair the equipment and get them back working on the job,” Lamontagne adds. In March 2020 Timmins Mechanical Solution will be moving into their new expanded repair and service shop. The facility will be located at 4555 Highway 101 West, across from the West Timmins trailer park. It was time to expand the shop and equip it with the inventory, state of the art tools and large cranes required to meet the needs of the heavy equipment and mining community here in northern Ontario. Lamontagne explains the features that sets Timmins Mechanical Solutions apart from the others. “We provide hands on and direct contact from Chad Tolenen, the owner, of TMS to the end user,” says Lamontagne. “All Page 44

our management personnel are also an interest in mechanics when he was licensed mobile mechanics”. a 15-year-old high school student. “TMS also works on all types, makes He worked for Caterpillar dealer for and models of equipment and we are about 10 years before starting his own constantly learning and upgrading our business. Chad is looking forward to knowledge sets by understanding the the move into his new shop which is latest technological and software de- scheduled for March 2020. Some of velopments in the industries we serve the challenges TMS faces is keeping so we are current on cutting edge pace with the ever-changing equipequipment as well as the standard ment that comes on the market with tested and true equipment.” new software and new technology. Anyone who has experience work- Timmins Mechanical Solution makes ing with heavy equipment machinery constant learning and constant training knows when it breaks down often the part of their philosophy so they can cause of the malfunction is not readily best serve their clients. clear. Lamontagne’s emphasis is very When faced with adversity you go the strong on trouble shooting especially extra mile to solve the problem, that at electronically based equipment. first seemed impossible to solve. It is “We perform repairs, service, over- what we believe in! haul aging equipment and provide our TMS’ vision statement is “Combining licensed mechanics on loan to a com- our experienced workforce, expanding pany for a period through our “men facility, superior technician and best on loan” service,” says Lamontagne. available parts. We are striving to beTMS will open their new 12,000 come known as a preferred supplier to square foot shop which will mean maintenance people in Ontario. hiring 10 more employees bringing the staff complement to 29 employees. “One of the benefits is that we will be able to perform work on larger equipment,” Lamontagne points out. “We also will become a dealer and start selling equipment in addition to the repair services From the left: Garry Tolonen, Eddy Lamontagne, we provide.” Tony Porritt, Chad Tolonen (Owner/operator) The owner Chad and Richard Daigle Tolonen developed

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GFG Resources

exploring West Timmins with great success By Kevin Vincent

GFG Resources is proving an ancient exploration model – stick with what you know. The Saskatoon-based exploration company was looking for a promising land package in 2017 and they came to west Timmins. They put an impressive land package together and in late 2019, they conducted a modest 2500 metres of drilling which the company says confirms their instincts. In early 2020, GFG released the results of that program and Brian Skanderbeg, President and CEO stated, “This was our first attempt at following up on the historic drilling at the HGM target. These results validate our model of a robust gold system with multiple high-grade stacked lenses. The system remains open for growth and we plan to further drill test the HGM target in the upcoming 4,000 metre drill program along with other high priority targets at Slate Rock, Crawford and Nib. With further results pending from both the Pen Gold Project and Rattlesnake Hills Gold Project, and drilling anticipated to restart at Timmins in the coming weeks, 2020 should be an exciting year for GFG.” That’s a mouthful for sure. In December 2017, GFG announced its plans to consolidate the large, highly prospective land package west of Timmins; the Pen Gold Project (Rapier Gold), the West PorcuPage 46 40

pine Property (Probe Metals) and the Swayze Project (Osisko Mining). The consolidated land package consists of over 680 km2 and covers highly prospective geology in an under explored area. Previous exploration work and drilling on the properties have identified several distinctive and prospective zones of gold mineralization and targets that will be the focus of upcoming exploration programs. In the fourth quarter of 2019, the Company completed 2,500 metres of drilling from eight drill holes testing six targets. According to a January company news release, the initial results from four drill holes are highlighted by hole PEN-19-39 which successfully outlined mineralized stacked lenses with high-grade gold intercepts at the HGM target grading 7.53 g/t Au over 2.2 metres and 25.96 g/t Au over 1.0 metre. GFG Resources is a North American precious metals exploration company focused on district scale gold projects in tier one mining jurisdictions, Ontario and Wyoming. In Ontario, the Company owns 100% of the Pen and Dore gold projects, two large and highly prospective gold properties west of the prolific gold district of Timmins, Ontario, Canada. The Pen and the Dore gold projects have the same geological setting that hosts most of the gold deposits

found in the Timmins Camp which have produced over 70 million ounces of gold. In Wyoming, the Company has partnered with Newcrest Mining Ltd. through an option and earn-in agreement to advance the Rattlesnake Hills Gold Project. The geologic setting, alteration and mineralization seen in the Rattlesnake Hills are similar to other gold deposits of the Rocky Mountain alkaline province which, collectively, have produced over 50 million ounces of gold. Deerfoot Region - HGM Prospect The HGM prospect was initially discovered and drilled by Hemlo Gold Mines and successively tested between 1994 and 2011 with 15 holes. It is hosted along the Deerfoot Corridor, a one by three kilometre area in the easternmost part of the Pen Gold Project, that contains the westward extension of the Porcupine-Destor Fault Zone and second order subparallel shear zones and fault splays. Detailed review of historic drill logs and re-logging of available drill core by GFG outlined a series of stacked, replacement style gold lenses within a sequence of carbonate-silica-sericite altered, brecciated mafic volcanic rocks. Historic drilling focused on the first 300 metres from surface and returned multiple high-grade assays over broad widths such as to 21.59 g/t Au over 3.9 metres and 4.30 g/t Au over 5.0 metres. Cont’d on pg. 47

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Sudbury

active heading into new decade By: Kevin Vincent One of Ontario’s flagship mining camps still has plenty of life. The Sudbury mining basin and the region’s extraordinary supply and services sector continues to grow, innovate, and provide stability for tens of thousands of employees. With more than a dozen mines in the region and plenty of exploration projects, Sudbury remains one of Ontario’s economic engines. Companies like Toronto-based Inventus Mining Corporation are relatively new players to the region. In late November, Inventus released an enthusiastic report to investors suggesting they were confident they’ve stumbled on to a promising gold property northeast of Sudbury. A number of Sudbury’s less profitable mines are in care and maintenance mode as operators wait for a dramatic bump in the price of nickel. The stalwarts of the basin, the historic properties that have sustained the region for more than a century continue to produce while industry innovators collaborate with tech companies in

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search of solutions to things like deep mining. It’s the smaller companies like Wallbridge Mining that are making the most noise. In an interview with Mining Life, Wallbridge President and CEO Marz Kord spoke about the company’s extraordinary results in Quebec that have impacted the direction they want to go with their Sudbury assets. “We still have a very valuable set of properties in Sudbury and we need to unlock that value,” said Kord. “We want to spin it (Sudbury land package) out because we understand that PGM is a different kind of investing group – but I’m a big believer that it is kind of like sending your kids away, you don’t want them to come back for rent money – so we needed to have another near-term to production asset.” Kord says Wallbridge hopes to spin out the Sudbury assets by the end of the year while maintaining an interest in some of the properties, giving

shareholders value in the PGM sector as well as gold. The Broken Hammer project was discovered by Wallbridge’s exploration team, with the first identification of mineralization in 2003. Based on the positive results of a 30,000 tonne bulk sample in 2011, Wallbridge initiated a prefeasibility study and permitting process in preparation for the operation of Broken Hammer deposit as a small open pit operation. Wallbridge received all required permits for the operation of its Broken Hammer open pit project in 2014 and used the proceeds from that project to finance the Fenelon play. Overall, 2020 and beyond for Ontario’s premiere mining camps including Sudbury, Kirkland Lake, Timmins, and northwestern Ontario is predictably upbeat. Each region is enjoying the benefits of a spike in precious metals prices and the added benefit of rising global demand for rare earth elements (REE) and battery metals for electric vehicles.

Project gains investor confidence and Canada’s top mining booster By Kevin Vincent

The new decade has turned up new investments for New Age Metals (NAM) as the company looks to become the newest producer in the Sudbury region – and the company has a notable enthusiast – Eric Sprott. New Age announced February 3rd that IBK Capital Corp. had finalized a share program injecting $2 million into the company – the lions’ share of that investment - $700,000 came from Sprott. “We are very pleased to have Eric Sprott as a partner of New Age Metals Inc. His record of success is quite simply unmatched,” said Harry Barr, Chairman and Chief Executive Officer of New Age Metals. NAM’s enthusiasm for palladium is partly fueled by its proximity to the world-class nickel deposits of the Sudbury basin. The gross proceeds of the financing will be used to develop the Company’s 100per cent owned River Valley palladium project, located 60 miles from the Sudbury metallurgical complex in Sudbury, Ontario. In mid-2019, NAM released a Preliminary Economic Assessment (PEA) suggesting the property has up to 14 years of production. “We are pleased to update our shareholders and interested parties as to the results of the initial Preliminary Eco-

nomic Assessment (PEA) for the company’s 100% owned River Valley PGM Project in Sudbury, Ontario,” said Barr. “The PEA has been developed by various independent consultants – P&E Mining Consultants Inc. (P&E) was responsible for the open pit mining, surface infrastructure, tailings facility, and project economics; DRA Americas Inc. (“DRA”) was responsible for all metallurgical test work and processing aspects of the Project; and WSP Canada Inc. (“WSP”) was responsible for the Mineral Resource Estimate. The PEA demonstrates positive economics for a large-scale mining open pit operation, with 14 years of Palladium and Platinum production.” New Age Metals is a junior mineral ex-

ploration and development company focused on the discovery, exploration and development of green metal projects in North America. The Company has two divisions; a Platinum Group Metals division and a Lithium/ Rare Element division. The PGM division includes the 100% owned River Valley Project, one of North Americas largest undeveloped Platinum Group Metals Projects, situated 100 kilometers from Sudbury, Ontario as well as the Genesis PGM Project in Alaska. The Lithium division is the largest mineral claim holder in the Winnipeg River Pegmatite Field where the Company is exploring for hard rock lithium and various rare elements such as tantalum and rubidium.

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Northwestern Ontario Where the East meets the West

Canada’s newest mining playground By Kevin Vincent

As Canadians continue to bask in their newfound freedom to smoke marijuana and consume a plethora of cannabis products – another “green” investment gold-rush is quietly taking place across northwestern Ontario. Make no mistake about it – cannabis and the Canadian mining industry are inextricably related. The area north of the Great Lakes, commonly referred to as northwestern Ontario, has emerged from the smokey world of recent cannabis investing as the new darling of mining enthusiasts. High-return investors appear to have exhausted their appetite for cannabis and are redirecting their attenPage 50

tion back to Canada’s search for minerals and metals. And to that end, majors, juniors, explorationists, geologists and prospectors are spending a lot of time in the northwest - with good reason. According to the Project Manager of Mining Services for the Thunder Bay Community Economic Development Corporation, John Mason, the region is in the middle of a perfect storm. “We are seeing players from Australia, South Africa and other mature mining jurisdictions suddenly pouring into northwestern Ontario,” said Mason. The list is impressive. It includes Barrick Gold which has just approved a significant change at the Hemlo Mine expected to extend that prop-

erty’s production horizon; or the acquisition of the Newmont (formerly Goldcorp) Red Lake properties by Evolution Mining of Australia; or the billion dollar deal that saw Impala Platinum Holdings Limited acquire North American Palladium. “The other significant trend of course is we are blessed with having our wagon hitched to precious metals like palladium and gold - that won’t come as a surprise to anyone are doing very well,” said Mason in an interview with Mining Life. He says Canada continues to be a strong jurisdiction for precious metals and investors are constantly looking for world-class deposits. Gold and palladium continue to provide strong incentives for domestic companies as well. Mason expects the northwest to see another two or three gold mines accelerate into production in the next 3-5 years – a much shorter time horizon than historically has been the case. “Whether it’s a company coming in from another jurisdiction, or an existing company trying to get to the

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finish line, the big guys (like Barrick and Newmont) are testimonials to how world-class these deposits are, there’s no getting away from that.” Northwestern Ontario is indeed blessed, as Mason says, with mature mining regions including Hemlo, Red Lake, Fort Frances and the storied emergence of the Ring of Fire. Not only that, the region is also home to nearly 500 suppliers and service providers that give northwestern Ontario additional clout when it comes to attracting serious investment dollars. “Geologists are always optimistic,” mused Mason, “but recently we’ve seen a number of IPO’s and share offerings that have been over-subscribed and that’s a good thing. It’s one symptom of the fact we may be turning the corner a little bit.” That kind of insight is giving juniors and geologists a sense of optimism, not just in northwestern, but northeastern Ontario as well, two of Canada’s most prolific mining regions. The other factor that makes both the northwest and northeast regions attractive is the availability of boots-on-the-ground expertise in the form of suppliers and service providers who deliver a sense of comfort to major companies knowing that their investment(s) are in good hands.

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New owners of

Lac des Iles Mine full steam ahead By Kevin Vincent

Little has changed now that one of northwestern Ontario’s largest employers is under new management heading into the new decade. South Africa-based Implats is the new operator of the Lac des Iles property. Prior to the 2019 deal, Lac des Iles was owned and operated by North American Palladium Ltd. The mine has been a fixture in the Thunder Bay region for more than a quarter century. The mine is located 106 kilometres northwest of the city. It has operated since 1993 with both surface and underground mining. The company’s latest technical report indicates that mine life is extended by one year to 2027 with average underground production increasing from 6,000 to more than 12,000 tonnes per day (tpd) and includes 40.9 million tonnes of underground and surface reserves at an average palladium grade of 2.31 g/t, yielding 2.32 million ounces of payable palladium production. That’s good news for the mine’s 700 employees and the many suppliers and service providers in the region. “We look forward to benefiting from the technical, operational and financial resources of a global company as we continue to pursue our palladium production, development and exploration objectives in Canada,” said Impala Canada CEO Tim Hill in a Dec. 13 news release. Implats CEO and executive director Nico Miller added that the acquisition of Lac des Iles goes a long way toward Implats Group becoming a sustainable PGM player. Page 54

“Over the past three years we have developed a strong understanding of the Canadian operation and its management team and are encouraged by its focus on palladium, its reliable growth potential, its highly engaged team and the revenue-generating potential of the Lac des Iles Mine. This acquisition is a positive development for Implats and our stakeholders.” The deal between North American Palladium and Implats was fully approved in early December 2019. Impala Canada is the company’s official operator, a member of the Implats Group. “We are proud to play a significant role within a larger, integrated global PGM producer. We are confident that Lac des Iles will continue to be one of Canada’s largest, lowest-cost and safest underground mines, producing a metal that contributes to a cleaner global environment. We look forward to benefiting from the technical, operational and financial resources of a global company as we continue to pursue our palladium production, development and exploration objectives in Canada,” said Hill. In the meantime, palladium operators are reaping the benefits of a strong market for the metal. Most analysts are suggesting the current supply deficit is going to continue as demand continues to rise – the perfect storm for a steady uptick in the metal’s value. At the time this article was produced, the price for palladium was hovering at about US$2500 per ounce. Platinum and rhodium are enjoying the same price surge.

Mining half page 7.5 x 4.78 live area.pdf 1 9/18/2019 10:17:25 AM

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Pure Gold

to be Oxygen Capital’s third producer in 2020 Headframe, mill and tailings facility - Pure Gold Red Lake Mine (Photo by Pure Gold Mining)

Photo: Mark O’Dea, Founder of Oxygen Capital By Kevin Vincent

The financial horsepower behind companies like Pure Gold Mining is talking very bullish about 2020. Dr. Mark O’Dea, Founder of Oxygen Capital told a packed house at an investor event February 3rd in Vancouver that “2020 has vision, certainty and focus.” O’Dea said that the focus in 2020 is very much going to be on gold. He told an audience of nearly 300 that industry sentiment has changed for the better. “Gold has broken $1500 and it looks like it is going to stay there.” “Building and buying during bear markets when properties are cheap is the wise and prudent thing to do,” he told the attentive breakfast audience. For five years Oxygen has been buying, exploring and advancing projects – to use industry jargon, said O’Dea, “Oxygen has been focused on Tier One projects in Tier One places.” Page 56

One of those prime targets is the Pure Gold operation in Red Lake. The company is getting ready for their first gold pour at the Red Lake mine. O’Dea told the audience that Pure Gold will be pouring and producing over the next 10 months during the highest price of gold in Canadian dollars ever. Pure Gold will become Oxygen’s third operating mine in 2020. O’Dea pointed out that Oxygen Capital has been responsible for three of the world’s 42 new gold mines that have been developed since 2016. Repeatedly, quietly, consistently. O’Dea wasn’t shy when he pointed out that some of the biggest producers in the world including Barrick, Newmont, Agnico-Eagle and others would be hard-pressed to match Oxygen’s record over the past 18 years. Five of the companies Oxygen has created over that period have been sold, delivering over $1Billion in value to shareholders. “The Pure Gold Red Lake Mine continues to produce significant, highgrade gold drill intercepts and today’s results from areas planned for mining this year highlight local opportunities for mine expansion”, stated Darin Labrenz, President and CEO of Pure Gold. “Similar to the 2018 test

mining program where the discovery of a new hanging wall zone resulted in 56% more ounces than predicted, these drill holes have identified both potential extensions to mine stopes and opportunities to test and develop new stopes. Since announcing the commencement of construction in 2019, we have rapidly built out our operations team and our ongoing test mining program has provided development within reach of several of these planned stoping areas. We understand the orebody well and we are now demonstrating the potential for it to grow. With construction well underway, we look forward to first gold production expected in late 2020.” Diamond drilling has identified both extensions to existing stopes, and new zones that may be incorporated into future short term mine plans. Drill holes PG19-714, PG19-716, PG19-717 and PG19-722 represent step outs of 4 metres to 18 metres from existing mining shapes. Drill hole PG19-719 suggests a new hanging wall zone, while PG19-735 highlights an opportunity for potential additions to the mine plan, with 6 metres grading 13.2 g/t gold occurring more than 50 metres away from the Cont’d on pg. 58 current mine plan.

Pure Gold Underground Development

The acquisition and installation of key infrastructure for underground mine operations has commenced onsite, including the installation of new compressors and ventilation systems and the advancement of the existing ramp. Active de-watering of the underground mine is well underway and on schedule, with the mine water level currently at approximately 240 metres below surface. The feasibility study contemplated leasing certain equipment for the first two years of production, however, further research done on the Companyâ&#x20AC;&#x2122;s equipment needs and an analysis of current equipment costs demonstrated that significant savings could be achieved from the feasibility study over the initial two years by purchasing the underground mining fleet. To

Underground Test Mining - Jumbo drill - Pure Gold Red Lake Mine (Photo; http://puregoldmining.ca/ our-projects/madsen-red-lake-gold-project) date, approximately $6.1 million in equipment has been purchased and delivered to site. The equipment includes two haul trucks, two LHD scooptrams, two jumbos, a scissor lift, a minecat, a boom truck, a mine rescue/personnel carrier, and a telehandler among other mobile equipment. While this expenditure increases the initial capital requirements, total mine equipment expenditures will be reduced by approximately 30% over

the first two years by eliminating the mobile lease payments. Underground services including water and electrical supply and communications have been upgraded in the ramp and haulage of stockpiled test mining material to surface is underway. As part of the test mining program, pre-production underground ramp development was initiated ahead of schedule and is progressing at an accelerated pace.

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Hardrock deposit remains priority for company Greenstone Gold Mines Joint Venture Premier and Centerra Gold By Kevin Vincent

The Thunder Bay Mining District is far from being depleted and companies like Greenstone Gold Mines, Premier and Centerra Gold continue to flock to the region and are betting a part of their future on its riches. “To recognize our plans for increased production in the years to come, permitting of the Cove deposit in Nevada and the Hardrock deposit in Ontario, remain a priority for the company,” said Premier President and CEO Ewan Downie in a recent circular to shareholders. Greenstone Gold Mines (GGM, the joint venture between the two companies) is developing the Hardrock, Brookbank, and Viper properties and they expect to invest a billion dollars in capital to get it going. The company released their 2019 financials in late January which included

Page 58

67,427 ounces of gold and 192,829 ounces of silver from their Mercedes Mine in Mexico and the South Arturo Mine in Nevada. Premier is using the winter to prepare detailed engineering and permitting submissions in anticipation of a production decision thereafter. The Hardrock Open Pit resource has been increased to 7.1 million ounces of gold. A Long Term Relationship Agreement (LTRA) with Aroland, AZA and Ginoogaming First Nation has been completed. “The largest deposit in Premier’s portfolio remains the Hardrock that is being advanced by Greenstone Gold Mines, a 50/50 joint venture created with Centerra Gold. In late 2018, the Federal EA was approved and the Provincial EIS approval is expected in early 2019, paving the way for permits and an ultimate construction decision to develop

the 4.6 million-ounce Hardrock openpit deposit. Premier holds a 50% interest in the Greenstone Gold Property (formerly Trans-Canada Property) through its participation in Greenstone Gold Mines. Between 1930 and 1970, more than 4.0 million ounces of gold was mined from multiple mines in the region with the Hardrock mines being the largest. Historic production was from underground mining methods. According to company statements the Greenstone Gold Property is blessed with ideal infrastructure that includes the Trans-Canada Highway (Canada’s national highway) and the Trans-Canada natural gas pipeline extending along its length. In Late 2016, A feasibility study was completed on the Hardrock open pit deposit. The current focus at Greenstone is to work through the permitting process, and foster relationships with local and aboriginal communities. The two companies say the highlights of the project include an Open Pit Life of Mine of 14.5 years, gold production of 4.2 million ounces at 1.02 g Au/t, a gold price assumption of US$1,250/ oz, a mill throughput of 27,000/t of ore per day with the possibility to extend up to 30,000/t per day. Initial capital cost of $1.25 billion with an after‐tax payback period of 4.5 years and an average of 450 employees over the life of mine. The Greenstone Gold Property is located within the Beardmore-Geraldton greenstone belt in Northwestern Ontario, approximately 275km northeast of Thunder Bay.

Retooling Surveying Underground for Next Decade many surveying challenges, improves safety and gathers 40% more data than transitional methods but complete transformation can only come when you consider deploying a “Digital Toolbox” for surveying operations.

Mike Campigotto, Pres., SafeSight When we began SafeSight in 2016 we believed that the introduction of UAV underground could dramatically improve safety and at the same time make an impact in supporting digital transformation in the sector. While both these statements are true, after over 100 underground flights and geo-referenced scans we have learned not only the pragmatic limitations of flight underground but more importantly we have captured the digital requirements at the core of transforming surveying. LiDAR enabled UAV technology solves

Our experience taught us that safety is paramount and that every operational element underground must be mindful of “operational cadence” or “cycle time”. Trying to apply the wrong digital solution while still safe can negatively impact the flow or cadence of operations. In high ventilation, unstable ground within a raise or stope the selecting the wrong digital tool not only extends surveying time but risks lose of equipment which in turn create delays in cycle time. surveying requires a set of digital options that provides alternative approaches to find a “best fit” solution for the job that always “gets the data”. SafeSight has developed a suite of tools and supporting solutions that

pave a digital path forward to retool survey and support geotechnical operations. Innovative solutions that map to specific surveying requirements. The result creates a lighter more compact set of products that adapts to each surveying challenge, maintains increased safety, and collects more data in less time than traditional methods. Each of the element in our “digital toolbox” is an innovation developed from underground operations, from boots on the ground as it were, and from working shoulder to shoulder with our Customers. Innovation however is not enough. It is critical at this early stage in these groundbreaking technologies as suppliers that we do more than deploy technology, we must provide deep support and continuous improvement to Customers. We must “put some skin in the game” effectively share in the cost and the fine tuning of solutions as leading organizations adopt and put digital transformation into operational practice. Page 59

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By Kevin Vincent

The world’s biggest mining companies aren’t shy when it comes to the term efficiency when it is injected into boardroom banter. It’s a double-edged sword that delivers both pain and rewards. That was the case late last year when Barrick, in virtual lockstep with rival Newmont, announced they would hang on to the 34-year old Hemlo Mine, but cut costs at a high level. Hemlo was one asset that Barrick had previously contemplated selling, but now says it is planning to keep is its Hemlo mine in between White River and Marathon, which has been in operation since the mid-1980s. Barrick announced layoffs at Hemlo as it transitioned to using contract miners. Barrick CEO Mark Bristow said 61 people would be laid off, but he added that most of the workforce would take voluntary severance packages. The average age of the work force at Hemlo is 57. A further 150 miners are scheduled to lose Page 62

their jobs in 2020 at Hemlo, he said, when the open pit closes to make way for underground mining, something that should add about 10 years to the life of the mine. The moves were all overshadowed in the spring of last year, by Newmont’s rejection of Barrick’s an unsolicited takeover offer. Instead, Newmont proposed a joint venture project – it too, fell by the wayside. Barrick’s chief operating officer for North America, Catherine Raw, said over the past 34 years Hemlo had been a significant creator of value for its local community, business partners and workforce. Recently, however, its performance had lagged, highlighting the need for remedial action. “By repositioning Hemlo as a smaller but more profitable business, we are ensuring that it will continue to deliver value to its community, employees and other stakeholders for years to come. A longer sustainable mine life will create longer-term employment opportunities and longer-term benefit sharing with the local community and economy,” she said.

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Lakehead Ironworks Heavy metal fabricators getting the job done By Frank Giorno

If you want to experience the real heavy metal, turn off the Metallica YouTube video, remove the headphones, and head down to Lakehead Ironworks’ 29,000 square foot shop, state of the art fabrication facility in Thunder Bay, Ontario. Lakehead Ironworks Inc. was founded by Josef Quast in 1976. In 1990 the business was taken over by his son Uwe Quast, who is still President of the Company. “When my dad started the company, it was known as Lakehead Ornamental Ironworks.” recalls Uwe Quast. My dad was a brick layer by trade from the old country,” Uwe Quast said. “Over the years, Lakehead Ironworks has grown from a 2,500 square foot shop to a 29,000 square foot, state of the art fabrication facility and now carries 1,000 tons of Steel Inventory.” Uwe Quast, the President of the company said. Uwe Quast started working at his dad’s company part-time when he was 14 after school and during summer holidays. On completing high school in 1979, Uwe became a fulltime employee in a family business involving his father and mother. “It’s main line of work was steel stairs and railings and we were good at it, Page 64

“stated Quast. In 1990 Josef Quast retired and sold the equipment for $20,000. Uwe Quast decided to focus on the more commercial structural business and metal fabrications. Lakehead Ironworks had been incorporated and emerged out Josef’s Lakehead Ornamental Ironworks. “From the 1990’s all the way to 2010, we had a crew of no more than 10 people and 7,000 sq./ft to work in,” recalled Uwe Quast, “But man the things we produced with the incredible people working for us were amazing – steelwork for commercial buildings, university buildings,

schools and hospitals. One project that stands out for Uwe Quast took place in 2006 far from his Thunder Bay shop. “I had a local architect who had moved to Barbados, he calls me “hey you interested in a job on Barbados?” Quast retells the story. “Being in the steel manufacturing business has always had its challenges, I said why not, “what’s involved.” Quast had to provide a set of drawings of the steel parts he would supply. The real challenge is that he must supply stainless steel. “I’ve done a bit of stainless, nothing

One of Northwestern Ontario’s

largest fabrication shops here to stay big, but why not, “Quast decided to take on the project. “Sure, enough we ended up in Barbados and we learned how to etch stainless, ship internationally and all that!” “Man, back then we all worked hard and partied just as hard... but we got the work done.” Quast stated. Two years came another request for steel, this time from the Cayman Islands. In 2008 after hurricane Ivan devastated the Cayman Islands and they were re-building. “A local contractor calls us, “hey you have done work in the Caribbean before, do you want to price work on Grand Cayman,” said Quast. “What was involved was building hurricane resistant roof structures.” Lakehead Ironworks bid was accepted, and they started building. Quast hired an engineer who is still with Lakehead Ironworks, and built the roofs that disassembled and fit into sea-cans. “We built one of the most complex projects to this day and we did it on one of the smallest islands in the Caribbean,” said Quast.” We eventually did 2 condo developments and a school. “ The work dried up when the US fell on rough times and they were just next door. At around end of 2008- 2009 Lakehead Ironwork received a call from one of the surrounding mines near Thunder Bay. They wanted Lakehead Ironworks to rebuild one of their buckets. Apparently two of the previous fabricators did not meet their expectations. According to Quast a lot goes into repairing a mining bucket, shovel or dump box. “You need an understanding of the

strains on the equipment, proper materials, welding consumables, temperature control and wear components,” Quast pointed out. “It all matters.” The client was impressed with the restored bucket and Lakehead Ironworks started repairing more mining buckets and dump boxes. The company found it tougher and tougher to compete around 2010. “My guys worked hard, we were working out of an old warehouse attached to a grain elevator and the mining division was done out of the train-shed of that elevator, non-insulated, no overhead cranes, but we had a good stereo with “subs”, Quast recalled. It was obvious Lakehead Ironwork had to adapt or shrivel up and fade. Even our structural and miscellaneous side was feeling it... Material handling was time consuming and we compensated by low wages, no benefits, and no future. It was time for a change. “In 2012 I had a couple of bucks saved up, nothing big but something, I needed to upgrade,” Quast said. At that time Canada Custom and

Revenue Agency undertook an audit of the company. The auditor scrutinized the books and told Quast he had a great company and he should be looking at government funding programs. The Ontario Heritage Fund was interested in taking a chance. A $1.4 million bank loan at 4 % was negotiated with one of the banks and plans were developed on a new building for Lakehead Ironworks. With the new facility the environment has changed. The air quality improved, benefits happened, pensions were incorporated, wages increased. (We even have 6 overhead gantry cranes)... and along with those changes, other changes happened such as research and development, safety improved, material testing, product analysis, joint developments and research with the mines, companies such as Sandvik and Hardox have partnered up with Lakehead Ironworks. “We adapted and we are here to stay”, Quast said We have become one of the biggest fabrication facilities in Northwestern Ontario with 56 employees both inhouse and mobile committed to providing top notch craftsmanship. Page 65 65 Page

Waiting for Fire to Ignite! 20 Years After PHOTO: Webequie First Nation, Ontario. Photo by WCS Canada / Cheryl Chetkiewicz By Frank Giorno

Its been about 20 years since the area was named the Ring of Fire by Richard Nemis, the founder of Noront Resources after the Johnny Cash song. Progress has been glacial and like watching the ocean, hopes are boosted by the advancing tide, but with every ebb of disappointment the faith in the project wavers. Only to be boosted by the next high tide. Recently there has been an increase of skepticism of the Ring of Fire. Is the Ring of Fire really worth the effort? Is there really anything of value to mine or is the expense of building an infrastructure worth it? In the beginning there was Spider Resources The area known as the Ring of Fire came to the radar of junior exploration companies like Spider Resources. Veteran geologist Neil Novak, founder of Spider Resources was very bullish on the mining potential of the James Bay lowlands of Northern Ontario. Since inception, the company concentrated its exploration efforts around a massive structure called the ‘Ring of Fire’, which is an area covered by muskeg swamps. Spider Resources initially searched for diamonds, discovering eight kimberlite occurrences in the general area of the nearby DeBeers Victor Diamond Mine. The Victor mine was established at a cost of 1 billion dollars to mine diamondiferous kimberPage 66

lite from an open pit that produces 2.7 million tonnes of ore that recovers 600,000 carats each year. Spider Resources partnered with KWG Resources (TSX.V:KWG) with substantial financial and joint venture support during this tantalizing search that refused to replicate the good fortune that fell upon DeBeers. Cliffs Resources steals the show and drops the ball As interest in the Ring of Fire peaked and with it drew the attention of U.S. iron miner Cliffs Resources of Cleveland Ohio. Spider staked out wide swaths of land that was seized by Cliffs Resources, in what amounted to a hostile takeover, just as Spider Resources was about to sign a merger agreement with KWG Resources. Soon the Ring of Fire entered the Ontario imagination and it was labelled as the biggest mining discovery in Ontario in decades. Tony Clements, then the federal minister for Natural Resources compared the impact the Ring of Fire could have in Ontario to the Alberta Oilsands. The Challenges Then and Now The semi-circle shaped area is located about 500 kilometres northeast of Thunder Bay. There are no roads, not even seasonal winter ice roads. Nine Indigenous communities are in the area, which is accessible only by air. The closest provincial highway is hundreds of kilometres away from the southern extend near the Aroland

First Nation. There is no electricity from the Ontario Power Grid. Most communities have standalone dieselpowered generators to provide electricity. The Need for a Road Constructing a road from Noront’s Eagle’s Nest nickel deposit and their nearby Black Thor chromate deposit has proved elusive for the last five years. The problem is that without a road to the deep north through a very swampy stretch of unsettled land whatever potential that is in the ground in the form of nickel, gold, silver, chromium and other minerals and metals will be worthless. Better road infrastructure in the north, including all-season roads, can reduce the cost of delivering consumer goods, fuel and construction materials. Roads also provide communities with better access to primary health care and other services. Marten Falls First Nation and Webequie First Nation are moving forward as proponents for Environment Assessments for their individual road projects. Is the Ring of Fire Worth It? One Man Says Yes, It Is! As James Mungall, the former chief geologist for Noront and now a professor of economic geology at Carleton University phrased it in an article that appeared in the Sudbury Star January 24,2020 - How much is the Cont’d on pg. 68

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Noront Resources is the largest claim holder in the Ring of Fire Noront signed a memorandum of understanding with the Aroland First Nation to advance the planning process for the development of the Eagle’s Nest nickelcopper-platinum-palladium deposit in the Ring of Fire, northern Ontario. Cont’d from pg. 66

Ring of Fire really worth? One thing is keeping those deposits worthless, at the moment is a lack of a transportation corridor to help build the mines and transport the ores to market. “The massive road network in southern Canada is entirely financed by the public, in the service of industry — why not a road to the Ring of Fire? “Mungall asked in his Sudbury Star article of January 24, 2020. “The reason nothing is happening in the Ring of Fire has nothing to do with the value of the deposits,” Mungall asserted. “It is entirely due to the inability of governments at all levels, including First Nations, provincial, and federal, to reach consensus on land tenure and development plans. “ It is time for all of these groups to negotiate in good faith and govern effectively for their stakeholders so that the value of the Ring of Fire can be realized while providing access and development opportunities to a marginalized region of Ontario and opportunities to improve the lot of the First Nations in the region. Cliff Resources frustrated effort to secure permission to build a road in 2014 Fails! Six years ago, Cliffs Resources was very close to opening up the Ring of Fire by 2014. Back then the access Page 68

road was to be built privately by the mining company. Cliffs Resource submitted a road design to the Ontario Mining Commissioner for permission to build a road a portion of which would pass through lands claimed by KWG Resources. KWG opposed Cliffs’ road plan because it did not offer sufficient compensation and that it could likely impede its effort to develop its mining claim. But effort bogged down when its route for a north south road was denied because the mining commissioner sided with KWG Resources over whose land the road was to traverse. After the failure Cliffs Resources got out of the Ring of Fire and sold its holdings to Noront at bargain basement prices after a shareholder rebellion installed a fiscally conservative board of directors, fuelled by fears of international prices for chromate. A shareholder revolt headed by Laurenco Gonçalves led Cliffs Resources to abandon its dream of extracting chromate from the Ring of Fire. Noront holds the cards Today, Noront Resources is the largest claim holder in the Ring of Fire, but the number of exploration companies still in the hunt have been reduced. Noront is planning to develop its Eagles Nest nickel mine first, followed by chromite mines. In May 2019, the company announced Sault

Ste. Marie will be the future home for a new ferrochrome processing plant. Chromite, one of the resources found in the Ring of Fire, can be processed into ferrochrome, a key ingredient in stainless steel. Six years after Cliffs Resources pulled out there has been some minor progress. The individual First Nations have become the proponents for the Ring of Fire Road, with each now being the proponent of the section cutting through their traditional lands. Electricity required for Mining and Refining Electricity transmission lines still have to be designed, reviewed for their environmental soundness, consultations with First Nations and acquire provincial and federal environmental approval. There are three potential routes but no active sign of a proposal that can be submitted for consideration. One route would be to extend the First Nations owned Five Nations Energy Transmission line that extends to the now closed Diamond Mine and could be extended south to the Ring of Fire. The second possible line could run north from Ontario Power Generations plant at Long Lac north of Geraldton, Ontario and build by Hydro One. The Third possibility would be to extend that is currently being built in Northwestern Ontario eastward to the Ring of Fire. Ferrochrome Smelter The ferrochrome smelter issue Sault Ste. Marie was selected by Noront as the location for its ferrochrome smelter. There was much celebration, but recently the number of opponents has galvanized in their opposition to Sault being the location. Opponents include the Batchawanna First Nations. A group of doctors from Sault Ste. Marie also sent a letter to the Ford government warning of health problems caused by emissions from operating ferrochrome smelters. For his part, Allan Coutts said he expected there would be opposition Cont’d on pg. 70

Page 69

Ontario working directly with First Nation

partners through bilateral agreements Cont’d from pg. 68

at this stage whether it was in SSM, Sudbury, Timmins, or Thunder Bay. But as opposition grows in Sault Ste. Marie, Mayor George Pirie of Timmins, keeps raising the welcome mat reminding Noront that they are always welcome to change their minds and go to Timmins where there already is a permitted property for the smelter and residents ready to give them a loving hug of welcome. The Markets The market still plays a role in the viability of the entire project once all the pieces of the puzzles are lined up. Chromate from the Ring of Fire was originally earmarked China the biggest manufacturer of stainless steel in the world. But the continuing trade dispute between China and the U.S. could force the U.S. to secure its own stainless-steel supply. The chromate from the ring of fire could be destined south to the U.S. instead of overseas to China. Government: Help or Hindrance? The Liberal governments under Dalton McGuinty and Kathleen Wynne ushered in a Ring of Fire Secretariat in 2011 that was to expedite the talks Page 70

with First Nations some of whom supported the projected and others who opposed it based on benefits that would accrue to them. Negotiations between government and First Nations developed a framework agreement or a broad outline for proceeding to final negotiations, but not a final agreement could be negotiated. That framework agreement was scrapped by the Doug Ford government in August 2019 who favours signing agreements with individual First Nations in the hopes of moving the project forward. Ford and his government are also committed to tearing up the McGuinty government’s Far North Act hoping to reduce red tape and restrictions on important economic development projects in the Far North including the Ring of Fire, all-season roads and electrical transmission projects for communities. “We have heard time and again that the Act limits development in the Far North of Ontario, where there is so much potential for economic growth and prosperity,” said John Yakabuski, Minister of Natural Resources and Forestry. “That’s why we are moving quickly

with the intention of building a path forward that supports business certainty while continuing to work closely with First Nations communities at an advanced stage of planning.” Time frame for opening up the Ring of Fire If the economic assessment and design work is completed and the decision is to move forward with the project, it will be in the ballpark of about two years before the Environmental Assessment is started. The Ring of Fire represents a major economic opportunity to create jobs, generate revenue, build infrastructure and bring prosperity to communities across the north, including First Nation communities. Ontario is working directly with First Nation partners through bilateral agreements. Agreements between Ontario and First Nations partners support individual communities’ unique needs and priorities for development. This will help build the necessary infrastructure to unlock the incredible potential of mineral resources in the Ring of Fire – for the benefit of First Nations and all people in Ontario.

Ontario Prospectors making voice

heard on provincial working group

By Kevin Vincent

When the word prospector is uttered, it conjures up the image of a lonely, snowshoe wearing, disheveled soul, wandering, what appears to be aimlessly, through a dense northern forest. Yet, he is anything but aimless. There is a singularity of purpose. And the last place you might expect that wandering soul to appear is at the ‘big boys table’ – the seat of political or corporate power. The Ontario Prospectors Association is no stranger to the latter, nor is it anyone’s wallflower. The OPA is not only at the table, it is making its voice heard as part of the provincially-appointed Mining Working Group that includes some of the titans of Ontario mining like Tony Makuch of Kirkland Lake Gold. The Working Group was established in 2019 by Energy, Northern Development and Mines and Indigenous Affairs Minister Greg Rickford. OPA Executive Director Garry Clark sits on the group and the voice of the prospector is carrying as much weight as the loftiest of CEO’s. “It is critical your (Rickford’s) staff comprehends the mining sequence and the timelines associated with mineral discovery to production,” said Clark in an open letter to Minister Rickford (who chairs the group). “The components to discover an economic deposit are complicated and getting to production can take years.” Clark delivered his comments to Rickford shortly after the working group’s first meeting in 2019 telling him that the OPA was impressed by the group’s broad cross-section of members. Clark outlined five recommendations as follows:

1. The plans and permits system require an overhaul to allow a more expedited process. The potential is to streamline the system to allow a certain level of exploration that is known to occur that does not require plans or permits. These levels could be on a notification basis to First Nation Communities. The requirement is that an understanding by the Communities of the basic Mining Sequence. Early exploration has minimal footprints on the landscape. 2. A determination of the First Nation Communities Traditional Lands needs to be illustrated allowing explorers to know who they would need to consult with prior to claim acquisition. This is a mapping exercise that would require interaction of various First Nation Communities. 3. As projects progress toward production companies need to have stability of which First Nation Communities, they need to develop relationships. The need for knowledge of effected Communities should have a cut-off point. Having to consult with 2 Communities at the early stages and ending up with 12 at production isn’t feasible. 4. Support of the Prospectors and Junior Companies is required to place Ontario on the same level as other Provinces. Comparable flow through rates would assist as well as a rebate system for exploration. Explorers in other Provinces enjoy a % refund on exploration. The recent Junior Exploration Assistance Program funded by NOHFC was an extreme success with 61 projects funded by the $4.1 million with companies stating they intend to spend an additional $42 million. 5. Geoscience funding for the Ontario Geological Survey. Part of the

reason that Ontario was the #1 jurisdiction in the past was the quality and current nature of the geoscience data. The Rainy River Deposit is a result of quality geoscience. Some of the members of the Ontario Working Group include: Renaud Adams, President/CEO, New Gold Carol Banducci, Executive VP/CFO, IAMGOLD Marc Boissonneault, Head of Global Nickel Assets, Glencore John Burzynski, President/CEO, Director, OSISKO Garry Clark, Executive Director/Chair, Ontario Prospectors Association Alan Coutts, President/CEO, Noront Daniella Dimitrov, Partner, Sprott Catharine Farrow, Director, Franco Nevada J.P. Gladu, President/CEO, Canadian Council for Aboriginal Business Chris Hodgson, President, Ontario Mining Association Jay C. Kellerman, Partner, Stikeman Elliott LLP Tony Makuch, President/CEO, Kirkland Lake Gold John Mullaly, Vice President Corporate Affairs and Energy, Newmont Goldcorp Mike McCann, Head of Mining and Milling, North Atlantic Operations, Vale Marvin Pelletier, Executive Vice President and

Chief Development Officer, Carbonix, and

President, Maawandoon Inc. Fred R. Pletcher, Partner, Borden Ladner Gervais LLP Stephen Roman, President/CEO, Harte Gold Greg Rickford (Chair), Minister of Energy, Northern Development and Mines

The OPA is now gearing up for its “Exploration Finds Mines” Showcase 2020, April 7/8 in Thunder Bay. In addition, the OPA has thrown its support behind the Save Canadian Mining initiative (see article elsewhere in this edition of Mining Life) that is encouraging the Ontario government to reverse harmful investment regulations that have made junior mining companies the target or short-sellers on various stock markets. Page 71

AUS-based Evolution Mining takes reigns of historic Red Lake properties

By Frank Giorno

The historic gold region of Red Lake, Ontario entered 2020 with a distinctly down-under tone. The storied Red Lake, Campbell and Couchenour operations are being run by Australia-based Evolution Mining. Those properties had been operated by Vancouver-based Goldcorp for several years until the company merged with Newmont in the spring of 2019. Seven months later, Newmont worked out a deal to transfer its Red Lake Operations to Evolution Mining, a company, whose top executive says, had recently been looking to expand into Canada. Executive chairman Jake Klein said the company is excited to add a high-grade, long-life asset in Canada. “We have been actively looking at assets in Canada since 2017, as we believe it is a country with low geopolitical risk, high geological prospectivity and a strong mining culture,” Klein said in a statement. “Red Lake is an undercapitalized asset which, through a committed investment in development and exploration, is intended to become a cornerstone asset in the Evolution portfolio,” added Klein. “This transaction both strengthens our Page 72

balance sheet and provides ongoing exposure to new discoveries at Red Lake,” said Tom Palmer, President and Chief Executive Officer of Newmont. “Evolution is a highly respected and responsible gold producer who is committed to the success of Red Lake

Picture: Evolution Mining Executive, Chairman Jake Klein

and we believe will prove a great partner for surrounding communities and stakeholders,” Palmer added. Through the agreement, with Newmont Goldcorp Corporation, Evolution Mining acquired 100% of the Red Lake gold complex in northwestern Ontario. Red Lake is an underground gold mining complex in northwestern Ontario. The operation comprises of the Red Lake and

Campbell complexes, each consisting of an underground mine and associated processing facility, and the Cochenour mine. In the 2018 calendar year the mine produced 276,000 ounces of gold at an all-in sustaining cost (AISC) of US$988 per ounce. In 2019, Red Lake was forecast to produce 150,000 – 160,000 ounces at an AISC of approximately US$1,600/ oz. Since production commenced in 1949, Red Lake mine has produced more than 25 million ounces of gold. Upon closing of the transaction, Newmont will receive $375 million in cash and contingent payments of up to an additional $100 million tied to new resource discoveries. Under terms of the contingent payment, Evolution will pay Newmont $20 million for each one million ounces of new gold resources added to the existing Red Lake resource base over a fifteen-year period. The contingent payment is applicable to the first five million ounces of new resources. Newmont intends to use proceeds from the transaction to support the Company’s capital allocation priorities of returning cash to shareholders, maintaining an investmentgrade balance sheet, and investing in a world-class portfolio. By acquiring Newmont Goldcorp’s mines, Evolution Mining becomes the major miner in the Red Lake District where mining dates to the 1870s. Since 1949, Red Lake has produced more than 25 million ounces of gold. In 2018, its mines produced 276,000 ounces of gold, but production is forecast to drop to 150,000 to 160,000 ounces this year.

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Casa Berardi proven and probable down marginally into 2020 By Kevin Vincent

Hecla Mining Company, owners of the historic Casa Berardi Mine in northwestern Quebec, launched 2020 by reporting the highest silver, lead, and zinc reserves in its 129-year history and provided an encouraging update on its exploration programs during the fourth quarter of 2019. “In 2020, at current prices, we expect continued strong cash flow generation with the ongoing solid performance at Greens Creek, the ramp-up of Lucky Friday, expected improvements at Casa Berardi and the potential mine life extension at San Sebastian from the Hugh Zone,” Phillips S. Baker, Jr., President and CEO said. “The foundation of value creation for any mining company is increasing reserves, and Hecla’s silver, lead and zinc reserves are the most in our 129-year history,” said Baker, Jr. “Despite using what we believe is the industry’s most conservative price assumption and spending our second lowest amount on exploration in the last 10 years, Hecla grew silver reserves 11% last year with Greens Creek having its most reserves since 2001. We expect our exploration programs over the next few years to further add reserves across the Company.” “2019 was a tale of two halves where the second half had higher production, higher prices, better earnings and more cash flow,” said Baker. “The strong third and fourth quarters markedly improved our financial condition, putting us in a better position to refinance the Senior Notes.” At Casa Berardi, the 1,378,065 tons processed at the mill contained approximately 165,368 ounces of gold, Page Page 74 74

with 57% of the milled tonnage coming from underground and 43% of the milled tonnage coming from the East Mine Crown Pillar (EMCP) Pit. Proven and probable gold reserves decreased approximately 10% to 1.72 million ounces and reserve tonnage at Casa Berardi decreased 4% to 20.6 million tons over 2018. There was an overall reduction in underground reserves at Case Berardi of 105,600 gold ounces and a decrease of open pit reserves of 83,100 gold ounces compared to 2018. Most of these decreases were due to mining depletion. Hecla has mined over 1 million ounces of gold at Casa Berardi since acquisition in 2013. Measured and indicated gold resources decreased 12% from 2018 levels as gains from underground drilling were offset by decreases in the Pit areas. The largest decreases were a result of conversion to underground reserves of the 148 Zone and reclassification of some resources to Inferred below the 160 Pit. Inferred gold resources increased 49% from 2018 levels. On the exploration side at Casa Berardi, during the fourth quarter, up to seven underground drills were used to refine stope designs, expand reserves and resources in the 113, 118, 119, 124, 128 and 148 zones and confirm further potential at depth and to the east and west. One drill on surface completed in-fill and exploration drilling within and near the proposed 160 Pit and continues to confirm continuity with the pit outline and expand resource outside of the current pit design. Drilling in the East Mine focused on defining continuity and expanding mineralization in the high-grade 148

Zone and open pit mineralization within and outside the proposed 160 Pit. Within the 148-01 lens in the 148 Zone, high-grade intersections include 0.48 oz/ton gold over 11.8 feet, 0.89 oz/ton gold over 14.8 feet and 0.47 oz/ton gold over 29.8 feet confirming continuity within the lens. Drilling in the 160 Zone within and below the current pit outline continues to define broad intervals of mineralization and adding resources with recent intersections including 0.11 oz/ton gold over 113.2 feet and 0.13 oz/ton gold over 68.6 feet. In the West Mine area, drilling in the 113 and 118 zones targeted multiple lenses along the Casa Berardi Fault in order to extend known mineralization at depth and to the east outside of the current resources. Recent intersections including 0.11 oz/ton gold over 26.2 feet suggest this zone continues to be open at depth. High in the mine, drilling targeted the eastern extension of the stacked 119 Zone ore lenses at the contact between the sediments and volcanics associated with pyritic chert and stacked quartz veins south of the Casa Berardi Fault. Recent intersections include 0.25 oz/ton gold over 29.5 feet including 0.42 oz/ton gold over 5.9 feet and 0.12 oz/ton gold over 37.1 feet. In the first quarter of 2020, underground drilling is expected to expand and refine resources in 123 Zone in the West Mine and the highgrade 148 Zone in the East Mine. Underground exploration drilling during the year is planned to evaluate the lower extension of the 113-118 and 128 zones in the West Mine and the 146, 148, and 152 zones in the East Mine.

data suggesting revenues will top US$2.5Billion this year. In the interim, Agnico’s stable of producers in northwestern Quebec continue to perform well for investors. Smaller mines would take 5-10 years to do what Canadian Malartic is able to produce through a single stretch of the four seasons. Canadian Malartic, 25 km west of By Kevin Vincent Val-d’ Or, Quebec, is the largest opAgnico Eagle kicked off the new year with a flurry of activity including a erating gold mine in Canada. The new site plan control agreement with the town of Kirkland Lake in open-pit mine and plant built by northeastern Ontario; a $5 million commitment to train new personnel Osisko Mining Corp. began commerand support mental health efforts in Nunavut; and the company released cial production in May 2011. In June data suggesting revenues will top US$2.5Billion this year. 2014, Agnico Eagle and Yamana Gold In the interim, Agnico’s stable of producers in northwestern Quebec conacquired Osisko and created the Catinue to perform well for investors. Smaller mines would take 5-10 years nadian Malartic General Partnership to do what Canadian Malartic is able to produce through a single stretch that owns and operates the mine. of the four seasons. Canadian Malartic, 25 km west of Agnico Eagle and Yamana each have Val-d’Or, Quebec, is the largest operating gold mine in Canada. The an indirect 50% ownership interest open-pit mine and plant built by Osisko Mining Corp. began commerincialtheproduction Partnership. in May 2011. In June 2014, Agnico Eagle and Yamana Gold The 55,000-tonnes/day open-pit acquired Osisko and created the Canadian Malartic General Partnership mine and plant produced a record that owns and operates the mine. Agnico Eagle and Yamana each have 697,200 ounces of gold in 2018, with an indirect 50% ownership interest in the Partnership. another 660,000 ounces expected The 55,000-tonnes/day open-pit mine and plant produced a record in697,200 2019 and 700,000 ounces in 2020 ounces of gold in 2018, with

is expected to be completed in late 2019. Production activities at Barnat are scheduled to begin in late 2019, following completion of the highway deviation. The company says the potential of the Odyssey, East Malartic, Sladen and Sheehan zones are currently being explored to determine their potential to provide new sources of ore (350,000 ounces on 50% basis). Mine for the Canadian Malartic mill. life is expected to last through 2031. On the exploration side, the BarAgnico Eagle continues to tout its nat extension project will allow the partnership to access the Barnat strong track record of environmendeposit. Work is primarily focused on the Highway 117 road deviation, tal, social and governance (ESG) overburden stripping and tailings expansion. The highway deviation performance. “We remain the partis expected to be completed in late 2019. Production activities at Barnat ner of choice within our industry, it are scheduled to begin in late 2019, following completion of the highalso provides confidence that we are way deviation. The company says the potential of operating in a socially responsible the Odyssey, East Malartic, Sladen and Sheehan zones are currently bemanner, ” stated the company in a reing explored to determine their potential to provide new sources of ore cent statement. for the Canadian Malartic mill. Agnico Eagle continues to tout its Agnico is investing substantially in strong track record of environmental, social and governance (ESG) an academic partnership with the performance. “We remain the partner of choice within our industry, it Research Institute on Mines and Enalso provides confidence that we are operating in a socially responsible vironment (RIME) UQAT-Polytechmanner,” stated the company in a recent statement. nique. Focused on the environment, Agnico is investing substantially in an academic partnership with the this unique research program in Research Institute on Mines and Environment (RIME) UQAT-PolytechQuebec is providing leading-edge nique. Focused on the environment,

(2013-2019) had a major impact on the development of knowledge, application of innovative solutions, and the training of highly qualified people,” said the company. In late 2019, Agnico Eagle and their industry partners announced the renewal of a partnership agreement with the RIME. The agreement is for seven years – from 2020 to 2027 – research on environmental chaland is between the Université du lenges that face the global mining industry, such as climate change and Québec en Abitibi-Témiscamingue tailings management. The combination of industrial and (UQAT), Polytechnique Montréal academic expertise has immediate and long-term benefits for all stakeand six Canadian mining compaholders. “The first phase of this partnership nies – Agnico Eagle, Rio Tinto, New(2013-2019) had a major impact on the development of knowledge, mont-Goldcorp, IAMGOLD, Glencore application of innovative solutions, and the training of highly qualified Raglan Mine and Canadian Malartic people,” said the company. In late 2019, Agnico Eagle and their Mine. industry partners announced the renewal of a partnership agreement Over that time period, the industry with the RIME. The agreement is for seven years – from 2020 to 2027 – will invest a total of over $12M to and is between the Université du Québec en Abitibi-Témiscamingue develop innovative environmental (UQAT), Polytechnique Montréal and six Canadian mining compasolutions for the entire life cycle of nies – Agnico Eagle, Rio Tinto, Newmont-Goldcorp, IAMGOLD, Glencore aRaglan mine, Mine whileand training qualified perCanadian Malartic Mine. sons for tomorrow. Over that time period, the industry will invest a total of over $12M to Todevelop learn more about RIME and the innovative environmental solutions for the entire life cycle of partnership, visit the website at a mine, while training qualified persons for tomorrow. https://irme.ca/ To learn more about RIME and the partnership, visit the website at Page 75 https://irme.ca/

Agnico Eagle Canadian Malartic

targets 700,000 oz in 2020

another 660,000 ounces expected in 2019 and 700,000 ounces in 2020

this unique research program in Quebec is providing leading-edge

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Osisko

kicks off 2020 with high grade results at Lynx and deepest drill hole in Canada

By Kevin Vincent

If there’s such a thing as “exploration trash talk” – Osisko Mining could be in for a round of high-fives. The company believes, when it comes to drill holes, no-one has gone deeper. The company released a summary in late January of what they called the “Discovery 1” drill hole. Discovery 1 was ambitious. It was planned to go 3000 to 3500 metres to target two down plunge extensions of known gold zones and investigate the projected source area of the Windfall deposit at depth. How did that turn out? Osisko President and Chief Executive Officer John Burzynski commented: “Discovery 1 is a great success and achievement. We are very proud of our Osisko team and Major Drilling for their tremendous work completing this hole. Successes include the discovery of the Underdog and Triple 8 extensions, the wide intercepts of anomalous gold values similar to those observed in the Lynx system, and now these new high value gold intercepts at depth. These results of the Discovery 1 hole show that the Windfall system is extensive Page 76

with substantial room for potential growth.” Osisko’s working model for the Windfall deposit interprets an outer shell and centre of a possible porphyry intrusion feeding the WindfallLynx gold system. According to the company, the final length of Discovery 1 was 3467 metres, becoming the longest diamond drill hole in Canada, and achieving a vertical depth of 2700 metres from surface. “Analytical results from the final 200 metres are at the laboratory, results are pending.” Prior results from Discovery 1 include the successful intersection of the targeted Underdog Zone (500 metre extension: 14.1 g/t Au over 2.1 metres) and the Triple 8 Zone (100 metre extension: 9.58 g/t Au over 7.6 metres) (see Osisko news release dated September 11, 2019), and the intersection of several wide zones of anomalous gold mineralization ranging up to 116 metres in length, similar to the wide anomalous gold zones observed in the proximity of Triple 8, Triple Lynx, and Lynx zones (see Osisko news release dated December 10, 2019).

Osisko President and Chief Executive Officer John Burzynski said: “We are very pleased with today’s results from Windfall, especially the continuing high-grade extension in Triple Lynx. Drilling continues to deliver positive results and demonstrate the strong continuity of grade inside the known mineralized zones, many of which remain open in at least one direction. The new intersections include the last batch of 2019 infill drilling which will be incorporated into the updated Windfall resource estimate anticipated in February.” Significant new analytical results from 116 intercepts in 44 surface drill holes and 19 wedges focused on Lynx, Main Zone and Triple 8 infill and expansion drilling are presented below. Additionally, 71 intercepts from 45 underground infill drill holes are included in the table below. Highlights from new results include: 266 g/t Au over 2.0 metres in OSKW-1603-W5, 106 g/t Au over 4.0 metres in OSK-19-2139; 135 g/t Au over 2.5 metres in WST-19-0251; 114 g/t Au 2.5 metres in OSK-W-19-1965, 36.9 g/t Au over 5.0 metres in OSK-

W-19-1104-W4; 83.8 g/t Au over 2.1 metres in WST-19-222A, 18.5 g/t Au over 9.0 metres in WST-19-0161A; 77.7 g/t Au over 2.1 metres in WST19-0273A; 76.6 g/t Au over 2.1 metres in WST-19-0188 and 44.7 g/t Au over 3.2 metres in OSK-W-19-2170. Maps showing hole locations and full analytical results are available at www.osiskomining.com. In other company news in early Janu-

ary, Osisko sold off its interest in Generation Mining. Osisko had owned just under 9 million shares of Generation, representing just under 9% of the company. Osisko is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Osisko holds a 100% interest in the high-grade Windfall gold de-

posit located between Val-d’Or and Chibougamau in Québec and holds a 100% undivided interest in a large area of claims in the surrounding the Urban Barry area and nearby Quévillon area (over 2,700 square kilometres). The Windfall Lake gold deposit is located between Val-d’Or and Chibougamau in the Abitibi region of Québec, Canada. Page 77

Wallbridge goes into 2020 with $36 million exploration budget

By Kevin Vincent Wallbridge Mining kicked off 2020 with a flurry of exciting announcements as the junior miner looks to establish itself as a head-turner in Canada’s mining industry. And yes, it’s really called Area 51. In an exclusive video interview with Mining Life & Exploration News, Company President and CEO Marz Kord was hard-pressed to restrain his excitement about the company’s market performance in 2019 and their massive exploration budget for 2020. To see the interview, go to http://news.mininglifeonline.net . Kord says Wallbridge finished 2019 as the TSE’s top-performing mining stock and the company is still several years away from a production decision. The excitement stems from Wallbridge’s flagship Fenelon project in northwestern Quebec, about 70km due east of the Detour Lake mine which is northeast of Cochrane, Ontario. In early January, the company announced that in addition to recent Page 78

high-grade results in the Lower Tabasco Zone, the ongoing exploration drilling had intersected wide zones of gold mineralization showing bulk mining potential in Area 51 on its 100%-owned flagship Fenelon Gold Property located in the Norddu-Québec region, approximately 75 kilometres west-northwest of the town of Matagami, and consists of one block of nineteen (19) mining claims and one (1) mining lease. Fenelon Gold is proximal to the Sunday Lake Deformation Zone which hosts the Detour Gold Mine in Ontario, and Balmoral Resources’ gold deposits at Martinière. The 1,052-hectare property hosts the Discovery Zone gold deposit and surrounding 4 km strike length of a gold-hosting secondary splay of the SLDZ. In 2016, Wallbridge purchased Fenelon Gold from Balmoral Resources for $3,700,000. Wallbridge owns a 100% undivided interest in Fenelon Gold, subject to royalty provisions. “Our focus on the property over the last few months has been dedicated to achieving several goals. Firstly,

we are following up on high-grade, underground bulk-minable resource development particularly in the Lower Tabasco Zone. Secondly, while drilling for the Lower Tabasco Zone, we are testing the Area 51 zones and as such are beginning to determine both the open-pit and underground bulk mining resource potential for Area 51. The wide intersections of near-surface gold mineralization, such as 1.21 g/t Au over 70.99 metres in hole FA-19-080, identified in the Andromeda Corridor of Area 51, have the potential to positively impact the overall economics at Fenelon”, stated Marz Kord, President & CEO of Wallbridge the first week of January. Two weeks later, the news got even better. “It is quite remarkable that drill holes completed 800 metres northwest along strike of the current zones have intersected similar gold mineralization and host geology as that found in Area 51. Results continue to support continuity of gold mineralization along the more than two

kilometres tested on the property thus far, and mineralization remains open along strike and at depth,” stated Marz Kord, President & CEO of Wallbridge. “Our drilling strategy for 2020 is: 1) continue the expansion of the Tabasco and Area 51 zones in anticipation of a resource estimate, 2) continue significant step-out drilling to extend the known gold zones deeper and along strike and 3) test grassroots targets along the more than four kilometres of favourable geology identified to date on the Fenelon property.” To put a little icing on the cake, Wallbridge unveiled more good news 24 hours later. Two additional holes from the ongoing 2020 drill program also intersected intervals of visually strong mineralization with abundant visible gold in the Lower Tabasco Zone: hole FA20-110 returned a 120-metre core length interval with several mineralized zones, six containing visible gold, in the Andromeda-TabascoCayenne corridors, whereas hole FA20-115 cut a 16-metre core length interval of the Lower Tabasco Zone, approximately 23 metres below the FA-19-086 intersection. “Today’s announcement continues to confirm the presence of significant high-grade gold mineralization in the Lower Tabasco Zone which remains open at depth and on strike,” stated Marz Kord, President & CEO of Wallbridge. “A known strike length of 300-400 metres, uncapped weighted average gold grades in excess of 10 g/t over average core lengths of about 15 metres, the approximate 500 metre down dip extent identified thus far and indications from drill holes like FA-20-110 and FA-20115 highlight the potential for a significant underground resource.” Wallbridge is establishing what it calls “a pipeline of projects” that will support sustainable 100,000 ounce-

plus annual gold production as well as organic growth through exploration and scalability. The Company is currently developing its 100%-owned Fenelon Gold Property, which is located proximal to the Sunday Lake Deformation Zone, an emerging gold belt in northwestern Quebec with ongoing 100,000 to 120,000m exploration drill program in 2020 and a 33,500-tonne bulk sample and 75,000 m drilling completed in 2019.

Wallbridge is also pursuing additional advanced-stage projects which would add to the Company’s nearterm project pipeline. Wallbridge is also the operator of, and a 20% shareholder in, Loncan Canada Inc., a privately-held company with a large portfolio of nickel, copper, and PGM projects in Ontario’s Sudbury Basin. Kord told Mining Life that Wallbridge is looking for a buyer for the PGM portfolio so it can concentrate on Fenelon.

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