Mining Life & Exploration News - Winter Issue

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Northern College is your pathway to the mining industry Northern offers several programming options in the field of mining. Discover the right one for you.

Bachelor of Mining Engineering Technology (BTech) This new diploma to degree program from Queen’s University combines technical expertise with the managerial skills that industry needs for the next generation of mining professionals.

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Mineral Exploration Techniques The Mineral Exploration Techniques program from Northern College’s Haileybury School of Mines (HSM) is a new post-secondary program designed for those interested in gaining entrance and a competitive advantage in the mineral exploration job market.

The 1-year certificate program provides entry-level knowledge and skills to function as a valuable member of a mineral exploration team on projects in grassroots exploration to mine-site exploration.

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Diamond Driller Assistant Common Core This 10-week modular training program includes extensive hands-on training delivered by skilled instructors with comprehensive drilling experience.

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By Glenn Dredhart, Publisher/President

Technological innovation is all around us changing the we live and work. The mining industry is no exception.

In 2019 the Canadian Mining Expo being held in Timmins June 4-6 will look at the changes that technology is bringing to the mines and the discovery of mines.

Ground-breaking technology is making mining operations better.

Mines are getting more environmentally friendly, productive and safer underground working conditions for

miners are at the forefront.

One of the main drivers of introducing new technology is the need for deeper mines.

The biggest challenge is that productivity is decreasing because, near surface deposits have been depleted. Companies are looking to technology to reduce the cost of mining at greater depths.

Mines will be deeper, that means greater cooling and ventilation will be required. To reduce the cost of cooling a mine and pumping in clean air mines are replacing diesel powered equipment with all electric battery powered equipment.

“There are a lot of competitive advantages of bringing innovation into your company, because you will become more productive, more energy efficient and you are going to reduce your mining costs,” explains Samantha Espley, General Manager, Vale Mining and Mineral Processing Technical Excellence Centre. “ In some ways it is easy to make de-

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cisions in terms of where we have to go,” says Tony Makuch President and CEO of Kirkland Lake Gold.

“We focus on how we mine faster, safer, more productively and responsibly all the time.”

His company has introduced Artizan battery electric vehicles as their primary mode for hauling ore to the surface.

Goldcorp’s Borden Lake Mine, 160 km west of Timmins is set to become Canada’s first all electric mine in order to reduce their operating costs.

Going electric is a major part of Goldcorp’s drive to increase production by 20% by 2021. Goldcorp anticipates a significant reduction in greenhouse gases, about 70 percent and an annual savings of $9 million per year on diesel, propane and electricity.

When fully operational Borden Mine will have about 4 km of underground roads for accessing rock faces and hauling ore to the surface.

Technological improvements are also Cont’d on pg. 5

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Editorial Index

Publisher’s Note -Technology, Innovation and Future of Mining Goldcorp’s Borden Gold, “The Mine of the Future” Kidd Creek, encouraging signs point to extended mine life Iamgold Cote Project ready to go Ford government favours mining friendly approach Mining Success and Indigenous participation go hand and hand Kirkland Lake Gold prospers as town celebrates 100 years Moneta Porcupine Mines moving forward Gowest looks to commercial production in 2019 River Valley Project, largest undeveloped primary PGM deposit Wesdome announces third quarter production Tahoe resources sells to Pan American Silver McEwen Mining sees prosperous future in its Timmins properties Mining water challenges are complex. The solution is simple.

Harte Gold's Sugar Zone Mine opens near White River Detour Gold poised to shift gears Newmont & Goldcorp combine to form the worlds largest gold mining company Victoria Gold Mines newly permitted, privately owned GOLD MINE-Timmins East

Cont’d from pg. 4

having benefits to the environment by reducing the amount of diesel fuel for example and reducing the amount of greenhouse gases released by a mine.

The costs involved in developing new technology has also led to greater cooperation between mining companies.

Glencore’s Onaping Depth project at their Craig Mine, north of Sudbury is another example of an Ontario mine embracing an all electric future. The mine will be about 2 km deep and with depth comes increased need to provide ventilation to reduce the hot temperatures. Switching to battery electric operations reduces the amount of diesel contamination and

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the reduce ventilation costs.

Another Sudbury mine, Vale’s Totten Mine was built with the capacity for rapid data collection and information sharing from the mining area to the surface. The mine uses advanced technology such as its Miner Operated Survey System (MOSS), Ventilation on Demand System (VODS) and Distributed Control System (DCS).

These are wireless communications systems that provide information on what is happening underground to make decision on the optimal areas for drilling ore and avoiding waste rock. The system also tracks the location of every worker. In addition, based on data of where the workers

are decisions are made on which areas to ventilate and which areas to shut off lighting and ventilation thus saving cost for Vale. This can save up to 50 percent of costs.

Mining companies are no longer doing their own thing, they are working together under a new model.

Mines want innovative technology, it’s good for the planet, the health and safety of the workers and the communities.

It is our goal here at Mining Life to represent the interest and understanding of the mining industry in our backyard and beyond and we look forward to the challenge.

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Goldcorp’s

Borden Gold

“The Mine of the Future”

By Kevin Vincent

Goldcorp’s newest Canadian mine has a nickname that rolls off the tongue nicely, “the mine of the future”. The company’s Borden Lake Project, just east of the town of Chapleau, Ontario continues to draw attention as Goldcorp develops an environmentally sensitive, all-electric underground gold mine.

That objective, already underway, effectively means the mine of the future is actually the mine of today. That respect for the environment played a major role in talks with the region’s Indigenous stakeholders. In June, the company announced the successful signing of three Impacts and Benefits Agreements (IBA’s) with local First Nations groups including Brunswick House First Nation (BHFN), Chapleau Cree First Nation (CCFN), and Chapleau Ojibwe First Nation (COFN).

Those agreements in mid-2018 with respect to the development and operation of the Borden Gold project are a major milestone for all parties. Goldcorp now has collaborative agreements in place with 26 First Nations which assert Aboriginal and treaty rights in the vicinity of its operations in Canada.

Under the agreement, Goldcorp recognizes and respects the rights and interests these First Nations have around Page 6

the Borden project site, and the three First Nation communities recognize and support Goldcorp’s rights and interests in the development and future operation of the mine. The agreement also reflects Goldcorp’s commitment to protecting the environment and supporting Aboriginal social and cultural practices in a spirit of continued collaboration.

“Successful relationships are built on trust, mutual respect, meaningful engagement, and they require sincere commitment from all involved. I’m pleased with the work accomplished by the group and I feel very proud that Goldcorp is the first mining company to partner with the Brunswick House, Chapleau Cree and Chapleau Ojibwe First Nation communities. We recognize the importance of nurturing our partnerships and collaborating with our project neighbours to ensure the sustainability of the local communities surrounding Borden Gold,” said Marc Lauzier, Mine General Manager at Goldcorp’s Porcupine Gold Mines, responsible for the development of Borden.

In the meantime, Goldcorp was named in October as a $5 million funding recipient of Canada’s Clean Growth Program. The federal grant was announced at a ceremony at Borden Lake in late October. The invest-

ment is designed to spur innovation in cleaner, more sustainable mining.

“We believe the days of diesel use for underground mining equipment are numbered and electrification of our mobile fleet is a logical way to significantly reduce the mine’s environmental footprint,” said David Garofalo, Goldcorp’s President and CEO. “We are partnering with like-minded technology suppliers like MacLean Engineering and Sandvik, provincial and federal governments and First Nations to commercialize clean technologies, improve health and safety performance, and reduce GHG emissions with the aim of improving the viability, sustainability and profitability of our mines. It’s gratifying to see multiple levels of government support innovation and our vision of a safer, greener mining industry.”

The project would be funded by Natural Resources Canada’s Clean Growth Program, which is a $155 million investment fund for clean technology research and development and demonstration projects in three Canadian sectors: energy, mining and forestry.

“Improved environmental performance in Canada’s mining sector is one of the key paths to a low-carbon economy,” said the Honourable Amarjeet Sohi, Canada’s Minister Cont’d on pg. 8

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Cont’d from pg. 6

of Natural Resources. “This project helps advance clean technologies to commercial readiness, creates good middle-class jobs and reduces greenhouse gas emissions.”

Borden is a key part of Goldcorp’s plan to increase production by 20% by 2021 and is expected to begin commercial production in the second half of 2019.

Goldcorp has successfully spurred innovation in the mining sector through its #DisruptMining challenge and has invested over $10 million in a range of start-ups and new technologies in the past two years. #DisruptMining offers entrepreneurs a platform to bring disruptive and exponential technologies to the sector, whether it’s unlocking exploration opportunities; finding operational and production efficiencies; reducing the environmental footprint and delivering on sustainability commitments; or developing alternative ways to finance capital projects.

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Goldcorp’s Borden project will be starting a bulk sample extraction of up to 30,000 tonnes shortly, with the first sample expected by the end of the summer.

Brunswick House First Nation www.brunswickhousefirstnation.com Brunswick House First Nation is situated south of the Borden gold project on Hwy 101 East, near the town of Chapleau, Ontario. A member of the Nishnawbe-Aski Nation, BHFN is also affiliated with the Wabun Tribal Council.

Traditionally, members were mainly trappers and fur-traders. However, they are currently pursuing opportunities in mining, renewal energy, blueberry farming and provide for educational, health and employment & training opportunities for its’ membership.

Chapleau Cree First Nation www.chapleaucree.ca Chapleau Cree First Nation (Fox Lake Reserve) is situated 5 kilometres southwest of the town of Chap-

leau, Ontario. In 1989, the Chapleau Cree First Nation negotiated with the Federal and Provincial governments and the local municipality for land to establish a permanent community. Employment and infrastructure has increased over the years and the reserve now houses 30 homes, a senior’s residence (Mukeso House), Administrative Offices Band Complex (Isiah Saylor’s Complex), Health Centre, Public Works Garage, Water Treatment Plant, and the band-owned Pimii Kamik Gas Bar. They are part of the Nishnawbe-Aski Nation.

Chapleau Ojibwe First Nation www.chapleauojibwe.ca Chapleau Ojibwe First Nation is situated near the town of Chapleau, Ontario. Their historical kinship and relationship with the land draws them west to the shores of Lake Superior and south to the shores of Lake Huron, rather than north into Cree territory to the shores of James Bay. They are part of the Nishnawbe-Aski Nation.

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By Kevin Vincent

Speculation continues to swirl around the possibility of an extension to the life of mine for the world-famous Kidd Creek base metals operation in Timmins. The deepest and most prolific base metals mine in the world has a lengthy history of innovation, which is fueling rumours that Kidd may continue production well past 2022.

While the company’s official position is that Kidd Creek will wind up underground production in less than three years, drill results from a deep exploration program are creating a buzz that while the mine’s days are numbered, those days, perhaps years, might be longer than expected.

Sources confirm to Mining Life that the company is reviewing encouraging drill results that could deepen production efforts by another 2000 feet, well beyond the current 10,000-foot level.

In 2011, company officials braced the community that the life expectancy of Kidd would come to its conclusion by 2017. Not long afterwards, the news came that the new closing date on the calendar would be 2022.

The unique copper-zinc orebody, a replica of which has never been unPage 10

covered anywhere else in the world, has generally and loosely been described as an hourglass.

Since its discovery in the 1950’s, successive Kidd owner-operators have produced billions of dollars-worth of base metals commodities.

At least three Mining Life sources, who preferred anonymity, have suggested the deep drilling program is so encouraging, it could extend the life of mine out as far as 2028.

That would be welcome news to the city of Timmins and the surrounding area as it would also extend the company’s hefty local payroll for another decade, not to mention the company’s sizable supplies and services budget estimated at approximately $100 million annually.

One source puts it this way: “At current rates and market conditions, Kidd is planned to stop mining underground by mid to last quarter of 2022. At that stage all defined reserves would be depleted.”

The key phrase there is “all defined reserves”.

The question, of course, revolves around defined reserves. The latest exploratory drill program, which the company is keeping close to its chest,

implies Kidd may be ready to penetrate even deeper underground – into the bottom half of the hourglass. That program has not been added to the “defined reserves” part of the ledger, at least not yet.

That same source confirmed that “A drilling program underway is attempting to define further ore body continuation.”

Even further, “If successful, a confidence improvement program could follow to determine the feasibility of mining at depth and the potential of a life of mine extension. At this stage there is not enough data to predict if a mine extension was possible or to speculate on the number of years.”

While that source is cautionary, a second source confirmed to Mining Life that the economics are, on one level, encouraging. Years ago, when the company was looking to extend the life of mine, it conducted an 80hole drill program that outlined what would become the ‘D’ mine, the deepest part of the operation, which is referred to anecdotally as the bottom tip of the upper half of the hourglass.

The first five holes of this latest exploration program, according to a third source, imply the orebody continues much deeper than anyone could imagine.

The engineering challenge boils down to whether it makes economic sense for the company to penetrate that new orebody. Infrastructure, including the company’s VOD or Ventilation on Demand system, as well as its fiberoptic communications system and automated loaders are already established, all positive mitigating factors that the company’s Swiss owners will evaluate.

While company officials are guarded about releasing any public information at this point, the community continues to hold out hope that the news will be positive and that the life of mine may be extended in two to three-year increments.

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Cote Project ready to go

By Kevin Vincent

The community of Gogama and the cities of Sudbury to the south and Timmins to the north are all anxious-

ly awaiting the final green light that will see IAMGOLD’s $9 Billion Cote Project underway. The Highway 144 Cote project is still in the feasibility

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stage, but most observers are confident that the proposed open pit gold mine will be producing as much as 30,000 tonnes of ore per day.

The company filed its latest NI 43-101 Technical Report in late November 2018. While total reserves remained unchanged, 376,000 ounces were reclassified from proven to probable.

The company continues to estimate the Cote project will yield as much as 7.3 million ounces over its lifetime.

At the same time IAMGOLD filed the NI 43-101, it announced that its project partner, Sumitomo Metal Mining Co., Ltd. had completed a $95 million payment for its 30% interest in the project.

The operation will include the pit, an ore processing plant, maintenance garage, warehouse, and an administrative complex.

The Cote Gold Project straddles the Chester and Yeo Townships approximately 20km southwest of Gogama, the mid-way point between the cities of Sudbury and Timmins.

Gogama, located next to Lake Minisinakwa, is home to roughly 450 people and that number, along with real estate values is expected to climb as the IAMGOLD-led project begins construction. IAMGOLD holds a 64.75% stake in the property.

IAMGOLD purchased Trelawney Mining and Exploration in 2012 which had carried out exploration activities on the property since 2009.

The Cote project site is no stranger Cont’d on pg. 14

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Cote Project bigger than expected

Cont’d from pg. 12

to gold activity. The site has been explored and drilled since the early 1900’s by a number of companies and the focus of the mines and minerals division of the Ontario government.

As the history of the project begins to bear fruit, company officials are busy negotiating contracts with various suppliers and service providers from across the region, mostly in Sudbury and Timmins.

IAMGOLD describes the site as “characterized by gentle hills, forests, lakes and rivers. The Project area is located on two subwatersheds, the Mollie River system and the Mesomikenda River system. Additionally, the continental watershed divide is located south of the Project property, with the nearest boundary located southwest and more than 3.5 km from the proposed open pit location. Land use in the area consists of recreational activities by locals and tourists, including fishing, camping and hunting.

It is also extensively used for sustainable harvesting of timber.”

IAMGOLD currently produces about 800,000 ounces of gold annually from four mines on three continents.

Investor confidence in IAMGOLD is strong. In conjunction with the NI-43101 report issuance, and the Sumitomo cash payment, the company also announced in November that lenders were prepared to extend additional Page 14

credit. In fact, they doubled their operating line.

IAMGOLD announced it has amended its revolving credit facility, with the amount increased to $500 million from $250 million and the term extended to 2023. The commitments are secured by a syndicate of lenders led by National Bank of Canada and Deutsche Bank AG, Canada Branch, and including Citibank, N.A., Canadian Branch, Morgan Stanley Senior Funding Inc., Royal Bank of Canada, The Toronto-Dominion Bank, BNP Paribas, Canadian Imperial Bank of Commerce, Resources Québec Inc., and Export Development Canada.

To provide additional financial flexibility, the terms of the Corporate Facility were also modified to provide the option of securing a further $100 million through an accordion feature, as well as providing leasing for up to $250 million, up from $125 million.

“The doubling of our credit facility, together with the other financing options available, provide us with ample financial flexibility at a time when our organic growth projects have gained significant traction,” said Carol Banducci, EVP and Chief Financial Officer. “Our balance sheet is strong with $715 million in cash, cash equivalents and short-term investments, and our long-term debt of $400 million is not due until 2025.”

The $500 million Corporate Facility

will expire in January 2023 and the $100 million accordion is available under the same terms and conditions.

On the operational side, in an effort to strengthen its workforce and management team, IAMGOLD recently initiated an internal leadership training program that they are calling ILA, short for IAMGOLD Leadership Academy.

In addition, IAMGOLD continued to build its profile in northeastern Ontario by sponsoring the 1st Annual YMP (Young Mining Professionals) Toronto Chapter Mine Tour at Glencore’s Nickel Rim South Mine in Sudbury.

In September 2018 President and CEO Stephen Letwin told a Timmins Chamber of Commerce luncheon that the project will be bigger than they expect.

He said the project will generate more than $9 billion in economic activity over the estimated 17-year life of the mine as well as generating billions in payroll. Letwin said this would create a positive impact on the economies of Timmins, Sudbury, Gogama and Northern Ontario.

“The project is huge. It’s going to generate over $9 billion in economic activity in the region, $3.9 billion in wages,” said Letwin.

“The project we think will take about two years to build. It will create about 1,000 construction jobs, about 400 to 500 full-time jobs over the long term.

And it will have obviously a domino effect on the industry going forward,” he predicted.

A company update revealed that construction for the new mine is slated to begin in 2019 and the company is looking to hire the right people.

“During this time, Côté Gold will be recruiting for key management and supervisory roles in mining, geology, operations and maintenance as well as support roles,” said the company newsletter.

ARENA 2 FRONT 5-6

Page 15

In 2017, the province fell to second place and is expected to remain in second for 2018. Ontario can – and must – do better. Our government will work with industry and Indigenous partners to address key issues facing Ontario’s mining and exploration sector, including cutting red tape and curbing energy costs.

By Kevin Vincent

With the seemingly anti-development Liberal government firmly in its rearview mirror, domestic and international mining companies are looking forward to a new regulatory regime in Ontario under Doug Ford’s PC government.

The Fraser Institute, world-renowned economic thinktank, provides annual glimpses into jurisdictional attractiveness. The Institute Survey of Mining Companies rates 91 jurisdictions around the world based on their geologic attractiveness for minerals and metals and the extent to which government policies encourage or deter exploration and investment. Finland ranks as the most attractive jurisdiction in the world for mining investment, followed by Saskatchewan.

Quebec and Ontario are rank in the top ten globally.

On one of the dimensions of permittimes that the institute asked respondents to assess—how long it takes to receive the necessary permits — 85% of respondents in Quebec, 71% of respondents in Ontario, and 61% of respondents in British Columbia indicated that they received the necessary permits in six months or less. Canadian jurisdictions, on average, performed better on this measure when compared to competing jurisdictions.

Notwithstanding the relative attracPage 16

tiveness for Canada, Ontario has slipped over the years.

Mining Life wanted to ask two questions of Ontario’s new Mines Minister Greg Rickford. He didn’t have time to speak with us so his Press Secretary provided these responses to our two questions.

1. Ontario has seen a steady degradation of its standing as an attractive jurisdiction to conduct exploration and development. What is the government’s plan to reverse this trend and what specifically does Minister Rickford intend to do to lead this process?

Ontario is fortunate to be rich in mineral resources, supporting our renowned mining industry. Mineral production in Ontario supports 26,000 direct jobs and 50,000 mineral manufacturing and processing jobs.

Ontario’s mining industry is not only a major economic engine in the north, but it supports local economies across the province and is a key driver of the provincial economy as a whole. We are committed to supporting our mining industry, and we are committed to unlocking the incredible opportunities that exist in our northern regions.

Ontario was once the leader for mining exploration spending in Canada.

2. One of the common challenges facing exploration companies in Ontario is over-regulation. Is the ministry actively reviewing those regulations and if so, please be specific about the regulations that are identified as most concerning?

Our government will continue to take concrete measures to make Ontario open for business, grow the economy and help create and protect good jobs in northern Ontario and across the province. Ontario is lowering taxes, reducing regulatory burden and making life easier for people and businesses who want to invest in the north.

Part of our plan to make it easier to do business in Ontario is establishing a special mining group that will focus on speeding up regulatory approvals and attracting major new investments.

We look forward to insight from the group that will help us cut red tape and drive new mineral development.

IAMGOLD CEO Stephen Letwin has some insight. In a presentation to the Timmins Chamber of Commerce in late 2018, he told reporters afterwards that permitting in Ontario is a slow, grinding process.

“I am not going to turn this into a political talk but anything you could do to help us in the permitting with Cont’d on pg. 18

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Page 17

Lack of transparency seen as a deterrent to investment Cont’d from pg. 16

the government is welcome,” Letwin told the chamber audience.

“The one concern I have as a Canadian is that we get bogged in the mass of regulations.

It’s not to take away from the need to be environmentally friendly or the need to work with our partners, but it really seems to take a lot longer today and it’s a lot more expensive to get projects going.

“The problem is when you extend a project over time, you become vulnerable to price swings. That can hurt you quite badly,” he said, adding that gold mining can be difficult.

IAMGOLD will be spending more than $1 billion at Coté Lake before earning a cent. In a news release, the company said the initial capital cost will be $1.4 billion.

“I think it is a generic concern because we have seen delays. We haven’t encountered too many delays so far. I’d say it has been about a six-week delay in some of our stuff.

I am not going to name names, but it is always a concern of mine when it comes to a project this size that it is not going to move as quickly as you want it too,” Letwin said.

“You know if we call on our business partners to help us, we will be specific about what we’re seeing and why we need the help.”

Premier Doug Ford raised eyebrows during the 2018 Spring election when he suggested he was prepared to drive a bulldozer himself up to the Ring of Fire area in order to get that Page 18

multi-billion-dollar mining project underway.

When it comes to transparency Ontario still lags behind. When the Fraser Institute asked about transparency in the permitting process, 50% of respondents in Ontario, 48% of respondents in British Columbia, and 40% of respondents in Quebec cited a lack of transparency as a deterrent to investment. In contrast, only 9% of respondents in Sweden and Western Australia saw the level of transparency as a deterrent to investment.

This is an area where many Canadian jurisdictions performed poorly compared to their counterparts in the United States, Australia, and Scandinavia.

As with transparency, a number of the jurisdictions in the United States, Australia, and Scandinavia outperformed many of the Canadian jurisdictions in providing confidence that the necessary permits would be granted. On this measure, Quebec and Ontario perform better than British Columbia, and Western Australia performs better than all three jurisdictions. Specifically, in Quebec and Ontario, 90% and 88% of respondents indicated that they were either highly confident or confident that they would receive the necessary permits, compared to 73% in British Columbia.

According to the Ontario Mining Association, OMA there are: - 38 mine sites operating in Ontario Nickel, gold, copper, zinc and platinum group metals, Diamonds, salt, gypsum, talc, calcium carbonate, nepheline syenite and other industrial minerals - Ontario is the largest producer in Canada of gold, platinum group metals and nickel, and the second largest pro-

ducer of copper. The province is also a major producer of salt and structural materials.

- Mining benefits all areas of the province, providing a broad scope of employment and entrepreneurial opportunities.

- Ontario is one of the safest mining jurisdictions in the world and mining is one of the safest industries in Ontario, achieving a 96% improvement in lost time injury frequency over the past 30 years.

- Value of mineral production in Ontario was $9.9 billion in 2017.

Newly-elected Timmins mayor George Pirie, the former CEO of Placer Dome Canada, feels Timmins is one city that still has enormous potential.

In his opening address to citizens and the new council, Pirie outlined a number of possibilities.

“Our mining sector will continue to prosper as there is no better place to explore than from a base in Timmins.

There is no better place to locate your mills, refineries and smelters than here in Timmins. There is no better administrative center than here in Timmins from which to run your gold, base metal, battery metal, diamond or ferrochrome operations from,” stated Pirie.

Pirie added, “Our energy sector is unlimited with geothermal potential in our deep mines and frigid cold air in the upper levels. Why is this potentially important? Because the largest single cost in the cloud computing world that mines big data is air conditioning. Is it possible to attract these companies to Timmins? Well I can only ask why not, Sudbury has a neutrino laboratory.”

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Page 19

Mining Success and Indigenous Participation go Hand and Hand

one that dominates the Canadian hisHe’s a man on a mission. If Timmins’ tory around resource extraction, treanew mayor gets his way, a new era ty rights, and reconciliation. in relations between Ontario’s indig- As a starting point, Pirie wants to esenous peoples and municipal leaders tablish an organization comprised of is about to take place. Pirie was sworn municipal leaders such as himself and in as the city’s top politician in early area mayors, along with chiefs and December and he has made it clear band representatives from across the that he intends to dramatically alter north from traditional tribal territothe way Timmins does business with a ries. particular emphasis on relations with “It may not have any official legislaFirst Nations communities, their lead- tive power, we could call it a council, we could call it a senate, but we have ers and community members.

The former Placer Dome Canada CEO to start,” Pirie told Mining Life in an won a landslide victory over one-term exclusive interview. incumbent mayor Steve Black in the “In my mind, the reconciliation proOctober 22nd election. Black had cess has to be one where we are sitalso served a four-year term as a city ting beside one another, not across the councilor in addition to a failed bid table from each other,” he adds. to become the area’s MPP. Black ran Pirie says the reconciliation process as a conservative candidate and was needs to include recognition of tradisoundly defeated by the incumbent. tional territories, mutual involvement Pirie, meanwhile, has set his sights on in the healing process, and the introredefining the landscape of resource duction of a revolutionary new model extraction in Ontario, and the impact that works. it has on traditional First Nations ter- “The best model I’ve seen is the Alasritories. ka model where 13 indigenous corpoPirie hinted at his plan of action dur- rations were formed. Of course, this ing the campaign. In a 20-minute oversimplifies a very complex chalvideo released during the election, lenge, but the Ring of Fire is too imPirie spoke about his lengthy involve- portant for everyone involved to conment in negotiations with indigenous tinue negotiating the way it has been groups in Alaska that were based on done for the past decade.” an entirely different model than the Pirie is referring to the Calista NaPage 20

By Kevin Vincent

tion and their economic development group now based in Anchorage where all parties reached an agreement to safely and responsibly develop natural resources while providing significant opportunities to the Calista people.

From the beginning, Calista Corporation prioritized Shareholder involvement and environmentally responsible development.

Under the Alaska Native Claims Settlement Act, Calista’s regional leaders identified the Donlin Creek area as one significant potential. That potential was for Calista to fulfill an ANCSA mandate to safely and responsibly develop natural resources; and the significant potential to provide opportunities to Calista Shareholders and Descendants.

In 1996, Calista and The Kuskokwim Corporation struck an agreement for mining rights with Placer Dome, which has since been purchased by Barrick Gold.

Pirie was involved in that highly successful project and he’s anxious to bring that experience to bear in his new role as the head of Timmins city council.

“It allowed for a building of trust in the relationship,” Pirie ponders. “So that the Calista knew that their objectives of preserving culture and the environment were shared by everyone at the discussion table. But you have to be sitting at the same table to be able to build a trust in that relationship,” he adds.

“I see this being entirely possible with Timmins being at the center of it,” said Pirie. “Because it’s so obvious that the same type of opportunity exists in the James Bay Lowlands.”

Pirie goes on to add that it is time for things to move forward. “The status Cont’d on pg. 21

Pictured: Left-Timmins Mayor, George Pirie and Mushkegowuk Council Grand Chief Jonathan Solomon

Cont’d from pg. 20

quo is not an option. The reconciliation process has stalled and that has to change.”

In a November gathering of Mushkegowuk Tribal Council leaders in Timmins, Pirie reiterated what he said during the campaign. “I talked about the beauty of consultation and what that

meant, and what that could mean to advance the reconciliation objective.”

Pirie says he sincerely believes that the fundamental outcome today would be far different if companies operating in the northeast and northwest were dealing with the crown and First Nations as equal partners.

The challenge is everyone is mired in talks around IBA’s (Impact Benefit Agreements), MOU’s (Memorandums of Understanding), the environment and other matters according to Pirie.

He says the pendulum needs to swing the other way.

“In any situation where one party has a technical advantage over the other regarding a piece of land or property and then makes an offer on that property to the other party, it will be legally disavowed because the courts recognize that one party had fundamental information that should have been shared with the other person,” states Pirie.

His deep grasp and passion for the topic is not lost on indigenous leaders such as Mushkegowuk Council Grand Chief Jonathan Solomon.

Page 21

Kirkland Lake Gold prospers, as town celebrates 100th Anniversary

By Frank Giorno

Kirkland Lake, the town that gold built, is celebrating its 100th anniver-

sary in 2019.

In celebration of this northeastern Ontario historic town the mines that

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once stretched along the Mile of Gold readily come to mind, Lake Shore, Wright-Hargreaves, Sylvanite, TeckHughes, Toburn and of course the Macassa mine which is still in operation today.

The original mine owned by Macassa Mines Limited went into production in 1933. Over the years, the mine was owned by the likes of Lac Minerals, Barrick Gold Corporation and Kinross Gold before closing operations in 1999.

The Macassa property was purchased

by Foxpoint Resources from Kinross Gold and changed its name to Kirkland Lake Gold (KL) in 2002. With the dewatering of Shaft #2 and Shaft #3, the Macassa mine was back in business.

Kirkland Lake Gold restarted Macassa mining operations in 2002. By February 2016 KL had poured its millionth ounce of gold from Macassa since it resumed operations.

KL has been a steady producer of gold with 175,000 oz. in 2016, 194,000 oz. in 2017 and 240,000 oz in 2018.

“Kirkland Lake Gold is poised to achieve substantial production growth and improved unit costs in 2019. We will also continue to invest in exploration and additional production growth, with our plan being to reach one million ounces of annual gold production as early as 2021,” said Tony Makuch, President and Chief Executive Officer of KL. “While achieving one million ounces of production will be a significant milestone, it is more important that the growth we achieve continues to drive down unit costs, increases margins and positions us to generate substantial amounts of free cash flow going forward,” Makuch added.

Another reason for Macassa mine’s Cont’d on pg. 23

Page 22

Cementation erects 216 ft. headframe for Shaft #4 Cont’d from pg. 22

success is its low production cost.

Operating cash costs per ounce sold averaged $439 in Q3 2018, a 16% improvement from $521 in Q3 2017.

The all in sustaining costs (AISC) per ounce sold averaged $722, 14% better than $845 in Q3 2017.

The key to continued mining at Macassa is the development of Shaft #4 project at the South Mine Complex.

A 216 ft. headframe for the Shaft #4 project was erected by Cementation in October 2018. With headframe in place, Kirkland Lake has commenced construction on a four-compartment shaft that will have a total hoisting capacity of 4,000 tonnes per day of ore and waste.

Production from Macassa is expected to be similar to the 240,000 ounces produced in 2018 until the shaft is completed early in 2022, when it will increase significantly.

The new shaft will increase Macassa’s output to 400,000 ounces per year.

Once completed, Shaft #4 will support higher levels of production, lower unit costs and improve working conditions at the mine.

The first phase of the shaft construction will be to a depth of 5,450 feet and include a mid-shaft loading pocket.

Completion of phase one is targeted for the second quarter of 2022 at a capital cost estimated at $240 million.

Completion of phase two of the project will extend the shaft to about 7,000 feet. Work on phase 2 will begin after the commencement of production from phase one. Completion of phase two is targeted for the end of 2023 at an estimated capital cost of approximately $80 million.

The new shaft will also enable more effective underground exploration to the east of the South Mine Complex.

It will also help improve ventilation and general working conditions in the mine.

Today, one hundred years later, the town is still going strong and the Macassa Mine is a vital part of Kirkland Lake Gold’s operations.

KL also operates the Holt and Taylor mines just north of Kirkland Lake acquired through the purchase of St Andrew Goldfields in January 2016.

The mines out contributes to the

overall KL gold production totals.

The Holt mine has produced over 67,770 oz. (2018); 66,677 oz. (2017); and 57,086 oz. (2016). The grade of the gold has ranged between 4 and 5 g/t and the recovery rate has ranged between 94 and 95 percent.

The Taylor mine has contributed pro-

Cont’d on pg. 24

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Kirkland Lake Gold Ltd. is a growing gold producer operating in Canada and Australia that produced 723,477 ounces in 2018 and is on track to achieve significant production growth over the next three years, The production profile of the Company is anchored by two high-grade, low-cost operations, including the Macassa Mine located in Northern Ontario and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold's solid base of quality assets is complemented by district scale exploration potential, supported by a strong financial position with extensive management and operational expertise.

Page 23

Fosterville site reveals unique, high-grade zone Cont’d from pg. 23

duction of 58,633 oz. (2018); 50,764 oz. (2017), and 42,639 oz. (2016).

The grade of gold has ranged from 5.6 g/t to 7.55 g/t. The recovery rate has ranged between 95.1 and 96.5 percent.

While Kirkland Lake Gold has a historical connection with it’s Northern Ontario operation, it also operates the Fosterville Mine in Victoria, Australia as a result of a merger with Newmar-

ket Gold in 2016. KL also holds properties in Northern Territory of Australia where exploration activities are being undertaken at the Cosmo mine and Union Reefs area.

The Fosterville mine has an estimated 1.70 million oz. in reserve with an average grade of 23.1 g/t.

Fosterville has produced 356,230 oz. of gold (2018); 263,845 oz. (2017); and 151,755 oz. (2016). During that time the grade has ranged from 6.11

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Page 24

g/t in 2015, to 7.55 in 2016 and 15.8 in 2017.The recovery rate increased from 88 % in 2015 to 90.1% in 2016 and 95.0% in 2018.

The recent drilling results from the Swan Zone at the Fosterville site revealed a truly unique, high-grade zone that KL is bringing into production.

The company continues to explore for more zones like Swan at Fosterville and is encouraged by the fact that similar mineralization has been intersected in multiple locations.

Looking to the future KL sees continued growth in its gold production based on higher production at both Fosterville and Macassa. KL has set its production guidance as follows: Highlights of 2019 guidance include: • Production growth to 740,000 – 800,000 ounces, driven largely by significantly higher production at Fosterville, as well as increased production at Macassa • Operating cash costs per ounce sold to improve to $360 – $380 • All-in sustaining costs (“AISC”) per ounce sold to achieve significant improvement to $630 – $680 • Exploration expenditures estimated at $100 – $120 million, including capitalized exploration expenditures, with $85 – $100 million targeted for Fosterville and the Northern Territory in Australia • Sustaining capital expenditures of $150 – $170 million, with sustaining capital expenditures on a per ounce of gold sold basis expected to improve significantly from 2018 levels • Growth capital expenditures of $155 – $165 million in 2019, largely reflecting expenditures for the Macassa #4 shaft project and growth projects at Fosterville.

KL projections over the next three years envision a consolidated production growth of 10 – 15% per year with production of 740,000 – 800,000 ounces in 2019 to be followed by produc-

Production Breakdown

TROJAN TIRE INC.

tion of 850,000 – 910,000 ounces in 2020 and 945,000 – 1,005,000 ounces in 2021.

The break down per mine is: • Fosterville: Production to increase to over 500,000 ounces in 2020 and reach over 570,000 ounces by 2021 driven by higher grades and increased throughput in 2021 • Macassa: Production to reach 245,000 – 255,000 ounces in 2021, with output to increase substantially in 2022 with the commencement of production from the new #4 shaft • Holt Complex: Production, including output from the Taylor and Holt mines using the Holt Mill, to total over 120,000 ounces in both 2019 and 2020, increasing to over 130,000 ounces in 2021 (additional production potential at Holloway Mine, where advanced exploration work is commencing ahead of possible resumption of operations) • Northern Territory: Work at Cosmo Mine and Union Reefs is moving to the advanced exploration phase with a focus on evaluating a potential restart of operations as early as the second half of 2019 (no ounces from Northern Territory are included in 2019 or three-year production guidance).

For more info please visit www.klgold.com

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Page 25

Moneta Porcupine Mines Golden Highway Project moving ahead

By Kevin Vincent

It’s not called the Golden Highway for no apparent reason and Moneta Porcupine Mines (MPM) continues to carve out its part of that famous landscape. The junior miner is aggressively moving forward following the completion in late 2018 of a new geological interpretation model of high-grade structures 110km east of Timmins.

At any moment, the company expects to release an updated resource estimate on its Golden Highway Project. MPM says it has increased the number of structures to 58, scattered among six deposit areas. The company says 44 of the mineralized structures are part of the region known as the Branded Iron Foundation, while the remaining 14 are located along the world-famous Destor Porcupine Fault Zone (DPFZ).

“The Moneta geological team has completed a thorough and detailed re-interpretation of the high-grade controlling structures on six (6) deposit areas within the Golden Highway Project. Detailed alteration and mineralization logging, as well as structural interpretation has confirmed the continuity of the structures which form the basis of the wireframes currently being used in the pending resource estimate update,” Gary O’Connor, CEO & Chief Geologist commented, “A total of 58 mineralized structures have now been modelled, significantly expanding the scope of the resource which is due to be completed in early 2019. Interpretation has also identified additional mineralized zones on the project outside the current resource update highlighting additional exploration upside,” he added.

The new estimate is going to be well defined. Moneta has more than 350,000 metres of drill data.

The estimate will be based on 1,108 holes for 352,055.50m of drilling including 74 new drill holes for 42,880.50m completed between September 2017 and August 2018. The updated resource will also include the results of 25 drill holes for 11,781.22m drilled in early 2017, 11 drill holes completed in 2016 for 6,052.0 m and 112 drill holes completed during 2013-2014 for 49,719.0 m not previously included in a resource.

According to a company news release, a total of 1,300 mineralized intercepts were identified, relogged and assayed if not historically sampled, with structures confirmed and used in the development of the new resource model. On average each sediment hosted mineralized structure has been defined by over 59 drill intercepts.

The Company holds a 100% interest in five core gold projects strategically located along the Destor-Porcupine Fault Zone in the Timmins Gold Camp with over 75 million ounces of past gold production. The projects consist of the Golden Highway, North Tisdale, Nighthawk Lake, Kayorum and Denton projects. The Golden Highway Project covers 12 kilometres of prospective ultramafic/mafic volcanic/sedimentary rocks along the DPFZ hosting a NI 43-101 indicated resource estimate of 1,091,000 ounces (31.1 Mt at 1.09 g/t Au) and 3,204,000 ounces inferred (83.3 Mt at 1.20 g/t Au), clustered within four kilometres.

On December 24, 2018, Moneta Porcupine Mines Inc. announced the closing of a non-brokered private placement. The Company issued 3,333,334 common shares on a flow-through basis at a price of $0.15 per share for gross proceeds of $500,000 (“Gross Proceeds”).

Ian C. Peres, President and CFO commented, “This flow-through financing was fully subscribed by a long term strategic investor. This, in tandem with our other strong shareholders, will be instrumental as we release what we believe could be a transformational updated NI 43-101 resource estimate on our Golden Highway Project in January 2019.”

The Gross Proceeds of the Placement will be used to incur Canadian exploration expenditures that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) on the Company’s Golden Highway project, which will be renounced to the subscribers with an effective date no later than December 31, 2018.

There were no purchase warrants or finder’s fees associated with this Placement and the subscriber agreed to a common share resale restriction that expires in one year, in December 2019. The Placement is subject to a standard four month hold period and final regulatory approval.

Page 26

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Gowest Looks to Commercial Production in 2019

By Kevin Vincent

2018 finished with a flurry of good news for Gowest as the company continued its efforts to bring the Bradshaw Site gold mine just north of Timmins into full production.

The company is anticipating commercial production in 2019 with a peak of 50,000 ounces per year.

In late November, 2018 Gowest announced a much-needed injection of $5 million in a private placement that was expected to close December 31.

That private placement came shortly after the company provided a market update that included news it had entered into a custom-milling agreement with QMX Gold Corporation of Val D’or, Quebec. QMX will process Gowest’s ore at its Aurbel Mill.

In reaching the agreement, Gowest termed it a critical milestone, “one that had proven to be a major impediment in the company’s efforts to raise the additional funds needed to continue Bradshaw’s development, let alone for conducting further work on the rest of its more than 100-square-kilometre North Timmins Gold Project,” the company stated in a news release.

With that agreement in hand, Gowest actively engaged in discussions with a number of parties to identify the best way to raise new funding.

All of this couldn’t have come at a betPage 28

ter time for Gowest as pre-production work continued at the North Timmins Gold project.

Gowest completed more than 2000 metres of underground development in 2018, including commissioning a main ramp and portal of sufficient size for the future operating mine. The development was conducted at the 30, 45 and 60 metre levels.

Silling was also initiated as the first stopes are prepared for development.

The underground work revealed the gold structures, and according to the company, shown excellent continuity in the mineralization, and confirmed and enhanced the team’s geological model. Importantly, all of this has been completed with no injuries at the project to date, either at surface or underground.

At the same time, more than 28,000 tonnes of development material was stockpiled on surface for sorting, milling, and sale as a concentrate.

In preparation for future production, the water treatment plant has been made fully operational, and the discharge is environmentally compliant.

The ore-sorter, which is now completely enclosed in a dome building facility, has been commissioned and proven to perform as expected. Initial tests have shown that it should be producing gold bearing material from the

stockpiles grading 6 g/t to 10 g/t for trucking to the Aurbel facility for tollmilling. Previous milling and flotation test work showed 97% recoveries.

Additional work has demonstrated stable and competent ground conditions in the ore and waste areas, and a revised geological model has sharply expanded the potential of the mineralized area.

Gowest has completed an agreement to have the gold concentrate produced at the Aurbel mill sent for final processing and sale at Shandong Humon Smelting in China.

On the investor side, the past year has seen Gowest sharply enhance and de-risk its Bradshaw asset, including intersecting the highest gold values to date at 155 g/t gold in a new zone outside the resource. The team has also identified 20 new gold zones in bulk sample area, as well as two new high-grade gold zones north and west of main deposit. A 30-hole, 3,871-metre underground infill drilling program has been completed that has significantly enhanced the company’s understanding of the deposit. This included tightening drill spacing and increasing the technical team’s detailed knowledge of the mineralized structures. In addition to refining the deposit geometry to define stope limits and enhance grade control, this drilling clearly demonstrated the potential to add significant additional material to the resource.

President & CEO, Greg Romain said, “Despite the difficult market conditions, our team has much to be proud of. Meanwhile, we continue to work towards our plan of making Bradshaw a commercial mine. We are currently reviewing our financing options, and we are hopeful that we will be able to provide a further update in this regard before the end of the year. Meanwhile, on behalf of the Board and our management team, we appreciate the support we have received from our shareholders, and we look forward to providing them with the proof that their patience has not been in vain.”

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River Valley Project, the largest undeveloped primary PGM deposit in North America

ing on green metals like palladium The demand for palladium has buoyed and lithium. the hopes of New Age Metals, an On- Palladium is used as a thin coating on tario-based mining company, focus- ceramic filters inside of catalytic conBy Frank Giorno

Page 30

verters in automobile engines, a market that analysts expect to increase in the coming years as China strives to reduce smog causing emissions.

New Age Metals is financed for the projects first economic study, a preliminary economic assessment (PEA) which is scheduled to be completed by the end of Q2, 2019. From there, the company plans to attract a financial partner that is capable of funding the project through to production and begin mining east of Sudbury where it has a 16 kilometre deposit known as River Valley.

“When you add all this up, a production decision could be two to three hundred million dollars and so that’s why we’ll need a capable partner sometime in the near future,” Harry Barr, Chair and CEO of the company declared.

The River Valley project is the largest undeveloped primary PGM deposit in North America, with an updated measured and indicated resource of 3.29 million ounces of PGMs and Gold which is 4.6 million ounces of Palladium equivalent. This is accompanied by an inferred resource of 1.5 million ounces of PGMs and gold and 2.7 million ounces of palladium equivalent. This updated resource included the four-kilometer River Valley Extension, a new acquisition in 2016 which takes the entire property to 16 kilometres.

“New Age Metals is perfectly situated to produce palladium and other green metals,” said Harry Barr.

“Close to the Sudbury refineries, the River Valley project is just 100km east of Sudbury, and its entire 16 kilometres is mineralized,” he added.

In an interview with CBC News Harry Barr said that recent exploration in the northern portion of the property has discovered the Pine Zone and new Cont’d on pg. 32

NORTHERN ONTARIO’S

NEWLY PERMITTED

RI A O T C VI

PRIVATELY OWNED MINE:

G OLD MIN

ES

EAST TIMMINS LIMITED

Seeking Financing or Joint Venture partner to start Phase 1 and 2 production Mining / Exploration drilling + Positive 96,000 T bulk sample completed in 2014-15: 2.39 g/t, $10,000,000.00, 91.8% recovery + May 2018: 3,800 T shipped to McEwen Mill: 2.7 g/t, $525,000.00 92% recovery + Existing production mining permit and environmental closure plan approved PHASE 1: Planned production of existing open pit. Syenite hosted gold resource: The open pit plan is estimated at $100,000,000.00. Oct. 2018 Government approved starter pit 861,797 T @ 1.8 gpt Au outlined (~50,000 oz. Au) utilizing an approved 2-4 year mining plan. Looking for funds to go into production!

PHASE 2: Resource 5,784,268 T @ 1.17 gpt Au (~220,000 oz. Au) $350,000,000.00 utilizing historic and recent drilling holes (open pit) +Investigating Steinert Optical Sorting “2-3 times the grade” test gravity mill spring 2019 + Exploration diamond drill plan targeting advancing inferred resource into an indicated category + Sizeable property tenure, identified underground ramp high grade resource and many other gold indicated areas of interest on the property. Blue Sky resources 900,000 ounces of .98 g/t (visit website for Blue Sky resources data). With a positive infill drilling program the Victoria Gold Mines (Blue Sky resource) could become a multi million ounce operation! + Great indicators to move forward with exploration drilling for a multi million ounce stand alone mill.

Financing on flexible terms including loan on forward sales.

Victoria Gold Mines Arrow Project is situated in the Larder Lake Mining Division and is located immediately south of Matheson, Ontario in Hislop Township.

The Arrow Project lies adjacent to the Trans Canada, Highway 11, power lines, natural gas and railway infrastructure in addition to an experienced local workforce along with other mines and mills near by.

www.victoriagoldmines.com Contact: David Larche, President and CEO Phone: 1.705.266.4416 or email dave.larche1@gmail.com Page 31

New Age Metals philosophy is to be

A Project Generator

Cont’d from pg. 30

geophysics identified several other potential drill targets that adjoin existing mineralization.

When the New Age Metals project goes to production, River Valley would be the second palladium mine in all of Canada. The other producer is North American Palladium, near Thunder Bay. A significant advantage to the project is the fact that it’s within 100km of Sudbury’s smelters, a much shorter distance for New Age to ship its concentrates than North American Palladium’s 1000 km haul.

The price of Palladium, the prominent metal at River Valley is trading at $1,150.00 USD (November 22, 2018) and during November reached an all time high of $1189(USD).

Palladium is one of the rarest metals on earth, about 15 times more rare than platinum and 30 times more rare than gold. It belongs to the platinum group of metals.

Now, around 80% of the world’s palladium production originates from Russia and South Africa, Russia alone accounts for roughly half of the world’s production, which is estimated to be 200,000 ounces per year. This can create cause for concern as any decrease in exports from these countries can contribute to volatility in palladium prices.

Page 32

Current exploration efforts at the project include ground proofing efforts of multiple geophysical targets based on recommendations from the 2018 interpretation of the Abitibi Geophysical study.

The objectives of the program are to find the surface extensions of the higher-grade Pine Zone and to delineate drill targets on new geophysical anomalies in the northern portion of the project. Results will be used to help NAM’s technical team design a 3-phase drill program to be carried out in 2019 after the completion of the PEA. But the quest for palladium and other PGM’s is only part of New Age Metals mandate. They are also actively searching for lithium, another mineral that is in demand for the development of electric car batteries and energy storage.

“New Age Metals is actively searching for palladium to help reduce pollution from gasoline engine cars, but we are also keeping an eye to the future growth of electric car vehicles,” Barr said.

“Today 80 percent of vehicles are gasoline powered. We potentially have the resources to provide minerals for both conventional cars or electric vehicles,” Barr said.

The Lithium Division (Li) has 8 Li Projects, of which 3 are drill ready.

New Age Metals philosophy is to be a Project Generator, Explorer and Project Operator, with the objective of Optioning/Joint Venturing our Projects, with Major and Junior Mining Companies, through to Production.

The Lithium One Project is in an historically known pegmatite rich area.

The project contains several lepidolite and spodumene bearing (lithium– rich minerals) pegmatites in southeast Manitoba. The area was discovered in the 1920’s and was the first spodumene production in Canada. Small tonnages of spodumene were hand mined during the late 1920’s from the Silverleaf Pegmatite. Numerous pegmatite bodies exist on the property with the most substantial pegmatite to date being the Silverleaf Pegmatite. In 2016 the Company carried out a small ground proofing program to confirm the historic lithium assays of several of the pegmatite bodies as well as the larger pegmatitic granite.

Field surface sampling yielded assays for the Silverleaf Pegmatite up to 4.33% Li2O, 2.08% Rb2O and 0.04% Ta2O5.

The Lithium Two Project is an historical, known spodumene (a lithium– rich mineral) bearing pegmatite deposit also in southeast Manitoba that was discovered and explored in the late 1940’s. Two main pegmatite bodies exist on the property, the Eagle and the FD No. 5 Pegmatite. In 2016 the company carried out a small ground proofing program to confirm the historic lithium assays. Field surface sampling yielding assays for the Eagle Pegmatite up to 2.44% Li2O and assays up to 3.04% Li2O for the FD No. 5 Pegmatite. Drill permit applications are currently being reviewed by the Manitoban Government for the Lithium One and Lithium Two projects.

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Page 33

Wesdome Gold Mines Reports a Successful 2018

By Frank Giorno

Wesdome Gold Mines Ltd, competed a successful 2018 year at its Eagle River Complex.

Results of the 2018 fourth quarter (Q4) released in January 2019 indicated gold produced to 17,254 ounces compared to 15,797 oz during Q4 2017 for a 9 percent increase.

Over the full 2018 production year 71,625 oz. of gold was produced compared to 58,980 oz. during 2017 for a 21 percent increase and a 50 percent increase since 2016.

Wesdome has had over 30 years of continuous gold mining operations in Canada. It has two operating mines at the Eagle River Complex in Wawa, Ontario. The Eagle River Underground Mine and the Mishi Open Pit Mine.

“Over the last two years, we have been focused on re-investing capital into exploration, infrastructure, and development at the Eagle River Underground Mine. This strategy has clearly been the right approach, as production is up 50% since 2016, and head grades have increased year over year,” said Duncan Middlemiss, President and CEO of Wesdome.

Page 34

Over the last two years, the Eagle River Mine has been producing gold graded at between 10.60 g/tonne and 11.73 g/tonne. The Mishi Open Pit has achieved lower grades of 2.0 g/ tonne to 2.43g/tonne in the ore extracted. However, Eagle River Mine has increased the grade of the ore mined.

“We see this trend continuing in 2019, with head grades expected to average over 15 grams per tonne on the low end, a 28% increase over this year.

This would not have been possible without the hard work of the team at Eagle River. On behalf of management and the board of directors I would like to thank the Wesdome team on delivering an excellent 2018, achieving results in line with our upward revised guidance,” Middlemiss added.

“This strong second half is a result of mining the high grade ore at the 303 lense commencing in Q3,” Middlemiss said.

The total tonnes of ore milled also increased at the Eagle River Mine from 157,250 tonnes in 2017 to 185,171 in full year 2018. During Q4 2018 50,536 tonnes were milled compared

to 39,291 tonnes in Q42017.

At Mishi tonnes of ore milled declined to 8,478 tonnes in Q 4 2018 from 38,197 in Q4 2017. The numbers were also lower for full year 2018 – 70,633 tonnes compared to 152,591 tonnes in 2017.

The total gold production that was sold in the Q4 2018 dropped slightly to 18,077 oz. compared to 19,351 oz. in Q4 2017. However, the gold production sold in full year 2018 increased to 70,480 oz compared to 57,770 oz in 2017.

Revenues from the sale of gold in Q4 2018 was $29.4 million (Cdn) compared to $31.3 (Cdn) in Q4 2017.

Total revenues from gold sales was up substantially in full year 2018 $115.9 million (Cdn) compared to $94.9 million (Cdn) in 2017.

The average realized price of gold over Q4 2018 was $1,627 (Cdn) compared to $1,618 (Cdn) in Q4 2017. For full year 2018 the average price was $1,645 (Cdn) compared to $1,643 (Cdn) in 2017.

The 2019 guidance for Wesdome is set to produce between 72,000 oz. and 80,000 oz. combined from Eagle Cont’d on pg. 35

Wesdome 100% Canadian Focused Cont’d from pg. 34

River Mine and Mishi Open pit. The grade of gold is projected to be 16.5 g/tonne at Eagle River and 2.5 g/ tonne at Mishi.

The Wesdome is 100% Canadian focused with a pipeline of projects in various stages of development. The Company’s strategy is to build Canada’s next intermediate gold producer, producing 200,000 ounces from two mines in Ontario and Québec.

In addition to its Eagle River Complex, Wesdome is actively exploring its brownfields asset, the Kiena Complex in Val d’Or, Québec. The Kiena Complex is a fully permitted former mine with a 930-metre shaft and 2,000 tonne-per-day mill. The company has further upside at its Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario. Wesdome has approximately 135.0 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.

“At Kiena, we are continuing with our aggressive underground drilling and development program with the objective to expand the current resources base and release an updated resource estimate during 2019,” Middlemiss said . “Focus areas of drilling include targeting the potential up plunge extension of the Kiena Deep A Zone, the A Zone at depth, in-mine targets such as the VC and S-50 zones, and definition drilling existing resources to convert to the reserve category. Our goal with 2019’s program is to be able to make a restart decision later in the year.”

Meanwhile exploration is also continuing at the Eagle River Complex.

• The 2019 program at Eagle consists of approximately 114,000 metres (‘m’) of UG definition and

exploration drilling (51,000 m exploration and 43,000 m of definition drilling) using 4 underground drill rigs, and 20,000 m of surface drilling.

• The objective of the drilling is to replace mining depletion throughout the year and identify new mineralized zones along structures

located immediately north of and subparallel to the main mine trend Zone 8.

• Definition drilling will be focussed at 300W, 300E, and down dip on the 711 and 811 zones.

• Meanwhile, underground exploration drilling will be completed up and down plunge at the 303E zone, as Cont’d on pg. 36

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Page 35

$6.9 million exploration budget at Eagle River Underground Mine Cont’d from pg. 35

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will also be completed further to the east of the current mining areas, in the east-central area of the mine near section 10400 to 10800E to test for parallel zones such as the 7 and 300 zones discovered north of the historic 8 and 6 zones.

• A 5,000 m surface drilling program is planned for Q1 2019 as a continuation of the Q4 2018 surface program to test for mineralization in parallel zones similar in style to that of the 7 and 300 zones further to the east along strike and from surface to 400 vertical m.

• Summer program consisting of mapping and sampling, and IP geophysics as follow up to historic results located both east and west along strike from the mine diorite and to the north of diorite in a parallel structure that returned anomalous values from an iron formation. This exploration is expected to be followed up with a 10,000 – 15,000 m drilling program in the last half of the year using 2 drill rigs.

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Tahoe Resources sells operations to Pan American Silver It was a little less than three years ago that Tahoe Resources a Nevada-based silver mining company, purchased Timmins’ Lake Shore Gold in April 2016.

Tahoe’s purchase energized gold mining in Timmins and brought renewed vigour to the mining, milling and exploration projects.

Tahoe Resources announced it had agreed to be acquired by Vancouver-based Pan American Silver (TSX:PAA) (NASDAQ:PAAS).

Tahoe shareholders overwhelmmingly voted in favour of the arrangement and as a result Pan American Silver will acquire 68.9% of Tahoes shares.

The sale was approved by 95.6% of Tahoe’s shareholders. Tahoe is scheduled to seek a final order from the Supreme Court of British Columbia approving the Arrangement (the “Final Order”) on January 10, 2019. Subject to the satisfaction or waiver of all conditions precedent to the Arrangement, including obtaining the Final Order and receipt of approval from the Mexican Federal Economic Competition Commission, the Arrangement is anticipated to be completed on or about February 26, 2019.

Page 38

The consideration, made up of cash and stock, comprises a base purchase price of US$1.067 billion and a contingent payment of $221 million that is tied to the restart of Tahoe’s Escobal mine in Guatemala.

Pan American will acquire all the outstanding shares of Tahoe pursuant to a plan of arrangement (the “Transaction”), creating the world’s premier silver mining company. Shareholders of Tahoe will be entitled to elect to receive common shares of Pan American and/or cash in exchange for their shares of Tahoe. Additional consideration will be in the form of the right to a contingent payment in common shares of Pan American tied to the restart of the Escobal mine in Guatemala.

“The combination of Pan American and Tahoe will establish the world’s premier silver mining company with an industry-leading portfolio of assets, superior growth opportunities and attractive operating margins,” said Michael Steinmann, President and Chief Executive Officer of Pan American Silver.

“This transaction doubles our silver reserves and further improves our

Photo: Timmins West Mine (taken by Claude Gagnon)

cost profile. We will build on that strong foundation, optimizing these high-quality assets to deliver profitable growth and superior returns,” he added.

While the Timmins gold mining operation ran smoothly under Tahoe’s management, it also encountered a slight drop in production as pointed out in a company news release.

During the 3rd quarter 2018 Tahoe generated $111.8 million in revenues, compared to $155.2 million during the same time in 2017. In terms of year to date earnings, over the first nine months of 2018 Tahoe earned $379 million compared to $615 million in 2017.

Gold production in the Timmins gold mines generated $43 million during the 3rd quarter in 2018 compared to $54 million in 2017. Total gold produced at the Timmins mines during 3rd quarter 2018 fell to 36,000 oz compared to 43,000 oz the previous year.

The Bell Creek Mill achieved record quarterly throughput of 4,287 tpd.

Mill operations averaged a record 4,287 tpd in Q3 2018 as part of the Cont’d on pg. 40

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company’s efforts to optimize the Timmins operations. Once the Bell Creek shaft project is complete and the mine ramps up by year-end, management expects the mill to achieve sustainable throughput exceeding 4,400 tpd with minimal additional capital expenditure. This is expected to lead to improved Q4 gold production.

But the problems encountered at the Escobal silver mine in Guatemala were enormous by comparison. The mine opened in 2014 and enjoyed three consecutive years of production above 20 million oz of silver concentrate per year prior to 2017.

In 2017, Escobal was ordered shut by the Guatemalan Supreme Court after an appeal to the court on the grounds that Tahoe had been awarded its license to operate by the Ministry of Mining and Energy without properly consulting with the indigenous people on whose traditional land the mine was located. As of October 2018, Guatemalan Supreme Court has authorized the consultations with indigPage 40

enous groups to begin.

Pursuant to the purchase arrangement, Tahoe shareholders have elected to receive US$3.40 in cash or 0.2403 Pan American shares for each Tahoe share, subject in each case to pro-ration based on a maximum cash consideration of US$275 million and a maximum number of Pan American shares issued of 56.0 million, totaling US$1,067 million (the “Base Purchase Price”). The Base Purchase Price represents a premium of 34.9% to Tahoe’s volume weighted average price (“VWAP”) for the 20-day period ending on Nov. 13, 2018.

In addition, Tahoe shareholders will receive contingent consideration in the form of contingent value rights (“CVRs”), that will be exchanged for 0.0497 Pan American shares for each Tahoe share, currently valued at US$221 million, and payable upon first commercial shipment of concentrate following restart of operations at the Escobal mine (the “Contingent Purchase Price”). The CVRs will be transferable and have a term

of 10 years. The total consideration, including the Base Purchase Price and the Contingent Purchase Price, is US$4.10 per share representing a premium of 62.8% to Tahoe’s VWAP for the 20-day period ending on November 13, 2018.

“This transaction allowed our shareholders to participate in the creation of the world’s premier silver company with the contribution of the worldclass Escobal mine to Pan American’s existing asset base,” said Kevin McArthur, Executive Chair of Tahoe Resources. “In addition to the upfront premium, we will continue to participate in the upside inherent in a restart of Escobal through the CVRs.” Each of Tahoe’s directors and senior officers, who together hold or exercise control or direction over approximately 5.3 million common shares of Tahoe, representing approximately 1.7% of Tahoe’s issued and outstanding common shares, have entered into support agreements with Pan American, agreeing to vote their Tahoe shares in favour of the transaction.

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McEwen Mining

Sees Prosperous Future in Its Timmins Area Properties

By Frank Giorno

McEwen Mining figures to be a major gold producer in the Timmins-Matheson mining camp for years to come.

That was the message Chris Stewart, President and Chief Operating Officer delivered to those attending his noon-time talk held by the Timmins Chamber of Commerce and sponsored by the Business Development Bank of Canada.

Stewart mentioned the determination of Robert McEwen, the founder and CEO of McEwen Mining who has invested $161 million of his own money in the company.

“I don’t know any other CEO of a company that has invested that much of his own money,” Stewart said. “His salary is only one dollar a year.”

McEwen has had a strong track record in mining as the founder of Goldcorp Inc. “Rob’s putting his money where his mouth is,” Stewart said.

Stewart himself has played a role in the turn around and success at Kirkland Lake Gold prior to joining McEwen Mining.

Page 42

McEwen Mining became active in the Timmins area gold mining camp in 2017 when they purchased Primero Gold’s holdings at the Black Fox complex east of Matheson and the Stock Mill property in the eastern edge of Timmins for $35 million. “ You got a mill out of it, you got a mine and potential for future development,” Stewart said.

That year they also acquired Lexam Gold and the four properties they held in South Porcupine and Porcupine. The properties are Fuller, Paymaster (61 % ownership – Goldcorp 39%), Buffalo Ankerite and Davidson Tisdale.

Since acquiring a foothold in Timmins gold mining, McEwen Mining, spent $18 million out of its annual exploration budget in the region in 2018, and plans to spend another $20 million in 2019. That’s $38 million in the first year and half since joining the Timmins-Matheson mining camp.

“Gold is pushing around $1300 U.S. but we can’t seem to get there, hopefully things will work out and gold will be valued at above $1300 per oz. and our time will be perfect on it,” Stewart said. “Timing can be everything.”

The All in Sustaining Cost to produce gold for McEwen is about $850.

In the Timmins area, the priority for exploration is focused on The Black Fox deposit, the Stock Mill Complex, the Froome deposit, Tamarack and Grey Fox deposit.

The Black Fox property has two years of production left, but the exploration programs indicate a bright future for mining at that location according to Stewart.

“Our focus this year is to reinvigorate the operations, take a step back, plan for the bigger picture of what we want to do there,” Stewart added.

McEwen’s 2019 guidance document will be ready by the end of February outlining the production goals for Black Fox Mine.

McEwen envisions a streamlined and more productive operation as being an ingredient in its success.

“My interest is the same as when I worked at Kirkland Lake Gold,” Stewart told the audience. “I would rather see 900 people working for a number of years rather than 1,300 people for a few years. That operations is now successful and will run for many, many years.”

“Same thing at Black Fox and the Timmins camp, rather than having 260 people work for another year, I would rather have 210 people work for another 20 years,” Stewart explained.

Stewart said the vision for McEwen Mining is to continue operations at Black Fox for many years to come by exploring and bringing into production the Froome deposit and Grey Fox deposit. They have had some good exploration results also at the Stock Mill complex.

Stewart envisions producing enough gold from McEwen’s property to fill the Stock Mill capacity of 2,400 tonnes a day resulting in 140,000 oz. of gold per year by bringing Grey Fox, Froome Cont’d on pg. 43

Opportunity for growth-McEwen continues to invest Cont’d from pg. 42

and Stock deposits into production.

The Black Fox Mine has a 2018 guidance of 48,000 oz. and has produced 37,000 oz as of the 3rd quarter.

“It won’t happen overnight,” cautioned Stewart. “It will start over the next 4-5 years .”

And there also is the potential of the Lexum (Fuller, Paymaster, Tisdale, properties that will figure into future McEwen’s production.

As McEwen Mining grows so will the opportunities for mining supply and services companies. So far, McEwen spent $12.4 million in the Timmins area to the benefit of local business.

Another $42 million across Canada and mainly in Ontario. The majority of the of the people working at Black Fox are from the Timmins, Kirkland Lake and Matheson areas.

“Those numbers of expenditures will be going up once we start producing 140,000 oz of gold per year,” Stewart said.

The attractive feature of the Black Fox complex is that the area has been under explored.

“There are large areas where not even one drill hole has been drilled,” Stewart indicated.

Through drilling conducted by McEwen, six new occurrences of gold deposits were found at high grades in the Black Fox site said Stewart.

“There are lots of opportunities to see growth, and we will continue to invest money in this camp,” pledged Stewart.

Stewart pointed out that at Black Fox currently is being mined at 810 metres. But mines operated significantly deeper levels and exploration results indicate there is more of gold 200 metres below.

“There is a lot of gold here we just have to spend the time and money and figure this thing out,” said Stewart.

Exploration at the Stock Property also returned good results and could be produced as an open pit mine in the future.

In addition to the properties in Northern Ontario, McEwen Mining also is working towards brining to production its Gold Bar Site in Nevada. McEwen’s Fenix Project is designed to extend the life of its El Gallo mine in Mexico.

In Argentina, Los Azules holds great promise as the world’s largest undeveloped high grade open pit copper projects. Also in Argentina, McEwen Mining holds a 49 percent stake in the San Jose Mine which produces gold and silver.

“At the end of the day you have to have a lot of courage in mining,” Stewart said.

McEwen Mining has displayed plenty of courage and financial investments in Canada, the U.S., Mexico and Argentina. Stewart is confident, as is Robert McEwen, that McEwen Mining will be a successful gold miner and in time achieve its goal of becoming a mid-tier gold producer and being listed to Standard and Poor’s 500.

McEwen Mining operates the Black Fox Complex through an experienced workforce that oversees the fully operational Black Fox underground mine, forecast to produce 45,000 ounces in 2019 and the Black Fox-Stock mill, with a capacity of 2,400 tonnes per day. McEwen Mining is exploring multiple projects in the area, such as Grey Fox, Froome, Stock East in Matheson and the Lexam projects in Timmins.

Page 43

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Harte Gold’s Sugar Zone Mine

opens successfully near White River

By Frank Giorno

Premier Doug Ford and Minister of Energy, Northern Development and Mines, Greg Rickford were on hand to celebrate the opening of Harte Gold’s Sugar Zone mine near White River, Ontario on October 24, 2018.

“The opening of Harte Gold’s Sugar Zone mine is a signal to the world that Ontario is Open for Business. It shows that this government is committed to improving the conditions for businesses, so they can thrive. It’s also one more example of why Ontario is a global leader in mineral exploration and production,” said Ford. “We told the people of Ontario we would create and protect good, local jobs all over the province. We will continue to support businesses that are bringing more prosperity and economic growth to every corner of Ontario.”

The Sugar Zone mine is expected to be in operation for over a decade, during which time it could produce more than 900,000 ounces of gold. It will also generate increased activity Page 46

for businesses that support Northern Ontario’s mining supply and services sector.

In early 2018, a preliminary economic assessment was completed for the Sugar Zone Project and a comprehensive US$70 million funding package was arranged to complete construction. As of August 2018, construction of the crusher and mill complex was completed, and commissioning started. Harte Gold is targeting commercial production at the Sugar Zone Project in Q4 2018.

“Opening a new gold mine is a tremendous feat for any mining company, particularly a former junior exploration company,” said Rickford.

“Sugar Zone mine will be a powerful economic engine in the region and is a great example of growth and prosperity happening here in Northern Ontario.”

Mining is key to Ontario’s continued economic success as it attracts billions every year in capital, most of which is spent directly in Northern Ontario ac-

cording to Premier Ford.

The opening took place in tandem with Harte Gold reporting a successful 3rd Quarter along with the official opening of its Sugar Zone gold mine.

“Harte Gold is pleased to report significant achievements toward commercial production,” said Harte Gold president-CEO Stephen Roman in a quarterly update issued on November 15, 2018. “Ramp-up of the mill continues successfully and stope production has now started.

We remain on track to declare commercial production this quarter (4th Quarter).”

In his statement, Premier Ford said, the government of Ontario supported Harte Gold’s participation in a number of international investment marketing missions that ultimately led to secured financing. Harte Gold received its commercial production permits from the Ontario government in September and, poured its first gold bar in October in addition to having Premier Doug Ford cut the ribbon at the mine’s official opening.

Sugar Zone’s mine builder, Redpath, has added workers to complete underground ore drift development work which continues at the Sugar Zone’s North and South ramps. During September, the average advance rate of eight metres per day was ahead of plan.

The processing plant was commissioned in early November and it’s now running at its permitted capacity of 575 tonnes per day. The company Cont’d on pg. 47

Commercial production started January 1st 2019 for Harte Gold

Cont’d from pg. 46

is now applying for permit amendments to operate at 800 tpd in the first quarter of 2019.

In addition to developing the underground mine, Harte continued to explore the site for additional deposits and completed 90,000 metres worth of drilling in and around the mine.

With 83,850 hectares at their disposal, the company said it has a “significant greenstone belt” to explore.

Infill drilling was conducted at its Sugar Zone and the neighbouring Middle Zone with the aim of shifting their inferred mineral resources into the indicated category.

An updated mineral resources estimate and a mine plan for these areas is expected in early 2019.

The last mineral resource estimate showed an indicated mineral resource of 2,607,000 tonnes grading 8.52 grams per tonne (g/t) for 714,200 ounces contained gold and an inferred mineral resource of 3,590,000 tonnes, grading 6.59 g/t for 760,800 ounces contained gold, using a 3 g/t gold cutoff.

There’s also some step-out drilling underway to follow the trail of gold mineralization at its Sugar, Middle and Wolf Zones. With 30,000 metres of drilling in the books, the company thinks its Fox Zone is an area of potential mineralization.

The Sugar Zone Property (“Sugar Zone”) is located in Ontario, approximately 80 km east of the Hemlo gold camp and 24 km north of White River off the Trans-Canada Highway (#17).

The Sugar Zone property is comprised of 83,850 hectares covering a significant greenstone belt. Harte Gold holds a 100% interest the property.

Harte Gold is currently in the final stages of advancing the Sugar Zone Project to commercial production.

In 2017, Harte Gold has successfully

mined approximately 100,000 tonnes of mineralized material to-date, through its Advanced Exploration Bulk Sample and Phase I Commercial Production programs.

Since it’s official opening of Harte Gold’s Sugar Zone, commercial pro-

duction has commenced as of January 1st 2019.

During that time the mill had a 90.8% recovery rate.

A 2019 budget and mine plan is under way and will form a feasability study targeted for the first quarter of 2019.

Page 47

Detour Gold poised to shift gears

By Kevin Vincent

Major changes are likely in store for Detour Gold Corporation in 2019 now that the company’s highly public boardroom battle is in its rearview mirror. The company is poised to shift gears, downsize the head office structure, and concentrate on retooling daily operations.

A confidential source with direct knowledge of DGC’s recent developments, told Mining Life that the company’s struggles are on the ground at its northern Ontario gold mine, not the corporate boardroom of Detour’s downtown Toronto offices, although the two are inter-connected.

“It boils down to management,” the source told Mining Life. “Right up until this big shareholder fight, the mine has been operated as if it is still under construction – still in the building phase. Well, it’s not.”

The source went on to suggest that cost-control measures are sub-standard. Specifically, the source identified the process plant as one of the primary elements of the operation that needs to be addressed.

“The problem is that you have an operation that is silo-driven. Each department is running its own little empire, making decisions that impact the company’s overall profitability. They haven’t made the transition from a building mentality to an operating one,” said the source.

Page 48

All of that seems pale by comparison to the drama that unfolded in late 2018 as hedge fund manager John Paulson, the head of Paulson & Co. Inc., waged a battle to reshape DGC’s board.

In mid-December, Detour Gold Corp. interim CEO Michael Kenyon resigned following a vote that saw shareholders side with Paulson in an extended proxy war.

Five Paulson-nominated directors were approved, including two who had also been endorsed by Detour, as well as four others from a slate put forth by Detour.

“Today’s outcome represents a major victory for all of Detour’s shareholders,” Paulson said in a statement.

“We support Detour Gold’s new board of directors and believe that our investment is now in the capable hands of experienced, independent and professional directors,” he added.

Five previous Detour directors, including Kenyon, were removed as a result of the vote. James Gowans, a Detour pick, was appointed chairman of the board.

“With the distraction of the proxy contest now behind us, I welcome our new directors and look forward to working with them to recruit a new CEO and build value for all shareholders,” Gowans said in a statement.

As engaging as the boardroom drama might have been to investors and

stock-watchers, the real issues are back at the mine.

“There’s an old boys club attitude up there,” said Mining Life’s source.

“It’s slowly being phased out, and if the new board does what they need to do, they will find the right individuals to run the mine and get their costs back in line where they should be.”

The source goes on to say that the three distinct mine phases, building, operating, and closing, are not in proper focus. “When the right operating people are in place, individuals who understand how to break down those silos, then you will see a dramatic difference. It looks like that is going to be the new board’s priority, and a lot of stakeholders are going to appreciate that newfound stability.”

“Productivity is key,” the source added. “You have an environment where the building phase mentality still dominates. That needs to change.”

Detour Gold produced about 571,000 ounces of gold last year. Detour Gold Corp is the 100% owner of the Detour Gold Mine, one of Canada’s largest open pit gold operations, which is located north of Cochrane.

John Paulson, whose hedge fund Paulson & Co. owns 5.7 per cent of the company, complained about abysmal returns at the Toronto-based miner including a 70 per cent fall in market capitalization since July 2016.

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Newmont & Goldcorp

combine to form the worlds largest gold mining company

By Frank Giorno

Newmont Mining and Goldcorp have agreed to combine their operations and form the world’s largest gold mining company.

Under the terms of the agreement valued at $10 billion Newmont will exchange 0.328 of a share and two cents in cash for each of Goldcorp’s outstanding common shares.

The new company will be known as Newmont Goldcorp with Newmont shareholders having a 65% controlling interest and Goldcorp shareholders the remaining 35%.

“This combination will create the world’s leading gold business with

the best assets, people, prospects and value-creation opportunities,” said Gary Goldberg, Newmont’s Chief Executive Officer.

Goldcorp’s President and Chief Executive Officer, David Garofalo said “In addition to the depth and quality of Newmont Goldcorp’s operations, projects, exploration properties and Reserves, the combined company’s assets will be centered in the world’s most favorable and prospective mining jurisdictions and gold districts.

Vancouver will serve as the North American operations head office and oversea mining operations in Canada, the U.S. Mexico and Central America.

The corporate head office will be based in Denver, Colorado.

The Chairperson of Newmont Goldcorp will be Noreen Doyle, with Ian Telfer to serve as Deputy Chairperson. Gary Goldberg will serve as the CEO and Tom Palmer, President and COO. · Globally, Newmont Goldcorp has the capacity to produce 6 to 7 million ounces of gold per year.

The Newmont-Goldcorp combination follows the merger of Barrick Gold and Rangold. Many experts like Bloomberg News’ mining reporter Thomas Biesheuvel believe that the Newmont-Goldcorp deal was a response to the Barrick Gold-Rangold merger.

Biesheuvel believes, other mergers are like as the gold mining sectors restructures in the hopes of attracting more investment interest.

Victoria Gold Mines newly permitted, privately owned GOLD MINE-Timmins East Victoria Gold Mines (East Timmins) Ltd.’s Golden Arrow Mine Property is located 10 km south of Matheson, Ontario within the shadow of gold producers such as McEwen Mining and Kirkland Lake Gold who boast operations situated along the prolific DestorPorcupine Deformation Zone. Victoria completed its 100,000 tonne bulk sample advanced exploration program during 2018 (6,780 ounces gold recovered) and has recently secured both a production mining permit and environmental closure plan acceptance from the Ontario Ministry of Energy, Northern Development and Mines enabling the processing of 219,000 tonnes of ore per year moving forward.

Victoria’s sizeable Golden Arrow Property is located adjacent to Provincial Highway 11 with excellent infrastructure and a local experienced work force.

With the currently targeted Phase II in-ground syenite hosted gold resource of 861,797 tonnes grading 1.8 grams per tonne gold (~50,000 ounces contained gold) presently being prepared for commercial open pit production mining, Victoria could be the next new gold producer in Northeastern Ontario. Victoria’s continued exploration efforts will focus on infill diaPage 50

mond drilling of its Phase III expanded open pit inferred resource of 5,784,268 tonnes grading 1.17 grams per tonne gold (~200,000 ounces contained gold).

Victoria’s advanced exploration bulk sample ore material surpassed metallurgical and environmental regulatory guidelines, and local custom milling efforts saw 92% ore recovery. Victoria Gold Mines (East Timmins) Ltd.’s Golden Arrow Mine is Ontario’s only privately-owned permitted gold mine and with a clean road ahead Victoria is positioned to grow during 2019.

Amrapali Group looks to Ontario & Quebec to secure millions of ounces of gold and silver

Pictured left to right: Chiraq Thakker, Amrapali Senior VP, Shreya Jaichand, Investors Relations Mines and Money and Madan Chawla of MOL - Ideas Taking Place

Ten thousand miles from the drilling shacks that dot Northern Ontario and Quebec is a culture that loves Gold, the people who are associated with this culture are from India. In fact India’s love affair with precious metals extends to silver and diamonds. Depending on who you ask India is either the number one or two importer of Gold in the world.

Gold has a rich tradition in India, which dates back 4000 years. In ancient Hindu events like Ramayana and the Mahabharata, gold is tied to Godliness and Kingliness, as a direct result of this sentiment 11% of the gold reserves worth over 800 Billion is entrusted into the hands of Indian housewives.

Helping the Indian people, consume gold is the Amrapali Group headquartered in, Ahmedabad, India.

Amrapali Group imports Gold dore and refines the gold to 99.99% pure.

In 2017 Amrapali imported .6 million ounces of gold dore and 37 million ounces of silver. Recently Chiraq Thakker the Amrapali companies senior VP was personally invited by Madan Chawla of MOL- Ideas Tak-

ing Shape to attend Mines and Money in Toronto and met with a Canadian Trade-Ex representative.

At the Mines and Money events, companies introduce their projects to institutional investors, bankers, brokers and investors from North America, Latin America and around the world.

From asset managers and private equity players to debt finance providers and private investors.

For investors, Mines and Money is considered one of the best venues to find new investment opportunities.

Attendees get to speak to senior executives from over 100 pre-qualified junior mining projects and hear asset allocation strategies and analysis from the world’s leading investors.

Thakker attended Mines and Money seeking to buy bullion that will feed the gold appetite of his Country.

He started out looking to establish a relationship with producing mines, but was unsuccessful, “I was unsuccessful in securing a deal at the Mines and Money event, however, we were able to establish a relationship with a Bullion Trading House and was introduced to a slightly different approach

of securing our gold dore.”

The challenge in securing Gold dore for Amrapali is the competition.

Companies with proven and probable reserve estimates and reputable management teams find it easy to attract investment where contracts are focused on net smelter royalties (NSRs) as well as forward-selling contracts.

Thakker believes that if Amrapili is going to be successful he will need to reach out to the mining community at a different stage of their life cycle.

Growing a business amongst 1.25 billion people you need to be resourceful and Thakker told MOL and Canadian Trade-Ex “we are willing to explore all options, including establishing relationships with Juniors, including reviewing the feasibility of a toll smelter in logical areas.” Our goal is to secure millions of ounces of gold and silver.

The Amrapali Group will bring resources to the table that is needed to ensure a sustainable supply.

He says he’s hoping to attend the world-famous PDAC Prospectors and Developers conference in Toronto this spring and perhaps follow that up with property tours during the Canadian Mining Expo in the heart of Gold Country (Timmins, Ontario ) at the beginning of June.

Thakker emphasized, “the primary purpose of our visits to Canada is to find legitimately mined gold and silver and to help build relationships with the mining community. I want to build relationships with promising organizations.”

To help facilitate the vetting process Amrapali has commissioned Madan Chawla of MOL and Canadian TradeEx to compile a list of best gold and silver properties. In the coming weeks Thakker is hoping to fill his PDAC appointment book with promising opportunities. Please call 705.264.2251 and ask for Glenn or Rory Dredhart.

Page 51

Agnico Eagle continuing to explore NW Quebec and NE Ontario synergies

Agnico Eagle’s Flagship LaRonde Mine located in the Abitibi region of northwestern Quebec

By Kevin Vincent

Shareholders at Agnico Eagle can look forward to another year of positive news and growth. The company announced in late 2018 that it expects output in 2019 to top 1.7 million ounces, up from the company’s projection of 1.6 million ounces for 2018. (Final numbers for 2018 were unavailable at press time.)

“On the back of another strong operational quarter (2018 Q3), we have once again increased our 2018 production guidance. We now expect to produce approximately 1.60 million ounces, up from our previous forecast of 1.58 million ounces that was announced last quarter. Total cash costs and AISC are expected to be at or slightly below the mid-point of our guidance range”, said Sean Boyd, Agnico Eagle’s Chief Executive Officer in late October.

“Our Nunavut development projects are progressing well. Drilling continues to generate positive exploration results from the Amaruq underground deposits and we see potential for a slightly earlier startup at Meliadine.

As a result, we now expect our 2019 gold production to exceed 1.70 million ounces, which was the mid-point of the previous 2019 guidance”, added Boyd.

Agnico Eagle is currently Quebec’s Page 52

largest gold producer with a 100% interest in the LaRonde, Goldex, Lapa and LaRonde Zone 5 mines and a 50% interest in the Canadian Malartic mine. The mines are located within 50 kilometres of each other, which provides operating synergies and allows for the sharing of technical expertise.

In the meantime, the company is continuing an aggressive exploration program in the Kirkland Lake region.

The 2018 drilling program focused on the Upper Beaver and Upper Canada targets. The Kirkland Lake project covers approximately 27,312 hectares, and mineral reserves and mineral resources have been outlined on several properties. The properties have been owned 100% by Agnico Eagle since March 28, 2018, when the Company completed the acquisition of Yamana’s indirect 50% interest in the Canadian exploration assets of Canadian Malartic Corporation that it did not previously own. Deposits

in the Kirkland Lake project include: Upper Beaver, Upper Canada, Anoki and McBean, and Amalgamated Kirkland.

An initial $5.6 million exploration program is underway at Kirkland Lake and drilling commenced in July.

There are currently two rigs working on extending the Upper Beaver deposit at depth, and one rig testing for satellite targets around the Upper Canada deposit. In the third quarter of 2018, 11,754 metres of drilling (22 holes) was completed.

In addition, the Company is completing a technical review of historical exploration data for the Upper Beaver and Upper Canada deposits, and updating the geological models.

Baseline studies continue at Upper Beaver as well as detailed engineering work and consulting. The Company is evaluating potential synergies between the Upper Beaver and Upper Canada projects and its other Abitibi operations.

Agnico Eagle’s Goldex Val d’Or mine

Cont’d on pg. 53

NU

MIN

NUNAVUT

MININGSince PROJECTS its founding in 1957, Agnico Eagle has grown to become one of Canada’s

We currently employ more largest gold than 2,000international people and plan mining to hire ancompanies. additional 600 employees in the next 5 years to support optimal production at our sites.

Since its founding in 1957, Agnico Eagle has grown to become one of Canada’s largest international gold mining companies.

Frank Giorno

Agnico Eagle’s Two Gold Mine Projects to Bring Prosperity in Nunavut in 2019.

Nunavut will see dramatic increase in gold mining as Agnico Eagle opens two mines over the next two years increasing its presence in Canada’s subarctic.

The Amaruq Project, open pit mines will be in production in the second quarter of 2019.

There will be two open pit mines operating at the site, the Amaruq open pit mine and the Whale Tail deposit.

They are projected to produce approximately 2.1 million ounces of gold between 2019 and 2024.

A second mining project will also be in production at the Meliadine property starting in 2019 as well. Originally

scheduled for a 2020 opening, development is progressing so well that it may open earlier than scheduled.

Amaruq is in the Kivalliq District, Nunavut Territory, 50km northwest of Agnico Eagle’s Meadowbank mine site, which itself is 110 km north of Baker Lake. The coming into production of Amaruq coincides with the ending of mining activities at Meadowbank. The Amaruq mine will benefit from the existing facilities at Meadowbank and its milling operations. A 64 km road extension was built to connect Amaruq to Meadowbank originally to facilitate exploration.

The Amaruq site consists of 99,878 hectares and is located on Inuit owned and federally owned crown land.

It contains significant gold-bearing

NUNAVUT

MINING PROJECTS Since its founding in 1957, Agnico Eagle has grown to become one of Canada’s largest international gold mining companies.

We currently employ more than 2,000 people and plan to hire an additional 600 employees in the next 5 years to support optimal production at our sites.

KIVALLIQ REGION Amaruq Exploration

REGIONdeposit zones in the White KIVALLIQ Tail gold KIVALLIQ REGION and I, R, V and Mammoth zones.

Initial gold production from both open pits is expected to be between 135,000 and 190,000 ounces, with a mid-point of 162,500 ounces. In 2020, gold production is expected to be between 260,000 and 270,000 ounces, with a mid-point of 265,000 ounces.

Amaruq continues to advance on 14 DAYS OF WORK 12-HOUR SINGLE 14 DAYS OF REST SHIFTS rooms schedule and on budget for 2018.

Expansion of the haulage roadOF and 14 DAYS WORK exte12-HOUR 14 DAYS OF REST SHIFTS rior construction activities are schedFollow us on Facebook to stay informed about current and future in ourbe mining operations: @AEMMeliadine | @AEMMeadowbank uled to completed by the fourth quarter of 2018. Drilling at Amaruq Follow us on Facebook to st continues to determine the extent in our mining of operations: @ mineralized zones at depth and potential for mining underground at the site. Recent drilling cut 19.6 g/t gold over 5.6 metres at 656 metres depth,

Baker Lake Chesterfield Inlet

Meadowbank Mine

Baker Lake

Baker Lake

Chesterfield Inlet

Rankin Inlet

Chesterfield Inlet

Meliadine Mine

Rankin Inlet

Meliadine Mine

Cont’d on pg. 54

BE AGNICO EAGLE.

Agnico Eagle currently operates the Meadowbank Mine, located near the Baker Lake community. By the end of 2019, we anticipate the start of the Amaruq project near Meadowbank and the start of production of the Meliadine Mine, located northwest of Rankin Inlet.

These sites are supported by our service centers in Val-d’Or and Mirabel, Quebec.

Professionals

Development Miner

Drill & Blast Technician

Electrician

Environmental Coordinator

Fixed Equipment Mechanic

Health and Safety Professionals

Long Haul Truck Operator Millwright Meliadine Mine

Amaruq Exploration

Meadowbank Mine

BE PART OF IT. BE PROUD OF IT.

Trades and Occupations

Meadowbank Mine

Rankin Inlet

Amaruq Exploration

Mobile Equipment Mechanic Plumber and Carpenter Production Miner Welder

Maintenance General Supervisor Mine General Supervisor Mine Supervisor Mine Technician Mobile Maintenance Supervisor Senior Metallurgist Senior Resources Geologist

14 DAYS OF WORK 14 DAYS OF REST

12-HOUR SHIFTS

SINGLE rooms

Surveyor Agnico Eagle Mines Limited strongly supports the Employment Equity Program.

Follow us on Facebook to stay informed about current and future development in our mining operations: @AEMMeliadine | @AEMMeadowbankComplex

Visit the Careers section of our Nunavut website at aemnunavut.ca

APPLY ONLINE Page 53

Cont’d from pg. 53

expanding the V Zone westward at depth.

Confirmation drilling in the Whale Tail deposit returned 19.5 g/t gold over 7.0 metres at 477 metres depth.

Intercepts, such as 14.2 g/t gold over 5.1 metres at 698 metres depth, reopen and expand the deep potential of the Whale Tail deposit to the west.

Underground ramp development started in January 2018 is continuing at Amaruq, and the Company is evaluating potential underground mining scenarios.

How much gold?

The initial plan calls for the production of approximately 2.1 million ounces of gold between 2019 and 2024.

The Amaruq satellite deposit at Meadowbank has an estimated initial open pit mineral reserve of 2.4 million oz. of gold (20.1 million tonnes grading 3.67 g/t), and an open pit and underground indicated mineral resource of 1.0 million ounces gold (8.8 million tonnes grading 3.62 g/t), and an open pit and underground inferred mineral resource of 1.7 million ounces gold (8.7 million tonnes grading 6.25 g/t).

Agnico Eagle expects to produce between 135,000 and 190,000 oz. of gold in 2019 at Amaruq’s Whale Tail location. The quantity will increase to between 260,000 and 270,000 oz in 2020.

The mill capacity will be 9,000 tonnes of ore per day.

The costs sustaining Amaruq’s operation are projected to be about $330 million in capital costs, and approximately $25 million operating costs Page 54

per year. Mine reclamation costs are estimated to be approximately $25 million. Capital expenditures at Amaruq in 2018 are forecast to be approximately $175 million, and $66 million in 2019.

On June 15, 2017, the Company and the Kivalliq Inuit Association signed an Inuit Impact and Benefit Agreement (“IIBA”) for the Whale Tail project. The Whale Tail IIBA addresses protection of Inuit values, culture and language and provides for enhanced access by the Kivalliq Inuit to local employment, training and business opportunities arising from all phases of the project. The IIBA contains implementation and monitoring measures that will ensure these goals are achieved.

The Meliadine Gold Project is also located in the Kivalliq District of Nunavut, approximately 25km northwest of Rankin Inlet on the west coast of Hudson Bay, Canada. That’s 290 km south of the Meadowbank and Amaruq location.

Meliadine once operational will be Agnico Eagle’s biggest development project based on reserves and resources.

The Meliadine Gold Mine Project is 111,358-hectare property located near the western shore of Hudson Bay in the Kivalliq region of Nunavut, about 25 km north of Rankin Inlet and 290 km southeast of Agnico Eagle’s Meadowbank mine.

Meliadine is on budget and slightly ahead of schedule. At the end of Q3 2018, construction was 89% completed and underground development was proceeding as planned. Commission-

ing of the process plant is expected to begin in Q1 2019, followed by the expected commencement of commercial production in Q2 2019.

Meliadine gold project has 3.7 million ounces of gold in proven and probable reserves (16.1 million tonnes at 7.12 g/t) and a large mineral resource as of December 31, 2017. The reserves are in the Tiriganiaq and Wesmeg deposits, and the resources are in Tiriganiaq and Wesmeg plus another five nearby deposits within a large land package covering an 80-kilometre-long greenstone belt.

With the advancement of the production schedule, new guidance estimates for 2019 gold production is approximately 170,000 ounces, and 385,000 ounces of gold production in 2020.

Overall production for the Meliadine gold project is now forecast to be approximately 5.7 million ounces of gold over a 15-year mine life.

As a result of the two Agnico Eagle mining projects, the Conference Board of Canada calls for increased economic activity in Nunavut.

In a statement issued in November, the Conference reported that Nunavut’s economy will stay at or near the top of the growth charts for the next few years, posting average annual growth of 7.3 per cent from 2018 to 2020. Mining will be the main driver of growth, as Agnico Eagle prepares to bring its Meliadine mine and Amaruq satellite deposit into operation, and Sabina works on its Back River project. The territory’s gold production is expected to peak in 2024, after which the territorial economy will grow at a more moderate pace.“

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Alamos Gold on target to meet annual guidance Alamos Gold is a mid tier gold producer operating 4 mines two of which are in Northern Ontario.

It operates the venerable Young-Davidson mine near Matachewan, Ontario and one of the longest producing mines in Northern Ontario. Last year Alamos purchased Island Gold near Wawa, Ontario from Richmont Gold.

Alamos also operates the Mulatos and El Chanate Mines in Sonora, Mexico.

The company also has major exploration projects and development projects in Mexico, Turkey, Canada and the United States.

The 3rd quarter performance for Alamos indicated that it was making significant progress to meeting its full year guidance, but it also experienced a loss in revenue because of a decline in the price of gold.

One of the successes experienced by Alamos was the completion of the Phase 1 expansion of Island Gold that will see mill capacity expanded to 1,100 tonnes per day.

“We made excellent progress in the third quarter towards both our near and long-term objectives. We met our quarterly production guidance and rePage 56

main well positioned to achieve full year guidance. We completed the Phase I expansion at Island Gold on schedule and are having ongoing success on the exploration front which has translated into significant Mineral Reserve and Resource growth in the year since we acquired the mine.

We’re also advancing on the lower mine expansion at Young-Davidson which will unlock the full potential of the mine and drive significant free cash flow growth,” said John A. McCluskey, President and Chief Executive Officer.

Third Quarter 2018 Highlights • Produced 124,000 ounces of gold, consistent with quarterly guidance of 120,000 to 125,000 ounces, and 16% above the third quarter of 2017, reflecting the inclusion of production from Island Gold • Gold production for the first nine months of 2018 achieved a record 379,400 ounces, a 23% increase from the same period in 2017. The Company remains well positioned to achieve full-year production guidance of 490,000 to 530,000 ounces • Sold 119,401 ounces of gold in the

third quarter at an average realized price of $1,229 per ounce, $16 per ounce above the average London PM Fix, for revenues of $146.7 million.

Revenues declined relative to the second quarter reflecting lower gold sales and a $78 per ounce decline in the realized gold price • Cost of sales of $1,152 per ounce, total cash costs of $817 per ounce and all-in sustaining costs (“AISC”) of $1,048 per ounce were higher than full year guidance reflecting lower mining rates at Young-Davidson, higher costs at El Chanate and planned higher sustaining capital at Island Gold • Given higher than budgeted costs at Young-Davidson and El Chanate through the first nine months of 2018, the Company is revising its full year consolidated total cash cost guidance from $740 to $810 per ounce and AISC guidance from $950 to $990 per ounce • Realized net earnings of $7.2 million, or $0.02 per share • Reported an adjusted net loss of $1.9 million or $0.00 per share, primarily reflecting adjustments for unrealCont’d on pg. 58

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North American Palladium

Expands Production

By Frank Giorno

North American Palladium plans to double the quantity of ore extracted at its Lac des Iles mine north of Thunder Bay, Ontario.

The company announced it has contracted Redpath Canada Limited of North Bay to develop its underground mining capability.

Once the expansion is completed, the amount of ore extracted will increase from its current rate of just over 6,000 tonnes per day (tpd) to 12,000 tpd.

Under the terms of the contract, Redpath will add approximately 6,550 metres of lateral development and 560 metres of vertical development to access ore reserves in the upper mine beneath and around the perimeter of the dormant Roby open pit.

The contract is expected to be approximately 2 years in duration.

“Redpath is one of the premier mining contractors in the world and we welcome them onboard as we expand the Lac des Iles mine and make it one

of the largest underground mines in Canada, ” said Jim Gallagher, President and CEO, of North American Palladium.

The Lac des Iles mine development crews will continue with their work to sustain ongoing production, which is expected to rise to over 7,000 tpd by the end of 2019.

Palladium’s primarily used as a thin coating on ceramic filters insider of catalytic converters in automobile Cont’d on pg. 59

Ongoing drilling extends high-grade gold mineralization Cont’d from pg. 56

ized foreign exchange gains recorded within both deferred taxes and foreign exchange of $8.7 million • Generated cash flow from operating activities of $45.2 million ($41.6 million, or $0.11 per share, before changes in working capital1), a decrease from the second quarter primarily reflecting a lower realized gold price and lower gold sales • Ended the quarter with no debt and cash and cash equivalents of $224.8 million • Announced a significant increase in Mineral Reserves and Resources at Island Gold as of June 30, 2018 • Paid a semi-annual dividend of $0.01 per common share, or $3.9 million, to shareholders on October 30, 2018, representing the Company’s 18th consecutive semi-annual dividend Page 58

Exploration Results from Island Gold Mine In November, Alamos Gold Inc. reported new results from surface and underground exploration drilling at the Island Gold Mine from the second half of 2018. Ongoing drilling continues to extend high-grade gold mineralization along-strike and down-plunge from existing Mineral Reserves and Resources across all three main areas of focus: the Main Extension, the Eastern Extension, and the Western Extension.

All reported drill widths are true width of the mineralized zones, unless otherwise stated. Main Extension: best surface directional drilling intersection to date (MH13) extending highgrade gold mineralization 60 metres (“m”) east of the nearest intersection.

High-grade mineralization now extends nearly 1,000 m east of current mine workings and remains open to the east and down-plunge. New highlights include: 118.58 g/t Au (39.99 g/t cut) over 6.66 m; 21.50 g/t Au (13.70 g/t cut) over 7.80 m; and 31.70 g/t Au (14.51 g/t cut) over 3.81 m.

Western Extension: high-grade mineralization extended laterally and downplunge from existing Inferred Mineral Resources. New highlights include: 78.26 g/t Au (67.74 g/t cut) over 2.29 m; and 19.69 g/t Au (19.69 g/t cut) over 2.79 m. Eastern Extension: highgrade mineralization extended below and east of existing Inferred and Indicated Mineral Resources and remains open down-plunge. New highlights include: 46.13 g/t Au (44.17 g/t cut) over 2.83 m; and 13.72 g/t Au (13.72 g/t cut) over 7.60 m.

Lac des Iles mine capitalizes on strong palladium market North American Palladium also an- of flow through shares that was reengines. It acts as a catalyst to con- nounced that it intends to complete tired as of December 31, 2018 and vert carbon monoxide to carbon di- a non-brokered private placement the funds will be used for exploration oxide and converts hydrocarbons and financing of up to 535,714 common at the Camp Lake east mine and Sunoxides of nitrogen into pure oxygen, shares that are “flow-through shares” day Lake properties in Ontario. nitrogen and water. Demand for pal- within the meaning of the Income North American Palladium Ltd. is a ladium is expected to exceed supply Tax Act (Canada) at a price of $14.00 Canadian company with over 25 years over the next few years, driven pri- per Flow-Through Share for aggre- of production at Lac des Iles mine. marily by the continued growth in au- gate gross proceeds of approximately North American Palladium is the only tomobile sales. $5,000,000. pure play palladium producer in the The stock value for North American “We are pleased to announce the world. With over 500 employees, Lac Palladium on the TSX has increased flow-through financing which is be- des Iles mine features a unique world $4.00 from the same point last year ing offered at a significant premium class ore body and modern infrastruc($7.25) to $11.25 in December 2018. to the closing price of the Company’s ture, which includes both an underIt rose as high as $13.35. In mid-De- shares,” explained Gallagher. “ We ground mine and an open pit mine. cember the price stood at $11.25 per remain committed to increasing the After nine months of 2018 fiscal year, oz.

Company’s growth potential through net income was almost $42 million The price of Palladium in 2018 has exploration of our extensive mineral compared with $22 million for the risen as high as $1,245 U S. in 2018, claim holdings at the Lac des Iles first three-quarters last year. and it kept close to the price of gold mine.”

“The company is in a strong position which hovered around the $1,250 per All proceeds from the sale of the to capitalize on the robust palladium oz level for most of 2018. flow-through shares will be used to market while continuing to add reNorth American Palladium is one of incur eligible Canadian Exploration sources through mine site and greenthe few palladium producers in Can- Expenses at the Company’s Camp fields exploration,” Gallagher said. ada.

Lake, East Mine Block and Sunday “Palladium prices continue to show There are very few palladium produc- Lake properties, located in Ontario, strong resilience during this period of ing regions worldwide and few known Canada. financial market volatility, supported economically viable ore bodies.

The Company completed a by trade and sanction concerns,” GalThe demand for palladium in the au- 10,000,000 dollar private placement lagher added. tomotive industry has more than doubled in the last ten years.

The primary driver of growth in the automotive sector is from the emerging economies, especially Asia, where there is emerging affluence, very low penetration of vehicles per capita, and where the affordability factor is Ph.: 807.475.4662 high due to low interest Email: mike@havemanbrothers.com rates and leasing prowww.havemanbrothers.com grams. In addition, the recent recovery of the US auto sector has also Prospecting Camp Set Up & Logistical Support Mag Surveys strengthened demand Line Cutting Camp Logistics Soil Sampling for palladium.

Cont’d from pg. 58

Mining Services

Page 59

Goldcorp and IBM Improve Mineral Exploration

By: Frank Giorno

Goldcorp and IBM teamed up to create a technology that will increase the accuracy of interpreting mining exploration data leading to better decision making.

The program known as IBM Exploration with Watson engages spatial analytics, machine learning and predictive models helping geologists identify the key areas of mineralization. This saves time and costs as well as helps secure investments to move new mining projects forward.

The solution applies artificial intelligence to predict the potential for gold mineralization and uses powerful search and query capabilities across a range of exploration datasets.

“The potential to radically accelerate exploration target identification combined with significantly improved hit rates on economic mineralization has the potential to drive a step-change in the pace of value growth in the industry,” said Todd White , Executive Vice President and Chief Operating Officer, Goldcorp .

At Red Lake, IBM Exploration with Watson provided independent support to drill targets planned by geologists via traditional methods and proposed new targets which were subsequently verified. The drilling of some of these new targets is ongoing, with the first target yielding the predicted mineralization at the expected depth.

“Timelines are short in mining and exploration. I am excited to see the improvements we can make with the data platform and gold mineralizaPage 60

tion predictions,” said Maura Kolb, Goldcorp’s Exploration Manager at Red Lake Gold Mines. “These tools can help us view data in totally new ways. We have already begun to test the Watson targets from the predictive model through drilling, and results have been impressive so far.”

The IBM Watson initiative recently earned Goldcorp a prestigious Ingenious Award in the large private sector category from the Information Technology Association of Canada (ITAC). The ITAC award for Goldcorp’s Cognitive Journey recognizes excellence in the use of information and communications technology by organizations to solve problems, improve performance, introduce new services, and grow business.

“Applying the power of IBM Watson to these unique challenges differentiates us in the natural resources industry,” said Mark Fawcett, Partner with IBM Canada. “We are using accelerated computing power for complex geospatial queries that can harmonize geological data from an entire site on a single platform. This is the first time this solution has been ever used, which makes this project more significant.”

Goldcorp will put the new technology to work on additional targets in 2019.

During the three months ending September 30, 2018, Red Lake generated $64 million (U.S.) in revenue while producing 64,000 oz. of gold. Over the first nine months of 2018, $209 million in revenue was generated, from 189,000 oz.

Ore from Red Lake Gold Mines is hoisted up either the Balmer or Campbell shafts, then processed at the Campbell mill using a conventional crushing and grinding circuit combined with a gravity concentration for free-milling gold or carbon-in-pulp for refractory gold. Gold recoveries average 94%.

The milling capacity at the Campbell mill is 3,100 tonnes per day. The amount of gold expected to be produced was 235,000 ounces for 2018.

The future for mining with the use of IBM Exploration with Watson looks promising. The gold reserves in the proven and probable category stands at 2.17 million oz. The measured and indicated reserves are 2.73 million ounces. The inferred reserves amount totals 4.35 million ounces. The figures for Red Lakes gold reserves also includes information from Cochenour and H.G. Young locations.

The application of IBM Exploration with Watson to Red Lake’s data base gathered from its exploration program may lead to better definition of future gold reserves.

Red Lake’s most advanced exploration target is HG Young, located about 1.5 kilometres northwest of the Red Lake complex. Still in the concept phase, the focus at HG Young is on building a geological model that will lay the foundation for a pre-feasibility study. During the third quarter of 2017, a positive trade-off study was completed. Goldcorp expects HG Young to become an integral part of the Red Lake district in the future.

Hardrock Gold Project Moving Forward

By Frank Giorno

The development of the Hardrock Gold Project mine near Geraldton, Ontario received a major boost when Catherine McKenna the Canada’s Minister of Environment and Climate Change approved the environmental assessment for the site in December 2018.

The multi-million ounce gold mining project is being proposed by a partnership between Greenstone Gold Mines, Premier Gold Mines and Centerra Gold.

The proposed gold mine will have an ore production capacity of 30,000 tonnes per day. “The Ministers’ approval of the EA is a significant milestone for the Hardrock Project. Our engagement with representatives of the local Indigenous communities, local communities and the various government agencies has been very positive throughout the process and we look forward to continued advancement of the Project”, stated

John Begeman, Executive Chairman of Premier.

Greenstone Gold Mines held meaningful consultations with Indigenous peoples and had significant public input. The environmental mitigations proposed in the environmental assessment documents were based on scientific evidence, including Indigenous traditional knowledge, and an assessment of greenhouse gas emissions.

Greenstone Gold Mines (GGM), a 50/50 joint venture between Premier Gold Mines Limited and Centerra Gold Inc, has worked closely with federal and provincial authorities since initiating the EA in 2014.

Much of the technical work and consultation carried out prior to the submission of the final EA helped to facilitate the timely approval of the federal EA, The Project now awaits the Ontario government’s environmental assessment approval expected in Q1 2019.

Work on construction permit applica-

Bonterra

fast-tracking multiple gold deposits

By Kevin Vincent

Bonterra Resources is doing its best to live up to that slogan heading into 2019. The company has three deposits in northwestern Quebec including the Gladiator, Barry and Moroy.

Bonterra is utilizing the Urban Barry Mill to service all the projects. The company is targeting a 2400 tonnes per day (tpd) throughput. The mill is the only permitted mill in the region.

In early December, Bonterra announced the latest drilling results

from the ongoing resource development program at the Gladiator Deposit, including intersections of 11.4 g/t Au over 2.5 m north of the deposit and 13.7 g/t Au over 7.3 m at the Main zone.

The ongoing resource development program at the Gladiator deposit includes definition, expansion and exploration drilling. Exploration drilling is focused on deposit extension onto the Duke optioned property as the

tions are well advanced and will be submitted for review once the federal EA and provincial EA’s are approved.

A Definitive Agreement with Long Lake First Nation earlier in 2018 was signed and GGM is currently negotiating agreements with the other local Indigenous communities.

A grade control drill program was completed on the project to better understand mineralization of the top three benches of the mine with the results expected in the Q1 2019. GGM has also engaged financial advisors to begin the process of identifying the various financing options that may be available for the Hardrock Project.

The property is located in Lindsley, Errington, Ashmore, Parent, Salsberg and McKelvie Townships in the Thunder Bay Mining Division.

The life of open pit mine is expected to be 14.5 years . The project will employ about 450 people over the life of the mine.

Company is now earning 70% of this ground from Osisko Mining. Multiple new high-grade intersections were discovered north of the deposit extending the width of the deposit up to 300 m to the north.

Capping off the company’s great 2018, Bonterra announced the closing of a $21.8 million private placement through powerhouse gold financiers Sprott Capital.

Sprott acted as lead agent on behalf of a syndicate of agents which included PI Financial Corp., Red Cloud Klondike Strike Inc., Canaccord Genuity Corp. and Haywood Securities Inc. Pursuant to the Offering, Bonterra issued 3,443,500 common shares of the Company on a flow-through basis at a price of $3.80 per FT Share and 2,646,000 common shares of the Company on a non-flow-through basis at a price of $3.30 per NFT Share.

Page 61

Osisko Defines Significant Global Resource

By Kevin Vincent

Junior miner Osisko closed out 2018 on a high note. In late November, company President and Chief Executive Officer John Burzynski went so far as to classify Osisko’s northwestern Quebec stable of properties as “a significant global resource”.

The company’s exploration program, which began in 2015, is focused on its 100% owned Windfall Lake gold project located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Québec. The 800,000 metre drill program commenced in late 2015. The program is currently focused on infill drilling within the main Windfall gold deposit and the adjacent Lynx deposit (located immediately NE of Windfall). Maps showing hole locations and full analytical results are available at www. osiskomining.com.

The Windfall Lake gold deposit is located between Val-d’Or and Chibougamau in the Abitibi region of Québec. The mineral resource defined by Osisko, as disclosed in the Windfall

Page 62

Lake Technical Report and November 27, 2018 Lynx resource update, comprises 2,874,000 tonnes at 8.17 g/t Au (754,000 ounces) in the indicated mineral resource category and 10,352,000 tonnes at 7.11 g/t Au (2,366,000 ounces) in the inferred mineral resource category.

In a news release, John Burzynski, President and Chief Executive Officer added: “We are very pleased with the updated mineral resource estimate on Lynx.

Our work has positively demonstrated that conversion of inferred resources to indicated resources, and infilling in general, is resulting in higher average grades and is adding ounces. Osisko’s Lynx discovery now represents over one million ounces of the global resource, and we are confident that as we complete the infill drilling we will continue to see the average indicated grade move up.

The higher grades and additional ounces shown in today’s updated resource will also have a strong positive effect on the robust Windfall PEA re-

leased in July 2018.”

Additionally he noted: “We now have a very significant global resource between Windfall (2,874,000 tonnes averaging 8.17 g/t Au for 754,000 indicated ounces gold, and 10,352,000 tonnes averaging 7.11 g/t Au for 2,366,000 inferred ounces gold) and Osborne Bell (2,587,000 tonnes averaging 6.13 g/t Au for 510,000 ounces gold inferred). The Windfall intrusive-related gold system remains open along strike and at depth. Lynx and several of the other known zones have excellent down plunge potential to add mineral resources, and as we progress with our 800,000 metre drill program we expect to continue expanding Windfall.

The late 2018 positive results will be followed up by further grade confirmation work, including the initial results from bulk sampling of Zone 27.

The company is also continuing with deep drilling on its Triple 8 discovery, and anticipates news from the current hole in progress by the end of January 2019.

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