Ontario Mineral Exploration Review - Spring 2014 by DEL Communications Inc.

Ontario Mineral

ExplorationREVIEW SPRING 2014

PUBLICATION MAIL AGREEMENT #40934510

CEMI awarded $15 million for UltraDeep Mining Network

Valeâ&#x20AC;&#x2122;s newest mine opens in Sudbury

Canadian mining industry gears up for project payment reporting VCMA evolves into coalition voice

www.omer.ca

COMMITTED TO SUSTAINABLE PRODUCTIVITY We stand by our responsibilities towards our customers, towards the environment and the people around us. We make performance stand the test of time. This is what we call â&#x20AC;&#x201C; Sustainable Productivity. www.atlascopco.com

Ontario Mineral

ExplorationREVIEW

Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5 President and CEO: David Langstaff

Message from the Premier – Kathleen Wynne

CEMI awarded $15 million for Ultra-Deep Mining Network

Vale’s newest mine opens in Sudbury

Publisher: Jason Stefanik Managing Editor: Katrina Senyk katrina@delcommunications.com

Canadian mining industry gearing up for project payment reporting

Advertising Sales Manager: Dayna Oulion

Canadian WIM: changing the mining industry

Advertising Sales: Ross James, Mic Paterson

Ring of Fire presents opportunities for development, challenges to be overcome

Kirkland Lake Gold Mine optimization plan yields results

Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com

One for all and all for one: VCMA evolves into coalition voice

International mining inundated by tsunami of rules and regulations

Protecting yourself from ticks and Lyme disease

Investing for the silver-gold-PGM end-game

Australian moms help to ease the pressure on Canadian families in mining, oil and gas industries

Metals in the modern world: silver

Silver-based memory devices may replace flash-drives

G14: the link for which our industry’s been waiting

Expanded Argo capabilities drive safety, efficiency and productivity

KES Equipment proud to serve Ontario’s mining industry

Index to Advertisers ALS Minerals...............................................................13 Atlas Copco Mining and Rock Excavation Technique Canada..................................3 Becker Varis...................................................................7 BriteSpan Building Systems Inc..................................11 Cambridge House.................................................... OBC City Welding Sudbury Ltd...........................................37 Claude Gravelle, MP, Nickel Belt.................................32 Danatec Educational Services Ltd...............................30 Darby Manufacturing Sudbury Ltd.............................15 Equipment World..........................................................7 EXP Global Inc............................................................IFC Fabrithane Industrial Products Inc..............................37 Fladgate Exploration Consulting Corporation............17 Future Buildings..........................................................29

Greg MacDdonald Equipment Services Inc................16 KES Equipment Inc......................................................42 Kirkland Lake Gold Inc................................................23 Norseman Structures..................................................17 Norske Drilling..............................................................6 NRB..............................................................................19 Ontario Drive and Gear...............................................39 PolyMet Resources Inc................................................31 Provix...........................................................................41 Romquest Technologies Corp......................................30 Terraquest Airborne Ltd................................................6 Tracks & Wheels Equipment Brokers Inc...................IBC Vale............................................................................OFC Wesco Distribution Canada LP....................................33 Wiskair Limited.............................................................9

Art Director: Kathy Cable Layout/Design: Joel Gunter Advertising Art: Caitlyn Haier, Dana Jensen Cover image courtesy: Vale ©Copyright 2014. Ontario Mineral Exploration Review. 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 forwarding looking statements made by advertisers. Articles and advertisements in this publication are not solicitations to buy, hold or sell specific securities; they are for information purposes only. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Investors should be aware that risk is associated with any security, strategy or investment and are advised to seek the counsel of a competent investment advisor before making any investment, or utilizing any information contained in this publication. Subscription, advertising and circulation information can be obtained from the publisher. Publications mail agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba, Canada R3L 0G5 Email: david@delcommunications.com

DEL

Communications Inc.

Ontario Mineral Exploration Review

PRINTED IN CANADA 03/2014

Message from the Premier - Kathleen Wynne

Ring of Fire: Premier’s update In a remote northern location, more than 500 kilometres north of Thunder Bay, lies one of the most promising mineral development opportunities in Ontario in more than a century: the Ring of Fire. Named after Johnny Cash’s famous country and western ballad, this massive mining development project is worth $60 billion, has the potential to generate thousands of jobs in Ontario, and will have a positive economic impact that will be felt across the province and Canada. The development of this area, rich in chromite, but also containing significant deposits of copper, nickel, zinc, gold and other minerals, would contribute significantly to a prosperous Northern Ontario and help create lasting benefits for communities in this area. After a year of economic roundtables in Thunder Bay, cabinet meetings in Sault Ste. Marie and following my attendance at last month’s opening of Vale’s new mine in Sudbury, I am more convinced than ever that we can strengthen the foundation for successful development. All mineral developments are complex undertakings, and the Ring of Fire is no exception. In fact, its remote location makes it more complicated than most. There are no roads, electricity or infrastructure of any kind. With these challenges in mind, our approach must be thoughtful and deliberate. And yet this is also an opportunity for the province to work together with First Na-

tions, the residents of Northern Ontario, the federal government and industry from around the world to create a better future for our province. Infrastructure is the first and most vital challenge we must address to make the development of the Ring of Fire possible. Industry needs access to mine sites and a way to get products to the global market. There are many possible modes of transportation – everything from all-season roads to rail or even hovercraft. The question is how do we address all of these interests in a smart, sustainable and collaborative manner? Our solution was to facilitate the creation of a development corporation to address the infrastructure challenges and bring together partners such as First Nations, industry, and the provincial and federal governments. Since we are one of many partners at the table, we have brought in a neutral third party to help guide our discussions, Deloitte LLP. The consulting firm has begun work with key partners to develop a governance model for the corporation, establish terms of reference for an infrastructure study with input from stakeholders and work toward building our way to the Ring of Fire. I believe it is crucial that all parties have the opportunity to benefit from the sound and strategic development of the Ring of Fire. That is why we are moving forward with a historic community-based regional process with the Matawa-member First Nations – whose traditional lands encompass

the Ring of Fire. This work, led by negotiators Frank Iacobucci and Bob Rae, has resulted in a draft regional framework that the Matawa are currently reviewing. Our government knows that success depends on working closely with our Aboriginal and First Nations partners. That is why we continue to work together not just on negotiations, but also by investing in communities in the region. Through training and awareness programs, more than 850 First Nations members have been able to upgrade their skills. This helps to remove barriers to employment and ensure that First Nations communities can contribute to and benefit from this development. The Ring of Fire will bring enormous opportunity to Northern Ontario and yield economic benefits for the province and the country. That is why we are willing to put in the time, effort and yes, the economic resources to ensure that this development is done properly. And that is why we continue to call on the federal government to do the right thing: to match our contributions and to make the Ring of Fire a national priority. There is no question that the Ring of Fire is the find of a lifetime. I truly believe that we can all benefit from this project, which will help to ensure a successful and sustainable future for Ontario and Canada.

Spring 2014

CEMI awarded $15 million for Ultra-Deep Mining Network By Shannon Katary, Director of Marketing and Community Relations, CEMI

Celebrating the funding announcement are Samantha Espley, Vale; Janet Walden, NSERC; Douglas Morrison, CEMI & UDMN; Greg Rickford, Minister of State for Science and Technology; Irene Sterian, Refined Manufacturing Acceleration Process; Sylvain Cofsky, Green Aviation Research & Development Network; Loretta Renard, Refined Manufacturing Acceleration Process; and City of Greater Sudbury Mayor Marianne Matichuk.

Deep underground metal mines are the source of the specialised metals including nickel, chrome, molybdenum, lead, zinc, platinum and palladium â&#x20AC;&#x201C; that are essential for the modern industrial economy. While

Ontario Mineral Exploration Review

the supply of commodity metals such as iron, aluminum and copper come from very large open pit mines, the specialised metals are largely produced by deep underground mines (>2km below surface).

Recognizing the importance of deep mining, the Honourable Greg Rickford, Minister of State (Science and Technology), was in Sudbury, Ontario on January 22, 2014 to announce winners of the Business-led Net-

works of Centres of Excellence (BL-NCE) program. The Centre for Excellence in Mining Innovation (CEMI) was selected as one of four recipients for its Ultra-Deep Mining Network (UDMN or “the Network”) proposal and awarded $15 million, the largest grant recipient of the 2014 competition. In conjunction with $15 million received from the BL-NCE, the UDMN has also received significant partnership commitments of $31 million in leveraged cash and in-kind contributions. The UDMN is a $46-million business-driven network, founded and funded by members of the mining and oil and gas industries, with the active participation of small- to medium-sized enterprises, industry agencies, research facilities and academia. Managed through CEMI, the UDMN will lever collaborative, networked solution teams to solve critical private-sector research and development challenges that impact resource extraction in ultra-deep mining environments, as well as in deep, tight shale-hosted hydrocarbon reservoirs. Addressing these development and operational challenges in some of the deepest mines in

the world will result in increased productivity, decreased risk to workers, lower energy utilization, as well as lower capital and operating costs achieved through performance and efficiency improvements. Strategic themes: • Rock stress risk reduction; improve the control of stability in deep underground excavations; • Energy reduction: the 40 per cent mine; improve the energy consumption profile of deep mines; • Novel methods of material transport and productivity; increase the rates of development and production in mines; • Improved human health; enhance the human environment in deep mines. Through its potential to produce solutions of high commercial value, the UDMN will increase industry capacity and privatesector investments in Canadian R&D. It will increase commercial uptake of R&D through the support and development of SMEs in the supply and service sectors and by providing industrial “living laboratories” for beta testing of new products. Through

strong industry and academic connections, the UDMN is poised to help train the next generation of deep-mining experts; help innovators invent new and better technologies for ultra-deep mining; and bridge the knowledge and technology transfer gap. The Network will help close the commercialization gap by providing members with access to commercialization evaluation services and a chance to carry out prototyping and testing at actual mine sites. The private sector will further benefit from the edification and validation of research findings through collaboration with the SME community and research teams, further increasing the relevance of research projects and the potential for project outputs to be implemented. This will increase industry’s capacity and capability to advance innovations to market. The UDMN continues to position Canada in a leadership role as the global deep-mining knowledge centre, thereby ensuring that this nation will remain the premier natural resource investment destination of choice. For more information, visit: www.miningexcellence.ca

ENERGY DISTRIBUTION AUTOMATION COMMUNICATION TRANPORTATION

becker varis… we speak your language. • SMARTCOM Leaky Feeder System • Voice, Data and Video • WLAN High Speed Data Solutions • RFID Tagging and Tracking System • Collision Avoidance System • SMARTBLAST Remote Central Blasting System

SMART UNDERGROUND COMMUNICATION

705-674-8111 | www.varismine.com

Spring 2014

Vale’s newest mine opens in Sudbury By Paul Brent Mining’s past has met mining’s future in Sudbury with the official opening of Vale’s Totten Mine on February 21, 2014. Totten, which is Vale’s first new mine in the Sudbury Basin in more than 40 years, was shut down in 1972 as uneconomic to operate but is viable once again, thanks to advances in mining technology. The copper, nickel and precious metals mine represents a significant investment for Vale, which spent seven years and approximately $760 million developing the project. During construction, the mine employed about 500 people and will employ a permanent workforce of approximately 200 people during its expected 20-year operational lifespan.

From left to right during the Premier’s press conference at Totten Mine: Kelly Strong, Vice-President, Ontario & UK Operations, Vale; Hon. Michael Gravelle, Minister of Northern Development and Mines, Province of Ontario; Kathleen Wynne, Premier of the Province of Ontario; Hon. Marianne Matichuk, Mayor, City of Greater Sudbury.

“Vale’s Totten Mine will be a big engine of economic growth in the North, creating good jobs people can be proud of,” Kathleen Wynne, Premier of Ontario, said at the official opening of Totten Mine in Worthington, Ontario. “I want to thank Vale for supporting sustainability and respecting surrounding communities. I know this development will benefit this region for years to come.” It is expected that Totten Mine will produce more than 25 million pounds of cop8

Ontario Mineral Exploration Review

From left to right: Cutting the ceremonial ribbon at the official opening ceremony of Totten Mine on February 21st, 2014 are: Conor Spollen, Vice-President, North Atlantic Projects, Vale; Rick Bertrand, President, United Steelworkers, Local 6500; Bob Booth, Totten Mine Manager, Vale; Hon. Marianne Matichuk, Mayor, City of Greater Sudbury; Kelly Strong, Vice-President, Ontario & UK Operations, Vale; Hon. Kathleen Wynne, Premier of the Province of Ontario; Hon. Michael Gravelle, Minister of Northern Development and Mines, Province of Ontario; Peter Poppinga, CEO of Vale Canada and Executive Director of Vale’s Global Base Metals; Chief Paul Eshkakogan; Rob Assabgui, General Manager, Mines & Mill, Vale.

per and 20 million pounds of nickel annually, as well as significant amounts of precious metals. The mine’s daily output will be approximately 2,200 tons per day once full production is reached in 2016. The mine’s daily production also represents an estimated 12 per cent of the ore feed to Vale’s Clarabelle Mill in Sudbury. At this early stage, the expected life of Totten Mine is 20 years, an estimate which comprises 12 years defined as current reserves and an additional eight to 10 years of production based on mineral resources and exploration targets that are currently known. Originally two shafts were sunk at the site in the 1960s and mining took place at Totten from 1966 to 1972. The mine was closed following this period, due to unfavourable economic conditions. Feasibility studies to reopen the mine were conducted from 2000 to 2006 and development of the mine started in 2007. Dubbed Vale’s most modern under-

ground mine, Totten Mine represents some of the industry’s most advanced mining technology, featuring leading-edge automation, safety and environmental management systems. That technology includes a wireless underground communication system, location tracking on mechanical and personal protection equipment, as well as its state-of-the-art remote-operated control room. Industry-leading environmental design features, which minimize Totten’s environmental footprint, include three water treatment plants, enclosed materialhandling facilities and progressive closure planning designed to keep rock and waste ore from leaving the site. “This is the first place to use all the technology that we have kind of played with in other sites,” says Jack MacIsaac, Vale’s automation and electrical lead. “Our ventilation system is all centrally controlled, the tracking system can actually locate people and equipment, so we can identify what kind of piece of equipment is in a certain area and adjust the ventilation

Totten mine control room.

to accommodate that piece of equipment.” The ventilation on demand system is a more efficient system because it only sends fresh air to areas of the mine in use and it can adjust as necessary when larger pieces of equipment are brought into specific areas. The system will also help to control temperatures underground at Totten because running ventilation fans increases underground temperatures, so minimizing their usage is a significant accomplishment. The Distributed Control System (DCS), considered the “backbone” of Totten Mine, allows underground systems such as process water control, fuel delivery, ore and waste material systems and ventilation to be controlled remotely from the central operation’s control centre. Surface systems are also operated remotely by the central DCS system including the hoist, air intake and vent fans, water treatment facilities and the backfill plant. An ethernet and fibre-optic infrastructure allows for wireless communication underground, meaning that supervisors will be able to use mobile phones and tablet computers while working underground. It also powers a Radio Frequency Identification Device (RFID) system that will allow workers and equipment to be “tagged” to enhance safety and operational efficiency. For example, RFID tags will communicate the required ventilation in a given area, based on the number of people and the size of equipment in the area. These RFID tags also increase safety by allowing the control room to know instantly where employees and equipment are located in the event of an emergency. Production and maintenance data from mobile equipment such as scoops, trucks and drills can also be captured via the wireless network. That information can be analyzed for predictive maintenance on equipment and real-time production data

Water sampling at the Totten Mine pond.

can be captured for immediate reporting and analysis. Including the Totten Mine project, Vale has spent $3.4 billion in capital spending since 2007 on projects to modernize and optimize its operations in Sudbury. Totten Mine is Vale’s sixth mine in the Sudbury Basin. The mining company’s other operations include the Creighton, Stobie, Garson, Coleman and Copper Cliff mines. Vale plans to return the area to its natural state at the end of Totten Mine’s operation life. Totten Mine will also support the community and First Nations. An Impact Benefits Agreement between Vale and the Sagamok First Nation commits to the sharing of economic benefits of the mine and will result in business, training and employment opportunities while continuing to fulfill environmental stewardship responsibilities within their traditional and treaty territory for the duration of this project. “We continue to discuss and make the en-

Aerial view of the Totten Mine.

vironment a priority,” says Chief Paul Eshkakogan of the Sagamok Anishnawbek First Nation. “The biggest resource that we have here in our community is our young people. They are trainable, they want to learn and I think that the company has understood that very well. We want our people to get a career out of this, a lifelong career, and earn those good wages that are available.” Currently, a number of Sagamok members are working at Totten Mine or are in training to join Totten Mine. A number of Sagamok businesses are also involved in the provision of goods and services at the mine. “We really do see this as a template for our future and want Totten to be a model for our future mining projects,” says Kelly Strong, Vale’s vice-president of Ontario operations. “From environmental aspects, from community, technology and productivity, we want to see those things emulated in our future projects.”

Spring 2014

Canadian mining industry gearing up for project payment reporting By Graham Erion, Robert Black and John Munnis, Davis LLP

Following submission of this article, the Canadian government announced their intention to adopt federal legislation for payment reporting by mining and oil and gas companies by April 2015, with reporting to begin for fiscal years ending after June 30, 2015. Graham Erion

Last June, Prime Minister Stephen Harper announced that Canada will soon join other G8 countries and adopt mandatory rules for mining and oil gas companies to publicly disclose all payments they make to host governments for resource extraction projects (hereafter, ‘payment reporting’).1 Following this announcement, Natural Resources Canada (“NRCan”) held a series of consultation meetings and is expected to make recommendations later this year about what form this disclosure should take. Payment reporting is one of the biggest changes to public disclosure for the mining sector since the introduction of National Instrument 43-101 (Standards of Disclosure for Mineral Projects) but the mining industry appears ready to meet this challenge head-on. Even prior to the Prime Minister’s announcement, Canada’s two largest mining industry groups, the Mining Association of Canada (“MAC”) and the Prospectors and Developers Association of Canada (“PDAC”), joined with two civil society transparency groups to establish a working group (the “Working Group”) to make recommendations for a payment reporting framework in Canada.2 Support for this endeavour began shortly after the passage of 10

Ontario Mineral Exploration Review

Robert Black

the Dodd-Frank Act in the United States in 2010, wherein Section 1504 requires similar disclosure for mining and oil and gas companies listed on a stock exchange in the United States. Likewise, the European Union has also recently legislated in this area under the E.U. Transparency Directive (the “E.U. Directive”), which mandates disclosure of payments to host countries for extractives and forestry companies listed on a EU stock exchange.3 While progress in the implementation of the U.S. rules was stalled following a successful court challenge from the American Petroleum Institute (“API”) in August, the Canadian mining industry has continued to push for payment reporting in Canada with the release in January of the final recommendations of the Working Group (the “Report”).4 This article reviews the key aspects of the mining industry’s Report, analyzes the how payment reporting may come to be adopted in Canada, and suggests what mining companies should be doing now to prepare for their future compliance. 1. KEY MINING INDUSTRY RECOMMENDATIONS While the Report contains a number of

John Munnis

detailed recommendations, we believe the following are most important to how a payment reporting regime will be developed in Canada: 1.1. Full Reliance on Provincial Securities Regulators Despite the federal government’s professed enthusiasm to legislate in this area, the mining sector continues to believe provincial securities regulators should be the drivers for this disclosure, preferably in the form of a new or amended national instrument from the Canadian Securities Administrators (“CSA”). The Working Group identified a number of benefits to this approach, including reporting issuers’ familiarity with filing disclosure reports on the CSA’s SEDAR online database, as well as the ability of the provincial securities commissions to impose penalties for failures to report accurate information and to set appropriate safeguards to verify and audit the information that is disclosed. In the United States, the Securities and Exchange Commission (“SEC”) is responsible for the regulation of this disclosure, which the Working Group believes will also create better opportunities for equivalent regulations with provincial securities regulators.

Companies should therefore assess their capabilities sooner rather than later to ensure sufficient time to implement proper monitoring and reporting systems. The major drawback of using securities regulation as the forum for this reporting is that it can only cover publicly-listed companies and not private companies, which has been one of the intentions of the federal government in calling for regulation in this area. The Working Group believes that the benefits of this approach outweigh this exclusion, especially since it will include foreign mining companies listed on the Toronto Stock Exchange (“TSX”) or the TSX Venture Exchange (“TSX-V”), which cover over 60 per cent of the world’s mining companies and handle over 75 per cent of global public mine financings in recent years. That said, excluding privately-held companies could create an uneven playing field and become a wedge issue between the mining and oil and gas industries, as discussed below.

ing Group adopted the SEC’s approach of looking to the legal agreements that give rise to payment liabilities, rather than using a materiality, reporting unit, countrylevel or geological basis (all of which were

advocated at one point or another.) These disclosure requirements will arise from the very start of the project life cycle at exploration, through to the eventual relinquishment and sale of the mineral property, as

1.2. Broad Definitions of Payments and Project as a Basis for Disclosure The basis of the Working Group’s recommendations is that all payments that are made for the commercial development of a mineral resource should be disclosed on a disaggregated, project-level basis. The Working Group recommends that the definition of payments should capture the full revenue stream, including taxes, royalties, fees, production entitlements, bonuses, dividends (i.e., withholding tax), infrastructure payments required by law or contract (such as building a road or railway), and even transportation and terminal operations fees when paid to public bodies. This list does not address voluntary ‘social payments’ such as contributions to local hospitals or schools, despite some strong support for including such payments during the Working Group’s roundtable consultations and NRCan’s own consultations. The SEC’s rules for mandatory payment reporting in the U.S. permitted this disclosure as a voluntary category, and while these rules are currently being re-drafted, this aspect is unlikely to be revised and could well be included in the final framework in Canada. For the meaning of ‘project’, the WorkSpring 2014

well as throughout the entirety of the value chain from development through production, transportation and export.

the Working Group’s desire for consistency with the U.S. rules, it will be interesting to follow the fate of this recommendation.

1.3. Dual Payment Reporting Thresholds Perhaps the most debated and contentious aspect of the mining industry’s Report is its advocacy for two separate reporting thresholds. Companies listed on the TSX would be required to report any payments over $100,000, which is aligned with the U.S. rules and similar to the €100,000 threshold under the E.U. Directive. However, smaller issuers on the TSX-V are recommended to have to report any payments over just $10,000, which the Working Group believes will allow smaller companies to better communicate their payments clearly and credibly. This recommendation may prove contentious when legislation or a national instrument is ultimately introduced, since many larger mining companies appeared to favour the ‘materiality’ threshold that governs most securities disclosure while smaller companies have expressed concerns that a $10,000 threshold will result in difficult and expensive compliance. Where the thresholds are ultimately set will depend what regulators ultimately deem the purpose of this reporting is; if it is to protect investors, the materiality standard will be acceptable. If the focus instead is to promote the good work of mining companies in paying host governments, the dual $10,000/$100,000 threshold will likely be adopted. Finally, if the focus is simply to align with the U.S. and E.U. standards, then the $100,000 threshold will be implemented.

1.5. Aboriginal Payments One of the most unique aspects of the federal government’s entry into the payment reporting issue was its desire to extend this reporting to payments to First Nations and aboriginal groups. Mining companies often enter into joint ventures and/or impact benefit agreements with aboriginal groups in Canada or elsewhere that give rise to payment obligations not unlike payments to local host governments. However, such payments were never included in the DoddFrank rules or the E.U. Directive and were largely ignored by the Working Group, who chose not to address the issue in the Report. This doesn’t resolve the issue however, even though there was a lot of concern expressed about this proposal from Canadian aboriginal groups during the NRCan consultations. Mining industry representatives seemed more receptive to reporting these payments but did not want to hinder relations with aboriginal counterparties. Nonetheless, the federal government appears to remain strongly committed to covering aboriginal payments, which may require a phased-in approach to ensure the duty to consult with aboriginal groups is met.

1.4. No Disclosure Exemptions Permitted The Canadian mining industry’s refusal to permit any exemptions from mandatory reporting in the Report implicitly rejects the API’s argument against the U.S. rules. Last August, the API successfully challenged the SEC’s rules, largely on the basis of the lack of reporting exemptions for countries that prohibit such disclosure (Angola, Cameroon, China, and Qatar were all cited). While the SEC has gone back to draft new rules to comply with this ruling (which might take another year or longer), the Working Group has rejected this approach in Canada, claiming to allow such exemptions “would run counter to the spirit of improving transparency…and result in uneven reporting and differential treatment of companies.”5 Given 12

Ontario Mineral Exploration Review

2. TWO DIVERGENT PATHS FORWARD Given the mining industry’s preference for a provincial securities regime and the federal government’s willingness to legislate in this area – a position not yet shared publicly by any provincial government – there seems to be two separate approaches emerging to payment reporting in Canada. This may become a particularly sensitive issue given the Supreme Court of Canada’s previous rejection of the federal government’s proposed national securities regulator, which has served to heighten federalprovincial tensions in this area. In addition to the federal versus provincial debate, there is also a growing divergence between the mining industry, which has tried to be ahead of any regulation in this area, and the oil and gas industry, which has taken a much more cautious approach. It may be notable that the Canadian Association of Petroleum Producers (“CAPP”) chose not to join the Working Group despite being invited, though it maintained its public support of the Working Group’s ob-

jectives. CAPP has continued to publicly favour extending the rules to cover privatelyowned and state-owned companies, which is a key element of the federal framework that provincial securities regulators may have a difficult time regulating.6 It is therefore worth noting that MAC and PDAC have launched a lobbying effort to persuade the Ontario and British Columbia securities commissions to adopt new rules based on the Report and do not appear content to wait for federal legislation in this area.7 There is accordingly a strong possibility of a patch-work approach to payment reporting provincially and federally and, potentially, even across industries. Whichever level of government is able to pass rules first may get the jumpstart in framing this regime, but not necessarily the last word. This uncertainty does not bode well for Canadian companies wanting to plan effectively for their compliance with this reporting. That said, it is not an excuse for inaction either. 3. WHAT CANADIAN RESOURCE COMPANIES SHOULD BE DOING NOW Even though it is likely to be at least a year or more before mandatory reporting becomes a reality in Canada, there are still a number of steps companies should take now to be prepared: 3.1. Stay informed There are a lot of important details for the Canadian regime to be still worked out, including the ones identified above, but also issues such as reporting payments on a cash or accrued basis; who will certify or provide assurances for the disclosure; what role auditors will play, if any; and the remedies or consequences for omissions or non-compliance. While the mining industry has expressed its views in the Report and during the NRCan consultations, there will likely be further opportunities to influence this framework once the legislation is introduced. It will also be important to follow the SEC’s release of its revised rule in this area, which will be made available for public comment and potentially influence Canadian regulations or equivalency provisions. 3.2. Watch your confidentiality clauses Resource projects have long timelines and so payments required under contracts being entered into now will likely have to be disclosed in the future. Therefore, com-

panies are well-advised to ensure that confidentiality clauses in any licences, agreements, concession leases or other contracts they enter into with host governments permit disclosure of what might otherwise be confidential information when required by law. This may be of particular relevance in impact benefit agreements and other contracts with aboriginal groups given some of the resistance to this disclosure seen to date. 3.3. Start keeping track of payments internally Companies would be well-served to assess their own record-keeping and accounting systems to see how capable they track resource project payments. Over 100 Canadian companies are already listed on U.S. stock exchanges and may well have started to implement compliance programs. For everyone else, the SEC rule gave U.S. issuers a little over a year to start tracking and reporting such payments and it is unlikely the Canadian legislation will provide much more lead time. Companies should therefore assess their capabilities sooner rather than later to ensure sufficient time to implement proper monitoring and reporting systems. Industry associations may also play a useful role in gathering best practices and coordinating the development of accounting systems that could reduce costs of compliance. CONCLUSION While it may take some time for Canada to work out all the kinks in order to implement mandatory payment reporting, the international focus on transparency in the resource sector appears here to stay. Canada has already seen greater enforcement of its foreign anti-corruption laws and broad support for international initiatives like the Extractive Industries Transparency Initiative. Mandatory reporting is just the latest manifestation of this new world of transparency that is becoming the norm in the mining industry. This can potentially present a big challenge to mining companies but with proper preparation, including advice of auditors and legal counsel, a smooth transition is possible and future compliance may be assured.

References:

Canadian Press, “Harper announces mining, oil and gas companies to face tougher rules on payments to foreign governments” June 12, 2013. Online: http://news.nationalpost. com/2013/06/12/harper-announces-miningoil-and-gas-companies-to-face-tougherrules-on-payments-to-foreign-governments/ 2 See the Working Group’s homepage here: http:// www.pwyp.ca/en/issues/transparency-working-group 3 See the text of the EU Transparency Directive here: http://eur-lex.europa.eu/LexUriServ/ LexUriServ.do?uri=OJ:L:2013:294:0013:0027 :EN:PDF (paragraph 7 addresses disclosure of payments to governments) 4 The Working Group’s final report is available here: http://www.pwyp.ca/images/M_images/Working_Group_Transparency_Recommendations_Eng.pdf

Ibid., at page 9. See, for example, Shawn McCarthy, “Mining industry endorses ‘game-changer’ transparency rules” The Globe and Mail (January 16, 2014) (“CAPP vice-president Bob Bleaney said the industry wants not just publicly-traded firms but privately-owned and state-owned companies to be covered. He said CAPP would support reporting on a project-by-project approach, so long as there is some flexibility on the definition of what constitutes a project.”) Online: http://www.theglobeandmail. com/report-on-business/mining-industryendorses-game-changer-transparency-rules/ article16356454/ Ibid.

Best in the Business! > > > >

Industry Leading Turnaround Time Expert Geochemistry Support Expert Client Services Strong Technical Partnerships in Chemistry and Metallurgy > CoreViewer™ Technology

For more information, scan this QR code or visit www.alsglobal.com | Phone: +1 705-560-7225

Spring 2014

Canadian WIM: changing the mining industry By Dick DeStefano, Executive Director of SAMSSA

Several members of the Women in Mining network pose for a photo at the WIM reception during the PDAC convention in March 2008. Left to right: Rosario Astuvilca, Catharine Shaw, Sue Hebert, Jane Werniuk, Pat Dillon, MaryAnn Mihychuk, and Kim MacDonald. Photo credit: Stan Sudol.

One of most current trends in the mining community is the growing population of professional women who are actively participating in the mining workforce globally. I recently wrote an article entitled “What Would We Do Without Women in Mining?” describing an organization recently reconstructed and reorganized into an association called Modern Mining & Technology Sudbury. This association introduces a week-long event outlining the importance of mining to over 1,000 elementary and high school students. It has become increasingly obvious as the association grows in size and structure that professional women in mining are not only leading the way in their daily mining responsibilities, but also are developing educational awareness on the importance of the industry through multiple interactive activities at this event; for instance, the 14 women on the 21-member committee who brought their daily experience to the Mod14

Ontario Mineral Exploration Review

ern Mining & Technology Sudbury event. The association is hoping to target more young women considering a profession in a growing and important sector and these 14 women played a pivotal role in getting the message out. Sudbury is seen as the most “mining literate” centre in North America. Much of this is due to the role women play in the industry. It hasn’t always been this way in the mining field. Courtnay Meaghan Hughes has written an insightful thesis for her Master’s degree at Simon Fraser University entitled, “A Study of the Career Advancement and Retention of Highly Qualified Women in the Canadian Mining Industry, 2012”. Her thesis notes that in 1890, the Ontario Mining Act included in the legislation “the prohibition of any girl or women in or about any mine.” Amendments to the Act in 1912-13 allowed companies to hire women in a technical, clerical or domestic capacity.

Visits from Royalty to Sudbury’s Frood Mine occurred in 1939, when King George VI and Queen Elizabeth visited Sudbury and in 1959, when Queen Elizabeth 11 and Prince Phillip visited Frood Mine. The gender divide within mining employment remained in place except for a temporary lift of the ban during the Second World War and the Queen’s visits. Historical records show 17 females were hired during the war years. Finally in 1960, the 1935 Act was ratified and further included the forbidding of employment of women in any mine except women who were employed in health and welfare services and other non-manual underground work. A project documenting experiences at INCO Sudbury operations is one of the only accounts of first-generation women entering blue-collar Canadian jobs. Between 1974 to p76, INCO hired 100 women for hourly rated jobs at the company’s surface operations in Sudbury. In 1978, women were finally allowed underground in Ontario.

A professional geoscientist checks a reading in the field. Photo courtesy: APGO.

The change in legislation and attitude has been slow because at 14.4 per cent to 16.4 per cent, the representation of women working in the Canadian mining industry is the lowest among primary industry cat-

Diversifying the workforce by increasing the number of women retained and recruited by the mining sector is an essential strategy in addressing the looming skills shortage. Photo courtesy: MiHR.

Marc Boudreau, BESTECH co-CEO; Sarah Paajanen, BESTECH project manager; and Cheryl Allen, Vale chief ventilation engineer/project manager, view NRG1-ECO TMâ&#x20AC;&#x2122;s open-architecture technology. Photo courtesy: Vale.

roles (95 per cent) and corporate-services positions (60 per cent) are held by women. The introduction of WISE (Women in Science and Engineering) in 1998 and expanding chapters of WIM (Women in Mining), a national not-for-profit organization formed in 2009, focus on advancing the interests of women in the mineral and mining community across Canada. The inauguration of a chapter of WIM for Northern Ontario took place January 30, 2014 in Sudbury. Former chair of Modern Mining & Technology Sudbury and program coordinator at the Goodman School of Mines, Nicole Tardif, a new director of WIM, attended

the inaugural reception held at the Modern Mining & Technology Sudbury event. She addressed the audience, stating, â&#x20AC;&#x153;We have a unique opportunity in Northern Ontario to show others the diversity in mining-related careers because we are surrounded by the history and the future of mining.â&#x20AC;? The creation and expansion of two associations dedicated to growing the numbers of women in mining in Canada is an encouraging sign. One of the key factors to attract and retain women in this industry is the well-documented need for mentors, and these new initiatives should provide the necessary relationships required for the future.

Photo courtesy: Vale.

egories. Despite a perception that more women are involved in the mining industry today, the number of women in mining remains relatively unchanged since 2001, except for a few managerial opportunities and corporate leadership roles. Another major study recently released by the Mining Association of Canada, Facts & Figures 2013, spends little time on the issue of women in mining. Mining now employs 418,115 Canadians but the study indicates that in the mining industry, women represent less than five per cent of positions in trades, production, services and management. However, most clerical and support Spring 2014

Ring of Fire presents opportunities for development, challenges to be overcome By Leonard Melman

Few stories within the realm of mining news

metals ore-body that has become known

have captured the level of attention lately

as the Ring of Fire (ROF). In fact, discus-

being paid to the growing list of difficulties

sion of ROF details was a major highlight

surrounding development of the Ontario

at the just-concluded giant PDAC annual

Tel: 705-560-2739 24 Hour Service

HEAVY EQUIPMENT RENTALS, SALES, AND SERVICE

Scissorlifts › Knucklebooms › Forklifts Mining Equipment › Aerial Booms Mini-Excavators › Skid-Steer Loaders TRADESPERSON SUPPLY – WELDERS & MECHANICS

Tilt & Load Service Equipment Training Email: gme@gmes.ca 2381 Lasalle Blvd., Sudbury, ON P3A 2A9

www.gmes.ca 16

Ontario Mineral Exploration Review

Convention held in Toronto in early March 2014. What makes the ROF question unique is the sheer economic potential of this deposit should successful exploration, development and eventual production take place. However, the potential for bureaucratic and regulatory entanglements of a truly historic nature has also been felt. Located to the west of James Bay near McFaulds Lake in a remote section of Northern Ontario some 500 kilometres northeast of the city of Thunder Bay, the ROF resources were discovered in 2007 by a team of six geologists who located a potential nickel-PGE deposit, originally taken over by Noront Resources. Other metals finds were soon noted, with the most important being the discovery of possibly huge resources of chromium, a metal used extensively in the manufacture of stainless steel. Cliffs Natural Resources of Cleveland, Ohio (“Cliffs”) became interested in the chromium discovery and eventually bought out Freewest Resources’ share of the Black Thor, Black Label and Big Daddy deposits in 2009 for US $240 million. At that time, Joseph Carrabba, president and CEO of Cliffs, issued a statement declaring, “...the world-class deposits had the potential to support an open-pit mine producing one to two million tonnes per year for more than 30 years.” The company then announced it was making a US$3.3 billion investment to build a chromite mine and processing facility in Northern Ontario that would lead to increasing prosperity, thousands of new jobs and new area infrastructure improvements.

Government leaders waxed enthusias-

a press release dated June 12, 2013, in which

the Ontario government have been unable

tic about future prospects and in 2012,

they announced that their subsidiary com-

to determine which body is responsible for

Canada’s Treasury Board president, Tony

pany, “Cliffs Chromite Ontario Inc.” was

building the road or rail line and, in addi-

Clements, was quoted as claiming the ROF

temporarily suspending its environmental

tion, the entire permitting process has been

could eventually generate as much econom-

assessment activities due to, “...delays relat-

ic growth as the Alberta tarsands.

ed to the environmental assessment process,

From a mining company’s point-of-view, reliably swift movement along the numer-

land surface rights, and negotiations with the Province of Ontario.”

dogged with as yet unresolved Aboriginal rights issues, environmental assessment issues, surface rights issues and water quality issues, among others.

ous processes from discovery to eventual

This was followed by the news release of

construction of production facilities is vital

November 20, 2013 that declared that its af-

There is no lack of interest in the ROF as

because during this entire period, cash-flow

filiate, “...will suspend indefinitely its chro-

evidenced by the fact that no less than 11

is outward-bound – and it can be enor-

mite project in Northern Ontario by the end

companies still have holdings in the ROF,

mous, particularly for a vast, remotely-lo-

of the fourth quarter of 2013...We will re-

including Cliffs, Fancamp Exploration Ltd.,

cated project like the ROF.

duce the project team staffing and close our

KWG Resources Inc. and Noront Resources

Thunder Bay and Toronto offices as well as

Ltd.

Unfortunately, when it has come to permitting procedures and receiving necessary

the exploration campsite.”

With so much at stake for Northern On-

government infrastructure support, ‘swift-

One of the central problems is the lack

ness’ has not been forthcoming; and ulti-

of either a railroad or an all-weather road

mately, it was the continual expense drain

into the project area, without which heavy

without visible progress that was the main

equipment, ore or concentrate and other es-

redouble efforts to find timely resolutions

reason proffered by Cliffs for pulling back

sential materials could not be transported in

for any difficulties which are impeding the

their participation from the ROF.

and out of the region on an economic basis.

development of this world-class mining op-

However, both the federal government and

portunity.

Two important announcements included

tario’s future development, it would appear well-worthwhile for all parties involved to

NORSEMAN STRUCTURES IS

UNRELENTING IN MEETING ENGINEERING CHALLENGES

We offer a wide range of services to the resource industry including:

Norseman Structures steel framed, fabric covered buildings meet the same building codes as steel buildings.

land management & technical services

From custom building projects to complex installations, we will take on the challenge of meeting the needs of our customers around the world. We provide more than a high quality building, we provide solutions.

geomatics-database management project evaluation & generation resource estimation modelling corporate management mining services 1.855.385.2782

norsemanstructures.com

FROM THE BUSH TO THE BOARDROOM

195 Park Avenue Thunder Bay ON Canada P7B 1B9 t 807.345.5380 f 807.345.1875 info@fladgateexploration.com W W W. F L A D G AT E E X P L O R AT I O N . C O M

Please recycle. Spring 2014

Kirkland Lake Gold Mine optimization plan yields results

Following operational management changes, Kirkland Lake Gold has initiated a mine optimization plan. Several factors in the mine optimization plan include raising the cut-off grades from 0.18 ounces per ton to 0.20 ounces per ton, stopping the practice of mining lower-grade incremental tonnage or marginal tonnage, and putting tighter dilution controls in place. These changes were implemented to be in line with the company’s new strategy to mine as close to the historic reserve grade of .44 ounces per short ton as possible, in order to become profitable, cash-flow positive, and lower operating and all-end costs. The results of these changes and mine practices were not fully witnessed until January, the last month of the quarter, when Kirkland Lake Gold had significantly better results than the previous eight months of 18

Ontario Mineral Exploration Review

the fiscal year. During the quarter, production totaled 31,022 ounces at a grade of 0.33 ounces per ton; however, during the month of January, a 31 per cent increase in produced ounces was realized from the yearto-date average, producing 13,483 ounces at a recovered grade of 0.44 ounces per ton, a 43 per cent increase from the year-to-date average. January’s financial results were also a significant improvement over the year-to-date average. Operating or cash costs for January were reduced to $839 per ounce, from $1,104 per ounce year-to-date. January’s total all-in cash costs were reduced to $1,513 per ounce from $2,528 per ounce, a decrease of 40 per cent throughout the quarter. January’s operating results also include a one-time $900,000 severance cost, paid to a portion of the 144 employees who left their

employment during the fourth quarter after being laid-off. As of today, we have a total workforce of 1,086 people. This number is now more aligned to the company’s fiscal year 2015 mine plan and production rates, which are in the process of developing. Kirkland Lake Gold is planning on a longterm average grade of around 0.37 ounces per ton. The planned ratio of South Mine Complex to Main Break (stops) in fiscal 2015 is 66 per cent South Mine Complex, versus 44 per cent Main Break. All-end cash costs are expected to be further reduced throughout fiscal 2015 (which begins May 1st, 2014) through a reduced capital-spend program and incremental increase in volume, but at a much higher head grade than has historically been mined over the last two years; continued results from the existing mine optimization plan; and further optimization plans that have yet to be introduced. Another milestone reached by Kirkland Lake Gold during the third quarter was the completion of the $95-million expansion program and capital spend. The last project for this expansion program was the dry commissioning of the new ball mill, which was completed in February. The company’s yearly ongoing capital requirements during the expansion program were in the range of $100 to $125 million per year. Now that that spending is completed, yearly ongoing sustainable capital requirements are expected to be in and around the $45- to $50-million range, a significant reduction to the company on a going-forward basis. Kirkland Lake Gold expects to produce 120,000 to 125,000 ounces for its current fiscal year 2014, ending April 30, 2015. Fiscal year 2015 mine plans are currently being worked on and should be published later in the spring.

FROM CONCEPT... TO COMPLETION

Xstrata Nickel Rim South Project â&#x20AC;&#x201C; 60,000 sq. ft. Administration/Dry modular facility built off-site by NRB, LEED Gold certified.

Building off-site reduces on-site activity, improving safety. Sophistication, strength, speed and sustainability are the cornerstones of buildings by NRB. Designed to meet your exact needs from architectural expression to operational requirements, our advanced off-site building technology and project delivery method gives you the permanence and performance of conventional construction, but in half the time. Building your project off-site in our controlled plant environment results in better waste management, less downtime and improved quality during construction. When an NRB building

arrives at your site it is already up to 95% complete, significantly reducing on-site activity as well as vehicular traffic from material deliveries and workforce travel. This results in a cleaner, safer construction site with minimal disruption to the busy mining operation. NRB works closely with you from design through to occupancy, for almost any type of commercial, institutional or industrial building application.

To find out all your possibilities today, call 1-888-249-9194.

Web: www.nrb-inc.com Email: inquiries@nrb-inc.com NRB Inc. 115 South Service Road W., P.O. Box 129, Grimsby, Ontario L3M 4G3 NRB (USA) Inc. 440 Wenger Drive, Ephrata, PA 17522 Specializing in the Mining Industry with permanent Mine Dry Facilities, Operations Centres and Administrative Offices.

BU ILD O FF- SITE ... SIMPLIF Y YO U R CON S T RU C T ION

One for all and all for one: VCMA evolves into coalition voice By Melanie Franner

Joe Martin.

The fledgling Venture Capital Markets Association (VCMA) is receiving wide industry-sector support in its efforts to raise concerns about an increasingly over-regulated Canadian venture capital market. Founded last year by Joe Martin, a long-term industry veteran and chairman of Cambridge House International, Don

on its way to establishing a presence in the political and public arenas. “We’re evolving into a coalition voice against over-regulation for many industry sectors,” states Martin. “We’re pleased to see an increase in media attention related to this issue. We aren’t trying to conduct studies or

Mosher, an original founder of B&D Capi-

re-invent the wheel. We want to become the

tal Partners who has over 25 years of experi-

collective voice for the many industries in

ence in the public market, and several other

Canada that are being adversely affected by

concerned individuals, the VCMA is already

regulations in the venture capital market.”

Ontario Mineral Exploration Review

Martin adds that the proposed changes outlined in CSA Notice 45312 do not go far enough as they continue to define venture capital as an investment that must have ‘big brother’ intervention.

CSA Notice 45-312 In pursuance of instigating change, the VCMA recently took advantage of the Canadian Securities Commission’s (CSA) invitation for comment on Multilateral 45-312 Proposed Prospectus Exemption for Distributions to Existing Security Holder. This substantially harmonized proposed exemption would, subject to certain conditions, allow issuers listed on the TSX Venture Exchange (TSXV) to raise money by distributing securities to their existing security holders,

We aren’t trying to conduct studies or re-invent the wheel. We want to become the collective voice for the many industries in Canada that are being adversely affected by regulations in the venture capital market. thereby changing the current “restrictive” regulations affecting accredited investors. “Venture capital, by its very nature, implies risk,” stated the VCMA in its response. “It is speculative investing. Venture markets have traditionally gone through periods of boom/bust cycles; however, the current deterioration of commodity markets in Canada is accentuated by onerous regulations.” Martin adds that industry concerns have been widely publicized and are likely a major reason for the proposed changes as outlined in CSA Notice 45-312. He adds that these proposed changes do not go far enough as they continue to define venture capital as an investment that must have ‘big brother’ intervention. The VCMA recommends that all proposed regulations related to individuals investing in publicly listed venture capital companies should be fully removed, thereby allowing all investors to participate as they desire. According to Martin, some 60 per cent of worldwide mineral exploration is done by Canadians. And this impressive number is in danger of dropping. “I don’t think that there is another industry about which Canada can boast as much as exploration,” he states. “The problem is that people don’t see it because this activity doesn’t take place in our own backyard.

Canadians raise the money and the jobs and exploration takes place all around the world. The amount of regulation in the venture capital market is going to strangle any future venture market opportunities.”

if not hundreds of thousands, of people behind us,” states Martin. “It’s all about saving – and creating – Canadian jobs.” One Small Step at a Time Having made its submission to the CSA,

Strength is Power The buzz about CSA Notice 45-312 is just one example of how organizations like the VCMA can increase visibility about regulation in venture capital markets. The association is also partnering with other organizations to strengthen its position – and its collective voice. “In order to be effective, we believe in the need for an organization to have the numbers behind it,” adds Martin. “For this reason, we are working hand-in-hand with organizations across many different industry sectors.” Supporters to date include: Cambridge House International Inc., a leading organizer of investment conferences; Association of Mineral Exploration Companies (AME BC); Prospectors and Developers Association of Canada (PDAC); Canadian Stock Exchange (CSE); and a growing list of junior resource companies, professional firms and individuals. “We’re working on increasing our membership numbers so that we can go to the regulators and say that we have thousands,

the VCMA is hoping for a positive outcome that will change the current climate for investing in the venture capital market. But it is not restricting itself to this one issue alone. It is also working with other industry-sector organizations to investigate the viability of creating a “Chair of Regulatory Studies” at some of the more prominent universities in the country. “We’re building momentum one day at a time,” states Martin. “There will be no end to that. We need to become bigger and stronger so that we have a more powerful collective voice across different industry sectors, one that will be heard by the regulators who oversee this industry.” To that end, the VCMA will continue in its drive to become the collective voice of industry. “We’re trying to get everyone on the same page,” concludes Martin, who adds that organizations and people are slowly coming on board. “It’s only a matter of time before we get to a point where the regulators will have to listen to us.”

We’re working on increasing our membership numbers so that we can go to the regulators and say that we have thousands, if not hundreds of thousands, of people behind us. It’s all about saving – and creating – Canadian jobs.

Spring 2014

International mining inundated by tsunami of rules and regulations By Leonard Melman There is a strange perception which has been accepted by many members of the general public. Just as multitudes blame “deregulation” for the financial crisis of 200709, many people – but NOT those in the mining industry – also seem to believe that the world of mining is some sort of freefor-all existing under minimal government oversight. In fact, few industries on earth are as hamstrung by excessive regulation as the world of mining exploration, development and production. It can be truly stated that many of these regulations tend to increase the costs and complexities of the entire process of moving a mineral discovery through to eventual production. As a result, in recent years, fewer metals discoveries are being made, fewer projects are being advanced to actual production and the danger of a future serious metals supply shortage is steadily increasing. The enormous variety of laws relating to mining is truly mind-boggling but I would suggest that this trend is indicative of actions within the general societies of Canada, the U.S.A. and other “advanced” nations. An examination of the number, complexity and intrusiveness of many laws, some containing more than 2,000 pages, could easily lead to the conclusion that most people believe that societal problems can only be solved either by new laws and regulations or by adjusting existing ones. The situation has grown so perilous to many that the Wall Street Journal recently carried two articles entitled “Red Tape Record Breakers” and “Government Gone Wild” and noted economist Niall Ferguson recently authored a piece noting that historically, America was truly the land of the 22

Ontario Mineral Exploration Review

free while France was the land of intrusive socialist government. However, after examining recent trends relating to regulation in America, Ferguson concluded, “...at some point between 1833 and 2013, France must have conquered the United States.” If anyone believes that this pattern of intense regulation is limited to Canada and the U.S.A., they should think twice; a recent article out of China related to furious anger, leading to one bureaucratic death, caused by their complex “one-child” laws; and legal complexity is so overwhelming in nations such as Egypt and India that articles abound of people driven to actual suicide. Our main interest, of course, is in relation to metals prospecting, exploration and development and to say there is no shortage of regulations impeding mining operations would be a substantial under-statement. Because of an abundance of available information on the subject, we focus this article on Canadian mining laws and regulations. A short list of federal agencies involved directly or peripherally in regulating mining would include Environment Canada; the Canadian Environmental Assessment Agency; Fisheries and Oceans Canada; Indian and Northern Affairs Canada; Natural Resources Canada; and Health Canada. After examining reams of printed materials and numerous federal and provincial information sites, it is reasonable to report that the total body of laws, rules and regulations relating to mining in Canada is almost beyond comprehension. Taking as our pattern the flow of work from original discovery to mine closure, what follows is a partial listing of associated legal intrusions into the mining processes.

Prospecting The act of recording a discovery is called “staking a claim” and involves placing physical “stakes” to mark the area involved, although in recent years several provinces have turned to electronic recording of claims. Once the claim has been recorded, various laws come into play relating to the work which must be done in order to maintain the claim in good standing. Excluded Areas Numerous laws are in effect which define those areas in which any form of mining cannot take place. These areas include national parks, national park reserves, national wildlife areas, migratory bird sanctuaries, protected watershed areas and United Nations biosphere reserves. Indigenous Peoples Consultation If there is one area of mining law that has the capacity to confound industry entrepreneurs, it is Aboriginal law. The Canadian Constitution Act defines Aboriginal and treaty rights. The United Nations Declaration of Rights specifies Free Prior Informed Consent procedures to be followed with First Nations peoples. Numerous land claims agreements specify aboriginal privileges. Permit Approval Review Processes Mining permit approval processes involve numerous laws originating with both the federal and provincial governments. These include the “Canadian Environmental Assessment Act”; the “Nunavut Impact

Review Board”; the “Mackenzie Valley Review Board”; “Health, Safety and Reclamation Code”; “Fisheries Act”; “Environmental Assessment Act”; “Metals Mining Effluent Regulations” and the “Canadian Environmental Protections Act.” Assuming a company eventually enters production and actually makes a profit, there are likewise numerous taxation and income redistribution laws which lie in waiting. These include: Nunavut and N.W.T. sliding-scale royalty laws; Ontario Mining Tax; Manitoba Mining Tax; royalties to indigenous peoples defined by agreements like the Nunavut Land Claim Agreement and the Inuit Impact Benefit Agreement. These are all in addition to the “normal” federal and provincial corporate tax laws.

ing in foreign lands are in the process of being written, following consultation with the provinces, territories, First Nations groups, Aboriginal groups, the mining industry and various interested civil groups. And Quebec has just imposed their new, complex Bill 43 which will replace their existing Quebec Mining Act of 1987. Somehow the public must realize that almost every facet of our modern existence is dependent upon a steady and reliable flow of an enormous variety of metals which must be mined to come into usable

existence. Unless the present situation is reversed and new mining ventures are quickly brought to production, it is relatively easy to forecast serious, perhaps crippling future metals shortages as old mines play out. The situation has become so perilous for small miners that a new organization, the “Venture Capital Markets Association”, has been formed with the rallying cry of “Zealous over-regulation by a multitude of governing organizations is rapidly bringing venture funding to a halt.” It is that serious.

Reclamation Upon Mine Closure Laws These require such measures as the creation of a mine closure plan as specified in the “National Orphaned and Abandoned Mining Initiative”; posting of guarantees to ensure financial capacity to follow-through with such plans; and an elaborate array of regulations requiring protection of water resource purity following reclamation. Sometimes the specific wording of laws implies a standard which might be impossible to meet, such as the Department of Fisheries and Oceans requirement that mining companies which use ponds for tailings storage are required to “recreate the lost habitat” without defining exactly how this is to be accomplished. We have used Canada as our primary example, but rules and laws are similar in both nature and complexity in other important mining nations such as the U.S.A. and Australia. It is also worth noting that regulations in far-flung nations are having their impact on North American miners, as well. Kinross Gold recently pulled out of a major project in Ecuador because of that country’s tax laws. Barrick Gold recently took a huge write-down on its Chile/Argentina PascuaLama project, citing environmental laws and government interference. Going forward, there is little indication that the overall situation is improving. Canada just announced that tougher new regulations for mining companies operatSpring 2014

Protecting yourself from ticks and Lyme disease By Lyndon McLean For many prospectors out in the field, ticks are little more than an annoyance. They’re a part of the environment, and picking a few off you at the end of the day is part of the job. Some prospectors even make it a competition to see who has more ticks on them at the end of the day. But there’s more to them than just being irritating little bloodsuckers. Ticks can transmit diseases such as Lyme disease, a painful infection that can have serious longterm health effects if not properly treated. About Ticks It is the corkscrew-shaped bacteria, Borrelia burgdorferi, which causes Lyme disease. In Ontario, these bacteria are spread by the bite of blacklegged ticks (sometimes called deer ticks), Ixodes scapularis, which are found intermittently throughout the province. Ticks generally live two to three years. Females are larger than males, and have a smaller scutum (hard plate on the back) than males, which covers the whole back. Females feed for reproduction, so a bloated tick will be a female tick preparing to lay eggs, while males feed to survive. [It’s interesting to note that males can find their own host, but can move to another host if they smell a female.] Female ticks lay eggs – up to 3,000 – in leaf litter. Larvae come out and feed on small rodents. Blacklegged ticks can also feed on migratory birds. Once they’ve fed, they detach and molt into a nymph, which attaches to something larger, like a rabbit, where they’ll again feed before detaching and molting into an adult. As they move up in host size, ticks increase the height at which they “quest” or climb to the tips of vegetation and extend their legs in order to find a new host. 24

Ontario Mineral Exploration Review

Wood Ticks vs. Blacklegged Ticks When the average person thinks of a tick, they’re probably thinking of a wood tick. Wood ticks are larger than blacklegged ticks, have white markings all over their bodies and are prevalent in open areas out in the sun, such as the edge of a path or a clearing. Wood ticks are most active in spring and summer. Female wood ticks lay eggs at the end of summer, so larvae hatch, spend the winter in leaf litter and begin feeding in spring on hosts such as mice. They’ll feed, molt into nymphs, and by fall will molt into adults. Blacklegged ticks are smaller than wood ticks and have no markings. A nymph is about the size of a poppy seed, and an adult female measures about 2.7 mm in length, the size of a sesame seed. An important feature of the blacklegged tick is its longer, more pronounced mouth, which has backpointing teeth that dig into skin. Blacklegged ticks live in moist, covered environments and are most often found in forested areas. Females lay their eggs in spring rather than summer, so nymphs feed in spring and into summer, then molt into adults that feed actively in autumn. As mentioned, female blacklegged ticks feed more than males (which rarely bite and sometimes don’t feed at all), so they’re the ones to worry about as they can transmit diseases. It’s important to note that blacklegged nymphs can transmit Lyme disease – not just adults – so they need to be removed quickly to reduce the chance of transmission. Most people aren’t thinking of ticks in the fall, but they need to be aware of them yearround, as tick season is from snow melt to snowfall. Tick-borne Diseases

Source: Lyme Disease and Other Tick-Borne Diseases: Info for Health Professionals. Public Health Agency of Canada, 2013. Reproduced with permission from the Minister of Health, 2013.

Ticks can carry a number of pathogens, and common diseases transmitted by blacklegged ticks include Lyme disease, anaplasmosis, and babesiosis. Lyme disease is the most common tickborne disease in North America. Caused by the bacteria Borrelia burgdorferi, an infected tick has to be attached and feeding at least 24 hours for transmission. Lyme disease is named after the towns of Lyme and Old Lyme, Connecticut, where cases were first identified in 1975 after being mistaken for juvenile rheumatoid arthritis. Symptoms appear three to 30 days from infection and include fever, headache, fatigue, aches and in 70 to 80 per cent of cases, a bull’s-eye rash more than two inches in diameter and migrating. There will be no pain or itch with the rash, but the bite site may be itchy. In most cases, Lyme disease can be effectively treated with antibiotics; however, approximately 10 to 20 per cent of patients have lingering symptoms of fatigue, pain, or joint and muscle aches, in some cases lasting more than six months. If not treated quickly and effectively, Lyme disease can lead to more serious symptoms, even affecting the heart and nervous system. Like Lyme disease, anaplasmosis is caused by a bacteria, Anaplasma phagocytophilum,

It’s important to note that blacklegged nymphs can also transmit Lyme disease – not just adults – so they need to be removed quickly to reduce the chance of transmission. and symptoms appear one to two weeks after a bite from an infected tick. Symptoms are similar to those of Lyme disease, including fever and headache, but the disease affects white blood cells, and a blood test will show low white cell and platelet counts. Babesiosis is a malaria-like disease caused by the protozoan Babesia microti, a red blood cell parasite. Again, symptoms are similar to those of Lyme disease, but patients will also suffer from anemia, as the disease causes blood cells to burst. Babesiosis is easy to determine with a blood test and is known to be present in the same distribution as blacklegged ticks. Though rare, infection is always a possibility. Protecting Yourself Because tick season is so long and blacklegged ticks can spread disease as both nymphs and adults, awareness and protection are important. Knowing that thing on you isn’t a poppy seed or just another bug but a potential vector for a serious disease can keep you safe. The following will help reduce the risk of being bitten and possibly infected: Think protection, not fashion – when you’re out in the bush, tuck your pants into your socks and your shirt into your pants. This makes ticks have to climb farther to get to any “sweet spots” (aka skin) and increases the chance of seeing them. Wearing light clothing also makes them easier to spot. Use repellant – many people who work in the bush use DEET as cologne – and that’s a good thing. If in doubt, check the label. Spray pants and boots thoroughly, and remember to re-apply. Chemicals like permethrin spray (available in the U.S.) are effective against ticks but not to be used on skin. To many, the benefits of chemicals outweigh risks. Check yourself thoroughly – a thorough tick check is the most important thing to do at the end of the day. Ticks need to be removed as soon as possible. There are certain areas ticks like – under-

arms, sides, groin, along the hairline (anywhere warm with a bit of friction) – so as soon as you see a tick, remove it. And don’t rely on a hot shower or bath to remove them either; ticks have been known to walk under water, and they can survive hot baths or even sub-zero temperatures. Removal Getting ticks off you can be difficult, especially blacklegged ticks with those backpointing teeth. Use forceps or tweezers and get as close to the skin as possible. Pull up slowly and steadily; the skin will come up but the tick will come out. Even with proper measures, the mouth can break off, but it won’t be very deep into the skin (it’s like a wood splinter – and it won’t migrate to other parts of the body). Make sure to remove it all and treat it like any other bite, cut or breach in your skin: clean, disinfect and monitor it. Where They Are In Ontario, blacklegged ticks are more commonly found in rural areas along the north shores of Lake Ontario, Lake Erie, and the St. Lawrence River. Locations with established blacklegged tick populations infected with the Lyme disease agent include: Wainfleet Bog Conservation, Prince Edward Point National Wildlife Area, Turkey Point Provincial Park, Area Long Point Provincial Park, Rondeau Provincial Park, Point Pelee National Park, and in the St. Lawrence Islands National Park area. The precise boundaries of these established tick populations are difficult to define but it is projected that some of these populations will continue to expand into neighbouring areas. Since blacklegged ticks can also feed on migratory birds, they can thus be easily transported throughout the province. The Ontario Ministry of Health & Long-term Care notes that while the potential is low, it is possible for people to encounter blacklegged ticks, or to be infected

with Lyme disease from the bite of an infected blacklegged tick, almost anywhere in the province (http://www.health.gov.on.ca/ en/public/publications/disease/lyme.aspx). Issues such as expanding deer mice population, which are a common host for blacklegged ticks, are being monitored. In other areas of the country, the same trends have been seen, as tick populations have expanded in Manitoba, Quebec and Nova Scotia. When You Find Ticks The Ontario Agency for Health Protection and Promotion (OAHPP) Public Health Laboratories (PHL) conducts serological (blood) testing for the causative agent of Lyme disease - B. burgdorferi. Dr. Kateryn Rochon at the University of Manitoba’s Department of Entomology suggests keeping a pill container in your pocket or truck so you can send in a sample for testing in case of symptoms or just to identify the ticks. According to Dr. Rochon, 10 per cent of blacklegged ticks submitted through the surveillance program were positive for Lyme disease. “There’s no need to panic,” she says, “but people need to be aware. Protect yourself, be aware of symptoms, and if you’re travelling, be aware of the risks.” Special thanks to Dr. Kateryn Rochon for her invaluable information. Additional information on ticks and Lyme disease can be found at: • http://www.health.gov.on.ca/en/public/ publications/disease/lyme_faq.aspx • http://www.hc-sc.gc.ca/hl-vs/iyh-vsv/ diseases-maladies/lyme-eng.php • http://www.phac-aspc.gc.ca/id-mi/tickinfo-eng.php • http://www.phac-aspc.gc.ca/publicat/ ccdr-rmtc/08vol34/dr-rm3401a-eng.php • http://www.cdc.gov/lyme/ Talk to your doctor, or contact your local public health unit for further information. Spring 2014

Investing for the silver-gold-PGM end-game By David H. Smith precious metals’ sunlight, the indices again headed south until mid-December, forming what at this writing appears to have been a major (double-bottom) low. Interestingly, although gold and silver were unable to print new lows at that time, some miners did, before moving aggressively higher with the advent of the New Year. While all this was going on, the primary PGMs – platinum and palladium – dropped, then turned around and retraced almost all their initial declines. Platinum, which historically has traded at a substantially higher price than an ounce of gold, spent over a year at $150/ounce below the gold price. It has now moved back up to an almost $200 premium. In April 2011, gold and silver prices peaked above $1,900 and around $48 per ounce respectively, ushering what in retrospect turned out so far to be a two-and-one-halfyear cyclical bear market. Mining shares from the best and brightest to dogs that couldn’t hunt were eviscerated without distinction. Sixty to 80 per cent drops for producers and 90-per-cent-plus declines for explorers were common. The mining shares managed to disconnect so fully from precious metals’ prices that the gap widened more than two standard deviations from the norm. A lot of market participants, even some of the big-fund managers, bit the dust and called it quits, fulfilling David Morgan’s dictum that bull market corrections “will either scare you out or wear you out”. Finally in late June last year, the metals gave evidence of printing major lows below $1,200 for gold and just under $19 for silver. Over the next two months, a major rally ensued, carrying many of the mid-cap producing miners up by 100 per cent or more from their June lows. After these relatively brief rays of 26

Ontario Mineral Exploration Review

The PGMs: likely bull market leaders PGM supplies are currently entering into a long-term deficit in relation to current

and projected demand. Declining palladium production in Russia – and platinum in South Africa due to labour strife, soaring production costs and government meddling, assures it will most likely be a number of years before the supply deficit equation stabilizes. These factors, plus the establishment of new ETFs – one fund alone took over 500,000 ounces from the market in less than six months – make it likely that the PGMs will move into a strong bull market phase…and soon. It looks increasingly likely that by late spring, platinum and palladium will break out on the upside to new intermediate highs and move into a very powerful bull market phase. While they will be doing this based upon their own rather unique fundamentals, the chart price tracks they create may provide important clues for the resumption of the bull markets in gold and silver to follow.

The world supply of platinum is about one-tenth that of gold; less than one-hundredth that of silver. (It’s been stated that all the platinum ever mined would fit into an average American living room.) Whereas during the 1980s and ‘90s, above-ground inventories were largely in surplus, since 1996 net reduction has swung this picture into the deficit column. Russia and South Africa alone account for around 86 per cent of global platinum production – which has been declining for both since 2006. North America and Zimbabwe supply four per cent each, with others making up the remainder. As overall production struggles, recycling plays a key role in filling the gaps. Demand components: auto industry (catalytic converters – generally for gas burning engines), 30 per cent; jewelry, 28 per cent; industrial uses, 35 per cent; investment, eight per cent. It’s estimated there are over five billion ounces of above-ground gold, compared to about 200 million ounces of platinum. Unlike gold, there are no large stockpiles. So while the metals in nature are equally rare, annual platinum mined equates to only a small fraction of that for gold. Indeed, for 2012, Johnson Matthey reported that platinum supply was approximately 8.5 million ounces (mining 6.5 + recycling 2.0 million ounces, respectively). For palladium, supply was about 7.4 million ounces. In comparison, global gold production was around 2,500 metric tons or a bit over 80 million troy ounces. For a number of applications, platinum is actually more favoured by jewelers than gold. It is 10 per cent more dense, extremely durable, and does not need to be ‘enhanced’ with other metals, as gold does (e.g., in the creation of ‘white gold’). To express certain attributes in its fabrication, gold needs to be combined with palladium, nickel or rhodium. Though platinum was only officially discovered in the 1700s (the Spaniards ran into it in the 1500s while mining for gold and silver in the New World), ancient indigenous South Americans used it in ceremonial jewelry. Still farther back in history, caskets in ancient Egypt have been found adorned with gold, silver – and platinum. Not known to exist in Canada until 1888, platinum was discovered in Sudbury, On-

Typical South African Reef Mining. Image courtesy: Ivanhoe Mines.

tario, alongside copper and nickel deposits. Sometime thereafter, until the early 1950s Canada was actually the world’s largest platinum producer before being supplanted by South Africa. Sprott’s Thoughts points out just how complex and dangerous the mining of PGMs in South Africa can be. Relatively thin ore seams slope downward and instead of a mechanized approach, must often be dug out by individual miners operating along cramped, narrow stopes. As Sprott’s

Andy Jackson notes: “It’s a really nasty job for the guys in the mines. It’s hot and it’s cramped. It’s also dangerous – there are rock falls and ‘rock bursts’ simply because of the pressure. All kinds of things can go wrong at that depth.” Palladium – an even more compelling narrative Now consider that palladium is 15 times rarer than platinum. Often found as a byproduct of platinum, around 68 per cent of

Spring 2014

expect that the Russian government sales will have any influence on the market this year or in any following year.” He believes that their stockpile is effectively exhausted. Adding still further “push” to palladium’s supply-demand matrix, China, boasting the world’s largest auto market, sold almost 22 million units (with catalytic converters) in 2013, with an expected 10 per cent increase slated for 2014.

its annual supply is used in the automotive industry in catalytic converters (preferred for diesel engines). An additional four per cent goes into jewelry, seven to eight per cent for dental, 14 per cent for electrical, and eight per cent goes to other uses. Forty per cent of the world’s palladium supply comes from a single location in Russia (Norilsk), though several North American mines produce it as well. Platinum and palladium are so critical in many industrial uses that Japan has designated PGMs to be one of the most important metal categories in its national resource acquisition policy. Analyzing the price tracks on the PGM charts could provide important clues to what the gold and silver bull market legs will look like when they begin their move, first to nominal all-time highs, and then into a public mania phase over the next few years. The short form is that from a purely technical perspective, palladium looks to be considerably stronger than platinum, trading above both the 50- and 200-day moving averages, and has moved within shouting distance of its intermediate highs around $850. (In platinum’s favour is the fact that it has fully reinstated, and maintains, its premium over gold.) The possibility of a surprise palladium upside breakout gains credence when one considers what Johnson Matthey, the most 28

Ontario Mineral Exploration Review

authoritative source on PGM statistics, recently told Bloomberg News. They stated that in 2012, supply from stockpiles in Russia came in at 250,000 ounces. During the previous year, supply had clocked in at 775,000 ounces – over three times higher. And they projected that 2013 would show a further major decline, to an estimated 95,000 ounces. Norilsk (which accounts for most of Russia’s palladium production) market strategist Anton Berlin concluded that, “We don’t

What the July/August, 2013 chart action tried to tell us… When a major low is forming, ‘bellwether’ stock prices tend to display a certain type of behaviour. They make a last, steep drive downward to new lows before reversing on one or more big up-days, often on heavy trading volume. After advancing for a week or two, they head down again, this time more slowly than with the original drop. A series of consecutive down days may take place, with the stock price losing just a few cents per day – on light volume. This shows the decline is being supported by new buying, which tends to mute the light selling pressure taking place. The price drop tries to equal or surpass the original low. But if it cannot, buyers will force a turnaround, often explosively, to the upside. Since mining stocks as a group, have become so massively oversold during the last several years, the reversal can be violent

– as was the case in July. Unfortunately the bears had one more downside test in an effort to institute a new major down-leg, an event they have thus far failed to validate, despite almost eight months of trying. And what the Decline into December seems to be Confirming Please remember that no one who is honest both with themselves and with you can guarantee that this 2.5-year decline has fully run its course, but at this writing, the odds favour that this has indeed been the case. What would be very supportive would be to see one last effort going into the February-March time period, to print new lows in the “best of breed” miners, concomitant with weakness in the physical metals themselves. Should that effort fail, likely in this writer’s view, then the tide would be set for an upside turn in a pronounced and sustained way. Like Germany’s final campaign in 1941 to take Moscow during WWII (appropriately named Operation Typhoon), the spent invasion force first paused, and then was forced into a near-rout retreat as

the counter trend attack by “opposition” forces instituted a new and ultimately decisive “trend” in the opposite direction. The two junior silver mining company charts on page 28, plus that of a PGM exploration company, were chosen because

they demonstrate virtually all of the comments made in the preceding three paragraphs. A number of other companies with equal or even greater price appreciation potential could have been selected. Please keep in mind that these are not to be con-

BUILDINGS FOR MINING Two Companies Joined Forces to Provide the Industry with Rugged Pre-engineered Steel Building Solutions FUTURE BUILDINGS

Arch Style or Straight Wall Serving Canada’s Mining and Energy Industries for Over 30 Years Quote Your Next Building Project

1-800-668-5111

ext www.BuildingsForMining.com 4004 mining@futurebuildings.com Spring 2014

sidered specific recommendations (though this writer does hold a core position in each example). First Majestic Silver Corp. (NYSE: AG) operates several silver mines in Mexico. Notice on this weekly chart, how in classic technical analysis fashion, the secondary price decline after the initial low, broke above and then bounced off the 50-day moving average before rising sharply to challenge the 200-day MA. It then declined over the next several months into December, providing significant evidence of a double bottom. Volume thus far appears to be attendant rather than prognostic, but MACD looks to have given a non-confirmation signal during the attempt at new lows.

The second example is of Yukon-area silver producer Alexco Resources (AMEX: AXU). After its initial low, prices plowed through the 50-day MA on the third try, moved sideways for awhile and then went vertical in an attempt to reach/exceed its 200-day MA. When this attempt failed, AXU fell away to form (so far) a long-term

bottom in November, printing almost identical weekly lows over several months (well above the June spike low) then moved up and away, almost doubling by the time of this writing. This last chart on page 29 shows an exploration company, Wellgreen Platinum (formerly Prophecy Platinum). The property, owned by Wellgreen Platinum (TSX.V: WG; OTC: WGPLF), is a nickel-copperplatinum group metal (platinum, palladium, rhodium) project located in southwestern Yukon territory. Looking at the late January breakout above the 50-day MA demonstrates how a lot of previous price action, in the case to the downside, can be negated during one unexpected price movement in the opposite direction. Prices are 90 per cent below their 2011 highs and the reversal is still a young trend, but it has provided some respite for long-suffering bulls. Buy and Sell Carefully Over the next few years, as this secular

bull market moves into its last stages, the price swings in both directions will become more violent. Public, institutional and industrial buying (and selling) will cause extremely large moves. Eventually, silver could range $10 in one day, and gold $200. A mining stock which may have taken years to move from .50 to $5.00 could move quickly to $10. An investor too fast on the trigger would be overjoyed to see a double to the new higher price and might be tempted to sell his/her entire core position at $10 – only to see the stock shoot up to $15…or $20! Don’t forget David Morgan’s long-stated belief that fully 80 to 90 per cent of profit the potential is likely to take place during the last 10 per cent in time of the secular bull market’s entire run. It may be difficult now for the many investors who are sitting on stock picks which have declined 60 to 90 per cent from where they were purchased, but history shows that IF your picks survive, they are capable of making some very impressive “recoveries” once a sustained upside run gets underway.

AUTHORIZED DISTRIBUTOR

Class 7 TDG & Radiation Safety Training for Radiography, Well Logging & Portable Gauges

NEW! ONLINE!

Safety. Training. Today

1.877.913.3366 WWW.DANATEC.COM 30

Ontario Mineral Exploration Review

HANDHELD X-RAY FLUORESCENCE ANALYZERS  Combines more than 35 years of innovation in portable XRF  Accurate, fast and totally non-destructive analysis  From Mg to U  Used for : Mineral exploration and screening  On-site testing of rocks, soil, sediments  Grade control  Analysis of mining production / process samples: ores, concentrates, tailings, slags  Heavy and toxic metals in soil  Base & Precious Group Metals exploration  Environmental analysis and soil remediation  Archeology

What follows (disclaimer, I own some of these) are meant to be examples, not recommendations, of stocks printing lows in 2008, then running to their respective 2011 tops less than three years later: Alexco Resources (0.43 - $10.25); Endeavour Silver (0.71 - $13.00); First Majestic Silver (0.67 - $20.80); Avino Silver (0.20 to $3.60); Silver Wheaton ($2.55 - $47.50); Goldcorp ($13.80 - $56.20); Yamana ($3.31 - $20.50). And there were dozen more, which did the same thing! That’s why it’s important for each of us to begin thinking about our true goals before prices go parabolic. Are you a “sandwich” trader who seeks to take a large chunk out of the middle of the rise? In 1979, a professional trader this writer knew personally began his line in silver near $12 and by $18, was completely out of the market. He literally burned his charts and walked away. Yes, he was “way too early” since silver then shot up to the $50 area, but he made several million dollars in that $6 range… and held on to every cent. Are you a “top caller” who tries to capture that elusive “last one-eighth”? Or maybe you’re one of those rare individuals who knows how much is “enough” – for you. Do you intend to liquidate your core when you think prices are peaking, or will you always keep some metal and a few shares for “insurance”? We could be at least a few years away from following through on such decisions, but it’s not too early to spend some time reflecting upon them. But Think Big… Late last summer, precious metals newsletter writer Gene Arensberg commented on silver’s long-term chart encompassing many years of data, noting silver’s “massive implied support down to $18.50”. Then he said, “Looking at this next chart, consider, please, just consider the action in silver as a giant, tortuous, bone-crushing, radioactive flag formation.” If Arensberg is correct, try and visualize just how much higher prices might be propelled, due to the “fallout” from such an upside explosion. For certain, be sure that you’ve acquired the amount of physi-

cal silver – as well as gold, platinum and palladium that you feel is appropriate for your financial circumstances and goals. But never forget that silver in particular is known as “the restless metal” for a reason. The big change nowadays, is that all of “the precious metals four” – platinum, palladium, gold and silver – have become and will likely continue to be “restless” in their own right. Even at this date, before making their moon shots, any (or all four?) can just as easily take you back down into the valley of despair first!

Disclaimer: David H. Smith owns shares of a number of silver mining and PGM companies, including Alexco Resource Corp., First Majestic Silver, Ivanhoe Mines, and Wellgreen Platinum. Smith is senior analyst for The Morgan Report: Money, Metals and Mining, from David Morgan. David Morgan, “The Silver Guru” and editor of The Morgan Report, presents annually at conferences in North America, Europe and Asia. You can learn more about Morgan’s services at http://www.silver-investor.com/ and follow his perspective and teachings at http://www.youtube.com/user/silverguru.

ISO 9001

A Division of PolyMet Resources Inc.

Assaying and Bulk-Sampling Services

1 Presley St. P.O. Box 699 Cobalt, Ontario Canada P0J 1C0

Tel. (750) 679-5500 Fax (750) 679-5519 info@polymetinc.com www.polymetinc.com

Spring 2014

Australian moms help to ease the pressure on Canadian families in mining, oil and gas industries Alicia Ranford (left) and Lainie Anderson.

A free support website has been launched in Canada to boost the emotional resilience of employees and families in the mining, oil and gas industries. Created by two Australian moms, the

free website is designed to offer professional support and friendship to Canadian families coping with the pressures of fly-in, flyout (FIFO) rosters or life away from strong support networks.

“Mining, oil and gas are dynamic industries offering financial stability and great career opportunities – but the lifestyle can also be tough sometimes, especially on young families,” says founder Alicia Ranford. “I created Mining Family Matters in Australia four years ago, after struggling to find specific information and services to help my two young children cope with their FIFO mining dad being away for extended periods. The website is now accessed by more than 16,000 people per month.” After receiving regular enquiries from North America, Ranford and co-founder Lainie Anderson decided to offer the same dedicated resources to Canadian families and companies. The website, www.miningfm.ca, caters to both English and French readers. Key features include: • A free Q&A counselling service where families can seek professional advice on relationship and parenting issues;

DEL

Communications Inc.

Claude Gravelle MP NDP Mining Critic porte-parole minière

Mining Rocks! Have a good conference Avoir une bonne conférence Claude.gravelle@parl.gc.ca | 1-800-267-4829

Ontario Mineral Exploration Review

DEL Communications Inc. and you,

THE KEY TO SUCCESS. We offer outstanding personal service and quality in the areas of: CREATIVE DESIGN | ADVERTISING SALES TRADE PUBLICATIONS | QUALIFIED SALES & EDITORIAL TEAM Suite 300, 6 Roslyn Road, Winnipeg, Manitoba, Canada R3L 0G5

w w w.delcommunications.com

orizontal

Eight strategies for success in the working away guide

• Columns by resident psychologist Angie Willcocks; and • Stories by lifestyle contributors and mining, oil and gas workers. The Mining Family Matters team – who attended the 2014 PDAC in Toronto – has also launched a new guidebook to help Canadian families survive and thrive when one partner works away. The 32-page Working Away Guide is printed in English and French and targeted primarily at resource companies. It contains professional advice most commonly requested by FIFO families around the world, as well as practical ways to keep relationships healthy and families happy. Topics include what to expect when you first work away, parenting and discipline, sex and FIFO couples, the art of making new friends, house rules for happy homes, and helping children to cope.

“FIFO family issues are universal,” says Ranford. “That’s why we’re so committed to ensuring families don’t feel like they’re alone – because the fact is that mining families the world over are tackling the same issues every day. “Our goal is to make families feel like they’re part of a community – despite the fact that we might live and work in different corners of Canada and even on the other side of the globe.” The Canadian launch follows significant success for Mining Family Matters in Australia, where 16,000 families now access the free website every month and more than 100,000 guides have been sold to companies nationwide. For further information, email alicia@miningfm.com or phone/ text +44 7937 390 330.

You want it? we got it! • Over $14,000,000.00 in Inventory • Order By 4:00 p.m. Get it the next morning • Solutions to maintenance, repair - original equipment manufacturer

www.wesco.ca 1.866. WESCO CA (937.2622)

1. Coping in the early days: Don’t assume your life is tougher than the person who’s away/at home. It’s natural to feel this way, but getting into a competition about it won’t help your relationship. 2. House rules for a happy home: Try to remain as accessible as possible while you’re apart. Keeping in regular contact with phone calls and little emails makes a big difference. 3. Helping children to cope: If your child is missing Mom/Dad, allow them to talk about it. Try to avoid saying things like “be brave” or “don’t be silly” because they might think you are not interested or they are unacceptable feelings to discuss. Give them a cuddle and ask “Can you think of anything that might help you feel a bit better?” 4. Sharing time and avoiding conflict during precious time together: For some couples, it works best to agree from the outset on a set number of nights that will be spent together and socializing together or apart. 5. Keeping the love alive: There are all sorts of fascinating benefits of regular sex – including an improved sense of smell and immune function. But the main benefit is enhanced connection and intimacy in your relationship. 6. Don’t let money make you miserable: Set shared financial goals, and make sure they’re SMART (Specific, Measurable, Attainable, Realistic and Timed). For example, “Let’s save $20,000 towards a home loan by the end of next year” is better than “Let’s save for a house”. 7. Working away – parenting and discipline: Remember the golden rule for families separated by work: the rules apply all the time, whether you are home or not. Standard rules are very important for children in hectic households. 8. Tackling loneliness when you’re apart: Loneliness is not a nice feeling. Like all feelings, however, it doesn’t tend to hang around for too long unless it is deliberately “hung onto”. Whenever you feel lonely, tell yourself something like “I can cope with this” and then distract yourself with positive behaviours like exercising, reading, enrolling in an online course, and contacting a friend or loved one. Spring 2014

Metals in the modern world: silver MINING BUILDS A BETTER WORLD

technology Mining makes modern technology possible.

NICKEL Nickel is often the base element in superalloys, which are used in the production of jet engines.

SILVER

COPPER

CHROMITE

Many of today’s hybrid vehicles depend on nickel for use in their Nickel-Metal-Hydride (NiMH) batteries.

Silver is used in batteries for small devices, like hearing aids, because of the battery’s long life and high energyto-weight ratio.

Chromite is used to harden steel, manufacture stainless steel, and to form alloys. Chromite is also used to make ovens, heating units and plating for automobile parts.

Copper is used in electrical wiring around the world. The average Canadian will use more than 400 kg of copper in their lifetime.

GOLD Gold is used in mission-critical electrical systems where failure is not an option: spacecraft, jets, smart phones, and computers.

Aluminum, titanium, nickel, and other metals are needed to create airplanes.

Optical data-storage media like CDs and DVDs use silver as a coating material.

SILICON

Silver’s high electrical and thermal conductivity makes it ideal for a variety of electrical end uses including films for electrically heated automobile windshields.

Silicon, used as a semiconductor in microchips, makes all computers, smart phones, and tablets possible.

agriculture Farming depends on minerals to

environment Mining provides the materials used to create

foster healthy crop growth.

green technologies and renewable energy.

ZINC Zinc is used in phosphate fertilizers to avoid zinc deficiency in plants, which can adversely affect the health and growth of plants.

Rare Earth Elements are used in wind turbines to generate power.

When plants experience even marginal deficiency, yields can be reduced by as much as 39% without obvious visible symptoms.

Lithium, graphite, and other materials are essential for modern batteries such as Lithium-ion.

PLATINUM GROUP METALS

Silver, copper, and other metals are necessary to make efficient solar panels.

RENEWABLE ENERGY

Platinum group metals such as platinum, rhodium, and palladium are used in catalytic converters, which have been prolific in reducing pollutants like:

Platinum is an essential catalyst in fuel cells, which could significantly reduce emissions of vehicles and uninterruptable power supply systems.

-Carbon monoxide (poisonous gas) -Hydrocarbons (leads to creation of smog) -Nitrogen oxide (leads to creation of smog and acid rain)

Hybrid and electrical cars use large amounts of copper, along with metals such as nickel, cobalt, lithium, graphite, samarium, neodymium, lanthanum, and boron.

Fact

health

Millions of tons of metals, concrete, stone, and other mineable materials are used to create hydroelectric dams around the world – The #1 source of renewable energy

Precious metals and minerals are essential in modern medical applications.

MEDICAL GOLD

PLATINUM

Gold is being used in cancer treatment for the precision delivery of medication. Cancerous cells can be targeted by "medicine bullets" covered in gold, which are subsequently activated to release their load.

Platinum is ideal for temporary and permanent implantation in the body because of its biocompatibility, which is exploited in a variety of treatments including heart implants.

SALT Salt is used by hospitals in saline drip, which is used in IVs to restore body fluids and electrolytes.

SILVER Silver is inherently antimicrobial and controls hundreds of pathogens. It is increasingly being integrated into fabrics in hospital settings to minimize the transmission of pathogens.

This infographic brought to you by:

The Ontario Mining Association’s infographic “Mining Builds a Better World,” which is available on the website www. oma.on.ca, illustrates how various minerals mined in Ontario contribute to a better 34

Ontario Mineral Exploration Review

world in technology, agriculture, the environment and health. With a little help from Washington D.C.-based The Silver Institute, the OMA shows how recent advances in applications of this metal indeed make our lives better. Checking in at number 47 on the periodic table of elements, sandwiched between palladium and cadmium, silver has many unique characteristics, which support the OMA info-graphic claim, “Mining’s value is not limited solely to the resources it extracts from the ground. Did you know that minerals and metals are essential, irreplaceable components of modern technology? Mining makes countless products we use every day possible and is integral to the next-generation technologies that will make our world greener, safer, healthier and more connected.” How about the glass on the touchscreens of your smartphones and tablet devices? One company is now adding silver ions to this type of glass. The silver ions inhibit the growth of mould, mildew, algae and bacteria. They provide a built-in antimicrobial property. Sounds like safety and health gains. It is envisioned that this use of silver ions in thin, high-strength glass will be used on touchscreens used by large numbers of people such as in hospitals and in the transportation and the hospitality industries. It is estimated that in 2012, the market for antimicrobial coatings was $1.5 billion and it is expected to grow. Uses for antimicrobial coatings can also be found in air conditioners, medicine, textiles and food and beverage sectors. Silver actually interrupts a bacteria cell’s ability to survive. When bacteria cells come into contact with silver, they fall apart; this is why this precious metal has medical appli-

cations in bandages that speed healing and are essential in treating burns and wounds. How about transportation devices with internal combustion engines? While the spark plugs in your car may be contain electrodes made of iridium, many race cars – think Formula 1 and NASCAR – run on silver spark plugs. Silver is the perhaps the best thermal and electrical conductor of any metal. Silver produces a cleaner and more powerful spark and leads to enhanced performance, better gas mileage and easier starting due to lower ignition voltage requirements. While racing teams will embrace these advantages, including more miles between pitstops, silver spark plugs are more expensive than their iridium counterparts and need to be changed more often. Although silver spark plugs may not be common in family vehicles in 2014, the automobile industry has a long record of adapting improvements tested on the track to vehicles coming off an assembly line. On a different path, silver regularly finds its way into food-processing applications. For those who favour purity in their spirits, The Silver Institute tells us a new vodka produced in Mongolia, which is made from wheat, is distilled six times through silver and platinum filters. The company’s claim is that its vodka is so free of impurities that it can be safely consumed by people on gluten-free diets. Recent statistics show that Ontario on an annual basis produces about 147 tonnes of silver valued at more than $168.4 million. Modern electronics manufacturers, medicine, auto racers and vodka producers are among many who use silver to build a better world.

Silver-based memory devices may replace flash-drives Although there are different types of ReRAMs, those using silver ions show excellent promise, according to industry officials.

You may not have heard the acronym ReRAM, but you will soon. Resistive Random Access Memory or “ReRAMs” (sometimes written as “RRAMs”) operate like tiny battery cells and store data through changes in the electrical resistance of the cell. The presence or absence of an electrical charge can be used to store bits of information. Although there are different types of ReRAMs, those using silver ions show excellent promise, according to industry officials. This burgeoning technology for storing information will eventually replace flash memory – used in thumb drives and many notebooks. Currently, all tablets and smartphones use flash memory, but that too will change in coming years as ReRAMs take their place. ReRAMs hold advantages over conventional flash drives. Because ReRAMs use so little power – in the nanowatt range compared to hundreds of milliwatts for flashdrives – they could allow your smartphone to operate up to a week without recharging. A ReRAM chip the size of a postage stamp can hold a terabyte of data, enough to store 250 high-definition movies. Information is written to ReRAMs faster, nanoseconds compared to milliseconds for flash-drives. ReRAMS also last longer; they are able to

handle millions of rewrites compared to flash-drives that fail after about 10,000 rewrites. One company, Crossbar Inc., based in Santa Clara, California, touts its silver-ion based technology for its memory devices, which CEO George Minassian expects to be commercially available next year. Their ReRAM version relies on the formation of a filament produced by the movement of silver ions within a silicon base. “Non-volatile memory is ubiquitous today as the storage technology at the heart of the over-a-trillion-dollar electronics market – from tablets and USB sticks to enterprise storage systems,” said Minassian in a prepared statement. “And yet, today’s nonvolatile memory technologies are running out of steam, hitting significant barriers as they scale to smaller manufacturing processes. With our working Crossbar array, we have achieved all the major technical milestones that prove our ReRAM technology is easy to manufacture and ready for commercializa-

tion. It’s a watershed moment for the nonvolatile memory industry.” Other companies including Toshiba, Panasonic, HP, Micron and Samsung are also working on their own versions of ReRAMs, with many of their designs based on silver ions, too. Previously published in the Silver News newsletter produced by The Silver Institute; reprinted with permission. The Silver Institute is a non-profit international industry association headquartered in Washington, D.C. Established in 1971, The Silver Institute’s members include leading silver producers, prominent silver refiners, manufacturers and dealers. The Silver Institute serves as the industry’s voice in increasing public understanding of the value and many uses of silver, and also creates programs across many platforms that benefit the white metal. For more information on The Silver Institute, or silver in general, please visit: www. silverinstitute.org. Spring 2014

G14: the link for which our industry’s been waiting Photos this page show the Terracore product line.

Atlas Copco is a recognized world leader in sustainable productivity solutions. Based in Stockholm, Sweden, our company was founded in 1873 and has a global reach spanning more than 180 countries. The Great 14 Group is a diamond-bit line of premium exploration products designed for mineral exploration, using the latest in manufacturing and metallurgy techniques. In order to optimize performance, we have analyzed our Excore, Hobic and Craelius product lines and brought together the 14 best and broadest-performing matrices. Working as a group, these universal products are proven performers. Bringing together well-known matrices from the Hobic and Craelius lines, with the latest technology from the Excore line, the G14 diamond tools group can handle any drilling application on the planet. As a result, contractors can simplify their ordering process and know they are getting the most productivity out of their core drilling matrices. “These are our best and most universal matrices,” says Artur Makos, product line manager of High Performance Diamond Tools at Atlas Copco. “By communicating with drillers we’ve learned what works in the field, and have created a group that will improve productivity and make life easier.” “With innovative new product-labeling systems, the level of knowledge that we can provide our users has also progressed. Each bit includes a colour-coded matrix selection chart sticker that can be placed nearby for quick reference. And every bit is labeled with a removable sticker outlining the optimum drilling parameters for that matrix, ensuring drillers are getting the most productiv36

Ontario Mineral Exploration Review

ity out of each bit. The labels also include a QR code that when scanned, will link to our website where users can learn even more,” Makos explains. To further complement the G14 Group of diamond-coring tools, drillers can take advantage of Atlas Copco’s full range of in-the-hole tooling for core drilling – in particular, their advance fully-automatic safety-locking overshot, new inner tube head assembly, lightweight casing advancers and high-quality deep-hole MO and CMO rods. “All our rods and casings are produced from the highest quality of carbon steel seamless tubes, which supply the outmost strength and superior yield,” Makos says. The variety of threads available include Atlas Copco’s T thread used primarily for straight deep-hole applications; Excore MO threads designed for superior productivity and reliability; and the Excore CMO thread that uses a weight-saving technology, thus enabling more depth. Key features that Atlas Copco products provide are increased levels in penetration rates, extended lifetimes, and superior performance under a wider range of work environments. The G14 group offers the industry sustainable productivity through simplified inventory, easy matrix selection and superior performance in a wide range of drilling conditions.

Terracore: Tailored for Sustainable Productivity Terracore, a similar product line tailored to supply and promote site investigation core drilling equipment, has also contributed to cost-efficiency and trusted on-site reliability. Site investigation is practiced as a safety precaution in order to make sure that the foundations will be strong enough to carry the construction load. The S Geobor core barrel system, developed and patented by Atlas Copco in the 1980s, is another unique system that operates as a combination of tools. The S Geobor is a wireline, triple-tube core barrel that offers the user an operating system that is both extremely sustainable and economically friendly. Regulated at a slower rotation for the use of heavy-duty machinery, this product is designed from a range of standardized matrices and can complete the most common application. The S Geobor wireline system offers different methods of sampling, each individually designed for specific uses and drilling environments. Our sample methods range over a wide scope of specifications; for harder formations, it is recommended to use an impregnated diamond bit, whereas polycrystalline diamond composite bits, tungsten carbide bits and standardized diamond-sur-

Photos this page show the G14 product line.

face-set bits would be ideal for softer ground. The ability of the S Geobor system to shift from one coring method to another has given this product the leading role within the Terracore site investigation tools. This feature is facilitated by changing the inner tube assembly while the outer tube assembly still remains in the hole, by having the potential to replace and adjust the inner tube without disturbing the hole configuration and thus avoiding costly hole collapse. Terracore offers a full range of conventional core barrel designs to fit a variety of applications and formations. For example, Terracore’s wireline core barrel would be preferred where double- or triple-tube installments are needed; whereas when grout-

ing holes, the use of single-tube core barrels would be ideal. Peter Hedenstedt, product manager at Terracore Drilling, states, “We look at the market, and the feedback from our customers. This feedback leads to innovation, including everything from improving our availability and pricing to user-friendliness and safety.” Over the last 140 years, Atlas Copco has remained a leading industry contributor in the international mining sector. After decades of bit testing, the company has been able to use that knowledge to generate an extensive global database on the subject. The parameters for these new drill bits have developed from the database and structured as a pro-

ficient source of information. This data has provided Atlas Copco with the knowledge to create products that provide sustainable productivity for our clients. Both the Excore and Terracore product lines have been able to respond to the demands of the industry with regard to product expectancy, application and technological advancement. And our continued support toward our fellow colleagues in the field is epitomized by our devotion to providing them with the fullest range of products. Because we listen to the industry and are always focused on innovation, we can provide our clients with sustainable productivity.

FABRITHANE INDUSTRIAL PRODUCTS INC. Over

50 years experience

in custom molding of polyurethane, rubber and fibreglass parts for mining, construction, forestry, woodlands, pulp & paper industries.

DENVER FLOTATION (DR-30)

Pump and Flotation Molding and relining of pump & flotation parts. Denver, Flyght, Galigher, Sala, SRL, Wemco, etc. Drilling Equipment Jumbo replacement parts such as centralizer bushings, dowels, slide rails, bumpers, buffers, stops, hose clamps, grommets, wear pads, wear shoes, washers, etc. Miscellaneous Larox filter replacement parts: Roller seals, roller scrapers, Larox pinch valve sleeves, plus sheave liners, sheave wheel liners, skip wheels, belt scrapers, rollers, seals, gaskets, bumpers, screens, chute liners, impact blocks, suspension pads, hose clamps, sprockets, pinch valve sleeves, Salt spinners, wear strips, Krebs cyclone replacement parts, Warman Vortex Finders, etc. Tooling department on site for mold design and fabrication of any parts you may require, plus custom fabrication, rubber lining etc.

FLYGHT PUMP REMOLDING (140H.P.)

Congratulations on the opening of the Totten mine

URETHANE FLATSTOCK (WEAR BARS)

GALIGHER 3.5" IMPELLER

Please do not hesitate in contacting us with any of your requirements for any parts or application not listed above. Jean-Guy Perreault. President

http://www.fabrithane.com

ALL TYPES OF WELDING. ALL TYPES OF METAL BIG OR SMALL, WE DO IT ALL

OUTOKUMPU FLOTATION (OK-16)

6, 10th Ave. North, P.O. Box 68, Earlton, Ont. P0J 1E0 Tel: (705) 563-2223 / 1-866-664-2223 Fax: (705) 563-8201 E-mail: fabrithane@ntl.sympatico.ca

City Welding (Sudbury) Limited 939 Elisabella Street Sudbury, ON P3A 5K1

www.cityweldingsudbury.ca (705) 566-3033 Spring 2014

Expanded Argo capabilities drive safety, efficiency and productivity New product enhancements and specialized add-ons help workers get more done with less equipment in 2014

Argo eight-by-eight HDi with ROPS is fully amphibious without vehicle preparation and can carry up to four passengers in water.

New Hamburg, Ont. – In response to market demand, Argo has extended its capabilities in the commercial sector with the introduction of the eight-by-eight XTD diesel-powered Argo, a load-tested universal mounting system (UMS), a utility box, an eight-wheel trailer, a heavy-duty track system and a variety of factory-approved tools for specific industries. “With these exceptional new products, Argo is poised to capitalize on renewed growth in the mining, oil and gas, utility, and forestry sectors,” says Bernhard Wagenknecht, VP sales and marketing, Argo. “We’ve designed Argos to work even harder and stay out longer.” 38

Ontario Mineral Exploration Review

Argo launches diesel-powered eight-by-eight XTD Created with the same engineering excellence that has made Argo world-renowned for quality and durability, an eight-by-eight XT model is now available with a Kohler Lombardini diesel. The XTD will now share the same fuel as other machines on the worksite, eliminating the need to haul in gasoline. Its three-cylinder, 24-HP, 1028-cc engine provides optimal power at higher RPMs, making it an ideal choice for the heaviest-duty cycle industrial applications. Similar to the gas-powered eight-byeight XTI model, the XTD features a towing capacity of 2,000 pounds and payload

capacity of 1,340 pounds. The direct drive triple-differential ADMIRAL transmission delivers torque to all eight tires for virtually unstoppable power on even the roughest terrains. The 25-inch tires with Argo’s unique tread provide optimum traction on land and propulsion in water. With a box-frame construction, fully sealed polyethylene body and oil-bath axles, the XT models have even longer maintenance intervals than previous Argo models. As service-stops cost time and money – especially in remote locations – Argo has simplified and extended the maintenance schedule of the XT models. All maintenance is now grouped into three categories based on hours of service. To further decrease maintenance requirements, Argo now offers an optional automatic Lincoln chain lubrication system that provides five seconds of chain lubricant for every 15 minutes of driving time. The body panels can be removed and the firewall detaches, offering technicians 360-degree access to the engine. Universal Mounting System Increases Utilization The new load-tested Argo Universal Mounting System (UMS) makes it quick, safe and affordable to adapt Argo’s extremeterrain vehicles to suit the needs of a wide variety of industries and jobs. With the addition of a generator, compressor or hydraulic power-pack, the UMS makes it simple to transform Argo vehicles into a power source, welder, sprayer or whatever equip-

Models Models

SINCE

19 6 7

1-877-274-6288 ARGOutv.com/XTmodels

EXTREME OFF-ROAD PERFORMANCE Vehicles shown with optional accessories. Welding equipment courtesy of Lincoln Electric.

Argo has partnered with Wilcox Bodies Ltd. to create a custom utility box. Constructed of aluminum checker plate, the utility box features stainless-steel T-locks, a fixed shelf and an optional slide-out drawer. The utility box fits on the Argo Centaur and XT models and provides heavy-duty and weather-proof protection. Additional custom add-ons include: • Hydraulic crane for the Centaur • Electric dump-box for the Centaur (1,300-pound capacity) • Insect abatement and weed spraying systems Argo continues to work closely with its distributors and customers to create a growing range of quick-change attachments and tools for use with the universal mounting system.

2014 Argo eight-by-eight Centaur with crane to support lifting and transportation of people and equipment in extreme-terrain conditions.

ment is required, as well as switch between attachments quickly. Such versatility means that working Argos can do more jobs, reducing the need to purchase task-specific equipment. The UMS multiplies Argo’s utilization, improving productivity and making it the cost-effective option. Renowned for its safety, Argo engineered the UMS to provide maximum stability. Argo boasts today’s best static stability factor in its category. In fact, research shows that a traditional UTV with the same equipment is up to four times more likely to roll over than an Argo. Utilizing the UMS, Argo vehicles and trailers can be equipped with products from Lincoln Electric and Chicago Pneumatic. With the addition of a Chicago Pneumatic hydraulic power-pack, a generator or compressor, Argos will work both as transportation and as a portable power supply. Operators can carry and power a wide variety of tools, including drills, pumps, jack hammers, augers and log grabs. The Chicago Pneumatic power pack is available in gasoline- and diesel-driven versions. Lincoln Electric provides a wide range of welders supporting pipeline construction and maintenance. 40

Ontario Mineral Exploration Review

More Standardized Argo Solutions Ideal for the forest industry, Argo’s 2014 Fire Chief drop-in package for the Argo eight-by-eight Centaur helps crews to suppress remote fires. Complete with its own 6.5-HP engine and 80-gallon water tank, the Fire Chief can bring needed resources to attack fires in dense brush or difficult to access forests. It includes a manual hose, a booster hose, a foam system and even a stretcher.

Argo Adds Towing Capacity, Traction For the first time, Argo is offering an eight-wheeled amphibious trailer created using the same body and chassis as the top-of-the-line HDi model. When attached to the Centaur, the payload capacity totals 3,400 pounds. The trailer is designed to be attached to all of Argo’s eight-by-eight models. Argo also offers a four-wheel trailer with a 600-pound load capacity. The UMS facilitates the mounting of welders, compressors, generators, tanks and other equipment in the trailer.

New Argo eight-by-eight XTD with new utility box pulling the new eight-wheel trailer with Lincoln Electric Welder will increase productivity at remote jobsites.

low behind and will not get bogged down in the roughest terrain, including muskeg and deep snow, and they leave a lighter footprint. About Argo Argo Extreme Terrain vehicles and custom add-ons are marketed through a growing network of stocking distributors and dealers worldwide. Argo North America has more than 200 dealers and continues to grow at a steady pace. Argo’s unique durability, safety and versatility are driven by the renowned engineering 2014 Argo eight-by-eight XTD with ROPS, roof and 18-inch HD rubber tracks for four passengers operating in deep snow.

Argo Keeps Users On-track Another new option for 2014 is Argo’s 18-inch heavy-duty rubber track system designed for heavy commercial use in bog, muskeg, mud or deep snow. Available in quad or tandem styles, this track system includes heavy-duty steel guides, enhanced sidewall tires with reinforced steel rims to prevent tire pops and bent rims. The profile

MINERAL & MINES SYMPOSIUM Come visit us at Booth #54.

of the 24-inch turf tire is more rectangular than a standard Argo tire to allow for maximum contact with the tracks and superior traction. The heavy-duty track system completes Argo’s commercial lineup of optional tracks, allowing operators to customize their Argos to suit the task and the terrain. Tracks are also available for the Argo eight-wheel trailer. With tracks, trailers fol-

capability of its parent company, Ontario Drive & Gear Ltd. (ODG). Since 1962, ODG has manufactured quality precision gears and transmissions. For more information about Argo or the new products for 2014, please contact: Paula Barros, marketing manager – Argo Amphibious UTV via phone 519-662-2840 ext. 471 (toll-free 1-877-274-6288), email: pbarros@ARGOutv.com, or visit www.ARGOutv.com.

INCREASE PRODUCTIVITY and SAFETY during REMOTE OPERATIONS Provix Remote Controlled PTZ Camera System

When Rio Tinto’s Diavik Diamond mine needed a video solution to support remote drilling and bolting operations, they looked to PROVIX for a solution. PROVIX setup two Pan/Tilt and Zoom cameras on either side of the bolter, to provide visual reference for both drilling and bolting operations. A smaller fixed camera was added to provide a constant reference frame for the equipment operator, who is positioned about 100 feet back from the face. The operator runs both the Tele-Remote controls and the PROVIX video system from the safety of a seacan, where three monitors provide an up close and personal display of the back, the booms, the screens and the positioning of the drill. User feedback indicates that drilling is up to 50% faster than running without cameras. Amazingly, the operator can see the work area better on the large LCD monitors than if he is actually in the cab of the bolter.

PROVIX Remote Video systems offer visual enhancement to any type of equipment or operation. Each system is designed based on the operational requirements of the mine. PROVIX video systems entrench safety during remote operations and allow for increased productivity, while remaining cost effective and easy to deploy. Contact PROVIX tech reps to discuss any video system requirement.

Bolters, Drills, & Jumbos • Faster bolting operation • Improve drilling accuracy • Safer, more productive operations

Operator uses both PTZ cameras displayed on three monitors for remote control bolting, drilling, and screening operations.

• sales@provix.net • www.provix.net Spring 2014

KES Equipment proud to serve Ontarioâ&#x20AC;&#x2122;s mining industry KES Equipment Inc. (located in Elliot Lake, Ontario, between Sault Ste Marie and Sudbury) started out as a mining equipment repair company. Slowly, the company began to expand into the design and manufacture of their own mining equipment, with a focus on utility vehicles (e.g., scissor-lifts, boom trucks). Each vehicle (up to 150 HP) has a front-end that is unique to KES Equipment Inc., built to handle any mining environment, and can be found in all KES Equipment models for easy end-user maintenance. Over the years, KES Equipment Inc. has entered the portable bridge market, specializing in pre-engineered beam bridges ideal for mining as well as logging applications. Our bridges have been designed for quick installation and to keep quality at its best and costs low. Currently we are working with the MNR to get KES bridges preapproved. We work on a per-client basis to provide mining equipment customized for each end-user. KES Equipment Inc. is always looking for

New KES Equipment lift design.

new ideas and is willing to take on custom manufacturing jobs given the opportunity. For more information, please call Kenn Schmitz at (705) 222-0300 or visit http://kes-equipment.com/contact.html. We look forward to working with you!

KES Equipment Inc. specializes in pre-engineered beam bridges ideal for mining applications.

Ontario Mineral Exploration Review

MineMaster

Mine Utility Vehicles R250S Tire Manipulator

At Tracks & Wheels Equipment we manufacture the full line of MineMaster® Mining Equipment. We have no pets like Cats, Mules, Cobras or Deere and we don’t redesign tractors. We specialize in the design and custom manufacturing of mine service, personnel, utility, underground EMS units and maintenance vehicles. We don’t just meet your expectations, we exceed them.

Serving the mining industry for over 34 years! The M845B Underground Grader

Forklifts ♦ Backhoes ♦ Loaders ♦ Shotcreters ♦ Service Vehicles Utility Vehicles ♦ Scissor Lifts ♦ Personnel Carriers ♦ Tool Carriers Underground Graders ♦ Cable Pushers ♦ Mine Maintenance Vehicles Visit our booth at the The Northern Mining & Exploration Expo May 28 & 29, 2014 Timmins, Ontario Booth #: Outdoor Booth RS-O3

Sales



Service



Parts



Rentals

TRACKS & WHEELS EQUIPMENT BROKERS INC. REGISTERED ISO 9001:2008

Sudbury 400 Hwy 69 N Sudbury, ON P3A 4S9 (705) 566-5438

1-800-465-5438

Timmins 2200 Riverside Dr. Timmins, ON P4R 0A1 (705) 268-5438

www.minemaster.ca

Sault Ste Marie 232 Drive-In Rd Sault Ste Marie, ON P6B 6A9 (705) 256-5438

North Bay 6 Sunshine Lane North Bay, ON P1B 8G3 (705) 840-5438

email: sales@trackandwheels.com

CANADIAN INVESTOR CONFERENCE TOP PERFORMING

RESOURCE TECHNOLOGY & DIVERSIFIED INVESTMENT OPPORTUNITIES

JUNE 1-2

Pre-registration is FREE or $20 at the door. Vancouver Convention Centre West - Vancouver, BC

Cambridge