CIM Magazine Dec'07/Jan'08

February/février Dec 2007/Jan 2008 2006 • déc 2007/jan 2008 www.cim.org

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Outlook issue Exploring the potential of 2008

Publications Mail No. 40062547

February/février Dec 2007/Jan 2008 2006 • déc 2007/jan 2008 www.cim.org

Outlook issue Exploring the potential of 2008

Editor-in-chief Heather Ednie hednie@cim.org Section Editor Andrea Nichiporuk anichiporuk@cim.org Technical Editor Joan Tomiuk Publisher CIM

Growing in the new year n unofficial opinion poll was taken of many members of CIM Council, to determine their outlook for the commodity cycle in the coming years.

Overall, the agreement seems to be that our industry will continue to enjoy high times, definitely for two more years, most likely for five more. This poll echoed findings of work done by other organizations, such as MiHR and MAC. At CIM we’re seeing the benefits of this mineral boom, and the strategy is being laid out now to enter a major growth period, to capitalize on the opportunity.

Looking towards next year, there’s a lot going on that will continue the rejuvenation of CIM and will improve our relevancy to the industry and members.

It’s a great time to get involved.

A number of initiatives are underway to meet the growing needs of our industry and its people. A major web improvement project has been launched, and focus group sessions are underway to investigate new ways to serve our members. CIM has been asked to step up on some key issues, such as safety, education and innovation, and provide a venue of knowledge-sharing. The CIM Knowledge Destination project will result in the top online resource for technical knowledge related to minerals and metals, with the wealth of CIM papers — from Bulletin archives, special volumes and proceedings, and the CIM Societies’ publications and proceedings in one searchable engine.

There’s more on its way! The One-CIM strategy will mean all members, be they national or branch members, are part of CIM and its systems, and CIM will be providing services to the branches. And as we address the needs of the industry, a proactive Student Membership Program is under development, to increase student participation in CIM, improve their retention as members and draw new people to the industry.

We’re already at the end of 2007 — my, how time flies! Heading into the new year, make increasing your involvement in the future of CIM a resolution. It’s time to make a difference.

Have a happy holiday season,

A

Heather Ednie Editor-in-chief

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This month’s cover A helicopter hovers over the exploration camp at the New Moon property in British Columbia. Photo courtesy of Paul Wojdak.

Layout and design by Clò Communications.

Copyright©2007. All rights reserved.

ISSN 1718-4177. Publications Mail No. 09786.

Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec.

The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada

4 | CIM Magazine | Vol. 2, No. 8

CONTENTS CIM MAGAZINE | DECEMBER 2007 JANUARY 2008 | DÉCEMBRE 2007 JANVIER 2008

NEWS 8

Outlook is hot for 2008 An interview

12

Shaping the oil sands Heather Kennedy at

with Donato Sferra of Pinetree Capital by D. Sarik

18

the reins as the Alberta government secures the future of the province by D. Zlotnikov Mining Matters A flow-through share program makes it easy to donate by L. Clinton

COLUMNS 59 60 62 63 64 65 66 68 69 70 72 74 75 98

The Supply Side by J. Baird Innovation Page by R. Llewellyn and G. Winkel Student Life by J.-F. Lepage La vie d’étudiant par J.-F. Lepage The Dialogue by D. Rachiele Parlons-en par D. Rachiele MAC Economic Commentary by P. Stothart Engineering Exchange by H. Weldon Eye on Business by C.E. Jodoin Standards by G. Gosson and L.B. Smith Canadians Abroad by C. Hersey Mining Lore by D. Zlotnikov HR Outlook by M. Sturk Voices from Industry by E. Beswick

COAST TO COAST All across Canada we can anticipate an energetic minerals sector for 2008, based on the chart-topping activity in 2007

3221

22 Newfoundland and Labrador | 24 Nova Scotia | 25 New Brunswick 27 Quebec/Québec | 31 Ontario | 34 Manitoba | 38 Saskatchewan | 43 Alberta 46 British Columbia | 50 Yukon | 51 Northwest Territories | 54 Nunavut

CIM NEWS 76 79 80

81 82 83

83 94 95

CIM welcomes new members Northern Gateway Branch event big success La section Thetford Mines recoit Niobec/Thetford Mines Branch hosts Niobec Mining in Canada — online series An interview with Doug Morrison La conference de la section Thetford Mines un grand succès/Thetford Mines branch boasts successful conference Obituaries CIM Council/Conseil de l’ICM CIM national office/Bureau national de l’ICM

IN EVERY ISSUE 4 6 84 96

3043 4862

Editor’s Message President’s Notes/Mot du Président Calendar Professional Directory

❊

99 CIM MEMBERSHIP DIRECTORY/ RÉPERTOIRE DES MEMBRES DE L'ICM Available to CIM Members only Disponible pour les membres de l'ICM seulement

December 2007 / January 2008 | 5

president’s notes A time to share and a time to give thanks As we approach the holiday season, it is a time to reflect on the communities in which we live and how the natural resources sector has contributed to our wellbeing. I had breakfast with Mark Francis, chair of the CIM Winnipeg Branch, in mid-November and we were commenting on the many ways in which the extractive industries have supported charities and community initiatives – not just during the holidays, but throughout the year. Support has come in many ways – from significant employee volunteer efforts, fundraisers, employee donations and matching corporation contributions, just to name a few. We need to take a moment to say thank you to everyone in our organizations who have shared. You have made a difference!

This leads me to one other thought. In order to succeed in our 24/7/52 world, it takes a tremendous amount of time and dedication from our employees, suppliers and contractors to keep our operations running. We need to say thank you to our spouses, significant others and our families for their continued support. We know you put up with a lot as we work to sustain our business and communities.

On behalf of the entire CIM group, I want to wish everyone a very joyful and safe holiday season and the very best in 2008. We value your support!

Jim Popowich CIM President Président de l’ICM

mot du président Un moment pour partager, un moment pour remercier Comme nous approchons de la période des Fêtes, il est temps de réfléchir sur les communautés dans lesquelles nous vivons et à quel point le secteur des ressources naturelles contribue à notre bien-être. À la mi-novembre, j’ai déjeuné avec Marck Francis, président de la section Winnipeg de l’ICM, et nous avons discuté des nombreuses façons dont les industries extractives soutiennent les œuvres de charité et les initiatives communautaires – non seulement durant la période des Fêtes, mais également pendant toute l’année. Le soutien est offert de différentes manières – la participation significative d’employés qui font du bénévolat, les collectes de fonds, les dons des employés et les contributions jumelées des entreprises, pour ne nommer que celles-ci. Nous devons prendre un moment pour remercier tous les membres de nos organismes qui participent. Nous faisons la différence!

Cela m’amène à vous parler d’autre chose. Pour réussir dans notre monde 24 heures par jour, 7 jours par semaine et 52 semaines par année, cela exige beaucoup de temps et la conscience professionnelle de nos employés, de nos fournisseurs et de nos entrepreneurs afin de maintenir nos exploitations en bon état de fonctionnement. Nous devons ainsi remercier nos conjoints, nos proches et nos familles pour leur soutien continu. Vous travaillez souvent dans l’ombre pendant que nous travaillons à soutenir nos entreprises et nos communautés.

Au nom de tout le groupe de l’ICM, je désire souhaiter à chacun de vous une période des Fêtes très joyeuse et sécuritaire, et le meilleur pour l’année 2008.

Nous apprécions votre soutien!

6 | CIM Magazine | Vol. 2, No. 8

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news Outlook is hot for 2008 Where mining, metals and energy are concerned, 2007 has been a very good year. Many commodity prices had major runs, some achieving record highs. Investor interest in the sector remains intense and there is a flurry of speculation about what 2008 may hold.

With significant shifts underway in the global marketplace and within local economies, many are wondering where things can go from here.

To help provide insight as to what may develop across the industry in 2008, CIM spoke with Donato Sferra, vice president, investments, at Pinetree Capital. Pinetree is an investment, financial advisory and merchant banking firm specializing in the small cap market, primarily in the resources sector.

2008 Outlook CIM: At this point in time what is your overall outlook for the resources sector for 2008?

Sferra: Our call and view have not changed over the last five years, from a big picture perspective. We believe that 2008 is going to be more of the same as we saw in 2007, so it’s going to be the continued expansion of this commodity cycle.

CIM: At a macro level, what do you think the key economic factors affecting this cycle will be?

Sferra: There are a few trends that we believe will continue to support the commodity cycle: one being secular global growth. It’s

by Debbie Sarik being powered primarily by Asia and India and we don’t think that’s going to come to an end.

Another factor is, on the supply side there has been a significant underinvestment by major mining companies over the last 10 to 15 years and that’s partly what fueled the rising commodity prices. So we have seen significant increases in demand but because of this underinvestment by mining companies, they haven’t been able to bring produc8 | CIM Magazine | Vol. 2, No. 8

CIM: What role could softness in the U.S. economy play?

Sferra: The U.S. economy is not as important as it once was to the global demand of these commodities. The impact of a slowdown on commodities and base metals in general will be limited if global economic growth continues. We’ve looked at some numbers and one very simple example to prove that point is copper.

Copper is the bell-weather metal for all other metals, and if you look at 1996, the U.S. comprised 21 per cent of copper demand and China was at about 10 per cent. As of last year, China was at 22 per cent, the U.S. was at 13 per cent, and other developing nations grouped in together doubled their demand over that period of time. So the U.S. is still important, over 10 per cent, but is becoming less important, and as long as growth in the U.S. does not slow down severely or for a prolonged period, it won’t have an impact in our opinion.

Donato Sferra

tion of the commodity online fast enough to meet that demand.

CIM: As you mentioned, in 2007 there has been increasing demand from major emerging markets. How do you see this developing in 2008?

Sferra: The growth in Asia, and in particular China and India, is definitely going to continue unabated at very high rates. You have a major paradigm shift, for example in China, where you have an unprecedented number of people moving from an agrarian lifestyle into major industrial centres, and cities are growing exponentially.

The migration of those people requires housing and everything that goes along with building a city. One example is, if you look at the U.S., they have about 20 billion tons of steel in their economy, and they have 300 million people. China only has a couple billion tons in its buildings and they have over one billion people.

China needs to catch up and that demand won’t stop.

CIM: In terms of the five-year outlook that you spoke of, where do you think we are on the growth curve and when is it likely to peak?

Sferra: To see when the peak is going to come, I think you need to talk about the risks. You need to assess the seriousness of the risk and the mitigating factors. I think the three biggest risks are first, a severe and prolonged U.S. recession. To address this, the Fed has come out with a very strong statement — a 50 basis point cut. Also, Ben Bernanke, the Federal Reserve chairman, has commented that they are prepared to do what is necessary to avoid a recession. The second risk is an

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That’s why there’s

news oil crisis. For example the end of the 1960s metals and commodity cycle that occurred in 1974 was caused by an oil crisis. With oil at the mid to high $80s level, we don’t think that’s a problem.

The third risk is increasing interest rates in China. Growth there continues unabated even though the People’s Bank of China has raised rates five times this year and has raised the reserve ratio seven times. The question becomes, can inflation in China get out of hand? Currently, inflation in China is above the government’s target rate but if you exclude food items, it’s around one per cent. So the issue is can the Chinese increase food availability and production, and that’s a whole other cycle.

CIM: In 2007, there have been record highs with some commodities while others have fallen off slightly. What do you think will be hot in 2008?

Sferra: The ones we like are gold, copper, uranium and oil. The last two, which go together, are iron ore and coking coal: raw materials for steel.

CIM: With many commodities already highly priced, can investors look for continued growth in 2008?

Sferra: Our main view is to figure out which commodities are going to remain at elevated prices. As long as the price is elevated, and you have a discovery, it doesn’t matter what the price was last year.

CIM: So rather than focusing on rising prices, investors should consider that as long as prices remain elevated, these commodities can still be interesting in terms of investment potential?

Sferra: Exactly, and they provide investors with the opportunity to make above average returns if they are invested in the right company.

Oil and gas CIM: Oil prices hit record highs in 2007 and were fairly volatile. Do you feel the fundamentals exist to support these highs?

Sferra: We maintain a very positive and bullish outlook for oil and we believe oil

will continue to be at what we consider to be elevated levels. That means anything above $50 per barrel. Oil prices are driven by different factors. The U.S. dollar is one of them and instability in the Middle East, in general, is another. We think that the price will continue to be volatile but remain at elevated levels and for an investor in exploration oil and gas companies, we don’t need $90 per barrel to have a very profitable investment.

CIM: What do you feel the impact locally could be of the increased royalties in Alberta?

Sferra: We think that in these stocks the worst case scenario was pretty much priced in. We still see the junior oil sands as a very attractive space. Even with a change in royalties, it makes future projects less attractive but it doesn’t make them uneconomic. We also believe that the new royalties will force the juniors to identify synergies in their operations and likely drive consolidation in the junior exploration space over the next year or so.

Erratum The cover photo for the November issue was supplied by Mosaic, one of the world’s leading producers of concentrated phosphate and potash crop nutrients. CIM apologizes for inaccurately attributing the photo to Elk Valley Coal. Mosaic is a major producer in Saskatchewan, and so the photo tied-in with that issue’s theme of Mining in Saskatchewan and Manitoba. CIM would like to thank Mosaic for contributing the photo.

10 | CIM Magazine | Vol. 2, No. 8

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news Precious metals CIM: With possible continued weakness in the U.S. dollar it would seem gold prices may continue to rise?

Sferra: We believe there are several factors that will result in continued gold price appreciation or at least strength in gold. Renewed and continued U.S. dollar weakness caused by such issues as the sub-prime market, potential softening of the U.S. economy and Fed rate cuts is one. The other main factor will be strong demand in Asia and India. On the supply side of gold, we believe the fundamentals also support higher prices.

New mines are taking longer to come online. There’s permitting issues, environmental activism and political risk.

CIM: What about silver?

Sferra: Silver tracks gold very closely.

Historically, silver has lagged gold on the down legs and it has outperformed gold on the up legs. What we’ve seen in this gold rally is that silver has actually lagged gold so we’re very bullish on it. If you believe in gold, you’ve got to believe in silver.

Uranium CIM: The peak in June 2007 of the spot price for uranium and its subsequent decline has been a hot topic in the media. What are your thoughts on this?

Sferra: Our view is that investors have been focusing too much on the spot uranium price. It’s very important to realize that the spot market is a very small portion of the uranium market and is not representative of it, in my opinion. The spot market represents only eight per cent of the total volume transacted year to date. Last year at this time it was 14 per cent, so not only is it small, it’s becoming a less relevant portion of the overall market. The real market, in my opinion, is the term market and that is what investors should focus on.

CIM: What is your outlook for the longterm market?

Sferra: We really like uranium. Again, you have significant economic growth in China, India and other

developing Asian countries.

Economic growth requires things like electricity. Even in North America, the Ontario government is talking about potentially building new nuclear reactors. There is a severe shortage globally of electrical power.

Fossil fuels are not the preferred alternative anymore because of the environmental issues that they’ve caused, and uranium is seen as the cleaner fuel. That’s one part of the demand equation. The other part is countries like Russia, China and India are all talking about building up strategic uranium reserves. They haven’t even started this yet and we’re talking about significant demand that would be required for those three countries alone. If you look at the supply side, in most parts of the world it takes a decade to bring uranium mines into production and new production coming online, such as Cigar Lake, is ramping up slower than expected.

duction. There are very few large copper projects in the development pipeline and the ones that are around are facing high levels of political risk and permitting issues.

CIM: Are there any other interesting stories to follow with base metals?

Sferra: We like nickel as well. It has had a very tough go in the last six months, being one of the worst performing base metals. One of the reasons for the pullback was that when nickel peaked at $24 to $25, steel manufacturers started to use pig iron as an alternative input to their production, which is lower grade but still does the job. We now think that the correction is overdone. Steel companies are starting to replenish their inventories and Chinese stainless steel producers are starting to buy nickel again instead of pig iron. We think nickel could be the undiscovered 2008 story. CIM

Base metals CIM: Do you foresee base metals maintaining their value in 2008?

Sferra: The macro picture is the same.

We remain very bullish on copper.

There are a number of reasons that copper will remain elevated if not continue to increase.

The big part of the copper story is the supply side. One factor has been continued strikes at some of the biggest copper mines in the world, in particular in South America.

Also, there has been underinvestment in new copper mines and proDecember 2007 / January 2008 | 11

news Shaping the oil sands As the crude oil prices continue their climb towards the US$100 mark, the oil sands of Alberta continue to grow in appeal. The number of companies has grown from two back in 1996 to 17 today, and more projects are in the planning and permitting stages.

We needed someone to look for the interdependencies and say, ‘You know what, you’re doing this over here, and you over there are doing the same thing at the same time so how can we make our lives better and have a better outcome?’ A lot of people in the government are doing good work to lead towards a sustainable oil sands industry. It’s a question of coordinating, talking to people and enabling them and pulling it together.”

Kennedy’s professional experience is not limited to her work with Suncor. In her 27 years as a metallurgical engineer, she has worked at the Kidd Creek Mine in northern Ontario, the Fording

Heather Kennedy

is an ongoing effort to create a common vision for the future of the municipality, of which Fort McMurray is the largest community.

Kennedy’s experience in bringing together diverse stakeholders’ agendas and concerns may well prove invaluable in the next two years.

“What I think is the most interesting is how interconnected everything is,” she said. “You can’t build a road without thinking where the neighbourhood will be. And you can’t build a neighbourhood without thinking where the development is and thus where the workers will be.” Looking at the interrelations, the diverse perspectives, and developing future sustainable development frameworks accordingly is where, Kennedy said, the greatest rewards will come from. But, “that’s also going to be the most challenging part.”

To get a good understanding of the interconnections, Kennedy is in the process of hiring a team with as much diverse experience as possible. “I hope to have a team that includes backgrounds in economics, energy, aboriginal issues, environment and project management.”

To fill any gaps in her team’s experience, Kennedy will first look to the other government groups she will be working with.

“We will already be on the phone daily with people from Municipal Affairs and Housing, or Health or Infrastructure,” she said, “so we will look for internal resources and hire consultants to supplement if necessary.”

But all the diverse backgrounds won’t replace the first-hand experience of going up to the sites, which Kennedy recognizes. “We intend to have staff in the regions, talking to the stakeholders on a regular basis,” she said. “Otherwise we can’t do our jobs.”

What I think is the most interesting is how interconnected

Such rapid growth has, not surprisingly, put a strain on the p r o v i n c e ’s ability to keep up. The solution, according to the Alberta government, was to create a secretariat and task it with creating a plan for continued sustainable development of the region. The person in charge of this newborn group — at least for the first two years of its existence — is Heather Kennedy, a metallurgical engineer and most recently the vice president of operations excellence at Suncor.

Kennedy had only been in her new position for three

by Dan Zlotnikov weeks at the time of the interview, but had big plans for the future. The secretariat, she explained, is meant to coordinate the ongoing efforts of a multitude of groups, ranging from the oil companies to local residents to environmental groups and, of course, the various government departments.

“We have all of sorts of divisions working away,” she said, “and where we can help is to pull it all together.

12 | CIM Magazine | Vol. 2, No. 8

everything is

Coal Trust in British Columbia, moving to Suncor in 1996 to be employed as a process engineer. From that position, Kennedy moved first to project management, and then operations. For the past four years, Kennedy has been working in human resources and stakeholder relations. She had only held her vice president of operations excellence position for six months before going on secondment to the secretariat.

Kennedy’s relevant experience is not limited to her work. In the mining world, she has served as director of the Athabasca Regional Issues Working Group and was the chair of the Alberta Resource Chamber’s Aboriginal Committee. Kennedy has also sat on a number of boards, most notably the board for the United Way, Boyle Street Community Centre, Science Alberta and that of the Future Forward initiative put together by the mayor of the Wood Buffalo municipality. The latter

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news Kennedy’s new position comes with the title of assistant deputy minister, and the secretariat is considered a part of the Treasury Board, a ministry not directly involved with the oil sands operations. The Treasury Board has two ministers, the president of the

Treasury Board and the Associate Minister for Capital Planning, who provide support at the cabinet level.

What this means, Kennedy explained, is that the secretariat will focus on advising, rather than dictating, how things should be done. That said,

“sometimes you have to bring people together in a room with a whiteboard, and see what you can get done.”

Coordination and overall vision may be the main focus of the job, but Kennedy added that sometimes an issue grabs you, and you just have to roll up your sleeves and get involved.

The advisory role of the secretariat is reflected in its budget — $1 million to cover everything from salaries to consultants’ fees to travel. This is, Kennedy explained, because any major expenditures, like capital costs or new projects, are expected to come out of other departments’ budgets.

Of course, like many government decisions, choosing Kennedy for the position involved some controversy.

The main concern raised by the critics (Cont.)

Achievements Topping the list For the fourth time, Sue Lee, senior vice president of human resources and communications, Suncor, was named to Canada’s Most Powerful Women: Top 100 list. Eira Thomas, member of Suncor’s board of directors and CEO and president of Stornoway Diamond Corporation, also made the list.

Recognized by Maclean’s Jacques Whitford Ltd. was named one of Canada’s Top 100 Employers by Maclean’s Magazine for a second year in a row. Companies making the list are chosen based on their progressive and forward-thinking programs regarding, among other things, health benefits, employee communications, and training and skills development.

Sustainable options Suncor Energy received an Outstanding Business Achievement Award from the Ontario Chamber of Commerce. The company was recognized for its commitment to providing Ontario with sustainable energy options.

14 | CIM Magazine | Vol. 2, No. 8

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news was the fact that while working for the Alberta government, Kennedy’s salary will still be paid by Suncor, who will then be reimbursed by the province.

But the reasons for the arrangement are rather mundane, not very suspect, and far from sinister.

“I’m 49,” Kennedy said, “and while I want to keep working, I have to think about my pension.” With the two-year posting to the secretariat being treated as a secondment from Suncor, Kennedy will retain her seniority at the company and have an uninterrupted pension and a position to come back to. The government, on the other hand, will most likely want someone else to head the secretariat at the end of the twoyear period.

“The last part in the terms of reference is to evaluate the success of the secretariat at the end of the term,” said Kennedy. “If we do our job well, the next step will require a different skill set. We’ll have to wait and see what this process needs by the time 2009 rolls around.”

Kennedy said she is not feeling pressured and that “there are mechanisms in place to ensure there are no conflicts of interest.” These include, for example, a restriction on her trading in Suncor stock while she heads the secretariat. There is pressure but it comes from the desire to get it right for the oil sands regions and the province and to add value to what’s already taking place and to create the right climate for progress.

But Kennedy feels that a more significant point is that the direction of oil sands development has already been decided on, before she ever took the new post.

“The decisions about sustainable long-term growth have been established by the government. These decisions were based on recommendations from multi-stakeholder and aboriginal groups and the Radke report.” Kennedy’s group is working very closely with Alberta Environment’s Strategic Oil Sands Division, who is taking the lead on the environmental management 16 | CIM Magazine | Vol. 2, No. 8

framework of the future.

Coincidentally, the Radke report also included a recommendation that the secretariat be created.

One of the first issues Kennedy is hoping to address is that of land release. Fort McMurray, the town most affected by the oil sands expansion, has been growing at a rate of nine per cent per year, she explained, which is putting a great deal of strain on the community’s resources. The growth is also not likely to slow, as more industry projects seek qualified labour.

Is the current rate of growth sustainable?

“With the right cooperation from the municipality, the government and the industry,” said Kennedy, “the answer is yes and that’s the challenge, as it hasn’t been that way to date.”

One area that Kennedy is hoping to address is the use of aboriginal skills in the region.

“The oil sands industry has done a lot to hire aboriginal people and work with aboriginal businesses but still has a lot of places where they could be hired. Optimizing that is key for the labour shortage.” Coupled with the fact that, as Kennedy points out, aboriginal people comprise the fastest growing segment of the working-age Canadian population, the industry and the province would be wise to pay attention.

Her goal, Kennedy said, is not one specific challenge or issue, but rather the industry as a whole. “It’s about creating an industry that has a really special legacy to it, more than about specific issues. What do we want to say about the oil sands industry when it’s all said and done is really the question I’d like to answer in the right way.”

For her part towards achieving that goal, Kennedy is trying to get the message out. “The secretariat is there, it’s going to be taking the good work being done today, finding the gaps and working to fill them and create a sustainable industry. We have some serious deliverables and intend to deliver on them.” CIM

Moving on up Brian Thurston recently joined Raytec Metals’ board of directors. He was project manager for Pacific Ridge Exploration.

Colin Grant is Dumont Nickel’s new CFO. He has 25 years’ experience as a financial executive to junior public companies and large corporations.

Former Assistant Deputy Minister of Mines for Ontario John Gammon was appointed to Probe Mines’ board of directors.

Reactive NanoTechnologies welcomed Mike O’Neil as vice president, sales. He brings 30 years’ sales experience to the job.

Denny Hop is the latest addition to Pacific North West Capital’s board of directors. He has about 25 years’ experience in financial and estate planning.

Steve Manz and David Knight have joined Freegold Ventures’ board of directors. Manz is Freegold’s president and CEO. Knight is a law partner at Macleod Dixon LLP. Canadian Zinc appointed Martin Rip as the company’s CFO. Rip is a chartered accountant and former vice president, finance, and CFO of Pine Valley Mining.

John Sferrazza joined AMEC’s mining sector and the Earth and Environmental division as senior biologist. He specializes in aquatic environmental effects monitoring.

Kevin Ramsay joined Golden Goose Resources’ board of directors, as well as the board’s audit committee.

Jordann Nettles was appointed manager, investor relations, for West Timmins Mining. Her focus will be on shareholder relations and corporate communications.

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news Mining Matters Flow-through mining shares make giving easy The PDAC Mining Matters program is a non-profit charitable organization created by the Prospectors and Developers Association of Canada’s education committee over a decade ago. We should all thank these dedicated individuals for identifying the need to educate young Canadians about the vital role that mining plays in their lives.

Since Mining Matters was founded, approximately 400,000 elementary students have participated in its award-winning study units, and an exciting new program, Discovering Diamonds, is informing secondary school students of developments that have made our country one of the largest diamond producers in the world. Mining Matters continually strives to update, enhance and expand its programs and resources.

To achieve its mission objectives, the program relies on contributions from corporations and individuals involved in the mining industry.

Edward G. Thompson, past president of PDAC, has been instrumental in promoting the donation of flowthrough shares as a meaningful way for members of the mining industry to support the program’s charitable mission and realize signifiby Laura Clinton cant tax benefits.

“Donating flow-through mining shares is a particularly attractive tax strategy for the investor. The net purchasing cost is considerably lessened between the original tax write-off and further deductions resulting from a charitable receipt,” said Thompson.

The elimination of capital gains on stocks, bonds and mutual funds means that a contribution to Mining Matters will result in a tax receipt

equal to the fair market value of your gift. Rather than being subject to the 50 per cent capital gains tax payable on shares sold during your lifetime, accrued capital gains on donated

Since Mining Matters’ flow-through share program was established earlier this year, several prominent industry members have joined Thompson in donating shares to the organization.

Mining Matters is deeply indebted to the following for their generous donations: Edward G. Thompson, past president, PDAC; James Gill, president and CEO, Aur Resources Incorporated; Donald McInnes, CEO and vice chairman, Plutonic Power Corporation, and president, Blackstone Ventures Incorporated; and Robert Schafer, vice president, business development, Hunter Dickinson Incorporated.

“These gifts greatly enhance our ability to deliver mining education programs,” said Laura Clinton, project coordinator of Mining Matters.

To learn more about donating shares, please contact Durham Sims, Mining Matters’ investment advisor at RBC Dominion Securities. CIM

Since Mining Matters was founded,

approximately

18 | CIM Magazine | Vol. 2, No. 8

400,000

elementary students have participated shares are exempt from taxes. You will be able to use the entire amount of your tax credit against other sources of income. In effect, the tax benefit arising from your gift is the same as if your donated securities were cash.

Tim Cestnick on flow-through mining shares Check the math — it’s quite amazing. Suppose you invest $10,000 in flow-through shares. You’ll save approximately $4,600 in taxes from the $10,000 deduction you’ll be entitled to (assuming a marginal tax rate of 46 per cent). If you donate those shares to charity after two or three years, when the development is completed, and we assume the shares are still worth $10,000, you’ll pay no tax on the capital gain (the gain results from your adjusted cost base being zero).

You’ll also be entitled to a donation tax credit for the $10,000

value of the shares, which will save approximately $4,600 in tax. So; you paid $10,000 for the shares, got $4,600 back in tax savings from the deduction and $4,600 from the donation tax credit, leaving a net out-of-pocket cost of just $800.

That is, a $10,000 donation to charity will cost you just $800.

That’s what I call charitable arbitrage.

Text reproduced with permission from author Tim Cestnick, managing director of WaterStreet Family Wealth Counsel.

news Thanks to our contributors As a charitable organization, Mining Matters greatly appreciates the financial and in-kind contributions from the mineral and aggregate industry, individuals, foundations, corporations and

Major Contributors Diamond ($25,000 plus) Aur Resources Incorporated James Gill Natural Sciences and Engineering Research Council of Canada Ontario Ministry of Research and Innovation Prospectors and Developers Association of Canada Edward Thompson Platinum ($10,000 to $24,999) Barrick Gold Corporation Robert Schafer Teck Cominco Limited The Fairmont Royal York Gold ($2,000 to $9,999) Aber Diamond Corporation Atlas Copco Exploration Products BHP Billiton Diamonds Incorporated Boart Longyear Limited Breakwater Resources Limited Canadian Geological Foundation Canadian Mining and Metallurgical Foundation Caracle Creek International Consulting (CCIC Canada) Incorporated CHF Investor Relations CVRD Inco Limited Donald McInnes De Beers Canada Incorporated Detour Gold Corporation EdGEO National Earth Science Workshop Program Excellon Resources Incorporated Exploration Link Limited FNX Mining Company Inc. Fogler, Rubinoff LLP Fronteer Development Group Incorporated Gemcom Software International Incorporated Goldcrest Resources Limited Hatch Limited IAMGOLD Corporation IBK Capital Corporation Inmet Mining Corporation Mining Industry Human Resources Council North American Palladium Limited Paradigm Capital Incorporated Ronald Netolitzky The Northern Miner Ontario Stone, Sand and Gravel Association Royal Nickel Corporation

SGS Minerals Services C.J. Stafford and Associates Thundermin Resources Incorporated Trelawney Resources Incorporated Tri Origin Exploration Unor Incorporated Vaaldiam Resources Limited Wardrop Engineering Incorporated Watts, Griffis and McOuat (WGM) Limited Silver ($500 to $1,999) Agnico-Eagle Mines Limited Alexandria Minerals Corporation Avalon Ventures Limited Bitterroot Resources Limited CapEx Management Limited Lionshare Marketing Northern Prospectors Association P.J. Mars Investments Limited Peregrine Diamonds Limited Queenston Mining Incorporated Rainy River Resources Limited St. Lawrence Cement Incorporated Stornoway Diamond Corporation Tahera Diamond Corporation Thompson Creek Metals Company Incorporated War Eagle Mining Company Incorporated Xstrata Copper Xstrata Nickel Xstrata Zinc Copper (up to $499) Alberta Star Development Corporation Buhlmann and Associates Incorporated Carman Construction Incorporated Cowan Minerals Limited Endeavour Silver Corporation Geologiske Tjenester AS Hawkeye Gold and Diamond Incorporated Mexivada Mining Corporation Outotec (Canada) Ltd. Piper Capital Incorporated Renouveau Exploration Incorporated Solomon Resources Limited Steed and Evans Limited Terraquest Limited Virginia Mines Incorporated Willow-Q Explorations Limited Women’s Association of the Mining Industry of Canada Foundation

government. These generous donations make possible all aspects of our program development and implementation.

The following is a list of our contributors.

In-kind Contributors Aird and Berlis LLP Ashton Mining of Canada Incorporated BDO Dunwoody LLP Beachville Lime Limited Beaver Valley Stone Limited Belmont Rose Granite Corporation BHP Billiton Diamonds Incorporated Boart Longyear Limited BRP International CGC Incorporated Canada Talc Limited Canadian Institute of Mining, Metallurgy and Petroleum Caterpillar Incorporated Cochise College CVRD Inco Limited David Kresz De Beers Canada Incorporated Diavik Diamond Mines Incorporated Dufferin Aggregates Exploration Link Extender Minerals Fabre Minerals Fowler Construction Company Limited Fugro Airborne Surveys Limited Government of Nunavut, Department of Economic Development and Transportation Geoscience Laboratories Hanson Brick Limited Heather and Little Limited Incorporated Research Institutions for Seismology (IRIS) Consortium Indian and Northern Affairs Canada Intierra Limited Iron Ore Company of Canada KIM Dynamics Robert Lavinsky Luzenac Incorporated Mining Association of Canada Mining Industry Human Resources (MiHR) Council Mobile Metal Ion (MMI) Technology Natural Resources Canada Ontario Mining Association Ontario Ministry of Northern Development and Mines, Mines and Minerals Division (Kirkland Lake, Sault Ste. Marie, South Porcupine, Sudbury, Thunder Bay, Timmins, Toronto, and Tweed) Ontario Stone, Sand and Gravel

Association Rice & McHarg Quarries Limited Senator Stone Supply of Canada Limited Teck Cominco Limited The Canadian Salt Company Limited Unimin Canada Limited University of Waterloo, Department of Earth Sciences Upper Canada Stone Company Limited R. Weller Xstrata, Kidd Creek Mine

Individual Contributors Diamond ($500 plus) Stuart Averill Michael Bourassa David Davidson David Elliott Ron Gagel Joe Hinzer William Mercer Mary Ann Mihychuk Gregory New Charles O’Sullivan William Pearson Gold ($200 to $499) Rupert Allan Donald Bubar Garth Burton Nell Dragovan Chris Hesse Michael Hobart Brent Jellicoe Peter Karelse Gerald Kirchner John MacCance Amy Nishio John Paterson Ian Pirie James Pirie Warren Pratt Hank Reimer Terence Schorn Paul Severin Peter Smith Howard Stockford Stephen Wallace Robert Whittall Stewart Winter Silver ($51 to $199) Nean Allman Jon Baird Diane Baldwin Michael Barnes Lionel Bonhomme Philip Bousquet Lorne Burden Scott Burgess Christina Clark

Lloyd Clark Laura Clinton Gerald Cooper Martin Eastwood Patrick Elliott Ian Forrest Oliver Frank Jack Garnett Richard Garnett John Goode Michael Gray Frank Grieco John Hainey Brian Hester Anthony Hitchins Michael Hoffman Robert Hornal Charles Jefferson Dennis Jones Paul Jones Lauri Kangas Louise Kennedy Leni Keough John Kiernan Raymond Lashbrook Patrick Lengyel Karen Liu Keith Lofvendahl Glen MacDonald Brenda MacMurray Roger Macqueen Deborah McCombe Bruce McKnight Andrew Mikitchook Igor Mousasticoshvily Mercedes Ohayon Amy Nishio David Palmer Donald Phipps Sari Porter Barry Price John Prochnau Konrad Radacz Philip Reeves Dean Rogers Laura Scaife Jean-Pierre Schumacher Desh Sikka Charles Smith David Smith Kerry Smith Otto Snel Hugh Snyder Bruce Staines Harold Steacy John Ternowesky Alex Thomson Robert Valliant Christy Vodden Dennis Waddington Christopher Wagg James Walker John White

Prospectors and Developers Association of Canada Mining Matters’ fiscal year operates from July 1, 2006, to June 30, 2007.

List of contributors last updated September 25, 2007. Charitable Registration Number 88775 6435 RR0001.

December 2007 / January 2008 | 19

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Next year promises major excitement for the mining and exploration industries,as the industries’ vibrancy of 2007 will continue unabated. As commodity strength continues, Canadians from coast to coast can anticipate an energetic sector of development.

pounds of copper, 76 million pounds of zinc, 574,000 ounces of silver and 5,000 ounces of gold annually over the eight-year mine life.

Annual employment at the mine is anticipated to average 192 people.

Located near Glenwood, the Beaver Brook antimony mine was opened by Roycefield Resources Ltd. in 1997. The mine operated for Information sourced from the Department of Mines and Energy, Natural Resources, several months before increased low-cost of the Government of Newfoundland and Labrador production from China caused a significant drop in the price of antimony, forcing Roycefield to close the mine in early 1998.

Antimony prices have recovered substantially and The mining industry in Newfoundland and Labrador produces more than a dozen mineral commodities ranging from aggregates used in road construction the current owner, Beaver Brook Antimony Mines Inc., plans to reopen the mine to iron used in structural steel, limestone used in agriculture, nickel used to later in 2007. Dewatering of the underground workings was completed in produce stainless steel, granite used in counter tops, and copper wire for use in August, and underground site rehabilitation is ongoing.

Continental Stone Limited (CSL) intends to establish a granite quarry north electrical generation and distribution. of Belloram on the province’s south coast. The project has successfully Since 2004 there has been an increase of about 490 per cent in the value completed a provincial environmental assessment and is currently undergoing of the province’s mineral shipments with the 2007 forecast at approximately $3.97 billion, up from $673 million in 2004. This increase is a federal environmental review.

Crew Gold Canada Ltd. acquired the Nugget Pond processing facility on the due to opening of the Voisey’s Bay and Duck Pond mines and a broad based Baie Verte Peninsula from New Island Resources in October 2006. The company increase in prices and local production of copper, zinc, nickel and iron ore saw this as a long-term solution to processing ore from their Nalunaq Gold over this time period.

Direct employment in the Newfoundland and Labrador mining industry is Mine in south-western Greenland, which it operates through its subsidiary projected to be 3,795 person years in 2007, an increase of 115 over the 2006 company, Nalunaq Gold Mines. Ore shipments began in February, and in April level. The level of exploration investment in the province has increased the company re-commissioned the Nugget Pond mill and poured the first gold dramatically as well. In 2006, about $101 million was spent in the province on bar from Nalunaq ore. Shipments are arriving through a temporary port facility mineral exploration and deposit appraisal; this total was expected to increase at Goodyear’s Cove until a site for a permanent facility is chosen.

The Hutton Beaches are located in an uninhabited area about 360 to $160 million in 2007. kilometres north of Nain. Freeport Resources Inc.’s Hutton Beaches project Mining and development consists of several high-grade heavy mineral sand beaches, composed largely Anaconda Mining Inc. (previously named Anaconda Gold) is developing the of garnet. Freeport has assembled a technical team to assist with marketing, Pine Cove Gold deposit outside Baie Verte. During 2005, in an effort to reduce product development, pilot plant design, transportation and site logistics as the capital cost, Anaconda redesigned its mine plan from a 1,000 tonne per day well as environmental and site monitoring. Efforts by the technical team will operation to a 350 to 500 tonne per day operation. This reduction in mill form the foundation of a full scale feasibility study on the project. throughput would also extend the mine life from 6 to 15 years. The Pine Cove Galen Gypsum started mining its Coal Brook gypsum deposit in the St. gold deposit hosts probable reserves of 2,332,676 tonnes grading 2.76 grams George’s Bay area in 1999. Galen has shut down its mining operation as a result per tonne of gold for 207,000 ounces of gold. Inferred resources total 66,700 of Lafarge’s decision on July 10,2007,to close the Corner Brook plant.The future tonnes grading 2.43 grams per tonne of gold for 5,200 ounces of gold. of the Coal Brook mine will depend on Galen’s ability to develop export markets Groundbreaking at the site took place early in July, with plans for a fourth for its gypsum and whether or not a new owner can be found for the wallboard quarter start to mining operations at the site. plant at Corner Brook.

In 2006, Atlantic Barite Limited reactivated the Buchans barite plant, which Hi-Point Industries (1991) Ltd.is a peat moss processing company and is the operated in the 1980s to produce barite from the tailings of the former base original producer of the oil absorbent “Oclansorb.” The company has developed metal mine. The plant has the capacity to produce approximately 15,000 to its Island Pond peat bog near the Gander Bay highway for the production of 20,000 tonnes of barite per year, with an expected mine life of up to 20 years. horticultural peat.

Located at Lower Cove on the Port au Port Peninsula, Atlantic Minerals Hurley Slate Works Company Incorporated ships roofing slate to Limited operates limestone and dolomite quarries, a modern two million international markets and flagstone to local markets. The company’s slate tonnes per year processing plant and deepwater ship loading facilities. Total quarry is located at Nut Cove in Smith Sound, Trinity Bay. shipments of limestone and dolomite from Lower Cove are forecast to increase The Iron Ore Company of Canada (IOC) commenced producing iron ore from about 1.6 million tonnes in 2006 to 1.8 million tonnes in 2007. from its Carol Lake (Labrador West) project in 1962. Annual mine production The Duck Pond mine is located approximately 30 kilometres south of the at the open pit operation is in the 35 to 38 million tonne range at an average former Buchans mine in central Newfoundland. The deposit has proven grade of approximately 40% total iron. Annual production capacity is 17 reserves of 4.1 million tonnes at an average grade of 3.3% copper, 5.7% zinc, 59 million tonnes of concentrate of which approximately 13 million tonnes are grams per tonne silver and 0.9 grams per tonne of gold. Production started in pelletized. IOC’s shipment forecast for 2007 was revised down from 17.6 January 2007. The mine is expected to produce approximately 41 million million tonnes to 13.8 million tonnes; this reflects the impact of the strike at

East coast mining steps up Mineral development continues in Newfoundland and Labrador

22 | CIM Magazine | Vol. 2, No. 8

the minesite which lasted approximately two months. A $60 million capital expenditure was approved to expand production capacity, increasing concentrate production capacity to 18.4 million tonnes by mid-2008, and a feasibility study will assess further expansion to 21 million tonnes annual capacity. IOC also mines its own dolomite for making fluxed pellets in Labrador West; 2007 shipments are forecasted to be 146,000 tonnes. The company plans to commence mining the Plateau dolomite quarry, estimated to produce 200,000 tonnes per year over the 20 year mine life, in late 2007 or early 2008.

TUC, a subsidiary of the Labrador Inuit Development Corporation, has been quarrying anorthosite (Labradorite) at Ten Mile Bay near Nain since 1992.

Production for 2007 is anticipated to total about 1,000 cubic metres, an increase of 80 per cent from the 2006 level.

Newfoundland Pyrophyllite operates the pyrophyllite mine in Manuels, Conception Bay as a subsidiary company of Trinity Resources and Energy Ltd. With known reserves, the processing facility at Manuels can dry grind and air classify various grades of pyrophyllite powder which is used as industrial filler in paints and ceramics.

Peat Resources Limited holds exploration licenses on over 130,000 hectares of peat lands in several areas of Newfoundland. Initial resource evaluation of peat lands in the Stephenville–St. George’s area has defined over 40 million cubic metres of fuel-grade peat. Field work is ongoing on other high-priority peat lands in central Newfoundland. Peat Resources is building a small-scale production facility in Stephenville. When fully operational in early 2008, the facility will produce peat fuel pellets for combustion trials in power generation and industrial applications in both Ontario and Newfoundland and Labrador.

Shabogamo Mining and Exploration Limited started mining its Roy’s Knob silica deposit near Labrador City in October 1999. Shipments in 2007 are forecasted to be 63,000 tonnes.

In 2005, Central Holdings Inc. purchased several mining leases formerly held by International Granite. The leases overlay black gabbro deposits in the Mount Peyton area of central Newfoundland. The purchase included a stoneprocessing plant located at Jumpers Brook, near Bishop’s Falls. The operating company, Terra Nova Granite Inc., currently supplies its plant with stone from inventory. Terra Nova Granite is focusing on the production of monuments, countertops and architectural landscaping products for domestic markets.

Voisey’s Bay Nickel Company Ltd. began mining the Ovoid nickel, copper and cobalt deposit during September 2005 and continues to do so today. VBNC has committed to constructing a commercial nickel processing plant at Long Harbour. The first option is a hydromet plant, however, if this does not prove technically or economically feasible, a matte plant will be constructed. The plant will have a capacity to produce 50,000 tonnes of finished nickel annually as well as associated copper and cobalt products. VBNC is currently working on the feasibility study for the plant and is expected to release the Environmental Impact Statement soon. The company has stated that its goal is to make a decision and inform government by June 2008. Construction of the plant will occur between 2009 to 2011.

Wabush Mines commenced mining iron ore from the Scully Mine in Labrador in 1965 and currently operates a mine and concentrating plant at Wabush and a pellet plant and shipping facilities in Point Noire, Quebec. In 2007, Wabush Mines is forecasting shipments of approximately five million tonnes of product and will employ a workforce at the Scully Mine of 537 people. L

December 2007 / January 2008 | 23

Success stories from the Maritimes Mining in Nova Scotia 2007

by Paul Smith, liaison geologist, Geological Services Division, Nova Scotia Department of Natural Resources Today, the Nova Scotia mining industry employs more than 5,300 skilled workers at one of the highest average salaries in the province (more than $60,000 per year). Mining contributes more than $400 million to the GDP and supplies essential raw materials and manufactured products, which contribute to the sustainable social and economic fabric of the province in a communitybased, environmentally responsible manner. According to the Bureau of National Statistics, mining can also boast one of the lowest injury rates of all industries in the province, due to its rigorous training programs. Thanks to its rich and diverse mineral and energy resources, Nova Scotia is uniquely positioned to achieve economic self-sufficiency.

Mining success stories Success in the mining industry can be exemplified by Nova Scotia’s current mines. For example, the Sifto Canada Inc. mine in Napean has an annual domestic salt production of more than 100,000 tonnes and the Canadian Salt Company Ltd. mine in Pugwash has an annual de-icing salt production of one million tonnes. Another recent success story is that of MacLeod Resources Ltd. and its unique red marble quarry at Kennedy’s Big Brook in Cape Breton; annual production at this quarry exceeds 35,000 tonnes of red marble, which is destined for both local and export markets under the label “Canada’s Marble.”

Highly successful and community conscious gypsum quarries in Nova Scotia are operated by National Gypsum (Canada) Ltd. at East Milford, by Fundy Gypsum Company at Miller Creek and Wentworth, by Georgia-Pacific Canada Inc. at Melford and Sugar Camp and by Little Narrows Gypsum Company at Little Narrows. The total annual production from these operations is nearly 10 million tonnes of gypsum.

Other success stories abound. For example, Shaw Resources is a diversified company that runs several successful resource industries, including a silica sand operation at West Indian Road. In addition, limestone (a critical resource for cement, coal combustion and agriculture) is produced at several quarries, including production of approximately 500,000 tonnes from Lafarge Canada Inc. at Brookfield, 150,000 tonnes from the Nova Scotia Power Inc. at the Glen Morrison quarry and 25,000 tonnes from Mosher Limestone Company Ltd. at the Upper Musquodoboit/Hutchinson Settlement quarries. All of these operations include long-term, state-of-the-art reclamation projects that produce highly successful eco-systems.

When it comes to coal mining in Nova Scotia, success stories include the Pioneer Coal Ltd. mine in Stellarton, which has an annual production of nearly 400,000 tonnes, and the Thorburn Mining Ltd. mine in Coalburn, where progressive mining accounts for 60,000 tonnes of coal production per year. On a smaller scale, there is the 3061831 Nova Scotia Ltd.’s Greenhills Development coal project in Florence.When looked at as a whole, a consistent benefit of these 24 | CIM Magazine | Vol. 2, No. 8

successful coal mine operations is the final reclamation and rehabilitation of sites that have been highly disturbed by former mining operations, as well as the return of these lands to respective communities for multiple uses.

The most recent success story to emerge in Nova Scotia is the return to metal production in the province.Acadian Mining Corp., through its whollyowned subsidiary ScoZinc Ltd., has commenced zinc-lead production at its Scotia Mine and annual production revenues will be approximately $70 million. Zinc and lead concentrates are currently shipped from both Halifax and Ship Harbour to Switzerland. The company anticipates five years of open-pit operation, followed by two to three years of underground mining.

Acadian Mining also hopes to develop additional resources in the area in order to extend the life of the operation.

Challenges To say that mining is alive and well in Nova Scotia is an understatement.

However, there is a growing gap between the expectations of consumers and their resource requirements.The province’s future prosperity and self-sufficiency in resource commodities (such as aggregates, dimension stone, marble, cement, gypsum, salt, sand, gravel and coal) continue to be threatened by a “not in my backyard” mentality. Citizens demand access to common products (such as wallboard, concrete, construction materials, electronics, high speed internet, computers, phones, automobiles, airplanes, highways and housing), but resist local development of the resources required to make them.The mineral industry argues that a slow and costly regulatory process, not applicable to other industries, is having a detrimental effect on economic viability. Despite the unbalanced regulatory burden placed on mining companies by multiple levels of government, the industry embraces sound environmental stewardship. The issues of costly time delays and loss of mineral resources through policies that restrict access to land remain the largest challenges.

The pivotal role of mining in the establishment of economic independence and sustainability for the province has been either forgotten or ignored by some.Today, mining is a necessity for human existence and virtually all mining companies have become more environmentally and socially conscious than at any other time in history. World-class reclamation projects are now a common industry practice and are a testament to benchmarking efforts not seen in other resource sectors.

The future Commodity prices and the demand for metals and other mineral resources all over the globe have never been higher. Nova Scotia has a wealth of mineral products and changing technology continues to result in higher efficiencies of mineral recovery and productivity. As companies operate in the current social environment of responsible mining and community involvement, new projects coming on-stream, as well as those on the drawing board or in the early stages of development, should increasingly find it easier to acquire regulatory approvals in a timely fashion. New projects, such as the Touquoy gold deposit and the Donkin coal resource block, are leading the way in educating the public about how responsible the mining industry has become. The potential for additional gold mines along the Eastern Shore is substantial,as is the outlook for one or more base metal mines and a potentially significant graphite producer on Cape Breton Island. Add to this the potential for several new aggregate quarries and a prospective limestone operation, and it is possible to predict that the province’s mining-based GDP might double or triple in the near future. This kind of growth results in economic benefits stemming from ‘new’ money that is generated by a sustainable mining and mineral resource sector. L

have been delivered to the Xstrata smelter in Belledune. Blue Note has also developed a three-year exploration plan geared towards regional exploration in the Bathurst Camp that includes a comprehensive geophysical survey over the Caribou and Restigouche properties, as well as the nearby Armstrong, McMaster and Orvan Brook properties.

Potash Corporation of Saskatchewan Inc. announced plans for a new two million tonne per year potash mine in Sussex, New Brunswick. The construction project will cost US$1.6 billion, take four years to complete, generate the equivalent of 2,500 person-years of employment and create 140 new full-time positions.

Adex Mining Inc.plans a minimum of 5,000 metres of drilling within the Fire Tower, North and Deep Tin zones on its Mount Pleasant Mine property in southwestern New Brunswick. The drilling program will be carried out in conjunction with the general reactivation and upgrading of the infrastructure at the mine property, including the undertaking of bench-scale metallurgical test work to develop preliminary flow sheets. The preliminary budget for the project is estimated to be $1.5 million.The Fire Tower Zone contains a NI 43-101 compliant inferred resource of 13.1 million tonnes at 0.35% WO3 and 0.21% MoS2. The North and Deep Tin zones contain a NI 43-101 non-compliant historical total resource of 3.65 million tonnes of 0.80% Sn, 107 grams per tonne In, 0.87% Zn and 0.1% Cu.

The excitement continues Mineral exploration highlights for New Brunswick

by Les Fyffe, director, New Brunswick Geological Surveys Branch New Brunswick has seen a marked increase in mineral exploration and mine development in 2007. Approximately $32 million will be spent this year on mineral exploration programs (up from $16 million in 2006) and over $100 million on the development of metallic and industrial mineral operations in the province. There are currently 35,000 claims in good standing (up from 20,800 in 2006) — a number not seen since the Bathurst staking rush in the early 1950s. Much of the new staking in southern New Brunswick was in response to a tenfold increase in the price of uranium. The value of mineral production in New Brunswick reached $1.5 billion in 2006, up from $875 million the previous year. Base metals from the Brunswick Mine accounted for about 80 per cent of this total.

Mine development in New Brunswick Blue Note Mining Inc. has refurbished the Caribou underground mine and mill and Restigouche open pit mine in the Bathurst Mining Camp, at a cost of $84 million. The first shipments of lead concentrate from Blue Note Mining

Mineral exploration activities in New Brunswick Capella Resources Ltd. has completed an airborne magnetic and radiometric survey over four of its uranium properties in southern New Brunswick. A new discovery in Late Devonian volcanic rocks at Harvey yielded scintilometer readings in the 5,000 to 8,000 cps range with a maximum reading of over 40,000 cps. A handheld Deformed spectrometer registered a spot reading of 1,475 ppm quartz vein in uranium. Historical records indicate the presence of veins of Devil Pike pitchblende, pyrite, fluorite, arsenopyrite and secondary Brook trench. uranium products.A second discovery close to Late Devonian volcaniclastic sandstones near Hoyt yielded scintilometer readings ranging from 1,000 to 14,000 cps. Capella is currently drilling the Hoyt anomaly, which is associated with chlorite-altered zones containing hematite, pyrite and fluorite.

Cornerstone Capital Resources Inc. and Phelps Dodge Corporation of Canada, Ltd., a subsidiary of Freeport-McMoRan Copper & Gold Inc., have formed a joint venture to explore for sediment-hosted, stratiform copper deposits in the Maritimes Basin of southeastern New Brunswick. Work will consist of mapping and prospecting focused on defining drill targets along the Dorchester Mine horizon and at the Goshen prospect. The Dorchester deposit contains an historic resource of 6 million tonnes of low-grade copper, including zones of 2 to 10% Cu. The Goshen copper prospect is reported to host 25,000 tonnes of 2.25% Cu. CVRD Inco Ltd. has entered into a five-year agreement with the province of New Brunswick that gives it exclusive rights to search for uranium in a 136,000 hectare area extending along the southern margin of the Maritimes Basin between Sussex and Moncton. CVRD Inco has completed extensive geochemical surveys and delineated drill targets on some of its properties.

December 2007 / January 2008 | 25

Burnthill minesite First Narrows Resources Corp. has completed a surface definition drilling program on its Chester base metal deposit in the southern part of the Bathurst Mining Camp. A total of 154 holes have been drilled — 22 holes in 2006 and 132 holes in 2007.An underground exploration program has begun with the reopening of the decline constructed in 1975. The next stage of the underground program will focus on dewatering, refurbishment, surveying, geological mapping and sampling. First Narrows also reported that a drill hole on its Falls Creek property in central New Brunswick intersected 112 metres of granite with visible wolframite, scheelite and molybdenite mineralization.

Freewest Resources Canada Inc. reported that its Clarence Stream property in southwestern New Brunswick contains more than 300,000 ounces of gold and 6.4 million pounds of antimony. A 120 kilometre representative sample of drill core from the Central Zone tested by CANMET yielded a head grade of 8 grams per tonne Au with a recovery rate of 88.3% using conventional cyanidation leach. Another 15 holes were drilled in the East Zone, including hole CS07-240, which intercepted 12.45 grams per tonne of gold over 4.5 metres. Freewest also began to probe the gold-bearing system at Clarence Stream to greater depths in the last half of 2007. Nine holes tested a one kilometre long portion of the shear structure that hosts a number of proximal gold deposits. Gold intercepts included 6.59 grams per tonne over 7 metres at a vertical depth of 210 metres in hole CS07-264, and 3.59 grams per tonne over 7 metres at a vertical depth of 208 metres in hole CS07-265. In addition, Freewest has acquired a uranium property in the Plaster Rock area of westcentral New Brunswick. Samples collected during previous exploration work in the area in 1978-79 indicated grades between 0.118 and 0.236% U3O8.

Geodex Minerals Ltd. reported a NI 43-101 compliant resource estimate for Zone III of its Sisson Brook deposit in central New Brunswick,based on assay results from 13 holes drilled by Texasgulf/Kidd Creek Mines from 1979 to 1982 and from 28 holes drilled by Geodex in 2006. The inferred resource estimate ranges from 167.4 Mt of 0.021% Mo and 0.059% WO3 with a cut-off grade of 0.025 WO3% equivalent to 12,300,000 tonnes of 0.057% Mo and 0.110% WO3 with a cut-off grade of 0.225 WO3% equivalent. The WO3 per cent equivalent cut-off value is calculated by converting molybdenum to tungsten values using a factor of 2.97.

Geodex also discovered a high-grade scheelite skarn about five kilometres north of the Sisson Brook tungsten-molybdenum deposit. Additionally, nine holes were drilled on its Pughole-Whopper property, situated three kilometres west of the former Mount Pleasant mine in southwestern New Brunswick. Hole WP-06-01 intersected 1.27% Zn and 26.5 grams per tonne In over 1.56 metres, WP-06-02 intersected 6.26% Zn and 51.0 grams per tonne In over 1.6 metres, and WP-07-04 intersected 2.80% Zn and 62.8 grams per tonne In over 31.7 metres.

Landmark Minerals Inc.staked 280 mineral claims in the Gowland Mountain area of southern New Brunswick. The property is underlain by oil shales of the Carboniferous Albert Formation and is considered prospective for sedimentaryhosted uranium deposits.

Noront Resources Ltd. and Cadillac Ventures Inc. are undertaking a $1.5 million exploration program on the Burnt Hill tungsten deposit located in central New Brunswick. The joint venture will include drilling to provide 26 | CIM Magazine | Vol. 2, No. 8

sufficient information to confirm previous data contained in the technical report and allow for the preparation of a NI 43-101 compliant resource estimate.

Puma Exploration drilled 20 holes in the Haché deposit on its Nicholas Denys property in northern New Brunswick in 2007.The four drill holes with the best silver assays ran 461 grams per tonne over 6 metres, 331 grams per tonne over 3.05 metres, 244 grams per tonne over 4.6 metres and 262 grams per tonne over 4.2 metres. A preliminary metallurgical test on a 30 kilogram composite core sample recovered 460 grams per tonne Ag, 2.2 grams per tonne Au, 6.0% Zn and 3.7% Pb. Puma also drilled a hole into the Nicholas Denys granite that assayed 0.03% Mo over 93 metres.

Rockport Mining Corp. has opened up several new trenches on its Devil Pike Brook property in southern New Brunswick. Gold values up to 18.7 grams per tonne over 4.35 metres have previously been reported in quartz veins on the property.

Sparton Resources Inc. has staked a copper-uranium property in southwestern New Brunswick that was the subject of several exploration programs from the early 1970s to the early 1980s by various companies, including BP Oil Ltd. and Aquitaine Company of Canada. Numerous boulders of altered carboniferous sedimentary rocks found on the property assayed on average 1% Cu, 0.3% U and 0.1% Y. SLAM Exploration Ltd. reported that its Nash Creek deposit in northern New Brunswick contains a total indicated resource estimated at 3.24 million tonnes grading 4.67% Zn, 0.80% Pb and 27.8 grams per tonne Ag, with an additional inferred resource of 2.69 million tonnes at 3.65% Zn, 0.77% Pb and 20 grams per tonne Ag.Assays from 20 holes drilled in a newly discovered mineralized sulphide breccia zone extending northward from the Nash Creek deposit include 1.77% Zn,0.78% Pb and 0.65 ounce per tonne Ag over 18 metres in hole NC07-46;2.24% Zn, 0.68% Pb and 19.16 grams per tonne Ag over 26.8 metres in hole NC07-49; and 6.67% Zn, 2.59% Pb and 1.28 oz/t Ag over 11.75 metres in hole NC07-55.

SLAM also drilled 12 holes into its Nepisiguit base metal deposit in the Bathurst Mining Camp in 2007.Assays in Zone A include 7.74% Zn,2.88% Pb,0.10% Cu and 31.4 grams per tonne Ag over 6 metres in hole NP07-6; 10.58% Zn, 2.34% Pb, 0.20% Cu and 91.8 grams per tonne Ag over 3.75 metres in hole NP07-10; and 6.09% Zn, 0.81% Pb, 0.21% Cu and 31.3 grams per tonne Ag over 11.22 metres in hole NP07-15. Assays from Zone B include 7% Zn, 1.05% Pb, 0.06% Cu and 32 grams per tonne Ag over 0.45 metres in hole NP07-8; and 2.26% Zn, 0.41% Pb, 0.07% Cu and 14.8 grams per tonne Ag over 17.45 metres in hole NP07-9.

Stratabound Minerals Corp.reported gold assays from 23 holes drilled in 2006 on its Elmtree property in northern New Brunswick, including 2.53 grams per tonne over 11 metres in DH06-25; 1.02 grams per tonne over 21 metres in DH0630; 2.52 grams per tonne over 6.5 metres in DH06-28; 0.5 grams per tonne over 15.5 metres in DH06-33; and 0.5 grams per tonne over 64 metres in DH06-41.

They were awarded a $100,000 grant from the province of New Brunswick’s new Deposit Evaluation Program to upgrade reserve estimates on their Captain copper-gold property in the Bathurst Mining Camp. Twelve holes have been drilled to date.Hole CP07-1 intersected a 7.5 metre interval of 3.18% Cu and 0.44 grams per tonne Au, with an average grade for the entire 52 metre interval of 1.12% Cu and 0.24 grams per tonne Au. Stratabound also reported gold assays from grab samples taken on its Big Presque Isle property located along the TransCanada Highway near Florenceville in western New Brunswick. Averages of a series of samples included 0.53 grams per tonne across 60 metres,1.33 grams per tonne over five metres and 3.80 grams per tonne over seven metres.

Xstrata Zinc Canada and its junior mining partner El Niño Ventures Inc. are continuing to explore for base metal deposits in the Bathurst Mining Camp under an Advanced Exploration Agreement with the province of New Brunswick.

Nearly 150 holes have been drilled over the past five years to investigate anomalies outlined by airborne and ground geophysical surveys. L

Raglan Mine in Nunavik and its Perseverance Mine in Matagami. Breakwater Resources has reopened the Langlois Mine in Lebel-sur-Quévillon.

This beehive of activity in the mining industry can also be observed in the associated metallurgical sector, where three companies have announced major investments to increase production capacity: the Horne smelter in RouynNoranda, the CCR Refinery in Montreal-East and QIT-Fer et Titane in Sorel-Tracy.

A sector full of vigour Quebec Mining Industry

by André Lavoie, director, communications and public relations, Quebec Mining Association The Quebec mining industry is currently thriving. Exploration expenditures have hit a peak unequalled in over 20 years. Development and production projects are well underway both in mines and in the related metallurgical sector. The development of new mine operations, combined with numerous retirements in the sector, has created a significant labour demand. The Quebec Government has announced that, for the first time in its history, the province will implement a minerals strategy before the end of the year.

A positive period

Major advantages for the Quebec mining industry The Quebec mining industry has several major advantages. Quebec possesses excellent mineral resource potential spread across a largely unexplored territory. Examples of this untapped potential include the recent diamond, gold and nickel discoveries.

Quebec mining and exploration companies are leaders in the development and application of innovative exploration methods, the development of mineral deposits and in the extraction and recovery of the metals contained within them.

The province has a dependable mining regime based on a legal structure that allows structured and coherent development of the Quebec mining industry.The mining sector benefits from collaboration with the Department of Natural Resources and Wildlife, whose high quality of technical and professional work is recognized throughout the world. For the last few years, the Fraser Institute has rated Quebec as one of the best places in the world for supporting mining development.

The creation of the Corem, allows the mining sector to 11/26/07 3:33 PMresearch Pageconsortium, 1 create synergy in matters of process research and development between

Natural resources constitute a significant development engine for Quebec, with total shipments attaining more than $5 billion in fields related to the processing and first transformation of metals and industrial minerals. The mining industry generates over 50,000 direct and indirect jobs in more than 30 Quebec municipalities.

2007_CIM.qxp Quebec is world-renowned for the diversity of its minerals production. The main commodities extracted are gold, silver, iron, copper, zinc and ilmenite, as well as industrial minerals such as niobium, asbestos, graphite, silica and salt.

Elevated metal prices on world markets, driven by the demand growth especially in China and India, are responsible for the industry’s strength.

In exploration, investments reached nearly $260 million in 2006 and should climb to a record high of nearly $300 million in 2007. Major investments include IAMGOLD in its Westwood Project in Abitibi, Canadian Royalties in Nunavik, Goldcorp with its Opinaca Mine Project in James Bay, the SOQUEMStornoway partnership in a James Bay diamond project, Exploration Osisko in the Canadian Malartic deposit and Alexis Minerals Corporation’s Lake Herbin Schlumberger Water Services (SWS) is proud to announce the acquisition of Water Management and Lake Pelletier projects in Abitibi. Exploration for Consultants (WMC). WMC is a recognized leader in providing project management and engineering hydrology expertise for the mining and energy sectors and will compliment SWS' wide range of iron and uranium is also increasing on the North Shore water exploration, utilization and optimization solutions. and in James Bay. Development and commissioning projects are well Combining world-wide project experience from both companies and incorporating Schlumberger's underway for several mining companies. Agnico-Eagle first-class technologies, this partnership will translate into greater value for our clients.

Mines has begun work for the start-up of the Goldex, Lapa and Laronde II mines, representing investments of more than half a billion dollars in the Abitibi region.

In 2006, Wesdome Gold Mine inaugurated its Kiena mining complex near Val-d’Or. Aurizon started production at the Casa Berardi Mine north of La Sarre www.water.slb.com l sws-services@slb.com in Abitibi. Xstrata has major projects in Northern ©Schlumberger *Mark of Schlumberger Quebec, with investments of nearly $700 million in its

Two Leaders, Now One Company

December 2007 / January 2008 | 27

Today’s mining industry is built on know-how and high-end technology in all activity aspects. industries, government, research centres and universities, thus helping the industry remain competitive. In underground mining, industry can also rely on the services of the Canmet mine laboratory in Val-d’Or. MarchConsulting 4/13/06 9:29 AM Page 1 Quebec also has a university network that supports the competitiveness of the mining sector through training and research and development. The mining

industry can also depend on SOQUEM, an exploration company that has played a major role in the discovery and development of Quebec mineral resources since its creation in 1965.

Finally, Sidex and Sodemex financially support junior companies in the first stages of exploration.

A Quebec strategy

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28 | CIM Magazine | Vol. 2, No. 8

By the end of 2007, Quebec will have given itself a minerals strategy for the first time in its history. According to Natural Resources and Wildlife Minister Claude Béchard, who recently held consultations with interested parties and organizations, the aim of such a strategy is to determine the goals and the actions that will ensure the long-term development of the mineral sector.

During the consultations, the following points were submitted for study: discovering new deposits, reinforcing the competitiveness of the mining sector, attracting and training manpower,harmoniously integrating mining activities in the environment and ensuring the successful cohabitation between the various users of the land. At the time this article was written, the Quebec Government had not yet announced the official contents of Quebec’s Minerals Strategy.

A major challenge: filling workforce requirements The start-up of new mines and numerous retirements have lead to significant manpower requirements that must be fulfilled. In this regard, the Quebec Mining Association and the Comité sectoriel de main-d’œuvre de l’industrie des mines (CSMO-mines) recently held awareness activities targeting young people and workers in mining regions to promote careers in the mining industry. The lack of new manpower is a major challenge for the industry; it must attract, recruit and retain qualified workers among young people, women, First Nations people and immigrants.

For many years, the Canadian mining industry has used state-of-the-art technology and the development of its human resources to establish and maintain a competitive position in international markets. Faced with a probable lack of manpower, the Quebec sector is doing everything it can to ensure the renewal of human resources, the primary “raw material” of the mining industry. L

investissements de plus d’un demi-milliard de dollars dans la région de l’Abitibi. La mine d’or Wesdome a inauguré, en 2006, son complexe minier Kiena près de Val-d’Or. La compagnie Aurizon a mis en production sa mine Casa Berardi au nord de La Sarre en Abitibi. Des projets d’envergure pour Xstrata verront aussi le jour dans le Nord-du-Québec, à la mine Raglan dans le Nunavik et à la mine Persévérance à Matagami avec des investissements de près de 700 millions de dollars. La compagnie Breakwater a aussi procédé à la réouverture de la mine Langlois à Lebel-sur-Quévillon.

Ce bouillonnement au sein de l’industrie minière a pu être observé aussi dans le secteur connexe de la métallurgie où trois entreprises ont annoncé des investissements majeurs pour augmenter leur capacité de production : la fonderie Horne à Rouyn-Noranda, l’affinerie CCR à Montréal-Est et QIT – Fer et Titane à Sorel-Tracy.

L’industrie minière québécoise : un secteur en pleine effervescence par André Lavoie, directeur, Communications et relations publiques, Association minière du Québec

Sommaire L’industrie minière du Québec vit actuellement une période des plus positives. Les dépenses en exploration atteignent un sommet inégalé depuis plus de 20 ans. Les projets de développement et de production vont bon train, tant pour les producteurs miniers que pour le secteur connexe de la métallurgie.

La mise en place de nouvelles exploitations conjuguée à de nombreux départs à la retraite génère d’importants besoins en ressources humaines. Le gouvernement du Québec a annoncé pour sa part que, pour la première fois de son histoire, cette province se dotera d’une stratégie minérale d’ici la fin de l’année 2007.

Un période des plus positives Les ressources minérales constituent un moteur de développement important pour le Québec avec des expéditions totales de plus de 5 milliards de dollars associées au traitement et à la première transformation de métaux et de minéraux industriels. L’industrie minière génère plus de 50 000 emplois directs et indirects dans plus de 30 municipalités du Québec.

Le Québec est reconnu mondialement pour la diversité de sa production minière. Les principaux métaux exploités sont l’or, Exploiter un l’argent, le fer, le cuivre, le zinc, l’ilménite, le nickel et gisement exige le des minéraux industriels comme le niobium, l’amiante, concours de le graphite, la silice ainsi que le sel. multiples L’industrie minière du Québec vit actuellement une spécialistes : un période des plus positives. La vigueur des prix des géologue de la métaux sur les marchés mondiaux, stimulés par la mine Casa Berardi croissance de la demande, particulièrement en Chine (Aurizon) dans la et en Inde, explique cette bonne santé de l’industrie. région Nord-duPour l’exploration, les investissements s’élèvent à Québec. près de 260 millions de dollars pour 2006, et près de 300 millions, un sommet au Québec, devrait être atteint en 2007. À ce chapitre, on peut souligner notamment les investissements majeurs de IAMGOLD dans son projet de Westwood en Abitibi, de Canadian Royalties au Nunavik, de Goldcorp dans son projet de la mine Opinaca à la Baie-James, des partenaires SOQUEM-Stornoway dans un projet diamantifère à la Baie-James, d’Exploration Osisko dans le gisement Canadian Malartic et de la Corporation minière Alexis dans ses projets des lacs Herbin et Pelletier, aussi en Abitibi. L’exploration pour le fer et l’uranium connaît aussi un regain sur la Côte-Nord et à la Baie-James.

Pour les producteurs miniers, les projets de développement et de mise en production vont bon train. Les mines Agnico-Eagle ont engagé les travaux pour la mise en production des mines Goldex, Lapa et Laronde II, des

Des avantages majeurs pour l’industrie minière au Québec L’industrie minière du Québec possède certains avantages majeurs. Ainsi, le Québec peut d’abord compter sur un excellent potentiel de ressources minérales dispersées sur un territoire encore peu ou pas exploré, comme en témoignent de récentes découvertes reliées aux diamants, à l’or et au nickel.

Avec l’évolution de nouvelles technologies, l’industrie minière bénéficie de l’implication et de la compétence des femmes qui s’engagent désormais de plus en plus dans des secteurs traditionnellement réservés aux hommes.

Les entreprises d’exploration et d’exploitation minière du Québec sont des chefs de file pour la mise au point et l’application de méthodes novatrices d’exploration et de mise en valeur des gisements de minéraux et pour l’extraction et la récupération des métaux qui s’y trouvent.

Le Québec dispose d’un régime minier fiable parce qu’il repose sur des bases légales permettant un développement structuré et cohérent de l’industrie minière québécoise. Le secteur minier québécois bénéficie de la collaboration du ministère des Ressources naturelles et de la Faune (MRNF) dont la qualité du travail technique et professionnel est reconnue partout dans le monde puisque l’Institut Fraser attribue au Québec depuis plusieurs années, un des meilleurs rangs au monde pour son soutien au développement minier.

La création de Corem, un consortium de recherche précompétitive, permet au secteur minier québécois de se doter d’une synergie en matière de R&D en procédés entre l’industrie, le gouvernement, les centres de recherche et les universités aidant ainsi l’industrie à demeurer compétitive. Par ailleurs, en exploitation souterraine, l’industrie compte aussi sur les services de la minelaboratoire de Canmet à Val-d’Or. Le Québec dispose aussi d’un réseau universitaire qui contribue à soutenir la compétitivité du secteur minier par ses compétences en formation et R&D. L’industrie minière peut aussi compter sur la société d’exploration SOQUEM qui, depuis sa création en 1965, joue un rôle majeur dans la découverte et la mise en valeur des ressources minérales du Québec.

Enfin, la présence de Sidex et de Sodemex apporte un appui financier aux sociétés juniors dans les premières étapes de l’exploration.

Une stratégie québécoise D’ici la fin de l’année 2007, le Québec se dotera d’une stratégie minérale pour la première fois de son histoire . Pour le ministre des Ressources naturelles et de la Faune, M. Claude Béchard, qui a procédé à l’automne à une consultation auprès des personnes et organismes intéressés, une telle 30 | CIM Magazine | Vol. 2, No. 8

stratégie vise à déterminer des orientations et des actions qui assureront le développement à long terme du secteur minéral. Les pistes de réflexion proposées dans la consultation portaient sur la découverte de nouveaux gisements; le renforcement de la compétitivité du secteur minier; l’attraction et la formation de la main-d’œuvre; l’intégration harmonieuse des activités minières dans le milieu et une cohabitation réussie entre les différents usagers du territoire. Au moment de la rédaction de cet article, le gouvernement du Québec n’avait pas encore procédé à l’annonce officielle du contenu de la Stratégie minérale du Québec.

Un défi majeur : combler les besoins de main-d’œuvre La mise en place de nouvelles exploitations, conjuguée à de nombreux départs à la retraite, génère d’importants besoins en ressources humaines qu’il faut combler. Sur ce front, l’AMQ et le Comité sectoriel de main-d’œuvre de l’industrie des mines (CSMO-mines) ont récemment multiplié les activités de sensibilisation auprès des jeunes et des travailleurs dans les régions minières, afin de promouvoir les carrières dans l’industrie minière.

Le secteur minier connaîtra d’importants besoins en main-d’œuvre au cours des prochaines années. La relève de la ressource humaine constitue un défi majeur pour l’industrie minière qui devra s’employer à attirer, recruter et conserver une main-d‘œuvre qualifiée, tant chez les jeunes, les femmes et les communautés autochtones que chez les immigrants.

Depuis plusieurs années, l’industrie minière canadienne s’est résolument orientée vers l’utilisation des technologies de pointe et le développement de ses ressources humaines pour maintenir et développer une position concurrentielle sur les marchés internationaux. Devant la perspective d’une pénurie de travailleurs qualifiés, le secteur québécois met tout en œuvre pour renouveler sa ressource humaine, la matière première de l’industrie minière. L

Staying at the top Ontario’s outlook remains strong by staff of the Ontario Ministry of Northern Development and Mines

Exploration and development highlights Ontario is expected to maintain its standing as Canada’s top mineral investment jurisdiction and remain among the top 10 worldwide for 2007. A rich geological environment, accessible geoscience information, highly rated infrastructure for exploration and mine development, favourable taxation policies and a stable regulatory environment continue to make the province a great place in which to invest.

Higher metal prices are reflected in the soaring values for mineral production and the continuing increases in spending on exploration in Ontario. Ontario’s diverse geology accounts for the broad spectrum of minerals being sought and produced. Although gold remains the primary focus, higher prices for other metals are leading to an increase in exploration for minerals such as uranium, molybdenum and silver.

Ontario continues to lead all Canadian provinces and territories in exploration and deposit appraisal expenditures. In 2006, spending reached $347 million and was expected to climb to $519 million in 2007. Final exploration and deposit appraisal expenditures for 2005 totalled $294 million. Spending by junior companies climbed from $50 million in 2002 to over $143 million in 2006,and now accounts for 42 per cent of exploration and deposit appraisal expenditures.

The number of mining claim units in good standing in Ontario should reach 300,000 in 2007, a new record and a significant increase over the 2006 total of 229,000. The value of assessment work filed in Ontario climbed to $88 million in 2006, up from $68 million in 2005.

Ontario retained its position as the leading Canadian province in non-fuel mineral production in 2006, as the value of production soared to $9.4 billion, up from $7.4 billion in 2005.The value of Ontario’s mineral production is comprised of metals at $6.9 billion and non-metals at $2.5 billion.A record level of $3.3 billion for the value of nickel production and dramatic increases in the value of copper and zinc production are responsible for much of the increase.

Bulk sampling underway at Ursa Major Minerals Shakespeare project near Sudbury.

Ontario is the third leading producer of platinum group metals (PGM) in the world, behind Russia and South Africa. PGM are produced as a byproduct of nickel mining in the Sudbury area and primary production takes place in northwestern Ontario at the Lac des Iles Mine owned by North American Palladium Ltd., Canada’s only PGM mine.

Ontario’s rich deposits have attracted the attention of the world’s leading PGM producing companies. Spending on PGM exploration in Ontario climbed from $2 million in 1998 to $24 million in 2006, as activity intensified at some of the larger projects across the province and the price of platinum moved well above $1,000 per ounce. PGM-rich properties are spread across northern Ontario,from Sudbury in the east to Fort Frances in the northwest, where high grades at MetalCORP Limited’s North Rock copper nickel PGM property have caught the attention of some senior mining companies.

Exploration and development projects Platinum group metals Marathon PGM Corporation is developing a property near Marathon and recently announced a resource (measured and indicated) of 68.3 million tonnes grading 0.91 grams per tonne palladium, 0.25 grams per tonne platinum, 0.09 grams per tonne gold and 0.32 copper. This translates into 1,986,000 ounces of palladium,551,000 ounces of platinum,210,000 ounces of gold,and 493 million pounds of copper. Consultations are ongoing with the town of Marathon and local First Nation communities to determine how the parties will work together to construct the mine. A comprehensive feasibility study is expected to be completed by April 2008.

Wallbridge Mining Company Limited is actively exploring several of its interests in more than 30 exploration properties, covering in excess of 650 square kilometres of footwall rocks within the Sudbury Igneous Complex in the Sudbury area. The Broken Hammer Zone project in the North Range received much attention in 2006. At surface, the Broken Hammer Zone is a network of PGM-rich copper veins within a larger disseminated sulphide envelope. Drilling has intersected high-grade PGM values over significant widths, such as a 20.53 metre interval in Hole WIS-028 averaging 13.72 grams per tonne total precious metals. Wallbridge and partner Lonmin Plc, the world’s third largest PGM producer, have approved a $2.5 million exploration program for the area in 2008.

URSA Major Minerals Incorporated has brought the Shakespeare nickelcopper-PGM project, 50 kilometres west of Sudbury, closer to production. After two years and $6.5 million in expenditures, a feasibility study has defined a diluted probable reserve of 11,266,000 tonnes grading 0.33% nickel, 0.35% copper, 0.02% cobalt, 0.33 grams per tonne platinum, 0.37 grams per tonne palladium and 0.9 grams per tonne precious metals. The company recently completed the mining, crushing and haulage of a 50,000 tonne bulk sample to further advance its objective of developing two open pits and a 4,500 tonne per day mill.

For over five years, Pacific North West Capital Corp. in conjunction with Anglo Platinum Limited, the world’s largest primary producer of platinum, has been exploring its River Valley Project, which is located east of Sudbury in Dana and Pardo townships. More than 100 kilometres of drill core has been extracted along the northern brecciated contact of a gabbroic intrusion that has a potential contact zone of 15 kilometres in length. Over $20 million has been spent to date. The resource is estimated as: measured and indicated resources of 30.5 million tonnes containing 953,900 ounces of palladium, 329,500 ounces of platinum and 59,500 ounces of gold; with an additional 2.3 million tonnes of December 2007 / January 2008 | 31

inferred resources containing 67,000 ounces of palladium (0.87 grams per tonne), 23,800 ounces of platinum (0.31 grams per tonne) and 4,000 ounces of gold (0.05 grams per tonne) using a 0.7 grams per tonne platinum plus palladium cut-off.

Gold Richmont Mines Inc. (55 per cent) and Patricia Mining Corp (45 per cent) recently began producing gold from the Island Gold Mine near Wawa. Reserves include the past-producing Kremzar Mine, which has historical (pre NI 43-101) proven and probable reserves of 181,944 tonnes at 6.27 grams per tonne gold and possible reserves of 85,952 tonnes at 8.67 grams per tonne gold.

Production of over 34,000 ounces is forecast for 2007 and should increase to over 57,000 ounces in 2008.

Southern Star Resources and Exall Resources were rewarded for their intensive drill program on their Gold Eagle Mine property near Red Lake with several high-grade gold intersections in the Bruce Channel zone of up to 107.7 grams per tonne gold over 3.8 metres. Estimates of the mineralized envelope of the zone were increased to 1,100 metres vertical, 450 metres northwest-southeast and 615 metres northeast-southwest. The partners, each with a 50 per cent share in the project, are spending about $11.4 million in 2007.

To attain its goal of producing one million ounces of gold by 2010, Goldcorp Inc., the world’s richest gold producer, is investing $23 million in underground exploration and development in its Campbell and Red Lake mine complexes in 2007. Due to the significantly expanded Red Lake land package (41,000 hectares) that came with its buyout of Placer Dome’s Campbell Mine and

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32 | CIM Magazine | Vol. 2, No. 8

associated mineral properties,Goldcorp is spending approximately $9 million on surface exploration within the greenstone belt. Goldcorp recently announced that it has acquired the remaining 31.9 per cent interest in the Musselwhite gold mine and the remaining 49 per cent interest in the Porcupine Joint Venture from Kinross Gold Corporation in exchange for a cash payment and 50 per cent ownership of the La Coipa Mine in Chile. This acquisition will give Goldcorp 100 per cent ownership of the Porcupine Joint Venture and the Musselwhite Mine.

Pelangio Mines Inc. now has a 50 per cent equity ownership in Detour Gold Corporation after the sale of its Detour Lake property to Detour Gold Corporation. The objective of the sale was to help move the property through the development stage. The Detour Lake property hosts a near-surface mineral resource of 3.4 million ounces of gold at the location of the former Detour Lake Mine, which produced 1.8 million ounces of gold from 1983 to 1999.

Lake Shore Gold Corp. received a prefeasibility report on mineral reserve estimates at the Timmins West gold property that indicates production may be possible by 2009, with annual average production of 71,000 ounces of gold. The property has probable reserve estimates of 3.4 million tonnes containing 826,000 ounces of gold at 7.59 grams per tonne.

The company owns the Bell Creek mill and associated infrastructure, which will reduce future development costs and provide new options for processing mineral products from gold projects. Lake Shore has commenced an advanced underground exploration program that includes sinking an underground exploration shaft.

Rainy River Resources Ltd. continues drilling at the Rainy River gold project with the program tracing the 17 and ODM Zones down-plunge below the 300 metre level. A total of six gold-dominant polymetallic zones have been identified within the anomaly, of which five are located along the 17 Gold Trend. Drilling is also revealing new gold zones in the area with high pyrite content.

Kirkland Lake Gold Inc. has discovered at least 14 new gold-bearing zones south of the Macassa Mine workings at the South Mine complex area in Kirkland Lake. These discoveries are now the main focus of exploration and a cross cut is being driven from the 1,615 metre level to gain access to the zones and conduct close-up exploration. Drilling has confirmed continuity of the high grade over a strike length of 21 metres and a dip component of 15 metres.

Definition diamond drilling is being conducted at St Andrew Goldfields Ltd.’s Holloway-Holt gold project near Kirkland Lake where development efforts are underway. Preliminary work is being conducted to re-commission the Holt gold mill in preparation for a production decision.

Base metals CVRD Inco recently announced that they will spend $11 billion worldwide in 2008 — the largest annual investment program ever undertaken by any mining company in the world. Sudbury area projects will continue to play an important role in these activities as $68 million will be spent next year on the Totten project and on other development projects such as Copper Cliff Deep and Creighton Deep will be advanced. The company expects to double its spending on exploration and strategic studies in the Sudbury area with expenditures of over $50 million planned for 2008.

Liberty Mines Inc. commenced production at the Redstone Mine near Timmins in May 2006. The Redstone Mill was commissioned in July of this year and underground drilling provided a measured and indicated resource of 418,931 tonnes grading 2.32 per cent nickel to and above the 508 metre level of the mine.

FNX Mining Company Inc. is achieving notable results from exploration of its footwall properties at the Levack Mine near Sudbury, Ontario’s newest base metal mine. Drilling at the Levack Footwall Deposit is expanding reserves and

intersecting high-grade mineralization of nickel, copper and precious metals.

Exploratory underground drilling is also underway at the Podolsky Project to upgrade the resource classification for mine planning since full commercial production should be achieved by the end of 2008.

Xstrata Nickel is continuing its growth strategy in the Sudbury area and recently announced that it will invest $8.7 million in the Thayer-Lindsley Mine to extend mine life by at least one year. The company also views the Nickel Rim nickel project as an important part of its growth potential, with an inferred resource of 13.4 million tonnes of mostly nickel,copper,platinum and palladium.

The $850 million project should begin annual production of 1.25 million tonnes of ore in 2010. Development and exploration work also continues at the FraserMorgan property and other Sudbury area mine properties.

Diamonds De Beer’s Victor Diamond Mine, located in the James Bay Lowland, is expected to open in 2008 and operations there will create 375 full-time jobs.

This mine is the largest project underway in northern Ontario and is expected to produce about 600,000 carats annually. Following the signing of Impact and Benefits Agreements with Attawapiskat First Nation, and more recently with Moose Cree First Nation, the company is continuing to work with other Aboriginal communities in the area. De Beers continues to investigate the economics of other kimberlites in the vicinity of the Victor pipe.

Metalex Ventures Ltd. continues to bulk sample the T1 kimberlite, located approximately 80 kilometres west of the Victor diamond project. A total of 896 diamonds were recovered from 1,992 kilograms of kimberlite, yielding an average diamond count of 420 diamonds per 100 kilograms. To date, 88 tonnes of a planned 200 tonnes minibulk sample have been collected.

environmental responsibilities associated with mineral development. With industry and other ministry participation, a web-based repository for all permitting and approvals information was developed. The new website (www.serviceontario.ca/mining) provides a centralized location to access information, advice and regulatory requirements as well as online services from various ministries related to the full range of mine development activities, from prospecting through mining to reclamation and closure.

Ontario is committed to sustaining global confidence in its well-earned reputation as a leading jurisdiction for mining and is working to address issues such as sustainable development, land rights and the interests of First Nations.

A wealth of geoscience information The Ontario Geological Survey (OGS) Branch of the Ministry of Northern Development and Mines provides extensive and objective information on Ontario’s geology and its world-class mineral resources. Mapping and data collection programs are being undertaken by the OGS throughout the province.

Unparalleled access to data The ministry has made tremendous progress in digitizing as well as increasing and improving access to its data. The award-winning ClaimMap system of monitoring and illustrating claim staking activity throughout the province is second to none. Geological data is available at GeologyOntario (www.ontario.ca/geology), a state-of-the-art website that provides unparalleled electronic access to a wide range of geoscientific data, including all Ontario Geological Survey publications, maps and assessment reports. The data can facilitate and support investment and landuse decisions. L

Other RPT Uranium Corp. (formerly Rampart Ventures Ltd.) completed a summer diamond-drilling program on the Split Rapids Zone in the Sibley Basin in northwestern Ontario. Its claims are located approximately 100 kilometres north-northeast of Thunder Bay. Stripping is underway at some of the properties, such as Frazer Creek and the Malborne Lake claim group. Shallow drilling has intersected 2.99% U3O8 across 1.5 metres; grab samples have assayed as high as 19.9% U3O8. A magnetic survey will be flown on some of the properties in the claim group.

Canadian Wollastonite continues development of the St. Lawrence deposit, a high-grade wollastonite deposit north of Kingston. Bulk testing and process design is complete. The project is in the final stages of pre-production engineering and development. Construction of a 1:5 scale pilot plant is underway.

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British Columbia | Alberta | Yukon | NWT | Ontario | Quebec | Nova Scotia | Qatar December 2007 / January 2008 | 33

study was completed in February indicating Bucko has the potential to deliver a 118 per cent internal rate of return with a US$8.00 per pound nickel price. The study used a figure of 1.8 million tonnes of measured and indicated resources grading 2.1% nickel. This figure was subsequently upgraded to 2.5 million tonnes of measured and indicated resources of 2.01% nickel. Construction of surface infrastructure and rehabilitation of the old shaft proceeded throughout 2007. The capital cost of project development to production is estimated at $64 million.

by Dave Prouse, resident geologist, Manitoba Science, Technology, Energy and Mines, Crowflight plans to have Bucko in production by the Manitoba Geological Survey second quarter of 2008, at a rate of 1,000 tonnes per day.

In regional exploration, Crowflight conducted drilling to further define two Sustained high metal prices continued to fuel exploration spending in 2006 nickel discoveries, the Apex and the M11A North zone.

Manitoba in 2007. Exploration and deposit appraisal spending intentions, as Approximately $100 million in capital spending was planned for 2007 at reported by Natural Resources Canada in March 2007, are estimated at $49.5 CVRD Inco’s Manitoba operations.

Capital projects consist of smelter million, up slightly from the $46.9 million spent in 2006. modernization including a new dust-capturing system, continued mine development and other work throughout the mines and processing plants. In Base metals Manitoba’s proven potential to host world-class nickel-sulphide deposits October, CVRD Inco announced intentions to work towards extending the life of has attracted a number of junior companies that are conducting feasibility- its existing Thompson facilities to 2027 and beyond. The company continues to look at ways to develop new ore bodies and upgrade their surface plants. related work on previously discovered deposits and former producers.

Ongoing drilling by CVRD Inco near its Thompson mines has demonstrated The most advanced project is that of Crowflight Minerals at the Bucko Lake deposit near Wabowden, south of Thompson. A positive bankable feasibility significant potential for the open pit mining of two new deposits, the Thompson 1-C Surface zone and the 1-D Surface zone.Drilling projects to locate new zones of nickel mineralization are also returning encouraging results at depth at both the Thompson and Birchtree mines.

Victory Nickel completed a 13,000 metre drill program at their Minago property north of Grand Rapids.Drill results from the program are being used to upgrade the resource estimate and to provide samples for metallurgical testing and geotechnical data.One of the better holes from the program returned 36 metres of 1.4% nickel.Overall drill results were reported to support past work on the property.

Wardrop Engineering is in the process of conducting a bankable feasibility study which is due for completion in early 2008. The Minago deposit hosts NI 43-101 compliant measured and indicated resources of 49.1 million tonnes of 0.516% nickel.

Victory Nickel also completed a 30-hole drill program to expand resources at the Mel deposit north of Thompson. Victory has completed necessary expenditures to earn 100 per cent interest in Mel from CVRD Inco. Mel has a NI 43-101 compliant indicated resource of 4.3 million tonnes of 0.88% nickel.

In Lynn Lake, Independent Nickel commenced a 20,000 metre drill program at the past-producing Lynn Lake nickel mine, with the objective of testing four We see solutions where others don’t. zones. In June, the company announced that drilling of the Upper G target Golder Associates is committed to helping intersected an unexpected zone of mineralization above the target area, our clients meet their obligations to shareholders, employees and returning 11.9 metres of 0.7% nickel and 0.4% copper. A prefeasibility study communities around the world. was commissioned to determine the technical and capital requirements A world of opportunities, necessary to open the former nessessary producer. delivered locally.

VMS Ventures acquired a large ground position in the Flin Flon–Snow Lake Belt during the last two years.VMS completed a five-hole summer drill program Africa +27 11 254 4800 Asia +852 2562 3658 on three anomalies outlined by airborne geophysics and geochemical surveys Australia and New Zealand +61 7 3721 5400 Europe +44 1628 586 213 at their Reed Lake property. In October, the company announced that assays North America +1 800 275 3281 from the second hole returned 43.05 metres of 4.38% copper, 1.56% zinc plus South America +55 21 3095 9500 solutions@golder.com precious metals. Holes 1 and 3, on the same VTEM target, also returned encouraging base metal values. VMS was planning to commence a secondwww.golder.com phase drill program in early November to further define the new discovery.

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HudBay Minerals boosted their 2007 exploration budget to $45.2 million.This includes $8.5 million for the Bur copper-zinc deposit east of Snow Lake,where the company is developing a decline to take a 10,000 tonne bulk sample and conduct a feasibility study. A production decision for Bur is expected in late 2007.

At their Lalor Lake property southwest of Snow Lake, HudBay intersected a new zone of high-grade zinc mineralization. The initial drillhole intersected 45.13 metres of 7.62% zinc and 0.19% copper along with significant precious metal values. Drilling with four machines continued in the fall and is returning very encouraging results. Other 2007 drill programs focused on testing, both geophysical anomalies and structural re-interpretations of known deposits to discover new ore bodies, within and around operating mines. HudBay also signed option agreements on some of their Flin Flon–Snow Lake area properties with Rockcliff Resources and VMS Ventures, further leveraging their exploration opportunities.

Murgor Resources embarked on an aggressive drill program in January on properties optioned from HudBay Minerals in 2006. Three properties, Hudvam, Wim and Snow-H, are in the Manitoba portion of the Flin Flon–Snow Lake Belt.

Hudvam and Wim contain partially delineated copper-zinc deposits for which Murgor completed NI 43-101 compliant resource estimates early in 2007. Winter drilling encompassing 20 holes was completed at Hudvam and returned encouraging results. Additional Logging drillcore drilling is planned for 2008, leading up to a feasibility from VMS Ventures’ study. Inferred resources at Hudvam stand at 1.19 Reed Lake coppermillion tonnes of 1.17% copper, 1.71% zinc and 2.94 zinc discovery. grams per tonne gold. Initial drilling of 10 holes at Wim Photo courtesy of commenced in August to verify historical data. A more VMS Ventures Inc.

36 | CIM Magazine | Vol. 2, No. 8

extensive drilling program to boost the resource base is planned for early 2008.

Wim contains an inferred resource of 2.06 million tonnes of 1.92% copper, 0.26% zinc and 1.65 grams per tonne gold.

Halo Resources was conducting an extensive 30,000 metre drilling campaign on their large Sherridon property northeast of Flin Flon.The property contains several known near-surface deposits and mineralized zones, including the past-producing Sherritt Gordon ore body.Halo conducted drilling on four of the six known deposits during 2007 including Park Lake, Bob Lake, Jungle Lake and Cold Lake. Initial drill programs are being conducted to confirm historical results and to explore for extensions to known deposits. Drilling has been successful in confirming massive sulphide mineralization and expanding the resource base. Additional drilling is planned for 2008 to help advance projects to compliant resource calculations.

Rockcliff Resources signed option agreements to acquire 100 per cent interest in seven property packages from HudBay Minerals. The properties are located within the Snow Lake area and contain the Rail, Reed, Kof and Sylvia copper-zinc deposits as well as other prospective targets. Rockcliff later acquired three exploration licences in the Snow Lake area and staked additional claims adjacent to the Rail Lake property. A 3,000 metre drill program commenced in October to explore for possible extensions of the Rail Lake deposit.

Callinan Mines and partner Bell Resources completed a VTEM airborne survey and drilled high-priority targets at their Fox River nickel property east of

Gillam. Drilling examined seven separate conductive targets out of a total of 20 on the large, remote property. Drillholes intersected mafic and ultramafic intrusive rocks containing sulphide-mineralized zones of varying thickness.

Pure Nickel reached an agreement with Xstrata Nickel to acquire 100 per cent interest in two former Falconbridge nickel properties, the William Lake project and the past-producing Manibridge mine near Wabowden. Pure Nickel also signed an option/joint venture agreement to acquire 50 per cent interest in Xstrata’s Fox River project in northeastern Manitoba. A 10-hole drill program at the Fox property was completed and returned assay values of up 2.38% copper and 0.43% nickel.

In southeastern Manitoba, a scoping study released in January on Mustang Minerals’ Maskwa nickel deposit increased the total mineral resource to over 9 million tonnes enabling a nine-year mine life with initial capital costs estimated at $64.5 million.Mustang subsequently embarked on a 30-hole drill program to upgrade the reserve figure, explore for additional mineralization and assist with the preparation of a prefeasibility study. This study is in progress, with a revised mine plan that will include an initial open pit lasting six years followed by an estimated two-year underground operation. Targeted production is expected to be one million tonnes of ore per year, yielding 10 million tonnes of nickel in concentrate.

Mustang has a second nickel-copper open-pit resource at the M2 zone on the Mayville property located 35 kilometres from the Maskwa deposit. A mineral resource estimate released in January concluded that M2 contains indicated resources of 21.9 million tonnes of 0.20% nickel and 0.48% copper. Mustang is reviewing various methods in an effort to enhance the mineral potential of the M2 zone and the Mayville property.

Precious metals San Gold Corporation conducted a vigorous exploration and development program at the Rice Lake mine in Bissett.

Development work on the 28th level (4,200 feet) and the 29th level for production of the “93” and “98” veins returned high-grade gold values. Face sampling of the “93” vein averaged 60.27 grams per tonne gold over a true width of 1.5 metres and a strike length of 53.3 metres. Drilling also discovered a new high-grade vein on the 28th level assaying 39.7 grams per tonne across 1.2 metres. In addition, drilling below the 5300 level returned some high grades, including 6.8 metres of 50.1 grams per tonne within a 15.1 metre intersection of 14.6 grams per tonne gold.

The first production ore from the San Gold #1 deposit was delivered to the mill in early April. Together the two mines were contributing 725 tonnes of ore per day. Modifications to the mill’s crushing circuit are being considered to increase overall mill capacity to accomodate anticipated increased tonnage from San Gold #1 and the addition of ore from the Cartwright zone. In April, the company had their first gold sale since putting the operation back into production in 2006, thereby making the transition from developer to producer.

At their Monument Bay project in northeastern Manitoba, Rolling Rock Resources completed a 28-hole drill program consisting of infill and down-plunge drilling of the main zones.

Some highlights of the program include a 4.45 metre interval of 10.17 grams per tonne gold at the C zone and a 15 metre intersection at the G zone which assayed 6.68 grams per tonne gold.

The Monument Bay project has a NI 43-101 compliant inferred resource of 3.38 million tonnes of 6.45 grams per tonne gold.

Garson Resources and Piper Capital, previously joint owners of the New Britannia mine (NBM) in Snow Lake, amalgamated to form Garson Gold Corp. in April. A 10,000 metre first-phase drill program began in February starting with detailed drilling of the existing inferred resources at the NBM #3 zone, which currently stand at 220,000 tonnes of 7.10 grams per tonne gold. The drilling of deep holes revealed multiple gold-bearing intersections in some areas. Garson completed 10,000 metres by September and an additional 10,000 metres is expected to be completed by year-end.

At the past-producing MacLellan gold mine near Lynn Lake, Carlisle Goldfields completed over 12,000 metres of drilling by mid-2007. Carlisle said that the presence of the MacLellan mine horizon has now been confirmed to the east, west and up to 200 metres below the present mine workings. Many drill holes returned multiple intersections and examples of significant assay results included 9 metres of 18.97 grams per tonne and 5.75 metres of 11.01 grams per tonne gold. A second phase of drilling is scheduled to resume in early November.

Wildcat Exploration completed over 8,000 metres of drilling at their Jeep property east of Bissett in Manitoba. The drill program extended the strike length of the past-producing Jeep gold mine’s No.1 vein system to 1.1 kilometres. High-grade gold values of 56.38 grams per tonne over 0.38 metres and 36.04 grams per tonne over 0.30 metres were encountered.

Uranium The search for uranium in Manitoba is focused on the northwest corner of the province. CanAlaska Uranium conducted a surface sampling program on their North East Wollaston project and discovered a large number of highgrade surface uranium showings. L

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Saskatchewan leads the way

Recently, UEX reported that in the fall 2007 drilling program at the Anne deposit, hole SHE 122-1 intersected 4.73% U3O8 over 33.7 metres, between 713.8 and 747.5 metres, including 23.21% U3O8 over 3.6 metres from 715.9 to 719.5 metres. This basement intersection is the second best reported from the Anne deposit. Also at the Shea Creek uranium project, work has begun in preparation for sinking a Article from Saskatchewan Energy and Resources, first published in the Northern 950-metre-deep exploration shaft, between the Anne and Kianna Prospector 2007-2008 by the Manitoba-Saskatchewan Prospectors and deposits, at an estimated capital cost of $100 million.

Developers Association Adjacent to the Athabasca Basin, uranium exploration is underway in the Uranium City area, northeast of Fond du Lac, In 2007, it is estimated that about $277 million will be spent on mineral northeast and southwest of Wollaston Lake, south of Key Lake and south of exploration in Saskatchewan. This level of expenditures represents an all-time Dufferin Lake. In southwestern Saskatchewan, Uranium Power Corporation has record in terms of current-year dollars and continues a substantial year-over- optioned the South Fork project from JNR Resources and is evaluating the year increase marked by actual expenditures of $243.6 million in 2006, $150 potential of Eocene paleochannels to host uranium mineralization similar to million in 2005, $60.8 million in 2004 and $31.3 million in 2003. As of October deposits in the Powder River Basin uranium district of Wyoming.

In 2006, uranium production in the Athabasca Basin came from multiple 12, active mineral dispositions totalled about 13.21 million hectares pursuant operations: McArthur River, Key Lake, Rabbit Lake and McClean Lake. Ore from to the Mineral Disposition Regulations of 1986. In addition there were 50 active potash dispositions, comprising permits and leases, totalling about 1.35 McArthur River Mine [Cameco, 69.805 per cent (operator); AREVA, 30.195 per cent] was mixed with low-grade waste stockpiled at Key Lake and processed at million hectares.

In 2006, Saskatchewan was the world’s leading producer of potash and the Key Lake Mill [Cameco, 83.33 per cent (operator); AREVA, 16.67 per cent], uranium, accounting for about one-third of global production of potash and 25 yielding 18.7 million pounds U3O8, the same as in 2005. This same level of per cent of primary world uranium production. Gold, coal, silica sand, copper, production has been forecasted for 2007. As of December 31, 2006, proven and zinc, silver, sodium sulphate, bentonite and sodium chloride were also mined. probable reserves at McArthur River were 367 million pounds U3O8 from ore The total value of mineral sales was about $3.2 billion. grading 20.55% U3O8. At Cameco’s wholly owned Rabbit Lake operation, production from the Eagle Point mine totalled 5.1 million pounds U3O8 Uranium compared to 6.0 million pounds U3O8 in 2005. Production for 2007 has been Uranium exploration expenditures are forecasted to rise slightly in 2007, forecasted at 5.4 million pounds U3O8.Proven and probable reserves at Rabbit reflecting the spot price for uranium, which continued to rise from US$72 per Lake, as of December 31, 2006, were 19.1 million pounds U3O8 from ore grading pound U3O8 at the start of the year to a high of US$136 per pound U3O8 in July 1.18% U3O8. At the McClean Lake operation [AREVA, 70 per cent (operator); 2007 (source of uranium spot prices: the Ux Consulting Company, LLC Denison, 22.5 per cent; OURD (Canada) Co. Ltd., 7.5 per cent], production in http://www.uxc.com). By October 22, the spot price had settled to US$80 per 2006, which was from the Sue A and Sue E deposits as well as stockpiled Sue C pound U3O8; this compares to US$31.25 per pound U3O8 at the end of 2005 and ore, was 1.8 million pounds U3O8. This compares to production of 5.49 million an all-time low of US$7.10 per pound U3O8 in late 2000. Most uranium pounds U3O8 in 2005. Production in 2007, which will be from the Sue A and Sue exploration is focused within and adjacent to the Athabasca Basin of northern E deposits, is forecasted to remain at about 1.8 million pounds U3O8. As of Saskatchewan, the world’s pre-eminent uranium district.The basin contains the December 31, 2006, reserves at the McClean Lake operation comprised 10.68 largest, highest grade deposits in the world and currently accounts for about 25 million pounds U3O8 from ore at an average grade of 0.77% U3O8.

Four uranium deposits are currently in development: Cigar Lake, Midwest, per cent of primary global uranium production. It is still considered highly prospective as underlined by a steady stream of recent exploration successes. McClean Lake North and Sue B of the McClean Lake operation. Cigar Lake, one These discoveries, which include some in the deeper western parts of the basin of the world’s largest high-grade deposits, is owned by joint venture partners and in basement rocks beneath the unconformably overlying sandstones of the Cameco (50.025 per cent), AREVA (37.1 per cent), Idemitsu Uranium Exploration Athabasca Supergroup, reflect advances in the understanding of the geological Canada Ltd. (7.875 per cent), and TEPCO Resources Inc. (5 per cent). Proven and context of the uranium deposits as well as enhancements in geophysical probable reserves at Cigar are 226.3 million pounds U3O8 from ore at an average grade of 20.67% U3O8. Construction at Cigar Lake, which began technologies.

About 40 companies are currently exploring the Athabasca Basin or ground January 2005 and was expected to take 27 months to complete, was set back immediately adjacent to it. This activity ranges from grassroots exploration to by two water influx events in 2006. The second of these, in October 2006, prefeasibility-stage projects. Large exploration programs include those of resulted in flooding of the mine’s underground workings. Cameco, the operator, producers Cameco Corporation, AREVA Resources Canada Inc. and Denison has developed and started to implement a remediation plan for Cigar Lake; Mines Corp. as well as junior UEX Corporation. Of particular note are the production is now anticipated in 2011.After production commences, it will take exploration successes at the Kianna and Anne deposits of the Shea Creek about three years to ramp up to an expected full production of 18 million uranium project (AREVA, 63.25 per cent; UEX Corporation, 36.75 per cent) south pounds U3O8 per year. of Cluff Lake. At the Kianna deposit, multiple zones of high-grade uranium have At the Midwest project (AREVA, 69.16 per cent; Denison, 25.17 per cent; been discovered at depths from 665 to 917 metres in sandstone above the OURD, 5.67 per cent), AREVA, the project operator, submitted a project unconformity, at the unconformity (713 to 758 metres) and in basement rocks. description to the regulatory authorities in December 2005. Providing all of the 38 | CIM Magazine | Vol. 2, No. 8

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necessary permits are received, work on the proposed open pit mine could commence in 2008 with production starting in 2009. The ore will be milled at the nearby McClean Lake mill. Proven plus probable reserves for the Midwest deposit are 26.7 million pounds U3O8 from ore at an average grade of 6.05% U3O8. The Midwest ore also contains 4.37% Ni and 0.34% Co. Three other uranium deposits are currently the subject of feasibility studies: Millenium, West Bear and Raven-Horseshoe.

Diamonds In 2007, spending for diamond exploration is forecasted to be about $90 million, down slightly from actual total expenditures of $99 million in 2006.

Most of the 2007 expenditures are targeted at two advanced-stage exploration projects underway in the Fort à la Corne forest 60 kilometres east of Prince Albert.

Shore Gold Inc.’s Star kimberlite project is the focus of a $60 million prefeasibility study that is moving towards completion. Underground bulk sampling, which recovered almost 70,000 tonnes of kimberlite, yielding over 10,000 carats of diamonds, and an extensive large-diameter (1.2 metres) drilling program, are providing the information required to complete a NI 43101 compliant mineral resource calculation. The four largest stones recovered from the Star Kimberlite weighed 49.50, 22.56, 19.67 and 19.58 carats. Shore’s

These expenditures

In the Candle Lake area, Great Western Diamond Corporation is currently awaiting results from the mini-bulk sampling test conducted on its C29/30 kimberlites last winter. The results of this sampling program will help chart the future of the Candle Lake project for Vaaldiam Resources Ltd. who are anticipating closing their takeover of Great Western Diamonds in November.

Several other companies are actively engaged in diamond exploration at various places throughout both southern and northern Saskatchewan. These programs are mostly at the grassroots stage and include indicator mineral sampling and geophysical surveys; some drill programs are also underway.

Although some companies who have dispositions in Saskatchewan have shifted their focus to more advanced-stage projects in Nunavut and the Northwest Territories, the interest in Saskatchewan has not declined. The amount of land under disposition for diamond exploration has continued to increase, not only in the Fort à la Corne region, but in several other areas in the province.

Gold In 2007, gold exploration expenditures are estimated to total $19.5 million, compared to actual expenditures of $13.8 million in 2006. These expenditures reflect a continued upward trend in the price of this precious metal, which was at about US$765 per ounce of gold in mid-October. Although there is some work underway in the Goldfields area near Uranium City, most exploration is in the La Ronge and Glennie domains, which form a portion of the Reindeer Zone of the Trans Hudson Orogen. Both domains contain several gold showings, including the Seabee Mine, Saskatchewan’s only active primary gold producer, in the Glennie Domain, and some former producing mines in the La Ronge Domain.

In June 2007, GLR Resources Inc. released the results of the final feasibility study, completed by Bikerman Engineering and Technology Associates Inc. for its Goldfields project near Uranium City. For the Box deposit, proven and probable reserves were estimated at 10,997,000 tonnes containing 601,007 oz Au and 559,000 oz of recoverable Au. At an average mining rate of 1,800,000 Mt per year, with estimated average annual production of 90,000 oz Au, it is estimated that the mine life will be six years.

Total cash costs have been estimated at US$373.55 per oz Au. Measured and indicated resources of 289,000 oz Au in the Athona deposit could extend the life of the Goldfields project by an additional three years. Further work is underway to convert this resource to a reserve and possibly define additional resources in the deeper parts of the Box and Athona deposits. GLR is anticipating receiving its environmental permitting by the end of 2007; as a part of this process, the company has applied to increase the mill throughput from 2,000 to 5,000 tonnes per day.

In the La Ronge Domain, Golden Band Resources Inc. (Golden Band) continued exploration on its 750 square kilometres of dispositions which include 11 gold deposits, four former producing gold mines and a permitted mill. In the Greater Waddy Lake area, Golden Band has a cumulative defined measured and indicated resource of more than 724,000 oz Au in four of the company’s properties. The Bingo deposit near the Churchill River is estimated to contain an indicated mineral resource of 22,900 tonnes grading 13.8 grams per tonne Au, at a cut-off of 5 grams per tonne Au, over a minimum width of 1.3 metres. An additional 136,500 tonnes averaging 12.74 grams per tonne Au is classified as an inferred resource. The company

reflect a continued upward trend in the price of this precious metal (gold) current geologic model, which is supported by nearly 19 kilometres of diamond drilling, suggests that the Star kimberlite consists of an estimated 276 Mt of kimberlite. Five kimberlite units are distinguished: Cantuar, Pense, Early Joli Fou, Mid Joli Fou and Late Joli Fou. The Early Joli Fou kimberlite, which has the highest grade of all the phases, consists of two main units, pyroclastic kimberlite and kimberlitic breccia, and composes about 60 per cent of the Star body. Shore has reported a modelled value of US$130 per carat for a 4,991.68 carat parcel of diamonds from a composite sample of the Early Joli Fou kimberlite that was assumed to be composed of 70 per cent pyroclastic kimberlite and 30 per cent kimberlitic breccia. Shore is also undertaking extensive engineering and environmental studies and hopes to progress the Star project to a mining stage by 2012.

The other significant diamond exploration program is that of the Fort à la Corne Joint Venture (FALCjv) in which Shore is the operator with a 60 per cent interest and Newmont Mining Corporation of Canada has a 40 per cent interest.

The FALCjv’s mineral disposition holdings include 52 drill-confirmed kimberlite bodies in the main Fort à la Corne kimberlite cluster and 11 drill-confirmed kimberlites in a satellite cluster 25 kilometres to the northeast. Many of the kimberlites in the Fort à la Corne kimberlite field are volumetrically among the largest in the world. The FALCjv is undertaking a $66.5 million accelerated exploration and evaluation program of the Star West part of the Star kimberlite and a seven kilometre long cluster of eight kimberlites, referred to as the Orion Cluster, which lies immediately northwest of the Star kimberlite. The focus of this program is the southwest part of the Orion Cluster, where work is underway to sink a shaft in preparation for collecting an underground bulk sample. The purpose of this shaft project, which is budgeted at $12 million, is to collect enough kimberlite for a realistic grade and diamond evaluation.

40 | CIM Magazine | Vol. 2, No. 8

has received a positive scoping study for its La Ronge gold project operating plan, based on potentially recoverable resources from the Komis, EP and Bingo deposits, and using the Jolu mill operating at a rate of 700 tonnes per day. In 2007, in addition to preparing for underground exploration on the Bingo deposit, the company was undertaking a major drill program to update resource estimates and test other targets.

In the vicinity of the Seabee Mine, Claude Resources Inc.undertook a variety of exploration programs at its various projects. The main components of this work were underground bulk sampling at its Porky West and Santoy 7 deposits, as well as definition drilling at Santoy 7 and 8 deposits. The company has reported an inferred mineral resource of 1,110,000 tonnes of 6.53 grams per tonne (top cut of 30 grams per tonne) for the Santoy 7 and 8 zones.

In 2006, the Seabee Mine, which is located in the Glennie Domain and is Saskatchewan’s sole producing gold mine, yielded 47,400 oz Au compared to 44,600 oz Au in 2005 and 40,900 oz Au in 2004. Production during the last quarter of 2006 was negatively impacted by the milling of ore from the Pork West bulk sample program. The company has also embarked on a plan to undertake in excess of 50,000 metres of underground drilling to define new resources to replace those being mined. During the first half of 2006, the Seabee mill processed 86,500 tonnes of ore at an average grade of 5.63 grams per tonne Au, which yielded 14,900 oz Au. This excluded production from the milling of a bulk sample from the Santoy 7 deposit which was completed on April 10. For the third quarter of 2007, Claude reported production of 15,091 ounces of gold from the Seabee Mine and the Santoy 7 project. In July 2007, Claude Resources updated its proven and probable reserves at the Seabee Mine. The updated mineral reserves total 802,600

tonnes, grading 6.94 grams per tonne and containing an estimated 179,100 oz Au.

Base metals In 2007, spending on exploration for base metals is expected to be $16 million, a significant rise over actual expenditures of $3.9 million in 2006.

Although much of this activity is focused on the area west of Flin Flon, there is also base metal exploration underway in the Brabant Lake area, the Wollaston Domain and north of Stony Rapids in the Axis Lake area. There was no base metal production in Saskatchewan in 2007.

West of Flin Flon, Foran Mining Corporation (Foran) and Copper Reef Mines Ltd. are advancing their McIlvenna Bay project. In the fall of 2006, Foran, the operator, released a NI 43-101 compliant technical report for the project which defined an indicated resource of 6,671,000 tonnes at a grade of 0.87% Cu, 6.51% Zn and 26.0 grams per tonne Ag and an inferred resource of 6,000,000 tonnes at a grade of 0.83% Cu, 5.89% Zn and 24.8 grams per tonne Ag. In April, Foran announced that it was commencing a drilling program at the McIlvenna deposit as a prelude to updating the resource calculation and to undertaking a preliminary scoping study. Foran also announced that it had completed at VTEM survey of the nearby Bigstone, Balsam and Hanson Lake properties.

Also west of Flin Flon, Murgor Resources staked additional claims adjacent to the Fon and Tyr properties, which it is earning a 100 per cent interest in under the terms of an agreement signed with HudBay Minerals Inc. in 2006. The 2007 exploration program on these properties included line cutting, airborne and ground magnetic and electromagnetic surveys. At the Fon property, Murgor also completed a 12-hole drilling program to confirm

December 2007 / January 2008 | 41

historical data and verify the continuity of mineralization. Murgor has also reported a NI 43-101 compliant inferred resource estimate for the Fon deposit of 5,007,888 tonnes at 3.73% Zn, 0.25% Cu and 0.35 ounces per tonne Ag (with a 1% Zn cutoff). Early in 2008 Murgor is planning additional drilling of the Fon deposit to upgrade the resource to the indicated and measured categories.

In June, at its polymetallic Brabant Lake Property, Manicouagan Minerals Inc. (Manicouagan) commenced a Phase 2 drilling program comprised of 30 to 40 holes totalling 12,000 to 15,000 metres. A NI 43-101 compliant technical report prepared by MPH Consulting Ltd. for Manicouagan, reported an inferred resource of 4,858,000 tonnes grading 5.19% zinc, 0.57% copper, 0.28% lead, 22.59 grams per tonne silver and 0.22 grams per tonne gold.

In the Wollaston Domain, Wildcat Exploration Ltd. continued its exploration in the Sito Lake area and identified several new Zn-Pb-Ag anomalies in a large Mobile Metal Ion soil geochemisty survey.

North of Stony Rapids, on its Fond du Lac property, Pure Nickel Inc. completed 19 diamond drill holes totalling 3,127 metres. This program tested an area of known mineralization on the Rea Lake mineralized horizon, an eastwest trending Ni-Cu sulphide horizon 600 metres to the south of, and a possible extension to, the Axis Lake East Zone horizon. The 2007 drill program established that this mineralized horizon has a strike length of at least 3 kilometres, a shallow 25 to 40 degree southerly dip and a variable thickness from east to west. The Fond du Lac property contains a number of Cu–Ni occurrences including the 2.5 kilometres long Axis Lake horizon. The Axis Lake “East Zone” contains a non-NI 43-101 compliant estimated resource of 3,400,000 tonnes of 0.66% Ni, 0.60% Cu and 0.15% Co.

Industrial minerals It is estimated that about $21.1 million will be spent on exploring for industrial minerals in Saskatchewan in 2007. Although most of these expenditures will be focused on potash, there will also be some exploration for kaolin and rare earth elements.In 2006, the value of Saskatchewan potash sales from the province’s ten mines was $2.2 million, which accounted for about 70 per cent of the value of Saskatchewan mineral sales and one-third of global PREngineering1.qxd 11/26/07 3:20 PM Page 1 sodium Other industrial minerals produced included coal, clay, production. sulphate, silica sand, salt and aggregate.

Potash exploration After 25 years of relative inactivity, Saskatchewan is now in the midst of a major potash exploration campaign. From 2005 to 2006 there were five permits for potash exploration issued totalling 149,190 hectares. By midOctober 2007, an additional 43 applications had been received for potash exploration permits totalling 1,469,501 hectares. Also as of mid-October there were 50 active potash dispositions (permits and leases) totalling 1,349,586 hectares. Aside from the three producing companies, there are now 11 different companies involved in potash exploration in Saskatchewan. Of these, the largest number of permits, totalling 667,000 hectares, is held by the BHP Billiton–Prairie Potash joint venture. The focus of its work is the Saturn project in the central part of the province. By mid2007, the company had completed two NI 43-101 technical reports and a 3D seismic survey on the area, to evaluate the potential for developing a new greenfield potash mine. With over 348,000 hectares under disposition and several more applications for permits filed, the private company, Athabasca Potash Inc., has the second largest potash exploration permit holdings. In 2007, Athabasca drilled five potash test wells in its Burr property to explore targets identified during a 2006 2D seismic survey.

Potash Production Since the early 1970s, the potash industry in Saskatchewan has remained relatively unchanged, with eight conventional and two solution potash mines operated by three companies: Potash Corporation of Saskatchewan, the Mosaic Company and Agrium Inc. Production in 2006, at 13.33 Mt of KCl, was curtailed due to protracted negotiations with key Asia markets. Production and sales in 2007 are expected to meet or exceed previous records. In response to a forecasted significant rise in demand for potash, Saskatchewan’s three producers have plans to invest about $1.67 billion over the next three years to further expand production capacity by 4.75 Mt above the current combined capacity of 23.56 Mt KCl.

Other industrial minerals

At its Gollier Creek kaolin project in the Wood Mountain area, Whitemud Resources Inc. estimates that construction of its $47.8 million meta-kaolin processing plant is 85 per cent complete. The company has begun mining kaolin, and stockpiling the ore for the anticipated commissioning of the plant in early 2008.

P.R. ENGINEERING LIMITED North of Uranium City, Great Western Minerals Group Ltd. (GWMG) continued work of its Hoidas Lake • Manufacturers of the BIRDSBORO-BUCHANAN rare earth element project with a winter program line of Jaw Crushers comprising 3,700 metres of drilling. The objectives of • Authorized FLSmidth Repair Center this program were to expand and upgrade the • Authorized Metso Repair Center resource estimate in the down-dip extension of the • Remanufacturer of any make or size of Jaws, Cones, JAK zone; obtain 15 tonnes of unweathered material Gyratory Crushers c/w warranties for pilot plant testing; and to obtain reference material • We buy all types of used crushers and parts for geotechnical testing. In January 2007, GWMG • Complete service and repairs to all Milling Equipment released an update of the original Wardrop • Complete heavy machining and fabricating facilities utilizing Engineering Inc. NI 43-101 compliant resource the latest CNC machine estimate for the JAK Zone. The new estimate, based on tools and CAD/CAM technology.

84 core holes and a 1.5 per cent total REE plus yttrium The Only Blake Crusher Manufacturer to offer a (TREE + Y) cut-off grade, increased the measured and HYDRAULIC TOGGLE indicated resource by 108 per cent to 1,150,000 tonnes 249 Toronto Ave. YOUR CRUSHER Oshawa, Ontario from 553,000 tonnes with a slight increase in grade to Canada L1H 3C2 SPECIALISTS 2.362% TREE + Y from 2.341% TREE + Y. Wardrop has Check out our updated website.

Tel: 905-579-9721 also continued to carry out a preliminary economic SINCE 1965 www.prengineering.com Fax: 905-434-6878 assessment of the property. L

Look how we’ve grown in 42 years

42 | CIM Magazine | Vol. 2, No. 8

Advancing the potential Alberta mineral exploration highlights

by John Jamieson, Roy Eccles and Tanya Matveeva, Alberta Geological Survey Mineral exploration activity in Alberta in 2007 has been focused mainly on the search for diamonds and uranium. To date, numerous kimberlite pipes have been discovered in the province and the elevated price of uranium has increased exploration activity in the Athabasca basin and southern Alberta.

Exploration activity has also been active for magnetite, iron and other base metals. Several companies are bringing their properties to advanced stages of development.

Diamonds Buffalo Head Hills kimberlite field The Buffalo Head Hills kimberlite field consists of 38 kimberlitic occurrences discovered between 1997 and 2003 by Ashton Mining of Canada Inc. In June 2007, Diamondex Resources Ltd. and Shore Gold Inc., with Diamondex appointed operator,announced the acquisition of the interest of Ashton Mining of Canada Inc. (now Stornoway Diamond Corporation) in the Buffalo Hills Project, located in north central Alberta, for a total consideration of $17.5 million.

Diamondex recently announced they had reached an agreement with the Loon River First Nation to explore for diamonds on Loon River First Nation reserve lands. There has been no mention of what Diamondex intends to do with a recent February 2007 bulk samples from the K6, K14 and K91 kimberlites completed by Ashton/Stornoway. Kimberlite K14 Alberta Geological initially yielded 12 cpht from a 479 tonne bulk Survey staff sampling sample and K91 yielded 13 cpht from a 36 tonne ooidal ironstone in sample. the Clear Hills, in Grizzly Diamonds Ltd., who currently holds northwest Alberta. diamond properties in the Buffalo Head Hills, Birch Mountains and Pelican Mountain areas of Alberta that total over three million acres, ground-checked priority anomalies identified from an airborne geophysical survey and identified two high priority drill targets on its Buffalo Head Hills Grand Cub Aidan property.

Finally, Great Western Diamond Corp. acquired the Utikuma West and Peerless Lake properties, in which they collected 134 and 90 till samples, respectively. They base their interest in the area on the proximity to the diamondiferous Buffalo Head Hills field, government kimberlite-indicator mineral surveys that reported G9 garnet, eclogitic garnet and olivine on the property and the presence of drillable geophysical targets with signatures similar to that shown by previously drilled kimberlites in the main part of the Buffalo Head Hills field.

Birch Mountains kimberlite field In northeastern Alberta, the Birch Mountain Kimberlite Field consists of nine kimberlites discovered by Kennecott Canada Exploration Inc.and New Blue Ribbon Resources Inc. between 1998 and 2002. During January and February, 2007, Grizzly Diamonds Ltd. collected a 10.2 tonne mini-bulk sample from the Legend Kimberlite (Birch Mountains field) via thirteen drill holes. During May 2007, the sample was processed at the De Beers Canada dense media

separation plant facility in Grande Prairie, Alberta. In total, three diamonds were recovered from 168.35 kilograms of drill core, including a colourless, twinned octahedron (2.1 mm x 1.58 mm x 1.46 mm).These results correlate with historic results reported by Kennecott Canada.

Other properties In the Calling Lake-Pelican Mountains area of northeast-central Alberta, Grizzly Diamonds Ltd. and partner Stornoway Diamond Corporation have completed anomaly ground checks on the Call of the Wild Diamond Property. Of the 47 priority magnetic targets selected for follow-up exploration from airborne magnetic data, 19 remain priority for ground geophysical surveying and sampling. In addition, Great Western Diamond Corp. collected 158 till samples on its LaBiche and Calling Card properties, located 10 kilometres northeast and 40 kilometres northwest of Calling Lake, respectively.

In the Peace River-Buffalo Head Hills area, Star Uranium Corp. reported microprobe results from 29 till and stream sediment samples are dominated by

kimberlitic olivine grains of similar geochemistry to those associated with the Buffalo Head Hills kimberlite bodies located 70 kilometres to the northeast.

Microprobe analysis also confirms the presence of numerous G9 and rare G10 garnet. They report that the indicator-mineral anomalies appear to define a geographically restricted area of at least two populations and are directly down ice of a cluster of geophysical targets; future drilling is anticipated on the anomaly clusters and other priority targets.

Uranium Southern Alberta Whiskey Gap property — International Ranger Corp. reported results of a water sampling program and drilling program. A total of 26 samples from water wells were collected and assayed for radon, uranium and sulphate.

Based on the location of radon anomalies (up to 5,000 picocuries/l or 185 BQ/L), two drilling programs were planned and carried out. A total of 40 drill holes (12 diamond – NQ diameter, 28 – Reverse Circulation) were drilled in four target areas, to a maximum depth of 150 metres. The strongest radioactivity (up to 640 API units) and the best uranium mineralization was encountered during diamond drilling program on Thomson Ranch. Here, a one-foot sample returned 132 ppm uranium. Uranium anomalies were associated with anomalous values in copper, arsenic, molybdenum and selenium. Based on the drilling results, the company plans to continue drilling in neighbouring areas in September 2007.

Alberta Sun Project — Firestone Ventures and Black Hawk Exploration report a 2,384 line kilometre electromagnetic and magnetic airborne survey over four priority areas near Fort McLeod. TerraNotes Ltd. of Edmonton is carrying out initial analysis of the survey, to be followed by modelling of the dataset, which should delineate high-priority areas for drilling.

surveys was completed during the first few months of 2007. Previous historic exploration includes drill holes that encountered significant mineralization; measured uranium was 108 ppm U3O8 over a short interval. Several other holes encountered 20 to 40 ppm U3O8 over short intervals as well.

Iron In April, 2007, General Properties Ltd. completed the acquisition of Clear Hills Iron Ltd. and their 213,206 hectares of land with 32 metallic and industrial mineral permits in the Clear Hills area of northwestern Alberta. The company conducted a limited drilling and sampling program on the North Rambling Creek Prospect. Results include 15 feet of core, grading 28.74% Fe2O3 and 26.8 feet grading 32.8% Fe2O3. Reconnaissance surface sampling yielded samples that assayed at 44.5% and 46.8 % Fe2O3.The total iron reserves within the Clear Hills are estimated at over one billion tons grading at 32 to 35% Fe. First Coal Corporation has also been actively exploring

Magnetite In southwestern Alberta, Micrex Development Corp. continues the development of its Burmis Magnetite project. Currently, an application is being prepared for a 20,000 tons per year operation, over the first two years, followed by 40,000 tons per year for the remainder of the mine life, which is expected to be ten years. The ore contains 30 to 60% magnetite. Additional hydrothermal-sourced titanium and zirconium minerals may be present in economic quantities as well. The permitting process for the Burmis quarry is ongoing, including discussions with the local communities. Exploration continues in the areas surrounding the Burmis property for other hydrothermal occurrences and Micrex’s current land holdings in the area is in excess of 7,500 hectares.

Northeastern Alberta

Lead and zinc

Rea Uranium Project — Red Dragon Resources drilled 1,903 metres in eight relatively shallow high priority targets in 2007.The project covers 446,330 acres and surrounds AREVA’s Maybelle River uranium deposit.

Alberta Project — CanAlaska Uranium Ltd. completed a preliminary marine seismic survey of all of the Alberta Project area (80 kilometres by 20 kilometres).

The survey crews have also completed detailed shallow single-channel seismic surveys in the broad area surrounding the uranium mineralization at Stewart Island, and the crews identified a series of major structural breaks and offsets in this area. Deep seismic survey data is now being collected to finalize winter drill targets. Data from two MEGATEM EM airborne surveys show multiple geophysical features that appear anomalous to surrounding data sets.

Bonny Fault Uranium property — North American Gem Inc. will investigate zones of historic,high grade surface uranium mineralization,as well as 41 of the highest priority airborne radiometric uranium targets. To date, 276 linear and point-source uranium anomalies have been identified on the Terraquest airborne geophysical block. Many of these uranium anomalies are coincident with either foliation-parallel or major cross-cutting structures. Approximately 15 per cent have been categorized as very high priority targets, characterized by the highest uranium responses coincident with apparent structural controls.

These targets will include ten targets that are located on or near the Bonny Fault or sub-parallel faults, which may have been conduits for uranium-bearing fluids from the now eroded Athabasca sandstones that once overlay the area.

Athabasca South Shore property — Fission Energy Corp. reports that several correlations of magnetic and electromagnetic data were found, along with several basement hosted conductors identified throughout the property.

Several potential kimberlite targets were also identified from the GEOTEM survey. Follow-up ground work over targets identified from the airborne

Star Uranium Corp. has reached an agreement with Ivany Mining Inc., whereby Ivany Mining will earn 100 per cent interest in Star Uranium’s Zama Lake property, in northwest Alberta. This agreement is in response to Star Uranium’s aim of becoming a pure uranium company. The Zama Lake property was initially developed as a kimberlite prospect. However, bulk till sampling by the GSC (Open File 5121) revealed anomalous concentrations of sphalerite and galena grains within the coarse sand fraction. The concentration of sphalerite grains is the highest ever detected in an exploration till sample (>1,000 grains in a 20 kilogram sample) and the mineral grain size, compaction and composition of the till suggest that the source may be within the 93,242 hectare property. The discovery indicates the potential for Mississippi-Valley Type lead-zinc mineralization, similar to the world-class Pine Point deposit, located 330 kilometres northeast in the Northwest Territories. This mineralization was mined by Cominco between 1964 and 1998 and is still an area of active exploration.

The diamond rights to the Zama Lake property will be retained by Star Uranium and included with the company’s other diamond properties in a proposed new company, Star Diamond Corp.

44 | CIM Magazine | Vol. 2, No. 8

Titanium and zirconium Titanium Corporation is continuing its development of recovery of titanium and zirconium minerals from oil sands operations in the Fort McMurray area of northeast Alberta. The oil sands may contain the largest deposit of titanium and zirconium minerals in the world. Titanium Corp is currently operating a pilot research facility and is testing onsite with portable processing facilities.

Titanium Corp is also developing technologies to recover a portion of hydrocarbons from oil sands tailings. L

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daunting terrain and a major tunnel from the headwall of Galore Valley to link up with the road. Galore Creek is the largest bulk mineable copper-gold deposit under development in North America.

In the Toodoggone area, Northgate Minerals

by Brian Grant, Paul Wojdak, John deGrace, Bruce Madu, Dave Grieve, Bruce Northcote Corporation continued production from its 52,000 tonnes and Dave Lefebure, B.C. Ministry of Energy, Mines and Petroleum Resources per day Kemess South porphyry copper-gold deposit. This is one of the largest gold deposits in Canada. With a mill British Columbia continues to be one of the leading jurisdictions for mineral expansion to 49,500 tonnes per day planned for the end of 2008, production at exploration activity and new mine developments.There were over 23 new mine Imperial Metals Corporation’s copper-gold Mount Polley Mine near Likely is development proposals submitted to government for approval in the fall of expected to increase by over 20 per cent. Recent reserve estimates have 2007. Mineral exploration investments are at record levels and expected to extended the mine life to 2015. exceed $300 million, up significantly from 2006. British Columbia produced In the southern Chilcotin, the Prosperity project of Taseko Mines Limited reover $6 billion worth of copper, coal, gold, zinc, molybdenum, silver, lead and entered the Environmental Assessment Act review process. New Gold other metals as well as a growing variety of industrial minerals and structural Incorporated’s New Afton copper-gold project near Kamloops has received its materials in 2006. mine permit and is well into mine development, with plans for underground The province’s industry is internationally recognized for its expertise in block cave mining and a production target of 2009. Nearby, Abacus Mining and mineral exploration and mine development. In addition, it enjoys a Exploration Corporation continued definition drilling at the Ajax West and Ajax demonstrated geological potential for new mineral resources, one of the best East, as well as at the Comet-Davenport and Rainbow deposits. and most advanced geoscience databases internationally, superb digital access Significant other porphyry exploration programs in northwest British to geoscience information, access to an ample supply of low-cost power, good Columbia include the Mitchell zone on the Kerr-Sulphurets property (Seabridge transportation systems and other physical infrastructure and a strategic Gold) and adjacent Snowfield zone (Silver Standard Mines), GJ (Canadian Gold location well positioned to serve fast-growing Asia-Pacific markets.

Hunter), Red Chris (Imperial Metals), Ball Creek (Paget Resources), Bronson Slope (Skyline Gold), Eaglehead (Carmax Explorations), Copper Creek (Firesteel Copper-gold Resources) and Voigtberg (BC Gold).

British Columbia’s mining boom continued with the start of construction, in North of Fort St. James, Serengeti Resources Incorporated continued to summer 2007, of the $2.2 billion Galore Creek copper-gold project. NovaGold’s have encouraging drill results that led to a step-out program designed to mammoth project requires a 130 kilometre access road and powerline through delineate a potential ore body on its Kwanika copper-gold-silver property.

Terrane Metals Corporation’s Mount Milligan copper-gold porphyry deposit has measured and indicated resources of 417.1 Mt grading 0.21% copper and 0.41 grams per tonne gold.

Feasibility studies are expected to be completed in early 2008.

Other companies chasing copper-gold mineralization in the area are Teck Cominco Limited (Jan/Tam/Misty), High Ridge Resources Limited (Chuchi), Solomon Resources Limited (COL-Magnet) and Geoinformatics Exploration Incorporated (Takla-Redton and Mesilinka properties).

Activity in the McKenziePrince George-Williams Lake region was spurred in part by Geoscience BC’s $5 million QUEST (Quesnellia Exploration Strategy) program of grassroots geophysical and geochemical Helicopter-supported exploration on the New Moon property. exploration in an area of Photo courtesy of P. Wojdak

The boom continues

Mining and exploration stays hot in B.C.

extensive overburden. South of Horsefly, Fjordland Exploration Incorporated continued geophysical exploration and drilling on its Woodjam property.

Farther north near Quesnel, Richfield Ventures Limited will begin a drilling program at its Mouse Mountain porphyry copper property upon completion of a planned merger with Oak Point Incorporated. Other companies with major exploration projects for copper and gold in the Cariboo region are Valley High Ventures Limited (Lloyd-Nordic), Copper Ridge Explorations Incorporated (Copper Ace) and Novagold Resources Limited (Shiko).

Near Taseko Lakes, the Taseko (Galore Resources Incorporated), Taseko Project (Great Quest Metals Limited), Tasco (Hi Ho Silver Resources Incorporated) and Newmac (Newmac Resources Incorporated) copper projects all had substantial exploration activity. In the southern Cariboo, GWR Resources Incorporated drilled and trenched the Lac La Hache project.

The Princeton area was particularly active, with Copper Mountain Mining Corporation conducting a very large drill campaign at the Copper Mountain Project aimed at confirming and expanding new resources at the former Similco mine. Nearby, significant programs were undertaken at the Axe (Weststar Resources Corporation) and Princeton projects (Anglo-Canadian Uranium Corporation). Imperial Metals Corporation is following up last year’s positive results at Giant Copper, east of Hope, with a drill program that is expected to continue into the fall. The target is the AM zone, a mineralized breccia pipe that the company is testing at depth.

Molybdenum The buzz is definitely back for molybdenum.The Endako mine, which barely avoided closure six years ago, is now a highly profitable operation and the

owner, Thompson Creek Mining, is considering doubling the current mining and milling rate. An expanded Endako mill could also eventually treat highgrade molybdenum ore from the Davidson deposit near Smithers (also owned

by Thompson Creek). Leeward Capital Corporation drilled on nearby Nithi Mountain, as did TTM Resources Incorporated at the Chu property.

The Kootenay’s first metal mine since 2001 began production in the fourth quarter — Roca Mining Incorporated’s MAX molybdenum mine near Trout Lake. The MAX, an underground mine, plans to produce at a rate of 72,000 tonnes per year.

The Ruby Creek project (Adanac Molybdenum) near Atlin received an Environmental Assessment certificate in September 2007. Within days, the company announced the start of construction of an open pit mine and mill estimated to cost $640 million. Other advanced molybdenum projects in the northwest are Storie (Columbia Yukon Explorations), Lucky Ship (New Cantech Ventures), Ajax (Tenajon Resources) and Red Bird (Torch River Resources).

Eagle Plains Resources Limited drilled the Sphinx molybdenum project (inferred resource of just over 62 Mt grading 0.035% Mo). East of Summerland, in the Okanagan, partners Goldrea Resources Corporation and Molycor Gold Corporation drilled the Crow Rea property to better define near-surface molybdenum mineralization in anticipation of bulk sampling.

Copper-molybdenum High metal prices are also benefiting some of the older mines in the province. Taseko Mines Limited has added 116 Mt of proven and probable reserves to 348 Mt of 0.31% copper and 0.009% molybdenum for its Gibraltar Mine north of Williams Lake. These new reserves can extend the mine life by 17

December 2007 / January 2008 | 47

Drilling at Apple Bay chalky geyserite quarry northern Vancouver Island. Photo courtesy of B. Northcote molybdenum and tungsten potential, with combined measured and indicated resources of 2.51 Mt at 0.37% tungsten in the Emerald Mine, calculated in November 2006.

The Findlay project of Eagle Plains Resources Limited explored sedex-style lead-zinc mineralization in the Cranbrook region. On the coast, Grande Portage Resources Limited carried out a large drill program to test the Merry Widow iron skarn for precious metal and copper values. Similarly, Prophecy Resource Corporation is expected to follow up promising intersections drilled earlier this year at the Okeover copper-molybdenum porphyry project north of Powell River. years. The Highland Valley copper-molybdenum mine of Teck Cominco Limited/Highmont Mining Company Limited is continuing plans to extend mine life to 2019, with the Valley pit expansion, crusher moves and equipment purchases. Huckleberry Mines has been able to extend its mine life as well (Imperial Metals Corporation and Japanese Consortium).

A major drilling program for copper and molybdenum were conducted on the Berg (Terrane Metals). Drilling was also conducted at Big Onion (Eagle Peak Resources), Seel (Gold Reach Resources), Lennac Lake (Dentonia Resources), Louise Lake (North American Gem) and Coles Creek (Callinan Mines). Pacific Booker reactivated an Environmental Assessment of the Morrison project.

Copper Fox Metals collected engineering and environmental data required to complete an Environmental Assessment of the Schaft Creek project.

Over the Guichon Batholith, near Highland Valley Copper, programs for porphyry-style mineralization were undertaken at the Rateria (Happy Creek Minerals Limited), Tyner Lake (TNR Gold Corporation) and Dot properties (Alhambra Resources).

Polymetallic The precious metal-rich Eskay Creek mine (Barrick Gold) is expected to close in 2008. Several companies explored for other polymetallic deposits in the region, including the nearby Corey property (Kenrich-Eskay Mining), and tested for an extension of the Double Ed deposit in the historic Anyox copper camp. The southwest’s long-lived volcanic massive sulphide camp at Myra Falls (Breakwater Resources Limited) continued to produce copper, zinc, gold and silver.

Redfern Resources Limited developed a novel river-based access plan for its proposed Tulsequah Chief copper-zinc-silver-gold mine, while continuing drilling.Spurred by a strong feasibility report,Western Keltic Mines is advancing its Kutcho Creek copper-zinc project.

Ecstall Mining Corporation continued drilling to define its Akie sediment-hosted lead-zinc-silver deposit in the Muskwa Range, northeast of Williston Lake.

North of Revelstoke, Selkirk Metals Corporation continued drilling on its Ruddock Creek zinc-lead project and began a decline to facilitate underground drilling of the E-Zone. Consolidated Venturex Holdings Limited drilled at the LJ copper-zinc-lead property and International Bethlehem Mining Corporation tested airborne geophysical anomalies on the Rain zinclead-silver-copper property.

East of Clearwater, the Harper Creek project of Yellowhead Mining Incorporated was the subject of a large program aimed at expanding the known stratiform, disseminated copper resource.

Carbonate-hosted zinc-lead mineralization in the Kootenay Arc was the target of drilling by ReMac Zinc Corporation on its ReMac project east of Trail near the Reeves-McDonald and Annex mines.

The Jersey-Emerald project near Salmo was the site of extensive drilling by Sultan Minerals Incorporated. Recent exploration by Sultan has focused on 48 | CIM Magazine | Vol. 2, No. 8

Gold In 2007, Merit Mining Corporation dewatered and rehabilitated the underground workings on the Lexington-Grenoble gold-copper deposit, located west of Grand Forks. The company’s focus was on extraction of a 10,000 tonne bulk sample and building a 200 tonnes per day mill. Cross Lake Minerals Limited’s underground QR Mine, accessed via Quesnel, plans to start producing gold in late 2007. Through an active exploration program, Cross Lake seeks to extend the mine life significantly beyond the current two-year life based on proven reserves.

A resurgence in activity, not seen in more than a decade, returned to the Golden Triangle (the Stewart-Iskut district), with some 14 drilling campaigns.

For example, the Bravo Venture Group targeted a quartz-chalcopyrite vein and breccia zone. Epithermal gold-silver systems were targeted at Treaty Creek (American Creek Resources) and Dilworth (Ascot Resources).

In the Toodoggone area, Sable Resources Limited’s Shasta epithermal goldsilver mine is being explored underground and by surface drilling, with the aim of bringing it back into production, using the nearby Baker Mill for processing.

Christopher James Gold Corporation completed an extensive drill program on gold targets at its Ranch Project, focusing on the Bonanza and Mickey Zones.

Alpha Gold Corporation continued geophysical and geochemical exploration and drilling to evaluate the geologically complex Lustdust gold property north of Fort St. James.

Extensive drilling continued at Skygold Ventures Limited’s Spanish Mountain sediment-hosted copper-gold bearing vein deposit just east of Likely, and the deposit remains open in all directions. West of Horsefly, Hawthorne Gold Corporation is rehabilitating underground exploration workings and undertaking surface drilling at its Frasergold gold-bearing quartz vein property.

The Blackdome mine (closed) near Clinton and the Elizabeth property of JPacific Gold Incorporated were drilled this year with a goal of reopening the mine and augmenting production with ore from the Elizabeth property.

Nearby at the Stirrup project, Anglo-Canadian Uranium Corporation drilled oxidized shear zones. Ongoing, positive results are reported from Bralorne Gold Mines Limited’s drilling within the King-Bralorne gap at the Bralorne Mine project.

The Spences Bridge gold belt near Ashcroft continues to be active, with numerous companies exploring for epithermal gold targets, including Consolidated Spire Ventures Limited (Prospect Valley), Strongbow Exploration Incorporated (Ponderosa, Skoonka Creek) and Anglo-Canadian Uranium Corporation (Skoonka). At the Elk Project near Peachland, Almaden Minerals Limited conducted drilling and baseline studies to complete a prefeasibility study on the high-grade gold veins.

Astral Mining Corporation drilling on the large Jumping Josephine property, west of Castlegar, targeted gold-bearing quartz stockworks discovered in 2006 by trenching. West High Yield (W.H.Y.) Resources Limited carried out a third major phase of diamond drilling on its Rossland gold project.

Coal Late in 2006, Northern Energy and Mining Incorporated (20 per cent), Hillsborough Resources Limited (14 per cent) and Anglo Coal Canada Limited (66 per cent) jointly created a new entity, the Peace River Coal Limited Partnership.

The partnership manages the northeast British Columbia coal assets formerly assigned to the companies separately.Peace River Coal (PRC) operates the openpit Trend Mine and Western Canadian Coal (WCC) operates the Wolverine (Perry Creek) open pit, producing 2.4 Mt per year of metallurgical coal. Exploration drilling is underway aimed at defining the nearby EB deposit, which potentially could increase Wolverine’s saleable export coal. In January 2007, WCC began production from its Brule Mine north of Tumbler Ridge, with production designed for 800,000 tonnes per year of pulverized coal injection (PCI) coal.

Opening of this mine followed closure of WCC’s nearby Dillon Mine in September 2006.In June 2007,WCC acquired the Willow Creek Mine located near Chetwynd after closure by Pine Valley Mining Corporation the previous year. WCC hopes to put this small mine back into production in 2008.

In the southeast, the Fording River, Elkview, Greenhills, Line Creek and Coal Mountain mines, of the Elk Valley Coal Corporation, continued to rank number two for exporting high-quality coking coals around the globe. Elk Valley Coal Corporation undertook major drilling programs on Wheeler Ridge (Coal Mountain Operations), Mt. Michael and Saddle (Line Creek Operations), and Castle Mountain and Bare Mountain (Fording River Operations).

Quinsam Coal (Hillsborough Resources Limited) produces thermal coal from its mine on Vancouver Island.

First Coal was active in drilling on its South Central (Goodrich) metallurgical coal property south of the Willow Creek Mine. Drilling was planned on the

Belcourt and Adams/Gething prospects of Canadian Dehua International Mines Group, south of Tumbler Ridge and northwest of Chetwynd, respectively.

Industrial minerals East of Williston Lake, Aley Corporation has been drilling to outline a carbonatite-hosted niobium deposit.

Eagle Plains Resources Limited drilled the Ice River igneous complex in the Rocky Mountains, southeast of Golden, looking for base and precious metals, rare earth elements and sodalite. Commerce Resources Corporation is drilling the Upper Fir tantalum-niobium property and undertaking baseline studies.

Graymont Western Canada Incorporated is proposing development of a high-purity limestone deposit in the Prince George region to produce lime. The Coyote Creek gypsum project near Canal Flats was drilled by CGC Incorporated.

Aggregate The southwest region is host to Canada’s two largest quarries, and five of the top 25 aggregate operations. Texada Quarrying Limited (Lafarge) produces nearly 6 Mt annually. Most of this is limestone, used as both construction aggregate and as feed for Lower Mainland cement plants. The Sechelt pit of Construction Aggregates Limited (Lehigh) is targeting six million tonnes of sand and gravel production in 2007. Construction Aggregates’ Producer’s Pit and Mainland Sand and Gravel Limited’s Cox Station Quarry each produce in excess of 2 Mt annually and the Earle Creek Pit (Lafarge) produces more than 1 Mt annually. Orca Sand & Gravel, operated by Polaris Minerals Corporation, began shipping in 2007 and plans an eventual yearly production of 6 Mt. L

December 2007 / January 2008 | 49

Ketza River gold deposit (measured 1,410,000 tonnes of 3.54 grams per tonne Au, indicated 7,130,000 tonnes of 2.60 grams per tonne Au, inferred 14,580,000 tonnes of 2.25 grams per tonne Au).

Exploration has been extremely successful in expanding known deposits such as the Area 2 deposit discovered at the Minto Mine in 2006, as well as the discovery of new areas containing ore grade intersections such as Area 118 (10.7 metres grading 1.78% Cu, 0.77 grams per tonne

by Mike Burke, Yukon Geological Survey Au) and the Airstrip (3.1 metres grading 5.75% Cu,1.77 grams per tonne Au). At the Selwyn Project of Selwyn Resources the company conducted a massive $25 million exploration program aimed at further defining and The Yukon mineral industry is booming. Mining has returned to the Yukon expanding the giant zinc-lead deposit (indicated 86.6 Mt grading 4.93% Zn,1.73% with the Minto copper-gold-silver mine of Sherwood Copper Corporation that Pb, inferred 215.4 Mt grading 4.71% Zn, 1.48% Pb). Exploration at Selwyn is reached commercial production on October 1. Placer Mining continues to be a upgrading and expanding the known resources in addition to understanding the steady producer of gold in the territory with production in 2007 predicted to distribution of grade in the deposit and targeting higher grade resources. The increase slightly over 2006 production of 58,294 crude ounces of gold.And there’s highest grade intersection ever drilled at Selwyn occurred this year in the Don lots more.

Valley area where DON-074 intersected 4.3 metres grading 35.97% Zn 16.01% Pb. Mine development including road construction and site development has Alexco Resource Corp produced some spectacular results from their exploration begun at the Wolverine zinc-copper-lead-silver-gold deposit of Yukon Zinc program in the Keno Hill Silver District.

Alexco directed the bulk of their efforts at Corporation. Final development of the deposit will begin once the project the Bellekeno mine and has retained SRK Consulting to produce a NI 43-101 financing agreement is finalized. compliant resource.Drilling intersected values up to 3.3 kilograms per tonne silver, Exploration success at the Minto Mine has fast-tracked additional 0.718 grams per tonne gold, 59.7% lead and 5.7% zinc over 9.64 metres in hole development. A Phase 2 mill expansion that is near completion will increase K07-101.

Alexco explored other historical mines in the district including the Lucky capacity at the operation from 1,563 to 2,400 tonnes per day.A Phase 3 expansion that would bring capacity to 3,500 tonnes per day is the subject of an independent Queen mine where drills intersected mineralization consisting of native silver prefeasibility study. Exploration expenditures are estimated at $140 million with seams,silver wire and wads,and disseminated silver sulphosalts,with minor galena over 150 exploration projects, including 25 with anticipated costs over $1 million and sphalerite. Hole K07-114 intersected 1.12 metres of core that assayed 17.4 kilograms per tonne silver,0.201 grams per tonne gold,6.37% lead and 1.36% zinc. and 90 exceeding $100,000. The number of projects that involve drilling is 66.

The Yukon is well known for its excellent mineral potential, wide variety of The Carmacks Copper Project of Western Copper Corporation completed a positive feasibility study in the spring of 2007 and has initiated the permitting mineral deposits and commodities. Recent exploration activities have focused process. Exploration on the project was directed at further defining and on copper, zinc-lead, gold, silver, tungsten, molybdenum, nickel and uranium. expanding the known measured and indicated oxide resource of 9.983 Mt of New discoveries have been made this year in the Yukon however the backlog in 1.16% Cu in addition to testing newly discovered areas of mineralization on the assay labs has slowed the release of this information. A complete exploration property. Other projects which continued mineral exploration, geotechnical, summary will be available in the new year on the Yukon Geological Survey website (www.geology.gov.yk.ca). The website provides access to engineering and environmental studies in support of feasibility Yukon publications, geological data and spatial data available studies include Sherwood Copper’s newly discovered Area 2 Left, Minto Mine. through the Map Gallery interactive map server. deposit at the Minto mine (measured and indicated 7.6 Mt grading Right, a photo of The prospecting community and grassroots exploration 1.26% Cu, 0.48 grams per tonne Au), Tagish Lake Gold’s Skukum wire silver in drill programs continue to be strong with support from the Yukon Creek gold-silver deposit (measured and indicated 800,000 tonnes core from the of 6.78 grams per tonne gold and 248 grams per tonne silver), Lucky Queen Mine Mining Incentives Program. The overall increase in mine development and all phases of mineral exploration bodes well for North American Tungsten’s MacTung deposit (indicated and of Alexco the future of the Yukon mining industry. L inferred 44.3 Mt grading 0.85% WO3), and Yukon-Nevada Gold’s Resources.

Yukon mining and exploration overview

50 | CIM Magazine | Vol. 2, No. 8

Gearing up for a northern renaissance in NWT The Northwest Territories remains as busy a place as ever for the mining and mineral exploration industries. Diamonds continue to shine, but gold and base metals look ready for a northern renaissance in the near future as high commodity prices and world shortages continue to drive the mineral resource industry.

North American Tungsten’s CanTung Mine produced 80,357 metric tonne units (mtus) of tungsten for the quarter ending June 30. Mine staff are currently reviewing additional pillars and smaller bodies of mineralization to determine if they can be mined economically.

Wardrop Engineering Inc. has been engaged to conduct a full feasibility study of North American Tungsten’s 100%-owned MacTung deposit in the Mackenzie Mountains. Results from the study are expected in nine to twelve months.

MacTung has indicated resources of 33 million tons grading 0.88% WO3, making it one of the largest undeveloped high-grade tungsten-skarn deposits in the world.

Mining

Exploration

The Ekati Mine (BHP Billiton Diamonds Inc. – 80%; C. Fipke – 10%; S. Blusson – 10%) continues to deliver, with production totals of 3,224,000 carats for the year ended June 30, 2007. The Beartooth open pit is in production and sending to the plant. As well, the Panda Underground Project is now in full production.

The Koala Underground Project continues to advance on schedule and is expected to deliver a total of 10.6 million tonnes of ore and recover 9.8 million carats of high-quality diamonds over an 11-year period. Production is expected to begin in December 2007.

In May 2007, Ricus Grimbeek was appointed as the new president and COO at Ekati Diamond Mine.

Diavik Diamond Mine (Diavik) is an unincorporated joint venture between Diavik Diamond Mines Inc. (60%) and Aber Diamond Corporation (40%).

Diamond production for the quarter ended September 30, 2007 was 3.12 million carats, grading 4.76 carats per tonne. Production from January to the end of October was 9 million carats.

Production is currently from the open pit of the A154 South kimberlite pipe, and production in the A418 pit is expected to begin by the end of 2007 as crews are currently stripping the overburden to expose the pipe for mining.

Work continued on the underground declines, with the A21 and A418 pipes being reached. The development of the A21 pipe was deferred pending further engineering studies and economic evaluations. The feasibility of the underground development of the A418 and A154 pipes was completed and submitted for internal funding.

In September 2007, Rio Tinto announced the appointment of Kim Truter as Diavik Diamond Mines Inc.’s new president and COO. De Beers Canada’s Snap Lake Diamond Mine went into production this fall.

The first diamonds were produced in October 2007 and the first sale of rough diamonds will follow in January 2008.

This past year was a flurry of construction as work was done on the underground crushing chamber, installing the underground crusher and completing the installation of all buildings and systems. The mine will ramp up production over the winter and is expected to attain its average planned production rate of 3,150 tonnes per day by mid-2008. The Snap Lake Mine will employ 500 people during full production and produce 1.5 million carats per year. The life of the mine is estimated at 20 years.

Diamonds

by Ben Borkovic, mineral development advisor, Industry Tourism and Investment, Government of the Northwest

Gahcho Kue Project is a De Beers Canada Inc. (51%) and Mountain Province Diamonds (49%) joint venture. Work for 2007 includes an 8,400-metre drill program to define the Tuzo pipe and a review of the 2005 prefeasibility study.

Also, five to seven holes are being drilled over 1,500 meters to recover

December 2007 / January 2008 | 51

approximately 60 tonnes of material and about 100 carats of diamonds from the 5034 pipe. This bulk sample will be used to confirm the micro to macro relationships on the north lobe of the pipe.

The Gahcho Kue Project is currently under Environmental Impact Review by a panel established by the Mackenzie Valley Environmental Impact Review Board. De Beers is expected to release an Environmental Impact Statement for the project in the near future.

Diamondex Resources Ltd.’s 100%-owned Lena West Project totals 3.35 million acres and is centered approximately 900 kilometres northwest of Yellowknife. The 2007 exploration plan includes up to 700 follow-up heavy mineral concentrate samples, approximately 10,000 line-kilometres of airborne geophysics surveying and 1,500 to 2,000 metres of diamond drill testing of priority targets. Diamondex has purchased Trigon Uranium Corp.’s diamond properties.

Diamonds North Resources Ltd. continued to explore their Hepburn Project, located 300 kilometres north of Yellowknife, which has potential for both diamondiferous kimberlites and uranium. In the summer of 2007, 21 geophysical targets were drill tested, but no kimberlite was intersected.As well, detailed geophysics surveys are being conducted on the remainder of the property.

Peregrine Diamonds Ltd. concluded a bulk sample program on the DO-27 pipe in June 2007.A final total of 2,651 wet tonnes of kimberlite were extracted with an average recovered grade of 0.89 carats per tonne. In total, 1,724.57 carats were recovered. The diamonds are awaiting shipment to Antwerp, Belgium, for valuation by independent valuators.

Patrician Diamonds’ Dismal Lake West uranium property is located 400 kilometres northeast of Yellowknife in the Hornby Bay Basin, near the eastern shores of Great Bear Lake. Triex Minerals Corporation conducted a seven-hole drilling program on the property this summer.

Patrician’s Sahtu Project is focused around the Doctor Lake property, located 60 kilometres north of Norman Wells. Work on the Sahtu Project has comprised airborne magnetic surveys and auger drilling. There are several magnetic anomalies on the property and Patrician will now be moving forward with the permitting process in order to begin drilling in 2008.

Sanatana Diamonds discovered kimberlite on their Greenhorn property in the northwestern NWT. The company intends to take 750 to 1,000 kilograms of split NQ size core from this kimberlite for caustic fusion analysis of the microdiamond content. Drilling will also help determine the true size of the target and any geological complexity. Heavy mineral concentrate will also be taken from the core to verify that the indicator chemistry matches that in the indicator train.

Snowfield Development Corp.’s Ticho Project is located on the north shore of Great Slave Lake, approximately 55 kilometres southeast of Yellowknife, and includes the diamondiferous Mud Lake kimberlite. The project consists of an approximately 16,000 hectare (40,000 acres) claim group. Snowfield has two diamond drills committed to the Ticho Project, where drilling will continue on an ongoing basis through the remainder of 2007 and into 2008.

Snowfield announced in September that it had completed the crushing and bagging of a 500-tonne bulk sample from its Mud Lake kimberlite discovery.

The crushed kimberlite is now being shipped to the De Beers Canada Exploration Ltd. dense media separation plant in Grande Prairie, Alberta, for further processing.

Precious metals Tyhee Development Corporation continues to advance their major property, the Yellowknife Gold Project (YGP), located 90 kilometres north of Yellowknife. Tyhee also holds several other properties stretching between the Giant Mine property and the YGP. 52 | CIM Magazine | Vol. 2, No. 8

In June, Tyhee released an updated gold resource for the YGP integrating 477 diamond drill holes and 82,514 assays. The measured and indicated resources totalled 1,203,000 ounces of gold, with an inferred resource estimate of 353,000 ounces.

Tyhee has completed two diamond drill holes totalling 259 metres at the south-end of a newly identified shear zone system on their BigSky Property.

Previously reported grab samples from surface exposures in the shear zone returned gold values of up to 18 grams per tonne. Tyhee is mobilizing another two drills on the property.

Avalon Ventures Ltd.’s 100%-owned Thor Lake Rare Earth Elements (REE) Project is located about five kilometres north of the Hearne Channel of Great Slave Lake and approximately 100 kilometres southeast of Yellowknife.

Avalon completed 2,551 metres of delineation drilling over 16 holes on their Lake Zone deposit. The program concluded early due to the arrival of winter conditions, but work will resume in January. Also, 1,160 split core samples were submitted for assay but no results have been released yet.

Base metals During the first half of 2007, Canadian Zinc Corporation continued a major underground exploration and infill drilling program, drilling 8,217 metres over 41 holes from six underground drill stations. The company is continuing to extend the decline tunnel and will establish an additional five drill stations. They will also support a helicopter diamond drill exploration program.

A NI 43-101 compliant resource estimate for Prairie Creek was released in October with total measured and indicated resources calculated at 5.8 million tonnes at over 20% combined lead and zinc. Canadian Zinc is currently finalizing an application for a Class ‘A’ Water License to re-open and operate the Prairie Creek mine.

Fortune Minerals Ltd.’s NICO cobalt-gold-bismuth project is located 160 kilometres northwest of Yellowknife. In January, Fortune announced that the NICO bankable feasibility study had been completed with proven and probable reserves of 21.8 million tonnes, suitable for a 15-year mine life with a production rate of 4,000 tonnes of ore per day.

This fall, Fortune completed Phase Two of the underground test mining at NICO. Work included extending the ramp to a depth of 200 metres below surface, and collecting a 3,600 tonne ore sample, some of which will be used in a six month long, large-scale pilot plant test that began in October.

Fortune is moving ahead with preparations to relocate material, including the Golden Giant mill, from the Hemlo site in Ontario to NICO. Kodiak Exploration Ltd.’s polymetallic Caribou Lake property is located 90 kilometres east of Yellowknife near the shores of Great Slave Lake. In 2007, the company continued to test the economic potential of the Caribou Lake gabbro intrusion. Since January, 15 holes were completed, ranging in length from 188 to 966 metres.

Tamerlane Ventures Inc. holds 100% interest in the Pine Point lead-zinc deposit east of Hay River. The company intends to develop a pilot project involving a one million ton bulk sample from the R-190 deposit. The project is undergoing an Environmental Assessment, and is awaiting the Report of Environmental Assessment from the Review Board.

Strongbow Exploration Inc.’s 100%-owned Nickel King property is located approximately 550 kilometres southeast of Yellowknife and 145 kilometres northeast of Stony Rapids, Saskatchewan.

Seven drill holes completed in the property’s Main Zone extended the strike extent of mineralization by an additional 800 metres to the southwest,bringing the total length of the mineralized zone to over 1,600 metres. In total 19 drill holes were completed on the property this year, and additional work included

ground and borehole geophysical surveys, mapping and prospecting of the project.

Uranium Alberta Star Corp.’s Contact Lake property is located five kilometres southeast of Port Radium, near Great Bear Lake. Work for 2007 included 30,000 metres of drilling in 70 to 80 holes. In September Alberta Star staked another four uranium claims totalling 4,177 hectares located just west of their property.

Bayswater Uranium Corp completed a 20,000 line kilometre airborne fixed-wing radiometric and magnetic survey on the west and southeast margins of their South Thelon basin holdings, with preliminary results identifying 25 high priority radiometric targets.

As well a 9,500 line kilometre VTEM helicopter-borne geophysical survey was conducted in the central internal portion of the South Thelon Basin. Follow-up exploration was conducted on historical radiometric anomalies and other targets.

In June, Bayswater and Kilgore Minerals Ltd. agreed to a merger between the two companies. Bayswater retained their company name.

Ur-Energy Inc. underwent an Environmental Assessment for a uranium exploration drilling program in the Thelon Basin. The Board recommended rejecting the project without an Environmental Impact Review, and in October the Responsible Ministers decided to uphold the Board’s recommendation.

Uranium North Resources Corp. completed detailed ground surveys over several targets on their Thelon UNR property, as well as 4,250 line kilometres of airborne geophysics surveys. As well, the company collected 64 rock samples and conducted 21,000 line kilometres of airborne geophysics on their Hepburn property, east of Great Bear Lake.

Uravan Minerals Inc.’s Boomerang uranium project is located about 300 miles east of Yellowknife along the southwestern margin of the Thelon Basin.

It is a joint exploration effort between Cameco Corporation and Uravan whereby Cameco has an option to earn 60% interest in the property. Work this year focussed on continuing a widely spaced diamond drill program along a major conductive trend on the property, with four holes completed and three more planned for the season.

Pacifica Resources Ltd. became Selwyn Resources Ltd.in June to reflect the company’s focus on advancing the Selwyn zinc-lead project. Also known as Howard’s Pass, this sizeable project is spread over a 40 kilometre long belt of favourable geology on the Yukon/ NWT border.

Selwyn applied this year for a five-year land use permit to conduct a drilling program on their NWT claims but the application has been referred to Environmental Assessment, which is now proceeding. L

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December 2007 / January 2008 | 53

Canada’s emerging exploration frontier starts delivering Exploration and mining heat up in Nunavut

by Karen D. Costello and Linda J. Ham, district geologists, Iqaluit, Nunavut, Indian and Northern Affairs Canada During 2006, an estimated $200 million was spent by the exploration and mining sector in Nunavut. Based on Natural Resources Canada’s (NRCan) biannual survey, $225 million is forecast for 2007. The overall number of hectares covered by some form of mineral tenure declined from 48.6 million hectares in 2005 to 27 million hectares in 2007, as explorers turned to more focused and higher cost field programs.

The number of exploration properties under evaluation in the territory’s three districts — Kitikmeot, Kivalliq and Qikiqtani — has increased over last year. The largest increase is with grassroots projects targeting uranium; most companies are exploring for unconformity-associated mineralization associated with Proterozoic basins.There are over 135 properties undergoing varying levels of exploration: nine base metals, 41 diamonds, 25 gold and precious metals, two iron, six nickel-copper-platinum group elements (PGE’s), 49 uranium, one coal and one sapphire.

As major mining companies strive to replenish reserves, Nunavut projects operated by juniors are attracting attention. This year, three juniors with advancing exploration projects were courted by international major mining

54 | CIM Magazine | Vol. 2, No. 8

companies. Majors continue to forge technical alliances with and make strategic investments in juniors with significant exploration portfolios in Nunavut.

Kitikmeot Region There are several advanced-stage exploration properties in addition to Nunavut’s first mine, the Jericho Diamond Mine. At the Jericho Mine, which opened in 2006, Tahera Diamond Corporation has increased production grade to 0.90 carats per tonne and the value of production for the second quarter of 2007 was $6.9 million.

However, financial losses were incurred, leading the company to adopt a comprehensive financing and improvement plan on which progress is being made. Tahera, De Beers Canada Inc. and Nordic Diamonds Inc. sampled 500 tonnes of the JD-3 kimberlite on the Jericho claims and conducted drilling and ground geophysics on the Anuri kimberlite property.

Stornoway Diamond Corporation added to their land holdings with their takeover of Ashton Mining of Canada Inc.and Contact Diamond Corporation.The Artemisia diamond property optioned to Vaaldiam Resources Ltd. and Ashton was returned to Stornoway.

Diamondex Resources Ltd. acquired Trigon Exploration Canada Limited and continued work on numerous diamond properties in the Coronation Gulf region and in eastern Kitikmeot.

The Kugaaruk area on the Boothia Peninsula, a potentially significant diamond district discovered in 2006, continues to return encouraging results.

Indicator Minerals Inc., Hunter Exploration Group and Teck Cominco Limited discovered four more kimberlites on the Darby project, bringing the total to nine. Indicator and Hunter are also evaluating their Barrow project. Diamonds North Resources Ltd. explored independently and in joint ventures with several companies (Shear Minerals Ltd., International Samuel Exploration Corp. and Arctic Star Diamond Corp.). On their wholly-owned Amaruk project, Diamonds North discovered 17 new kimberlites,for an updated total of 22.Diamonds North and sister company Uranium North Resources Corporation, continued exploring for diamonds and uranium on trans-border properties between the NWT and Nunavut on both Victoria Island and in the western Kitikmeot.

Newmont Mining Corporation made an all-cash offer for Miramar Mining Corporation, whose prime assets are extensive land holdings in the Hope Bay greenstone belt. Miramar is in the process of acquiring all of the necessary authorizations for the Doris North open pit gold mine, scheduled to start in 2008. Active exploration is underway throughout the belt, with at least two more gold-bearing systems identified for future development. As of April 2007, the updated gold resource estimates, for the entire belt, point to an indicated total of 5.2 million ounces at 4.54% grams per tonne and inferred resources of 5.4 million ounces of gold at 3.6 grams per tonne. Drilling in 2007 suggests further increases in these resource estimates.

The Back River Project (George Lake/Goose Lake; Dundee Precious Metals) is a banded iron formation, advanced gold property. Updated resource estimates (based on over 1,000 drill holes) point to indicated

activities. Kaminak Gold Corporation has optioned its Kitikmeot properties to various partners.

The Muskox Intrusion, a layered maficultramafic complex with nickel-copperplatinum group elements (PGEs) mineralization, is being explored by Adriana Resources Inc. and 50/50 Nunavut Ltd. A new zone of mineralization was identified near the Keel portion of the intrusion. Silvermet Inc. and Prize Mining Corporation conducted work on their claims in the south-central portion of the complex.

The Hornby Bay Basin of western Kitikmeot has attracted several companies searching for uranium. Exploration efforts by UNOR Inc. (owned 19.5 per cent by Cameco Corporation) have identified uranium targets within their extensive land holdings, some of which are governed by agreements with Cameco and Adriana. Triex Minerals Corporation and Pitchstone Exploration Ltd. continued delineation drilling and evaluation of the Mountain Lake deposit and nearby targets.

Kiggavik Uranium project, drilling of hole MZ07-04, Areva Resources Canada, Kivalliq Region.

Photographer: Karen Costello

resources of 3.41 million tonnes at 10.9 grams per tonne Au and inferred resources of 3.55 million tonnes at 10.2 grams per tonne Au. Plans for 2007 included delineation drilling, soil and rock sampling, geochemistry and bulk density determinations for resource modelling.

Committee Bay Resources continued their gold exploration efforts along the Committee Bay greenstone belt in eastern Kitikmeot and northern Kivalliq. The best prospects include Three Bluffs, Raven, Antler, Anuri, West Plains and Inuk.

Drilling in 2007 was designed to increase the Three Bluffs’ inferred resource of 1.897 million tonnes at 8.0 grams per tonne Au. Zinifex Limited, an Australian zinc-lead miner, completed a take-over of Wolfden Resources and their advancing projects within the High Lake greenstone belt (western Kitikmeot). These projects include the volcanogenichosted massive sulphide deposits of Izok, High Lake and Hood, as well as the Ulu gold deposit and Gondor base metals project (60 per cent owned with Xstrata plc). Izok has indicated resources of 14.8 million tonnes grading 2.5% Cu, 12.8% Zn, 1.28% Pb and 71 grams per tonne Ag, plus inferred resources of 0.37 million tonnes grading 3.79% Cu, 6.40% Zn, 0.27% Pb and 54.2 grams per tonne Ag. Wolfden submitted a draft Environmental Impact Statement in November 2006 for the High Lake copper-zinc open pit and underground operation. Regulatory review is ongoing and a final development decision is expected in 2008.

Indicated reserves are 17.3 million tonnes of 2.25% Cu, 0.32% Pb, 3.35% Zn, 0.95% grams per tonne Au and 69.75 grams per tonne Ag; inferred reserves are 1.3 million tonnes of 1.17% Cu, 0.28% Pb, 3.36% Zn, 0.78 grams per tonne Au and 64.6 grams per tonne Ag.Zinifex also acquired Lupin, a folded, banded iron formation former gold mine east of Izok.

Sabina Silver Corporation’s 2007 highlights at its Hackett River silver-zinc-gold-copper-lead project included a Preliminary Economic Assessment by Wardrop Engineering Inc.This study suggests a 13.6 year mine life, with an average annual production of 324.7 million pounds Zn, 12.4 million ounces Ag, 20.7 million pounds Cu, 37 million pounds Pb and 17,200 ounces Au. North Arrow Minerals, a new company to Nunavut, optioned Strongbow Exploration Inc.’s properties (gold, base metals and the precious metals Silvertip project) in western Kitikmeot and undertook grassroots exploration

Kivalliq Region The gold,diamond and nickel exploration projects in the Kivalliq were joined in 2007 by a new generation of uranium explorers. Of the 51 properties in the region, 27 are under evaluation for their uranium potential, with two more having uranium-base metal associations. The majority of the uranium exploration interest is directed towards the Thelon Basin and its underlying basement rocks.

Shear Minerals Ltd. and partner Stornoway Diamond Corporation had another successful year in evaluating the diamond potential of the Churchill Property. The 2007 work focused on continued exploration of promising indicator mineral trains and geophysical anomalies. As well, evaluation continued on four diamond-bearing, vertically-emplaced kimberlite dykes (Jigsaw, Notch, Kahuna and Meeka) that returned sample grades up to 2.18 carats per tonne. Initial results from the bulk sampling program at Kahuna yielded an average diamond content of 0.90 carats per tonne.Drill-testing along the Kahuna trend suggests a kimberlite body along a 4.5 kilometre strikelength. Thirty-one new kimberlite occurrences were discovered in 2007, 15 in drill core and 16 from surface occurrences. Three of the kimberlites are

www.clarkbuilders.com December 2007 / January 2008 | 55

interpreted to be similar to diamond-bearing ones found elsewhere on the property in 2006.

Peregrine Diamonds Ltd.was active on its Nanuq Diamond Project,northeast of Baker Lake, conducting ground-based geophysical surveys and follow-up drilling. Peregrine has entered into a letter of agreement with Indicator and Hunter for exploration on the Nanuq North property, where there are 67 claims covering 46,955 hectares.

Agnico-Eagle Mines Ltd. started off 2007 by putting in an offer to acquire all shares of Cumberland Resources Ltd., the 100 per cent owner of the Meadowbank gold project.The transaction was completed in July 2007.The Meadowbank project has gold reserves of 21.3 million tonnes grading 4.2 grams per tonne.Agnico-Eagle committed $8 million to the 2007 field program,exploring for potential extensions and new zones of mineral resources at the Goose South (discovered 2007) and Cannu zones (discovered 2005). Drilling was used to test the mineral resource envelopes in, or near, the open pit reserves at the Portage and Goose Island zones.

Results suggest continuous gold mineralization over 3.5 kilometres and these results could potentially lead to increases in the resources and reserves.

Comaplex Minerals Corporation has received regulatory approval for an underground exploration decline into the Tiriganiaq gold deposit on its Meliadine West Project (78 per cent Comaplex; 22 per cent Resource Capital Fund). The proposed 11-month underground program has been designed so that, if evaluation work (bulk sample and a feasibility study) is positive, the decline could be used for production purposes. An infill-drill program, designed to upgrade the resource status, increase the understanding of the deeper parts of the deposit and test portions of the potential open pit on the Tiriganiaq deposit, was completed.

Vancouver, BC (Head Office) Sixth Floor, 1111 West Hastings Street Vancouver, BC, Canada V6E 2J3 Telephone: (604) 689-9460 Facsimile: (604) 687-4277 www.rescan.com

56 | CIM Magazine | Vol. 2, No. 8

Yellowknife, NT Telephone: (867) 920-2090 Victoria, BC Telephone: (250) 382-8830 Smithers, BC Telephone: (604) 689-9460

In southern Kivalliq, Newmont Canada Mouse Lake Camp — Exploration has a gold exploration project west of arrival April 2007, Nueltin Lake,to look for Proterozoic sediment-hosted Kitikemot Region. gold. Maze Lake is another early-stage gold Photographer: Steve exploration project, targeting Archean greenstoneWard, UNOR Inc. style gold mineralization, operated by Terrane Metals Corporation and optioned from Placer Dome.

The Ferguson Lake Project, operated by Starfield Resources Inc., is the most advanced nickel-cobalt-copper-PGE project in Nunavut. In 2007, a revised mineral resource estimate for the Main West Zone was released and indicated 15.2 million tonnes grading 0.71% Ni, 1.04% Cu, 0.08% Co, 1.64 grams per tonne Pt and 0.28 grams per tonne Pd. This represents a 76 per cent increase over a previous estimate. Delineation drilling of the low sulphide-PGE zone, 50 metres below the massive sulphide lenses of the Main West Zone, was the focus of the 2007 drill program. A scoping study is underway to meet the requirements of a Preliminary Economic Assessment, under NI 43-101 guidelines.

Intrepid Mines Ltd. and Aura Silver Resources Inc. are exploring the Greyhound property within the Archean Woodburn Lake greenstone belt, 50 kilometres north of Baker Lake. The property hosts sulphide-enriched boulders containing base and precious metals, suggestive of volcanogenic massive sulphide mineralization.

Drill-testing of zinc, copper, gold and uranium targets was conducted by Tri Origin Exploration Ltd. on the Keewatin Project.

There are 14 companies actively involved in uranium exploration in the Kivalliq.

The most advanced properties are Kiggavik and Sissons, collectively referred to as the Kiggavik Project. Past work identified three deposits with significant uranium resources: Kiggavik, Andrew and End. In late 2006, Areva Resources Canada Inc. commenced a viability study that included geotechnical drilling, environmental studies and near-deposit exploration work. Extensive work is planned for 2008.

Cameco Corporation is exploring for uranium on four properties, three in the Thelon Basin area and one west of Nueltin Lake in southern Kivalliq.

In 2007, Titan Uranium Inc. completed its second season of drilling on its Thelon North properties and acquired 61 new claims, covering areas with favourable geology and several radiometric anomalies. During 2007, Titan entered into an arrangement with Mega Uranium Ltd. whereby Mega can acquire a 51 per cent interest in all of Titan’s interests in the Thelon Basin.

Western Uranium Corporation’s Ruby Hill Project occurs along the north and north-east perimeter of the Thelon Basin. Ground geophysics, surface sampling and prospecting and drill testing of conductors identified from the 2006 airborne surveys were conducted in 2007. Cameco will acquire a ten per cent equity interest in WUC through a non-brokered private placement to form a strategic alliance.

A neighbouring project along the Thelon Basin’s north margin is the Garry Lake property, owned and operated by Uravan Minerals Inc. Results of two new geophysical surveys will be integrated with an area-wide geochemical compilation to identify coincident anomalies and potential drill targets for 2008.

Bayswater Uranium Corporation began field work on its five wholly-owned claim blocks and ten prospecting permits (50 per cent-owned through the Canadian Uranium Joint Venture with Strongbow). Results from their 2006

airborne magnetic survey suggest kimberlite potential exists on the Itza Lake claim block, now under option to Stornoway.

The North Thelon Joint Venture (NTJV), operated 50/50 by Forum Uranium Corporation and Superior Diamonds Inc., covers a portion of the eastern margin of the Thelon Basin and an option on a property northeast of the Kiggavik area from Tanqueray Resources Ltd. Uranium North is actively exploring for uranium on two project areas: Amer Lake and South Baker. Airborne geophysics and extensive sampling on numerous prospects was completed, with additional work planned for 2008.

The Baker Uranium Project is Pacific Ridge Exploration Ltd.’s flagship property, optioned from Kaminak Gold Corporation. Pacific Ridge has identified a number of priority drill targets, including Lucky-7, KZ Zone and 7-One. New drilling intersected uranium mineralization at Lucky-7 Zone, associated with fracturing and clay alteration of the Kazan sandstone within a northerlytrending sub-vertical structural corridor emplaced with a mafic dyke. Drilltesting below the 2006 holes encountered thicker and higher grade uranium intersections at depth.

Outside of the Thelon Basin, Ur Energy Inc. (Bugs Property) and Kaminak (Yathkyed Iron Oxide Copper Gold +/- Uranium Property) have early-stage uranium exploration projects underway.

Qikiqtani Region The Mary River Iron project of Baffinland Iron Mines Corporation dominates the Qikiqtani development scene. For 2007, a $90 million program was announced, with exploration, bulk sampling and other activities in support of a Definitive Feasibility Study and a Scoping Study underway.

Detailed engineering and economic investigations continue. Exploration drilling between Deposit 3 and 3A shows continuity, with varying widths.

Exploration and geomechanical drilling were completed on Deposit No. 1 and Deposit No. 3. Geotechnical drilling focused on proposed port sites, overburden testing at the Mary River project site and drilling on the Mary River to Steensby Inlet rail corridor. Baffinland is planning a bulk sample of 250,000 tonnes of high-grade hematite and magnetite ore to be delivered to several steel mills for late 2008.

Advanced Explorations Inc. and Roche Bay plc entered into a joint venture agreement to undertake work required to complete a feasibility study on the Roche Bay banded iron formation (magnetite) deposits.

The Aviat project on the Melville Peninsula was Stornoway’s largest project, in partnership with BHP Billiton and Hunter. The 2007 summer exploration program helped to delineate and extend a series of stacked, flat-lying kimberlite sheets, up to approximately 7 metres thick, and resulted in the discovery of a new pipe (AV 9). Increased understanding of the sheet complex has enhanced Aviat’s tonnage potential. All kimberlites have proven to be diamondiferous, with the new AV 9 pipe currently undergoing analysis for diamond content.

The 1.04 million acre Qilalugaq Project is covered by an option agreement between Stornoway and BHP Billiton.Stornoway discovered four new kimberlite dykes (Naujaat 3 to 6) and extended the strike-length of the Naujaat 1 and 2 dykes discovered in 2006. Samples for macro-diamond analysis were collected and 600 kilograms from the Naujaat 1-6 bodies was submitted for caustic fusion analysis. Sixteen kimberlites are now known within a 26 kilometre trend,

interpreted to be a structural corridor exploited by kimberlite magmas rising from the mantle.

Peregrine Diamonds Ltd. operates three diamond exploration project areas, Chidliak, Mirage Bay and Foxe Basin, covered by two agreements between Peregrine and BHP Billiton. Follow-up heavy mineral sampling was conducted on the Mirage Bay and Chidliak projects to better define the indicator mineral trains and constrain an up-ice indicator cut-off. On the Foxe Basin project, 14 aeromagnetic anomalies, identified on Prince Charles Island, were followed-up with detailed ground-based magnetic surveys. Heavy mineral samples were collected from Prince Charles and other islands within the project area.

Diamond exploration is underway in the High Arctic by De Beers, in partnership with Pure Diamonds Exploration Inc. Processing of the 2006 till samples was completed, resulting in the identification of two kimberlite indicator mineral areas on Cornwallis Island and in the western portion of Devon Island (Cape Osborne). A detailed program of airborne magnetic surveying and follow-up till sampling was undertaken on the Cornwallis Island permit block.

De Beers continued work on the Baffin Island Diamond Project by drilltesting several geophysical targets and evaluating the Aliguja and Amon kimberlite trend. The next phase of exploration will focus on evaluating existing discoveries and related targets along kimberlite boulder trains within the project area.

Diamondex conducted ground geophysics, till and stream sediment sampling, and diamond drilling on the Brodeur Property. Focused drill-testing of the Tuwawi kimberlite was undertaken and 9 of 14 holes drilled over the Nanuk and Kuuriaq target area intersected kimberlite.

Work on the Baffin Island Gold Project, operated by Commander Resources Inc., continues to reveal the gold endowment of the Lower Proterozoic iron formations and shear zones along the 140 kilometre greenstone belt. With the discovery of the Hebert mineralized trend (a 14 square kilometre area with swarms of quartz veins carrying arsenopyrite, pyrrhotite and minor galena), 17 gold prospects have now been identified.

On Baffin Island, Cameco acquired 27 prospecting permits around the Proterozoic Borden and Fury-Helca basins. These basins are similar in age to the other uranium-bearing sedimentary basins in Nunavut and also similar in characteristics to the uranium-bearing Athabasca basin and basins in Australia.

They have received limited attention for their uranium potential and are currently being explored by Cameco and UNOR.

Looking Forward Recent initiatives undertaken by various stakeholders and by government in Nunavut, such as exploring options of online map selection, the release of Nunavut Tunngavik Incorporated’s (NTI) uranium exploration policy and the further development of nunavutgeoscience.ca (a web-based portal linking users to publicly available Nunavut geoscience information), will allow Nunavut to remain competitive with other jurisdictions in Canada.

All exploration companies operating in Nunavut are encouraged to ensure they gain a good understanding of the operating and regulatory requirements, and acquire all applicable authorizations and permits prior to proceeding. A good resource is INAC’s Exploration and Mining on Crown Lands in Nunavut Guidebook available online at http://www.aincinac.gc.ca/nu/nuv/mng_e.html.

Historic exploration efforts and government geoscience mapping projects have identified prospective geological terrains within Nunavut.Armed with new ideas, modern technologies, improved understandings of the geological environment and revised exploration models, companies are venturing into under-explored areas and making gains. New discoveries are occurring in the territory, confirming the high mineral potential and likely emergence of core mining districts within Nunavut. L December 2007 / January 2008 | 57

Supporting Western Canadian Mines

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the supply side

How can mining suppliers cope with the strong Canadian dollar?

T

he average exchange rate in 2002 was CDN$1.57 for US$1 dollar. It rose to $1.40 in 2003, $1.30 in 2004, and $1.21 in 2006.

Now we are above parity. So, exporters continuously have to ask for more U.S. dollars just to get the same number of Canadian dollars. Fortunately our dollar has not strengthened to the same extent in the home currencies of many clients of Canadian mining supply exporters.

Many Canadian suppliers (and their customers) have become accustomed to using the U.S.

by Jon Baird dollar as a common currency. Thus, over, say, a one-year period from quote to delivery, the Canadian supplier is taking a hit while the buyer has been profiting.

Remember that using a third currency as an intermediary means that conversion costs are incurred twice, once by the buyer and once by the seller.

One way around the problem is to hedge, assuming that U.S. dollars received in the future will be worth

A page for and about the supply side of the Canadian mining industry

less in Canadian funds. This has a cost and it is risky, in case the U.S. dollar strengthens. It is not usually a good approach unless a very large contract is in question.

A better idea is simply to start quoting in Canadian currency. This protects you against all currency exchange risk, assuming that your expenses to fulfill the contract are in Canadian dollars. Our dollar is quoted on most markets, and foreign buyers should not have any more difficulty paying in Canadian as opposed to U.S. dollars. Some buyers may resist this, but it may well be a good thing to try to negotiate in your favour.

Of course our strong dollar reduces the cost of sales trips, exhibition attendance and other marketing and selling expenses, as well as parts, components and production machinery sourced in the United States, so our mining supply community has at least some benefit. Investment in new, more efficient production machinery from the United States is now less expensive and, once in place, can yield benefits into the future.

Another positive factor in the current environment is that commodity prices remain strong. This means that the revenues of the mining companies that are the clients of suppliers are strong, even if their margins may shrink as the currencies of the countries in which they produce strengthen against the U.S. dollar.

What does the future hold? The Canadian dollar is heavily influenced by commodity prices, and I will leave it to you to predict where they are going. We are an important producer of many commodities. In particular, the price of oil continues to increase and some are now saying that our dollar is a ‘petrodollar.’ It is certainly hard to predict a strengthening U.S. dollar in the face of the huge U.S. debt, deficit and negative trade balance. I have read that the

Ăž

Many Canadian suppliers (and

their customers) have become accustomed to using the US dollar as a common currency present value of the US federal government obligations is $64 trillion.

Apparently, if the U.S. government confiscated all the property in the country, including bank accounts and investment portfolios, and sold them to foreigners without depressing the value of those assets, it would still be $20 trillion short. CIM About the Author Jon Baird is managing director for CAMESE

December 2007 / January 2008 | 59

innovation page Reducing the cost of wear in mining and mineral processing

Rees Llewellyn

Erosion and corrosion — two words that represent a significant cost to many mining operations. This month we profile a collaborative effort by mining firms to address wear in our industry.

The initiative under review is an industry-sponsored Mining Wear Materials Program at the National Research Council Canada’s Institute in Vancouver. In mining and mineral processing there are numerous permutations of wear mechanisms, often involving corrosion in synergistic attack, that are encountered in the different operations and processes involved. This situation necessitates the identification and application of a multiplicity of materials, designs and process considerations to prevent or minimize attack. With respect to wear materials,

by Rees Llewellyn they range from and Gord Winkel soft elastomers and polymers to extremely hard engineering ceramics and cermets, and ultimately to diamond-like surface layers.

History The collaborative effort between the National Research Council (NRC) and industry was initiated in 1996 by Syncrude, which had its own wear 60 | CIM Magazine | Vol. 2, No. 8

Gord Winkel

materials research program in place, but envisioned that larger gains and faster progress could be achieved by a more concerted collaborative effort.

This work has expanded out to include other oil sands and hard rock mining firms. The current participating mining firms include Quebec Cartier Mining, Xstrata, Alcoa, Albian Sands Energy, Canadian Natural Resources, Fort Hills Energy LP, Suncor and Syncrude. The initiative also enjoys strong participation by a core group of industry wear material supply members with proven records of success in developing and manufacturing state-of-the-art wear protection technology for mining, which in turn complements the mining user members’ group. The consortium now has a total industrial membership of 17 companies and is very ably supported by other research providers such as the University of Alberta, University of British Columbia and the Alberta Research Council.

Wear materials program The main objectives set for the Mining Wear Materials Program include: • Identifying the most resistant/protective options for specific wear modes.

• Characterizing damage mechanisms and correlating performance with condition, microstructure, and constitution.

• Providing a comprehensive database of wear properties to help in selecting optimum materials for critical service applications.

• Supporting the development of improved wear materials and protection systems.

• Addressing chronic wear problems and analyzing failures of wear components.

• Improving knowledge among mining companies and suppliers of the mechanisms and influences on attack and of the relative properties of wear materials.

Evaluation capabilities The optimization of wear performance requires sophisticated and standardized techniques. Wear determinations are made at NRC using a range of testers that simulate critical attack mechanisms occurring in mining. Some of the most important systems are: • A rolling contact abrasion tester for assessing shovel and tractor undercarriage component steels and also for evaluating lubricants.

• Low-stress (ASTM G65) and high stress dry abrasion and slurry abrasion (ASTM G105) testers for a range of sliding wear situations (e.g. shovel linings, hoppers, truck boxes, ground engaging tools, drill parts, piping).

• Gouging abrasion (ASTM G81) testing for crushers, sizers and breakers.

• Reciprocating stroke, room and high- temperature abrasion tests for evaluating materials for smelting and for fretting wear.

• Slurry jet and scouring (Coriolis) erosion and erosion/corrosion testers that reproduce conditions

innovation page present in slurry pumps, piping, nozzles, valves and separators.

• Air jet erosion (ASTM G76) for materials for pneumatic transportation of hard solids.

Benefits This collaborative wear materials research effort has produced real gains for the mining industry. Some very significant improvements in the battle to control wear and improve performance follow.

• The replacement of austenitic manganese steels by low alloy steels in shovel buckets in hard rock mining has resulted in improved performance, reduced maintenance and, very critically, healthier working environments during welding operations.

• The determination of causes for chronic failures in shovel bucket lips and shovel track pads has

resulted in increased reliability and equipment availability in hard rock situations.

• An extensive wear properties database has been compiled that allows group members to make comparisons between materials and to achieve more informed selections.

• Data obtained in the program on established and newly developed products has been used during the design stages for new plants and in expansion projects.

• Assessments of the relative abrasivity and erosivity of solids in mining and related transportation streams have explained service behaviour and allowed action to be taken to minimize adverse conditions.

• The selective introduction of sintered carbide components has resulted in major increases in service life and plant up-time in froth treatment processing.

• The use of a laminated wear plate for a novel breaker plate design in oil sands ore preparation is greatly reducing replacement frequency and improving plant availability and total production throughput.

The consortium clearly demonstrates another collaborative research effort that is returning value to the mining industry. For more information on this work please contact Rees Llewellyn, MWM Group Leader, National Research Council Canada, at rees.llewellyn@nrc.gc.ca or by phone at 604.221.3072. CIM

About the Authors Rees Llewellyn is MWM group leader, National Research Council, Canada, and Gord Winkel, oil sands technology manager, Kearl Oil Sands Project, Imperial Oil Resources

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December 2007 / January 2008 | 61

student life On the road to discovery For all those who, like me, don’t come from a mining region or who don’t know anyone in the field, the world of mining can be quite mysterious. It is with an adventurous spirit, the desire to discover unknown fields and a long-time passion for geology that I decided, following my high school studies, to pursue a diploma in mineral technology at the Cégep de Thetford.

The first two years of the geology, mining and mineral processing programs have the same curriculum.

This allowed me to discover many aspects of mining.

What began as an A typical day in mining exploration with Virginia Mines interest in geology transformed into an even stronger inter- tional geological sites, from active volcanoes to petrified wood forests. We also est in mineral processing.

Even though I chose to study mineral discovered a different culture, with peoprocessing in my third year, I carried ple as passionate as we were for geology out my first internship in mining explo- and mining.

During my last year in Cégep, I ration with Virginia Mines after I completed my second year. I discovered the attended two important mining conferincredible excitement of waking up ences — the Annual Canadian Mineral each morning with the aspiration of dis- Processors Operators’ Conference in covering a new Ottawa and the CIM Conference and

by Jean-Félix Lepage mine. I also had Exhibition in Montreal. During these the chance to experience life in an two events, I met numerous people who exploration camp in northern Québec. were very optimistic about the future of What an unforgettable experience for an mining in Canada as well as the rest of the world. I established relationships 18-year-old.

The mutual aid and friendship with other students who also were newamong colleagues and teaching person- comers to this field. What a great expenel led us to begin corresponding with rience!

Following all of these adventures, I the University of Loja in Ecuador. This resulted in a two-week trip there, where still had an internship left before obtainwe went to the heart of the equator. We ing my diploma. Last summer, I worked criss-crossed the country visiting excep- as a mineral processing technician at

i

62 | CIM Magazine | Vol. 2, No. 8

Québec Cartier Mining Company’s Mont-Wright concentrator. My internship was very enriching, on both professional and personal levels. I once again had the chance to work for a mining company that is optimistic about the future of the industry.

It is with all these great experiences and an ever-increasing interest that I am pursuing my studies in this field — I’ve recently begun a bachelor’s degree in metallurgical engineering at Laval University. I will once again get the chance to learn and experience new things during my internships over the next four years, which will lead me to a great career in the mining industry. CIM

About the Author Jean-Félix Lepage is an undergraduate student in metallurgical engineering, Laval University

la vie d’étudiant À la découverte d’un monde où il fait bon travailler Pour toutes personnes comme moi qui ne proviennent pas d’une région minière et qui ne fréquente aucune personne travaillant dans le domaine, ce monde demeure quelque peu mystérieux. C’est avec un esprit d’aventure,

Même si je m’étais inscrit dans l’option minéralurgie pour ma troisième année, j’ai quand même effectué mon premier stage après ma deuxième année en exploration minière avec Mines Virginia. J’ai découvert au travers ce

Les étudiants de Cégep de Thetford en Équateur

l’envie de découvrir un domaine inconnu et une passion pour la géologie développée durant ma jeunesse que je me suis donc embarqué après mes études secondaires dans l’obtention d’un diplôme en technologie minérale au Cégep de Thetford.

Les deux premières années de ce cours étant un tronc commun entre les options géologie, par Jean-Félix Lepage exploitation et minéralurgie m’a permis de découvrir le domaine des mines dans toutes ses facettes. Mon intérêt pour la géologie c’est transformé durant ces deux premières années en une attirance vers la minéralurgie.

i

L’auteur Jean-Félix Lepage est étudiant, de premier cycle en génie métallurgique, Université Laval

stage un dynamisme incroyable et le plaisir de chacun de se lever à tous les matins avec l’ambition de découvrir une mine. J’ai aussi pu pour la première fois connaître la vie sur un camp et prendre contact avec le nord du territoire québécois. C’était lors une expérience inoubliable pour un jeune homme de 18 ans.

L’entraide et la camaraderie installée entre les étudiants de notre promotion et le personnel enseignant, nous a permis de monter une correspondance avec l’Université de Loja en Équateur et par la suite un voyage de deux semaines dans ce pays. En effet, nous avons fait un voyage lors de notre troisième année au cœur même de l’Équateur. Nous avons parcouru ce pays de long en large en visitant des sites géologiques exceptionnels que ce soit des volcans en activités aux forêts de bois pétrifiés. Nous y avons ainsi découvert une culture différente

mais des gens aussi passionné que nous pour la géologie et le monde minier.

Ma dernière année au cégep m’a amené dans deux congrès d’importance dans le domaine minier. Ces deux congrès étant la Conférence annuelle des minéralurgistes du Canada à Ottawa et le Congrès et Salon commercial de l’ICM à Montréal. Lors de ces deux événements j’ai pu rencontrer de nombreuses personnes tout aussi optimistes les uns que les autres sur l’avenir du monde minier au Canada et dans le reste du monde. J’ai aussi pu créer des liens avec des étudiants qui tout comme moi sont encore à apprivoiser ce domaine si grand. Ce fut encore une fois une expérience digne de mention.

Après toutes ces aventures, il me restait encore un stage à effectuer avant l’obtention de mon diplôme. Au cours de l’été dernier, j’ai donc travaillé comme technicien en minéralurgie au concentrateur du Mont-Wright de la compagnie minière Québec Cartier. Sans surprise, mon stage a été très enrichissant tant sur le coté professionnel que personnel. En effet, j’ai encore eu la chance de travaillé avec une compagnie qui fait bien état du domaine minier en ayant un regard optimiste sur l’avenir.

C’est avec toutes ces bonnes expériences et avec un intérêt toujours grandissant que je continue mes études en débutant un baccalauréat en génie métallurgique à l’Université Laval.

J’aurai donc encore la chance d’acquérir de nouvelles expériences de toutes sortes durant les quatre prochaines années qui m’amèneront à faire quelques stages et finalement au marché du travail dans le domaine minier. CIM December 2007 / January 2008 | 63

the dialogue “Tried and true” used parts

Chances are at least one older piece of equipment is in operation on your site. Possibly, it is a machine that is no longer produced and for which conventional support may no longer be available. At the very least, it may be difficult to find parts and components. It may be an L-800 Letourneau loader, a Marion shovel, a Page dragline or a Wabco hauler.

Basic common sense and the hard reality of economics dictate that, while these machines play an important dayto-day role in your operation, a new replacement for its function cannot be justified. Extended lead times on new machinery in this heated mining environment can eliminate the option of replacing the machinery altogether for companies wanting to take immediate advantage of high commodity prices.

The high demand for

by Dan Rachiele machinery and replacement parts also tends to drive pricing up.

So how do you keep older machinery running when the need to keep costs down to be competitive is crucial?

Increasingly, mine maintenance and materials management personnel are turning to the used or surplus parts/components market. The main reasons are straightforward. Used or surplus original equipment manufac64 | CIM Magazine | Vol. 2, No. 8

turer (OEM) parts are sure to fit and are sure to be a match in terms of profile, hardness, strength, durability, output, etc. Both ‘new/special order’ and ‘new/aftermarket’ generally feature lengthy lead times when parts, perhaps surplus to another property, are available immediately to those who can find them. Last but not least, as used/surplus, these items are generally available at a substantial savings.

Naturally, the first call made is to the equipment dealer or the OEM. Not all, however, have wholly embraced or established infrastructure for support of past or present models through used components and attachments. There are also larger independent organizations, generally outside of the dealer/ distributor circle, who may purchase and stock items for eventual sale.

Then, there are the smaller brokers dealing in surplus directly from minesite to minesite with low operating costs, low overhead and minimal (if any) carrying cost. The key here, of course, is establishing dialogue with cautious and thorough people and in

whose judgment you are comfortable.

When the item is being brokered, ask if your contact is willing to travel with you to view the material offered firsthand (see checklist below).

Knowledge, caution and experience are the only safeguards against the unexpected when sourcing used and rebuilt components and attachments. In addition, non-destructive analysis has become increasingly common, increasingly available and more accurate. Be specific and complete with information you supply to your contact so that you both know the correct item is being sought. If the component to be replaced is not the original received with the machine when new, be sure to provide the correct replacement information.

With a little care, proper use, and common sense, much of this older machinery will still be productive and profitable to operate for many years to come. CIM About the Author Dan Rachiele, of RAX Enterprises Inc., has a lot of experience working with used equipment.

✓checklist of recommended questions A

What is the serial number of the host machine from which the component was removed or at least a serial number range into which the host machine falls, along with the part, assembly or group number of the item offered?

What are the hours on the item since new or last major overhaul, and will the item be opened and inspected and tested where possible?

Will digital photos and reports be made available, i.e. oil samples, measurements, megger tests, etc., and if warranty/guarantee is available, will it be delayed to start after reasonable allowance for transit time?

What is the lead time to availability for shipment and transit time?

Are all logistic charges incorporated, including freight, handling, pilot cars, fuel surcharges and insurance (for ocean, air and over-the-road freight) and are all brokerage, duties and levies included for exit from the country of origin as well as entry to the destination (your) country?

Will the material offered be thoroughly cleaned to avoid quarantine, extra charges and unnecessary delay upon arrival, and is special packaging required for compliance with destination country requirements?

parlons-en Pièces usagées et d’expérience Il y a de bonnes chances qu’au moins un vieil équipement soit encore utilisé sur votre site. Il s’agit peut-être d’une machine qui n’est plus produite et pour laquelle le soutien conventionnel n’est plus disponible ou que les pièces sont très difficiles à trouver, par exemple un chargeur Letourneau L-800, une pelle Marion, une pelle à benne traînante Page ou un camion de halage Wabco.

Le gros bon sens et la dure réalité économique dictent que le remplacement de ces par Dan Rachiele machines ne peut être justifié, même si elles jouent un rôle important dans vos activités quotidiennes. Dans le présent contexte minier, les longs délais d’approvisionnement peuvent empêcher les compagnies de remplacer leurs anciens équipements même si elles veulent profiter des prix élevés actuels des produits minéraux. La demande élevée pour la machinerie et les pièces de rechange contribue aussi à en faire monter les prix.

Alors, comment garder les vieilles machines en opération lorsqu’il faut abaisser les coûts pour être compétitif?

Le premier appel sera évidemment à un fournisseur d’équipements ou de pièces OEM. Ces fournisseurs n’auront toutefois pas tous établi des infrastructures pour supporter les modèles, anciens et actuels, en gardant des pièces et des composantes usagées. Il existe aussi de grandes De plus en plus, les gestionnaires des organisations indépendantes, non matériaux et de la maintenance se tour- reliées aux vendeurs/distributeurs, qui nent vers les marchés de pièces/com- achètent et entreposent des pièces dans posantes usagées ou excédentaires. Les le but de les revendre. D’autres raisons principales sont bien simples : courtiers plus petits traitent directeil est certain que les pièces d’origine ment avec les mines; ils ont moins de (OEM) usagées ou excédentaires s’ajus- frais fixes et de coûts d’exploitation. La teront parfaitement et auront le profil, la clé est d’établir un dialogue avec des dureté, la résistance, la durabilité et le gens prudents et consciencieux en qui rendement requis. Les équipements vous avez confiance. Lors des négocia« nouveaux / sur commande spéciale » tions pour un item, demandez à votre et les « nouveaux / marchés secon- personne ressource si elle est prête à daires » ont souvent des délais très longs aller voir le matériel offert avec vous alors que ces pièces sont possiblement (voir la liste de vérification). excédentaire ailleurs; il suffit de savoir Les connaissances, la prudence et l’exoù les trouver. Finalement, en tant que périence sont les seules mesures de prosurplus/usagés, ces équipements peu- tection contre l’inattendu ou les mauvent être obtenus à moindre coût. vaises surprises lorsque vous recherchez des composantes et des accessoires usagés ou remis à neuf. De plus, les analyses non destructives sont devenues plus fréquentes, plus disponibles et plus précises. Soyez est le numéro de série de la machine d’où provient la pièce ou, du moins, une spécifiques et donnez des informaplage des numéros de série de la machine hôte ainsi que le numéro de la pièce, de tions complètes à votre fournisseur l’assemblage ou du groupe dont provient l’item offert? afin d’obtenir le bon item. Si la composante à être remplacée n’est d’heures de service depuis la dernière révision générale et l’item serapas l’originale reçue avec t-il ouvert, inspecté et mis à l’épreuve lorsque cela sera possible? l’équipement neuf, soyez certain de photos numériques et des rapports seront-ils disponibles : p. ex. des échantifournir les bons renseignements llons d’huile, des mesures, des lectures de mégohmmètre, etc.? Si des garanties sont pour la remplacer. disponibles, peuvent-elles être retardées pour tenir compte du temps de transit?

Avec un peu de soins, un usage approprié et du gros bon sens, une est le délai de livraison, le temps passé en transit? grande partie de cette machinerie plus vieille sera encore productive tous les frais de logistique sont inclus : transport, manutention, voitures et profitable pour de nombreuses d’estafette, suppléments pour carburant, diverses assurances (transport par mer, air et années à venir. CIM terre), courtage, cotisations et douanes?

Les connaissances, la prudence et l’expérience sont les seules mesures de protection

Liste aide-mémoire de questions recommandées

Quel

Combien Des

Quel Est-ce

Le matériel offert sera-t-il complètement nettoyé afin d’éviter la mise en quarantaine, les frais supplémentaires et les délais inutiles à l’arrivée? Un emballage spécial est-il requis pour être conforme aux exigences du pays destinataire?

L’auteur Dan Rachiele, de RAX Enterprises Inc. a beaucoup d’expérience a travailler avec les pièces usagées.

December 2007 / January 2008 | 65

MAC economic commentary Foreign acquisitions in Canadian mining — good, bad, or indifferent?

I

n recent years, the theme of foreign direct investment has commanded more attention than any other Canadian economic policy issue. And no sector has been more centrally involved in this issue than the mining industry. The international fight for control of the prominent and century-old Canadian mining companies Inco and Falconbridge in 2006 served to highlight a number of fascinating strategic and policy issues for observers of the global mining industry —as did the acquisition of business icon Alcan by Rio Tinto in 2007.

At its core, as a business strategy issue, a handful of large companies are battling to control global supply of key base metals and related assets. These global players include BHP Billiton, Rio Tinto, Anglo American, CVRD Inco and Xstrata, with other companies like Freeport McMoRan, Norilsk and Rusal knocking at the door of this elite club.

These firms are generally aiming to raise their in-house ore

by Paul Stothart ratio (the amount procured from affiliated mines) and they are operating under the premise that a constrained base-metal mineral reserves situation, combined with strong global economic growth and infrastructure development in China and India, is a potent combination — an equation that means strong mineral prices for many years to come. Simply put, we are moving towards a world with more municipal infrastructure, 66 | CIM Magazine | Vol. 2, No. 8

more autos, more medical equipment, more housing and more iPods — this means we need more minerals.

Having reached this supply/ demand/price conclusion, the objective of the global companies has become one of acquiring reserves and landholdings and broadening their technical ability to find more deposits. Canadian firms and their assets have become prime targets in this respect and, interestingly, given its long-time position as a global leader, Canada has emerged, for the most part, as a seller rather than a buyer in this battle.

Beyond the business strategy, one of the interesting public policy debates related to this issue revolves around whether the location of a head office matters. Does it matter if CVRD Inco or Xstrata Nickel have head offices in Canada? Conversely, does it matter if a foreign takeover results in a head office being shifted — or in key decision makers being transferred — to, say, London, Australia or Texas, Switzerland? Does this affect levels of procurement from Canadian suppliers of equipment or engineering or financial services, for example? These questions are broadly relevant in Canada, as leading companies in other sectors, such as Dofasco, Algoma, Four Seasons Hotels, Molson’s, and Hudson’s Bay, have also fallen under varying levels of foreign control in recent years.

Normally, one would expect Canadian sovereignty groups and activists — the Maude Barlows and Mel Hurtigs — to be prominent on this issue. Their line of argument was most strongly held in past decades — particularly through the 1960s and 1970s, when initiatives such as the national

energy program and the foreign investment review agency were designed to encourage domestic control or to enhance domestic benefits from foreign takeovers. An October 2007 survey by the Canadian Council of Chief Executives highlighted the ironic fact that business executives themselves now have concerns on this front — four out of five CEOs believe Canada should impose new restrictions guarding against certain types of takeovers.

These restrictions would ostensibly be applied against “state-controlled entities,” although this path could easily turn into a slippery slope. This kind of sentiment is also being reflected globally. According to the United Nations Conference on Trade and Development, there were 90 regulatory changes worldwide hindering foreign direct investment in the 12 years up to 2002 — in the three years between 2003 and 2005, there have been 101 and in all likelihood this acceleration of regulatory change has continued since 2005.

In the Canadian mining context, it is difficult to describe the experience in the year since the Inco/Falconbridge acquisitions as having been negative.

On the contrary, the two acquisitions have broadened the global reach of the Canadian operations. In the case of Xstrata, the company’s huge global nickel operations have been headquartered in Canada, under the direction of a Canadian chief executive. The copper and zinc operations have been integrated within a global network. The case of CVRD Inco differs slightly, as CVRD had narrower global operations than Xstrata, and less structural change has been made to the Canadian operations. Nonetheless, the company’s

About the Author Paul Stothart is vice president, economic affairs, for the Mining Association of Canada

MAC economic commentary commitment towards Canada remains strong — as employment and investment have increased since the acquisition and Canadian expertise and knowhow is helping drive the globalization of this company. The pro-investment school of thought — that foreign

investments in this sector. An estimated 62 per cent of the world’s exploration companies (with annual budgets over $100,000) are Canadian — these companies explore and appraise minerals in countries throughout the world.

economy remains an open question for the future — or perhaps more pertinently for the Competition Policy Review Panel.

This panel was recently established by the federal Ministers of Industry and Finance to “review key elements of Canada’s competition and investment policies to ensure that they are working effectively and that Canada is positioned for continued economic competitiveness.” The panel, chaired by long-time business executive, “Red” Wilson, released a consultation paper on October 30 seeking input and submissions by January 2008. The paper (see www.competitionreview.ca) seeks views regarding specific investment limitations (such as in uranium), as well as on general questions such as whether Canada should be concerned about foreign takeovers. CIM

It is delicate, if not hypocritical,

to call for tough rules limiting foreign investment in Canada when our own companies… are actively investing and acquiring assets in foreign countries investment enhances Canadian access to new technologies, ideas and markets — appears to have held true in these instances.

Trade and investment liberalization agreements of the 1970s and 1980s have translated into less support for the “domestic control” school of thought. This is doubly true in the mining sector, where levels of Canadian investment abroad have for many years been roughly double the value of the stock of foreign investment in Canada. In 1995, Canada had $25 billion invested abroad in mining versus foreign firms having $10 billion invested in Canada. As of the end of 2006, Canadian mining companies had $62 billion in direct investment abroad, while foreign firms had $38 billion invested in Canada. Overall, in all sectors, outward stocks were $523 billion and inward stocks were $449 billion as of the end of 2006.

It is delicate, if not hypocritical, to call for tough rules limiting foreign investment in Canada when our own companies such as Barrick, Goldcorp, Teck Cominco, Cameco, Kinross and many others are actively investing and acquiring assets in foreign countries. Ironically, one of the factors that made Alcan such an attractive target in 2007 was the foreign acquisition of France’s Pechiney that it itself undertook in 2003. The potential hypocrisy of tighter Canadian controls would also become evident in examining junior “mineral exploration” type

In this current environment, there is no particular momentum behind the notion of public policy makers interfering in foreign takeovers of Canadian mining firms. There is no evident public outcry against this trend in Canada and, even if there was, it is not evident what could be done in response — the globalization train left the station a few decades ago in the aftermath of the GATT and WTO liberalizations through the 1960s and 1970s.

Among Canadian political parties, neither the Conservatives nor Liberals presently have an appetite for investment barriers. It is possible that the coming years will see state-controlled entities from China become more aggressive.

Similarly, large monopoly firms from Russia may also seek foreign targets. Whether such a trend would change the present levels of openness of Canada’s mining

December 2007 / January 2008 | 67

engineering exchange Hatch Maritime — making its mark on Newfoundland and Labrador lenge head-on, completIt’s just another day at ing the project eight the office for engineering months ahead of schedule consultants to network and under budget. “It’s and seek out contracts, important to spend but once in a while, if you money where you have to really know your stuff, and not where you don’t,” the tables are turned.

Pearson stated. “If you When CVRD Inco (then walk around the demo Inco) took the innovative plant, in some places decision to use hydromet you’ll see extremely technology on the sulexpensive equipment, like phite deposits at their the autoclave; in other Voisey’s Bay project, they areas, the construction turned to Hatch for guidlooks pretty economical.” ance. Hatch is renowned By focusing efforts on for its experience in certain key areas and hydromet technology on technology, it allowed the laterite deposits and was flexibility for the engiready and willing to take neers to make changes on the challenge of devel- Hatch designed and installed the hydromet equipment in Voisey's Bay Nickel's demonstration more easily during the oping a way to process plant in Argentia, Newfoundland. sulphide deposits using hydromet — Pearson, began planning and designing tweaking period of the testing process. something that had never before been the 1:100 scale demonstration plant in Hatch awarded the team the Roy Curtis Argentia, Newfoundland. Construction Project Excellence Award for their attempted.

CVRD Inco signed an agreement with of the demo plant was completed in efforts, proving that you can achieve a Newfoundland and Labrador to test October 2005, and it is well into the fea- world-class safety record and get it done hydromet technology on sulphide sibility stage. Pearson is optimistic that on time and under budget. deposits via a demonstration plant. If a full-fledged hydromet plant will Working closely with the people of successful, the company can then go become a reality. “We have until 2008 to Newfoundland was a new experience ahead and build a commercial process- make a decision,” he explained, “but for Pearson. “One evening I met the ing plant by 2011. If unsuccessful, this looks like a winner.” group that I would be working with in “Everything was a challenge,” Newfoundland. They disarm you with CVRD Inco will resort to using an existing technology. So why spend millions of Pearson remarked, referring to the humour, jokes, and an open attitude, dollars on an unknown? Al Green, proj- complexity of designing and building a but the next day, boy, do they deliver.” ect manager for the pre-feasibility study 1:100 scale facility. Everything is the Pearson was surprised and very happy for the commercial plant, explained: same, from pumps and pipes to instru- to find himself working with a group of “Hydromet is a more mentation and controls, but in a much the most talented people he’s ever

by Haidee Weldon environmentally benign smaller version. “The perception versus worked with, and pointed out that 25 process compared to traditional smelting the reality was a bit of a surprise.” per cent of the team were women. “The Another challenge was getting the Newfoundland team was young, well and is less costly in the long run.”

Inco began testing the possibility of demo plant up and running as quickly trained, and had a great work ethic,” hydromet technology on sulphide as possible.

Pearson concluded. “They were a joy to As part of the agreement with the work with.” deposits at a mini-plant in Mississauga, Ontario. Built on a 1:10 000 scale, they province, CVRD Inco was unable to ship Good working relationships, partquickly proved that hydromet technol- anything from the mine/mill out of the nering with the right company, and tryogy could successfully be used to province until the demo plant was fin- ing a new technology led to the successprocess the ore from the Voisey’s Bay site. ished. On top of that, they had to make ful completion of the project. Finishing In the meantime, Hatch engineers, their first shipment before first ice, or ahead of time and under budget was just headed by project manager John wait until spring. Hatch met that chal- icing on the cake. CIM 68 | CIM Magazine | Vol. 2, No. 8

eye on business When a flow-through share is not a flow-through share This article deals with flow-through shares (FTS), and the risk of a share not being a FTS, where rights negotiated in the best interest of subscribers could have an unforeseen (or undesired) effect.

FTS are shares issued by a principal business corporation under a flowthrough shares agreement, pursuant to which the subscriber has agreed to pay the subscription price (the Subscription Price) in cash, and the corporation has agreed to incur Canadian exploration expenses (CEE) and/or Canadian development expenses (CDE) in an amount not less than the Subscription Price within a period of time (usually by the end of the following calendar year to benefit from a deduction in the year the FTS are subscribed for) and, finally, to renounce to the subscriber an amount of CEE (or CDE) so incurred.

One of the features of a FTS is that the subscriber’s adjusted cost base is deemed to be nil. Presumably, it is intended that the holder’s tax benefit result from the deduction of CEE (or CDE) renounced to such person, and there should

by Claude E. Jodoin therefore be no need for the realization of a loss on the disposition of the FTS. Excluded from the definition of FTS are “prescribed shares,” which is a reference to certain rights and conditions considered to be unacceptable, such as an indemnity given by the issuing corporation to the subscriber to ensure, directly or indirectly, that any loss that the subscriber may sustain by reason of the holding, ownership or disposition of

a FTS is limited in any respect. It is, however, acceptable to provide for an indemnity that does not exceed the amount of tax payable by a holder under the Income Tax Act (Canada), or a provincial statute, and which arises as a consequence of the corporation’s failure to renounce an amount or the reduction of the amount renounced.

In other words, a subscriber to a FTS must not benefit from any indemnity to limit that person’s exposure to the risk of losses from holding a FTS, except an indemnity for additional income tax payable by the subscriber in certain circumstances.

A decision of the Federal Court of Appeal (FCA)1 handed down on October 26, 2007 highlights the importance of proper drafting of such an indemnity. In that case, the issuing company had not only failed to incur the appropriate amount of CEE, and therefore its renunciations were invalid, but the company went into received ship and its shares became worthless.

The taxpayer sought to claim a capital loss in respect of the shares.

However, as mentioned earlier, if such shares were FTS, their cost would be deemed to be nil, thus eliminating any possibility of claiming a loss.

The FCA held that the relevant time to determine whether a share is a FTS is the time at which it is issued, and thus the shares remain FTS even if the issuing company fails to live up to its end of the bargain.

However, the subscription agreement in this particular case had, in addition to the usual covenants to incur CEE and renounce same to the subscribers, the following indemnity (the Indemnity): “The Corporation hereby agrees to indemnify and save harmless the 1

The Queen v. JES Investments Ltd., FCA, A474-06, October 26, 2007 (2007 FCA 337).

Subscriber from and against any liability, loss, damage, cost, or expense which the Subscriber may sustain or incur arising out of or in any way connected with the expenditure of the Subscription Amount.”

The taxpayer argued that the presence of this indemnity disqualified the share from being a FTS, and therefore the taxpayer should benefit from a capital loss. Canada Revenue Agency, interestingly enough, was arguing that such an indemnity was a typical clause and somehow did not strip the shares from FTS status.

The FCA was of the view that the indemnity came within the ambit of the broad language of the provision, which included rights that are “contingent,” rights that are effective “either immediately or in the future,” rights that “directly or indirectly” provide assurances and rights to loss limitation protection “in any respect.”

Consequently, the shares in question were not, in the FCA’s view, a FTS, and the taxpayer could therefore benefit from a capital loss from their disposition.

While in this case it was in the taxpayer’s interest to disqualify the shares from being FTS, this will not always be the case. It is important to keep in mind that an indemnity cannot go beyond the income tax liability arising from the failure of the corporation to renounce an amount or the amount renounced is reduced.

This case serves as a reminder that while counsel zealously negotiates in the best interests of their clients, and it may be tempting to try and improve the situation of a subscriber of FTS, we must keep an eye on the limits imposed by the ITA, failing which the shares could lose their FTS status, with disastrous consequences. CIM About the Author Claude E. Jodoin works for Fasken Martineau DuMoulin LLP December 2007 / January 2008 | 69

standards Reasonable prospects for economic extraction

These are heady times for the mining industry, with strong metal prices, investor enthusiasm for the junior explorer and ready access to finance for mineral

by Greg Gosson and Larry B. Smith projects.

Many projects were shelved in the past because of technical deficiencies —

70 | CIM Magazine | Vol. 2, No. 8

insufficient tonnes or grade, metallurgical problems, the deposit was too deep or too narrow, or the project was physically or economically under water. With the possibility of sustained metal prices, now is the time for those previously “challenged” projects to be re-evaluated and financing sought for continued development. The question is, do these deposits have reasonable prospects for economic extraction, as required by all mineral resource reporting codes?

NI 43-101 defines a mineral resource as that portion of the mineral inventory that has reasonable prospects for economic extraction.

However, a mineral resource is not simply an inventory of all blocks above a

given cut-off grade. The spatial distribution and geological and grade continuity must also be considered. The qualified person (QP) must consider factors significant to project economics at the mineral resource estimation stage, and not just when qualifying mineral reserves.

CIM Best Practice Guidelines for estimating mineral resources require the factors significant to project economics be current, reasonably developed and based on generally accepted industry practice and experience. In establishing the cut-off grade, it must realistically reflect the location, deposit scale, continuity, assumed mining method, metallurgical processes, costs and reasonable long-term metal prices appropriate for the deposit.

Variations within the resource model (rock characteristics, metallurgy, mining methods, etc.) may necessitate more than one cut-off grade or economic limit in different parts of the deposit model. There must be sufficient knowledge of the metallurgical characteristics of the deposit, which should be supported by preliminary metallurgical test results.

For deposits amenable to open-pit mining methods, a Lerchs-Grossman (LG) pit of measured, indicated and inferred confidence categories (not an optimized and operational pit outline) captures the required considerations of location, deposit scale, continuity and assumed mining method, metallurgical recovery, operating costs and reasonable long-term metal prices. Blocks captured within the pit shell meet the test of “reasonable prospects for economic extraction” and can be declared a mineral resource. Material outside of the pit shell remains as a quantity and grade of a potential mineral deposit, but should not be considered a mineral resource.

An LG pit is not a regulatory requirement, but it quickly captures all of the required inputs under CIM Definition Standards for mineral

standards resources. It is an efficient means by which to assess the reasonable prospects for economic extraction of material that can be mined by open pit methods, as long as the inputs of operating costs, metal prices and metallurgical recoveries are reasonable.

Resource geologists without the mine software capabilities can establish an average cut-off grade using preliminary metallurgical recoveries and reasonable operating costs, and then plot the blocks that meet this cut-off grade and visually assess their continuity and mineability. This can be done by visually estimating the maximum depth for an open pit that allows an acceptable strip ratio, with a higher cut-off to cover the cost of mining both ore and waste.

The grade shell method is sometimes the only reasonable approach for mineralization that can be mined underground. If it is a discrete vein,

then the resource may be the material in this vein shape that is above the economic cut-off and sufficiently contiguous and thick enough to be mined.

Isolated blocks, which could clearly not support underground development to access the blocks, should be removed from the resource inventory.

The important thing is to be reasonable (not conservative, or excessively liberal) in the choice of parameters.

The resource estimator should try to identify that material that has “reasonable prospects” but may not be reserves at this time.

Finally, a qualified person estimating mineral resources cannot completely ignore capital costs to develop a mineral deposit when assessing reasonable prospects for economic extraction.

Economic extraction implies a repayment of capital, at least on a going forward basis. In our opinion, the qualified person should determine the

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s

prospects for sufficient revenues from the deposit to cover capital costs, which can be estimated from similar operations. This point is the subject of much active discussion between the members of most resource code committees and will likely will be resolved and codified in the near future.

To accommodate the dynamics of the mining industry, the definition of mineral resources under the reporting codes was chosen to be principle-based and not prescriptive. This allows resource estimators the freedom to make appropriate, experienced-based decisions, but also imposes a responsibility to explain and justify their basis for determining reasonable economics. CIM About the Authors Greg Gosson is technical director, geology and geostatistics, AMEC Americas Limited, and Larry B. Smith is group manager, Mining & Metals Consulting, AMEC

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December 2007 / January 2008 | 71

canadians abroad Successfully going global Who doesn’t love a story about a small Canadian company making it big?

The leap to becoming a global company is never easy and is guaranteed to come with its pros and cons, benefits and sacrifices, both good and bad alike. In John Starkey’s case, both owner and principal consulting engineer for Starkey & Associates, going global has had very satisfying results.

Starkey first started working independently when he left Kilborn Limited (now SNC-Lavallin) in 1989 and, at that time, formed a company called Applied Ore Testing Inc. Just when business had started to really grow, Russia fell, and the rising success of AOTI fell with it as the mining industry reacted to this unknown force. Starkey was forced to close the laboratory and pilot plant. Two other Canadian companies in the ore testing business also suffered the same fate at that time. But the test, later to be named SPI (SAG Power Index), had been born.

From 1992 to 2000, Starkey worked under various contracts while codeveloping (for commercial use) the SPI test in which he held a royalty interest and which he ultimately sold when the SPI test was well accepted by the industry. At an age when most people are primed and ready to gather up their retirement fund and settle into a cozy, tranquil, long-awaited state of being (highly deserved after years of hard work), here was John Starkey, ending one phase of his

by Carolyn Hersey life and just as quickly starting up a brand new one.

After selling SPI, he founded Starkey & Associates Grinding Design and Process Engineering in 2000, and in 2002 he invented the SAGDesign test, a test whose sole purpose is to design SAG mills and SAG grinding circuits. Starkey & Associates, Dawson Metallurgical Labs Inc. and Outotec are all the original founding members of the SAG Design Consulting Group.

72 | CIM Magazine | Vol. 2, No. 8

SAGDesign samples being taken at the Fedorova Project drill site north of the Arctic Circle, not far from Murmansk.

From left to right: Dmitry Yermakov, senior metallurgist, Barrick Moscow; John Starkey; and Yury Kulikov, metallurgist, TOMS.

With Starkey as the inventor and Dawson doing the research and test work, the two collaborate effectively in doing the test work and designing commercial SAG mills around the globe. Operating at arms length, Outotec carries the patent and offers to its clients a process guarantee for commercial grinding mills designed by Starkey and supplied by Outotec.

Starkey says that the first major step towards going global began two years ago, when he was given the opportunity to go to Russia on a major contract with High River Gold to oversee engineering of their Berezitovy gold milling plant.

The new technology was a huge hit in Russia, most likely because they didn’t have the up-to-the-minute technology required to design mills they felt comfortable enough to sell to the Western mining world. Western support is required to attract foreign investment.

A major change that took a little getting used to was the very evident language barrier. With the help of a Russian interpreter, he was easily able to get his message across. All information was presented in both English and Russian PowerPoint, with the interpreter translating the spoken word during the seminars. Testing in Russia began and in 2006, Starkey & Associates had officially gone global.

One of the biggest challenges to working globally was the need to endure long periods of travel away from home. “Even though TOMS had requested my help before I came, it was necessary to meet the Russians at their places of work and spend enough time with them in Russia to show them that I was serious in my offer to do business with them. The seminar presentation took several months to prepare and translate and was the defining moment in their acceptance in doing what I proposed. Without

canadians abroad these efforts it may not have happened,” commented Starkey.

One of the advantages of travelling is that you get to meet interesting people. On his last trip back from Irkutsk, Starkey was returning home with a lot of luggage.

Unfortunately, as the flight to Moscow was about six hours late, he missed his connecting flight to Toronto. If that weren’t bad enough, the lack of trolleys meant that Starkey had to carry all five bags out to the taxi — the international terminal was six kilometres away. “Fortunately, a young man in his mid-twenties offered to help or I might be there still!” he said.

The young man in question was a business consultant working for a large international company in Moscow, but Starkey found his story compelling.

“At the age of 16, his father, a director and shareholder of a Russian company, died. Overnight, his mother went from affluence to total poverty, as his father’s share in the company was seized by the other directors. She had no legal recourse, but he and his mother persevered somehow to get his education completed. It is fitting that he now, as a business graduate, is advising Russian companies on the need to change and to abolish unproductive practices,” he continued. “He has a brilliant future ahead of him.”

To date, the SAGDesign Consulting Group has added three satellite member laboratories and now has four SAGDesign test mills up and running in various parts of the world — one located in the United States at Dawson, two in Russia at TOMS and Irgiredmet, and one in Australia at Ammtec.

Business appears to be booming again.

“The transition didn’t happen overnight though,” Starkey was quick to point out. “The entire process is a reasonably long one.” After running the business out of his home for so long, he needed to open up an office (in Oakville), and this was done in May of this year. He also noted: “…although working from home provided great flexibility, especially when it came to

CIM Magazine reaches your doorstep. This mill is used for testing radioactive ores and will be moved to any licensed laboratory where radioactive ore testing is being done.

Despite all the commotion, the hustle and bustle, and the long list of ‘to dos,’ Starkey said that “going global has affected the company for the better. This was just a good moment in my life to do the things that I really enjoy, both at work and at home.” All the more proof that being sucJohn Starkey cessful doesn’t necessarily mean losing touch with the spending time with my wife, family things in life that really matter. In and grandchildren, it is nice to have fact, it sometimes can give you a that certain boundary between work greater appreciation for the time that you do spend with those that mean and home life.”

Hiring more staff is the next priority. the most. Starkey’s achievement is Since going global, though, Starkey proof that hard work and dedication says he’s so busy it’s hard to even find pay off. CIM time to think about who to hire and when. The more difficult applications to come by are the young gradWe enable the maximum uates hot off the economic performance of global school grounds. mining projects throughout Young graduates the resource life cycle. mean he can train EXPLORATION from the ground up THE LIFE CYCLE on the new, more OF YOUR MINE reliable procedures on how to design QUALITY SAG mills. Young graduates also INDEPENDENT mean that there are CLOSURE no pre-conceived EXPERTISE notions — a clean slate so to speak.

DEVELOPMENT Still, he’s not about to slow down yet. A fifth portable SAGDesign test PRODUCTION mill (which he owns) will be put into service in Lakefield on a uraPeople, Passion, Performance. Trusted Globally. nium project by the www.wardrop.com time this issue of December 2007 / January 2008 | 73

The ghost of Ontario’s iron If you drive down BROTHERS, 195 tons, Ontario’s Hwy 7 today, you JESSIE, 315 tons, HERwill find little to mark the CULES, 318 tons, PERSIA, 294 tons, ANNIE FALold site of the Blairton CONER, 303 tons, SWEET mine and village. But less HOME, 218 tons, H. P. than 150 years back, the MURRAY, 255 tons, western shore of Crowe WOODARD, 277 tons, Lake was home to a lively UNDINE, 300 tons, village of 500, and trains N O RT H U M B E R L A N D , regularly hauled ore from 300 tons and TRADE Ontario’s first, and for a WIND, 300 tons.” few years at least, largest The total ore produced iron mine. by the mine that year is The original discovery estimated at some 15,000 of the deposit was made tons, with virtually all of in 1816, and the mine Artist’s drawing of Blairton Mine. Photo sourced from the Cobourg Public Library. the production being was completed on the site in 1820. An iron works project The Cobourg, Peterborough, and shipped to smelters in Cleveland and began in 1821 in nearby Marmora, Marmora Rail and Mining Company Pittsburgh.

By this time, the village of Blairton finishing construction two years was formed in August 1866 from the later. The iron works was built to remains of the bankrupt Cobourg & had been built to provide the labour. At smelt the ore produced by the mine, Peterborough Rail Co. The first project its peak, with the mine employing but both mine and iron works were of the new company was to construct between 300 and 400 workers, the vilseverely hampered by the lack of 14 kilometres of track from the lage had grown to 500 residents, with infrastructure; there was simply no Blairton Mine to the nearest navigable seven general stores, four hotels, two way to economically transport ore or point on Trent River. From there, small bakeshops, a school, a railway station, pig iron out of the area and to the steamers moved the mined ore to a post office, a church and numerous potential buyers.

Trenton. Despite the railway company liveries and blacksmith shops. The The transportation challenges going bankrupt again in 1877, the mining company had also constructed proved more damaging to the iron track linking mine and river remained numerous boarding houses for the sinworks than the mine. The original in operation until the mine was shut gle workers, as well as approximately 40 company houses. builder, Charles Hayes, soon surren- down in 1883.

The prosperity of both mine and vildered the reigns to his principal credThe rail meant that the Blairton itor, Peter McGill, Mine could finally come into its own. lage lasted for over a decade, until the

by Dan Zlotnikov who continued By 1870, a scant 50 years after the winter of 1883, when ice flows caused operating the iron works until 1826. mine’s construction, the mine was the severe damage to the railroad trestle Two further attempts to revive the largest iron mine in Ontario. The May and water began seeping into the mine project — a plan to use convict 29, 1869 issue of the Hamilton itself. The track was repaired, but the labour, rejected by the government in Spectator listed a number of schooners mine was never reopened.

The end of the mine meant the end 1837, and Joseph Van Norman’s departing Cobourg harbour with loads of the village of Blairton as well. By attempt to restart the enterprise in of ore: “The ore from the Blairton Mine is 1900, only 25 of the 500 residents 1848 — failed, and the iron works fell to ruin. The mine continued to lan- being brought forward and shipped in remained, and Blairton became a ghost guish in a state of financial loss for an considerable quantities. The following town. Today, a single two-storey comadditional 18 years, until finally, a way vessels have already cleared from pany house is all that remains of Cobourg: ORION, 253 tons, TWO Ontario’s first iron mine. CIM appeared to cheaply move the ore.

74 | CIM Magazine | Vol. 2, No. 8

HR outlook Explore for More – the Canadian mining industry’s attraction and recruiting brand The mining research. Generally, the study revealed industry has been a significant lack of awareness among feeling the pres- target groups. sure of skills The mining perception study was shortages for conducted by Ipsos-Reid and APCO some time, and Worldwide. In order to complete the with approxi- questionnaire, the 474 qualified responmately 92,000 dents had to be between the ages of 16 workers needed and 35. Additionally, quotas were put in over the next place to ensure a 50/50 gender split and decade, the need a 60/40 rural/urban split. for profound, colSome of the words used by the study lective and multi- participants to describe their percepfaceted effort has never been more tions of the mining sector included: apparent. There are six primary groups dirty, dark, environmentally unsound, that have been identified as using old employment recruiting tart e c h n o l o g y, gets: youth, women, physically Aboriginals, new Canadians, demanding, mature workers and ex-pats not familyfriendly and of the Canadian mining having a ‘poor industry. future.’

Marketing tactics for the Through a mining industry’s recruiting collaborative campaign need to be ramped effort led by up in order to attract these MiHR, the alternative pools of labour.

Messaging and imagery mining indusmust resonate with each of try has taken these groups if the industry action to comwants to effectively manage bat these negthe skills gap. ative percepUnderstanding the pertions with the ceptions held by under-repintroduction resented groups is essential of a vibrant to creating effective commubrand called Explore for nications and

by Mel Sturk branding strateMore.

The brand has gies. The Mining been created Industry Human Resources based on a Council conducted market comprehenresearch in 2005-2006 to sive underbetter understand these standing of groups in terms of their youth trends, awareness levels and opinperceptions, ions of the sector. Youth, and motivawomen, aboriginal peoples tors. Explore and new Canadians were all Example of the sort of material MiHR is putting for More uses surveyed as part of the out.

❖

clean lines and engaging colours to showcase the bright future of the mining sector. The primary tagline of the brand A Career in Mining is More than You Think is intended to intrigue the career seeker and invite further investigation. The secondary messages of Challenge. Adventure. Travel. Good Pay. Great Opportunity. reinforce the exciting nature of career options in the sector.

Through the support and input of industry partners, career profile kit folders, pop-up display banners and engaging career attraction presentations have been created under the brand.

Over the next seven months, MiHR and its partners will take Explore for More to the next level by means of the Mining Industry Attraction, Recruitment, and Retention Strategy (MARS). A photo gallery will be developed to boost the impact of brand messaging with lively and influential imagery. MiHR will also be testing the brand among three of the other target groups: women, aboriginal people and new Canadians, so that it can be customized and tailored to each audience. Coupled with other attraction, recruitment and retention tools, this communications campaign is intended to increase the pool of labour available to the minerals and metals industry.

Explore for More is the attraction and recruitment brand of the industry.

Educational institutions, mining employers, suppliers, organized labour and other communities of interest are encouraged to use and apply the Explore for More brand for consistent and powerful career attraction results.

Interested stakeholders will be invited to attend the launch of the second generation of the powerful and lively industry brand in June/July of 2008. CIM About the Author Mel Sturk is project manager, recruitment and retention, Mining Industry Human Resources Council December 2007 / January 2008 | 75

cim news CIM welcomes new members Asch, Glenn, British Columbia Babin, Timothy, New Brunswick Burke, Paul, Nova Scotia Cluff, Daniel, Ontario Dodsworth, Aaron, Nova Scotia Duncan, Murray, Alberta Eckert, Sylvain, Saskatchewan Ferguson, Matt, Nova Scotia Fitzpatrick, Michael, Ontario Freites Alvarez, Jose Gregorio, Venezuela Gareau, Kristian, Ontario Gizikoff, Katherine, British Columbia Huot, François, Québec Jean, Rosaire, Québec Kappes, Branden, USA Khurshid, Mujahid, Ontario MacCormack, Steve, Nova Scotia McDonald, Jarret, Nova Scotia Mitchell, Jason, British Columbia Myers, Corey, Nova Scotia Nguyen, Tin Trung, Québec Nikolic, Stanko, Australia Rauschning, Frank, South Africa

Reid, Bradley, Alberta Ross, Andrew, Australia Schwartz, Michael, Ontario Shen, Ani, Québec Sherbanuk, Kevin, Alberta Sigut, Florence, Nova Scotia Smith, Douglas, British Columbia

Tremblay, Tracy, Ontario Webb, Christie, Ontario Wortman, Gregory, Ontario

Corporate FLSmidth Minerals Wenco International Mining Systems

A look back in time 35 YEARS AGO… • CIM was gearing up for its 75th anniversary taking place in 1973.

• Readers learned of University of New Brunswick's new million-dollar geology department wing. The MacKenzie Research Wing was named in honour of Graham Stewart MacKenzie, who was head of the geology department until 1960.

• E.R. Ward Neale, a member of CIM, was elected president of the Geological Association of Canada.

• The Geological Survey of Canada carried out a $100,000 high-sensitivity aeromagnetic survey in the Bathurst area.

The above was taken from the December 1972 issue of CIM Bulletin.

Your Source For Metallurgy and Materials Science For more details visit: www.metsoc.org or www.cmq-online.ca

76 | CIM Magazine | Vol. 2, No. 8

s a’ ! ad a an ad C t! an of n s ve ns C ar e a au ye ning 25 ier n 25 mi es i g r sl tm tin ie n en ra em bro m r eb p élé ne el C évé C l pa ci in pr

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CIM Conference and Exhibition • Congrès et Salon commercial de l’ICM May 4–7, 2008 • Edmonton, Alberta • 4 au 7 mai 2008 This design first shipped in 1988.

Le W2000 en 1988

An 8750, one of our newest dragline models.

Aujourd’hui : Le 8750

Then • Le passé

Now • Le présent

Your chance to win!! All participants in the photo display will be Voici votre chance de gagner un prix ! Tous les participants dans entered in a draw for a digital camera, to be announced at the CIM Conference and Exhibition in May.

la présentation de photos courent la chance de gagner un appareil photo numérique. Les gagnants seront annoncés aux Congrès et Salon commercial de l’ICM en mai.

Happy birthday | Joyeux anniversaire

★ ★ ★★★ ★ ★★ ★★ ★

to CIM Exhibition | au Salon commercial de l’ICM

This year marks 25 YEARS of the CIM Exhibition, and everyone’s invited to join in the festivities. To commemorate a quarter century of innovation and excellence, CIM is seeking photos of THEN AND NOW, showing the progress of the past 25 years.

The display will highlight industry’s achievements and demonstrate the evolution of the show, mining and equipment. Help celebrate the 25th anniversary of CIM Exhibition!

Please help recognize how far we’ve come by sending your photos under three main categories: CIM Exhibition

Mining

Technology

Please send photos to photocontest@cim.org by January 15, 2008, with a caption describing the photo and the year clearly marked. * CIM reserves the right to future use of all photos entered.

★★ ★★ ★ ★★ ★ ★★ ★

Cette année marque le 25e ANNIVERSAIRE du Salon commercial de l’ICM et tous sont invités à se joindre aux festivités. Afin de commémorer ce quart de siècle d’innovation et d’excellence, l’ICM est à la recherche de photos représentant LE PASSÉ ET LE PRÉSENT et qui démontrent les progrès effectués au cours de ces 25 années.

La présentation mettra en lumière les accomplissements de l’industrie et démontrera l’évolution du salon, de l’exploitation minière et des équipements. Contribuez aux célébrations du 25e anniversaire du Salon commercial de l’ICM !

Aidez-nous à souligner le chemin parcouru en envoyant vos photos dans l’une ou l’autres des catégories suivantes : Salon de l’ICM

Exploitation minière

Technologie

Faites parvenir vos photos à photocontest@cim.org avant le 15 janvier 2008 et indiquez clairement ce qui apparaît sur la photo et l’année où la photo a été prise. * L’ICM se réserve le droit d’utiliser toutes les photos soumises dans l’avenir.

du 24 au 28 février | 2008 | February 24 to 28 Val-d’Or, Québec Toutes les raisons sont bonnes pour participer à MEMO 2008!

Travailler ensemble vers

2020

Working together towards

2020

✶ L’imitateur André-Philippe Gagnon interrompra son horaire chargé à Las Vegas pour vous divertir lors du Souper de Gala du lundi soir. ✶ Naviguez le site de l’ICM pour tout connaître sur ce premier événement tenu sous un chapiteau! Le Salon commercial MEMO 2008 a été agrandi pour permettre d’accueillir plus de fournisseurs, d’entrepreneurs et de consultants. Le chapiteau hébergera de nombreux produits et services de pointe qui pourront améliorer votre exploitation minière. ✶ Le meilleur programme technique sur la maintenance et l’exploitation : des maîtres vous apprendront comment améliorer votre exploitation.

Parcourez le programme technique en ligne pour connaître les noms de tous les conférenciers. ✶ Établissez des contacts avec les spécialistes en exploitation et en maintenance – les conférences de l’ICM représentent des occasions par excellence pour élargir votre réseau de contacts. MEMO est l’endroit tout désigné pour rencontrer des gens qui sont confrontés aux mêmes défis que vous. ✶ Prenez le temps d’aller visiter l’exploitation Goldex d’Agnico-Eagle – Voyez la naissance d’une mine d’or. ✶ Puisque MEMO est une conférence « verte », vous y verrez « le bon côté des choses. »

There are many good reasons to attend MEMO 2008! ✶ Impressionist André-Philippe Gagnon will be taking time out from his hectic Las Vegas schedule to provide fabulous entertainment at the Gala Dinner on Monday. ✶ Browse CIM’s first-time-ever big tent event! The MEMO 2008 Trade Show has been expanded to accommodate more suppliers, contractors and consultants. The big tent will host a number of leading products and services available to improve your mine operation. ✶ Canada’s top maintenance and operators’ technical program: learn how to improve your own operations

from the people making it happen. Browse the technical program online to see the full line-up of speakers. ✶ Network with the operations and maintenance specialists — CIM conferences are top opportunities to build your contact list. MEMO’s the place to meet likeminded people addressing similar challenges at their sites. ✶ Take the time to tour Agnico-Eagle’s Goldex operation — see a gold mine being born. ✶ Feel good about your MEMO experience — this conference is green!

www.cim.org/memo2008/fr www.cim.org/memo2008

MINING INDUSTRY RESEARCH SERVICES

Move over David Caruso, Mine Scene Investigation is taking over

What About Your market share The market demands Your competitors?

Our know-how and ability at your disposal to better assess your opportunities

Lead investigators Scott and Nat working on MSI 101

The CIM Northern Gateway Branch, in association with the North Bay Mining Association, held a unique social event on October 13. “Mine Scene Investigation (MSI) Case 102” was an interactive dinner theatre that combined live acting with video and audience participation to solve a mystery. The play was written, produced and performed by local members.

The evening focused on locating a missing person who had joined a local North Bay mining services company and had left town because of a mysterious misunderstanding.

The MSI team and audience were enlisted to review the clues and help solve the mystery. The show started with a short safety video presented by Ben Dover on the proper use of rubber gloves. The group then reviewed a brief history of mining in the North Bay area through an interactive quiz, followed by a review of the local companies and the current occupations available in the industry. The lead investigators reviewed the evidence and had previously taped “investigative” interviews with local companies, which often were not helpful but were lots of fun.

A mock “crime” scene was constructed on the stage and the audience investigated the area to find clues.

by Roy Slack The table centerpieces included rubber gloves, magnifying glasses, flashlights and handcuffs (a very popular item!) to assist in the investigation. The audience was then asked to fill out a ballot indicating where they thought the missing person went and which company he joined.

During dinner, the correct ballots were sorted, and after dinner the mystery was solved. The correct answers were drawn for a number of prizes.

There were 200 people in attendance. The evening helped raise money for mining-associated educational initiatives in the North Bay area and was supported by a number of local companies. CIM

in the South American marketplace.

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December 2007 / January 2008 | 79

cim news La section Thetford Mines reçoit Niobec Le mercredi 24 octobre dernier, la section de Thetford Mines de l’ICM recevait monsieur Steve Thivierge, surintendant de l’ingénierie et de la géologie de la mine Niobec à titre de conférencier en présence d’une quarantaine de participants de la région.

Situé à proximité de Chicoutimi (ville de Saquenay), le complexe minier et métallurgique Niobec produit un concentré de niobium (appelé parfois colombium) depuis 31 ans. Monsieur Thivierge a expliqué que depuis 1994, Niobec produit à partir d’une nouvelle fonderie construite sur le site de la mine, du ferroniobium vendu à une soixantaine de clients situés aux 4 coins du monde.

Le gisement contenant le niobium est constitué d’une carbonatite enfouie

sous une masse de 230 pieds de calcaire. Les réserves prouvées peuvent soutenir la production de niobium au rythme actuel pour près de 10 ans, mais des ressources sont possibles pour près de 20 à 25 ans.

Les participants ont appris qu’environ 1,7 million de tonnes de minerai sont extraites à chaque année de la mine souterraine à partir de divers niveaux entre les profondeurs de 300 à 1 450 pieds. La méthode d’exploitation est par chantier ouvert («open stope»).

Monsieur Thivierge discutait du concentré contenant environ 58 % de Nb2O5 est produit par broyage et flottation du minerai de pyrochlore. Le concentré est converti en ferroniobium par un procédé complexe par réaction alu-

Thetford Mines Branch hosts Niobec On Wednesday, October 24, Steve Thivierge, superintendent of engineering and geology for the Niobec Mine, spoke before the Thetford Mines Branch. About 40 people were present.

Located near Chicoutimi (City of Saquenay), the Niobec mining and metallurgical complex has been producing niobium (sometimes called columbium) concentrate for the past 31 years. Thivierge explained that since 1994, Niobec has a new converter on the mine site that transforms the concentrate to ferroniobium, which is then sold to 60 clients around the world.

The ore body containing niobium is a carbonatite buried beneath 230 feet of limestone. The proven reserves can sustain the current rate of niobium production for another 10 years; there are, however, possible resources for another 20 to 25 years.

The participants learned that about 1.7 million tonnes of ore per year are

80 | CIM Magazine | Vol. 2, No. 8

extracted by open stope mining from several levels at depths of 300 to 1,450 feet.

Thivierge also explained that the concentrate, containing about 58% Nb2O5, is produced by grinding and flotation of the pyrochlore ore. The concentrate is converted to ferroniobium through a complex aluminothermal reaction at 2,200ºC. After cooling, the ferroniobium is crushed and bagged or packaged in various metal containers according to clients’ specifications. Niobec produces 10 per cent of the world supply of ferroniobium; two Brazilian companies produce the other 90 per cent.

Ferroniobium mainly serves as a steel alloy for gas and oil pipelines, in automobile and aeronautical construction, as well as in buildings and bridges. Adding eight to ten ounces of niobium per tonne of steel can increase steel strength, ductility and corrosion resistance by up to 25 per cent. CIM

minothermique à 2 200°C. Après refroidissement, le ferroniobium est concassé et ensaché dans des sacs ou emballé dans des contenants métalliques de divers formats aux besoins des clients. Niobec produit 10 % du ferroniobium vendu dans le monde et deux compagnies du Brésil 90 %.

Les principaux usages du ferroniobium sont comme éléments d’alliage pour des aciers spéciaux servant à la fabrication de pipelines (gazoducs et oléoducs), dans la construction automobile et aéronautique et dans la construction de ponts et immeubles. L’ajout de 8 à 10 onces de niobium par tonne d’acier peut augmenter jusqu’à 25 % la force mécanique de l’acier, sa ductilité et sa résistance à la corrosion. CIM

mac facts

The industry contributed $39.6 billion to Canada’s GDP in 2006, or approximately 3.6% of the national total.

Approximately 22% of Canadian exploration and deposit appraisal expenditures in 2006 focused on base metals, 39% on precious metals, 17% on diamonds, and 11% on uranium.

The industry paid $4.7 billion to federal and provincial/territorial governments in 2005: approximately $1.1 billion in royalties, $1.8 billion in corporate income tax, and $1.8 billion in personal income tax.

AN ONLINE MEMOIRE

MINING

IN

CANADA

a personal history c

Excerpt

c

e had been sub-drifting around the pillar in this strope because there was another vein showing up. Besides breasting, there was a lot of work to do in this particular place. I left the men and went to see other work places. I returned before my lunch to check on the men, whom I found sitting on top of the manway, eating their lunch. I did not come out of the man-way, but just stood on the rung of the ladder. I learned from them that little had changed. After having my lunch, I went up by cage to the top level and then made my second trip climbing down the ladders. I was at the station when I heard the nine bells and the level signal. At that time, Joe Stevens, the other shift boss, was with me. We called the cage and went to the level that was calling, but no one was there. While we were standing and debating what to do, we noticed a waving light in the distance. We ran to it and one of the three men told us that a co-worker was under a large rock. It was Jack Tanner.We took the ladder down and, to my surprise, I saw the large rock at the same place where I had told the men to stay away from. We couldn’t see Jack’s body. I went to the phone and called my boss and other people, like the safety and mine superintendents. In a few minutes, they all came down, as did a doctor and an RCMP officer. We raised the rock with hydraulic jacks and the doctor reached for the body with his hand.

He declared Jack dead.

W

cim news Hollistic and sustainable mining technology One of this year’s CIM Distinguished Lecturers, Doug Morrison, is well-known for his animated and engaging talks. His presentation, titled Hollistic and Sustainable Mining Technology, has been a huge hit at several CIM branches.

Morrison’s background is in deep underground hardrock mining, particularly ground control and safety, as well as mine design and productivity. CIM met up with him to discuss the focus of his presentation.

these practices in the future and who are the next generation of mine operators?

CIM What attracted you to becoming a CIM Distinguished Lecturer?

MORRISON I was honoured to be nominated as a Distinguished Lecturer and pleased to take on the role because it is an opportunity to initiate a broader discussion within the industry about the challenges the future will bring. With everyone focused on the immediate demands in their own operation, there is little opportunity for people to consider the issues that are common across all operations. I think the challenges we face cannot be met by companies individually but will require collective action by the Canadian industry as a whole.

CIM For those who are not familiar with your lecture, please explain what it entails.

MORRISON The talk is an examination of how well the mining industry is addressing the important questions of the day — return on investment, productivity and effectiveness and whether the industry in developed countries like Canada is going to be socially sustainable in the face of the demographic changes in society. The way the industry operates now was shaped by the presDoug Morrison sure of low commodity prices, but now that prices are projected to remain high for some time, are we changing the way we operate to meet these new demands by addressing the fundamental issues or just riding the crest of a wave?

CIM You have had an extensive career in mine operations and design. What has been the highlight of your career?

MORRISON The highlight of my early career in operations was helping to develop the means of managing rockburst in deep bulk mining operations. As a consultant, travelling internationally to all quarters of the globe has been a privilege but has reinforced the idea that all mines experience the same technical issues and exhibit very similar behaviourial characteristics. What varies is the way different national and ethnic cultures respond to the challenges they face and how the same message has to be expressed differently in order that it be accepted and acted upon. This is more than just translating into the local language; ideas have to be conveyed in a way that enables the audience to hear the message and take it on board before they can begin to implement a solution.

CIM What are some of the things your audiences can expect to learn about from your lecture?

CIM After speaking to a few CIM branches, do you feel you have achieved your intended goals?

MORRISON The investment community talks about the creation and destruction of value, based on the return on capital (or not) provided by an operation. It can be difficult for operators to imagine how this happens, but there are simple examples of ‘value destruction’ — cases

by Robertina Pillo that will be easily recognized in almost every operation, such as turning ore into waste, hidden indirect costs and losing time. Are we going to continue with

MORRISON I think the lectures so far have been well received.

In each case, the talk stimulated a conversation about the issues confronting the industry, which was my objective — not to provide information, but to initiate a larger dialogue that does not appear to be happening because everyone is so busy with trying to meet the immediate demands of their projects and operations.

Doug Morrison is scheduled to speak at several future group events.

Act now to reserve him for your next branch function.

For more information on his presentation contact rpillo@cim.org today!

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cim news Protection du bassin versant de la Rivière Bécancour Dans le cadre de sa série de conférences, la section de Thetford Mines de l’ICM recevait monsieur Simon Lemieux, coordonnateur de l’organisme Grobec à titre de conférencier le 12 septembre dernier.

Devant une trentaine de participants, monsieur Lemieux a expliqué les objectifs et le mandat de son organisme à savoir la protection de l’eau du bassin versant de la Rivière Bécancour qui s’étend sur 220 kilomètres du lac Bécancour jusqu’au fleuve SaintLaurent.

Cet important cours d’eau traverse les territoires de 6 MRC et draine une superficie de plus de 2 600 km2. C’est l’un des 33 bassins versants priorisés par le Gouvernement du Québec dans sa politique nationale de l’eau (PNE) adoptée en 2002. Le territoire se répartit comme suit en différents milieux : 58 % en forêt, 39 % en agriculture et 3 % en milieu urbain. La population totale du territoire est d’environ 66 700 personnes.

Obituaries CIM expresses its sincere condolences to the families and friends of the following members: Charles Cameron Allen joined CIM in 1954 and became a life member in 1979.

Ken Bergwall became a member of CIM in 1992. He passed away on May 7, 2007.

Paul Brown joined CIM in 1977.

Clarence Arthur Leslie became a member of CIM in 1950 and a life member in 1982.

Maurice William Tucker joined CIM in 1966. He became a life member in 1993.

Les participants ont appris que la gestion intégrée de l’eau par bassin versant (GIEBV) s’inscrit dans une démarche de développement durable qui stipule que la gestion de la ressource eau doit se faire sans compromettre sa disponibilité et sa qualité pour les générations futures. Ceci implique qu’il faut prendre des décisions ou établir des règles qui assurent un partage équitable de la ressource ainsi qu’un équilibre entre les usages actuels de l’eau, le renouvellement naturel de la ressource et les usages liés à des besoins futurs.

Pour ce qui est de la qualité de l’eau de la Bécancour, monsieur Lemieux avait de mauvaises nouvelles à nous annoncer. Au lieu de s’améliorer, la qualité de l’eau se détériore et ce malgré les investissements importants des municipalités depuis plusieurs années; usine d’épuration des eaux, séparation du réseau d’égouts sanitaires de celui des égouts pluviaux, etc. La qualité (bactérienne et physico-chimique) de l’eau de la rivière est mesurée 6 fois par année à partir de plusieurs points d’échantillonnage. D’autres actions seront donc requises pour restaurer la qualité naturelle de l’eau de la Rivière Bécancour. CIM

Protection of the Bécancour River watershed On September 12, the Thetford Mines Branch hosted Simon Lemieux, coordinator for Grobec, as a lecturer in its series of conferences.

Lemieux explained to the 30 participants the mandate and the objectives of his organization, i.e. protect the Bécancour River watershed.

The Bécancour River covers a distance of over 220 kilometres, from Bécancour Lake to the St. Lawrence River.

This important watercourse flows through six regional county municipalities and drains an area of more than 2,600 square kilometres. It is one of 33 watersheds given high priority in the Quebec Government Water Policy that was adopted in 2002. The territory comprises 58 per cent forest cover, 39 per cent agricultural land, and three per cent dedicated to urban environments. The total population is about 66,700.

The participants also learned that the integrated water management at

the watershed level represents a major course of action in the government’s sustainable development approach, which states that water must be managed without compromising its availability and quality for future generations. This means that decisions must be taken or rules established that ensure fair sharing of the resource between the current users, its natural replenishment and usage respecting future needs.

Lemieux delivered bad news about the water quality. Instead of improving, it is deteriorating despite significant municipal investments over several years — wastewater treatment plant, separate systems for sanitary sewers and storm sewers, etc. The bacterial and physicochemical quality of the water is measured six times per year at several sampling stations. Other actions will therefore be required to restore the Bécancour River to its natural water quality. CIM

December 2007 / January 2008 | 83

CIM Calendar of Events Calendrier des activités de l’ICM

Disclaimer: CIM members be advised. The following pages contain a large number of CIM activities and conferences taking place across Canada, in Santiago, Chile, and in Bishkek, Kyrgyz Republic in 2008. The use of these pages may result in knowledge sharing, establishing contacts, and a darned good time. Please use them wisely.

Note: Additions, date and location changes, and cancellations may occur. Please keep up to date by visiting the calendar of events at www.cim.org or by contacting your local branches.

Avis de non-responsabilité : Avertissement aux membres de l’ICM! Les pages suivantes contiennent des annonces pour de nombreuses activités et pour des congrès de l’ICM qui auront lieu au Canada, à Santiago, au Chili, et à Bishkek, République du Kyrgyzstan en 2008. L’utilisation du contenu de ces pages pourrait conduire à un partage de connaissances, à l’établissement de contacts et à avoir du véritable bon temps. Veuillez utiliser l’information de manière rationnelle.

Note : Des ajouts, des changements de dates et de lieux ou des annulations sont possibles. Demeurez à jour en visitant le Calendrier des activités au www.cim.org ou en contactant votre section locale.

84 | CIM Magazine | Vol. 2, No. 8

Conferences/Congrès 40th Annual Canadian Mineral Processors Operators’ Conference/40e Conférence annuelle des minéralurgistes du Canada January 22-24 Ottawa, Ontario Contact: Janice Zinck, CMP Secretariat Tel.: 613.995.4221; Fax: 613.996.9041 Email: jzinck@nrcan.gc.ca Website: www.c-m-p.on.ca

Maintenance Engineering-Mine Operators’ Conference/ Colloque sur l’ingénierie de maintenance et les exploitations minières (MEMO) February 22-28 Val-d’Or, Quebec Contact: Chantal Murphy, CIM Meetings Coordinator Tel.: 514.939.2710, ext. 1309; Fax: 514.939.2714 Email: cmurphy@cim.org Website: www.cim.org

CIM Conference and Exhibition/ Congrès et Salon commercial de l’ICM May 4-7 Edmonton, Alberta Contact: Chantal Murphy, CIM Meetings Coordinator Tel.: 514.939.2710, ext. 1309; Fax: 514.939.2714 Email: cmurphy@cim.org Website: www.cim.org

Annual General Meeting of the Mining Society of Nova Scotia June 12-13 Baddeck, Cape Breton Island, Nova Scotia Contact: Florence Sigut Tel./Fax: 902.567.2147 Email: florence@ns.sympatico.ca

Canadian International Petroleum Conference (CIPC)/ SPE Gas Technology Symposium 59th Annual Technical Meeting June 16-19 Calgary, Alberta Contact: Dave Cuthiell, Conference Chairman Tel.: 403.205.6876; Fax: 403.262.4792 Email: dcuthiell@suncor.com Website: www.petsoc.org

The Conference of Metallurgists (COM)/ Congrès des métallurgistes August 24-27 Winnipeg, Manitoba Contact: Brigitte Farah, MetSoc of CIM Tel.: 514.939.2710, ext. 1329; Fax: 514.939.9160 Email: bfarah@cim.org Website: www.metsoc.org

Symposium 2008 on Mines and the Environment/ Symposium 2008 sur l’environnement et les mines November 2-5 Rouyn-Noranda, Québec Contact: Chantal Murphy, CIM Meetings Coordinator Tel.: 514.939.2710, ext. 1309; Fax: 514.939.2714 Email: cmurphy@cim.org Website: www.cim.org

December 2007 / January 2008 | 85

District 1 New Brunswick Contact: Paul Rennick (paul.rennick@gnb.ca) June Sept. 4-6 October November

NB Coal Classic Golf Tournament (Minto, New Brunswick) CIM New Brunswick Branch 33rd Convention (Bathurst, New Brunswick) Student – Industry Meet n’ Greet (Fredericton, New Brunswick) Annual Meeting (Fredericton, New Brunswick)

Newfoundland Contact: Len Mandville (lenmandville@gov.nl.ca) City: St. John’s, Newfoundland May Oct. 30-Nov. 1

Lobster Do (jointly sponsored with the GAC Newfoundland Section) CIM NF Branch Annual Conference

District 2 Chapais-Chibougamau Contact : Patrick Houle (patrick.houle@mrnf.gouv.qc.ca) Ville : Chibougamau, Québec Avril

Différentes activités pour souligner la Semaine minière du Québec

Harricana Contact : Francine Fontaine (franfontaine@cablevision.qc.ca) Ville : Val-d’Or, Québec 30 janvier 14 mars 30 avril 14 mai 31 mai

Présentation par Jean-Luc Chouinard sur la Mine Langlois de Ressouces Breakwater Vins et fromages Présentation par Ghislain Poirier sur le projet Foxtrot de Stornoway Présentation par Paul Bonneville sur Scorpio Mining Tournoi de golf

Montréal Contact : Richard Simon (richard.simon@polymtl.ca) Ville : Montréal, Québec 14 janvier 11 février 10 mars 7 avril 12 mai

Souper conférence Dîner conférence Souper conférence Dîner conférence Souper conférence

Québec Contact : Marie Fortin (mariefortinicm@hotmail.com) Ville : Québec, Québec 21 janvier 18 février 17 mars

Conférence organisée par les étudiants de MetSoc Assemblée Générale Annuelle et conférence avec présentateur (David Lentz, Éminent conférencier de l’ICM) Conférence des étudiants avec buffet

Québec Nord-Est Contact : Luc Gagnon (lgagnon@catecn.qc.ca) Ville : Sept-Îles, Québec Activités à confirmer

Rouyn-Noranda Contact : Jean Goutier (jean.goutier@mrnf.gouv.qc.ca) Ville : Rouyn-Noranda, Québec Activités à confirmer

District 3

Northern Gateway

Cobalt

February May 12-16

Contact: Todd Steis (todd.steis@mti.ca) City: Haileybury, Ontario January 31 February 28 March 27 September 25 October 23 November 27

Seafood Night General meeting with guest speaker General meeting with guest speaker Seafood Night General meeting with guest speaker General meeting with guest speaker

May 12-16 September November

Annual General Meeting Mine Scene Investigation 103 for the Near North School Board with the North Bay Mining Association during Mining Week Membership meeting during Mining Week Annual Golf Tournament Membership meeting

Ottawa Contact: Jean-François Fiset (jefiset@nrcan-rncan.gc.ca) City: Ottawa, Ontario

Hamilton Contact: Shannon Clark (shannon_clark@dofasco.ca) City: Burlington, Ontario April 9

Contact: Roy Slack (roy.slack@cementation.ca) City: North Bay, Ontario

Dinner meeting with guest speaker (Juergen Schlacher, CEO, Dofasco Metal Arcelor)

January 22

February 28 March 12 April 10

May June

Buffet lunch and lecture with guest speaker (CIM Distinguished Lecturer Glenn K. Nolan, Missanabie Cree First Nation) Buffet lunch and lecture with guest speaker (Joan Kuyek, MiningWatch) Buffet lunch and lecture with guest speaker (MarieClaude Corbeil, GSC) Buffet lunch and lecture with guest speaker (CIM Distinguished Lecturer David Lentz, University of New Brunswick) Buffet lunch and lecture with guest speaker (to be determined) Buffet lunch and lecture with guest speaker (to be determined)

Porcupine Contact: Sébastien Tolgyesi (stolgyesi@xstratacopper.ca) City: Timmins, Ontario Events still in planning stage

Saguenay

Sudbury

Contact : Michel Tremblay (michel_tremblay@uqac.ca) 31 janvier

Avril

25 avril Mai Juin Septembre 3 octobre 7 novembre

5 à 7 et Assemblée Générale Annuelle (Chicoutimi, Québec) Visite du Centre des Technologies de l’Aluminium (Chicoutimi, Québec) Semaine minière du Québec (Chicoutimi, Québec) : • Visite du petit musée minéralogique, UQAC • Conférences • Capsules publicitaires et entrevues à la radio CBJ-FM • Tirage de billets pour visite et souper sous terre, Mine Niobec Party de crabes annuel de la section Saguenay de l’ICM (Chicoutimi, Québec) Visite et souper sous terre, Mine Niobec (St-Honoré, Québec) Visite de l’usine de traitement des eaux usées industrielles de Newalta (Laterrière, Québec) Visite de l’usine d’Alcan (Alma, Québec) Oktoberfest (La Baie, Québec) Party d’huîtres annuel de la section Saguenay de l’ICM (endroit à déterminer)

Thetford Mines Contact : Pierre Laroche (lab.plar.cq@globetrotter.net) Ville : Thetford Mines, Québec 1 et 2 fév.

Mars

Avril Juin Septembre Octobre

Tournoi de curling et assemblée annuelle Conférence avec présentateur (Jean-François Dorion, Département de technologie minérale, Cégep de Thetford) Conférence avec présentateur Tournoi de golf Conférence avec présentateur Conférence avec présentateur

Contact: George Darling (gdarling@srk.com) City: Sudbury, Ontario January 17 February 1 March 20 April 17

June 13

General membership meeting 7th Annual Sweetheart Dinner and Dance Student Oyster Night General membership meeting with guest speaker (CIM Distinguished Lecturer Glenn K. Nolan, Missanabie Cree First Nation) 10th Annual Lobster Dinner and Dance

Toronto Contact: CIM Toronto Branch Administrator (cim_toronto@rogers.com) City: Toronto, Ontario January 3 January 24 February 7 February 21 March 5 April 3 April 17 May 15 June 19 September 4 September 17 September 18 October 2 October 16 November 6 November 20 December 11

Branch executive meeting Branch luncheon and Annual General Meeting Branch executive meeting Student luncheon PDAC – CIM joint luncheon Branch executive meeting Branch luncheon Branch luncheon Branch executive meeting Branch executive meeting Franck Grieco Golf Tournament Branch luncheon Branch executive meeting CIM Toronto Branch Grubstake Event Branch executive meeting Branch luncheon Branch luncheon

December 2007 / January 2008 | 87

District 4 Red Lake Contact: Carmen Storey (carmen.storey@ontario.ca) City: Red Lake, Ontario January

Meeting with guest speaker (David Lentz, CIM Distinguished Lecturer) February Meeting with guest speaker (CIM Distinguished Lecturer) March Meeting with guest speaker (CIM Distinguished Lecturer) April Meeting with guest speaker (CIM Distinguished Lecturer) May Local CIM meeting with guest speaker(s) 1st week of June CIM Red Lake Branch Exploration Roundup meeting and field trip mid-September CIM Red Lake Branch Golf Tournament October 16 CIM Red Lake Seafood Night and annual meeting

Saskatoon Contact: Robert Carey (rcarey.amec@sasktel.net) City: Saskatoon, Saskatchewan January 17 February 21 March 21 April 17 July 11 September October November November

CIM Environmental Night with guest speaker CIM Uranium Night with guest speaker from Cameco about lessons learned from Cigar Lake flooding CIM Student Paper Night with guest speakers (undergraduate students) Spring Social Night CIM Golf Tournament CIM General Interest Night with guest speaker CIM Potash Night with guest speaker CIM Mineral Processing Night with guest speaker CIM Annual Ball

Saskatoon GeoSection Contact: Bruce Eglington (bruce.eglington@usask.ca) City: Saskatoon, Saskatchewan Jan.-May Sept.-Dec. Late Nov.early Dec.

Lunch meetings Lunch meetings Public lecture at Saskatchewan Geological Survey Open House

Thompson Contact: Inge Robinson (irobinson@inco.com) City: Thompson, Manitoba January March May Winter

Supper technical meeting with guest speaker (CIM Distinguished Lecturer) Supper technical meeting with guest speaker (CIM Distinguished Lecturer) Supper technical meeting with guest speaker (CIM Distinguished Lecturer) Supper technical meeting with guest speaker

District 5 Calgary Contact: Aruna Sood (cimcalgary@gmail.com) City: Calgary, Alberta January 9

Technical luncheon with guest speaker (David Lentz, CIM Distinguished Lecturer) February 13 Technical luncheon with guest speaker (Paul Bauman, WorleyParsons Komex) March 12 Technical luncheon with guest speaker April 9 Technical luncheon with guest speaker May 14 Technical luncheon with guest speaker June 11 Technical luncheon with guest speaker September 10 Technical luncheon with guest speaker October 8 Technical luncheon with guest speaker November 12 Technical luncheon with guest speaker December 10 Technical luncheon with guest speaker

Edmonton Contact: Mark Watson (mwatson@eba.ca) City: Edmonton, Alberta January 14 February 11 March 10 April 14 September 8 October 6 November 10 December 8

Dinner meeting with guest speaker Dinner meeting with guest speaker Student Night Dinner meeting with guest speaker Dinner meeting with guest speaker Dinner meeting with guest speaker Dinner meeting with guest speaker Dinner meeting with guest speaker

Oil Sands Contact: Ken Chekerda (chekerda.ken@syncrude.com) City: Fort McMurray, Alberta Late January Technical talk with guest speaker (Chris Brothen, Kal Tire) February 23 CIM Funspiel Late March Technical talk Technical talk – Student Night Late May CIM Oil Sands Branch Golf Tournament June 21

Thunder Bay

Yellowknife

Contact: Andrew Mitchell (andrew.mitchell@wolfdenresources.com) City: Thunder Bay, Ontario

Contact: Diane Baldwin (diane_baldwin@gov.nt.ca) City: Yellowknife, Northwest Territories

Events still in planning stage

Events still in planning stage

Winnipeg Contact: Mark Francis (sfrancis@mts.net) City: Winnipeg, Manitoba January 17 February 21 March 20 April 17 May 8

Meeting with guest speakers (CIM Distinguished Lecturer; Kim Tyler, Canadian Arrow) Meeting with guest speaker (Pam Strand, CEO, Shear Minerals) Meeting with guest speaker (TBA) Meeting with guest speaker (Brad Baker, Rainy River Resources) Meeting with guest speaker (TBA) and short annual general meeting

88 | CIM Magazine | Vol. 2, No. 8

District 6

Vancouver

Crowsnest

Week of Jan. 28 Luncheon during Mineral Exploration Roundup February 28 Luncheon with guest speaker (Chantal Lavoie, De Beers Canada, on the Snap Lake project) March 27 Luncheon with guest speaker April 24 Luncheon with guest speaker May 29 Luncheon with guest speaker June 26 Luncheon with guest speaker September 25 CIM Student Night October 30 Luncheon with guest speaker November 20 Evening event with student focus

Contact: Mike Lukach (michael_lukach@elkvalleycoa.ca) January March June 19

Branch dinner with executive committee nominations/elections (Fernie, British Columbia) 2nd Annual Curling Funspiel (Coleman, Alberta) Annual Golf Tournament – CIM Scholarship Fundraiser (Fernie, British Columbia)

Georgia Strait Contact: Cale DuBois (cale.dubois@quinsam.com) City: Campbell River, British Columbia March June October

Contact: Patty Moore (patty.moore@wardrop.com) City: Vancouver, British Columbia

6th Annual CIM Bonspiel Technical presentation Techncial presentation

North Central BC Contact: Greg Rasmussen (greglrasmussen@gmail.com) City: Prince George, British Columbia June 25-27

Annual General Meeting

South Central BC Contact: Peter Witt (pwitt@teckcominco.com) City: Kamloops, British Columbia Sept. 10-12

Annual Branch Meeting with guest speaker (Don Lindsay, president, Teck Cominco)

Trail Contact: Stewart Twigg (stewart.twigg@amec.com) City: Trail, British Columbia Events still in planning stage

International Los Andes-Chile Contact: John Selters (jselters@vtr.net) City: Santiago, Chile March 17 April 14 May 19 June 16 July 21 August 18 September 22 October 20 November 17 December 15

Monthly meeting Special “Copper Week” & EXPOMIN meeting Monthly meeting Monthly meeting Monthly meeting Monthly meeting Monthly meeting Monthly meeting Monthly meeting Monthly meeting

Bishkek-Central Asia Contact: Kenneth Arne (kenarne1@yahoo.com) City: Bishkek, Kyrgyz Republic May

Seminar “Advances in exploration techniques and equipment”

December 2007 / January 2008 | 89

AWARDS GALA‘08

May 5, 2008 Shaw Conference Centre Edmonton, Alberta

WITH SPECIAL ENTERTAINMENT BY

Tickets 1.800.667.1246 www.cim.org

“POPERA WITH A SOUL INFUSION” PRESENTED BY CATERPILLAR® AND ITS CANADIAN DEALERS

2008 Seminar Series

PROFESSIONAL DEVELOPMENT

STRATEGIC RISK QUANTIFICATION and MANAGEMENT for ORE RESERVES and MINE PLANNING

Upcoming 2008 Seminars • Applied risk assessment for ore reserves and mine planning: Conditional simulation for the mining industry Montreal Roussos Dimitrakopoulos, McGill University, Canada • Strategic risk management and applied optimization in mine design Montreal David Whittle, BHP Billiton, Australia, and Roussos Dimitrakopoulos, McGill University, Canada • Computer simulation and animation for the mining industry: Mine design, mine planning and equipment selection Montreal John Sturgul, University of Idaho, USA

For information please contact: R. Dimitrakopoulos Department of Mining and Materials Engineering McGill University Montreal, Quebec Email: admcrc.mining@mcgill.ca Phone: 514.398.4755, ext. 089638 Fax: 514.98.7099 Website: http://cosmo.mcgill.ca For registration please contact: Chantal Murphy Meetings Coordinator, CIM Suite 855, 3400 de Maisonneuve Blvd. W. Montreal, QC H3Z 3B8 Email: cmurphy@cim.org Phone: 514.939.2710, ext. 1309 Fax: 514.939.2714 Website: www.cim.org

Mining Engineering

• Mineral project evaluation techniques and applications: From conventional methods to real options Montreal Michel Bilodeau, McGill University, Canada, and Michael Samis, AMEC, Canada • Geostatistical mineral resource/ore reserve estimation and meeting the new regulatory environment: Step-by-step from sampling to grade control Montreal Michel Dagbert, Geostat Systems International, Canada, Jean-Michel Rendu, Consultant, USA, and Roussos Dimitrakopoulos, McGill University, Canada • Theory and practice of sampling particulate materials Montreal Dominique François-Bongarçon, AGORATEK, USA • Quantitative mineral resource assessments—An integrated approach Montreal Don Singer and David Menzie, US Geological Survey, USA

Linking Science and Technology for Global Solutions

2008 137th Annual Meeting & Exhibition March 9-13, 2008 Ernest Morial Convention Center New Orleans, Louisiana, USA

From Knowledge to Networking, you will find it all at TMS 2008!

More than 50 symposia covering: Light Metals Extraction, Processing, Structure and Properties Emerging Materials Materials and Society With a special plenary session, “Sustainability, Climate Change and Greenhouse Gas Emissions Reduction,” with leaders from Alcoa Inc., Chalco (tentative), Norsk Hydro, Rio Tinto Alcan, and United Company Rusal (tentative)

Plus: Continuing Education Special Lectures Networking Events Exhibition Featuring 150 Companies Student Events New Orleans tours and the chance to make a direct impact on this recovering city!

Register online before February 11 to save—www.tms.org/annualmeeting.html LEARN • NETWORK • ADVANCE

SUSTAINABLE PRACTICES IN METALLURGY AND MATERIALS: EMBRACING THE FUTURE WINNIPEG CONVENTION CENTRE

AUGUST 24–27, 2008 WINNIPEG, MANITOBA, CANADA

TECHNICAL PROGRAM ZINC and LEAD AEROSPACE materials and manufacturing IV

MANAGEMENT in metallurgy advanced CHARACTERIZATION

in honour of Dr. Mahesh Chaturvedi

techniques applied to minerals, metals and materials functional NANOMATERIALS: current status and future trends advanced high-strength STEELS processing

WATER, AIR and LAND: sustainability issues in mineral and metal extraction (WALSIM) CORROSION and wear of materials structural ALLOYS for LIGHTWEIGHT vehicules

cim news 2007-2008

CIM Council • Conseil de l’ICM President | Président Jim Popowich President-Elect | Président-élu James Gowans Immediate Past President | Président sortant François Pelletier Finance Chair | Président du comité des finances Michael Cinnamond

Vice Presidents | Vice-présidents District 1 | Ron Shaw District 2 | Laura Mottola District 3 | Dave Joyce District 4 | Doug Kramble District 5 | Zoltan Lukacs District 6 | Ed Beswick International/Internationale | Peter Lahucik

Societies | Sociétés Canadian Mineral Processors Society | John Folinsbee Société canadienne du traitement des minerais Coal and Oil Sands Society | Société du charbon et des sables bitumineux Environmental Society | Société de l’environnement Geological Society | Société de la géologie Industrial Minerals Society | Société des minéraux industriels Innovative Mining Technology Society | Société des technologies minières innovatrices Maintenance and Engineering Society | Société de l’ingénierie et de l’entretien

Ken Chekerda Bob Butler Chris Davis TBA Brad Kingston Chris Dougherty

Management and Economics Society | Société de gestion et de l’économie minérale

Keith Spence

Metallurgical Society | Société de la métallurgie

Joel Kapusta

Metal Mining Society | Martin Drennan Société de l’exploitation des mines et des métaux Mining Society of Nova Scotia | Société minière de la Nouvelle-Écosse

Paul Smith

Petroleum Society | Société du pétrole

K.C. Yeung

Rock Engineering Society | Société de la mécanique des roches

Luc Beauchamp

Society for Innovative Mining Technology Society | Tim Skinner Société des technologies minières innovatrices

CIM Council

Nominations

Conseil de l’ICM

✓ CIM President-Elect / Président-élu de l’ICM ✓ CIM Vice President Districts 2, 4 and 6 / Vice-présidents des districts 2, 4 et 6 Notwithstanding provisions in CIM by-laws for nominating committees to nominate candidates for president-elect and vice president: > A nomination may be made for president-elect by 100 members. > A nomination may be made for vice president by 50 members. > Nominations must be submitted to Jean Vavrek, CIM Executive Director, at jvavrek@cim.org no later than December 31, 2007.

Nonobstant les règlements de l’ICM sur les comités pour proposer des candidats aux positions de président-élu et vice-président : > Un candidat peut être proposé au poste de président-élu par le biais d’une lettre signée par 100 membres. > Un candidat peut être proposé au poste de vice-président par le biais d’une lettre signée par 50 membres. > Les nominations doivent être soumis à Jean Vavrek, directeur exécutif de l’ICM, à jvavrek@cim.org avant le 31 décembre 2007.

94 | CIM Magazine | Vol. 2, No. 8

cim news

CIM National Office/ Bureau national de l’ICM Here to help you/À votre sevice 855–3400 de Maisonneuve Blvd. West • Montreal, Quebec, H3Z 3B8 • Tel.: 514.939.2710 Email: cim@cim.org • Website: www.cim.org

Name/Nom

Title/Titre

Jean Vavrek

Executive Director/Directeur exécutif

Extension/Poste

•

Fax: 514.939.2714

Email/Courriel

1301

jvavrek@cim.org

1318

smajor@cim.org

1313

abrosseau@cim.org

1300 1312

acyr@cim.org ekinsella@cim.org

Finance and Administration/Finances et administration Serge Major Anne Brosseau Alexandra Cyr Elaine Kinsella

Director, Finance and Administration/ Directeur, Finances et administration Accounts Payable and Special Volumes/ Comptes payables et volumes spéciaux Administrative Support/Support administratif Accounts Receivable/Comptes à recevoir

Marketing, Awards and Branches/Marketing, prix d’excellences et sections Marie-Hélène Émond Robertina Pillo

Director, Marketing and Programs/ Directeur, Marketing et programmes Administrative Assistant and Coordinator/ Adjointe administrative et coordonatrice

1302

mhemond@cim.org

1316

rpillo@cim.org

1308

hednie@cim.org

1323 1310

anichiporuk@cim.org jtomiuk@cim.org

Media and Communications/Médias et communications Heather Ednie Andrea Nichiporuk Joan Tomiuk

Director, Media and Communications/ Directeur, medias et communications Assistant Editor/Rédactrice adjointe Technical Editor/Rédactrice technique

Events and Supply Management/Événements et gestion des fournitures Jean-Marc Demers

Senior Director, Business Management and Strategic Development/ Directeur principal, Gestion des affaires et développement stratégique

1314

jmdemers@cim.org

Martin Bell

Sales Manager, Exhibitions/ Directeur des ventes, Salons commerciaux Coordinator, Exhibits and Event Development/ Coordonatrice, Salons et développement événementiel

1311

mbell@cim.org

1320

jdallaire@cim.org

Meetings Coordinator/ Coordonatrice de congrès

1309

cmurphy@cim.org

1307

lfoley@cim.org

Josée Dallaire Chantal Murphy

Membership/Services aux membres Laura Foley Dawn Nelley Jo-Anne Watier

Membership Coordinator/ Coordonatrice, Services aux membres Membership Assistant/ Adjointe, Services aux membres Membership Assistant/Adjointe, Services aux membres

1307

dnelley@cim.org

1303

jwatier@cim.org

1329

bfarah@cim.org

1317

abrunet@cim.org

1327

rsaunders@cim.org

Metallurgical Society of CIM/Société de la métallurgie de l’ICM Brigitte Farah Anne Brunet Ronona Saunders

Manager, Administration and Meeting Planning/ Gérante, administration et planification de conferences Administrative Assistant/ Adjointe administrative Coordinator, Marketing and Publications/ Coordonatrice, Marketing et publications

December 2007 / January 2008 | 95

professional directory and product files Super•Cor Corrugated Steel Structures This 16-page product brochure covers AIL’s (Atlantic Industries Limited) Super•Cor corrugated steel structural solutions for use as mine portals, bridges, box culverts, underground storage and stream crossings.

Brochure details different sizes, shapes and treatments. Super•Cor’s larger annular corrugation permits construction of largest, longest and widest spans with nine times the stiffness of conventional structural plate. Request your copy today.

Contact Info: Atlantic Industries Limited 1 877 245-7473 Email: dgaston@ail.ca www.ail.ca

CORRIVEAU J.L. & ASSOC. INC. Land & Mining Surveyors GYRO & GPS SERVICES • SALES • RENTALS UNDERGROUND and SURFACE CONTROL • BOUNDARY and LEGAL SURVEYS • TOPOGRAPHIC SURVEYS • PHOTOGRAMMETRIC MAPPING 3D SCANNING and MODELLING • BOREHOLE DEVIATION • BATHYMETRIC SURVEYS 1085 - 3rd. Avenue Val d’Or, Quebec J9P 1T5 E-Mail: bureau@corriveaujl.com

Tel:(819) 825-3702 Fax:(819) 825-2863 Web: www.corriveaujl.com

JENIKE & JOHANSON Bulk Solids: Science/Engineering/Design x fine & coarse ore silos x concentrate bins & feeders x pneumatic conveying systems

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REACH INDUSTRY! Advertise in CIM Magazine Contact Dovetail Communications Inc. Account Managers: (905) 886-6641

96 | CIM Magazine | Vol. 2, No. 8

Joe Crofts ext. 310 jcrofts@dvtail.com

Janet Jeffery ext. 329 jjeffery@dvtail.com

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In next month’s issue Kicking off 2008!

The February 2008 issue of CIM Magazine will include the preliminary program of the CIM Conference and Exhibition,

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December 2007 / January 2008 | 97

voices from industry

Let’s go mining!

by Ed Beswick, vice president, CIM District 6

hat an honour to be asked to write a piece for the Voices from Industry page, especially during this exciting time of new discoveries, new mines and mine expansions.

What is mining all about? What is CIM all about?

Broadly speaking, isn’t mining about helping people live and prosper in a sustainable society? We each have our own personal perspectives and goals in life, and mining can help us achieve these goals. CIM, too, has a great role to play. As a largely volunteer-based organization, CIM provides its members with excellent networking and venue capabilities including opportunities to share knowledge, increase our awareness on important technological advancements and issues, meet new people, and reunite with old classmates, friends and work colleagues.

This is the time to go mining.

Headhunters have never been busier.

Opportunities for new challenges or to grow and add more value in the present situation, whatever it may be, are available to us. The door has never been more inviting to many of our retired colleagues who are getting involved again as senior consultants, advisors or even as directors and presidents of many emerging or expanding mining companies. Welcome back! Also, at the other end of the spectrum, universities are fine tuning their respective earth science departments to ensure people develop our mines responsibly. Let’s all open the door to mining and welcome as many new students to CIM in 2008 as we can.

The technological advancement of mining has come an extremely long way since Georgius Agricola’s De Re Metallica in 1556, less than 500 years ago. In fact, mining reclamation laws in Canada are, at the most, 50 years old and environmental stewardship practices and our understanding of mining and the environment continues to improve, as technology presses things like detection limits and

W

98 | CIM Magazine | Vol. 2, No. 8

innovative environmental protection practices, including ongoing and post mine reclamation techniques. CIM is now, more than ever, playing an active role in local educational institutions, particularly through student chapters and through support from our local branches. Make no mistake, it is through advances in technology, and in particular for us, mining and processing technology, that our future world will be sustainable and, over the short and long term, a better place to live.

CIM provides crucial links to groups like SME, AusIMM, SAIMM, MAC and PDAC, among others, to help advance sustainable mining practices worldwide.

As Canadians, we need to show leadership on things like improving efficiencies and global warming science and solutions. But, most of all, we want to ensure our children and grandchildren are proud of what their ancestors achieved.

First Nations, the backbone of many of our mines in Canada, have never been more engaged in helping us develop new mines responsibly.

Community and cultural dynamics are ever more important in the process of searching for and developing new ore bodies.

If my title (Let’s go mining) confused you, let me explain. Etched in my memory is one morning in the dry at the Goldstream Mine near Revelstoke in British Columbia. One of the miners, arriving fresh and ready to start the shift, exclaimed “let’s go mining!” as if he couldn’t wait to get out on that old Unimog for a ride far underground to his work face. His enthusiasm was infectious. So let’s get out there and enjoy what we do.

Part of the fun of being involved with CIM is knowing that if we work collectively we can contribute to sustaining and improving our society.

In closing, the safety and well-being of our employees and their families must always be our highest priority. Every day, we also need to thank our owners and shareholders for trusting us to make sound decisions with their investments in mining, which is, in my view, the ever most sustainable industry. So, let’s go mining! CIM