Mine Idaho 2018-2019

mIne Idaho Official Publication of the Idaho Mining Association

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Renewed interest and excitement in mining and minerals in Idaho

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The Upper Blackfoot Confluence, an unusual collaboration

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The Women’s Mining Coalition: Advocating for the mining community since 1993

2018-2019

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INSIDE THIS ISSUE 6

Message from the Idaho Mining Association Board President Alan Prouty

8

Message from the Idaho Mining Association Executive Director Benjamin Davenport

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Idaho Mining Association members

11

IMA member benefits

12

IMA principles

13

IMA membership information

14

2018 with the Idaho Mining Association: A year of mining and meetings

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Renewed interest and excitement in mining and minerals, with projects in all corners of Idaho

18

2018-2019

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Published by DEL Communications Inc. www.delcommunications.com

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President David Langstaff

eCobalt: First in mine and mill Hecla Mining Company: Not your father’s mine

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Nothing but bore-ing: A look at I-Mineral’s most exciting minerals

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Advertising Sales Brent Astrope | Ross James Nick Miller | Kari Philippot Gary Seamans

Bayer’s Caldwell Canyon Mine: All about sustainability Itafos, Idaho’s newest phosphate fertilizers and specialty products company

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Why legacies of the past are driving one mining company forward

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Revival Gold Inc.: Now and then

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The J.R. Simplot Company: Leading the way in phosphate production

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The Women’s Mining Coalition: Advocating for the mining community since 1993

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Idaho mining: A 2018 summary of trends and potential

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Americas Silver Corporation: A look into the future

Managing Editor Taryn Rittberg Toll Free: 1.855.837.0976

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42

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Publisher Jason Stefanik

Advertising Sales Manager Dayna Oulion Toll Free: 1.866.424.6398

The Upper Blackfoot Confluence, an unusual collaboration The National Energy Foundation’s Out of the Rock educator workshop: Educating Idaho for more than two decades

mIne Idaho

Unlocking the magic of mining Idaho glimmers in the mining spotlight

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Fletcher custom designs mechanized bolters for narrow applications

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First Cobalt: Creating a North America Cobalt supply chain

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Index to advertisers

Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director / Design Kathy Cable Advertising Art Dave Bamburak | Dana Jensen Contributing Writers Hugh Agro | Darren Blasutti Trent Clark | Benjamin Davenport John Davies | Virginia Gillerman Barry Girling | Fiona Grant Janet Hatch | Josh Jordan Mark Kirby | Daniel McGroarty Alan Prouty | Taryn Rittberg Luke Russell | George Salamis Laurel Sayer | Heather Smyles Andrea Totino | Lynne Volpi Randy Vranes | Robert Winslow

© Copyright 2018. All rights reserved.

The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.

While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers.

Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

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4 Mine Idaho

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Message from the Idaho Mining Association Board President Alan Prouty

Mining in Idaho has a long History and a bright future

I

daho is known as the Gem State for a reason: the land of Idaho contains gems and minerals such as silver, gold, molybdenum, antimony, copper, and phosphate that have played an important role in our nation’s history.

The search for these “gems” is what fueled­earlier settlers to Idaho. In fact, Idaho’s name is related to mining. The word “Idaho” was coined in 1860 by a promoter for a mining district in Colorado. That same year, a steamboat on the Columbia River was named the Idaho since it carried miners bound for the Clearwater and Salmon River areas to search for gold.

Since those early mining days in the 1860s, mining is still an important part of Idaho. “Silver Valley”, as the area in the northern panhandle is known, has been a center for the mining of silver for over a century. Still today, Hecla’s Lucky Friday mine in the Silver Valley is a major source of silver in our nation. At the other end of the state, in southeastern Idaho, phosphate is mined by Bayer, Itafos, and the J.R. Simplot Company is an important feedstock for the production of nutrients, crop protection chemicals, and other phosphorus additives.

Additional exploration and development in Idaho will further help meet our nation’s need for minerals. Cobalt, a crucial component of

6 Mine Idaho

electronics, is the focus of a project near Salmon by eCobalt. Nearby, Phoenix Global is exploring for copper in the historical copper mining area of Mackay. Liberty Gold and Revival Gold are examining the known gold production areas of Cassia and Lemhi counties respectively. And iMinerals is looking at the Kaolin deposit near Bovill as a source of feldspar and quartz.

And even though mining has been occurring in Idaho for over 150 years, innovation and a renewed emphasis on enhancing natural resources is a part of modern mining. Midas Gold, as a part of a mining gold and antimony project, has incorporated substantial environmental restoration to address historical operations at the Stibnite mining district. This includes measures for improvement of salmon habitat. Likewise, in the phosphate mining district, cooperative work between the three mining companies and two conservation groups resulted in the formation of the Upper Blackfoot Confluence, which has undertaken a number of aquatic improvement and restoration projects in the Upper Blackfoot River watershed.

As you will read in this publication, mining makes a number of major contributions to the Gem State and will continue to do so for many years. s

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Message from the Idaho Mining Association Executive Director Benjamin Davenport

Tremendous growth and support

T

he Idaho Mining Association has seen tremendous growth and support throughout the 2018 year. This growth is credited all of our membership, especially industry members who have continued to engage on the difficult issues we are dealing with daily in the industry. I am proud and honored to be working for folks like you, who make everyday living possible in this country, and who do it in a responsible, sustainable, and ethical manner.

That being said, there are still challenges that remain. It is time for us as an industry to stand up and help our friends, neighbors, and colleagues recognize that our industry is critical to our nation’s self-reliance and success. As an industry, we know that mining makes virtually every aspect of our lives possible, and it is our responsibility to help others understand the role our industry plays in their everyday life and their ability to continue to advance the standard of living throughout the nation and the world.

Most people never give a thought to what goes into the products needed to live their daily life, and I would challenge anyone to try to name a single thing that you accomplished today that could have been done without mining. All we have to do is think about our daily activities to see the influence of mined products.

We live in homes that are built with mined products, we brush our teeth with toothpaste that is made from mined products, make our breakfast on equipment that is mined, and eat food that is grown with the

8 Mine Idaho

help of mined products. We drive in cars, ride bikes, talk on phones, use roadways, and type on computers that are all made from mined products. Even the items that are not directly mined are made available to us indirectly with equipment or tools that have been produced by mined products.

The fact is, according to the Minerals Education Coali­tion, each baby born in 2018 will require 3.03-million pounds of minerals, metals, and fuels in their lifetime. This is not just cell phones, computers, and cars.

We are talking salt, clay, cement, gravel, iron, zinc, and too many other minerals to list, and this number will only continue to grow with advancements in tech­ nology.

How can we as an industry help meet this demand?

How can we as an industry encourage the responsible and sustainable development of Idaho’s diverse set of mineral resources? How can we show people that the industry today is an integral part of everyone’s daily lives? It starts with each of us telling the story of how mining impacts our daily lives and how the rocks we mine become the products we use. It is a story I will continue to tell to all who will listen and even those who may not want to hear. It is a message I am proud to represent. s

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Idaho Mining Association 9

IMA MEMBERS OPERATING MEMBERS

Bayer

Itafos

Hecla Mining Company

J.R. Simplot AgriBusiness Group

DEVELOPING MEMBERS Midas Gold Idaho | Endomines Idaho

EXPLORATION MEMBERS Bunker Hill Mining | Idaho Champion Gold Mines | eCobalt Solutions Inc. | First Cobalt | Idaho CuMo Mining Corp. iMinerals | Integra Resources | Liberty Gold | PhoenixGlobal Mining | Revival Gold | Sunshine Silver Mines

NONOPERATING MEMBERS Thompson Creek Mining | FMC | Solvay USA | Nutrien

ASSOCIATED MEMBERS AECOM | AFFCO | Air Sciences Inc. | Albatross Environmental Processing |Arcadis US | Barker Rosholt & Simpson Ball Ventures | Bilbao & Co. | Bonneville Industrial Supply Company | Brown & Caldwell | Carver Schwarz McNab & Bailey, LLC Cate-Idaho Equipment | CDM Smith | CGS Mule | Conrad & Bischoff, Kimble Oil | Cumberland Surety, Inc. Degerstrom N.A. | EM Strategies | Environmental Resource Management | Formation Environmental LLC | Geo Engineers Geo Syntec Consultants | GHD Services | Givens Pursley | Great Ecology | Haley Aldrich, Inc. | Harmer Steel Products Co. HDR Engineering, Inc. | Holland & Hart | Idaho Power Company | Jadco Manufacturing | Kiewit Mining Group, Inc. Klepfer Mining Services LLC | Modern Machinery | MWH Americas, Inc. | National EWP | New Fields Northwest Environmental Business Council | N.W. Mine Supply | Olympic Engineered Sales Inc. | O’Kane Consultants Open Loop Energy, Inc. |Pace Analytical | Perkins Coie | Rain for Rent | S & G Electric Motor Repair | SBS Associates Smith Power Products | Specialty Construction Supply | Stoel Rives LLP | SVL Analytical | Tierra Group | Tetra Tech Varin Wardwell LLC | Western States Equipment Co. | Worldwide Rental Services

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IDAHO MINING ASSOCIATION

IMA MEMBER BENEFITS INFORMATION Stay informed on up-to-the-minute industry news that might otherwise pass you by. Becoming a member of the Idaho Mining Association (IMA) gives you access to news and developments in the industry along with the opportunity to hear and learn from peers in the industry.

IMA MEMBER BENEFITS

INFORMATION NETWORKING Stay informed on up-to-the-minute industry news thatamight pass you by. Becoming a member of the Idaho Mining Connect and create relationships. The IMA provides greatotherwise networking opportunity for members who want to strengthen ties Association (IMA) gives you access to news and developments in the industry along with the opportunity to hear and learn with clients or colleagues in their industry, hunt for jobs or make long-term connections. from peers in the industry.

STRENGTH & POWER IN NUMBERS NETWORKING Influence how decision are made. Working together, our collective experience on the issues and in navigating the burdensome Connect and create relationships.

Thebenefits IMA provides great networking regulatory environment are valuable all IMAamembers enjoy. opportunity for members who want to strengthen ties with clients or colleagues in their industry, hunt for jobs or make long-term connections.

BEST PRACTICES STRENGTH IN NUMBERS Lead the way&inPOWER implementing industry best practices. Members of the IMA gain resources on what is happening in the industry Influence how decision are made.

Working our start collective experience on issues and in navigating the burdensome to keep our practices safe and efficient and together, have a head on implementing newthepractices as they are amended or change. regulatory environment are valuable benefits all IMA members enjoy.

EVENTS BEST MakePRACTICES staying engaged easy. Companies who join IMA participate in association events focused on forming valuable Lead the wayand in implementing industry best of the IMA gain resources and on what is happening in the industry connections trade shows, seminars andpractices. workshopsMembers that provide valuable connections education opportunities. to keep our practices safe and efficient and have a head start on implementing new practices as they are amended or change.

SUPPORT THE CAUSE AND THE FUTURE EVENTS Amplify industry’s voice, support industry growth and act as a watchdog for mining as a whole. As a member, you will be Make staying Companies participate association focused on forming valuable supporting theengaged mission ofeasy. the IMA and the who workjoin we IMA do. Many of ourinmembers see events the value of helping promote the connections and trade shows, seminars and workshops that provide valuable connections and education opportunities. future of mining.

SUPPORT THE CAUSE AND THE FUTURE Amplify industry’s voice, support industry growth and act as a watchdog for mining as a whole. As a member, you will be supporting the mission of the IMA and the work we do. Many of our members see the value of helping promote the 2016 ECONOMIC IMPACT OF MEMBER FIRMS future of mining.

2,700 jobs | $291 million in payroll | $3.3 million in local property taxes | ~$1 billion in Gross State Product For every 1 direct IMA job, an additional 2.2 jobs are created in Idaho’s economy 2016 ECONOMIC IMPACT OF MEMBER FIRMS 2,700 jobs | $291 million in payroll | $3.3 million in local property taxes | ~$1 billion in Gross State Product For every 1 direct IMA job, an additional 2.2 jobs are created in Idaho’s economy

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IDAHO MINING ASSOCIATION

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IDAHO MINING ASSOCIATION

IMA PRINCIPLES IMA VISION THE IDAHO MINING ASSOCIATION ADVOCATES FOR A RESPONSIBLE AND SUSTAINABLE MINING INDUSTRY, BENEFITING OUR STATE AND LOCAL COMMUNITIES

OUR MISSION

IMA Membership Information

TO BE RECOGNIZED AS THE TRUSTED VOICE OF IDAHO’S MINING INDUSTRY BY… 1. Promoting responsible development of Idaho’s diverse mineral resources 2. Encouraging economic growth by creating and maintaining high quality jobs 3. Encouraging government to support the interests of the membership MEMBERSHIP CATEGORIES 4.

Counseling membership on the industry developments and trends 5. Educating the public on the importance of the mineral industry to society OPERATING 6. Interacting with other organizations on matters of common interest Companies that have produced or processed minerals in Idaho for at least one year.

2019 dues are $29,300

OUR MEMBER VALUES DEVELOPING Companies that have located minerals and are now in the process of contracting/permitting a mine to produce or •Demonstrate Excellence in Safety process minerals.

•Operate in a Manner That Protects the Environment 2019 dues are $5,000 •Communicate Openly with Stakeholders •Engage in Ethical Business Practices NON-OPERATING Companies that were operating members of IMA for at least 3 years, but are not currently producing minerals.

2019 dues are $1,400

WE BELIEVE

EXPLORATION •Idaho’s uniquely diverse mineral base is a major asset of the state and its utilization will enhance the economy Companies that are engaged in the exploration for minerals in Idaho but are not currently producing or processing •A financially healthy mining industry is necessary to derive value from this asset minerals.

•Mining can be conducted in an environmentally responsible manner 2019 dues are $2,500 •A close working relationship with government is necessary to accomplish the IMA mission ASSOCIATED Companies that provide products or services to the mining industry.

2019 dues are based on the volume of business done with the mining industry according to the following schedule.

VOLUME OF BUSINESS Less than $250,000 $250,000 - $500,000 $500,000 - $1,000,000

DUES

$300 $400 $700

VOLUME OF BUSINESS $1,000,000 - $2,500,000 More than $2,500,000

DUES

$1,400 $6,500

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IDAHO MINING ASSOCIATION

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Renewed interest and excitement in mining o and minerals in Idah

2018-2019

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t The Upper Blackfoo l Confluence, an unusua collaboration

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2018

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2018 with the Idaho Mining Association:

A year of mining and meetings

By Ben Davenport We had a busy 2018 at the Idaho Mining Association (IMA), with what seemed like an event always on the horizon. The year began with the Idaho legislature last January which was highlighted by our Annual Legislative Dinner and culminated in November with our Inaugural Idaho Mining Conference.

IMA leadership, Luke Russel and Benjamin Davenport rewarding Representative Marc Gibbs with the Friend of Mining Award during our Annual Legislative Dinner. We had over 100 members and legislators join us for a beautiful evening at the Hillcrest Country Club in 2018. We are looking forward to another great event in 2019.

Idaho Governor C.L. “Butch� Otter kicking off our first Idaho Mining Association Investor Days in Toronto and New York.

In April, the governor along with members of his cabinet joined ten IMA member companies in various stages of mine life on a trip to discuss the benefits of investing in mining projects throughout Idaho. We had a very successful couple of days on Bay Street and Wall Street, with a packed agenda, but we still managed to have a little fun. A big thank you to the Governor and the team!

In June we were excited to host a mine tour of the three phosphate mines in southeast Idaho. It was a fun filled educational day with over 30 people touring the Simplot, Monsanto, and Itafos facilities.

With such a large freshman class of legislators, we look forward to another great tour in the upcoming year!

14 Mine Idaho

In August we were honored to once again host our Federal Congressional Delegation and their staff at our annual Delegation Reception.

We had over 60 members and congressional representatives at the Simplot World Headquarters in downtown Boise, with each of the four offices of Senator Risch, Senator Crapo, Representative Labrador and Representative Simpson being represented. Thank you to all those who sponsored and attended this fun annual event.

In October, the IMA Investor Coalition once again visited our friends in Toronto as the governor was there for a trade mission. We were fortunate to get a little of his time to discuss why now is a great time to invest in mining projects in our state. Our industry is fortunate to have the leadership and support of our elected officials and specifically the support of Governor Otter over the past 12 years.

It was standing room only as over 250 industry representatives filled the Boise Riverside Hotel in November for our inaugural Idaho Mining Conference. IMA teamed up with our local Boise chapter of SME to orchestrate this great event. I cannot thank the SME team enough for their work in getting this show planned, it went off without a hitch. Another huge thank you goes out to our sponsors and our vendors who helped fund a wonderful day as well the great education initiatives that both SME and IMA support.

We look forward to an even better 2019 and hope to see all of you at one or all of these events next year!

Idaho Mining Association 15

Renewed interest and excitement in

mining and minerals,

with projects in all corners of Idaho

By Ben Davenport

O

ver the past year, the Idaho Mining Association (IMA) has seen an influx of companies interested and excited about the resource potential we have in this state. Mining companies see what the people of Idaho already know, that Idaho has a vast and diverse amount of minerals that are locatable, and that Idaho is a jurisdiction where sustainable mining is welcome.

There are many factors leading to this renewed excitement in Idaho. First and foremost, companies are looking for opportunities in areas of the world that provide less risk. North America provides these opportunities. While the U.S. and Canada have rightfully stringent environmental regulations and standards, both countries have little to no risk to the asset once a project is permitted. This expropriation of assets has led more companies to take a harder look at our jurisdictions.

Secondly, Idaho has a rich history in mining. Our state nickname is the “Gem State”, which tells a lot about mining in Idaho. It was the first profession in the state and we have a miner front and cen-

The message was loud and clear, Idaho depends on its traditional natural resource economies and we are “open for business” when it comes to responsible and sustainable mining.

16 Mine Idaho

ter on our state flag. This history combined with our “world class” silver district in North Idaho and our “world class” phosphate district in southeast Idaho has led companies to seek out and focus on projects in our state as they look for new resources.

Idaho’s mineral diversity goes well beyond silver and phosphates. Whether it is gold across central and southern Idaho, the cobalt belt on the central eastern border, industrial minerals throughout Idaho, or the critical minerals and molybdenum around the state, mining companies are seeing the potential in all corners of the state.

Third, Idaho has shown time and time again that it’s policy makers and its regulators are interested in working toward reasonable regulatory solutions that make sense for all stakeholder groups.

Collaboration and consensus are important to citizens of Idaho and it shows in the policies and outcomes that we see coming out of our state capital. In Idaho, we know that mining and the environment can work together, and that these resources can be developed while maintaining a high environmental standard.

In 2018, the Idaho Mining Association, along with our exploration members created the Idaho Mining Association Investor Coalition (IMAIC) and had the opportunity to host our first “Idaho Investor Days” in Toronto and New York City. We were fortunate to have Governor C.L. “Butch” Otter join us along with his Director of the Office of Energy and Mineral Resources, John Chatburn and the Director for the Department of Commerce, Bobbi-Jo Meuleman. The trip was an overwhelming success as we were able to showcase ten projects throughout the state and show why Idaho is a special place to over 90 people in the investment and banking industries. For this reason, we followed up this event with another investor reception in the fall to continue to tell Idaho’s mining story.

The message was loud and clear, Idaho depends on its traditional natural resource economies and we are “open for business” when it comes to responsible and sustainable mining. Investors were receptive to this message and the feedback has been tremendous.

The momentum is building for our industry in Idaho. We need to continue to showcase our resources, lessen our impacts to the environment and improve our mining safety and methods through innovation and technology advances. There is renewed interest in Idaho mining, it is time to stand up and let others know we are here. s

Mining in Idaho has shaped the state’s political boundaries, built cities, and supplied the nation with minerals necessary for today’s modern lifestyle.

Galena Mine

Low geopolitical risk in a high risk world Idaho

Lucky Friday Mine

Arnett Creek Project Beartrack Mine Helmer-Bovill Project Industrial Minerals

Idahoan’s attitudes about mining Boise State University, Statewide Public Opinion Survey, December 2017

Idaho Cobalt Project

84.9%

say natural resources like agriculture, mining and timber are extremely or very important to Idaho’s economy

80.4%

agree mining in Idaho can be done in an environmentally responsible manner

61.2%

think Idaho should lead the way by mining for critical minerals here

Stibnite Gold Project Kilgore Project

Which comes closest to your opinion?

Midas Gold Idaho, Valley and Adams County Public Opinion Survey October 2017

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Global trade is important to the American economy and it is okay to import critical products from countries like China.

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Idaho should lead the way by mining for precious metals here at home, putting America First and reducing our reliance on foreign products.

72.7% America First

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Idaho Mining Association 17

The Upper Blackfoot Confluence,

an unusual collaboration

By Taryn Rittberg and Trent Clark

T

he Upper Blackfoot Confluence (UBC) is a coalition made up of the J.R. Simplot Company, Bayer, and Itafos, three phosphate mining companies working with Trout Unlimited and the Idaho Conservation League to protect native species in southeast Idaho. This innovative collaboration between miners and environmental groups was facilitated by Keith Allred, formerly of Midas Gold Corp in 2012, and has since grown substantially.

This May, a hover of Yellowstone Cutthroat Trout found a new spawning home thanks to this unlikely partnership of mining companies and conservation groups.

The Cutthroat is a threatened species according to various state and federal wildlife agencies. In the past years, the number of Cutthroats in the Upper Blackfoot River has diminished rapidly to around only 20 fish, partly due to an influx of pelicans in the area, which are one of this species’ main predators, as well as due to recreational fishing, as Cutthroat are a popular fish to catch in the Upper Blackfoot River.

18 Mine Idaho

“We have that recreational component, people want to come catch Cutthroat Trout. But we also have a native fish responsibility to ensure that these Yellowstone Cutthroat Trout persist through time,” said David Teuscher, manager of Idaho Fish and Game.

The UBC is working with the Caribou Cattle Company and other landowners to restore a more productive spawning area for the Cutthroat.

“It increases the production dramatically of the fry going downhill if they can spawn here,” said Troy Browning from the Caribou Cattle Company. The Upper Lanes Creek tributary flows directly into the Upper Blackfoot River where the Cutthroat trout will migrate back to when they are done spawning, but not without specialized monitoring tags.

“We have these monitoring locations where it’s kind of like a scanner at the grocery store – they scan your item and it tells you how much it costs. Well these tags, when they swim by one of those scanners, it’s recorded what time of day, what day they went by,” said Teuscher.

Through monitoring of the Cutthroat, the UBC can observe how many survive predation periods, how many spawn, and how many migrate back to their new spawning habitat. In conjunction with the transplant of spawning female Cutthroats into the newly restored headwater areas, these projects hope to restore the Cutthroat population in the UBC. “By bringing projects like this alive, we hope to bring the fish numbers back so that people can enjoy them,” said Matt Woodard from Trout Unlimited.

The project began in 2013 and took a lot of work to restore the three-and-ahalf-mile spawning site, but that work has rewarded in 2018, as the Idaho Fish and Game transplanted dozens of spawning female Cutthroats into the recently restored streams.

This year, partners in the Upper Blackfoot Confluence, including UBC founding member Jon Goode (representing Itafos), along with invited guests from the public, gathered at city hall in Soda Springs, Idaho for the 2018 annual project assessment tour, where Idaho Fish and Game Re-

gional Fisheries manager David­Teuscher explained the value of this habitat restoration project for enhancing the native fishery. Later in the day tour participants joined in to form a “fireman’s chain,” conveying spawning female Cutthroats from conservation transportation at road level (which had been transported to the Blackfoot Reservoir), down to stretches of Upper Lanes Creek, a major tributary of the Blackfoot River which was recently restored thanks to this project.

Today, Idaho Fish and Game considers the Upper Lanes Creek ideal spawning habitat as a result of the BCU project. Careful reconstruction of the bank with stones helps to prevent soil erosion from damaging water quality. A major factor in this erosion has become the vicinity of grazing land to small rivers and streams. As the grass lands are uprooted, the ground erodes faster, widening riverbanks and lessening the depth and flow of the water. These recent erosion events are a major influence on where the UBC will start future projects.

Key to the success of these upcoming developments is maintaining positive rela­tionships and trust amongst the ranching and grazing interests who own much of the private land along the Blackfoot. Teuscher works hard on this collaboration, pitching the benefits of stream protection to local ranchers. The hope is that with the aid of the UBC, mining companies, ranchers, and grazing interests, the native species of southeast Idaho will continue to recover and thrive. s

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Idaho Mining Association 19

The National Energy Foundation’s

Out of the Rock educator workshop:

Educating Idaho for more than two decades

By Janet Hatch

T

wenty-three years ago, the DVD was invented, the first computer-generated film was released, and the Idaho Mining Association (IMA) sponsored Idaho’s first Out of the Rock Workshop. In the summers to follow, the workshop has been taught in various Idaho locations, always bringing awareness to the importance of mining and mineral resources.

Elementary and secondary 2018 participants enjoyed two days of rich workshop experiences. They participated in mining simulation lessons with birdseed and cookies. They learned and practiced identification skills on the rock and mineral samples they received. Educators created their own mineral toothpaste in a STEM-rich lesson. The rock cycle was brought alive when they formed a human Earth model. Geology was made delicious for teachers with a lesson called Candy Bar Cross Section.

The popular workshop field experience returned in 2018. Teachers panned for gold in Granite Creek, visited area mining museums and experienced a tour of the historical Idaho City. This expe-

This year a portion of the lessons were revised and updated in color format to be included on the new Out of the Rock website.

rience exposed teachers to a variety of field trip options that they could later share with their students.

IMA provided the National Energy Foundation’s Out of the Rock curriculum, educational posters and Rock Music. This year a portion of the lessons were revised and updated in color format to be included on the new Out of the Rock website. Also provided were science supplies, such as mineral samples, mineral testing supplies and gold panning kits. In addition, IMA donated educator stipends to further enable successful teaching of Earth Science concepts in the Idaho Content Standards. Idaho educators were appreciative to have these resources for their students.

“I had so much fun spending that money. I purchased an Idaho geology map, rock samples, and supplies to teach some of the activities from the workshop.“ “In order to become more informed about Idaho’s specific geo­ logy, I bought Geology Underfoot in Southern Idaho and Road-

side Geology of Idaho as teacher references.”

“We are just getting ready to do the mining for seeds activity that we did during the workshop. My coworkers are excited to see how it works.”

The reach of the 2018 Out of the Rock workshop was considerable. If this year’s participants used their workshop curriculum and resources for only three years, 5,265 teachers and students Serving the Mining Industry with Chevron’s Top Performing Heavy Duty Diesel Engine Oils, Gear Lubricants, Greases and Hydraulic Fluids.

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would be impacted. To expand that reach, the Out of the Rock website encourages students to share mining lessons, mining and natural resource FAQs and mining games with their families.

Idaho educators deeply value the Idaho Mining Association’s engagement with rock, mineral and mining education. Their com-

mitment to provide professional opportunities and high-quality curriculum resources is valuable. When paired with science supplies, teachers are able to facilitate awareness of mineral resources and the mining industry. This has a far-reaching effect in Idaho communities for years to come. s

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Idaho Mining Association 21

The Women’s Mining Coalition:

Advocating for the mining community since 1993

By Lynne Volpi

The WMC is presented with the 2016 Prazen Award from the National Mining Hall of Fame. Left to right: Senator Heller legislative assistant, Devyn Hartmann; Newmont CEO Gary Goldberg; WMC co-founders Kathy Benedetto, Ruth Carraher, and Debra Struhsacker. The Prazen Award is given annually to an individual or entity that has demonstrated ongoing, innovative work educating the public, policy makers, educators, or related institutions about the importance of the mineral and mining industry to our everyday lives. * mininghalloffame.org

T

he historical presidential election of 1992, culminated in an unprecedented number of women being elected to Congress. Geologist Kathy Benedetto saw this an opportunity to go to Washington, D.C. and educate these newly elected women lawmakers, about minerals exploration and mining. Benedetto recruited the help of two fellow geologists, Ruth Carraher and Debra Struhsacker, and together they organized what would eventually become a grassroots organization and an annual Fly-In to meet with our nation’s policy makers. The Women’s Mining Coalition (WMC) evolved from this first Fly-In in 1993, and its membership continues to actively educate and advocate for the mineral and mining industry. Barbara Coppola, the current WMC president, remarks, “WMC participated in our 26th Fly-In this

year, and we are pleased to continue our strong commitment to representing a diverse voice for mining in the United States.

Our participation and interest continues to be representative of the industries in the United States that will enable and support continued mining of our important and critical resources.”

The annual Fly-Ins hosted by the WMC garner the attention of both legislators and federal agencies, emphatically sending the message, “A strong mining industry is vitally important to our nation, our communities, our families, and our livelihoods.” WMC members emphasize that many jobs in the U.S. depend on mining and that practically everything we use in our daily lives is the direct result of mined products. Ruth Carraher, WMC cofounder, notes, “WMC members help Congress recognize how important the mining industry

WMC members advocate for the mining industry during these district meetings, giving them the opportunity to meet one on one with congressional leaders and tell their own stories of success in the mining industry.

22 Mine Idaho

is to all industries throughout the USA. Everything which is manufactured relies on minerals and metals which are mined.

Those minerals and metals are used in both the end products and in facilities which are manufacturing those products.

Our modern society is dependent upon mining in so many ways because everything begins with mining.”

The importance of supporting the domestic mining industry resonates also with congressional staffers, Senators, and Congressmen during summer recess meetings within individual districts. WMC members advocate for the mining industry during these district meetings, giving them the opportunity to meet one on one with congressional leaders and tell their own stories of success in the mining industry.

The major goals and objectives of the Women’s Mining Coalition include: •D iversifying and expanding the membership and participation base; • Encouraging broader representation within the mining industry: coal, metals, industrial minerals, construction materials, manufacturing, suppliers, energy generation and transmission, and transportation;

Fly-In Participants.

Fly-In Participants with Senator Catherine Cortez-Masto (D-NV).

•E xpanding partnerships within various sectors of the industry; •C ontinuing outreach efforts with members of Congress and their staffs by supplying them with information and examples of the modern mining industry, providing them with an opportunity to meet women who work in the industry, and illustrating the industry’s role in helping to build a strong and secure United States of America.

The WMC continues to recruit its membership from coast to coast and from all aspects of the mining industry: geologists, engineers, metallurgists, miners, environmental experts, attorneys, mining vendors and suppliers, energy producers, and other related fields. WMC members advocate for the varied mineral and min-

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ing sectors and provide policy makers with first-hand information about the technological advancements and environmental stewardship of today’s domestic mining industry. Particularly effective among policy makers is the fact that WMC members are not typical lobbyists; they are highly qualified mining industry professionals, as well as constituents, daughters, wives and mothers.

For more information or to become a member of the Women’s Mining Coalition and participate in the legislative process on behalf of yourself, your family, community and industry, visit the WMC website, www.wmc-usa.org, or email

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Idaho mining:

A 2018 summary of trends and potential

By Virginia S. Gillerman, research geologist, Idaho Geological Survey Map of 2017 mineral exploration projects in Idaho.

24 Mine Idaho

M

ineral exploration in Idaho is having a renaissance in 2018. Metal prices and global demand are a major aspect, but factors such as Idaho’s prospective geology, stable political jurisdiction, and historically important natural resource industry are also play a major role. For 100 years, Idaho has had two world-class mining districts: the Coeur d’Alene district in north Idaho, and the Idaho Phosphate Reserve in southeastern Idaho. Both still have operating mines and new discoveries. The phosphate industry is the largest segment of Idaho’s mineral industry today with three large open-pit mines and an equal number of processing plants that provide phosphate-based products and jobs. Annual updates of mining activity and mineral exploration are available on the website of the Idaho Geological Survey (www.idahogeology.org). An active program of geologic mapping in the past 20 years has updated the state’s geologic map database, an important tool for exploration. Those maps can be viewed and downloaded on the survey’s website; scans of many historical mining documents and files are also on the website.

Silver, lead, and zinc are the metals Idaho and the Coeur d’Alene district are best known for historically, but recent Idaho activity has focused on gold and specialty metals such as cobalt and molybdenum. Rare earth elements (REEs) have also been of interest in this local. While society’s interest in gold goes back millennia, recent interest in commodities such as the critical minerals cobalt and REEs, derives from their essential use in new technology like smartphones, high-tech defense applications, and rechargeable batteries.

In the 1980s, several open-pit, oxide gold deposits were discovered and mined in the state, but low gold prices contributed to their closure and reclama-

Geology of Smoky Canyon mine panel F, showing Phosphoria Formation (dark) over Grandeur Limestone (light tan), 2014.

tion in the 1990s. Today, those same districts are locations of new

Black Pine mine in southeastern Idaho. The five districts men-

and successful exploration drilling to seek out resources below

tioned above include examples of at least three distinct styles

or adjacent to the old pits. Examples include the Stibnite/Yellow

and classes of gold mineralization: orogenic gold, epithermal

Pine district (Midas Gold), the Beartrack mine (Revival Gold), and

gold-silver, and Carlin-style gold deposits. Stibnite has multiple

the DeLamar mine (Integra Resources). Otis Gold has a discovery

and overprinted deposits, which has probably contributed to its

and major project at Kilgore, and Liberty Gold plans to drill the

ample endowment of 5.6-million troy ounces (175 metric tons) of

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Construction at eCobalt’s Idaho Cobalt Project, July, 2018.

gold. Other districts with significant historical placer production have not seen much modern exploration. The potential is great; many ore controls and regional structures are not fully delineated.

The Idaho Cobalt Belt is a northwest-trending, 60-kilometerlong belt of primary cobalt occurrences and old mines, including the historic Blackbird District, in eastern Idaho’s Lemhi County.

In 2017, a veritable staking rush claimed most of the belt. eCobalt Solutions is developing an underground Co-Cu-Au mine at the RAM deposit, discovered peripheral to the Blackbird workings. They also plan to build a refining facility near Blackfoot.

First Cobalt (formerly U.S. Cobalt) has been drilling stratabound

copper-cobalt zones from underground at Iron Creek near the southeastern end of the belt. Other companies have announced new showings from field-based surface exploration. Primary cobalt deposits are rare globally, and the Idaho Cobalt Belt has the nation’s only cobalt reserve. Idaho copper-cobalt deposits are hosted in Mesoproterozoic sedimentary rocks and probably rift-related, but they have been overprinted by later Mesozoic events to complicate the story. Idaho’s deposits have similarities to, but also differences from, the large African deposits that are the world’s dominant cobalt source. An adequate model for the Idaho cobalt belt needs new geologic research. s

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Revival Gold drilling at reclaimed Beartrack gold mine, July, 2018.

Top right: High-grade, Au-Sb mineralized core, Midas’ Yellow Pine deposit, Stibnite District.

Right: Erythrite crystals, or “cobalt bloom,” on boulder from portal bench, Idaho Cobalt Project, 2017.

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Idaho Mining Association 27

Americas Silver Corporation:

A look into the future

By Darren Blasutti, President and CEO, and Andrea Totino

A

mericas Silver Corporation (TSX: USA) (NYSE American: USAS) is a leading Canadian-based junior silver producer, with a strong operating platform in the Americas. Silver production of roughly 1.6-million ounces and silver equivalent production of approximately 6.7 to 7.0 million ounces is expected in 2018. With the recently constructed San Rafael mine in Sinaloa, Mexico in full production, Americas Silver is positioned to become one of the lowest-cost silver producers globally. In addition, the company also operates the Galena Complex located in the prolific Silver Valley in Idaho, USA. On September 30, 2018, Americas Silver Corporation announced a business combination with Pershing Gold. This transaction will add the Relief Canyon gold project in Nevada and establish a diversified portfolio of precious metal assets in the Americas. With the addition of a high-quality, shovel-ready, precious metal development project with low capital intensity and robust project economics at current gold prices, Americas Silver is positioned for material near-term production and cash flow growth. This

Silver production of roughly 1.6-million ounces and silver equivalent production of approximately 6.7 to 7.0 million ounces is expected in 2018.

Galena Mine.

28 Mine Idaho

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growth is further supplemented through the potential development of the company’s late-stage Zone 120 exploration project, which is located adjacent to the San Rafael mine, and was discovered through exploration drilling in 2017.

The transaction offers immediate accretion to precious metal mineral reserves and resources and on all financial metrics by 2020, when the mine will be in production. The pro-forma company will have reserves, with measured and indicated resources of approximately 100-million ounces of silver, 800,000 ounces of gold, 1.15-billion pounds of zinc, and 900-million pounds of lead. Upon closing of the transaction, the newly formed company will have a strong financial position, leading leverage in the precious metals space, and in turn, offer an attractive value proposition to shareholders and investors. s

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eCobalt:

First in mine and mill

By Fiona Grant

A

paradigm shift is happening in the world. Combustion engine vehicles are being phased out by governments across the globe, and consumers are demanding more environmentally sustainable technologies. Modes of transportation are changing. Bloomberg estimates that by 2040 54 percent of new car sales and 33 percent of the global car fleet will be electric. To put that into context, electric vehicles today make up only about two percent of total global car sales.

Raw materials such as cobalt are integral to this shift. The lithium-ion batteries in electric vehicles require cobalt for efficiency and safety over long ranges. In order to inspire widespread adoption of electric vehicles, car manufacturers need cobalt to ensure safety and longevity of the battery, allowing drivers to go the distance on a single charge.

Idaho has a key role to play in this EV revolution. The Gem State has long been known as a major cobalt producing region – or so it used to be. The Idaho Cobalt Belt, located in northeastern Idaho, historically produced over two-million tons of cobalt from the early 1900s to the 1960s. The region has not seen modern-day production since, but that is about to change. eCobalt’s Idaho Cobalt Project is the only near-term primary cobalt project with a fully permitted mine and mill in the US. The project is located about 26 miles to the west of the town of Salmon in east central Idaho. Owned and operated by its wholly-owned subsidiary Formation Capital Corporation, U.S., eCobalt has invested over $135 million in advancing the project to its near-term production status.

30 Mine Idaho

The Gem State has long been known as a major cobalt producing region – or so it used to be. The Idaho Cobalt Belt, located in northeastern Idaho, historically produced over two-million tons of cobalt from the early 1900s to the 1960s. The region has not seen modern-day production since, but that is about to change.

The mine is projected to operate for a minimum of 12.5 years in addition to construction.

With a strong opportunity to extend that mine life, eCobalt hopes to create long-term opportunities that will continue to benefit the region for years to come.

The Idaho Cobalt Project is an environmentally designed mine.

This means that the entire process has been thought through in sustainable terms. The underground project design allows for a small footprint and minimal surface disturbance. The mine will operate on a zero-discharge basis so there will be no degradation to rivers and streams, and any discharge that comes from the project’s separate water treatment plant will be drinkingquality, as defined by the EPA. Completed construction works to date include access road improvements up to the mine site, building and installation of the water treatment plant, lining the tailings waste storage facility and water management ponds, distributing electricity to site, and installation of the bulk fuel storage and distribution system.

Construction is winding down for the winter, but will pick back up once the weather permits in the spring, pending project financing.

Bringing the project into operation is expected to have a significant positive impact on local economies. The mine is projected to operate for a minimum of 12.5 years in addition to

construction. With a strong opportunity to extend that mine life, eCobalt hopes to create long-term opportunities that will continue to benefit the region for years to come.

Local business is expected to benefit significantly. One of eCobalt’s directives is a “buy local policy” wherever possible, affecting dozens of retail merchants, mechanical & fabrication shops, trucking companies, building contractors and auto dealers. Additional professional local service providers, such as lawyers, doctors, accountants and others will also benefit.

Local communities will also reap benefits as eCobalt is committed to supporting schools, county and other services such as hospitals, protecting clean water, and enhancing fish and wildlife habitat, amongst other conservation efforts.

The Idaho Cobalt Project’s near-term status positions it to be the first modern-day primary cobalt producer in North America.

With supply hitting the market at a critical time for the cobalt market, the Idaho Cobalt Project will offer consumers a transparent supply of ethically-sourced cobalt, produced safely and responsibly in the United States. s

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Idaho Mining Association 31

Hecla Mining Company: Not your father’s mine

By Luke Russell, Vice President of external affairs

F

rom wheelbarrows and donkeys, to compressed air, to rail and rubber-tired equipment, to wireless technology that makes autonomous and semi-autonomous operations possible today, the mining industry continues to evolve and innovate. Mines today simply do not look like the mines most people think of as they are deploying state of art technologies that make them more productive, safer and reducing their environmental footprint. For companies like Hecla, adopting even incremental innovation strategies has a significant bottom line impact.

The backbone for innovation began with getting fiber optic cable and establishing “hotspots” to bring wireless technology to more than a mile below the surface, in solid rock. From there Hecla has taken a step by step approach on implementing technologies that made sense for them: • At Greens Creek in Alaska, the company introduced Sandvik’s AutoMine Lite system to tele-remotely operate load-hauldump (LHD) loaders. Mainly, using the autonomous LHD loaders to muck the headings at shift changes so they can clear a heading out and speed up the process to get the people back in and start putting in ground support and drilling the heading.

They have also implemented on demand ventilation which has the potential to reduce energy costs by nearly $1 million per year when it is fully installed through the mine and reducing its environmental footprint.

• At Casa Berardi in Quebec they developed in-house automated hoisting and remote loading technologies. The automatic hoisting has helped move an additional 120 tonnes per day, primarily between shifts and when the mine air is being ventilated after blasting. Remote loading is providing a safer work environment by moving workers above ground and getting their hands “off the steel” and away from the mine face. The mine became the third operation in the world to invest in the

As a result, their workers will have a safer environment but will require new skills and Hecla is committed to working with its workforce to provide the necessary training for the future of work that is here today.

32 Mine Idaho

The backbone for innovation began with getting fiber optic cable and establishing “hotspots” to bring wireless technology to more than a mile below the surface, in solid rock. new 40-tonne fully autonomous Sandvik TH540 articulated underground dump trucks. The first truck unit, monitored and controlled from a room at the surface, is improving payloads by eight percent, reducing energy use by 17 percent and resulting in a 25 percent higher availability and lower maintenance costs than the average manned truck in the fleet.

•T elemetry has a big impact on worker safety. Sensors are being installed on equipment to be able to recognize workers and collision avoidance devices are being added to the heavy equipment. In addition, with telemetry mechanics can track equipment performance real time and fix issues between maintenance calls. The result is lowering maintenance costs.

•D espite the transition to focused automation at Casa Berardi the workforce there has grown by 200 people. The throughput of the mine has increased with the introduction of open pits to complement the existing underground min. The group of workers growing the fastest are information technicians.

•A nd at Lucky Friday here in Idaho, the company is testing automated haul truck driver assist technology. It is also working on a longer-term step in its strategy with Epiroc (Atlas Copco) to develop a mechanical mobile miner for vein mining. This continuous miner will increase safety and productivity. Initially, the machine will be tested using on-board personnel, but it will be equipped for tele-remote control with automated muck haulage should Hecla decide to go that route in the future.

Hecla is just one of many mining companies that has put its money on an automated future. As evidenced at their Casa Berardi Mine, technology and automation isn’t replacing the workforce but, they are looking to use machines and automation where there are repetitive tasks, and people for problem solving and dealing with the unexpected. As a result, their workers will have a safer environment but will require new skills and Hecla is committed to working with its workforce to provide the necessary training for the future of work that is here today. s

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Nothing but bore-ing: A look at I-Mineral’s most exciting minerals

By Barry Girling

I SEM image of halloysite.

34 Mine Idaho

ndustrial minerals are a part of everyday life – look no further than the glass on your smartphone, the glaze on your coffee cup or the sheen on magazine paper. When most people think of mines, they think of glittering metals such as gold and see industrial minerals as boring. Pricing tends to be less volatile as industrial minerals are inputs into a manufacturing process that requires steady volumes and consistent quality.

I-Minerals’ Helmer-Bovill Property near Bovill, Idaho has completed feasibility and permitting with pilot-scale production having produced the highest-quality K-spar any­where, and the best metakaolin and quartz available in the Pacific Northwest. The fourth mineral, halloysite, is anything but boring.

Halloysite is a naturally occurring alumina-silicate nanotube. Its chemical formula differs from kaolin by 2H2O which contributes to the kaolin platelets rolling up into nanotubes. While ceramics is the traditional use for halloysite, more exciting applications are consistently being developed: an additive to plastics and polymers to add strength and reduce weight; the hollow core or lumen­can be “loaded” and used as a time-release delivery vector (as the nanotube comes in contact with moisture, the clay dissolves releasing the compound in the lumen); exploitation of the charge differential between the outside of the nanotube and the inner core for filtration and related applications.

I-Minerals has been working with DURTEC GmbH in testing halloysite in cutting-edge applications. Capitalizing on halloysite’s charge differential and

geometric shape, a wound cloth or gauze has been developed that stops bleeding faster than any other product known. Its time-release delivery attributes are being tested by cosmetic companies for delivery of fragrances and moisturizers. Halloysite can be pelletized and compressed into a wafer where the charge differential and nanotube structure can be used as a filtration mechanism in biogas plants and other environmental remediation applications.

There are only about a dozen halloysite deposits with economic potential currently identified around the globe. With 25 years of reserves and another 20 years of resources, I-Minerals’ Helmer-Bovill Property is one of the largest-known deposits of halloysite outside of New Zealand. Its lack of deleterious elements, such as the cristobalite found in the New Zealand clays and exceptional nanotube morphology, position I-Minerals to be a leading supplier of halloysite into highvalue industries.

The economics of the Helmer-Bovill Property are robust. The “ore” is a fine sandy clay from surface weathering of a unique granodiorite and requires no drilling or blasting to mine. Seventy percent of material mined is beneficiated into a saleable product. The feasibility study indicates sales of quartz, K-spar and kaolin alone render the project cash flow positive. Net of these co-product credits, I-Minerals stands to have negative halloysite production costs and expected sales prices of $700 per ton to over $3,000 per ton depending on the purity and application. We think that is pretty exciting. s

Bayer’s Caldwell Canyon Mine:

All about sustainability

By Randy Vranes

H

elping to preserve our environment for people, plants, wildlife and communities is a key focus of our work at Bayer (formerly Monsanto). When it comes to phosphate mining, our aim is simple: to leave as few traces

of mining as possible and, in some cases, leave the land in better condition than previous land uses had left it.

Bayer employees have expertise in a wide range of scientific fields, including biology, entomology, botany, and plant genetics, which is unique in the mining business and enables the company to craft innovative solutions to mine sustainability. Furthermore, Bayer hires additional engineers and geologists to ensure that the phosphate ore (and the phosphorus derived from it) is obtained in the most ecologically responsible manner possible.

In terms of sustainability, we expect the Caldwell Canyon mine to potentially be among the most advanced and innovative mines in the nation. This is driven by the high ecological restoration standards and emphasis on biodiversity built into the proposal.

High Standards Sustainability starts with setting high standards. While the traditional drivers of a mining company’s reclamation program are the legal standards and permit conditions imposed by government agencies, Bayer uses these required components as a foundation, and then builds on them to produce something much

more than “reclamation.” Our approach is ecological restoration, which means holistically bringing back – in full function – the key environmental systems that were present before mining. This requires baseline environmental characterization before mining to identify key ecological functions, and then working during and after mining to either avoid disrupting those functions, or systematically re-establish them.

As an example, compare these differences in just a few mine reclamation activities (see below).

Valuing Biodiversity In surveying wildlife habitat at Caldwell Canyon, agencies determined that some of the land could be suitable for the Greater Western Sage Grouse. Since there was no observed local sage grouse population, there were few sage grouse-specific elements required by mine plan regulations. The company’s Soda Springsbased mining department recognized an opportunity to help a struggling species and developed an approach to sage grouse habitat that has since been highlighted as a best practice by the Western Governors’ Association. The Sage Grouse Framework for Phosphate Mining has also received positive reviews from several local environmental organizations, including the Idaho Conservation League. The details of this approach can be found at Caldwell Canyon.com/grouse. s

Reclamation Ecological Restoration Cap mined areas with a clean growing medium

Carefully manage topsoil to preserve the original mix of healthy soil microbes: stockpile topsoil only minimally, replacing it as soon as possible, even concurrent with active mining. When replacing topsoil, be mindful of the mycorrhizal (a helpful soil fungus) content and be prepared to inject additional microbes when needed.

Avoid erosion by replacing “fill” materials without exceeding 3-to-1 slope ratios

Design mining plans to minimize cliffs or “high walls.” Replace “fill” material to, as much as possible, restore similar contour and terrain to what existed pre-mining, while minimizing erosion potential.

Plan a mix of different grass species

In addition to the required grasses, add plants and shrubs that will help the area rapidly reach the comparable plant succession found in surrounding vegetation, bring native pollinators back into the area, and reflect the key plants that local wildlife species rely upon for food and shelter. Preserve intact patches of original vegetation, including root masses, to later re-establish in the restored landscape.

Idaho Mining Association 35

Itafos,

Itafos Conda mine.

Idaho’s newest phosphate fertilizers and specialty products company

Itafos Conda plant.

By Mark Kirby and Robert Winslow

I

tafos (www.itafos.com) is a publicly traded (TSX-V: IFOS) vertically integrated phosphate fertilizers and specialty products company with an attractive portfolio of long-term strategic businesses and projects located in key fertilizer markets worldwide.

In January 2018, Itafos acquired the Conda Phosphate Operations (Itafos Conda), a vertically integrated phosphate rock mine and fertilizer business located five miles north of Soda Springs, Idaho.

Itafos Conda has a production and sales capacity of approximately 550kt per year of mono-ammonium phosphate (MAP), super phosphoric acid (SPA), merchant grade phosphoric acid (MGA), and specialty products, including ammonia poly phosphate (APP). Itafos Conda has a long-operating track record consistently delivering responsible operating and commercial performance.

Itafos Conda’s production facility and mines employ approximately 260 full-time employees and 220 contractors, account36 Mine Idaho

ing for roughly $50 million in annual wages and benefits. Itafos Conda also provides a large economic base contributing nearly $100 million in local purchases and multiple millions of dollars in tax and royalty payments each year.

Itafos Conda owns the Itafos Rasmussen Valley and Itafos Lanes Creek phosphate ore mines located within approximately 15 miles from the production facility with an estimated mine life through 2024. Through open-pit mining, Itafos Conda traditionally averages over 2 million mined tonnes of phosphate ore annually. The phosphate ore is then transported via rail to the production facility and processed into phosphate fertilizer products.

Itafos Conda is actively working on extending the current mine life through the safe and responsible execution of its development portfolio and other alternatives. Itafos’ development portfolio includes nearby development projects, Itafos Paris Hills and Itafos Husky I/North Dry Ridge (Itafos H1NDR), which, togeth-

er with other alternatives, provide Itafos Conda with clear line of sight to achieve its objective of extending its current mine life.

Itafos is proud to be part of Idaho’s mining and manufacturing community and is committed to working with all local stakeholders, including various public organizations, mining, technical and environmental experts, as well as numerous government agencies, to help ensure the long-term sustainability of the business.

Itafos Paris Hills Itafos Paris Hills is a high-grade phosphate mine project located within approximately 35 miles from Itafos Conda with reserves representing a 19-year mine life.

Itafos Paris Hills is 100 percent owned by Itafos and is currently in feasibility stage.

Itafos Conda mine.

Itafos Paris Hills is expected to produce 1.0Mt of phosphate rock per year and to be integrated into Itafos Conda. Itafos is currently focusing on finalizing permitting for Itafos Paris Hills and advancing integration efforts with Itafos Conda.

Itafos Paris Hills’ property encompasses an area of approximately 1,010 hectares and consists of three patented lode mining claims and 21 contiguous fee parcels.

The property is located near the center of the western phosphate field, which comprises the most extensive phosphorite beds in the United States and has one of the highest-grade phosphate deposits in the world.

A feasibility study for Itafos Paris Hills was completed in 2013. The operation is designed to employ room-and-pillar mining methods and have only minimal surface impact. A series of dewatering wells are expected to be drilled throughout the property to ensure a safe and efficient mining operation. Working closely with regulatory agencies, multiple options are being evaluated for the beneficial use of the water and to ensure the highest level of environmental stewardship. The mined phosphate ore is to be crushed and loaded onto highway trucks for transport to Itafos Conda. Once the mine is at full capacity, it is expected to create approximately 250 incremental jobs.

About Itafos H1NDR Itafos H1NDR is a high-grade surface phosphate mine project located within approximately 19 miles from Itafos Conda.

Itafos H1NDR is 100 percent owned by Itafos and is currently in the exploration and development stage.

Itafos H1NDR’s property encompasses an area of more than 1,000 acres and consists of two federal and one state phos-

phate leases that are being permitted as a single mine. The property is located near the center of the western phosphate field, which comprises the most extensive phosphorite beds in the U.S. and has one of the highest-grade phosphate deposits in the world.

Itafos H1NDR is anticipated to incorporate many advanced mining reclamation practices and be fully backfilled leaving no open pit at the end of mining. Additionally, excess overburden from Itafos H1NDR is expected to be utilized to partially backfill nearby historic mine pits. State-of-the-art water modeling and cover design are proposed to ensure groundwater and surface

areas are protected for future generations.

The mined phosphate ore is to be crushed and loaded onto railcars for transport to Itafos Conda.

Forward-looking statements Certain information contained in this article constitutes forward looking information (FLI). Words like “intend”, “anticipate”, “estimate” and “expect” are intended to identify FLI. FLI involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated. No assurance can be given that this information will prove to be correct.

FLI should not be unduly relied upon. s

A purE-plAy pHOSpHATE fErTIlIzEr cOMpAny At Itafos, our top priority is to provide a safe, healthy, and fulfilling work environment for every individual at our facility. While working as a member of the Itafos team, you will have the opportunity to grow your career while fulfilling a critical role in the production of crop nutrient products. We pride ourselves in hiring skilled talent from a variety of backgrounds and we know it is our employees that drive our success.

Want to join an excellent company with exciting and challenging opportunities, competitive salaries, great benefits, and performance based incentives? Itafos’ Conda Phosphate Operations, located in Soda Springs, Idaho, is seeking to add talented individuals in the following occupations: • Operations • Engineering • Information Technology

• Maintenance • Accounting • Materials Management

• Mining • Environmental, Health & Safety

If you are interested in beginning a rewarding career with Itafos, please submit your resume and cover letter to joincpo@itafos.com. ** Itafos Conda, LLC is committed to creating an inclusive workplace and is proud to be an Equal Opportunity Employer. **

Idaho Mining Association 37

Why legacies of the past are driving one mining company forward

By Laurel Sayer, CEO Yellow pine pit.

T

here is a long history of mining in Idaho. The Stibnite Mining District alone has seen more than 100 years of activity. Miners first discovered the site in 1899 during the Thunder Mountain Gold Rush. Since those early days, it has been home to thousands of miners, operated by many different companies, and played a critical role to the United States’ war efforts in the 1940s and 1950s. The site’s long history, and the environmental legacies it left behind, was enough to attract the attention of Midas Gold.

“When we came across the historic Stibnite Mining District, we knew we had a unique project on our hands and an opportunity to show people industry and the environment can work together,” said Laurel Sayer, CEO of Midas Gold Idaho. “Much of the mining that occurred at Stibnite happened long before environmental regulations were in place. This has led to many long-term environmental impacts in the area. We’ve developed a plan that will allow us to use modern mining to repair some of the legacies operators before us left behind and, ultimately, leave the Stibnite Mining District better than we found it.”

Midas Gold is currently working with the U.S. Forest Service and other federal, state and local agencies to permit the redevelopment of the Stibnite Gold Project. It will be the first mining project for Midas Gold. The company submitted its Plan of Restoration and Operations to the U.S. Forest Service in 2016. Midas Gold expects a draft Environmental Impact Statement to be released and made available for public comment in May of 2019.

The Stibnite Gold Project will produce gold, silver and antimony. Antimony is considered a critical mineral for the United States because of its essential role in the defense and energy sectors.

When permitted, the Stibnite Gold Project would be the only domestic source of mined antimony.

38 Mine Idaho

The plan filed with the Forest Service prioritizes restoration activities and outlines how Midas Gold will reconnect salmon to their native spawning grounds for the first time in 80 years, rehabilitate 13-miles of stream channels, improve water quality in the area by reducing erosion from disturbed areas and safely store legacy tailings that are a likely source of metals leaching into surface and groundwater.

“Most of our employees are Idahoans. We want to leave a positive impact on our state and we feel personally vested in restoring part of Idaho’s backcountry,” said Sayer. “It is no secret that mining companies of the past left behind questionable legacies.

We understand this has made people skeptical of the mining industry. At Midas Gold, we’re excited to earn the community’s trust by doing things differently than our predecessors and following through on our promises.”

Midas Gold has already made good on its promise to take care of the environment. The company has restored 33 acres of disturbed land, removed more than 30 tons of scrap metal from the site, planted more than 52,000 trees to help with reforestation and started generating solar power at the site to reduce dependence on fossil fuels.

In addition to restoring the environment, the Stibnite Gold Project will also inject millions of dollars into Idaho’s economy and provide hundreds of well-paying jobs throughout the life of the mine. Midas Gold has already invested more than $145 million since it first started exploring the site in 2009 and the company will invest another billion dollars to construct the Stibnite Gold Project.

History is what attracted Midas Gold to Idaho and the Stibnite Mining District. The possibility of a brighter future is what continues to drive the company forward. s

Revival Gold Inc.: Now and then

By Hugh Agro, President and CEO, and Andrea Totino

R

evival Gold Inc. is a growth-focused gold exploration and development company. The company has executed an agreement whereby it may acquire a 100 percent interest in Meridian Beartrack Co., owner of the former producing Beartrack gold project located in Lemhi County, Idaho. Revival also owns rights to a 100 percent interest in the neighbouring Arnett gold project.

In addition to its interests in Beartrack and Arnett, the company is pursuing other gold exploration and development opportunities and holds a 51 percent interest in the Diamond Mountain phosphate project located in Uintah County, Utah.

Revival Gold is led by a veteran gold team including chairman, Diane Garrett (former CEO of Romarco Minerals), and president & CEO, Hugh Agro (former EVP Kinross Gold). Revival Gold’s Salmon-based operational team has many years of experience in Idaho, and with the Beartrack project in particular, working with Meridian Beartrack Co. when the mine was in operation in the late 1990s and early 2000s.

In May 2018, Revival Gold unveiled a maiden NI-43-101 Mineral Resource estimate for the Beartrack, including total indicated mineral resources of 1,214,000 ounces of gold and total inferred resources of 765,000 ounces of gold. This achievement set a solid foundation for the company’s 2018 exploration plans.

Revival Gold is now nearing completion of a US $3.5 million exploration program at the Beartrack project, including 25,000 feet of core drilling targeting resource expansion, as well as a seven-hole, 3,500-foot core drilling program at the neighboring Arnett project. Drilling is expected to be complete in early November. Results from the first seven drill holes at Beartrack have been released and demonstrate clear potential to expand gold mineralization beyond the limits of the current mineral resource. Final 2018 drill results for both Beartrack and Arnett are expected in early 2019.

Following in the footsteps of some of Idaho’s earliest pioneers and explorers, Revival Gold is testing the potential to re-start the Beartrack heap leach mine and develop a potential large milling operation to follow. Exploration and metallurgical test-work results to-date has been favorable and Revival Gold anticipates that 2019 will be another busy year for the company.

For further information, please see www.revival-gold. com or contact Pete Blakeley, general manager, Revival Gold Salmon field office at pblakeley@revival-gold.com. s

Beartrack gold project located in Lemhi County.

Idaho Mining Association 39

The J.R. Simplot Company:

Leading the way in phosphate production

By Josh Jordan

Simplot’s employs more than 600 people in eastern Idaho through its mining activities, bringing jobs and financial support to local communities.

E

ach year the world’s population increases by more than 80-million people, and experts predict that we will have to produce more food in the next 50 years than we had to produce during the previous 10,000

years.

The J.R. Simplot Company is committed to helping feed a growing world population, and one avenue is through the safe and responsible use of phosphate fertilizers to grow more food.

Simplot’s history in fertilizer production began during the Second World War when the company’s founder struck a deal to supply the U.S. military with food. The agreement meant an increased demand for potatoes and onions, and J.R.’s fertilizer suppliers were struggling to meet the existing need. Seeing an opportunity where others might have seen an obstacle, Simplot got into the fertilizer business and today is one of the largest miners of phosphate ore and producer of phosphate fertilizer in North America.

Much of the work being done is focused in eastern Idaho and western Wyoming, where Simplot provides jobs to more than 600 people and contributes almost $150-million annually to local economies. Simplot opened its first fertilizer manufacturing plant in 1944 in Pocatello, Idaho. The Don Plant produces dry and liquid phosphate fertilizers, as well as feed phosphates and phosphoric acid to supply farmers and other customers throughout North America. Today, the Don Plant’s sole supply of phosphate ore comes from the company’s Smoky Canyon Mine, located outside of Afton Wyoming on the Idaho-Wyoming border. Simplot began operations at Smoky Canyon in 1984 and ships phosphate to the Don Plant through an 87-mile underground pipeline. In addition, Simplot mines phosphate at its facility in Vernal, Utah to use in fertilizer production at its manufacturing facility in Rock Springs, Wyoming. In total, Simplot phosphate operations are responsible for ensuring millions of people get the food they need.

In recent years, Simplot has spent millions of dollars to restore the areas impacted from historic mining activities. This in-

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Simplot is one of North America’s largest producers of phosphate fertilizer which is used by farmers to improve crop performance and output.

Simplot works with the United States Forest Service, Bureau of Land Management and other state and federal agencies to reclaim lands and minimize environmental impacts of mining.

Simplot’s Smoky Canyon Mine is located in the rugged highlands of the Caribou National Forest, just across the Idaho border from Afton, Wyoming.

Simplot employees at the Don Plant in Pocatello check on some machinery at the phosphate fertilizer operation. All of the phosphate ore used at the Don Plant comes from the company’s Smoky Canyon mine.

cludes developing a first-of-its-kind water treatment facility at Smoky Canyon, and building innovative soil caps designed to reduce the potential impact mining has on groundwater while reclaiming impacted land for multiple uses.

Moving forward, Simplot will continue to use these practices as it operates in and around the western phosphate field where enough phosphate is available to supply farmers for up to 200 years. The company is currently seeking approval from the Bureau of Land Management and the U.S. Forest Services for two mining projects, an expansion to its Smoky Canyon Mine and a project northeast of Soda Springs, Idaho. The East Smoky Canyon project is adjacent to the existing Smoky Canyon mine and has approximately three years of ore reserves.

The Dairy Syncline project outside Soda Springs has more than 30 years of ore reserves that will support the Don Plant for years to come.

The J.R. Simplot Company and its employees have a deep respect for natural resources and the role they play in the world. The proposed expansion to mining activities in eastern Idaho reflects the company’s continued commitment to the communities where it operates, and to the farmers who rely on companies like Simplot for the nutrients they need to produce food for a growing population. s Idaho Mining Association 41

Unlocking the

magic of mining

By John Davies, CEO, Davies Public Affairs and Daniel McGroarty founder of American Resources Policy network

W

e live in the age of technology. From the novelty of the first iPhone just 12 years ago, fast forward to today, when most people would be lost without a smart phone to dial friends or remind us what to do – not to mention when and where.

Technology is transforming our lives more rapidly than during any other period in human history.

As futurist Arthur Clark once said, “Any sufficiently advanced technology is indistinguishable from magic”.

Those of us in the world of mining and resource extraction would edit this famous thought a bit. We would add that the magic starts not in the technology, but in the resources that make the technology possible. And that means mining.

For centuries we counted on metals and minerals to shape our world – iron, copper, gold, zinc, silver, and more. And we still count on each today. Yet now, and gradually over the past hundred years, the range of metals and minerals has grown wider. Arcane names are becoming more common, such as cobalt, graphite, manganese, and lithium in our EV batteries, to the rare-earths and other minerals in our smart phones – and in the U.S. military’s smart-bombs.

Without mining to extract these metals and minerals, our nation would find it impossible to remain competitive and to continue to pioneer next-generation technologies. Ironically, those very devices made possible by our mined resources are now used to make it harder to earn a social license for mining, whether the attacks come through social media, or digital ads and mass emails from anti-mining groups.

Making the connections between mining – our magic toys and tools – and our economy is critical to ensuring that proper respect and support is paid to mining and the role it plays in Idaho and across America’s resource-rich states.

What can we do? How do we translate these critical issues into social license for new mining projects?

First, we must engage, and do so in a transparent manner. If you don’t share your story, those opposed to mining will craft a story for you. That is what is happening right now. You have to uncover a compelling message and engage the community early and often. To do that, you have to think differently.

Second, you must make the moral case for mining. Projects are funded on the strength of their economics. However, projects build support on the strength of their value-based message or moral case.

Without a value-based moral case, our story is no different than tobacco growers – it’s all about jobs and revenue. And in today’s world, the large majority of citizens will not trade environmental risk or safety for economic gain.

As futurist Arthur Clark once said,

“Any sufficiently advanced technology is indistinguishable from magic”.

42 Mine Idaho

The United States is resource rich. We must connect the natural resources we need to the most American resource of all – American ingenuity and inventiveness.

Do we want to get our uranium from Russia? Our rare-earths

maintain the military strength we count on to keep our country

and graphite from China? Our cobalt from the Democratic Re-

safe? In every case, the answer involves the materials – the met-

public of Congo? Or can it come from Idaho and elsewhere in the

als and minerals – that make modern life possible, and whether

United States? Mining in Idaho and the U.S. keeps our technol-

we have ready and reliable access to them.

ogy base strong and protects the environment and the health of

The United States is resource rich. We must connect the natural resources we need to the most American resource of all –

communities around the mine.

Third, you must always be honest. Honesty first builds trust.

When we build something it always creates some impact. When

American ingenuity and inventiveness. When we do that, we connect mining to the magic of modern life.

we acknowledge it, we earn attention. Be honest about both

John Davies, CEO of Davies Public Affairs, is a nationally

pros and cons; then and only then do you bridge your value-

sought-after communication strategist and leading expert on

based message to an economic message.

mobilizing support for natural resource permitting issues.

Think about some of the most urgent issues of public debate

Daniel McGroarty has testified in both the U.S. House and

today. How can we revive American manufacturing? How can

Senate on critical minerals issues. He founded the American Re-

we harness American ingenuity to create the businesses of to-

sources Policy network, a non-partisan resource experts organi-

morrow and the technology that will take us there? How can we

zation based in Washington, D.C. s

WHEN YOU NEED A FRIEND IT’S TOO LATE TO MAKE ONE

America’s most effective strategic public affairs team DaviesPublicAffairs.com

Idaho Mining Ad_Need a Friend.indd 1

11/29/18 3:31 PM

Idaho Mining Association 43

Idaho glimmers in the

mining spotlight

By George Salamis, President and CEO of Integra Resources

The resurgence in North American mining stories has been Integra Resources vice president of exploration at DeLamar.

especially prevalent in Idaho. Considered by the Fraser Institute (www.fraserinstitute.org) as one of the best mining jurisdictions in the United States, Idaho has often been overshadowed by its neighbor to the south, Nevada. However, increased exploration spending in the Gem State, along with investments from major miners – Barrick’s investment in Midas Gold’s Stibnite Project, for example – Idaho has found itself in the spotlight of the mining industry.

Idaho is currently divided into three main mining districts; the Silver Valley in the North, the Central District and the Phosphate District in the Southeast. The history of mining in Idaho is long, storied and full of fascinating characters. Owyhee County, host to Integra Resources’ DeLamar Project, is well known for its gold rush in the 1860s that gave birth to the fabled Silver City.

At its peak, sometime between 1863 and the early 1900s, Silver City supported a population of 2,500 people, 300 homes, 75 businesses and 12 mills. The town is still occupied today, mostly in the summer, and provides a unique glimpse into those that mined the mountains of Owyhee County over 100 years ago.

Integra’s DeLamar project encompasses many of the old mines and workings built by the first miners in the county. The project operated during modern times – 1970s to 1990s – as a

T

he industry has been flocking back to safe jurisdictions in its hunt for undiscovered gold ounces to replenish diminishing gold reserves. North America, long a stalwart of established mining code, has seen a flurry of activity from both the majors and juniors, including a recent influx of Australian companies keen on establishing a toehold in the American mining scene.

large, bulk tonnage gold-silver mine. Seizing on the opportunity to further explore a brownfield asset with significant upside, Integra acquired the project from Kinross Gold in late 2017.

Before Integra Resources and before Idaho, I was chairman of Integra Gold, an exploration stage resource company operating in Val d’Or, Quebec. Integra Gold was acquired by Eldorado Gold for C$590 million in mid-2017. Fresh off of this success, our team from Integra Gold established Integra Resources and recognized many similarities in DeLamar that we liked at Lamaque, our flagship project in Val d’Or. Like Lamaque, DeLamar was a past producing mine with a history that spanned more

Idaho is currently divided into three main mining districts; the Silver Valley in the North, the Central District and the Phosphate District in the Southeast.

than 100 years. It came with a large resource – 3.5 million ounces of gold equivalent – with very good potential for additional resources below and around the existing geological model. We brought out-of-the-box thinking and technological innovation to Lamaque and knew we could bring it again to DeLamar. It was a project that checked all the boxes for us, and now after one year of exploration, DeLamar is beating our expectations.

44 Mine Idaho

2019 will be busy for Integra as we prepare to release a new resource estimate for the project as well as a Preliminary Economic Assessment.

Drilling at Florida Mountain.

The Integra plan was to complete a large exploration program throughout 2018. That program, which has drilled nearly 60,000 feet year-to-date, has delineated a large, new zone of mineralization adjacent to the existing mine site – Sullivan Gulch – and intersected significant gold and silver mineralization outside of the existing geological model at DeLamar, in areas such as Henrietta. The drills have also started exploring newly discovered high-grade targets around the project. In addition to 60,000 feet of drilling, the Company ran miles of Induced Polarization (“IP”) ground geophysics to identify the mineralized footprint of the gold-silver, combed through and digitized decades of historic data to identify new gold-silver targets, and began extensive metallurgical tests to understand the potential processing options moving forward.

2019 will be busy for Integra as we prepare to release a new resource estimate for the project as well as a Preliminary Economic Assessment. We are primed to build on our success thus far and we look forward to continuing to demonstrate why Idaho deserves renewed attention as a premier mining jurisdiction. s

Advanced exploration at the Historic DeLamar Mine in

Owhyee County

www.integraresources.com

TSX-V: ITR / OTCQX: IRRZF

Idaho Mining Association 45

Fletcher custom designs mechanized bolters for narrow applications Submitted by J.H. Fletcher & Co.

D

rilling and bolting in narrow confines have traditionally been performed with pneumatically or hydraulically powered hand-held drills or newer electrically powered hand-held hammers due to their low cost, simplicity of operation, and extreme flexibility due to their small size. Mechanized equipment has typically been too large, too expensive, inefficient due to the confined space, and too restrictive due to lack of flexibility for use in narrow confines.

Purpose built mechanized equipment with adequate flexibility has the possibility to improve workplace safety, reduce operator exposure compared to handheld equipment, and provide improvements to the health of the underground metal/non-metal mines. J.H. Fletcher & Co. has developed a generation of narrow machines with the intent to improve safety for workers installing ground support in narrow vein operations and in single entry development or in tailgate areas where existing supplemental support may prevent use of a wider machine.

Fletcher’s N3016-AD/E was developed when a customer needed a machine that couldn’t be found elsewhere. The objective was to produce a machine capable of installing 6’ bolts in a 10’x10’ heading and was equipped with a mechanized carousel. It would also need the ability to drill and install mesh simultaneously, with a single operator. The goal of the mine was to decrease the time to install mesh and bolt a cut, improve the safety level of their current roof bolting method, improve efficiency and to improve the bottom line cost.

46 Mine Idaho

To address one of the largest safety concerns, Fletcher would mechanize the bolting process and eliminate jacklegs from the bolting process. The N3016AD/E is designed to allow loading, drilling, resin insertion and bolting to all be performed from the operator’s deck. This design allows the operator to remain under a protective canopy for additional protection from rock falling while bolting, and while installing mesh. Also available, is the option of an enclosed filtered cab.

Unlike most commercially available air conditioning/heater systems, the Fletcher air conditioning/heater system filters both recirculated air and the make-up air with a high efficiency filter, working to provide the operator added protection from high noise levels, diesel particulate matter, and ambient mine dust.

To improve efficiency, the boom has the ability to lift, swing, and extend to allow multiple installations from one chassis position. The machine is equipped with a KRM module, with single pass chain drive drill and bolt feeds. Featuring independent crowd on both drill and bolt feeds, allowing versatility in a narrow heading environment.

The compact design is made possible by utilizing the low profile HV-32 Rock Drill. The HV-32 is a low profile, rotary percussive drill head designed specifically for roof bolting applications. The drill has already found success in coal, limestone and salt mines. The low frequency, high impact nature of the percussion cycle, allows drilling in hard-to-penetrate rock. s

BEATING INDUSTRY STANDARDS FOR OVER 80 YEARS. MODEL N3112-AD/E MODEL N3016-AD/E Since 1937, Fletcher has set itself apart, simply by listening.

Fletcher design engineers listen to what the industry says, they hear what operators want from their investments, and then...they design systems and machines that provide solutions.

Fletcher’s bolter product line includes designs specifically for bolting in narrow heading conditions. They are built custom to your mine condition and provide a productive, reliable, and safer work environment.

✓ Do your needs go beyond the standard production line? ✓ Do you need to be more than just a number? ✓ Do your problems need to be heard? ...Then contact Fletcher to find out more about our Custom Line of Narrow Vein Roof Bolters, and get your solution started today.

WWW.JHFLETCHER.COM ∙ 800.543.5431 ∙ SALES@JHFLETCHER.COM J.H. Fletcher & Co. cannot anticipate every mine hazard that may develop during use of these products. Follow your mine plan and/or roof control plan prior to use of the product. Proper use, maintenance and continued use of (OEM) original equipment parts will be essential for maximum operating results. 2018 J.H. Fletcher & Co. All Rights reserved.

®

First Cobalt: Creating a North America Cobalt supply chain

By Heather Smyles

P

ure-play cobalt company First Cobalt Corp. (TSX-V: FCC; ASX: FCC; OTCQX: FTSSF) recently announced its maiden resource estimate for the Iron Creek cobalt and copper project, posting “very encouraging” results of its first NI 43-101 Mineral Resource Estimate in a September 26, 2018, news release (https://www. firstcobalt.com/investors/news/).

“The initial resource estimate and the pace of progress at Iron Creek have exceeded our expectations,” First Cobalt president and CEO Trent Mell states in the release. “We have delineated a sizeable primary cobalt deposit on patented property and mineralization continues to expand to the east, west and at depth. The mineralogy is simple and initial metallurgical test work is very encouraging with high metal

Cobalt is associated with pyrite rather than minerals containing arsenic, which may offer processing and offtake advantages.

48 Mine Idaho

Cobalt’s importance stems from its employment in battery technology.

recoveries. Cobalt is associated with pyrite rather than minerals containing arsenic, which may offer processing and offtake advantages…This initial inferred resource estimate is an important step forward to a potential source of ethical cobalt in America.”

Cobalt and lithium are critical components in relatively short supply for the low-heat, high-efficiency batteries that power a list of computer tech products, most significantly the electric vehicles whose star is rising worldwide amid heightened concerns about pollution and its contribution to planetary climate change. Electric vehicles are generally regarded as much more environmentally friendly than petroleum-burning automobiles, but the large majority of the world’s supply originates in the mine fields of the Democratic Republic of Congo. The DRC has historically been troubled by human rights violations claims amid its workforce, and now is expecting to declare cobalt one of its strategic resources, which would lead to increasing taxes and royalties for the metal.

First Cobalt’s Iron Creek Project is located close to the U.S. automotive industries in California and Michigan, which means it could play a major role in the cobalt supply chain as electric vehicle output rises. Global sales of electric vehicles are projected to grow at a CAGR of 32.57 percent, from 1.50 million units in 2018 to 10.79 million units by 2025, driven by a number of factors. These include worldwide government support in the form of subsidies, grants, and tax rebates, charging facilities with improved capability, the increasing range of EVs, and a general reduction in battery costs.

The U.S. currently (2018) commands a mere 2 percent of the global market but its share is expected to rise to 14 percent by 2025.

Cobalt’s importance stems from its employment in battery technology.

The metal is used as cathode material in many lithium battery technologies. It comprises about 10 percent of lithium-nickel-cobalt-aluminum-oxide (NCA) batteries, 15 percent of lithiumnickel-manganese-cobalt-oxide batteries (NMC) and 55 percent of lithium-cobalt-oxide (LCO), according to Statista.

In October 2018, First Cobalt Corp filed its first NI 43-101 Mineral Resource Estimate for the 100 percent-owned Iron Creek Cobalt Project in Idaho, USA. The company announced Inferred Mineral Resources of 29.6 million tons (26.9 million tonnes) grading 0.11 percent cobalt equivalent, under a base case scenario, and an alternative undergroundonly scenario indicating 4.9 million tons (4.4 million tonnes) grading 0.30 percent cobalt equivalent.

The company has now accelerated exploration activity intended to ex-

plore extensions to the east, west and at depth of the known resource with three drill rigs. A total of over 29,000 meters are planned for the current drill program, primarily from new surface drilling stations constructed earlier this year. Drilling will test down dip extensions of known cobalt-copper zones to over 300 meters below surface and test lateral strike over one kilometer to extend mineralization beyond the current 520 meters.

First Cobalt, headquartered in Canada, is a North American pure-play cobalt company with three significant assets: the Iron Creek Project in Idaho, which has a historic mineral resource estimate (non-compliant with NI 43-101) of 1.3 million tons grading 0.59 percent cobalt; the Canadian Cobalt Camp, with more than 50 past producing mines; and the only permitted cobalt refinery in North America capable of producing battery materials (www.firstcobalt.com). s

First Cobalt is a North American pure-play cobalt company. First Cobalt has three significant North American assets: the Iron Creek Project in Idaho, the Canadian Cobalt Camp exploration project and the only permitted cobalt refinery in North America capable of producing battery materials.

ĨŝƌƐƚĐŽďĂůƚ͘ĐŽŵ TSX.V: FCC ASX: FCC OTCQX: FTSSF | 1

Idaho Mining Association 49

INDEX TO ADVERTISERS AFFCO................................................................................................................20

Integra Resources..........................................................................................45

Arnold Machinery Co.................................................................................... 33

Itafos Conda, LLC........................................................................................... 37

Cate Equipment Co..........................................................................................5

J.H. Fletcher & Co........................................................................................... 47

CiDRAMinerals Processing..........................................................................19

J.R. Simplot Company.....................................................................................3

Coastline Equipment..................................................................................... 21 Coeur Products............................................................................................... 27 Conveyor Application Systems................................................................ 25 Davies Public Affairs.....................................................................................43 eCobalt Solutions............................................................................................ 31 Elko Convention and Visitors Authority............................................... 27 EM Strategies, Inc............................................................................................. 9 First Cobalt Company..................................................................................49

Kiewit Mining Group.................................................................................... IFC Lynden Incorporated...................................................................................... 9 Midas Gold Inc.............................................................................................OBC Modern Machinery.........................................................................................26 Northwest Mine Supply................................................................................41 Purcell Tire......................................................................................................... 23 RMA Prospectors IMA................................................................................. 40

Hecla Mining Company..............................................................................IBC

Rock Tech USA.................................................................................................. 9

High Country Fusion.....................................................................................29

S and G Electric Motor Repair, Inc...........................................................26

Holland & Hart, LLP....................................................................................... 27

Small Mine Development............................................................................29

Idaho Champion Gold Mines Ltd................................................................5

SVL Analytical, Inc.............................................................................................7

Idaho Power...................................................................................................... 17

The Woodshop / Eljay Oil Co. Inc............................................................20

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