PDAC Annual Report 2018

OUR FUTURE IS NOW 2018 ANNUAL REPORT

OUR FUTURE IS NOW 2018 ANNUAL REPORT The Prospectors & Developers Association of Canada (PDAC) is the leading voice of the mineral exploration and development community. With over 8,000 members around the world, PDAC’s mission is to promote a globally-responsible, vibrant and sustainable mineral sector that encourages best practices in technical, operational, environmental, safety and social performance. PDAC is known worldwide for the annual PDAC Convention—the premier international event for the industry—that has attracted over 25,000 people from 135 countries in recent years and will next be held March 3-6, 2019 in Toronto. Please visit www.pdac.ca

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President’s Message

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Year in Review

10 PDAC 2018 Convention 16 Strategic Plan 20 Awards 26 S-IMEW 2018 34 Membership Statistics

MESSAGE FROM THE PRESIDENT (METC) for five years. This was the first multi-year renewal of the METC since its inception in 2000—something PDAC has long championed— and a monumental sign of support from government for the growth of, and investment in, Canada’s mineral exploration sector.

OVERCOMING OBSTACLES, CREATING OPPORTUNITIES Does the pace of Canada’s mineral exploration and mining sector ever let up? It certainly doesn’t feel that way with 2018 being another fast-paced year for both industry and PDAC alike.

There are several milestones worth noting over the past year, including our membership reaching over 8,000. Yet our attention is still largely focused on regaining Canada’s title as the most attractive country in the world for mineral exploration and mining investment—a position that until recently was undoubtedly ours and had been for many years, even decades. And I’m pleased to share that we are making progress.

Canada’s mineral exploration and mining sector is a major contributor to the wealth of the nation. It injects more than $95 billion in gross domestic product (GDP) to the economy every year, employs more than 630,000 people (directly and indirectly), and accounts for almost 20% of all domestic exports. Our industry remains the largest private sector industrial employer of Indigenous peoples, providing over 16,500 direct jobs, while the overall health of our sector provides an important barometer for Canada’s prosperity.

This past year, PDAC scored a major win for our members when in the Fall Economic Statement Canada’s Minster of Finance announced the renewal of the Mineral Exploration Tax Credit

In 2018 we also continued to roll out and implement the PDAC’s five-year strategic plan that focuses on innovation, diversity and inclusion, along with telling the stories of our sector more effectively.

These goals build upon the priorities that will always remain at the core of our business to ensure our members can succeed: access to capital, access to land, and Aboriginal affairs.

As PDAC has learned over its 86-year history, our industry is a volatile one. However, over the past year we have seen some confidence return to our sector after several years of economic uncertainty, and investment in Canada has remained steady year-over-year.

This was reflected at the PDAC 2018 Convention where more than 25,000 attendees from 135 countries were present. This is our highest attendance since 2013, a great sign for the industry, which uses the convention as a temperature gauge for the overall health of the sector. Participation measures how hot or cold the investor climate might be in the year ahead.

It is also the best opportunity for junior miners and individual prospectors alike to showcase their latest projects and discoveries, and for students to find their first big break. Pleasingly, due to demands and two years’ worth of sold-out exhibitor space and long waiting lists, Trade Show North is expanding in 2019.

As the leading voice of the mineral exploration and mining industry, PDAC will continue to ride the highs and lows alongside its members, finding ways to turn obstacles into opportunities, and tackling the issues that matter on behalf of our members and the industry at large.

Glenn Mullan President PDAC

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PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

YEAR IN REVIEW 2018 A look back at some of the major news stories, developments and political decisions that shaped Canada’s mineral exploration and development sector in 2018.

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OUR FUTURE IS NOW 2018 ANNUAL REPORT

Government establishes Canadian Ombudsperson for Responsible Enterprise As 2018 begins, the Government of Canada announces the creation of the Canadian Ombudsperson for Responsible Enterprise (CORE), as well as the establishment of a multi-stakeholder Advisory Body, to advise government and CORE on responsible business conduct abroad. PDAC advises that to be effective the ombudsperson must be tasked with a mandate centred on collaborative dispute resolution that employs joint fact-finding to resolve conflicts between companies and communities. It must be designed in a way that both enables effective dispute resolution while maintaining the competiveness of responsible Canadian companies operating abroad.

PDAC Diversity & Inclusion Working Group

PDAC starts working on new guidance related to diversity, specifically gender issues that include recruitment and retention in the industry, as well as minimizing impacts of mining activities on women and girls in communities. To support this work, PDAC established a multi-stakeholder Diversity & Inclusion Working Group. The Working Group will:

1 Act as a leading knowledge hub for diversity and inclusion in the mineral exploration and mining sector.

2 Contribute to the development of the guidance document to help improve performance related to diversity and inclusion, beginning with a specific focus on gender issues.

New search tool in Ontario for health and safety The Workplace Safety and Insurance Board of Ontario launches a new search tool, Compass.

For the first time, Ontarians can find and compare health and safety statistics for businesses across the province. The tool aims to bring greater transparency to workplace safety in the province, giving people the ability to find health and safety statistics for any workplace, in addition to comparing statistics between businesses.

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PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

New legislative changes introduced Greenhouse Gas Pollution Pricing Act The Federal Government tables legislation related to the proposed federal carbon pricing system. This ‘federal backstop’ applies to all jurisdictions that have not developed their own approach to carbon pricing. The draft legislation states that companies that exceed the average energy use for production in their sector will be required to pay a carbon levy, while those that stay under the average energy use by 30% or more will get a credit for saving energy.

Provinces and territories had until September 1 to decide whether they will develop their own system or adopt the federal backstop.

NRCan’s CLEAN GROWTH PROGRAM Natural Resources Canada (NRCan) and Canada’s Office of Energy Research and Development (OERD) launch the Clean Growth Program (CGP). The CGP provides $155 million for clean technology research and development, and demonstration projects in Canada’s energy, mining and forestry sectors. The aim is to advance emerging clean technologies toward commercial readiness so that natural resource operations can reduce their impacts on air, land and water while enhancing competitiveness and creating jobs.

Federal Budget 2018 In its 2018 Budget released in February, the Federal Government commits to renewing the Mineral Exploration Tax Credit (METC) for one year.

PDAC provided several recommendations for the budget, including a three-year extension of the METC. This recommendation was also made by the House Standing Committee on Finance (FINA) in its report to the Minister of Finance. Investments in areas such as Indigenous skills training and employment, as well as advancements for women entrepreneurs, were also included in the budget.

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Bill C-68 • The Federal Government tabled Bill C-68, An Act to amend the Fisheries Act and other Acts in consequence (Bill C-68). The Bill includes provisions related to prohibitions, authorizations and designated projects, Indigenous peoples, among others.

• In a submission to the House of Commons Standing Committee on Fisheries and Oceans (FOPO), PDAC requested amendments to the legislation regarding transitional provisions, self-assessment, designated projects and habitat banks. PDAC also provided commentary on some key provisions proposed in the Bill.

• PDAC continued to advocate for amendments to the Bill, specifically the removal of Subsection 2(2), which defines water flow as fish habitat and changes to the provision related to Designated Projects. In addition, PDAC joined a coalition of industry associations to jointly work on these issues.

• Various aspects in Bill C-68 will be further elaborated on through regulations. To prepare for this process, government released a Consultation Paper on a proposed approach to a key regulation under the fish and fish habitat provisions of the Fisheries Act. PDAC made a formal submission.

Bill C-69 • The Federal Government also introduced Bill C-69—An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act, and to make consequential amendments to other Acts (Bill C-69)—to replace the Canadian Environmental Assessment Act, 2012 (CEAA 2012).

• PDAC made a written submission to the House of Commons Standing Committee on Environment and Sustainable Development (ENVI) regarding Bill C-69, requesting two amendments: 1) Projects currently being assessed under CEAA 2012, or those entering the process prior to IAA coming into force, be allowed to continue under CEAA 2012 unless requested otherwise; 2) Uranium mines and mills should undergo Agency assessments with full access to provisions for cooperation with provinces and Indigenous groups. PDAC also commented on some of the key provisions outlined in the Bill. PDAC’s advocacy efforts to amend the Bill’s transitional provisions were successful and proposed changes were adopted.

• PDAC appeared before ENVI to discuss the potential implications of the Impact Assessment Act for the mineral sector, and continues to work with government and partners to ensure review processes are clear, timely, consistent, inclusive and transparent, and support Canada’s mineral sector competitiveness.

• A number of aspects in Bill C-69 will be further elaborated on through regulations. To prepare for this process, government released two Consultation Papers on proposed regulatory approaches related to the Project List and time management and information requirements. PDAC made two formal submissions in response to the Consultation Papers.

OUR FUTURE IS NOW 2018 ANNUAL REPORT

Spotlight on responsible business practices abroad Canada’s Trade Commissioner Service (TCS) releases a new guide, Spotlight on Social Responsibility, in March to help Canadian companies operating abroad to better understand how they can contribute to positive social, environmental and economic outcomes in the markets where they operate.

CANADIAN MINERALS AND METALS PLAN (CMMP) Government officials start collecting input on the development of a Canadian Minerals and Metals Plan (CMMP). Established by federal, provincial and territorial Ministers responsible for mining, the CMMP aims to enhance Canada’s position as a global mining leader and to lay the foundation for long-term success of the sector.

Shaping the next generation of mining

Employers can now receive up to $7,000 to fund a new co-op, internship, or field placement for students, as part of the Government of Canada's $7.8 million in funding to the Mining Industry Human Resources Council’s (MiHR) Gearing Up: Developing Mining Talent Through Work-Integrated Learning project.

Government Revenue Resource Sharing

PDAC applauds the signing of government resource revenue sharing agreements in May between Ontario and Grand Council Treaty #3, Wabun Tribal Council and Mushkegowuk Council. PDAC has long advocated for governments to share a portion of revenues derived from natural resources extraction with Aboriginal communities through Government Resource Revenue Sharing (GRRS) mechanisms.

STATE OF MINERAL FINANCE 2018 PDAC releases its report, State of Mineral Finance 2018: Gaining Momentum, in June detailing the rise of financing across the industry throughout the past two years. The report underscores a growing rise in overall global base metal prices, and the ongoing stabilizing of major commodities (gold, silver, copper).

The forecast is that base metals will rise steadily in the short-term (less than a year) and that major commodities will sharply increase and then stabilize.

State of Mineral Finance 2018: Gaining Momentum

Mineral industry partnerships with Indigenous communities New toolkit on gender and extractives PDAC appears before the Standing Committee on Indigenous and Northern Affairs (INAN) in April to share information about the many positive, mutually-beneficial partnerships between the mineral industry and Indigenous communities in Canada, as well as our industry’s leadership in Indigenous engagement. A strong and globally competitive Canadian exploration and mining sector will be well-positioned to deliver local, regional and national benefits—the cornerstone to this is partnerships with Indigenous communities.

The International Finance Corporation (IFC) of the World Bank Group launches a new toolkit on gender and the extractives, Unlocking Opportunities for Women and Business. The toolkit was developed to help extractive sector companies create more diverse, gender-balanced and inclusive environments and focusses on four areas:

1 Increasing gender diversity from the workforce to the boardroom 2 Women-owned businesses and the supply chain 3 Women and community engagement 4 Addressing gender-based violence in the workforce 5

PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

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OUR FUTURE IS NOW 2018 ANNUAL REPORT

DECLINING CONFIDENCE IN EXPLORATION PERMIT SYSTEM

Industry leaders call for action in addressing Canada’s competitiveness to Energy and Mines Ministers In August, the Canadian Mineral Industry Federation (CMIF), of which PDAC is a co-chair, submitted a brief at the EMMC conference in Iqaluit with details on seven policy areas where collaboration and action by federal, provincial and territorial governments are critical for boosting Canada’s ability to attract new mineral investment.

1. Regulatory Challenges Governments must ensure that Canada’s regulatory regimes are effective, efficient, predictable and balanced in order to reduce uncertainty, delays and costs that undermine Canada’s investment climate.

2. Enhancing Indigenous Participation and Reconciliation The mineral industry is the largest private sector employer of Indigenous peoples in Canada on a proportional basis and government investments to improve the socio-economic conditions in Indigenous communities can further enhance the meaningful participation of Indigenous peoples in the industry.

3. Accessing Prospective Lands Canadian governments should undertake comprehensive mineral resource assessments, based on geoscientific studies, in order to understand and incorporate the value of mineral potential into regional assessments and land management decisions.

4. Adopt Effective Climate Change Policies Climate change policies must be revenue neutral, ensure the competitiveness of emissions-intensive and trade-exposed (EITE) sectors, and be sensitive to changing economic and geographical realities such as those in Canada’s northern and remote regions.

5. Investments in Innovation and Geoscience Government investments in geoscience and innovation will spur mineral exploration and mining activity, and are critical to enhancing the industry’s efficiency, productivity and environmental performance.

6. Remote and Northern Exploration and Mining The future of Canada’s mineral industry lies increasingly in remote and northern regions and various challenges related to the high costs of operating in these regions must be addressed to support mineral investment and project advancement, and enhance economic development opportunities for northern and Indigenous communities.

According to a Fraser Institute survey of executives, investors are losing confidence in permitting processes in certain parts of the country due to applications taking longer to approve and a lack of transparency. Based on the report, Permit Times for Mining Exploration in 2017, 83% of respondents in Ontario said permit times had lengthened over the past decade compared to 73% in British Columbia and 50% in Quebec.

Government to ease carbon tax amid fears over competitiveness With concerns mounting that businesses and industries will struggle to compete under the federal carbon tax plan, the Liberal Government indicates in August that they will ease the new rules set to come into effect next year. Environment and Climate Change Canada is developing new guidelines for the amount of emissions businesses can produce before they are required to pay. Under the old guidelines proposed in January 2018, industries in Canada in provinces and territories that do not have their own carbon pricing plans would have to start paying once they exceeded the 70% benchmark for average emissions. Yet under the expected new rules, the benchmark was raised to 80% for most industrial sectors.

Advocacy success in the Yukon Led by the Yukon Chamber of Mines and the Yukon First Nations Chamber of Commerce, PDAC participated in a joint advocacy effort relating to government’s proposal to amend the Quartz Mining Act (QMA). In August, PDAC was a co-signatory to a letter and undertook advocacy to outline concerns with the proposal and the process. The advocacy effort was a success and the Yukon government notified parties that it will not be proceeding with the amendments.

7. Stimulating Investment Through Strong Fiscal Policy Various incentives, competitive taxation levels, and efficient and reliable securities regulations are critical for positively influencing investment in Canada’s mineral sector.

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PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

FEDERAL BUDGET 2019 PDAC provides recommendations for Federal Budget 2019 in September to enhance Canada’s mineral industry competitiveness. As an industry that operates across the country, and is the largest industrial private sector employer of Indigenous peoples, the minerals sector is uniquely positioned to offer economic opportunities to all Canadians.

Recommendation 1 Renew the Mineral Exploration Tax Credit (METC) for a minimum period of three years to catalyze investor interest in flow-through shares and support access to exploration financing for proponents.

Recommendation 2 Support the mineral industry’s competitiveness in northern and remote regions by: • Addressing the infrastructure deficit through increased, strategic investments in transportation and energy infrastructure.

• Ensuring that any new carbon price regime addresses the unique challenges faced by remote and northern regions, and includes a fiscal support mechanism for mineral exploration projects that must rely on diesel and other fossil fuels (e.g. rebates, a funding pool, tax credit).

Recommendation 3 Enhance the participation of Indigenous peoples in the minerals industry through: • Foundational social investments (housing, water, infrastructure) that contribute to improved health and educational outcomes for Indigenous communities.

• Targeted funds for skills training and entrepreneurship.

Recommendation 4 Create a funding mechanism for provinces and territories to support the undertaking of comprehensive mineral resource assessments, based on geoscientific studies, in order to understand and incorporate the value of mineral potential into regional assessments and land management decisions.

Recommendation 5 Support geoscience mapping and innovation in the mineral sector by providing: • Increased funding to the Geological Survey of Canada.

• Fiscal incentives/funding for mineral companies to encourage the testing and adoption of innovative technologies and processes (e.g. innovation funding mechanism, tax credits, etc.).

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Concern over proposed changes by Finance Canada Finance Canada publishes proposed amendments to paragraph 186 of the Excise Tax Act (ETA), which will limit the ability of exploration and development companies that operate through subsidiaries to claim tax credit for GST/HST spent in Canada. PDAC submitted a response to express the concerns of the mineral industry regarding the potential for an increase in capital and operating costs.

PDAC also voiced its concern over proposed changes to holding corporation GST/HST rules. Finance Canada’s current proposal indicates higher ownership thresholds for subsidiaries (90% versus the current 50%) will be required in order to enable holding corporations to claim tax refunds for GST/HST paid in Canada for subsidiary-related expenses. This change, if enacted, will adversely impact cost structures within the mineral sector.

Supreme Court opens door to cooperative securities regulator

The Supreme Court ruled that the Constitution allows federal, provincial and territorial governments to work together to regulate securities trading under a single, unified system. The ruling cleared a major setback for the establishment of the Capital Markets Regulatory Authority (CMRA), which PDAC has supported from its original conception, as a way to improve capital market efficiencies across Canada.

METC renewed for 5 years!

PDAC celebrates government’s announcement in late November in the 2018 Fall Economic Statement that the Mineral Exploration Tax Credit (METC) will be renewed for five years. This is the first multi-year renewal of the METC since its inception in 2000—something PDAC has long championed and advocated for. PDAC applauds the Government of Canada for taking steps to enhance the competitiveness of Canada’s mineral sector and thanks our members and stakeholders for helping us achieve this victory. “This commitment by the government is a monumental sign of support for the growth of, and investment in, Canada’s mineral exploration sector,” says Glenn Mullan, PDAC President. “The METC is a critical component of our industry that helps to catalyze investment in mineral exploration projects that lead to the discoveries that could become the mines of the future.”

OUR FUTURE IS NOW 2018 ANNUAL REPORT

PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

PDAC 2018 Convention: Regaining swagger, building momentum

SAVE THE DATE PDAC 2019 MARCH 3-6 10

Photos: envisiondigitalphoto.com ???

For the first time in four years, the PDAC Convention exceeded 25,000 attendees—a clear sign that the mineral exploration and mining industry has regained its swagger and is building momentum. The PDAC 2018 Convention—the world’s premier mineral exploration and mining event—attracted investors, analysts, mining executives, prospectors, geologists, government officials and students from a record 135 countries.

“The 86th edition of the PDAC Convention was full of energy and excitement for the year ahead,” says PDAC President Glenn Mullan, referring to sold out exhibitor space, panel discussions, courses, workshops, and networking events such as the prestigious Awards Gala. “After experiencing several years of economic challenges, today the mineral exploration and mining industry is enjoying a renaissance and renewed sense of confidence.”

PDAC 2018 HIGHLIGHTS

PROGRAMS

• PDAC, in partnership with the World Economic Forum, hosted the International Mines Ministers’ Summit (IMMS) for the third year, bringing together 26 Ministers responsible for mining from around the world—the largest turnout to date. This year’s summit focused on the various ways in which trust can be fostered to enhance and expand the contributions that the sector has on the prosperity and development of nations.

A highlight of the PDAC Convention was the Aboriginal Program that once again brought the mineral sector together with Aboriginal communities and companies to exchange ideas, share information and network, while also serving as an important platform for fostering cooperative, respectful and mutually-beneficial relationships between Aboriginal communities and industry. The 2018 Aboriginal Program consisted of four sessions:

• PDAC hosted nearly 30 Canadian federal, provincial and territorial government officials over the four-day convention—a reflection of the association’s significant leadership role in Canada.

1 The mineral industry and Indigenous communities: Canadian and international experiences 2 The Aboriginal Forum • UNDRIP implementation: Opportunities and implications in Canada • Economic development and the environment: Finding the balance 3 Indigenous law and regulatory frameworks: The evolving landscape 4 Building partnerships: Indigenous communities and the mineral industry

• An outstanding Technical Program featured Tito Martins (Nexa Resources S.A.) who led the Commodities and market outlook session; Daniel Malchuk (Minerals Americas, BHP), Sean Roosen (Osisko Gold Royalties) and Anna Tudela (Goldcorp Inc.) spoke during the Keynote session: Industry Review—Lessons for the future.

• Over 1,000 exhibitors participated in the Trade Show, Trade Show North, Investors Exchange, Mining Marketplace, Core Shack and Prospectors Tent.

• The sold out Mineral Outlook Luncheon featuring A. Gary Shilling—best-selling author, economic consultant, and investment adviser—discussed Opportunities for the mining and metals industry in an excess supply world.

• Many Short Courses were sold out! Twelve courses were offered on a range of topics, including environmental geological models of mineral deposits (Society of Economic Geologists), mineral resource estimation (Roscoe Postle Associates Inc.), and Precambrian gold deposits (Mineral Exploration Research Centre, Laurentian University). Other course themes included minimizing environmental impacts, mining financial modelling, geochemistry, geophysics, health and safety, avoiding the legal pitfalls of working in South America, peer review and technical audits, NI 43-101, and the application of artificial intelligence and machine learning (Decennial Mineral Exploration Conferences).

• Attendees enjoyed continuous networking opportunities—700 people celebrated at the sold out Awards Gala & After Party where leaders in seven categories were honoured in recognition of their outstanding contributions to the minerals and mining industry, and the Grand Finale brought attendees together to celebrate the success of PDAC 2018.

For the ninth consecutive year the CSR Event Series featured presentations and panel discussions highlighting key aspects of sustainable development, social and environmental performance. Over 600 attendees took part at PDAC 2018 with sessions focusing on such topics as: enhancements to regional development; collaboration on climate change; integrating gender diversity in the mining system; and innovations for effective site level grievance and feedback management.

With increasing market complexity surfacing across the mineral industry, the Capital Markets Program provided attendees with discussions and expert analysis on the latest market-related developments shaping the mineral sector.

Sessions focused on an array of topics, including: three sessions on exploration and mining financing; resource valuation, innovation and its value on shareholders; and a Munk-style debate on the pros and cons of gold vs. bitcoin that was streamed in real-time on PDAC’s Facebook page and viewed over 174,000 times.

Nearly 1,350 students attended PDAC 2018 and took part in the Student Program, which continues to offer young professionals an opportunity to connect with industry leaders and peers from all over the world. The Student-Industry Forum explored how innovation is being applied to improve several key sectors, while the Student geologist’s guide to exploration & mining course taught students how they can prepare to enter the industry. Students also had access to an array of networking sessions and events, including the Student-Industry Networking Luncheon, Survival Skills workshop, and the new Flash Mentoring event that provided students with an opportunity to sit down in person and discuss their career objectives with leading industry professionals. c

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PDAC 2018 CONVENTION STATISTICS PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

TRADE SHOW & TRADE SHOW NORTH

869

Booths

481 68

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Exhibitors Governments

OUR FUTURE IS NOW 2018 ANNUAL REPORT

25,606

Convention Attendees

Outside of Canada the largest number of attendees came from: USA, Australia, United Kingdom, Peru, Mexico, Brazil, Chile, Argentina, South Africa, Germany, China, Finland 28.9% 135 1,348 525

International Attendees Countries Represented Students Self-IdentiďŹ ed Aboriginal Attendees

CORE SHACK

40

Exhibitors

SPONSORS

48

Companies

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PRESENTATIONS & WORKSHOPS

PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

19 12 37 119 556

INVESTORS EXCHANGE

518

Booths

486 13

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Exhibitors Prospector Tents

Technical Sessions Short Courses Presentation Rooms & Reception Rooms Corporate Presentation Forum for Investors Presentations Speakers

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3,495 INVESTORS

MEDIA & MEDIA PARTNERS

340 300 30+ million 25,000+ 20,000+ 174,000+

Articles covering PDAC 2018 Reach of articles mentioning PDAC Tweets related to convention Tweets used #PDAC2018 Gold vs Bitcoin live debate viewed on Facebook

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PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

PDAC’S VISION FOR THE CURRENT— AND FUTURE— SUCCESS OF CANADA’S MINERAL EXPLORATION AND DEVELOPMENT COMMUNITY

To ensure that our sector remains a global leader, PDAC has developed a comprehensive strategic plan to guide the work of the association over the next five years. Our goal is to better serve our members, enhance our sector’s competitiveness at home and on the international stage, and continue to showcase the important role we play in Canada’s prosperity.

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OUR FUTURE IS NOW 2018 ANNUAL REPORT

W

hen our association was established in 1932, it was born from a need to overcome an imposing threat that jeopardized the very existence of its founding members.

It was early on in the Great Depression, and times were tough. A new proposed Engineers Bill put forth by the Ontario government was being considered that would require prospectors filing a work assessment to have the report signed by a mining engineer. Walter Segsworth, a mining engineer, called a meeting at the King Edward Hotel in Toronto to develop a strategy to oppose the Bill. They raised $168.45, created a campaign, went on to lobby government, and eventually defeated the Bill.

As PDAC celebrated its 85th anniversary this past year, it did so with the same steadfast, pioneering spirit that has guided the association over the years, and that presently faces an array of vastly different challenges and opportunities that impact the work of our now 8,000 members across Canada and around the world.

Today, PDAC is the leading voice of Canada’s mineral exploration and development community—represented by a Board of Directors (“Board”), a staff of 25 employees, and 16 committees comprised of some 200 industry leaders and experts that together undertake a wide range of work in the areas of: Aboriginal affairs, access to capital, land access, corporate social responsibility, finance and taxation, geosciences, innovation, health and safety, human resources, education, securities and public affairs. Anchoring and supporting our work is our annual convention—the world’s premier mineral exploration and mining event—that attracts upwards of 30,000 attendees from 135 countries.

Much like in 1932, the objective of PDAC clearly remains to enhance and promote the interests of the mineral exploration and development community, while providing our members with the tools and resources needed to succeed in the field every day.

With over 630,000 Canadians working in the sector (both indirectly and directly) who combine to contribute $95 billion a year in GDP, creating a modern strategic plan that encompasses the essential trends, developments and economic fluctuations shaping the sector was, to put it mildly, a significant undertaking.

To accomplish this complex process and fully understand the key factors affecting our industry, the Board of Directors went to the greatest resource we have at our disposal—our members.

A comprehensive survey was sent out to all PDAC member individuals and companies in summer 2017 to collect their insights on a range of topics. The survey information was then processed, along with input from PDAC’s Board of Director’s and partner organizations across the country. Once tabulated, the Board convened for two days in Toronto to review the results and align the findings with the current priorities of the association.

One key component of the process was to analyze the advancements made on the priorities of PDAC’s previous strategic plan that was formulated in 2012 and focussed on three distinct areas: Aboriginal affairs, access to capital, and access to land. In addition, the Board identified three areas of opportunity the association should expand upon in the development of a new strategic plan: diversity and inclusion, innovation, and how we can better tell our story.

Guided by an external facilitator during the two-day workshop, the Board methodically distilled and discussed the data it had collected, openly debated the long-term objectives of the association and the resources and limitations available to support every idea, and gradually narrowed in on a list of targeted areas that are at the core of why we exist as an entity and what we need to accomplish at this moment in our history.

After further deliberation and discussion throughout the remainder of 2018, the plan was refined and gradually brought to life. The overarching themes that encompass the breadth of the plan were divided into four distinct pillars—competitiveness, influence, engagement and leadership—that will be at the forefront of the association’s work over the next five years and are supported by a subset of goals that we aim to monitor, achieve and measure.

Our strategic plan is ambitious. Yet similar to 1932 when our association was founded and faced an imposing obstacle, it strives to ensure that our industry and our members don’t just survive in the immediate years ahead but thrive throughout the 21st century and beyond.

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PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

TO ACHIEVE OUR STRATEGIC VISION, PDAC WILL FOCUS ITS ADVOCACY AND PROGRAM WORK AROUND THESE FOUR KEY PILLARS. COMPETITIVENESS

INFLUENCE

The mineral exploration and development industry has the access to land, capital, skills and resources needed to maintain competitiveness.

The mineral sector is recognized and valued as an essential industry that positively contributes to the economy in Canada and globally.

Canada is the top jurisdiction for mineral exploration and development activities • The industry has access to lands with high mineral potential and the costs, risks and delays associated with mineral exploration are reduced.

• The regulatory regime in Canada is effective, efficient, predictable, transparent, and provides certainty.

• Land use decisions are balanced and are informed by comprehensive mineral resource assessments of lands.

• Infrastructure in northern and remote regions in Canada enhances responsible mineral development.

• The type, quantity, quality and accessibility of public geoscience information available to mineral explorers are improved and help increase the rate of discoveries in Canada.

• The Canadian mineral exploration and development industry is at the forefront of innovation, which enhances efficiency, effectiveness and performance.

• Canada’s regulatory and policy frameworks support the competitiveness of the mineral industry.

Canada is the top jurisdiction for mineral financing • Canada’s fiscal regime is practical and supports investment in the mineral industry.

• Fiscal incentives are available that help flow capital to mineral exploration.

• Regulatory reforms reduce the costs of capital-raising in Canada.

The mineral industry has access to an inclusive, diverse, skilled workforce • All aspects of the mineral industry are inclusive and supportive of diversity.

• Industry leadership and workforce is diverse and inclusive.

• PDAC’s strategic partnerships work to address the industry’s future human resource requirements.

• PDAC student and education programs are leveraged to educate and encourage youth about the opportunities to pursue careers in the industry.

• PDAC programs and strategic partnerships ensure students receive adequate training and education.

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The mineral industry is recognized as a valued industry by stakeholders • Balanced information about the industry and industry’s stories are communicated across various channels.

• The mineral industry is recognized as essential to modern life.

• The mineral industry is known as a critical component of the economy and for the economic opportunities it provides to regional and local communities.

• The mineral development sequence, particularly exploration and development, is well understood.

• The unique risks and opportunities facing mineral exploration are effectively communicated.

• PDAC communicates information about the mineral exploration industry to governments, communities and the public to help increase awareness and understanding of the sector.

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ENGAGEMENT PDAC is the respected voice of the mineral exploration and development community.

PDAC is the respected voice of mineral exploration • PDAC is known for fostering information-sharing, dialogue and collaboration across the industry and with partners and stakeholder groups.

• PDAC has effective engagement with government officials.

• PDAC is recognized by all levels of government across Canada as a trusted source of information about the mineral industry.

• PDAC is known for producing sound, credible policy positions in support of its membership and the industry.

• PDAC produces quality information, tools and publications.

• PDAC cultivates partnerships with provincial, territorial and other associations to collaborate on industry-wide issues.

• PDAC develops relationships and collaborates with Indigenous groups, stakeholders and civil society.

PDAC fosters a global mineral industry community • The PDAC brand is recognized and respected in Canada and globally.

• The PDAC Convention continues to be the foremost international event for the mineral industry.

• The value that PDAC provides to members year round is synonymous with Convention.

• PDAC has an engaged, sustainable membership base.

• Beyond the convention PDAC provides continuing professional education, training and networking opportunities in numerous forums directed at advancing member and industry interests.

• PDAC demonstrates a clear value proposition to its membership.

PDAC is an effective, high-performing association • PDAC is adequately resourced with sustainable sources of revenue.

• PDAC effectively harnesses the knowledge and experience of its volunteers and members.

• PDAC is a flexible and adaptive organization.

• PDAC has a sound, robust governance structure that optimizes organizational effectiveness.

• PDAC fosters a collaborative, positive environment with opportunities for continuous learning and professional growth.

• PDAC will work to employ industry leading practices to ensure diversity and inclusion.

LEADERSHIP The mineral exploration and development industry employs environmentally and socially responsible and safe practices in Canada and around the world.

Mutually-beneficial partnerships between the mineral industry and Aboriginal communities drive success • Strong, mutually-beneficial relationships between companies and Aboriginal communities are enhanced.

• Participation by Aboriginal Peoples in the mineral industry increases.

• Mineral industry is recognized as a leader in Aboriginal engagement.

• Collaboration with Aboriginal groups on issues of mutual interest and importance is enhanced.

The mineral exploration and development sector is a global leader in environmental, social and health & safety practices • The mineral industry continues to enhance its environmental and social performance in Canada and abroad.

• The mineral industry is recognized as a safety conscious industry.

• Improvements in health & safety practices are advanced towards the goal of zero harm.

• PDAC tools and guidance contribute to improved industry performance, including e3 Plus: A Framework for Responsible Exploration.

• Collaboration with communities on issues of mutual interest and importance is enhanced.

• Exploration industry reports on its performance.

• Mineral industry performance and responsible practices contribute to enhanced respect for and trust in the mineral industry. c

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PDAC

AWARDS The PDAC is pleased to announce its 2018 award recipients in seven categories for their outstanding contributions to the mineral exploration and mining industry.

Recipients will receive their awards and be celebrated at the Awards Gala & After Party during the PDAC 2018 Convention on March 6 at the Fairmont Royal York in Toronto.

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BILL DENNIS AWARD This award, named for a former president of the association, honours an individual or team of explorationists who have accomplished one or both of the following: made a significant mineral discovery; made an important contribution to the prospecting and/or exploration industry.

NexGen Energy Ltd. For the discovery of the Arrow uranium deposit in the Athabasca Basin of Saskatchewan, Canada NexGen Energy discovered the Arrow uranium deposit in 2014, less than a year after listing on the TSX-V. Subsequent drilling established Arrow as the largest undeveloped uranium deposit in the Athabasca Basin, one of the most prolific uranium camps. Based on a maiden Preliminary Economic Assessment (PEA) released in 2017, Arrow has the potential to be the world’s largest uranium mine.

Arrow was a blind discovery resulting from innovative, methodical exploration by NexGen Energy on their Rook I property. Utilizing this elite exploration approach, subsequent high-grade uranium discoveries were made on the property from 2015 to 2017, which include Bow, Harpoon, and South Arrow. The team employed leadingedge geophysical and geochemical surveys, and integrated results with reams of historical data to determine drill targets. After the initial discovery, NexGen began aggressively stepping out from known mineralization and hit some of the best intersections in the history of uranium exploration on the basis of core length and grade. With a better handle on the structural controls on mineralization, the team used directional drilling to optimally delineate the near-vertical Arrow deposit, tripling its size potential.

The delineation of the Arrow deposit has been rapid. Rather than rely solely on external consultants, NexGen formed an in-house resource modelling division to build its mineral resource models. In 2016 the company released its first resource estimate, followed by an update in 2017 that calculated indicated resources of 1.18 million tonnes grading 6.88% U3O8 (or 179.5 million pounds U3O8) and inferred resources of 4.25 million tonnes grading 1.3% U3O8 (or 122.1 million pounds U3O8).

The next milestone was the release of a PEA determining that, after tax, Arrow has a net present value of C$3.9 billion and an extraordinary internal rate of return of 56.7% based on a uranium price of US$50 per pound. The average operating cost estimate is relatively low at US$6.70 per pound of U3O8 over the life of the mine and the payback period is 1.1 years. The province of Saskatchewan stands to benefit significantly from the development of Arrow, reaping an estimated C$2.98 billion in royalties over the life of the mine.

During 2018 NexGen plans to update the resource model, and release a prefeasibility study through advanced geotechnical, metallurgical, engineering, and environmental baseline studies.

Arrow remains open in most directions and at depth, and NexGen is aggressively stepping out with drilling, suggesting this already huge deposit will continue to grow.

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DISTINGUISHED SERVICE AWARD This award recognizes an individual who has achieved one or more of the following: made a substantial contribution to mineral exploration and mining development over a number of years; given considerable time and effort to PDAC; made outstanding contributions to the mineral industry in the field of finance, geology, geophysics, geochemistry research, or a related activity.

SKOOKUM JIM AWARD Recipients of this award have demonstrated exceptional achievement and/or service in a Canadian Aboriginal-run service business for the Canadian mining industry or a Canadian Aboriginal exploration or mining company, or have made a significant individual contribution to the mineral industry.

Lana Eagle For her contribution to Canada’s mining industry by working diligently to bridge the divide between Indigenous communities and both junior and major companies

Ted Reeve

Lana Eagle is a member of the Whitecap Dakota Nation

For his invaluable volunteer contributions to PDAC as a Convention Planning Committee member for 16 years, and session chair

in Saskatchewan who has devoted her career to building relationships between the mining industry and Indigenous communities. She is the driving force behind the Association for Mineral Exploration’s (AME) Gathering Place, where industry and Indigenous representatives meet to forge common ground, and donates her time to several other industry organizations.

Lana developed a profound understanding of the complexities and challenges facing both mining companies and Indigenous people when, as chair of Electra Gold, she negotiated with and gained support from First Nations communities to secure a coal licence on Vancouver Island.

She went on to become an independent consultant, using her gift for constructive dialogue to bring companies and communities together to discuss challenges, share success stories, and develop joint opportunities.

Lana’s volunteer work is multi-faceted. She serves as chair of AME’s Aboriginal committee, and in 2017 became the first Indigenous woman to be elected to its board.

She is a program advisor to British Columbia’s Institute of Technology, serves on CIM’s diversity and inclusion advisory committee, and is vice-president of CIM’s Western district.

Lana has participated in several panels on the topic of Indigenous engagement and reconciliation and has advised government agencies at both the federal and provincial levels. She is in high demand as a speaker and lecturer and as a mentor to Indigenous youth either participating or interested in the mineral sector.

Along with Cornell University’s John Thompson, Lana is co-chairing the Resources for Future Generations 2018 conference dedicated to addressing the long-term availability of resources. Her energy and enthusiasm for the sector and deep well of knowledge about Aboriginal issues are encouraging Indigenous people from Canada and around the world to participate in the inaugural conference in Vancouver.

Ted Reeve received a PhD in geology from

the University of Toronto (U of T) in 1972. He worked as a geologist in the United States, Chile, Australia and other parts of the world before returning to U of T and completing an MBA in 1979. In his new career as a mining analyst in Toronto, he became known internationally for his authoritative reviews of hedging trends in the gold mining industry.

In 2002 Ted founded Haliburton Mineral Services to become an independent researcher and consultant. He served on the Board of Directors of junior mining companies involved in exploration and development worldwide, and began devoting much of his free time to help PDAC draw high quality speakers and exhibitors to its annual convention.

Ted has worked tirelessly to help make the PDAC Convention the most well-attended industry event in the world. From 2002 to 2005 he chaired several sessions, including the keynote session in 2004. Later, he organized or suggested topics for several convention events. He was on the selection committee for the corporate presentation forum from 2006 to 2012 and more recently helped select the convention’s short courses.

Ted’s considerable volunteer contributions over 16 years have helped make the PDAC Convention a calendar highlight for the world’s mineral exploration and mining industry.

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ENVIRONMENTAL & SOCIAL RESPONSIBILITY AWARD This award honours an individual or organization demonstrating outstanding initiative, leadership and accomplishment in protecting and preserving the natural environment and/or in establishing good community relations during an exploration program or operation of a mine.

Golden Star Resources For exceptional community relations, commitment to sustainable development, and support for employees and local businesses at its two producing gold mines in Ghana Golden Star has reached beyond expectations of corporate environmental and social initiatives at its operations on the Ashanti gold belt in Ghana. From protecting and preserving the environment, to encouraging local businesses to supply goods and services to its gold mines, Golden Star is recognized as a global leader in corporate responsibility.

The Toronto-based company is committed to minimizing its environmental footprint at the Wassa and Prestea mines, especially in the areas of water management and rehabilitation. A rigorous monitoring program ensures that indicators such as water and air quality, land disturbance and electricity consumption fall within acceptable limits. Since operations commenced in 1999, the company has installed more than 200 clean water supply systems to serve local communities, doubling the proportion of households with access to clean, pipe-borne water to at least 30 per cent.

Golden Star is already thinking ahead to long-term land use. The company has integrated two of its open pits into the local hydrology so they act like natural lakes that fill and drain after rainfall. The lakes are stocked with fish the community can raise and harvest long after mine closure. Similarly, smallholder farmers will be able to manage and harvest palm oil from plantations established on decommissioned tailings facilities for generations to come.

Golden Star has established and maintained positive relationships with the communities near its mines. The Golden Star Development Foundation launched in 2006 donates US$1 for every ounce of gold produced and 0.1% of pre-tax profits to fund development projects selected by the community including schools, health clinics, community centres and scholarships. In 2016 Golden Star placed second in the Ghanaian mining awards for responsible corporate investments, including support for LOCOMS, an umbrella organization for companies near the Prestea mine that provide mining supply and support services. Its 2,500-strong workforce is 99% Ghanaian and women are represented strongly on both its board of directors and management team.

Golden Star’s initiatives to improve local health and safety are unparalleled. The company’s breast cancer awareness program, now in its fourth year, has screened more than 10,000 women and girls in the country. In partnership with a German development agency, Golden Star has implemented a plan combining curative and preventative approaches to health care that has improved employee productivity and overall well-being.

Already aligned with the United Nations’ (UN) Ten Principles on human rights, labour, the environment and anti-corruption, Golden Star is taking the commitment a step further by incorporating the UN’s 2030 Agenda (consisting of 17 goals to end poverty, fight inequality and tackle climate change) into its corporate responsibility program.

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2018 MARY-CLAIRE WARD GEOSCIENCE AWARD This year’s recipient of the Mary-Claire Ward Geoscience Award is Eric Thiessen of Simon Fraser University.

Eric Thiessen

VIOLA R. MACMILLAN AWARD This award, named in honour of PDAC’s longest serving president, is given to an individual or organization demonstrating leadership in management and financing for the exploration and development of mineral resources.

IAMGOLD Corporation and Sumitomo Metal Mining Co., Ltd. For demonstrating leadership in the financing and management of one of Canada’s largest undeveloped gold projects In June 2017 Sumitomo Metal Mining purchased a 30% interest in the Côté Gold project in northeastern Ontario from IAMGOLD for US$195 million. The investment and subsequent 70-30 joint venture agreement was a breakthrough, allowing IAMGOLD to proceed toward development of a major gold project in a challenging financing environment. Côté Gold would be the first new major open pit gold mine developed in northern Ontario in over five years and is expected to produce an average of 320,000 ounces of gold per year over a 17-year life span when it enters production in 2021.

The initial development proposal for Côté Gold came at a time when gold prices were declining. By envisioning a smaller project and reconfiguring the proposed surface facilities, IAMGOLD was able to halve the capital cost to just over US$1 billion and produce a much more compelling preliminary economic assessment (PEA). The company also secured environmental approval from both provincial and federal ministries. Combined with a strengthening gold price environment, these achievements paved the way for joint venture discussions between IAMGOLD and Sumitomo.

A subsequent preliminary feasibility study (PFS) sealed the strategic partnership by confirming Côté Gold’s potential. With proven and probable reserves of 5.9 million ounces, the project has an after-tax net asset value of US$703 million, an internal rate of return of 14% and a payback period of 4.5 years. In an industry challenged by reserve replacement, the mine will become one of IAMGOLD’s most productive assets and boost Sumitomo’s annual gold output to nearly 18 tonnes from 15 tonnes.

Côté Gold will benefit northeastern Ontario, a region suffering declines in both population and employment, and Canada as a whole. The project offers an estimated 19 years of employment through construction, operation and closure and will procure hundreds of millions of dollars worth of goods and services during the construction and operation phases. Federal and provincial revenues are expected to total more than C$1 billion through direct and indirect economic activity. Engagement with surrounding Indigenous communities continues.

The joint venture is a success story because it mitigates the risk of the Côté Gold project by giving IAMGOLD access to Sumitomo’s considerable financial resources and mine building and operating expertise. Together, the two companies are confident they can begin construction as early as 2019 and achieve commercial production by 2021 while ensuring a net positive impact on local and regional communities.

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Eric received the award for his work in investigating the Paleoproterozoic tectono-metamorphic evolution of the south Rae craton in southeastern NWT. This work entails regional and detailed bedrock mapping, structural, metamorphic and isotopic analyses of multiple deformed terranes and crustal-scale shear zones. The study will evaluate the nature of metamorphism and exhumation across the south Rae craton, which may be influenced by the Snowbird tectonic zone, Taltson magmatic zone and/or the Trans-Hudson orogen between 2.0 and 1.8 Ga. Eric received his award at the PDAC 2018 Convention. The award, comprising $5,000 and a certificate, is given annually and honours the memory of Mary-Claire Ward who died in 2004.

Mary-Claire was the chair of the PDAC’s Geoscience committee, Chairman of Watts, Griffis and McOuat Ltd., and a Past President of the Geological Association of Canada. She was a passionate advocate for the geosciences in Canada.

The intent of the award is to encourage and support a graduate student in Canada whose thesis contributes to our knowledge about the geological history of Canada. Mapping must be a significant component of the winning thesis.

The award is administered by the Prospectors & Developers Association of Canada (PDAC), the Geological Association of Canada (GAC), the National Geological Surveys Committee, the Canadian Geological Foundation, and Watts, Griffis and McOuat Ltd.

THAYER LINDSLEY AWARD This award recognizes an individual or a team of explorationists credited with a recent significant mineral discovery anywhere in the world.

Don Taylor, Arizona Mining Inc. For the 2014 discovery of the Taylor lead-zinc-silver deposit in Arizona, United States When geologist Don Taylor joined the management team at Arizona Mining (then

Wildcat Silver) in 2010 his main task was to move the company’s silver-manganese project in southern Arizona through advanced exploration to development. At that time, the surface oxide deposit posed a metallurgical challenge and Don, who graduated with a MSc from the University of Missouri, was eager to test the potential for sulphide mineralization at depth.

Don compiled the historical exploration data for the area and flew an airborne survey in 2011. Using this information to develop a new geological model, he launched a drilling campaign down dip of the silver-manganese oxide zone. In 2014 Arizona Mining discovered the Taylor deposit, a carbonate replacement deposit containing lead, zinc and silver sulphide mineralization in altered limestone.

The company immediately began raising funds to test the extent of the sulphide mineralization. Under Don’s leadership, Arizona drilled several step out holes that intersected high-grade mineralization over wide widths. Jim Gowans, former co-president of Barrick Gold, came on board as president and CEO to provide further expertise and allow Don to focus on exploration. By early 2016, Arizona was able to release a maiden resource of 39.4 million inferred ton grading 11% zinc equivalent based on 25 holes.

Financing accelerated in 2016 and by late summer, 14 drills were turning on the project to expand the limits of the known mineralization. In early 2017 the company released a preliminary economic assessment (PEA) confirming that Taylor is a world-class base metal deposit with further potential to grow. Based on the conservative mine plan of 61 million ton of ore, out of a total resource of 111 million ton, the project has a net present value of US$1.26 billion, an after-tax internal rate of return of 42% and a payback period of 1.7 years. The mine is expected to begin production in 2020.

The Taylor deposit continues to grow. Further drilling has delineated a separate sulphide zone called Taylor Deeps and in October 2017, Arizona Mining intersected a 112 metre interval of high grade zinc-lead-silver mineralization about 90 metres north of any previously reported drilling at Taylor Deeps. Don continues to guide the rapid expansion of this large carbonate replacement deposit, considered one of the top 10 undeveloped leadzinc deposits in the world.

SPECIAL ACHIEVEMENT AWARD From time to time, PDAC presents a Special Achievement Award that recognizes exceptional contributions to the mineral industry.

Jean Descarreaux (deceased) For founding the Québec Mineral Exploration Association (AEMQ) and developing the mineral exploration sector in Québec Jean Descarreaux is best known for his role in developing the Québec mineral exploration sector. In 1975 he co-founded the Québec Prospectors’ Association (now the Québec Mineral Exploration Association, or AEMQ) to promote exploration and entrepreneurship in the province.

He then spearheaded a successful effort to convince former Premier René Lévesque to adopt legislation allowing flow-through shares to be issued in Québec.

The popular tax incentive for exploration helped finance several mineral discoveries including Balmoral, Casa Berardi, Éléonore and Lamaque.

Jean became the first French-speaking resident of Québec to obtain a doctorate in geochemistry when he graduated from Laval University in 1973. He pioneered the use of lithogeochemistry as a prospecting tool to outline alteration halos around mineralized zones, thereby increasing the size of exploration targets. He later compiled a massive lithogeochemical database designed to help geoscientists compare their rock samples with those found in the vicinity of known orebodies and deposits, and digitized all of Québec’s lake sediment data.

Jean was the founding president of Claude Resources (purchased by Silver Standard Resources for C$337 million in 2016), co-founder of Cartier Resources and advisor to several junior companies. He participated in the discovery of gold and base metal deposits in Québec, including Golden Pond and Estrades, and in 1986 was awarded the Discovery of the Year award by the AEMQ. Jean served on PDAC’s Board of Directors from 19781984 and on the board of the Mineral Research Institute of the Université du Montréal and McGill University from 1984-1986. In 1983 he became the first chairman of the Université du Québec en Abitibi-Témiscamingue (UQAT). Under his leadership, UQAT grew and eventually established its own school of engineering.

Today, AEMQ has 1,200 individual members and 225 corporate members and offers an annual research award in Descarreaux’s name. Jean died in March 2017 at the age of 76. His legacy is Québec’s strong, vibrant mineral exploration sector. c

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AN INSIDE LOOK AT S-IMEW 2018 27

PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

It’s a competitive world out there, and getting a spot in PDAC’s Student-Industry Mineral Exploration Workshop, better known as S-IMEW, is no exception. Each year, top geoscience students from across the country are selected to take part in a two-week program that exposes them to the countless career opportunities available in the mineral exploration and mining sector.

he workshop is multi-faceted. It includes a combination of lectures, field exercises, visits to exploration and mine sites, world-class mining camps, and vital networking with industry professionals. S-IMEW is highly regarded for its excellent lineup—reflecting the realities of the industry, including its challenges, and is seen as a potential recruitment opportunity for companies looking for the next generation of talent. Many S-IMEW alumni have gone on to have successful careers and become prominent figures in the industry.

In 2018, 26 students from all over Canada travelled to Sudbury, Ontario to take part in S-IMEW. For many, touring Agnico Eagle’s La Ronde mine 2.8 km underground was their first time stepping foot on a mine site. Other activities included a surface and underground tour at Nickel Rim South mine, participating in various mapping exercises with Wallbridge Mining, the Ontario Geological Survey and Probe Metals, and a day spent with First Cobalt learning about cobalt exploration.

Now in its 12th year, S-IMEW provides a unique platform for students to get out of the classroom and turn their textbook knowledge into first-hand practice. All expenses for the workshop are covered thanks to the ongoing generosity of the sponsors, volunteers and PDAC. c

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S-IMEW Q&A WITH GLENN MULLAN

S-IMEW in a few more words? Take around 25 of the luckiest and best students from across Canada, pluck them from their universities, throw them into minivans to Sudbury, and give them two weeks of courses, talks, inspired case histories, visits to underground mines, meetings with local suppliers and contractors, industry veterans, S-IMEW alumni, government ministers, leading technology companies, field trips and fabulous networking opportunities, mixed with socializing. The group at the end is very different than the group at the beginning, and they are our ambassadors.

Mining and exploration is quite simply a treasure hunt for adults, with all of the perks for success, and all of the impediments to make it a challenge. How do you find a mine worth billions of dollars? Blind luck, technology, good ideas, supportive communities and solid partnerships.

Q

What does S-IMEW represent to you?

The best part of PDAC, other than the convention. It is the entry level, the next wave of professionals, and the participants benefit from the highest echelon of mentorship. I think about how lucky they are because I would have loved to have had an opportunity like that. But I am grateful to be a participant, however small the role. Experience, access to exploration sites, learning about new techniques in geophysics, geochemistry, diamond exploration, and becoming aware of new trends and enhancements to older techniques such as core logging, and soil and sediment sampling. PDAC makes these things accessible to students who generally have very limited knowledge outside of academic experience.

Q Q

Tell us about your role in S-IMEW and how long you have been involved.

My involvement started around eight years ago.

Scott Jobin-Bevans, then PDAC President, asked me to help coordinate a Val-D’Or field trip, and I was hooked! Students are always enthusiastic and their questions cut to the chase. Early on it was all about contacting local mining and exploration companies to see who might be interested in hosting students, explaining their businesses, showing them around active exploration sites, arranging field trips, including one to the local Resident Geologist’s office of the Quebec MERN (Ministere de l’Energie et Ressources du Quebec), and occasionally inviting some special guests to liven things up a bit.

Q

If you were to describe S-IMEW to someone who didn’t know anything about it, or the mineral exploration and development industry, what would you say?

For the many who only know PDAC by its convention in Toronto, S-IMEW is my first reply because it is proof of how much more we actually do. In fact, during the PDAC Convention S-IMEW events have grown into their own program, complete with alumni events, luncheons, and of course the networking opportunities for which we are so well-known.

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Have you noticed any changes in students over the years?

The biggest change is there have been more than 200 of them in total! Their enthusiasm, appreciation and commitment are constants, but now they are their own community and so many of the alumni are giving back to the program. It takes a while for them to appreciate the grandeur of their experience, but they do get it and they do come back and continue their involvement.

Q

The S-IMEW itinerary covers many aspects of the geosciences.

What is the most important thing you learned as a student?

Graduation Day is not the end, it is just the beginning. I was a bit shy with how little I knew at the start of my career, at least from the perspective of pure, grass-roots exploration. S-IMEW is a big step towards recognizing that most students find themselves in similar circumstances, the so-called “knowledge-gap”, when they show up at their entry-level jobs. It is a bit of a shock, but then most of us go through it and here we are. S-IMEW is a way to short cut some of the hurdles, teach industry best practices, and encourage early dialogue with communities and recognize that not all parts of society, Canadian or international, rural or urban, southern or remote regions, have the same opportunities. Knowing that helps our students be better at their roles—it removes the mystery of exploration from some communities who may not be aware of our intentions, and strategies.

Q

Was there anything like S-IMEW available when you were studying?

Two summers of Canadian Armed Forces in Petawawa gave me the bug for being outside and then reading about the Klondike and the fine line between desperation and motivation helped make geology look good.

There was certainly nothing like S-IMEW.

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Q

What advice do you have for aspiring geologists and prospectors?

Buy the Mining Act for your province, understand it, and get your prospector’s license. I am often amazed at how many geologists and earth scientists do not have a prospector’s license. It is astounding how much power an individual has at their disposal. Stake a few mining claims.

The industry will have its ups and its downs, you will always be glad to have that “prospector” hat when things get quiet. And you will learn that is why the biggest transactions and best opportunities come from those cyclical bottoms, not the tops. You’ll be plenty busy at the tops anyway, so get those prospector tools for the other parts of the natural economic and commodity cycles. Survival is the key to success, and prospecting will teach you many basic survival skills.

Q

Did you have a mentor? If so, who was it and what did they achieve?

It is fair to say that I had two of them. My Uncle, Ashton Mullan, was one of the early owners at McPhar Geophysics which evolved into Phoenix Geophysics, which still exists. He saw how I loved the outdoors aspect of being in the Armed Forces (not a natural path for someone from downtown Montreal) and knew that I had visions of the Yukon, prospecting, finding a mine, and so on. Uncle Ashton gave me not just my first break, but first Brunton as well (Google it!). That first job was north of Norman Wells, NWT, in the Gayna River area. It blew my mind and I was hooked before the first supper. I was being paid to get into a helicopter and go break rocks, something I would have done for free! Then I worked in Hemlo, Chibougamou, Kirkland Lake, Timmins, and finally my favourite of all, Val-D’Or, which I still consider the best exploration community in Canada.

My Uncle, who was a mining engineer, constantly encouraged me and in particular, to become independent and stay that course. I will always be grateful for that first opportunity.

Shortly after I ended up in Val-D’Or, I was fortunate to meet Dr. Jean Descarreaux, a gentle and softly spoken man. Long after that I came to appreciate his stature and many accomplishments. Such a noble man who left a legacy that benefits so many, flow-through shares in Quebec being one of them. But he was a classic mentor, always sharing, talking, encouraging me to explore in places others were not, and to relook at areas that had been passed over. He was most definitely someone I sought out for encouragement and direction.

Both of my mentors were well-rounded individuals who were years ahead of the pack in that they respected small communities, rural environments, First Nations and Aboriginal engagement, and what we now call corporate social responsibility. I think they both had their own terms which certainly conveyed “do it properly”.

Q

What kind of career opportunities await students today as they enter the sector, and why is a career in mineral exploration, in your view, worth pursuing?

There are certainly more opportunities today than back when I graduated, but much of the motivation should be the same. The challenge, the thrill, the way your heart beats when you are popping open one of your core boxes, the way you can see something that is attainable but has not been done before—all of that. It is a great profession, all of the earth sciences, but to me, prospecting is still the best part. Don’t do it for financial motivation. You have your entire life for that, and things have an amazing way of finding equilibrium over time, don’t be in a rush, but do get that prospector’s license, and do it soon. c

2018 S-IMEW SPONSORS PREMIER SPONSOR Osisko Mining Inc. PLATINUM SPONSOR Ontario Ministry of Northern Development & Mines GOLD SPONSORS Abitibi Royalties Inc. Barrick Gold Corporation Foraco International SA Golden Valley Mines Ltd. Goodman School of Mines, Laurentian University Major Drilling International Inc. SGS Canada SILVER SPONSORS Agnico Eagle Mines Ltd. IAMGOLD Corporation Peartee Securities SRK Consulting (Canada) Inc. Teck Resources BRONZE SPONSOR Caracle Creek CONTRIBUTING SPONSORS Dan Brisbin Felix Lee Karen Rees IN-KIND SPONSORS Abitibi Geophysics Inc. Agnico Eagle Mines Ltd. B-Field Geophysics Canadian Malartic Mine Clyde Valley Media CSA Global De Beers Canada Exploration Services First Cobalt Corporation Geological Survey of Canada Geoscientists Canada Geoscience North Golden Valley Mines Ltd. Grenvyn Consulting Indigenous Community Engagement Knight Piésold Consulting Laurentian University Major Drilling International Inc. Minalytix Mining Research Group Ministry of Energy and Natural Resources Quebec Noront Resources Nova Mining Exploration Solutions Ontario Ministry of Northern Development and Mines Ontario Securities Commission Peregrine Diamonds Power Metals Corporation Probe Metals Inc. Proforma Adam Promotions Red Cloud Klondike Strike Ronacher McKenzie Geoscience SGS Canada Sabrina Dias Consulting Sudbury Integrated Nickel Operations Sudbury Platinum Corp.

Tahoe Canada University of Toronto Mississauga Vale Canada Ltd. Wallbridge Mining Company Ltd.

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S-IMEW HIGHLIGHTS FROM THE STUDENTS

TAYLOR MCPHERSON, BRANDON UNIVERSITY

I got the most out of the one-on-one conversations with the field trip leaders at the outcrops, and in the vans. I probably learnt the most in those moments where I really got the opportunity to ask the questions! Seeing the pristine outcrops, the pillows and various textures was amazing. The conglomerates were my favourite.

Going underground at Nickel Rim South and seeing that world-class mine was really interesting, not to mention going 2,900 m underground in a gold mine was absolutely fantastical! One of the highlights would have to be just the relationships built on this workshop. I still talk to those students all the time and I know we have built lasting relationship.

S-IMEW feels more like a little family to me now.

JOACHIM DE FOURESTIER, CARLETON UNIVERSITY S-IMEW 2018 was an amazing experience!

It gave me quite an insight into today’s mineral exploration industry. I got the chance to meet with so many professional geologists, experts and company owners. I was given the opportunity to learn from personal experiences and obtain actual “practical” knowledge! You get to learn and experience things you will never see in school, such as going almost 3 km down in the Agnico Eagle LaRonde gold mine (they let us collect our own samples!), as well as seeing so many rough and cut diamonds and holding one up close. And I got the chance to meet the many good-spirited students with such enthusiasm and knowledge. We still keep in contact! One thing is certain, I will never forget these two weeks of action-packed, sleepless days of awe-inspiring geology.

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ETHAN AMYOTTE, UNIVERSITY OF MANITOBA I really enjoyed learning about how to conduct analysis on an exploration property using publicly available data and spatial software.

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DALLAS DIXON, UNIVERSITY OF REGINA While attending S-IMEW, each day brought something new and exciting. Some of these include seeing tourmalinization in drill core and outcrops. The tourmalinization was associated with various alterations that I hadn’t seen before either in core or hand sample. Another great day involved lake geochemical sediment sampling with the Ontario Geological Survey. Most students are exposed to till and soil sampling, but never get to experience sampling while on a lake, and this experience helped to showcase many new opportunities in geochemistry. Other favourites of S-IMEW were logging kimberlite core and seeing a banded iron formation for the first time. Lastly, having lunch at Onaping Falls during our tour of the Sudbury Basin with the other S-IMEW students is something I’ll always remember.

CANDICE YING WOEI OOI, UNIVERSITY OF TORONTO S-IMEW has so much to offer, not to mention field trips around the Sudbury basin, to Val d’Or, visits to mine sites and a diamond cutting and polishing facility. For me, one of the highlights at S-IMEW was being able to see the drills in action! I found it mind-blowing as I’d never seen an operating drill before. Another unforgettable experience at S-IMEW was with the Ontario Geological Survey—we were able to do lake sediment sampling and till sampling, something that is not offered at my university. S-IMEW brings in professionals from various backgrounds in mining. The insights from these professionals together with the hands-on experience gave us a taste of different roles in the mineral exploration and mining industry. This helped explore my career options. Meaningful friendships were also built from S-IMEW. I miss the S-IMEW crew already!

COURTNEY ONSTAD, UNIVERSITY OF SASKATCHEWAN Learning about the importance of developing strong community relations between junior exploration companies and local communities was very interesting. As students, we don’t get exposure to these additional aspects of the mineral exploration industry that have to be considered, but S-IMEW allowed us to discover these. Finding suitable agreements between both parties is a critical step in the exploration process. c

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PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

2018 PDAC MEMBERSHIP STATISTICS

INDIVIDUAL MEMBERS (EXCLUDING STUDENTS) 5,734 Canada NT NU YT BC AB SK MB ON QC PE NB NS NL

3,741 27 10 41 869 118 73 44 2,054 360 2 37 62 44

65%

USA International Latin America / Caribbean Europe Australia Asia Africa

PDAC Individual members MEMBERSHIP Core TREND Regular Senior Student Life Total Variance (%)

34

2008 2,300 2,755 484 637 197 6,373 9%

2009 2,061 1,976 509 606 208 5,360 -16%

623

11%

1,370

24%

517 317 194 189 153

2010 2,185 2,408 501 933 273 6,300 18%

2011 2,432 3,283 644 1,048 288 7,695 22%

2012 2,524 3,891 768 1,543 290 9,016 17%

2013 2,540 3,827 832 1,662 293 9,154 2%

2014 2,355 3,124 808 1,407 289 7,983 -13%

2015 2,068 2,794 792 1,228 283 7,165 -10%

2016 1,805 2,450 733 1,114 294 6,396 -11%

2017 1,636 2,713 688 1,092 396 6,525 2%

2018 1,619 2,981 728 1,074 406 6,808 4%

OUR FUTURE IS NOW 2018 ANNUAL REPORT

CORPORATE MEMBERS 1,013 Canada NT NU YT BC AB SK MB ON QC PE NB NS NL

763 2 4 3 281 28 11 6 315 90 0 6 7 10

75%

85

9%

International 165 Europe 52 Australia 52 Latin America / Caribbean 27 Asia 19 Africa 15

16%

USA

STUDENT MEMBERS 1,074 Canada NT NU YT BC AB SK MB ON QC PE NB NS NL

Corporate members Class A Class B Class C Class D Class E Class F Junior Exploration Non-Mining Total Variance (%)

931 0 0 1 50 47 19 32 626 70 2 17 39 28

87%

USA

64

6%

International Europe Latin America / Caribbean Africa Australia Asia

79 57

7%

13 3 3 3

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 18 17 19 26 24 25 23 20 16 18 19 7 4 5 10 8 9 5 9 8 6 7 15 15 16 20 23 22 9 10 9 9 10 7 16 19 22 24 21 26 18 15 14 13 2 8 18 17 15 18 12 12 11 14 16 15 547 561 545 577 651 583 449 384 303 355 423 349 374 402 430 525 556 537 507 514 492 525 960 995 1,024 1,102 1,270 1,234 1,061 960 876 908 1,013 23% 4% 3% 8% 15% -3% -14% -10% -9% 4% 12%

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PDAC Board of Directors

PDAC Staff

OfďŹ cers Glenn Mullan President Felix Lee First Vice President Alex Christopher Second Vice President James Lusby Treasurer Board of Directors Sandy Archibald Aurum Exploration Services Bob Bosshard Retired Partner, PwC LLP Robert Boyd Endurance Gold Corporation Tim Bremner Foraco Canada Ltd. Alex Christopher Teck Resources MaryAnn Crichton Hatch Ltd. Lisa Davis PearTree Securities Tim Dohey Newmont Mining Corporation Elaine Ellingham Marienberg Minerals Ltd. Jonathan Fowler J.A. Fowler and Associates Inc. Michael Fowler Loewen, Ondaatje, McCutcheon Limited Michael Fox Fox High Impact Consulting Raymond Goldie Independent Analyst and Director Mary Louise Hill Lakehead University Dennis Jones Retired Geologist Nick Kohlmann Independent Investor Relations Consultant Belinda Labatte Mandalay Resources Felix Lee CSA Global Canada Stephen Morison SRM Consulting Ltd. Glenn Mullan Golden Valley Mines Ltd. Karen Rees Tahoe Canada Keith Spence Global Mining Capital Corp.

Ian Thomson Shinglespit Consultants Inc. Bob Valliant Tri Origin Exploration Ltd. Catherine Wade Raziel Zisman Alicanto Mining Corp.

Alison Abbott Franklin Event Specialist, Convention Cameron Ainsworth-Vincze Director, Communications Chloe Arbutina Coordinator, Convention Exhibits Zoe Bell Coordinator, Convention Presentations Kimberly Charters Coordinator, Convention Exhibits Sherry Dickert Manager, Convention Sponsorship & Marketing Program Richard Douglas Assistant, Student Program Jennifer Forde Assistant, Convention Lynda Joyet Senior Manager, Convention Events & Sponsorship Madina Kaytmazova Coordinator, IT & Administration Kristy Kenny Manager, Communications Jeff Killeen Director Policy & Programs: Finance & Taxation, Securities, Geoscience, and Health & Safety Joan Leslie Chief Accountant Florence MacLeod Manager, Member Engagement & Outreach Ran Maoz Analyst, Tax Policy & Capital Markets Elena Mazur Marketing Consultant Mark McCleary Assistant, Convention & Membership Lisa McDonald Executive Director Krishana Michaud Manager, Student Program Maria Milanova Manager, IT & Administration Sarah Musa Coordinator, Membership & Reception Sarah Nazar Senior Coordinator, Convention Events & Sponsorship Jessica Provencher Convention Assistant Nicole Sampson Director, Convention Jodi Spivak Event Specialist, Convention Rose Stacey Analyst, Sustainable Development & International Affairs Luka Stevanovic Analyst, Aboriginal & Regulatory Affairs Christina Goncalves Toste Manager, Convention Sponsorship & Partnership Development Petrona Tulloch Staff Accountant Lesley Williams Director, Policy & Programs, Aboriginal & Regulatory Affairs, Sustainable Development & International Affairs

Editorial

Produced by PDAC's Communications Department

Contributors

Photography

Cameron Ainsworth-Vincze Editor-in-Chief Kristy Kenny Associate Editor Hambly & Woolley Inc. Design

Lisa McDonald Florence MacLeod Nicole Sampson Glenn Mullan Elena Mazur Lesley Williams Krishana Michaud Jeff Killeen

Anne Belanger Ryan Bachynski Kevin Neyedley envisiondigitalphoto.com

www.pdac.ca www.twitter.com/the_PDAC www.facebook.com/thePDAC

PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA 800-170 UNIVERSITY AVENUE TORONTO, ONTARIO M5H 3B3 PHONE 416.362.1969 INFO@PDAC.CA WWW.PDAC.CA WWW.TWITTER.COM/THE_PDAC WWW.FACEBOOK.COM/THEPDAC