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Goldcorpâ€™s Coffee project brewing in the Yukon
ATAC sees serious size potential at Rackla gold property
Exploration continues to add value at Keno Hill silver district
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Table of Contents 8 10
essage from the editor, M Shayna Wiwierski
36 Auryn Resources: Searching for the next major high-grade gold mine in the arctic
essage from the Honourable M Amarjeet Sohi, Canada’s Minister of Natural Resources
38 TerraX Minerals is primed for the
orthwest Territories mining N highlights
40 K2 Gold completes 2018
Exploration and mining in Nunavut
018 Yukon exploration, 2 development, and mining update
22 More than gold: Goldcorp’s Coffee Mine Project in the Yukon
24 SGS: Delivering quality expertise to the mining industry in Whitehorse
26 ATAC sees serious size potential at Rackla Gold Property
30 Talmora Diamond Inc.: Exploring Lena West Diamond Region; a roller coaster ride?
32 Exploration continues to add value at Keno Hill
34 Finding gold: Aben Resources Ltd.
next major discovery in the shadow of two headframes in Canada exploration at Wels
42 Strengthening the next generation of the Canadian mining workforce
44 Lessons from the North: Environmental assessment
46 Sealift supporting mining projects in the arctic
52 The use of QESCAM for better process decisions
54 LiDAR – Don’t let elevation bring you down
56 Poison Graphics – NWT sign manufacturer
58 The Inuit First approach: Nuqsana Inc.
Index to Advertisers Aben Resources ltd................................................................................35 AME Association For Mineral Exploration...................................4 Arkbro Industries.....................................................................................32 Aurora College..........................................................................................19 Aurora Manufacturing..........................................................................33 Auryn Resources......................................................................................37 AuTec Innovative Extractive Solutions.......................................58 Avjet Holding Inc........................................................................................5 BAG Supplies Canada Ltd...................................................................56 Bureau Veritas Commodities Canada Ltd.................................37 CalmAir..........................................................................................................42 CanDig Mini Excavators.......................................................................20 Capital Helicopters (1995) Inc..........................................................14 Caron Business Solutions....................................................................31 CasCom.........................................................................................................51 Challenger Geomatics Ltd.................................................................57 Desgagnés Transarctik Inc..................................................................47 Duncan's Mechanical Contractors................................................51 Eskimo Point Lumber Supply...........................................................10 Fednav...............................................................................................................9 Fire Prevention Services 2016 Ltd.................................................48 Foremost..................................................................................................3, 11 Foundex Explorations Ltd..................................................................34 GKM Consultants Inc.............................................................................17 Goldcorp Inc...............................................................................................23 Government of the NWT....................................................................15 Gowling Wlg Llp...................................................................................45 Horizon North............................................................................................49
Mining North of 60 | 2019
Igloo Building Supplies Group Ltd................................................44 Jill Pollock and Co....................................................................................55 Judy L. Corley Consulting Inc...........................................................16 K2 Gold...........................................................................................................41 Kbl....................................................................................................................52 Khione Resources Limited.................................................................25 Kitikmeot Caterers...................................................................................54 Lynden Incorporated...............................................................................7 Matawa First Nations.............................................................................48 McElhanney Land Surveys.................................................................53 Midnight Sun Energy Ltd....................................................................21 Napeg............................................................................................................43 NEAS..............................................................................................................IBC Northern Foodservices........................................................................28 Northwest Territories Power Corporation................................41 Nuna Group Of Companies..............................................................13 Nunavut Human Rights Tribunal...................................................27 Nuqsana Inc........................................................................................... OBC Poison Graphics........................................................................................57 Redpath Canada Limited....................................................................29 RGA Engineering, Ltd............................................................................25 Ron's Auto....................................................................................................50 Saskatchewan Research Council................................................. IFC Skky Hotel.....................................................................................................55 TerraX Minerals Inc..................................................................................39 Testmark Laboratories..........................................................................24 Tundra Airborne Surveys Ltd............................................................43 Van Houtte Coffee...................................................................................30
is published by DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba, Canada R3L 0G5 www.delcommunications.com President & CEO David Langstaff Publisher Jason Stefanik Managing Editor Shayna Wiwierski email@example.com Advertising Manager Dayna Oulion Toll Free: 1.866.424.6398
Advertising Account Executives Brent astrope | Brian gerow ross james | Nick miller | kari philippot Dan Roberts | Gary Seamans Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director Kathy Cable Layout Dana Jensen Advertising Art Dave bamburak Contributing Writers: Alex Chamberlain | Steven Creighton Jane Danoczi | Lucy Hunt Andrew McIntosh | Alex Parsons Waguih Rayes | Lucia Xia COVER PHOTO COURTESY OF GOLDCORP © Copyright 2019, DEL Communications Inc. All rights reserved.The contents of this publication may not be reproduced by any means, in whole or in part, without prior written consent of the publisher. While every effort has been made to ensure the accuracy of the information contained in and the reliability of the source, the publisherin no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Publications mail agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road, Winnipeg, Manitoba, Canada R3L 0G5 Email: firstname.lastname@example.org
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Message from the editor There’s lots going on in Canada’s north. Mining is still a strong economic driver for Canada’s northern territories. Starting first in the Northwest Territories, diamonds are still at a high, placing the province – and Canada – as the second-largest global diamond producer by carats. In fact, Dominion Diamond Mines ULC, the world’s leading producer of responsibly-mined diamonds, announced in early December 2018 that they recovered the largest-known gem-quality diamond ever found in North America. Over in Nunavut, exploration work is still going strong for gold, diamonds, uranium, base metals, and iron. In a recent Territorial Outlook, the Conference Board of Canada reported that new gold mines are expected to drive strong economic growth in both Nunavut and the Yukon over the next few years. Speaking of the Yukon, gold is still the most sought-after commodity in the territory, where over 111 exploration projects are currently active. I could go on and on about what’s going on in Canada’s north, however, I’ll let you read about in the pages of the 2019 issue of North of 60 magazine. In this issue we explore what different exploration companies are mining up north, as well as the services and suppliers that make it all happen. I hope you enjoy this year’s edition of the magazine, and if you want to stay up to date with us throughout the year, make sure to visit us online at miningnorthof60.com.
Graphic by Bailee Munro.
Shayna Wiwierski @DELCommInc
Mining North of 60 | 2019
ON TOP OF THE WORLD www.fednav.com
The Future of Northern Mining Message from the Honourable Amarjeet Sohi, Canada’s Minister of Natural Resources If living in Canada’s North takes a rare brand of resilience, mining in the North takes even more. These are people who blaze trails where there are no paths. While this vast frontier holds substantial opportunities, companies operating in northern Canada also faces a unique set of challenges that stem from geography itself: remoteness, severe weather, under-developed infrastructure, and sparse populations. These challenges combine to make exploration and mining more complex and expensive. But northern miners see the opportunity in every challenge. So does this government—and ensuring the mining industry is as competitive as possible, particularly in the North, is a priority. Being competitive means having access to key markets, an efficient regulatory system, a favourable taxation system, and a strong pool of talent today and into the future. That’s why in the recent Fall Economic Statement, we announced new tax measures that we believe will make our industry more competitive and support investment in clean technologies.
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10 Mining North of 60 | 2019
These measures include a five-year extension of the Mineral Exploration Tax Credit, which will give mining companies and investors much more certainty—critical to the future of the industry. Other measures will allow companies to immediately write off the full cost of new machinery and manufacturing equipment, including certain clean-energy equipment — an important incentive to invest in Canada, particularly in the North where access to grid power does not exist. In fact, one of first events I attended as Minister of Natural Resources was the Energy and Mines Ministers’ Conference last August in Iqaluit. The theme of the conference was Connecting Communities to Resources and I was pleased to have the chance to meet with local residents to discuss what natural resource development means to them. In our discussions, my provincial and territorial minister colleagues and I agreed on the importance of making our resource industries more inclusive, especially when it comes to new opportunities in the North. We agreed the best resource economy is the one that works for all Canadians. This meeting was also an opportunity to discuss the progress achieved on the development of the Canadian Minerals and Metals Plan — one that will build off Canada’s natural advantage as a leader in sustainable resource development by tackling today’s priorities: from climate change to Indigenous reconciliation and social responsibility. The plan will also reflect the advantage Canada enjoys with an abundance of the resources that will drive the low-carbon economy, including lithium, graphite, cobalt and other rare earth elements—the raw materials for new technologies, from solar cells and wind turbines to batteries for zero-emission vehicles. We also underscored the fact that in a world increasingly looking for sustainably produced products, Canada is unmatched in how we balance environmental considerations and economic development. This is Canada’s natural and competitive advantage. And innovation is key. For example, crushing and grinding is the largest user of energy in all of mining, estimated to consume an astounding three per cent of the world’s generated electric power. With that in mind, Natural Resources Canada recently launched the ‘Crush-it’ Mining Challenge to encourage breakthrough solutions in mineral processing, so that the industry can achieve lasting environmental and efficiency gains, while also maximizing production. The bottom line? Canada is a resource nation, and our resilient minerals industry has helped make us a global resource powerhouse. To keep that momentum going, Canada must keep blazing trails and upping its game. I intend to work with mineral exploration and mining companies towards that goal. n
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Northwest Territories mining highlights
Avalon Advanced Materials’ camp at Thor Lake, NWT, lit up at night.
Diamonds continue to dominate the northern landscape in 2018 as new finds, surpassed production expectations, and exploration continue. An estimated 20.5-million carats of diamonds worth $2.06 billion were produced in the NWT in 2017. At more than 88 per cent of Canada’s production, the Northwest Territories (NWT) is the main driver of Canada’s new position as the sec-
Nighthawk Gold Corp. is a Canadianbased gold exploration company with a district scale land position (222,203 acres or 900 square kilometres), within the Indin Lake Greenstone Belt, located approximately 200-kilometres north of Yellowknife, NWT.
12 Mining North of 60 | 2019
ond-largest global diamond producer by carats. Both surpassed expectations from the prior year.
Mines continue to thrive During the first half of the year at Diavik Diamond Mine, 1,208,000 tonnes of ore were processed, yielding 3,690,000 carats of diamond. Its A21 kimberlite pipe expansion officially opened, a project that is expected to keep the mine’s production near current levels through 2023. With the first ore uncovered in March, the new pit is scheduled to reach full production capacity during the fourth quarter of 2018. Arnaud Soirat, Rio Tinto Copper & Diamonds chief executive, said this $450-million investment “reflects the strong outlook we see for the diamond industry”. NWT Minister of Industry, Tourism and Investment Wally Schumann congratulated Diavik employees, and celebrated the successful project in remarks at both the mine site and a reception later on. In the first half of 2018, the Gahcho Kué Diamond Mine mined 1,082,000 tonnes and treated 1,684,479 tonnes of ore to recover more than 3,570,000 carats of diamond. The grades of the ore and value of the stones continue to outperform ex-
pectations. Mountain Province Diamonds, a major partner with De Beers at Gah Cho Kué, purchased the promising Kennady North diamond exploration project, which is just a stone’s throw away from the operating mine. The Ekati Diamond Mine continued operations at Pigeon, Sable, and Lynx open pits. Underground operations at Koala pit will wind down by the end of 2018, while Misery pit underground has now ramped up. Summer exploration resulted in the discovery of a new kimberlite. Exploration activities also continued on the Lac de Gras joint venture between Dominion Diamonds and North Arrow Minerals.
Staking resurgence in the NWT Driven by recovering commodity prices and new government-released geoscience, grassroots mineral exploration has increased in the NWT through 2017 and year-to-date in 2018. Last year saw the largest levels of staking since 2014, with 184 claims staked for over 139,000 hectares. That performance is well on its way to being equaled in 2018 with 157 claims already submitted. The bulk of activity has been focused on the geologically gifted Slave Geologi-
Nighthawk is focused on advancing the Colomac Gold Project with a recently updated inferred resource of 2.6 million ounces of gold (50.3 million tonnes at an average grade of 1.62 gpt Au), as well as advancing its other regional gold deposits and showings on its Indin Lake Gold Property, within a highly prospective and underexplored Archean gold camp. cal Province, but activity has been seen across the territory across a number of commodities. The return to form is indicative of the private sector’s belief in the NWT’s potential, and the territorial government’s commitment to stimulating exploration.
Celebrating success 20 Years of Ekati Employees and leadership of Dominion Diamonds’ Ekati Diamond Mine were joined by Premier Bob McLeod and Minister Schumann in August 2018 to celebrate 20 years of operations at Canada’s first diamond mine.
Events in Yellowknife and at the mine site celebrated what Minister Schumann described as “20 years of innovation, community-building, and prosperity” and demonstrated the strong, mutuallybeneficial relationship between political and industry leadership in the Northwest Territories. While political leaders expressed congratulations, corporate leadership expressed optimism about the future of the mine, outlining their continual pursuit of new opportunities.
Exploration highlights Lithium The NWT’s role in the increasingly important lithium conversation grew. 92 Resources had promising results, with new lithium-bearing pegmatite discovered and grades of up to 2.57 per cent Li2O returned on stream sampling. Equatorial Exploration also continued work on its Little Nahanni Pegmatite prospect in the Mackenzie Mountains. Cobalt Fortune Minerals’ NICO project got a boost in June when the Tlicho all-season road project, a public transportation project to service the community of Whati near the proposed mine, was approved. The cobalt-gold-bismuth-copper project continues to work towards financing to get its proposed mine producing as soon as possible.
Drill and core and 5256 – Geologists Andrew Bubar and Chris Pedersen examine core from Avalon Advanced Materials’ Nechalacho Rare Earth Elements deposit, Thor Lake, NWT. Gold Nighthawk Gold continued to get exciting results from its Indin Lake property, including high-grade mineralization at two deposits as part of the latest drilling program. Continued drilling allowed the company to update its inferred mineral resource estimate to 50.305 million tonnes with an average grade of 1.62 grams per tonne gold. TerraX Minerals continued aggressive exploration on its highly-accessible Yellowknife Gold Project. Summer channel sampling and prospecting returned bonanza gold grades from the Gull Lake zone from which a grab sample returned 43.7 grams per tonne of gold. Zinc and Lead Osisko Metals acquired all the shares of Pine Point Mining (formerly Darnley Bay Resources) in December 2017 and initiated an aggressive 50,000-metre diamond drilling program on its Pine Point Property near Hay River. NorZinc, formerly Canadian Zinc, completed a feasibility study in 2017 based on drilling at its Prairie Creek mine site. During 2018, the company’s plans for an all-season road into the mine site successfully passed through the environmental assessment stage and moved on to the permitting process. Pre-construction and cleanup work has been underway throughout 2018. n
14 Mining North of 60 | 2019
World-class resources are discovered in Canada’s Northwest Territories Come see for yourself.
Low-risk investment jurisdiction* Wide range of early and advanced stage projects seeking investment Modernized mining legislation in progress to improve processes, increase certainty Strong resident support and indigenous engagement in mining sector New transportation infrastructure to improve access to mineral resources *4th of 96 jurisdictions - Mining Journal 2018 World Risk Report NWTGEOSCIENCE.CA: E-mail: email@example.com T: 867-767-9211 Ext. 63469
NWTMINING.COM: E-mail: firstname.lastname@example.org T: 867-767-9209 Ext. 63160
Exploration and mining in Nunavut Submitted by Government of Nunavut’s Department of Economic Development and Transportation
TMAC Resources’ Hope Bay gold mine, 125-kilometres southwest of Cambridge Bay, Nunavut, commenced gold production in May 2017.
Nunavut represents one-fifth of Canada’s land mass and remains relatively under-explored. Its diverse geological bedrock provinces with rich deposits make Nunavut attractive for grassroots exploration. The territory has a single settled land claim, the Nunavut Agreement, and an established land tenure and regulatory system. According to Natural Resources Canada, in 2017 companies in-
vested an estimated $169 million for exploration and deposit appraisal work in their search for commodities in Nunavut – mainly gold, diamonds, uranium, base metals, and iron. Last year the value of mineral production in Nunavut rose to a record $844 million, an increase of 20 per cent over the $700 million from the previous year.
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16 Mining North of 60 | 2019
Kitikmeot region TMAC Resources started producing at the Hope Bay gold mine in early 2017. The Hope Bay belt is estimated to contain gold resources of approximately 10 million ounces. These resources could sustain mining activity for 15 to 20 years at an annual production rate of 500,000 million ounces. The Hope Bay belt is about 125-kilometres southwest of Cambridge Bay. Kivalliq region Agnico Eagle Mines operates the Meadowbank gold mine 75 kilometres north of Baker Lake. In September of 2017 the company surpassed 2.6 million ounces of gold produced. It estimates there are still 2.8 million ounces of gold. Agnico Eagle expects to begin gold production at its Whale Tail mine in early 2019. The company has connected the mine to Meadowbank via a 64-kilometre all-weather road and will use its processing facilities. Whale Tail is expected to produce about 2.1 million ounces by 2024. Qikiqtaaluk region Owned and operated by Baffinland Iron Mines Corporation, the Mary River iron mine is 175-kilometres southwest of Pond Inlet on Baffin Island. From August 2 to October 17, 2017 Baffinland shipped a record 4.1 million tonnes of iron ore from Milne Inlet to world markets, making it the largest shipment ever staged from the Canadian Arctic. It is going through the regulatory process to increase its exports.
A barge loads up on iron ore at Baffinland Iron Mines Corporation’s Mary River Iron Mine, southwest of Pond Inlet, Nunavut.
Mineral Exploration Diamonds De Beers Canada purchased Peregrine’s Chidliak diamond project in July 2018. Plans call for a mine at deposits CH-6 and CH-7 with a 10-year open pit operation to produce 15.62 million carats at an annual production of 1.2 million carats (average grade of 1.67 carats per tonne). Initial capital expenditures are estimated to be $435 million which includes a 160-kilometre allweather road to Iqaluit. North Arrow Minerals owns the Naujaat and Mel diamond projects. The Q1-4 kimberlite at the Naujaat project is within municipal boundaries of the hamlet of Naujaat. The deposit has an inferred resource of 26.1 million carats contained in 48.8 million tonnes. If economic, the deposit could be mined by open pit. Gold This past summer, Auryn Resources completed a total of 7,200 metres of drilling on its Committee Bay property which intercepted gold. There have been numerous significant gold discoveries along the 300-kilometre-long greenstone belt. The property is about 250 kilometres west of Naujaat. In June of 2018, the Kivalliq Energy Corporation changed its name to ValOre Metals Corp. It owns the Baffin Gold Property on
Excavators at work at Agnico Eagle’s Meadowbank gold mine, north of Baker Lake, Nunavut.
central Baffin Island. The property covers one of the largest un developed greenstone-iron formation gold belts in Nunavut. Cache Exploration’s Kiyuk Lake gold property is 350-kilometres west of Arviat. It plans to complete a survey on the property next year. Last year’s drill program confirmed and extended a known target and discovered significant gold mineralization at a new target. Base metals Exploration work by Aston Bay Holdings Ltd. indicates copper mineralization extending more than 100 kilometres along historical mineral occurrences on Somerset Island. The Storm copper and Seal zinc mineral occurrences are located near tide water. Bad weather hampered this summer’s drill program, but it managed to intercept more copper and gold. The Government of Nunavut is working to ensure that Nunavummiut benefit from emerging resource development opportunities. Nunavut has tremendous resource potential, as demonstrated by the success that exploration companies have achieved. With continued investment, many more discoveries are expected in the future. For more information, please visit www.gov.nu.ca/edt, or call 1-888-975-5999. n
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2019 | Mining North of 60 17
2018 Yukon exploration, development, and mining update By the Yukon Geological Survey, Department of Energy, Mines and Resources, Government of Yukon Figure 1. Mineral exploration remained strong in 2018. Exploration expenditures exceeded C$115 million. Development expenditures are estimated at C$410 million, primarily for the development of Victoria Gold Corp.â€™s Eagle Mine in central Yukon, as well as the advancement of Goldcorpâ€™s Coffee gold project in western Yukon. More than 111 exploration projects were active; 28 per cent of these were drilled. Gold continues to be the most sought-after commodity, with 65 per cent of projects targeting gold. The remainder of projects were focused on exploring for lead-zinc, copper, silver, and nickel-PGEs, and to a lesser extent, tin, cobalt, and jade. Funding for the Yukon Mineral Exploration Program (YMEP), a grant program that helps companies offset exploration costs, was maintained at C$1.6 million for 2018/19. YMEP funds were distributed to 40 hard rock and 22 placer exploration projects.
Mining and development Hard Rock Mining The territoryâ€™s only hard rock mine (Minto copper-gold-silver) was on track to change ownership in 2018. In February, Capstone Mining Corp. announced an agreement to sell the Minto Mine to Pembridge Resources PLC for C$37.5 million plus 9.9 per cent of Pembridge shares. Difficult market conditions through the summer prevented Pembridge from closing the financing. In October, Capstone terminated the agreement and announced that mining operations would cease and the site would be placed on temporary care and maintenance. Pembridge remains interested in the operation and, while they have lost exclusivity, is working towards renegotiating the acquisition terms. In the first nine months of 2018, Minto produced 9421 tonnes of copper, 7812 ounces of gold, and 89,000 ounces of silver. Victoria Gold Corp began mine construction at its Eagle intrusion-related gold deposit in central Yukon (Figure 1). Construction is 60 per cent complete, and the company is on target to pour its first gold in Q2 2019. Once in full production, the company plans to produce 200,000 ounces of gold per year from the open-pit operation. Capital expenditures are estimated at C$369. In tandem with mine development, the company continued to explore the larger Dublin Gulch property outside the Eagle deposit with 5,395 metres of diamond drilling (29 holes), trenching, mapping and soil sampling. Drilling on the untested Nugget zone, 12-kilometres east of the Eagle deposit, demonstrated the prospectivity outside the development area: Diamond drill hole NG18-006C intersected 101.5 metres of 0.57 g/t Au from near surface at Nugget. Goldcorp submitted its application for the Coffee gold property to the Yukon Environmental and Socioeconomic Assess-
18 Mining North of 60 | 2019
ment Board (YESAB) in the spring of 2017 for permitting. The 2.16-million-ounce (proven & probable reserve) gold property is envisioned as an open pit/heap leach operation. Permitting and detailed engineering are expected to be completed in 2020. Commercial production is targeted for 2021. The company continued exploring the property with a $35 million drill program to upgrade the resource and define additional oxide resources. Drill results have not been released. Although not actively mining, Alexco Resources Ltd. is advancing the Bermingham and the Flame & Moth deposits in the Keno Hill silver district. Underground work continued at the Flame & Moth decline, and underground drilling at Bermingham intersected spectacular grades including: 4.29 metre grading 3605 g/t Ag in the Bear vein; 3.96 metre grading 3348 g/t Ag in the Bermingham Footwall vein; and, 4.10 metre grading 1575 g/t Ag in the Bermingham Main vein. As a result of exploration work conducted in 2017 and 2018, the Bermingham indicated mineral resource has expanded from 17.3 million ounces to 33.3 million ounces of contained silver at an average silver grade of 628 g/t, while inferred mineral resources have increased from 5.5 million ounces to 10.4 million ounces of contained silver at an average silver grade of 526 g/t. A pre-feasibility study for Bermingham and Flame & Moth is expected in the first quarter of 2019. BMC Minerals Ltd., a private company, advanced its Kudz Ze Kayah volcanogenic massive sulphide (VMS) copper-zinc-lead property in east-central Yukon. An application to develop the ABM deposit on the property was submitted to YESAB in March 2017 and entered the screening stage in January 2018. A positive prefeasibility study for the ABM deposit in 2017 envisioned an open pit and small underground mine processing two-million tonnes per year with a nine-year mine life. Total capital requirements over the life of the mine are calculated at C$530 million. The company continued to explore the property with 4,055 metres of diamond drilling in 22 holes, an EM survey, soil geochemical sampling and mapping in 2018. Results have yet to be released.
Western Copper and Gold Corporation is undertaking adequacy work to complete its application to YESAB for panel review of its Casino porphyry copper-gold-molybdenum project in western Yukon. In November 2018, the company completed an 18-month Best Available Tailing Technology Study for Tailings and Waste Rock Management at the site. Yukon Zinc’s volcanogenic massive sulphide Wolverine Mine in eastern Yukon has been in temporary closure since 2015. In October 2018, the Yukon government announced that the mine had been sold to a new owner. No further details on the sale have been disclosed.
Significant exploration projects – Precious metals ATAC Resources Ltd. explored its extensive Rackla Gold Project in north-central Yukon. A positive recommendation from YESAB for an access road to the site was made, but final approval for road construction is pending. The western part of the property, the Rau Trend, includes the 490,000-ounce high-grade Tiger Deposit. The 2018 grassroots program focused on the newly discovered Bobcat Au-Cu skarn target within the trend. Hand pitting samples at Bobcat returned values up to 6.07 g/t Au and 7.41 per cent Cu. The central part of ATAC’s Rackla Gold property (Orion) is under option to Barrick Gold Corp. The 10,000-metre drill program at the property was designed to test the Anubis fault corridor. No results have been reported yet. ATAC Resources’ eastern portion of the Rackla belt is the Nadaleen Trend. Within this trend, an initial resource on the Osiris
Figure 3. Deposit was announced in June 2018: 12.38 Mt @ 4.24 g/t Au (1.7 Moz Au). The 10,000-metre diamond drill program at the property was punctuated with success. Drilling at the Sunrise Zone returned one of the highest-grade intervals to date: 26.70 metres of 12.95 g/t Au in drill hole OS-18-273. At the Conrad Zone, drill hole OS-18-266 intersected two main faults and demonstrated the importance of structural control on mineralization, assaying 2.83 g/t Au over 52.91 metres. Golden Predator Mining Corp. explored its three Aces orogenic gold project in southeastern Yukon with 4,772 metres of diamond drilling, 392 metres of RC drilling and mapping (Figure 2). One of the better intersections was at the Sprogge area, an interpreted intrusion-related target younger than the main orogenic system. Diamond drill hole 3A18-335 intersected 16.86 metres of 1.35 g/t Au at Sprogge. Goldstrike Resources Ltd. struck a deal with Newmont Mining in March of 2017 for its flagship Plateau Property, east of Mayo. The 2018 exploration program included 7,753 metres of drilling in 26 holes, sampling, and ground geophysical surveys. Results have yet to be released.
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White Gold Corp. (WGC) continued to explore its large portfolio of gold properties in western Yukon. The biggest programs were at White Gold and JP Ross. Overall, the 2018 exploration program comprised 16,176 metres of diamond drilling, 2,397 metres of reverse circulation drilling, 100 holes of RAB drilling, IP surveys, airborne magnetic & DIGHEM surveys, drone surveys, rock & soil sampling, and mapping over 18 properties. On the White Gold property, step-out drilling hit substantial gold mineralization at the new Golden Saddle West target: 2.32 g/t Au over 115.61 metres in hole WHTGS18D0194. At the Ryan’s Showing target, high-grade gold mineralization was intersected in discovery hole WHTRYN18RC0001: 20.64 g/t Au over 6.10 metres. WGC’s program at JP Ross resulted in the discovery of the Vertigo target, a 1.5-kilometre-long gold mineralized trend. RAB drilling at Vertigo returned several mineralized intersections, including 23.44 g/t Au and 145 g/t Ag over 24.38 metres, starting at surface. Klondike Gold Corp. explored its Klondike Gold property south of Dawson City. The recent recognition of dissemi-
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nated gold in schist between mineralized quartz veins led the company to resample historic drill core. At the Nugget Zone, resampling of diamond drill hole EC15-15 returned 58.10 metres of 1.03 g/t Au (the original assay was 1.8 metres of 3.7 g/t Au). A total of 9511.93 metres of new diamond drilling was completed in 2018 (87 drill holes). Drilling tested nearsurface mineralization at the Lone Star, Nugget, Gold Run, French, and Glacier targets. At Lone Star, diamond drill hole LS18-201 intersected a wide interval of gold mineralization: 91.0 metres of 1.02 g/t Au. Triumph Gold Corp. explored its Freegold Mountain project with 17,566 metres in 74 diamond drill holes (Figure 3). Other work included magnetic and IP surveys, soil sampling, trenching, and mapping. The discovery of the Blue Sky porphyry on the property shifted focus away from the Revenue breccia toward this significant higher grade target. Diamond drill hole RVD18-19 intersected 1.10 g/t Au and 0.27 per cent Cu over 316.00 metres at Blue Sky. Drilling success was also achieved at other targets on the property: Nucleus returned 1.184 g/t Au over 59.5 metres in DDH N18-17; Granger drilling returned 0.98 g/t Au over 18.39 metres in drill hole RVD18-33; and, the WAu Breccia returned 0.639 g/t Au, 0.17 per cent Cu over 128.00 metres in drill hole RVD18-08. K2 Gold Corp continued work at the Wels intrusion-related gold property in southwestern Yukon. Lidar, ground magnetic, and VLF-EM surveys helped the company identify major structures on the property. Prospecting these structures returned significant assays, including 4.07 g/t Au at the Pekoe target from a quartz-carbonate gabbro. At the Saddle area, quartz vein float assayed 43.0 g/t Au. The mineralized footprint has been expanded to four-kilometres by two-kilometres wide. Strategic Metals Ltd. explored Mt. Hinton in the Keno area with soil and rock sampling. Chip sampling of vein 12 returned 8.82 g/t Au, 63.48 g/t Ag and 2.34 per cent Pb over 1.95 metres. Float samples have returned up to 17.25 g/t Au and 633 g/t Ag. Strategic also revisited its Hartless Joe property in southern Yukon and completed a grassroots program of
soil sampling, hand trenching, and prospecting. Trenching returned 9.57 g/t gold over two metres. Rock samples yielded up to 49.8 g/t gold and 365 g/t silver. Strategic also completed small programs at 18 of its projects, scattered throughout Yukon. Banyan Gold Corp.’s main project in Yukon is Hyland Gold in the southeastern part of the territory. A modest program of 1,360-metre diamond drilling in 11 holes was carried out. One of the better intersections assayed 0.73 g/t Au and 5.61 g/t Ag over 85.0 metres in diamond drill hole HY18-077. Banyan also explored its newly acquired Aurex property in the Keno area with 1,414 metres of diamond drilling (12 holes), trenching, and soil sampling. Drill highlights include 113.0 metres of 0.74 g/t Au in DDH MQ-18-34. In western Yukon, Lucky Strike Resources built upon the discovery drilling of 2017 at its Lucky Strike gold property. Drilling was focused on the Monte Carlo Zone (1,359.7 metres in 11 diamond drill holes). Drill hole DDLS-18-06 returned 1.16 g/t Au over 8.3 metres in the upper part of the hole and 4.55 g/t Au over 7.6 metres in a lower sulphide zone. The company also carried out trenching along the 10-kilometre Lucky Strike corridor which delineated new drill targets. Stratabound Minerals Corp. optioned the greenfield Golden Culvert project in southeastern Yukon and drilled the very first holes on the property, completing 1,350 metres of diamond drilling in eight holes. In addition, the company soil sampled, prospected, mapped, and trenched. Significant drill intersections include 2.53 g/t Au over 33.1 metres in DDH GC1803.
Significant exploration projects – Base metals Base metal exploration continues to bring impressive results from the historic Tom and Jason (MacMillan Pass) sedimentary exhalative lead-zinc deposits (Figure 4). Fireweed Zinc Ltd. drilled some of the highest-grade intercepts at the Tom East occurrence: 21.1 per cent Zn, 13.5 per cent Pb, and 243 g/t Ag over 16.41 metres in DDH TS18-004. The comprehensive exploration program included 5,497 metres of diamond drilling (20 holes), mapping, sampling and ground gravity. Drilling at the under-explored
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End Zone target, northwest of Jason, returned significant intersections, e.g., 4.78 per cent Zn, 10.17 per cent Pb, and 87 g/t Ag over 11.08 metres in DDH EZ18-002. Fireweed Zinc released an updated resource for the Tom and Jason deposits in 2018: 50.68 million tonnes grading 6.01 per cent Zn, 2.99 per cent Pb, and 34.43 g/t Ag (indicated and inferred). Cantex Mine Development Corp. explored its North Rackla property in central Yukon with a modest diamond drilling program (seven drill holes). Massive sulphide mineralization rich in galena and sphalerite was encountered in drilling. Diamond drill hole YKDD18-12 intersected 13.00 metres of 150.6 g/t Ag, 7.85 per cent Pb, and 15.86 per cent Zn, and a slightly deeper intersection of 7.00 metres grading 22.0 g/t Ag, 1.23 per cent Pb, and 8.27 per cent Zn. The lead and zinc assays for this hole, as well as several other holes, were over-limit and required re-assaying. In 2018, Nickel Creek Platinum Corp. conducted geological mapping and IP geophysical surveys on underexplored targets at its Nickel Shäw project (formerly Wellgreen) in southwestern Yukon. Results are pending. The company also released an updated mineral resource: 323 million tonnes containing 1.9 billion lbs. Ni, 1.1 billion lbs. Cu, 107 million lbs. Co and 5.8 million oz PGM + Au (measured & indicated). The new resource was recalculated after metallurgical tests demonstrated a strong correlation between higher total sulphide content and higher nickel recovery. Selwyn Chihong Mining continued to do non-exploration work at its sedimentary exhalative Selwyn property in eastern Yukon. Work in 2018 included site reclamation, baseline environmental re-
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More than gold: Goldcorp’s coffee mine project in the Yukon
The Coffee Mine Project is a proposed open-pit and heap-leach development project that is located approximately 130-kilometres from the city of Dawson. The Yukon is special. You can ask anyone who has experienced it first-hand and they will tell you the same, it has a magical quality that only the Northern Lights, midnight sun, and abundant wilderness can bring. The Yukon’s history is rich with First Nations cultures, exploration, and adventure, and as such, most Canadians would likely associate the Yukon with the Gold Rush in some way. Back then, it was a treacherous journey through unmapped land with nothing but a pan and a pix axe. Today, gold mining has evolved to a state-of-the-art industry that includes a social, economic, and environmental focus above and beyond the act of exploring for gold. Goldcorp’s Coffee Mine Project is a prime example of what responsible mining can and will look like, even in the early stages of the mine life cycle.
About the Coffee Mine Project Located approximately 130-kilometres south of the city of Dawson, the Coffee Mine Project is a proposed open-pit and heap-leach development project that has recently completed the adequacy review phase of the permitting process with YESAB (Yukon Environmental and Socio-Economic Assessment Board). The property is remote, located on a ridgetop downstream of Coffee Creek along the Yukon River, and is currently accessible by plane or barge only. Road access to the Coffee Mine Project, known as
Mine life on the Coffee Mine Project begins with 2.5 years of construction, followed by 10 to 12 years of operational mine life, followed by 10 years of reclamation and closure.
22 Mining North of 60 | 2019
the proposed Northern Access Route, will be an all-season road from Dawson City to the project site following the existing Hunker and Sulphur road network with crossings at the Stewart and Yukon Rivers by barge in the summer and ice road in the winter. Mine life begins with two-and-a-half years of construction, followed by 10 to 12 years of operational mine life, and then finally by 10 years of reclamation and closure. Preliminary estimates predict 60-million tonnes of mined ore over the life of the project. Currently, the project is in the advanced exploration stage of development.
Environmental stewardship Goldcorp is well known in the industry as a company that takes the environment very seriously. The company is committed to doing it right, as signatories on multiple global environmental initiatives (e.g. International Cyanide Management Code, and the UN’s Sustainable Development Goals), and with ambitious company endeavours such as Towards Zero Water and #DisruptMining changing the way we view conventional mining, it’s no surprise that the Coffee Mine Project is part of these initiatives. “The land of the Yukon is unique, and requires special care by those working on it – at every stage of the mining life cycle,” says Chris Cormier, mine general manager at the Coffee Mine Project, who has extensive experience in sustainability, mine closure, and reclamation. The way Goldcorp’s mines are planned is not a cookie-cutter process, but instead mines are designed to fit their unique environments while minimizing the impact on their surroundings. The Coffee Mine Project does not include a wet-tailings operation for example, opting for the heap-leach method, which is more water efficient. A lot of thought is going into water management at Coffee in alignment with Goldcorp’s Towards Zero Water initiative, as well as working closely with Coffee’s First Nations partners to understand water management priorities. Additionally, an intensive wildlife monitoring program is currently being developed for important species such as bears, moose, and caribou. “We want to leave a positive, lasting impression in the Yukon,” adds Cormier.
First Nations and community engagement One of the most important aspects of mining is local community involvement by engaging First Nations and community partners throughout project development, operation, and closure. The Coffee Mine Project has successfully involved local stakeholders, First Nations, and regulators continuously through the project’s development to date and engagement will be ongoing. Also, as part of Goldcorp’s commitment to diversity and inclusion, of the 68 employees currently working at Coffee, 34 per cent are female, 18 per cent are First Nation, and 70 per cent are Yukon residents. Projects in First Nations career development and vocational training are also in the works, including a partnership with Yukon College to support local training and career development opportunities. Goldcorp has been working collaboratively with their First Nations partners in the initial stages of mine development, and signed a collaboration agreement with Tr’ondëk Hwëch’in in April of this year. This milestone event sets the stage for long-term partnerships between Goldcorp and Tr’ondëk Hwëch’in through the life of the Coffee Mine Project. “The collaboration agreement with Tr’ondëk Hwëch’in is an important milestone, and we are focused on delivering economic opportunities for all Yukoners at each stage of the project,” says Cormier. Following the signing of the agreement, Goldcorp was a proud Shär Cho sponsor of the Tr’ondëk Hwëch’in Moosehide Gathering in July. The biannual gathering celebrates Hän and Indigenous
One of the most important aspects of mining is local community involvement by engaging First Nations and community partners throughout project development, operation, and closure. language and culture through workshops, guest speakers, dancing, drumming, singing, and nightly feasts. The gathering saw over 2,000 people join in the festivities which were held in Moosehide Village, three kilometres from Dawson City, including several volunteers from Coffee. “Our Whitehorse-based team has been working very closely with First Nations and community partners to design a socially and environmentally responsible project,” adds Cormier. Just as the Yukon is more than a place, it is an experience made up of the people, cultures, and landscapes that make it special, Goldcorp’s Coffee Mine Project is more than gold. The project aims to create sustainable value for local communities and the environment, take care of precious water ways, work with our First Nations partners, and offer opportunities for Yukoners to build their careers with a safe, productive, and responsible mining company. n
We see the bigger picture. At Goldcorp, we’re miners. We value the materials we extract from the land, but we also see the bigger picture our presence has in the Klondike. To us, the Yukon is more than mining – more than gold. The Yukon is a people and a place. By establishing ourselves here, we’re entering a long-term relationship with Yukoners and the land. We will work with both to ensure the territory continues to shine for decades to come.
The Coffee Mine Project. More than Gold. goldcorp.com
To learn more contact us at 1-844-330-0277 or firstname.lastname@example.org
Photo: Environmental Monitor at the Coffee Mine Project site. Credit: GBP Creative Media
2019 | Mining North of 60 23
SGS: Delivering quality expertise to the mining industry in Whitehorse
An inside look into SGS' Whitehorse facilities.
With a mining legacy dating back more than a century, the Yukon remains one of Canada’s most high-profile mining regions. In recent years, spending on exploration and development has risen from $93 million in 2015 to $158 million in 2017. With recent major discoveries of gold, silver, copper, zinc, and lead in the Yukon, large mining companies including Agnico-Eagle, Barrick, Couer Mining, Goldcorp, Kinross, and Newmont have joined the foray in the Yukon. While exploration and development investment has risen in the territory, only 12 per cent of the Yukon is currently staked, leaving
a vast amount of undiscovered potential waiting to be unearthed. To help meet the increasing demands of mineral exploration in the Yukon, SGS has proudly opened new sample preparation facilities in Whitehorse. SGS provides the mining industry quality expertise across the entire project life cycle from exploration to closure. SGS Whitehorse will help exploration programs significantly reduce sample shipping costs and lower analytical turn-around times allowing for faster strategic decisions on drill campaigns. Officially opened in July 2018, SGS Whitehorse is open seven days a week
24 Mining North of 60 | 2019
and spans over 5,100 square feet including laboratory, office, and indoor and outdoor storage space. All employees of SGS Whitehorse have been hired from the local Whitehorse community. On-site, the facilities are equipped to provide drying, crushing, splitting, and screening. Expanded capabilities to suit client project needs can be added as needed giving the site opportunity to grow and expand as demand increases. Sample preparation can be completed on the following sample types: • Core samples • RC chips • Rock samples • Trench samples • Soil samples Once prepared, samples will be submitted to SGS’ multi-lab facility in Vancouver which has been designed to offer a full suite of integrated geochemistry, metallurgy, mineralogy and trade services, as well as environmental testing services. SGS Vancouver is linked globally to a network of geochemistry laboratories to provide an unparalleled suite of services. SGS’ rigorous quality control and streamlined processes provides robust: • Fire assay for gold and platinum group metals determinations • Trace base metal and rare earth analysis by ICP-MS and ICP-AES • Carbon and sulfur analysis • Classical wet chemistry analysis • Commercial grade analysis • Analysis of ore-grade samples • MMITM selective leaching extraction to locate deep-buried deposits With a global network of technical expertise and cutting-edge facilities, SGS provides trusted third-party services to exploration firms, mining companies and financial organizations around the world. Having new sample preparation facilities in Whitehorse allows SGS now to provide local service backed by their global network, helping your project save financial resources and project time. To learn more about SGS’ capabilities in Whitehorse, contact SGS at www.sgs.ca/mining or email@example.com. n
Delivering engineering excellence on: • Structural Steel Analysis and Design • Welding Inspection and Engineering • Mechanical Design • Connection design
• Crane Certification/Inspection • Retained Engineer for CSA Welding Programs • Steel Detailing SERVING THE NORTH 143 Industrial Rd, Whitehorse, YT Y1A 2V2
Cell: 1-867-334-9446 Toll Free: 1-855-637-3748 Email: firstname.lastname@example.org
Khione Resources is here to connect you with the best workforce the North has to offer. Our experienced human resources team has an extensive recruiting network. That means we’re experts at mobilizing highly skilled, specialized and experienced northern project teams.
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Khione Resources Suite 101 5105-50th Street Yellowknife, NT X1A 2P5 Phone: (867)
873-3553 Email: email@example.com
www.khione.ca 2019 | Mining North of 60 25
ATAC sees serious size potential at Rackla gold property
ATAC Resources Ltd. now controls one of the highest grade open-pit resources in North America at its district-scale Rackla Gold Project in the Yukon. All photos courtesy of Cathie Archbould. ATAC Resources Ltd. (TSXV: ATC; US-OTC: ATADF) now controls one of the highest grade open-pit resources in North America at its district-scale Rackla Gold Project located 55-kilometres northeast of Keno City, Yukon. ATAC released a maiden resource estimate on its wholly-owned Osiris Project in mid-June, which includes nearly 1.7 million ounces gold within 12.4 million tonnes grading 4.23 grams gold per tonne. The pit constrained resource totals of nearly 1.1 million ounces within eightmillion tonnes, grading 4.08 grams gold per tonne. ATAC followed up this major milestone with a highly successful 2018 exploration season completing just over/under 15,000 metres of diamond drilling. The field program included nearly 7,500 metres of drilling on the Orion Project and 7,700 metres of resource expansion drilling at the Osiris Project. The Orion Project is currently un-
der a $55-million earn-in agreement with industry leader Barrick Gold Corp. (TSX: ABX; NYSE: ABX). "The resource really demonstrated the quality and size potential of the asset we are dealing with at Rackla," says Graham Downs, president and CEO. "We believe it's strategic in the gold space, and strategic for Yukon. Our drilling this season at Osiris was focused on extending the resource footprint and demonstrating the potential for further expansion. The work with Barrick on Orion is earlier stage and geared towards discovery. We know there is gold in the Orion area, but it has received much less work to date than other parts of the project area." The 1,700-square-kilometre Rackla Property has been divided into three projects: the Rau Project on the western end near Keno City; the Orion Project in the middle; and the resource-stage Osiris Project on the eastern end.
The 1,700-square-kilometre Rackla Property has been divided into three projects: the Rau Project on the western end near Keno City; the Orion Project in the middle; and the resource-stage Osiris Project on the eastern end.
26 Mining North of 60 | 2019
Orion and Osiris are geologically unique as the only documented hosts of Carlintype gold deposits outside of Nevada. These types of mineral systems are known for being large, district-scale opportunities that include Barrick's Cortez and Goldstrike properties in Nevada, which employ 3,000 people and have proven and probable gold reserves of nearly 20 million ounces of gold. ATAC's gold resource is currently composed of four deposits: Conrad, Osiris, Sunrise, and Ibis. ATACâ€™s C$6 million exploration expenditure in 2018 was mainly focused on step-out diamond drilling at Conrad, Osiris, and Sunrise, which are all open to expansion in multiple directions. Importantly, ATAC identified new mineralization and expansion opportunities at three core deposits. Drilling at Conrad discovered additional near-surface mineralization 90 metres to the east of the open-pit resource boundaries, where results included: 64.01 metres grading 1.55 grams gold per tonne from 20 metres depth in hole OS-18-263; and 52.91 metres of 2.83 grams gold per tonne from 127 metres depth in hole OS-18-266. ATAC also reaffirmed the exciting depth potential at Conrad, where the deposit is relatively underexplored. ATAC extended the Conrad Middle Zone 90 metres to the east with a high-grade interval of 23.59 metres of 9.5 grams gold per tonne in hole OS-18-262. "The results at Conrad are really exciting," Downs continued. "We have established a predictable zone of near-surface mineralization trending towards the east that could add gold ounces to our open-
pit resource. Plus, we are seeing the high grades at the Conrad Middle Zone. The underground resource is really only constrained by drilling at this point, so it has a lot of room to grow." ATAC's exploration success continued at Sunrise where it intersected 26.7 metres of 12.95 grams gold in hole OS-18273, being one of the highest-grade gold intervals to date. ATAC’s drilling focused on extending mineralization beneath hole OS-17-249, which cut 15.24 metres of 13.52 grams gold per tonne in 2017. Similarly, ATAC reported one of its highest-grade results to date at Osiris, where hole OS-18-275 intercepted 8.63 metres of 11.72 grams gold from 244 metres depth. This intersection also marks the first time mineralization has been encountered at the contact with the crystalline limestone. "The expansion drilling across the Osiris Project merely reiterates that it is still early days at all our gold zones," Downs added. "Rackla is emerging as one of the only modern greenfield gold discoveries in Canada with this type of size potential. We know that Conrad, Sunrise, and Osiris remain open in multiple directions, which gives us significant opportunities to con-
tinue to expand mineralization.” In November, ATAC announced that rotary air blast (RAB) drilling had identified a new gold occurrence around 1,000 metres southwest of Conrad where prospecting grab samples in 2010 contained 2.51 grams gold per tonne and 2.34 grams gold per tonne. The two holes were fanned off a single drill pad and targeted the Osiris limestone unit, the same host rock as Osiris, Sunrise, and Ibis. Hole OSR-18-001 intersected 1.53 metres of 3.05 grams gold per tonne, and hole OSR-18-002 returned 6.10 metres of 3.38 grams gold per tonne. This mineralization was intersected from bedrock surface and highlights the potential for additional discoveries of Carlin-style gold mineralization. Meanwhile, ATAC's exploration work with Barrick on the earlier-stage Orion Property had a budget of roughly $6 million, which included 16 diamond drill holes. The results of the work were not available at press time, and are expected following a joint technical session between the two companies in mid-December. ATAC and Barrick were exploring high-
ᓄᓇᕗᒥ ᑭᒃᑯᓕᒫᓄᑦ ᐱᔪᓐᓇᐅᑎᒧᑦ ᐱᖁᔭᖅ ᓴᐳᒻᒥᑦᑎᕗᖅ ᐱᔪᓐᓇᐅᑎᒋᔭᑦᑎᓐᓂᒃ ᐃᓱᒪᓱᕐᓗᑕ ᐃᓅᓇᓱᐊᓂᕐᒧᑦ ᐊᔾᔨᒌᓐᖏᑎᑕᐅᖏᓪᓗᑕ ᐊᒻᒪᓗ ᐃᓚᐃᓐᓈᕐᓂᖅ ᑐᓐᖓᓂᖃᕐᑐᖅ ᐃᒻᒥᒧᑦ ᖃᓄᐃᑦᑑᓂᕆᔭᖏᓐᓄᑦ ᓲᕐᓗ ᐃᓅᑉ ᓇᑭᓐᖔᕐᓯᒪᓂᖓ, ᑕᖅᓴᖓ, ᓯᕗᓕᖏᓐᓄᑦ, ᐃᓕᖅᑯᓯᖏᓐᓂᓐᖔᕐᓯᒪᓂᖓᓄᑦ, ᓄᓇᖃᖅᑎᐅᓂᖓᓄᑦ, ᓇᑭᓐᖔᕐᓯᒪᓂᖓᓄᑦ, ᐅᒃᐱᕆᔭᖓᓄᑦ, ᐅᒃᐱᕐᓂᕆᔭᖓᓄᑦ, ᐊᕐᕌᒍᖓᓄᑦ, ᑎᒥᒃᑯᑦ ᐱᒐᒍᑎᖃᓂᖓᓄᑦ, ᐊᕐᓇᐅᓂᖓᓄᑦ/ ᐊᖑᑕᐅᓂᖓᓄᑦ, ᓄᓕᐊᖅᐸᖕᓂᕆᔭᖓᓄᑦ, ᑲᑎᑎᑕᐅᓯᒪᓂᖓᓄᑦ, ᓇᔾᔨᓂᖓᓄᑦ, ᑮᓇᐅᔾᔭᒃᓴᕐᓂᕆᔭᖓᓄᑦ, ᐱᕋᔭᒃᓯᒪᓂᖓ ᐊᑐᕈᓐᓃᕐᑎᑕᐅᓯᒪᓂᖓᓄᑦ ᐊᒻᒪᓗ ᐱᖁᔭᑎᒍᑦ ᑮᓇᐅᔾᔭᒃᓴᕐᓂᖓᒍᑦ.
The Nunavut Human Rights Act protects our right to live free from discrimination and prejudice based on personal characteristics such as race, colour, ancestry, ethnic origin, citizenship, place of origin, creed, religion, age, disability, sex, sexual orientation, marital status, pregnancy, income, pardoned conviction and lawful source of income.
ᑲᒪᒋᔭᐅᑦᑎᐊᖏᓐᓂᑰᒍᕕᑦ, ᑎᑎᖅᑲᓕᐅᕈᓐᓇᕐᐳᑎᑦ ᑐᓴᖅᑎᑦᑎᓂᒃᑯᑦ ᐅᖄᓚᕕᐅᓗᑕ ᐅᕗᖓ:
If you have been treated unfairly, you can file a notification by contacting us at:
ATAC's gold resource is currently composed of four deposits: Conrad, Osiris, Sunrise, and Ibis.
In November, ATAC announced that rotary air blast (RAB) drilling had identified a new gold occurrence around 1,000 metres southwest of Conrad.
Tapkuat Nunavunmi Inungnut Pitqutigiyauyunut Ihuaqhaiyiit Piquyat haputihimayai piyungnautivut inuuniqmik ihuinaqtauttailiniqmun aalagiyauniqmutlu piplugit inmigut qanugittunivut tahapkuatut humingaqnivut, taqhavut, hivuligaluavut, nunaligiyavut, huminganiviniqut, maligavut, ukpiqnivut, ukiuquqtunivut, pimmalutivut, aqnaunivut angutaunivut, aqnaqniaqnivut angutihiuqnivut, aipaqaqnivut qanugitni, hingainivut, maniktaqnivut, hugiyauhuiqni ihuinaqnivut maligaqniklu pihimanivut manikhauhiqnut. La Loi sur les droits de la personne du Nunavut protège notre droit de vivre sans faire l’objet de discrimation et de préjugés fondés sur des caractéristiques personnelles telles que la race, la couleur, l’origine ancestrale, l’origine ethnique, la citoyenneté, les croyances, la religion, l’âge, l’invalidité, le sexe, l’orientation sexuelle, la situation de famille, la grossesse, le revenu, l’état de personne réhabilitée et la source de revenus légitime.
Ihuinaqtauhimaniguvit, tunihilaqtutit tuhaqhityutmik tugaqvigiluta talvani:
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1866413-6478 1888220-1011 www.nhrt.ca
2019 | Mining North of 60 27
ATAC is also advancing precious and base metal opportunities at its Rau Project at the western end of the Rackla Property.
ATAC CEO Graham Downs.
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28 Mining North of 60 | 2019
level targeting concepts developed in 2017. ATAC's surface exploration prior to Barrick’s involvement identified high-grade gold mineralization at Orion, including outcrop grab samples grading 139 grams gold per tonne and 125 grams gold per tonne. Drilling in 2018 along 400 metres of the Anubis Fault in 2012 and 2016 intersected 8.51 metres of 19.85 grams gold per tonne and 61.29 metres of 2.75 grams gold per tonne. Finally, ATAC is also advancing precious and base metal opportunities at its Rau Project at the western end of the Rackla Property. The area is especially strategic as ATAC is in the final stages of permitting a 65-kilometre tote road that would tie the property into the broader Yukon highway network. The Rau Project already hosts the advanced-stage Tiger gold deposit, with economic potential demonstrated in a 2016 PEA yielding a Pre-Tax NPV (five per cent) of C$106.6 million and a Pre-Tax IRR of 34.8 per cent. Significant potential also exists elsewhere in the area for copper and base metal mineralization potentially related to the Rackla Pluton. In 2018, ATAC discovered high-grade skarn mineralization at its Bobcat Target, where field crews collected pit samples grading 6.07 grams gold per tonne with 7.41 per cent copper, and 5.08 grams gold per tonne with 3.69 per cent copper. "We are moving through the road permitting process in partnership with the First Nation of Nacho Nyak Dun and the Yukon Government," Downs explained. "The Rau area is really exciting because we are now seeing high-grade copper-gold skarn mineralization and the potential for perhaps a porphyry-style opportunity. It gives ATAC optionality in terms of base metals and offers our shareholders exposure to another high-grade project that looks like it has great discovery potential." ATAC will finish 2018 with roughly C$10 million in its treasury, and a host of exploration opportunities across what could be an emerging mining camp in the north. ATAC will continue to de-risk its Osiris Project moving into 2019, while also working with Barrick to make new gold discoveries in the region. ATAC's story could quickly become more polymetallic, however, if the base metal occurrences at the Rau Project become greater discovery opportunities. n
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Exploring Lena West Diamond Region: A roller coaster ride?
Sampling plateau above Horton River.
Laterite indicating tropical weathering. The 1972 discovery of kimberlites on Somerset Island led to the search for diamonds in Canada’s Arctic, including the Lena West diamond region, the area north of Great Bear Lake to the Arctic coast. However, a De Beers reconnaissance team in 1976 lost their bearings caused by a large magnetic anomaly at Paulatuk. Because of navigation difficulties the area was never sampled.
The development of GPS allowed Darnley Bay Resources in 1998 to fly a magnetic survey over the Paulatuk anomaly searching for base metals. The survey led to the serendipity discovery of 10 kimberlite pipes, which were diamondiferous, but the grade was too low. De Beers recommended Darnley Bay look south of Paulatuk from where three diamonds had been carried by glacial ice. Anomalous kimberlitic chromites and picro-ilmenites were found in the Horton area and it was assumed that most of the lighter pyrope garnets had been lost during panning. Talmora Diamond Inc. acquired a small property, repeated the anomalous samples without panning, and got the same results. The few pyropes recovered were corroded. At the same time, Diamondex Resources, De Beers, and Sanatana Diamonds acquired large hold-
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ings over the whole of Lena West, found widespread kimberlite indicator minerals (KIMs), including standard pyropes with diamond association chemistry and Diamondex found 15 diamonds. It was hard to get excited over a small Talmora property deficient in pyropes. Talmora’s magnetic survey showed a large number of magnetic anomalies associated with chromites and picroilmenites. Corroded pyropes were believed related to weathering during Eocene global warming, and laterite typical of tropical weathering was noted in the
area. In the southeast corner of Lena West, Sanatana discovered the Dharma kimberlite in 2007, and in 2008 the Horton area received an unexpected boost when Diamondex quit exploring Lena West and published a paper showing that many of the KIMs found across Lena West were derived from the base of the Cretaceous basin and probably entered the basin from the Horton area. Unfortunately, Sanatana then decided that most of the chromites in the Horton area were derived from nonkimberlitic rocks and they also pulled out of Lena West. If Sanatana was right, only picro-ilmenites remained as an indicator of kimberlites and they do not necessary indicate diamonds. From 2008, raising funds for drilling was difficult, but one could research the literature and assessment work files. The source of Lena West KIMs and diamonds had not been established, but Talmora had shown that Lena West picro-ilmenites were different to those at Dharma and Darnley Bay, but matched those in the Horton area. Cluster analysis showed that chromites, chrome diopsides, and pyropes showed the same relation. ICP analyses showed a broad train of kimberlite pathfinder elements in till focused on Seahorse Lake where there is a large magnetic anomaly that was never drilled. The ICP train coincides with what Sanatana originally called a cloud of anomalous samples in which chromites dominate over picro-ilmenites. Mn-ilmenite with compositions matching those found in type IIa diamonds that formed in the lower mantle were recognized in the area by Talmora and they characterize the Seahorse train. An important and timely paper in 2016 proved that large high-value-type IIa diamonds like the Cullinan, Koh-I-Nor, etc. also formed in the lower mantle. In spite of pyropes lost to weathering, Talmora now has a large target with a Mn-ilmenite train down-ice indicating the potential for large high-value diamonds. Talmora has an agreement with Olivut Resources to test the anomaly in 2019. Only a drill hole will determine whether the present ride up will continue to a top-class discovery. n
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2019 | Mining North of 60
Exploration continues to add value at Keno Hill
Last rig setup at Blackcap, Sept. 2018. Creating value for shareholders can sound like a clichĂŠ premise at times in our industry. Coupled with current market sentiment, including a combination of fear, frustration, and general intolerance for the overall sector, it can be difficult for investors to see the value from either a short- or long-term perspective. For Alex-
Keno Hill District Mill Site.
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co, the strategy to increase shareholder value remains unwavering. While the work towards putting the Keno Hill Silver District back into production in the near term continues, adding silver ounces to the books is, quite possibly, the best way to add value for shareholders. In 2018, Alexcoâ€™s exploration program included over 15,000 metres of surface exploration diamond drilling. The program consisted of 55 holes focusing predominantly in and around the Bermingham deposit which has, since 2013, along with the Flame and Moth deposit, seen approximately 44-million ounces of indicated silver added to their size. This has been at a discovery rate of less than $0.55 per ounce, which by industry standard is very low. Concurrent to the surface exploration drilling, a 24 hole, +4,200-metre underground infill resource and peripheral
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zone drilling program was also concluded during the 2018 drilling campaign. True width intercepts of the Bear Vein at Bermingham ranging up to 12.28-metre grading 1,019 grams per tonne (g/t) (32.8 ounces per tonne (oz/t)) silver in hole BMUG18-012, true width intercepts of 4.17-metre grading 5,373 g/t (172.8 oz/t) silver in hole BMUG18-015, and 4.26-metre grading 1,958 g/t (63.0 oz/t) silver in hole BMUG18-008 were some of the intersections achieved. Portions of the 2018 surface and underground drill results were incorporated into a new Bermingham mineral resource that was published in September. The results were nothing short of impressive, with an expansion from 17.3 million ounces to 33.3 million ounces of contained silver at an average silver grade of 628 g/t, while inferred mineral resources have increased from 5.5 million ounces to 10.4 million
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ounces of contained silver at an average grade of 526 g/t. Overall, Alexco now has +83 million ounces indicated silver and +22 million inferred at all current deposits within the Keno Hill district. Importantly, more than 70 per cent of these silver ounces are contained in the recently discovered Flame & Moth and Bermingham deposits. In addition to the remainder of the 2018 drill results that will be published in late Q4 or early Q1 2019, Alexco also has a prefeasibility study currently underway with results to be published in Q1 2019. The execution strategy remains consistent; disciplined to ensure risks (both internal and external) are managed in a measured way, executing each step in a safe and effective manner and continuing to emphasize prudent but intelligent exploration strategies. It is by using this approach that the company believes it is moving steadily up the value curve even amidst the challenging markets we currently find ourselves in. n
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2019 | Mining North of 60 33
Finding gold Aben Resources Ltd. 2018 overview Aben Resources Ltd. (TSX-V: ABN) is a publicly traded Canadian gold exploration company with significant projects in British Columbia, Saskatchewan, and the Yukon. The company's flagship project is the 23,000-hectare Forrest Kerr Gold Project and is located in the heart of a region called the Golden Triangle in northwestern B.C. This region has hosted significant mineral deposits including: Pretium (Brucejack), Eskay Creek, Snip, Galore Creek, Copper Canyon, Schaft Creek, KSM, Granduc, Red Chris, and more. Aben is acquiring a 100 per cent interest in the Forrest Kerr Project located along the Forrest Kerr Fault, which consists of a 40-kilometre-long north-south belt overlying rocks of the Hazelton and Stuhini Groups, a complex assemblage of volcanic accumulations with intervening sedimentary sequences which are host to significant gold deposits in the Golden Triangle region. The first drill hole of 2018 at the Forrest Kerr Project discovered multiple highgrade zones, including 62.4 g/t gold over 6.0 metres within 38.7 g/t gold over 10.0 metres starting at 114 metres downhole at the Boundary North Zone. The results from this drill hole allowed the company to quickly finance and raise an additional
Aben is acquiring a 100 per cent interest in the Forrest Kerr Project located along the Forrest Kerr Fault, which consists of a 40-kilometre-long north-south belt overlying rocks of the Hazelton and Stuhini Groups, a complex assemblage of volcanic accumulations with intervening sedimentary sequences which are host to significant gold deposits in the Golden Triangle region. $4.3 million to expand the 2018 drill program from 5,000 metres to 10,000 metres. Aben drilled a total of 35 holes into the North Boundary Zone, where high-grade gold was discovered during the 2017 drill program and further confirmed by the 2018 results. Aben also drilled holes in the new South Boundary Zone that also delivered very encouraging results. This zone is 1.5 kilometres south of the North Boundary Zone. Aben is also acquiring up to an 80 per cent interest in the 4,657 hectares Chico Gold Project located 125-kilometres east of La Ronge, Saskatchewan and 40-kilometres south of SSR Mining’s Seabee/ Santoy mine complex. Chico property highlights include the presence of a 1.5-kilometre mineralized structural corridor confirmed by geophysical surveys,
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34 Mining North of 60 | 2019
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Aben also holds a 100 per cent interest in the 18,314-acre Justin Gold Project located in the southeast Yukon. geological mapping, and recent soil sample coverage. Rock samples collected in 2016 along this structural corridor ranged from trace to 20.2 g/t gold. Recent work resulted in numerous high-priority drill targets being identified. Aben also holds a 100 per cent interest in the 18,314-acre Justin Gold Project located in the southeast Yukon. The Justin property is located on the Tintina Gold Belt to the immediate southeast of Golden Predator's Three Aces gold project. Previous drilling by Aben in 2012 on the Justin Project intercepted 60 metres of 1.19 g/t gold, including 21 metres of 2.47 g/t gold in the POW Zone. The geochemical signature of the mineralized zone is characterized by elevated Au, Bi, Cu, Mo, and W supporting an Intrusion Related Gold System (IRGS).
In 2017, Aben discovered a new goldbearing vein system (the Lost Ace). A 3.8 kg bulk sample collected in the immediate vicinity returned 1,135 visible gold grains. This new discovery is two kilometres from the Pow Zone. In 2018, follow up work on this new discovery zone extended the zone by 125 metres to the west. Coarse Visible Gold was observed in quartz veins from two trenches 125 metres apart. Sample results are pending. n
Aben Resources Ltd.â€™s flagship project is the 23,000-hectare Forrest Kerr Gold Project and is located in the heart of a region called the Golden Triangle in northwestern B.C.
Aben Resources ABN.V is a publicly traded Canadian gold exploration company with significant projects in British Columbia and the Yukon.
Aben Resources mission is to increase shareholder value by developing exploration projects near world-class deposits that have the potential of becoming new discoveries. Suite 1610 â€“ 777 Dunsmuir Street Vancouver, BC
604-687-3376 www.abenresources.com 2019 | Mining North of 60 35
Auryn Resources: Searching for the next major high-grade gold mine in the Arctic Committee Bay project in Nunavut. Millions of dollars have been spent in the search for gold in one of the most unforgiving, but rewarding regions in the world – the Arctic; where big, high-grade gold mines are being found. With the challenge of glacial till, a shorter surface exploration season, and moving people and equipment to such a remote part of the world, some explorers would compare it to finding a needle in a haystack on the moon. However, it’s not an insurmountable endeavour. Agnico Eagle, for example, has become one of the only companies to stand-up to Mother Nature’s freezing temperatures by recently (2013) making a major Arctic discovery called Amaruq. The Canadian-based gold major’s CEO, Sean Boyd, says they are now spending approximately $1.2 billion in Nunavut building two mines.
Auryn: a junior company with a major thirst for gold So how could junior exploration company have the capacity for such a costly and technical venture? Auryn’s executive chairman and director, Ivan Bebek, says the company is set on “finding the next globally significant discovery”, and that he believes they have the best team to do it. “We’ve essentially reconstituted Newmont’s former exploration team, and brought in additional world experts, to cover all the disciplines needed in exploration,” says Bebek. With Newmont’s former global structural geologist and global mapper leading the charge, Auryn’s technical team is one of the best in the industry. And the company’s management has an
impressive resume as well. Collectively, Bebek says they have found a five-million-ounce mine, built a 10-million-ounce mine, and raised well over $600 million. Their last company, Cayden Resources, sold pre-resource to Agnico Eagle for $205 million in 2014. Bebek believes Auryn’s technical team and seven-project portfolio approach are why the company has one of the single highest investments from a major gold company into a junior, with Goldcorp investing approximately $40 million to date to maintain its 12.4 per cent ownership. “The appeal is quite simple. It’s the size, grade and potential for multiple major deposits,” says Bebek. Committee Bay and Gibson MacQuoid – Auryn’s projects in Nunavut, consist of over 400 kilometres of prospective greenstone belts with numerous high-grade gold occurrences. Bebek says they have a 1.3-million-ounce deposit of 7.7 grams per ton gold, known as Three Bluffs, which the company’s technical team expects could get bigger with further drilling.
Using innovational methods to combat the elements Succeeding in such a difficult environment may require some thinking outside of the box, which is why Bebek says Auryn gives their geologists freedom to try unconventional and cutting-edge techniques. They’ve also identified a number of ways to cut costs. “We reduced drilling costs by bringing in a rotary air blast drill rig, which drills twice the pace of a core rig,” says Bebek. “We also used drones to assist in mapping the entire belt and are open to the new applications being developed for uncovering hidden deposits.”
If it was easy it would have already been found
Committee Bay and Gibson MacQuoid are Auryn’s projects in Nunavut. They consist of over 400 kilometres of prospective greenstone belts with numerous high-grade gold occurrences.
36 Mining North of 60 | 2019
Having worked in the industry for over 19 years, Bebek believes the future of exploration will rely on either challenging geopolitical areas or areas burdened with rock cover. He thinks Nunavut, in particular, is one of the most under-explored areas in Canada for high-grade gold mines, but he and the Auryn team are determined to change that. “After four years of extensive exploration in Nunavut we understand how to target these big, underlying systems, and we feel we are very close to finding one.” n
Auryn's technical team and seven-project portfolio approach are why the company has one of the single highest investments from a major gold company into a junior, with Goldcorp investing approximately $40 million to date to maintain its 12.4 per cent ownership.
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For more information, please visit: www.aurynresources.com or call 1-800-863-8655 2019 | Mining North of 60 37
TerraX Minerals is primed for the next major discovery in the shadow of two historic headframes in Canada TerraX Minerals is a gold exploration company focused on creating shareholder value through discovery. The 100 per cent owned Yellowknife City Gold Project is over 780 square kilometres of prospective Greenstone Belt surrounding the pastproducing Con and Giant mines within sight of the Yellowknife skyline. These two mines produced 14.2 M oz. of gold at an average grade of 16 g/t over a 60-year period. The technical team is led by executive chairman Joseph Campbell who discovered the Meliadine deposit in the Nunavut territory. This project was sold to Agnico Eagle for approximately $700 million in cash and shares in 2010. His 38 years of global experience in resource discovery and expansion bring a skillset and team perfectly matched with the TerraX land package. TerraX Minerals is currently focused on expanding its inventory of gold ounces
in the Northbelt area of the property. The team continues to define the main structure of the Con/Giant trend and explores the belief that it continues north and south through the property with increasing confidence. “There is considerable high-grade gold endowment within several of our identified targets. The goal at YCG is to find the source of the high-grade on surface which we believe trends from the nearby Con and Giant mines, and exists within other targets in the district,” said David Suda president and CEO, in a news release from October 26, 2018. “The work we did this summer [has given] us considerable resolution in our targeting and will be summarized this fall prior to 2019 exploration plans.” The combination of a district-scale land
package, exciting results from surface work, and past drill programs yield welldefined targets for 2019 with high potential to add ounces. Proximity to Yellowknife with its wealth of infrastructure and rich mining history positions the team to discover a multi-million-ounce gold district at lower thresholds than other northern projects. TerraX is truly a unique value proposition for individual shareholders and major gold-producing companies alike. n
Delineation and expansion of Giant/Con Mine system onto TerraX properties
TerraX has superior infrastructure next to the mining friendly city of Yellowknife.
Geology map of TerraX properties along the Yellowknife Greenstone belt.
38 Mining North of 60 | 2019
Yellowknife City Gold Project In control of a major Canadian Gold District • 780 sq.km. district land package 100% owned. • Superior infrastructure with year-round drill access. • Encompasses two of Canada’s highest grade producing gold deposits – Con and Giant Mines. • Technical team with proven record of success.
TerraX Minerals Inc. 1605 - 777 Dunsmuir Street Vancouver, BC V7Y 1K4
K2 Gold completes 2018 exploration at Wels;
Discovers subcrop Gold (4.07 g/t Au) at the previously unexplored Pekoe Target, and additional high-grade float in the Saddle area (43 g/t Au) and Chai Target (4.38g/t Au). K2 Gold Corporation (KTO:TSX-V) recently completed its 2018 exploration at the Wels Property located in west-central Yukon territory in the traditional territory of White River First Nation (WFRN). K2â€™s Wels discovery is an orogenic-style deposit and is located in southwest Yukon, close to infrastructure. Limited drilling to date (e.g. 28.5-metres at 2.37 g/t Au, 12.5-metres at 5.08g/t) has demonstrated ore grade intersections over 150-metre strike and to 120-metre depth, and remains open in all directions. Only five per cent of the total area of interest (four kilometres by two kilometres) has been explored to date. The geochemical footprint of gold crosses all rock types (similar to the gold located at Goldcorpâ€™s Coffee deposit), and remains largely unexplored. Gold has been identified on surface in granites at Saddle (up to 43 g/t Au), gabbros at Pekoe and Gunpowder (up to 28.2 g/t Au), and quartzites at Chai (up to 4.38 g/t Au). Geophysics and Lidar conducted in the early summer at Wels has helped to refine the existing magnetic airborne data signal significantly for broad anomalies and develop finer nuances over some of the interpreted structures. In addition, there is a rela-
40 Mining North of 60 | 2019
K2 Gold Corporation recently completed its 2018 exploration at the Wels Property in the Yukon. tively strong agreement between the low-to-moderate strength magnetics and the distribution of anomalous gold in soils. New regional structures were identified at the Wels property with the help of ground magnetics, VLF, and Lidar data collected earlier in the summer. Ground truthing and prospecting of the new structures, together with coincident soil anomalies, returned gold (4.07 g/t Au) in altered rock quartz-carbonate gabbroic subcrop at the previously unexplored Pekoe soil target. Pekoe is located 1.6-kilometres northwest of the Saddle zone where previous drilling and
exploration has been concentrated. Prospecting at the Saddle zone region located further gold-bearing quartz vein float (43 g/t Au) 25-metres north and upslope from the main known Saddle zone, perhaps representing a new parallel mineralized zone. In addition, limited prospecting at the Chai target 1.2-kilometres south of Saddle located further gold in quartzite float (4.38 g/t). As a result of the exploration undertaken in 2018, the footprint of gold mineralization at Wels (combined soils, rock and float samples) has now been extended to the north and is currently approximately four-kilometres north-south by two kilometres west-east. Limited drilling at Saddle (1,642-metres over two campaigns 2015/2017) has identified a 10-to-30-metre-wide gold zone, which is open in all directions. Apart from the Saddle target, none of the other targets at the Wels property, including Gunpowder, Chai, or Pekoe have ever been trenched or drilled, but are scheduled for further investigation in 2019. The Wels mineralization has geological analogies to an orogenic-style deposit. The most well known of this type locally is Goldcorpâ€™s Coffee deposit located 60-kilometres northeast of Wels (2.16M ounces proven and probable reserves and 2.93M ounces of combined measured, indicated, and inferred resources, as reported by Goldcorpâ€™s 2018 investor presentation). For reference, the footprint of the main mineralized zone at Coffee (the Supremo to Double-Double area) is five-kilometres by three-kilometres. The 2018 exploration results enable the development of numerous, untested structural targets that are well supported by coincident geochemical and geophysical evidence. It is anticipated that these new targets will be tested with prospecting, trenching, and/or drilling in the 2019 field season. n
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A Discovery Group Company K2 is a junior resource company focused on exploring for gold in the Yukon. The company plans to grow by acquiring further mineral properties in North America and by leveraging the chairmanâ€™s past successes (Kaminak being the most recent), and undertaking smart, cost-effective exploration. It will also continue to utilize its strength and good reputation in financial markets to ensure adequate financial resources for the projects it acquires or discovers. We believe in early community engagement from the onset, to establish a solid foundation upon which strong working relationships and partnerships can be built.
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k2gold.com 2019 | Mining North of 60
Strengthening the next generation of the Canadian mining workforce By Alex Parsons
Western University interns building a portable greenhouse.
Andrea Seager, green jobs intern and Lance Nagwan, environmental technician at Skeena’s Snip mine.
One of the most pressing challenges facing the Canadian mining industry is the increasing number of retiring workers. According to the Mining Industry Human Resources Council (MiHR) 2019 Canadian Mining Labour Market Outlook, the number of workers aged 15 to 24 has dwindled since 2006, while the number of workers aged 55 years and over has steadily rose. This challenge has fueled fears that the future supply of labour may not meet forecasted demands. But MiHR has a solution. In 2018 and 2017 respectively, MiHR announced the Gearing Up and Green Jobs wage subsidy programs. Gearing Up provides funding up to $7,000 to employers who create new work-integrated learning (WIL) opportunities for post-secondary students, such as co-ops, internships, and applied projects. The opportunities must be related to science, technology, engineering or math (STEM), or business programs, and can be any length. Green
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Jobs provides opportunities for graduates aged 30 years and younger, providing employers funding up to 50 per cent of each intern’s wage, to a maximum of $12,000. Placements for qualified graduates must be a minimum of six months in duration and have a focus on clean technology and innovation. Both programs have the same qualifications for hiring organizations – they must be Canadian-owned or a Canadian subsidiary, small, medium or large companies, post-secondary institutions or non-profits. “Our wage subsidy programs are helping change the way post-secondary students perceive, pursue, and acquire the skills needed for in-demand mining careers – and providing graduates with onthe-job experience,” said MiHR’s executive director, Ryan Montpellier. “Both the Gearing Up and Green Jobs programs have already had a positive impact on students’ and graduates’ careers, and we’re looking forward to see what effect they’ll have on the industry at large.” The direct effects of Gearing Up are observable in a video produced by staff and students at Western University (UWO) who took part in a summer co-op that received wage subsidy funding. It highlights the experiences of the participants and their research projects, each designed to help solve mining industry challenges. These projects ranged from gold-processing optimization to the creation of portable greenhouses. Dr. Neil Banerjee, an associate professor of earth science at UWO, spearheaded this initiative in collaboration with the MiHR. He said it was a great experience, and that it exposed many students to the possibilities of a career in mining for the first time. “When you’re outside of your comfort zone, great things can happen,” said Dr.
“When you’re outside of your comfort zone, great things can happen,” said Dr. Banerjee. Banerjee. “This is a great opportunity for students to get work experience very early on in their academic career that will teach them skills that will be transferable regardless of what path their career may take.” The Green Jobs program has also seen its share of success. Justin Himmelright is the vice-president of sustainability at Skeena Resources, an exploration company based in Vancouver. He helped supervise their interns this past summer. “The availability of a qualified workforce is a challenge for our industry, but Green Jobs provided a two-for-one solution – enhancing recruitment and training for professionals involved in environmental management at our job sites,” Himmelright said. “The program has worked well for Skeena Resources.” “Our wage subsidy programs are excellent resources for mining companies
Northwest Territories and Nunavut Association of Professional Engineers & Geoscientists
looking to diversify their talent pool and get fresh perspectives on industry challenges,” said Ryan Montpellier. “There’s still plenty of wage subsidies available, and so much these opportunities can offer to an industry in need.” You can learn more about these wage subsidies and apply today at MiHR.ca. n The Mining Industry Human Resources Council (MiHR) is Canada’s knowledge
NAPEG WWW.NAPEG.NT.CA If you are a Geoscientist or Engineer working North of 60°, don’t forget to register as a Professional. If you are already registered with a Canadian Professional Association, it is easy to add a northern registration.
centre for mining labour market intelligence. An independent, non-profit organization, MiHR drives collaboration among mining and exploration companies, organized labour, contractors, educational institutions, industry associations, and Indigenous groups to identify opportunities and address the human resource and labour market challenges facing the Canadian minerals and metals sector.
NAPEG...Integrity and Excellence 2019 | Mining North of 60 43
Lessons from the North –
By Adam Chamberlain, partner and member of Gowling WLG’s Canada North Practice Group The size and abundance of the mosquitoes was one of the differences; another, the length of the day. However, the most obvious differences weren’t the only ones. Several summers ago, I had the unusual experience of observing environmental assessment (EA) hearings in Nunavut and Ontario. One was an appeal of a proposed wind farm near the east end of Lake Erie, and the other was an EA hearing about a mine to be located on Baffin Island. As an environmental lawyer practising in Ontario and Nunavut, I observed both with interest. There were no mosquitoes in the community centre in Fisherville, Ontario, where the proposed wind farm was being discussed; weeks later in the Legion Cadet Hall in Iqaluit they were numerous, large and relatively slow moving. During slower parts of the hearing, I was not only aware of them slowly drifting around the hall — illuminated by the sun streaming through small windows — but also that I was only one of many watching them. Less obvious were other differences in the tenor and formality of the hearings and the reception given to the proposed projects by the locals. Superficially, the hearings appeared alike. Both were held in small community halls. In each, witnesses relied on and referred to various studies on the potential impacts of the projects and how they might be managed. Lawyers worked with witnesses to present evidence and, where there was disagreement between the parties, asked questions and made legal arguments. EA hearings in Nunavut and Ontario are unlike court proceedings in that their rules are less formal and provide for input from community members and stakeholders. In Ontario, the process allows for interested parties to make presentations during the hearing and occasionally ask questions of witnesses and experts. Nunavut’s process, like that of other Arctic jurisdictions, goes further than this in a way that infuses the process with traditional knowledge (Inuit Qaujimajatuqangit or “I.Q.”). Indigenous participation of this nature is a unique aspect of EA in the North, where
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many tribunal members are Inuit. Perhaps even more notable to the uninitiated is the manner that input is sought from community members. At the hearing in Iqaluit, community members had come from several hamlets that would be relatively close (by Nunavut standards) to the proposed mine. They sat in the Legion Hall and listened patiently as the lawyers, witnesses, and tribunal members spoke of the project. However, their presence was made remarkable by a practice not seen in southern hearings. At essentially any point in the proceeding, community members could raise a hand and the hearing would stop to allow them to speak. The chair of the tribunal would then call on the Elder or community member and he or she would have the floor, seemingly for as long as needed. The issues raised in this manner often related to I.Q., historic hunting practices in the area or concerns about the potential project effects. While the manner in which this information might be used (or not) by the tribunal was not clear, it was powerful to hear these views delivered so directly. Another North/South contrast was more striking still. Many Inuit voices had a uniquely pragmatic perspective about the need for economic development in the North. While they live in an environment that was, until very recently, untouched by southern development activity, many called for responsible resource development to bring needed jobs to their communities. With southern society now in their midst (and showing no signs of leaving), there seems to be an appreciation of the need to participate in the modern economy while preserving I.Q. and the environment. All this will have to occur while facing some of the most dramatic impacts of climate change on the planet. The Ontario hearing about a proposed wind farm provided an example of the significant differences between the Ontario and Nunavut regulatory systems. The nature and surroundings of the proposed development were also very different as the proposed turbines would be built within farms (themselves the result of centuries of human activity) and surrounded by (among other things) natural gas wells, coal-powered power generation plants, electric transmission lines, highways and cities of various sizes. The relatively minor incremental impacts of the proposal (compared to any development in Nunavut) couldn’t have been more plain. The summer eventually passed and with it the mosquitoes, late sunsets, and long twilights. As the dark returned to both parts of the country to differing degrees, I was left with an abiding respect for northerners and admiration for their pragmatism. I also was very much struck by the differences in how we in the South respond to development in our already altered environment. n
Sealift supporting mining projects in the Arctic By Waguih Rayes
In today’s Arctic Sealift, Desgagnés’ modern and well-adapted cargo ships continue to deliver supplies and materials in the Arctic. Photos by M.A. Lapointe.
In addition to its standing as a major Canadian ship-owner/operator, Desgagnés is renowned for its role as the major sealift operator in the Eastern and Central Canadian Arctic.
Together, Desgagnés and its venture Nunavut Sealink and Supply Inc. (NSSI) are by far considered the most active carrier in the Arctic, specifically in terms of fleet capacity and tonnage.
46 Mining North of 60 | 2019
Arctic Sealift, which is a short label for the annual ship resupply operations to northern communities and to project sites in the Canadian Arctic, remains to the great majority of Canadians an unknown venture. To say the least, it is a unique enterprise, with exceptional operational processes that many of us wouldn’t believe could still exist at the dawn of the 21st century. In fact, in today’s Arctic Sealift, Desgagnés’ modern and well-adapted cargo ships continue to deliver supplies and materials in the Arctic, but still discharge at the same maritime infrastructure that Sir Martin Frobisher had used in the middle of the 16th century: Barren Beaches! In the eastern and central Canadian Arctic, tens of remote Inuit communities and a few mining sites rely on the Sealift for the transportation and delivery of various types of commodities and supplies, vehicles, and equipment of all types. No roads link these communities and sites with the southern parts of our great country, or even to one another, making these destinations not only very remote, but also isolated. In addition to its standing as a major Canadian ship-owner/operator, Desgagnés is renowned for its role as the major
sealift operator in the Eastern and Central Canadian Arctic, where many of its innovative operational procedures have been adopted as a standard by other carriers. Together, Desgagnés and its venture Nunavut Sealink and Supply Inc. (NSSI) are by far considered the most active carrier in the Arctic, specifically in terms of fleet capacity and tonnage. They are asserted as the carrier of choice for the Nunavut territorial government, as much as for many local institutions, businesses, and individuals; and notably, the mining sector. For the mining sites located in the Canadian Arctic, remoteness and isolation result in a relatively high construction and operating cost, and it is therefore important to rely on the carrier with the most adequate assets, solid experience, and a proven expertise in order to achieve costefficiency in transportation as much as a timely delivery. Major mining projects, including the gold mines implemented by Agnico Eagle Mines (AEM) in the Eastern Canadian Arctic, with whom NSSI & Desgagnés are engaged with a long-term commitment, and the Mary River Mine belonging to Baffinland Iron Mines (BIM), which we have been servicing each year since 2013, have caused for a rapid evolution in terms
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of volumes of dry cargo and fuel supplies. More importantly, in the recent years, the major upsurges in mining activities have necessitated a rapid adaptation by Desgagnés to dimensional and heavy cargoes. These include specialized heavy equipment, off-road vehicles, and dimensional prefabricated structures. Mining cargo has also caused for Sealift standards to rapidly evolve and, in turn, required major upgrades to Desgagnés’ fleet of ice-class cargo ships. As well, it necessitated an acceleration in Desgagnés’ fleet renewal programs, so to include modern vessels of much larger capacity, equipped with heavy lift capabilities, and state-of-the-art navigation and cargo handling equipment. Further, Desgagnés has proceeded with numerous additions of new auxiliary vessels of higher capability and better performance, such as tugs and barges for cargo transfer, and a variety of related loading and discharge equipment. Among the innovations that were implemented by Desgagnés for servicing mining cargo were the fabrication and the deployment of platforms for lifting and stowing of massive pre-assembled off-road vehicles. In normal dock-todock shipping operations, such vehicles are shipped and delivered unassembled. Therefore, manufacturers’ specifications for the lifting lugs do not foresee the handling of a fully assembled unit. However, in the case of mining sites located in the Arctic, the delivery of a fully assembled unit is of a major importance and mostly inevitable, since the mines do not dispose of facilities and resources to undertake the assembling of such vehicles, particularly at the very early construction stages of the mining site. Furthermore, due to the nature of mining cargo, being mostly heavy and often dimensional, the deployment of larger transfer barges became a necessity to generally improve on operational safety, and to achieve a better stability during the transfer of cargo from ship at anchor to the shore. Hence, the importance of deploying ships with heavy-lift capabilities. Last but not least, Desgagnés has also revolutionized its operational procedures in the recent years and brought them up to new standards, so to keep maintaining operational safety and efficiency at
all time and to fully meet the safety standards in environmental protection and stewardship. Finally, through its partnership with NSSI, which mainly includes Nunavut birthright corporations, Desgagnés brings an added value to each and every contract of carriage concluded with a mining company in Nunavut. Therefore, considering the importance of the Inuit Impact and Benefit Agreements (IIBA), which are valued by Nunavut Inuit Associations as sinequanone for the implementation of any mining project in Nunavut, Desgagnés, with its Inuit partners, become the interesting foreseeable partners to team-up with for the full success of mining cargo projects, as much as their cost effectiveness. n
Through its partnership with NSSI, which mainly includes Nunavut birthright corporations, Desgagnés brings an added value to each and every contract of carriage concluded with a mining company in Nunavut.
Waguih Rayes is general manager of Desgagnés Transarctik Inc. and managing partner of Nunavut Sealink and Supply Inc. (NSSI), the most active sealift carrier in Nunavut.
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The use of QEMSCAN for better process decisions By Lucy Hunt, Jane Danoczi, Lucia Xia and Steven Creighton
Saskatchewan Research Council Over the last 70 years, the Saskatchewan Research Council’s Geoanalytical Laboratories and Advanced Microanalysis Centre™ (AMC) have become internationally recognized for their in-depth, secure, and reliable analysis of minerals, rock, and core samples. Mineralogical analyses are a valuable tool not only for geologists to better understand an orebody, but also for metallurgical and process engineers to make better and more informed decisions about mineral processing plants. Design engineers, process engineers, and operators can benefit from the information that mineralogical analyses provide, and Quantitative Evaluation of Minerals by SCANning (QEMSCAN) is becoming a popular choice for these analyses.
QEMSCAN can provide mineralogical information that can be key to making decisions to maximize recoveries and minimize costs. Examples for applications of QEMSCAN information include facilitating technology and equipment selection, optimizing hydrometallurgical operating parameters such as reagent concentrations, liberation sizes and optimum capacities for equipment and pipelines. QEMSCAN data can also significantly boost the quality and depth of diagnostic information that is provided from other metallurgical tests, leading to improved – and quicker – decisions by industry.
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allurgical processes. They are constantly striving to improve current methods and develop leading-edge analyses to generate the most accurate and reliable data. Rigorous quality checks are performed throughout the collection process, using internal and external standards, as well as built-in redundancy using different instrumentation and methods. SRC prides itself on being an industry leader in the fields of data collection, evaluation, and interpretation in terms of accuracy and usefulness.
Applications for process decisions The QEMSCAN is used to study ores before and after various treatments such as crushing, grinding, and hydrometallurgical treatments, such as flotation, dense media separation, gravity concentration and leaching, that provides the following information: • Identification and quantification of minerals contained in ore, not just elements; • Modal mineralogy as mass or volume per cent of ore and gangue minerals • Grain size distribution of the minerals in particles; • Particle size distribution and shape of the particles and the mineral grains therein mineral liberation – the extent to which the target minerals are encapsulated within the host mineral and extent of exposure of surface materials; • Mineral associations – the number of shared edges between the target mineral and other minerals within a particle; Elemental deportment – which minerals host desirable or deleterious elements. The photo in this article is a visual representation of the grain size distribution of a false colour image of a potash sample collected by QEMSCAN. The distribution of the various minerals, the grain shape and associations in the different size fractions can all be observed.
Understanding the mineralogy and physical characteristics of an ore, as well as the target-mineral associations and liberation, facilitates design and equipment selection in mineral processing plants. When the liberation mechanisms are understood, design criteria, liberation
size and applicability of technology, such as ore sorting, can be more easily understood before embarking on large-scale test. Having accurate data available results in smart design rather than overdesigning, thereby reducing costs, as well as ensuring the correct equipment and tech-
nology for specific ores. SRC has applied QEMSCAN-based automated mineralogy tests to increase understanding of a variety of ore types, including kimberlite, potash, gold-bearing ore, base-metals, and uranium.n
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LiDAR – Don’t let elevation bring you down By Andrew McIntosh
These images of the same area show the dramatic difference in what can be seen in an orthophoto, above, and a LiDAR bare-earth image, below. Publicly accessible LiDAR technology has succeeded stereo airphoto as the favoured large-area mapping technology for projects where accurate elevation data is required for design and other planning purposes. Where mapping from airphoto produces a point on the ground every few metres at best, and with a high degree of error in forested areas, airborne LiDAR data can be collected at a density of multiple points per square metre, and with relative accuracies often in the range of 10 to 15 centimetres. As modern LiDAR units can collect more than a million points per second, the distance between points on the ground rarely exceeds a few metres,
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In this cross-section image of a LiDAR point, cloud in a forested area on the ground can be seen as a layer of coloured points. even under heavy forest cover. Using airphoto, if you can’t see the ground, you can’t map it – and errors are often in the range of half the average tree height. Why does accuracy matter? Put simply, the use of data with higher elevation error may result in the need for a bigger budget. In projects where earthworks can comprise a significant portion of the budget, error in the elevation data used to model the ground surface needs to be accounted for in that budget. On a forested porphyry copper-gold property in British Columbia, compared to accurately surveyed drillholes and older topographic data derived from airphoto, it was found that LiDAR data reduced the mean topographic error over the deposit from approximately ±7 metres to about ±17 centimetres. Translated to volume figures, the excavation budget needs to account for an error of ±1,700 m³/hectare rather than ±70,000 m³/ hectare. This likely translates to millions of dollars, but the LiDAR project was completed for less than $30,000. Suspect drillhole elevation data is another common and potentially expensive problem that LiDAR elevation data can solve at the exploration stage. Most geologists are aware of the problems that can occur in geological interpretation with high-elevation error in drillholes. Think of the classic three-point problem, where intervals in three drillholes are used to estimate the orientation of a geological feature. The greater
the vertical error in the drillholes, the greater the error in the estimated orientation – and the result might be a badly planned drillhole. Most geologists are also aware of the concept of map datums, such as NAD83 and NAD27, and that, irrespective of survey accuracy, the location of something isn’t known until you know which datum applies. However, in the 16 years I’ve been teaching GIS to the mining industry, I’ve learnt many are unaware this also applies to elevation data. You don’t know where something is vertically until you know which vertical datum applies. In Vancouver, B.C., a CGVD2013 geoid elevation value differs from a WGS84 reference ellipsoid value by about 18.9 metres, yet both values are considered correct with respect to their applicable datums. Imagine using a drillhole database where elevation values had not been set to a common datum – drillhole planning, geological interpretations, and resource calculations may all be subject to significant positional errors. In some situations, particularly where underground drillholes are used, the solution may lie in resurveying drillholes. For
surface drillholes, if the ground has not significantly changed between the time of drilling and the LiDAR survey, elevation values may be derived from a surface generated from LiDAR data. A statistical analysis of the difference between LiDAR and original values may be performed, possi-
bly identifying drillholes with problems. It may also be applicable to simply replace original values with values derived from LiDAR data, in which case the vertical accuracy of the drillholes would be set to that of the surface generated from LiDAR data. n
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Poison Graphics – NWT sign manufacturer Originating in 1996 as an automotive painting and body repair shop, Poison Painting has changed a lot over the past 22 years. Originally diversifying the business to meet an identified need for professional signage design and manufacture in the north, over time Poison Graphics has dropped the autobody work and has become the largest manufacturer of custom signage and graphics products in the NWT. Catering to a wide range of clients, from local businesses to government departments, non-profits, and the mining and gas sectors, the Poison Graphics shop in Hay River’s Old Town is a busy place. On any given day you are likely to encounter custom sign blanks or decals being cut to shape on the CNC, while one side of the shop has a vehicle is getting wrapped and on the other side, printed stickers are kiss cut on the specialist printers while staff mount a rush order of traffic signs. “It’s really interesting to have a job where you make things that are used all over the north,” says Travis Dobbs, production staff. “School banners and produce labels, to window graphics and huge highway signs. I get to say ‘I made that!’. It’s
56 Mining North of 60 | 2019
CNC – the precision cutter that can cut through pretty much all materials, including plastic, aluminum, wood, vinyl, fabrics by using a vacuum to hold down the material and follow a pre-programmed route. cool to see the whole process from design to shipping, and it’s really cool that we do that here in Hay River.” Behind this productivity are two local graphic designers and a trained team of production staff/installers/CNC operators. Poison also supports work-experience students and returning university students filling seasonal positions. Manager Derek Mundy began his own career in the industry with an after-school job at Poison Painting at age 13, so his passion for investing in his staff is perhaps not surprising.
“Our goal is to lead the sign industry in the north, and we’re investing heavily in our staff and our equipment to achieve that. It is important to us to keep almost all of our design, production, and install in-house,” says Mundy. “By doing so, we are in control to increase the quality of our products, reduce our lead times and offer the most competitive pricing achievable. Supporting local matters to us a lot. It’s important to support northern business and northern industry. However, we want our clients to come to us because we are the better choice, not the closest choice.” n
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The Inuit First approach
Nuqsana Inc. is a 100 per cent Inuit-owned company (pursuant to Article 24 of the Nunavut Land Claims Agreement), based in Rankin Inlet. It has both NTI and NNI registration certificates. The company specializes in joint ventures with companies who share its vision of “Inuit First”. Nuqsana has historical and deep roots in Nunavut. As owner and president of Nuqsana, Harry Towtongie of Rankin Inlet is well known in the territory. As a father and grandfather, he has strong family values. Towtongie has been a business owner and Inuit leader for decades and he is well known for his honesty and professional business dealings. Additionally, he is well known for his successful training, employing, and retaining Inuit workers. Most of Towtongie’s employees have been with him for years. Towtongie’s philosophy of “Inuit First” is the founding principle of Nuqsana. Quite simply, he believes that employing Inuit
is not only the right thing to do; it is also the best thing to do from a business standpoint. Towtongie recognized that there was a high turnover of Inuit workers in the workforce, nowhere more obvious than the mining industry. Rather than just talk about it, he has done something about it. He examined the underlying reasons for this unusual and high turnover and felt it was not in keeping with traditional IQ. Towtongie believes that when you choose the right person, train and prepare them properly, and give them a safe and rewarding workplace, you will have a dedicated employee for many years. Nuqsana has found that this simple, yet effective, practice benefits employees and employers alike in having a contented and dedicated worker who is committed to their employer. n
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North of 60 magazine highlights mining activity in Northern Canada. This issue features stories on Goldcorp's Coffee Project, ATAC's gold pr...