PDAC 85th Anniversary Publication

PDAC

85 TH

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ANNIVERSARY P U B L I C AT I O N

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2016

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Contents 4

Letter from Glenn Mullan, PDAC President

26

Timeline: 85 Years of PDAC

6

Letter from Andrew Cheatle, PDAC Executive Director

32

Progressing Forward: Gender Diversity

8

Data: Exploration and Mining in Canada

34

Leadership in Aboriginal Affairs

9

Data: PDAC Membership

10

Building Bridges: International Mines Ministers’ Summit

15

Student-Industry Mineral Exploration Workshop

20

Q&A with PDAC Executive Director Andrew Cheatle

37

PDAC Convention: Cornerstone of a Global Industry

39

Student Mentoring Program

41

Policy: Industry Advocate

43

Volunteers: The Bedrock of an Association

45

1-on-1 with PDAC President Glenn Mullan

On the cover | A helicopter hovers above a drill site on the Saddle South zone in July 2017 at GT Gold’s Tatogga property in northwest British Columbia. CREDIT: GT GOLD

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Canada: An Industry Heavyweight

BY GLENN MULLAN, PRESIDENT, PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

C

anada is blessed with an abundance of rich natural resources that has contributed to its position as the world heavyweight of mineral exploration, sustainable development and mining. Our long and successful mining history has seen us become the international leader in mining finance and home to more publicly-listed exploration companies than anywhere else in the world.

Due to immense geological potential, efficient regulatory systems, and attractive fiscal regimes, Canadian jurisdictions featured prominently in the top 10 of the Fraser Institute’s 2016 annual survey of mining companies. Saskatchewan proudly ranked number one, followed by Manitoba in second place, and Quebec in sixth.

However, even with these and other successes, Canadian jurisdictions must continue finding ways to improve their investment climates. Maintenance of the super flow-through share scheme is essential to our successes and the Prospectors & Developers Association of Canada (PDAC) continues to lobby for it on behalf of our members and industry. Simply put, without exploration there will be no new discoveries and without those discoveries there will be no new mines, nor the societal benefits that come with exploration success.

In its 85th year PDAC continues to play an important role in the health of Canada’s mineral exploration and mining industry, representing around 7,500 members across the globe. Outside of its annual PDAC Convention – the largest of its kind in the world with over 24,000 delegates attending in 2017 – the association undertakes a variety of advocacy work to ensure Canada remains a leader in its field.

For example, at the federal level, PDAC strongly encouraged infrastructure investments in remote areas and northern Canada where operating costs are up to 280% higher than the cost of non-remote projects. Our efforts were rewarded in the federal 2017 Budget which allocated more than $7 billion for this purpose. At a provincial and territorial level, PDAC’s innovative research identified several areas where governments can improve implementation of their constitutional duty to consult and accommodate Aboriginal Peoples.

PDAC has an important role in helping shape policy with factual analysis, and engaging with its members on multiple issues. It can help to positively influence the direction of the industry to ensure that Canada remains a desirable destination to discover and develop, in a responsible and clean manner, the mineral and metal deposits that make modern life possible. PDAC85

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PDAC, Looking Great for 85!

BY ANDREW CHEATLE, EXECUTIVE DIRECTOR, PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

O

ver the past 85 years PDAC has grown from its roots as a small ad-hoc assembly to become a significant national organization with considerable international reach. The growth of the association mirrors that of the Canadian mineral exploration and mining industry. In 2017 Canada is undoubtedly a world-class, leading nation in this field.

Since its establishment the association has worked tirelessly to support the industry at home, and more recently, support it abroad. Over the years we’ve seen market cycles turn and watched Canadian entrepreneurs fan out across Canada and the globe to discover and develop great mineral deposits.

PDAC must always be quick to adapt its role in a changing world. Towards that end we recently underwent strategic planning to guide the association’s direction for the next five years. Diversity, innovation, leadership and responsible exploration were some of the obvious themes to emerge.

Today’s mineral explorers and miners face new challenges.

Specifically, there are growing political and societal expectations that we meet high environmental and social standards, all over the world and at all stages of development. This includes being innovative, technologically adept, addressing climate change issues and upholding the highest standards of human rights in business. I’m proud to say our industry serves as a benchmark

for other nations looking to follow in our footsteps, while steadily raising the bar to new heights. We consistently find that Canadian explorers and miners are sought as “development partners” throughout Canada and the world.

On home soil PDAC continues to focus its attention on helping members have better access to capital, access to land and improved Aboriginal relations with an eye towards growing the industry for the shared benefit of the entire nation.

Moreover the association is as focused as ever on its advocacy role, putting forward the industry’s concerns to the federal, provincial and territorial levels of governments and constantly communicating with our many stakeholders. We have an important role to play in responsibly helping to build communities and develop nations — it is a responsibility and opportunity that we proudly take on.

We support our members operating abroad by building relationships with international mines ministers and governments. The International Mines Ministers’ Summit, co-organized with the World Economic Forum, is one example of how we proactively build relationships and provide a platform for open dialogue, information sharing and collaboration among leaders and decision makers.

As always, preparations are underway for the next PDAC Convention. This event is proudly where the world’s minerals industry meets. We look forward to seeing you there. PDAC85

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Exploration and Mining in Canada ECONOMIC IMPACT

14%

GDP contribution: $56 billion Percentage of Canadian GDP: 3.4% Value of mineral production: $42.8 billion Mineral extraction employment: 60,565

Canada is the world’s top destination for

Total direct and indirect mining industry employment: 560,000

non-ferrous exploration,

Mineral exploration and appraisal spending: $1.7 billion

TOP

10

MINERAL PRODUCTS,

BY VALUE (MILLIONS)

attracting 14% of expenditures in 2015.

Mining industry capital expenditures: $13.8 billion Exports: 19% of Canadian exports by value Average mining worker’s annual pay: $115,000 3,700 Canadian firms supply the industry in Canada with engineering, geotechnical, environmental, financial and other services Industry investment in research and development: $677 million (2013) Mining industry paid federal and provincial governments $71 billion in taxes in the past decade (2003-2012)

Copper: 4,493

Copper: 11,198,000

Iron Ore: 2,798

60

FINANCING | US$6.8 billion raised on the

Nickel: 3,594 Coal: 3,111

Sand and gravel: 2,056

Nickel: 2,673,000

+

Potash: 6,661

Diamonds: 2,133

Zinc: 3,532,000

minerals and metals produced across the country

Gold: 7,294

PROVEN AND PROBABLE MINEABLE ORE RESERVES (TONNES, 2013)

Molybdenum: 145,000

Cement: 1,773 Stone: 1,690

Lead: 116,000 Silver: 5,212 Gold: 2,158

TSX & TSX-V exchanges, 34% of worldwide total

TSX-LISTED COMPANIES PROJECT LOCATIONS (JAN 2016)

CANADIAN GLOBAL MINERAL PRODUCTION RANKING BY VOLUME

Canada: 3,355

Asia/Russia/Middle East: 221

Potash

Latin America: 1,134

Australia: 197

United States: 739

Europe: 168

Africa: 493

Total: 6,307

1st

PGM 3rd

Salt 4th

Uranium 2nd

Cobalt 3rd

Tungsten 4th

Nickel 2nd

Diamonds 5th

Gold 5th

Source: Mining Association of Canada. All figures for 2015 unless indicated otherwise.

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PDAC Membership Membership by Geographic Region

Canadian Members by Geographic Region

Individual > I | Corporate > C | Total > T

MB, NB, AB

Africa 2% I 130 | C 11 | T 141

PEI

Asia 2% I 151 | C 15 | T 166

QC BC

Australia 3% I 153 | C 43 | T 196

Total

Europe 5% I 319 | C 54 | T 373 Latin America & Caribbean 6% I 464 | C 16 | T 480 USA 10% I 639 | C 81 | T 720

Total I 6,524 C 908 T 7,432

Canada 72% I 4,668 | C 688 | T 5,356

Corporate Members Member Type

Class A Class B Class C Class D Class E

Junior Exploration # 355 > $1B | # 18 Non-Mining # 492 $500M - $1B | # 6 Total # 908 $100M - $500M | # 9 $1M - $100M | # 14 (Non-Canadian & no exploration in Canada) | # 14

* Classes based on market capitalization

ON

Province/Territory

I

C

T %

Alberta 136 27 163 3% British Columbia 900 244 1,144 21% 81 6 87 2% Manitoba 48 8 56 1% New Brunswick Newfoundland & Labrador 80 8 88 2% Nova Scotia 98 7 105 2% Northwest Territories 28 4 32 1% Nunavut 8 4 12 0% 2,709 291 3,000 56% Ontario 3 0 3 0% Prince Edward Island Quebec 441 74 515 10% 99 13 112 2% Saskatchewan 38 2 40 1% Yukon Territory

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SK NWT NL NS YT NU

I 4,668 C 688 T 5,356

Individual Members Core 1,636 Regular 2,713 Senior 688 Student 1,091 Life 396 Total 6,524

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High-level officials responsible for mining from across the globe in discussion at the 2017 IMMS in Toronto.

Building Bridges PDAC, in partnership with the World Economic Forum, seizes opportunity to host unique and valuable International Mines Ministers’ Summit

BY DAVID PERRI

A

ndrew Cheatle was freshly installed as ExecuMinisters’ Summit (IMMS) in Toronto. tive Director when he walked the floor during “To attend you have to be the national-level elected representhe PDAC 2015 Convention, where he made tative, or the equivalent for countries that don’t have full demoan astute observation. cratic process. A federal-level minister,” Cheatle says.

“I was meeting a lot of international mines “For a moderator, we needed to have someone with the stature and gravitas to be able to talk directly to mines ministers, many of whom ministers,” he adds. said: ‘It’s fabulous to be Before the inaugural event in 2016 Cheatle here, we get to bump into You can see this discussed the IMMS idea with BMO vice-chair and speak with our counterparts from Ecuador, magic happening David Jacobson (the former United States Chile, Canada, etc.’” in the room where Ambassador to Canada), who suggested his Cheatle saw an opportunity with global minthe ministers are ing ministers flocking to the annual convention.

BMO colleague Brian Tobin for moderator. helping each other, After discussing his observations with PDAC colTobin has been a Member of Parliament and the but also feeding off leagues, a brilliantly simple idea emerged: get a Premier of Newfoundland and Labrador. bunch of top level mining ministers from across The first two summits under Tobin’s guidance each other, in terms the globe to sit around a table and discuss the have been successful. “You can see this magic of ideas and global important issues of the day. happening in the room where the ministers are collaboration.

The following year the association, in parthelping each other, but also feeding off each ANDREW CHEATLE. nership with the World Economic Forum (the other, in terms of ideas and global collaboration.”

EXECUTIVE DIRECTOR, PDAC continued on page 12 Forum), hosted the first International Mines

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ENERGY & MINES MINISTERS’ CONFERENCE Each year, PDAC participates in the Energy & Mines Ministers’ Conference (EMMC) to advance its members’ interests and advocate for key issues in support of a competitive, responsible minerals industry in Canada.

As one of the co-chairs of the Canadian Mineral Industry Federation (CMIF), a network of industry associations from across Canada, PDAC works collaboratively with its partners to develop an annual policy brief for the EMMC, outlining the key risks and opportunities facing the industry, and what actions governments could take in response.

The ministers from across Canada met for the 74th time in August 2017 in St. Andrew’s, New Brunswick where they received the latest CMIF submission.

PDAC and CMIF put forward a number of issues impacting the industry’s competitiveness and provided recommendations to Canada’s ministers responsible for mining and energy.

The 2017 submission urged the ministers to support efforts to position the Canadian exploration

and mining industry as the uncontested world leader in the sustainable discovery, production and processing of minerals and metals. It also highlighted the significance of the industry and what is at stake for Canadians.

Opportunities and challenges that are currently affecting Canada’s competitiveness as a destination for mineral investment and activity must be seized and addressed.

This year’s submission focused on six pressing issues facing the mining industry: • Regulatory regimes and the need for coordinated, effective and efficient processes • Supporting Indigenous participation and addressing duty to consultrelated challenges • Climate change policy and maintaining Canada’s competitiveness • Land withdrawal decisionmaking processes and the consideration of mineral potential • Costs of remote and northern exploration and mining • Innovation: energy, water and environmental performance improvements.

Canadian ministers at the 74th Energy and Mines Ministers’ Conference, August 2017 in St. Andrew’s, New Brunswick.

CREDIT: THE GOVERNMENT OF NEW BRUNSWICK

Attendees at the inaugural International Mines Ministers’ Summit in 2016.

To achieve many of the United Nations’ Sustainable Development Goals, unprecedented levels of trust and cooperation between governments, private sector and civil society are required.

Cheatle points out the Government of Canada and The Honorable Jim Carr, Canadian Minister of Natural Resources, provide extraordinary support, and the Minister welcomes all the other ministers to Canada at the Summit. Canada’s unrivalled network of Trade Commisioners at Global Affairs Canada help spread the word and encourage ANDREW CHEATLE. EXECUTIVE DIRECTOR, PDAC participation from host countries, Cheatle says.

“It’s also been a lot of fun,” he admits.

To promote free-flowing conversation the organizing committee decided the IMMS should be governed by Chatham House

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rules, wherein participants can use and share any information disclosed at the summit, but may not identify the speaker.

BMO has also been generous in terms of its logistical support and providing a venue, Cheatle says. Attendees gather on the 68th floor of First Canadian Place for a warm-up lunch, then two and a half hours of summit, followed by a cocktail reception that allows for many provincial mines ministers and industry executives to continued on page 14 join in.

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PDAC Executive Director Andrew Cheatle and President Glenn Mullan (back left, right), join a conversation between IMMS 2017 participants Daniel Kazungu (left), Kenyan Cabinet Secretary, and Mario Alfonso Cantu (right) Mexican Undersecretary of Mining.

PDAC partnered with the Forum to stage the event, connecting with the Switzerland-based organization through Newmont Mining CEO and Forum member Gary Goldberg. Cheatle says.

The Forum’s reputation, knowledge and contacts have been a great support to the IMMS. Both organizations work together with the Government of Canada to organize and plan the theme for the Summit.

With growing interest in the IMMS, PDAC and the Forum have found a formula that works. The Summit included 25 ministers in 2017 from five continents, up from 16 in 2016. There were also 19 invited guests in 2017 from the private sector and non-profit organizations, including high ranking officials from the World Bank. The mix is important, Cheatle says. “To achieve many of the United Nations’ Sustainable Development Goals, unprecedented levels of trust and cooperation between governments, private sector and civil society are required.”

The 2017 summit was held under the theme: The Innovation Imperative in the Mining Sector and a report released following the event highlighted three key issues discussed: competitiveness, The Fourth Industrial Revolution and the United Nations Sustainable Development Goals.

The theme and attendee list for the 2018 IMMS is still in production but will build on last year’s success and include the theme of societal trust. PDAC expects the event to continue to succeed and grow in the years to come. PDAC85

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Student-Industry Mineral Exploration

WORKSHOP PDAC’s annual workshop gets students out of the classroom for a unique professional experience

BY DAVID PERRI

F

or the past 11 years PDAC has been hosting some of the country’s elite students at an intensive two-week workshop known as the Student-Industry Mineral Exploration Workshop (S-IMEW).

Since its inception in 2007, 286 students have completed the workshop which takes the students to Sudbury and Rouyn-Noranda with field trips to Timmins or Val d’Or. “S-IMEW offers students the opportunity to turn their theoretical knowledge into practical experience by exposing them to the many careers available in the continued on page 16

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Students in the field during the 2017 Student-Industry Mineral

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Exploration Workshop.

exploration industry,” says Krishana Michaud, PDAC’s Student Program Manager.

“For many of them it’s their first time going underground, visiting a drill site or touring a smelter.”

Many students will also be introduced to some concepts for the first time such as mineral economics, capital markets and government regulations, Michaud adds.

A number of industry speakers address the students each year. The 2017 workshop featured an opening keynote by famed explorer Dr. Keith Barron. Topics covered during the remainder of the workshop include networking and career development, mineral exploration and economics, government mapping, exploration geophysics, geochemistry, exploration mapping, geological modelling and diamond exploration.

Field trips are also an important part of the workshop. In 2017 students went underground at Tahoe Canada’s Timmins West and Bell Creek mines, toured the Hollinger open

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Every fall PDAC puts out a call to post-secondary schools with a geoscience program to nominate up to two students to possibly attend S-IMEW.

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The Government of Québec is pleased to mark the 85th anniversary of the Prospectors & Developers Association of Canada (PDAC).

For over thirty years, the PDAC has, in its own way, helped Québec shine on the national and international stage by promoting its mineral resources and the numerous advantages it has to offer: • • • • • •

A vast land base 15 metals and 13 industrial minerals, making Québec the most diversified mining producer in Canada A broad infrastructure network 99% of electricity generated from renewable sources Abundant and accessible geoscientific information A qualified workforce and network of suppliers and equipment

Proud to be part of the PDAC Convention!

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pit mine, the Glencore smelter in Sudbury, exploration properties and various outcrops and points of interest around Sudbury, Timmins and RouynNoranda.

Experiential learning is a big part of the workshop, Michaud says. “For instance, on geochemistry day, students participate in indicator minerals exercises, learn various soil sampling techniques, tour the Geo Labs and practice lake sediment sampling on Ramsey Lake with the Ontario Geological Survey.”

PDAC tweaks the programming from year to year to keep it current. A diamond exploration day was added two years ago and recent workshops have included talks by S-IMEW alumni. “Theirs is a light presentation during which they share their postgraduation experiences and offer advice to the up and coming graduates,” Michaud says. “It’s nice for the students to hear from young professionals working in the industry, especially learning about the various paths that led them to their current job.”

Every fall PDAC puts out a call to post-secondary schools with a geoscience program to nominate up to two students to possibly attend S-IMEW. A selection committee of industry volunteers reviews and ranks the students based on various criteria. “We take the top 26 students from across the country, but only one student per school,”

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Michaud explains.

This program wouldn’t be possible without the help of financial and in-kind sponsors. “For the most part our financial sponsors have remained loyal which is impressive given the cyclical nature of the industry,” Michaud says. “This year we raised $68,000 in sponsorships, which was really amazing.”

Other companies support S-IMEW with in-kind sponsorship, typically by providing speakers, volunteer personnel and hosting

tours. “We’re a big group and it’s not easy to get 26 students underground. For a company to spend a day showing our students around their operations is really invaluable, and goes a long way to ensuring the continued success of S-IMEW.” Michaud says sponsors like participating in S-IMEW as it not only provides a great potential hiring pool but it is an opportunity to give back to the industry and support the development of future geoscientists. PDAC85

CONGRATULATIONS On our 10th anniversary, PearTree extends our warmest congratulations to PDAC on your truly impressive 85th anniversary!

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PDAC Executive Director Andrew Cheatle at the PDAC 2015 Convention in Toronto.

A Q&A with PDAC Executive Director Andrew Cheatle

BY DAVID PERRI

PDAC

Executive Director Andrew Cheatle has more than 25 years of experience in mining and exploration. He’s worked throughout the industry as an exploration geologist, mine geologist, manager and executive. He is also a past-president of the Association of Professional Geoscientists of Ontario.

child. I also grew up with many maps at home, and was probably able to read a map around the same time as I was able to read a book. So, geology has been an interest from a very young age and I studied geology all the way from elementary school, into high school and then on to university at The Royal School of Mines at Imperial College in London.

Q What led you to a career in the mining industry?

Q Do you have any geologists in your ancestry?

A I’ve been fascinated with geology for 44-odd years. I grew up on the Chalk formations in the U.K. where there is an abundance of fossils which I found fascinating. I used to collect them as a

A None at all. My mother was a fashion designer. My father and his father before him were in the printing and publishing business.

So no, there isn’t any geology in my ancestry. However, I had a

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father who was an adventurer. In his twenties, which would have been in the mid 1950’s, he used to motorcycle around Africa on an old Triumph Tiger 110, into what is now Malawi, (in those days Nyasaland), for example. This was on dirt roads, strip roads and tracks. I grew up watching 16mm films of his travels, which perhaps inspired my own desire for exploration and adventure in the field.

Q What was your first job in the field?

A Crazy! My first ever field assignment was as a wellsite geologist two miles from my parents’ house! I had hoped to travel the world with my newly minted geology degree.

Q What was your next field assignment?

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A That was onshore oil exploration in northern England. I was on an oil rig that was drilling from the bottom of an iron ore open pit.

Q How did you end up working in South Africa?

A One of my job applications that had gone to Anglo American Corporation had come in and I went to work as a beat geologist on the gold mines in South Africa. I worked at the Vaal Reefs Gold Mine, which at that time was the largest gold mine in the world with 10 producing shafts and 40,000 people working there.

It was an extraordinary, transformative experience.

One of the historical highlights was voting in the 1994 election to end Apartheid. I was there for that and able to vote.

Q What is the most remarkable place you’ve visited in

your career?

A Once the new Goldcorp had formed I had to take a site visit to the then-called Amapari gold mine in the Brazilian rainforest, one degree north of the equator. It was a real journey — planes, and smaller planes and vehicles through the bush and then a week in the Brazilian jungle with lots of snakes and parrots, assessing whether we were going to keep this mine or not. It was just an continued on page 22 amazing experience with amazing people.

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Q What brought you to Canada?

Q Really? How did that come to be?

A I was working in South Africa, for a renowned Canadian company

A While I was working up at the Musselwhite mine I heard a lot

called Placer Dome and as part of their restructuring of operations in South Africa I was moved over to the Musselwhite gold mine in northern Ontario. I had to move from Johannesburg to Thunder Bay.

of noise coming out of the TV room at camp. There was a game of hockey going on — and I’ve since learned not to say ice hockey — there was a team in white with a blue maple leaf on playing a team in orange and black, and I looked around the room and everybody had Maple Leafs shirts on — so I took the other side to make a bit of fun of it. And that’s how I became a Flyers supporter.

Q How did you like that change to Thunder Bay? A I had always wanted to live and work in Canada. I thoroughly

Q You eventually served as the CEO of junior explorer

loved it in rural northern Ontario. I really enjoyed the mining environment and we were also doing a lot of regional exploration. It’s fair to say that moving from sub-Saharan Africa to northern Ontario in January was a shock and an absolutely fantastic experience.

At Musselwhite we were very fortunate to have a great team of geologists over the eight years that I was there. Together we added somewhere in the order of 4 to 5 million ounces of gold to the mineral resource while also increasing the head grade. The mine is still going strong and has made a big positive difference to the local communities and the people working there. I am proud to have played a part in that.

The Musselwhite mine is often highlighted as a good and early example of the mining business working collaboratively with the Aboriginal communities. It really was an amazing experience to be part of the management team and also, as Chief Geologist, going out into the traditional land and working with the Indigenous population.

Unigold Inc. How would you rate that experience?

A What I particularly liked about Unigold — not the least of which was the joy and excitement of having a good run of drill results and putting 2 million ounces of gold into a mineral resource — was the work we did with the local communities.

We caught the attention of the World Bank’s International Finance Corporation (IFC), and they invested in our company. It was very unusual for IFC to invest in a pre-mineral resource company. The challenge was to successfully scale many of their performance standards to a junior explorer and, embrace local economic development and societal acceptance during the exploration stage of a project. That experience formulated in my mind something that people have said many times: “You’ve got to get it right, and right from the start.” Our industry’s long term relationships with the community are often set during the prospecting and exploration stage.

Q Are you a Canadian citizen?

Q How did you “get it right, and right from the start”

A Yes! I’ve very proudly been a citizen since 2005. The answer to

the next question is, yes, I do travel on my Canadian passport. It surprised me I got my Canadian citizenship because I’m a Philadelphia Flyers supporter.

with Unigold?

A It can be such simple things: respect and responsibility are foundations to good relationships. For example, if the locals have

1 UAV Solutions on display at PDAC

since 1980 Meet our Team at Booth #802 March 4 - 7 2018 th

th

www.gemsystems.ca • info@gemsystems.ca • Tel: +1.905.752.2202 • +1.888.635.1829 22 | PDAC 85th Anniversary Publication

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put their washing out on the fence, which is washed by hand, don’t speed through the village and kick up dust to make the washing dirty again. Or, instead of importing plastic core trays, what about all the local wood mills and carpenters that can make them instead?

Hygiene and safety are important and to improve our standards in the kitchen we hired a chef who was off duty from one of the resorts in the Dominican Republic. He came in for one week every six weeks and taught the local cooks food hygiene and proper equipment handling.

And we had safer work and less lost time due to people being sick — and no one wants to be sick.

On a bigger scale we worked with a fabulous Canadian drilling company, North Star Drilling, and trained locals how to be quality drilling supervisors and operators. Eventually, the whole drilling crew was local, operating at the same efficiency and safety standards as we expect at home.

Andrew Cheatle in Geneva at the United Nations to deliver a presentation on the importance of corporate social responsibility and Environmental Excellence in Exploration.

Q

After 85 years representing the industry, what should be PDAC’s priority going forward?

A As I mentioned earlier, this thing about getting it right, right from the start. And whether you’re a prospector or you’re a multinational, or anyone in between, it’s about getting it right and building up trust with society. I think you’re going to see PDAC talking a lot more about the role of mining and mineral exploration in our society. Whether it’s classic minerals and metals such as gold or, as we move towards a lower carbon economy, everyone’s focusing on lithium, cobalt and minerals like scandium, which is used as a strengthening alloy with aluminum. So I think we have a lot to do with that, a lot to do in terms of being proud of what our industry has done and having a new conversation with society: one where society can trust what we are doing. We will always support our members with the “bread and butter” issues: access to capital, access to land and Aboriginal affairs. continued on page 24

Q How did you first encounter PDAC? A I’m an immigrant. Back in the late 1990s PDAC was not as big as it is today and I knew PDAC as a mining event like many others.

What I also recall was soon after I arrived at the Musselwhite Mine, on my book shelf sat a copy of e3 [PDAC’s Environmental Excellence in Exploration guide]. It was about responsible exploration and how to do things safely. Bearing in mind I had only worked in Australia and South Africa — so how do you just put a drill rig on ice safely?

How do you know the people that are doing it are doing it safely? There’s a whole sort of mindset and approach that the e3 talks about.

And then as the years progressed, if you’re in Canada and you’re a geologist, you go to the PDAC Convention, whether it’s as part of the Placer Dome team to prospect the Investors Exchange or to work on partnerships with other companies in the area. I also started to get involved and volunteer my time with the Student-Industry Networking Luncheon and working with the youth, which is something I still continue to do today.

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PDAC 85th Anniversary Publication | 23

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PDAC Executive Director Andrew Cheatle with children in the Dominican Republic while he was CEO of Unigold in 2013. CREDIT: UNIGOLD

Q So, PDAC has to underline the benefits of mineral

exploration and mining to society as a whole?

A Absolutely. And I think society is a lot more aware. I’ve been involved in workshops on voluntary initiatives where, frankly, society doesn’t want to have these kinds of unethically sourced minerals and metals in their goods.

So, there’s consumer pressure that’s coming all the way through the manufacturing process and impacting how we go about exploration and development. Success today depends on having good societal relationships, environmental practices and developing trust between the community and company.

If you consider a large scale project that may last 20 or 30 years or longer, that specific project doesn’t move, the community that was there doesn’t move, it transforms and changes. Throughout the mine life there may be four or five different governments, there will likely be four or five different CEOs, quite possibly two or three different owners of that deposit, but the constant is the community.

How does that all get managed? How do we build intergenerational trust so that everyone feels they have benefitted?

Q How do you rate the future prospects for Canada as a

mining nation?

A Canada has an amazing opportunity to not only just retain its position as the number one place in the world to explore, mine and develop, but to enhance that and go further. The Canadian brand is sought out internationally. Quite literally, PDAC President, Glenn Mullan and I had the mines minister from one African country chasing us down at another convention because they want to have Canadian companies come to their country. Why? Because we’re increasingly a trusted brand. With experiences like that you can’t help but be moved and proud of your industry.

I think we’re also seeing a number of majors and mid-tiers putting money in Canada, taking positions in junior companies that fit their strategic profile. Over the last three or four years we’ve seen a return of focus to Canada. Some might refer to it as an ‘on-shoring.’ It’s exciting times.

Q What would you like to see more of in the Canadian

mining industry?

A I’d like to see a lot more prospecting, on the ground exploration, taking place in Canada. It’s very, very important. We can do this, for example through our engagement with the Indigenous

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people of Canada and encouraging recent college and university graduates to form prospecting alliances, grubstake and use the skills that they’ve developed in university to move mineral projects along. And we have the geological environment for it. There are opportunities and PDAC is going to be there encouraging and supporting people to get to work.

an explorer, I’ve also done mine-based work, I’ve worked for large and small corporations, been a CEO and felt the doors open and shut on my face on Bay Street, which I think is quite crucial.

A huge amount of humility is essential in this job and to be ready for anything. I was on the phone yesterday, for example, with a member who is a genuine out-in-the-bush prospector, talking about some of the difficulties he’s having with the Canada Revenue Agency (CRA), in terms of having genuine expenses allowed. This case would largely involve informing the CRA about legitimate expenses allowed under the flow-through shares. But on any given day the phone might ring and it could be the Prime Minister’s Office, or the ambassador from Ecuador, or a student looking to volunteer. That’s what makes it fun.

Q Do you enjoy your job?

A Yes. It’s an incredibly unique position. It’s a privilege to serve.

I am often asked what the job is like. It’s one part cheerleader, but I’m also an ambassador and diplomat for the mining industry, specifically on the exploration side. I’ve had to learn a lot about government and diplomacy.

Q With so much experience in the industry, does anything

Q How did you end up as PDAC executive director?

surprise you these days?

A One thing that’s really impressed me during this last down-

A The first time I heard of this job was from one of the First Nations communities I had known from northern Ontario. They wrote to me and said, “Hey, have you seen that job advert?” I hadn’t and I kid you not, I got to work on the following Monday and one of my colleagues said to me: “Hey, have you seen that job advert?” I am very fortunate to have experience out in the field as

turn was the resilience of our industry. There was a lot of talk that there would be a massive hollowing out of the junior sector. But at the end of the day, very few companies went under. I think a lot of people have learned to navigate the downturns and to keep hold of their projects and look to develop them over an extended period of time. PDAC85

TSX-V: GWM

Advancing 2 Projects in Canada CLARENCE STREAM – An Emerging Gold District in New Brunswick Class

Tonnes (000)

Open Pit Au (g/t)

Au (000 oz)

Measured Indicated M&I Inferred

236 5,675 5,910 2,723

1.81 1.86 1.85 1.87

13.7 338.4 352.2 153.1

Tonnes (000)

Underground Au Au (g/t) (000 oz)

267

4.39

37.8

862

4.48

124.1

Tonnes (000)

236 5,941 6,178 3,409

Total Resource Au Au (g/t) (000 oz)

1.82 1.97 1.96 2.53

14 376 390 277

3 Drilling to expand the high-grade gold resource along strike, at depth and where gaps exist.

3 65 km strike, 60,000+ hectare land position with many gold anomalies to be drilled.

ESTRADES – Former Producing High-Grade VMS Mine in Quebec Class

Au Eq (g/t)

Indicated

12.37

Inferred

7.42

Zn Eq (%)

Au (g/t)

Ag (g/t)

Zn (%)

Cu (%)

Pb (%)

AuEq Zn Eq Au Ag Zn Cu Pb (000 oz) (000 lb) (000 oz) (000 oz) (000 lb) (000 lb) (000 lb)

22.75

3.89

137.9

7.95

1.12

0.65

517

651,967

163

5,762 227,950 32,057 18,552

13.64

1.54

68.6

4.31

1.46

0.26

290

365,645

60

2,686 115,544 39,126 7,084

3 Drilling to expand the former producing, high-grade gold, silver, zinc and copper resource and targeting VMS source vents at depth.

3 31 km strike, 20,000+ hectare land position with three mineralized trends: Estrades, Newiska and Casa Berardi.

For notes please see the Technical Report on the Mineral Resource Estimate for Estrades Project dated September 30, 2016 and Galway Metals Press Release dated September 26, 2017 at:

www.galwaymetalsinc.com

PDAC 85th Anniversary Publication | 25

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Mining engineer Walter Segsworth calls a meeting of a dozen prospectors on February 29, 1932 where it’s decided they will fight the Ontario government’s proposed Engineers Bill, which would require prospectors filing a work assessment to have the report signed by a mining engineer.

The group arranged a larger meeting of 132 prospectors the next day at the King Edward Hotel in Toronto and raised $168.45 and the Ontario Prospectors Association is founded. The bill was never passed.

Now with more than 900 members, the organization changes its name to the Ontario Prospectors and Developers Association.

In describing the purpose and objectives of the organization, Walter Segsworth wrote in a 1933 paper: “[The Association is] nonpolitical and non-partisan.

It desires to work with the government to improve the mining business, …is devoted to the interests of the prospectors, claim owners, mining financiers, developers and small non-producing operators in Ontario.”

Then-secretary-treasurer Viola MacMillan begins to make her mark by: expanding the annual meeting to a full-day of programming with prominent speakers, four-course banquet and dance; implementing an annual member administration fee of $1; and proposing the Geological Survey of Canada hold prospecting classes to encourage exploration for nonprecious metals during the war.

Association membership reaches 1,700.

The annual convention outgrows the King Edward and moves to the Royal York Hotel.

Annual convention grows to a two-day event.

Viola MacMillan succeeds her husband George as president.

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th

1945 1948 1957 1964 1965 Annual convention grows to three days.

For the first time, new government geological and geophysical maps were displayed at the convention.

Association celebrates its 25th anniversary with a party, attended by 1,650 people.

The organization changes its name to Prospectors and Developers Association.

Viola MacMillan steps down after 20 years as president. She is convicted for wash trading in the Windfall scandal.

Association hits its lowest point amid the high-profile Windfall scandal and subsequent crackdown on junior mine financing by the Ontario Securities Commission.

No annual convention is held.

1933 | WALTER SEGSWORTH

[The Association is] nonpolitical and non-partisan. It desires to work with the government to improve the mining business, ‌ is devoted to the interests of the prospectors, claim owners, mining financiers, developers and small non-producing operators in Ontario.

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th

1978 Association introduces annual awards program.

Annual convention includes its first annual hockey game between the Prospectors No-Stars and the Keevil team, the Teck Terrifics.

Claude Taylor is hired as the association’s first fulltime general manager.

Annual convention features a record 2,830 registered delegates, plus 350 students.

Association begins holding monthly meetings and established committees.

The first PDAC Award is introduced.

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1982 1983 1987 1988 1990 Association celebrates its

50th

anniversary.

First flow-through shares issued.

Association changes its name to

Prospectors & Developers Association of Canada (PDAC)

PDAC participates in the establishment of the Canadian Mining Hall of Fame.

Annual revenues and expenses reach approximately

$500,000.

and hires a full-time managing director.

2,300 delegates attend the annual convention, including 37 from outside of Canada, as the event is opened up to the world.

Mining Matters educational initiative established.

Convention outgrows the Royal York and moves to the Metro Toronto Convention Centre.

PDAC participates in the Mining Standards Task Force and the subsequent revision of National Instrument 43-101 in the aftermath of the Bre-X Minerals scandal.

1992 1997 1998 PDAC 85th Anniversary Publication | 29

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PDAC GETS SOCIAL Embracing social media is just one of the ways PDAC has adapted to stay relevant today.

With an active presence on the most popular social media platforms and more than 20,000 followers, PDAC is taking part in today’s important online conversations. A strong social media presence helps PDAC communicate and allows members and the general public to connect directly with the association and join online discussions.

Convention hosts

14,500 attendees from

100 nations.

The event is established as the

world’s largest international showcase

PDAC yearly income and spending hits $2.7 million.

PDAC introduces the Environmental Excellence in Exploration program (e3).

for mining and exploration.

PDAC Aboriginal Affairs Committee is established.

PDAC launches its Aboriginal Program.

PDAC celebrates its 75th anniversary.

PDAC Student-Industry Mineral Exploration Workshop (S-IMEW) launches in Sudbury, Ontario.

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2008 2009 2012 2013 2014 PDAC signs MoU with Assembly of First Nations National Chief Phil Fontaine, laying a foundation for cooperation between the two organizations.

PDAC’s e3 program evolves into e3Plus, comprised of eight principles and three toolkits.

Record 30,369 attendees come to the annual convention from 125 countries. PDAC Aboriginal Program at annual convention is expanded.

PDAC rebrands and launches new logo.

Largest contingent of elected officials (50) hosted at annual convention.

For the first time a sitting Canadian Prime Minister, Stephen Harper, attends the annual convention.

Inaugural Skookum Jim Award for Aboriginal excellence awarded.

PDAC co-hosts the inaugural International Mines Ministers’ Summit

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Gender Diversity

PDAC pushes for a bigger role for women in the mineral exploration and mining industry

P

romoting gender diversity in the minerals industry is a complex challenge. However, PDAC is committed to taking on this task by hosting and participating in a variety of initiatives that aim to raise the profile of women in mining.

On the sidelines of the 2016 and 2017 Conventions, PDAC hosted deliberative dialogues on “women and mining.” These sessions served to identify challenges facing women in the industry and mining communities, and to discuss possible multi-stakeholder actions designed to enhance the benefits of exploration and mining for women and girls. During these sessions, participants from industry, government, civil society and academia came up with recommendations for PDAC, many of which will be delivered on over the next several years.

The PDAC 2017 Convention’s Student Forum featured a panel discussion called “Mentorship: Women in Mining.” Participants learned about a range of career opportunities in mining, the

importance of mentorship and the role that gender plays in hiring and work experience. Panelists were female geoscientists from various backgrounds.

In recent years, organizers of the CSR Event Series have actively encouraged gender parity on their panels. In addition, priority is given to proposals for the CSR Event Series that either deal exclusively with a topic related to gender, or strive to highlight another topic through a gender lens. For example, at the 2017 Convention, the International Finance Corporation hosted a session on how more women in the boardroom contributes to a stronger, more resilient company.

PDAC provides in-kind sponsorship to the Mining For Diversity event held annually at the PDAC Convention. According to the event organizers, the 2017 Mining For Diversity reception brought together the industry to celebrate inclusion, as well as the progress made in the industry towards ensuring that everyone who works within it has an opportunity to contribute to their full potential. This includes women, men, Indigenous people, visible minorities, persons with physical and mental disabilities

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Geologist Roxanne Takpanie and project geologist Robert Fraser examine and the LGBTQ community. In 2017, the event was presented core samples. CREDIT: AGNICO EAGLE MINES

by Women in Mining (WIM) Canada, WIM British Columbia, WIM Montreal, WIM Toronto, WIM International, Women Who Rock, Mujeres Roco (Peru), Covergalls, MiHR and the Program aims to empower and promote the career prospects of CIM Diversity & Inclusion Committee. women working in the international resources industry by developing productive mentoring partnerships to assist in creating a Additionally, the PDAC Convention Planning Committee more diverse and gender progressive industry. This program will encourages the inclusion of female Committee Members, Session be launched at the PDAC 2018 Convention.

Chairs, and presenters at the convention. Twelve females chaired Towards the end of 2017, PDAC will finalize its five-year sessions throughout the 2017 convention, and economist strategic plan. Significantly, diversity and inclusion were identified Dambisa Moyo provided the PDAC 2017 Mineral Outlook as priorities that will guide the activities of the organization over Luncheon address. the next five years and beyond. PDAC looks forward to the Beyond the convention PDAC pushes for gender diversity in journey ahead. PDAC85 many ways. For instance, over the last couple years the organizers of PDAC’s annual Student-Industry Mineral Exploration Workshop have taken steps to increase the number of female “Saskatchewan is rich in speakers that participate. At the most mineral wealth. We have a recent workshop, one quarter of PDAC bright future in this province.” volunteers were female (20 out of 80).

-Patrick Soares President and CEO PDAC also consistently sponsors Foran Mining Corporation several gender-related events and organizations, including: n Women In Mining (for over 10 years) McIlvenna Bay Project n Women Who Rock n PDAC Executive Director Andrew Cheatle sits on the Board of Women In Mining — International

Rich in Resources. Rich in Opportunity.

LOOKING FORWARD PDAC has a seat on the Steering Committee of the newly developed International Women in Resources Mentoring Program (IWRMP). The

Saskatchewan has a rich mining history. The province is the largest potash producer in the world and the second largest uranium producer. There is also production of, or strong potential for a variety of minerals, including base metals, diamonds and gold.

Since 2007, companies have invested $2.87 billion dollars, and the province remains a solid choice for investors. saskatchewan.ca/invest |

PDAC 85th Anniversary Publication | 33

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Leadership in Aboriginal Affairs I’m always amazed about where we’ve come in the last decade as an industry. The growth in awareness by industry members about what needs to be done to engage communities in a proactive and respectful way is encouraging.

GLENN NOLAN, PDAC PAST PRESIDENT

A

s a way to help navigate shifting tides in the social, political and legal landscape in Canada, the PDAC Aboriginal Affairs Program was formed in 2004.

Jurisprudence on Aboriginal rights and title was evolving and the Supreme Court of Canada had just ruled on the Duty to Consult, and issues were arising between some junior exploration companies and Aboriginal communities in Ontario and other jurisdictions. At the same time, community engagement activities were recognized as critical components for developing mutuallybeneficial relationships and advancing projects, including the negotiation of formal agreements, and the participation by Aboriginal Peoples in the industry was increasing.

There was a growing desire within the association to examine the intersection between the minerals industry and Aboriginal communities and to undertake work to support greater understanding and co-operation between companies and communities. PDAC leaders recognized its importance and identified a natural partnership.

From its humble beginnings, the PDAC Aboriginal Affairs Program has come a long way; mineral companies have also made great strides in their work with communities.

“I’m always amazed about where we’ve come in the last decade as an industry,” said Glenn Nolan, PDAC Past President, who hails from the

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Missanabie Cree First Nation in northern Ontario.

“The growth in awareness by industry members about what needs to be done to engage communities in a proactive and respectful way is encouraging.”

It was former President Peter Dimmell who first recognized that PDAC needed to take a greater leadership role in fostering a positive relationship with Aboriginal communities. Dimmell approached Don Bubar, who sat on PDAC’s Board of Directors from 2004 to 2012, to chair the new PDAC Aboriginal Affairs committee. “I was asked to chair the committee because I had spoken up on Aboriginal issues during a couple of board meetings and was one of the few on the board at the time who had relevant experience working with communities,” explained Bubar.

Bubar immediately turned to Chuck Willms, a lawyer specializing in Aboriginal law at Fasken Martineau, to join the committee and speak at a PDAC event to provide information and discuss potential implications of the Supreme Court decision on the duty to consult. Nolan attended the event as a representative of his community and introduced himself to Bubar, who recognized in Nolan a valuable potential committee co-chair and PDAC board member.

The Aboriginal Affairs Committee – currently co-chaired by board members Michael Fox and Jonathan Fowler – guides the work of the PDAC program. It is focused on improving relationships between mineral industry companies and Aboriginal communities and enhancing participation by Aboriginal people in the mineral industry to support responsible exploration that contributes to sustainable development.

“Building on our strengths and lessons learned over the years, PDAC continues to undertake important work in support of its members’ efforts”, says Fowler.

The minerals industry has become a proven leader in building relationships and partnerships with Aboriginal Peoples. Companies work with communities to generate economic opportunities and seek input on aspects related to their projects. Industry engages with community partners and supports participation through training, business development, employment, social investments and financial arrangements. The sector is proudly the largest private-sector employer of Aboriginal Peoples in Canada on a proportional basis, with employment in the mining and mineral processing industry increasing by 12% from 2007 to 2015.

A significant number of agreements have been signed between mineral companies and Aboriginal communities, with nearly 500 agreements signed since 1974; the majority – 376 – have been signed within the last decade.

“We have seen a number of positive outcomes over the years and, while there is always more work to be done, PDAC and its members can be proud of what has been achieved,” says Fox. The Aboriginal Program at the PDAC Convention is a key staple at the event. What began as a small session over a few

From left, Chief Glenn Nolan looks on as Phil Fontaine, then-National Chief of the Assembly of First Nations, and Patricia Dillon, then-PDAC President, sign a Memorandum of Understanding in 2008.

hours in 2006 has grown exponentially in quality and quantity.

With two days of sessions, the annual program at the convention provides a unique opportunity for companies and communities to share information, exchange ideas and network. The program features panels and presentations on relationship building, Aboriginal law and regulatory regimes, environmental issues, as continued on page 36

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blueskyuranium.com info@blueskyuranium.com (604) 687-1828 PDAC 85th Anniversary Publication | 35

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well as the sharing of challenges and successes. This past year, there were over 500 self-identified Aboriginal attendees at the PDAC Convention and more than 700 people from companies, communities, governments and academia participated in the sessions.

Meanwhile, throughout the rest of the year PDAC continues to undertake policy work, raise awareness, collaborate with partners around the mineral development sequence and the opportunities that exist, and encourage increased and meaningful Aboriginal participation in the industry.

PDAC advocates for policy such as government resource revenue sharing, foundational social investments (health, housing, water, education) that contribute to better outcomes for Aboriginal communities, and targeted funds from governments for skills training and entrepreneurship to assist with employment and business development opportunities generated by the industry. The development of research and tools such as the Exploration and Mining Guide for Aboriginal Communities is also an integral element of the department.

The Memorandum of Understanding (MOU) with the Assembly of First Nations was a significant accomplishment for PDAC. Signed in 2008, the agreement established a relationship between the two organizations to enhance regular dialogue

between the mineral sector and communities, collaborate on human resource initiatives that promote greater participation of First Nations people in Canada’s exploration and mining industry, and co-operate on public policy issues of mutual interest.

Another significant milestone was PDAC’s establishment of the Skookum Jim Award. First presented in March 2008, the award recognizes companies or individuals that demonstrate exceptional achievement or service in an Aboriginal-run service business for the Canadian minerals industry or a Canadian Aboriginal exploration or mining company, or have made a significant individual contribution to the industry.

“Having the PDAC board recognize the importance of Aboriginal entrepreneurs and movers and shakers that have exemplified a strong commitment to the industry was significant,” said Past President Nolan. The 2017 winner was Peter Moses, who worked more than 35 years as a part-time prospector, negotiating 34 option agreements with junior mining companies.

PDAC president Glenn Mullan underlines the importance of working together. “The development of respectful, mutuallybeneficial relationships between mineral companies and Aboriginal communities here in Canada has opened more areas for mineral exploration while also generating economic opportunities.” PDAC85

TSX:ER OTCQX:EANRF

Updated Eau Claire Mineral Resource Estimate* Category

Tonnes

M&I Inferred

4,170,000 2,227,000

Grade (g/t Au) Contained Au (Oz)

6.16 6.49

826,000 465,000

Open pit and underground delineated.

Conservative Interpretation: Improved grades and gold continuity.

Advancing to Preliminary Economic Assessment (H1 2018). *For more information and footnotes related to the mineral resource update, please see Eastmain press release dated, September 11, 2017.

Focused Management Aggressive Exploration The Right Location 3 Key Assets in James Bay, Quebec

www.eastmain.com 36 | PDAC 85th Anniversary Publication AGM 1/3 ad for PDAC.17.final.indd 1

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2017-09-29 11:38 AM

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The Cornerstone of a Global Industry PDAC ANNUAL CONVENTION

F PDAC Convention Attendance 2007-2017 2007 17,633 2008 20,162 2009 18,079 2010 21,933 2011 27,714 2012 30,369 2013 30,147 2014 25,122 2015 23,578 2016 22,122 2017 24,161

rom its humble

beginnings in 1932,

when a dozen

prospectors convened at

the King Edward

Hotel in Toronto, the annual PDAC Convention has grown into a truly world-class event.

After 85 years it is unquestionably the world’s premier exploration and mining industry event, with a truly global reach.

The 2017 Convention attracted more than 6,000 international attendees from 130 countries, 68 government exhibitors and a trio of Mining Country Sponsors: Peru, Ecuador and Chile, which reflects the healthy international appetite to participate in what was once a mostly Canadian affair.

The full suite of programming and events offers something for people working in all facets of the exploration and mining industry, from classic exhibitions such as the Investors Exchange and Trade Show to the Aboriginal Program and Corporate Social Responsibility Event Series. Year after year PDAC strives to host the most relevant and engaging convention to propel the industry forward. PDAC85 continued on page 38

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PDAC AWARDS: HONOURING EXCELLENCE PDAC’s Awards Committee is a way for outstanding

PDAC 2017 Convention Facts 24,161 Attendees

3,807 Investors

26% International attendees

42 Media partners

130 Countries represented

867 Trade Show booths

1,256 Student attendees

68 Exhibiting governments

500+ Self-identified Aboriginal attendees

472 Speakers

270 Accredited media

networks.

Dating back to 1977,

contributors in the

PDAC Awards are a way to

Canadian and international

acknowledge exceptional

mineral exploration and

performers in up to

mining community to be

seven categories. Award

recognized and honoured.

recipients are celebrated

The Committee is made up

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The 2017 Bill Dennis Award recipients, Val d’Or Exploration Division, Agnico Eagle Mines Limited & Glenn Mullan, PDAC President. The award honours companies or individuals who have made a significant mineral discovery, or have made an important contribution to prospecting or the exploration industry.

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Student Mentoring Program PDAC links students with industry mentors to help the next generation succeed

BY DAVID PERRI

M

aking the transition from student to PDAC’s Mentoring Program in 2016, which had a successful run professional can be a challenge in any as a pilot program and has been renewed for 2017. field, and the exploration and mining The Mentoring Program pairs students and recent graduates industry is no exception. After surveywith experienced professionals. “It’s about facilitating the transfer ing students, teachers and industry of knowledge and connecting students with a professional who has players in 2014 PDAC had a similar experience, especially when it comes identified a gap in the to navigating a downturn, as they can share their We currently industry. advice and expertise,” Michaud says. have 39 mentors “We heard from many students and recent The pilot year saw 35 mentees pair up with graduates who wanted to build more linkages 34 mentors (mentors can choose to take on more and are looking to to the industry in preparation for entry into the than one student). meet a target of 80 workforce. Specifically, they were looking for “Our mentees are students in their last year of for the next round mentorship opportunities with industry profestheir undergraduate studies, graduate students and of the program. sionals,” says Krishana Michaud, PDAC’s Sturecent graduates, primarily in the earth sciences, – KRISHANA MICHAUD, PDAC STU­D ENT PROGRAM MANAGER dent Program Manager. geology, engineering and business fields,” Michaud continued on page 40 That feedback eventually led to the creation of

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says, describing the first cohort of mentees.

The mentors include researchers, professors, engineers, geologists, geophysicists, consultants and government geoscientists.

It’s critical to pair people in the most relevant and beneficial relationships so PDAC devised a sophisticated matching process.

First, mentors and mentees submit a profile, wherein they outline their particular areas of interest, expertise, education and professional

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experience. Candidates also indicate how they prefer to meet and relate with their partner.

Next, PDAC creates a mentor database with the information and sends mentees a mentor snapshot package, which outlines a potential mentor’s years of experience and areas of specialization. After reviewing the information, mentees pick their top three preferred mentors and then the association does its best to accommodate the mentees.

Michaud says the matching scheme worked well in the first year and having the mentees choose their mentors helped build more investment into the relationship.

“Once we connect them over email it’s up to the mentee to make that first contact with the mentor. We provide each mentor and mentee with a guidebook and the tools to begin building the relationship.”

“We let the pair decide how they want to structure their relationship,” Michaud explains. Some meet often and in person, while other pairs prefer to use Skype, email or speak on the phone.

PDAC monitors the relationships through periodic check-ins and asks participants to evaluate their experience.”

“We’ve asked for a minimum of a one year commitment, and so far that seems to be working well,” she says. “However, mentors and mentees can choose to continue their relationship past the first year.”

After having such a successful pilot year, PDAC’s Human Resource Development Committee has decided to expand the program beyond the pilot stage.

“Our next step will be to first expand our pool of mentors to ensure that we are able to connect all potential mentees,” Michaud says. The next round of the program will be better balanced with more mentors from the exploration and mining industry and outside of Ontario.

“We currently have 39 mentors and are looking to meet a target of 80 for the next round of the program.” For mentors this is an excellent opportunity to give back and help develop the future leaders of the industry. PDAC85

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Industry Advocate PDAC keeps important issues front and centre with unflinching focus on policy

A

dvocacy on policy issues is an essential part of PDAC’s role as the representative for the minerals industry. In fact, PDAC was established to address a policy that would have placed an undue burden on mineral explorers, who were already struggling during the Great Depression. In 1932 a group of prospectors came together to fight the policy and held a gathering that would become an annual tradition, eventually From left: Andrew Cheatle, PDAC Executive Director , Jim Carr, Canadian Minister of Natural growing into today’s PDAC Convention.

Resources and Rod Thomas, PDAC Past Over the years PDAC has expanded its policy work and President, at the PDAC 2016 Convention. adapted its priorities along with the continuously changing flow-through shares regime, the Mineral Exploration Tax Credit, landscape. Today it remains as focused as ever on important policy exploration assistance programs and prospector grants. Through issues facing the Canadian exploration and mining industry. its Securities Program, PDAC advocates for regulatory reforms PDAC engages in a variety of advocacy, research and policy that reduce the costs of raising capital in Canada by supporting work. The association annually submits recommendations for prospectus exemptions and a “junior friendly” regulatory the federal budget and co-develops and presents key industry continued on page 42 framework. issues in a submission for the Energy and Mines Ministers’ Conference. Representatives from PDAC hold regular meetings with elected officials, all political parties and federal departments.

Additionally, PDAC appears before standing committees, carries out lobby missions and ALWAYS PROSPECTING offers formal submissions to government WWW.GEOXPLOR.COM EXPLORING CLAYTON VALLEY & regarding regulatory proposals.

SURROUNDING AREAS FOR PDAC is focused on a number of key SPECIALTY MINERALS & A DECADE policy areas: access to capital; access to land; EXCEPTIONAL PROJECTS Aboriginal affairs; responsible exploration; LITHIUM, COBALT, VANADIUM, supporting Canadian companies abroad and GRAPHITE, FRAC SANDS, access to skills.

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ACCESS TO CAPITAL Capital is essential to mineral exploration and development and PDAC undertakes a number of activities to maintain Canada’s place as the number one jurisdiction in which to raise capital for exploration and mining, and to facilitate capital flows into the mineral exploration industry. Through its Finance and Taxation Program, PDAC analyzes the role of tax and fiscal policy in attracting capital to Canada for the purpose of exploring for, or developing, mineral deposits. The association advocates for fiscal incentives, such as the

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ACCESS TO LAND This area encompasses a number of policy issues related to enhancing certainty for industry, maximizing access to prospective land, improving efficiency and reducing access costs and delays. PDAC works to support responsible access to the prospective land which is critical to the industry. The association also promotes more certain delineation from authorities regarding which lands are available for exploration. As such, it advocates mineral potential to be considered in a rigorous and systematic way as part of the land withdrawal decision making process. PDAC works to reduce the cost of land access by supporting infrastructure investments and fiscal incentives which offset the cost of accessing remote locations. At the same time the association works with regulators on regulatory issues to improve certainty, and reduce unnecessary access delays. PDAC also promotes exploration efficiency by pushing exploration companies to adopt cutting-edge discovery practices and improving the type, quantity, quality and accessibility of public geosciences information available to explorers.

ABORIGINAL AFFAIRS The Aboriginal Affairs Program is responsible for developing and implementing activities to support greater understanding and

co-operation between Aboriginal communities and the mineral industry in Canada. The association is committed to improving relationships between mineral companies and Aboriginal communities. It organizes the renowned Aboriginal Program at its annual convention and co-developed the Exploration and Mining Guide for Aboriginal Communities. PDAC also works to enhance Aboriginal participation in the minerals industry by advocating for government support for education, skills training and capacity building for Aboriginal peoples as well as government resource revenue sharing with Aboriginal communities.

RESPONSIBLE EXPLORATION The association supports the industry’s efforts to enhance its social, environmental and health and safety performance.

Specifically, PDAC created the information resource e3 Plus: A Framework for Responsible Exploration to help companies adopt leading practices in the field, and which is freely available online. The PDAC Corporate Social Responsibility Program also undertakes activities related to things such as learning, dialogue, and information exchange between PDAC members and other experts and industry stakeholders, as well as strengthening the business case for responsible exploration.

SUPPORTING CANADIAN COMPANIES ABROAD

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PDAC undertakes activities related to the global competitiveness of Canadian companies operating abroad. Towards that end, the organization works to influence the development of Canada’s trade strategy and advocate for effective investor-state dispute resolution provisions in trade agreements.

PDAC also works to raise awareness of the industry with trade commissioners using research demonstrating the value to Canada of mineral exploration undertaken overseas.

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For any industry to succeed it needs a steady infusion of skilled individuals. PDAC continues to create opportunities to attract, retain and support geoscience students to pursue a career in the mineral exploration industry through outreach and engagement initiatives as well as at the annual convention.

Programs like PDAC`s annual StudentIndustry Mineral Exploration Workshop, (S-IMEW) and the Mentoring Program help attract people to the mineral exploration industry to meet current and future human resource requirements. PDAC85

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The Bedrock of an Association Volunteers remain central to PDAC’s existence and its effectiveness as an industry representative

BY KRISTY KENNY

T

he Prospectors & Developers Association of Canada (PDAC) would not exist without volunteers.

That’s a fact. The generous time and efforts donated by industry professionals is as important today as it was 85 years ago when the association was founded.

From these humble beginnings, the association quickly grew to become a representative for Ontario’s prospectors

and the mineral exploration industry. All the while, the efforts were being carried out on a volunteer basis.

The first membership fees – $1 per year – were introduced in 1942. However, for the most part the association had no source of revenue. Even the PDAC Convention didn’t generate significant funds until the 1980’s. continued on page 44

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The convention, which expanded to a threethe association needed to expand beyond volunToday, the day affair by 1945, was organized by industry teers to be able to seize new opportunities. association professionals who went entirely unpaid for their Today, the association employs 25 permaemploys 25 nent staff, a conservative number that surprises efforts. This commitment to bringing the mineral exploration and mining community together many given the incredible reach of the PDAC perma­nent staff, trademark.

Even now, with a solid body of staff, each year to discuss the issues they faced, to a conservative collaborate and share new ideas and information, the successes of the association could not be number that and to educate each other about evolving trends achieved without the guidance and commitment surprises many and technologies, essentially built the foundaof volunteers. tions of the four-day International Convention, PDAC’s Board of Directors consists of given the incredible 36 members. All of them generously volunteer Trade Show & Investors Exchange that is known reach of the PDAC their time and expertise. around the world today. trademark.

It is not uncommon to see the same Board PDAC has established itself as an iconic members sitting on — or even chairing — one brand and has earned a highly-respected reputation in Canada and internationally. It represents or more of PDAC’s 16 committees. Committees almost 7,500 individual and corporate members, acting as the are categorized into specific areas of focus, including: Aboriginal greater voice of Canada’s mineral exploration and development Affairs, Audit, Awards, Convention Planning, Corporate Social industry to ensure a responsible, vibrant and sustainable sector.

Responsibility, Executive, Finance & Taxation, Geosciences, Throughout the years, PDAC has come a long way, evolving Health & Safety, Human Resources Development, International, with the demands of the industry. Most modern developments, Lands & Regulations, Membership, Nominating & Governance, such as membership growth, events and reaching financial stabilPublic Affairs, and Securities. ity became more prominent from the 1980’s onward. From here, Through these committees, around 200 volunteer members bring their intricate, industry-specific knowledge and understanding to the centre of the association.

At least one permanent staff member supports each committee, which are considered the backbone of the PDAC. It is this behind-the-scenes strategizing that ultimately guides the direction of the association on behalf of its members, much like it did 85 years ago, but now with more man-power, preparation and influence.

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FEATURE STORY

Glenn Mullan addresses attendees at The Northern Miner’s Canadian Mining Symposium in London, U.K. in 2017. CREDIT: MARTINA LANG

1-on-1 with PDAC President Glenn Mullan

BY TRISH SAYWELL

I

n December 2016 Glenn Mullan was appointed as the 36th president of the Prospectors & Developers Association of Canada (PDAC). He has spent the last 40 years working in the mining industry and currently serves as president and CEO of Golden Valley Mines and chairman of Abitibi Royalties.

Q How did you come to decide you wanted to be a prospector? Does mining run in your family?

A I had an uncle who was a mining engineer and cofounded McPhar Geophysics, which evolved into Phoenix Geophysics, and they were pretty well known in the 1960s and 1970s for pioneering induced-polarization (IP) surveys, and I guess he gave me my break and opened the door.

Q What sort of work were you doing for him, and where did you go?

A I started off with contract geophysical surveys and the first two places I went to were the Northwest Territories and the Yukon.

I loved being in remote areas. It wasn’t just the geophysics, it was early-stage mining exploration in places like Kirkland Lake, Ignace, Manitouwadge, Timmins, Val-d’Or, Chibougamau, Port Hardy and Hemlo.

Hemlo was an important one. I was 18 or 19 years old, and through Hemlo, I could see all of these guys dressed up in suits and ties — the bankers and promoters from Vancouver and Toronto — were lined up to meet people in T-shirts — the prospectors. That was the first time I saw that the guys in T-shirts from places like Kirkland Lake and Val-d’Or had all the power. It left a strong impression. The guys in suits and ties wanted to meet the prospectors and do deals. And helicopters were coming and going, deals were flying off the table.

Q You studied geology and earth sciences at Concordia University in Montreal. What did you do after graduating?

A I moved to Val-d’Or the day after graduation and started working as a prospector. I never had a classic job, I always worked as a prospector because I just liked being independent and staking continued on page 46

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Glenn Mullan pit sampling in 2012 in Northern Province, Sierra Leone.

claims, trying to interest someone in them, using those basic geology skills and trying to evolve different land packages into transactions that would result in exploration and testing my ideas, and so on.

After a few years there was a brokerage firm — at that time it was called Yorkton Securities — that kept coming around in 1994 and 1995, and telling me that I should take my business of staking claims public.

They liked that I was retaining royalties and shares in most transactions, including advances on royalty payments. They said I should sell the business plan and take it public, but I didn’t want to do that at all.

Q Why not?

A I had no shareholders, no stakeholders, only one or two partners and I loved the private business. It was fun and it was lucrative, and I answered to pretty much no one.

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Q What changed your mind?

A Something called Bre-X happened. And I remember the date: March 25, 1997. It was the date the market imploded (and my youngest daughter was born). There were stark lessons for lots of us. I wasn’t working in Busang, Indonesia or in the Philippines.

But I watched the market implode and only Yorkton was still calling me, telling me to take the business public. And because most of our clients were disappearing or dissipating all of a sudden, I thought that going public wouldn’t be such a bad thing. So I did, and that’s when Canadian Royalties Inc. was created.

Q The public company was set up in 1999 and developed a nickel-copper-PGE mine in northern Quebec called the Canadian Royalties mine. What happened then?

A We ended up losing that company to a Chinese company called Jilin Jien Nickel Corp. in a hostile takeover. We had spent $352 million on the project, including mine infrastructure, earthworks and roads. But we put it on care and maintenance during the global financial crisis and that was when Jilin launched its hostile bid. They then spent another $2 billion on the mine build and put it into production. It has 300 employees and a full operating mill. It operates next to what used to be Falconbridge’s Raglan Division.

Q That must have been hard to take.

A The lesson learned was not to lose another one, and that’s why Golden Valley Mines looked at its holdings and said, “if it’s that easy to lose a project, we should spin out the Malartic CHL project into Abitibi Royalties.” That’s why Golden Valley controls Abitibi Royalties: to make sure there is no hostile transaction and that any transaction takes place through the front door, and not the backdoor. Because in 2011 or 2012, Osisko Mining continued on page 48

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Glenn Mullan collecting grab samples in Choluteca, Honduras.

had released batches of spectacular results and they were close to achieving full commercial production, and they already had piles of promising results for the zones on the property then owned

by Golden Valley. We thought there was a chance of someone launching a hostile takeover, and set up Abitibi Royalties — that’s why so few shareholders control it.

shareholders know exactly what the story is.

Given that Agnico and Yamana are spending a lot on exploration at Malartic, and even though the results have been robust, Abitibi’s trading volumes are pretty low. Not many people are buying the company to flip it — most are holders waiting to see what becomes of the royalty or the company.

Q Abitibi Royalties is very closely held.

Q Outside of Canada, you have developed something of an expertise in Africa

A I don’t really trust my math, but of the 11.4 million shares outstanding, Golden Valley owns 5.6 million, or 49.2%; Rob McEwen owns 1.3 million, or 12.3%; and the Quebec Labour Funds own 6%. So you’re up to 64–66%, and with the next four or five largest shareholders you get to 80%. So there are only 2.5 million shares left. Ian Ball, the president and CEO, has done a very good job of educating our shareholder base. Most of the

A I wouldn’t say that I’m an expert on Africa, far from it! We’ve had good opportunities presented to us and some of them were in Africa. I’ve looked at 14 countries in Africa to date — some of them we’ve worked in, and some produced interesting situations.

Q Do you have any examples?

A Let me be a bit coy on those

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Q What is your favourite country in Africa?

A Sierra Leone continues to be my favourite, despite the difficulties there. It’s such a great geological environment that it’s hard to be a prospector with a heart that beats and not be moved by Sierra Leone. Whether it’s base metals, iron ore, bauxite or diamonds, it’s just particularly well-endowed in its general geological conditions. But Sierra Leone faces so many challenges, there are many difficult things about it, especially if you’re a junior Canadian miner, because we don’t have a Canadian embassy there, and you’re competing one-on-one with China Inc. The Chinese companies are an obvious physical manifestation everywhere in the continent of Africa, whether it’s the railroads they’ve built, or the hospitals and other infrastructure. It’s hard to be a Canadian junior competing one-on-one with so many resources on the table. Those are parts of the challenge.

Q As president of PDAC, you want to encourage more young people to consider careers as prospectors.

A Every time I speak to students I tell them to consider prospecting as a legitimate vocation when they graduate, or even if they don’t graduate — not all prospectors have degrees in geology,

and some of the best ones don’t. Prospectors are well-suited for being early in, managing early-stage ventures and conducting business efficiently. The industry got away from that in the last decade or so. Conventional wisdom is such that the opportunities for young people normally follow a predictable path, from graduating, getting hired by a larger mining company and acquiring experience. That is viable for some, but so is being an independent prospector. Most students have not been exposed to it, and never considered how easy it may be by comparison.

Q How can young graduates afford to go there and stake claims without an income?

A It’s not difficult. It costs $39.73 for a prospecting licence in Quebec and $25.50 in Ontario. Of course it can seem onerous and daunting to go from Toronto to the north to stake a bunch of claims, but it’s actually not that expensive. Most of us have good family support networks, we’re not talking millions of dollars to stake some claims, we’re talking hundreds of dollars, and that’s really all it takes, and some entrepreneurial spirit trying to build something around it. It’s conventional, and most of the prospectors that are self-employed in northern Canada are not well-equipped continued on page 50

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Glenn Mullan on a prospecting and sampling trip in Quebec’s James Bay region in 2007.

financially, but that doesn’t prevent them from doing it. When circumstances align they are in a position to reap the benefit, but I do acknowledge it doesn’t happen that often.

Q What did your parents think?

A It was not traditional, so they thought: “He’ll grow out of it and get a job with a mining company,” and do what you’re supposed to do.

Q So when did you start staking claims?

A I started before I went to Concordia University. I began staking right after I read the book by Pierre Berton called Klondike at the age of 17 or 18, and it was staking claims that paid my way through university. I remember optioning my first claims to a company in Toronto from the staking rush in Quebec’s Casa Berardi district.

Q Did you have to borrow money from your family or friends?

A Nope, I used my Visa card. I never borrowed money from my parents. I had the Visa card, then a Mastercard and then a second Visa card, and I was able to pay them all off. I had a couple of claims around Matheson in Ontario and the townships of Munro and Hislop. I staked claims before and during university. That was my summer job when I was in school. I’d just jump on the motorcycle and go north from Montreal to Matheson and Val-d’Or.

Q How long did you stake claims before setting up your

first public company?

A I was doing it for 10 years before Yorkton started calling me. They kept seeing this “Numbered Co. Canada Inc.” staking claims. Pretty much every week I had deals, and every deal had a little bit of cash — as many shares as I could get — and an NSR royalty. The brokerage kept saying there was a real business there, but on a larger scale. In most of my transactions, by the third year the optionee would have to make significant cash payments — or advances on royalty payments — and that was what was vended into Canadian Royalties. By then there were over 100 royalties and advances on royalty payments from over 100 projects. That was a unique business plan because nobody else was doing it that way. PDAC85

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