Saskatchewan Mining Report 2016 Regina

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PotashCorp has announced plans to curtail production for four weeks this spring at its Lanigan mine, above, and its Allan mine. P OTASHCOR P

A TALE OF TWO MINERALS

INSIDE

Overproduction, low demand, weak prices dog potash, uranium mining

URANIUM

Miners bullish on future M4 G O O D WO R K S

Companies and staff give back M6 ENVIRONMENT

Province monitors impact of the industry M8 P O TA S H

Cost control the current focus M12 E DU CAT I O N

U of S offers undergrads mining-specific courses M15 Industry part of elementary curriculum M17

B RU C E J O H N S T O N E

With apologies to Charles Dickens, it was the best of times and worst of times for Saskatchewan’s mining industry in 2015.

Both production volume and value of Saskatchewan’s most important mineral resources — potash and uranium — were up in 2015 over 2014. And, for the first time ever, Saskatchewan was ranked second in terms of the value of mineral production among Canada’s mining provinces last year.

But by the fourth quarter of 2015 and first quarter of 2016, overproduction and low prices resulted in potash and uranium mine shutdowns and layoffs.

According to Natural Resources Canada, the value of Saskatchewan’s mineral production was $8.5 billion in 2015, with a nearly

20 per cent share of Canadian mineral production. Ontario ranked first at $10.8 billion, with a 25 per cent share, while Quebec ranked third at $7.7 billion (18 per cent) and B.C. fourth at $5.9 billion (14 per cent).

Potash production was up nearly five per cent in 2015 to 11.35 million tonnes from 10.8 million tonnes in 2014, NRCan says. Virtually all of that potash, close to 11 million tonnes, was produced in Saskatchewan.

“Potash remained the topranked non-metallic commodity by value with mine shipments valued at $6.7 billion in 2015,” NRCan says of the mineral used in the production of fertilizer.

“Potash’s growth of almost 20 per cent or more than $1 billion represents the greatest gain of all Canadian mineral commodities for 2015. This gain was the result of increased volume and positive impact of the exchange rate for domestic producers. Canada is the world’s largest potash producer.”

But despite the rosy picture painted by NRCan, Saskatchewan’s potash industry isn’t

exactly “in the pink” these days.

Weak global demand for fertilizer sent potash prices falling well below US$300 per tonne from a peak of about US$900 per tonne in 2008. The lower price forced PotashCorp, the province’s largest potash producer, to make some tough decisions in recent months.

Late last year, the Saskatoonbased company temporarily halted production at three Saskatchewan mines — Allan, Lanigan and Cory — and announced plans to speed up the planned closure of its Penobsquis mine near Sussex, N.B. Then this past February, PotashCorp announced that it would indefinitely shutter its new Picadilly, N.B., potash mine, resulting in the loss of about 430 jobs.

And for the first time since going public in 1989, PotashCorp slashed its quarterly dividend and announced plans to curtail production at its Allan and Lanigan mines for four weeks this spring.

PotashCorp says these “inventory adjustments” are expected to shave about 400,000 tonnes from its 2016 production.

While these decisions will have more impact on PotashCorp’s 2016 production, they’re unmistakable signs of an industry with

too much supply and not enough demand.

On a more positive note, K+S, Europe’s largest potash company, is still on track to start commercial production at its Legacy mine next year.

K+S Potash Canada’s $4-billion solution mine project near Bethune, 35 kilometres northwest of Regina, will be the province’s first new potash mine in 40 years.

And the world’s largest mining company, BHP Billiton, continues to work on its $3.8-billion Jansen underground potash project about 150 km east of Saskatoon.

Like potash, the uranium industry increased production last year. According to NRCan, uranium production jumped by more than half again to 14.8 million kilograms in 2015 from 9.8 million kilograms in 2014.

While the volume of uranium production increased by 51.4 per cent, the value of that production increased 62 per cent to $1.51 billion in 2015 from $934 million in 2014.

“Uranium recorded the largest overall increase for metal as its production value grew 62.1 per cent to $1.5 billion largely a result of production ramp up at the Cigar Lake mine,” NRCan says.

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Long-term fundamentals still strong: mining exec J O H N S T O N E F R O M M1

“Globally, Canada ranked second in uranium production.”

Unfortunately, the uranium industry, like the potash sector, has too much supply and not enough demand.

In April, Cameco Corp. announced the closing of its Rabbit Lake uranium mine, which will cost $35 million and result in all but 150 of the mine’s 600 employees losing their jobs.

The global market for uranium has been extremely weak since the 2011 Fukushima disaster in Japan led to the shutdown of more than 50 nuclear power plants, with reactor restarts coming much slower than expected.

Uranium prices have been spiralling downward since the tsunami struck Japan, from about US$70 per pound in 2011 to an 11-year low of US$26 in mid-April.

Saskatchewan Mining Association president Pam Schwann agreed the mining industry had more than its fair share of challenges and achievements in 2015.

“I think 2015 was a strong production year,” Schwann says.

“What happened in the fourth quarter was the companies realized that the markets just weren’t picking up and they were going to have to control their bottom lines and make adjustments.”

When potash and uranium producers realized that world prices weren’t getting any better, they had to cut production or shift it to more efficient locations.

“Production will become more concentrated in those operations

They’re not looking at markets five or 10 years out; they’re looking decades out. that are the lowest cost to operate,” Schwann adds.

“For potash, it’s going to be the potash mines on the eastern flank along the border with Manitoba at Rocanville and Esterhazy, and for uranium it’s going to be Cigar Lake and McArthur River,” Schwann says, noting those mines have among the highest grades and lowest operating costs in the world.

As for new mines, the two million tonnes a year of production from the Legacy Mine will probably replace some older, less efficient production K+S has in Europe, so it may not add significantly to overall potash production.

And it may be years, if not decades, before BHP’s Jansen project goes into full production.

“They’re not looking at markets five or 10 years out; they’re looking decades out.”

Still, Schwann says she’s “cautiously optimistic” about the industry’s prospects in 2016.

“I’m hoping we’re at the bottom in terms of prices,” Schwann said.

“Fundamentals are still strong in terms of what people use our resources for: feeding themselves and providing energy.”

Claude Resources’ two Saskatchewan gold mines extracted and sold more than 20,000 ounces of gold in its most recent quarter. CLAUDE R ESOURCES

Glittering results attract suitor to province’s lone gold miner PAU L S I N K EW I C Z

Saskatchewan’s only gold miner has its house in order, which is a good thing, because company is coming.

Claude Resources Inc. owns and operates two gold mines about 125 kilometres northeast of La Ronge.

It recently announced its secondbest quarterly result ever, with the company extracting and selling more than 20,000 ounces of gold.

This comes on the heels of news that a $337-million takeover bid

by British Columbia-based Silver Standard Resources Inc. was overwhelmingly endorsed by shareholders in special vote on May 18.

President and CEO Brian Skanderbeg said at the current market price for gold, Claude Resources is very profitable.

“We’re doing very well. Like most Canadian gold producers, the favourable impact of the currency on our business is being felt quite strongly,” Skanderbeg said of the company, which operates two mines — Santoy and Seabee.

“Claude in particular has done very well over the last two years and I would expect that to continue. We’re bringing a new ore body into production. We’ve done

a very good job of improving our cost structure, and are very profitable at these prices.

“We’re right around $1,600 CAD per ounce today, so that’s a very favourable cost structure for Claude, so I would expect us to have a very good year in terms of (our) ability to generate cash flow and adjust the operation as a whole.”

Skanderbeg said Claude Resources has made a concerted effort to reduce development and sustaining capital to bring costs down.

The company has also worked hard to reduce procurement costs on things such as steel and explosives, and has benefited from lower fuel prices for diesel and propane.

“On the revenue side of the equation, we’ve done a great job of bringing our production profile from 45,000 to 65,000 to 75,000 ounces over the last 2½ years and we expect that to be quite sustainable,” said Skanderbeg.

“So the combination of increased revenues from higher gold prices, and producing more gold, as well as reducing our overall cost structure has really done wonders in terms of our unit cost structure.”

Skanderbeg said Claude

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Resources has been a single asset company since it began production in 1991, and that has its challenges in terms of corporate risk, and flexibility to survive the challenging cycles that are inherent to mining.

“We’ve performed very well over the last several years, and out of

The combination of increased revenues from higher gold prices, and producing more gold, as well as reducing our overall cost structure has really done wonders ...

that good performance we had some strategic interest from not just Silver Standard, but a number of other companies that were interested in having discussions with Claude,” said Skanderbeg.

“We undertook a strategic review last year, and the conclusion of that was that the Silver Standard transaction represented the best path for our shareholders.”

Now with shareholder approval, Skanderbeg said the deal will be consummated by May 31.

Vancouver’s Silver Standard operates mines in Nevada and Argentina.

“It does bring about a number of other producing assets into a portfolio,” he said, adding that Claude will become part of a larger company with a stronger balance sheet and exposure of other jurisdictions besides Canada.

“That does reduce your risk and I think this is a very good benefit for Claude shareholders and it’s ultimately been reflected by how the stocks of both companies have performed since announcing the transaction.

“Both have done extremely well and our shareholders have been very strongly supportive on both sides for the deal.”

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Terry Davis took a group of media and visitors for a tour at the grand opening of the Cigar Lake Mine — one of the largest uranium mines in the world — last September. G OR D WALDNER

A POWERFUL INDUSTRY Uranium miners believe current challenges will give way to a brighter future JOEL SCHLESINGER

Cameco Corp., one of the largest uranium miners, opened Cigar Lake Mine in the fall, but closed Rabbit Lake Mine in April. B RU C E J O HNSTON E

The uranium mining industry has always been marked by hope, but shaded with pessimism.

The key fuel in nuclear energy, uranium is often seen both as pariah and white knight. The public’s perception of the resource has swung from distrust and fear — largely the result of high-profile incidents — to one of promise: a bountiful source of fossil-free energy to help mitigate climate change.

Certainly, the price for a pound of U3O8 — uranium in its commoditized, tradeable form — reflects this love-hate relationship.

Most recently, uranium’s price has embodied the negative side of this duality. For Saskatchewan, the second-largest uranium producer in the world, the low-price environment has been challenging to say the least.

Yet the province’s industry has reason to be optimistic about what lies ahead.

Saskatchewan’s leading producer, Cameco Corp., one of the world’s largest uranium miners, is among those bullish on uranium’s future.

Last fall, it officially opened the Cigar Lake Mine, one of the largest and most technically advanced mines in the world, accessing some of the planet’s richest deposits.

“Cigar Lake is the world’s highest grade uranium mine, with grades that are 100 times the world average,” Cameco spokesperson Carey Hyndman says.

China is the big growth story.

Ten years ago, they only had a handful of reactors, but they’re on a track in the next 20 years to have the largest fleet of nuclear reactors in the world.

R O S S M c E L R O Y, president, Fission Uranium

But the company had bad news as well. In April, Cameco shut down its Rabbit Lake Mine, laying off about 500 workers.

“We continue to face a challenging market environment that is currently in a state of oversupply,” Hyndman says.

Persistently low prices have strained the province’s producers over the past few years. The price for a pound of uranium hit about US$27 in late April — a dramatic slide from its heyday in 2007 when it sold for $136 a pound.

Back then, uranium was touted as a pillar of green energy because of its promise as a low-carbon energy source. Yet the Fukushima Daiichi nuclear plant meltdown in 2011, following a tsunami spurred by a major earthquake, changed the market outlook for the worst.

In large part, that was the result of Japan — a major consumer of nuclear energy — shutting down its fleet of more than 50 reactors.

Other nations put plans to build new reactors on hold, adding more downward pressure to prices.

Despite the recent challenges, the province’s industry remains optimistic in large part because producers and explorers are playing a long game, says Ross McElroy, the president of a junior exploration firm called Fission Uranium.

While the commodity is in the doldrums today, the expectation is for demand to pick up over the next decade.

“China is the big growth story,” McElroy says. “Ten years ago, they only had a handful of reactors, but they’re on a track in the next 20 years to have the largest fleet of nuclear reactors in the world.”

That’s why Cameco and another uranium giant, AREVA Resources Canada, are still investing heavily in developing Saskatchewan’s Athabasca Basin.

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The McArthur River uranium mine in northern Saskatchewan is the world’s largest uranium mine, solidifying the province as a major player in the global industry. P ET ER WILSON

So far the centrepiece of investment has been the Cigar Lake Mine, a partnership between the two companies. Like all uranium projects, it has been a long time coming, in the works for more than a decade.

Now complete, it will be a key piece of Cameco’s future, Hyndman says.

“It is one of Cameco’s Tier-1 assets with an estimated mine life through to 2028.”

The commencement of production at the mine was one reason the firm decided to idle Rabbit Lake for the time being. Cigar Lake’s production will significantly add to supply: an estimated 18 million pounds of uranium annually.

First discovered in 1981, the find

is the second-largest, high-grade uranium ore deposit in the world.

It has also been one of the more challenging undertakings — a deposit both remote and deep in the ground. And it has involved plenty of capital cost, more than anticipated. When construction began, its cost was estimated at $500 million, but it ballooned to more than $2 billion upon completion.

In part this was the result of bad luck. The mine flooded twice: in 2006 and again in 2008. It then opened briefly in 2014, but production was delayed to allow the ore body to freeze properly to facilitate extraction.

Now in production, Cigar Lake and McArthur River — the world’s largest uranium mine — solidify

Saskatchewan as a major player in the global industry, says Gary Delaney, chief geologist with the Saskatchewan Land Survey with the Ministry of the Economy.

“What really sets us apart from everywhere else is the deposits are very high grade compared to mines anywhere else,” he says.

It all has to do with the geology of the Athabasca Basin — tens of thousands of square kilometres in size, and about 600 kilometres north of Saskatoon.

“It has a unique set of geological conditions that have allowed for very concentrated uranium deposits to form,” Delaney says, noting it’s the location of all uranium mining in Canada.

Many companies working in the

basin are only now beginning to tap its potential. Fission Uranium, for instance, recently discovered a major deposit at Patterson Lake on the western edge of the basin. Most of the big mines operating now are along the eastern edge.

McElroy says the find is estimated at 108 million pounds of ore and growing — among the biggest discoveries in the basin.

Still, Patterson Lake South requires a substantial “capital investment of about $1.1 billion to put a mine into production,” he says.

“That’s a fair amount of cash; however, because it’s high-grade and near-surface, you end up paying that capital expenditure back in about a year-and-a-half of production.”

Already the company’s find has attracted a lot of attention from major investors, including a Chinese energy firm. While McElroy believes the project is feasible at current prices, its economics should only get better.

“Most observers expect the price of uranium will turn upward in the next two to three years,” he says.

Big players such as Cameco are upbeat, too.

“We expect that tough market to give way to strong long-term fundamentals driven by increasing population and demand for clean electricity,” Hyndman says. “Our strategy is to focus on our Tier-1 assets, such as Cigar Lake, and profitably produce at a pace aligned with the market.”

We see Saskatchewan’s prosperity rising to new heights.

We’re invested in the future of our province and our people. For decades,

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we’ve been building a legacy together that will stand the test of time.

The work we’re doing here will continue to have a global impact and provide local economic benefits for years to come.

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GIVING MONEY AND MORE Philanthropic projects rank high on the agenda for mining community NA D I A M O H A R I B

Saskatchewan’s mining companies do more than just extract resources. They also give back to communities and charities through a broad range of philanthropic projects.

In Moose Jaw, Mosaic Company partnered with the Wakamow Valley Authority and the Moose Jaw Multicultural Council on the Mosaic Community Food Farm project.

A $40,000 investment from Mosaic, plus the help of company volunteers, turned a piece of neglected land donated by the Wakamow authority into a vibrant garden.

Volunteers from the multicultural council helped watch over the plot, which yielded thousands of kilograms of fresh produce that was then donated to the Moose Jaw and District Food Bank, Riverside Mission and Hunger in Moose Jaw. “I think what touched me the most was when we brought the entire community down to the valley to see this plot of land and what it became, what the soil had grown for us and done for the community,” says Mosaic communications manager Marnel Jones.

“It was amazing to see all those buckets of potatoes and carrots come out and be hauled down to food banks.”

The hope is to continue the project indefinitely.

Of course, Mosaic is not alone when it comes to charitable deeds.

PotashCorp, with its 2,500 employees in five different mines, contributes one per cent of its pre-tax earnings to philanthropy.

Last year, that amounted to about $14 million in Saskatchewan.

The company’s donations are both big and small. It puts up $1 million annually toward several food banks through matching donations.

“Since 2010, between us and (the community), we have raised more than $15 million for food banks,” says PotashCorp spokesman Randy Burton. “We do tend to do these matching grants. It helps encourage people to step up.”

The company is also passionate about helping improve farming practices on the global front in countries such as Kenya, India and China.

“These farmers are dealing with small land plots, limited technology and poor tools,” Burton says.

Working with Free the Children, the charity spearheaded by brothers Craig and Marc Kielburger, PotashCorp has contributed $9 million over the past three years to help improve farming practices.

The company also sponsors youth and its own employees to travel to do front-line work in foreign countries.

Part of the hope is that “people will come home and tell their story and encourage others to get involved in whatever way they can,” Burton says.

The company also helped revive a neglected Saskatoon park.

A $7.5 million investment and a partnership with the City of Saskatoon brought new life to the historic Kinsmen Park.

“The whole thing was a big hit with the community,” says Burton, adding that four-times more people visited PotashCorp Playland than expected. “We couldn’t print the tickets fast enough. It has become a huge gathering point, particularly for kids.”

Cameco Corp. uses music to do good. Since its 2014 launch, the Cameco Cares concert series has raised more than $387,000 for Saskatoon hospital foundations.

Although the uranium mining giant supports many efforts — from youth education to literacy, health and wellness and community development — the concerts offer a prime example of how to engage employees for the greater good.

“Our employees like to roll up their sleeves and tackle community projects,” says Cameco corporate relations director Jonathan Huntington. “We very much want to get our employees involved in the community.”

Last year’s concert, featuring Huey Lewis and the News, attracted nearly 60 volunteers, the bulk from Cameco, to run the event.

“They are totally taken out of everyday roles at a mining company and working either security or as a ticket taker or behind-the-scenes helpers,” Huntington says.

It was amazing­ to see all those buckets of potatoes­ and carrots come out and be hauled down to food banks.

MARNEL JONES, Mosaic c o m m u n i c a t i o n s­ manager

This summer, Canadian songstress Sarah McLachlan takes the stage at the Delta Bessborough Gardens on July 20.

AREVA Resources Canada tries to be diverse in doling out dollars and in-kind donations to the community, says spokeswoman Veronique Loewen.

“There is always the mighty dol-

lar, so we make donations of course and sponsorships for various programs,” she says, adding a longrunning mentorship program has been particularly successful.

The program teaches children through play.

“It may be baking cookies but learning about measurements and a bit of chemistry, or it could be making castles out of Play-Doh, but you would have to, again, bring in measurements and volumes,” she says.

As far as hard dollars go, the uranium mining company which employees 480 individuals, makes charitable donations on a per employee basis, which in 2015 was $1,600 per worker.

This year, Cameco and AREVA also teamed up to form a legacy trust fund managed by an independent non-profit corporation.

The uranium companies hope to build the Six Rivers Fund, meant to pay for community improvements in the North, to a total of $50 million. This year, $100,000 was available.

Mosaic Company’s­ Mary Langman, land and minerals associate from the Regina office, shows off some of the produce­ grown at the Community­ Food Farm in Moose Jaw. M OSAIC

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CanNorth is a third-party company that monitors the environmental impact of businesses including Saskatchewan mining operations. CANNORT H

Province keeps close watch Mining operations in Saskatchewan currently maintain a high level of environmental compliance. ... If we see something ... then our ministry would undertake any enforcement.

W E S KO T Y K

E R I K A S TA R K

Throughout Saskatchewan, more than 30,000 people are working in the mining industry — exploring, extracting and processing several different resources.

As a world leader in both potash and uranium mining, Saskatchewan operations produce a lot of material and have a significant impact on the environment.

As a result, the provincial government keeps a close watch on mining operations to ensure the environmental impact is kept to a minimum.

That’s Wes Kotyk’s department.

“Mining operations in Sas-

katchewan currently maintain a high level of environmental compliance,” says Kotyk, executive director of the environmental protection branch within Saskatchewan’s Ministry of Environment.

The province doesn’t take a onesize-fits-all approach to environmental monitoring in the industry.

Rather, each company receives a specific set of guidelines and standards to meet for a project.

“Any mining operation is required to apply and have a permit from the ministry for constructing and for operating their facilities,” Kotyk says.

“There are some minimum

monitoring requirements depending on your operation, but the frequency and the type of samples that are required are dependent on the nature of the facility and the level of risk, where it’s located, what kind of operation it is, and some of the potential hazards that might be with that operation.”

Each permit identifies the minimum monitoring required for the operation, including soil, water, surface or air samples, and how often the operation needs to report back to the ministry.

The province then reviews the information and, in some cases, heads out to the site in person.

“If we see something, if there’s an activity or there’s an exceedance that is greater than what they’re allowed to do within their operating approval, then our ministry would undertake any enforcement,” Kotyk explains.

Many operations will contract out the monitoring to third-party companies such as CanNorth.

CanNorth’s work in the industry stretches back to 1981, when its staff was mainly aquatic biologists. Now, the company’s roster includes risk assessment specialists, toxicologists, hydrologists, wildlife biologists, botanists, archeologists and GIS specialists, as well as an array of office staff.

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CanNorth trains residents living in communities near mines to conduct environmental sampling so they’re capable of testing the quality of their water, air and soil. CANNORT H

for environmental infractions CanNorth is owned by Kitsaki Management Limited Partnership, the investment arm of the Lac La Ronge Indian Band. The company is 100 per cent First Nation owned — something Cassandra Rees says makes CanNorth stand out.

“Our extensive involvement in community sampling programs in the Athabasca Basin has allowed CanNorth to develop excellent working relationships with community leaders, elders, and community members in the region,” says Rees, a senior aquatic ecologist and project manager with CanNorth.

The company also “routinely” hires field assistants from local communities, providing tempo-

rary employment for many people across the province, Rees says.

Working with indigenous communities has led CanNorth to develop working relationships with more than two dozen First Nations and tribal councils in Canada, including many in Saskatchewan.

“These relationships have helped us incorporate more local involvement with our environmental monitoring programs and has resulted in more interest in establishing community-based monitoring programs,” Rees says.

These communities have a stake in environmental monitoring as well, given they are often situated downstream from mining or mill-

ing operations, she explains.

Initiatives such as the Athabasca Working Group monitoring program involve residents directly in the process. CanNorth trains residents to conduct environmental sampling so they’re capable of ensuring the quality of their water and air as well as the health of fish and wildlife.

“CanNorth maximizes indigenous involvement in projects, from integrating traditional knowledge in project planning, encouraging indigenous capacity-building through economic participation, training and employment, and supporting our clients to seek effective and fair engagement with

indigenous peoples, and during ‘Duty to consult and accommodate’ processes,” Rees says.

Thanks to companies such as CanNorth, environmental infractions at mining sites in Saskatchewan have been quite minor, Kotyk says, and any infractions are typically rectified immediately.

“There’s always room to improve so that with every inspection there are no minor infractions,” Kotyk says. “(Companies) are looking for efficiencies as well, but while doing that, they need to ensure that they’re balanced and meeting those minimum requirements and striving for best practices that are higher than the minimum standard.”

Our extensive involvement in community sampling programs ... has allowed CanNorth to develop excellent working relationships with community leaders, elders, and community members in the region.

CASSANDRA REES

“Where does one job equal three?

Only in my backyard.”

STEWART L AROCQUE

M INING OPER ATOR ALL AN, SASK ATCHEWAN

“I’m proud to be one of over 2,300 Saskatchewan residents who work for PotashCorp.

But I’m even prouder of this: for every person like me that PotashCorp hires, three more jobs are created. How’s that for positive economic impact? And they’re only in my backyard.”

PotashCorp.com/Nourish

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Teams compete in the 2015 Emergency Response/Mine Rescue Skills Competition, an annual event that helps strengthen skills. S ASKAT CHEWAN MINING AS SOCIAT ION

Safety top of mind at mines

Skills tests keep rescuers sharp and focused

Attention to safety includes training, talks, hazard assessments, upgrades

NA D I A M O H A R I B

It’s intense and tough, loud and proud and very competitive.

But make no mistake, the Emergency Response/Mine Rescue Skills Competition is more than fun and games.

Competitors from 18 teams will show what it takes to respond to real-life workplace safety incidents during the 48th version of this annual competition on June 4 in Saskatoon at Prairieland Park.

“It is pretty competitive, everyone wants to be their best, but ultimately it means being ready if and when co-workers need assistance,” says competition committee chairman Guy Hiltz.

With participants donning all the necessary safety gear during some events, the competition underscores the value of these team players while highlighting their safety skills.

And the event offers an impressive and comforting reminder of the level of expertise these responders possess.

“It’s a friendly competition and always a great learning experience,” says Doug Poole, safety, health and security manager at PotashCorp Allan.

“It is the only way you can put a guy under pressure and simulate the real thing.”

Competitors, who range from welders to electricians and equipment operators, will tackle everything from mock high-angle rescues to fire-fighting, mine incidents, first-aid conundrums and contending with people trapped in perilous situations.

“The main focus is to ensure they are prepared in case they are called up to respond to an emergency but, yes, there are bragging rights,” adds Brad Sigurdson, Saskatchewan Mining Association manager of environment and safety.

“Many men and women on our emergency response/mine rescue teams are also actively involved as local emergency response personnel in their hometowns. This further demonstrates the level of commitment and passion for the safety of others.”

Last year, the overall winner from an underground mine was PotashCorp Lanigan while the overall surface mine winner was PotashCorp Patience Lake.

An example of the strong commitment to safety in Saskatchewan came earlier this month when two operations earned national John T. Ryan Trophies. The trophies are awarded annually by Mine Safety Appliances Canada Ltd., as a me-

Top: A Rabbit Lake Mine Rescue (Cameco) member controls a fire during the mining emergency skills competition at Evraz Place in Regina. M I C H A E L BE L L Above: Brent Kyplain of Cameco’s Key Lake Mine competes in the surface fire event at a past competition. TROY F L EE CE

morial to company founder John T. Ryan.

National prizes go to the metal mine, select mine and coal mine that experienced the lowest reportable injury frequency per 200,000 hours in Canada.

This past year Cameco’s McArthur River mine won the national trophy for metal mines while Mosaic’s Esterhazy K1 mine took the same prize for select mines.

As well, Claude Resources Seabee operation took the regional safety trophy in the metal mine category for the Prairie provinces and Territories.

N AT I O N A L SAFETY WINNERS Two Saskatchewan mines won John T. Ryan national safety awards on May 3. The winners were: ■■ Cameco McArthur River mine in the metal mines category.

■■ The Mosaic Company Esterhazy K1 mine in the select mines category.

As well, Claude Resources’ Seabee gold operation received a regional (Prairie provinces and Territories) safety trophy in the metal mine category.

NA D I A M O H A R I B

THE NUMBERS

Safety is a shared responsibility in Saskatchewan’s mining community.

Rivals in the marketplace, mining companies are team players on the safety front, often working together to identify issues and find solutions.

“The committees I work with are absolutely fantastic, very committed professionals, passionate about what they do,” says Brad Sigurdson, Saskatchewan Mining Association manager, environment and safety.

“Even from a competitor — if someone has a question on the safety or environmental side, it is not competitive, it’s a shared interest.

“One of the tenets of the mining industry is safety is a value not a priority. Values are generally things you hold internally and are not really changeable whereas priorities come and go,” he adds.

There are layers upon layers of rules and regulations designed to keep workers safe on the job, whether underground or on the surface.

Attention to safety is relentless; an employee will experience everything from initial training to tool box talks, hazard assessments and ongoing skills upgrades.

Oversight is handled by both the federal government, with rules governing the use of explosives for instance, and provincial labour and workplace safety regulations.

Currently, industry and government are reviewing mine regulations with the goal of modernizing them. As well, contractors will soon be required to receive standardized training — a 30-hour course from Saskatchewan Polytechnic — before joining a work site.

“There are some really welltrained contractors out there and there are also some who show up to the site and you wonder if they have had any safety training at all,” Sigurdson says. While he won’t deny the job has its dangers, he adds that “because of the significant amount of engineering and policies and procedures in place, our industry is actually one of the safer industries in Saskatchewan.”

He has numbers to back it up.

The Saskatchewan Workers’ Compensation Board tracks injury rates, setting out how much companies are required to pay for benefits.

In 2016, the mining industry paid 40 to 70 per cent of what other industries paid because of lower injury and severity rates, Sigurdson says.

Last year, Saskatchewan mineworkers put in 16.8 million hours and experienced 20 lost-time injuries. There were no fatalities.

Veronique Loewen, a communications manager with uranium mining company ARIVA Resources

Fatalities in the Saskatchewan mining industry

7 19 21 17 11 6 5

1952 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 to present

Source: Saskatchewan Mining Association

Canada, is aware some might mistake mining as perilous work.

“However, the stats show, year after year, working at a mine site is actually safer — reports less injury — than most government jobs, health-care jobs or workers at a construction site,” she says.

“It is ingrained in people, they have to look after their own safety and that of colleagues.”

Doug Poole, manager of safety, health and security with PotashCorp’s Allan division, says a lot comes down to being ready.

“Emergencies don’t give you an invitation,” he says. “It’s just there and you have to respond. It’s always a surprise.”

In preparation and in times of crisis, companies often turn to one another to harness skills and expertise, underscoring an everpresent philosophy that safety is everyone’s business.

“That’s what is great about the Saskatchewan Mining Association Safety Committee,” Poole says.

“You put your company colours at the door and talk safety. I think mining companies in Saskatchewan have done an excellent job in mitigating the risks and keeping people safe.”

Unlike many fields where compliance to safety rules is akin to herding cats, it isn’t an issue in the mining industry, adds Poole, who has been in the business for 39 years and volunteered as an emergency responder after-hours.

“Compliance is very, very good,” he says. “It’s a get ‘er done culture.

A lot come from a farming culture where you fixed the tractor and get it back in the field no matter how you have to do it. Our culture is more, ‘Step back and think about the steps you are about to take and how you are doing it. Make sure you are not in the line of fire and following procedures.’ ”

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REGINA LEADER-POST

Saskatchewan potash firms are investing billions in upgrades to existing sites, while several new major mining operations are also taking shape. P OTASHCOR P

POTASH FUTURE SOLID But for now, low prices have Saskatchewan producers focused on cost control PAU L S I N K EW I C Z

As potash prices remain depressed, the watchword for Saskatchewan’s major producers in 2016 is cost control.

Prices for the fertilizer ingredient were more than $900 a tonne in 2008, but thanks to slumping demand for the mineral, they are now expected to stay in the $200 to $300 range for the next several years.

Already the world’s largest producer of potash, Saskatchewan had been enjoying the promise of even greater things ahead for the industry with firms investing billions in upgrades to existing sites and several new major mining operations taking shape.

The Mosaic Company alone has committed more than $3 billion to a new shaft at its Esterhazy mine.

The K3 development has been underway since 2013, and remains on schedule and on budget, says Bruce Bodine, incoming senior vice-president, potash.

“We continue to sink the shaft, and will be for the rest of 2016. Also, we are building an overland conveyance system that will transport ore from K3 to our mill at K2.”

Bodine says that when completed, K3 will be among the lowestcost, most-efficient mines in the world.

“We are confident that crop nutrient demand will continue its decades-long upward trend, and that tonnes from K3 will be critical in meeting that demand.”

The company has also committed to cutting $500 million in costs by 2017, and has been carefully weighing capital expenditures and production decisions, says Bodine, focusing on the things it can control in a tough price environment.

“We curtailed production at two of our mine sites in April to match supply with short-term demand.

We have also been aggressively managing our costs and the size of our workforce.

“The next 18 months will remain challenging, but in the long term, we know that people are still going to have to eat by producing more food on less land. We have always managed Mosaic for the long-term for success across the business cycle.”

In speaking about the first-quarter performance of PotashCorp, president and CEO Jochen Tilk says demand is likely to improve in India and China for the remainder of 2016. He also sees shipments in North America surpassing 2015 levels thanks to a favourable planting season for corn in the U.S. However, weak demand early in the year prompted PotashCorp to shutter its mine in New Brunswick and cut production in Sas-

The next 18 months will remain challenging, but in the long term, we know that people are still going to have to eat by producing more food on less land.

BRUCE BODINE

PotashCorp CEO Jochen Tilk says demand is likely to improve in India and China for the remainder of 2016, and North American shipments should surpass 2015 levels. ROY AN TAL

katchewan to match production with the market. Those moves are consistent with PotashCorp’s longstanding philosophy of matching its output with demand.

Despite those cutbacks, PotashCorp is nearing completion on the multi-year expansion to the Ro-

canville mine, and plans to spend $80 million in 2016 to bring its new shaft into production readiness.

“Being proactive also means optimizing our cost profile,” says Tilk.

“That includes focusing production at our lower-cost facilities while maintaining flexibility to

respond to customer needs. Rocanville is an integral part of our optimization plan. We’re nearing the final stages of its expansion and plan to begin ramping up capability later this year.”

Tilk says he believes that recent demand and price weakness in

potash are now in the rear-view mirror.

“Potash prices have stabilized in key regions and the psychology of the market is clearly turning,” says Tilk. “We see improving conditions for the remainder of 2016, but recognize that the timing and strength of a recovery is still unfolding.

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Key areas of focus are: • Mining Materials Research • Safety Research • Environmental Research • Indigenous Workforce Training IMII is supported by: Agrium BHP Billiton Canada Inc. Cameco Corporation K+S Potash Canada The Mosaic Company Potash Corporation of Saskatchewan North Rim Exploration Ltd. Government of Saskatchewan 201 – 112 Research Drive Saskatoon, SK - S7N 3R3 Phone: 306-668-2070 www.imii.ca REGXS350053_1_1

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PotashCorp is nearing completion of its multi-year Rocanville mine expansion, with plans to spend $80 million in 2016 to bring its new shaft into readiness. P OTASHCOR P

“Our approach to markets, like our approach to the balance sheet, will continue to be proactive and prudent.”

K+S Potash Canada is also targeting lower production costs with its Legacy solution mine, nearing completion near Bethune.

“With the Legacy project, we will have access to quality resources for generations to come, which will enable us to participate in the future market growth,” says CEO Norbert Steiner. “At the same time, we will be able to significantly reduce our average production costs.”

He says the project is right on time and within budget, and that

the plant will be commissioned this summer, as planned.

“We will produce the first tonne of potash by the end of this year and want to achieve an annual production capacity of two million tonnes by the end of 2017.”

In March, BHP Billiton announced that in 2016 it would spend $130 million less than originally budgeted on its Jansen Lake megaproject.

But with $200 million still earmarked for the project this year, and almost $4 billion already invested, Jansen Lake continues to progress. The surface work is largely done and the shafts are

more than halfway to their target.

It’s just a matter of letting demand catch up with supply, the company says.

“We’re actually progressing well in both shafts,” says Chris Ryder, BHP Billiton Canada’s head of corporate affairs.

“The Jansen project is still in the studies phase, although we’re doing a lot of work considering it’s in the studies phase, but the shaft digging is going really well right now.

I would say: ‘Bear with us.’ We’re not anticipating we’ll be producing anytime before the decade after 2020, but that’s still what we’re working toward.”

There are between 150 and 250 contractors working at the site, about 140 kilometres east of Saskatoon, doing the shaft sinking or running the surface camp and the associated water, sewage and power station utilities, as well as doing regular maintenance. Another 200 BHP employees work at the Saskatoon office, and when completed, the mine is expected to have a capacity of eight million tonnes a year and employ between 500 and 1,000 workers.

“Our intention is still to build a potential fifth business pillar for BHP Billiton, and we think we can do that with our investment in pot-

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Also east of Saskatoon, Karnalyte Resources is making plans based on both low production costs and a secured market for its product. It recently fired up a production well at its solution mine site near Wynyard, 190 km east of Saskatoon, for a full-scale demonstration of the underground leaching system.

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M14

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REGINA LEADER-POST

PotashCorp CEO Jochen Tilk believes recent demand and price weakness in potash are now in the rear-view mirror. POTAS HC ORP

‘FINANCIALLY ATTRACTIVE’ P O TA S H F R O M M13

In 2013, the Indian firm invested almost $45 million in Karnalyte for a 20 per cent stake in the company.

The agreement in principle would see GSFC guarantee loans and construction costs for the proposed mine in return for secured sales of more than half the potash produced in Phase 1 — or approximately 350,000 tonnes per year — with options on securing more sup-

ply moving forward, and resulting in sales of up to one million tonnes per year in Phase 3.

“We’ve been going back and forth getting our legal documents together, and we thought it would be a good time for them to come over,” says Robin Phinney, president of Karnalyte Resources.

“Basically, everything’s in agreement right now and we’re just waiting for our technical report updates, which we expect in the

first part of June. Then we can go to our shareholders and ask them if they’d like to do the financing deal.”

The demonstration well will be running for the next 51/2 or six months, and if the process goes smoothly, and shareholders greenlight the deal, they will be ready to begin a 24-month construction schedule after October.

“We’re able to make a very nice premium potash granular product that will have minimum grade of

97 per cent pure kcl (potassium chloride), and we think that’s going to be very attractive for the North American market as well.”

If approved, the mine will employ more than 300 people during construction, and then 100 fulltime staff on site after that, with another 40 people working in the head office in Saskatoon.

Phinney plans to use the success of the first mine to help Karnalyte spin off a second company to ex-

plore and exploit more resources on its 344 square-kilometre lease.

He says even in the current lowprice climate, Karnalyte’s operations will make money.

“We’re still quite financially attractive, even at these low potash prices. Our cost position was $130 per tonne, and re-doing our financials to reflect the new reality of lower gas prices and lower construction costs, is working in our favour.

“With our capital costs from our operations right now, we can actually attract equity and debt financing to do our project, which shows you the strength of the project,” he said.

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U of S offers mining specialization Focused courses give engineers edge in industry ALEX FRAZER-HARRISON

A new set of undergraduate courses at the University of Saskatchewan’s College of Engineering is helping open the door for students seeking to enter the mining field.

The “mining engineering option” courses in geological, chemical and mechanical engineering allow students seeking a bachelor of engineering degree the opportunity to take additional specialized classes related to mining. Announced in 2013, the first five students to enrol will graduate this spring.

“This means students taking engineering degrees in chemical, mechanical or geological can pick up these mining-focused classes. … We have a strong interest at home because there are still very large mining operations in Saskatchewan,” says Al Shpyth, executive director of the International Minerals Innovation Institute, which entered into a funding agreement with the U of S for five mining-related courses and the options.

Shpyth says this is a homecoming for mining engineering at the university; the U of S hasn’t offered it as a specialty since its Department of Mining Engineering closed back in 1976.

“We have other great colleges that are graduating people related to mining, many disciplines enter into the resources industry; this generation of miners wondered why (the U of S didn’t have a specialty),” he says.

Shpyth says the options are being funded in part through $1.6 million coming from industry and more than $400,000 from the university.

Aaron Phoenix, associate dean — academic, with the College of Engineering at the U of S, says the expanded mining options show its importance.

“Mining is a huge part of Saskatchewan industry and it’s very important for us to … do our best

For the first time, the University of Saskatchewan’s convocation will include engineering students who took a special mining option. R ICH ARD M ARJAN

to be responsible for those needs,” says Phoenix, adding that the options “open doors, and that’s important for us and important for the students.”

Despite the suspension of operations at Saskatoon-based Cameco’s Rabbit Lake uranium mine in April, Saskatchewan’s mining sector is still strong, and allowing students to take a mining-focused engineering option locally will be important to the industry, says Pam Schwann, president of the Saskatchewan Mining Association.­ “Our mines in Saskatchewan are a bit different than other areas in the country because we’re dominated by potash and uranium,” she

says, adding having access to information about that kind of mining prior to graduating will be a benefit.

“Labour market studies show engineering will still have growth opportunities … in electrical, mechanical, chemical, that are all part of the mining sector, so it’s still a good area to go into. There’s no reason why the U of S can’t be one of the top mining engineering (schools) in the country.”

Schwann notes that Saskatchewan Polytechnic has its second cohort of students enrolled in a Mining Engineering Technology program.

“We’re optimistic that between Saskatchewan Polytechnic and the

U of S, there may be an opportunity to ‘ladder’ those classes (in the future) so students that graduate from SaskPoly and want to go on to a full engineering degree will be able to get credit for some of the courses,” says Schwann.

Shpyth says the hope is to grow the number of students who sign up for the options.

“The intention of all the parties involved was … to explore building the options into a fully accredited undergraduate program again,” he says.

“We believe there is a need (for) new thinking, always getting that new fusion of someone just out of school. It’ll be a really nice boost.”

Labour market studies show engineering will still have growth opportunities …

There’s no reason why the U of S can’t be one of the top mining engineering (schools) in the country.

We’re building a Legacy.

K+S Potash Canada has seen tremendous growth since work on the Legacy Project began near Bethune, SK. There has been incredible progress both on-site and off-site, and we are excited to carry this momentum forward. We are looking forward to a long future operating and investing in the province of Saskatchewan.

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Saskatchewan Geological Survey Misc. Rep. 2016-1

RESOURCE MAP OF SASKATCHEWAN 2016 Edition

KEY TO NUMBERED MINERAL DEPOSITS † # GOLD 1. Box mine (closed), Athona deposit and NOLAN 1. Laird Island deposit 1# # Tazin Lake 4 Frontier Adit prospect 2. Nesbit Lake prospect Scott 2. ELA prospect Lake 2 # 3.

Arty Lake deposit 1 TALTSON # 3.

Pine Channel prospects 4. Pitch-ore mine (closed) 2# 3 TRAIN 3 ENNADAI 4. Nirdac Creek prospect DODGE ZEMLAK 1# 5 7 # 6 # 5. Beta Gamma mine (closed) 2 # 5.

Ithingo Lake deposit # 4 # # # # 8 4# 6. Eldorado HAB mine (closed) and Baska prospect BE 6. Twin Zone and Wedge Lake deposits 7. Eldorado Eagle mine (closed) and ABC deposit URANIUM 11 # # # 9 #6 19 # 5AVE # # 13 7.

Golden Heart mine (suspended) CITY 8. National Explorations and Eldorado Dubyna mines RL # 15 # 12 ### 22 # # 18 8. EP and Komis mines (closed) OD TANTATO (closed) and Strike deposit 16 # # 23 1 G 20 14 9.

Corner Lake deposit 10 # E 9. Eldorado Verna, Ace-Fay, Nesbitt Labine (Eagle-Ace) 1 24 # # 4 ## 5 2# 3 26 # 25 and Beaverlodge mines and Bolger Open Pit (closed) 10. Tower East and Memorial deposits 17 # # 2 11.

Birch Crossing deposits 3 ## 21 Lake Athabasca 10. Martin Lake mine (closed) Fond du Lac # Black STONY # 12. Jojay deposit 11. Rix-Athabasca, Smitty, Leonard, Cinch and Cayzor Lake RAPIDS MUDJATIK 13.

Star Lake mine (closed) Athabasca mines (closed); St. Michael prospect 27 14. Jolu and Decade mines (closed) 12. Lorado mine (closed) 53 # 15.

Jasper mine (closed) 13. Black Bay/Murmac Bay mine (closed) Fond du Lac River 16. Greywacke deposit 14. Consolidated Nicholson Bay and Fish Hook Bay 17. Roy Lloyd mine - Bingo deposit mines (closed) (suspended) 15. Gulch mine (closed) Hatchet 18. North Lake deposit 16. Gunnar mine (closed) Lake 19. Contact Lake mine (closed) 17. Stewart Island prospect CARSWELL 20. Preview North and South, PAP A, B, and C 18. Maurice Bay deposit STRUCTURE # 39 and PAP/Preview SW deposits 19. VIC Claims prospect 28 21. Sulphide Lake deposit # 20. Matthews Lake prospect Pasfield 22. Anglo-Rouyn tailings Lake 21. Fond-du-Lac deposit 31 32 ATHABASCA BASIN 35 23. Seabee mine (Claude Resources Inc.) 29 # 22. Charlebois Lake and David deposits 30 ### 37 # Wollaston Waterbury 24. Porky Main/West deposits 23. Mozzie Lake deposit # #7 34 # # # 36 Lake $ 5 Lake 25. Santoy 8/Santoy Gap mines (Claude # 7 24. Row, West Row and ART prospects 33 # 38 Resources Inc.), Santoy 7 deposit 25. Higginson Lake and Corrigan Lake prospects 26. Brownell Lake occurrences # 26. Paisley Lake prospect # 955 41 42 27. Manson Bay (Schotts Lake) deposit 27. Nisto mine (closed) 28. Eccles Lake (Dolly) prospect 28. Cluff Lake mine (closed) - D, Dominique-Peter, 43 # Claude and Dominique-Janine (North, EX OP, UG 29. Graham mine deposit # 40 30. Robinson Creek deposit 51 52 and EX Pods) deposits # 44 # Patterson 31. Prince Albert (Monarch) mine (closed) # 29. Shea Creek - Anne, Kianna and Colette deposits Lake # 45 50 # 32. Laurel Lake (Amisk Gold) deposit 49 # 30. Midwest mine - Midwest and Midwest A deposits 56 # Reindeer 33. Newcor, Bootleg (Rio), and Henning(not producing) (AREVA Resources Canada Inc., 57 # 3# 55 54 13 Maloney mines (closed) 69.16%; Denison Mines Inc., 25.17%; OURD 2 48 # # # 34. McMillan prospect Cree ## # 47 (Canada) Co. Ltd., 5.67%) 1 # 905 # 6 Lake 31. Roughrider and J Zone deposits # COPPER-ZINC N 32. Dawn Lake deposit 1. Janice Lake prospect Lake $6 SO 33. McClean Lake mine - JEB, Sue A, B, C and E 2. Jansem prospect T L # 46 deposits (mined out); McClean, Caribou, Sue D 4 # A 3. Frog Lake prospect T (AREVA Resources Canada Inc., 70%; Denison 4. Reef Lake prospect Mines Inc., 22.5%; OURD (Canada) Co. Ltd. 7.5%) 5. Discovery Lake prospect 34. Tamarack deposit 6. Brabant Lake PEG/McKenzie deposit Wasekamio 1 35. Eagle Point mine (Cameco Corp.)

7. Borys Lake deposit Lake 5 # 36. Collins Bay 'A' and 'B' Zone deposits (mined out) 7$ 8. Elizabeth Lake deposit 2# # 37.

Rabbit Lake mine (mined out); mill processing 5# 9. Anglo-Rouyn mine (closed) 58 # Eagle Point mine ore 10. Pitching Lake deposit Turnor 38.

Horseshoe and Raven deposits 11.

SAD Zone (HBED Zone) deposit Lake 8# 3# 39. La Rocque Lake deposit 12. Hook Lake (Gee Lake) deposit LA LOCHE Lac 40.

Paul Bay Ore Shoot deposit 13.

Brownell Lake deposit La Loche Frobisher 41. Cigar Lake mine (Cameco Corp., 50.025%; 14. Bigstone Lake deposit Lake $1 AREVA Resources Canada Inc., 37.1%; Idemitsu 15. Miskat Lake prospect 155 7# Uranium Exploration Canada Ltd., 7.875%; SOUTHEND 4# 6 5 16. McIlvenna Bay deposit 4# TEPCO Resources Inc., 5%) 8 #7 17. McDermott Lake (Balsam Zone) prospect # 42. Wolf Lake and Sand Lake deposits 18. Ramsay (Quandt/Keputch) deposit 11 # # ## 5# Peter Churchill 43.

West Bear deposit 9 # 10 6 19. FON and Abbott Lake deposits 12 Pond 44. McArthur River mine - McArthur River deposit 914 20. Schotts Lake deposit Lake 14 # Lake # 13 (Cameco Corp., 69.805%; AREVA Resources # 21. Otonadah Lake deposit 3 # Canada Inc., 30.195%) 8$ 22. Knife (Mokoman) Lake deposit 1 %# PATUANAK 22 # 15 45. McArthur River - BJ Zone deposit BUFFALO 23. Flin Flon and Callinan mines (closed) NARROWS 46. Key Lake mine - Gaertner and Deilmann 8# 17 102 24. Birch Lake and Flexar mines (closed) Ch 24 urc # # 16 deposits (mined out); mill (Cameco Corp., hil 25 25. Konuto Lake mine (closed) # 7 l Lac ## # # 83.333%; AREVA Resources Canada Inc., SANDY 26. Coronation mine (closed) 9 Ile-a-la23 BAY Crosse 16.667%) processing McArthur River mine ore 27. Grassberry deposit 10 # 59 # PINEHOUSE 47. Moore Lake - Maverick deposit; 525 and 527 28. Archibald Lake deposit LAKE 18 19 # 10 R i v e r prospects # # IRON FORMATION ## 20 48. Millennium deposit 4$ 135 # 1. Fish Hook Bay deposit 21 918 49. Centennial deposit 12 # 8 # # ## 2. Triana deposit Pinehouse 14 # 11 50. Triple R deposit 165 Lake 12 9 22 3. Spence Lake prospect 51. Arrow and Bow deposits Lac La 11 # # 4. Nyberg Lake (VH) deposit 28 20 LA % 2 52. Spitfire deposit # 5 # 5. Ithingo Lake prospect 165 RONGE 53. Black Lake prospect 27 # FLIN 155 Ronge 6. Kelsey Lake deposit Primrose 13 # FLON 54. Phoenix deposit 26 # Lake 7. Choiceland deposit 1 55. Gryphon prospect # 21 3% 106 RARE EARTH ELEMENTS # % 23 56. Mann Lake prospect 30 Dore 1. Hoidas Lake - Nisikkatch Lake (+ uranium 18 19 # 29 ## # 57. Harrigan Zone prospect Lake 33 # # 31 and thorium) # % 1 % 6 # %# 34 58. Burbidge Lake (BURR) prospect Deschambault #% 4 32 # 2 2. Bear Lake (+ uranium and thorium) 59. Duddridge Lake (Thor) deposit 24 # 3% Lake 165 16 # # #% 3.

Alces Lake (+ uraniium and thorium) 25 14 # 15 # 17 # COPPER-NICKEL-(PGE) AND 26 % 5 4 4. Oldman Lake COPPER-COBALT 6 27 # Amisk 5.

Archie Lake (+ thorium) Lake 1. Dianne Lake deposit Beaver River 6. Maw REE Zone 2. Dinty Lake deposit 7. Douglas River 3. Cole Lake prospect 8. Kulyk Lake (+ uranium and thorium) Montreal 28 15# 4. Currie Lake deposit and Pine Channel Lake Cumberland # KIMBERLITE MEADOW LAKE prospect Lake 1. Sturgeon Lake 5. Axis Lake and Rea Lake deposits 2. Candle Lake 55 6. Dumas Lake deposit 2 106 3. Fort à la Corne kimberlite field 7. Rottenstone mine (closed) 2 4. Star Kimberlite 8. Gochager Lake deposit 5. Pikoo 9. Mal Lake prospect 10. Triangle Lake deposit $ MISCELLANEOUS 2 11. Nemeiben Lake (Dunlop) deposit 1. Deep Bay graphite 12. Howard (Little Clam) Lake deposit 2. Pasquia Hills oil shale 6% #6 % $ 13. Swan Lake prospect 3. Bainbridge nodular manganese 3 2 4 14. Hidden Lake deposit 4. Pinehouse limestone 7% 15. Namew Lake mine (closed) (in Manitoba) 5. Wolverine Point phosphate 55 LLOYDMINSTER 1 r 6. Simonson Lake bitumen resource 7 e # LEAD-ZINC 3 PRINCE Riv 3 % # 7. Clearwater River bitumen show 1. Johnson Lake (Marina) prospect ALBERT an 4 2$ 4 ew 3 8. Peter Pond Lake bitumen show h % 2. George (Brakewell) Lake deposit atc sk 3.

Deception Lake prospect a S 4. Sito Lake deposit 5 % 5. Fable Lake deposit 3 6. Western Nuclear mine (closed) HUDSON BAY Ba MELFORT ttle NORTH % POTASH AND SALT Riv 3 er BATTLEFORD 1. Vanscoy potash mine (Agrium Inc.) and salt plant (NSC Minerals) % 8 2 11 2. Cory Division potash mine (PotashCorp) (by-product CaCl2 brine) 16 3. Patience Lake Division potash solution mine (PotashCorp) 4. Allan Division potash mine (PotashCorp) 6 5. Colonsay potash mine (The Mosaic Company) % 10 6. Lanigan Division potash mine (PotashCorp) 9 7. Esterhazy K-1 and K-2 potash mines (The Mosaic Company) and salt plant %4 1% (Compass Minerals) 8. Rocanville Division potash mine (PotashCorp) and salt plant (NSC Minerals) 11 HUMBOLDT 21 %%1 2% SASKATOON 9. Belle Plaine potash solution mine (The Mosaic Company) and fine salt plant 5 (processes waste salt from potash mine) (K+S Windsor Salt Ltd.) 2% %3 10. Unity solution salt mine and plant (Compass Minerals) 3% 1% 5% 11. Saskatoon chloride-based chemical plant (ERCO Worldwide) 4 12. Jansen project 4% Quill Lakes 5% 12 13. M & J project 19. Muskowekwan project % 6% 7 14. Wynyard project 20. Foam Lake project 5 % 13 % %6 15. Legacy project 21. Southey project 2 % 14 16. Milestone project 17. Kronau project KINDERSLEY 20 18. Sedley project % % SODIUM SULPHATE 1. Aroma Lake deposit 9. Vincent Lake deposit 19 % 2 2. Whiteshore Lake (Palo) deposit 10. Snakehole Lake plant (closed) YORKTON 3.

Lydden Lake deposit 11.

Verlo East deposit Last 11 Mountain 4. Muskiki Lake deposit 12. Ceylon Lake (Salt Lake) deposit Lake Lake Diefenbaker 5. Berry Lake deposit 13. Chaplin Lake plant (Sask. Minerals) 6. Little Manitou Lake deposit 14. Frederick Lake (Bishopric) plant (closed) 21 % 7. Bitter Lake deposit 15. Horseshoe (Shoe) Lake plant (closed) MELVILLE 8. Ingebrigt Lake plant (closed) 16. Sybouts East (East Coteau Lake) plant 16 (closed) Qu'Appelle River 10 %1 % POTASSIUM SULPHATE 1.

Alsask Lake plant (closed) 7% 2. Big Quill Lake plant (Compass Minerals) 15 %

W AT H

SS

NE

KI

River

W

E

NG

EY

RO

FL

IN

FL

G

%

LE

O

N

NN

IE

KI

Reindeer

SS

LA

RO

TT

EN

ST O

EY

NE

NE

W

M

W O LL

UD

AS

JA TI

K

TO N

A BA MA TH N O LI TH

PE TE R

LA

KE

Cree

Riv

er

# URANIUM

%

Y Y Y

%

%%

Y

Y

Ri

ve

r

YY

% % % % % % %% % % %%% %%%% % % %% %%

%

%

Y

So

uth

Sa

ska

tch

No

ew

rth

an

Sa

sk

Riv

at

er

ch

ew

an

Y

Y

% 1

10 %

21

7%

% 13

11 %

%8

%9

% 17

MOOSE JAW

SWIFT CURRENT

9%

% MAGNESIUM SULPHATE

REGINA

1

Old Wives Lake

1

2

14 %

12 %

13 %

% 18

is

ur

39

1

So

MAPLE CREEK

% 16

14 %

8%

15 % 2 3% %

4 %

4

ASSINIBOIA

%5 6%

Frenchman River

13

7 %

%8 9

21

2

%

10

WEYBURN 13

% 11

13 9

15 %

12

%

%

6

%5 LEGEND Uranium potential

Ri

ve

Base metal potential

Gas pool

Gold potential

Bitumen (oil sands) potential

Major peat resource potential

Potash and salt resource area

% 16

SCALE

Coal field

Carnallitic region (magnesium)

Helium resource potential

Commercial forestry

Although the Saskatchewan Ministry of the Economy has exercised all reasonable care in the compilation, interpretation, and production of this map, it is not possible to ensure total accuracy, and all persons who rely on the information contained herein do so at their own risk. The Ministry of the Economy and the Government of Saskatchewan do not accept liability for any errors, omissions, or inaccuracies that may be included in, or derived from, this map.

25

Edge of Precambrian Shield Precambrian domain boundary and name Major bounding shear zone Major fault 1

Road City

Y

ESTEVAN %6 6

%

SYMBOLS Oil pool

r

Town

25

†

0 0

25

50 25

75 Kilometres 50 Miles

Mine = Past and present producing mines Deposit = Developed prospect with or without calculated reserves/resources - numerous drilling delineated mineralized intersections (not NI 43-101 compliant in all cases) Prospect = minimum of three drilling-delineated mineralized intersections

Forest products mill

Recommended Citation: Saskatchewan Geological Survey (2016): Resource Map of Saskatchewan, 2016 Edition; Sask. Ministry of the Economy, Saskatchewan Geological Survey, Misc. Rep. 2016-1.

This map is available from: Saskatchewan Ministry of the Economy Internet download: www.economy.gov.sk.ca/resourcemap

1. Beechy plant (Touchwood Resources) % CLAY RESOURCES 1. Saskatoon clay quarry and plant (Cindercrete Products Ltd.) 2. Ravenscrag clay quarry (brick) (I-XL Industries Ltd.) 3. PR-1 and PR-3 clay deposits (stoneware) 4. Eastend clay deposit 5. Frenchman clay prospect 6. Wood Mountain - Fir Mountain kaolin prospect 7. Flintoft clay pit (refractory and ball clay) (closed) 8. Gollier Creek kaolin quarry (Whitemud Resources Ltd.) 9. Rockglen clay pit (brick clay) 10. St. Victor bentonite deposit (swelling bentonite) 11. Readlyn ball clay deposit and Willows clay pit (refractory and ball clay) 12. A.P. Green Claybank brick plant (closed) 13. Truax bentonite quarry (Canadian Clay Products Inc.) 14. Wilcox bentonite plant (Canadian Clay Products Inc.) 15. Willow Bunch clinker quarry (Colored Shale Products Inc.) % COAL AND PEAT 1. Lac La Ronge lignite (sub-bituminous) deposit 2. Carrot River peat moss mine (Premier Tech Horticulture) 3. Carrot River peat moss plant (Premier Tech Horticulture) 4. Hudson Bay area coal deposits 5. Poplar River coal mine (Westmoreland Coal Company) 6. Estevan coal mine (Westmoreland Coal Company)

% BUILDING MATERIALS 1. Neyrink Lake black and grey granite (diorite) building stone 2. Sahli green granite building stone 3. Deschambault marble (dolomite) quarry (Graham Construction) 4. Mystic Lake "Verde Antique" marble (veined amphibolite) building stone 5. McNally Lake buckskin marble (dolomite) building stone 6. Amisk Lake red marble (dolomite) building stone 7. Waskwei River cement rock deposit 8. Hudson Bay cement rock deposit % SILICA SAND 1. Bow River silica sand deposit 2. Nipekamew River silica sand deposit 3. Wapawekka Lake silica sand deposit 4. Hanson Lake silica sand deposit 5. Red Deer River silica sand quarry (Red Deer Silica Inc.) 6. CanFrac silica sand quarry

MINED IN S A S K A T C H E WA N In 2015, Saskatchewan companies unearthed 13 minerals, according to the provincial government. Here’s a look at the minerals, and some of the common uses for them:

This crystal nugget, shown close-up, contains copper. GET T Y I M AG E S

Bentonite: Drilling mud, winemaking, spa and detoxifying treatments.

Salt

Bentonite

Silver

Coal: Used in the generation of heat and electricity, activated carbon filters, carbon fibre products, some coals are used in steelmaking.

Gravel: Concrete, concrete blocks, road construction, asphalt, roofing shingles.

Potassium Sulfate: Fertilizer.

Copper: Pipes, electrical wiring, medical equipment, alloys.

Potash: Fertilizer, medicine, chemical industry.

Silver: Coins, jewelry, medals, electronics, mirrors, catalytic converters, batteries, electronic circuit boards.

Gold: Jewelry, coins, financial investment, electronics, dentistry, aerospace industry.

Salt: Food seasoning, preparation and preservation, cleaning, de-icing, water softening.

Sodium Sulfate: Soaps, paper, textiles, glass.

Zinc: Galvanized metals, alloys, organ pipes, paint, cable wrappings, nutrition, medicine, sunscreen.

Darren Oleksyn

Peat: Fuel, gardening, some Scotch whisky production.

Uranium: Nuclear energy, nuclear medicine, atomic dating.

SASKATCHEWAN MINING REPORT

F R I D A Y, M A Y 2 7, 2 0 1 6

REGINA LEADER-POST

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It’s important for students to have enough knowledge about the processes that are related to the sector so they can bring an informed voice to the discussion of resource extraction. Susan Nedelcov-Anderson, Ministry of Education

Ralf Maxeiner, with the Saskatchewan Geological Survey, leads Grade 7 student activities at MAP (Minerals and Products) 2015. P HOT OS: SASKAT CHEWAN MINING AS SOCIAT ION

STUDENTS DIG DEEP INTO MINING SECTOR Teaching about Saskatchewan’s vital mining industry inspires students to think about future career prospects, Erika Stark writes.

It’s one of Saskatchewan’s biggest industries, and by the fourth grade, students in the province are already beginning to learn about mining.

Uranium, coal, potash and other minerals are found in various parts of the province, providing thousands of jobs in exploration, extraction, refining and reclamation.

That’s why Saskatchewan’s education curriculum places an emphasis on teaching youngsters about the industry, even though it might be years before they start considering their job prospects.

“The mining industry is vital to Saskatchewan’s economy and it is one area where our students could potentially discover a rewarding career,” says Susan NedelcovAnderson, the director of the curriculum unit at the Ministry of Education.

“To prepare them for the transition as they move from high school out into the workforce, we want them to explore their interests, their skills, and their values when they consider their career options.”

The learning starts in the fourth grade, where students are taught the basics about rocks, minerals and erosion. In social studies, they begin assessing the impact of Saskatchewan resources and technological innovations on various communities.

In Grade 7, students start learning about the earth’s crust and resources within it, as well as how those resources are extracted.

“Given that the mining and resource sectors have significant impacts on our land, our water and our air within the province of Saskatchewan, it’s important for students to have enough knowledge about the processes that are related to the sector so they can bring an informed voice to the

discussion of resource extraction,” says Nedelcov-Anderson.

That discussion also needs to include teachers in the province, who are responsible for delivering the mining curriculum to students.

The Saskatchewan Mining Association works closely with the province’s teachers to develop curriculum and teach the teachers themselves about mining and exploration, says Kate Grapes Yeo, the education outreach co-ordinator for the association.

“All of our events, programs and lesson programs have been developed around the curriculum,” she explained.

The association’s longest-running program, called GeoVenture, takes groups of teachers up to various mines to learn firsthand about the industry.

“We would fly them up to northern Saskatchewan and tour them underground in a uranium mine so they can see the careers associated with mining underground, they would see the mining process and then we would go above ground and look at the surface,” she says. “We would also do a tour of the facility and look at the reclamation, the environmental programs as well.”

Teachers also visit coal and potash mines in the southern part of Saskatchewan, she adds.

“The teachers have time to talk to the people who are working in the mining industry about different careers,” Grapes Yeo said.

“The mining companies really enjoy doing these tours for the teachers,” she added. “They’re so passionate about what they’re doing and sharing.”

The mining association also offers Explore for More cards to career counsellors. The cards feature stories from people currently

Kate Grapes Yeo, education outreach co-ordinator with the Saskatchewan Mining Association, leads hands-on activities with schoolchildren.

It’s not just going underground and blasting and drilling.

The mining companies are like a whole community.

K AT E G R A P E S Y E O

working in Saskatchewan’s mining industry about what their jobs are like. There are about 120 different mining-related careers in the province.

“It’s not just going underground and blasting and drilling,” says

Grapes Yeo. “The mining companies are like a whole community. There’s the office, the cleaning staff or, up at the mines, the chefs who work in the camps, the chemists, the technologists as well as the engineers.”

Students in Grade 7 can also take part in the association’s Minerals and Products (MAP) program, which provides them with a stepby-step education on mining, from exploration all the way to reclamation.

The programs receive a “fabulous” response from the teachers who take part, says Grapes Yeo, and many of them take what they learn back to some optional courses for high school students looking to dig deeper into the mining industry.

A Grade 11 Environmental Science course teaches students about human population and growth, with the goal of investigating the

“technologies and processes used for mitigating and managing resource use, waste generation and pollution” associated with a growing population, says Nedelcov-Anderson.

In Earth Science 30, students learn about the process and technologies used in mineral extraction.

By the time students graduate, they’re well-equipped not only to consider a career in mining, but have an appreciation for and knowledge of one of the province’s most vital industries.

“We want them to develop an awareness of the major economic drivers that we have in Saskatchewan and how those relate to the courses that they’re actually taking in high school so they can better appreciate the value of what they’re learning in those courses,” Nedelcov-Anderson says.

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F R I D A Y, M A Y 2 7, 2 0 1 6

SASKATCHEWAN MINING REPORT

REGINA LEADER-POST

TIME FOR A NEW APPROACH Professor George Jergeas says a different approach is needed to keep billion-dollar projects on track, Paul Sinkewicz writes.

George Jergeas has seen billiondollar mistakes in his 35-plus years in the field of infrastructure project management.

He’s also seen a pervasive flaw in the thinking around megaprojects that all but guarantees cost overruns of 50 to 100 per cent.

“Fresh thinking is required,” Jergeas told more than 1,000 mining industry executives and suppliers at the recent Saskatchewan Mining Supply Chain Forum on April 13 in Saskatoon.

Jergeas is a professor of project management in the Schulich School of Engineering at the University of Calgary. He has been involved in both teaching and research in project management there since 1994 and is still active as a project management consultant, with experience with oilsands projects, hospitals, roads, bridges, tunnels, rapid transit and mining.

The Mining Supply Chain Forum is a joint venture by the Saskatchewan Mining Association, the Government of Saskatchewan and the Saskatchewan Industrial and Mining Suppliers Association. It started in 2009, drawing a modest crowd of 165. This year, more than 1,000 attendees packed the event.

Saskatchewan’s mineral sales to-

talled an estimated $8.5 billion in 2015, according to Natural Resources Canada, and more than 30,000 people in the province owe their livelihoods to the mining sector.

Jergeas delivered his keynote address on the topic of governing megaprojects, a topic he is passionate about.

A major flaw in the current system of megaprojects is the adversarial relationship at play, he says.

“It’s a relationship built upon ‘win-lose,’ ” Jergeas explains. “Whoever writes the contract wins, and whoever signs that contract loses.

It might be the owner of the project who is stronger, or it may be a large manufacturer. But whoever is in the stronger position will impose their own clauses and risk allocation.

“We really need to rethink the risk allocation exercise and how we contract each other.”

Multibillion-dollar projects have huge financial, labour and supply needs — all which stretch available resources to the limit.

“With megaprojects, the risks are unpredictable and there will always be 50 to 100 per cent cost overruns because of the fast track way these projects have run historically.”

Jergeas says big industry has developed a blame culture.

ADR IAN SHEL L A RD

We need two benevolent dictators who can make decisions: A project sponsor, responsible on behalf of the owner for ensuring implementation, then a project executive officer who can oversee

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PRACTICAL SOLUTIONS FOR THE GLOBAL MINING LIFE CYCLE

hierarchy.

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SASKATCHEWAN MINING REPORT “When we have cost overruns we start blaming each other. It might be the suppliers, or we might blame labour productivity.”

While assigning blame to inefficiencies in the labour force is common, Jergeas says poor management is the real culprit. For example, when materials aren’t ordered and delivered in a timely fashion, workers are idle and are less productive.

Other factors include not having the correct equipment, changes to designs and requirements. “I want to remove this myth. It’s not a labour issue, it’s a management issue.”

He points to an oilsands development under construction, with its unfathomable complexity and interconnected trades and suppliers dependent upon each other to make their part of the project work.

Jergeas advocates putting much more time and effort into the front end of any project, including getting more of the detailed design work completed before moving onto the worksite.

Improper scope at the beginning of a project is the No. 1 problem in any project, Jergeas adds. Owners must know what they want and have the proper plan for it.

“If you don’t know what you want, you are going to keep changing it and then blame the engineer who will blame the construction contractor who will blame the supplier, etc. So scope gives us the largest headache.”

After poor initial planning, Jergeas says disconnected project management is the perfect recipe for cost overruns.

“Working together and integrating is the issue,” says Jergeas. “We need two benevolent dictators who can make decisions: A project sponsor, responsible on behalf of the owner for ensuring implementation, then a project executive officer who can oversee all aspects of the project. We need a project team simple, clear and devoid of rigid hierarchy. We need to empower people to make decisions.”

Jergeas says changing the mindset is the most difficult thing to do, but urged his audience to try something new on the next project.

“If there’s anything you can get out of this presentation, it’s that we have to, as a community, do what we can to deliver our project in a different way.”

F R I D A Y, M A Y 2 7, 2 0 1 6

REGINA LEADER-POST

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People connect at the trade show at the seventh annual Saskatchewan Mining Supply Chain Forum last year. G OR D WALDNER

A model

In action Russel Metals is one of the largest metals distribution and processing companies in North America. In order to maintain our Regina position as a market leader, we Saskato Saskatoon endeavor to provide our customers with competitively priced, quality metals prod products (ferrous and non-ferrous) and timely delivery.

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XMD also provides explosive demolition services world-wide.

Explosive Courses

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XMD is a proud recipient of the 2015 Saskatchewan Mining Association Safety Award.

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F R I D A Y, M A Y 2 7, 2 0 1 6

SASKATCHEWAN MINING REPORT

REGINA LEADER-POST

C A N A D A ’ S M I N I N G I N D U S T RY

375,000

$57B

3,700+

18.2%

The approximate number of people across Canada who work in the mining and mineral processing industries.

The number of companies that supply engineering, geotechnical, environmental, financial and other services to mining operations, giving Canada one of the largest mining supply sectors globally.

$100,000+

Those who work in mining enjoy the highest wages and salaries of all industrial sectors in Canada, with average annual pay exceeding $100,000, which surpassed the average earnings of workers in forestry, manufacturing, finance and construction by a range of $21,000 to $33,000 for those sectors.

W H AT W E M I N E

Thanks to its rich geology, Canada is one of the largest mining nations in the world, producing more than 60 minerals and metals. Canada ranks in the Top 5 countries in the global production of 14 major minerals and metals:

Amount mining contributed to Canada’s gross domestic product (GDP) in 2014.

The per cent the industry contributed to the value of Canadian goods exports in 2014.

1st in potash 2nd in uranium and

$71B

niobium

The mining industry’s payments to Canadian federal and provincial governments in taxes and royalties from 2003 to 2012.

tungsten and platinum group metals

is the largest private-sector employer of aboriginal peoples in Canada on a proportional basis.

■■ Canada’s mining companies were the first in the world to develop an externally-verified performance system for sustainable mining, the Mining Association of Canada’s Towards Sustainable Mining initiative in 2004.

3rd in cobalt, aluminum, 4th in nickel, salt, sulphur

■■ Mining

and titanium

5th in diamonds, cadmium and gold

Sources: Facts & Figures 2015 (Mining Association of Canada)

Rough uncut diamonds. G E T TY I M AG E S

Five Divisions Strong MINING WIRE ROPE, ATTACHMENTS & EQUIPMENT

TRAINING

FROM THE GROUND UP

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ENGINEERED FALL PROTECTION

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