CIM Magazine December '09/January '10 by CIM-ICM Publications

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CONTENTS

CIM MAGAZINE | DECEMBER 2009/JANUARY 2010 | DÉCEMBRE 2009/JANVIER 2010

NEWS 11

Gold, silver, bronze – and a little bit green Teck Resources steps up to the podium using salvaged materials for Olympic medals by G. Woodford

Green growth opportunities in China Canadian know-how can smooth China’s move to sustainable practices by J. Borsato Strong opinions, hard positions Private member’s Bill C-300 fuels public debate by M. Paduada The double X factor Industry women unite to broaden their role in the mining sector by C. Shaw

14 16 18

The proven potential and uncertain prospects of PDAC Mining Matters Growing

A call for clarity Regulation following the passage of

demand for education outreach program by L. Clinton Bill 173 will take shape with the continued input from stakeholders by M. Eisner

18 UPFRONT 22

Managing political risks in the global mining sector Solid CSR policy and strong commu-

When muscular metallurgy lost its hold

Century-old smelting innovations provide lessons for today by L. Southwick Better information, better results From exploration to execution, knowledge software provides solution to mining challenges by J. Borsato

nication cornerstones for good relations by P. Diekmeyer

A sharp eye trained on the future Market veteran Don Coxe anticipates the unwritten stories for 2010 by P. Diekmeyer

OUTLOOK 2010 PERSPECTIVES POUR 2010 30 36

Surveying the future of the industry An examination of the state of today’s mining education programs by M. Eisner Feeding the cat China’s appetites are Canada’s opportunities by D. Zlotnikov

Nourrir le chat La Chine – d’immenses possibilités pour les compagnies minières canadiennes

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

COLUMNS 84 85 86 87 88 90 92 93 94 96 99 130

MAC Economic Commentary by P. Stothart HR Outlook by S. Polowin Supply Side by J. Baird Standards by C. Waldie Eye on Business by C. Brown Innovation by S. Hardcastle and G. Kenny Women in Mining by H. Ednie First Nations by J.C. Reyes Engineering Exchange by H. Ednie Student Life by M. Eisner Mining Lore by G. Woodford Voices from Industry by G. Peeling

CIM NEWS 101 101

102

strikes balance between work and family by H. Ednie

Coast to coast The country’s exploration and

104

extraction activities “from far and wide” Newfoundland and Labrador Mining and exploration sectors are holding their own against the economic slowdown by the staff of the Mines Branch, Department

104

Nova Scotia Balancing mineral sector development and environmental protection

Social capital key to Aboriginal inclusion Opportunities abound for those who build bridges says Distinguished Lecturer Kelly Lendsay by H. Ednie

52 54 56 60 63

New Brunswick After a relatively quiet year, New Brunswick’s exploration sector is ready to take advantage of the coming economic recovery by S. McClenaghan, K. Thorne and L. Fyffe Québec Une année de grands défis pour l’industrie minière du Québec par A. Lavoie Quebec A challenging year for Quebec’s mining industry Ontario Exploration and development highlights reveal the beginnings of a rebound by B. Greenwell Manitoba Gold find leads the highlights in exploration and development by D. Prouse Saskatchewan Concentrating on the core commodities by the staff of the Saskatchewan Ministry of Energy

66 70

Alberta Staking rush and diamond finds in “Wild Rose Country” by D. R. Eccles British Columbia Despite the recession, exploration activity carries on by D. Grieve, B. Madu, B. Northcote,

and Resources

107

Mingling on the menu at Tastes of Toronto Toronto branch offers the best gastro-

108

Reimagining CIM A blueprint for the future

nomic and professional opportunities by. J Borsato by R. Bergen

111

Réimaginer l’ICM Un programme pour

115

2010 CIM Calendar of Events Calendrier des événements de l’ICM 2010 Cast your votes Amendments to CIM By-law

l’avenir

120

P. Wojdak, J. Fredericks and D. Lefebure

Mining in Society hits the road by J. Dallaire

105

by D. Khan and D. Webber

Les Mines dans la Société sur la route par J. Dallaire

of Natural Resources, Government of Newfoundland and Labrador

Projet Malartic par F. Jacques Western Copper VP speaks at luncheon Vancouver Branch honours past deeds and current projects by A. Doll The rising tide of success Eira Thomas

by H. Ednie

Yukon With vigorous exploration and development activity, Yukon stands apart from global trends

121

L’ICM passe au vote Modifications des règles de son Règlement interieur de l'ICM CIM National Office Bureau national de l’ICM CIM Council Conseil de l’ICM

by the staff of the Government of Yukon

Northwest Territories The territorial government recognizes its resources industry as the chief driver

122

of its economic future by D. Campbell Nunavut Exploration and mining companies adding value to the bottom line in Canada’s youngest territory by K. Costello and L. Ham

123

TECHNICAL SECTION 124

CALENDAR OF EVENTS 2010 CALENDRIER DES ÉVÉNEMENTS DE L’ICM

115

This month’s contents

IN EVERY ISSUE 6 8 106 107 129

Editor’s message President’s notes | Mot du président Welcoming new members Obituaries Professional directory

131

CIM MEMBERSHIP DIRECTORY / RÉPERTOIRE DES MEMBRES DE L’ICM Available to CIM members only / Disponible aux membres de l’ICM seulement December 2009 / January 2010 | 5

editor’s letter “There are many ways of going forward, but only one way of standing still.” ~ Franklin D. Roosevelt

panning the final month of one calendar year and the first month of the next, the annual Outlook issue offers us an opportunity to reflect on the year that was and to speculate on the one to come. Like everyone in the mining industry, we at CIM Magazine will not forget 2009 any time soon. Much of the editorial that we had prepared in advance for last year’s Outlook issue went bust when the economy did. Practically overnight, we had to rewrite (or even scrap) stories, plan fresh editorial, redo interviews and create a new cover to reflect new global economic realities. In creating the lineup for this forward-looking issue, it might have been logical for last year’s experience to imbue us with more caution; to perhaps “bank” fewer stories or take safer editorial stances. Well, it did not. It did however encourage us to scrutinize our processes and reevaluate the system of checks and balances to better prepare us for unanticipated occurrences. Like many who graduated from the school of hard knocks this past year, we have emerged wiser. Over the previous 12 months, we have often reported on how mining industry operations, organizations and individuals have been incorporating new practices and perspectives into their businesses. Despite projects being put on hold and finances becoming scarce, the industry did not stand still. Having kept a keen eye on some of the nuances and trends, many companies are now poised to capitalize on the opportunities opening up with the anticipated upswing. Perhaps the most noteworthy development is the recognition of Canada’s growing relevance on the global mining stage. One lesson the past year has taught us is that the impacts on and by the Canadian mining industry can no longer be confined to our geographic borders. This global perspective figures prominently in one of this year’s Outlook feature articles, as it examines burgeoning opportunities for operators and suppliers in developing economies. Significantly, some speculate that demand from countries such as China and India might actually outpace supply in the not-too-distant future. Our other feature article deals with what educational institutions are doing to ward off another impending shortage — that of the talent that will power the future of Canada’s minerals industry. Writer Marlene Eisner spoke with academics from some of the country’s top mining-related programs about what educators and the industry must do to attract and retain the workforce that will be charged with realizing Canada’s global aspirations. On a final note, on behalf of myself and the entire editorial team and national office staff, I would like to take this opportunity to thank you, our readers, whose ideas and interests are the lifeblood of this publication. May you continue to inspire the headlines of many more positive Outlook issues to come. Wishing you all a healthy, happy and prosperous 2010,

Angela Hamlyn Editor-in-chief 6 | CIM Magazine | Vol. 4, No. 8

Editor-in-chief Angela Hamlyn editor@cim.org Section Editors News, Upfront and Features: Ryan Bergen rbergen@cim.org Columns, CIM News, Histories and Technical Section: Andrea Nichiporuk anichiporuk@cim.org Technical Editor Joan Tomiuk jtomiuk@cim.org Publisher CIM Contributors Jon Baird, Louise Blais-Leroux, Jeff Borsato, Craig Brown, Darren Campbell, Laura Clinton, Karen Costello, Josée Dallaire, Peter Diekmeyer, Christopher Dodds, Alex Doll, D. Roy Eccles, Heather Ednie, Marlene Eisner, Jay Fredericks, Les Fyffe, Robert Giguère, Brock Greenwell, Dave Grieve, Linda Ham, Stephen Hardcastle, François Jacques, Glen Kenny, Minaz Kerawala, Daniel Khan, André Lavoie, Dave Lefebure, Bruce Madu, Sean McClenaghan, Bruce Northcote, Mike Paduada, Gordon Peeling, André Pijet, Robbie Pillo, Sheldon Polowin, Dave Prouse, Juan Carlos Reyes, Catharine Shaw, Larry Southwick, Paul Stothart, Kathleen Thorne, Craig Waldie, Dianne Webber, Paul Wojdak, Gillian Woodford, Dan Zlotnikov and staff of the Government of Newfoundland and Labrador Department of Natural Resources, Government of Yukon and Saskatchewan Ministry of Energy and Resources

Published 8 times a year by CIM 855 - 3400 de Maisonneuve Blvd. West Montreal, QC, H3Z 3B8 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included; Quebec residents add $12.60 PST; NB, NF and NS residents add $20.80 HST); U.S. and other countries, US$180.00/yr; Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615 www.dvtail.com National Account Executives 905.886.6641 Joe Crofts jcrofts@dvtail.com ext. 310 Janet Jeffery jjeffery@dvtail.com ext. 329

This month’s cover Illustrated by André Pijet Layout and design by Clò Communications. Copyright©2009. 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.

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president’s notes CIM — A community for leading industry expertise What a difference a year makes. Our outlook on the future always seems to be tempered by the situation we are in at the moment. This certainly bears true heading into 2010 as, collectively, we have a much rosier view of the world than we did a year ago. The period from late 2008 and well into 2009 was a challenging one for the mining industry and the world economy overall. However, we survived and things are looking brighter again. This has brought back some of the challenges that we were dealing with before the downturn, such as the impending shortage of skilled labour. Against the backdrop of an expanding industry, the demographics have not changed and we will have to replace a lot of retirees in the next ten years. CIM recently underwent a strategic planning process, which provided us with a new “Blueprint” to help us forge an even more relevant and productive path forward for the Institute. Through this exercise, we recognized CIM as “a community for leading industry expertise.” We believe that CIM can be a valuable asset to many more people in the industry than are currently enrolled as members. To help us move forward, we are investing in some new systems to help sustain the business, make us more competitive and provide a more relevant web site presence. Please read about the Blueprint process, our vision for the future of the Institute, and how you can be

part of that change on pages 108 – 110 in this issue. One of the real pleasures of being CIM president is getting to see the grassroots of the industry in which we live and work. I had the pleasure of being invited to CIM Branch meetings in Kamloops and St. John’s in the last two months. The Newfoundland Branch meeting, an annual event jointly sponsored by the Newfoundland and Labrador Natural Resources Ministry and the CIM Newfoundland Branch, is one of the best organized regional meetings I have been to. This year, it included a “mini” Mining in Society show — a first at the branch level. This collaboration between industry and government is commendable and one I believe should serve as a model for other jurisdictions to follow.

Michael J. Allan CIM President

L’ICM : Une communauté pour une expertise de premier plan Il s’en passe des choses en un an! Notre manière d’envisager l’avenir semble toujours influencée par les circonstances dans lesquelles nous nous trouvons. Cela est particulièrement vrai à l’aube de 2010 et, en général, le monde nous apparaît sous un jour beaucoup plus favorable qu’il y a un an. Nous avons vécu, à compter de la fin de 2008 et pendant une bonne partie de 2009, une période difficile, que ce soit en ce qui touche le secteur minier ou l’économie mondiale dans son ensemble. Malgré tout, nous avons survécu, et les perspectives redeviennent positives. Nous pouvons ainsi recommencer à nous pencher sur un problème sérieux qui occupait notre attention avant la récession, à savoir l’imminente pénurie de main-d’œuvre qualifiée. Notre industrie est en pleine expansion, mais les données démographiques n’ont pas changé et nous devrons trouver des remplaçants aux nombreuses personnes qui prendront leur retraite au cours des dix prochaines années. L’ICM a récemment entrepris un processus de planification stratégique, qui a débouché sur un nouveau « Blueprint » afin de nous aider à ouvrir une voie d’évolution encore plus pertinente et productive pour l’Institut. Pendant ce processus, nous avons reconnu que l’ICM représente « Une communauté pour une expertise de premier plan ». Nous croyons qu’en plus des membres actuels, l’ICM peut constituer un atout précieux pour beaucoup plus de personnes œuvrant au sein de l’industrie. Pour nous aider à aller de l’avant, nous investissons dans de nouveaux systèmes 8 | CIM Magazine | Vol. 4, No. 8

qui contribueront à soutenir nos activités, à accroître notre capacité concurrentielle et à rendre notre présence Web plus signifiante. Je vous invite à vous renseigner sur le processus entourant notre « Blueprint », notre projet d’avenir pour l’Institut, et sur la manière dont vous pouvez participer à cette évolution en lisant les pages 112 à 114 du présent numéro. L’automne a été une période très occupée pour moi. Au cours des deux derniers mois, j’ai eu le plaisir d’être invité aux réunions des bureaux de l’ICM de Kamloops et de St. John’s. Ce qui me plaît beaucoup dans mon rôle de président de l’ICM, c’est d’avoir l’occasion de rencontrer les personnes qui sont à la base de l’industrie dans laquelle nous vivons et travaillons. La réunion du bureau de TerreNeuve, qui est commanditée chaque année par le ministère des Ressources naturelles de la province, compte parmi les rencontres régionales les mieux organisées auxquelles il m’a été donné d’assister. Au programme de cette année, le « mini-salon » Mines dans la société constituait vraiment une première pour nos bureaux. Cette activité, fruit de la collaboration entre l’industrie et le gouvernement, mérite toutes nos félicitations, et je crois que nos autres bureaux devraient s’en inspirer.

Michael J. Allan Président de l’ICM

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news Gold, silver, bronze – and a little bit green BC’s Teck Resources brings sustainable metal to the Olympic podium

In a historic first, a small portion of the metal used to forge the Vancouver Winter Olympic medals will be recycled. Gold, silver and bronze salvaged from so-called “e-waste” — discarded computers, TVs and other electronic detritus — were mixed with conventionally mined ore to create the unique undulating medals designed by BC Aboriginal artist Corinne Hunt. Although less than two per cent of the metal used is reclaimed, the Games’ official metal supplier, Teck Resources, insists that symbolically it is a huge step. “By including even a small portion of recovered metal,” notes Teck spokesperson Dario Alvarez, “we can help the world to understand that practical, responsible solutions exist to meet the challenge of reducing the amount of e-waste material destined for landfills.” And where are symbolic gestures more important than at the Olympics? Hosting an Olympics in the middle of an economic crisis, Vancouver has been trying to eschew Beijing-style ostentation in favour of more grassroots values like sustainability. So the use of recycled metals is a welcome addition to its other attempts (rainwater flush toilets at the Olympic Oval are another example) to offset the inevitable ecological footprint that is created by the Games. That’s not to say there will not be a certain amount of “bling” at the Games. A whopping 1,950 kilograms of silver, 903 kilograms of copper and 2.05 kilograms of gold (the gold medals are actually gilded silver) were used to make the medals, which feature images of an orca and a raven — important symbols of strength and transformation in Aboriginal mythology. In all, 615 Olympic and 399 Paralympic medals have been produced by the Royal Canadian Mint.

Photo courtesy of VANOC

By Gillian Woodford

The metal was sourced from Teck’s mines in Canada and around the world. The gold is all North American — from the Hemlo Mine near Marathon, Ontario, the Pogo Mine near Fairbanks, Alaska, and from its Trail, British Columbia, smelter where the recycled metals are extracted. Trail also supplied the

silver. The copper was a more international affair: the copper cathode was brought in from Teck’s Carmen de Andacollo and Quebrada Blanca sites in Chile, while Duck Pond (Newfoundland), Highland Valley (British Columbia) and Antamina Mine (Peru) supplied the copper concentrate. CIM

December 2009 / January 2010 | 11

news Green growth opportunities in China A new era in China means environmental expectations, says economist By Jeff Borsato Without question, China has emerged as a global leader in economic growth. Less certain are how the nation of 1.6 billion people will respond to the impact of its industrialization on the environment and how Canada, its long-time partner, will support that response. Members of the Canadian business community got a preview of China’s environmental goals for the coming decade from a Chinese economist who is helping to shape that policy, and a glimpse of how Canada’s innovative industrial processes can play a role in China’s move towards environmental sustainability. Professor Fan Gang, an economist and director of China’s National Economic Research Institute,

addressed a packed house of Canadian business women and men in October to relate the challenges that country faces in moving towards environmental solutions essential to its future. The event was held in Toronto by the Canada China Business Council, a non-profit organization dedicated to promoting trade between the two countries. Chief among their policy goals is energy security via diversification, explained Fan, who is also advisor to the country’s Ministry of Labour and Social Security. With over 30 per cent of its total energy consumption in the form of crude oil, China hopes to expand nuclear and bio-fuel development as a way to reduce its dependence on foreign oil. The reduction of

local pollution was an emerging theme in China’s domestic political life. Focusing on carbon emissions and industrial impacts, Fan insisted these challenges are not confined to China but confront the global community as a whole. He acknowledged that, as the world’s largest emitter of carbon dioxide, China is responsible for reducing emissions, but also pointed out that approximately 90 per cent of all existing emissions accumulated prior to the industrialization of China and India. Nevertheless, Fan said that China’s goal was to reduce emissions by acting in favour of innovations which enhance existing industrial processes and create efficiencies in energy consumption. He noted that China’s emerging middle class was more aware

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

news than ever of the need for local changes to industrial emissions standards to protect and preserve the environment. The widespread use of coal to meet China’s energy needs presented the largest challenge in developing the plan to reduce carbon emissions. While ruling out a carbon tax in the short term, China’s strategy would emphasize increasing the capacity of nuclear energy to reduce coal use going forward. Fan acknowledged that some business leaders who view coal as vital not just to China’s energy demands, but also to its industrial infrastructure, are reluctant to take this course and confront the enormous cost of modernizing the country’s coal burning facilities. Fan suggested that Canada could provide more than just raw materials to China’s future development, as it possesses the technology and skills needed to improve efficiency across the board within China’s economy. He also pointed to the role that other developing nations can play in

affecting carbon emissions. With the help of initial investments in alternative energy, wealthy nations could help create a sustainable foundation for a green business approach, which otherwise would be too expensive for developing nations. As evidence of action in sustainable development, Fan highlighted projects such as public transit and rail line expansion that address

not only efficiency but also the basic needs of a growing urban population. In a short time, China has emerged as a leader in industrial development. Fan said he hopes China will also become a leader in green energy and sustainable development — with Canada included in the process and the outcome — for the benefit of the world. CIM

Faculty Position in Mining Engineering The Department of Energy and Mineral Engineering (EME; http://www.eme. psu.edu) at The Pennsylvania State University invites applications for a full-time, tenure-track faculty position at the Assistant Professor level. The principal research and teaching areas for the position are in surface mining and/or mine ventilation. EME is home to Penn State’s undergraduate degree programs in Petroleum and Natural Gas Engineering, Mining Engineering, Environmental Systems Engineering (with options in environmental systems and environmental health and safety) and Energy Engineering, as well as Energy Business and Finance. The successful applicant will help build and maintain excellence in Penn State’s Mining Engineering program. The candidate will teach undergraduate and graduate courses, supervise graduate students at the MS and PhD levels and carry out an active research program in his/her area of specialization.

Achievements Top 10 honours

Candidates should have a doctorate degree in mining engineering or a closely related discipline with a strong background in one of the department’s focus areas. Preference will be given to candidates with industrial experience and appropriate certification (e.g., P.E.). The successful candidate should demonstrate strong communication and presentation skills. Although the search is aimed at the Assistant Professor level, more senior candidates may be considered. Demonstrated ability and willingness to establish an externally funded research program, conduct independent research and publish scholarly research are expected. Penn State is committed to adding at least 25 new faculty in Energy in the next three years (please see articles at: http://www.psiee.psu.edu and http://www.psiee.psu.edu/ publications/EnergyReport.pdf) and we expect the new faculty to collaborate with other Energy and safety-related faculty in the University.

Cameco Corporation has been named by the Financial Post as one of the 10 best companies to work for in Canada. Kaylynn Schroeder, Cameco’s vice-president of human resources, acknowledged the honour, saying, “This recognition shows us that our employee development opportunities and benefit programs are very competitive when compared with other privatesector companies across Canada.” The Financial Post 10 are selected based on strenuous criteria that look at a company’s policies and programs, from workplace to health benefits, financial benefits, vacation time, support for development training and employee communication, as well as the company’s role in the community. The companies were selected from Canada’s Top 100 Employers guide, which is published by Mediacorp and includes public and non-profit sectors, as well.

Applications should include: (1) a curriculum vitae with educational background and employment history; (2) a statement concerning research and teaching interests; (3) names and addresses of at least three referees; and (4) samples of refereed publications. Send applications at the earliest, via regular mail or electronically, to: Chair Mining Engineering Search Committee, Department of Energy and Mineral Engineering, The Pennsylvania State University, 117 Hosler Building, University Park, PA 16802, USA; Fax: (814) 863- 5709; E-mail: rlg19@psu.edu Penn State is committed to affi rmative action, equal opportunity and the diversity of its workforce.

December 2009 / January 2010 | 13 ©

news Strong opinions, hard positions Debating Canadian mining’s role in CSR By Mike Paduada The Toronto chapter of the Canadian International Council (CIC), a long-time forum for foreign policymaking, recently hosted a debate on Bill C-300 at the Toronto offices of the law firm McMillan LLP, drawing a diverse audience from across industry, government, academia and civil society organizations. Titled “Setting Guidelines for Corporate Accountability for Mining, Oil and Gas Corporations Abroad,” the evening featured one debate focusing on the practical implications of C-300 and another on the international legal implications. Bill C-300 is a private member’s bill concerning the corporate accountability of Canadian mining, oil and gas activities in developing countries. If

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

implemented, a Canadian mining company receiving funding from Export Development Canada or the Canadian Pension Plan Investment Board could see that funding withdrawn for noncompliance with certain international guidelines on corporate social responsibility (CSR), based on a complaint and ensuing investigation. Liberal member of Parliament John McKay, who sponsored the bill, argued practical points in favour of C300. He stated that current government strategy falls short of the recommendations by the widely inclusive 2007 national roundtable discussions on CSR. In particular, McKay noted, “the CSR counselors cannot start an investigation without the consent of

the corporation being investigated.” McKay said that Bill C-300 would define Canada’s treatment of CSR on the international stage, adding, “We could be leaders or we could be laggards.” He also defended the strong provisions of C-300. “I utterly reject that Canadian companies will lose out or that head offices will leave. That is, in my view, a race-to-the-bottom argument.” Jon Baird, president of the Prospectors and Developers Association of Canada (PDAC), said that C-300 is the wrong approach. Baird argued that the bill is not sophisticated enough to handle the complexities of CSR, which he stated is “poorly understood, very complex and contentious, particularly in the context of worldwide exploration

news and mining in remote areas.” Citing industry and government initiatives already underway, Baird explained that “improvement to the CSR experiences of Canadian companies working in the developing world will come from learning, encouragement, fact-finding and problem-solving, not from laws and punishment.” Two such initiatives include the PDAC’s e3Plus framework for responsible exploration, and the Canadian government’s “Building the Canadian Advantage” extractive sector CSR strategy, which includes the creation of an online CSR Centre for Excellence, being built and hosted by CIM. Baird also defended the CSR record of the Canadian extractive sector, citing a disproportionately low number of incidents relative to the thousands of Canadian extractive activities abroad. “Every industry has a [CSR] problem. But the problems are a tiny percentage.” Dr. Sara Seck, a professor in the Faculty of Law at the University of

Western Ontario, argued for the legal merits of the bill. She claimed that Bill C-300 is a step in the right direction with respect to three principles for CSR; namely, the state duty to protect rights, the corporate duty to respect rights and the need for greater access to remedies if those rights are violated. She also noted that current strategies fall short, especially on the third principle. Robert Wisner, a partner at McMillan LLP, argued two legal reasons against the bill. He first remarked that Bill C-300 would lead to secondguessing of the usual diplomatic resolution channels for handling CSRrelated complaints. Wisner also stated that the poorly defined terms in the bill would create a dangerous level of legal uncertainty. An informal poll by the moderator following the debate revealed that no one in the audience had changed their mind, highlighting the challenge either side faces in reaching consensus on the issue. McKay and Baird took

the debate to a national audience the next morning on CBC Radio’s The Current. Blog activity also increased in response to both the CIC and CBC debates. Most importantly, the parliamentary debate continues. According to McKay, all the attention being given to C-300 is a good thing. “I can’t underestimate how important the media is. If the media isn’t talking about it, the bill is dead. I have one and a half people on my staff in Ottawa while the government has 450,000 civil servants.” Though traditionally private member’s bills are not often made into law, their passage is more common in minority governments. McKay recognizes the bill’s obstacles yet remains optimistic. “If I get Bill C-300 through the committee [House of Commons Standing Committee on Foreign Affairs and International Development], I’ve got a shot at getting it through the House,” he says. “Then it’s in the Senate. Then all bets are off.” CIM

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www.dmcmining.com 2010

December 2009 / January 2010 | 15

news The double X factor Women organize to expand their role in the industry

A few generations ago, women in the mining industry were noted for their novelty. Over time, they have made some advances, but their potential is still largely untapped. While they make up half of the broader labour force, women constitute only 13 per cent of the mining industry workforce. To close this gap and address the human resource shortage on the horizon, mining industry women have come together to establish Women in Mining (WIM) Canada. Their objective is to turn what was once an industry curiosity — women in mining — into an organized force that will play an essential and strategic role in the future. WIM Canada president MaryAnn Mihychuk, a professional geologist and former Manitoba Mines Minister, describes the organization’s role. “This new association will provide a national voice for women in a maledominated profession and a vehicle for us to network across Canada and beyond. We will showcase the contributions of women and mentor those who want to join a vibrant and adventurous industry.” WIM Canada has over 100 paid members in addition to a network of 2,600 others. This is impressive, given that the organization was conceived over a luncheon meeting in March 2009 and incorporated the following August. WIM’s inaugural event, “Knowledge, Network and Navigate,” was held in Toronto in October 2009. It attracted 120 students, human resource scouts and professionals from across the mining industry spectrum, including CEOs, CFOs, COOs, accountants, engineers, geologists and entrepreneurs. In addition to swelling its ranks with new members, the event helped WIM Canada secure new sponsorship commitments and enrol volunteers for future projects. 16 | CIM Magazine | Vol. 4, No. 8

Photo credit: Tracey Fraser, EcoWaste Solutions

By Catharine Shaw

Members of the WIM Canada board of directors: Catharine Shaw, secretary; MaryAnn Mihychuk, president; and Jean Lucas, vice-president

During the reception, WIM introduced its Board of Directors, which comprises MaryAnn Mihychuk, Jean Lucas, Mary Louise Hall, Catharine Shaw, Lynda Bloom, Kathy Chapman and Marilyn Spink. Details of a major new study were also announced. The study, entitled RAMP-UP, focuses on gender issues related to Canada’s mining industry. Once completed, it will offer a vivid perspective on the issues women face and provide valuable insight into how to create opportunities and recruit more women, and how to retain existing female workers and create a more responsive community for them. WIM Canada commissioned the Conference Board of Canada to conduct the survey for the study. The survey sought to measure the proportion of women in the industry, understand their career choices and identify both the obvious and subtle barriers to entry and advancement that they face. Nearly 3,000 individuals

and enterprises were invited to participate in the survey, which has received support from the Mining Industry Human Resources Council, the Mining Association of Canada, Natural Resources Canada, the Prospectors and Developers Association of Canada, Deliotte, Cameco, the Iron Ore Company of Canada/Rio Tinto and The Bedford Group. The results of the survey will be released in March 2010 as a part of the International Women in Mining Networking Reception at the PDAC Convention in Toronto. WIM Canada will use the findings to lobby industry, government agencies and educational institutions to address the issues they raise. The results will also help establish a baseline against which progress in opening the field up to women can be measured. CIM For further information, contact Women in Mining Canada at wim.canada@gmail.com

news The proven potential and uncertain prospects of PDAC Mining Matters Mining education program risks losing momentum

It is the best and worst of times for the Prospectors and Developers Association of Canada Mining Matters (PDAC Mining Matters). Over the past decade, PDAC Mining Matters has brought geoscience and the importance of mineral resources to life for educators and students by offering engaging and scientifically accurate classroom resources that integrate with established provincial curricula. The organization successfully promotes mineral exploration and mining as career options for young people, reaching out in particular to Aboriginal youth in their own communities. For a second year, PDAC Mining Youth attending the First Nations Natural Resources Youth Employment Program learn about mineral resource extraction and Matters, in partnership with careers in mining during a tour at North American Palladium’s Lac des Iles mine. Outland Inc., delivered geoscience and mineral industry educa- trim costs, such as cutting donations to Northwest Territories. Project funding tional programming for Aboriginal charitable organizations such as PDAC from the Mining Industry Attraction, youth aged 16 to 19 at the First Mining Matters. But while funding Recruitment, and Retention Strategy — Nations Natural Resource Youth declines, the demand for their proadministered by the Mining Industry Employment Program (FNNRYEP) in grams remains strong, as educators recHuman Resources Council — has made recent curriculum expansion activities Upsala, Ontario. ognize the integral role that the mining and resource production possible. Celebrating its tenth anniversary industry plays in our society. PDAC Mining Matters also showthis year, FNNRYEP welcomed 30 “The gap is really stretching the cases the mineral exploration industry Aboriginal youth from 18 different organization,” says PDAC Mining for students and teachers at the annual communities, from Kenora to Kirkland Matters president Patricia Dillon. “It PDAC International Convention, Lake. Building on this success, PDAC is essential that we connect with Tradeshow and Investors Exchange Mining Matters also presented pro- more people who can lend their supwith three days of educational programming at the Manitoba Rangers port by giving.” gramming — one for teachers and two The steady demand for the programs Program — an expansion, first-year, for students, incorporating guest pilot camp based on the FNNRYEP serves as a testament to their success. speakers, hands-on learning activities, model. Fourteen youth attended from The organization began by offering two and visits to the trade show floor. ten different communities, from school programs, Deeper and Deeper It also participates in the annual and Mining Matters II — The Earth’s Shamattawa to Opaskwayak Cree CIM Conference and Exhibition Crust, to Ontario elementary schools, Nation. Mining in Society Show (MIS), which then expanded nationally to the high The organization is as devoted as educates students, teachers and the school curriculum with Discovering ever to broadening and deepening the general public about the importance of Diamonds. Workshops have now understanding of the mining industry’s mineral resources through interactive been delivered in British Columbia, role in our society. Unfortunately, it has experiences that complement the Alberta, Manitoba, Saskatchewan, been a tough year for the industry. In show’ s pavilion themes — exploration, Newfoundland and Labrador, and the hard times, companies look for ways to 18 | CIM Magazine | Vol. 4, No. 8

Photo courtesy of PDAC Mining Matters

By Laura Clinton

news mining, processing, sustainability, products and fabrication, education, and new frontiers. Students attending MIS are encouraged to compete in the Amazing Mine Challenge, an information scavenger hunt. Future work for PDAC Mining Matters involves translating resources into French to expand programming

to Québec; increasing workshop delivery and student reach in and Labrador, Newfoundland Manitoba, and Saskatchewan, producing new resources; continuing outreach to Aboriginal communities; and cultivating further education, industry, and government partnerships. By focusing on these areas,

PDAC Mining Matters hopes to increase student interest in geoscience and mineral exploration, as well as mining industry careers. To make a donation in support of PDAC Mining Matters’ educational efforts visit www.pdac.ca/miningmatters. Charitable tax receipts are issued for all gifts. CIM

Mining Matters would like to thank its partners in mineral resources education. Their generous support ensures Mining Matters continues to bring geoscience to life in classrooms across Canada. Diamond ($25,000 plus) Mining Industry Human Resources Council Ontario Ministry of Research and Innovation Prospectors and Developers Association of Canada William White

Platinum ($10,000 to $24,999) Ontario Stone, Sand and Gravel Association

Gold ($2,000 to $9,999) Alamos Gold Inc. Alexandria Minerals Avalon Rare Metals Inc. Boart Longyear Canada Canada Lithium Corp. Canadian Geological Foundation Canadian Mining and Metallurgical Foundation

Caracle Creek International Consulting Inc. (CCIC Canada) C. J. Stafford & Associates Detour Gold Corporation Duralite Diamond Drills Exploration Link Ltd. Federated School of Mines FNX Mining Company Inc. Fogler, Rubinoff LLP Gemcom Software International Inc. Goldcorp Inc. Gerald Harper Harry Winston Diamond Corporation Homeland Uranium Inc. IBK Capital Corp. MacDonald, Dettwiler and Associates Ltd. Noront Resources Ltd. Northfield Capital Corporation Paradigm Capital Inc. Queenston MiningInc. Royal Nickel Corporation

Scott Wilson Roscoe Postle Associates The Fairmont Royal York The Northern Miner Edward Thompson Thundermin Resources Inc. Treasury Metals Inc. Trelawney Resources Inc. Tri Origin Exploration Ltd. Volta Resources Inc. Votorantim Metals Canada Inc. Wardrop Engineering Inc. Watts, Griffis and McOuat Limited William Pearson Family Fund

Silver ($500 to $1,999) John Burzynski Association of Professional Geoscientists of Ontario Canadian Institute of Mining, Metallurgy and Petroleum Equity Transfer & Trust Company

Graham Farquharson Ron Gagel David Harquail Joe Hinzer Jerry Jones Knight Piesold Limited Dean McDonald William Mercer Ronald Netolitzky P. J. Mars Investments Limited PricewaterhouseCoopers LLP Rainy River Resources Limited Hank Reimer David Robertson Robert Schafer Stewart Winterbourne Explorations Limited Derek Teevan The Quetico Project Women's Association of the Mining Industry of Canada Foundation

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 • 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, ThunderBay, 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

December 2009 / January 2010 | 19

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news A call for clarity Supporters and detractors agree that Ontario’s Bill 173 could do with some cleaning up By Marlene Eisner Few new pieces of legislation have stirred the mining industry as much as Bill 173 has. The bill, which is the Act to Amend the Ontario Mining Act, received its first reading in Ontario’s legislature on April 30, 2009. Subsequently, it received mixed reviews from some of the people who voiced their concerns and recommendations on August 13 before the Ontario Legislative Assembly’s Standing Committee on General Government. Its critics say that the bill lacks detail on many important issues, such as the processes involved in consultations with First Nations, the changes proposed to map-staking and permitting rules for prospectors and exploration. Chris Hodgson, president of the Ontario Mining Association, thinks that the challenge now is to ensure that these issues are clarified in the rules and regulations. He hopes that this is done through a consultation process similar to the one that preceded the passing of the bill in October. “Overall, we’ve been pleased with the process, and if they continue with that process, we can work with it,” says Hodgson. “We need clear rules to make good investment decisions.” Rob Galloway, who was the president of the Timmins Chamber of Commerce at that time, represented its 750 members at the Standing Committee hearing. Galloway shares Hodgson’s concerns. “That’s one of the worries, when you don’t know the details,” he says. Galloway provides examples of issues that remain unclear. “The big thing is the timing. If you have to have a permit, what’s a reasonable time period? The prospectors are the most worried because they need secrecy. Some Aboriginal communities are concerned about whether or not they have enough staff to deal with new rules. We really want guidelines.”

The development of those guidelines will continue this winter with the release of a consultation workbook by the Ontario Ministry of Northern Development. The amended bill will shape the context of those consultations, but, says Rob Merwin, director of the Mining Act Modernization Secretariat, the outcome will rely on industry, Aboriginal and broader public input over the coming months. Steve Kidd, former president of the Northeastern Ontario Chamber of Commerce and the Timmins Chamber of Commerce spoke as a private citizen during the first round of consultations. As far as he’s concerned, the bill should never have been passed. “This is just horrifying. It’s going to make it difficult for junior miners to prospect and prosper,” he said. “I view some of these changes as a deterrent to exploration.

The nature of junior mining is confidentiality and it affects the market. The bigger picture is that if you inhibit progress in mining exploration, then you’re inhibiting growth in northern Ontario. I find it difficult to understand how a bill of this nature could be formulated by stakeholders from northern Ontario. It seems rather obvious that the bill was formulated by groups from southern Ontario, and I don’t believe they are representative of the people of the North.” He did concede that continued consultation with stakeholders, as well as clarity, were necessary in moving forward. “I would agree with Mr. Hodgson. Although I find the bill completely out of touch with reality, I hope that the government, as the regulation and implementation details are finalized, will learn to understand the realities of the industry.” CIM

December 2009 / January 2010 | 21

upfront SUSTAINABILIT Y by Peter Diekmeyer

Managing political risks in the global mining sector Proactive and protective measures key to overseas ventures xecutives at Centerra Gold let out sighs of relief earlier this year when the Mongolian government reversed a massive windfall profits tax on its Gatsuurt development. The heavy-handed move would have effectively nationalized the gold miner’s operation. Also in 2009, the Cuban government, which has a long history of nationalizing foreign investments there, tore up a long-term production sharing contract with Perbercan, in which Sherritt International has a significant stake. In exchange, Sherritt was to get about $140 million in cash, which the company then “voluntarily” invested in Cuban long-term bonds. However, with Cuba’s foreign debts estimated in the tens of billions of dollars, the value of those bonds on the open market is hard to judge. In November, Toronto resource player Victoria Gold quietly spun off its Guyana-based holdings. According to its president Chad Williams, Guyanese officials were remarkably friendly to company personnel. “We never had any trouble,” said Williams. “We divested primarily because we thought our new partner would be more highly motivated and better placed to add value to the property than we could be.” Three unique locales, each with their own particular challenges and opportunities, provide three different stories. What ties them together is the increasing demand for raw materials. The choice of available ore bodies is narrowing, so the collected tales of overseas adventures will inevitably grow as Canadian companies are forced to look for undeveloped opportunities abroad. These ventures will lead miners to places on which they may have previously turned their backs; ones fraught with political risks that can arise in the form of civil conflict, uncertain property title, bureaucracy and corruption. Already Canada’s mining industry’s global footprint is staggering. As recently as 2005, close to 60 per cent of the world’s mining and exploration companies were listed in Canada. According to the Department of Foreign Affairs and International Trade, these companies account for more than 40 per cent of global exploration budgets and have interests in more than 3,200 mineral projects located in more than 100 countries. At the time of the DFAIT study, local firms had $17 billion allocated towards investment initiatives during the coming years. Staying alert and learning how to navigate the hazards of unfamiliar territory will be essential to developing many of these future resource opportunities.

Understanding the terrain “The major risks are changing,” says Thomas Wexler, a partner in the London, England offices of Fasken 22 | CIM Magazine | Vol. 4, No. 8

Martineau, which was named “Global Mining Law Firm of the Year” for five straight years by Who’s Who Legal. A large part of Wexler’s practice is devoted to representing banks in their financing of resource-sector activities. “Ten years ago, the big threats that companies used to worry about were related to wars and insurrections. These days the threats are more subtle.” Few countries will out-and-out nationalize a property, says Wexler. But what many can (and will) do is impose legal or taxation barriers that will either force an international investor to sell, or which will serve as a quasinationalization.

Speak no evil One of the biggest challenges in following the investment risks that international mining investors face at the municipal, provincial or local levels is the silence that often surrounds them. Industry players are often loathe to even acknowledge that risks exist (beyond general boilerplate statements of the annual report variety), let alone discuss them publicly, for fear of worrying clients, investors and financiers or of aggravating the situation. “Sometimes what gets into the public domain isn’t the whole story,” says Yolanda Banks a Senior Advisor (Corporate Social Responsibility) at Export Development Canada. “For example, if a mine has some sort of effluent spillage, there is often a public appearance that the mining company was irresponsible either in how the plant was designed or how it was operated. In fact, many factors may have been at play, including the possibility of local tampering. Indeed, it is a challenge to effectively communicate these complex issues to a doubtful public looking for simple answers.” Banks should know. She has researched, visited and written about successful efforts by Canadian mining companies to integrate principles of social responsibility in foreign mining operations. Despite the fact that many of the most promising resource areas are in countries where corruption is welldocumented, the risk needs to be more openly discussed. Companies are solicited for a variety of requests or “asks,” some legitimate and others less so. All these need to be managed. In fact, officials in mining investment locales can apply pressure when they are not happy, a process that substantially heightens investment risks. Common methods include cutting off power due to “uncontrollable demand surges,” road blocks, harassment at local check points,

upfront SUSTAINABILIT Y

bureaucratic delays in granting licences or other lengthy paperwork, and so on.

Mitigating risks by understanding their causes

costs as well. Such misunderstandings can lead to problems later.” For less experienced companies, reliance on the International Finance Corporation (IFC) Performance Standards on Social and Environmental Sustainability can go a long way to ensuring understanding of the steps that need to be taken and the social engagement necessary,” Banks adds. Banks says the Canadian Institute of Mining’s soon-tobe-established CSR Centre of Excellence will be another source of help for companies looking to address some of their social and environmental issues related to mining, oil and gas projects abroad.

According to Banks, one of the keys to mitigating international mining risk, particularly at the local level, is to take the time to understand the causes. Ironically, a surprising number of difficulties that mining companies face relate to an inadequate understanding of the respective responsibilities to be undertaken by both the mine investors and local authorities. “Many countries, governments and local communities don’t get as much benefit out of extractive industry investments as they initially expected when they authorized them,” says Banks. “Many international mines are developed in remote locations where the resource is • Is transparent with the community regarding the only major asset, and where long-term plans, strategies and operations. the local community expects • Listens to local communities, demonstrates significant benefits in terms of willingness to partner with them. health care, education, jobs and infrastructure, and they expect • Helps community design a strategic these to be spread broadly development plan. throughout the region,” • Insists on speaking to one single community explains Banks. “That can lead leader to avoid fostering rifts/divisions in the to community opposition community. against the mine.”

Profile of a Model Socially Responsible Extractive Company*

The importance of a good CSR profile

• Includes commitment to corporate, social and environmental responsibility in business strategy.

A strong local partner and political risk insurance Political risk insurance products offered by organizations such as the European Bank for Reconstruction and Development (EBRD) the Multilateral Investment Guarantee Agency (MIGA) and Export Development Canada (EDC) can be effective safeguards for other types of risk, notably political risks, says Fasken Martineau’s Wexler. EDC has been making substantial efforts to broaden and market its presence in the mining sector, and its Political Risk Insurance product is part of that strategy. The EDC coverage protects against a variety of actions in three specific categories: political violence, currency conversion or transfer restrictions, and foreign government expropriation of assets.

One course to vastly miti• Makes available transfer of technology. gate mining-sector social risks depends on maintaining a good • Understands local laws and hires locally. record as a good corporate citi• Establishes and maintains a rapport with the zen, says Banks. “International community via training for environmental mining-sector developers supervision. should strive to meet the profile of a model, socially respon* Abridged. Supplied by Yolanda Banks. Senior sible extractive company,” says Corporate Social Responsibility Advisor, Export Banks. “If they take steps such Development Canada. as integrating themselves well in the local community, listenBalancing risk ing, paying attention to the and opportunity local environment and so on, then they can reduce their The considerable visibility of the political risks that operating risks.” Canadian international resource investors face should not “Meeting local expectations is particularly impor- obscure the fact that a vast majority of these initiatives tant,” says Banks. “But it is very important that any com- yield positive results. With their $50 billion in internamitments be spelled out in detail. For example, if com- tional investments, which are almost certain to grow in panies have made commitments to, for example, build a coming years, Canadian mining companies will increasschool or health clinic as part of a mine operation deal, ingly find rewards and risks overseas. To strike a balance, a then they also need to spell out whether they are com- broad understanding of one’s host country, a well-defined mitting just to construction costs, or to operating CSR policy and a measure of protection are essential. CIM December 2009 / January 2010 | 23

upfront PROCESSING by Larry M. Southwick

When muscular metallurgy lost its hold Photo courtesy of Engineering & Mining Journal (October 20, 1917, p. 673)

The early history of copper smelting offers lessons in the need for scientific rigour

Basic-lined Anaconda converters at Washoe Reduction Plant, Anaconda, Montana, 1917.

he use of sulphur as a heat source in copper smelting is so ingrained today that the attitudes of early smeltermen seem hard to understand. Back in 1909, sulphur burning had only just begun to be adopted. That year, the pioneering Canadian-born engineer-industrialist James Douglas noted that oxidized ores were considered best since sulphide ores had to be roasted and then smelted using expensive coke for heat.1 Despite being so preferred, many oxide and carbonate ore bodies processed in Arizona suffered significant slag losses. Copper losses amounted to 16 per cent at Copper Queen, 30 per cent at Globe/Clifton and 40 per cent at Morenci. The chief obstacle to the adoption of sulphur burning was the practice of “muscular metallurgy.” Muscular metallurgy, as its name suggests, was concerned with simple mechanical improvements to extractive metallurgy that often required no more than brute force, as opposed to more advanced chemical improvements that would require a fine understanding of complex chemistry. The “muscular” approach acquired early preponderance due to the unrefined state of metallurgical science, the limited training of metallurgists, and rudimentary laboratory analytical and computational tools. In the early U.S. copper industry, oxide or carbonate copper ores were prevalent and smelting relied on multiple reverberatory and blast furnaces in complicated circuits. Muscular smeltermen believed that the transition to sulphide ores with its attendant costs would be disastrous for the copper industry. Towards the end of the 19th century, pyrite smelting (using pyrite sulphur as the heat source) provided a partial solution to the problem.2, 3 Later, massive sulphide deposits gained prominence. They necessitated many changes in

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

processing-related chemistry and led to a move away from brute-force methods. Yet, some early sulphide smelters wasted the heat contribution from burning sulphur by roasting first. It was only with further improvements in smelting (especially in converting) that the benefits of sulphide ores began to be fully realized. Until smelters were capable of making the best use of the sulphur, there was no viable alternative between suspending operations or running them at high losses. “Had not the shareholders been willing to accept hopeful promises in lieu of dividends,” wrote Douglas, “the Southwestern smelters would have gone under.” Conducting tests for Rio Tinto in 1878, the Englishman John Hollway developed the foundational principals of the pneumatic (Bessemer) converting of sulphide ores.4,5 Guided by a pamphlet Hollway had published, the American smelterman Lawrence Austin, who understood the potential of pyrite smelting, conducted his own tests from 1888 to 1893 for several Montana and Colorado smelters. The work of such early pioneers epitomized the struggle to translate concepts to economically viable practice. Some Montana- and Colorado-based smelters had been roasting their extremely pyritic ores prior to smelting. Austin, who was one of the organizers of the Tolston works, eliminated the roasting step and smelted using just a blast furnace. Because he lacked consistent ore samples and was hampered by defective apparatus and insufficient capital, Austin could not run his tests smoothly and systematically. Consequently, there were many gaps in his data acquisition. Patchy as they were, Austin’s results were encouraging. Operations at Montana and Idaho established that his process had merit. However, the Boulder Valley ore was too siliceous to flux properly, causing the furnace to remain mostly idle. Nonetheless, the results were good enough for Austin to patent his process and begin selling it to other smeltermen. Robert Sticht, who himself made notable contributions to pyrite smelting, followed Austin’s work with a critical eye. In his 1895 review,6 Sticht argued that Austin’s results called for much more rigorous inquiry. Austin, in his haste to bring the process to market, had been negligent on several counts. There were very few analyses; dust losses were not properly quantified, sampled or assayed; and overall production balances and yields were impossible to complete. Sticht felt “some professional hesitancy about giving publicity to [such] results.” Sticht’s critique displays the methodical analysis that characterized the new generation of metallurgists who were struggling to bring order to the world of muscular metallurgy. In addition to lax reporting, Sticht indicted Austin for

upfront PROCESSING

using imperfect equipment, performing short-duration tests, treating small amounts of ore and not pushing the furnaces to their full capacity. He also criticized the lack of technical skill and the neglect of chemistry. Despite the flaws in its early development, pyrite smelting was quick to catch on because its benefits were very obvious. With many adopting and refining it early on, pyrite smelting technology developed and was accepted quite rapidly. Despite setting Austin and many others in motion, Hollway’s work set was a failure. It did, however, contribute to two major developments — pneumatic converting and pyrite smelting. Douglas referred to Hollway’s tests as the most thoroughly reported failure ever published.7 Books and articles from this period often feature better fundamental descriptions of process than much modern scientific literature. They can greatly assist us in learning about how processes work and help metallurgists troubleshoot operating problems. Finally, we must bear in mind that Sticht’s criticisms are as relevant today as they were over a century ago. All too often, the wrong equipment is used, data collection and evaluation are abbreviated or incomplete, units are not pushed sufficiently hard, and operations are too short-lived to unearth limits and potential problems. CIM

Endnotes 1 2 3 4 5

6 7

Douglas, J. (1909). Conservation of Natural Resources. AIME Transactions, 40, 419-431. Rickard, T.A. (Ed.). (1905). Pyrite Smelting. Engineering & Mining Journal, New York. Lang, H. (1896). Matte Smelting - Its principles and later developments discussed, with an account of the pyritic process. New York: New York Scientific Publishing Co. Southwick, L. (2008). William Peirce and E.A. Cappeln Smith and Their Amazing Copper Converter. Journal of Metals, 60, 23-34. Pelletier, A., Mackey, P., Southwick, L., & Wraith, A. (2009). Before Peirce and Smith – The Manhes Converter: Its Development and Some Reflections for Today. In J. Kapusta & T. Warner (Eds.), International Perice-Smith Converting Centennial (pp. 29-50). Warrendale: The Metallurgical Society. Sticht, R. (1899). Pyritic Smelting — Its History, Principles, Scope, Apparatus and Practical Results. In E. D. Peters (Ed.), Modern Copper Smelting (pp. 396-441). New York: The Scientific Publishing Co. Douglas, J. (1900). Treatment of Copper Mates in the Bessemer Converter. IMM Transactions, 8, 2-48.

About the author Larry Southwick is a registered engineer consulting in technology development. This article is based on a presentation delivered at the August 2009 COM conference in Sudbury, Ontario. December 2009 / January 2010 | 25

upfront TECHNOLOGY by Jeff Borsato

Better information, better results rom exploration to operations, the mining industry’s decision-making capabilities depend on the integrity of the information that decisions are based on. Accessible, manageable and up-to-date spatial information is essential for addressing very complex issues with competing priorities. The role of this information is fundamentally important in mining business systems, the reduction of production costs, regulatory compliance and the achievement of sustainability goals.

Multi-potent software To help manage these complex issues, the Australian mining technology services company, Runge Limited, has created a specialized business-focused Mining Knowledge Platform (MKP) called Mining Dynamics. An essentially visual system, Mining Dynamics supports data acquisition and management across the entire production chain from modelling and design to scheduling, reconciliation and performance manage- A screenshot of a mine operations dashboard where the fidelity to mine plans can be tracked. ment. Designed to dovetail into mining companies’ existing IT frameworks, the demand-driven software • The Discovery module facilitates the search for 2-D and was created by miners. The industry has increasingly come 3-D data capacities across multiple geo-spatial data to regard three-dimensional (3-D) modelling as critical to stores. current and future operations. Furthermore, the consensus • The Enterprise module controls the interchange and is that 3-D modelling should be translatable across the procurement of data across various applications . spectrum of business activities and software platforms and • The browser-enabled 3-D View module allows spatial should be able to reflect the most current information from visualization from multiple sources without the need for these disparate quarters. Mining Dynamics aims to succeed any additional software. on these counts. • The Plan Compliance module helps process applicaEnterprise resource planning (ERP) systems have been tions to iron out planning and compliance issues and designed and tuned to comprehensively manage standard reduce the gap between projected and actual data. manufacturing environments. Mining introduces complexTo expand the capabilities of their product, Runge colities that do not fit the standard manufacturing model. ERP laborated with the geographic information system (GIS) solution providers have universally identified the opera- firm ESRI to integrate GIS technologies into Mining tional complexities of mining as a capability gap; Runge’s Dynamics. This allows users to create searches, analyze MKP has been certified by SAP to bridge this gap. This gap spatial information, edit data and maps, and view the is often described as having confounding complexity and results of these operations in three dimensions inside any can impose inefficient work practices. The modular design web browser. of Mining Dynamics circumvents this problem. Not requiring single-step, all-at-once implementation, the MKP sys- Mining Dynamics in action tem can be rolled out in various customized stages or Two early field applications of Mining Dynamics have phase-ins, to smooth its transition into clients’ businesses. served to illustrate the software’s capabilities and reliability. Mining Dynamics comprises five modules: Billiton Energy Coal South Africa (BECSA) adopted • The Control and Storage module, for workflow man- Mining Dynamics to improve the planning and execution agement and storage capacities, allows users to accu- of its mining activity, while GeoScience Victoria (GSV), an rately file, retrieve and submit data throughout the Australian provincial survey organization, used it to enhance data management. organization. 26 | CIM Magazine | Vol. 4, No. 8

Photo courtesy of Runge Limited

An enterprise resource solution for the mining industry

upfront TECHNOLOGY

A clean report card: BECSA, a BHP Billiton subsidiary, serves the South African and international energy coal markets. It adopted Mining Dynamics to track production against mine planning and to help fulfill mandatory regulatory reporting requirements. To derive the maximum possible benefit from its assets, to govern resources better and to prolong the mine’s life, BECSA wanted increased compliance with mine plans. Unable to accurately and quickly analyze mine compliance, BECSA could not adjust the mine plan to cope with ever-changing operating conditions. Mining Dynamics helped close the critical gap between planning and operating, helping the company identify and correct deviations from the mine plan. To adhere to regulatory compliance codes, BECSA also needed to improve traceability and accountability to align outcomes with plans. The Mining Dynamics platform was configured to create a series of workflows that managed and authorized all input documents and process flows. This helped ensure that specific employees were notified of what tasks, updates or supporting data were required of them. It also created a clear and accessible audit trail, which ultimately facilitated the generation of requisite Competent Person’s Reports.

related ISO 19139 standards more easily. Working with common standards, users can search for and export objects, and query the software using third-party systems. GSV usually receives models in a variety of formats, which, in the past, were difficult to reconcile. Now, Mining Dynamics ensures easy interplay between data types and file formats and facilitates the performance of uniform projection analyses. This capability freed GSV and its clients to view any model of any format in a common web browser, without needing to install the application that was used to generate the model. In addition to providing better access to information, the system also eases information control. Users can easily manage the life cycle of 3-D geological models, store data in proprietary or generic formats, and even convert between formats at will. Furthermore, data compiled by explorers with mineral rights to a specific region can be released selectively to safeguard private information. Meanwhile, researchers engaged in other projects can continue to have access to non-sensitive geological data. For the future, GSV plans to grant access to a host of 3-D models via its public website. Mining data, like mining ore, entails the separation of things of value from masses of irrelevant or obstructive material. The advantage belongs to those who can sift through and refine the data — good, bad, revised or outdated — as efficiently as possible. Mining Dynamics seeks to provide precisely that advantage. CIM

Arming the explorers: In July 2006, the provincial government of Victoria, Australia, launched the Gold Undercover Initiative to stimulate the development of systems and infrastructure needed to unearth the 70 million ounces of gold that are estimated to lie undiscovered in www.runge.com the state. GSV was tasked with identifying new geoscience information to prompt greater exploration and discovery. The first challenge was to effectively access and manage the Sustaining the industry’s future region’s copious geoscientific data. The shift from two- to three-dimenThe McIntosh Engineering Scholarship Fund and Stantec Mining have sional modelling had made GSV’s donated $83,000 to Laurentian University’s School of Engineering. The already-daunting data management donation will help create 14 annual engineering scholarships, valued at tasks all the more difficult. $2,800. It will also enable the school to purchase equipment, such as the In response, GSV adopted the 3-D Mine 2-4D software, a mine planning and scheduling program for engineers modelling capability of Mining to effectively manage complex data and quickly asses the financial implicaDynamics to help build and manage tions of variations in mine planning. models and distribute them to prospectors and developers. The Thanking the donors for their generous contribution, Laurentian president implementation of Mining Dynamics Dominic Giroux said, “Our students will not only benefit from more scholrequired the unified storage of 3-D arships, but also from the most modern engineering tools during their studobjects and context-specific metadata ies at Laurentian. Here, they will learn to be the best future professionals of (data about data). Given the sheer the mining industry.” variety of data and users, it was essential for all consulted, added or Former president of McIntosh Engineering Steve McIntosh established altered information to remain within the $2 million McIntosh Scholarship Fund from the proceeds of the sale a single system. By thus unifying the of his company to Stantec Mining in 2008. Sudbury’s three main post-secinformation, GSV could also comply ondary schools will share $250,000 from the fund to help ensure the with the geographical metadataindustry’s future.

Giving back

December 2009 / January 2010 | 27

upfront Q&A by Peter Diekmeyer

A sharp eye trained on the future Market strategist Don Coxe offers his views on the year ahead on Coxe has tracked the mining industry for most of his 35year career in investing and money management. As global portfolio strategist for BMO Capital Markets, he was a staple of investment information with his regular conference calls and portfolio strategy journal. In 2008, Coxe launched the Toronto Stock Exchange-listed Coxe Commodity Strategy Fund, and more recently established the investment advisory firm, Coxe Advisors LLC, in Chicago. In a pair of conversations, Coxe gave CIM Magazine his take on trends to look out for during the coming year and beyond.

CIM: You say that your investment approach is based more on “page 16” stories as opposed to those on page one. What do you mean by that? Coxe: Investors need to pay more attention to long-term fundamentals rather than to topics of the day. Any investment that will not be written about by historians two centuries from now, is probably not worth following up on. A company’s latest earnings announcement is a page one story, but news of an emerging technology that could make that company’s products obsolete is often buried on page 16, or it only appears in some obscure scientific journal. CIM: What “page 16” stories are you following that could have an impact next year? Coxe: Rising gold prices have made a lot of headlines. But the bigger move has been the changing attitude of the world’s central banks towards the ore. Many have reversed their policies of selling “excess” reserves and have started to rebuild holdings. The Chinese central bank has been buying up a lot of that country’s local production. India’s central bank also recently announced a major reserve purchase. The other big story is that China, India and many sovereign wealth funds have been increasingly looking at global resource assets. Historian Niall Ferguson recently predicted that next year China will stop its massive U.S. dollar purchases and move to hard assets instead. True, China has failed at several attempts to buy controlling stakes in major resource companies, including Unocal and Rio Tinto, but the country learns fast, and it will be back. 28 | CIM Magazine | Vol. 4, No. 8

CIM: What does that all mean for gold prices? Coxe: These actions have significantly helped to ramp up gold demand, a trend that will likely continue next year. Despite the reports of people selling off all their old gold jewelry, prices continue to rise. Much of this is due to the fact that gold production has not kept pace with demand. Global output has been slowing for almost a decade now. Although exploration budgets have shot up, new bodies are not coming onstream at the pace they once did. New mines that come into production are simply not of the same quality that they once were. Ore grades have fallen from about 12 grams per tonne several decades ago to closer to three grams per tonne. CIM: What about other precious metals? Coxe: Interest has been rising in the category. About twothirds of all drilling in the world is for precious metals. However, gold remains the big story. The only problem is that many of the most promising deposits are in high-risk areas such as Russia and the Congo. Silver, which is often found in many of the same areas as gold, and whose price tends to move in tandem with it, will also continue to do well. Platinum demand will also remain strong. Its main drawback is that many of the key platinum reserves are located in South Africa, which is showing signs of increased instability. We look for companies that have unhedged reserves in the ground in politically secure areas. CIM: What are some of the major factors currently influencing commodities demand? What changes do you expect in 2010? Coxe: The longer term demographics are simple: the big drivers of world economic growth are India, China and other emerging economies. Right now, it looks like several of these countries will weather the global recession better than the United States. Like all economies in early stages of development, they will require enormous amounts of commodities. CIM: What does this mean for base metals? Coxe: Once again, a lot depends on how the global economy will do. For example, copper will not stay at the $3.00 a pound level if the economy goes bad. The coal story is more nuanced. Metallurgical coal [used to make steel] should continue to do quite well. However, a lot of what happens to steam coal [for power generation] demand depends on what happens at the United Nations Climate Change Conference in Copenhagen. Although the Chinese continue to build many steam coal plants, other countries may feel that the environmental cost is too high. Uranium, too, presents a mixed picture. More nuclear plants are being built globally, but the United States has not put a

upfront Q&A

new one into operation since 1976. The political climate needs to change before we see a real upsurge in demand. CIM: Jeff Rubin recently released a book that broadly predicts that rising energy prices will have a significant effect on global trade. Would there be any fallout on resources companies? Coxe: I respect Jeff a lot, but I do not think that oil prices will rise quite as high he thinks. That said, there is no question that energy demand will increase and that Canada should be in a good position on the energy front for the coming years. We are already the largest source of U.S. oil imports, and sales there will continue to rise. As a result, I am upset with the negative way that Canadaâ&#x20AC;&#x2122;s oil sands development has been characterized. We really have to tone down the excess rhetoric surrounding the sector, particularly on the environmental front. Natural gas is a different story. Demand is strong and will continue to grow, but supply, due in part to the emergence of shale gas, is growing even faster. Exxon recently announced a major discovery and there is a lot more coming onstream. CIM: How do you assess the state of the Canadian mining industry? Coxe: Canada continues to be a great place to do mining, but many of the best and easiest-to-extract ore bodies have been discovered or put into production. On the other

hand, the country has few very large domestically owned mining companies relative to the scale of its resources, so there are fewer good investment opportunities than there should be. The country really should be doing a lot more to maintain some domestic control. For example, while the federal government generally wants to keep a more handsoff approach to foreign acquisitions, the provinces have several tools at their disposal to delay or even halt deals that are not in Canadaâ&#x20AC;&#x2122;s interest. CIM: What is the current global climate like now for Canadian mining sector companies? Coxe: Terrific, the Canadian brand name is the best that it has been in decades. Canada has a great tradition of training people for the mining industry and companies recognize both their talent and their work ethic. Canadian miners are known for not shying away from assignments in remote areas, where they work 12-hour days. One businessman recently told me that the biggest constraint for his industry is not resources, but that his company cannot find enough Canadian staffers. In fact, if I had a son who was uncertain of his career path, Iâ&#x20AC;&#x2122;d tell him to become a geologist or a mining engineer. Canadian professionals will continue to be welcomed around the world. CIM

December 2009 / January 2010 | 29

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Photo courtesy of Erik Eberhardt, UBC Dept. of Geological Engineering

outlook 2010 Graduate students carrying out field work in the Chilean Andes

Educational institutions are equipping tomorrow’s mining industry workforce with a competitive edge by Marlene Eisner o ensure Canada’s continued leadership in the global mining industry, attracting and keeping students in mining-related educational programs is critical. It is the only way to ensure that we have a skilled workforce for the future. Fortunately, Canadian post-secondary institutions are rising to the challenge, developing new strategies and relationships to remain vital, responsive and competitive in the education marketplace. Over 50 schools across Canada offer courses, certificates, diplomas and degrees that cover every aspect of mining. From geology and mining engineering to mineral technology and environmental sciences, these mining-related educational options prepare students for a vast array of

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

career choices. To get a sense of what is offered and how institutions are working to stay abreast of evolving market demands and student aspirations, we asked faculty members at a selection of campuses to walk us through their programs and to share their views on their students’ prospects.

Reputation and returns Sandra Barr, acting head of the Earth and Environmental Science Department at Nova Scotia’s Acadia University, reports that enrolment in the geology and environmental geoscience programs is up. She ascribes this to the institution’s academic standing. “Acadia has a reputation for being an innovative place and always ranks one or two in the

Photo courtesy of Kathryn Janke

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Mine Planning 2010 Conference Highlights UÊ Ê iÌÜ À ÊÜ Ì Ê `ÕÃÌÀÞÊÊ Ài«ÀiÃi Ì>Ì ÛiÃ° UÊ Ê >ÀiÊiÝ«iÀ i ViÃÊÊ EÊ iÃÃ ÃÊ i>À i`° Each year students from universities across the country gather to test their skills at the Canadian Mining Games. In 2010 Dalhousie University in Halifax will host the competition.

Maclean’s ranking,” she says. Barr’s department boasts relatively high numbers — 55 students in both geology programs, with eight at the graduate level. Acadia graduates enjoy high returns on their substantial investment (Acadia is among the most expensive universities in Canada). “Our graduate students get jobs very readily,” says Barr. “Our master’s-level students are in great demand.”

UÊ Ê i>À ÊÜ iÀiÊ Ì iÀÊV «> iÃÊ>ÀiÊ v VÕÃ }ÊÌ i ÀÊivv ÀÌÃ]Ê> `Ê ÜÊ - ÊV> Ê «À ÛiÊÞ ÕÀÊLÕÃ iÃÃ° UÊ Ê À ÜÊ> `Ê}iÌÊ Ì Û>Ìi`ÊÜ Ì Ê ` ÃVÕÃÃ ÃÊ ÊÌ iÊ - Ê Õ > Ê iÀ}ÞÊ Ì >Ì Ûi° UÊ Ê ÞÊ ÕÀÊ > >` > Ê Ã« Ì> ÌÞÊ Ê Ì ÃÊV >ÃÃ VÊ ÕÃ >ÊÀiÃ ÀÌÊÃiÌÌ }°

Strong industry support Enrolment in the University of New Brunswick’s geology department is fairly stable, according to department chairman Cliff Shaw. Graduate enrolment, however, has increased significantly, with a total of 31 students at the master’s and doctoral levels. Shaw believes that the reason is related to the economic situation. “It typically happens at the beginning of bust cycles,” he explains. “Recent graduates are first in the firing line when exploration takes a nosedive. Being motivated and interested in geology, they simply return to do a master’s degree until the market picks up.” A popular choice among students is the environmental geochemistry program. Starting with four students in 2000, the program currently has 14 students. Environmental geochemistry is also offered as an option in geological engineering, where it is, as Shaw explains, “more related to the actual design of tailing ponds.” Such practical courses that address real-world issues are the core strength of the geological engineering program, according to Shaw. It also helps that industry has supplied funding for equipment such as laser ablation technology, as well as for students, especially at the graduate level. “Six or seven of our grad students are funded by mining companies. Even though we are a small department, per capita, we have more money from industry than anyone else,” says Shaw.

Incentives boost enrolment In 2009, enrolment in the mining engineering program at Montreal’s École Polytechnique surpassed all records, reversing a troubling trend. “A few years ago we had a lot of problems with enrolment,” recalls Richard Simon, who oversees the mining engineering program. Fearing the cancellation of the program due to low numbers, the university took decisive action. In 2007, after just eight students signed up for mining engineering the previous year, École Polytechnique hired Danielle Gagnon, a 15-year veteran mining engineer, and charged her with boosting enrolment. Thanks to Gagnon’s efforts, there are now 41 mining engineering students. December 2009 / January 2010 | 31

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outlook 2010 The French-language school has a number of incentives to attract students, including $3,000 bursaries for each student. Notably, the degree program includes three mandatory work terms, which also make it attractive. According to Simon, the importance of the work terms cannot be overstated. “The first work term is after the first year and it leads to jobs,” he says, adding that, upon graduating, about 80 per cent of the students end up working for the employer who gave them their first student job. That is why Simon is disappointed that many recession-hit companies have stopped offering student work terms. It has already lost him some students.

Reaching out through the web Montreal is also home to another thriving source of future industry leaders. Hani Mitri, professor of mining in the Department of Mining and Materials Engineering at McGill University, reports that enrolment numbers at the graduate and undergraduate levels have been going up. “Even with the recession in 2009, the numbers didn’t decrease from 2008,” says Mitri. To keep the numbers high, the school has a strong outreach program that includes departmental open houses, visits and tours. A major component of the outreach effort is online. “More and more kids don’t bother visiting the schools,” says Mitri. “They just sit and browse… it’s becoming the way of life for the new generation. We recognize this and are

improving our website to make it more dynamic.” This includes showcasing the social aspect of school to offer prospective students “a feel for university life.” Industry funding also helps the university offer field trips, research projects and work terms, but, as Mitri emphasizes, this is not easy to acquire. “Industry will not come to us and ask, ‘Are you doing well? Do you need money?’ The responsibility is ours to make the case for support. We have to think of ideas and projects that excite industry.”

Undergraduate students carrying out mapping exercise at Oliver, BC, field school.

Economic downturn equals academic upturn Ontario’s Cambrian College, which offers geological engineering technology and mining engineering technology programs, has seen an unusual shift in enrolment. Geoffrey Dalton, dean of engineering technology, says, “Everything has turned on its head. Normally, we have the largest number in the first year.” Now, however, while first-year enrolment in the mining technicians’ program has dropped 50 per cent, numbers have rarely been higher in the third year. “More students are staying in the program because there are not a lot of jobs,” Dalton says. One of the best ways to keep students in school and help them get jobs is to have them engage with the industry. Cambrian achieves this with help of its program advisory committee that includes many industry members. “They are doing much to promote our programs and give our students work experience so that they are better prepared once they finish,” Dalton explains. “We’ve received substantial financial support from companies such as Vale Inco, Xstrata and Stantec for equipment and scholarships. Other companies are involved in supporting our students through work experiences. Overall, the industry is very supportive.”

Flexible, rebranded and attractive A dedicated rebranding effort pushed undergraduate enrolment up 66 per cent in the University of Manitoba’s department of geological sciences. “We’ve had a particular increase in our first-year courses because we’ve made them more flexible,” says department head Ian Ferguson. The names and approaches of some of the courses have been changed to attract more interest, and students are allowed to take the first-year geology courses in any order they want. As an illustration, the environmental geology course was given an image boost with the new name “natural disasters and global change.” Student retention is another area of focus, especially at the undergraduate level. An administrative assistant in the department deals directly with students’ questions and program planning, helping stem attrition. 32 | CIM Magazine | Vol. 4, No. 8

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Photo courtesy of Erik Eberhardt, UBC Dept. of Geological Engineering

Photo courtesy of Robert Raeside

outlook 2010

Acadia University students mapping during the second year field school, Antigonish Highlands, Nova Scotia.

Ferguson says that the university also accords high priority to helping its graduates secure jobs. “We try to be competitive and we do a lot to ensure the students are well positioned to get jobs. When we design our program, we make sure that we have excellent, well-rounded, geoscience degrees. We also try to provide enough flexibility for students to be able to meet requirements for professional registration in Manitoba or Alberta or elsewhere.”

Keeping the numbers up The University of Alberta’s school of mining and petroleum engineering has managed to maintain its traditionally high enrolment rates. “We have 40 students per year in mining engineering and 50 in petroleum engineering,” says Clayton Deutsch, professor of civil and environmental engineering. He adds that despite the economic slowdown, the university has been able to sustain these figures. “Most of the students who want to take mining engineering, will go to school whether times are good or bad.” “People need to be made aware of the opportunities, and we take special steps to do that,” says Deutsch. The department arranges a special “industry night” for first-year engineering students, who all take the same courses, regardless of their eventual

specializations. This helps sell the mining engineering option to many students. Many industry leaders from Alberta and the Northwest Territories serve on the school’s active mining industry advisory committee. This committee plays a key role in administering scholarships and designing a well-developed curriculum to help attract and keep students. “At the end of the day,” admits Deutsch, “some students do drop out. A reasonable percentage don’t make it through the first year, but once they get into mining engineering, the attrition rate is very low.” Job placement is another strong attraction factor that the school enjoys. “Almost 100 per cent of our students in the traditional and co-op programs find employment.” Deutsch cautions mining companies to keep offering jobs to his students. “If the word on the street is that there are no jobs, students won’t come and industry knows that.

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The demographics are not good. The industry has a bulge of people who are older, so if they don’t get the younger people in now, there will be a difficulty in the future.”

What’s in a name? The British Columbia Institute of Technology, which offers diplomas in mining and mineral exploration, discovered that simply changing the name of its program made a difference to enrolment. “Around four years ago, we changed the name of our program from mining technology to mining and mineral exploration technology,” says Robert W. Stevens, who teaches in the program. “That name better reflected the program curriculum and the career paths of our graduates. It has drawn people into the program and raised awareness of what the diploma is about.” The program offers some very attractive incentives to students, including day- and week-long field trips. A generous donor left the school a bursary, to fund a trip to Arizona or Nevada mines for the second-year students. “So we have that field trip in addition to visits to mines and geological sites in and around British Columbia,” says Stevens. A philanthropic foundation and several companies also fund many bursaries and scholarships. “Collectively, we have around 12 financial awards for students in the mining and mineral exploration program, some worth as much as $5,000,” he explains. The program has also initiated an Aboriginal mineral training program. Community-centred instead of campus-

based, this entry-level training program is adapted for each locality and is designed to encourage greater awareness of and involvement in the resources sector among First Nations youth.

High, and aiming higher The geology and geological engineering programs at the University of British Columbia focus on the environmental aspects of applied geology, tailings management, decommissioning and mine and pit design. There are around 100 students in the geology program and about 140 in the geological engineering program. “It’s one of our all time highs in undergraduate enrolment,” says Erik Eberhardt, an assistant professor in the department of earth and ocean sciences. “Many of our students are hired by consulting companies that work for the mining industry and require specialists in geotechnical engineering and environmental engineering,” says Eberhardt. “Our students in the geological engineering program are qualified in both of these areas and there has been an upsurge of work with new mines being opened and existing mines nearing decommissioning.” The university makes special efforts to inform firstyear engineering students about mining-related options. “We tell them that this branch of engineering involves working with nature, state-of-the-art design and engineering tools,” continues Eberhardt. While the university already receives a lot of industry support for sponsoring field trips, it is making a big push to secure more support for an $80 million expansion. This is envisaged to expand and update teaching and research space, facilities and capabilities. A third of the money is slated to come from the mining industry. This industry support has helped attract further funding. “It has been a leaping point for other funding coming in from governmental-type bodies,” explains Eberhardt. “All this is creating great momentum. We already have two very healthy programs and our numbers are at all-time highs. Even though there is a slight downturn, it seems like a temporary drop. Things are looking healthy for us.”

The time is ripe If there was an upside to the downturn, perhaps it was that it forced academic institutions and the minerals industry to take a closer look at how to go about ensuring that we have a qualified workforce for the future. With so many excellent courses offered across the country, there has never been a better time to get into a mining-related educational program or to return to school to upgrade one’s skills. McGill’s Hani Mitri, who is certain that the industry is in good shape despite the downturn, sums things up well. “I feel that the industry is bouncing back and that things are improving. The base metals are picking up, the gold market is solid and the oil sands are recovering and gradually beginning to hire work term students. If the market is slow, the best thing to do is to get ready for the recovery by getting a degree or a diploma.” CIM 34 | CIM Magazine | Vol. 4, No. 8

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outlook 2010

Feeding the cat China can be the land of unprecedented opportunity for Canadian mining companies By Dan Zlotnikov Illustrations by André Pijet

“

here is a story popular among the Chinese, attributed to Deng Xiaoping, the father of modern China, whose economic reforms included opening the country up to foreign investment,” says Keith Spence, president and partner of Global Mining Capital Corp., a private, Toronto-based investment company focused on the Chinese mining sector. “People would come to Deng and say, ‘You’re proposing all these changes, but they seem more like capitalism than socialism or communism.’ Deng would reply, ‘It doesn’t matter if the cat is black or white, 36 | CIM Magazine | Vol. 4, No. 8

so long as it catches the rat.’” The rat in question was economic growth. To catch it, the Chinese government was, and is, willing to consider cats of many stripes. China’s two new “cats,” Spence explains, are infrastructure — roads, railways, telecom lines, power stations and grids, and everything necessary to industrialize the vast country. And the other — resources — is needed to keep the first cat fed. For this, Spence says, China must look overseas. China certainly factors in greatly to any examination of the global mining outlook for the upcoming year. Against

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outlook 2010 the backdrop of a global financial crisis and shrinking economies, China’s growth rate exceeds eight per cent, it has reserves of over US$2 trillion, and its newly established middle class will number 290 million by the end of next year. Whatever colour Deng’s feline may be, its dimensions are enormous.

Working through the slack With stock markets showing the first signs of optimism and national economies starting to rebound again — or at least to shrink more slowly — the financial crisis seems to be drawing to a close. This can only mean good things for the mining industry, as the demand for minerals picks up. The effects are more immediate for some minerals than for others, explains Bob Bell, vice president and CCO of Teck Coal. “Steelmaking coal is used to make coke, which is used in blast furnaces to make pig iron, a primary component of steelmaking,” says Bell. “There is a direct link from metallurgical coal to pig iron production. There’s also a very strong correlation between GDP growth and steel demand. As the world economy continues to grow, GDP and the demand for steel will continue to grow.” Teck saw a slump in coal sales in early 2009, Bell admits, with the first quarter being especially low. But the picture changed significantly in the second half of the year, with sales increasing sharply in the third quarter. By the fourth quarter, demand grew enough to necessitate Teck having to adjust its 2009 annual sales projections from approximately 18 to 20 million tonnes to around 19.5 to 20.5 million. The main change, however, has been in the source of the demand.

A new port in a storm Whereas Teck’s traditional coal customers were Japanese, Korean, Tawainese, American, South American and Western European, now new demand is coming from China. This is primarily because the economic slowdown in China was much less severe than in most other countries. According to the Asian Development Bank, the Chinese economy will have averaged 8.2 per cent growth in 2009, far outpacing the U.S. economy, which shrank by 3.2 per cent over the same period. China’s appetite for coal is not really new. “China has always been a huge consumer of steelmaking coal,” explains Bell. “The difference is that they’ve previously satisfied their demand largely with domestic production. But

in 2009, they’ve started importing very significant quantities of coal.” A number of factors drove this change. The first is competition within China, not for coal, but for limited rail capacity. Other goods are taking up the space that domestic coal could have occupied previously. In addition, Bell says, safety concerns have caused a few mine closures, further increasing the coal shortfall. Finally, China is rapidly modernizing its blast furnaces, moving to more modern, larger units. These newer furnaces, Bell explains, require a higher grade of coke, which invariably mean higher grades of coal. China just does not have enough high-grade coal to feed the growing demand, and has to use seaborne imports to make up for the shortfall. Meanwhile, the rest of the world is also on the path to renewed growth. With its traditional markets slowly recovering, Bell says that Teck has to decide whether to return to familiar lands next year, or to continue its newfound relationship with China. Regardless of which option it chooses, Bell is confident that the company will be able to sell every last bit of coal it can produce.

Breaking new ground These developments raise an important concern: Can Teck and other mining companies keep up with the demand? Bell predicts noticeable supply-side constraints in the coming year and expects growth in demand to only widen the gap going forward. “China is just one economy,” he says. “The Indian economy is also entering the growth phase, probably about 10 years behind China in terms of GDP per capita. But it’s another economy with more than a billion people who will want raw materials to improve their standard of living.” The new constant in the game will be volatility. As Bell suggests, “there will be greater volatility in commodity pricing, and there is not much you can do to prevent that. Companies just have to become more nimble so they can react more quickly to the underlying causes of the volatility. We’re going to have to be able to deal with swings a little more flexibly. That’ll be an ongoing challenge for buyers and sellers.” It is important to note that Bell’s prediction applies to more than just coal. The 2005-06 period is a pointed reminder of how drastic metal shortages can get. In this period, copper and nickel prices set many records and stockpiles on the London Metal Exchange December 2009 / January 2010 | 37

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outlook 2010

were all but exhausted. The Chinese government is concerned about a secure, predictable and long-term supply of metals, says Spence. He identifies the failed 2004-05 bid by China Minmetals to acquire Noranda as the seminal event that marked the start of Chinese buying spree. “There is much government support to encourage the acquisition of raw materials,” he says. “This acquisition binge is really a way to get the offtake contracts that the Chinese are most interested in. In the last two years, the Chinese were looking for 51 per cent majority stakes with most of their acquisitions. Now, they seem satisfied to control blocks of 20 to 40 per cent, if they get the offtake agreement.”

The attraction is mutual According to Spence, Canada’s significance to China is about to increase. Pre-crisis, he explains, the Chinese focussed on emerging markets such as Africa, where they have had long-established relationships. But postcrisis, when properties are at more attractive valuations and nearly everyone is hungry for capital, the Chinese acquisition focus is likely to shift to developed countries like Canada. “More mining companies are listed on the Toronto Stock Exchange than on any other exchange in the world,” points out Spence. “A lot of these companies have assets globally. I think that’s why the Chinese are interested in Canada in particular.” 38 | CIM Magazine | Vol. 4, No. 8

Instead of going to regions of political instability, such as the Democratic Republic of the Congo, says Spence, a Chinese company can acquire a Canadian operator in a well-established, mining-friendly jurisdiction, and have the bonus of foreign assets besides. “The fact that the foreign asset is already owned by a Canadian company means they’ve already mitigated some of the political risks,” explains Spence.

When the shoe was on the other foot The Minmetals bid for Noranda marked the start not just of the Chinese buying binge, says Spence, but also of a total reversal of capital flow. In 2002-03, China was attracting so much attention that “if a Canadian company mentioned they had an agreement to acquire a project in China, its stock went up by multiples,” says Spence. “The effect was so significant that the stock exchange started to closely examine China-related press releases to ensure that the companies indeed had a firm deal.” At that time, Spence recalls, Canadian companies could acquire advanced-stage exploration projects relatively cheaply. The Chinese authorities tended to steer foreign buyers to properties with difficult metallurgy, lower grades, or projects requiring extensive drilling. Canadian expertise was seen as the perfect match to such projects, and a great number were snapped up. However, as Chinese mining companies began to make forays internationally to acquire foreign properties, ironically, foreign

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outlook 2010 mining companies in China gradually began to exit China and reconsider their Chinese operations.

Don’t go it alone Not all Canadian operators left China. Among those who remain is the gold exploration company Goldrea, which owns a property outside the city of Rushan, in Shandong province. Goldrea’s president and CEO, Larry Reaugh, has experienced the changes firsthand. He believes that Goldrea benefited greatly from starting fresh, rather than purchasing an existing project. “With existing projects, you have a mindset that’s very difficult to change,” says Reaugh. “The mindset is ‘we’ve been doing it like this for the last 15 years and it works for us, so we’re going to continue doing it this way’.” On the other hand, with a fresh project, there is the complexity of managing local relations — whether it’s compensating a farmer for drilling on his land or negotiating with the local authorities. The Goldrea property ships ore to a nearby mill owned by the city of Rushan, which is also a joint venture partner in the exploration project itself. Goldrea had an option to buy the mill, Reaugh says, “but the process dragged on and on, and it was becoming costly, so we dropped the purchase.” Today, as Goldrea is nearing transformation into a gold-producing company, it is actively seeking a Chinese partner which, in addition to bringing in capital, could smoothen the process of dealing with the authorities, explains Reaugh. “I believe that when you’re doing exploration, you won’t have a problem,” says Reaugh. “But when it comes to purchasing an existing asset, for example, an operating mine in China, then you’ll start seeing resistance from the provincial and central government.” He is convinced that to move ahead in China, a solid Chinese mining partner is essential. “It eases everyone’s mind over there around

foreign ownership. That’s something I’m interested in now, because I’ve operated there long enough to see the pitfalls. Unless you’re very well-financed, you will have difficulty moving forward. Things can be a lot easier if you have local participation, because they understand the culture and the administrative structures. It makes it easier for government officials to pass on acceptance or to approve applications when you do have a Chinese partner.” While China may not be as open to direct foreign ownership of projects as it was a few years ago, there is still a place for Canadian involvement, mainly in partnership with local operators. But these local companies no longer lack what they did 20 years ago — capital, financial expertise, and technical skills. If the mining companies of the world wait a bit, they won’t have to come to China — China will likely come to them. CIM

December 2009 / January 2010 | 39

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perspectives pour 2010

Nourrir le chat La Chine – d’immenses possibilités pour les compagnies minières canadiennes

vec un taux de croissance qui dépasse 8 %, des réserves de trésorerie de plus de 2 billions $US et une classe moyenne qui devrait atteindre 290 millions de personnes d’ici la fin de l’année prochaine, il est impossible d’ignorer la Chine. Les marchés bousiers montrent des signes de croissance et il semble que la crise financière s’achève, de bonnes nouvelles pour l’industrie minière. Selon Bob Bell, chef des services financiers chez Teck Coal : « Le charbon est une composante primaire de l’acier. Il existe une très forte corrélation entre le PIB et la demande pour l’acier. La Chine a toujours été un très grand consommateur de charbon cokéfiable et sa production interne répondait aux besoins. Cependant, en 2009, les Chinois ont commencé à importer de grandes quantités de charbon cokéfiable par bateau. » Plusieurs facteurs expliquent ce changement : une forte compétition à l’intérieur de la Chine, non pas pour le charbon mais pour le transport par rail; certaines mines ont aussi fermé pour des raisons de sécurité et la Chine cherche à moderniser ses hauts-fourneaux, nécessitant un coke de meilleure qualité. Le reste du globe connaît aussi une reprise économique et Teck se demande si la compagnie retournera en terrain connu ou si elle poursuivra sa nouvelle relation avec la Chine. Peu importe l’option choisie, la compagnie a bien confiance qu’elle pourra vendre tout le charbon qu’elle produira. Est-il possible de répondre à la demande? M. Bell prévoit de sérieuses contraintes d’approvisionnement et que la demande croissante ne fera qu’élargir l’écart entre l’offre et la demande. « L’économie de l’Inde entre dans une phase de croissance; le retard avec l’économie de la Chine est d’environ 10 ans. Le pays compte plus d’un milliard d’habitants qui voudront des matières premières pour améliorer leur niveau de vie. » Les cycles miniers relativement réguliers d’expansion et de ralentissement deviendront choses du passé. Selon M. Bell, la volatilité constituera la nouvelle constante. Selon Keith Spence, président et associé, Global Ming Capital Corp., le gouvernement chinois s’inquiète que la compétition entre les nombreux acheteurs fasse monter les prix. Il rappelle la tentative infructueuse de China Minmetals d’acheter 40 | CIM Magazine | Vol. 4, No. 8

Noranda en 2004-2005; c’était l’événement charnière qui a marqué le début de la frénésie d’achat par les Chinois. « Au cours des deux dernières années, les Chinois cherchaient à obtenir une participation majoritaire mais ils recherchent maintenant des blocs de 20 ou de 40 % et le contrôle de la production. » « L’importance du Canada pour la Chine est sur le point de croître grandement », explique M. Spence. Avant la crise économique, les Chinois ciblaient des propriétés en Afrique. Cependant, maintenant que les propriétés sont à bas prix et que presque toutes les compagnies recherchent des capitaux, la Chine se tournera probablement vers les pays développés comme l’Australie et le Canada – surtout le Canada, une juridiction favorable aux mines. L’accent sur le Canada est aussi motivé par la politique, ajoute M. Spence, référant à la rupture des négociations avec Rio Tinto et l’arrestation d’un citoyen australien sur des accusations d’espionnage industriel. Ce désagrément peut être à l’avantage du Canada. La tentative d’achat de Noranda par Minmetals signifiait aussi un moment de reversement du flux des capitaux. En 2002-2003, la Chine attirait tellement d’attention que « si une compagnie canadienne mentionnait qu’elle avait une entente pour acquérir un projet en Chine, la valeur de ses actions grimpait fortement. » La Bourse a même demandé de ne pas émettre de communiqué de presse avant d’avoir un contrat ferme. Les compagnies canadiennes pouvaient alors acquérir des projets d’exploration avancée à des coûts relativement bas. Les autorités avaient tendance à diriger les acheteurs étrangers vers des propriétés à basse teneur ou avec une métallurgie difficile. L’expertise canadienne était perçue comme excellente pour ce type de projet. Cependant, les rendements économiques n’étaient pas à la hauteur des attentes. Seulement cinq projets en Chine se sont avérés des succès. Bien que la Chine ne soit pas aussi ouverte à des intérêts étrangers qu’auparavant, il y a encore de la place pour des compagnies canadiennes, surtout en tant que partenaires. ICM

On the road to recovery and expansion By the staff of the Mines Branch, Department of Natural Resources, Government of Newfoundland and Labrador

Resurgent investment

Photo courtesy of the Department of Natural Resources, Government of Newfoundland and Labrador

Despite the recent economic downturn, Newfoundland and Labrador is witnessing a resurgence of investment in its minerals industry. Vale Inco formally notified the province in late 2008 that it will construct a hydromet nickel processing plant at Long Harbour, Newfoundland. The plant is currently in the early stages of earthworks and construction, and is forecast to be completed in February 2013 at a total estimated cost of US$2.177 billion. Operational employment will be about 450 persons, and the plant will produce 50,000 tonnes of finished nickel per year. In the first half of 2009, the Iron Ore Company of Canada (IOCC) appears to have maintained reasonable sales levels through the spot market in China. Following a scheduled fiveweek mid-summer shutdown, the company has hired 30 new employees. A decision on reviving the previously announced $800 million expansion program has yet to be made. Wabush Mines announced in February that it will implement a $4 million project to complete the Iron Ore Company of Canadaâ&#x20AC;&#x2122;s open pit mine in western Labrador assessment and evaluation of manganese separation technology on a production prototype. This will deterining is one of Newfoundland and Labradorâ&#x20AC;&#x2122;s mine if the technology can be transferred to a full facility largest and oldest industries, and a major contribu- rollout. The manganese separation process will allow the tor to the provinceâ&#x20AC;&#x2122;s economy. Six metal mines pro- company to mine and process higher manganese ores duce iron ore, nickel, copper, zinc, cobalt, antimony and gold. and will extend the life of the mine. The project is Other operations mine slate, limestone and barite, among expected to proceed, possibly in 2009, upon approval at other commodities. Direct employment in the Newfoundland the corporate level. The project has a total capital cost of and Labrador minerals industry is projected to account for $43 million. The company announced 160 employee lay4,112 work-years in 2009, an increase of 99 work-years offs for February and decreased production by about 50 over the 2008 estimate. The forecast gross value of mineral per cent for 2009. However, 100 unionized employees shipments for 2009 is $2.2 billion. This is down from $4.7 have since been recalled. billion in 2008 as a result of weaker commodity prices and Teck Resources Ltd. achieved a milestone at its Duck decreased production due to scheduled shutdowns and Pond operation by reaching the heart of the ore body at the labour disruption. However, this lower 2009 figure is still the 42 level. They are also in the middle of developing an fourth highest value on record for the province. underground service centre for mobile equipment, which

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

will better position them for a safe, productive working environment. Anaconda Mining Inc. began production at the Pine Cove gold mine in mid-2008, and in mid-2009, the company announced that it had entered into a 12-month toll processing agreement with Crew Gold Corporation. Anaconda delivers ore from Pine Cove to Crew’s Nugget Pond mill for processing. This arrangement will provide additional time to resolve challenges with Anaconda’s milling process. Rambler Metals and Mining PLC continues to advance work on reopening the former Ming Mine on the Baie Verte Peninsula, Newfoundland. In 2009, Rambler announced that it will purchase the Nugget Pond gold processing facility from Crew Gold Corp. to process ore from the Ming project. The company plans to process 850 tonnes of copper/gold ore per day, and employ about 100 people during peak production. Rambler has stated that the milling agreement between Crew Gold and Anaconda Mining will continue without interruption. In September, Canadian Antimony Mine Inc. and Beaver Brook Resources Ltd. announced an agreement to sell Beaver Brook Antimony Mine Inc. to Hunan Nonferrous Corp. Hunan is the largest antimony company in the world and currently Beaver Brook’s largest customer. The sale will ensure demand and stability for the mine’s concentrate sales and should prove to be a major contributing factor in the operation’s continued production. Hurley Slate Works Company Inc. is developing automated splitting, grading and sorting equipment that it hopes will improve efficiency at its slate roofing tile production facility in Trinity Bay, Newfoundland. The company also has plans to market the technology to mid-sized slate producers worldwide. New Millennium Capital Corp. and Labrador Iron Mines Holdings Ltd. are moving towards production at separate direct-shipping iron ore projects in western Labrador. Production from these proposed open pit mines, with target site dates of 2011 and 2010, respectively, would produce lump and sinter fines products for export markets. Combined production from these two projects will be between four and five million tonnes per year and will generate approximately 300 jobs during operations. Canada Fluorspar Inc. is developing the formerproducing fluorspar deposits at St. Lawrence, Newfoundland. The company plans to commence construction in the spring of 2010 and begin production in the late fall of 2011. A 2009 resource estimate reports 9.1 million tonnes indicated resources at a grade of 42.0% CaF2 and one million tonnes of inferred resources at a grade of 31.0% CaF2. As these and other projects are developed within Newfoundland and Labrador, there is an increased awareness of environmental and social issues. The province continues to implement the Mining Act, which requires mining companies to have adequate financial assurance for the rehabilitation of their mining operations.

Continuing exploration Expenditures on exploration and deposit appraisal in the province are projected to be about $58 million in 2009, down from about $146 million in 2008. This is in line with global trends during the current economic downturn. In exploration highlights, Tenajon Resources Corp. (now Creston Moly Corp.) has reported a resource estimate at its Moly Brook Property. The Moly Brook Zone contains an indicated resource of 86.8 million tonnes grading 0.065% Mo and an inferred resource of 31.3 million tonnes grading 0.056% Mo. Thundermin Resources Incorporated and Cornerstone Resources Incorporated announced a resource estimate for the Little Deer copper project. The deposit contains an indicated resource of 1,087,000 tonnes at an average grade of 2.9% Cu and an inferred resource of 1,950,000 tonnes at an average grade of 2.3% Cu. Fronteer Development Group Incorporated has announced a positive preliminary economic assessment for the proposed Michelin Uranium project in Labrador. The study is based on an open pit and underground uranium mining operation at the Michelin and Jacques Lake deposits, and a milling facility at the Michelin site capable of processing 10,000 tonnes of mineralization per day, producing up to 7.3 million pounds of U 3O8 per annum. Northern Abitibi Mining Inc. continues to encounter new mineralization at its Viking gold property through an ongoing program of trenching and diamond drilling. Highlights of the work to date include a drill intersection of 27.0 metres grading 7.9 grams per tonne Au, within which are 4.8 metres of 41.4 grams per tonne.

Supporting the sector The Department of Natural Resources assists exploration in the province with a range of programs and services. Along with field-based geoscientific surveys, internet-based services include online, real-time claim staking and GeoScience Online, a compendium of searchable databases and company assessment reports. A new initiative to be introduced in 2010 is an online exploration permitting system. Through its Mineral Incentive Program, the province is encouraging exploration with a 2009 budget of $3.0 million for cost-shared funding of approved projects allocated to the three main components as follows: $400,000 for Prospectors Assistance, $2.2 million to Junior Exploration Assistance and $250,000 for Natural Stone Assessment. The department also supports the mining sector through its investment attraction program by displaying the province’s mineral potential at national and international mining conferences and other venues. With commodity prices beginning to increase from recent lows, the provincial mining industry is poised to continue its recovery and expansion. CIM December 2009 / January 2010 | 43

Fostering development, protecting the land By Daniel Khan and Dianne Webber, Mineral Resources Branch, Department of Natural Resources, Government of Nova Scotia

Photo courtesy of NS Department of Natural Resources

representatives from DNR, Nova Scotia Environment and the Department of Labour and Workforce Development. The one-window approach is designed to improve the regulatory review process for both proponents and regulators by facilitating the exchange of information and establishing clear regulatory responsibilities. Other provincial and federal regulatory authorities are invited to the one-window review process as issues are identified. DNR continues to assist the minerals industry by refining and expanding its geoscience databases and makes them available, free of charge, through the Internet. The provinceâ&#x20AC;&#x2122;s long history (of well over 100 years) of formal geoscience programs, including initiatives in environmental geology and hydrogeology, has resulted in the availabilPoint Aconi surface coal mines, operated by Pioneer Coal Limited, escavating remaining coal resources following the closure of the Prince underground mine. ity of extensive information in various forms. Additionally, ova Scotia continues to offer significant investment because of the provinceâ&#x20AC;&#x2122;s relatively small land area, many opportunities to the minerals industry with proven locations have been examined in detail with numerous exploitable industrial mineral, metallic mineral and reports compiled on local mineral potential. DNR library services in Halifax include access to all coal deposits. The provinceâ&#x20AC;&#x2122;s Atlantic coast location provides strategic access to North American and European exploration assessment reports on file with the departmarkets with an extensive transportation network, includ- ment. The department is actively converting this informaing numerous deep-water, ice-free ports. Additionally, there tion from paper to scanned digital files for more convenient are opportunities for value-added manufacturing of long-term archiving. The Provincial Core Library in Stellarton holds over 600,000 metres of core from various mineral-based products prior to marketing. The government of Nova Scotia encourages the geological settings throughout the province. Drill core and responsible use of its mineral resources through a combi- other sample materials have been preserved for use by any nation of comprehensive industrial development regula- party interested in examining them. Recently, a water tions, geoscience programs and support for economic resources database was released in conjunction with Nova development. The Department of Natural Resources Scotia Environment, which complements other data sets (DNR) maintains the Registry of Mineral and Petroleum such as mineral occurrences and abandoned mines. Titles, which is responsible for the issuance and review of exploration licences and mineral development leases. Mineral sector activity in 2009 DNR also coordinates the review of all mineral development projects through the provincial One-Window Production: Industrial minerals, led by gypsum, salt, limeCommittee on Mineral Development, which comprises stone and construction aggregates, continue to make up

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the bulk of Nova Scotia’s mineral production in terms of value and quantity. Many producing sites are long-term operations, often operating for several decades prior to depletion of the resource. The province’s gypsum industry, after a long period of record annual production of over eight million tonnes, has recently reduced production due to lighter demand for construction wallboard and the increasing use of “synthetic” gypsum. This resulted in temporary shutdowns at several mines during 2009. The industry has experienced similar patterns of lower demand in the past when new home construction slowed in the United States. Production is expected to increase as the housing industry recovers. Demand for salt products remained strong as a result of the continuing requirement for road de-icing products for winter use in the Maritime provinces and neighbouring regions. Coal production increased significantly over the past few years with several reclamation mining projects operating at sites of former underground mines. It is expected that nearly a million tonnes of coal will be mined in 2009 from two larger surface coal mines. Base metal mining returned to Nova Scotia in 2007 with the resumption of zinc and lead mining at Gays River. However, the province’s only operating metal mine was placed on care and maintenance in 2009, following the steep drop in commodity prices for these metals in late 2008. The demand for construction aggregate, for both domestic and export markets, continues to grow. A few large operations are complemented by a number of strategically located quarries and pits throughout the province to supply smaller markets. A crushed granite aggregate quarry at Auld’s Cove continues to rank in the top five Canadian crushed stone quarries. Construction aggregates are not considered minerals under the Mineral Resources Act and are owned by the land owner.

Exploration and development: As a result of relatively low mineral commodity prices persisting from 2008, the overall level of exploration activity for 2009 is down from 2008. Mineral exploration is mainly focused on gold and base metals. There continues to be an interest in rare metals associated with the granites of southern Nova Scotia. In 2009, exploration work continued on the evaluation of the iron oxide, copper and gold (IOCG) potential of the volcanic rocks along the northern boundary of the Cobequid-Chedabucto Fault Zone. Recently, emphasis has also been placed on the potential for development of large-tonnage, bulkmineable deposits associated with historical gold districts in metasedimentary rocks in the southeastern area of mainland Nova Scotia. Work continued on exploration for lead-zinc deposits in central mainland Nova Scotia and Cape Breton Island, and for base metals in eastern Cape Breton. Larger mineral development projects under investigation include a proposed surface gold mine at Moose River and an undersea, long-wall coal mine project at Donkin. Both projects continue with advanced exploration and feasibility studies prior to making a decision to move forward to production.

The outlook for 2010 Policy changes: In 2007, the provincial government passed the Environmental Goals and Sustainable Prosperity Act (EGSPA), which sets a number of stringent environmental protection targets, including sulphur dioxide and greenhouse gas emission limits and the establishment of the minimum land area designated as protected from development. The Act works in conjunction with the government’s economic growth strategy — Opportunities for December 2009 / January 2010 | 45

Sustainable Prosperity — and the framework for social policy called “Weaving the Threads.” This combination of legislation and policy recognizes the interdependence of social well-being, economic prosperity and environmental sustainability and makes Nova Scotia one of the few provinces in Canada to enshrine environmental and sustainability goals directly in law.

Natural resources strategy:

The EGSPA includes a commitment that Nova Scotia will adopt strategies to ensure the sustainability of the province’s natural capital by the year 2010. The new strategy will guide and direct the management of important natural assets over the next decade. The strategy will include four key components — forests, minerals, parks and biodiversity. The first phase of strategy development, coordinated by Voluntary Planning (Nova Scotia’s citizens’ policy forum), included public consultations to determine public values with regard to natural resources. In 2008, 27 community meetings with more than 2,000 participants were held across the province. These sessions engaged citizens in discussions focusing on what is most valued about these four components of natural resources. Societal values expressed in these conversations form the foundation for the development of the strategy. In addition to these in-person sessions, written comments were also accepted. A final report compiling

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citizen feedback was provided by Voluntary Planning to the Minister of Natural Resources in April 2009, bringing the first phase to completion. During phase two, a steering committee will oversee four expert panels, one for each of the four strategy areas. The panels will conduct stakeholder consultation and develop a report and recommendations. Phase three of the process will take place in 2010 with DNR developing a long-term natural resources strategy that builds on information gathered in phases one and two.

Legally protected land objectives:

The Government of Nova Scotia recognizes the importance of protecting ecologically significant portions of the province’s landscape. The EGSPA’s ambitious target is that 12 per cent of the total provincial land mass be legally protected by 2015. In the first EGSPA Annual Report, it was noted that with more than 70 per cent of land in Nova Scotia in private ownership, and with many competing demands for the use of Crown land, there are significant challenges in meeting this target. Currently, approximately eight per cent of the land area of the province is designated as protected. CIM References to the Environmental Goals and Sustainable Prosperity Act (EGSPA) are extracted from the EGSPA 2009 Annual Progress Report published by Nova Scotia Environment.

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Well-positioned for a commodities rebound By Sean McClenaghan, Kathleen Thorne and Les Fyffe, Geological Surveys Branch, New Brunswick Department of Natural Resources

Photo courtesy of PotashCorp, New Brunswick Division

to limit uranium exploration and mining in designated watersheds and municipalities. To address landowners’ issues, the Mining Act was further amended in 2009, moving the province towards an online electronic map-staking system. The NB e-CLAIMS system, scheduled to come online in early 2010, will allow electronic access to mineral claims from anywhere in the world.

Mineral exploration Base metals:

Blue Note Mining intersected significant base metal mineralization while testing a 2.3-kilometre geophysical anomaly at the Armstrong property in northern New Brunswick’s Bathurst Mining Camp. Drill hole AB08-09 intersected 8.3 metres of massive sulphides grading 2.83% Zn, 1.01% Pb, 0.32% Cu and 27.1g/t Ag, including 3.62% Zn, 1.46% Pb, 0.29% Cu and 32.3g/t Ag over 3.0 metres. SLAM Exploration acquired 607 claims in the Bathurst Camp following the discovery of angular boulders of semi-massive and stringer sulphides in the Mullin Stream area. Three drill holes have intersected broad stringer sulThe first of two headframes under construction at PotashCorp’s Picadilly project near Sussex, New Brunswick phide mineralization zones. Drill hole TS-09-01 intersected a 43.3-metre interval of stringer mineralization comn 2008, lower commodity prices, in conjunction with the prising 10% pyrite-pyrrhotite with visible base metals and credit crisis, led to an overall decrease in exploration containing 406 ppm Cu, 323 ppm Pb, 557 ppm Zn, 121 expenditures from the 2007 figure of $32 million to $31 ppm Co, 1.8 ppm Ag and 56 ppb Au. A 2008 New Brunswick Junior Mining Assistance grant million and in mineral production values from $1.57 to $1.4 billion. However, in 2009, New Brunswick recorded its high- helped fund an 11-hole, 2,767-metre drilling program est number of claims in good standing since 1956 — through the Costigan base-metal sulphide deposit in west38,000, up from 37,700 in 2008. Sustained work on central New Brunswick. All holes intersected sulphide minadvanced projects continued to outline resources and eralization with intervals up to 27.0 metres and grades rangexpand reserves, positioning some for development with ing from 1.85% to 9.96% Zn+Pb. SLAM updated its the expected rally in commodity prices. resource estimates for the Nash Creek zinc-lead-silver Issues concerning landowners’ and prospectors’ rights massive sulphide deposit, 25 kilometres west of the Port of were brought to the forefront during a claim-staking peak Belledune. Wardrop Engineering reported NI 43-101-comdriven by higher uranium prices. After a brief suspension of pliant indicated resources of 7.81 million tonnes grading ground claim staking, regulatory amendments were passed 2.72% Zn, 0.55% Pb and 18.3 g/t Ag, with an inferred

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resource of 1.21 million tonnes grading 2.66% Zn, 0.52% Pb and 18.0 g/t Ag. Stratabound Minerals commissioned RPC Science and Engineering to conduct preliminary metallurgical test work on the semi-massive copper-cobalt zones within the Captain volcanogenic massive sulphide (VMS) deposit at the Bathurst Camp. The 30 per cent sulphide mineral contents consist of pyrite, chalcopyrite, sphalerite, galena and bismuth/bismuthinite, with cobalt occurring as a solid solution in pyrite. Flotation tests on the copper-cobalt and the cobalt zones also returned encouraging results. Kria Resources completed a preliminary economic assessment for its Halfmile Lake VMS deposit in the Bathurst Camp. It estimates that a 2,000 tpd underground mining operation would have a life of at least 20 years with payback on investment (NPV of $587 million and 16.24 per cent rate of return) being achieved in the eighth year. The depositâ&#x20AC;&#x2122;s NI 43-101-compliant indicated resources are 6,260,000 tonnes grading 8.13% Zn, 2.58% Pb, 0.22% Cu and 30.78 g/t Ag. Inferred resources are 6,080,000 tonnes grading 6.69% Zn, 1.83% Pb, 0.14% Cu and 20.51 g/t Ag. Kria also reported NI 43-101-compliant inferred resources of 5,520,000 tonnes grading 6.11% Zn, 2.59% Pb, 0.40% Cu and 54.21 g/t Ag (5% Zn-equivalent cut-off) at the nearby Stratmat property. Puma Exploration delineated a NI 43-101-compliant resource of 364,000 tonnes containing more than a million ounces of silver, 11 million pounds of zinc (1% Zn-equivalent cut-off), five million pounds of lead and 6,200 ounces of gold in the HachĂŠ massive sulphide lens on its NicholasDenys property in northern New Brunswick. Recent drilling on the property, which hosts more than 50 mineralized showings, focuses on upgrading inferred resources to indicated resources. Puma is currently conducting fill-in drilling on the nearby Shaft lens (300 metres along strike), with one drill hole intersecting 4.4 metres of sulphides grading 6.0% Zn, 3.3% Pb, and 108 g/t Ag. A 2009 New Brunswick Deposit Evaluation grant allowed Puma to drill on the Turgeon VMS deposit, five kilometres south of Belledune. Two drill holes intersected copper mineralization with 2.4% Cu over 31 metres and 40 metres grading 1.0% Cu and 2.9% Zn. In light of recent drilling results and historical data, Puma staked 30 claims on the southern extension of the Turgeon property.

Gold:

Freewest Resources Canada and Rockport Mining drilled 11 holes on the East Zone of their Clarence Stream property in southwestern New Brunswick, testing a 600-metre segment below the 100-metre level. Intersections included 8.24 g/t Au over five metres in drill hole CS08-308 and 13.69 g/t Au over two metres in hole CS08-310. Blue Note Mining discovered a significant gold occurrence following soil sampling and trenching on its Williams Brook property, 90 kilometres west of Bathurst. The company drilled 24 shallow holes to test mineralization associated with quartz veins and potassic-altered rhyolite. Drill

hole WB-08-11 returned 2.8 metres assaying 11.2 g/t Au including a 50-centimetre section assaying 24.1 g/t Au. The gold mineralization was intersected 15 metres below the surface. Stratabound Minerals, partnering with Castle Resources, reported results from 10 drill holes on the Elmtree gold property in northern New Brunswick. Intersections in the lower grade South Gold Zone included 0.63 g/t Au over 35.0 metres in drill hole ELM-42 and 0.36 g/t Au over 63.5 metres in drill hole ELM-48. Intersections in the highergrade West Gabbro Zone assayed 1.95 g/t Au over 18.5 metres and 4.65 g/t Au over 17.5 metres in holes ELM-51 and ELM-52, respectively. The Elmtree property hosts NI 43-101-compliant resources of 525,000 indicated tonnes grading 2.45 g/t Au, 4,624,000 inferred tonnes averaging 1.25 g/t Au and 41,000 inferred tonnes containing 201,000 ounces of silver, seven million pounds of zinc and 2.4 million pounds of lead.

Polymetallic minerals:

Based on 48 additional holes drilled in the summer of 2008, Geodex Minerals reported an updated NI 43-101-compliant resource model for its Sisson Brook tungsten-molybdenum deposit. The mineral resource estimate (0.125% WO3-equivalent cut-off) for Zone III is measured at 11 million tonnes of 0.109% WO3 and 0.037% Mo; indicated at 69.1 million tonnes of 0.107% WO3 and 0.03% Mo; and inferred at 47.8 million tonnes of 0.097% WO3 and 0.036% Mo. For the Ellipse Zone, the resource estimate is measured at 500,000 tonnes of 0.112% WO3 and 0.034% Mo; indicated at 10.4 million tonnes of 0.105% WO3 and 0.038% Mo; and inferred at 8.6 million tonnes of 0.091% WO3 and 0.041% Mo. To upgrade the resource and test new target areas, Geodex completed a 28 hole, 4,900-metre drilling program. The company is also focussing on its Flume Ridge property in southwestern New Brunswick to investigate the source of significant tungsten anomalies in soil and stream sediment samples. Adex Mining released updated NI 43-101-compliant resource estimates for its Mount Pleasant property comprising two main mineralized zones. The Fire Tower Zone contains indicated reserves of 13,489,000 tonnes of 0.33% WO3 and 0.21% MoS2, inferred resources of 841,700 tonnes grading 0.26% WO3 and 0.20% MoS2 (0.3% WO3-equivalent cut-off). The North Zone contains indicated resources of 10,882,000 tonnes grading 0.43% Sn, 67.8 g/t In, 0.67% Zn, 0.09% WO3, 0.06% MoS2, 0.11% Cu and 0.08% Bi; and inferred resources of 7,603,000 tonnes grading 0.22% Sn, 74.6 g/t In, 0.99% Zn, 0.08% WO3, 0.05% MoS2, 0.09% Cu, and 0.05% Bi (0.25% Sn-equivalent cut-off). Adex has also conducted comprehensive metallurgical testing to evaluate the viability of extracting tungsten from low-grade concentrates. This test work will be instrumental in developing a pilotplant program that may lead to commercial-level tungsten, molybdenum, tin and indium production. December 2009 / January 2010 | 49

For its Burnthill Mine property, Cadillac Ventures reported NI 43-101-compliant initial estimates of 461,000 tonnes grading 0.489% WO3, 0.012% MoS2 and 0.01% SnO2, and 590,000 tonnes grading 0.535% WO3, 0.009% MoS2 and 0.013% SnO2 in the indicated and inferred categories, respectively.

Non-metallic minerals: With a 36 line-kilometre ground magnetic and VLF-EM geophysical survey on its Benjamin River property in northern New Brunswick, Great Western Minerals Group delineated a 700 by 100-metre geophysical anomaly coinciding with exposures of pegmatitic apatite-diopside-magnetite that contain significant rareearth-element (REE) mineralization in addition to phosphate and iron. Historical assays range from 0.6% to 1.0% REE2O3 hosted by coarse apatite, which is preferentially enriched in heavy-REE (Eu through Lu). Phosphate and iron oxide grades are also significant with samples assaying up to 18% P2O5 and 39% Fe2O3. Cornerstone Capital Resources completed the first phase of an exploration program targeting volcanic-associated uranium deposits on its Chaleur property 60 kilometres west of Bathurst. A 1,511 line-kilometre fixed-wing airborne magnetic and radiometric survey identified 15 uranium targets. Followup prospecting and geochemical stream sediment sampling discovered two new areas of

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

uranium mineralization coincident with airborne uranium anomalies with float samples assaying up to 427 ppm U.

Mining activity and development PotashCorp continued construction on its new $1.7 billion Picadilly Potash mining operation near Sussex. Development plans involve two headframes and an on-site concentrator. Construction is to be coordinated with upgrades to the adjacent Penobsquis Mineâ&#x20AC;&#x2122;s infrastructure. Ground was broken on the first headframe in 2008, with production anticipated to commence in 2011. Blue Note Mining evaluated the known inferred resource at the Caribou Mine. Underground drilling discovered a significant width of mineralization directly below current mine reserves, with drill hole UGX-08-27, intersecting 34.8 metres grading 7.22% Zn and 2.69% Pb. Despite the excellent operating performance and recovery rates, the mine, being unprofitable due to lower commodity prices, is currently closed. However, it has recently been purchased and plans are being drafted to reopen it. Xstrata Zinc Canada completed an extensive technical and economic evaluation of potential mineral resources and other mining remnants in its Brunswick No.12 base metal mine. With improving commodity prices, Xstrata has converted a significant tonnage to mineral reserves status and extended the mineâ&#x20AC;&#x2122;s life to early 2012. CIM

Vigueur du secteur aurifère et perspectives de reprise dans les autres métaux

Photo courtesy of Xstrata Nickel

par André Lavoie, directeur, communications et affaires publiques, Association minière du Québec (AMQ)

L’industrie minière génère des retombées considérables dans les régions urbaines où se retrouvent des institutions de recherche et de développement, de formation, de consultation et de services financiers, en plus de milliers de fournisseurs et de très grandes entreprises de transformation.

De nombreux projets en développement La vigueur du secteur aurifère est évidente, comme en témoignent les récents sommets historiques atteints par le prix de l’or. En août, Agnico-Eagle a officiellement inauguré sa nouvelle mine Lapa en Abitibi après l’ouverture de sa mine Goldex l’année précédente. La Corporation minière Osisko a amorcé, au coût d’environ 1 milliard de dollars, la construction de son complexe Canadian Malartic, qui deviendra la plus Le Québec compte plusieurs grandes entreprises de transformation dans les secteurs du zinc, du fer, du titane et du cuivre, dont l’affinerie CCR d’Xstrata Cuivre à Montréal-Est importante mine d’or au Québec avec une production annuelle de près avoir été rattrapée par la crise financière et plus de 500 000 onces d’or. Iamgold a officiellement inauéconomique qui l’a contrainte à réduire ses activités guré le début des travaux de fonçage du puits de son proet à limiter ses dépenses en exploration et en jet Westwood, un investissement de plus de 400 millions investissement, l’industrie minière a vu les cours des de dollars. métaux et les titres des producteurs se raffermir au cours De nombreux autres projets aurifères sont aussi en de l’année 2009. En plus du maintien de la vigueur du phase avancée de développement : l’approfondissement secteur aurifère, les experts prévoient une plus grande de la mine Laronde (Agnico-Eagle) à une profondeur de demande mondiale pour les métaux de base et les métaux plus de 3 kilomètres, la mise en production du projet du Lac Pelletier (Corporation minière Alexis) prévue pour ferreux pour 2010. 2010, la renaissance de la mine Francoeur (MinesRichmont), le projet Joana (Aurizon), Ressources L’industrie minière au Québec L’industrie minière est un levier important du Métanor à Desmaraisville (Nord-du-Québec) et la mine développement économique au Québec : expéditions de Opinaca, en préparation à la Baie James. près de 5 milliards de dollars, plus de 50 000 emplois D’autres projets majeurs progressent toujours : dans le dans une trentaine de municipalités, dont environ 15 000 fer, le projet Lac Bloom près de Fermont (Consolidated directement reliés à la phase d’extraction. Thompson) et celui de DSO (New Millenium); dans le

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

secteur diamantifère, le projet Renard à la Baie James (Stornoway-Soquem). Cette activité minière génère de nombreuses retombées. Cette année, l’Abitibi est la région ayant le plus bas taux de chômage au Québec. Val-d’Or a officiellement ouvert le Centre de transit minier nordique, un bâtiment qui servira de plaque tournante pour le transport aérien de personnel et de marchandises vers des projets nordiques. Rouyn-Noranda veut doubler les espaces de Xstrata Nickel à son aéroport; le port de Sept-Îles prévoit tripler son volume d’expédition annuelle de fer et envisage augmenter sa capacité de manutention.

De grands défis pour l’industrie minière au Québec en 2010 La ressource humaine :

Les nouvelles exploitations et les nombreux départs à la retraite génèrent d’importants besoins en main-d’œuvre. Toutefois, une situation contrastée s’impose dans le contexte actuel. Ainsi, pénuries et surplus de main-d’œuvre coexistent selon les secteurs, les professions, les régions et les niveaux de qualification.

Maintenir les objectifs en santé et sécurité :

La santé et la prévention des accidents demeurent des préoccupations fondamentales de l’industrie. Le Québec s’illustre sur la scène internationale avec une 8e année consécutive d’amélioration de la prévention des accidents. En vingt ans, le taux de fréquence des accidents pour l’ensemble des mines a diminué de 75 %, ce qui constitue la meilleure performance à vie dans le secteur minier québécois.

L’acceptation sociale de projets miniers :

En 2009, certains dossiers potentiellement problématiques concernant l’acceptation sociale de projets miniers ont vu le jour. D’abord, lors des audiences publiques du Bureau d’audiences publiques sur l’environnement (BAPE) pour le projet Osisko, certains groupes ont questionné le développement de mines à ciel ouvert qui, à leur avis, ne peuvent être associées au développement durable. Une centaine de dossiers ont été déposés : 78 en faveur du projet et 22 contre. L’AMQ a souligné la rigueur du travail réalisé par la minière Osisko en matière de gestion environnementale intégrée et ses efforts remarquables de communication avec la communauté. Certains organismes ont opposé toute activité d’exploration pour de l’uranium au Québec, notamment sur la Côte-Nord. L’initiative de la Conférence régionale des élus (CRE) de la Côte-Nord de tenir un forum régional sur l’uranium à Sept-Îles aura permis à la population d’analyser les retombées et les impacts de l’exploration et de la mise en valeur de projets uranifères au Québec. Enfin, selon certains politiciens, le Canada devrait cesser d’exporter l’amiante chrysotile, estimant que ce produit représente une menace pour la santé.

L’Association minière du Québec se préoccupe de toutes ces problématiques et continuera de suivre ces dossiers.

Politiques gouvernementales :

Dans le rapport 2008-2009 du Vérificateur général du Québec, plusieurs griefs sont adressés au ministère des Ressources naturelles et de la Faune (MRNF) et, par ricochet, à l’industrie minière. Ses recommandations touchent cinq aspects : les redevances ou la question des droits miniers, les garanties financières pour la restauration des sites, le rôle du Ministère quant au suivi et les exigences relatives à la réglementation, l’acquisition et la distribution de l’information et des connaissances sur le secteur minier et l’élaboration d’une stratégie minérale. L’Association minière du Québec s’implique depuis plusieurs années des politiques de compressions budgétaires et du personnel du MRNF et d’un resserrement de l’encadrement réglementaire pour la restauration des sites miniers. Plus concrètement, l’AMQ appuie l’augmentation à 100 % du niveau de la couverture des coûts de restauration des sites miniers; l’élargissement de la portée des garanties ainsi que la révision de la période pour constituer une telle garantie. L’AMQ réclame aussi un resserrement réglementaire lors d’éventuels transferts de propriétés.

Stratégie minérale du Québec et révision de la Loi sur les mines : En juin, le gouvernement du Québec a annoncé officiellement les principes directeurs de sa Stratégie minérale; ils répondront à plusieurs recommandations du Vérificateur général. Ces principes témoignent de la volonté du gouvernement de soutenir le développement concurrentiel du secteur minier québécois, tout en intégrant les préoccupations manifestées par l’industrie, les communautés et les groupes de pression environnementaux. Le gouvernement du Québec a aussi annoncé le dépôt prochain d’un projet de loi visant la révision de la Loi sur les mines. L’AMQ s’attend à ce que ce projet de loi soit discuté en commission parlementaire. Selon le ministre délégué aux Ressources naturelles et à la Faune, M. Sylvain Simard, tous les futurs projets miniers au Québec devront faire l’objet de consultations publiques. Un autre projet de loi concernant la révision du système des redevances sera déposé plus tard en 2010. En plus de tous ces défis confrontant l’industrie minière du Québec, les actions qu’elle posera témoigneront des préoccupations et de l’engagement des entreprises minières à favoriser la participation des communautés. Ce comportement s’inscrit dans une approche proactive de l’industrie minière québécoise, préoccupée par l’intégration harmonieuse de ses activités. L’Association minière du Québec soutient constamment ses membres, tant en matière d’environnement et de développement durable, que pour toutes réglementations qui encadrent le secteur minier. ICM December 2009 / January 2010 | 53

A gilded recovery Translated from the original in French by André Lavoie, Director, Communications and Public Affairs, Quebec Mining Association (QMA)

Photo courtesy of Xstrata Nickel

In August 2009, Agnico-Eagle inaugurated its new Lapa Mine in Abitibi, after having opened its Goldex Mine the year before. The Osisko Mining Corporation started construction (at a cost of approximately $1 billion) at its Canadian Malartic complex, which is slated to become Quebec’s largest gold mine, with annual production of more than 500,000 ounces of gold. Investing over $400 million, IAMGOLD commenced shaft sinking at its Westwood project. Many other gold projects have reached advanced stages of development. The LaRonde Mine (AgnicoEagle) has been deepened to more than three kilometres. Production at the Lake Pelletier project (Alexis Minerals) is scheduled to begin in 2010 and the Francoeur Mine (Richmont Mines) has been revitalized. Other notable projects include Joana Meeting the demand for human resources is a fundamental challenge for the mining sector. (Aurizon), Metanor Resources’ project at Desmaraisville (northern Quebec) fter being caught up in the economic crisis that cur- and the Opinaca Mine at James Bay. tailed its activities and limited its exploration and In other sectors too, major projects continue to move investment spending, the mining industry has forward. These include the Lake Bloom iron project near watched metal prices and producers’ stocks gain ground in Fermont (Consolidated Thompson), New Millennium’s 2009. In addition to continued strength in the gold sector, direct shipping ore (DSO) project and Stornowayexperts are predicting rising global demand for base and SOQUEM’s Renard diamond project at James Bay. ferrous metals in 2010. All this mining activity generates numerous spinoffs. Mining is an important lever of economic development This year, Abitibi enjoyed the lowest unemployment rates in in Quebec. It accounts for shipments worth nearly $5 bil- Quebec. The Corporation de développement industriel et lion and over 50,000 jobs in some 30 municipalities, commercial de la région de Val-d’Or opened the Northern including approximately 15,000 jobs directly linked to Mining Transit Centre, a building that will serve as a hub for extraction operations. the air transport of goods and personnel to northern projIn urban areas too, the mining industry generates con- ects. Rouyn-Noranda intends to double the space dedisiderable activity in research and development, education cated to Xstrata Nickel at its airport, while the Sept-Îles and training, consulting and financial services, as well as port, expecting to triple its annual iron shipping volume, is for suppliers and processors. considering increasing its handling capacity.

A cluster of projects under development

Major challenges for Quebec’s mining industry in 2010

The strength of the gold sector, evident from the recent historic peaks in gold prices, is leading Quebec’s resources sector recovery.

are generating considerable demand for manpower. However, the current situation is one of contrasts — some

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

Human resources: New operations and ongoing retirements

sectors, professions, regions and qualification levels are experiencing labour shortages, while others are plagued by surpluses.

Maintaining health and safety objectives: Accident prevention and occupational health remain fundamental concerns. Quebec stands out on the international scene with its eighth consecutive year of improvement in accident prevention. In 20 years, the frequency of accidents in all mines has fallen by 75 per cent, which is the Quebec mining industry’s best-ever performance.

The social acceptance of mining projects: In 2009, issues con-

coverage of mining site remediation costs to 100 per cent, as well as the proposals to expand the scope and change the timelines of guarantees. The QMA is also calling for a tightening of regulations in the event of changes of ownership of properties.

Quebec’s mineral strategy and the revision of its mining act: In June, the Quebec government unveiled the guiding principles of its mineral strategy, implementing many of the Auditor General’s recommendations. These principles are evidence of the government’s intention to support the competitive development of Quebec’s mining industry while addressing the concerns expressed by the industry, by communities and by environmental pressure groups. The government also announced that a bill would soon be introduced to amend the mining act. Consultations are being held now. According to Sylvain Simard, Minister for Natural Resources and Wildlife, all future mining projects in Quebec will be subject to public consultations. Another bill concerning the revision of the tax system will be introduced later in 2010. In the years ahead, the actions it takes will bear witness to Quebec mining companies’ concerns about and commitment to promoting community involvement. Its proactive approach will reveal the extent to which the industry cares about the harmonious integration of its activities. The QMA will continue to support its members on environmental, sustainability-related and regulatory issues. CIM

cerning the social acceptance of mining projects arose. During the mandatory public environmental hearings on the Osisko project, some groups questioned the development of open pit mines, deeming them incompatible with sustainable development. Around 100 briefs — 78 in favour of the project and 22 against — were filed. The Quebec Mining Association (QMA) emphasized the disciplined and integrated environmental management work carried out by Osisko, and its remarkable efforts to communicate with the community. Some organizations are opposed to any exploration for uranium in Quebec, particularly on the North Shore. A regional forum on uranium organized by the Conférence régionale des élus de la Côte-Nord (the regional conference of North Shore elected representatives) at Sept-Îles gave the public an opportunity to analyze the repercussions and the impacts of exploration and development of uranium projects. Finally, some politicians feel that Canada should stop exporting chrysotile asbestos, believing that it represents a health threat. The QMA is AMEC has developed some of the most concerned about all these issues and will continue to monitor them. challenging mining projects in the world.

Government policies:

In his 2008-2009 report, Quebec’s Auditor General censures the Ministère des Ressources naturelles et de la Faune (the Department of Natural Resources and Wildlife) and, indirectly, the mining industry. The report’s recommendations cover five aspects — mining taxes, financial guarantees for site remediation, the monitoring role of the Ministère and its obligations with respect to the acquisition, regulation and distribution of information about the mining sector, and the development of a mineral strategy. For many years, the QMA has been trying to influence the Ministère’s policies of budget and staff cuts and the tightening of regulatory supervision of remediation. More specifically, the QMA supports the increase in the

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December 2009 / January 2010 | 55

An upswing in Ontario Photo courtesy of Apollo Gold Corporation

By Brock Greenwell, Ministry of Northern Development, Mines and Forestry

Non-metallic mineral production values climbed from $2.6 to $3 billion in 2008 with the inclusion of value of diamonds from the Victor Mine. With most of the nonmetallic minerals being used in the depressed construction industry, their production values will remain flat. Since late 2008, mining and exploration employment have also dropped, along with base metals demand, due to a slowing economy. This has had a negative impact on equipment and service suppliers and some mining communities. To avoid producing below cost, some base metal producers suspended mining operations and reduced workforces. However, gold producers have increased employment by over 15 per cent and have a good outlook over the next two years. The upcoming year looks more positive. Metals demand should increase with the economic recovery and there is a renewed Mining activity gets underway as production commences at Apollo Gold’s Black Fox optimism in the mining community. During open pit gold mine near Matheson, Ontario. the last boom, there was a skills shortage and enrolment in geology and miningver the last century, Ontario’s metal production has related educational programs increased as students totalled over $360 billion. All of the provinces 28 sought to meet demand. The labour market should theremetal mines are located in the North. Ontario’s Far fore have a supply of educated and skilled workers eager North also boasts a world-class diamond mine, while to participate in the recovery. southern Ontario is home to 13 major industrial operations. Ontario is among the world’s top ten jurisdictions for The province is a world-ranked producer of nickel and plat- exploration spending. This is attributable to its high-quality inum group metals (PGM). infrastructure, diverse and unexplored geology, accessible In 2008, the total value of provincial mineral production and reliable geoscience information, stable regulatory enviwas $9.6 billion, down from the 2007 record of $10.8 bil- ronment and favourable taxation policies, including a perlion. The decline is largely attributable to a decrease in the manent flow-through share program for exploration. value of metallic minerals production from $8.3 billion in There were around 340,000 active claim units in 2007 to $6.6 billion in 2008. Ontario in 2009, down from last year’s record of 367,000, Base metal production values are expected to decline but well above historical levels. Base metals and chromite further in 2009 due to lower metal prices and the suspen- discoveries in the McFaulds Lake area led to Ontario’s sion of operations at 14 different mines during the year. largest claim-staking rush ever. A followup of extensive With production falling below half of its 2008 level, the exploration work is expected over the next few years. 2009 value of nickel production will likely miss the Exploration spending in Ontario exceeded expectations in $1 billion mark for the first time in over a decade. PGM and 2008 and 2009. Final figures reached $799 million in 2008, copper production will also fall significantly due to the sus- up from the originally estimated $667 million. Revised 2009 pension of various mining operations. The decline in nickel figures have increased from $422 million to $576 million. will be partially offset by the increased value of gold pro- Junior companies’ share of this spending continues to rise — duction in 2009 as gold prices remain high and new it climbed from 45 per cent of the total in 2007 to 66 per production is added. cent in 2009. The differing fortunes of gold and base

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

metals prices are reflected in exploration targets. Exploration spending on precious metals climbed from 59 to 69 per cent of the total in 2009, while expenditure on base metals exploration declined from 32 to 22 per cent. Gold remains the primary focus of exploration because of Ontario’s rich history of gold mining, prospective geology, buoyant gold prices and a stream of new discoveries. The McFaulds Lake area remains Ontario’s most exciting exploration play. In 2002, De Beers discovered a base metal deposit (volcanogenic massive sulphide mineralization) while seeking diamonds on claims belonging to Spider Resources and KWG Resources. Local drilling led to numerous discoveries, including base metals and chromite. The region’s key players are Noront Resources, Freewest Resources, KWG Resources, Spider Resources and Probe Mines. In April 2009, Freewest estimated their chromite resource at 74 million tonnes (40 per cent Cr2O3 at $300 per tonne). Despite its size being unestimated, the base metal deposit shows great potential and new drilling continues to expand the resource. Noront’s recent drilling results indicate a distinct new gold zone on their McFaulds Lake property. Some of the area’s companies are starting to look at mine logistics. KWG has engaged a firm to provide engineering services for the construction of a rail line to the McFaulds Lake area. Noront has retained SNC-Lavalin to complete an infrastructure and transportation study.

Mine development During 2009 and into 2010, mine development work is expected to be focused largely on gold. About 75 kilometres east of Timmins, Apollo Gold brought its Black Fox gold project into production in June 2009. The 170employee mine has probable reserves of 1.33 million ounces of gold. Kirkland Lake Gold reported substantially increased reserves at the recently discovered South Mine Complex Zone adjacent to its Macassa gold mine. The company will continue drilling and underground development to define the resource. The strong gold price outlook should help propel the more advanced projects forward. Xstrata Nickel closed its three operating Sudbury area mines during 2009. However, mine development continues on the $1 billion Nickel Rim South project, which should reach full production (18,000 tonnes of nickel from 1.25 million tonnes of ore annually) in 2010. Vale Inco closed the Copper Cliff South mine in early 2009 and suspended other Sudbury-based operations in June due to low base metal prices and a labour dispute. The company is still exploring in the area and construction work is underway at its Totten project. Fortunately, the improving near-term base metal price outlook should help reopen some of Ontario’s base metal mines.

Exploration and development Ontario’s gold sector is seeing extensive exploration and development. Production is increasing in traditional areas such as the Abitibi greenstone belt. Lakeshore Gold’s updated prefeasibility report at the Timmins Mine gold project, about 20 kilometres southwest of Timmins, indicates reserves of 812,000 ounces of gold. Commercial production is targeted for the end of 2010. Detour Gold continues advancing the Detour Lake gold project, 200 kilometres northeast of Timmins. The project boasts Canada’s largest gold reserves. The 8.81 million ounces of open pit gold reserves are low grade, but the company is actively looking to improve project economics. Also in the Abitibi greenstone belt, southwest of Kirkland Lake, is Northgate Minerals’ Young Davidson gold property. Here, recent drilling intersected 2.92 g/t Au over 10.5 metres. Proven and probable reserves of 2.8 million ounces of gold should provide a 15-year mine life with average annual production of 170,000 ounces. Northgate hopes to start construction in 2010 and achieve full production in 2012. December 2009 / January 2010 | 57

Rainy River Resources recently released drilling results near Fort Frances in northwestern Ontario, which included 15.6 metres of 6.46 g/t Au intersected in the ODM17 Zone. Infill-drilling confirmed the grades and widths projected from the model, prompting the addition of a fifth drill rig and moves towards preparing a scoping and feasibility study. Goldcorp continues to develop the Red Lake gold property, which includes the integrated Red Lake and Campbell mines. The Bruce Channel gold discovery that it acquired last year is being evaluated to determine the best development method. Goldcorp is also very active on other local projects such as the Cochenour Willans Mine. Red Lake area exploration also includes Rubicon Mineralsâ&#x20AC;&#x2122; five drills operating on the Phoenix gold project as part of an 80,000-metre drill program to expand the F2 gold system over a 1,000-metre strike length, to a depth of 1,500 metres. In the Beardmore-Geraldton area, Kodiak Exploration is exploring the Hercules Gold property, where high-grade gold has been found in multiple quartz-carbonate veins cutting through the 31-square-kilometre Elmhurst Lake intrusion. The principal target is the Golden Mile with its five-kilometre trend of gold-mineralized quartz veins. Gold mineralization was traced along strike for 400 metres with an average grade of 20.2 g/t Au over an average width of 3.8 metres. As reported in the November 2009 issue of CIM Magazine, the modernization of Ontarioâ&#x20AC;&#x2122;s mining act will

strengthen the mining industry by establishing a framework for improved social responsibility. The focus will be on a graduated regulatory approach for exploration; Aboriginal consultation throughout the mining sequence; exploration impact reduction; introducing map staking and modernizing the way companies stake and explore claims and consult private land owners and Aboriginal communities. These initiatives will help further Aboriginal communitiesâ&#x20AC;&#x2122; economic and social aspirations and provide the certainty of rules and the process timelines that industry needs to make investment decisions. With Royal Assent being received, the next step is regulations development. Although many mining and exploration economic indicators are negative, Ontario is weathering the storm. New discoveries are driving new investment, and our base metal producers are poised to meet increased demand as the global recovery commences. CIM Under the aegis of the Ministry of Northern Development, Mines and Forestry, the Ontario Geological Survey provides extensive information on Ontarioâ&#x20AC;&#x2122;s geology and its world-class mineral resources. Geological data are available at GeologyOntario (www.mndm.gov.on.ca/mines/ geologyontario/default_e.asp), a comprehensive website offering access to geoscientific data including maps, publications and assessment reports.

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Prospecting on the Prairies Photo courtesy of Rockcliff Resources Inc.

By Dave Prouse, resident geologist (Flin Flon), Manitoba Geological Survey, Manitoba Science, Technology, Energy and Mines

Manitoba’s mineral industry makes a significant contribution to the provincial economy. In 2008, the value of mineral production totalled $2.5 billion for metallic and industrial minerals and petroleum. The industry accounted for approximately six per cent of provincial GDP and 10 per cent of exports. The industry invested $575.5 million in capital expenditures in 2008 and employed an annual average of 5,200 workers. Manitoba’s newest mine, Crowflight Minerals’ Bucko Lake nickel project at Wabowden, has bolstered northern development by providing jobs for about 120 people, including local residents who received mill processing and underground mine training. All 20 graduates from the two courses were employed by Crowflight Minerals and its contract mining company.

Base metals HudBay Minerals continued to receive positive drilling results at its Lalor deposit near Snow Lake. With encouraging results, the drilling budget for 2009 was nearly doubled in the second quarter to $13.0 million. In January, HudBay announced the discovery at Lalor of a new and separate (from the solid sulphide lenses) gold zone, which returned significant results, Conducting a bore hole pulse EM survey at Rockcliff Resources’ Rail property near Snow Lake including 36.85 metres of 13.83 g/t gold and 134.9 g/t silver. In ike most sectors of the global economy, Manitoba’s September, the company encountered what is believed to mining industry fell victim to the economic downturn be another new zone of copper-gold-rich mineralization, of the later half of 2008. After unprecedented expen- where drilling intersected 13.35 g/t gold and 5.33% copditures of $141.5 million (preliminary estimates) on explo- per over a 34.54-metre interval that is lower in the stratigration and deposit appraisals in 2008, expenditures for raphy than previously announced zones. This discovery sig2009 are predicted to drop by nearly 50 per cent to nificantly enhances Lalor’s economic potential. approximately $77.4 million. The plunge in base-metal A NI 43-101 report from September 2008 concluded prices and demand, and a prolonged stock market slump Lalor has indicated resources of 3.4 million tonnes of made it very difficult for junior explorers to raise working 8.82% zinc and 0.71% copper. The 2007 Lalor discovery capital. As a result, many juniors deferred work commit- received the 2009 Prospectors and Developers ments and braced themselves for the downturn, hoping to Association of Canada Bill Dennis Award for the most significant Canadian mineral discovery. HudBay also hang onto their properties until conditions improved.

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

continued drilling in the vicinity of present and pastproducing mines in the Flin Flon and Snow Lake area. Rockcliff Resources conducted a 13-hole drill program at the Reed Lake, Eel and Jackfish properties southwest of Snow Lake. Drilling at Jackfish intersected significant copper-nickel values including 1.83% nickel and 0.23% copper across 0.93 metres. Summer work consisted of ground proofing of untested versatile time-domain electromagnetic (VTEM) anomalies and geological mapping at volcanogenic massive-sulphide deposits at the Lon, Rail and Reed Lake properties. A four-hole drill program conducted by VMS Ventures at its Puella Bay property southeast of Snow Lake helped identify a large alteration zone that the company believes may host mineralization. A ground geophysical survey was later conducted to hopefully define deep-seated conductors at its margins. Geological mapping and sampling programs were undertaken at the Puella Bay, Sails Lake and Morton Lake properties in the Snow Lake area. Crowflight Minerals commenced production at the Bucko Lake Mine near Wabowden in the fourth quarter of 2008. The first nickel concentrate was shipped to the refinery in February 2009. The company has been dealing with various mining and milling issues to bring the operation to full-scale production at 1,000 tonnes per day (tpd). Positive results from surface and underground

drilling programs have increased proven and probable reserves to 3.71 million tonnes of 1.45% nickel, a 22 per cent increase in contained nickel from the 2007 feasibility study report. The company announced in July 2009 that a new high-grade zone had been discovered that is accessible from the 152-metre mining level. Drilling from the access ramp returned encouraging results including 8.2 metres of 5.24% nickel and 12 metres of 3.56% nickel. Crowflight also has at least four other satellite nickel deposits in the Wabowden area within trucking distance of the mill. International Samuel Exploration Corp. and Canasia Industries completed an eight-hole drill program at their Reed Lake property. Drilling identified a stockwork feeder system containing sulphides and magnetite, but no economic grades were retuned in assays. A second phase of exploration is planned. Marathon PGM Corporation conducted winter drilling at the Ore Fault and Page zones on their Bird River property in southeastern Manitoba. The company was testing new geophysical targets adjacent to resources already defined by Marathon. The drill program, designed to increase current resources, returned encouraging results including 2.8 metres of 2.66% nickel, 2.10% copper, 15.85 g/t silver and 2.03 g/t platinum group metals (PGM) plus gold at Page. At Ore Fault, a sulphide intersection assayed 2.23%

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zinc, 0.74% copper and 50.47 g/t silver. The Bird River project is a joint venture with Gossan Resources. Mustang Minerals conducted drilling at its Maskwa nickel deposit to increase the existing resource and to identify new nickel-copper-PGM resources. Drilling returned a 42.5-metre section grading 0.32% nickel and 0.05% copper. Work on the ongoing feasibility study continued with resampling and relogging of historical drill holes to update the resource model as well as metallurgical testing.

Precious metals Aggressive exploration by San Gold Corp. at and around the Rice Lake Mine continued to return impressive results. In early 2008, San Gold announced the discovery of the high-grade Hinge Zone lenses. Since then, drilling has encountered a 2.3-metre intersection of 207 g/t gold announced in April 2009. A decline from surface accessed the Hinge Zone lenses in April. A bulk sample of approximately 10,600 tonnes with a stope mining grade of 21.7 g/t was extracted and processed, with total operating costs coming in at US$158 per ounce of gold. The Hinge Mine has the potential to contribute significantly to San Gold’s Rice Lake operation. At the Rice Lake Mine, recent results from ongoing definition and exploration drilling at depth are also yielding some high-grade gold numbers from a new extension of the “98” vein and new discoveries above the 26th level. For

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

example, hole 28-09-15 from an extension of the “98” vein intersected 5.9 metres of 43.8 g/t gold, including a onemetre section of 129.8 g/t gold. A preliminary economic assessment of Rolling Rock Resources’ Monument Bay gold project in northeastern Manitoba concluded that a 1,000 tpd underground mine would cost $140 million and have an estimated 11-year mine life. Using a 5.00 g/t cutoff, the inferred resource currently stands at 2.3 million tonnes grading 9.85 g/t. The viability of the project depends on the long-term gold price. Using a US$750 per ounce gold price, the project would have an internal rate of return of 8.14% and an undiscounted net present value of $45 million. Wildcat Exploration conducted a mapping and sampling program at its Jeep property east of Bissett. The work resulted in the discovery of three new high-grade gold occurrences, one of which returned an assay of 35.39 g/t gold. In late July, the company commenced a program of overburden stripping to further evaluate the new occurrences. Garson Gold released results from the preliminary assessment on the No. 3 Zone at the company’s New Britannia property in Snow Lake. The study assessed the economics of mining the zone and reactivating the 2,150 tpd New Britannia mill. This was based on mining and processing of approximately 149,000 ounces of gold from 753,000 tonnes grading 6.14 g/t gold. The study concluded project preproduction capital expenditures of CDN$22.33 million and an average operating cost of US$362.38 per ounce of gold. At a mining rate of approximately 900 tpd, the mine would have a three-year operating life at present reserve levels. However, the No. 3 Zone is open for expansion at depth. Copper Reef Mining Corp. conducted drilling at the Gold Rock property west of Snow Lake. The Gold Rock Zone lies on strike on the same shear zone hosting the North Star gold deposit. Drilling from Gold Rock has been returning some high-grade values including 3.2 metres of 104.4 g/t and 1.6 metres of 81.73 g/t gold. Recent drill results have extended the strike length of the Gold Rock vein to 345 metres. Callinan Mines intersected a narrow, gold-bearing quartz zone at their Berry Creek property located south of Snow Lake. The three-hole drill program returned a 0.47-metre intersection of 15.40 g/t gold over a larger width of 6.49 metres of 1.26 g/t. Callinan was planning to follow up this success with a mobile metal ion sampling survey and trenching program. CIM

A world leader weathers a storm Photo courtesy of Mosaic Co.

By the staff of the Saskatchewan Ministry of Energy and Resources

An underground view of Mosaic’s Esterhazy potash mine

askatchewan is the world’s leading producer of potash and uranium, accounting for about one-third of the global production of potash and just over a fifth of primary world uranium production in 2008. In 2009, mineral exploration spending in Saskatchewan will be an estimated $293 million, a decrease from the alltime record level of $474 million achieved in 2008. As of August 31, 2009, about 7.42 million hectares of active mineral dispositions were issued. There were also 192 active potash dispositions, totalling about 4.84 million hectares, and 6,440 active coal dispositions, totalling about 4.06 million hectares. Gold, coal, silica sand, kaolin, sodium sulphate, potassium sulphate and sodium chloride were also mined, pushing 2008 mineral sales up to $9.7 billion, placing Saskatchewan first among Canada’s provinces.

Uranium Expenditures on uranium exploration, which is focused within and adjacent to the Athabasca Basin of northern Saskatchewan, are forecast to be about $124 million this year. The Athabasca Basin, which contains the largest, high-grade uranium deposits in the world, is being explored by some two dozen companies, acting either independently or in joint venture programs.

Of the three uranium deposits currently slated for development, the Cigar Lake and Midwest deposits are the most advanced. Cigar Lake, owned by joint venture partners Cameco, AREVA, Idemitsu Uranium Exploration Canada and TEPCO Resources, contains reserves of 226.3 million pounds of U3O8 at an average ore grade of 20.67% U3O8. Construction at Cigar Lake, which began in January 2005, was hampered by water inflow incidents in 2006 and 2008. Production, which is likely to miss the 2011 target date, will ramp up to 18 million pounds of U3O8 per year within three years of commencement. AREVA and its partners have decided to delay development at the Midwest project until market conditions improve. Meanwhile, the environmental assessment process and engineering planning are underway. Once production commences, ore will be mined and milled at the nearby McClean Lake mill. Mining of the Caribou deposits on the McClean Lake lease has been delayed after a review of the project’s economics at current uranium prices. Permitting for the project is continuing and AREVA is also continuing to develop bore mining technology for use at McClean Lake. Among the other noteworthy ore bodies is the Millennium deposit which is the subject of a feasibility study for underground mining that is scheduled to be December 2009 / January 2010 | 63

completed in 2009. Also of note is the UEX-owned Hidden Bay project, which includes the Horseshoe, West Bear and Raven deposits. The projectâ&#x20AC;&#x2122;s NI 43-101-compliant resource estimates were recently expanded by UEX.

Gold In 2009, gold exploration expenditures are estimated to total $2.6 million, compared to actual expenditures of $8.9 million in 2008. The majority of recent gold exploration activity has occurred in the La Ronge and Glennie domains. Claude Resources has maintained a significant gold exploration and production program, Glennie Domain, particularly in the vicinity of its actively producing Seabee Mine, which produced 45,466 ounces of gold in 2008. In the first two quarters of 2009, the mine yielded 18,348 ounces, compared to the 19,954 ounces produced by the second quarter of 2008. Claude Resources ascribed this fall to disruptions caused by planned maintenance work. The company expects to produce up to 48,000 ounces in 2009. In August 2009, GLR Resources sold its Goldfield assets to a wholly owned subsidiary of Linear Gold Corporation. Linear Gold, upon taking over the project, is updating the engineering documents prior to project development and operation. Golden Band Resources continues to advance its LaRonge gold project. The 750-square kilometre

exploration area contains several known deposits, including four former producing mines, numerous known prospects and the Jolu central mill, which is currently being refurbished. Golden Band has also received approval for the LaRonge gold project from Saskatchewanâ&#x20AC;&#x2122;s environment ministry and has signed a surface lease agreement with the Government of Saskatchewan.

Base metals Saskatchewan saw no base metal production in 2008. Province-wide spending on base metals exploration is expected to reach $1.69 million this year. In 2008, Strongbow Exploration discovered a new volcanogenic massive sulphide deposit, the Zang Zone, at the McKenzie Lake project. The deposit lies in the subPhanerozoic extension of the Flin Flon Domain. Strongbow Exploration is currently exploring for magmatic nickel sulphide deposits along a 240-kilometre strike length of the Southern Snowbird Tectonic Zone. During the 2009 summer field program, the company discovered a number of new nickel-copper sulphide showings in the Snowbird project area. Samples are currently being assayed to help in the selection of high-priority targets for a ground geophysical survey and drill testing in 2010. Advanced exploration projects include: the McIlvenna Bay (Foran Mining and Copper Reef mines) and Fon deposits (Murgor Resources) in the western Flin Flon Domain; and the polymetallic Brabant Lake deposit (Manicouagan Minerals) in the Kisseynew Domain.

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Diamonds In 2009, diamond exploration spending is forecast to be about $13.8 million, down from actual expenditures of $73.2 million in 2008. Most of this yearâ&#x20AC;&#x2122;s spending is targeted at two advanced exploration projects underway in the Fort Ă la Corne forest, 60 kilometres east of Prince Albert. A pre-feasibility report recommended that Shore Gold advance its Star Kimberlite to the feasibility stage. Shore is also involved, along with Newmont Mining, in the Fort Ă la Corne Joint Venture. The ventureâ&#x20AC;&#x2122;s mineral disposition holdings include 63 drillconfirmed kimberlite bodies, some of which are volumetrically among the largest in the world. During the second quarter of 2009, Shore announced diamond results from large-diameter drilling on the Orion South, Orion North and Taurus kimberlite clusters. Currently, a resource estimate calculation is underway for the Orion South portion of the Orion kimberlite cluster.

Industrial minerals Expenditure on industrial mineral exploration is expected to exceed $150 million in 2009. While most of this expenditure will be focused on potash and coal, there will also be some exploration for silica sand, kaolin and rare earth elements.

Potash: Since the early 1970s, Saskatchewan’s potash mining industry remains relatively unchanged, with eight conventional and two solution mines operated by the Potash Corporation of Saskatchewan, the Mosaic Company, and Agrium Inc. In 2008, the $7.3 billion of potash sales from Saskatchewan’s ten mines accounted for a third of global production and represented about 75 per cent of the province’s total mineral sales. Potash exploration remains strong, with several companies undertaking new seismic surveys and drilling programs, while others continue to work on more advanced-stage projects. Athabasca Potash released a new NI 43-101-compliant mineral resource estimate for its Burr project that outlined indicated resources of 241.2 million tonnes of 23.3% K2O, and inferred resources of 183.1 million tonnes with a grade of 23.2% K2O. The company has identified a preferred shaft and mine site location and is currently seeking investment or partnership opportunities. An updated NI 43-101 technical report outlined measured resources of 29 million tonnes grading at 25.8% KCl and indicated resources of 222 million tonnes grading at 26.3% KCl, at Potash One’s Legacy solution mining project. The company is now moving the project into the feasibility stage. Completing four initial exploration wells at its Milestone property, approximately 30 kilometres southeast of Regina, Western Potash confirmed the presence of all three potash members in each of the wells. The company also has budgeted an extra $8.5 million for further exploration. On the production front, current potash producers Agrium and PotashCorp are investigating the feasibility of developing new potash mines, while Vale intends to continue work on a solution mining project, 20 kilometres southeast of Regina. Vale has acquired all of the potash exploration permits held by the Rio Tinto subsidiary, Kennecott Canada Exploration. In August 2009, the province’s three major potash producers released quarterly results indicating that production volumes and revenues were down significantly due to a drop in product demand and protracted negotiations with key offshore buyers. Despite the effect of this drop on 2009 production estimates, all three producers are optimistic about the future and plan to invest approximately $9.6 billion in capacity expansion.

Meta-kaolin:

Whitemud Resources re-opened its metakaolin plant in the spring of 2009. Upgrades made to the plant during the scheduled winter shutdown are expected to significantly enhance its productivity and reliability. The company continues to make inroads into the recession-hit cement industry. Its meta-kaolin is being used in the construction of notable large-scale institutional projects, such as the Taylor Family Digital Library and the Energy Environment Experiential Learning building at the University of Calgary.

Other industrial minerals: Great Western Minerals Group has signed a non-binding letter of intent with Toyota Tsusho, whereby the companies will examine the merits of jointly exploring and developing the former’s Douglas River and Benjamin River projects. The projects are of particular interest to Toyota Tsusho because their mineralization appears to be significantly enriched in the high-value, heavy rare earth elements. These elements are critical to the manufacture of high-temperature magnets used in hybrid vehicles. Great Western is also optimistic about the rare earth elements potential of its Hoidas Lake property that has NI 43-101 measured resources of 123,000 tonnes grading at 2.466 wt% TREE (weight per cent total rare earth elements), and indicated resources of 430,000 tonnes grading 2.305 wt% TREE. In 2008, Goldsource Mines discovered coal while drilling for kimberlite on its Border property claim block in east-central Saskatchewan. The company has since drilled 115 holes and delineated 15 discrete coal deposits, some up to 100 metres thick, in six sub-basins. Analytical tests are underway to determine the coal’s thermal value, sulphur content, and other properties. Initial results indicate the coal is typically sub-bituminous. CIM

December 2009 / January 2010 | 65

Beyond the oil sands By D. Roy Eccles, geologist, ERCB/Alberta Geological Survey

Photo courtesy of the Alberta Geological Survey

Creek Quarry, which is located north of Fort McMurray. The high-quality limestone will be used for construction, industrial and environmental applications, including the removal of sulphur dioxide from flu-gas streams associated with oil sands operations. Athabasca Minerals Inc.’s Susan Lake aggregate operation, which is located 85 kilometres north of Fort McMurray, supplied approximately 11.8 million tonnes of aggregate for the year ending November 30, 2008 and was ranked number one by the Aggregates & Roadbuilding magazine in its annual ranking of sand and gravel suppliers (June, 2009). Athabasca Minerals Inc. holds more than 800,000 hectares of land to the south, northwest and east of Fort McMurray. In addition to aggregates, Athabasca Minerals Inc. and Parallax Resources Ltd. are evaluating this ground for salt within the Devonian Prairie BE-02 kimberlite; northern Alberta’s newest diamondiferous kimberlite discovery Evaporite Formation, industrial grade silica sand within the hile Alberta deserves all the renown it enjoys as Cretaceous Pelican Formation and potential diamondiferthe oil sands capital of the world, there is more to ous kimberlite intrusions. the province’s resources industry than heavy oil. Mineral exploration in Alberta is as diversified as it is exten- Diamonds sive. To the end of August 2009, 11.2 million hectares The Buffalo Head Hills kimberlite field, which is located were staked for industrial and metallic minerals exploration about 380 kilometres north of Edmonton, is the thirdin Alberta. Approximately 2.1 million hectares of new stak- largest known district of significant diamond-bearing kiming occurred over the last year. Exploration expenditures berlites in Canada after Lac De Gras in the Northwest were largely focused on industrial minerals and diamonds, Territories and Fort à la Corne in Saskatchewan. New with continued and/or new exploration interest in mag- 2008 kimberlite discoveries bring the total number of netite, iron, uranium, potash and lithium. known occurrences in the Buffalo Head Hills field to 41, 28 of which are diamondiferous. Industrial minerals During 2008, two separate Grizzly Diamonds Ltd. drill During 2008, Parsons Creek Resources and Graymont programs completed 12 drill holes totalling 2,270 metres Western Canada Inc. commenced an Alberta Environmental in the northwestern part of the Buffalo Head Hills kimberImpact Assessment to produce limestone at the Parsons lite field. The drilling discovered three new kimberlite

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

bodies (BE-01, BE-02 and BE-03). Positive diamond recovery results from the 2008 winter drill program yielded 54 diamonds greater than 0.075 millimetres and 26 diamonds greater than 0.106 millimetres from a 56.6kilogram sample of BE-02. This finding encouraged a larger campaign by Grizzly Diamonds, and a fall 2008 drill program collected an additional 563 kilograms of kimberlite material from BE-02 and 365 kilograms from a third kimberlite discovery, BE-03, which yielded 316 diamonds (five diamonds exceeding 0.5 millimetres in one dimension) and 218 diamonds (five diamonds exceeding 0.5 millimetres), respectively. During 2008, Diamondex Resources Ltd. and Shore Gold Inc. drill tested the K14, K252 and K6 kimberlite bodies with 41 drill holes totalling 6,818 metres to allow for the identification of different kimberlite phases and micro diamond content. Six distinctive eruptive phases were identified within the K14 complex. In addition to this drill program, an aggregate sample of 369 tonnes of kimberlite was recovered from surface trenches at K14 and K6. One hundred and thirty-nine stones were recovered from three separate trench samples from K14 yielding estimated diamond grades of between 7.4 and 8.8 carats per hundred tonnes (cpht). A single trench at K6 returned 85 diamonds and an estimated diamond grade of 7.0 cpht. The largest was a 1.07 carat stone recovered from K6. The results of the bulk sample program need to be viewed

in context of new geological modelling because the trench samples represent the near-surface phase of a complex multi-phased kimberlite. To the west of the Buffalo Head Hills kimberlite field, United Uranium Corp. and Star Uranium Corp. completed a six-hole drill program. While none of the drillholes penetrated kimberlite, till and shale core samples yielded high numbers of kimberlitic-indicator minerals (over 100 grains of pyrope, olivine and chromite). In addition, caustic fusion analyses of a basal till unit resulted in the recovery of one diamond within the 0.15-0.212 sieve.

Magnetite In southwestern Alberta, Micrex Development Corp. continues to move towards mine permitting for the Burmis magnetite deposit. At full production, Micrex hopes to mine between 20,000 and 40,000 tonnes of finished magnetite product per year. The mine life is anticipated to be between 10 to 12 years. Following public consultation, Micrex has revised their proposed production system to use no water, process 100 per cent of the raw ore, eliminate tailings issues and extend the life of the proposed mine.

Ferrous minerals During, 2008 Ironstone Resources Ltd. drilled and recovered 385 metres of unoxidized iron ore from 47 out of 51 drillholes that tested the Clear Hills ooidal ironstone

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deposits in northwestern Alberta. Ironstone is currently conducting research to determine the most efficient procedures for beneficiating the Clear Hills ore.

Uranium During 2008, Fission Energy Corp. and Tribune Uranium Corp. completed a high-resolution magnetic and electromagnetic (VTEM) survey and drilled seven drillholes totalling 1,260 metres that outlined a northeast-trending hydrothermal system on their property located on the northwest margin of the Athabasca Basin. In August 2008, Tribune terminated its option agreement and Fission Energy Corp. consolidated its North Shore and South Shore Properties into one land package, which will now be known as the North Shore Property. Also on the west side of the Athabasca basin, CanAlaska Uranium Ltd. have identified potential targets in the Lapworth and Fidler Points areas, which were examined by surface gravity, DC resistivity/induced polarization, audiomagnetotelluric and six short multichannel seismic lines.

Potash Positive market outlooks for potash and lithium have caused minor staking rushes in Alberta. Several companies, including APEX Geoscience Ltd., Cloudbreak Resources Ltd., Dahrouge Geological Consulting, Grizzly

Diamonds Ltd., Landis Energy Corporation, Rich Resource Investments Ltd., Shear Minerals Ltd., Solitaire Minerals Corp., Utah Uranium Corp. and several numbered Alberta Ltd. companies have staked metallic and industrial mineral permits on the Alberta-Saskatchewan border south of latitude 55 degrees. The play has developed in large part because of the vast potash resources in the Prairie Evaporite Formation of neighbouring Saskatchewan. The same formation is present in much of eastern Alberta, but has yet to be evaluated for potash potential. Some historical drillholes such as Vermilion Consolidate Oils #15, which was spudded in 1944, have yielded potash minerals.

Lithium Several companies, including Dahrouge Geological Consulting Ltd., Habanero Resources Inc., Headwater Mineral Exploration and Development Ltd., Ivey Canadian Exploration Ltd., MGK Consulting Inc., Ultra Lithium Inc. and WestStar Resources Corp., have expressed interest in lithium from formation waters in the Swan Hills area of northwestern Alberta. The interest is due to mid-1990s government reports that have shown lithium concentrations in formation waters of up to 140 milligrams per litre. The lithium appears to be associated with carbonate buildups of the Leduc Formation in the Woodbend Group and the Swan Hills Formation of the Beaverhill Lake Group. CIM

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An eye on the horizon Photo courtesy of Bruce Northcote, Ministry of Energy, Mines and Petroleum Resources

By Dave Grieve, Bruce Madu, Bruce Northcote, Paul Wojdak, Jay Fredericks, and Dave Lefebure, BC Ministry of Energy, Mines and Petroleum Resources

Resources, where an impressive intersection of 0.70 g/t Au over 483 metres in a new zone underscores the bulk-tonnage potential. Bravo Venture Group Inc. conducted drilling on Homestake Ridge, where a 2008 intercept graded 21 g/t Au across an estimated true width of 52 metres. Three small gold mines are in development â&#x20AC;&#x201D; Yellow Jacket in the Atlin placer district, operated by Eagle Plains Resources and Prize Mining; the Cassiar gold project near Smithers, operated by Hawthorne Gold Corp; and Dome Mountain, which Eagle Peak Resources is planning to re-open.

Copper-gold-molybdenum: Thompson Creek Metals Company approved resumption of the $374 million expansion of the Endako molybdenum mine to increase daily capacity from 28,000 to 50,000 tonnes. At the Huckleberry copper mine, Imperial Metals announced Driving in casing at the Raven coal project of Compliance Energy Corporation on Vancouver Island a new plan to extend the operation to late 2011. xploration expenditure in the province of British Seabridge Gold continued resource expansion on the Columbia is anticipated to be less in 2009 than the enormous Mitchell gold-copper porphyry deposit on the $357 million spent in 2008, largely due to the con- KSM property. Imperial Metalsâ&#x20AC;&#x2122; two-drill program explored tinuing economic uncertainty and the attendant difficulty the deep core zone of the Red Chris copper-gold porphyry in raising capital. However, a number of mining projects deposit. The target of the 1,500-metre holes is to delineate continue to advance towards production. Currently, 22 a zone exceeding 1% Cu and 1 g/t Au below the open pit projects are in the Environmental Assessment (EA) resource. process, six are in mine permitting and another six are in Other significant porphyry drill programs include Big mine development. Bulk near Kitsault, which was optioned by Anglo-Gold Ashanti and the Kitsault molybdenum mine on the North Northwest region Coast that Avanti Mining plans to re-open.

Gold:

The exploration focus in the Northwest was on expanding new gold-(copper) resources at the Snowfield, KSM and Homestake Ridge projects in the Stewart area (the Golden Triangle) and at Red Chris near Iskut. Seven drills and an 80-member field team worked the Snowfield-Brucejack property of Silver Standard 70 | CIM Magazine | Vol. 4, No. 8

North-central region Gold: The Spanish Mountain property near Likely is a joint venture between Skygold Ventures and Wildrose Resources. Here, exploration started this year with the release of a new estimate that reported measured and

indicated resources in the Main Zone at 102 Mt grading 0.785 g/t Au at a 0.5 g/t cut-off. In the Wells-Barkerville area, International Wayside Gold Mines has reported a positive prefeasibility study at the Bonanza Ledge project. The company signed a Letter of Intent to purchase the assets of Cross Lake Minerals, including the QR Mine and mill.

Western Coal completed mining the Phase 1 and 2 areas and is currently mining the Phase 3 area at the Wolverine Mine. Western Coalâ&#x20AC;&#x2122;s Willow Creek project remains on care and maintenance. First Coal received approvals to extract a bulk sample of up to 50,000 tonnes of coal from its Central South property, a task begins in the fourth quarter of 2009.

Copper-gold-molybdenum: At its Gibraltar Mine, Taseko Mines Southeast region appears on track to meet its goal of producing over 36 million kilograms of copper and 360,000 kilograms of molybdenum this year. Imperial Metals actively explored its Mount Polley Mine lease northeast of Williams Lake. The highlight hole drilled this year, ND09-79, intersected 157 metres of 1.73% Cu, 1.11 g/t Au and 10.53 g/t Ag. The Woodjam Joint Venture between Fjordland Exploration and Cariboo Rose Resources has signed an agreement with a new joint venture partner, Goldfields Horsefly Exploration, to explore the Woodjam North property. Terrane Metals Corp. received the provincial EA Office Certificate in 2009 and the provincial Mines Act Permit for the Mount Milligan project. The project is in the final stages of obtaining EA approval from the federal government.

Northeast region Coal:

At the Trend Mine, operated by Peace River Coal (PRC), the 2008 production of 772,000 tonnes comprised 632,000 tonnes of metallurgical coal and 140,000 tonnes of thermal coal. Also in 2008, PRC initiated a $104 million program to acquire and operate its own mining equipment. On the adjacent Roman Mountain property, PRC continues development activity following the conclusion of a prefeasibility study last year.

Gold:

Eagle Plains Resources continues work on the Iron Range property, while further to the east, Max Resource planned activity on the Crowsnest and Howell gold properties in the Flathead drainage southeast of Fernie. Jaxon Minerals continued assessing the Nox Fort intrusion-related gold-bismuth-tellurium property. Valterra followed up encouraging 2008 drill results on the Star property with another drill program in 2009. Nearby, on the Kenville gold mine property, Anglo Swiss Resources continued underground rehabilitation, sampling and drilling.

Copper-gold-molybdenum:

Roca Minesâ&#x20AC;&#x2122; MAX underground molybdenum mine at Trout Lake, which achieved commercial production in June 2008, is permitted for 72,000 tonnes per year. In the Boundary District, Grizzly Diamonds expanded its considerable Greenwood gold project holdings and undertook exploration, including airborne geophysics and diamond drilling.

Polymetallic: Duncastle Gold continued drilling polymetallic veins (gold-silver-lead-zinc) on the Yankee-Dundee property near Ymir. On the past-producing Jersey-Emerald property, south of Salmo, Sultan Minerals continued to evaluate tungsten, zinc and molybdenum mineralization and released an updated tungsten resource estimate of

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Mining & Metals Energy & Chemicals Manufacturing & Life Sciences Rail, Infrastructure & Construction

December 2009 / January 2010 | 71

Photo courtesy of Jay Fredericks, BC Ministry of Energy, Mines and Petroleum Resources

above last yearâ&#x20AC;&#x2122;s level of 22 million tonnes. The record 2008 prices for metallurgical coal were followed by lower, but still very high, prices in 2009. Nonetheless, expenditures on coal exploration in the Elk Valley were considerably reduced in 2009. The Mt. Michael property, north of Line Creek Mine was the site of the most significant drilling program.

The SX-EW operation at the Gibralter mine continues to produce copper sheets onsite

South-central region Gold: Bralorne Gold Mines started a new adit to access the

2.719 million tonnes measured plus indicated resources at 0.358% WO3. Klondike Silver delineated a western extension to the Silvana lode structure on its Slocan Silver Camp holdings.

Coal: Southeast BCâ&#x20AC;&#x2122;s five large open pit metallurgical coal mines are situated in the Elk Valley and are operated by Teck Coal. Production from these is expected to be at or

zone at a higher level on the BK Zone at the historic Bralorne Mine. Skygold Ventures returned to Thunder Ridge on its Spanish Creek property where 2008 drilling encountered high-grade gold and silver intersections in an area reportedly never previously drilled. J-Pacific Goldâ&#x20AC;&#x2122;s updated resource estimate for the Elizabeth project pegged inferred resources at 522,900 tonnes grading 12.3 g/t Au at a five-gram cut-off.

Copper-gold-molybdenum: Teck Resourcesâ&#x20AC;&#x2122; Highland Valley is Canadaâ&#x20AC;&#x2122;s largest copper mine. In 2008, it produced 119,300 tonnes of copper in 2008 and 4.2 million pounds of molybdenum. Stress cracks in the Valley pit are forcing a reduction in mine output through the second half of the year and will have a sharp impact on 2010 production.

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

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At the New Afton project, over 2,600 meters of the total of 4,525 meters of conveyor access was completed by mid-year. Also in the Afton area, Abacus Mining and Exploration completed a Preliminary Economic Assessment of the Ajax copper-gold porphyry deposit. Copper Mountain Mining’s eponymous project is on track for a restart. Reported proven and probable reserves at Copper Mountain are 211 million tonnes of 0.36% Cu based on a 0.15% cut-off. After several dormant years, Barrick Gold undertook a substantial program at the Poison Mountain or Yalakom copper-porphyry deposit northwest of Lillooet.

Polymetallic:

Yellowhead Mining has advanced its Harper Creek project north of Barriere, to the EA process. The project has an indicated resource of 538.4 million tonnes of 0.32% Cu at a 0.2% cut-off. At its Ruddock Creek zinc-lead project, north of Revelstoke, Selkirk Metals completed a resource estimate for the E-Zone. The company has announced a merger with Imperial Metals and has introduced this project to the EA process.

Southwest region Gold:

At the Mineral Creek gold property, Bitterroot Resources installed new milling equipment within an

existing adit and continued drill testing the Linda and Ember veins. Module Resources rehabilitated the 800 and 900 levels of the former Carolin Mine.

Copper-gold-molybdenum:

Selkirk Metals released a NI 43101-compliant resource estimate for the Catface project on the west coast of Vancouver Island.

Polymetallic:

Averting the possible suspension announced in late 2008, Breakwater Resources continues operations at Myra Falls, but at a reduced level compared to previous years. A delineated discovery in the South Flank area that had entered production by mid-2009, will be a significant source of mill feed through 2010.

Coal:

In June 2009, Hillsborough Resources forecast production of 435,000 tonnes of saleable coal in 2009 at the Quinsam thermal coal mine near Campbell River. Hillsborough published a new resource estimate for the adjacent Quinsam North property whose development is on hold. At the Raven coal project in the Comox Valley, drilling was conducted to upgrade the existing resource in preparation for a feasibility study. The project is a joint venture between Compliance Energy, subsidiaries of Itochu Corporation and LG International. The joint venture has received an order to proceed under Environmental Reviewable Projects legislation. CIM

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December 2009 / January 2010 | 73

An independent streak Photo courtesy of Government of Yukon

By the staff of the Government of Yukon

continues to establish government-togovernment relationships with all 14 First Nations to ensure their participation in territorial resource development. In addition to helping create new economic partnerships and investment opportunities, this constructive approach has brought certainty of land tenure to mineral explorers. The government encourages and facilitates partnerships with First Nations, industry and investors, for the benefit of all.

A culture of cooperation A perfect illustration of the productive industry-First Nation relationship is Capstone Mining Corporation’s Minto Mine. The Selkirk First Nation, on whose settlement land the mine is located, has a cooperation agreement with Capstone. In addition to numerous opportunities, this agreement gives the First Nation a 0.5 per cent net smelter royalty on the mine’s production. All projects that have advanced to economic studies have engaged the First Examining drill core from the White Gold project Nations whose traditional territory they affect. Several First Nations have signed he Yukon government is actively working to support memoranda of understanding or cooperation agreements. mineral exploration and the mining industry. With full Examples include Alexco’s agreement with the Na-cho authority over the territory’s resources, the govern- Nyak Dun; the agreements between the Kaska and Yukon ment is the sole administrator of a stable and direct mining Zinc, Selwyn Resources and Yukon-Nevada Gold; and the development permitting process. It recently increased the agreements between the Carcross Tagish and True North territory’s competitiveness by modernizing the legislative Gems and Tagish Lake Gold. framework for hard rock mining. With the passing of amendments to the Quartz Mining and the Miners Lien Discovering gold acts, Yukon’s resources sector enjoys a higher degree of In notable contrast to nationwide trends, vigorous explocertainty. In particular, amendments to the claims adminis- ration activity occurred throughout Yukon Territory in 2009. tration sections of the Quartz Mining Act have helped With the price of gold often nearing the US$1,000 per lower exploration costs. ounce over the last year, and steadily rising since April Forthcoming changes to royalty rates will further help 2009, the search for new gold targets became increasingly the territory compete with other Canadian mining jurisdic- attractive during the 2009 exploration season. tions. Additionally, Yukon has a single streamlined environThis trend was encouraged by the new bedrock discovmental review process, which functions at arm’s length eries, Underworld Resources’ White Gold property, south of from government. Dawson City, and ATAC Resources’ Rau property, 50 kiloOf the Yukon’s 14 First Nations, 11 have settled a com- metres northeast of Keno City. Additionally, Victoria Gold prehensive land claim and are ready to capitalize on oppor- commissioned a prefeasibility study on the Eagle Zone tunities in the resources sector. The territorial government (Dublin Gulch). The company has a comprehensive open pit

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

project to exploit the zone’s 2,690,400-ounce indicated resource. Although exploration activities occurred throughout the Tintina Gold Belt, the most intense interest remained focused on the under-explored Dawson Ranges.

Development galore Mine development work continues at Yukon Zinc’s Wolverine Mine (zinc-silver-copper-lead-gold), one of Canada’s few base-metal properties advancing to production. Yukon Zinc has made significant progress on construction, and the project is on track for production in the third quarter of 2010. Substantial work was completed on the lined tailings impoundment, the industrial complex, the road and the underground mine workings. At a production rate of 1,700 tonnes per day, the deposit is forecast to yield an average of 53,400 tonnes of zinc, 4,860 tonnes of copper, 6,010 tonnes of lead, 4,933,200 ounces of silver and 20,200 ounces of gold per year for the first three years. In the Keno Hill district, Alexco Resource Corp. is conducting extensive work, including underground development and drilling at the past-producing Bellekeno deposit to upgrade resources and make a production decision. Inferred resources at the start of the season stood at 517,000 tonnes of 1,016 g/t Ag, 13.5% Pb and 10.7% Zn. The summer exploration drilling program continues to produce excellent results. With a positive screening report subject to specified mitigation measures from the Yukon Environmental and Socio-economic Assessment Board, Alexco has edged closer being able to commence production. Several Yukon-based projects are conducting engineering, geotechnical and environmental study programs in support of feasibility or pre-feasibility studies. Victoria Gold is completing a program at its Dublin Gulch deposit, where the Eagle Zone hosts indicated resources of 2.7 million ounces of 0.849 g/t Au. Carmacks Copper Corporation is working to upgrade the prefeasibility study on the Casino

copper-gold-molybdenum deposit, which hosts proven and probable reserves of 914 million tonnes at a grade of 0.21% Cu, 0.24 g/t Au and 0.02% Mo. North American Tungsten is conducting studies in support of permit applications for the MacTung deposit, which has a completed a positive feasibility study. The deposit contains an indicated resource of 33.03 million tonnes grading 0.88% WO3. Placer remains an important part of Yukon’s mining sector. Royalty records show that over 16.6 million crude ounces (518 tonnes) of placer gold currently worth over $10 billion have been produced to date. In 2009, placer gold production is expected to be similar to or slightly more than the 2008 total of 49,968 crude ounces. Capstone Mining continued producing from its highgrade copper-gold Minto Mine. By the end of the second quarter of 2009, Minto had processed 500,783 tonnes of ore averaging 2.86% Cu, 1.28 g/t Au, and 12.7 g/t Ag, producing 29,408,000 pounds of high-grade (41.6 per cent) concentrate containing 16,091 ounces of gold and 166,918 ounces of silver. In early 2009, exploration at the property led to the discovery of the Minto North deposit, 600 metres from the main Minto pit and has produced the highest-grade drill intersections.

A new El Dorado? In 2008, Underworld Resources discovered the Golden Saddle and Arc zones at its White Gold property. Early drill results in 2009 (3.39 g/t Au over 104 metres at hole WD09-31) ignited a staking rush of over 7,000 claims in the area. Over 20 junior mining companies have acquired land in the area, which has been dubbed “The White Gold District.” Companies focusing exclusively on this area may be missing opportunities elsewhere, especially given White Gold’s geological similarities to the Dawson Range Mineral Belt. In the White Gold district, other companies are engaged in earlier stage programs of soil sampling, geophysics,

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December 2009 / January 2010 | 75

mapping and trenching. Initial results from Kaminak Resources’ Coffee property include soil samples containing up to 3.16 g/t Au and trenching returning 2.3 g/t Au over 21 metres. Tarsis Resources reported porphyry-style mineralization with grab samples of altered intrusive assaying 3.1 g/t Au, 206 g/t Ag and 0.04% Cu, and a prospecting discovery of a 0.30 metre-wide quartz vein-type, assaying 4.06 g/t Au, 161 g/t Ag and 0.89% Pb on the Prospector Mountain property. Other gold exploration programs in the Tintina Gold Belt include drill programs by Golden Predator Royalty and Development on three properties. The Brewery Creek Mine property is being explored for sulphide resources within the mine trend, which produced approximately 280,000 ounces of gold. The Gold Dome property is host to numerous styles of intrusion-related gold mineralization, which have produced impressive drill results that need to be followed. The Antimony Mountain property is drill testing the AJ gold-bearing quartz vein, which has returned high-grade gold from historical sampling. Victoria Gold is drilling on additional zones outside the main resources in the Eagle zone at Dublin Gulch. Canarc Resource Corporation has started a 10-hole, 2,000-metre drill program on the Tay/LP property. Emerick Resources has begun drilling on the Grew Creek Eocene-aged epithermal gold deposit, located along the Campbell Highway.

ATAC Resources’ Rau property, a new 2008 gold discovery, is subject to a substantial three-drill program. The property exhibits sulphide mineralization replacing dolomitized limestone and oxide mineralization, which has produced substantially higher grades than the sulphide type. The season’s first drill hole returned an impressive 28.04 metres of 24.07 g/t Au in oxide mineralization. ATAC is focusing on the oxides for their higher grades and excellent recoveries. Initial cyanide leach tests on oxide core returned recoveries of around 90 per cent.

A Range of projects Several advanced Dawson Range projects were actively explored in 2009. Northern Freegold Resources conducted a 12,000-metre drilling program at the Nucleus deposit (inferred resource of 1,082,000 oz. Au within 67.57 million tonnes of 0.50 g/t Au). Northern Tiger Resources undertook a 2,500-metre drilling program on the Night Music zone at the Sonora Gulch project, where a 2008 drill discovery intercepted 26.6 metres of 4.96 g/t Au, 11.9 g/t Ag and 0.23% Cu. Western Copper drilled 10,000 metres at its Casino copper-gold-molybdenum porphyry deposit (4.4 billion pounds of copper, eight million ounces of silver and 475 million pounds of molybdenum, contained in a billiontonne resource). The drill program was designed to upgrade inferred resources and to test potential new mineralization identified in a Quantec Titan 24 deeppenetration geophysical survey. Cariboo Rose and Alder Resources drilled 2,000 metres at their Canadian Creek project and Underworld Resources drilled over 20,000 metres at the White Gold project.

Beyond gold Despite capturing the lion’s share of attention, gold is not the only commodity of interest in Yukon. BC Gold is exploring a number of properties that are underlain by the same Jurassic-aged intrusion that hosts the Minto and Carmacks copper deposits. Western Copper, working on the Carmacks copper deposit, has received its Quartz Mining Licence. The company is reviewing its 2007 feasibility study and, upon receipt of the final Water Licence, will make a production decision. In the Keno Hill district, Mega Precious Metals conducted a 5,000-metre drilling program on its Eagle and Fisher properties, which are adjacent to the Bellekeno property. Selwyn Resources has been focusing on prefeasibility level studies to develop its Selwyn zinc-lead property as a 5,000 tpd, high-grade underground mine, followed by later expansion with addition of open pit operations. Current high-grade resources are indicated to be 16 million tonnes at 10.25% Zn and 4.23% Pb. Inferred resources are 26.7 million tonnes of 8.81% Zn and 2.81% Pb. With so much exploration and development underway, Yukon is poised to retain its position as a prime target for mineral exploration, mine development and production in future years. CIM 76 | CIM Magazine | Vol. 4, No. 8

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The bedrock of an economy

Photo courtesy of Diavik Diamond Mines

By Darren Campbell, manager, Public Affairs and Communications, Industry, Tourism & Investment

An aerial view of a Diavik Diamond Mine pit, located about 300 kilometres northeast of Yellowknife

s in the rest of Canada, the past year has been difficult for the mining industry in the Northwest Territories and exploration companies have curbed spending. Yet, the Northwest Territories government remains optimistic about the future because the area is richly endowed with many important minerals, such as diamonds, lead, zinc, copper, tungsten, rare earths, gold, silver and platinum. With a large unexplored land mass of 1.4 million square kilometres, the Northwest Territories offers many large mineral prizes. The government is eager to work collaboratively with industry partners to further the interests of both the mining industry and the people of the Northwest Territories. The partnership between the territorial and federal governments to gather new geosciences data is an example of the government’s commitment to working collaboratively to stimulate investment. It is estimated that every one million of government investment in the geosciences knowledge base stimulates five million dollars in exploration spending. This investment could result in the discovery of an estimated $125 million worth of new resources — discoveries that could offer shareholders rich returns and create jobs and business opportunities for Northwest Territories residents.

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

Diamonds glitter Of the Northwest Territories four operating mines, three produce diamonds. The underground and open pit EKATI Diamond Mine, located at Lac de Gras, 300 kilometres northeast of Yellowknife, has been in production since 1998. To date, 156 kimberlite pipes have been found on EKATI’s claim block. At 3.2 million carats, 2009 production was down four per cent from 2008. Nevertheless, annual diamond sales from the 80 per cent BHP Billiton-owned EKATI mine represent about three per cent of current world rough diamond supply by weight and six percent by value. The second jewel in the Northwest Territories’ diamond crown is the Diavik Diamond Mine, also located 300 kilometres northeast of Yellowknife. Operated by Diavik Diamond Mines Inc., a part of the Rio Tinto Group, the mine has been in operation since 2003 and has produced over 50 million carats since then. The diamond production forecast for 2009 is between five and six million carats. The third, De Beers Canada’s Snap Lake Mine, located 220 kilometres northeast of Yellowknife, made its debut in 2008. Snap Lake, the company’s first mine outside Africa, is Canada’s first completely underground diamond mine.

A land of promise While there are four producing mines in the Northwest Territories, there is potential for many more. One project in the advanced development stage is Fortune Minerals’ NICO gold-cobalt-bismuth project, located 160 kilometres northwest of Yellowknife. The company is currently seeking permits for a combined open pit and underground mine. With proven and probable mineral reserves of 21.8 million tonnes containing 760,000 ounces of gold, 61 million pounds of cobalt and 77 million pounds of bismuth, NICO will likely have a minimum 15-year mine life with an annual production rate of 1.46 million tonnes of ore. Another proposed project with great promise is Canadian Zinc Corporation’s Prairie Creek Mine project. This lead-zinc-silver proposed project is located in the south Mackenzie Mountains. Substantial infrastructure is already in place on the property, including a partially developed

underground mine with an existing 1,000 tpd mill. Canadian Zinc is proposing an underground mine at Prairie Creek that could process up to 1,200 tonnes of ore per day for 14 years. The company holds exploration and development permits but not the permits required to operate the mine. Awaiting permits and an improvement in the economic climate, the company scaled back operation in October 2008. When it is up and running, the Prairie Creek Mine could contribute significantly to the Northwest Territories and the Dehcho region where it is located. The mine will employ 150 people during the construction and exploration phase and 220 people during operations. The Northwest Territories could soon have yet another diamond mine — the Gahcho Kué project, a joint venture between De Beers Canada and Mountain Province Diamonds. With indicated resources of approximately 23.6 million carats, this project, located 280 kilometres northeast of Yellowknife, is among the largest new diamond projects under development in the world. Gahcho Kué is currently undergoing an environmental impact review. Tyhee Development Corporation’s Yellowknife Gold project, located 90 kilometres north of Yellowknife, consists of the Ormsby and Nicholas Lake gold deposits. The gold resource is 1.2 million ounces with an inferred resource estimate of another 353,000 ounces. By July 2009, Tyhee had raised $2.65 million. The company will complete a preliminary feasibility study in 2010. Another bright and emergent mining prospect is Avalon Rare Metals’ Nechalacho rare earths project, located 100 kilometres southeast of Yellowknife. With rare earths being in great demand for use in a host of “green” products, such as hybrid cars and wind turbines, and China currently controlling global supplies, the Nechalacho project is extremely attractive to investors. Nechalacho’s potential 64.2 million-tonne resource could sustain mining for at least 100 years. Avalon is working on a prefeasibility study and hopes to have the mine in production by 2013. The company has established good relations with affected Aboriginal people in the region and is working closely with the Northwest Territories government. The mine could eventually employ 200 people and create business opportunities for thousands of northerners, in addition to contributing billions of dollars to the Northwest Territories economy. CIM Photo courtesy of Mike Botha

Annual production is forecasted to be 1.4 million carats. Due to the global financial turmoil and a drop in diamond demand, the Diavik and Snap Lake mines ceased operations during the summer of 2009, while BHP Billiton curtailed expansion plans at EKATI. On a more positive note, an improved outlook has driven the operators of Diavik and Snap Lake to cancel planned winDiamond Tetrahedron ter shutdowns. Despite their recent economic troubles, there is little doubt that these diamond mines have had an enormous positive impact on the Northwest Territories economy. Since construction started at EKATI in 1996, the mines have generated nearly 14,000 person-years of employment and have purchased goods and services worth over seven billion dollars from northern businesses. More than three billion dollars of those purchases were from Aboriginal companies. Impressively, each of the mines made 74 to 83 per cent of their total purchases from northern businesses in 2008. Vancouver-based North American Tungsten Corporation’s Cantung Mine is the Northwest Territories’ only nondiamond mine. Tungsten is mined at this operation, located just on the Northwest Territories side of the border with Yukon. In October, the company placed the mine on care and maintenance due to increased inventory and declining tungsten prices. The company feels that this move will allow for a timely and cost-effective return to production when the tungsten market improves.

December 2009 / January 2010 | 79

A decade of development in Nunavut By Karen D. Costello and Linda J. Ham, Mineral Resources Section, Indian and Northern Affairs Canada, Nunavut Regional Office, Iqaluit

Photo courtesy of Peregrine Diamonds Ltd.

Drilling at Sabina’s Hackett River project

ince its formation under the Nunavut Land Claims Agreement (NLCA) on April 1, 1999, Nunavut has experienced several development-related challenges and opportunities. The territory’s resources sector has seen its fair share of these. At the time of Nunavut’s inception, there were three mines in different stages of production: the Nanisivik and Polaris lead-zinc mines in the High Arctic were nearing the end of production, while the Lupin gold mine near the Northwest Territories border was in care and maintenance.

Expanding exploration activity Over the past five years, Nunavut has hosted 10 of the Natural Resources Canada-ranked 100 top-spending exploration projects. Distributed across Nunavut’s three regions (Kitikmeot, Kivalliq and Qikiqtani), these projects involve gold, iron, uranium, diamonds and base metals. While vast tracts of Nunavut have been explored, very large areas remain under-mapped and under-explored. 80 | CIM Magazine | Vol. 4, No. 8

Mineral tenure and ground acquisition statistics exhibit annual fluctuations that mimic commodity price trends and follow new discovery announcements. Since 1999, more than $1.69 billion has been invested in Nunavut private sector exploration and deposit appraisals. This year, senior companies will, for the first time since 2002, spend more than the junior sector on exploration. The year saw junior companies in most jurisdictions struggling to acquire investment funding. Most Nunavut juniors, however, could maintain their land positions without active programs due to successful field programs in the previous three years.

Gold

Gold exploration, deposit delineation and mine development were the highlights of 2009. Agnico-Eagle worked to bring into production its Meadowbank gold mine, 100 kilometres north of Baker Lake in the Kivalliq region. Meadowbank deposits have probable gold reserves of 3.6 million ounces. Mine commissioning and first gold production from the Portage deposit is anticipated in early 2010. Over its expected nine-year life, the mine will produce an annual average of 350,000 ounces of gold. In 2009, mine site exploration at Meadowbank focused on testing for near-surface extensions of the current open pit reserves at three deposits (Portage, Goose Island and Vault) and on defining additional regional targets. One containment dyke was completed and the future tailings management facility was de-watered. Other dykes, scheduled for completion in 2010, will extend the Portage pit and allow access to higher grade ore in Goose Island by 2011. The results will inform revised resource and reserve estimates, and will be incorporated into a study to test the feasibility of expanding Meadowbank’s daily production from 8,500 to 10,000 tonnes.

$ Millions

Along the Coronation Gulf Juniors Seniors (western Kitikmeot region), 350 Newmont Mining controls the Hope Bay greenstone belt. It con300 tains two small, high-grade (4.0 to 8.0 g/t cut-offs) lode deposits at 250 Doris and Boston and the lowgrade (average 4.0 g/t), high-ton200 nage Madrid deposit. These three deposits contain indicated and 150 inferred resources of over 10 million ounces of gold. Newmont con100 tinues to re-evaluate the deposits and their environs with further 50 mapping and drilling. Early in 2009, Dundee Precious 0 Metals, owner of the Back River 1999 2001 2003 2005 2007 2009 project and the Wishbone gold and base metal properties in western Expenditures spent by the junior resource companies and the senior companies in Nunavut from 1999-2009. Kitikmeot, was taken over by Sabina Silver Corporation. Sabina Silver Corporation, owner of the silver-rich vol- Minerals in 2009. Through its Canadian entity MMG canogenic massive sulphide (VMS) deposit at Hackett Resources, Minmetals now owns all of OZ Minerals’ River, now owns most of the Hackett River volcanic belt, Kitikmeot assets, which include the rich Izok Lake deposit which also includes the known Yava and Musk base metal (copper-zinc-lead-silver); the Gondor and Hood base metal deposits. The Hackett River advanced exploration project deposits; the former Lupin gold mine and a satellite gold hosts at least eight known VMS deposits. The resource is deposit, Ulu; and the advanced exploration massive sulexpected to have a 13.6-year mine life (daily milling rate of phide High Lake deposit (copper-zinc-gold-silver). High 10,000 tonnes). Its 43.34 million-tonne indicated resource Lake contains known resources of 17.3 million tonnes of includes 200 million ounces of silver (144 g/t Ag), two mil- ore averaging 3.3% Zn and 2.2% Cu. Located south of lion tonnes of zinc (4.65% Zn), 180,000 tonnes of copper High Lake, Izok Lake hosts a resource of 14.8 million (0.42% Cu), 279,000 tonnes of lead (0.64% Pb) and tonnes with average grades of 2.6% Cu and 12.8% Zn. 419,000 ounces of gold (0.3 g/t Au). Uranium exploration activities were limited to the Throughout 2009, Comaplex Minerals worked to Kivalliq district in 2009. AREVA Resources Canada Ltd. advance the Meliadine gold project, 25 kilometres north- filed a project description with the Nunavut Impact east of Rankin Inlet, towards a feasibility study. Comaplex Review Board in late 2008 for a combined open pit and completed an independent preliminary assessment (NI 43- underground mine operation and related infrastructure 101-compliant) on the Meliadine West and East properties. development at the advanced Kiggavik project. The comMeliadine West hosts two gold deposits, Tiriganiaq and F. pany is awaiting a decision from the Minister of Indian A third deposit, Discovery, is located on Meliadine East. Affairs and Northern Development on the next step in the Based on open pit development, indicated gold resources regulatory process. Uranium North Resources Corp. and Kivalliq Energy at Tiriganiaq, F and Discovery are 2,036,700 ounces, 110,100 ounces and 259,200 ounces, respectively. Corporation completed short drill programs on their Amer Inferred resources in the three deposits are, respectively, Lake and Lac Cinquante properties, respectively. Cameco 893,000 ounces, 113,560 ounces and 148,950 ounces. Corporation was active on its three properties: Aberdeen, Comaplex will shortly submit a preliminary project descrip- Turqavik, and Nueltin Lake. At Baffinland Iron Mines Corporation’s Mary River iron tion to Nunavut regulators. Junior explorer Commander Resources signed a farm- ore project, 1,000 kilometres north of Iqaluit, work in and joint venture agreement with AngloGold Ashanti included continued environmental baseline studies, metalHoldings, which will acquire a 51 per cent interest in lurgical testing, and delineation drilling of Deposit 1. Commander’s Baffin Island gold project, where an Positive results were recently reported from the blast furaggressive multi-target drill campaign is planned for the nace tests of the large iron ore cargo samples shipped to European steel mills. The next step is for the Nunavut spring of 2010. Impact Review Board (NIRB) to finalize environmental Other metals impact statement guidelines. A new international entrant to Nunavut, China Large blocks of nickel-PGE prospective ground were Minmetals Non-ferrous Co. Ltd., took ownership of OZ acquired by Anglo American Exploration and Vale Inco in December 2009 / January 2010 | 81

2009 on Southampton Island, following the release of preliminary results from the Southampton Island Integrated Geoscience Project led by the CanadaNunavut Geoscience Office (CNGO) and data from government airborne surveys. These acquisitions demonstrate the continued existence of new grassroots exploration opportunities.

Diamonds There were fewer active diamond projects in 2009 than in past years. Small programs were carried out in the Kitikmeot and Kivalliq regions. The largest of these, a $9.2 million program, was carried out by Peregrine Diamonds at its Chidliak property in the Qikiqtani region, 150 kilometres northeast of Iqaluit. In 2008, three diamond-bearing kimberlites were discovered at Chidliak. A gem-quality 2.01 carat stone was recovered from a kimberlite CH-1surface sample. With Peregrine as the operator, BHP Billiton acquired the right to acquire a 51 per cent interest in Chidliak and funded the entire 2009 program. Thirteen kimberlites were recently discovered, six through drill-testing of geophysical anomalies and seven from prospecting. Five occurrences of kimberlite float were also discovered with three of the five associated with geophysical targets.

A mini-bulk sample (50 tonnes) was collected from CH-1 and additional till samples were collected on the property. Large diamonds (2.5-carat, +0.85-millimetre stones) were recently recovered from another kimberlite, CH-6. Planning is underway for an expanded 2010 program at Chidliak. In eastern Kitikmeot, at the Amaruk diamond project owned and operated by Diamonds North Resources, 24 kimberlites have been discovered to date, 90 per cent of which contain diamonds. 2009 work included drilling 30 kimberlite targets and collecting a 10-tonne sample from the Beluga-3 kimberlite, which returned several significant diamonds during early sampling. Amaruk also holds potential for gold, with mineralization discovered in a three to five metre-wide zone that is exposed for approximately 50 metres. With this activity, Nunavut will once again become a mineral producer in 2010 with the commissioning of the Meadowbank gold mine. Exploration and mining industries have had a significant presence during Nunavut’s first decade. New discoveries and the advancement of existing projects will continue over the next decade and beyond. CIM For more information, visit the Department of Indian and Northern Affairs’ website, www.ainc-inac.gc.ca/nunavut.

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On the road to recovery and expansion By the staff of the Mines Branch, Department of Natural Resources, Government of Newfoundland and Labrador

Resurgent investment

Photo courtesy of the Department of Natural Resources, Government of Newfoundland and Labrador

Despite the recent economic downturn, Newfoundland and Labrador is witnessing a resurgence of investment in its minerals industry. Vale Inco formally notified the province in late 2008 that it will construct a hydromet nickel processing plant at Long Harbour, Newfoundland. The plant is currently in the early stages of earthworks and construction, and is forecast to be completed in February 2013 at a total estimated cost of US$2.177 billion. Operational employment will be about 450 persons, and the plant will produce 50,000 tonnes of finished nickel per year. In the first half of 2009, the Iron Ore Company of Canada (IOCC) appears to have maintained reasonable sales levels through the spot market in China. Following a scheduled fiveweek mid-summer shutdown, the company has hired 30 new employees. A decision on reviving the previously announced $800 million expansion program has yet to be made. Wabush Mines announced in February that it will implement a $4 million project to complete the assessment and evaluation of manIron Ore Company of Canadaâ&#x20AC;&#x2122;s open pit mine in western Labrador ganese separation technology on a production prototype. This will deterining is one of Newfoundland and Labradorâ&#x20AC;&#x2122;s mine if the technology can be transferred to a full facility largest and oldest industries, and a major contribu- rollout. The manganese separation process will allow the tor to the provinceâ&#x20AC;&#x2122;s economy. Six metal mines pro- company to mine and process higher manganese ores duce iron ore, nickel, copper, zinc, cobalt, antimony and gold. and will extend the life of the mine. The project is Other operations mine slate, limestone and barite, among expected to proceed, possibly in 2009, upon approval at other commodities. Direct employment in the Newfoundland the corporate level. The project has a total capital cost of and Labrador minerals industry is projected to account for $43 million. The company announced 160 employee lay4,112 work-years in 2009, an increase of 99 work-years offs for February and decreased production by about 50 over the 2008 estimate. The forecast gross value of mineral per cent for 2009. However, 100 unionized employees shipments for 2009 is $2.2 billion. This is down from $4.7 have since been recalled. billion in 2008 as a result of weaker commodity prices and Teck Resources Ltd. achieved a milestone at its Duck decreased production due to scheduled shutdowns and Pond operation by reaching the heart of the ore body at the labour disruption. However, this lower 2009 figure is still the 42 level. They are also in the middle of developing an fourth highest value on record for the province. underground service centre for mobile equipment, which

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

Continuing exploration Expenditures on exploration and deposit appraisal in the province are projected to be about $58 million in 2009, down from about $146 million in 2008. This is in line with global trends during the current economic downturn. In exploration highlights, Tenajon Resources Corp. (now Creston Moly Corp.) has reported a resource estimate at its Moly Brook Property. The Moly Brook Zone contains an indicated resource of 86.8 million tonnes grading 0.065% Mo and an inferred resource of 31.3 million tonnes grading 0.056% Mo. Thundermin Resources Incorporated and Cornerstone Resources Incorporated announced a resource estimate for the Little Deer copper project. The deposit contains an indicated resource of 1,087,000 tonnes at an average grade of 2.9% Cu and an inferred resource of 1,950,000 tonnes at an average grade of 2.3% Cu. Fronteer Development Group Incorporated has announced a positive preliminary economic assessment for the proposed Michelin Uranium project in Labrador. The study is based on an open pit and underground uranium mining operation at the Michelin and Jacques Lake deposits, and a milling facility at the Michelin site capable of processing 10,000 tonnes of mineralization per day, producing up to 7.3 million pounds of U3O8 per annum. Northern Abitibi Mining Inc. continues to encounter new mineralization at its Viking gold property through an ongoing program of trenching and diamond drilling. Highlights of the work to date include a drill intersection of 27.0 metres grading 7.9 grams per tonne Au, within which are 4.8 metres of 41.4 grams per tonne.

Fostering development, protecting the land By Daniel Khan and Dianne Webber, Mineral Resources Branch, Department of Natural Resources, Government of Nova Scotia

Photo courtesy of NS Department of Natural Resources

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

Natural resources strategy:

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

Legally protected land objectives:

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Well-positioned for a commodities rebound By Sean McClenaghan, Kathleen Thorne and Les Fyffe, Geological Surveys Branch, New Brunswick Department of Natural Resources

Photo courtesy of PotashCorp, New Brunswick Division

Mineral exploration Base metals:

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

Gold:

Polymetallic minerals: Based on 48 additional holes drilled in the summer of 2008, Geodex Minerals reported an updated NI 43-101-compliant resource model for its Sisson Brook tungsten-molybdenum deposit. The mineral resource estimate (0.125% WO3-equivalent cut-off) for Zone III is measured at 11 million tonnes of 0.109% WO3 and 0.037% Mo; indicated at 69.1 million tonnes of 0.107% WO3 and 0.03% Mo; and inferred at 47.8 million tonnes of 0.097% WO3 and 0.036% Mo. For the Ellipse Zone, the resource estimate is measured at 500,000 tonnes of 0.112% WO3 and 0.034% Mo; indicated at 10.4 million tonnes of 0.105% WO3 and 0.038% Mo; and inferred at 8.6 million tonnes of 0.091% WO3 and 0.041% Mo. To upgrade the resource and test new target areas, Geodex completed a 28 hole, 4,900-metre drilling program. The company is also focussing on its Flume Ridge property in southwestern New Brunswick to investigate the source of significant tungsten anomalies in soil and stream sediment samples. Adex Mining released updated NI 43-101-compliant resource estimates for its Mount Pleasant property comprising two main mineralized zones. The Fire Tower Zone contains indicated reserves of 13,489,000 tonnes of 0.33% WO3 and 0.21% MoS2, inferred resources of 841,700 tonnes grading 0.26% WO3 and 0.20% MoS2 (0.3% WO3-equivalent cut-off). The North Zone contains indicated resources of 10,882,000 tonnes grading 0.43% Sn, 67.8 g/t In, 0.67% Zn, 0.09% WO3, 0.06% MoS2, 0.11% Cu and 0.08% Bi; and inferred resources of 7,603,000 tonnes grading 0.22% Sn, 74.6 g/t In, 0.99% Zn, 0.08% WO3, 0.05% MoS2, 0.09% Cu, and 0.05% Bi (0.25% Sn-equivalent cut-off). Adex has also conducted comprehensive metallurgical testing to evaluate the viability of extracting tungsten from low-grade concentrates. This test work will be instrumental in developing a pilotplant program that may lead to commercial-level tungsten, molybdenum, tin and indium production. December 2009 / January 2010 | 49

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

uranium mineralization coincident with airborne uranium anomalies with float samples assaying up to 427 ppm U.

Vigueur du secteur aurifère et perspectives de reprise dans les autres métaux

Photo courtesy of Xstrata Nickel

par André Lavoie, directeur, communications et affaires publiques, Association minière du Québec (AMQ)

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

De grands défis pour l’industrie minière au Québec en 2010 La ressource humaine :

Maintenir les objectifs en santé et sécurité :

L’acceptation sociale de projets miniers :

L’Association minière du Québec se préoccupe de toutes ces problématiques et continuera de suivre ces dossiers.

Politiques gouvernementales :

A gilded recovery Translated from the original in French by André Lavoie, Director, Communications and Public Affairs, Quebec Mining Association (QMA)

Photo courtesy of Xstrata Nickel

A cluster of projects under development

Major challenges for Quebec’s mining industry in 2010

The strength of the gold sector, evident from the recent historic peaks in gold prices, is leading Quebec’s resources sector recovery.

are generating considerable demand for manpower. However, the current situation is one of contrasts — some

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

Human resources: New operations and ongoing retirements

sectors, professions, regions and qualification levels are experiencing labour shortages, while others are plagued by surpluses.

The social acceptance of mining projects: In 2009, issues con-

Government policies:

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December 2009 / January 2010 | 55

An upswing in Ontario Photo courtesy of Apollo Gold Corporation

By Brock Greenwell, Ministry of Northern Development, Mines and Forestry

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

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

Prospecting on the Prairies Photo courtesy of Rockcliff Resources Inc.

By Dave Prouse, resident geologist (Flin Flon), Manitoba Geological Survey, Manitoba Science, Technology, Energy and Mines

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

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www.bmt.com.au December 2009 / January 2010 | 61

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

A world leader weathers a storm Photo courtesy of Mosaic Co.

By the staff of the Saskatchewan Ministry of Energy and Resources

An underground view of Mosaic’s Esterhazy potash mine

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www.atcosl.com | 1.800.575.ATCO (2826) 64 | CIM Magazine | Vol. 4, No. 8

Meta-kaolin:

December 2009 / January 2010 | 65

Beyond the oil sands By D. Roy Eccles, geologist, ERCB/Alberta Geological Survey

Photo courtesy of the Alberta Geological Survey

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

Ferrous minerals During, 2008 Ironstone Resources Ltd. drilled and recovered 385 metres of unoxidized iron ore from 47 out of 51 drillholes that tested the Clear Hills ooidal ironstone

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An eye on the horizon Photo courtesy of Bruce Northcote, Ministry of Energy, Mines and Petroleum Resources

By Dave Grieve, Bruce Madu, Bruce Northcote, Paul Wojdak, Jay Fredericks, and Dave Lefebure, BC Ministry of Energy, Mines and Petroleum Resources

Copper-gold-molybdenum: Thompson Creek Metals Company approved resumption of the $374 million expansion of the Endako molybdenum mine to increase daily capacity from 28,000 to 50,000 tonnes. At the Huckleberry copper Driving in casing at the Raven coal project of Compliance Energy Corporation on Vancouver Island mine, Imperial Metals announced a new plan to extend the operation to late 2011. xploration expenditure in the province of British Seabridge Gold continued resource expansion on the Columbia is anticipated to be less in 2009 than the enormous Mitchell gold-copper porphyry deposit on the $357 million spent in 2008, largely due to the con- KSM property. Imperial Metalsâ&#x20AC;&#x2122; two-drill program explored tinuing economic uncertainty and the attendant difficulty the deep core zone of the Red Chris copper-gold porphyry in raising capital. However, a number of mining projects deposit. The target of the 1,500-metre holes is to delineate continue to advance towards production. Currently, 22 a zone exceeding 1% Cu and 1 g/t Au below the open pit projects are in the Environmental Assessment (EA) resource. process, six are in mine permitting and another six are in Other significant porphyry drill programs include Big mine development. Bulk near Kitsault, which was optioned by Anglo-Gold Ashanti and the Kitsault molybdenum mine on the North Northwest region Coast that Avanti Mining plans to re-open.

Gold:

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

Northeast region Coal:

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Photo courtesy of Jay Fredericks, BC Ministry of Energy, Mines and Petroleum Resources

The SX-EW operation at the Gibralter mine continues to produce copper sheets onsite

South-central region Gold: Bralorne Gold Mines started a new adit to access the

2.719 million tonnes measured plus indicated resources at 0.358% WO3. Klondike Silver delineated a western extension to the Silvana lode structure on its Slocan Silver Camp holdings.

Coal: Southeast BCâ&#x20AC;&#x2122;s five large open pit metallurgical coal mines are situated in the Elk Valley and are operated by Teck Coal. Production from these is expected to be at or

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At the Mineral Creek gold property, Bitterroot Resources installed new milling equipment within an

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An independent streak Photo courtesy of Government of Yukon

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The bedrock of an economy

Photo courtesy of Diavik Diamond Mines

By Darren Campbell, manager, Public Affairs and Communications, Industry, Tourism & Investment

An aerial view of a Diavik Diamond Mine pit, located about 300 kilometres northeast of Yellowknife

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

December 2009 / January 2010 | 79

A decade of development in Nunavut By Karen D. Costello and Linda J. Ham, Mineral Resources Section, Indian and Northern Affairs Canada, Nunavut Regional Office, Iqaluit

Photo courtesy of Peregrine Diamonds Ltd.

Drilling at Sabina’s Hackett River project

Gold

$ Millions

Along the Coronation Gulf Juniors Seniors (western Kitikmeot region), 350 Newmont Mining controls the Hope Bay greenstone belt. It con300 tains two small, high-grade (4.0 to 8.0 g/t cut-offs) lode deposits at 250 Doris and Boston and the lowgrade (average 4.0 g/t), high-ton200 nage Madrid deposit. These three deposits contain indicated and 150 inferred resources of over 10 million ounces of gold. Newmont con100 tinues to re-evaluate the deposits and their environs with further 50 mapping and drilling. Early in 2009, Dundee Precious 0 Metals, owner of the Back River 1999 2001 2003 2005 2007 2009 project and the Wishbone gold and base metal properties in western Expenditures spent by the junior resource companies and the senior companies in Nunavut from 1999-2009. Kitikmeot, was taken over by Sabina Silver Corporation. Sabina Silver Corporation, owner of the silver-rich vol- Minerals in 2009. Through its Canadian entity MMG canogenic massive sulphide (VMS) deposit at Hackett Resources, Minmetals now owns all of OZ Minerals’ River, now owns most of the Hackett River volcanic belt, Kitikmeot assets, which include the rich Izok Lake deposit which also includes the known Yava and Musk base metal (copper-zinc-lead-silver); the Gondor and Hood base metal deposits. The Hackett River advanced exploration project deposits; the former Lupin gold mine and a satellite gold hosts at least eight known VMS deposits. The resource is deposit, Ulu; and the advanced exploration massive sulexpected to have a 13.6-year mine life (daily milling rate of phide High Lake deposit (copper-zinc-gold-silver). High 10,000 tonnes). Its 43.34 million-tonne indicated resource Lake contains known resources of 17.3 million tonnes of includes 200 million ounces of silver (144 g/t Ag), two mil- ore averaging 3.3% Zn and 2.2% Cu. Located south of lion tonnes of zinc (4.65% Zn), 180,000 tonnes of copper High Lake, Izok Lake hosts a resource of 14.8 million (0.42% Cu), 279,000 tonnes of lead (0.64% Pb) and tonnes with average grades of 2.6% Cu and 12.8% Zn. Uranium exploration activities were limited to the 419,000 ounces of gold (0.3 g/t Au). Throughout 2009, Comaplex Minerals worked to Kivalliq district in 2009. AREVA Resources Canada Ltd. advance the Meliadine gold project, 25 kilometres north- filed a project description with the Nunavut Impact east of Rankin Inlet, towards a feasibility study. Comaplex Review Board in late 2008 for a combined open pit and completed an independent preliminary assessment (NI 43- underground mine operation and related infrastructure 101-compliant) on the Meliadine West and East properties. development at the advanced Kiggavik project. The comMeliadine West hosts two gold deposits, Tiriganiaq and F. pany is awaiting a decision from the Minister of Indian A third deposit, Discovery, is located on Meliadine East. Affairs and Northern Development on the next step in the Based on open pit development, indicated gold resources regulatory process. Uranium North Resources Corp. and Kivalliq Energy at Tiriganiaq, F and Discovery are 2,036,700 ounces, 110,100 ounces and 259,200 ounces, respectively. Corporation completed short drill programs on their Amer Inferred resources in the three deposits are, respectively, Lake and Lac Cinquante properties, respectively. Cameco 893,000 ounces, 113,560 ounces and 148,950 ounces. Corporation was active on its three properties: Aberdeen, Comaplex will shortly submit a preliminary project descrip- Turqavik, and Nueltin Lake. At Baffinland Iron Mines Corporation’s Mary River iron tion to Nunavut regulators. Junior explorer Commander Resources signed a farm- ore project, 1,000 kilometres north of Iqaluit, work in and joint venture agreement with AngloGold Ashanti included continued environmental baseline studies, metalHoldings, which will acquire a 51 per cent interest in lurgical testing, and delineation drilling of Deposit 1. Commander’s Baffin Island gold project, where an Positive results were recently reported from the blast furaggressive multi-target drill campaign is planned for the nace tests of the large iron ore cargo samples shipped to European steel mills. The next step is for the Nunavut spring of 2010. Impact Review Board (NIRB) to finalize environmental Other metals impact statement guidelines. A new international entrant to Nunavut, China Large blocks of nickel-PGE prospective ground were Minmetals Non-ferrous Co. Ltd., took ownership of OZ acquired by Anglo American Exploration and Vale Inco in December 2009 / January 2010 | 81

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MAC economic commentary Raw materials protectionism An interesting and growing trade policy issue ❚ Paul Stothart There are a number of interesting public policy issues surrounding Canada’s mining industry relating to areas such as social license, tax competitiveness, tailings management, air pollutants, land access and Aboriginal relations. One emerging policy issue that has not attracted much attention in the industry or media relates to a growing movement towards raw materials protectionism by a number of developing countries, most significantly China. At the root of the raw materials protectionism issue is the fact that many countries are engaged in a battle to secure a steady, or better yet, growing supply of raw materials. Towards this end, any key raw materials that these countries can get their hands on, in the form of concentrate, scrap or recycled material, are jealously guarded. In the case of China, a broad array of export taxes, quotas and licensing requirements are used to obstruct raw materials exports so as to ensure the maximum supply for domestic usage. According to a study by ITS Global consultants, in recent years these measures have been used to maximize domestic supply of aluminum, antimony, bauxite, nickel, scrap, iron ore, coal, coke, platinum, copper, tungsten, zinc, manganese, molybdenum and rare earth elements. These border measures are a critical component of China’s industrial strategy, where raw materials are used to build the country’s infrastructure and to underpin the valueadded and job-intensive manufacturing sector. A second major component of this industrial strategy involves foreign investment — China has embarked upon a far-reaching and active outward investment campaign aimed primarily at securing a supply of raw materials. Tens of billions of dollars worth of direct 84 | CIM Magazine | Vol. 4, No. 8

investments are being made to secure supplies of petroleum, minerals and metals from Angola, Sudan, Nigeria, Zambia, Zimbabwe, Democratic Republic of Congo, Sierra Leone, South Africa, Australia, Canada and many other countries. China possesses large reserves of U.S. dollars and financial instruments, and a significant portion of these will be used to acquire hard assets. Western governments are becoming increasingly concerned with this protectionism, primarily because of the direct impacts on western manufacturing competitiveness. By diminishing the availability of raw materials in the free market, the Chinese government causes western manufacturers to pay higher prices than they would otherwise. Conversely, by enhancing the supply within their own country, Chinese manufacturers pay lower prices for raw materials than they would otherwise. In the aim of reducing or ending these trade policies and distortions, the U.S. and EU governments launched a World Trade Organization (WTO) challenge in June 2009 regarding “China’s restraints on the export from China of various forms of bauxite, coke, fluorspar, magnesium, silicon carbide, silicon metal, yellow phosphorus and zinc.” These raw materials are important ingredients for the production of chemicals, aluminum and steel. For the United States, this is President Obama’s first WTO challenge. Mexico has recently joined this challenge as a co-complainant, while Canada has joined the dispute with third-party status and not as a cocomplainant.

It remains unclear whether the WTO path will lead to satisfaction on this issue. WTO processes are long, complex, expensive and subject to equally lengthy appeal processes. When found in violation of rules, countries can implement relatively minor policy adjustments that, if felt inadequate, can lead to subsequent disputes. Canada’s experience with WTO disputes, for example, regarding regional aircraft financing or softwood lumber, can be measured in terms of decades and half-decades. Lawyers and officials within the government’s trade law division have virtually devoted entire careers to these issues. A further complication flows from the fact that not all countries (or even all affected sectors) speak with a common voice on this issue. Within the mining and metals sphere, for example, many companies have important supply, investment and market arrangements with Chinese entities and do not want these to be affected by bilateral trade disputes or frictions. Many see the Chinese market as a growth centre of the future. Given this reality, it is unclear whether national governments can muster the sustained support necessary to ride WTO disputes to a useful conclusion. CIM www.mining.ca

About the author Paul Stothart is vice president, economic affairs of the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues.

HR outlook The time to act is now Securing manpower in an aging industry ❚ Sheldon Polowin The Mining Association of Canada reports that between October 2008 and August 2009, more than 30 mines suspended operations. Companies involved in non-metallic mineral and/or fabricated mineral production have generally operated at around twothirds of capacity. Between October 2008 and October 2009, the mining, oil and gas extraction support industry shed almost 20,000 employees, representing more than 20 per cent of its workforce. Despite this unfortunate situation, it is important to note that the decline in mining is the result of a cyclical downturn in a market that is fundamentally sound, and not indicative of a structural problem. Many of the world’s industrialized nations have implemented large-scale fiscal stimulus packages in order to propel their economies out of recession. The more coordinated these initiatives are, the greater the expansionary effect will be on the global economy and the more the mining industry will benefit. In Canada, the federal government has pledged to inject nearly $30 billion into infrastructure projects in 2009 and 2010, while other levels of government are expected to contribute an estimated $9 billion to the effort. Increased credit flows and the multiplier effects of the fiscal stimuli are beginning to work their way through the economic system. Some positive economic signs have already begun to emerge. Consumer spending, which comprises about two-thirds of domestic economic activity, has increased in the past few months. According to Manpower Canada’s Employment Outlook Survey for the fourth quarter of 2009, domestic mining companies feel more optimistic about their economic prospects then at any time in the past year. As well, organizations such as the Conference Board of Canada and the Bank of Canada, anticipate that the U.S. and Canadian economies will

expand by around two and three per cent, respectively, in 2010. This bodes well for laid-off workers and potential entrants to the mining sector. The average Canadian miner is close to 45 years of age and 40 per cent of the mining workforce will be eligible to retire by 2014. Mining companies will need to intensify their efforts in employee retention, attraction, leadership development, skills training and succession planning in order to be better-equipped to exploit the commercial opportunities that emerge once the economy recovers. Greater cooperation between governments, industry, academia, Aboriginal peoples and other stakeholders will also be integral to addressing the sector’s training, mobility and immigration requirements. MiHR monitors and addresses human resource challenges facing the mining industry. One of our key initiatives is the Mining Industry Workforce Information Network (MIWIN), launched in 2007. Its main goal is to provide accurate and timely labour market information to the mining industry and its stakeholders. Its chief feature is the ability to forecast future hiring requirements in the sector, by occupation. The forecast model covers all phases of the mining cycle, including exploration, extraction and primary processing. It generates hiring forecasts for a range of different hypothetical scenarios — depending on whether the economy is projected to expand, contract or remain static over the forecast period. To date, MIWIN forecasts have been produced for British Columbia, Saskatchewan and Ontario. The research conducted to support these studies shows that mining sector employment is much more volatile than is the case in most other sectors of the Canadian economy. Such employment is highly dependent on the level of international

minerals and metals prices, which are subject to wide fluctuations. In October 2009, MiHR began developing a pan-Canada labour market forecasting model. Since it will reflect the unique commodity mix of each province and territory, its employment projections will be regionally differentiated. Extensive primary and secondary research will be carried out to develop the model. For example, the project will include a survey of 20 to 30 large-scale mining employers in Canada, in order to elicit information about the occupational structure of the workforce, retirement projections and other parameters that will impact future hiring needs. The study will culminate in a detailed research report that outlines the implications of the forecasts for key mining industry stakeholders. Ultimately, the national MIWIN system will include a web-based query function, which will enable users to generate custom hiring forecasts, based on selected criteria such as geographic region and expected economic conditions. This capability will greatly enhance our ability to provide relevant and useful labour market information to our stakeholders. It will also provide the empirical foundation necessary to support industry efforts in areas such as attraction, retention, worker mobility and transition. Participation in MIWIN studies is voluntary; however, the greater the contributions, the better the information that can be provided. CIM www.mihr.ca

About the Author Sheldon Polowin, program manager, research and labour market information at MiHR, is responsible for supporting the development of MIWIN. spolowin@mihr.ca December 2009 / January 2010 | 85

supply side Why CSR in the mining industry matters to suppliers ❚ Jon Baird Corporate Social Responsibility (CSR) is a growing issue in industry in general, but particularly in the mining industry. The trend towards responsibility and sustainability — involving health and safety, the environment, human rights, community relations and other matters — affects mining suppliers just as it affects their clients, the mining companies. For more than 40 years there has been a global social justice movement that has demanded that corporations conform to CSR principles. In the past, companies rarely thought through their social responsibility in a comprehensive way. But today, corporations that do not meet the CSR challenge risk losing their “social license to operate.” The mining industry first stepped up to the challenge in a collective way in 2002 with the formation of the International Council on Mining and Metals (ICMM, www.icmm.com). In addition, over the last several years, both the Mining Association of Canada (MAC, www.mining.ca) and the Prospectors and Developers Association of Canada (PDAC, www.pdac.org) have developed programs — namely, Towards Sustainable Mining and e3 Plus, respectively — to help their members improve their practices. Concern over certain incidences in developing countries led the federal government to organize four two-day extractive industry CSR roundtables across the country in 2006, bringing together about 200 stakeholders representing all sides of the issue. This resulted in a report to Parliament in 2007, recommending action by the government. In March 2009, the government responded with a program of action, including an ombudsman-like CSR Counsellor office as well as a Centre 86 | CIM Magazine | Vol. 4, No. 8

for Excellence on CSR, hosted by CIM and supported by the Department of Foreign Affairs and International Trade. Industry, associations and the government have been taking steps to help our companies operating in Canada and abroad to learn about and meet their modern social responsibilities. Then, along comes Federal Bill C-300, a private member’s initiative that expects the government to define what CSR is and apply sanctions to Canadian companies in the extractive industries working in developing countries. This bill is close to third and final reading in the House of Commons. While it may sound reasonable at first glance, if this bill were passed into law, the practical result would be destructive for Canadian miners and their suppliers. First of all, while there are many CSR codes in the world, they are largely designed to cover actions of states and involve voluntary compliance. It will not be easy to come up with a legislated code in this complicated, contentious field that is fair to companies and individuals working in complex situations around the world. Second, virtually anyone can complain. Companies will be accused frivolously and be forced to make major expenditures to defend themselves. Many will be shown to be innocent, but will seriously lose reputation in the process. Third, the proposed sanctions are heavy – withdrawal of government support through Export Development Canada, investments by the Canada Pension

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

Plan and the services of our diplomatic and trade officials around the world. There is no doubt that our mineral exploration and mining industry must practice the highest standards in CSR wherever they work. What are needed now, however, are programs like MAC’s Towards Sustainable Mining and PDAC’s e3 Plus: A Framework for Responsible Exploration that will help companies learn and improve. What is not needed is a Canadian law applied extraterritorially that will negatively affect our companies’ activities around the world without getting at the root of the problem, which largely lies in the fact that many developing countries lack the governance and capacity to regulate a modern mining industry. Mining suppliers would be affected if projects on which they are working are shut down. They too could be dragged into the Bill C-300 legal process. Suppliers interested in stopping this misguided, unnecessary and unfair law should consult position statements on the MAC and PDAC websites and contact their local Member of Parliament to voice their objection. CIM www.camese.org

About the author Jon Baird, managing director of CAMESE and president of PDAC, is interested in collective approaches to enhancing the Canadian brand in the world of mining.

standards What’s your method? Selecting an appropriate commodity price ❚ Craig Waldie Commodity prices are fundamental to the estimation of mineral resources, mineral reserves and the economic analysis of a mineral project. In times of rapidly changing commodity prices, or at the extreme ends of a commodity price cycle, the Qualified Person (QP) has a difficult job in selecting an appropriate commodity price. Nevertheless, selection of reasonable technical and economic parameters, including commodity price, is essential to the determination of mineral estimates and is the responsibility of the QP. Under NI 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), section 1.2 incorporates CIM Definition Standards, which includes in the definition of a mineral resource the wording “reasonable prospects for economic extraction.” Therefore, the QP must select economic parameters, one of which is the commodity price, which will result in an estimate of a mineral resource that has reasonable prospects for economic extraction. Section 3.4(c) of NI 43-101 requires that disclosure of mineral resource and mineral reserve estimates include details of key assumptions, parameters and methods. QPs and companies are reminded that these details must be clearly stated with disclosure and must have a reasonable basis for their selection. CIM has recently provided guidance on their website to assist QPs in selecting an appropriate commodity price and discusses items to consider when determining a reasonable price. A QP may use various methods when selecting a reasonable commodity price. Long-term historical averages (10 to 20 years): Given the long life of most mining projects, the QP should not just consider prices in the last three years, but instead long-term historical prices, which have the benefit of removing price volatility from estimates. This, however, may lead to a material difference in the value of the project when benchmarked against current prices. Consensus prices: Consensus prices obtained by considering prices used by peers or as provided by analysts may be utilized in some cases to select a reasonable price. This

mac facts

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method has the advantage of providing prices that are acceptable to a wide body of industry professionals. Current commodity price: Use of current commodity prices presents a number of positives and negatives. In terms of positives, mineral resource and mineral reserve estimates in the technical report will reflect prices when the estimate was determined. On the negative side, at the top or bottom of a commodity cycle, current prices may dramatically overstate or understate the long-term value of the project. Also, using current commodity prices could require significant annual adjustments to a company’s estimates and may have implications for impairment testing of assets. Margin over cash cost curve: Commodity prices have a relationship with the world cash cost of production. In periods of high commodity prices, companies may increase stripping or process more marginal ores, which can increase the average cash cost of production. In periods of sustained low prices, reduced stripping and the mining of higher grades can reduce the average cash cost of production. The QP may consider adding a margin to the current midpoint on the world cash cost curve as a way of determining the commodity price. Contract pricing: Long-term contract prices may be used in some deposits where appropriate contracts are in place. These prices may be different than current market prices, but would reflect the company’s individual mineral resource and mineral reserve position over the term of the contract. In conclusion, the commodity price selected by the QP should match the profile of the life of mine and reflect the stage of development of the project. If a project is not likely to go into production until five or more years into the future, then it may be reasonable to consider a “long-term” average commodity price, whereas if a project is in production or is to be placed into production in the short term, it may be reasonable to consider the use of prices closer to the current price. CIM www.cim.org/committees/csa.-CIMquestions_April_14_2008.pdf

About the author Craig Waldie, senior geologist with the Ontario Securities Commission, is responsible for technical reviews of mining and exploration companies’ public disclosure and technical reports for compliance with NI 43-101. December 2009 / January 2010 | 87

eye on business Investing in Canada Implications of recent amendments to the Competition Act and Investment Canada Act ❚ Craig Brown The health and vibrancy of the Canadian mining industry is, to a significant extent, contingent on foreign direct investment and the active engagement of foreign industry participants. Two key laws that affect foreign investment in Canada are the Investment Canada Act (ICA) and the Competition Act, both of which were recently amended. The amendments to these acts, which came into force on March 12, 2009, have important implications for Canadian and foreign mining industry participants and the legal professionals that advise them. The amendments reflect two important, but somewhat conflicting, federal policy initiatives. First, in an effort to mitigate the impact of the current international economic slowdown, the amendments attempt to provide notice

to the world that Canada will not resort to protectionist policies. This position is reflected in the amendments, which substantially reduce the scope of intervention by the government in connection with foreign investment. Somewhat in opposition to this policy position, however, is the introduction of a new review process under the ICA, which allows the government to block foreign investments that could be injurious to Canada’s national security.

Implications of particular interest to mining industry participants Deal size trigger for review dramatically increased under the ICA: Major foreign players in the mining industry will be encouraged by the amendments that are designed to reduce the number

of foreign investments that are subject to review under the ICA. The brightline threshold for review for direct acquisitions of Canadian businesses (other than acquisitions of cultural businesses) by foreign investors has been increased from CDN$312 million (based on book value) to CDN$600 million (based on enterprise value). This new threshold amount will increase over a five-year period to one billion dollars, adjusted according to inflation thereafter. No definition of enterprise value was included with the amendments, but is anticipated to be prescribed by subsequent regulation. The lower review thresholds that previously existed for Canadian businesses engaged in transportation services (including pipelines) or uranium production have been eliminated. Such businesses are now subject to the same higher threshold of CDN$600 million. New national security test under ICA: While the higher review threshold clearly encourages foreign investment in Canada, potential investors may be troubled by the new review process for investments that could be injurious to national security. Until such time as a definition of “national security” is provided, the applicable vague test “could be injurious to national security,” is ambiguous and arguably gives the Ministry of Industry and the Federal Cabinet wide discretion to decide which transactions they will review. This new review process test applies, regardless of the size or the sector in which the foreign investment is proposed, and is, accordingly, an important consideration for industry participants of all sizes. Concerns about the discretionary nature of these new national security review provisions may be heightened in light of the recent experience with similar national security review provisions in Australia. Relying on equally

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eye on business ambiguous language in Australia’s Foreign Acquisitions and Takeovers Act (1975), the Australian government vetoed a $1.8 billion offer by China Minmetals Group to acquire control of Oz Minerals Ltd. Although Oz Minerals’ operations are not sensitive from a national security perspective, one of its properties in Australia is located in close proximity to a highsecurity weapons testing facility operated by the Australian Armed Forces. The decision by the Australian government illustrates the broad discretion such ambiguous language affords. It is too early to know if the Ministry of Industry and the Federal Cabinet will exercise their discretion so widely, but it will undoubtedly be an issue of concern for foreign investors. New onus of proof for culpability under the Competition Act: Amendments to the Competition Act are no less significant. The amendments represent a departure from the criminal conspiracy section of the Competition Act by eliminating the requirement to show that an agreement among competitors will lessen or prevent competition unduly. Under the new legislation, such agreements are per se illegal where competitors agree, conspire or arrange among themselves to fix, maintain, increase or control prices; or fix, maintain, control, prevent, lessen or eliminate supply of a product; or allocate sales, territories, customers or markets for the production or supply of a product. Competitors responsible for any of such actions are guilty of a criminal offence, with penalties that have increased to a new maximum of $25 million for each count and up to 14 years of imprisonment. New dominance abuse provisions with serious penalties: Major mining industry participants will have to pay careful attention to new abuse of dominance provisions. Administrative monetary penalties of up to $10 million for a first order and up to $15 million for subsequent orders have been introduced as significant additional disincentives to anti-competitive conduct by dominant firms that substantially

lessen or prevent competition. Given the significance of such potential penalties, industry majors will need to more critically assess how their aggressive business practices may be impacting the markets in which they are active. New information request powers could cause delays: Consistent with the amendments to the review thresholds under the ICA, amendments to the Competition Act increase the thresholds for mandatory pre-merger notification to $70 million from the previous $50 million level and will be revised annually based on changes in national GDP. Replacing the previous 14- and 42-day waiting periods for short-form and long-form notifications is a “second-request” type of process for merger notification and review, whereby an initial 30-day waiting period applies, which can be extended by the Commissioner of Competition requiring the production of additional information. The second request for information could be far-reaching and consequently materially impact compliance costs and delay the closing of proposed transactions. To encourage compliance with the pre-merger notification regime, the amendments to the Competition Act introduce a mechanism for the imposition of significant administrative monetary penalties of up to $10,000 per day for non-compliance.

Conclusion and recommendations Many of the amendments discussed above will need to be clarified by new regulations and guidelines to explain how they will be administered and enforced. Until such guidance is available, we are making the following recommendations. • Businesses with power in one or more markets should review and appropriately revise their trade practices in light of the significant potential administrative monetary penalties that have been introduced for anti-competitive acts that substantially lessen or prevent competition.

• All ongoing collaborations with competitors should be re-examined to ensure they do not offend the new per se offence for agreements between competitors to fix prices, allocate markets or customers, or fix output or supply. • Businesses should review and appropriately revise their competition law compliance programs in light of the amendments, to ensure they avoid behaviour that may violate the Competition Act and to ensure they are not unnecessarily imposing restrictions on their sales forces that are no longer legally mandated. • Businesses should be mindful that the transaction size thresholds for merger notification under the Competition Act is now $70 million (up from $50 million) in assets or gross revenues. • Foreign investors considering investments in Canada need be aware of the increase in the review threshold under the ICA to $600 million based on enterprise value up from $312 million based on the book value of assets. Uranium mining and pipeline industry participants should consider taking advantage of the fact that there will no longer be lower review thresholds for businesses in such industries. • Businesses must be mindful that the amended ICA now incorporates a basis for reviewing investments on the grounds of national security and such power has a retroactive effect as of February 6, 2009. The ambiguity relating to the new national security review creates new timing and execution risks that will have to be assessed by businesses and their legal advisors. CIM www.fasken.com

About the author Craig Brown is a partner at Fasken Martineau DuMoulin LLP’s Toronto office and chair of the firm's Private Equity Group.

December 2009 / January 2010 | 89

innovation Managing heat stress Collaboration benefits the mining industry

With a changing surface climate, greater depth and continued mechanization of larger equipment, Canadian underground mine workers have an increasing risk to be exposed to heat stress. This is not only a health and safety issue for the worker but also a productivity and cost issue for the mining company. Even before experiencing the more serious consequences of heat stress, heat syncope (fainting), heat strain and its associated fatigue can lead to a decline in both a worker’s physical performance and mental ability, which in turn can cause an increase in both non-specific lost time injuries and accidents. Heat exposure management, through specified work-to-rest protocols, can also reduce the productive time that could be expected from a worker. Heat control, through the use of more ventilation or cooled air, becomes a very expensive and possibly prohibitive constraint in deep, highly mechanized mines. Consequently, understanding how our bodies thermoregulate, and con-

trolling heat stress in such hostile environments is of major interest to the mining industry and the focus of a major Deep Mining Research Consortium (DMRC) effort. Over the past few decades, significant progress has been made in the understanding of human physiology during heat stress. However, despite industry’s extensive implementation of procedures to mitigate the development of heat stress symptoms, the risk of heatrelated injuries remains a major problem. Over the past 15 years, the University of Ottawa’s Human and Environmental Physiology Research Unit has been conducting a comprehensive and cutting-edge research program directed at advancing our understanding of the physiological

Photo courtesy of University of Ottawa

❚ Stephen Hardcastle and Glen Kenny

A researcher from the University of Ottawa participating in field-based heat stress research to explore problems in hot and deep mines. The subject is fitted with thermocouple patches for the measurement of skin temperatures and an oxygen analyzer to estimate the metabolic energy used during work at Agnico-Eagle and Vale Inco mines.

EXPLORING SOLUTIONS SALES / RENTALS / SERVICE / 1.800.GLENTEL 90 | CIM Magazine | Vol. 4, No. 8

innovation effects and consequences of heat stress in at-risk populations and, in particular, industrial workers, such as miners, performing in arduous environments. This unit’s research facility presently houses the world’s only functional human air calorimeter with a capacity to accurately measure, minute by minute, the rates of wholebody heat exchange, as well as the change in body heat content. Combining the traditional physiological parameters (core and skin temperatures, sweat-rate etc.) with wholebody calorimetry has led to the development of valuable new insights on how environmental and non-environmental factors affect the development of thermal stress in humans. Since late 2004, the University of Ottawa, in partnership with industry through the DMRC, and with government through Natural Resources Canada’s CANMET Mining & Mineral Science Laboratories, have conducted studies to examine the problems faced by the industry as it relates to personnel heat exposure issues. The early phases of the program involved the evaluation of the physical demands and energy cost of common mining occupations under non-heat stressed conditions at Agnico–Eagle’s LaRonde Mine. This work demonstrated the diversity and differing intensity of the numerous tasks miners perform in Canada’s mechanized operations. It also showed how general services, bolting and shotcrete have significantly higher metabolic energy expenditures than the production-orientated drill, blast and mucking occupations. Further studies at Vale Inco’s Garson Ramp project showed that mine rescue activities have much higher average energy expenditures — nearly twice that of any of the other mining occupations. Once categorized in situ at the mines, all the activities were replicated under controlled environmental conditions in a laboratory. Here, volunteers could be monitored continuously and in greater detail to establish energy input and output, changes in core and skin temperatures, heat loss and heat storage.

Also, depending on the temperature, the laboratory could identify which miners performing which task are increasingly at risk. This has since led to the first continuous realtime studies into the insulative properties of clothing worn by miners and their work-to-rest cycles using human subjects in a calorimeter. This work will lead to establishing the optimal clothing and defining best practices for work and rest. Future studies are planned to actually define the effects of heat acclimation on the human body, how it is attained and over what period it is lost. All of this work will be compiled into a guideline/best practices document for the industry. However, there are numerous other considerations that affect human thermoregulation, including hydration, age, fitness, gender, health and medication. In association with DMRC, the Ontario WSIB is funding studies looking at age and fitness in light of the aging mining workforce. NSERC supported the innovative development of a micro-climate cooling garment using membranebased technology. Most recently, the

Canada Foundation for Innovation committed to financing the continued improvement of the calorimeter and associated facilities. The management and other nonphysiological aspects of this project — such as addressing the accurate measurement of environmental variables in deep mines — have been undertaken by CANMET-MMSL. Industrial champions for this work as it progressed included Agnico-Eagle and, more recently, Vale Inco. Other bodies participating in the research include the Mines and Aggregates Safety and Health Association’s Ontario Mine Rescue Program. This is an excellent example of how academic and government research, funded by industry, research and safety agencies, can work together to help mines be safer and more productive. The outcome of this work is also garnering the interest of the military and agencies such as Health Canada as they consider which sub-populations may be at risk in hot climates and with continuing climate change. CIM www.nrcan-rncan.qc.ca

Article previously published in Issue 2 of InnovaMine. © Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2009.

About the authors Stephen Hardcastle is a senior scientist with Natural Resources Canada, head of mine ventilation research within CANMET Mining and Mineral Sciences Laboratories, and an Adjunct Professor at the Laurentian University. Currently, he is managing a suite of heat stressoriented projects for Canada’s Deep Mining Research Consortium and the research aspects of a ventilation-on-demand initiative with the Centre for Mining Innovation. Glen Kenny, a professor and the director of the Human and Environmental Physiology Research Unit at the University of Ottawa, is a leading authority in the area of human thermoregulation. His work is directed at improving the understanding of the human physiological responses to work performed in adverse environments. This research is playing a key role in providing valuable information aimed at improving the health and safety of Canadian workers.

December 2009 / January 2010 | 91

women in mining Meet Miss Hollywood A grandmother with heavy equipment operation in her blood ❚ Heather Ednie After a year of looking at an ad she had clipped out of a newspaper and stuck on her fridge, Karen Kabatey finally worked up the nerve to take action — she applied to be a heavy equipment operator at De Beers Canada’s Victor Diamond Mine in northern Ontario. Now, two years later, Kabatey couldn’t be happier about her career choice. “I love it here,” she avows. “It’s very challenging; definitely the best job I’ve ever had. I’m also given the opportunity to advance, to learn how to operate other equipment, and with plenty of training. I started on the trucks but currently I’m operating a D6 dozer.” Before her job at Victor Mine, Kabatey drove a school bus outside Thunder Bay as well as tandem trucks and front-end loaders for the 10-4 Truck Driving Academy. Her previous experience also includes work in community and social services. However, nothing compares to the challenge and satisfaction she derives from working at Victor. So, how does one go from social services to heavy equipment operation? Kabatey’s father, who had operated a Euclid at an iron ore mine, had told her that she was a good driver, and so the idea of operating heavy equipment remained in the back of her mind as something to pursue “one day.” Despite her enthusiasm, Kabatey admits that she did have some initial stage fright. “When I first arrived at the site and saw the camp from the bus, I thought, ‘What am I getting myself into?’” she recalls. “Then, when I saw one of the trucks up close, I thought, ‘maybe I should be a cleaner instead.’ I was intimidated by their size. But once I got on a truck, I loved it.” Kabatey says she appreciated the serious approach to training onsite, which included several days of instruction before getting behind the 92 | CIM Magazine | Vol. 4, No. 8

wheel of a truck. “The trainer did an excellent job,” she recalls. “You become familiar with the roads, the site and where the different areas and dumps are. You learn about safety, how to go up and down ramps in different types of weather, how to use the breaks, etc. The first time behind the wheel I was nervous. But by the next day, I was fine on my own.” Equipment operators are responsible for more than moving and manipulating these gigantic machines. They are also required to know basic maintenance information about their equipment. “We do circle check inspections of the whole truck, inside and out, at shift change,” notes Kabatey. The number of Aboriginal women operating heavy machinery in Canadian mines is certainly not large, although Kabatey hopes to see more women from her community follow in her footsteps. “When I’m back home and I see native women, I like to encourage them along the same path I’ve followed. There’s no greater place to be than where I am now,” she adds. This determination and perseverance make Kabatey a role model for young women looking to build careers in the industry. De Beers Canada’s vicepresident of human resources, Ingrid

Hann, is inspired by women like Kabatey. “Coming up here to the Victor site, tackling those huge machines, and having the will to make it happen in a safe and productive way — that’s remarkable,” she explains. Kabatey laughs when asked if being a woman poses particular challenges at Victor. “Not here,” she says. “When I was working at the 10-4 academy, I noticed more people having issues with a woman instructor; they didn’t care for it. Here, we’re equal. Sure, there’s the odd comment from people here or there, but you put them in their place and they only do it once. I’m treated equally in every aspect of the job. I get the respect.” A self-confessed people person, Kabatey tries to maximize her time with her grandchildren and family during her two weeks off. However, she also loves being with her Victor family. “When I’m home, I can’t wait to get back here. It’s a very positive atmosphere. We have plenty of things to do, including using the gym facilities, pool games, ping pong and aerial games — not to forget the karaoke.” Last May, Kabatey participated as a panellist in the Women in Mining Forum at the CIM Conference and Exhibition in Toronto. Once word got around Victor that she was heading south to Toronto to share her experiences, she was given the nickname of “Miss Hollywood”; even her hardhat was adorned with stickers to that effect. “It was all great fun — everyone was very supportive of me,” she laughs. So, what’s next for Kabatey? To her, the answer is obvious, and not surprisingly, it involves another mammoth piece of equipment. “I want to operate the 992 loader,” she says with obvious enthusiasm in her voice. CIM www.debeerscanada.com

first nations Traditional knowledge matters ❚ Juan Carlos Reyes Canada needs to do more to protect the traditional lands that hold important cultural value for Aboriginal people. The potentially negative natural, social and economic impacts of any proposed project on areas surrounding traditional lands are usually only analyzed at the Environmental Assessment (EA) stage. Moreover, in most cases, EAs never go far enough in addressing permanent impacts on Aboriginal societies and traditional knowledge. Consequently, development is often permitted in areas far too sensitive to handle it, creating a negative view of specific projects and the industry as a whole. What role should the government play in protecting traditional land? It should assume responsibility for identifying potential risks and maintaining traditional lands in their pristine state. Protecting these sites, even from regional Aboriginal power struggles and internal political discord, is critical, especially because the short-term financial benefits of mining are occasionally seen as a license to abandon long-term planning. The struggle for long-term views in environmental planning is not uniquely Canadian. An issue faced by indigenous populations around the world, it was a key theme highlighted by the distinguished Canadian anthropologist Wade Davis in his CBC Massey Lecture entitled, “The Wayfinders: Why Ancient Wisdom Matters in the Modern World.” His insightful and inspiring views are paraphrased below. Davis said: In northern British Columbia, where I live, by an extraordinary accident or miracle of geography, three great BC rivers — the Skeena, the Nas and the Stiking — are born. The headwaters are within walking distance of a place that is sacred to all the First Nations of the northwest. The only other place where such a miracle of geography happens is in Tibet, where the Ganges is born. That area is so sacrosanct to a billion Hindus, Buddhist and Jains who live down-

stream, that you are not even allowed to climb the mountain. The idea of imposing industrial infrastructure would be so detested, that it would doom you, your clan and your lineage for all time. He added: In Canada we treat the land very differently. There are several industrial proposals, not the least which is a coal bed methane proposal by Royal Dutch Shell that could scatter 6,000 wells across the sacred head waters. What I find most interesting about such initiatives, environmental concerns aside, is what they tell us about ourselves. All you need to do in Canada is cobble together a company in Toronto with less history than my dog, secure sub-surface mineral rights online, promise the government a certain revenue flow, and you can secure the right to transform and irrevocably destroy a landscape for your own private interest! Davis emphasized: Other cultures inspire us to understand that there are other options, other ways of being. This is not to suggest that we should slip back to a pre-industrial past or deny indigenous people the genius of modernity. It is simply to suggest that we do have options and to expose the follies of those who resist change. We must fundamentally change the way we occupy this planet. Sixty percent of the world’s population depends on water that flows from the Tibet plateau. There has been no net accumulation of snow or ice there since 1950. Within our lifetime, the Ganges, a river that 500 million people depend upon for water, a river sacred to 800 million people, will become a seasonal river. In conclusion, Davis said: What is particularly touching is that indigenous people throughout the world have personally taken responsibility for these issues. I think it is time all of us too, take responsibility for a problem that is of our making. Like the people of Tibet who revere their rivers, Aboriginal people have, for centuries, relied on, harvested and utilized their traditional lands through traditional knowledge. In an age of short-term economic development, it is critical that we place greater emphasis on traditional knowledge of the land, and use it to forge new sustainable paths in land development in Canada and around the world. CIM www.learning-together.ca

About the author Juan Carlos Reyes is an Aboriginal consultant with efficiency.ca and the organizer of Learning Together. He is passionate about human rights and works tirelessly to help improve the lives of Canadian Aboriginal people. December 2009 / January 2010 | 93

engineering exchange Cover systems for reactive mine waste O’Kane Consultants help Vale Inco manage acid drainage at Whistle Mine ❚ Heather Ednie

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A view of Whistle Mine after implementing the closure plan

Photo courtesy of Vale Inco

Upon closure, many mines need to prevent acid rock drainage (ARD) with a dedicated system to control sulphide oxidation. Mine waste that contains sulphidic material, such as pyrite, becomes oxidized upon exposure to water and oxygen, resulting in accumulation of acidic pore-water and increases in metal concentrations. The mine waste can also contain minerals that neutralize the acidic pore-water; however, if the acid-neutralizing balance is not favourable, ARD will result as precipitation and snow melt flushes the pore-water. Managing ARD through collection and treatment, as well as through strategies that prevent sulphidic oxidation and migration of acidic porewater, are key aspects of mine closure. Mine waste cover systems provide the opportunity to control sulphide oxidation and migration of acidic porewater, and are the particular expertise of O’Kane Consultants. Since Vale Inco’s Whistle Mine, located about 30 kilometres north of Sudbury, Ontario, was shutdown in 1998, a multi-stage reclamation project has been successfully implemented. Over its approximate sevenyear operating life, about seven million tonnes of acid-generating waste rock were stockpiled on the Whistle site. A common method to control sulphide oxidation, and thus ARD, is to put the waste rock under water. The challenge lies in maintaining the water cover. “In Ontario, as well as many parts of Canada, we generally have a moisture surplus on an annual basis; however, it varies throughout the year,” explains Mike O’Kane, president of O’Kane Consultants. “We need to create an environment to keep the waste permanently under water, through topography, constructing dams, or backfilling the material into open pits. There are many cases in Canada where that is done success-

fully. In many situations, however, climate and site-specific constraints make this option challenging, which is when a cover system is required.” Several complicating issues were associated with decommissioning the Whistle Mine waste rock dumps (WRDs) in-place. First, due to the proximity of the WRDs to the open pit and a nearby creek, re-grading some of the WRD slopes to facilitate construction of an earthen cover system was not feasible. Second, a properly designed and constructed cover system would substantially reduce the infiltration of meteoric water at the cover surface, but would still allow for preferential ingress of oxygen through the underlying glacial till at the toe of the slope. Finally, seepage collection and treatment from the toe of the covered WRDs would be required for an indefinite period of time. Coupled with this fact, a spill from the collection system could result in significant environmental damage to the surrounding wetlands. In light of the environmental and economic liabilities associated with release of ARD to the surrounding ecosystem, Vale Inco elected to relocate the two WRDs to the open pit as a means of mitigating environmental

damage post-closure. Geochemical modelling demonstrated the effectiveness of backfilling the open pit and covering it in terms of isolating the acid-generating material from water and oxygen. Although the climate for this region has a moisture surplus on an annual basis, a water cover is not feasible for this site because of the absence of a pit lake and the relatively steep slope of the backfilled pit surface. Vale Inco implemented the project in phases. First, waste rock was backfilled into the mined-out pit between July 2000 and December 2001, with lime being added during backfilling to neutralize existing acidic pore-water. The water level within the backfilled pit will rise over time such that a portion of the waste rock would remain saturated. However, given that the upper portion of the backfilled pit will remain above the long-term water table elevation, an engineered cover system is required to control the influx of atmospheric oxygen to the acidgenerating waste rock. The third phase is a collection and treatment system for any contaminated waters that discharge from the pit overflow. O’Kane engineers designed and tested a multi-layer cover system,

engineering exchange which includes a layer that remains tension-saturated, and that inhibits the ingress of oxygen into the waste rock. O’Kane states that “the idea is to create a ‘blanket of water’, such that water is held in place by a layer of the cover system, as opposed to topography or dam walls, thus limiting oxygen ingress.” Data from the monitoring system that was built into the cover system indicate that it has substantially reduced oxygen and water ingress. Furthermore, the quality of water requiring treatment has improved substantially in the few short years since the cover was constructed. “The Whistle Mine project is the latest example of the full-scale application mine closure technology, the development of which is being led by Canadian researchers and practitioners,” says O’Kane, adding that the project won the Canadian Land Reclamation Association’s Tom Peters Memorial Reclamation Award. In some respects, the Whistle project was a pioneering venture. “In general, cover systems, as a mine closure technology, is young. There are still not many such full-scale projects that have been implemented and properly monitored in Canada. So Vale Inco’s commitment to monitoring the fullscale cover system will serve as a means of further demonstrating the technology for the mining industry.” The design of cover systems is an intricate process. The properties of all materials are tested in a laboratory, and the results are fed into a numerical model. In cases like Whistle Mine, before building a full-scale cover, field trials are done. “Because the waste rock was being moved back into the pit, the trials couldn’t be established on the existing waste rock pile as is normally done. So, an area about the size of a football field was lined, and waste rock was placed on it,” explains O’Kane. Three different cover system alternatives were constructed, tested and measured. Results from the trial were used to calibrate the numerical model for more reliable predictions of long-term performance of the fullscale cover system design. “A key aspect at Whistle is that the whole cover system is on about a 15

per cent slope, which can substantially influence cover system performance,” O’Kane adds. “Historically, cover system field trials have been constructed on flat surfaces, but Vale Inco committed to move more waste rock for the field trials to better simulate the actual slope that characterizes the backfilled pit.” During the trials, information about the water balance was captured with automated sensors and tools. When this information was fed into the model to design the full-scale cover system, it became necessary to alter the final cover system design from the original plan. This highlighted the importance of Vale Inco’s commitment to the field trials. O’Kane recalls that when his group joined the project, a surface water management system for the full-scale cover system had already been designed. It would use berms, ditches and rock drains to move water laterally across the slope. This design was part of the closure plan approved by the Ontario government in the late 1990s. “Our experience led us to believe that there would be many issues associated with landform stability and erosion with the plan,” says O’Kane. “Water wants to run downhill, so ditches and berms that attempt to control surface water laterally along a slope will eventually fail.” The O’Kane team changed the landform design to have the water run downhill, as it would tend to do naturally. Now, the catchment areas are vertically orientated. In addition to experience, O’Kane relied on advanced landform evolution modelling to arrive at this solution, geared towards hundreds of years of self-sustenance without human intervention. Explaining the functioning of the cover system, O’Kane says, “Imagine the layer immediately above the waste rock as a sponge. The cover system ensures that all the sponge’s pores are filled with water, minimizing the ability of oxygen to pass through the layer.” This cover layer consisted of a fine-textured, compacted clay-like material. Then, a robust growth layer was placed on top of it to protect the compacted clay layer from desiccation

and frost action. This thick growth medium will also provide adequate soil water for the development of a sustainable vegetation cover. Top soil and fertilizer were added to the growth medium’s upper layer to provide the nutrients needed to kick-start the growth of the planted grasses and legumes. Finally, for management of suspended sediments in runoff water, the reclamation project also incorporates three containment ponds located in the lower wetlands at the south end of the pit. The first of these, a collections pond, is the primary catchment. The sedimentation pond is designed to optimize the settlement of suspended particles. The polishing pond is the final settlement holding, from which samples are drawn and tested. If they meet discharge criteria, the water is finally released into the environment from this last pond. As vegetation matures and erosion is minimized, decommissioning of these ponds is expected to occur in five to ten years. According to O’Kane, holistic mine planning holds the key to improved closure design. He predicts that it will become the norm for mine planners and closure planners to work closely together from the outset of a mine’s development to optimize waste handling for more effective reclamation. “When that synergy becomes industry-wide, we’ll be leaps and bounds ahead of today,” O’Kane asserts. “This is happening in the mining industry to some extent, and many others are talking about it, but there is still a long way to go.” Another challenge will be to resist the instinct to think in the short term — and in closure planning, that’s in terms of decades. “In theory, cover systems must function as designed over the long term; and because a cover system is a key component of the landform, when designing for landform stability and erosion, you have to think ‘long term,’” adds O’Kane. “Landform design is becoming its own discipline, and we’re running models spanning hundreds of years.” CIM www.okane-consultants.com December 2009 / January 2010 | 95

student life | scholarships

Easing the load

Alléger de fardeau financier Bourses d’études, bourses de perfectionnement et prix de l’ICM

CIM scholarships, bursaries and awards CIM National, its branches, as well as the Canadian Mining and Metallurgical Foundation, offer numerous scholarships, bursaries and financial awards. The following table represents an abbreviated version of what students can apply for in 2010. For additional information on eligibility and how to apply, visit www.cim.org.

Scholarships/Bursaries/Awards Bourses/Prix Bourses d’études à l’intention des étudiants en technologie minérale ICM-TM Bourse d’études à l’intention des étudiants en géologie, génie géologique, génie minier et génie métallurgique ICM-TM Edmonton Branch Mining Engineering Scholarships Edmonton Branch Resource Industry Scholarship Walter Bish Scholarship Bourse de l’Institut canadien des mines, de la métallurgie et du pétrole CIM Saskatoon Branch Dependent Children and Student Member Scholarship Program Taking Flight Award Caterpillar Inc. and its Canadian Dealers Scholarship Scotiabank and Scotia Capital Markets Scholarship D.A.R. Kay Memorial Iron & Steel Section Award

CIM Scholarship for RDPC High School Students CIM Scholarship

CIM Trades Scholarship John Kovala Memorial Scholarship Rory Kempster Memorial Earth Science Scholarship André Laplante Memorial Scholarship CIM Northern Gateway Branch Student Awards Program

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

Amount/Montant (Number/Nombre)

L’ICM national, ses sections ainsi que la Fondation canadienne des mines et de la métallurgie offrent de nombreuses bourses d’études, bourses de perfectionnement et plusieurs prix en argent. Le tableau suivant représente une version abrégée des possibilités offertes aux étudiants en 2010. Pour plus d’information sur l’admissibilité et les modalités d’inscription, visitez le www.cim.org.

Apply by/ Date limite

For more information/ Pour plus d’information

Sponsors/Commanditaires

$750 (3)

13 janvier 2010

mleroux@cegepth.qc.ca

Section Thetford Mines de l’ICM

$1,500 (1)

13 janvier 2010

mleroux@cegepth.qc.ca

Section Thetford Mines de l’ICM

$2,000 (2)

January 18, 2010

fpoelzer@nacg.ca

CIM Edmonton Branch

$1,000 (1)

January 18, 2010

fpoelzer@nacg.ca

CIM Edmonton Branch

$1,500 (1) $600 (2)

January 18, 2010 January 31, 2010 & September 30, 2010 February 15, 2010

fpoelzer@nacg.ca jacqueline.savoie@borealc.on.ca

CIM Coal and Industrial Minerals Society CIM Sudbury Branch

jade.douglas@wardrop.com

CIM Saskatoon Branch

April 15, 2010 April 15, 2010

www.cim.org www.cim.org

$2,000 (1)

April 15, 2010

www.cim.org

Up to $2,500 (Canada) or $4,000 (international) (1) $600-$1,000 (1-2) $1,000 (if in 1st year) or $2,000 (if in 2nd year) (1) $1,000 (1) $1,000 (1) $2,000 (1)

April 30, 2010

metsoc@cim.org

De Beers Canada and Rio Tinto Canadian Mining and Metallurgical Foundation Canadian Mining and Metallurgical Foundation The Iron and Steel Section of the Metallurgical Society of CIM

April 2010

CIM Thompson Branch

May 1, 2010

Thompson Communities Foundation gail.rousseau@sd5.bc.ca

May 1, 2010 May 28, 2010 May 31, 2010

gail.rousseau@sd5.bc.ca ron.sinkiewicz@goldcorp.com brose@xstratazinc.ca

CIM Crowsnest Branch CIM Red Lake Branch CIM New Brunswick Branch

$5,000 (1)

June 11, 2010

jzinck@nrcan.gc.ca

$500 (11)

By end of school year Contact the guidance professionals at each of the district high schools

Canadian Mineral Processors Society of CIM CIM Northern Gateway Branch

$5,000 (distributed among recipients) $1,000 (4) $2,000 (1)

CIM Crowsnest Branch

student life | scholarships

Scholarships/Bursaries/Awards Bourses/Prix

Amount/Montant (Number/Nombre)

CIM Northern Gateway Branch Student Awards Program

$2,500 (1)

Canadian Institute of Mining (Kamloops Branch) Bursary

Depends on the number of accepted applicants ~$750 (2)

Apply by/ Date limite

For more information/ Pour plus d’information

Sponsors/Commanditaires

By end of school year Contact the guidance professionals at each of the district high schools August 31, 2010 rallen@smsequip.com

CIM Northern Gateway Branch

September 17, 2010

finaid@tru.ca

CIM South Central BC Branch

Canadian Institute of Mining (Kamloops Branch) Bursaries Centennial Scholarship

$1,998 (1)

September 30, 2010

jacek.paraszczak@gmn.ulaval.ca

J.D. (Pat) Patterson Memorial Scholarship

$1,500 (1)

September 30, 2010

jacek.paraszczak@gmn.ulaval.ca

Ken Hildebrand Memorial Scholarship

$2000 (1)

September 30, 2010

jacek.paraszczak@gmn.ulaval.ca

Donald W. MacFadgen Memorial Scholarship Ian Muirhead Memorial Scholarship

$500 (1) $3,000 (1)

September 30, 2010 September 30, 2010

engineering@dal.ca hooman@ualberta.ca

CIM – Maintenance Division Bursary for Engineering CIM (Sudbury Branch) Rudolph (Rudy) Kneer Memorial Bursary CIM Bursary Les bourse de l’Association féminine de la Section de Montréal/The CIM Montreal Women’s Association Scholarships Jim Harling Memorial Bursary

$819 (1)

October 8, 2010

financialaid@laurentian.ca

CIM Maintenance and Engineering Society CIM Maintenance and Engineering Society CIM Maintenance and Engineering Society The Mining Society of Nova Scotia of CIM CIM Edmonton Branch, in conjunction with the Alberta Chamber of Resources and the University of Alberta School of Mines (Note: This is 1 of 10 scholarships available through ACR) CIM Sudbury Branch

$1,100 (1)

October 8, 2010

financialaid@laurentian.ca

CIM Sudbury Branch

$1,150 (1) $1,000 (2)

October 8, 2010 23 octobre 2010

financialaid@laurentian.ca angelina.mehta@mcgill.ca richard.simon@polymtl.ca

CIM Sudbury Branch Association féminine de la Section de Montréal de l’ICM CIM Sudbury Branch

Section Harricana de l’ICM Section Harricana de l’ICM

Canadian Institute of Mining and Metallurgy Bursary Bourse Irene et Arthur Foley

Cameco Mine and Mineral Process North American Engineering Scholarship Les bourses d’études Roch Bélanger Les bourses d’études Roch Bélanger

Determined by November 26, 2010 interest generated (1) Determined by November 26, 2010 interest generated (1) $3,000 (1) 30 novembre 2010

USD$5,000 (6)

December 1, 2010

christine.cowtan@ cambriancollege.ca christine.cowtan@ cambriancollege.ca Le Bureau des affaires étudiantes de l’École Polytechnique de Montréal www.cim.org

$750 (1) $1,500 (1)

4 décembre 2010 4 décembre 2010

mbruneau@cablevision.qc.ca mbruneau@cablevision.qc.ca

CIM Sudbury Branch La Fondation canadienne des mines et de la métallurgie Cameco Corporation

December 2009 / January 2010 | 97

student life | scholarship winners Rising stars of the mining industry CMMF scholarships awarded ❚ Marlene Eisner year’s winner of the Scotiabank and Scotia Capital Markets $2,000 scholarship. Anderson was in first-year engineering when she realized it wasn’t for her. “I decided that a life behind a computer desk wasn’t as interesting as getting out into the field, so I switched to geology,” says the straight-A student. Once in geology, Anderson turned her attention to mineral exploration. Part of that interest stems from her love Left: Maegan Ayotte in the concentrator at the Rio Tinto Talc mine. Right: Melissa Anderson heads out to an exploration camp at Great Bear Lake, Northwest Territories. of camping and hiking, but she says it’s more than that. “There is and every day there was something something about being with nature The Canadian Mining and different going on.” and problem solving,” she explains. Metallurgical Foundation’s two scholOne of her best memories was her “I can’t put my finger on it, but I’ve arship programs — the Scotiabank second summer working underground been lucky enough to find my passion and Scotia Capital Markets shifts with Cementation as they were at a very young age.” Scholarship and the Caterpillar and sinking a shaft. “They put us on 12Her goal of grassroots exploration its Canadian Dealers Scholarship — hour shifts and that was a lot of fun. I in remote areas was solidified after she were established to support people was given quite a lot of responsibility worked during a summer for Alberta pursuing careers in the minerals and got to do a lot of hands-on work. I Star Development Corp in the industry. This year’s deserving industhink that’ s what a lot of engineering Northwest Territories on uranium and try hopefuls quickly discovered that students should do.” IOCG exploration. "One of the best being chained to a desk is not someThe biggest challenge for Ayotte will thing they foresee in their futures. parts of that job was being able to take be the transition from school to the real a helicopter to work every morning,” work environment. “When you come Anderson says. Remote areas, howWorking in the mines lit a fire out of university, you have been taught ever, do present challenges. “Being in Maegan Ayotte, this year’s winner the ‘book-form’ of engineering; it’s a remote camp where you are often of the $2,000 Caterpillar and completely different once you get on the only female is a situation that has its Canadian Dealers Scholarship, is a site. There’ s also a huge age difference gotten better with time, but it’s some22-year-old fourth-year mining engiamong the mining engineers out there. thing you have to be able deal with.” neering student at Queen’s University. Most of them are older and have a ton Ayotte says her academic path began Next fall she will begin a master’s of knowledge and experience — it’s in exploration geochemistry. “I’d like in life sciences, but a summer job with kind of intimidating.” Cementation working at a mine to work in Canada,” she says, “probaAyotte plans to go on for her mas- bly in exploration, most likely in changed her career choice. ter’s degree in mineral economics and remote areas in camp settings, and “I wanted to go to medical school. says the scholarship money will help maybe eventually internationally.” But after I had worked for a summer in pay for tuition. mining, I realized that I wasn’t enjoyAnderson says winning the ing my program. Getting into medical scholarship will help with tuition school was no longer what I wanted.” Life behind a computer desk and living expenses. “The scholarWorking at the Nickel Rim mine in not her cup of tea ship money gives me time to work Sudbury opened up a new world for Melissa Anderson, a 23-year-old on my thesis.” CIM Ayotte. “I thought it was so interesting. honours geology student at There were so many problems to solve Manitoba’s Brandon University, is this www.cim.org/about/foundation.cfm 98 | CIM Magazine | Vol. 4, No. 8

Fools for gold The gold mining mavericks of Timmins ❚ Gillian Woodford

hose hastily dispatched words kicked off the great Porcupine Gold Rush 100 years ago. Since that time, billions of dollars worth of gold have been excavated from the Timmins area, but sadly, few of the adventure-seekers who originally staked the “Big Three” mines – Dome, Hollinger and McIntyre – came out any richer than when they first paddled into that rocky, gilded land.

In the spring of 1909, prospector Jack Wilson headed for Porcupine, near what is now Timmins, Ontario, convincing his old pal and fellow gold-hunter Harry Preston to join him. The pair lined up a crew, headed into the bush and immediately started prospecting. A restless Wilson soon wandered down to Sudbury to check out a rumoured silver strike, leaving Preston behind to watch the site. Preston kept busy and on June 6 took what must be one of the luckiest tumbles in history. While surveying the dome-shaped outcroppings on the site that afternoon, he slipped on some moss, which caught in his boots and was dragged down with him. Looking up, Preston saw that the moss had been covering a large vein of gold encrusted in the quartz. With this news, an excited Wilson hotfooted it to Chicago to inform his backers, again leaving Preston behind. That’s when Preston uncovered an even bigger vein with great blobs of

From the Timmins Museum Collection

The Golden Staircase

Sandy McIntyre

gold undulating down out of the quartz. It was so rich that it became known as the “Golden Staircase.” According to Porcupine lore, when Wilson and his grubstakers arrived, they immediately inked a new deal, bringing a disgruntled Preston on board with the promise of a bottle of whiskey. The man who discovered both showings had to split 40 per cent, plus a thousand bucks, with the four other men on the team — oh, and that bottle of whiskey. Wilson did well with the initial deal, snagging a 10 per cent interest and a company directorship when Dome Mine was incorporated, but he reportedly lost it all in a wheat venture. Preston is said to have died des-

titute, forced at the end to beg for handouts from the very company he helped found.

The wealthy barber Spurred by the Dome strike, another pair of prospectors soon arrived on the scene. Benny Hollinger, a barber by trade, and Alec Gillies headed west of Dome to check out a site near Pearl Lake. It had previously been staked, but soon abandoned by prospector Reuben D’Aigle, now famous for one of the most spectacular near-misses in mining history. Working not two feet from where D’Aigle had abandoned his search, Hollinger struck gold. “Benny was pulling moss off the rocks a few feet December 2009 / January 2010 | 99

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

From the Timmins Museum Collection

away, when suddenly he let a roar out of him and threw his hat to me,” recalled Gillies. “The quartz where he had taken off the moss looked as though someone had dripped a candle along it, but instead of wax it was gold.” Hollinger’s backer famously sold the claim to Noah Timmins — the town that sprung up near the mines was named for him in 1912 — for the then unheard of sum of $330,000. But the fates did not smile on Benny Hollinger for long; the young man quickly went through his share and died a few years later of a heart attack — some say a result of Benny Hollinger and Alec Gillies his hard-living ways. It is rumoured that Alec Gillies, like Jack Wilson, lost his fortune in a Hans Buttner. McIntyre had wheat investment gone bad. absconded from his native Scotland, dropping his wife and his name — The wild rover Alexander Oliphant — for adventure Within days of Hollinger’s and in the Canadian wilds. McIntyre and Gillies’ arrival, Sandy McIntyre pad- Buttner prospected a site between the dled into Porcupine with his partner Dome and Hollinger finds, hoping the

others’ luck would rub off on them. It did. They soon found gold. McIntyre peddled his claim to various potential investors, including Timmins, but the deals always fell through. Legend has it McIntyre eventually sold his interest for a pittance — around $8,000 — and blew it away on a beautiful team of horses and an extravagant tour of Europe. His own version was a little different. “Why, I spent it on the drink and such,” he told prospector-turned-historian Arnold Hoffman. McIntyre was granted a pension from the incorporated mine bearing his name, but like all the others, he died broke. Today, the “Big Three” are owned by Goldcorp. Dome Mine is still operating — and profiting from the current gold boom — making it Canada’s oldest and longest running gold mine. Hollinger Mine ceased operation in 1968, having yielded over 19 million ounces of gold — Canada’s biggest ever producer. And McIntyre Mine closed in 1988, but Goldcorp is currently investigating the possibility of re-opening it and Hollinger as open pit mines. CIM

cim news Projet Malartic

Western Copper VP speaks at luncheon

par François Jacques

Vancouver Branch kicks off new season

C’est en octobre dernier devant une soixantaine de participants à une conférence de la section Thetford Mines de l’ICM que Monsieur Bryan Coates, vice-président et chef de la direction financière de Corporation Minière Osisko, est venu décrire le méga projet aurifère Malartic, qui deviendra le plus gros producteur d’or au Canada après sa mise en opération en 2011. Un investissement d’environ 1 milliard $ sera requis dont 330 millions $ ont déjà été dépensés en exploration et développement. Plus de 600 000 mètres de forage au diamant ont été effectués sur ce dépôt minéral situé en bonne partie sous la ville de Malartic. Les réserves prouvées et probables de 6.3 millions d’onces d’or et 2 millions d’onces indiquées vont permettre une production en continu sur une quinzaine d’années au rythme de 500 000 à 650 000 onces par année. Le nombre d’employés requis durant la construction est d’environ 800 et 465 employés permanents qui travailleront durant la production. Des camions d’une capacité de 240 tonnes chacun transporteront le roc jusqu’à la structure de cette mine à ciel ouvert, une première en Abitibi où toutes les autres mines sont souterraines et à tonnage plus modeste. Ce changement historique a posé certains défis au niveau de l’acceptabilité sociale. Osisko a quand même réalisé une étude d’impact environnemental et traversé avec succès les audiences du BAPE (Bureau d’audiences publiques en environnement). Osisko a obtenu son permis en août dernier. La relocalisation de 140 résidences et la reconstruction de 6 édifices communautaires (écoles, garderies, CHSLD, etc.), a posé certains défis en voie de réalisation. Le respect des citoyens et de la communauté est la clef du succès d’une telle opération qui nécessite des déboursés de près de 60 millions $ mais qui résultera en une équation gagnant-gagnant. ICM

L’auteur François Jacques est président de la section Thetford Mines de l’ICM.

By Alex Doll

From left to right: Derek Thorkelson, Sheila Stenzel, Alastair Sinclair and Sean Waller

The CIM Vancouver Branch held its first luncheon of the 2009-10 season this past September. The event kicked off with a special presentation by CIM District 6 vice-president Sean Waller, to three Vancouver-based winners of CIM awards. Two of the winners had been unable to attend the CIM Conference and Exhibition in Toronto last May to receive their awards. Alastair Sinclair received the Selwyn G. Blaylock Medal. Honoured to be presenting the award to one of his former professors at UBC, Waller confessed to remembering and understanding “a little bit” of Dr. Sinclair’s course. Derek Thorkelson accepted the Barlow Memorial Medal on behalf of his co-authors Julie Hunt and Tim Baker, both from Australia. The paper, “A review of iron oxide coppergold deposits,” was a multinational and multidiscipline effort. The awarding of the Order of Sancta Barbara to Sheila Stenzel was

recognized by Vancouver Branch chair Patty Moore, who also congratulated Stenzel “for her untiring efforts and contributions to the mining industry and community through her leadership of the Mineral Resources Education Program of BC.” The event’s keynote speaker was Paul West-Sells, executive vice-president of corporate development, Western Copper Corporation, who spoke about the development of the Carmacks Copper project in central Yukon. The project is one of the first to go through the new Yukon YESAA permitting process — a boon for Western Copper, the local communities and for the territory as a whole, according to West-Sells. The CIM Vancouver Branch would like to thank Inspectorate PRA Metallurgical Division for sponsoring the luncheon. CIM

About the author Alex Doll is the past chair of the CIM Vancouver Branch. December 2009 / January 2010 | 101

cim news | award winners The rising tide of success Eira Thomas strikes balance between work and family By Heather Ednie What a year this has been for and expand the resource. We Eira Thomas, executive chairman focused on drilling kimberlite R2, and director of Stornoway and we hit a real homerun, basiDiamond Corporation. A field cally quadrupling the tonnage. program at Stornoway’s Renard An updated 43-101-compliant project in Quebec yielded major resource estimate is nearing comresults; Thomas became a new pletion and we are increasingly mother; and CIM awarded her confident Renard will go on to be the Past President’s Memorial developed as Quebec’s first diaMedal for outstanding contribumond mine, with an aim to begin tions by an individual under the production in 2013.” age of 45 — a recognition that is Thomas — and Stornoway — very well deserved. are known for a focus on new Thomas’ introduction to geoltechnologies through partnerogy came at a very early age, ships with other companies and when she’d accompany her academia. “Diamond exploration father, a mining engineer-turnedis a high-risk undertaking and we prospector. She developed a fever are constantly looking for ways to for the work and for the beauty of reduce that risk and increase our the Canadian North. As a geolochances of success,” Thomas gist with Aber Resources Ltd. says. “The more we understand (now Harry Winston Diamond about the origin of diamonds and Corp) in the 1990s, Thomas led diamond deposits, the better able Eira Thomas and Matt Manson, president and CEO of Stornaway Diamond Corporation, at the Quebec City diamond display in 2007 the field exploration team that we are to fine tune our explodiscovered the Diavik Diamond ration strategy to find future project pipes in 1994 and 1995. deposits, hopefully at less cost.” In 1997, Aber promoted her to vice-president, exploConsequently, Stornoway has supported research to ration. After two years in that position, she became presi- advance the understanding of diamonds and kimberlites at dent of Navigator Exploration Corporation, then of multiple campuses across Canada. New technologies have Stornoway Diamond Corporation. She sits on the board of a also helped to bring the cost of diamond exploration down number of companies and organizations, and previously and shorten the time needed to make a discovery. Stornoway held the position of president and CEO of Stornoway has partnered with independent technical groups and laboDiamond Corporation. Over the years, Thomas has received ratories to develop proprietory techniques in geophysics and numerous awards and honours, including being named one mineral processing, specifically designed for kimberlite of “Canada’s Top 40 under 40” and “Canada’s Most Powerful exploration. In those types of partnerships, Stornoway often Women: Top 100.” provides the initial seed capital to develop the technology, in “I’ve been very fortunate in my career. From early on, I exchange for lower processing rates over time. was involved in prospective projects that were technically If diamonds are Thomas’ passion, then field work is her sound,” Thomas recalls. “I caught the rising tide of a suc- love. “It’s one of the things I love most about the business,” cessful project at Diavik and had opportunities to learn all she says. This year was quiet, due to the market situation and aspects of the business. I’ve been able to take those experi- the company’s focus on Renard. But expectations are that the ences and turn them into new opportunities.” level of field work will be expanded in 2010. She will be Although Stornoway has 13 active holdings, the major returning to the field, though, with a new partner by her side. focus of the past year has been on its Renard project in In 2009, Thomas became a new mother to Aven, whom Quebec. “We’ve been shepherding Renard through prefeasi- she named after a northern flower. She hopes to bring Aven bility and are hoping now to make a final production deci- into the field. “I had wanted to get her out there before she sion in 2011,” Thomas explains. “We’ve had great success was walking, but other than our advanced work program at with our drilling this year. In December 2008, we completed Renard, we did very little field work in 2009. I worked with our first economic assessment. It was positive, but still a geologist in the past who brought her few-months-old pretty skinny. In 2009, we launched a modest program to try baby with her to the bush,” Thomas says. “She’d strap the 102 | CIM Magazine | Vol. 4, No. 8

cim news

Thomas with helicopter pilot Bruce Holloway (left) and driller Jody Reinhardt (right).

baby on her back and head out into the field to map — it really worked out well because the baby was at the stage where he wasn’t that active. Next year, I can bring Aven out, but as she’ll be a toddler, it will be more of an adventure.” Given the opportunity, Thomas would spend a great deal of time out in the field. But the reality is, the corporate side of the business takes precedence right now. “That’s the major limitation to how much field work I’m able to do,” she says. “It’s more limiting than the family side of things.”

That being true, over the past year, Thomas says she’s begun to spend more time on personal goals, such as having a family; it’s been a huge adjustment. She is in the office from 8:30 to 3:00 each day, during which she says she must make the absolute most of every minute. “It’s been a much harder transition than I expected,” she admits. “It’s in a good way — I find I’m much more focused and efficient than before. I’m learning I’m capable of more than I thought.” Juggling all her responsibilities is no easy task, and it requires major drive to keep it all going. That drive is something Thomas has plenty of. Her greatest inspiration comes from the North itself. “I spent a lot of time in my youth in the North with my father,” she recalls. “I was always attracted to its natural beauty but as I grew up, I also became aware of the special spirit of the peoples and cultures there. Life is difficult in many of these Aboriginal communities where the cost of living is exorbitant and the unemployment rates are among the highest in Canada.” “I’ve seen the positive impact that mining can have on these communities and I strongly believe that sustainable mineral development can play a vital role in building healthy, economically independent communities. Stornoway continues to invest in the North through exploration and I look forward to the day when we’ll be in a position to build a mine and provide those much needed long-term jobs.” Although next year won’t see the development of such deposits, Thomas says the overall outlook for 2010 is good. “I have a positive outlook — I think the worst is behind us. Stornoway’s major project has transformed over the last year. I feel confident that diamond prices, like most commodity prices, are going to improve. We’re ending this year on a high note.” CIM

Another year of knowledge sharing 'Tis the perfect time of year to give "thanks" to all those who contributed to the CIM Bulletin in 2009. The following people were instrumental in bringing industry-relevant technical information to our readers, members and industry. Amir Abdullah Iranzadeh Habib Aliasghari Patrick Andrieux Hooman Askari-Nasab Peter Atkinson Kwame Awuah-Offei Navid Bahrani Andrew Bamber Arthur Barnes Luc Beauchamp Marc Boudreau Amy Byers David Checkel Karen Coates Cyril Cole Pascal Coursol Ali Dehghani Guy Deschênes

Sean Dessureault Mark Diederichs Marcel Djivre Martin Drennan Douglas Dumka Tim Eaton Chuck Edwards Dieter Eisenburger Simon Fekete Bruce Fielder Dominic Fragomeni Solmaz Frounchi Mike Fulton Louis-Pierre Gagnon Ryan Girling Martin Grenon Christoph Grissemann Volker Gundelach Hai Guo

Al Guse John Hadjigeorgiou Robert Hall Ferri Hassani Gerhard Heinrich Darcy Houlahan Jean Hutchinson Greg Johnson Richard Jundis Wolfgang Kahnt Dave Kenwell Matt Lato Mike Lipsett Phillip Mackey Jonathan Matthews George McIsaac Enrica Michelotti Doug Milne Mario Morin

Sylvain Morissette Erin Moss Terry Mulpeter Colette Munro Thomas Oberthuer George O'Reilly Ian Orford Morteza Osanloo Jacek Paraszczak Mohamadali Parvizi Edgar Peek Stefan Planeta Ian Plummer Mark Polak Jeffrey Roberts John Robertson Chick Rodgers Paul Scinto Malcolm Scoble

Mostafa Sharifzadeh Edmund Sides Jean-Marc Simard Tim Skinner Doug Smith John Starkey Peter Stoker Nathan Stubina Jozef Szymanski Dwayne Tannant Gary Taylor Henrik Thalenhorst Rudolf Thierbach Markus Timusk John Vynne Jamie Waine Niall Weatherstone Trevor Yeomans

December 2009 / January 2010 | 103

cim news Les Mines dans la Société sur la route Mining in Society hits the road par Josée Dallaire NEWFOUNDLAND

Les étudiants sont captivés par le simulateur Hewitt-Caterpillar. The Hewitt-Caterpillar simulator is a big hit with students.

QUÉBEC Pour la 2ème année, l’ICM a présenté le pavillon “Les Mines dans la société’’ à l’occasion du Salon Éducation Emploi de Québec en octobre dernier. Plus de 16 000 personnes ont participé dont la grande majorité était des étudiants de niveau secondaire. Le pavillon a pour but de familiariser les jeunes de l’importance de l’industrie minière dans leur vie de tous les jours et ce, de façon interactive. Le simulateur de Hewitt-Caterpillar a créé un engouement vis-à-vis des jeunes. Le canoë de béton de l’Université Laval a également attiré l’attention et l’équipe était là pour répondre aux questions et démontrer le côté ‘’chimique’’ du projet. La Ruée vers le Nord est venue introduire une nouvelle région, La Jamésie où il y a un manque de main d’œuvre important. Le Conseil des Ressources Humaines de l’Industrie Minière (RHiM), l’Association Minière du Québec, le Comité Sectoriel de Main d’œuvre de l’industrie des Mines ainsi que le département de génie des mines, de la métallurgie et des matériaux de l’Université Laval étaient présents pour informer les visiteurs sur les formations disponibles, les maisons d’enseignements qui les offrent, les niveaux scolaires exigés et les disponibilités d’emplois. Et pour couronner le tout le Département de géologie et génie géologique de l’Université Laval a présenté une magnifique sélection de spécimens de minéraux. Il est important de démystifier la perception dépassée du public vis-à-vis notre industrie qui est très sécuritaire, à la fine pointe de la haute technologie et offre une diversité d’emplois unique. Quel est le plus important employeur autochtone? Qui embauche le plus de jeunes et de femmes et offre des possibilités d’emplois à l’international? L’industrie minière. C’est une responsabilité commune pour l’industrie minière de travailler à renouveler notre main d’œuvre et l’ICM a décidé d’investir temps et argent afin d’y remédier. Le Salon Les Mines dans la société touche le plus de gens possible à travers le Canada. Venez visiter nos prochains événements publics: MMIS du 9 au 11 mai 2010 à Vancouver; MIS du 24 au 27 octobre 2010 à Sudbury; SMIS au Salon Éducation Emploi de Québec en 2010. ICM 104 | CIM Magazine | Vol. 4, No. 8

As part of CIM’s commitment to increasing public awareness of the importance of mining in everyday life, the Mining in Society show took to the road — first stop, Newfoundland. This past November, CIM, in conjunction with the CIM Newfoundland Branch and the Newfoundland and Labrador Department of Natural Resources, presented the first “mini” Mining in Society show at the Johnson GeoCentre in St. Johns, Newfoundland. The interactive exhibits were both fun and educational: the Toromont-CAT simulator was a hit with young and old alike; panning for gold provided students with a flashback to the early days of exploration; and there were opportunities for handling rock and mineral samples. The PDAC Mining Matters pavilions provided numerous activities to pique the students’ interests — Mystery Mineral, Separation, Before and After, Products/Matching, and Pin Tail. Not only did visitors receive a lot of giveaways, but they also left with a better understanding of the importance of mining in our society, as well as the various jobs opportunities the mining industry offers. Upcoming Mining in Society event dates include: • Vancouver, May 9 to 11, 2010 (in conjunction with the CIM Conference and Exhibition) • Sudbury, October 24 to 27, 2010 (in conjunction with the MEMO Conference • Quebec, October 2010 • Newfoundland, November 2010 (to be confirmed) CIM

Interested in participating? Intéressé à participer? 514.939.2710 x. 1320 www.mininginsociety.com

cim news | distinguished lecturers Social capital key to Aboriginal inclusion Kelly Lendsay further challenges mining companies By Heather Ednie CIM Distinguished Lecturer Kelly Lendsay is delivering an important message through his presentation Mastering Aboriginal Inclusion in the Canadian mining industry: leadership – responsibility – opportunities. His auspicious aim is to make people acutely aware of their leadership responsibility and the challenges in fostering a workplace culture of Aboriginal inclusion. Recognized as one of Canada’s foremost innovators on the topic of Aboriginal inclusion in Canada, Lendsay began his current position as president and CEO of the Aboriginal Human Kelly Lendsay (left) receives the CIM Distinguished Lecturer Award Resource Council (AHRC) in from CIM past president Jim Gowans. 1998. A proud Canadian of Métis, Cree and European ancestry, Lendsay earned a B.Sc. in kinesiology the “backyards” of Aboriginal commuand an MBA from the University of nities and working on Aboriginal land. Saskatchewan. Mining companies take a long-run view of development, a mining cycle CIM: Mining companies speak a great deal that can easily extend to 30 to 35 about their relationships with Aboriginal years. Today, approximately 4,000 communities. From your point of view, has Aboriginal people work in the mining there been progress within the industry on sector. the topic of Aboriginal inclusion? Mining companies are invested and Lendsay: Throughout the 1990s, I really engaged in growing the worked with employers, consulting on Aboriginal workforce. They are no First Nations and Métis inclusion. Since longer seeing Aboriginal people as a the Council started in 1998, we’ve seen legal impediment, but rather as an increasing amount of work with employees and partners — they companies, especially those in the minunderstand the benefits and together ing industry. Around half of those we are working to eradicate the social work with are resource-based. deficit. The Council is working with If you look at the trajectory of all industrial sectors to emulate what Aboriginal inclusion efforts, from the has happened in mining. 1960s onward, every decade has witnessed great change. In 1960, there CIM: What are the main points you’re were 60 Indians in Canadian universicovering in your Distinguished Lecture? ties and there were emerging social, Lendsay: The focus of the lecture is education and employment gaps. to understand the business imperaIn Canada, the mining industry has tive and to build the business and a 25- to 30-year history of working social cases for Aboriginal inclusion. with Aboriginal people, since the first We’ll [AHRC] be drawing out a Impact and Benefit Agreements beginroadmap and together we’ll discover ning in the 1980s. Companies were in solid practices and strategies compa-

nies can implement to make a difference. We have a number of products and services to help companies climb our Inclusion Continuum — a seven-stage employer roadmap to an inclusive workplace. These tools help companies improve organizational performance and their ability to advance Aboriginal recruitment, retention, advancement, procurement and career development. Our products include the Mastering Aboriginal Inclusion in Mining training program; Inclusion Works ’10: Voices of Change recruitment fair and professional development — our national signature event — taking place in Toronto on April 2729, 2010; the Leadership Circle program, bringing together national leaders that are paving the way for inclusion and how they are making it work; The Inclusion Network online job site; the Guiding Circles career development program; and, finally, Mastering Aboriginal Inclusion Online, coming in 2010. Right across the country you see very good examples of Aboriginal inclusion at work. One such company is Cameco, which has done a tremendous job in Saskatchewan. Currently, Cameco is one of the largest industrial employers of Aboriginal workers in Canada with between 800 and 900 Aboriginal employees, making up 50 per cent of its operating workforce. Ten years ago there were just a handful of companies doing really well. Today, the majority of mining companies recognize the importance and necessity of doing business with Aboriginal communities and they are creating partnerships and strategies to drive economic development opportunities. It is no longer seen as a “social handout.” December 2009 / January 2010 | 105

cim news CIM: How will companies benefit from increased Aboriginal inclusion in their operations? Lendsay: Aboriginal people are the fastest growing demographic in the Canadian labour force and the fastest growing consumer group. Strong relationships with those communities just make good sense for Canadian companies. We’re creating critical mass as our people are trained and gain experience. CIM: You always seem incredibly upbeat and positive. Is today’s current situation really that optimistic? Lendsay: The facts are so dismal. The statistics are still shocking — 52 per cent of Aboriginal children live in poverty and many Aboriginal people lack adequate drinking water. Then, consider the effects of something like the H1N1 epidemic on the communities. There are huge social gaps in the country, and to move people forward, you have to bring reality and optimism together with a vision of hope and change to inspire an agenda that will make a difference. We are seeing a shift in attitudes in Canada. Yes, there are the negative sterotypes and naysayers and racism is alive. We also see an emerging Aboriginal workforce ready to make a significant contribution in workplaces across Canada. CIM: In the future, what should be the main priorities for mining companies aiming to improve their relationships with Aboriginal communities? Lendsay: You can have all the financial capital, strategies and tools, but without social capital — real relationships — you won’t have what is needed to really make things work. I’m looking forward to challenging the mining companies to focus on the next steps. They have achieved certain levels of progress; now it’s time to advance in other areas, such as Aboriginal leadership in board rooms and Aboriginal procurement and inclusion into higher professions. One thing that will really make a difference in terms of accelerating this inclusion is education. Aboriginal education gaps are large and must be closed if we are to accelerate employment and economic outcomes. CIM 106 | CIM Magazine | Vol. 4, No. 8

CIM welcomes new members Abolarin, Tajudeen, Nigeria Affam, Michael, Ghana Alvarez-Silva, Mayeli, Québec Atkinson, John, British Columbia Ball, Peter A., British Columbia Basit, Abdul, Pakistan Beloborodov, Alexander, Québec Besa, Juan, Alberta Brammer, Steffen, Ghana Brown, Peter, Alberta Buckoll, Kyle, British Columbia Button, Gordon, Newfoundland and Labrador Carpentier, Sabrina, Québec Carter, Angela, British Columbia Clarke, Ryan, Ontario Cooke, Randy W., Nova Scotia Cristobal, Joseph Bryan, British Columbia Day, Wilfred, Alberta Denoncourt, Luc-Bernard, Québec Friesen, Ashton, Alberta Gandhi, Amit K., Nova Scotia Gaulin, Luc, Québec Gratton, Denis, Ontario Harason, Brendan, Ontario Hellon, Dennis, Newfoundland and Labrador Henry, Walter, Ontario Hensher, Simone, Ontario Hope, Bill, Alberta Horrocks, Kimberley, British Columbia Hyde, Brendt, Ontario Imbert, Thierry, France Islam, Rashedul, Ontario Jin, Yan, British Columbia Johnson, Stephanie, Ontario Jones, Alana, Ontario Kujawa, Thomas, Alberta Landry-Paré, Lilianne, Québec Lee, William, Ontario Lousberg, Cathleen, Northwest Territories

MacDonald, Michael D., Nova Scotia MacRae, Scott, Ontario Martinez, Fabian Tito Arandia, Québec McCallum, Amanda, Newfoundland and Labrador Miyoshi, Masaki, British Columbia Morland, Richard, Northwest Territories Moskal, Chris, British Columbia Nesbitt, Paul, Northwest Territories Nolan, Jack, United Kingdom Oldeweghuis, Martijn M.S., Netherlands Oluwaseyi, Precious, Nigeria Pandry, Navin, Ontario Payant, Rebecca, Québec Penha, Alexandre, Ontario Penney, Ryan, Nova Scotia Roy, Justin, Québec Safwan Salim, Ahmad, Malaysia Schultz, Brian, Ontario Sharp, Jacqueline, Australia Sintim, Kwame, Ontario Sivapalan, Gajan, British Columbia Sivarajan, Sanil, Alberta Smith, Alex, Newfoundland and Labrador Stewart, Tyler, Nova Scotia Styre, Ken F., Alberta Tanguay, Gaston, Québec Tognotti, Taryn D., Ontario Trivino, Leonardo, Ontario Twissell, Deana, Northwest Territories Valley, Benoît, Ontario Van Looyen, Rick, Ontario Vatandoost, Adel, Tasmania West, Anna E., Nova Scotia Whelan, Paul, Alberta Woloch, Michael, Ontario Yahaya, Anas, British Columbia

Moving on up MetalCORP Limited has appointed Charles Greig as vice-president, exploration. Greig, who has more than 25 years of experience in mineral exploration, has been under contract with MetalCORP since May 2009, overseeing their exploration programs. Bold Ventures Inc. has appointed Derrick Strickland to its Board of Directors. Strickland, an independent consulting geologist with over 20 years of experience, has been involved in the management of exploration projects, instituting quality assurance programs, and providing leadership to resource companies at the board level.

cim news Mingling on the menu at Tastes of Toronto Toronto is a global leader in mining and exploration financing. So, what better place to gather the best and the brightest of the mining industry for an opportunity to network, catch up with old friends and sample some fantastic food. The CIM Toronto Branch held its third annual “Tastes of Toronto” event this past October at the prestigious National Club on Bay Street, in the heart of the city’s financial district. On hand were a host of industry executives, mining enthusiasts and CIM members from across the Greater Toronto Area. Students who had participated in the branch’s networking event held earlier in the evening dropped by to mix and mingle with future employers and colleagues. Mining is a global industry and it was a truly well-travelled crowd present, as young and old talked shop and exchanged tales of exploration adventure in distant places. Engineering students from Asia discussed the merits of the rise in Chinese exploration and their experiences abroad, where an understanding of foreign customs and language can go far in facilitating good community relations at mine sites. “Taste” was the operative word as guests were treated to a cornucopia of foods from around the globe. A Greek-themed souvlaki station serving grilled lamb with a lemony tzatziki sauce was easily the hit of the evening, but a curry-laced chicken and potato dish from India, and an offering of spicy Chinese beef noodles were also crowd favourites. The skillful carving of a traditional beef roast saw guests returning for a second helping before visiting the impressive sweet table, which featured desserts from around the world. Rick Hutson, vice-chair of CIM’s Toronto Branch, addressed the packed room to thank the attendees and those who helped sponsor the successful event. He also highlighted the needs of the industry to foster a

Photo courtesy of Jeff Borsato

By Jeff Borsato

Sponsors Platinum: SNC Lavalin • Aker Solutions Gold: Hatch • Deloitte • De Beers Canada • PDAC • IBK Capital • Cormark Securities • FNX Mining • Excellon Resources Silver: Royal Nickel • BMO Capital Markets • Golder Associates • HudBay Minerals

climate of mutual cooperation in ensuring that the next generation of miners, geologists and engineers gain a solid foothold in an industry where a shortage of skilled staff is a constant challenge. The theme of community building and networking was central to the entire evening. Hutson also acknowledged the critical role of women in mining, and special guests were invited to announce develop-

ments taking place that affect women in the industry. As late afternoon turned to evening, guests were still gathering in droves at various food stations, catching up with old acquaintances or sharing tidbits of industry wisdom with the students in attendance. All in all, the event was a hit and certainly appeared to leave a great taste in everyone’s mouth. CIM

Obituaries | Avis de décès Marcel J. Caron est devenu membre de l’ICM en 1971. B.M. Dumas became a member of CIM in 1967 and a life member in 1996. He died in April 2009. George W. Flumerfelt joined CIM in 1966 and became a life member in 1999. He passed away on May 31, 2009. Mark T. Fryer joined CIM in 2002. He died in 2008. Matthew Malnarich has been a member of CIM since 1954 and a life member since 1986. He died on August 24, 2009. Murray A. Nichol joined CIM in 1964 and became a life member in 1996. He passed away on February 28, 2009. Donald W. Roberts was a member of CIM since 1960. A life member since 1998, he died on October 23, 2008. Robert W. Shewman joined CIM in 1976. Alan J. Williams, a member of CIM since 1966 and a life member since 2005, passed away on June 25, 2009. December 2009 / January 2010 | 107

Re-imagining CIM A community for leading industry expertise By Ryan Bergen The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) was created to represent, shape, lead and connect Canada’s mining industry. Over more than a century, CIM has facilitated and driven the development and exchange of ideas and technological advances. While booms and busts have come and gone and the world around it has changed rapidly, CIM has remained stable and secure and has continued to thrive. This has been possible because CIM has had the vision and the courage to subject itself to critical examination through strategic review exercises that have helped the organization identify opportunities, head off threats and cope with change. Today, the change around CIM is fundamental and far-reaching. To take its rightful place in the international arena and to ensure its continued relevance in a changed world, CIM had to examine its objectives and strategies — and indeed its very character — more intensely than ever before. “Seeing global trends and what some of the world’s leading high-performance societies looked like and did, it was clear that we needed to leave the traditional strategic planning model behind,” explains Jean Vavrek, CIM’s executive director. “The goal was to get a fresh perspective on ourselves and our place in the future.”

A blueprint for the future CIM hired Blueprint Business Architecture, a firm that helps organizations identify and express their core principles. “We help figure out a definition of what your organization is in seven words or less,” explains Ian Chamandy, a partner at Blueprint. “With this as a reference, you can examine your various parts and ask, ‘Does this match with our DNA? What do we need to add to make it — and us — whole and complete?’” As part of the blueprinting process, participants had to ask, “What makes CIM unique?” From the answers to this question came the answer to another important question, “Who are we?” CIM’s leaders arrived at the consensus that we are “a community for leading industry expertise.” • We make global expertise readily accessible to our members. • Our members enhance their leadership abilities through their involvement in CIM and reinvest that expertise back into the industry. • We make the communities in which we operate stronger. This, in turn, makes our members stronger. By articulating this inspiring proposition and clearly understanding our organization’s core principles, we can re-energize our members and employees with a renewed sense of purpose and direction. CIM is committed to collectively broadening its reach in the years ahead.

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cim news

“The message had force,” says Vavrek. “They reminded us that we truly have the potential to be much more relevant to many more members in Canada and to the sector globally.” CIM’s executive committee urged Vavrek on, and a group of CIM’s leaders huddled together to work out how to realize this potential. Together, they pulled CIM apart to rediscover its fundamentals and design a “blueprint” for its future. “Every organization needs to step back periodically and plan for the future, says CIM president Michael Allan. “This was the right time for CIM to do this and gave us all a perspective on who we are and what we do that I don’t think we had appreciated before.” To Zoltan Lukacs, chair of CIM’s Society for Innovative Mining Technology, his participation in the exercise was an eye-opening experience. “When our reputation for professionalism, expertise and collaboration was pointed out, I realized the impact we could have on lives in mining communities.”

Proven values, enduring impact Just as Canada’s native resources have international significance, CIM’s core values can — and should — extend beyond our borders. These values include: • Over a century of innovation, collaboration, rigour and discipline in extracting natural resources despite challenging and diverse geology, geography and climate. • A strong sense of community and fellowship and a willingness to collaborate with others who share our objectives. • A strong foundation in a stable and globally respected regulatory environment. • A tradition of research and development, innovation and accessible financing. • Global leadership in university-level academic support for the industry. • An ethical framework that captures and manages safety, environmental and cultural concerns. • An appreciation of the necessary balance between generating short-term results and sustaining communities and the integrity of the industry for the longer term. Through its knowledge-sharing endeavours at conferences, in print and online, CIM strengthens its individual members, making them more knowledgeable and better connected. CIM also creates opportunities to raise profiles, elevate reputations and exercise leadership in the industry.

CIM’s corporate members can, through various CIM forums, benefit from the industry’s finest human resources, develop innovative ideas, exchange information, harness best practices and recruit top-class talent.

Growth: a common goal, a collaborative effort With CIM’s values sharply defined, our growth will rely on the coming together of several inter-connected factors. Consensus: Propelling CIM onto the global stage as a vital and assertive industry advocate will require consensus on our course for the future. Every branch, society, tier, leader, employee and member of CIM — whether they hail from industry, academia or government — can be an ambassador for the organization’s principles and objectives. Once such a broad consensus is secured, management must find the resources needed to execute the strategy. Engagement: We must fully engage our societies and branches in the task of achieving growth. CIM’s relevance to its 12 societies and over 30 branches must be enhanced. In turn, the many arms of CIM can raise the profile and impact of the CIM brand. To achieve this, the vision for and the roles of these groups must be made clear. Realistic responsibilities must be assigned to every one of them.

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cim news Information: The collection and exchange of information must be expanded. The national challenge, to which CIM was a response, now exists on a global scale. Silos of expertise and experience exist on every continent. CIM must connect them and make them accessible internationally, just as it has done on the national scale. To begin, we must scrutinize our conventions, conferences and publications to appraise how well they capture both our fundamental values and the realities of the global industry. The information gathering and sharing infrastructure — especially the Internet and social media — needs to be improved, expanded and more thoroughly utilized. Funding: New and increased streams of funding are essential. Visible progress in consensus-building, engagement and information-sharing should catalyze increased revenue generation. Potential members must be made aware, through the tools and networks they use, that CIM membership is relevant, valuable and easy to obtain. CIM must be more innovative in recruiting members. To better reflect the global industry, we must create new connections with the public, other like-minded organizations, academics and indigenous peoples worldwide. Unification: Across CIM — at each branch, in each society, throughout the administration — we must speak coherently in a single compelling voice, especially when we represent the organization to the world. Shaped by the shared vision that guides the entire organization, our communications must be clear and impressive.

Where to from here? No single organization acts as a leader promoting expertise on behalf of the global industries related to finding, extracting and using minerals and metals. The demand is there for CIM to be just such an international leader, insists CIM president-elect Chris Twigge-Molecey. Recently back from a trip to China, Twigge-Molecey says that Chinese industry leaders “were very interested in CIM acting as a conduit to bring innovative technologies to the mining industry there. We can also help them understand mine safety and corporate social responsibility, particularly with respect to investments outside China. They are also eager to understand our resource and reserves definition process and how it aligns with their process, with an eye for bringing Chinese mining companies to Canada.” Emerging countries like China, Chile, Brazil, India and Russia will represent a significant part of the future of mining, among

other industries. Therefore, if CIM succeeds in making an impression in these countries, it can serve as a collective foot in the door, granting access to the world for the Canadian resources sector.

Roadmap to a stronger future The change in, and growth of, CIM’s scope have already begun. Since 2005, our membership has doubled to over 11,000. The growth of our advertising and sponsorship revenues has been even more dramatic, bolstering our finances and our capacity to serve our members. Attendance at CIM conferences has improved significantly, as has the value that visitors draw from them. CIM’s Mining in Society initiative draws thousands of attendees at national and regional events and introduces new generations to the benefits of the minerals industry and its desirability as a career. To sustain this growth, CIM has added staff positions and has begun overhauling its technical infrastructure. These improvements will enable the organization to serve its members more effectively. In navigating the road to a stronger future, CIM must chart its course between two cardinal points on its internal compass — honing its tools and strengthening the support it offers to members. This process has already begun. CIM’s leaders have established clear priorities, taken stock of the resources available, defined action plans for branches and societies, and allocated budgets to support these actions. Now, CIM is calling on you, its members, to bring your imagination and support to the journey. We need you to identify and enrol allies and potential partners, to be confident advocates and representatives of CIM’s values, and to continue the process of self-examination and betterment at the individual level. Collectively, we have the know-how to shape the quality, safety, productivity and sustainability of the global industry. We must now translate this know-how into concrete action. As CIM’s past president Jim Gowans asserts, “The CIM model is proven; the challenge now is the scale.” Gowans had set the planning process in motion during his presidential tenure in 2008-09. “The mining industry is changing rapidly,” says Gowans, “and there is a real opportunity for CIM to be even more significant in doing what it has always done — informing, networking and continuously expanding knowledge.” CIM

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Réimaginer l’ICM Une communauté pour une expertise de premier plan L’Institut canadien des mines, de la métallurgie et du pétrole (ICM) a été créé pour représenter, façonner et diriger l’industrie minière canadienne ainsi que pour établir des liens entre ses diverses composantes. Depuis plus d’un siècle, l’ICM facilite et stimule l’adoption et le partage d’idées et de progrès technologiques. Bien que les phases d’expansion et de repli se soient succédé et que le monde ait changé rapidement, l’ICM est demeuré stable et a continué de prospérer. Pour qu’il en soit ainsi, l’ICM a eu la clairvoyance et le courage de se soumettre à un examen critique dans le cadre d’analyses stratégiques, qui l’ont aidé à découvrir des occasions favorables, à écarter des menaces et à accepter le changement. Les changements qui touchent aujourd’hui l’ICM sont fondamentaux et de grande envergure. Pour prendre la place qui lui revient sur la scène internationale et pour rester utile dans un monde transformé, l’ICM a dû examiner plus profondément que jamais ses objectifs et ses stratégies, et, en fait, son essence même. « Au vu des tendances mondiales et au vu de l’évolution de certaines des sociétés les plus dynamiques au monde, il était évident que nous devions laisser le modèle traditionnel de planification stratégique derrière nous », explique Jean Vavrek, directeur exécutif de l’ICM. « Notre objectif consistait à jeter un regard neuf sur nous-mêmes et sur notre place dans l’avenir. »

Un programme pour l’avenir L’ICM a sollicité l’aide de Blueprint Business Architecture, un cabinet qui aide les entreprises à définir et à exprimer leurs principes de base. « Nous vous aidons à définir votre entreprise en sept mots ou moins », explique Ian Chamandy, un associé à Blueprint. « Cette définition servant de référence, vous pouvez examiner vos diverses composantes et vous demander si elles correspondent à votre ADN. Que devez-vous ajouter pour les rendre, et vous rendre, parfaites? » « Le message était puissant », se rappelle M. Vavrek. « Ils nous ont rappelé que nous avons vraiment le potentiel pour être beaucoup plus utiles à beaucoup plus de membres au Canada et au secteur en général. » Le comité de direction de l’ICM a encouragé Jean Vavrek, et un groupe de dirigeants de l’ICM s’est réuni pour déterminer comment réaliser ce potentiel. Ensemble, ils ont examiné l’ICM sous toutes ses coutures pour redécouvrir ses éléments essentiels et concevoir un « programme » pour l’avenir de l’Institut. « Chaque entreprise doit prendre du recul de temps en temps et planifier pour l’avenir », estime Michael Allan, président de l’ICM. « Le moment était propice pour l’ICM de se livrer à un tel exercice, qui a permis à chacun d’entre nous de mieux se définir par rapport à notre identité et à nos activités, deux aspects dont, à mon avis, nous n’étions pas pleinement conscients. » Sa participation à l’exercice a ouvert les yeux de Zoltan Lukacs, président de la Société des technologies minières innovatrices de l’ICM. « Lorsque notre réputation de professionnalisme, d’expertise et de collaboration a été soulignée, je me suis rendu compte de l’influence que nous pourrions avoir sur le quotidien des communautés minières. » 112 | CIM Magazine | Vol. 4, No. 8

cim news Qu’est-ce qui fait la particularité de l’ICM? Dans le cadre de l’élaboration du programme, les participants devaient se demander : « Qu’est-ce qui fait la particularité de l’ICM? » Des réponses à cette question a découlé la réponse à une autre question importante : « Qui sommesnous? » Les dirigeants de l’ICM se sont entendus pour dire que nous sommes une communauté pour une expertise de premier plan. • Nous mettons volontiers l’expertise mondiale à la disposition de nos membres. • Nos membres renforcent leurs qualités de chef de file par leur participation à l’ICM et réinvestissent cette expertise dans l’industrie. • Nous rendons les communautés où nous sommes présents plus prospères, ce qui, en retour, rend nos membres plus forts. Ainsi, examinant cette inspirante proposition et comprenant et articulant clairement les principes de base de notre Institut, nous pouvons stimuler encore plus nos membres et nos employés en leur proposant une nouvelle articulation de notre mission et de notre orientation. L’ICM entend élargir collectivement son influence au cours des années à venir. Tout comme les ressources naturelles du Canada sont utilisées partout au monde, les valeurs de base de l’ICM peuvent, et devraient, rayonner au-delà de nos frontières. Ces valeurs comprennent : • Plus d’un siècle d’innovation, de collaboration, de rigueur et de discipline dans l’extraction des ressources naturelles malgré une géologie, une géographie et un climat variés et qui posent de nombreux défis. • Un solide esprit de corps et d’association ainsi que la volonté de collaborer avec ceux qui partagent nos objectifs; • Des fondations solides dans un cadre réglementaire stable et respecté partout au monde. • Une tradition de recherche et de développement, d’innovation et de financement accessible. • Un leadership mondial dans l’appui fourni à l’industrie par des universitaires. • Un cadre éthique qui prend en compte et cultive la sécurité, l’environnement et la culture. • Une compréhension de l’équilibre nécessaire entre la production de résultats à court terme et le maintien à long terme des collectivités et de l’intégrité de l’industrie. Grâce à ses mesures de partage des connaissances à l’occasion de congrès, par écrit et en ligne, l’ICM renforce ses membres, les rendant plus avertis et plus solidaires. L’ICM permet aussi à ses membres d’améliorer leur image, d’affermir leur réputation et d’exercer un rôle dirigeant dans l’industrie. Les sociétés membres de l’ICM peuvent, par l’intermédiaire des divers forums de l’Institut, tirer parti des meilleures ressources humaines du secteur, formuler des idées novatrices, échanger de

l’information, mettre en œuvre des pratiques exemplaires et recruter les employés les plus compétents.

La croissance : un objectif et un effort communs Les valeurs de l’ICM étant nettement définies, notre croissance dépendra de la conjonction de plusieurs facteurs interreliés. Consensus : Propulser l’ICM sur la scène internationale à titre de défenseur indispensable et sûr de soi de l’industrie exigera que ses membres atteignent un consensus sur son orientation pour l’avenir. Chaque section, société, palier, dirigeant, employé et membre de l’ICM, qu’il provienne de l’industrie, du monde universitaire ou du gouvernement, peut être un ambassadeur des principes et des objectifs de l’Institut. Dès que ce consensus sera atteint, la direction devra trouver les ressources qui permettront de mettre cette stratégie en œuvre. Participation : Nos sociétés et nos sections doivent participer très activement à notre croissance. L’utilité de l’ICM pour ses 12 sociétés et ses 30 sections et plus doit être accrue. De leur côté, les nombreuses composantes de l’ICM peuvent rehausser l’image et l’efficacité de la marque de l’ICM. Pour atteindre ce but, la vision et le rôle de ces groupes doivent être clarifiés. Des responsabilités réalistes doivent être attribuées à chacun d’entre eux. Information : La cueillette et le partage d’information doivent être élargis. La pertinence de l’ICM sur le plan national se transpose maintenant sur le plan international. Il existe des silos d’expertise et d’expérience dans chaque continent. L’ICM doit assurer la liaison entre eux et les rendre accessibles dans le monde entier, comme il l’a fait sur le plan national. Tout d’abord, nous devons examiner minutieusement nos congrès, nos conférences et nos publications pour évaluer à quel point ils rendent bien compte de nos valeurs fondamentales et des réalités de l’industrie mondiale.

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cim news L’infrastructure de cueillette et de partage de l’information, particulièrement Internet et les médias sociaux, doit être améliorée, élargie et plus largement utilisée. Financement : De nouvelles sources de financement, plus importantes, doivent être trouvées. Des progrès palpables dans l’atteinte de consensus, la participation et le partage de l’information devraient encourager l’accroissement des revenus. Les membres potentiels doivent se rendre compte que, grâce aux outils et aux réseaux qu’ils utilisent, l’adhésion à l’ICM, un processus simple, est pertinente et précieuse. L’ICM doit innover encore plus dans le cadre du recrutement de membres. Pour mieux rendre compte de l’industrie sur le plan mondial, nous devons établir de nouveaux liens avec le public, d’autres organisations aux vues similaires, les universitaires et les peuples autochtones du monde entier. Unification : Dans l’ensemble de l’ICM, dans chaque section, dans chaque société et dans l’ensemble de l’administration, nous devons nous exprimer de façon cohérente, irréfutable et d’une même voix, particulièrement lorsque nous représentons l’Institut dans le monde. Façonnées par la vision commune qui guide l’ensemble de l’Institut, nos communications doivent être claires et percutantes.

Où aller? Aucune organisation n’agit comme porte-parole pour promouvoir l’expertise au nom de l’industrie mondiale en ce qui a trait à la découverte, à l’extraction et à l’utilisation des minéraux et des métaux. L’ICM est invité à devenir ce leader international, insiste le président élu entrant de l’ICM, Chris Twigge-Molecey. Fraîchement de retour d’un voyage en Chine, M. TwiggeMolecey confie que les dirigeants de l’industrie chinoise « aimeraient beaucoup que l’ICM agisse comme intermédiaire pour introduire, dans l’industrie minière chinoise, des technologies novatrices. Nous pouvons aussi les aider à comprendre la sécurité et la responsabilité sociale des entreprises, tout spécialement en ce qui a trait aux investissements à l’extérieur de la Chine. Ils désirent aussi vivement comprendre notre processus de définition des ressources et des réserves et comment il s’adapterait à leurs processus, ayant en vue la venue de sociétés minières chinoises au Canada. » Des pays comme la Chine représenteront l’avenir de l’industrie minière, entre autres secteurs. Par conséquent, si l’ICM réussit à se faire valoir dans ces pays, elle peut ouvrir la porte à d’autres et offrir le monde au secteur canadien des ressources naturelles.

Une feuille de route vers un avenir plus prometteur Le champ d’action de l’ICM commence déjà à changer et à s’élargir. Depuis 2005, le nombre de nos adhérents a doublé et se chiffre à plus de 11 000. L’augmentation de nos revenus de publicité et de parrainage a été encore plus spectaculaire, ce qui renforce nos finances et notre capacité à servir nos membres. La participation aux congrès de l’ICM a elle aussi augmenté de beaucoup, tout comme la valeur que les visiteurs en retirent. L’initiative Mines dans la société de l’ICM a attiré, autant dans ses versions nationales que régionales, des milliers de participants et a su présenter aux nouvelles générations les avantages de l’industrie minière de même que ceux d’une carrière dans le domaine. Pour maintenir cette croissance, l’ICM a engagé de nouveaux employés et a commencé à réviser son infrastructure technique. Ces améliorations permettront à l’Institut de servir plus efficacement ses membres. Prenant la route vers un avenir plus prometteur, l’ICM doit tracer sa voie en tenant compte de deux points cardinaux : affiner ses outils et renforcer l’appui qu’il offre à ses membres. Ce processus a déjà commencé. Les dirigeants de l’ICM ont établi des priorités précises, pris en compte les ressources disponibles, défini des plans d’action pour les sections et les sociétés et alloué des budgets pour mener à bien ces programmes. Aujourd’hui, l’ICM fait appel à vous, ses membres, pour que vous l’appuyiez dans son aventure et que vous mettiez votre imagination à son service. Nous vous demandons de découvrir des alliés et des partenaires potentiels et de les amener à s’inscrire, de devenir des défenseurs et des représentants sûrs de soi des valeurs de l’ICM et de poursuivre le travail d’auto-examen et d’amélioration sur le plan individuel. Collectivement, nous avons le savoir-faire pour assurer la qualité, la sécurité, la productivité et la durabilité de l’industrie dans son ensemble. Nous devons maintenant traduire ce savoir-faire en gestes concrets. Jim Gowans, président sortant de l’ICM, affirme que « le modèle de l’ICM est éprouvé; aujourd’hui, le défi qu’il doit relever est celui de son ampleur. » M. Gowans a mis en branle le processus de planification pendant sa présidence, en 2008-2009. « L’industrie minière évolue rapidement », affirme-t-il, « et l’occasion est là pour que l’ICM soit encore plus pertinent en faisant ce qu’il a toujours fait : informer, réseauter et élargir continuellement les connaissances. » ICM

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Conferences/Congrès 42nd Annual Canadian Mineral Processors Operators’ Conference 42e Conférence annuelle des minéralurgistes du Canada January 19-21, Ottawa, Ontario www.cmpsoc.ca • CIM Conference and Exhibition Congrès et Salon commercial de l’ICM May 9-12, Vancouver, British Columbia www.cim.org/vancouver2010 • Copper 2010 June 6-10, Hamburg, Germany www.cu2010.gdmb.de • Mining Society of Nova Scotia 123rd Annual Meeting June 10-11, Cape Breton, Nova Scotia www.miningsocietyns.ca • Uranium 2010 August 15-18, Saskatoon, Saskatchewan www.metsoc.org/U2010 • Conference of Metallurgists Congrès des métallurgistes COM 2010 October 3-6, Vancouver, British Columbia www.metsoc.org/com2010 • Lead Zinc 2010 October 3-6, Vancouver, British Columbia www.metsoc.org/COM2010/ tp_lead_zinc.asp • The Maintenance Engineering/ Mine Operators’ Conference MEMO 2010 October 24-27, Sudbury, Ontario www.cim.org/memo2010

District 1 New Brunswick Contact: Barbara Rose (BRose@xstratazinc.ca) January Student/Industry Meet-and-Greet, University of New Brunswick (Fredericton, New Brunswick) June Golf Tournament September 23-25 35th Annual CIM New Brunswick Branch Convention (Bathurst, New Brunswick) November 8 Annual Meeting in conjunction with NB Exploration, Mining & Petroleum Conference (Fredericton, New Brunswick)

Newfoundland Contact: Len Mandville (lenmandville@gov.nl.ca) City: St. John’s, Newfoundland November 4-6 Mineral Resources Review 2010, Delta St. John’s Hotel and Conference Centre

Newfoundland Branch Mineral Resources Review

District 2 Chapais-Chibougamau

Québec

Responsable : Patrick Houle (patrick.houle@mrnf.gouv.qc.ca) Ville : Chibougamau, Québec 26 avril au 1 mai Semaine minière du Québec Soirée conférence jumelée à l’organisation d’une visite au Centre d’étude appliquée du quaternaire (CÉAQ) Chibougamau, pour les élèves de la région

Responsable : Jean-Marc Charbonneau (Jean.Marc.Charbonneau@mrnf.gouv.qc.ca) Ville : Québec, Québec 25 janvier Conférences des étudiants de 4 départements de l’Université Laval 22 février Assemblée générale annuelle et présentation de Ghislain Arel, Consolidated Thompson (Sujet : Mine de fer du lac Bloom) 29 mars Conférence de Kelly Lendsay (Éminent conférencier de l’ICM) prononcée par Trina Bucko

Harricana Responsable : Gérald Lefrançois (gerald@corriveaujl.com) Ville : Val-d’Or, Québec 20 janvier Conférence : Projets Bachelor et Barry par M. Mauril Gauthier, Chef-ingénieur Ressources Métanor 17 février Conférence : Le Projet Meadowbank par M. Denis Gourde, Directeur général - Mines Agnico-Eagle 19 mars Soirée vins et fromages, Hôtel Forestel 28 avril Conférence : Le Projet Persévérance par M. Luc Joncas, Surintendant de la mine Xstrata Zinc 19 mai Conférence : Les Projets Midway et McKenzie Break par M. André Jean, Géologue de projet et M. Denis Vachon, Chef-ingénieur Northern Star Mining 5 juin Tournoi de golf

Québec Nord-Est Responsable : Luc Gagnon (lgagnon@saguenay.coh.ca) Ville : Sept-Îles, Québec Activités à confirmer

Montréal Responsable : Martin Poirier (mpoirier@semafo.com) Ville : Montréal, Québec Septembre Tournoi de golf Conférences techniques Février • Mars • Avril • Octobre

Tournoi de golf de la section Harricana 116 | CIM Magazine | Vol. 4, No. 8

District 3 Cobalt

Ottawa

Contact: Todd Steis (todd.steis@mti.ca) City: Haileybury, Ontario Seafood Night, Canadian Legion Branch 54 January 28 • September 30

Contact: Jean-François Fiset (jefiset@nrcan.gc.ca) City: Ottawa, Ontario January 14 Presentation by CIM Distinguished Lecturer Steve Scott February/March Technical Presentation Luncheon

Monthly Meetings, Canadian Legion Branch 54 February 25 • March 25 • October 28 • November 25

Hamilton Contact: Tracy MacPherson (tracy.macpherson@arcelormittal.com) City: Hamilton, Ontario Technical Meetings February • April • October/November

Northern Gateway Contact: Roy Slack (roy.slack@cementation.ca) City: North Bay, Ontario May Mining Week and Mine Scene Investigation June Boat Cruise, North Bay Waterfront Marina Docks September Golf Tournament, Highview Golf Course

Sudbury Contact: Adam Tonnos (Adam_Tonnos@bestech.com) City: Sudbury, Ontario February 13 Annual Sweetheart Dinner & Dance, Caruso Club June 11 Annual Lobster Dinner & Dance, Caruso Club August 7 Rudolph Kneer Memorial Golf Tournament, Lively Golf & Country Club October 21 Annual Student/Oyster Night, Dynamic Earth November 18 Annual Social Evening, Dynamic Earth General Membership Meetings, Dynamic Earth January 21 • March 18 • April 15 • September 16

Sudbury Geological Discussion Group Contact: Phil Thurston (pthurston@Laurentian.ca) City: Sudbury, Ontario Monthly Meetings January • February • March • April • May • September • October • November

Rouyn-Noranda

Toronto

Responsable : Claude Gagnier (claudegagnier@hotmail.com) Ville : Rouyn-Noranda, Québec 26 avril au 1 mai Semaine minière du Québec

Contact: Nancy Macnab (cim_toronto@rogers.com) City: Toronto, Ontario January 21 Luncheon and Annual General Meeting February 18 Student Luncheon March 3 PDAC – CIM Joint Luncheon September 1 Frank Grieco Golf Day October 21 Tastes of Toronto

Saguenay Responsable : Steve Thivierge (steve_thivierge@iamgold.com) Ville : Chicoutimi, Québec Janvier Assemblée générale annuelle, UQAC Février Conférence technique, UQAC 26 au 28 mars Salon minéral biannuel régional et présentation de Steve Thivierge, UQAC 26 avril au 1 mai Semaine minière du Québec • Bar des mines avec discussion ouverte sur un thème (invités de marque) • Capsules publicitaires et entrevues à la radio • Tirage de billets pour visite sous terre et souper Avril Party de crabes, Marina du Vieux-Port Juin Visite industrielle, Chutes-des-Passes Septembre Visite usine de traitement de la brasque Octobre Souper Oktoberfest Novembre Party d’huîtres Décembre Conférence technique, UQAC

Luncheon Meetings April 15 • May 20 • June 10 • September 16 • November 18 • December 9

CIM Northern Gateway Mine Scene Investigation

Thetford Mines Contact : François Jacques (fjacques.lab@bellnet.ca) Ville : Thetford Mines, Québec 22 et 23 janvier Tournoi annuel de curling, Club de golf et curling de Thetford Mines 26 avril au 1 mai Différentes activités pour souligner la Semaine minière du Québec Mai Visite industrielle 28 mai Tournoi annuel de golf au Club de golf et curling de Thetford Mines Conférences techniques Février • Mars • Octobre • Novembre December 2009 / January 2010 | 117

District 4 Red Lake Contact: Ron Sinkiewicz (Ron.Sinkiewicz@goldcorp.com) City: Red Lake, Ontario January 18 Presentation by CIM Distinguished Lecturer Steve Scott, Lakeview Restaurant April 20 Presentation by CIM Distinguished Lecturer Georges Kipouros, Lakeview Restaurant May Exploration Roundup, Cochenour Community Hall Mid-July Annual Golf Tournament, Red Lake Area Golf & Country Club October Annual General Meeting/Seafood Night, Campbell Curling Club November 20 Annual Lobsterspiel, Campbell Curling Club

Saskatoon Contact: Jim Corman (Jim.Corman@areva.ca) City: Saskatoon, Saskatchewan January 21 Environment Night February 25 Uranium Night March 18 Student Paper Night April 22 Spring Social July 9 Annual Golf Tourney, The Willows Golf & Country Club September 16 General Interest Night October 21 Potash Night November 18 Mineral Processors Night November 26 Annual Ball, Delta Bessborough Hotel

Saskatoon Geology Section Contact: Gary Yeo (gyeo@denisonmines.com) City: Saskatoon, Saskatchewan Branch Luncheon Meetings January 13 • April 21 • May 19

Thompson Contact: Inge Robinson (Inge.Robinson@valeinco.com) City: Thompson, Manitoba August Golf Tournament October Membership Drive and Technical Meeting Technical Meetings February • March • April

Thunder Bay Contact: Mark Smyk (mark.smyk@ontario.ca) City: Thunder Bay, Ontario January Mineral Resources Investment Showcase evening March/April Annual Student Paper Night and Annual Funspiel Technical Meetings January • February • March • April

Winnipeg Contact: Cameron Rennie (cameron@rennieconsulting.com) City: Winnipeg, Manitoba Monthly Meetings, 3rd Thursday of each month January • February • March • April • May • September • October • November • December Red Lake Branch Exploration Roundup

Oil Sands Branch Golf Tournament

District 5 Calgary Contact: Paul Taylor (PTaylor@phmining.com) City: Calgary, Alberta January 13 Presentation by CIM Distinguished Lecturer Kelly Lendsay April 14 Presentation by CIM Distinguished Lecturer Don Thompson Monthly Technical Meetings, The Fairmont Palliser Hotel February 10 • March 10 • May 12 • June 9 • September 8 • October 13 • November 10 • December 8

Edmonton Contact: Fenna Poelzer (fpoelzer@nacg.ca) City: Edmonton, Alberta Monthly Meetings, University of Alberta Faculty Club, 6:00 p.m. January 11 • February 1 • March 1 • April 12 • September 13 • October 4 • November 1 • December 13

Oil Sands Contact: Christian West (west.christian@syncrude.com) City: Fort McMurray, Alberta January 31 Curling Funspiel, MacDonald Island Park April Annual General Meeting, Father Mercredi High School May Student Night, Father Mercredi High School June Golf Tournament, Fort McMurray Golf Club Summer Student Paintball Event, Thunder Ridge Paintball Technical Talks, Father Mercredi High School February • March • September • October • November

Yellowknife Contact: David Watson (david_watson@gov.nt.ca) City: Yellowknife, Northwest Territories January Seafood Night February Guest speaker Ryan Silke, author of “The Operational History of Mines in the NWT” August Golf Tournament

District 6 Crowsnest Contact: Chris Ryan (Chris.Ryan@teck.com) City: Fernie, British Columbia January Dinner presentation, Best Western February 1st Annual CIM Crowsnest Branch Ski Trip March 2nd Annual CIM Crowsnest Branch Curling Funspiel April Dinner Presentation June 8th Annual CIM Golf Tournament – Scholarship Fundraiser, Fernie Golf & Country Club

Georgia Strait City: Campbell River, British Columbia Events still in planning stage

North Central BC Contact: George Zervas (gzervas@gibraltarmine.com) City: Prince George, British Columbia February 6 Inaugural CIM North & South Central BC Branch Curling Bonspiel 2010, Williams Lake, British Columbia June 23-25 CIM North Central BC Branch Annual General Meeting

South Central BC Contact: Peter Witt (pwitt@hvcopper.com) City: Kamloops, British Columbia February 6 Inaugural CIM North & South Central BC Branch Curling Bonspiel 2010, Williams Lake, British Columbia April 29 Presentation by CIM Distinguished Lecturer Don Thompson September 15-17 CIM South Central BC Branch Annual General Meeting and Convention, Kamloops Towne Lodge

Trail Contact: Marvin Neufeld (marvin.neufeld@teck.com) City: Trail, British Columbia February Annual General Meeting

Crowsnest Branch Golf Tournament

Vancouver Contact: Patty Moore (patty.moore@wardrop.com) City: Vancouver, British Columbia January Luncheon meeting in conjunction with Mineral Exploration Roundup 2010, Westin Bayshore Hotel November Student Night Luncheon Meetings March • April • May • June • September • October

International Bishkek – Central Asia Contact: Kenneth Arne (kenarne1@yahoo.com) City: Bishkek, Kyrghyzstan Events still in planning stage

Los Andes – Chili Contact: John Selters (jselters@vtr.net) City: Santiago, Chile Events still in planning stage

Los Andes Branch

December 2009 / January 2010 | 119

cim news Cast your votes Amendments to CIM By-Law No. 1 By Heather Ednie Continuity, clarity and efficiency are the three main goals of the proposed amendments to CIM By-Law No. 1. In order to meet current standards and match actual practices, CIM members must cast their votes before these changes can be formally approved. The proposed amendments are the result of a two-year revision process headed by past president Jim Popowich. The new by-law was reviewed and approved by CIM Council on August 29 of this year. Its fate is now in the hands of CIM members. Why is it necessary to amend the CIM by-law? Best Practice — Recommended “best practice” is that a bylaw should be reviewed and amended, if necessary, each year to keep it consistent with changing practices, policies, regulations and legislation. Non-profit organizations are advised to conduct a comprehensive review every five to eight years. The current by-law was last revised in 1997. Structure — The structure of the current by-law does not conform to contemporary formats recommended by Industry Canada, pending not-for-profit legislation and common practice in other non-profits. One concise document — The current by-law omits important elements of CIM Council powers that are normally contained in a by-law, and others that are now contained only in the badly dated statutes that enabled the creation of CIM. The proposed by-law rewrite will bring all these provisions into one document. Clarity — Clauses in the current by-law do not follow a logical grouping. Provisions related to meetings of Council and members all fall in one series of clauses, even though provisions may differ for different types of meetings. Additionally, “Powers” of Council have been scattered throughout the document or in enabling statutes. Efficiency — The by-law has not kept up-to-date with CIM Council and administrative practices, thereby creating issues of both legality and administrative efficiencies (e.g. online rather than conventional mail paper balloting). Good governance — CIM Council recently approved a comprehensive set of new ‘governance policies’ intended to bring them in line with contemporary practice, establish a “Code of Business Conduct,” restructure committees and entrench current practices related to governance and decision-making, and to clarify relationships between Council and staff, and between CIM and its ‘business units’ (societies and branches). Continuity — Council’s desire to create a new “Incoming President-elect” position to provide additional continuity and orientation in the succession planning for senior officers requires significant amendments to the by-law. So too does the “best practice” of staggering director terms of 120 | CIM Magazine | Vol. 4, No. 8

office to provide greater continuity in Council members, thereby eliminating significant annual turnover and the loss of directors who may just be getting fully oriented at the end of their first year. Orientation — The current one-year term for directors new to Council, combined with the infrequency of Council meetings, has made it difficult for new directors to get fully oriented to issues and procedures in that term. The term of office for directors will be increased to two years to address this problem and provide greater continuity to Council. Skill sets — The current process for selecting directors has often left the Council short of certain important skill sets, such as financial or legal. The proposal to allow Council to appoint two or three “directors-at-large” would potentially compensate for such deficiencies. This allows, in particular, appointment of a Finance Chair from outside the group of elected directors if financial expertise is not present amongst those directors. Attendance — Quorum for the annual general meeting and special meetings has been reduced from 50 to 25 to reflect the realities of past attendance at the AGMs. The provision for proxy attendance has been eliminated as it is inconsistent with best practices in governance and is administratively cumbersome. Procedure — Provisions to allow voting by alternates for directors unable to attend Council meetings has been eliminated since it makes it too easy for directors to send a replacement (who is often not conversant with issues or the debate history around them). This has often resulted in inefficient use of Council time bringing alternates “up to speed” and disrupts continuity. It is also not a recommended practice to have alternates with voting rights. Observers will be allowed by invitation of a director. It is now up to you, CIM members, to make your voices heard. Read the documents available on the CIM home page (www.cim.org) and cast your votes before January 18, 2010. Help CIM become more efficiently structured — go online and vote today. CIM

Moving on up Houston Lake Mining Inc. appointed Robert Callander to its board of directors. Callander, a senior investment industry executive with three decades of experience, is a vicepresident at Caldwell Securities Ltd. and a member of Caldwell Securities Investment Management. He is a member of the Association for Investment Management and Research and the Toronto Society of Financial Analysts.

cim news L’ICM passe au vote Modifications des règles de son Règlement intérieur no. 1 La continuité, la clarté et l’efficience sont les trois buts principaux des amendements proposés au Règlement intérieur no. 1 de l’ICM. Afin de se conformer aux normes actuelles et correspondre aux pratiques réelles, les membres de l’ICM doivent voter avant que ces changements ne puissent être formellement approuvés. Les amendements proposés sont le résultat d’un processus de révision d’une durée de deux ans mené par l’ancien président Jim Popowich. Le nouveau règlement intérieur a été révisé et approuvé par le Conseil de l’ICM le 29 août dernier. Son sort repose maintenant entre les mains des membres de l’ICM. Pourquoi l’ICM doit-il modifier les règles de son Règlement intérieur? Pratique exemplaire – Une « pratique exemplaire » recommande d’examiner et de modifier un règlement intérieur chaque année au besoin, pour qu’il reste conforme aux pratiques, politiques, lois et règlements changeants. Les sociétés sans but lucratif sont invitées à effectuer un examen complet tous les cinq à huit ans. Le Règlement intérieur actuel a été modifié pour la dernière fois en 1997. Structure – La structure du Règlement intérieur actuel n’est pas conforme au format contemporain recommandé par Industrie Canada, aux lois en cours sur les sociétés sans but lucratif et aux pratiques communes d’autres sociétés sans but lucratif. Un document concis – Le Règlement intérieur actuel omet des éléments importants régissant les rôles et les responsabilités du Conseil qui sont habituellement indiqués dans un règlement intérieur, ainsi que d’autres éléments qui ne sont actuellement inclus que dans les lois tout à fait dépassées ayant permis la création de l’ICM. La réécriture proposée du Règlement intérieur permettra d’intégrer toutes ces dispositions dans un document. Clarté – Les clauses du Règlement intérieur actuel ne sont pas présentées selon un regroupement logique. Par conséquent, les dispositions liées aux réunions du Conseil et des membres entrent toutes dans une seule série de clauses, même si les dispositions peuvent varier pour différents types de réunions, et les « pouvoirs » du Conseil ont été dispersés dans l’ensemble du document ou dans les lois habilitantes. Efficience – Le Règlement intérieur n’a pas été tenu à jour selon les pratiques administratives du Conseil de l’ICM, ce qui a créé des problèmes d’efficience tant sur le plan juridique que sur le plan administratif (p. ex. scrutin en ligne au lieu d’un scrutin par courrier ordinaire). Bonne gouvernance – Le Conseil de l’ICM a récemment approuvé un ensemble détaillé de nouvelles « politiques de gouvernance » pour les harmoniser avec les pratiques contemporaines, établir un « code de conduite professionnelle », restructurer les comités et fixer les pratiques actuelles liées à la gouvernance, au processus décisionnel, et préciser les relations entre le Conseil et le personnel de même qu’entre l’ICM et ses « unités opérationnelles » (sociétés et sections).

Continuité – Il faut apporter des modifications importantes au Règlement intérieur afin que le Conseil puisse créer un nouveau poste de « président élu entrant » pour assurer une continuité supplémentaire et une orientation dans la planification de la relève des dirigeants supérieurs, ainsi qu’à la « pratique exemplaire » d’échelonnement dans le temps du mandat des administrateurs pour assurer une plus grande continuité aux membres du Conseil. Cela permettra donc d’éliminer un important roulement annuel et la perte d’administrateurs qui commencent à bien comprendre les questions vers la fin de leur première année. Orientation – Le mandat actuel d’un an des nouveaux administrateurs du Conseil, jumelé à la rareté des réunions du Conseil ne permet pas aux nouveaux administrateurs de s’initier pleinement aux questions et aux procédures pendant leur mandat. La durée du mandat des administrateurs sera prolongée à deux ans pour régler ce problème et assurer une plus grande continuité au Conseil. Ensemble de compétences – Le processus actuel de sélection des administrateurs ne permet pas toujours au Conseil d’obtenir certains ensembles de compétences importants, tels que des compétences financières ou juridiques. La proposition permettant au Conseil de nommer deux ou trois « administrateurs par mandat spécial » pourrait compenser ces lacunes. Le processus permettrait tout particulièrement de nommer un directeur des Finances provenant de l’extérieur du groupe d’administrateurs élus si personne au sein du groupe ne possède une expertise financière. Présences – Le quorum de l’assemblée générale annuelle et des réunions extraordinaires a été réduit de 50 à 25 pour tenir compte des réalités des assemblées générales annuelles (AGA) antérieures. La disposition concernant les mandataires a été éliminée, du fait qu’elle n’est pas conforme aux pratiques exemplaires en matière de gouvernance et que les formalités administratives sont lourdes. Procédures – Les dispositions permettant à des remplaçants de voter pour les administrateurs n’étant pas en mesure de participer aux réunions ont été éliminées, étant donné qu’il était trop facile pour les administrateurs d’envoyer un remplaçant (qui souvent ne connaît pas les questions ou leur historique). Cette situation a souvent entraîné une utilisation inefficace du temps du Conseil qui doit informer les remplaçants des questions traitées, en plus de nuire à la continuité. De plus, il n’est pas recommandé d’accorder des droits de vote aux remplaçants. Les observateurs seront admis sur invitation d’un administrateur. C’est maintenant à vous, membres de l’ICM, de vous faire entendre. Lisez les documents disponibles à la page d’accueil de l’ICM (www.cim.org) et votez avant le 18 janvier 2010. Aidez l’ICM à être mieux structuré – allez en ligne et votez dès aujourd’hui. ICM December 2009 / January 2010 | 121

cim news CIM National Office | Bureau national de l’ICM (514.939.2710)

Front row, from left to right: Andrea Nichiporuk, Robbie Pillo, Brigitte Farah, Laura Foley, Chantal Murphy, Kim Couture; middle row: Alexandra Cyr, Anne Brosseau, Joan Tomiuk, Anne Brunet, Angela Hamlyn, Elaine Kinsella, Dawn Nelley, Ryan Bergen, Teresa Barrett; back row: Jean Vavrek, Jean-Marc Demers, Martin Bell, Serge Major. (Missing from photo: Josée Dallaire, Ronona Saunders and Jo-Anne Watier)

Name | Nom

Title | Titre

Extension | Poste

Email | Courriel

Executive | Exécutif Jean Vavrek

Executive Director/Directeur exécutif

1301

jvavrek@cim.org

Jean-Marc Demers

Senior Director, Business Management and Strategic Development/ Directeur principal, gestion des affaires et développement stratégique

1314

jmdemers@cim.org

Serge Major

Director, Finance and Administration/ Directeur, finances et administration

1318

smajor@cim.org

Anne Brunet

Executive Assistant/Adjointe éxécutive

1302

abrunet@cim.org

Events and Supply Management | Événements et gestion des fournitures Martin Bell

Sales Manager, Exhibitions/Directeur des ventes, salons commerciaux

1311

mbell@cim.org

Josée Dallaire

Coordinator, Exhibits and Event Development/ Coordonnatrice, salons et développement événementiel

1320

jdallaire@cim.org

Chantal Murphy

Meetings Coordinator/Coordonnatrice de congrès

1309

cmurphy@cim.org

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

cim news Finance and Administration | Finances et administration Anne Brosseau

Accounts Payable and Special Volumes/ Comptes payables et volumes spéciaux

1313

abrosseau@cim.org

Elaine Kinsella

Accounts Receivable/Comptes à recevoir

1312

ekinsella@cim.org

Alexandra Cyr

Cash receipts/Encaissements

1328

acyr@cim.org

Kim Couture

Customer Service/Service à la clientèle

1300

kcouture@cim.org

Media and Communications | Médias et communications Angela Hamlyn

Editor-in-chief/Rédactrice en chef

1303

ahamlyn@cim.org

Joan Tomiuk

Technical Editor/Rédactrice technique

1310

jtomiuk@cim.org

Andrea Nichiporuk

Section Editor/Chef de rubrique

1323

anichiporuk@cim.org

Ryan Bergen

Section Editor/Chef de rubrique

1324

rbergen@cim.org

Robertina Pillo

Coordinator, Communications, Awards and Branches/ Coordonnatrice, communications, prix d’excellences et sections locales

1316

rpillo@cim.org

Membership | Services aux membres Teresa Barrett

Membership Liaison Agent/Agent de liaison membres

1322

tbarrett@cim.org

Laura Foley

Membership Database Coordinator/ Coordonnatrice, base de données des membres

1307

lfoley@cim.org

Dawn Nelley

Membership Assistant/Adjointe, services aux membres

1307

dnelley@cim.org

Jo-Anne Watier

Membership Assistant/Adjointe, services aux membres

1322

jwatier@cim.org

Metallurgical Society of CIM | Société de la métallurgie de l’ICM Brigitte Farah

Manager, Administration and Meeting Planning/ Directrice, administration et planification de conferences

1329

bfarah@cim.org

Ronona Saunders

Coordinator, Marketing and Publications/ Coordonnatrice, marketing et publications

1327

rsaunders@cim.org

ADVERTISING SALES (905.886.6641) Sales representatives | Représentants des ventes Joe Crofts

Account Manager/Directeur de comptes, Dovetail Communications

jcrofts@dvtail.com

Janet Jeffery

Account Manager/Directeur de comptes, Dovetail Communications

jjeffery@dvtail.com

CIM COUNCIL | CONSEIL DE L’ICM 2009-2010 Executive | Exécutif

Vice-presidents | Vice-présidents

President | Président Michael Allan

District 1 Paul Smith

President-Elect | Président élu Chris Twigge-Molecey

District 3 Paul Hébert

Incoming President-Elect | Président élu entrant Chuck Edwards

District 5 David Leslie

Immediate Past President | Président sortant James Gowans

International Peter Lahucik

District 2 Serge Perreault

District 4 Eric Hinton

District 6 Sean Waller

Finance Chair | Président des finances Michael Cinnamond

Societies | Sociétés Rob Henderson Bruce Bernard David Bleiker Dan Brisbin Mel Harju Keith Spence Mahesh Chaturvedi Martin Drennan Bob MacDonald John Rhind James Archibald Zoltan Lukacs

Canadian Mineral Processors Society | Société canadienne du traitement des minerais Coal and Industrial Minerals Society | Société du charbon et des minéraux industriels Environmental Society | Société de l’environnement Geological Society | Société de la géologie Maintenance and Engineering Society | Société de l’ingénierie et de l’entretien Management and Economics Society | Société de gestion et de l’économie minérale Metallurgical Society | Société de la métallurgie Metal Mining Society | Société de l’exploitation des mines et des métaux Mining Society of Nova Scotia | Société minière de la Nouvelle-Écosse Oil Sands Society | Société des sables bitumineux Rock Engineering Society | Société de la mécanique des roches Society for Innovative Mining Technology | Société des technologies minières innovatrices December 2009 / January 2010 | 123

executive summaries

YOUR

GUIDE

TO INDUSTRY KNOWLEDGE

Peer reviewed by leaders in their fields CIM Bulletin abstracts 125

Improving mining and minerals plant performance â&#x20AC;&#x201D; operations and maintenance working together using new information technology by G. Johnson and C. Munro

126

Geomechanical feature extraction and analysis using LiDAR data: IOC mine by M. Lato, D.J. Hutchinson, and M. Diederichs

127

Exploration and Mining Geology Journal Volume 18, Numbers 1 to 4

128

Canadian Metallurgy Quarterly Volume 48, Number 2

Complete CIM Bulletin papers are posted in the online Technical Paper Library

www.cim.org 124 | CIM Magazine | Vol. 4, No. 8

executive summaries Improving mining and minerals plant performance — operations and maintenance working together using new information technology Operations and maintenance departments have had a long-standing adversarial relationship. One of the barriers to a more cooperative relationship has been disconnected information systems that have embodied the old, local optimization paradigm. In response to this disconnection, new information technology approaches are being developed that complement the existing management methodologies and help bridge the gap between maintenance and operations.

New information technology solutions New information technologies, such as service-oriented architecture (SOA) and web services, are receiving wide publicity. These technologies have a key aim of improving interoperability (or the ability of applications and systems to share information and exchange services with each other based on standards) and to cooperate in processes using the information and services. An example of integration using these concepts is master data synchronization between an EAM system and a MES system. Both systems are designed for a specific purpose with a specific architecture, but need to be linked in order to facilitate communication. Information technology enablers also allow the development of such things as composite applications, or applications that use services to provide user-driven (or process-driven) applications. An example would be taking real-time plant stoppage information and displaying it with transaction-based maintenance planning data. In this case, the combination of the two sets of data would be used proactively in a maintenance/operations planning process for tactical optimization.

E N G I N E E R I N G

On the operations side, management best-practices include: • Lean production — As RCM was the biggest change in thinking in maintenance, the concepts of lean production have been the biggest breakthrough in production. Developed at Toyota, the core concept of “lean” is to achieve continuous flow; the best way to achieve flow is to reduce all kinds of waste. Like manufacturing and services companies, mining and minerals companies are now starting to embrace the concepts of “lean.” • Use of production systems — Most companies today use a management information system to record production data. The most common name for this style of system is a manufacturing execution system (MES). These systems are available commercially and offer many benefits over manual systems, including elimination of double handling of data, capability of real-time analysis and proactive response.

Although developed to support maintenance (CMMS, EAM) and operations (MES), the information systems have not been truly integrated in the way needed. Complicated plants, different software architectures, continually changing conditions and many other variables have led to various systems problems that have contributed to the maintenance/operations divide.

Historically, a number of management best-practices have evolved in an effort to unite the operations/maintenance divide. On the maintenance side, these include: • Maintenance strategy and reliability-centred maintenance — The cause of difficulties between maintenance and operations is often an unclear understanding of the purpose and goals of maintenance in a specific plant. The need for a formal framework led to the development of reliability-centred maintenance (RCM), one of several processes developed to help companies determine the best maintenance and engineering policies for managing physical assets. • Maintenance systems — Maintenance systems are used to implement and control the business side of maintenance: stores, procurement, labour control, planning and scheduling. Initially, manual systems were used, but with the information age came computerized maintenance management systems (CMMS) and, later, enterprise asset management (EAM) systems.

Maintenance/operations systems issues While maintenance and operations have typically had a difficult relationship in the past, many advances have been made in terms of people and methodology. However, one area that has lagged behind in supporting these developments is information systems.

M A I N T E N A N C E

Technical Note

Conclusion The relationship between maintenance and operations has been the subject of much thought in order to improve overall plant performance. One area that has contributed to a divide between maintenance and operations has been information systems. However, new technologies are coming onstream today to enable the final bridging of the gap.

G. Johnson and C. Munro, Schneider Electric, Brisbane, Australia December 2009 / January 2010 | 125

executive summaries

R O C K

E N G I N E E R I N G

Geomechanical feature extraction and analysis using LiDAR data: IOC mine The ability to remotely collect valuable information that can be used for geomechanical evaluations is now possible due to the development of rapid, highly accurate scanning devices, which are invaluable for mining operations. This is particularly the case where rockfalls or pit wall failures may occur, endangering personnel who are mapping the face using conventional methods. LiDAR (light detection and ranging), is a range-based imaging technique that measures the time a light source (typically a laser) reflection from an object is received, which is in turn used to determine a referenced location. Static LiDAR data collection equipment can sample up to 500,000 points per second at ranges up to 1,500 m, depending on the equipment employed. The advantages of remotely sensed digital data, in comparison to traditionally collected geomechanical data, include safety, logistics and the ability to re-check analyses at any time. This paper shows the accuracy and validity of remotely sensed digital data, compared with traditional methodologies. To this end, a collaborative practical research project was established between Rio Tinto, the Iron Ore Company of Canada (IOC) and the Department of Geological Engineering at Queen’s University. The goal of the project was to test the limitations of the I-Site 4400 in various working environments, establish workflows and limitations, and perform comparative analyses between traditionally collected data and LiDAR derived data. The project was specific to the IOC mines; thus, only the software and hardware currently in use by the mine was utilized in the geomechanical evaluations.

The LiDAR data collected for this project was used for the extraction of planar features, such as joint or fault surfaces visibly present in the pit walls. The features were extracted using the Vulcan geotechnical module through a manual process. Although automated processes do exist, they are currently not in place at the IOC mine, nor is the software available on site. After the collection, processing and extraction of features, the results were compared to traditionally mapped analyses. Due to the magnetic influence of the iron present in the ore, structures were evaluated using an inclinometer and clino rule, with respect to a traverse line. Comparisons of the resultant data from both digital feature extraction using Vulcan and traditionally mapped data were completed using Dips, a graphical and statistical data orientation program. The comparative analysis was completed by independently analyzing the datasets for integrity and then using common joint-set windows to perform statistical tests on the subsequently segmented data. The orientation of the individual sets, as well as the confidence in the mean and the variability with the dataset, were evaluated. The results demonstrated significant correlation between the methods, as well as limitations for each method. Joint surfaces parallel to the bench face pose the greatest challenge for accurate mapping using traditional methodologies. This challenge is due to the joint surfaces’ distant intersection with the traverse line. Structures perpendicular to the bench face proved to be the most challenging to accurately map using the LiDAR data, due to their minimal representation in the resultant point cloud. The results of this project included specific guidelines and operating workflows to enable the use of LiDAR equipment as a geomechanical mapping tool. Analysis proved the validity of the I-Site 4400 as a geomechanical mapping tool and the procedure has been adopted in the regular work of the IOC pit operations.

M. Lato, D.J. Hutchinson and M. Diederichs, Geological Sciences and Geological Engineering, Queen’s University, and The GeoEngineering Centre at Queen’s - RMC, Kingston, Ontario 126 | CIM Magazine | Vol. 4, No. 8

emg abstracts

Exploration and Mining Geology Journal Volume 18, Numbers 1 to 4 Use of twinned drill holes in mineral resource estimation M.Z. Abzalov, MASSA Geoservices, Mt. Claremont, Australia (currently at: Rio Tinto Exploration, Belmont, Australia Abstract — Drilling twinned holes is a traditional technique used for verification of intersections of high-grade mineralization, testing of historic data, or confirmation of drill hole data during geological due diligence studies. Twinned holes can also be used for special tasks such as correcting earlier data that are recognized to be biased. Successful implementation of the twinned holes technique requires thorough planning. Experience suggests that good practice is to drill twinned holes no more than 5 m apart. Many unsuccessful twinned holes programs could possibly have failed because twinned holes have been drilled too far apart. Twinned holes are best compared by mineralization intersections, and, if the data and geological characteristics of the deposit permit, by samples, equal-length composites or geological units. Variables to be verified by twinned holes should include thicknesses of the geological units of interest (e.g. mineralized thickness) as well as presence of significant geological features (e.g. ore/mineralization contacts, alteration, etc.). A formal, rigorous analysis of twinned-hole data is essential. Repeatability of sampling, analytical results and bias need to be analyzed and statistically quantified. The number of twinned holes required for conclusive statistical and geostatistical analysis can be as high as 20–30, in particular where the studied variables are characterized by high short range (local) variability. Efficiency of this approach is demonstrated by several examples of successfully applied twinned hole projects, including applications to orogenic gold, mineral sands, bauxite and banded iron formation iron deposits. Résumé — Le jumelage de trous de forages est une technique traditionnellement utilisée pour la vérification d’intersections minéralisées à haute teneur, la confirmation de données historiques ou la validation de données de forage lors de l’exercice d’un mandat d’audit préalable. Le jumelage de trous peut également être utilisé dans des buts particuliers, tel que la correction de données pré-existantes que l’on sait être biaisées. Une planification rigoureuse est nécessaire à un usage réussi de cette technique. Notre expérience suggère que des forages jumelés ne devraient pas être distants de plus de cinq mètres. L’échec de plusieurs programmes de forages jumelés pourrait avoir été causé par un écart trop grand entre les forages. Il est préférable de comparer une intersection minéralisée à la fois dans les trous jumelés et, si les données et les caractéristiques du gisement le permettent, une seule paire d’échantillons, de composites de longueur égale ou d’unités géologiques. Les variables dont il faut tenir compte dans les trous jumelés devraient comprendre l’épaisseur des unités géologiques d’intérêt (l’épaisseur minéralisée, par exemple) ainsi que la présence d’éléments géologiques significatifs (contacts avec la minéralisation, ou zones d’altération, par exemple). Une analyse rigoureuse et formelle des données d’un programme de forages jumelés est essentielle. La reproductibilité de l’échantillonnage, les résultats analytiques et le biais analytique doivent être quantifiés et analysés statistiquement. Le nombre de trous jumelés nécessaire pour une analyse statistique et géostatistique concluante peut être aussi élevé que 20-30, particulièrement quand les variables étudiées présentent une forte variabilité à l’échelle locale. L’efficacité de cette approche a été démontrée par de nombreux exemples de programmes de jumelage de trous complétés avec succès; incluant des exemples provenant de dépôts d’or de type orogénique, de placers minéraux, de gîtes de bauxite et de formations de fer rubanées.

Excerpt taken from abstracts in EMG, Vol. 18, Nos. 1 to 4. Subscribe—www.cim.org/geosoc/indexEMG.cfm

December 2009 / January 2010 | 127

cmq abstracts

Canadian Metallurgical Quarterly Volume 48—Number 2, April 2009 Numerical Simulation and Experimental Study of the Solidification of a Wedge-Shaped AZ31 Mg Alloy Casting Y. He, A. Javaid, E. Essadiqi and M. Shehata, CANMET – Materials Technology Laboratory, Natural Resources Canada, Ottawa, Ontario The solidification process of a wedge-shaped AZ31 (Mg-3%Al-1% Zn in wt%) magnesium alloy casting was simulated using an in-house object-oriented finite element (OOFE) code. The distributions of temperature and solid fraction in the casting at different solidification stages were obtained which revealed the solidification characteristics of the wedge casting. The simulated cooling curves at various locations along the centreline of the casting were compared with those measured by thermocouples and very close cooling behaviours were observed. The cooling rate at the tip of the casting, which is impossible to measure, was calculated based on numerical simulation. The solidification structure, especially the secondary dendrite arm spacing (SDAS), at each thermocouple location was correlated to the local solidification time using a common power function and the associated constants for AZ31 Mg alloy were determined. Inference of Optimal Speed for Sound Centrifugal Casting of Tin P.G. Mukunda, R.A. Shailesh, Department of Mechanical Engineering, Nitte Meenakshi Institute of Technology, Yelahanka, Bangalore, India, and S.R. Shrikantha, Department of Mechanical Engineering, National Institute of Technology, Surathkal, Karnataka, India During centrifugal casting when a mould is rotated at low and very high speeds, defects are found in the final castings. Obtaining the critical speed for sound castings should not be a matter of guessing but based on experience. The defects in the casting are mainly due to the behaviour of the molten metal during the teeming and solidification process. The motion of molten metal at various speeds and its effect during casting are addressed in this paper. Tin is taken as an experiment fluid and its performance during various rotational speeds is discussed. The microstructures and hardness of all the castings are also investigated.

Excerpts taken from abstracts in CMQ, Vol. 48, No. 2. Subscribe — www.cmq-online.ca

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

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December 2009 / January 2010 | 129

voices from industry

Canada’s role and responsibility on the international stage By Gordon Peeling, president and CEO, Mining Association of Canada

anada’s mining and mineral development expertise dates to the earliest days of our country. Indeed, the Geological Survey of Canada was established in 1842, a full 25 years before Confederation. Magnetic abnormalities were discovered in the Sudbury region in 1856 and a mining settlement was established in 1883, leading to 125 years of regional mineral development, value-added processing and wealth creation. In the ensuing decades, wealth has been created across the country — from gold in Quebec, base metals in Manitoba and coal in British Columbia to oil sands in Alberta, uranium in Saskatchewan and diamonds in the Northwest Territories. Mining generates significant employment, supplier relationships, tax payments and other benefits. The sector’s strengths are underpinned by innovative tax policies and sophisticated public and private sector technical skills, among other variables. Canada’s mining industry plays a similar role internationally, with many companies having large global footprints. While our international presence grew most significantly after the global decline of nationalization in the 1980s, Canadian companies have invested abroad even as far back as the 1930s when Noranda acquired a controlling interest in Nicaraguan gold mines. Foreign investment by Canadian mining firms has grown five-fold, from $13 billion in 1990 to $67 billion today. Companies such as Barrick Gold and Teck Resources have operations in many countries, including the United States, Peru, Chile, Argentina, South Africa, Australia and Tanzania. Barrick, Cameco and Potash Corporation of Saskatchewan have become the world’s largest gold, uranium and potash companies, respectively, while Teck is the world’s second-largest exporter of steel-making coal. Almost 5,000 mining projects financed through the TSX are located outside Canada. About 60 per cent of the world’s mineral exploration companies are Canadian — and they have interests in over 100 countries. The PDAC’s annual conference draws delegates from over 100 countries. This global leadership role is something that all Canadians should be proud of.

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

Mining activities can never be truly environmentally benign. Extracting ore from rock, where it may constitute less than one per cent volume, poses many technical challenges. Similarly, turning raw concentrate into 99.99 per cent pure metal also poses innumerable challenges, many of which have environmental considerations. Society needs such pure metal for cell phones, aircrafts, computers, solar energy, medical equipment and a host of other products used by social and environmental groups, businesses and average Canadians. Canada’s mining industry has strong expertise in minimizing and managing environmental risks. It also draws upon global networks to fill in knowledge gaps. Within our association, we facilitate regular dialogue on environmental and social issues through several committees and esteemed entities such as the Mine Environment Neutral Drainage program, the National Orphaned/Abandoned Mines Initiative, Towards Sustainable Mining, the Organisation for Economic Cooperation and Development, and the International Council on Mining and Metals. Operations in developing countries bring added layers of complexity, involving transporting products over inadequate infrastructure, working with still-developing environmental and tax regimes, and drawing upon a labour supply that may not have advanced mining skills. Canadian companies work within these situations, making significant social and capacity-building investments that are documented within their corporate social responsibility reports. Progress in this regard is reinforced by rules and principles espoused by the World Bank, the Equator Principles banks, export credit agencies like EDC, and by the global accountability plan that was recently adopted by the Canadian government. Our industry’s view is that the values contained in Bill C-300, a recent Opposition Private Member’s bill introduced in the House of Commons, run contrary to our established constructive culture and direction. The Bill opens wide a path through which NGOs or foreign companies could launch vexatious and frivolous complaints against Canadian mining and energy companies — with uncertain timelines, standards and mechanisms to resolve the allegations. The Bill would facilitate intrusion by the federal government into the other countries’ affairs that would be neither effective nor constructive. Defeating the proposed legislation would be the best way to ensure that Canadian companies continue to bring their skills, investments and community-building expertise to the world. CIM

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