Government supporting First Nations engagement
Micro-mining: meeting First Nations’ needs economically and spiritually
Ekati donates 8th diamond to Stanton fundraiser
Diamonds brighten Canadian coffers
Canadian mining industry impacts economy
New standards in Labrador Inuit lands provide clarity for mineral exploration
Idle management earns energy action award
Ledcor awarded pre-construction services of the Ruby Creek Molybdenum Project
Nugget Pond produces its first gold bar
Uranium miners radiate optimism over northern deposit potential
Tamerlane Ventures reaches agreement with Katlodeeche First Nation
Learning and loving it at Diavik
Mining boom brings potential jobs, but is Nunavut ready?
Gitxsan at disadvantage to respond on proposed mine
A world of opportunity with Premier
Government supporting First Nations engagement
The Province of British Columbia has provided $100,000 to the Association for Mineral Exploration B.C. (AME BC) to support First Nations participation in B.C.’s booming mining and minerals sector, Minister of State for Mining Kevin Krueger announced April 3rd.
“By providing AME BC with this funding, we are enabling one of Canada’s leading mining industry associations with the means to assist B.C. First Nations in a meaningful and constructive way,” said Krueger, who made the announcement during a keynote address at the Kamloops Exploration Group (KEG) mining conference. “By supporting First Nations engagement we are building on the principles and approach of the New Relationship and building on our commitments established in the BC Mining Plan.”
The funding will be administered through AME BC and will increase B.C. First Nations’ awareness, knowledge and understanding of the mining industry. It will also allow First Nations representatives to participate at major mining conferences and events, including the Kamloops Exploration Group (KEG) conference, Minerals North and Mineral Exploration Roundup.
AME BC is an industry association leader in engaging First Nations. AME BC participated in a special First Nations and Mining Workshop held prior to Mineral Exploration Roundup 2007 and has developed an Aboriginal and Community Engagement Handbook for mining and mineral sector proponents.
“We are very pleased at the minister’s announcement of $100,000 to assist with First Nations community outreach. Mineral exploration and mining present unprecedented training and employment opportunities for First Nations communities throughout B.C.,” said AME BC president & CEO Dan Jepsen.
“There are 25 new mines in the environmental assessment process throughout the province and it is estimated that our sector will have over 8,000 new positions available in the next 10 years. This funding will play a key role in providing resources for First Nations to explore opportunities in mineral exploration and mining.”
AME BC is regarded as the predominant voice of mineral exploration and related issues in the province, and represents over 3,800 members. AME BC promotes a healthy environment and business climate for the mineral exploration industry on behalf of its members through leadership, partnerships and advocacy.
Micro-mining: meeting First Nations’ needs economically and spiritually
By Chief Glenn Nolan and Eric Hinton
Many First Nations communities have mixed feelings about mining. They can see that there is economic potential, but may be concerned about the possibility of negative impacts on the land – and they often find that the economic potential does not seem to turn into much real benefit. Even if the mining companies make a genuine effort to hire First Nations people, employment frequently doesn’t become long-term.
There are many reasons for this. The culture of a mine is often counter to First Nations values. Workforces are so large that people do not get to know each other well, and work groups may be so separate that people working for the same company never even meet each other. Employees can feel alienated from corporate management that is based in a distant city, perhaps not even on the same continent.
First Nations entities involved in mining need to be assured that archaeological sites such as this are protected.
Mining generally involves a sudden influx of employees – in many cases, almost all from outside the area – and a rapid expansion into an instant town. A few years or decades later, the ore body is exhausted, and the whole operation collapses as quickly as it grew. People in the area, even if they have learned skills useful in a mining context, may not be able to apply these skills again.
Is there a way to get the economic benefits of mining in a way that correlates with First Nations values, work styles and other realities?
Possibly, through “micro-mining.”
There are several differences between this and conventional, large-scale mining. These include:
- Relatively small mineral deposits, and generally at shallow depths – zero to 200 metres
- Organic growth through retained earnings and little up-front debt or equity financing
- Living within the means of the deposit – conserve capital and operating financial resources
- Thinking like a farmer – taking a long-term approach
- Smaller workforces, often involving mostly local residents
- In some cases – operating perhaps eight months a year, shutting down in winter
- Evaluating the exploration potential for nearby deposits, and repeating the cycle
This approach to mining is far from new. Historically and still in many parts of the world, it is the way mining has been done. But many of the smaller “junior” mining companies are reluctant to adopt it. One reason is that it doesn’t fit into their usual economic model, which involves building something that they can sell to a large, international mining company. Another reason is that the cost structures of micro-mining are unfamiliar. They may also be concerned about meeting regulations regarding environmental performance. Lastly, many juniors want to follow the larger companies, and go big.
From a First Nations perspective, there are several advantages to the small-is-beautiful approach. The scale can be kept manageable, within the capacity of a small community to do most of the work itself, calling upon outside expertise and other resources as needed. This means that employees will know each other – in many cases, will be related – and will look out for each others’ safety and other interests.
The working schedule can be adapted to First Nations’ cultural needs – possibly shutting down during spring and fall hunting seasons, berry-harvesting, or during the winter.
The slower speed of development means that members of the community, even if they do not work at the mine, will have the opportunity to build their skills in services such as trucking, food-service and machinery maintenance. They will be able to apply these skills elsewhere, creating a more sustainable economy.
There may also be significant direct economic benefits to the community and the Band through the company profits.
Assuming that mining exploration has determined that there is a viable ore body, the first two years of such a micro-mine might look something like this:
Year One – get underground: small hoist plant and shaft, lateral development of ore, set up for extraction and further exploration to keep the project sustainable;
Year Two – build revenue; operations include extraction work plus a review and update of the plan, environmental assessment for further mining, setting-up for exploration. Start building a small gravity concentrating mill only after the engineering studies are completed, and the decision to proceed has been made.
The relatively low costs of micro-mining mean significantly lower financing needs and concentrating on shallow deposits means quick positive cash flow. This allows the company to move into production stages quickly and without excessive expenditures.
To make this happen, a First Nations community needs to team up with several sources of outside help. This would start with commissioning a consultant to help with this. The consultant would help evaluate the feasibility of the local workforce and finding an ore body that meets a range of criteria regarding size, closeness to surface and grade. Other considerations include environmental factors and social factors, such as any impact on culturally-important areas.
The consultant should also be able to help work with financial sources to demonstrate the economic viability of the concept.
Choosing a consultant depends on a range of factors, particularly the person’s willingness to work within the community’s values, and willingness to meet other criteria for success, such as economic spin-offs for the community, the willingness to transfer skills to the community, and employ community members.
Done right, micro-mining can bring about significant, long-lasting economic benefits for a First Nations community.
Glenn Nolan is Chief of the Missanabie Cree First Nation, near Garden River ON.
Eric Hinton, P.Eng., is a Senior Mining Engineer in the Red Lake ON office of Golder Associates Ltd.
Ekati donates 8th diamond to Stanton fundraiser
The Ekati Diamond Mine has announced its continued support of the Stanton Territorial Hospital Foundation by donating the Ekati Stone for Stanton to Board Chairperson Jeanette Mills.
“[This] donation marks the eighth consecutive year that we’ve given a diamond to the Foundation in the spirit of healthy fundraising, and it’s a practice we will continue for the next two years, as part of our second five-year commitment to the people of the North”, said Richard Morland, Vice-President Operations for BHP Billiton’s Ekati Diamond Mine.
The Ekati Diamond Mine prides itself in its sustainable development practices – and it aspires to Zero Harm, which includes seeking ways to promote and improve the health of its workforce and the communities in which it operates.
Ekati’s Vision of Outstanding People, Superior Performance, and Proud Legacy is reflected in its partnership shared with the Foundation. BHP Billiton congratulates the Foundation Board of Directors for their steadfast dedication to raising funds to ensure that all Northerners have access to the best treatment and diagnostic equipment available.
The 2008 Ekati Stone for Stanton will help raise funds towards the Foundation’s Better Beds For You campaign. The diamond is a beautiful Aurias brand, princess cut diamond of 1.06 carats and bears the CanadaMark certificate of origin. The diamond is from BHP Billiton’s Ekati Diamond Mine and has an estimated retail value of $10,500 dollars.
Tickets to win the diamond are available for purchase at Birchwood Gallery where the diamond is on display. It will also be showcased at the Spring Trade Show on May 12-13, 2007 in Yellowknife where both the Stanton Foundation and BHP Billiton will have booths.
Diamonds brighten Canadian coffers
By Shirley Collingridge
While adventure and other tourism is rapidly growing in Canada’s North, the cornerstones of that economy are firmly imbedded in the mining industry. Mining of diamonds, gold, lead, zinc, oil and gas development, and traditional pursuits like hunting, trapping, fishing and arts and crafts bring the northern economy to life. In the Yukon, Northwest Territories (NWT) and Nunavut mining is, without question, the most important business activity, garnering millions of dollars annually through contributions to GDP (gross domestic product), labour income, employment and government revenue and royalties.
In the Northwest Territories alone, $260 million in annual diamond royalties reach Ottawa’s coffers. That is because, in the case of territories, the federal government retains the rights to Crown lands – along with all mineral rights.
Throughout 2005, $251 million in expenditures were paid out for Canadian diamond exploration. Thanks to this kind of investment, Canada currently has three diamond mines in production, with two new mines expected in 2008 and three prospects within five to seven years. During their lifetimes, these mines are expected to generate a cumulative $80 billion in GDP. Consequently, federal, provincial, and territorial governments could collect a cumulative $8.5 billion in royalties over the next quarter century. Another $6 billion would go directly to wages.
When Saskatchewan’s two planned mines come online in 2011 and 2013, royalties going to the provincial government for the next 25 years could average $130 million annually. Those royalties would peak at about $180 million annually for about a decade. These figures are subject to grade – the weight of diamonds expressed as carats per tonne.
After Ekati Diamond Mine went into production in 1998, real GDP in the NWT surged – bringing on a real growth of 10% from 1999 to 2005. Ekati and Diavik acutely affect the NWT economy – contributing about $1.8 billion annually.
Construction costs, in particular, impact local economies. Such was the case when Jericho Diamond Mine significantly impacted Nunavut’s economy, peaking in 2005 at $100 million in capital expenses for construction – and comprising almost 9% of Nunavut’s entire economy. Another $70 million in production revenue is expected annually.
In Ontario, Victor Mine contributed about .09% to the economy during construction phase.
In Saskatchewan, the Star Diamond construction phase is expected to provide 1% to the province’s economy in 2009. In 2011, Fort á la Corne’s construction phase will also bring in an anticipated 1%.
In the NWT, Gahcho Kue’s construction phase is expected to boost the economy by 8%.
All Canadian governments would reap approximately 13% royalties on production. Those royalties would translate, at peak, to $180 million for Saskatchewan and $300 million for the NWT.
Spin-off benefits also significantly impact the local, regional, and national economies. The diamond industry creates jobs in wholesale trade, transportation, services, diamond manufacturing and polishing. Cutting and polishing factories have begun to spring up across the country, bringing in additional revenue.
Ontario’s Victor mine is expected to employ 600 during construction phase and to maintain 400 full-time employees during production. Saskatchewan’s oncoming mines are expected to employ 1000 during construction phase and 500 during production.
In the NWT, the impact could go even deeper by helping the Territories achieve independence from the federal government.
Canadian mining industry impacts economy
By Shirley Collingridge
As we go about our daily routines – brushing our teeth, driving our vehicles and working at our computers, most of us give little thought to how much the mining industry contributes to that daily living experience. Many of us would be surprised to learn that the industry contributes ingredients that impact virtually every aspect of our daily lives – from toothpaste to car parts to computer chips. Mining impacts are also firmly entrenched in Canadian pocketbooks. The research and development, exploration and production elements of this industry send powerful economic currents through our economy.
Research and Development
As Canada pursues new and advanced technologies and strives to reduce the environmental footprint of the mining sector, research and development (R&D) expenditures continue to increase.
Mining and mineral-processing expenditures include mining and related support activities, primary metal manufacturing and non-metallic mineral and metal products. According to Natural Resources Canada (NRC), expenditures for that sector was expected to reach $538 million in 2006. That figure represents 3.6% of all Business Enterprise Expenditures – bringing this industry to ninth place out of more than 40 industries.
R&D expenditures for mining and related support industries are targeted to increase for the fourth consecutive year – this time by more than 4% to $70 million. Of those costs, mining captures approximately 80% while support industries capture 20%.
Higher education and government-related R&D centres now dot the Canadian landscape.
Exploration and Deposit Appraisal
Strong mineral commodity prices, high demand, and a favourable investment climate translate to intense mineral exploration and deposit appraisal activity. China and India continue to place high demands on mineral and metal commodities. Consequently, in 2006, nickel prices rose by more 150%; zinc rose by more than 125%; uranium prices nearly doubled.
Canada has become the foremost destination for exploration capital in the world. In 2005 alone, 19% of mineral exploration programs planned were in Canada. Canadian companies were also targeted to dominate the global exploration sector in 2006 and 2007.
As the frenzy of exploration activity continued into 2006, total expenditures reached $1.7 million – an increase of 32% from 2005. Today there are no signs of abatement; projections anticipate an increase of 9% up to 1.9 billion for 2007.
In 2006, off-minesite deposit appraisal expenditures exceeded $300 million for the first time since these statistics began being tabulated a decade earlier in 1997. This growth is expected to continue.
Last year all Canadian jurisdictions experienced expenditure increases, except Manitoba. The largest gains occurred in Saskatchewan, British Columbia and Quebec. All jurisdictions, with the exception of Alberta and the Northwest Territories, are expected to continue this increase through 2007.
Junior project operators surpassed seniors in total expenditures as early as 2004, and they increased from $141 million in 1999 to $1.1 billion in 2006. In 2007, total expenditure for juniors could reach $1.2 billion.
Expenditures for all commodity groups except coal increased over 2005. Precious metals took first place in 2006 at $667 million, with base metals at $380 million, diamonds at $303 million and uranium trailing at $190 million. Having doubled from 2005 to 2006, uranium expenditures are once again expected to grow – reaching a potential $241 million in 2007.
DID YOU KNOW?
- Coal production decreased in 2006, down 5.3% to $1.2 billion
- 2006 mineral production increased to $33.6 billion, a 22.7% increase over 2005
- Metallic mineral production reached $21.2 billion in 2006, up 45.4% over 2005
- Nickel production reached $6.2 billion in 2006 – up 75.9% from 2005
- Copper value increased significantly, up 78.8% from 2005
Zinc showed the largest percentage increase for metal in 2006, up 101.5 from 2005 - Nonmetallic mineral production decreased to $10.2 billion in 2006, down 2.7% from the previous year
- Although potash and diamond values declined in 2006, the actual quantity of diamonds produced increased
- In 2006, potash dropped – from second leading mineral by value of output in Canada to fifth place
New standards in Labrador Inuit lands provide clarity for mineral exploration
The Government of Newfoundland and Labrador has approved the new standards negotiated with the Nunatsiavut Government for mineral exploration on Labrador Inuit lands. With the new rules now in effect, companies exploring for minerals in the region have a clear path forward for their exploration plans.
“These new standards strike a balance between addressing the Nunatsiavut Government’s environmental concerns and creating the ability for mineral exploration to proceed,” said the Honourable Kathy Dunderdale, Minister of Natural Resources. “Thanks to extensive collaborations with the Nunatsiavut Government and consultations with the mineral exploration industry, we now have a system that respects everyone with an interest in Labrador Inuit lands.”
The new regulations only apply to the Labrador Inuit Land component of the Labrador Inuit Settlement Area (LISA). For the rest of the settlement area and the province, mineral exploration regulations have not changed in any way and continue to be in line with other Canadian provinces. The existing rules reflect that government’s highest priority in mineral development is protecting the natural environment.
To help industry understand the new standards, government is posting details of the new rules on the Department of Natural Resources web site. In addition, department officials will be meeting with mineral exploration companies in the weeks ahead to help explain the new standards.
“This announcement provides industry participants with the kind of certainty and direction they have been asking for,” said Minister Dunderdale. “We look forward to working with the Nunatsiavut Government to help realize the promise that mineral exploration represents in the Labrador Inuit Lands.”
Negotiations between the Province and Nunatsiavut Government began in 2006 after the Labrador Inuit Land Claims Agreement came into effect in December 2005. Establishing mineral exploration standards in the area has been a key priority for both governments throughout the process.
“I am very pleased that we have been able to work successfully with the Nunatsiavut Government to conclude the obligation under 4.11.6 of the Labrador Inuit Land Claim Agreement to establish standards for mineral exploration in Labrador Inuit lands,” said the Honourable Tom Rideout, Minister responsible for Aboriginal Affairs. “My staff and I look forward to continuing to work with our colleagues in the Nunatsiavut Government as they begin to assume increased responsibility for programs and services delivered to beneficiaries in the Inuit communities.”
In Newfoundland and Labrador, particularly in rural areas of the province, mineral exploration and mining is playing a critical role in sustaining and diversifying the economy. In 2006, estimated mineral shipments reached a record $2.6 billion. And companies spent $98 million exploring for minerals – a near record level of expenditure.
For more information visit: www.nr.gov.nl.ca/mines&en.
Idle management earns energy action award
By Shirley Collingridge
While the terms “idle” and “energy” do not typically go hand in hand, the team at Diavik Diamond Mines Inc. understands the connection very well. Canada’s second diamond mine saved thousands of litres of fuel and reduced greenhouse gas emissions by better managing truck idling times.
Diavik stops idling its 830E 240 ton haul trucks and saves hundreds of thousands of litres of fuel and 4500 metric tonnes of greenhouse gas emissions annually.
The genius behind this seemingly simple solution is Nick Strus. For his efforts, Strus earned the 2006 Arctic Alliance Energy Action award. The Energy Action Award recognizes the efforts of northern people, businesses and organizations that value and practice energy efficiency.
As maintenance planner, Strus formed part of Diavik’s 2005/06 team working on the Six Sigma Energy reduction project. The project’s initial goal was to reduce energy consumption of the 830E Komatsu, 240-ton haul truck fleet.
Nick Strus with the 2006 Arctic Alliance Energy Action Award.
Strus came up with a straightforward solution: reducing idling times would have a significant impact on fuel consumption. Collecting data to confirm his suspicions, Strus discovered that the haul trucks were idling as much as 15% of the time. In a climate where winter temperatures often drop below -40°C, idling is often necessary. However, why idle when temperatures are above zero, queried Strus.
Further investigation revealed some stunning facts. Trucks were left running at low idle (0-800 RPM) as much as 32% of the time. Another 10 to 15% of the time when temperatures fell below zero, the trucks ran at high idle (1100-1300 RPM).
Low idle burns 43 litres per hour; high idle burns 63 litres. Strus and his cohorts did the math. When the temperatures are above zero and trucks must idle for 15 minutes or more, they discovered, shutting off the engine would save as much as 80,000 litres of fuel annually. Involving all fleets of equipment would increase those savings to 700,000 litres annually.
They realized that shutting down idlers during 0°C and –20°C temperatures could further increase savings by a whopping 600,000 litres. The potential total: a cumulative 1.5 million litres of fuel per year at the Diavik site.
Strus’ concept was simple enough. However, implementing it would prove a challenge. The first hurdle, said Strus, was “Convincing people that the simplest way to save fuel is just to turn the trucks off when they aren’t being actually used to haul ore. It does seem a little silly – but it took a bit of effort.”
“We did a lot of calculations. We did some time studies, ran the numbers off and came up with a substantial amount of money,” he added.
Strus and his team shared its findings with employees, then instructed everyone to either remind drivers to shut down unnecessarily idling vehicles or to shut down units safely themselves. The statistics soon swayed employees. Now it was time to persuade the trucks to cooperate.
The trucks started well without idling at temperatures above zero – but below zero, engines growled angrily. When the mercury plunged to -20°C, those engines balked completely. To scale this second hurdle, Strus suggested installing diesel fired coolant heaters.
The heaters would also prove difficult.
“We had some problems because the heaters had never been used in a big haul truck like this before. So we were breaking ground, trying to figure out how to get them to work properly,” said Strus.
Resolving the problem took team effort.
“Terry Bradburn and Anand Sharma, our reliability engineer, quite a few people in the maintenance department and numerous other people were all involved,” said Strus. “Wajax supplied the heaters, which are manufactured by Espar. Transwest Mining Systems Inc. helped with adapting the units to the 830E haul trucks. The vendors helped out tremendously with parts problems. Komatsu helped us… with installing them in the trucks and making them work properly. Everybody put a lot into it.”
Now that the 830 trucks functioned well, the company decided to expand the program.
“We have moved it from the 830 trucks down to the 100-ton trucks,” said Strus. “We are also looking at options for the diesel dozers [and other equipment.]”
While the project’s focus was energy savings, Strus says a sidebar was huge savings on greenhouse gas emissions as emissions savings climbed past 4500 metric tonnes.
Strus himself has a personal interest in the environment. At his home near Yellowknife, Strus uses solar, wind and hydroelectric devices to supplement his diesel generator.
“I’ve been running windmills for about 20 years,” he said. “There is no electric power along the Ingraham Trail where we live. When we first moved out there, there were probably 20 to 30 families and everybody was using, primarily, diesel generators.” Strus’ own diesel generator runs only about 10 hours a week.
Energy savings simply make sense, added Strus, “Basically, I’m an old farm boy and I just don’t believe in wasting. Everybody can do [his or her] bit. It does not have to be a big deal. Just look around – you can always find some way to save.”
The Arctic Energy Alliance is a not- for-profit society established in 1997 to assist communities, the territorial government, business and consumers to work together to reduce the costs and the environmental impact of energy use and utility services in the NWT.
For more information, visit www.aea.nt.ca/awards.html.
The Diavik Diamond Mine, located 300 km. northeast of Yellowknife, Northwest Territories, is an unincorporated joint venture between DDMI (60%) and Aber Diamond Limited Partnership (40%). Both companies are headquartered in Yellowknife, Canada. DDMI is a wholly owned subsidiary of Rio Tinto plc of London, England, and Aber Diamond Limited Partnership is wholly owned by Aber Diamond Corporation of Toronto, Ontario. DDMI is the operator of the project. For further information, visit www.diavik.ca.
Ledcor awarded pre-construction services of the Ruby Creek Molybdenum Project
Adanac Molybdenum Corporation is pleased to announce that it has entered into an agreement with Ledcor of Vancouver, British Columbia to provide pre-construction services. Adanac and Ledcor have also agreed to explore the development of a partnering arrangement for construction of the Ruby Creek Project.
Adanac believes that this agreement represents a key factor for the successful completion of the project. The inclusion of Ledcor into the project team at this time is a proactive approach by Adanac to address the significant challenges presently being faced by industry. Detailed construction planning will begin immediately in order to identify long lead procurement items and efficiently recruit qualified construction personnel.
Ledcor is one of the largest construction companies in Canada and recognized internationally as a leader in the implementation of multi-discipline heavy industrial projects. With over sixty years experience in northern Canadian construction, Ledcor is exceptionally qualified to lead the construction of the Ruby Creek Project. Ledcor will utilize its considerable expertise and resources in the planning and execution of “construction driven” projects to allow more effective control of the project schedule and budget.
Adanac and Ledcor share a commitment to the successful development of the Ruby Creek Molybdenum Project based on the key elements of safe work practices, high employee health and environmental standards and developing long-term community based relationships. Ledcor has an excellent reputation of working with local and First Nations contractors and tradespersons during construction that is consistent with Adanac’s long term commitment to the local community.
The Ruby Creek Molybdenum Project is a major new mining venture in British Columbia. This important molybdenite resource is projected to operate at 20,000 tonnes per day for more than 20 years and will create over 200 full time jobs. Molybdenum production in the first five years is expected to be 60 million pounds. Long term effects on the environment are projected to be minimal.
Nugget Pond produces its first gold bar
The Baie Verte Peninsula is now producing gold bars destined for the Royal Canadian Mint with the successful restarting of the Nugget Pond processing facility, just outside Snook’s Arm.
Crew Gold (Canada) Ltd. has reported its first gold pour at the facility, which it acquired last fall to process gold ore shipped into the province from its gold mine in south-western Greenland. Each bar is a mixture of mainly gold, with some silver and base metals, and weighs around 20 to 25 kilograms. The bars are then sent to the Royal Canadian Mint for further refining.
The first gold bars produced at the Nugget Pond facility.
“This is great news for the people of Baie Verte and the employees of the Nugget Pond facility,” said the Honourable Kathy Dunderdale, Minister of Natural Resources. “The company has been using lower grade ore to get the plant up and running and test the equipment. The successful pouring of the first gold bar is a very significant development that signals the return of gold production to the Baie Verte Peninsula.”
Crew Gold brought in its first shipment of gold ore to the Nugget Pond facility in February. The company currently has 23 full-time employees and more than 20 contractors providing security, trucking and janitorial services. A planned expansion later this year to increase capacity from the current 425 tonnes to 600 tonnes per day is expected to create another seven to nine full-time jobs.
“This first gold pour for Crew Gold is significant event for a number of reasons,” said Paul Shelley, MHA for Baie Verte. “It not only represents the successful reactivation of Nugget Pond mill, but more importantly it is the first time in our history that ore has been imported into this province for processing. This project along with Rambler and Pine Cove once again is making the Baie Verte Peninsula the mecca of mining on the island. It also shows what I’ve known for a long time – that miners from the Baie Verte Peninsula are among the best in the world.”
The mining industry is a significant contributor to rural Newfoundland and Labrador, with mineral shipments expected to top $3 billion in 2007 and exploration expenditures to reach $98 million.
Uranium miners radiate optimism over northern deposit potential
By Bob Weber
Uranium miners and explorers radiated optimism recently at a Nunavut mining symposium held in April where the silvery metal took the spotlight away from Arctic gold and diamonds.
New scientific research presented to delegates suggests areas of Nunavut are tantalizingly similar to parts of Saskatchewan that are sometimes referred to as uranium's Saudi Arabia.
“It just gets more and more interesting,” said Charlie Jefferson of the Canadian Geological Survey, which is in charge of assessing Canada's uranium reserves for Natural Resources Canada.
Northern Saskatchewan's Athabasca Basin contains by far the globe's purest uranium deposits and is the main reason why Canada is the biggest exporter of the mineral in the world.
Miners have known for decades about further deposits in the Thelon Basin south of Baker Lake in Nunavut. But Jefferson's research is beginning to suggest the Eastern Arctic could be another Athabasca.
“They're amazingly similar in general ways.”
The basins share the same age, geologic history and structure. They contain similar minerals and seem to have been shaped by the same processes.
In Saskatchewan’s Athabasca area, an underground sandstone basin was filled with 200 million years worth of crushed granite and shale rubble. That rubble was originally rich in uranium, but it has since separated out and concentrated in underground fault lines.
Jefferson said the same thing seems to have occurred in the Thelon.
“The Thelon has the same evidence. There’s no uranium in the sandstone (but) there’s uranium-rich rocks around (the basin).
“The uranium’s gone somewhere.”
Maybe to the Kiggavik deposit, hopes Barry McCallum of Areva Resources Canada. The subsidiary of the French-based Areva Group plans to spend $10 million this year on some final drilling before deciding whether to go ahead with a mine.
“The potential is quite significant,” he said from Baker Lake.
“We hope to be the first mine.”
McCallum said Areva expects to be able to make a decision by October about whether Kiggavik would be economic.
It would be another eight years before the mine would produce uranium, he said, but even that would probably be “a fairly aggressive schedule.”
The market appears to be encouraging.
From a low of $7 a pound in 2001, uranium has soared to more than $110. Some analysts predict prices will continue to rise to $140 later this year and $160 in 2008.
Dozens of new nuclear plants are on the books around the world as utilities seek alternatives to greenhouse-gas-emitting coal-fired plants.
Mine production only supplies about two-thirds of current demand. The rest comes from sources such as decommissioned Russian nuclear warheads, a program that Russia has said it will end in 2013.
“They're going to need uranium,” said Michael Hine of the Nunavut Chamber of Mines.
Hine points out this year’s mining symposium was the largest yet – even bigger than during the height of the diamond- and gold-staking rushes.
About 10 uranium companies are at the symposium; there are about 40 prodding the tundra for it.
“We think the Thelon… certainly has the potential to be trapping uranium in very large quantities,” said Philip Olson of Titan Uranium Inc. (TSXV:TUE), based in Saskatoon, which will spend about $2.5 million this summer on leases, permits and claims.
Both Olson and Hine say a new openness toward uranium among Inuit leadership has also opened the door to exploration.
“There's still opposition out there,” said Hine. “(But) people are becoming less opposed to the idea.
“The uranium guys have worked really hard to try to (convey) some understanding of what the industry’s all about. Right now, uranium's on the verge of an era of positive mining experiences.”
Tamerlane Ventures reaches agreement with Katlodeeche First Nation
Tamerlane Ventures Inc. (TSX VENTURE:TAM) is pleased to announce that a business agreement with the Katlodeeche First Nation (KFN) has been signed. The agreement outlines job and business opportunities to the Katlodeeche First Nation for the Pine Point Project and ensures a long lasting relationship between Tamerlane and KFN.
In a letter from KFN to the Mackenzie Valley Environmental Impact Review Board states, “The Chief and Council are satisfied that Tamerlane Ventures have taken all the necessary steps to ensure the protection of the lands and natural resources surrounding the mine site.
“Furthermore, the Chief & Council are satisfied Tamerlane Ventures Inc. have met all the licensing requirements for this project and for the current and future business and economic opportunities between the parties.”
Tamerlane is in on-going discussions with two other Aboriginal groups.
Ross Burns, President & CEO, said: “We are extremely pleased to be continuing a mutually beneficial relationship with the Katlodeeche people and look forward to working with them as we develop our Pine Point Project.”
Learning and loving it at Diavik
By Shirley Collingridge
When Bea Rodh left the CBC for Diavik Diamond Mines Inc. ten years ago, she could not have guessed what a wonderful journey it would be.
“It is a really fast-paced organization – with lots of room to develop,” said Rodh. “I love the people and I just love the work.”
Bea Rodh
When she first arrived at Diavik, Rodh took the position of office administrator; then she moved on to Finance. “I was the purchasing person,” said Rodh. “I went over to the project office and I was taking my purchasing training [when] I realized that really wasn’t what I wanted to do,” she chuckled.
“So I took a different position – I was an executive assistant to our VP of Finance. Then I went on maternity leave and came back and they had a position for me here in HR,” she said.
Although she is now Human Resources Coordinator and has already been with that department for four years, Rodh is not bored. Perhaps that is because, for Rodh, the learning never ends.
“I am taking a recruitment course and am in the Aboriginal Leadership Development Program [ALDP]. The recruitment course is a 12-hour program and you get your recruiting certificate,” she said.
Rodh and her nine fellow students will graduate from the ALDP program after putting in a year’s work on the course, which SIAST teaches on-site at Diavik.
As a Métis person born in Yellowknife, ALDP is an excellent fit for Rodh. As well, “The Program gives you the tools to become a leader,” she said. “It has been something that I wanted to take for a bit. Now that I am in it, it is really helping.”
Training is not just fulfilling for Rodh; it keeps her goals on track. “The thing for me is beginning to get the tools for leadership then maybe go a little higher and take a higher role. That is where I want to go,” she said.
Rodh thoroughly enjoys all of her work, despite what she calls the craziness. “I like the challenges,” she said. “There are a lot of different challenges and lots of new people coming and going.”
A typical day for Rodh is indeed diverse – and very full.
“I do most of the relocations of people coming to the North and working for Diavik,” she said. “I manage all of the relocation units, including our executive. Plus, I work with the Workforce Development Training group which puts on all the training programs like ALDP and other frontline leadership development programs. It is a little bit crazy and stressful but all enjoyable.”
No doubt the company also enjoys having this 10-year veteran on site – especially to facilitate new arrivals.
“I have been here so long,” said Rodh, “when new folks come on board, everyone says, ‘Oh you can ask Bea. She has all the history of the company.’”
Rodh in turns appreciates her fellow employees. Citing several strong female mentors, she singles out one manager who, she says, is “probably more of a mentor than anything. She is open and really to the point but in a constructive way – getting the job done. That is just her way of motivating people. She is awesome.”
Also awesome, says Rodh, is Yellowknife’s magnificent natural environment. It is this ecosystem that drew her back from Fort Simpson when she finished school.
“It is absolutely beautiful,” said Rodh. “And you can still stick a cup in the lake and drink right from it! There is great fishing and we have a nice cabin. It is freezing cold in the winter,” she added with a chuckle “but the extended summers are beautiful.”
Rodh relishes the peaceful time spent with her husband, grown daughter Joy, and four-year-old daughter Winter at their out-of-the-way Stagg Lake cabin. “It is probably an hour out of Yellowknife, then you go up the river about two hours.
Although little Winter and her family are eager to get to the beach, that could be some time yet says Rodh, because “There is still ice on the lake.”
Meanwhile, she and her husband have plenty to keep them busy at home. In particular, “a lot of home projects,” said Rodh. “We purchased a home a couple of years ago, so that Honey-Do list is super long for both of us!”
Besides, time spent with family – working or at play – is critical, says Rodh. “Family,” she said, “is the number one key driver to all this madness.”
Rodh jokes that one minor change at work to help her cope with that madness. “Four-day weekends would be nice,” she chuckled. Madness or not, Rodh plans to stay at Diavik at least another 10 years – because she thrives on the learning, the challenges, and the people.
For others thinking about a career, says Rodh, “If you have a goal and you have a dream, just get in there and do what you need to do. It is easy to get to where you want to be if you have full commitment and have the spirit to do it.”
Mining boom brings potential jobs, but is Nunavut ready?
By Sara Minogue
A few years ago, life in Baker Lake was fairly routine: people played cards, watched hockey, went fishing and hunted for caribou.
But in the last two years, the Arctic hamlet known as the geographic centre of Canada has become the centre for uranium exploration in Nunavut's rich Thelon basin. That means summer jobs for residents as cooks, labourers and guides on the land.
Just north of town, Meadowbank Mining Corp. is preparing to build Canada's largest open-pit gold mine. That requires something new for isolated, landlocked Baker Lake – a 110-kilometre road into the tundra. To build it, Meadowbank plans to hire about 40 local people, which will inject about $250,000 in wages into the community.
Already, the local Canadian Rangers and firefighters have had extra training in cleaning up oil and contaminants spills. Some people have been sent to Ontario for training as heavy equipment operators and are now earning five times what the government previously provided.
The Iglu Inns North Hotel has paid off a large heating bill and has no vacancy from April to November. Store managers say accounts are being paid and big-ticket items are selling out.
“One store has one snowmobile left; the other has three,” said Moses Kayuryuk, the community’s economic development officer, who reported on the changes at the 10th Nunavut Mining Symposium in Iqaluit in April.
The symposium's theme, Let's Get Ready, reflected the need to prepare Nunavut's regulatory system, communities and people for the coming boom already evident in Baker Lake.
Premier Paul Okalik and Paul Kaludjak, president of Nunavut Tunngavik Inc., the land claims organization, both insist they’re ready for the resource boom, but many Nunavut residents are less sure.
One delegate from Arviat, on the west coast of Hudson Bay, said his community also needs jobs but lacks the training and skills to get them. He's worried Arviat will be bypassed and workers brought in from the south.
It’s a constant theme. Nunavut still does not have a trade school. The high school graduation rate is the lowest in the country, and the small size of most high schools and communities means there are limited opportunities for trades training in school or apprenticeships in town.
While people want jobs, they often don’t know how to get them, and sometimes can't conceive of the range of opportunities – from geologists and diamond drillers to truck drivers and cooks.
During the symposium delegates set up a one-day trade fair at Inuksuk High School. Grade 9 students wandered through the booths picking up free pens, but few took a detailed interest.
The indifference was repeated at a town hall meeting later that evening, where the audience included symposium delegates, a handful of media, a few teachers, one local politician and exactly zero ordinary members of the public.
Alex Buchan is the manager of community relations for Miramar Mining Corp. in Kugluktuk in western Nunavut. Miramar hires Inuit from four communities in the west, include his hometown of Taloyoak, to work exploration camps.
“Trying to get the communities interested in trades is a huge issue,” he said, pointing out that many people have never seen a mine site or the heavy equipment that goes with it.
But the potential job benefits are huge.
There currently are 125 exploration projects underway across Nunavut. At the symposium's opening, the territory’s two district geologists reported that exploration companies spent $200 million last year hunting for treasure in all corners of the territory, and said that number will rise this year.
Awareness is growing faster in the west, where Nunavut's first diamond mine opened last year and where half of the active projects are located.
Miramar, which hopes to open its Doris North gold mine next year, is trying to help. The company runs a program that takes high school kids from Nunavut to Yellowknife, where they can earn credits in shop class, something they can’t do at home.
But many Nunavummiut worry that more mining activity will put pressure on already weak infrastructure and services.
Remote airports are getting busier, while runways age. One-person nursing stations are spending more time on out-of-towners. When hotels are fully booked in small towns, other groups – such as the travelling court that administers justice in the North – have to make new plans.
And always, there are fears for the caribou and for fish habitat.
Gitxsan at disadvantage to respond on proposed mine
By Leanne Ritchie
The failure of the federal and provincial governments to negotiate revenue-sharing agreements with the Gitxsan has put the First Nation at a disadvantage when it comes to responding to a proposed copper gold mine.
Gordon Sebastian, a hereditary chief and executive director of the Gitxsan treaty office, said the band doesn't have the ability to respond in a meaningful way to the Joint Review Panel for the proposed Kemess North copper gold mine by the projected May 4 submission deadline because it doesn't have the resources. He blames a refusal by B.C. and Canada to negotiate revenue-sharing on natural resources extracted from traditional territories.
“We believe we should be taking part in this process on our own dime, instead of depending on discretionary government funding that may or may not come,” said Sebastian.
“An acknowledgment by Canada and B.C. of the Gitxsan Aboriginal title over all our territories means we could have a revenue-sharing agreement in place and from that, have the financial resources to respond quickly and in the best possible manner to review panels like this.”
The Kemess North mine will be located some 400 kilometres north of Prince George and is being proposed by Northgate Minerals. The company already operates the Kemess South open pit mine and a 52,000-tonnes-per day mill in the area. The Kemess North mine is currently under environmental review, however many of the First Nations in the area originally boycotted the process, arguing it contravenes their Aboriginal rights and title to the mine area.
However, the Environmental Review Panel was recently informed by the governments of Canada and of British Columbia that First Nations are now in a position to provide additional information to the panel. The panel will hold hearings specifically to obtain additional information from First Nations, particularly new information on traditional use and socio-economic conditions. However, the Gitxsan say the $25,000 they received to participate in the original public hearings is inadequate.
“We want to provide the panel with the best information possible. Given they announced additional hearings March 29, this will take an incredible amount of time, energy and technical expertise,'' Sebastian said. “With the revenue-sharing agreements in place, we would be well positioned to respond now and in the future. We don't want to be dependent on government handouts.''
A world of opportunity with Premier
Premier is a Canadian-based mineral exploration company, focused primarily on discovering and developing gold deposits at its strategically-located Red Lake, Ontario joint venture properties. Premier continues to evaluate other high quality, high grade North American-based gold projects with the strong belief that aggressive exploration in proven districts will repeatedly reward our shareholders.
The Red Lake Mining District is world renounced for high-grade gold with Goldcorp’s Red Lake Gold Mines (RLGM) considered to be one of the highest grade producing gold mines in the world. The mines of Red Lake have produces tens of millions of ounces of gold, making it one of the world’s most prolific gold camps. Premier Gold Mines Limited, a company created in 2006 to focus primarily on developing its advanced properties in the district, has two highly prospective properties in the heart of the camp.
The Rahill-Bonanza Property, a 50/50 joint venture with Goldcorp, is located immediately adjacent to Goldcorp’s RLGM. Premier’s East Bay Project, also joint ventured with Goldcorp, is being assessed for underground potential in the near future. The Bonanza gold discovery represents perhaps the most significant near-surface gold discovery in the Red Lake area in the last several decades.
Premier’s East Bay Project has been subject to several drill programs by Premier and joint venture partner Goldcorp. The deposit at East Bay is comprised of several parallel gold zones hosted within an ultra-mafic rock unit, similar to the geological setting at the primary gold mines that have made Red Lake a household name in mining circles. The East Bay Project is currently at the prefeasability stage, awaiting final review by the joint venture teams. Successful exploration over the past several years, and a strong working relationship with the only gold producer in the camp, has Premier poised to capitalize on its strategic land position and potentially build Red Lake’s next major gold mine.
Recently, Premier has taken its search outside of Canada, and is in the process of acquiring an interest in the Santa Teresa gold property, located in the historic and high grade El Alamo District of Baja California Norte, Mexico.
Premier’s strategy for 2007 is to aggressively build on the solid foundation that has been created, enhance shareholder value through strategic acquisitions and focused exploration efforts within highly prospective gold districts, and make Premier Gold’s presence felt in “A World of Opportunity”.