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January 2008 index

Geoscience Forum busts attendance record

Study shows mining is a responsible partner in prosperity-building

De Beers Canada builds workforce to mine northern diamonds

Late career change promising

Victory Nickel, Grand Rapids, Cross Lake, Moose Lake Cree First Nations sign MOU regarding development of Minago Sulphide Nickel Deposit

First Nation leaders ready to go to jail to stop mine

Geoscience Forum busts attendance record

By Ryan Silke
NWT & Nunavut Chamber of Mines

Once a year in Yellowknife, Northwest Territories, the city witnesses a great influx of prospectors, geologists, engineers, and mining executives. No, it’s not a staking rush. They descend on the community not in a wild search for rocks and minerals, but rather in the spirit of insight, knowledge and cooperation. It is the annual Geoscience Forum, a large conference that brings the mining and exploration industry of the NWT and Nunavut together to discuss and promote new mineral projects, share research, and undertake new initiatives.

The Geoscience Forum is 35 years old now with a long history of promoting the benefits of mining. Here in the north, where mining contributes over half of our economy and was the reason why the modern north exists at all, it is a very important part of life. We are well known for our famous diamond mines, but these are not the only minerals currently being explored and developed North of 60. Lead, zinc, gold, uranium, tungsten, rare earth metals… these are just some of the minerals that mining companies are looking for in the north.

Geoscience, which is held during the third week of November, is a chance for the industry to catch up on what the major mining projects are, what new ores are being discovered and where, what new technology is being developed, and what kind of issues the north is facing. The Forum is divided into two parts, a conference with three days worth of technical talks, and a trade show, where businesses and organizations can promote themselves. The Forum is not restricted just to the mining industry. Hundreds of service companies, from construction, supply, aviation, and catering, all rely on the mining industry for business. You can find many of them at the trade show booths, giving business a chance for promotion and mining companies a chance to meet new potential contractors.

Governments and other organizations also promote themselves at the Geoscience Forum trade show. Mining regulations in the north are sometimes very confusing because of various levels of government and stringent environmental laws, so these organizations are available to answer questions and address concerns.

The technical talks are always well attended and are the focus of the conference. This year we had seven sessions: minerals, energy, environment, outreach education, diamonds, and remediation. The minerals session looked at some of our developing mineral projects and government mapping initiatives of the past season. Energy discussed issues in the oil, gas, and geothermal energy sectors, including the potential for geothermal energy in Canada and the Yellowknife area specifically. The environment, always a big topic in the north, was examined during a days worth of talks as was remediation, which included a half day panel discussing reclamation in permafrost regions subjected to climate change. The diamond session looked at the number of upcoming diamond projects in Nunavut; the consultation session addressed the need for mining companies to consult with Aboriginal groups, and the outreach session focused on educational initiatives in the mining industry.

It wasn’t all business at the Geoscience Forum. Several social functions were hosted at the Top Knight Pub and De Beers Canada Inc. sponsored the 2nd annual Gala event at the Explorer Hotel, which featured a sit down dinner, and a live and silent auction which raised nearly $40,000 for the Nunavut Literacy Council.

The 2007 Geoscience Forum attracted 893 delegates, the largest attendance yet. Every year the event grows in size which is indicative of the growing importance of mining and exploration in the NWT and Nunavut. But a conference this size would not be possible without the aid of sponsors and the work of our dedicated groups of volunteers. Planning for next year’s event, which will be held on November 18-20, 2008 in Yellowknife, is already underway, and we hope that you will be able to join us!

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Study shows mining is a responsible partner in prosperity-building

Increased mining activity would make Ontario a more prosperous and dynamic society according to a study released December 6th by the University of Toronto’s Institute for Policy Analysis. Ontario Mining: A Partner in Prosperity Building (The Economic Impacts of a Representative Mine) demonstrates the positive effects a mine can have on employment opportunities, entrepreneurial activity, investment, infrastructure and community development and taxation revenues.

Co-authors of this study Peter Dungan, Professor and Director of the Policy and Economic Analysis Program at the University of Toronto, and Steve Murphy, an economic researcher and writer, presented their findings on behalf of the Ontario Mining Association at the Rotman School of Management on December 6th. “The report shows how 480 direct jobs lead to 2,280 employment positions and how the output of a single mine contributes $278 million to Ontario’s economy and $84 million to government revenues annually,” said Mr. Dungan.

The combined direct, indirect and induced economic impacts of a representative mine are extremely large. This report shows the impact during the construction phase of a new mine (1,950 jobs, $138 million in Gross Domestic Product and $48 million in taxes annually) and the production phase of this representative mine (2,280 jobs, $278 million in GDP and $84 million in taxes annually). “The contribution of one representative mine in the province is clearly impressive, having important impacts on employment and economic output, particularly in an area of the province that could benefit the most from it,” said the study.

“Ontario’s economy appears to be in a period of transition,” said OMA President Chris Hodgson. “With many sectors of the provincial economy experiencing difficult circumstances at the moment, we encourage the government to focus on supporting globally competitive industries such as mining. We in the mining industry look forward to working with the government to help improve infrastructure -- an industrial strategy, competitive and reliable power systems, more efficient approval and permitting processes and training to help Ontarians be qualified for the thousands of highly skilled, highly paid jobs mining offers.”

“At this time, the mining sector holds the most promise and the best opportunities for Northern Ontario’s future growth and development,” said Jeremy Wyeth, Vice President for De Beers Canada Victor diamond project, and Chairman of the Ontario Mining Association. "From my company´s experience with the Victor project near Attawapiskat, I believe mining is and can be the most significant creator of employment and entrepreneurial opportunities for First Nations residents in Ontario."

The economic impacts of a mine are in many ways like the geological nature of the mine itself -- the bulk of the activity is hidden below the ground and not readily visible on first glance. This study measures the economic contribution of a representative mine including the direct impacts and also the indirect impacts of industries up the production chain and the induced impact of the spending of workers. Publicly available information was used in calculations along with support from the Input-Output Division of Statistics Canada.

Ontario Mining: A Partner in Prosperity Building is available on the OMA website www.oma.on.ca under the "Economics" panel. Click on the box "A Partner in Prosperity Building."  

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De Beers Canada builds workforce to mine northern diamonds

Building and operating a diamond mine on the barren lands, 220 km northeast of Yellowknife, takes two things: technical expertise and people.

De Beers, the world’s leading diamond company, has the expertise and is building a team of people to mine the challenging kimberlite dyke beneath Snap Lake in the Northwest Territories.

Since receiving permits to build and operate the Snap Lake Mine in 2004, De Beers Canada has spent nearly $1 billion to develop the project.

Stacie McSwain, of Hay River, NT, is one of the Mineral Process Operator Trainee students
hired by De Beers Canada to work at its Snap Lake Mine, 220 km northeast of Yellowknife, NT.
De Beers partnered with Aurora College, North Slave Métis Alliance and the Mine Training Society to offer the program, which trained northern residents to work in the Snap Lake process plant.

Canada’s first completely underground diamond mine, it is De Beers’ first diamond mine outside of Africa. With a staff of 500, the mine is expected to produce 1.2 million carats of diamonds each year. While most kimberlites are carrot-shaped pipes, the Snap Lake deposit is a dyke that averages three metres thick and dips down under the lake at a 12-15 degree angle.

“Our employees and contractors have worked hard during the past three years to bring Snap Lake Mine to this stage,” says Chantal Lavoie, Vice President of NWT Projects. “This mine is an important milestone for De Beers and we’re excited about the prospects for the future and what the mine means to the company and the Northwest Territories.”

Up to November 15, 2007, the most recent figures available, De Beers has invested $920.2 million in Snap Lake Mine. Of that total, $630.3 million was spent with NWT companies, including $427.9 million with Aboriginal firms. Total budget is $975 million.

Most of the mine infrastructure is up and running. The first diamonds being recovered on the first day of commissioning for the process plant. Within the first few weeks of this year, the underground crusher and conveyor system will be up and running.

Building the mine has taken hundreds of workers and created 159 person years of employment for Aboriginal and non-Aboriginal NWT residents in 2005 and 2006. Employment numbers for 2007 are still being compiled.

Even before construction started, De Beers began efforts to boost education and training in the NWT, as part of its commitment to a 60 per cent Northern workforce during operations. This work includes spending $600,000 to establish the Kimberlite Career and Technical Centre in Yellowknife and more than $300,000 to distribute books to youth in Aboriginal communities. The company has set aside 40 training positions during the first three years of operations.

To fill positions in the Snap Lake process plant, De Beers partnered with the North Slave Métis Alliance, Mine Training Society and Aurora College to offer a Mineral Process Operator Trainee program (MPOT).

“I really liked my job so I worked hard and learned as much as I could,” said Stacie McSwain of Hay River, one of seven MPOT students hired to work at Snap Lake.

In addition, a dozen millwright, electrical and heavy duty mechanic apprentices and several underground trainees were expected to be working at the mine by the end of the year.

“We are delivering on our commitment to invest in the development of a skilled NWT workforce,” said Kelly Arychuk, Manager of Human Resources for De Beers. “We received many applications for these training positions, and we have been able to select all Aboriginal apprentices from within the NWT. Our apprenticeship program is designed to ensure trainees can focus on one thing – achieving journeyman status with our full support.”

Apprenticeships to be offered in 2008 include welding and instrumentation.

De Beers Canada expects to have its Victor Mine in Northern Ontario in production by mid-2008 and has partnered with Mountain Province Diamonds on the Gahcho Kué Project, 90 kilometres southeast of the Snap Lake Mine. 

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Late career change promising

After 20 years of red tape, former parole officer Colleen Geddes was ready for a change. This spring, Alexco Resources hired Geddes as a First Aid attendant at the old United Keno Hill Mine in the mining town of Elsa, YT, located 700 km north of Whitehorse. Geddes calls her new career “refreshing.”

“I really needed a change,” she said. “At Alexco, things happen a little more quickly. Decisions can be made. You are listened to. You are supported.” Isn’t that we all look for in a career?

“As well,” added Geddes, “I can be somebody who is just like everybody else as opposed to somebody in authority.”

Colleen Geddes

Although she is new to the mining field, Gedde’s enforcement, legislation and communication skills will serve her well. “I was not only doing the probation,” she said. “I was also doing treatment therapy, working with sex offenders and things like that, so I had to do a lot of training and skill building. Through that time, I got a degree in forensic and legal psychology [learning skills that help make the mind and emotions healthy].”

Her abilities so impressed Alexco, the company is already retraining the Teslin Tlingit woman as a safety officer. While the mine drones along in maintenance mode for the winter months, Geddes stays at home in Whitehorse, where she has begun researching her new role and two years of study, funded by the company. When finished, she will have earned a certificate in occupational health and safety.

“They are certainly there financially and they are allowing me time to work on that as well,” she said.

At spring break-up, Geddes will trek four to five hours to the minesite to begin two-week-in, two-week-out rotations.

“Elsa is an old mine, so there are lots of hazards [and concerns] that have to be addressed to reduce risk. I will probably do first aid in the background – to be there on call if needed, but priority will be safety, which is with the health and safety committee, looking at hazards and risks at the minesite, orientations and if things happen, then I do have to investigations,” she said.

Geddes had an early introduction to her new role; she was called to the minesite for just such an event in December.

“The company has a lot to offer northerners. It’s still just getting going there, but they are bending over backward to try and get local people – Yukon or [Na-Cho Nyak Dun First Nation or whoever,]” she said.

“Even if you don’t have good skills, credentials or the resume that reflect that, if you can show dedication and commitment, dependability and reliability, the mine will assist you,” said Geddes. “If [employees] want to take that opportunity, they can gain wonderful skills.”

Geddes believes her family’s healthy roots prepared her to take those opportunities. “I was extremely lucky in having a really good family background. I was raised with my grandma, my dad, my stepmom and a very large, extended First Nations family,” she said. “My dad [provided] a stable, secure, and loving background. We had a good foundation.”

She shares those principles with her children. “I have to be walking upright for them,” she said.

When possible, Geddes heads to her home community of Teslin, 100 kilometres south of Whitehorse. “I spend time on the lake, sort of going back to my roots,” she said. “Our family has hunted for many years. I must admit I haven’t hunted or trapped for a few years. I am getting soft in my old age,” she chuckled.

“My tradition is more inside me, in my beliefs and the way I live my day-to-day life,” she added. “If we think we are alone, that we are not. All our Elders and other people who have passed – they are still there guiding us. And you always have other family to help you out – to rely on.”

With Alexco showing the same type of guidance and support, she concluded, “This is going to be my retirement job.” Geddes turned 50 in December. 

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Victory Nickel, Grand Rapids, Cross Lake, Moose Lake Cree First Nations sign MOU regarding development of Minago Sulphide Nickel Deposit

Victory Nickel Inc. has announced further progress toward permitting its 100%-owned Minago sulphide nickel project on Manitoba’s Thompson Nickel Belt with the signing of a Memorandum of Understanding (“MOU”) with the Misipawistik Cree Nation (Grand Rapids), Mosakahiken Cree Nation (Moose Lake) and Cross Lake Band of Indians.

The MOU addresses traditional rights of these First Nations communities, and establishes the guiding principles for the development of an Impact and Benefit Agreement(s) (“IBA”). The IBA will cover a number of areas, including communication; the environment; social support; training, employment and contract opportunities; and education.

“As we move ahead with the Minago definitive feasibility study we have been working closely with all the communities that will be impacted by mining at Minago, and are pleased to be part of the first joint MOU signed by the Grand Rapids, Moose Lake and Cross Lake Cree First Nations,” said David Mchaina, Vice-President Environment and Sustainable Development. “Throughout the process we’ve developed an excellent dialogue, and the signing of this MOU is testament to the commitment on the part of Victory Nickel and the First Nations to working together to rapidly develop the Minago mine while respecting traditional rights.”

Commenting on the Minago project, Mr. Philip Buck, Chief, Moose Lake First Nation, said: “This is a unique opportunity for the community and its members. It is a special occasion for our community to witness a mining company coming to the people for input in order to develop the Minago Project in a sustainable manner. Moose Lake Band members will work together with Victory Nickel Inc. and other signatories of the MOU to maximize the benefits in a sustainable manner.”

Mr. Ovide Mercredi, Chief, Misipawistik Cree Nation (Grand Rapids) said: “We are determined to benefit from future development that occurs within our traditional territory. The signing of this Memorandum of Understanding is a first step towards ensuring that our people have a significant voice in the development of the Minago Project as well as ensuring the protection of our treaty rights, the environment and in obtaining socio-economic benefits.”

Mr. John Miswagon, Chief, Cross Lake Band of Indians said: “It is truly a historic day for indigenous people of Treaty 5 Territory and we hope it brings benefits to Northern Manitoba and we look forward to moving towards a meaningful and respectful way for our citizens.”

Wardrop Engineering Inc. is currently completing the definitive feasibility study on the open pit portion of the Minago deposit. Metallurgical and by-product testing, along with permitting activities are ongoing and moving ahead as expected, and the Company is preparing for a winter work program to evaluate mineralization at depth in the Nose Deposit, which contains the entire current Minago nickel resource. Drilling will also be conducted along the North Limb, a two-kilometre long domain of little exposed nickeliferous ultramafic rock with the potential to contain a substantial nickel resource.

For further information, please visit www.victorynickel.ca.

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First Nation leaders ready to go to jail to stop mine

The chief and other councillors of a remote northern Ontario Aboriginal community are prepared to go to jail for disobeying a court order that allows exploratory drilling on what they consider traditional lands.

At a Superior Court hearing December 7th, counsel for Kitchenuhmaykoosib Inninuwug (KI) said his clients accept they were in contempt of Justice Patrick Smith’s order giving Platinex Inc. the green light for the first phase of drilling and archeological pre-screening activity in the Big Trout Lake area.

When asked how a confrontation could be avoided, Christopher Reid replied he didn’t have an answer.

The hearing followed a full day of closed-door meetings December 6th between representatives of KI, Platinex and the provincial government.

However, nothing was resolved and the contempt hearing went ahead.

Smith did rule that KI was in contempt of his Oct. 25 order, which was intended to allow the Toronto-area junior mining company to proceed with drilling 24 holes, each five centimetres in diameter.

The drill sites are clustered on a 20-kilometre line on the south side of Big Trout Lake.

The community of KI is located about 40 kilometres away.

Despite Smith’s finding, no one was taken into custody.

A formal hearing will be held in January regarding sanctions.

However, Reid and KI officials have said that fines are meaningless because the band is on the verge of bankruptcy as the result of hefty legal fees dealing with the Platinex matter, including a $10-billion lawsuit.

“With fines, the community can't afford it, I can’t afford it,” Chief Donny Morris told court.

“I’m willing to go to jail,” Reid added that Morris and several others are prepared to go to be imprisoned, and others will volunteer to be incarcerated on a rotating basis.

That still leaves the problem of how the drilling will proceed.

Reid said if Platinex and its crews show up at the sites, they will be met by protests from KI members as well as residents of other Aboriginal communities.

While things could “spiral out of control,” Reid reiterated that KI wasn’t looking for a confrontation.

“My understanding is they’re completely committed to non-violent resistance,” he said.

Platinex’s counsel, Neil Smitheman, termed it a “thinly veiled threat of violence” designed to thwart any attempt to get work going on the properties.

“How can Platinex possibly under these scenarios place a drill crew in the area without armed guards?” he asked. 

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