CORE (Winter/Spring 2022)

CONTRIBUTORS

Ariya Andrighetti

Alison Abbott Franklin

Munisha Basiram

Zoe Bell

Lynn Bodwell

Alex Christopher

Jennifer Forde

Christina Goncalves Toste

Pat Gramsch

Lynda Joyet

Kristy Kenny

Jeff Killeen

Florence MacLeod

Lisa McDonald

Sarah Nazar

Nicole Sampson

INDUSTRYNEWS

MiHR LAUNCHES GREEN JOBS PROGRAM

The Mining Industry Human Resources Council (MiHR) has launched a Green Jobs Program to help job-ready youth and young adults aged 15 to 30 gain relevant and meaningful work experience through paid placements or training opportunities that focus on clean technology and innovation, and ultimately provide an environmental benefit to Canada. Placements are delivered through MiHR-approved hiring organizations whose work processes affect positive environmental outcomes.

The Green Jobs Program provides 80% of participant’s compensation to a maximum of $25,000 for job-ready youth and $32,000 for youth furthest from employment (Indigenous, northern regions, rural and remote communities, and youth with disabilities). MiHR will provide 25 meaningful placements of up to 12 months in duration in the sector linked to the green economy. Visit MiHR’s website for more information and to apply to the Green Jobs Program.

Funding for exploration projects in N.W.T.

Five companies were selected to receive $100,000 from federal and territorial governments, while a sixth company will receive almost $40,000 to conduct mineral exploration in the N.W.T. Funding comes from the Mining Incentive Program (MIP), which received $500,000 from the Canadian Northern Economic Development Agency (CanNor).

The companies that are receiving $100,000—Fortune Minerals Ltd., Kennady Diamonds Inc., Gold Terra Resource Corp., Cheetah Resources Corp., and Rover Metals—are exploring for gold, bismuth, cobalt, copper, diamonds and rare earth minerals. Gold Terra will receive $39,388 for its Mispickel project.

PDAC launches successful multi-year member renewal plan

The association's new initiative, aimed at providing more flexibility for members, was launched with membership renewals in October 2021. All individual and corporate members can now renew or purchase a membership for up to three years, with the added benefit of locking in current fees for subsequent years.

To date, 4% of current members purchased membership for two years and 7% purchased for three years, and we hope to see these numbers grow. Check your PDAC account now to take advantage of this new option!

Federal Government recognizes PDAC recommendations

PDAC’s call to increase the Mineral Exploration Tax Credit (METC) incentive was recognized by Prime Minister Justin Trudeau in his mandate letter to Finance Minister Chrystia Freeland in December. The association continues to encourage government and industry to pursue initiatives that will ensure Canada’s mineral exploration and development sector is a leader in the discovery of the critical minerals that are needed for a net-zero future, and we are encouraged by this commitment.

PDAC is also pleased to see Canada’s renewed commitment to develop a Critical Minerals Strategy, as outlined in Natural Resources Minister Jonathan Wilkinson’s mandate letter As the leading voice of the sector, PDAC has long advocated for this strategy that will further our transition to a green economy and bolster Canada’s world-leading mineral sector.

PDAC SUPPORT FOR CSA FINANCING EXEMPTION

The Canadian Securities Administrators (CSA) has proposed a new prospectus exemption for Canadian listed issuers, enabling companies to raise up to $10 million depending on their market capitalization. PDAC commends CSA for the proposal and has made a number of suggestions to consider that ensure unnecessary burdens are not adopted in the exemption. The association is committed to working with securities commissions and stock exchanges on various reforms that will:

• Expand access to wider and new pools of capital

• Reduce the costs of capital-raising in Canada

• Maintain investor confidence in Canadian capital markets through improved enforcement.

Please read our full response here.

PDAC AWARDS

PDAC is pleased to recognize the following 2022 Award Recipients in six categories for their outstanding contribution to the mineral exploration and mining sector.

Recipients will be celebrated at an Awards Celebration during the in person PDAC 2022 Convention on June 14. Session will be recorded and available online on Tuesday, June 28 at 5:30 pm ET.

BILL DENNIS AWARD

Bill Dennis Award

This award, named for a former president of the association, honours individuals 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.

2022 Award Recipient

Charlie Greig: For the discovery of the Saddle North gold-rich copper porphyry deposit and the Saddle South vein gold-silver zone in the Golden Triangle region of British Columbia.

Charlie Greig, Vice-President of Exploration at GT Gold, and his fellow explorers were ecstatic when they drilled soil anomalies at the Tatogga project in 2017 and intersected high grade gold. The team had uncovered a brand new epithermal gold-silver vein system they called Saddle South in the prolific Golden Triangle camp of northwestern British Columbia.

But the best was yet to come. The team launched a separate drill program about 1.5 kilometres northeast of the precious metals discovery to test a coincident soil geochemical and geophysical anomaly partially underlain by strong alteration visible in subcrop. In September 2018 they intersected 430 metres of 0.7 grams per tonne (gpt) gold and 0.4% copper. More impressive intercepts followed. Newmont invested in GT Gold and subsequently raised its stake from 10% to 15% via an C$8.3 million private placement, a sure sign the world’s largest gold producer had faith in GT Gold’s new finds.

A maiden estimate for Saddle North completed in 2020 calculated indicated resources of 298 million tonnes grading 0.28% copper, 0.36 gpt gold and 0.8 gpt silver, and inferred resources of 543 million tonnes at 0.25% copper, 0.31 gpt gold and 0.7 gpt silver.

In mid-2021 Newmont paid C$393 million to acquire full ownership of GT Gold, stating that the “Tatogga project, including the primary Saddle North deposit, has the potential to contribute significant gold and copper annual production at attractive all-in sustaining costs over a long mine life. In addition to the known deposits at Saddle North, there are further exploration opportunities throughout the land package.”

DISTINGUISHED SERVICE AWARD

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 the PDAC; made outstanding contributions to the mineral industry in the field of finance, geology, geophysics, geochemistry research, or a related activity.

2022 Award Recipient

Keith

DISTINGUISHED

his contribution to developing CIMVAL, a globally recognized code for mining valuation.

Keith N. Spence combined his geology and finance expertise to develop new guidelines for determining the value of mineral projects after the Bre-X scandal rattled investor confidence in the sector. In 1999 he co-chaired the CIM committee that established the Canadian Mining Valuation Standards and Guidelines. CIMVAL became a globally recognized code to ensure a qualified person conducts valuations while disclosing all relevant information.

Keith is a well-known leader in the industry and beyond. He has helped shape important policy and programming directions at PDAC by serving on its board of directors and committees for more than two decades, including the convention planning and securities committees, as well as chairing the international affairs committee. He is often called upon to speak at international mining conferences and has represented PDAC at events in China, where he is renowned for introducing leading business practices in mining.

He was chair of the Mineral Economics Society and a board and committee member for CIM. He also served on the board of the Royal Ontario Museum and Ontario Place. He received the Queen Elizabeth II Diamond Jubilee Medal in 2012 and the Harry Jerome Award for Professional Excellence from the Black Business and Professional Association in 2017.

Keith earned his BSc Geology (Honours) from the University of Western Ontario where he was recognized as a Commonwealth Scholar. He went on to complete his MBA at Western’s Ivey School of Business, and later graduated from Harvard University’s Global Management program. He started his career as a field geologist before turning his attention to capital markets and corporate finance and then to mineral economics and project valuation. He is CEO of Global Mining Capital, a firm that specializes in private equity and industry mergers and acquisitions.

For his dedication to establishing globally respected standards for mineral valuation and furthering PDAC’s international reputation for excellence, Keith is richly deserving of this prestigious service award.

N. Spence: For more than two decades of dedication to PDAC, ongoing leadership in Canada’s mineral exploration and mining industry, and

SKOOKUM JIM AWARD

Skookum Jim Award

Recipients of this award must be from a recognized Indigenous group in Canada (Metis, Inuit, First Nation) and have demonstrated exceptional achievement and/or service in an Indigenous business organization operating in the Canadian mining industry and/or a Canadian Indigenous exploration or mining company, or have made a significant individual contribution to the mining industry.

2022 Award Recipient

Colin Webster: For his ability to engage and establish trust with Indigenous communities on mineral projects.

Colin Webster is known for his dedication to meaningful engagement and consultation between industry and Indigenous communities on exploration and mine development projects.

A proud Algonquin member of Kitigan Zibi Anishinabeg in Québec, Colin was raised in the small mining community of Kirkland Lake in Northern Ontario. He combines 25+ years of engineering qualifications and environmental management skills with an Indigenous perspective, empowering industry and Indigenous communities to have honest and respectful dialogue founded on transparency and trust. In the Lynn Lake mining camp in Manitoba, for example, Colin built trust with the Marcel Colomb First Nation where there was none. Sensitive to historic mining-industry challenges the community had faced previously, the current vice-president of sustainability and external affairs for Alamos Gold succeeded in communicating the merits of sustainable mining to community members.

Colin graduated from Queen’s University with a BSc in mining engineering in 1990. He went on to receive a diploma in environmental technology from Fanshawe College. After working in the mining sector for a decade, he co-founded Blue Heron Solutions for Environmental Management to provide environmental expertise to both industry and First Nations in their dealings with each other. In 2009 he joined Goldcorp (now Newmont Mining) to lead the company’s Indigenous engagement strategy across Canada and the US.

One of Colin’s most rewarding and also challenging roles was vice-president of sustainability for Noront Resources as the junior mining company attempted to negotiate the parameters of mine development in the James Bay Lowlands with surrounding First Nations communities. Colin helped community members better understand the mining cycle and the business opportunities available to them while ensuring their concerns about ongoing exploration and potential development were addressed. To this day the development continues to focus on community empowerment and working together in a meaningful way.

Over the span of his career, Colin has won the respect and appreciation of industry and Indigenous leaders alike with his ability to combine technical knowledge with Indigenous perspective.

SUSTAINABILITY AWARD

Sustainability 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.

2022 Award Recipient

Sabina Gold & Silver Corp.: For state-of-the-art caribou protection and social initiatives at the Back River gold project in the Kitikmeot region of southwest Nunavut.

SUSTAINABILITY

In 2015 Sabina presented a case for the development of the Back River Project to the Nunavut Impact Review Board. Following a lengthy process, Sabina had met most of the requirements for permitting the project, but the board of directors had concerns over how the company would protect caribou herds in the region. They rejected the initial application. Sabina asked the government, community and other stakeholders for help to devise a better plan.

The collaborative process enabled Sabina to create one of the most stringent caribou protection plans in the North. The initiative starts with Inuit monitors who continuously scout the region for caribou. At the first sign of activity, and depending on how vulnerable the herd is, the operation slows down or comes to a standstill. Blasting stops. If activity is detected along the 170-kilometre winter road leading from the mine to the port facility at Bathurst Inlet, trucks halt until caribou have cleared the area. The winter road is constructed with flattened banks and vehicle speeds are limited to ease migration should caribou pass through the area.

The caribou protection plan is just one of several initiatives designed to support sustainability in the region, including: investigating a hybrid energy system to offset diesel power generation with wind energy; funding the restoration of the creek leading into Bernard Harbour to create an unobstructed path for char to travel to spawning grounds and back out to the ocean; establishing a wealth creation fund with a $4 million initial investment to create long-term employment opportunities outside of the mining industry in Kitikmeot communities; donating 80 Leitz microscopes to regional schools to promote STEM learning; and a food security program that was created when the COVID-19 pandemic limited personnel from working onsite.

As a result of these and other efforts Sabina received its social license, including a Nunvut Impact Review Board Project Certificate in 2017 and a Nunavut Water Board License in 2018. The company has also entered into a renewable 20-year benefit and land tenure agreement with the Kitikmeot Inuit Association (KIA) representing more than 6,000 Inuit. “In Sabina, we have found a partner that shares our vision of sustainability,” according to KIA President Stanley Anablak.

THAYER LINDSLEY AWARD

Thayer Lindsley Award

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

2022 Award Recipient

Rio Tinto Exploration: For the 2017 discovery of the Winu copper-gold deposit in the Paterson Province of Western Australia.

A modern theme of mineral exploration is that the next generation of mines will be found by geoscientists who can effectively explore for mineralization under a cover of rocks or sediments. In late 2017, the Rio Tinto exploration team did just that, intersecting significant copper-gold mineralization on the first pass of the Winu property. By mid-2020, Rio Tinto had established an inferred resource of 503 million tonnes grading 0.45% copper equivalent for Winu. First production is scheduled for 2024 subject to regulatory approvals and traditional owner consent.

The Paterson Province of Western Australia is gold country, but geologists Helke Dalstra and Jennifer Maguire and exploration manager Mawson Croaker estimated deep-seated porphyry deposits could be associated with the area’s buried granites. On the basis of structural and stratigraphic setting, proximity to a granitoid and the aeromagnetic character of the district, they identified several targets. When they followed up with airborne geophysical surveys, they found a shallow EM conductor coincident with one of their targets.

Then came the hard part: accessing the region for drilling. Battling lengthy travel times to the remote area and temperatures exceeding 45°C, the team set up a reverse circulation drill to test the target under a cover of younger sediments. Rio Tinto discovered near-surface copper-gold mineralization in the first hole.

Subsequent drilling under inhospitable conditions including wildfires and cyclones expanded the mineralization, enough to support the development of an open pit mine. The Winu deposit remains open at depth and along strike and Rio Tinto continues to find new zones of mineralization on the large land package, suggesting there may be more to come.

VIOLA R. MACMILLAN AWARD

MACMILLAN

Viola R. MacMillan Award

This award, which is 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. research, or a related activity.

2022 Award Recipient

Lundin Gold Inc.: For financing and developing Fruta del Norte, one of the first large scale mining projects in Ecuador.

In 2013 Ecuador was in the midst of drafting a new mining code to encourage investment in the sector. But it was too late for Kinross Gold, which had spent $1.2 billion in 2008 to acquire the Fruta del Norte deposit and five years trying to develop it. The company walked away from the 10-million ounce gold-silver resource when negotiations with the Ecuadorian government failed.

The Lundin family saw an opportunity. In late 2014 a Lundin company took Fruta del Norte off Kinross’s hands in a cash-and-share deal worth US$240 million. After detailed talks with the Ecuadorian government, Lundin Gold reached an agreement to enshrine legal and tax assurances for the mine and pave the way for project financing. The negotiations helped shape Ecuador’s new mining law.

The next challenge was to raise the $1 billion required to construct an underground mine in a jurisdiction that had little experience with large-scale mine projects. Lundin used a creative combination of debt, streaming and equity financing to achieve this goal, including a $250 million equity investment by Australia’s Newcrest Mining. The company was successful in fundraising partly because of an ability to mitigate environmental and social impacts and win community support for the project in an impoverished region of southeast Ecuador.

Fruta del Note reached commercial production in February 2020 and is expected to produce at least 4.7 million ounces of gold over a 14-year mine life.

PDAC 2022 CONVENTION 90th Anniversary!

WELCOME MESSAGE FROM THE PRESIDENT

While our passion for mineral exploration and mining has not changed, some things in the world most certainly have—including the look and feel of the PDAC Convention, which is celebrating its 90th anniversary in 2022 and will be held in June instead of March.

The dedicated team at PDAC has flexed its muscles yet again. By listening to feedback from stakeholders and embracing innovation, the PDAC 2022 Convention will be offered both in person and online for the very first time. I am proud to be PDAC President during this time of unprecedented global challenge, and excited to deliver a successful set of events for this important milestone anniversary.

NEW DATES

JUNE 13 – 15, IN PERSON

JUNE 28 – 29, ONLINE REGISTER NOW!

Over the past year, the international spotlight has continued to shine on our sector. The role of mining in the move to a low carbon future remains dominant. Canada is uniquely positioned in this conversation as a leader in exploration and mining practices, as well as in its ability to deliver many of the minerals and metals required to make this shift.

The COVID-19 pandemic has showcased once more the importance of precious metals, as gold prices soared to record heights. It also demonstrated the significant social and economic impacts our industry can have on communities around the world, and we have seen exploration and mining provide much-needed support where it may otherwise not exist.

Essential Programming and Short Courses at PDAC 2022 reflect these and other trends taking shape throughout the sector. The expanded Keynote Program provides a platform for experts to present on commodities, the mineral outlook, innovation and new discoveries. The in person convention also marks the return of exciting networking opportunities that have kept attendees returning to Toronto for decades.

For those joining in person, health, safety and wellness remain our top priority and we will continue to follow all Canadian and local government directives. We understand that these requirements may evolve and will ensure attendees are kept informed of new developments.

No matter how you connect, online or in person, the PDAC 2022 Convention is where the world’s mineral industry meets. I look forward to welcoming you there.

Visit www.pdac.ca/convention for the latest news and information.

Alex Christopher Prospectors & Developers Association of Canada

JOIN US IN CELEBRATING PDAC’S 90 th ANNIVERSARY!

IN PERSON & ONLINE

Visit www.pdac.ca/convention to review which of our outstanding exhibits, programs, events & networking opportunities will be offered in person, online or both!

VISIT 800+ EXHIBITORS

Promoting leading products, services, mining jurisdictions, investment and development opportunities

• Core Shack

• Investors Exchange

• PDAC-SEG Student Minerals Colloquium

• Prospectors Tent

• Trade Show

200 HOURS OF CONTENT

Across a diverse spectrum of industry topics

• Capital Markets Program

• Corporate Presentation Forum for Investors

• Executive Spotlight

• Exploration Insights

• Indigenous Program

• Industry Showcase

• International Stage

• Keynote Program

• Letter Writer Presentations for Investors

• Master Class Series

• Mining Country Sessions

• Mining for Diversity

• PDAC One On One Meeting Program

• Short Courses

• Student & Early Career Program

• Sustainability Program

• Technical Program

HIGHLIGHTS

JUNE 13-15 IN PERSON • TORONTO, CANADA

JUNE 28-29

ONLINE • ANYWHERE

KEYNOTE PROGRAM

Keynote sessions will be recorded and available online.

COMMODITIES

Sponsored by

MINERAL OUTLOOK

Sponsored by

EVENTS & NETWORKING

AWARDS CELEBRATION

The PDAC Awards celebrates excellence in the global mineral exploration and mining industry. Join us as we acknowledge the extraordinary accomplishments of this year’s Awards Recipients. A must-see event!

IN PERSON EVENTS

• Awards Celebration

• Opening Ceremonies

Copper outlook: World needs vs. industry means

TECHNOLOGY

Driving change for the next 100 years: Industry insights to the future of mining

NEW DISCOVERIES

• PDAC New Members Networking Event

• Student-Industry Mixer

ONLINE EVENTS

• Awards Celebration

• Coffee Chats

• Happy Hour with Duelling Pianos

• Life Member Event

• Program Breaks

SHORT COURSES

Sponsored by

Register for in-depth, educational courses led by industry experts. PDAC is offering four in person and four online courses this year.

Tom Palmer Newmont Corporation

Vanessa Davidson CRU Group

John Kilroe & Jennifer Maguire Rio Tinto Exploration Winu copper-gold deposit, Western Australia

Jeff Hanman Teck Resources Limited Innovation and the future of mining

PDAC 2022 Programming Register Now!

CAPITAL MARKETS PROGRAM

Sponsored by PearTree Securities

Access to capital is the lifeblood of the mineral exploration industry. The Capital Markets Program is intended to create a forum for dialogue on a range of topics related to the financing of mineral exploration.

IN PERSON: All Access Pass required

• A battery file push to net-zero industry: Call to action!

• Addressing the capital allocation question: How should miners balance growth and capital return?

• An intimate conversation with Alan Coutts, President and CEO of Noront Resources (session will be recorded and available online)

• Capital markets and the mineral sector: Investment banker perspectives (now offered in person only)

• Financing for mineral exploration

ONLINE: Online Pass or All Access Pass required

• An intimate conversation with Alan Coutts, President and CEO of Noront Resources

• Investor analytics: Below the surface of company reporting

www.pdac.ca/convention/programming/ capital-markets-program

CORPORATE PRESENTATION FORUM FOR INVESTORS

Sponsored by The Lind Partners

IN PERSON: All Access Pass required

The Corporate Presentation Forum for Investors (CPFI) is a popular series that features up-to-the-minute information on select exploration and development companies’ current activities and investment potential. PDAC’s primary objective is to create sessions of interest to investors, highlighting the scope of commodities and stage of development represented at the convention.

www.pdac.ca/convention/cpfi

EXECUTIVE SPOTLIGHT

ONLINE: Online Pass or All Access Pass required

Listen to C-suite executives from the world’s leading mineral sector companies discuss groundbreaking concepts. Join us for this unique thought leadership offering. Don’t miss out on this opportunity!

www.pdac.ca/convention/programming/ executive-spotlight

EXPLORATION INSIGHTS

Sponsored by Vale Canada Limited

IN PERSON: All Access Pass required

ONLINE: Online Pass or All Access Pass required A series of technical, policy and academic presentations offering insights into current and topical subjects.

www.pdac.ca/convention/programming/ exploration-insights

INDIGENOUS PROGRAM

Uncover the fundamentals of building cooperative, respectful and mutually-beneficial partnerships between Indigenous communities and the minerals industry. Indigenous leaders, industry experts and legal professionals exchange their vision of prosperity and reconciliation with PDAC’s global network.

IN PERSON: All Access Pass required

• Partnerships, Participation, and ESG-I: Canada and the emerging global paradigm for Indigenous communities and the mining industry

• Economic reconciliation pathways: Reimagining equity participation models (session will be recorded and available online)

• Empowering Indigenous entrepreneurs: Increasing industry participation through procurement, employee training and retention

• FPIC vs. collaborative consent: Navigating UNDRIP the right way

• Indigenous cultural awareness: How traditional values, teachings and knowledge have influenced the industry over the years

ONLINE: Online Pass or All Access Pass required

• Claiming your seat: Reflections on accelerating Indigenous representation in senior leadership

• Economic reconciliation pathways: Reimagining equity participation models

• Exploring the social impact of mineral development projects in Indigenous communities

www.pdac.ca/convention/programming/ indigenous-program

PDAC 2022 Programming

INDUSTRY SHOWCASE

ONLINE: Online Pass or All Access Pass required This new and exciting online program will host five-minute presentations on the latest trends, technologies, investment opportunities and tools in the exploration and mining industry. Join us for a look at what’s happening in the mineral sector!

www.pdac.ca/convention/programming/ industry-showcase

INTERNATIONAL STAGE

ONLINE: Online Pass or All Access Pass required The 2022 program will feature presentations from various mining jurisdictions, including Australia, Québec, Argentina, Kazakhstan, Geological Survey of Canada, and many others.

Applications are currently available. Take advantage of this opportunity to enhance your jurisdiction’s visibility, make a presentation and connect with prospects. Apply online using the link below.

www.pdac.ca/convention/programming/ international-stage

LETTER WRITER PRESENTATIONS FOR INVESTORS

IN PERSON: Open to all pass types PDAC’s Pieces of Eight. A free-flowing roundtable discussion with eight swashbuckling newsletter writers/ commentators who have all sailed the seven seas in search of mining investment gems and treasures.

Hosted by Peter Bojtos and moderated by Kai Hoffman, speakers include Brent Cook, Lobo Tiggre, John Kaiser, Gwen Preston, Joe Mazumdar and others.

www.pdac.ca/convention/programming/ letter-writer-presentations-for-investors

MASTER CLASS SERIES

ONLINE: Online Pass or All Access Pass required Learn from industry leaders as they share key insights and case studies throughout this new exclusive series of presentations.

Presentations by Teck Resources Limited, BHP, Rio Tinto, Vale Canada Limited and others.

www.pdac.ca/convention/master-class-series

MINING COUNTRY SPONSORS

PDAC is proud to welcome back our official mining country sponsors. For detailed program information, visit www.pdac.ca/convention/miningcountrysponsors

MINING FOR DIVERSITY

IN PERSON: Open to all pass types

Women in Mining Canada (WIMC) is pleased to host the Mining for Diversity event. Please join Trailblazer Award Winners and subject matter experts as they discuss key issues affecting the mining industry. Subjects will be based on the focus areas of award winners and will be announced prior to the event.

www.pdac.ca/convention/programming/ mining-for-diversity

PDAC ONE ON ONE MEETING PROGRAM

Sponsored by Nexa Resources S.A.

IN PERSON: By invitation only

PDAC, in partnership with Precious Metals Summit Conferences, LLC offers professionally organized one-on-one meetings, which bring qualified investors together with companies’ senior management. This exclusive program is offered in person only to a select group of confirmed Investors Exchange exhibitors, and carefully screened, qualified investors and portfolio managers from around the world.

www.pdac.ca/convention/programming/ pdac-one-on-one-meeting-program

PDAC 2022 Programming

SHORT COURSES*

Short Courses are in-depth educational sessions led by presenters with expertise in a variety of different subject matter.

IN PERSON

• The art and science of successful community engagement

• Digital exploration tools

• A practical guide to the fundamentals of mineral resource estimation

• Geophysics for geologists: A geologist’s perspective

ONLINE

• How to create value and manage risks in exploration

• Understanding public reports: Do they say what they mean and mean what they say – a technical perspective

• Geochemical modeling for ore body knowledge and exploration targeting

• QAQC methods in mineral exploration and mining with a focus on precious and critical metal data quality assessment

www.pdac.ca/convention/programming/ short-courses

STUDENT & EARLY CAREER PROGRAM

Select events sponsored by The Lundin Group

Students will have a unique opportunity to network with industry professionals at various events both in person and online.

IN PERSON: All Access Pass required

• Flash mentoring

• Forward looking: Preparing for a career in Geoscience (session will be recorded and available online)

• Guided tours of the exhibits

• PDAC-SEG Student Minerals Colloquium (see Page 28 for more information)

• PDAC-SEG Student Minerals Colloquium Awards

• Student-Industry Mixer

ONLINE: Online Pass or All Access Pass required

• Forward looking: Preparing for a career in Geoscience

• Next Generation Explorers Award (NGEA©) Challenge

• Resume review

www.pdac.ca/convention/programming/ student-early-career-program

SUSTAINABILITY PROGRAM

Sponsored by SLR Consulting

Join a facilitated multi-stakeholder dialogue and peerlearning on key issues related to responsible exploration and mining.

IN PERSON: All Access Pass required

• An intimate conversation with Alan Coutts, President and CEO of Noront Resources

• Going virtual: Hanging on to the learnings of digital community engagement and social media post pandemic

• Minerals are cool & sustainable … so is mining!

• Supply chains: Strategic local pawn on a global chessboard

• What does decarbonization mean for the junior mining sector? Why evolving investor expectations for producers may impact exploration sooner rather than later (IN PERSON) (session will be recorded and available online)

ONLINE: Online Pass or All Access Pass required

• Constructing sustainable relationships with artisanal miners

• Mining Association of Canada: Towards Sustainable Mining

• What does decarbonization mean for the junior mining sector? Why evolving investor expectations for producers may impact exploration sooner rather than later

www.pdac.ca/convention/programming/ sustainability-program

Proud

PDAC 2022 Programming

CLEAN ENERGY INITIATIVE

Sponsored by

As part of a new initiative to move towards a more sustainable convention, PDAC in partnership with Rio Tinto will use Bullfrog Power—a clean energy solution. Bullfrog Power provides the ability to offset all greenhouse gas emissions created by our convention by purchasing renewable energy. Bullfrog ensures that for every kWh of electricity used, a kWh of pollution-free, natural, renewable source is put back into the grid on our behalf.

Bullfrog Power will inject renewable electricity onto the regional grid to match the amount our event uses.

This new initiative to choose green electricity, will:

• Reduce the PDAC 2022 Convention’s environmental impact

• Create a healthier environment for families, communities and future generations

• Raise awareness of the choice that individuals and businesses have to support renewable electricity

TECHNICAL PROGRAM*

Monday In Person & Tuesday Online Sessions Sponsored by Teck Resources Limited

Tuesday In Person & Wednesday Online Sessions Sponsored by Rio Tinto

Wednesday In Person Sessions Sponsored by Agnico Eagle Mines Limited

Learn next and best practices while industry experts share timely insights during these dynamic series of presentations.

MONDAY, JUNE 13 – WEDNESDAY, JUNE 15

IN PERSON: All Access Pass required

• Archean gold deposits in Canada

• Commodities: Outlook for key materials (session will be recorded and available online)

• Commodities: The big picture (session will be recorded and available online)

• Copper: The big green metal

• Exciting new developments in North America’s midcontinent rift: Ni, Cu, Co, PGEs and other critical metals

• Exploration Challenges: Moon, Mars and Asteroids

• Geology & mineralogy of critical metals facilitating a low-carbon future

• Gold mineralization in Newfoundland

• Insights for the next generation geos

• New discoveries and developments

• New exploration developments and techniques

• Rock physical properties: Why bother?

TUESDAY, JUNE 28 – WEDNESDAY, JUNE 29

ONLINE: Online Pass or All Access Pass required

• A big challenge in diamond mine development: Diamond price estimation

• Accelerating to NetZero

• Commodities: Outlook for key materials

• Commodities: The big picture

• Geophysics

• Integrating artificial intelligence in exploration geology

• Managing tailings risk for a safer and more profitable future

• New discoveries and developments

• The future of the exploration business

www.pdac.ca/convention/programming/ technical-program

* Need professional development hours to maintain your professional designation? Upon request, PDAC will provide a certificate of attendance for the Technical Program and Short Courses to help you meet your CPD hour requirements.

PDAC 2022 Events & Networking

Register Now!

All events are subject to change

JUNE 13-15 In Person • Metro Toronto Convention Centre

Open to all pass types unless otherwise noted

MONDAY, JUNE 13

OPENING CEREMONIES

Join Alex Christopher, PDAC President, and other special guests as we mark the official opening of the 2022 Convention.

www.pdac.ca/convention/opening-ceremonies

PDAC NEW MEMBERS NETWORKING EVENT

By invitation only

PDAC is delighted to host an event exclusively for new members to network with PDAC Directors and fellow colleagues. This is an opportunity to meet with your peers, make connections, and discuss issues central to the mineral industry. Have fun with icebreaker activities for a chance to win prizes!

Not a PDAC member?

Join now at www.pdac.ca/members/membership

www.pdac.ca/convention/events-networking/ pdac-new-members-networking-event

TUESDAY, JUNE 14

STUDENT-INDUSTRY MIXER

Sponsored by

This event provides an opportunity for students, early career and industry professionals to network in a relaxed environment. The winner of the Mary-Claire Ward Geoscience Award and the ERM Bursary winners will be announced.

Student attendees will be entered in a draw for tuition top-up awards.

www.pdac.ca/convention/events-networking/ student-industry-mixer

TUESDAY, JUNE 14

AWARDS CELEBRATION

Sponsored by

All Access Pass or Exhibitor Staff Pass required

The PDAC Awards celebrates excellence in the global mineral exploration and mining industry. Join us as we acknowledge the extraordinary accomplishments of this year’s Awards Recipients. A must-see event!

Session will be recorded and available online.

Bill Dennis Award Charlie Grieg

Distinguished Service Award Keith N. Spence

Skookum Jim Award Colin Webster

Sustainability Award Sabina Gold & Silver Corp.

Thayer Lindsley Award Rio Tinto Exploration

Viola R. MacMillan Award Lundin Gold Inc.

www.pdac.ca/convention/events-networking/ awards-celebration

PDAC 2022 Events & Networking

JUNE 28-29 Online • Anywhere

TUESDAY, JUNE 28

OPENING CEREMONIES

Available for on-demand viewing. See details under the in person description on Page 26.

LIFE MEMBER EVENT

PDAC Life Members will enjoy an afternoon of comradery with guest speaker Tara Christie, who will share her career journey, beginning with her early days operating one of the largest placer mining operations in the Yukon, to her work as an executive running successful public companies, and her passion for giving back through supporting community initiatives and charitable organizations. The event will close with a music recital and an opportunity to reconnect with friends and colleagues.

www.pdac.ca/convention/events-networking/ life-member-event

AWARDS CELEBRATION

See details under the in person description on Page 26.

www.pdac.ca/convention/events-networking/ awards-celebration

WEDNESDAY, JUNE 29

HAPPY HOUR WITH DUELLING PIANOS

Sponsored by

Back by popular demand! Join us as our favourite duelling pianists celebrate PDAC’s 90th anniversary. Pour a drink, enter your song requests into the platform and watch your favourite tunes transform into a musical battle, all while chatting with fellow attendees online.

Duelling Pianos provided by A.B. Live Custom Entertainment.

www.pdac.ca/convention/events-networking/ happy-hour-with-duelling-pianos

All events are subject to change

For more information on all of the events and networking, visit www.pdac.ca/convention/events-networking

TUESDAY, JUNE 28 & WEDNESDAY, JUNE 29

ONLINE COFFEE CHATS

Sponsored by Grab a coffee and join us for Online Coffee Chats. Using networking software, attendees will be able to hop into discussion groups to chat with other attendees.

Coffee Chats will be offered twice daily. Select the time that works for you and add the date and time to your personal agenda in the platform.

At the time of your preferred Coffee Chat, click on the link within the online agenda. Visit the website for discussion topics.

www.pdac.ca/convention/events-networking/ online-coffee-chats

ONLINE PROGRAM BREAKS

Need a break? Join an online Program break including tours from the Royal Ontario Museum, CN Tower, Ripley’s Aquarium of Canada, the Toronto Distillery Historic District and the Toronto Zoo.

www.pdac.ca/convention/events-networking/ online-program-breaks

PDAC 2022 Exhibits

INDUSTRY SHOWCASE

ONLINE: Online Pass or All Access Pass required See Page 23 for the full program description.

www.pdac.ca/convention/programming/ industry-showcase

INVESTORS EXCHANGE

Sponsored by Vale Canada Limited

IN PERSON & ONLINE: Open to all pass types

Interested in investing in the exploration industry? Discuss investment potential with junior mining companies, mid-sized producers, major mining companies, financial institutions and prospectors to discover new business opportunities.

www.pdac.ca/convention/exhibits/ investors-exchange

PDAC-SEG STUDENT MINERALS COLLOQUIUM

IN PERSON & ONLINE: Open to all pass types

CORE SHACK

Sponsored by Barrick Gold Corporation

IN PERSON: Open to all pass types

Core Shack offers a venue for companies to display their core samples. Attendees have a unique chance to get a close look at projects that are generating exciting new drilling results. In addition to core samples, exhibitors will display maps, charts and technical information on their drilling projects.

www.pdac.ca/convention/exhibits/core-shack

EXECUTIVE SPOTLIGHT

ONLINE: Online Pass or All Access Pass required

See Page 22 for the full program description.

www.pdac.ca/convention/programming/ executive-spotlight

MEET OVER 800 EXHIBITORS

For a full list of exhibitors, visit www.pdac.ca/convention/exhibits/ exhibitor-directory

The Student Minerals Colloquium is a poster session that brings together geoscience students and industry professionals to highlight innovative student research on mineral deposit projects essential for the successful evolution of the modern mining industry.

www.pdac.ca/convention/exhibits/ pdac-seg-student-minerals-colloquium

PROSPECTORS TENT

IN PERSON: Open to all pass types Get back to the heart of the industry with a visit to the Prospectors Tent. Self-employed and independent prospectors will be there to discuss their maps, samples and claim results.

www.pdac.ca/convention/exhibits/prospectors-tent

TRADE SHOW

Sponsored by Caterpillar Financial Services

IN PERSON & ONLINE: Open to all pass types Visit the Trade Show to explore organizations and governments showcasing the world’s leading technologies, products and services, and meet government representatives from all around the world in one place.

www.pdac.ca/convention/exhibits/trade-show

PDAC 2022 Services In Person

AMBASSADOR PROGRAM

Sponsored by IAMGOLD Corporation

Look for Ambassadors dressed in gold T-shirts and caps. They will help get you where you need to go and answer your questions.

FREE HEADSHOT

Sponsored by Major Drilling

Need an updated headshot? Take advantage of this service, right on the Trade Show floor. Your professional photo will be emailed to you in real time. Perfect for websites, social media, business cards and more.

FREE WI-FI

Sponsored by BHP

PDAC Wi-Fi service is available throughout the MTCC (limited access in the exhibit halls).

LOUNGES: RECHARGE HUB

Sponsored by Hudbay Minerals Inc.

Want to relax and recharge? Visit the Recharge Hub equipped with charging tables to charge your mobile device. A great location to unwind or meet with colleagues and peers.

LOUNGES: TSX MARKET LOUNGE

Sponsored by TMX Group

Centrally located on the show floor, this sophisticated setting offers attendees a designated area to network, connect with colleagues, and execute impromptu meetings onsite. Furnished with contemporary seating, tables and chairs, this lounge is sure to be a popular destination.

Visit the TSX Market Lounge and connect with mining industry leaders, experts and stakeholders. Be at the centre of Canada’s global capital markets, as we host daily openings and closings directly from the show floor.

Online: Platform Technical Support

Sponsored by

We’re here to help with your questions during PDAC 2022— technical support will only be a click away!

MOBILE EXPERIENCE

Sponsored by BHP

Use your mobile device to easily browse up-to-date convention information including:

• Programming

• Events & networking

• Exhibitor lists

• And more...

www.pdac.ca/convention

NURSES STATION

Staffed by Registered Nurses who are capable of responding to a variety of emergency situations, and can also administer over-the-counter and prescribed medications to attendees. Stations are stocked with AED defibrillators and may also be used as a place to breast feed.

PLACES TO EAT

Select food concessions will be open and available to attendees.

Food Pavilion

Sponsored by Major Drilling

700 Café & Lounge

Sponsored by Freeport-McMoRan Copper and Gold Inc.

SME BOOKSTORE

Discount prices for PDAC attendees! The Society for Mining, Metallurgy and Exploration (SME) is back with their bookstore. Take advantage of show pricing from the most prestigious book publisher in the industry. Several new books will be showcased. Come early! Supplies are limited.

WATER STATIONS

Sponsored by Napier-Reid Ltd.

Fill up your water bottle at one of the two water stations located on the show floor.

PDAC 2022 Sponsors

DIAMOND SPONSOR

PLATINUM SPONSORS

MINING COUNTRY SPONSORS

PATRON SPONSORS

PDAC 2022 Sponsors

PREMIER SPONSORS

GOLD PLUS SPONSORS

®

THE ECONOMICS OF EXPLORATION FOR INDIGENOUS COMMUNITIES

When PDAC launched its current strategic plan in 2018, one of the cornerstones of the association’s work was to further its leadership role in promoting mutually-beneficial and successful partnerships between the mineral exploration industry and Indigenous communities. The objective stemmed from years of advocacy that led to PDAC signing a Memorandum of Understanding (MoU) with the Assembly of First Nations (AFN) in 2008, along with the gradual rise of our collaborative outreach initiatives over the past two decades with government and Indigenous communities, highlighted by the continual expansion of the Indigenous Program at our annual convention.

To foster a deeper understanding of the relationship between industry and Indigenous communities, and to further raise awareness about the opportunities, challenges and risks that exist, PDAC has released a new report—Economic Impacts of Exploration Projects on Indigenous Communities—to educate both industry and the general public about the exploration phase of the mineral exploration sequence, and how Indigenous communities can prepare and take advantage of the economic opportunities that arise from mineral exploration projects. The study, compiled from extensive research, surveys, interviews and engagement with Indigenous communities, was overseen by a panel of advisors who each brought regional expertise to the subject matter. Here are some of the major findings from the report.

EXPLORATION SPENDING, ECONOMIC OPPORTUNITIES AND IMPACTS

Mineral exploration contributes significantly to Canada’s Gross Domestic Product (GDP)—$2.1 billion in 2019 alone as seen in Figure 1—and the industry is proportionally the largest private sector employer of Indigenous Peoples in the country. With many Canadian mineral exploration projects and mines located in northern and remote regions close to Indigenous communities, such regions are wellpositioned to take advantage and benefit from direct and indirect business and employment opportunities that stem from exploration, mine construction, operation, and remediation phases of a mining project. Many communities in remote, northern and Arctic Canada, whether Indigenous or nonIndigenous, have sought or are currently seeking to realize the considerable long-term economic benefits that a producing mine can bring to their local economies, including:

• Hundreds of new direct mining jobs, and hundreds more in indirect jobs.

• Business opportunities tied to labour and capital-intensive activities required in mine construction and operation.

• New economic infrastructure, including improvements or installation of transportation, communication, power networks, and housing.

EXPLORATION SPENDING

EXPLORATION SPENDING

Mineral exploration is an important contributor to Canadian Gross Domestic Product, and is especially important to northern, rural, and remote communities. Every $1 spent on mineral exploration and mining generates between $1.25 and $1.75 in direct and indirect contributions to local, regional, and provincial / territorial economies. Communities with businesses capable of supporting exploration projects are better positioned to retain this investment locally.

Mineral exploration is an important contributor to Canadian Gross Domestic Product, and and remote communities. Every $1 spent on mineral exploration and mining generates contributions to local, regional, and provincial / territorial economies. Communities with projects are better positioned to retain this investment locally.

$2.1 billion estimated Canadian exploration expenditures in 2019, with majority occuring in Ontario, Quebec and British Columbia

Mineral exploration is an important contributor to Canadian Gross Domestic Product, and is especially important to northern, rural, and remote communities. Every $1 spent on mineral exploration and mining generates between $1.25 and $1.75 in direct and indirect contributions to local, regional, and provincial / territorial economies. Communities with businesses capable of supporting exploration projects are better positioned to retain this investment locally.

$2.1 billion estimated Canadian exploration expenditures in 2019, with majority occuring in Ontario, Quebec and British Columbia

$123M NL $49M NB $11M

ON $497M NS $36M

In the intermediate phase, a company may between $0.5 million million annually conducting drilling and supporting such as trail, road, and construction, small core shack operation up to 10 people, transportation, and logistics. In 2015, Goldcorp’s Borden Project $2 million within the economy.

In the intermediate exploration phase, a company may spend between $0.5 million and $5 million annually conducting drilling and supporting activities such as trail, road, and drill pad construction, small camp and core shack operation employing up to 10 people, transportation, and logistics. In 2015, Goldcorp’s Borden Project spent $2 million within the local economy.

In advanced exploration, where projects like Newmont Goldcorp’s Coffee Project and Osisko Mining’s Windfall Project can employee as many as 80 on-site workers, spending on bulk sampling, crushing, and excavation may top $20 million locally on an annual basis.

ESTIMATED EXPLORATION & DEPOSIT EVALUATION BUDGETS

ESTIMATED EXPLORATION & DEPOSIT EVALUATION BUDGETS QC $432M

In the intermediate exploration phase, a company may spend between $0.5 million and $5 million annually conducting drilling and supporting activities such as trail, road, and drill pad construction, small camp and core shack operation employing up to 10 people, transportation, and logistics. In 2015, Goldcorp’s Borden Project spent $2 million within the local economy.

In advanced exploration, projects like Newmont Goldcorp’s Coffee Project and Osisko Mining’s Windfall Project can employ 100 or more on-site workers. Spending on bulk sampling, crushing, and excavation may top $20 million locally on an annual basis.

Prospecting, Staking & Survey | $5 Hundred - $0.5 Million

Exploration (drilling) | $0.5 - $5 Million

Indigenous Consultations | $0.5 - $10 Million

Bulk sampling, drilling, shaft excavation | $10 - $50 Million

Feasibility Studies | $10 - $100 Million

Environmental Studies | $5 - $50 Million

10-15 YEARS

Figure 1: Exploration Spending in 2019. Photo Credit: Land and People Planning, Economic Impacts of Exploration Projects on Indigenous Communities.

Across the exploration sequence there are a vast number of opportunities Indigenous businesses can participate in and can benefit from. Figure 2 and 3 illustrate some of the key economic impacts, opportunities and services communities can pursue to support exploration operations, including:

• Provide key services to support exploration, including staking, line cutting, drilling, fielding assistants, wildlife monitoring, and camp operation.

• Increase existing service offerings to include specialized scientific services, including geophysical and geochemical surveying, and environmental baseline information gathering.

• Develop and encourage local prospecting and early exploration to attract investment to their territories.

• Provide construction and logistical support for drill programs and advanced exploration projects, including air and marine transport and building and improving infrastructure.

• Invest directly in exploration and mining companies and projects.

Additionally, communities can obtain project equity, as well as potential employment and business opportunities via an exploration agreement or other negotiated agreements with an exploration company. In the case of a mining company that has achieved production elsewhere, the agreement may include direct revenue participation.

The need to build and service projects can lead to many local procurement opportunities for Indigenous community-owned businesses and entrepreneurs, acting either independently or in a joint venture or other form of partnership with a more experienced or well-financed company. When at their best, these partnerships can create jobs and build lasting capacity within a community to take advantage of business opportunities in mineral development, and lead to further opportunities in other sectors.

Partnerships conceived for the dual purpose of generating revenues and creating jobs may require the use of existing training programs or the development of tailored programs to prepare workers for careers in drilling, construction, or other trades catered to the needs of the exploration sector or even specific projects. There are well-established government and non-profit organizations that can be engaged to accomplish training needs. Communities may seek out private companies that offer training opportunities in key areas, such as diamond drilling or heavy equipment operation. Communities can also work directly with exploration companies to encourage mentoring of community members in key technical skills such as environmental monitoring and sampling, or GIS to encourage entrepreneurship in explorationrelated trades.

ECONOMIC OPPORTUNITIES FOR INDIGENOUS COMMUNITIES DURING EXPLORATION

Canada’s Indigenous businesses actively participate in most of the central activities associated with intermediate and advanced exploration, such as drilling and core sampling. In addition, they provide key logistical services to support exploration operations, such as road, air and marine transport, line cutting and trail construction, provision of camp hospitality, catering, and security services, and fuel and energy resupply. Some communities are investing directly in exploration projects and building local expertise in prospecting and other early exploration activities.

The following guides and handbooks can help companies and communities plan for participation in mineral exploration and mining projects.

Aboriginal Human Resources Council. Navigation Guide: Major Developments – Aboriginal Partnerships.

Association for Mineral Exploration BC. Aboriginal Engagement Guidebook: A Practical and Principled Approach for Mineral Explorers (2015)

BC Assembly of First Nations. Economic Development Toolkit: Indigenous Leaders’ Business Partnership Roadmap (2019)

Canadian Career Development Foundation. Case Study: Mining Essentials: A Work Readiness Training Program for Aboriginal Peoples (2014).

Canadian Centre for Community Renewal, Tr’ondëk Hwëch’in, and Canadian Northern Economic Development Agency. Aboriginal Mining Guide: How to Negotiate Lasting Benefits for Your Community (2009).

Community Futures BC. Aboriginal Engagement Toolkit (2008)

Gordon Foundation. IBA Community Toolkit: Negotiation and Implementation of Impact and Benefit Agreements (2015).

Natural Resources Canada. Exploration and Mining Guide for Aboriginal Communities (2013)

Terrace Economic Development. First Nations Joint Venture Partnership Toolkit (2012)

Woodward & Co.. Benefit Sharing Agreements in British Columbia: A Guide for First Nations, Businesses, and Governments

Land-based Opportunities in Early Exploration

A community owned-business with limited experience in exploration can provide services to assist companies’ on-the-ground operations. Line-cutting and staking are both common ways for Indigenous businesses to become involved in the early exploration phase. These activities will require investment in safety and GPS training.

Invest in Early Exploration Activities

Investing in local prospectors to build local knowledge of potentially promising geologic deposits is a good way to attract exploration companies to a territory or region. Communities can work with governments and nonprofit mineral industry organizations to build awareness of prospecting techniques and opportunities in their traditional territories.safety and GPS training.

Project Equity & Revenue Sharing Agreements

Through exploration agreements or other negotiated benefits agreements, communities can work to obtain project equity or royalties, which may, in the future, pay dividends should the project become a profitable producing mine, or result in gain on the sale of the equity should the project be sold to a developer.

Opportunities in Construction & Logistics

Indigenous businesses can take on activities required to service a development program, including construction of drill pads, camp operation (including catering and security), and transportation of goods and supplies by ground and air. Communities possessing specialized transportation equipment and infrastructure can participate more fully on exploration projects in remote locations.

Grow Enterprises and Build Entrepreneurs around Environmental Monitoring

Businesses and entrepreneurs can develop the capability to help companies meet their environmental obligations, especially in the environmental assessment phase. A partnership with an environmental consulting firm can help Indigenous businesses enter the market and build capacity.

Grow Existing Services to Include Specialization in Geochemical & Geophysical Surveying

Experienced businesses operating in regions with known mineral resources and a significant level of exploration activity can develop and offer these technical services to prospectors and exploration companies.

Drilling

Experienced businesses that provide drilling services, either solely or in a joint venture or strategic partnership, increase the chances that a significant portion of an exploration company's investment in an annual drill programs creates revenue for the community. Equipment rental, leasing and financing options are available in the marketplace.

Invest Directly in Exploration Companies & Projects

Community development corporations can invest directly in exploration companies and projects with the hope of making a profit if the project is sold or proceeds to commercial production.

Figure 2: Economic Opportunities for Indigenous Communities During Exploration.

Photo Credit: Land and People Planning, Economic Impacts of Exploration Projects on Indigenous Communities.

ECONOMIC IMPACTS OF EXPLORATION PROJECTS ON INDIGENOUS COMMUNITIES

The Prospectors and Developers Association of Canada (PDAC) has prepared this report in order to build a greater awareness of the exploration phase of the mineral development sequence among Indigenous communities and help communities prepare to take advantage of economic opportunities associated with mineral exploration projects. The report identifies several opportunities communities and Indigenous businesses can pursue and actions they can take to capture as much project investment as possible within their communities. The report also aims to educate exploration companies, their contractors, and other stakeholders about steps they can take to ensure Indigenous communities and businesses can participate fruitfully in mineral exploration.

EARLY EXPLORATION

Key Activities

Surveying (Geophysical / Geochemical)

Rock, Soil and Water Sampling

Economic Impacts

Line Cutting & Staking

Servicing Small Camps

• Short-term, small-scale contracts for businesses with experience in field work, camp provision, or surveying

Key Risks to Indigenous Communities & Businesses

• Communities may miss out on opportunities to participate in later phases of the project, depending on how involved they choose to be during early exploration in their territories.

• Some projects may be incompatible with the community’s cultural, sustainability, or economic development goals.

• The regional market is too small or saturated to justify the investment in technical skills and equipment needed to develop businesses.

INTERMEDIATE EXPLORATION

Key Activities

Economic Impacts

• Seasonal contracts on drilling, logistics, construction, heavy equipment operation, and camp operation worth between $0.5 million and $2 million or more annually

• Seasonal employment opportunities for individuals on drill crews, providing camp services, operating a core shack or community office, and environmental wardens

Key Risks to Indigenous Communities & Businesses

• Lack of appropriate governance structures, managerial and business planning experience within a community development corporation can prevent the corporation from investing appropriately in capital and human resources

• Political interference in a development corporation’s operations can compromise efforts to establish strategic partnerships and obtain financing

• Indigenous businesses lacking the required human resources can be unprepared to respond to opportunities

• Limited capacity for effective community training programs

ADVANCED EXPLORATION

In knowing the opportunities and impacts, it is important that communities understand that the viability of the services being offered is highly dependent on three principal variables:

1. The level of early exploration activity

Sustained interest by multiple prospectors and companies within a community’s traditional territory or jurisdiction can potentially support a business or businesses servicing the early exploration sector.

2. A community’s ability to track and understand the level of early exploration initiatives in their territory

Without this knowledge, Indigenous businesses will be unable to market their services and plan for the expansion and development of early exploration projects.

3. The market must be strong

Economic Impacts

• Long and short-term contracts valued in the tens of millions over a period of several years focused on drilling, excavation, construction, logistics, and operation of a semi-permanent camp

• Significant direct employment opportunities for driller helpers, heavy equipment operators, camp services, security, and professional / managerial positions (e.g., human resources, surveying, geologists, environmental sciences and monitoring)

Key Risks to Indigenous Communities & Businesses

• Investments in assets and training can be jeopardized when projects are delayed or canceled

• Poorly structured partnership agreements can cause financial / legal challenges or fail to meet capacitybuilding objectives

• Existing human resources may not be appropriate for specialized equipment required in advanced exploration

• Limited capital and access to financing can prevent businesses from scaling up to fulfill contracts

The market for specialized services can be saturated by experienced providers. While an Indigenous community-owned business will typically enjoy some advantages in its traditional territory, new companies seeking to offer geophysical and geochemical surveying within mature mining districts with advanced exploration service sectors, may encounter difficulty penetrating the market. Furthermore, Indigenous businesses offering specialized services will need to demonstrate adequate levels of expertise, experience and competitive pricing.

RISKS, STRATEGIES AND RECOMMENDATIONS

As noted in the three key considerations above, the exploration phase of the mineral development sequence is highly dependent on the availability of financing and fluctuating global commodity prices, not to mention uncertainty surrounding the value of the deposit being explored. Therefore, the development of businesses solely dependent on this sector is fraught with risk. Indigenous businesses that invest in new equipment and training in order to participate in projects can lose that investment when a project, or group of projects, disappears or is substantially delayed.

Projects may be delayed or cancelled because a company exhausts its exploration budget, or the price of the underlying commodity does not justify continued investment. The fact that junior exploration firms tend to raise exploration dollars annually also makes it difficult for them to commit to long-term contracts. Consequently, impacted communities are often provided with short-term opportunities, which can make financing of equipment purchases difficult.

Figure 3: Economic Impacts of Exploration Projects on Indigenous Communities.

Photo Credit: Land and People Planning, Economic Impacts of Exploration Projects on Indigenous Communities.

Drilling

Key Activities

Excavation for Underground Work

Bulk Sampling of Ore

Building Permanent Infrastructure

COMMUNITY RISK MITIGATION & STRATEGIES

There are several steps Indigenous communities can take to make the most of the economic opportunities associated with mineral exploration, starting with the development of good governance and management models for their community-owned businesses. Exploration companies can help by engaging early and often with communities to build awareness of their projects and keeping the lines of communication open so Indigenous businesses can prepare to bid on contracts and build appropriate training programs.

EARLY ENGAGEMENT COMMUNITY CAPACITY

What communities should do:

Insist on Early Engagement with Proponents Communities should develop strategies or engagement protocols to engage proponents at the earliest possible moment in the project cycle. This is an important first step toward building an understanding of future economic opportunities.

What companies should do:

Engage Early and Often with Communities and Indigenous Businesses Companies must keep communities well informed about project planning on an ongoing basis so they have time to plan to take advantage of opportunities around the project and build a realistic understanding about potential economic benefits.

PARTNERSHIPS

What communities should do:

Strategic Alliances

Joint ventures with experienced companies or another community can help development corporations access the market for exploration service and supply, build internal capacity, and train employees.

Exploration Agreements

Exploration agreements can help communities build strategic alliances, prepare competitive bids, build training programs for community members, and establish future revenue sharing agreements should the project proceed to commercial production.

What companies should do:

Monitor Joint Venture Opportunities for Indigenous Businesses Companies should proactively identify opportunities where Indigenous communities and businesses can partner to build internal capacity and create value.

What communities should do:

Establish Good Governance Structures & Build Managerial Capacity

Community development corporations should take steps to ensure they are governed appropriately and remain free from interference by political leaders. Establishing an arm’s length board of directors to oversee budgeting and other key processes is an important first step. If necessary, experienced, qualified managers should be hired to oversee finances, investment in capital and human resources, and partnership agreements.

Land Use Plans & Mining Readiness Strategies

A land use plan can increase a community’s capacity to select the projects it wishes to become involved in and avoid conflicts with proponents and the Crown. A community mining readiness strategy based on input from community members, other communities, regional proponents, and other stakeholders can increase region-based preparedness for economic opportunities.

Inventory Community Assets & Skills

An updated inventory of community capital assets, local Indigenous businesses, and community skills can help inform discussions around participation in projects and capacity building with companies and joint venture partners.

Build Training Programs

Communities, joint venture partners, and companies should work with Indigenous Skills and Employment Training (ISET) agreement-holders and educational institutions to design appropriate training programs.

What companies should do:

Understand Community Capacity

Meeting with community members and economic development leaders to learn about community assets, including machinery, facilities, infrastructure, human resources, and portfolio of community-owned businesses is a good way to determine how Indigenous businesses can best contribute to an exploration project or strategic alliance.

Figure 4: Community Risk, Mitigation & Strategies. Photo Credit: Land and People Planning, Economic Impacts of Exploration Projects on Indigenous Communities.

Depending on the commodity, its future market outlook may be far from clear. This is more likely to be the case for rare earth elements and minerals that do not have well-known industrial applications or investment history.

Finally, the prospects for exploration success are typically slim and projects can fail to reach the development or production stages due to an array of factors, which can negatively impact service providers and related businesses. Communities should be mindful of potential liability they take on as a result of business initiatives they pursue. Figure 4 illustrates how communities can mitigate risk and implement strategies to reduce such risk.

In light of the challenges facing Indigenous businesses, the following five recommendations from the report are steps that governments and industry can take to improve the likelihood that Indigenous businesses can succeed in opportunities associated with mineral development.

1. Build governance capacity within Indigenous businesses

Federal and provincial governments currently provide funds to Indigenous communities to build consultation capacity, train workers, and assist in the establishment and growth of Indigenous businesses. Both levels of government should invest in funds that can deliver capacity-building programs to Indigenous communities in order to build and maintain appropriate governance structures around community-owned businesses, development corporations and strategic partnerships.

3. Study industry standards to review strategic partnership agreements

Industry groups, including PDAC and the Mining Association of Canada, as well as provincial and territorial prospectors and mining associations should work with Indigenous organizations to study existing standards in jurisdictions such as Nunavut for reviewing Indigenous joint venture agreements (and other strategic partnerships) to ensure they contribute to Indigenous community capacitybuilding objectives. Study findings can be used to assist companies and communities that lack existing policies or are developing new policies.

4. Build capacity around improved consultation and engagement within the exploration phase of the mineral development sequence

Governments, industry, and communities should respond to the Canadian Minerals and Metals Plan’s recommendation to develop capacitybuilding programs that support Indigenous participation in the mineral development industry. Support may include development of toolkits that combine existing regulations and existing best practices and standards to improve early engagement efforts and Indigenous community and business efforts to participate in exploration through building awareness of projects, strategic partnerships, and coordination with Tribal Councils and other community affiliations.

5. Support Indigenous prospecting initiatives in remote regions

2. Support land use planning and traditional use studies

Governments that have not already done so should provide Indigenous communities with funding to develop land use plans and undertake land use studies, including mapping of valued community resources to support community planning around resource development. This funding can help prepare communities to decide where or when they are best able to support and participate in projects. Funding should also support multi-community planning efforts around regional development in areas with proven mineral resources and potential for the development of shared infrastructure.

Emulating Québec’s support for the Cree Mineral Exploration Board and Nunavik Exploration Fund, federal, provincial and territorial governments should provide funding to Indigenous authorities and organizations, including First Nation Governments, Tribal Councils, Métis Councils, and Inuit Associations to raise awareness of early exploration opportunities and encourage |local prospecting in remote regions in order to attract investment. Check out the PDAC website to read the full report in Spring 2022

PDAC BOARD OF DIRECTORS

Officers

Alex Christopher President

Raymond Goldie First Vice President

Karen Rees Second Vice President

James Lusby Treasurer

Board of Directors

Rosario Astuvilca-Rojas Consultant

Charles Beaudry QC Copper and Gold Inc.

Bob Bosshard Retired Partner PwC LLP

Robert Boyd Endurance Gold Corporation

Alex Christopher Teck Resources

MaryAnn Crichton Hatch Ltd.

Conrad Dix Agnico Eagle Mines

Lana Eagle Lana Eagle Consulting

Elaine Ellingham Marienberg Minerals Ltd.

Jonathan Fowler J.A Fowler and Associates Inc.

Siri Genik BRIDGE

Raymond Goldie Independent Analyst and Director

Mary Louise Hill Lakehead University

Chantal Jolette Qualitica Consulting Inc.

Jessie Liu-Ernsting Keystone Resource Solutions Corp.

Gordon Maxwell Geologist

Karen Rees Consultant

Keith Spence Global Mining Capital

Aaron Steeghs Yamana Gold

Rob Stevens Pakawau Geomanagement Inc.

Jeff Swinoga Exploits Discovery Corp.

Ian Thomson Shinglespit Consultants Inc.

Kerem Usenmez Atom Bits

Raziel Zisman Alicanto Mining Corp.

PDAC Staff

Ariya Andrighetti Coordinator, Convention

Munisha Basiram Analyst, Indigenous & Regulatory Affairs

Zoe Bell Coordinator, Convention Presentations

Gillian Blakey Coordinator, Convention Exhibits

Lynn Bodwell Convention Marketing Lead

Kimberly Charters Coordinator, Convention Exhibits

Sandra Doig Coordinator, Membership, Administration & Reception

Danielle Gaudet Manager, Convention Operations

Pat Gramsch Coordinator, Convention Sponsorship

Lynda Joyet Senior Manager, Convention Events and Sponsorship

Madina Kaytmazova Manager, IT & Administration

Kristy Kenny Senior Manager, Communications

Sher Khan Coordinator, IT and Administration

Jeff Killeen Director, Policy & Programs

Joan Marilyn Leslie Chief Accountant

Florence MacLeod Manager, Member Engagement & Outreach

Ran Maoz Analyst, Tax Policy & Capital Markets

Mark McCleary Coordinator, Member Engagement

Lisa McDonald Executive Director

Krishana Michaud Manager, Student & Early Career Program

Maria Avramova Milanova Director, Operations & Human Resources

Andrea Murdoch Executive Assistant

Sarah Nazar Manager, Convention Programming

Jessica Provencher (maternity leave) Coordinator, Convention Exhibits

Nicole Sampson Director, Convention

Steve Shapka Analyst, Government Relations

Petrona Tulloch Staff Accountant

CORE

The Voice of Mineral Exploration

Winter/Spring 2022