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VOL. 27 NO. 44
www.terracestandard.com
Wednesday, February 24, 2016
Gold mine construction underway THE COMPANY building a gold mine near Stewart now says it needs less money than first calculated to bring the project into production. Bids by contractors wanting work are more competitive because there is less activity overall in the Canadian resource development sector, says Troy Shultz of Pretium Resources which is building the Brucejack gold mine. Because the project is priced in American dollars, but with costs paid out in Canadian dollars, the recently-fallen Canadian dollar compared to the American dollar has worked to the company’s advantage. “We’re getting a substantial savings from the exchange rate,” said Shultz of revised figures released last week which indicate the project now requires (US) $696.8 million compared to an earlier estimate of (US) $746.9 million. That earlier estimate came from a feasibility study completed in 2014. He says that companies are lowering their pricing to secure contracts because of the lack of work elsewhere. “Definitely we’re getting bids now that are a lot more competitive,” he said. “I believe we’re the only mining construction project now underway in B.C.”
PRETIUM RESOURCES PHOTO
PEDESTALS FOR accommodation buildings at the Pretium Resources gold mine being lowered into place. In one specific area, development of the mine’s underground workings from where ore will be taken, Pretium at first calculated it would have to provide its own equipment, said Shultz. But the company will now be using a third-party
mining contractor’s equipment that became available because of lack of work elsewhere. “That makes our costs there less expensive,” noted Shultz. Pretium’s revised financial model includes work-
ing capital for the first three months of operation once the mine has been commissioned. Pretium intensified its exploration and development work at the location in 2013, advancing through environmental reviews and agree-
ments with First Nations culminating in approvals for construction being granted last year. Construction work began last fall and has continued through the winter with work to accelerate this year leading to a late 2017 open-
ing. In addition to developing the underground works, construction is underway on the mine’s mill building, various shops and on a 330-bed camp for Pretium’s eventual workforce.
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More aboriginal pipeline buy-in predicted AS MANY as three coastal First Nations could sign on for a share of the Enbridge Northern Gateway pipeline project in the coming months, says an aboriginal leader closely identified with the project. They will join 28 First Nations and Metis groups who have already negotiated deals for their portions of the 10 per cent of the project set aside for aboriginal owner-
ship, says Bruce Dumont, the president of the Metis Nation of B.C. Dumont, along with three other aboriginal leaders, are referred to as stewards representing those who have become aboriginal equity partners in the project. Those aboriginal partners are First Nations and others with land interests along the planned Northern Gateway pipeline route which spans
1,170 kilometres from Bruderheim, Alberta to Kitimat. Should it be built, there will be two pipelines running parallel to each other –– one to carry crude from Alberta to a marine export terminal at Kitimat and a second to import an oil-thinning agent known as condensate which then makes it easier to pump crude through pipelines. “Those agreements have been underway for quite
awhile,” said Dumont of the three pending deals with coastal First Nations. “I can tell you there is support and there is more support to come,” Dumont added of the Northern Gateway project. Those First Nations who are partners in Northern Gateway went through what he called a “learning process” to better understand how the pipeline will be
built, what its economic and other benefits will be and what environmental protection measures will be in place. Dumont said the 10 per cent aboriginal ownership stake of the Northern Gateway project, now estimated to cost in excess of $8 billion, provides First Nations and Metis with needed business and employment opportunities and a say in how
it is developed. “What we are, are owners. We speak as owners of the pipeline,” added Dumont indicating the 10 per cent aboriginal stake works out to $800 million in equity. That $800 million figure, Dumont continued, represents a big step forward for aboriginal groups eager to build economic self-reliance.
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Hobiyee 2016
Cutting ties
Winter Games
Communities come together to celebrate the Nisga’a new year \COMMUNITY A10
CBC is cutting its ties with CFTK-TV and other small stations \NEWS A14
Terrace youths will face athletes from across B.C. this weekend \SPORTS A24