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Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5 President DAVID LANGSTAFF david@delcommunications.com Publisher JASON STEFANIK jason@delcommunications.com Managing Editor CARLY PETERS carlypeters@mts.net Advertising Account Managers ROSS JAMES DAYNA OULION Production services provided by: S.G. BENNETT MARKETING SERVICES www.sgbennett.com Art Director / Design KATHY CABLE Advertising Art DERYN BOTHE DANA JENSEN JULIE WEAVER ©Copyright 2011. Northern Prospector. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. The Manitoba-Saskatchewan Prospectors and Devel opers Association, as a body of members, is not responsible for statements made or the opinions offered in the publication. While every effort has been made to ensure the accuracy of the information contained, and the reliability of the source, neither the publisher nor the association in any way guarantees nor warrants the information, and are not responsible for errors, omissions or forward-looking statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher or the association, or the irrespective directors, officers or employees. Articles and advertisements in this publication are not solicitations to buy, hold or sell specific securities; they are for information purposes only. Investors should be aware that risk is associated with any security, strategy or investment, and are advised to seek the counsel of a competent investment advisor before making any investment, or utilizing any information contained in this publication. Subscription, advertising and circulation can be obtained from the publisher. Publications mail agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, MB R3L 0G5 Email: david@delcommunications.com PRINTED IN CANADA 11/2011

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President’s Message — Steve Masson Manitoba 2011 Exploration and Development Highlights Saskatchewan Exploration and Development Highlights 2011 Saskatchewan Mining Association Message Leaving no Stone Unturned — Mike Muzylowski Profile — A Tribute to Fred Heidman Snow Lake Special: Gold Country’s Recreational Paradise Snow Lake Special: Alexis Minerals Snow Lake Special: BacTech Environmental Corp. Hudbay Mineral Inc. Realize the Potential — Mega Precious Metals Inc. For Years to Come — Vale’s Three Keys to Success in Manitoba Full Steam Ahead — Victory Nickel Inc.’s Minago Nickel Mine Project New Beginnings — Carlisle Goldfields Limited Room to Grow — Potashcorp Many Mines — St. Eugene Mining Corporation Limited Copper Reef — A Well Balanced Portfolio of Gold and Base Metal Properties New Discoveries — Wildcat Exploration Green Gold — Golder Associates Flying High — Transwest Air An Interview with Abitibi Geophysics Inc. The Working Bank Keeping You Covered — Discovery Mining Services Ltd. 3D-SGH New to You — Veyance Technologies Inc. Build Up — Norseman Structures Excavation Nation — CanDig Have you Covered — BRITESPAN Building Systems Know your Risks Breathe Easy Building Bridges — Rapid-Span Colour of Safety Give Me Shelter — Horizon Structures Know the Law — Matters of Note that Affect Saskatchewan’s Mining Industry On the Level — Pajari Instruments Ltd. Have it in the Box — Tigerdale Enterprises Ltd. Cover Up — G & B Portable Fabric Buildings Ltd. The Year in Argo Reliability and Economy — DSG Power Systems Home Base — March Consulting Associates Inc. Building a Bond — Future Buildings Good to Hear — Cattron Good Science — SRC Drilling Gem — Fordia Supplying the North — RDH Mining Equipment Expanding Services — Toromont CAT Fly your Way — Good Spirit Air Service Straight Talk — Caithness Communications Group Quantum Minerals Index to Advertisers Northern Prospector 2011-2012

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PRESIDENT’S MESSAGE

Will Manitoba have new mining camps as old camps play out? Stephen L. Masson, M.Sc., P.Geo. President of the Manitoba-Saskatchewan Prospectors and Developers Association This has been a year of ups and downs in the market; however, exploration has weathered the storms so far. especially with the skyrocketing gold prices offsetting the moderate declines in base metals. Claim staking is up in Saskatchewan and significantly up in Manitoba. Inspite of this market downturn, where share prices for many junior stocks have plummeted, many investors who have sold their shares are cashed up creating potential investment dollars. Many of these dollars are seeking flow through funds to shelter that cash from the tax man. This has permitted most junior explorationists even in this down market to continue their exploration programs. The flow-through funds are continuing to fund selective high quality exploration projects at bargain basement stock prices. However in these turbulent markets most investors who do not need a tax shelter are hanging onto to their cash in a wait and see atmosphere. The result is juniors requiring start up hard money to fund a new operation are finding it difficult to raise the funds needed to place their advanced projects into operation. Many that do find the funds are doing it at prices that result in significant dilution. Even though metals in general remain high and gold very high; labour and building costs are also high. In Manitoba, base metal exploration continues with success as both Reed Lake (HBM & VMS) and Lalor (HBM) in the Reed Lake –Snow Lake Camp progress forward towards development and mining. This has revitalized Snow Lake and will offer upon production a significant feed source to Hudbay Minerals’ Operations in Flin Flon. In addition to Hudson Bay and VMS Exploration; Rockcliff Resources and to a lesser extent, Callinan and Copper Reef continue significant base metal exploration in the Snow Lake area. Halo Resources dominates the Sherridon Camp where they have outlined significant resources of copper and zinc from 5 deposits which they are moving forward as potential feed sources for Flin Flon. In the main Flin Flon Camp basemetal exploration is dominated by Hudson Bay, Copper Reef (Smelter Project)and Callinan (Pine Bay Project). Quantum, a newcomer, 6

2011-2012 Northern Prospector

holds a large land position south of Lake Athapapuskow between Highway 10 and the Saskatchewan border. In the Hanson Lake Camp in Saskatchewan, Foran at Hanson Lake and Exploration Syndicate at Suggi Lake carried out significant exploration this past year; with Foran increasing the total indicated and inferred resources of copper, zinc, silver and gold at McIlvenna Bay to over 22,000,000 tonnes. Foran has set up a camp at McIlvenna with the intention of continuing to advance the project. Copper Reef continued the drilling of it South Bay Zone just west of the old Hanson Lake Mine and north west of the McIlvenna deposit. Gold soaring over $1900 (US) an ounce this year has sparked an significant increase in the search for this precious metal throughout the belt with many looking to put old gold mines back into production. Alexis has worked hard to outline enough resources to restart the New Britannia Mine in Snow Lake, although capital start up funding has been difficult in this market. BacTech Environment plans on building North America’s first bioleach plant in Snow Lake in 2012 to treat the New Britania tailings. Copper Reef is looking at continued exploration on its North Star and Gold Rock deposits north of Reed Lake. Auriga, south of the Sherridon Camp is attempting to restart the Puffy Lake Mine and Copper Reef is looking to explore a new zone similar in mineralogy to Puffy at Kississing Lake. Calinex reported significant gold intersections from the Gossan Zone on its Gurney Mine Property where it carried out a strong exploration effort. At Tartan just north of Flin Flon, St.Eugene has been attempting to put the Tartan Lake Gold deposit in a position that they can restart the mine. Claude in a joint venture with St. Eugene has acquired a large land position in the Amisk Lake Area of Saskatchewan just west of Flin Flon where it is looking at a the development of the Laurel Lake Deposit. Copper Reef contines to work on the Alberts Lake Deposit. Rockcliff is pursuing gold in the Elbow Lake area in the area of the former Century Mine. In Lynn Lake, Corazon have confirmed a new high grade nickel-copper deposit in

step out drilling off the EL Mine extension in a 59 m intercept. This is exciting as the EL mine was one of the top 5 nickel mines in Canada and good news for Lynn Lake. Carlisle has announced 5.3 million tones of resource at the MacLellan Gold Property averaging approximately 3.85 grams of gold equivalent. Along the Thompson Trend Vale continues a strong exploration effort, along with Wild Cat, Rockcliff and HudBay Minerals. The Tower Zone held by Rockcliff is a bit of an anomaly being a Copper-Zinc VMS deposit along this Nickel trend. Saskatchewan is booming with a New Uranium discovery, Potash mines in the works, as well as rare earths , coal and gold projects going forward. Base metals has a strong push by Foran and HudBay. Saskatchewan is certainly open to exploration and continues to see record activity. The shear wealth created by mining in Saskatchewan has placed this province in an enviable position. The province has few issues with land use and permits, and has taken a reasonable approach so that Protected areas do not encroach on areas of high mineral potential. The only criticism of Saskatchewan is with all this great wealth that they are receiving from mining that they are not seeding by investing more into their Geological Survey Branch for field mapping and research. This will reap benefits down the road and keep Saskatchewan in the forefront. Mining generates wealth; investing into their Geological Survey will make it sustainable. More funds could also be directed to the Mines Branch, considering the amount of activity, so there is there is less of a backlog compared to adjacent provinces. This only seems prudent. Manitoba’s Geological Survey field budget for 2012 for its Geological Survey is $175,000 down 80% from 2002 levels. This is disturbing considering it basically eliminates almost all field programs and it is even more alarming considering that the mining Industry generates millions of dollars and high paying jobs for the province. Minerals bring in $57 million in taxes and fees and they spend 10.7 million on the department while Forestry, Parks and Conservation bring in 29 million (mainly forestry) and the Govern-


Being one of Canada’s largest companies is great. Being part of Canada’s strong, sustainable future is even greater. Today, Vale is growing our Canadian portfolio to include resources beyond nickel such as potash and copper. Over the next four years, we will invest $10 billion in our Canadian operations to advance our environmental performance, unlock new markets, develop leading technologies, increase efficiencies and strengthen our global competitiveness, which will greatly benefit the communities in which we operate.

Vale. There is no future without mining. And there can be no mining without caring about the future.


PRESIDENT’S MESSAGE ment spends 126.6 million on those departments. Parks generate no net revenue. It is only to the credit of Manitoba’s exploration companies that the dedication and money they continue to invest in Manitoba has generated both discoveries and the advancement of projects. In industry, a rule of thumb is when field programs fall below $750,000 it is hard to justify an office as most money is then just for paying wages. Is that the intention of the Manitoba Government to close the Survey Branch as the BC government did? It sure is moving in that direction. Failure to reinvest monies from mining back into the Geological Survey Branch’s field programs could have long terms effects for future expenditures by exploration companies. Mineral Exploration Incentive Grants are down despite the increased exploration such grants bring to the province. We ask only for balance. We just don’t see the reinvestment by the government. Manitoba has so far refused to reinstate the MELC (Mineral Exploration Liaison Committee) process or something similar back into the Park creating process, where science was used to create the suitability for parks to both protect spaces and species as well as mineral and other economic potential. This has been completely ignored in favour of a new, yet to be revealed process, by the Provincial Parks Branch. In this process, the Parks basically do consult Industry stakeholders giving them a few lines to state their objections but then ignore the mining input so those in the Parks Branch have their way and continue their fervent park cre-

ation unabated. Going forward whether the Parks Ministercan also wear the hat of Mines Minister is a question? There is a real lack of check and balance on Manitoba’s obsession with creating parks over economic wellbeing and sustainability especially in the north. Recently I received on the part of our association a public review papers pamphlets on renewal of Park Reserves for Potential Parks such as Goose Islands which were already rejected by MELC. The whole problem with Parks is that if they fail to get approval they just try again, only this time with the new process they can ignore industry and rural input. With a big budget for Parks the Geological Survey ends up spending most of their money on a rearguard action trying to justify that areas of high mineral potential should remain open for exploration. We are asking the Manitoba Government to return to a process similar to MELC for the sake of the Northern Economy and to abandoned this new approach where Parks get what they want regardless of economic potential as they did with Nueltin Lake. Most alarming is that here is a movement afoot to eliminate all mining in parks as they did with forestry. With the discovery of the rich Reed Lake Deposit new discoveries and intensive ongoing exploration in the high mineral potential Grass River Park, one can only come to the conclusion that the Park will need to be de-Parked. It should never have been a park in the first place. Eliminating Mining and therefore exploration in the Grass River and Paint Lake Parks is a dangerous and irresponsible idea that will only cre-

ate conflict and economic sabotage to our mining industry. A reasonable approach is preferred but with all the parks that have been created in the past 10 years, the high mineral potential Grass River Park must be removed from Park Status to make up for the other high mineral potential land Parks have removed from exploration. Lastly the east side of Manitoba with the exception of the Rice Lake Belt is presently a no go for permitting and exploration. Caught between the: Federal Government; Aboriginal communities and the Manitoba Government, mining exploration companies cannot get permits in a timely fashion to carry out exploration despite the huge mineral potential in the area. Exploration company raise flow through funds, which must be spent on exploration in a certain time frame. (period instead of comma) If permits are delayed over a long time, which is now the case, companies face significant economic penalties for not spending this money as promised to investors. Exploration has all but ceased in this area with no end in sight. In conclusion Manitoba obsessive Park creation Process, where by 20% of the land is now alienated from mining or any other benefit for rural northerners, is still growing unabated. This together with the lack of permitting on the east side has removed much of Manitoba’s areas of high mineral potential from grass roots exploration other than the established mining camps. This will have the potential effect of eliminating new mining camps in the future. This is not sustainable development as the old mining camps play out. ✖

We in our Association would like to recognize the passing of those in our industry: Conrad Ziehlke of Cranberry and brother of Dan Ziehlke, a prominent explorationist and prospector. Conrad was a long time member of our Association whose wisdom into our positions was very appreciated. We also like to honour George Moody of Cranberry Portage who was a prospector and explorationist and whose father had discovered the Copper Reef Deposit. Lastly we honour Fred Heidman, the last of the old time Mining Recorders of Manitoba who served us well, first as a claim inspector and as a mining recorder. An article of dedication on Fred can be found in this magazine on page 26.

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2011-2012 Northern Prospector


MANITOBA REVIEW

Manitoba 2011 Exploration and Development Highlights Base and precious metals by Chris Beaumont-Smith, Minerals Policy and Business Development; specialty/industrial minerals by Jim Bamburak, Manitoba Geological Survey, Manitoba Innovation, Energy and Mines Current as of September 2011 Base and precious metals by Chris Beaumont-Smith, Minerals Policy and Business Development; specialty/industrial minerals by Jim Bamburak, Manitoba Geological Survey, Manitoba Innovation, Energy and Mines Current as of September 2011 Manitoba’s mining industry has experienced a modest recovery from the global economic downturn that occurred in the latter half of 2008 and in 2009 and remains optimistic in the face of the current global economic uncertainty related to sovereign debt. Exploration and deposit appraisal expenditures totalled $84.6 million in 2010, a significant decrease from the 2008 peak of $152 million, but are projected to rebound strongly in 2011 to $115.7 million. BASE METALS Base-metal exploration and development highlights in 2011 reflect cautious optimism, resulting from exploration successes juxtaposed with the setback of Vale’s closure plans for the Thompson smelter and refinery by 2015. In addition, market volatility generated by sovereign debt issues have resulted in global economic

uncertainly and a softening in commodity prices. The drop in prices may translate into a tightening of mine financing, which may have a negative effect on a number of nearterm development projects in the province. Fortunately, Manitoba’s base-metal sector is benefitting from recent discoveries and is moving forward with a number of major development projects. HudBay Minerals Inc. maintained an aggressive exploration and development program in the Flin Flon–Snow Lake greenstone belt and continues to move forward on two development projects announced in 2010: the 777 North expansion project, which will provide additional feed to its Flin Flon concentrator and zinc plant and additional exploration opportunities. The Lalor deposit in Snow Lake, which will result in the construction of a 4,500 tonne per day underground mine. The development of the Lalor mine near Snow Lake is proceeding on schedule and on budget. In July, the company committed to construct a new 4,500 tonne per day concentrator bringing total development costs to $704 million. Initial mine production will start in 2012 via a production

ramp from the nearby Chisel North mine and full production is anticipated to begin in 2014 through shaft infrastructure currently in development. The Lalor deposit consists of three zones of stacked mineralization comprising the base metal, gold and copper-gold zones. The Indicated base-metal resource stands at 13.3 million tonnes grading 8.87 per cent zinc with an Inferred resource of 4.8 million tonnes grading 9.25 per cent zinc. The gold zone Inferred resource is 5.4 million tonnes grading 4.7 grams per tonne gold. HudBay anticipates additional gold resources will be delineated with further exploration to be conducted underground. Conceptual estimates indicate the potential for an additional 5.1 to 6.1 million tonnes grading between 4.3 and 5.1 grams per tonne for the gold zone and an additional 1.8 to 2.2 million tonnes grading 5.8 to 7.0 grams per tonne gold and 3.2 per cent to 4.0 per cent copper for the copper-gold zone. HudBay is anticipating an additional mine development project with their Reed Lake joint venture located south of Snow Lake. Successful joint-venture negotiations with partner VMS Ventures, Inc. to expand Northern Prospector 2011-2012

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MANITOBA REVIEW the scope of their partnership has led to significant project advancement. HudBay has initiated permitting to authorize initial mine development leading to the extraction of a bulk sample for metallurgical testing. The Reed Lake deposit contains a NI 43101–compliant Indicated resource estimate of 2.5 million tonnes grading 4.55 per cent copper. HudBay plans to start site preparation in November and expects to complete the extraction of a 10,000 tonne bulk sample in the fourth quarter of 2012. A production decision is expected early in 2013. The expanded joint venture also afforded HudBay the opportunity to conduct exploration drilling elsewhere on the property, which led to the discovery of additional copper mineralization. In July, HudBay announced the discovery of significant copper mineralization northeast of the Reed Lake deposit with a drill intercept of 7.18 metres of 7.44 per cent copper. Additional drilling to assess the discovery is ongoing. HudBay also partnered with Halo Resources Ltd. on the Lost Lake joint-venture project in the Sherridon area and continues to assess the feasibility of developing the deposit. HudBay has started pre-feasibility engineering, which is expected to be completed in 2011. CaNickel Mining Ltd. (previously Crowflight Minerals Inc.) returned to commercial production at their Bucko Lake Nickel Proj-

ect near Wabowden in the second quarter of 2011. The introduction of company-owned mine production and modifications to mine development and production methods has resulted in a significant increase in nickelore grade, which is having a positive effect on the economics of the mine. CaNickel has successfully increased the Proven and Probable reserves at Bucko to 3.71 million tonnes of 1.45 per cent nickel, an increase of 122 per cent in contained nickel from the 2007 feasibility study, extending the projected mine life to 10 years. The company is also having considerable exploration success on the nearby M11A deposit, which may provide additional life to the mining operation. Further optimism on the base-metal front was generated by the successful environmental licensing of Victory Nickel Inc.’s Minago nickel mine north of Grand Rapids. The granting of the Environment Act Licence authorizes Victory to construct and operate the Minago mine and represents the final regulatory hurdle for the project. The planned mine will produce 25 million pounds of nickel in concentrate and 1.15 million tonnes of by-product frac sand per year for 10 years. The company plans to start initial pre-stripping of the open-pit area in winter 2011-12 and the construction of the mine and supporting infrastructure will begin in the second quarter of

2012, provided the $600 million in project financing can be successfully secured. Victory continues to explore the Minago property and anticipates the completion of a resource estimate for the North Limb deposit located near the planed open pit. The North Limb deposit represents a potential economic resource that will add significantly to the project mine life. Rockcliff Resources Inc. maintains an aggressive exploration program on their Snow Lake area properties. Rockcliff completed their evaluation of the Rail deposit, southwest of Snow Lake, with the release of a NI 43-101–compliant Indicated resource of 822,000 tonnes grading 3.04 per cent copper for the deposit. Rockcliff continues to explore the property, targeting untested geophysical anomalies with the goal of further expanding the resource. Rockcliff also began a diamond-drill program at their Tower VMS property north of Grand Rapids. Initial results outlined multiple copper-gold VMS systems over a 700 m strike length and additional drilling is ongoing. The Tower property is a joint-venture with Pure Nickel Inc. and represents a copperzinc-rich VMS deposit in the Thompson Nickel Belt. Mustang Minerals Corp. continues work on the ongoing feasibility study of the Makwa deposit near Lac du Bonnet and exploration work at the nearby Mayville

Manitoba Mining and Minerals Convention November 17-19, 2011 ˜ˆVŽiÊUÊVœ««iÀÊUÊ∘VÊUÊ}œ`ÊUÊÌ>˜Ì>Õ“ÊUʏˆÌ…ˆÕ“ÊUÊViÈՓÊUÊ«>̈˜Õ“Ê}ÀœÕ«Ê“iÌ>ÃÊUÊÀ>ÀiÊi>À̅Êii“i˜ÌÃÊUÊ̈Ì>˜ˆÕ“ UÊÛ>˜>`ˆÕ“ÊUÊV…Àœ“ˆÌiÊUÊȏˆV>ÊUÊ«œÌ>ÅÊU >`ˆÕ“ÊUÊV…Àœ“ œ“ “ˆÌ ˆÌiÊ i UÊȏˆV>ÊUÊ«œ ÕÀ>˜ˆÕ“ÊUʘˆVŽiÊUÊVœ««iÀÊUÊ∘VÊUÊ}œ`ÊUÊÌ>˜Ì>Õ“ÊUʏˆÌ…ˆÕ“ÊUÊViÈՓÊUÊ Õ > Õ V i Vœ««i } «>̈˜Õ“Ê}ÀœÕ«Ê“iÌ>ÃÊUÊÀ>ÀiÊi>À̅Êii“i˜ÌÃÊÜÌ>˜ˆÕ“ÊUÊÛ>˜>`ˆÕ“ÊUÊV…Àœ“ˆÌi ՓÊ}Àœ œÕ« Õ« “iÌ>Ã Ã U À> À Ài À Êi>À̅ ˜ÌÃÊU ÜÌÌ>˜ >˜ˆÕ ˆÕ“ “ U Û> Û>˜> ˜ `ˆ `ˆÕ“ Փ “ UÊV…À iÊUÊÈ ÈˆˆˆV> È V> > U «œÌ œ >à > …ÊU ÕÀ>˜ˆÕ“ÊUʘˆVŽiÊU Vœ««iÀÊUÊ∘VÊUÊ}œ`ÊUÊÌ>˜Ì>Õ“ÊUʏˆÌ…ˆÕ“ÊUÊViÈՓÊUÊ«>̈˜Õ“Ê}ÀœÕ«Ê“iÌ>ÃÊUÊÀ>ÀiÊi>À̅Êii“i˜ÌÃÊUÊ̈Ì>˜ˆÕ“ÊUÊÛ>˜>`ˆÕ“ iÀÊUÊ∘ ˆ˜ ˜VÊUÊ}œ`ÊUÊÌ>˜Ì> VÊ >Õ Õ“ Փ UʏˆÌ… iÈՓ “ÊUÊ«>Ì >̈˜Õ“Ê}À }Àœ œÕ«Ê“ “iÌ>Ã “i iÊi i>À̅ i> ̅ ii“i˜ÌÃÊU ÌˆÌ ˆÌ>˜ Ì>˜ >˜ˆÕ ˜ˆÕ ˆÕ“Ê “ UÊÛ UÊV…Àœ œ“ˆÌi Ìi i UÊȏˆV>ÊUÊ«œÌ>ÅÊU Õ ÕÀÀ>˜ > ˆÕ ՓÊUʘˆVŽiÊUÊVœ««iÀÊUÊ∘VÊUÊ}œ`ÊUÊÌ>˜Ì>Õ“ÊUʏˆÌ…ˆÕ“ÊUÊViÈՓÊUÊ«>̈˜Õ“Ê}ÀœÕ« VŽi U Vœ««iÀÊUÊ∘VÊUÊ}œ œ` UÊÌ> “ UʏˆÌ…ˆÕ“ÊUÊViÈՓÊUÊ«> >Ì̈˜ ˆ Õ “iÌ>ÃÊUÊÀ>ÀiÊi>À̅Êii“i˜ÌÃÊUÊ̈Ì>˜ˆÕ“ÊUÊÛ>˜>`ˆÕ“ÊUÊV…Àœ“ˆÌiÊUÊȏˆV>ÊUÊ«œÌ>à à U À>ÀiÊi>À̅Êii“i˜ÌÃÊU ÌˆÌ ˆÌ>˜ > Û> >˜> ˜>`ˆÕ“ÊUÊV…Àœ“ˆÌiÊUÊÈ ˜>` ȈˆˆV ˆV V> >ÊU Å … U ÕÀ>˜ˆÕ“ÊUʘˆVŽiÊUÊVœ«« «i iÀÊUÊ∘VÊUÊ }œ`ÊUÊÌ>˜Ì>Õ“ÊUʏˆÌ…ˆÕ“ÊUÊViÈՓÊUÊ«>̈˜Õ“Ê}ÀœÕ«Ê“iÌ>ÃÊUÊÀ>ÀiÊi>À̅Êii“i˜ÌÃÊUÊ̈Ì>˜ˆÕ“ÊUÊÛ>˜>`ˆÕ“ÊUÊV…Àœ“ˆÌiÊ U Ì>˜Ì>Õ“ÊUʏˆÌ…ˆÕ“ÊUÊViÃˆÕ Õ“ Փ Փ }ÀœÕ« “iÌ>ÃÊUÊÀ>ÀiÊi> >ÀÀÌ̅ i˜ÌÃÊUÊ̈Ì>˜ˆÕ“ÊUÊÛ>˜>`ˆÕ“ “U UÊȏˆV> UÊ«œÌ>ÅÊU ÕÀ>˜ˆÕ“ÊUʘˆVŽ VŽ ŽiÊUÊVœ««iÀÊUÊ∘VÊUÊ}œ`ÊUÊÌ>˜Ì>Õ“ÊUʏˆÌ…ˆÕ“ÊUÊViÈՓÊUÊ«>̈˜Õ“Ê}ÀœÕ«Ê“iÌ>ÃÊUÊ «i iÀÊ UÊ∘VÊUÊ}œ`ÊUÊÌ>˜Ì>Õ“ “U “ UÊViÈՓÊUÊ«>̈˜Õ“Ê}Àœ œÕ« Õ« À>ÀiÊi>À̅Êii“i˜ÌÃÊUÊ̈Ì>˜ˆÕ“ÊUÊÛ>˜>`ˆÕ“ÊUÊV…Àœ“ˆÌiÊUÊȏˆV>ÊUÊ«œÌ>ÅÊU i>ÀÀ̅ ̅ ii“i˜ÌÃÊUÊ̈Ì>˜ˆÕ“ Փ “ U Û> “ÊU U V… V Àœ“ˆÌiÊUÊȏˆV>Ê >ÊU U «œ «œÌ> «œÌ Ì>Å Ì>à Å ÕÀ>˜ˆÕ“ÊUʘˆVŽiÊUÊVœ««iÀÊUÊ∘VÊUÊ}œ`ÊUÊ ˜ˆˆÕ“ UʘˆVŽiÊUÊVœ««iÀÊ ÀÊU U ∠∘V Ì>˜Ì>Õ“ÊUʏˆÌ…ˆÕ“ÊUÊViÈՓÊUÊ«>̈˜Õ“Ê}ÀœÕ«Ê“iÌ>ÃÊUÊÀ>ÀiÊi>À̅Êii“i˜ÌÃÊUÊ̈Ì>˜ˆÕ“ÊUÊÛ>˜>`ˆÕ“ÊUÊV…Àœ“ˆÌiÊUÊȏˆV> Փ U ˆÌ ˆÌ…ˆ …ˆÕ“ …ˆ Õ ÊU Vià iÃˆÕ ˆ “ U «>̈˜ ˆÕ Õ« “iÌ iÌ> >Ã > à U À> À ÀiÊi> >À̅Êii“i˜ ˆÌ> >˜ˆ ˜ˆÕ“ Փ U Û>˜ ˜>` >`ˆÕ ˆ “ U V… ˆÕ V… V…Àœ“ˆÌ UÊ«œÌ>ÅÊU >Å U ÕÀ>˜ˆÕ ÕÀ>˜ˆÕ“ÊUʘˆVŽiÊUÊVœ««iÀÊUÊ∘VÊUÊ}œ`ÊUÊÌ>˜Ì>Õ“ÊUʏˆÌ…ˆÕ“ÊUÊViÈՓÊUÊ«>̈˜Õ“Ê}ÀœÕ«Ê“iÌ>ÃÊUÊÀ>Ài ˆÕ“ “ U ˜ˆˆVŽi Ž U Vœ« ˆ˜VÊUÊ}œ`ÊUÊÌ> Ì>˜Ì Ì> >˜Ì ˜ > >Õ“ÊUʏˆÌ…ˆÕ“ iÈՓ U «>̈˜Õ“ }ÀœÕ« “iÌ> i>À̅Êii“i˜ÌÃÊUÊ̈Ì>˜ˆÕ“ÊUÊÛ>˜>`ˆÕ“ÊUÊV…Àœ“ˆÌiÊUÊȏˆV>ÊUÊ«œÌ>ÅÊU Àœ“ˆÌi U ȏˆV> U «œÌ>Å U ÕÀ>˜ ÕÀ>˜ˆÕ“ÊUʘˆVŽiÊUÊVœ««iÀÊUÊ∘VÊUÊ}œ`ÊUÊÌ>˜Ì>Õ“ REGISTER NOW TO: U discover Manitoba’s comprehensive geoscience database and exploration potential U get up to speed on current issues and opportunities EXPERIENCE THE: U trade show U poster exhibits U property showcase

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2011-2012 Northern Prospector

CONTACT US AT: 1-800-223-5215 U Tel.: 204-945-6558 Fax: 204-945-1406 U E-mail: convention@gov.mb.ca www.mineralsconvention.com Host Hotel: Delta Winnipeg 204-944-7243 or 1-800-268-1133


MANITOBA REVIEW property. The Makwa deposit comprises a NI 43-101-compliant resource of 9.855 million tonnes in the Probable category containing 0.541 per cent nickel, 0.113 per cent copper and 0.433 g/t PGM. The Mayville deposit contains a NI 43-101 Indicated resource of 9.227 million tonnes containing 0.61 per cent copper, 0.23 per cent nickel and 0.174 g/t palladium. Mustang believes the Mayville deposit has the potential to host a significant PGM resource. The company recently completed the purchase of the Bouchard Herbert mill near Rouyn-Noranda, Quebec. The mill will be relocated and potentially provide a significant reduction in the capital costs incorporated in the feasibility study expected to be completed this year. VMS Ventures Inc.’s exploration and development successes with partner HudBay Minerals were complemented by exploration successes on their large stable of Snow Lake properties. Exploration was highlighted by a gold discovery on the Sails Lake project that returned a drill intercept of 56.89 metres grading 1.21 grams per tonne gold and a new zinc discovery on the Copper project. The current trend of exploring pastproducing mine properties is not restricted to gold properties in Manitoba. Prophecy Resources Corp. and Corazon Mining Ltd. are exploring past-producing nickel mines originally operated by Sherritt Gordon Mines in Lynn Lake. Employing advanced exploration techniques and technology, both companies have been successful discovering new mineralization and expanding the remaining resources at the Lynn Lake and El mines. PRECIOUS METALS Precious metals, led by gold, continue to benefit from the current economic uncertainty that has resulted in considerable appreciation in their value. In Manitoba, this is manifest in a considerable increase in exploration and deposit appraisal expenditures for gold. The primary focus is the re-evaluation of past-producing gold deposits. This trend was started with San Gold Corporation with their purchase of the Rice Lake mine in Bissett from Harmony Gold Inc., which was brought back to producer status in 2007. San Gold continues to experience improved operational performance and exploration success at its Rice Lake and Hinge mines in Bissett. San Gold has achieved record quarterly production in successive quarters, which has lead to a corresponding increase in operational profit. During their most recent quarter, San Gold reported record operating margins resulting from a significant decrease in operating expenses and strong gold prices. San Gold is on pace to produce 80,000 ounces of gold in 2011.

San Gold’s operational success is largely due to their considerable exploration success and their ability to identify and develop high-grade, near-surface deposits hosted by the Shoreline Basalt in the hanging wall of the Rice Lake mine. This has resulted in the opening of the Hinge and 007 mines that are accessed through ramps from surface. Several other zones hosted by the Shoreline Basalt are currently in the advanced stages of exploration and pre-production development. The company anticipates increases in annual gold production over the next few years. Also in the Rice Lake belt, Bison Gold Resources Inc. continues to explore the pastproducing Ogama mine on their Central

Manitoba property southeast of Bissett. Bison completed a 31-hole drill program that successfully returned high-grade gold results from the Ogama Vein 1 and Eldorado zone. A winter drill program will focus on the assessment of the Eldorado zone over its 1 km strike length. The pastproducing Ogama-Rockland mining operation produced 45,440 ounces of gold from 1948 to1951. Elsewhere in the Rice Lake belt, Wildcat Exploration Ltd. maintains an aggressive gold exploration program with joint-venture partner San Gold on their portfolio of Rice Lake gold projects. The company conducted drill programs on the Mike Power, Jeep and Poundmaker properties and ad-

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MANITOBA REVIEW vanced a number of other properties towards the drilling stage. Strikepoint Gold maintains an active gold exploration program on their Strikepoint property adjacent to San Gold’s Rice Lake mine and their joint-ventured Rice Lake properties with San Gold. Greenstone belts located in the Trans-Hudson Orogen are also attracting considerable attention in the current environment of elevated gold prices. The large number of past-producing mines and their largely intact infrastructure represent attractive targets for junior gold explorers. In the Snow Lake area, Alexis Minerals Corporation continues to evaluate the reopening of the past-producing Snow Lake gold mine (previously the New Britannia mine). Alexis delayed their anticipated production decision to reopen the mine in order to include additional gold resources not reported in the December 2009 feasibility study. The additional resources will increase the projected mine life and will improve the already robust economics of reopening the Snow Lake gold mine. The 2009 feasibility study forecast production of 80,000 to 90,000 ounces of gold per year for a minimum of six years. Alexis anticipates the completion of the revised feasibility study in 2012. If Alexis is successful, it will be the second reopening of the Snow Lake mine. New Britannia produced 858,000 ounces of gold between 1995 and 2005 and 760,000 ounces of gold between 1949 and 1958 as the Nor Acme mine. Also in the Flin Flon-Snow Lake greenstone belt, Auriga Gold Corp. continues to advance their Maverick gold project towards “near-term” gold production. The Maverick project comprises the past-producing Puffy Lake gold mine and adjacent Nokomis gold property south of Sherridon. Auriga completed a 41-hole drilling program that culminated in the release of NI 43-101-compliant optimized in-pit and underground Indicated resources totalling 174,000 ounces gold and Inferred resources totalling 558,000 ounces. The gold resources are hosted in a number of east-dipping, parallel, mineralized vein structures including the Upper, Sheridan, Main and Lower Zones. Auriga has commissioned a Preliminary Economic Assessment (PEA) looking at the potential economic viability of an initial open-pit mining operation utilizing the on-site Puffy Lake mill and other existing infrastructure. The company expects the PEA to be completed in October 2011 and a positive result will provide the basis to refurbish the Puffy Lake mill and commence test mining within the next year. The Puffy Lake mine produced 28,000 ounces of gold in 1988 and 1989. St. Eugene Mining Corporation Ltd. completed the acquisition of the Tartan Lake gold mine northeast of Flin Flon. The Tar12

2011-2012 Northern Prospector

tan Lake mine produced 45,000 ounces of gold between 1987 and 1989. St. Eugene is upgrading the Tartan Lake historic gold resources base to a NI 43-101–compliant resource, with an Indicated mineral resource of 1 000 000 tonnes at 4.0 g/tonne gold (130,000 ounces) and an additional Inferred mineral resource of 1 900 000 tonnes at 3.9g/tonne gold (240,000 ounces). St. Eugene continues to expand mineral resources through a 4000 m surface exploration drilling program and is working towards mine de-watering and the initiation of an underground exploration and test mining program. The Lynn Lake greenstone belt, located in the northern Trans-Hudson Orogen, hosts a number of past-producing gold mines. Carlisle Goldfields Limited continues to assess the potential redevelopment of four pastproducing gold mines in the Lynn Lake region with a 40 000 metre drill program. The centrepiece is the MacLellan Gold mine that contains a NI 43-101–compliant open pit

and underground Measured and Indicated resource estimate of 1,035,200 ounces of gold and 9,344,000 ounces of silver. Carlisle commissioned a Preliminary Economic Assessment for the MacLellan mine as an open-pit operation. Exploration drilling at the nearby BT open pit mine, which operated between 1994 and 1996, the Lasthope deposit, and past-producing Farley Lake mine focuses on the delineation of potential incremental feed for an envisioned regional gold mill. Gold exploration activity is not limited to past-producing deposits located in established greenstone belts, but also includes a number of advanced exploration projects located in more frontier regions of the province. The highest profile project is Mega Precious Metals Inc.’s Monument Bay gold project near Red Sucker Lake in northeastern Manitoba. Mega continues with an aggressive infill and exploration drill program and recently released an updated NI 43-101-compli-


MANITOBA REVIEW ant Measured resource of 221 510 tonnes grading 12.48 g/tonne, plus an Indicated resource of 2 199 100 tonnes grading 7.12 g/tonne plus Inferred resources of 6 147 000 tonnes grading 6.01 g/tonne using a 3.0 g/tonne cut-off grade. This represents a 47 per cent increase in the resource estimate to 1,294,999 contained ounces. Mega continues to advance the Monument Bay project towards initial mine development through an Advanced Exploration Permit in 2012. Mega’s exploration success at Monu ment Bay and the favourable geology has

attracted a number of junior gold explorers to the Archean Northern Superior Province southeast of Thompson. The list includes Gossan Resources Limited, Alto Ventures Ltd. and QMC Quantum Minerals Corp. This under-explored accretionary terrane is viewed by explorers as having the potential to host a number of gold deposits in a regional camp. SPECIALTY/INDUSTRIAL MINERALS In March 2011, Westcore Energy Ltd. reported that it had completed 39 vertical holes on its 2011 drilling program

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REGIONAL OFFICE: Bissett, Manitoba (204) 277-5251 Thompson, Manitoba (204) 778-3140 Snow Lake, Manitoba (204) 358-7923 PRESIDENT: IAN KACPERSKI

Over 28 years experience in the Mining Industry 14

2011-2012 Northern Prospector

on its wholly owned Black Diamond and FNR JV coal properties near The Pas. A total of 4,529 metres of drilling was done, with 516 coal core samples recovered for Proximate Analysis. In addition, a bulk sample of coal was shipped to the Quantex Energy Ltd. lab in Morgantown, West Virginia in February 2011 for coal liquefaction analysis. The breakeven cost of the Quantex process is estimated at less than $50 per barrel of oil. A gravitygradient airborne survey was completed during the summer of 2011 and a 2012 winter drilling program is planned on the gravity anomalies. A NI 43-101 resource report is expected upon completion of the 2012 work. In late 2009, Saturn Minerals Inc. completed a preliminary airborne gravity survey over its Overflowing property south of The Pas and immediately to the east of Westcore Energy’s properties (described above). Seven vertical holes were drilled early in 2011 of which 6 intersected the Saturn coal seam in the company’s Karolina Coal Basin. One coal intersection was reported to be 88.98 m in core length. Positive washability results on coal samples were received and a followup airborne gravity survey flown by late August 2011. The newly acquired analytical data is being incorporated into the company’s exploration model to identify new drill targets for its 2011 summer drill program. Gossan Resources Limited has drilloutlined two zones of high-purity silica sand near Manigotagan on the east shore of the south basin of Lake Winnipeg. The zones extend for over 400 and 600 metres in length and have thicknesses exceeding five metres and widths of over 15 metres. A marketing study, completed on the property in October 2010, concluded that the sand meets the specifications and appears suitable for the frac sand proppant, fibreglass, recreation, metallurgical, construction, filtration and well pack markets. In September 2009, Victory Nickel Inc. announced it had drilled a (NI 43-101– compliant) Indicated resource of 15 million tonnes of Ordovician Winnipeg Formation silica sand (containing 84 per cent marketable frac sand) above its Minago Nose nickel deposit south of Thompson. The sand, which forms part of the overburden, must be removed before the nickel can be open-pit mined. In September 2011, Victory Nickel was granted an Environmental Act Licence for the Minago mine and its board of directors approved the development, including a frac sand component. ✖


SASKATCHEWAN REVIEW

Saskatchewan Exploration and Development Highlights 2011 Saskatchewan Ministry of Energy and Resources 2011 GENERAL OVERVIEW In 2010, Saskatchewan accounted for about one-third of global potash production and 18 per cent of world’s primary uranium production. Coal, gold, salt, sodium sulphate, silica sand and bentonite were also mined and there is good potential for a variety of other minerals including diamonds, base metals and rare earth elements. A strong rebound in potash sales volumes in 2010 resulted in an increase in provincial mineral sales to $6.86 billion (B), up from the $4.6 B of 2009. Strong potash sales volumes in the first-half of the year, coupled with higher prices for other minerals, provide a clear indication that mineral sales values for 2011 will once again be among the highest in Canada. Saskatchewan mineral exploration expenditures in 2011 are expected to be about $281 million (M). Although the bulk of spending will be on potash and uranium projects; there will also be spending on diamond, gold, base metal, coal, platinum group metal, and rare earth element projects (Table 1). This year’s estimate is down from actual expenditures of $321 M in 2010, a reflection of several major projects moving beyond the capital intensive exploration phases and advancing towards the prefeasibility to feasibility stages of evaluation. Even with the forecasted minor decrease, exploration spending in Saskatchewan continues to be well above historic levels. Since 2004, it is estimated that over 2.0 B has been spent on exploration programs, a dramatic increase when compared to the $674.5 M spent in the previous 20 years. As of September 30, 2011, active mineral dispositions, issued pursuant to the Mineral Disposition Regulations, 1986, totalled about 5.55 M hectares (ha). In addition there were 181 active potash dispositions, issued pursuant to the Subsurface Mineral Regulations, 1960, comprising permits and leases, totalling about 4.38 M ha and 6,162 active coal dispositions totalling about 3.9 M ha issued under the Coal Disposition Regulations, 1988.

Note: All project locations discussed in the text below are illustrated on Figure 1 URANIUM In 2010, Saskatchewan produced 25.43 M pounds (lb) of U3O8, constituting about 18 per cent of world and 100 per cent of Canadian production. Uranium was produced from three operations: McArthur River/Key Lake; McClean Lake; and Rabbit Lake. The McArthur River mine continued to be the world’s largest uranium producer in 2010, yielding 19.9 M lb U3O8. Production is anticipated to be 18.7 M lb U3O8 in 2011. The Eagle Point mine at Rabbit Lake produced 3.8 M lb U3O8 in 2010 and is expected to produce a further 3.6 M lb U3O8 in 2011. The McClean Lake mill produced 1.73 M lb U3O8 in 2010 before being placed on care and maintenance on June 30th, 2010, when ore stock piles were exhausted. The McClean Lake mill is scheduled to resume operations when production commences at the high grade Cigar Lake mine. Remediation and construction at the Cigar Lake mine continues with production projected to begin in the middle of 2013. In 2011, uranium exploration, in and adjacent to the Athabasca Basin, continued to be strong with estimated expenditures of $104M. Since 2003, the approximately $955M that has been spent on uranium exploration has not only advanced several projects but also resulted in more than a dozen discoveries. Saskatchewan headquartered Cameco Corporation (Cameco), the world’s largest uranium producer, is active in both brownfields and greenfields exploration in Saskatchewan. One of the company’s more advanced stage projects is the Millennium joint venture (Cameco 42 per cent, operator; JCU Exploration Canada Co., Ltd. 30 per cent (JCU); AREVA Resources Canada Inc. (AREVA) 28 per cent), which is currently the focus of a feasibility study, and awaits a production decision. Exploration at the Dawn Lake joint venture property (Cameco 57.5 per cent, operator; AREVA 23 per cent; JCU 19.5 per cent) is focussed on the Tamarack deposit where delineation continues with the goal of advancing to the preliminary feasibility study stage. On the Virgin River property, (Cameco 49 per cent, operator; AREVA 49 per cent; Coronation Mines Ltd. 2 per cent) $3 M was budgeted for exploration at the Centennial deposit in 2011. This follows up on 8562 m of drilling in 2010, which included 5 pilot holes and 14 directional cuts. Significant

Table 1 - Saskatchewan mineral exploration expenditures as compiled by the Saskatchewan Ministry of Energy and Resources from the annual survey of exploration spending intentions.

2010 ($ M)

2011 ($ M) (preliminary estimates)

2007 ($ M)

2008 ($ M)

2009 ($ M)

Uranium

199.2

204.4

108.6

103.2

104.4

Diamonds

76.6

73.2

10.9

17.3

7.1

15.3

8.9

3.0

9.5

9.9

11.5

6.8

3.0

6.5

18.6

Industrial Minerals

22.7

180.7

151.2

184.0

141.6

Total

325.3

474.0

276.6

320.5

281.6

Gold 1

Base Metals

2

1 2

Includes: platinum group metals (PGM). Includes: potash, coal, rare earth element (REE), and clays. Northern Prospector 2011-2012

15


SASKATCHEWAN REVIEW intersections include 13.2 m grading 7.46 per cent U3O8 at a depth of 800 m and 9.0 m grading 8.4 per cent U3O8 at a depth of 823 m. Hathor Exploration Inc. (Hathor) has been aggressively exploring the Roughrider Uranium Deposit near Points North Landing and now has defined three pods of mineralization over a strike length of about 500 m. Late in 2010 the company released a new resource estimate for the Roughrider West Zone, which contains 17.2 M lb U3O8 grading 1.98 per cent U3O8 in the Indicated Resource category and 10.6 M lb U3O8 grading 11.03 per cent U3O8 in the Inferred Resource category. In May 2011, this was followed up by a preliminary Inferred Resource estimate for the Roughrider East Zone, of 30.1 M lb U3O8 at a grade of 11.58 per cent U3O8. Hathor also announced the discovery of a new zone located about 50 m east of the East Zone, which it named “Far East�. In contrast to the West and East zones, which lie at the unconformity at the base of the Athabasca Group, about 200 m below surface, the Far East Zone was intersected as deep as 200 m below the unconformity. The Far East Zone is similar to the other pods in that it contains wide, high-grade drill intersections, including 37.5 m at 1.57 per cent U3O8 in the discovery hole and 42.5 m at 2.40 per cent U3O8. In September of 2011, Hathor received a Preliminary Economic Assessment for the Roughrider deposit, which did not take into account the Far East Zone, and was based on a $567 M stand-alone mine and mill operation. The analysis has a best-case scenario of $70/lb U3O8 with a predicted pre-tax payback period following start up of 1.2 years. Production would be 5 M lb U3O8, annually. These successes have led to interest from other companies, including Cameco, which launched a hostile takeover attempt for Hathor late in August, the result of which was uncertain at the time of publication. Hathor is also continuing exploration on its Russell Lake property, specifically near its recently discovered Christie Lake occurrence. Fission Energy Corp. (Fission) (operator, 60 per cent) and the

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16

2011-2012 Northern Prospector

Korea Waterbury Uranium Limited Partnership have focussed exploration efforts at their Waterbury Lake project on a westtrending structural corridor named the Discovery Bay Zone, the western extension of the trend that hosts the Roughrider deposit. Several uranium occurrences have been identified by an aggressive drill program, the most significant being the J and J-East Zones which are likely part of the Roughrider West Zone. Fission has now identified both unconformity and basement mineralization at the J-Zone, with the former now defined over a strike length of 578 m after drilling merged it with the previously discovered PKB zone. Two other prospective zones have been identified further to the west, Talisker and Summit, with the latter lying about 1 km west of the J-Zone. At the Shea Creek project (AREVA 51 per cent, operator; UEX Corporation 49 per cent) AREVA has worked at defining open parts of the better known Anne, Colette and Kianna deposits and untested parts of the 2.5 km mineralized trend along the northwest trending Saskatoon Lake conductor. Targets remain between the Kianna and Colette deposits and the Anne and Kianna deposits. The true potential of the Shea Creek property may not be recognized, however, until underground development allows for focussed exploration of these deposits which are nearly 800 m below the surface. The Phoenix trend on the Wheeler River property (Denison Mines Corp. 60 per cent, operator; Cameco, 30 per cent; JCU 10 per cent) now contains four mineralized zones, A-D, that lie near the unconformity at the base of the Athabasca Group some 400 m below surface. A preliminary resource estimate for zones A and B was released late in 2010 in which Zone A contained an Indicated Resource of 35.6 M lb U3O8 grading at 18.0 per cent U3O8 and Zone B an Inferred Resource of 3.8 M lb U3O8 grading 7.3 per cent U3O8. Winter drilling in 2011 identified more high-grade mineralization in Zone A and a further 24 000 m of delineation drilling was planned for the summer program. Further success at


SASKATCHEWAN REVIEW MINERAL RESOURCE MAP OF SASKATCHEWAN KEY TO NUMBERED MINES AND DEPOSITS

#

110° 60°

#1

Tazin Lake

URANIUM Operating Mines 1. McClean Lake Mine ( North and South deposits; Sue A, B, C, and E deposits; AREVA Resources Canada Inc., 70%; Denison Mines Corp., 22.5%; OURD [Canada] Co. Ltd., 7.5%) 2. Eagle Point Mine (Cameco Corp.); ore processed at Rabbit Lake Mill 3. McArthur River Mine (P2N Zone deposit; Cameco Corp., 69.805%; AREVA Resources Canada Inc., 30.195%); ore processed at Key Lake Mill

Scott Lake

WESTERN CRATON URANIUM CITY

MUDJATIK

#2 Lake Athabasca

Fond du Lac

Black Lake

STONY RAPIDS

Fond du Lac River

Location Referenced in Text 1. Tamarack deposit 4. Shea Creek (Anne & Kianna) 5. Cigar Lake Mine 6. Midwest deposit Wollaston Lake 7. Centennial deposit 8. Christie Lake 9. Millennium deposit 10. Key Lake Mill 11. Roughrider deposit and J-zone 12. Phoenix deposit Reindeer

Hatchet Lake

955

Riv er

2 6 11 ## # # 1

5#

E

2

Cree

Waterbury Lake

Cree Lake

WESTERN CRATON

#

GOLD Operating Mines 1. Seabee operation (Claude Resources Inc.) 2. Roy Lloyd Mine (Golden Band Resources Inc.)

N W AT H BA AM TH AN O LI TH

LL O W

UD J

VI

AT IK

R G

IN

AS

R IV

TO

ER

# 10

SE IS K

EW

#

COPPER-ZINC Location Referenced in Text 1. McKenzie Lake project 2. Brabant Lake 3. McIlvenna Bay

IS

K

2 102 #

RIVE R

SOUTHEND

SE

LA

NARROWS NARROWS

5 6 ##2 # # 4 #8 7 # ## 1 3

Location Referenced in Text 2. Goldfields (Box & Athona) 3. Santoy deposits 4. Porky West 5. Waddy Lake (Komis, EP, Golden Heart) 6. Jojay deposit 7. Jasper deposit 8. Neptune deposit 9. Amisk gold deposit

YN

R STO O N N E G E

EN

914

ILL

TT

CH

PATUANAK PATUANAK

O

UR

R

CH

EW

M

155

BUFFALO BUFFALO

#1 905

Lake

Turnor Lake

LA LA LOCHE LOCHE

PE

7#

TE R

3 # 12 8 9# # #

YN

4 ##

Pasfield Lake

ATHABASCA BASIN

LA K

CARSWELL STRUCTURE

PINEHOUSE PINEHOUSE LAKE LAKE

SANDY BAY

135

# COPPER-NICKEL-PGE-GOLD

N

LE

1

2

Deschambault 165 Lake

1 # % 17# 9 16 18 3 Amisk Amisk

15

Lake Lake

Beaver River

1. Hoidas Lake 2. Douglas River

6

54

1#

Montreal Montreal Lake Lake 55

# RARE EARTH OCCURRENCE

106

FL

Dore Lake

1. Swan Lake PGE project

FL

Ronge

FLIN FLON

IN

155

Lac La

G

LA LA 165 RONGE RONGE

O

165

NN

IE

918

‹ KIMBERLITE OCCURRENCE 1. Fort à la Corne kimberlite cluster 2. Star-Orion South project

Cumberland Cumberland Lake Lake

‹ 106

2

%

POTASH AND SALT Operating Mines 1. Vanscoy potash mine (Agrium Inc.) 2. Cory Division potash mine (Potash Corp.) 3. Patience Lake Division potash solution mine (Potash Corp.) 4. Allan Division potash mine (Potash Corp.) 5. Colonsay potash mine (The Mosaic Company) 6. Lanigan Division potash mine (Potash Corp.) 7. Esterhazy K-1 and K-2 potash mines (The Mosaic Company) 8. Rocanville Division potash mine (Potash Corp.) 9. Belle Plaine potash solution mine (The Mosaic Company) and fine salt plant (processes waste salt from potash mine) (Mosaic Canada ULC) 10. Unity solution salt mine and plant (Sifto Canada Inc.) 11. Saskatoon chloride based chemical plant (ERCO Worldwide, a Division of Superior Plus Inc.)

‹ ‹

4

‹

2

Ri ve r 16

3

er Riv

4%

MELFORT 3

2

11

HUDSON BAY

No rth

10 %

Sa sk at ch ew an

NORTH BATTLEFORD

an ew tch ska Sa

‹‹ ‹

3

Ba ttle Riv er

‹ ‹‹

PRINCE ‹55‹‹‹‹ 1 ‹‹ ‹‹ ALBERT ‹ ‹ ‹

‹ ‹

LLOYDMINSTER

6 9

21

11 % 35 % % 1% 2 % 4 5% 1%

HUMBOLDT

4

So uth Sa ska tch ew an

7

Riv er

SASKATOON

KINDERSLEY

% 6

13 % % % 12 2 Quill

Lakes

5

Location Referenced in Text 12. Jansen project 13. Burr project 14. Regina project YORKTON 15. Legacy project 16. Milestone project

2

Last Mountain Lake

11

% SODIUM SULPHATE AND POTASSIUM

MELVILLE

Lake Diefenbaker

1 %

SWIFT CURRENT

21

16 10

%

1

MOOSE JAW

Qu'Appelle River

14 %

9

7% 8%

1

REGINA

2

Old Wives Lake

1

2 % 13

4

Frenchman River

3%

39

WEYBURN 13

ASSINIBOIA

13

4%

6

2

21

SYMBOLS Oil fields Gas fields Oil sands potential Coal fields Potash and salt resource areas Carnallitic regions (magnesium)

1

Ri ve r

9

ESTEVAN

2 % %3

%1

49° 110°

LEGEND Uranium potential Base metal potential Gold potential Diamond potential Major peat resource potential Carbon dioxide (CO2 ) resource potential

is ur So

MAPLE CREEK

17. Wynyard project 18. Hanley project 19. Melville project

102°

Edge of Precambrian Shield Precambrian domain boundaries and names Major bounding shear zones Major faults SCALE Roads 25 0 25 50 75 Kilometers Cities Towns 25 25 50 Miles 0

SULPHATE Operating Plants 1. Chaplin Lake sodium sulphate plant (Saskatchewan Minerals) 2. Big Quill Lake potassium sulphate plant (Big Quill Resources Inc.)

% CLAY RESOURCES Operating Quarries 1. Saskatoon clay quarry and plant (Cindercrete Products Ltd.) 2. Ravenscrag clay quarry (I-XL Industries Ltd.) 3. Truax bentonite quarry (Canadian Clay Products Inc.) % COAL Operating Mines 1. Poplar River Mine (Prairie Mines) 2. Boundary Dam (Shand, Costello, and Utility) Mine (Prairie Mines) 3. Bienfait Mine (Prairie Mines) Location referenced in text 4. Husdson Bay area coal deposits

% SILICA SAND Operating Mines 1. Hanson Lake silica sand quarry (Winn Bay Sand)

Northern Prospector 2011-2012

17


SASKATCHEWAN REVIEW zone A includes an intersection of 8.4 m grading 38.5 per cent eU3O81 reported in August. GOLD The past year was a significant one for the history of gold mining in Saskatchewan. After several years of having a single producing gold mine, the Seabee Mine in the northern Glennie Domain, two new mines were brought online in 2011. Golden Band Resources Inc. (Golden Band) brought the Roy Lloyd mine (formerly Bingo deposit), located in the southern La Ronge Domain, into commercial production in April 1st, 2011. Likewise, Claude Resources Inc. (Claude) announced in April that it had achieved commercial production at its Santoy 8 mine, part of its Seabee Gold Operation and about 12 km east of the Seabee mine. At the Seabee Gold Operation, ore from the Seabee and Santoy 8 mines is processed at the Seabee central milling facility. Since the opening of the Seabee mine in 1990, the operation has produced almost 950,000 ounces (oz.) of gold (Au), from ore from the Seabee and Santoy 8 mines and bulk samples from the Porky West and Santoy 7 deposits. In 2010, the operation produced 47,240 oz. of gold from 203 958 tonnes (t) of ore grading 7.55 grams/tonne (g/t) Au. An additional 22,163 oz. were produced during the first half of 2011 from 116,003 t of ore grading 6.23 g/t Au; total 2011 production is anticipated to be 50,000 to 52,000 oz. Au. The Roy Lloyd mine, 100 per cent owned by Golden Band, is the first producing mine of the company’s La Ronge gold project. Ore from the mine is being milled at the newly refurbished Jolu mill, located approximately45 km to the northeast and centrally located within the greater La Ronge gold project area. To date the mine has produced over 20,000 oz. Au with a mill throughput averaging 400 t/day. Total production for the first year of operation is estimated to be approximately 45,000 oz Au. Gold exploration in 2011 was widespread throughout several geological domains of the Precambrian Shield and is focused on both historical properties and on greenfields plays. The bulk of exploration is taking place in the La Ronge, Glennie and Flin Flon domains of the Reindeer Zone, as well as in the Beaverlodge Domain of the Rae Province. Additional potential for gold mineralization is currently known in the Tantato Domain of the Rae Province and the Mudjatik Domain of the Hearne Province. The majority of Saskatchewan’s known occurrences are of epigenetic origin (i.e. structurallycontrolled), though a few deposits are 1 Equivalent U3O8 calculated from a down-hole, gamma-ray probe rather than an assay result. 18

2011-2012 Northern Prospector

known to be pre-deformational. A small number of minor placer and paleo-placer gold occurrences are also known in the southern part of the province. The La Ronge Domain hosts numerous gold deposits, several of which have established NI43101 compliant reserve and/or resource estimates. Golden Band is continuing exploration and development at the Roy Lloyd mine as well as the Komis, Golden Heart and EP deposits, in the Waddy Lake area, which are the next scheduled ore bodies for mining within the La Ronge gold project. Wescan Goldfields Inc. (Wescan) is continuing work on its Jojay and Jasper projects. In the past year, the majority of gold exploration and development activities in the Glennie Domain were carried out by Claude at its Seabee Gold Operation. Underground exploration at the Seabee mine (‘Seabee Deep’) continued throughout the year and added to established mine reserves. Claude has also intersected mineralization during underground and surface drilling at its Santoy 8 mine as well as surface drilling at the adjacent Santoy Gap (i.e. between the Santoy 7 and Santoy 8 zones) and at its ‘Neptune’ target, located about 6 km north of the Seabee mine site, in the Pigeon Lake area. Wescan is also actively exploring the Glennie Domain for gold; having conducted extensive geophysical surveys. In the Flin Flon Domain, the most significant gold exploration work currently underway is the Amisk gold project, a joint venture between Claude (65 per cent) and St. Eugene Mining Corp. (35 per cent). Exploration is currently focused on the Amisk gold-silver deposit on northwestern Missi Island in Northern Amisk Lake. The JV partners drilled 18 holes in 2010 and further delineation drilling is currently underway to define the extents of the deposit. The other major gold project in the province is Brigus Gold Corp.’s Goldfields Project, near Uranium City on the north shore of Lake Athabasca. The Goldfields Project includes the past-producing Box mine and the Athona deposit, for both of which there are NI43-101 compliant mineral reserve and resource estimates. In October, 2011, Brigus reported results from an independent pre-feasibility study, which indicated a Net Present Value (NPV) of $144.3 million at a 5 per cent discount rate with an internal rate of return (IRR) of 19.6 per cent assuming a gold price of $1,250 per ounce. BASE METALS AND PLATINUM GROUP METALS Although there is currently no base metal production in Saskatchewan, it is estimated that exploration expenditures for 2011 are expected to be $18.6M, which would be a marked increase over

actual expenditures of $6.5M in 2010. Advanced exploration projects in northern Saskatchewan include: Foran Mining Corp.’s (Foran) McIlvenna Bay deposit in the western Flin Flon Domain; the Exploration Syndicate Inc.’s (ESI) McKenzie Lake project in the sub-Phanerozoic extension of the western Flin Flon Domain; and Manicouagan Minerals Inc.’s (Manicougan) Brabant Lake deposit in the western Kisseynew Domain. In the fall of 2010, after becoming 100 per cent owner of the McIlvenna Bay property, Foran completed a 10 hole, 5081 m ‘Phase One’ drill program on its copper-zinc-silver (Cu-Zn-Ag) McIlvenna Bay Deposit, 80 km west of Flin Flon. The main objective of this program was to test the continuity of grade and thickness of the copper stringer zone, in an effort to upgrade the mineral resource calculation for the volcanogenic massive sulphide (VMS) deposit. Drill hole MB11145 intersected 13.33 m of massive sulphide grading 5.32 per cent Zn and 54.1 g/t Ag. One of the thickest intersections of the copper stringer zone was 32.52 m in hole MB11-138 grading 1.69 per cent Cu, 0.35 g/t Au, 0.27 per cent Zn, and 11.29 g/t Ag, including a section of 8.00 m grading 3.19 per cent Cu, 0.40 g/t Au, 0.59 per cent Zn, and 24.79 g/t Ag. Overall the drill program confirmed the continuity of the copper stringer zone, and extended the zinc-silver-rich ‘Lens 2’ down plunge. A second phase drilling program commenced in the late summer of 2011, in part to expand the extent of the copper stock-work zone by step-out drilling. Manicouagan completed a 560 line km helicopter-borne VTEM PLUS survey over its 100 per cent owned 28 sq km Brabant Lake property and reported the survey identified a number of significant new anomalies. The property, which is located 175 km northeast of La Ronge, near the community of Brabant Lake, hosts a zinclead-copper (Zn-Pb-Cu-Ag) deposit. In 2008, Manicouagan released an updated NI 43-101 resource estimate incorporating 129 drill holes, which outlined an Indicated Resource of 1.48 M t grading 9.18 per cent Zn, 0.79 per cent Cu, 32.6 g/t Ag, and 0.15 g/t Au. An additional 2.98 M t grading 5.55 per cent Zn, 0.55 per cent Cu, 13.9 g/t Ag, and 0.10 g/t Au were classified as an Inferred Resource. ESI recently released a technical report detailing results of a 2011 six hole, 2800 m drill program for its McKenzie Lake project, located approximately 80 km southwest of Flin Flon. In 2007 and 2008 four zones of VMS-related base metal mineralization (M2-Suggi Lake, M45, Emily, Alex-Groucho) were discovered. At Suggi Lake, a high-grade Cu-Zn zone returned grades of 4.4 per cent Cu, 4.8 per cent Zn over 16.4 m (ML-10-01), and 6.1 per cent Cu, 5.8 per cent Zn over


SASKATCHEWAN REVIEW 9.8 m (ML-10-02). The objective of the 2011 drill program was to better define the extent of the M2-Suggi Lake mineralized zone. According to the report, the zone has a minimum dimension of 200x250x500 m, is open laterally and at depth, and consists of low-grade disseminated and stringer-type mineralization and alteration. Canadian Platinum Corp. is actively exploring for PGMs in the Peter Lake Domain, and announced an amalgamation with McGregor Capital Corp. The amalgamated corporation will continue to evaluate the Swan Lake PGE exploration project in the Peter Lake Domain. Canadian Platinum Corp. had spent $5M to date on exploration of its Peter Lake project. POTASH After an anomalously slow year in 2009, potash markets stabilized in early 2010 largely due to the negotiation of longer term contracts with key clientele, which resulted in a strong rebound in global demand. Saskatchewan potash production in 2010 was 14.9 M t KCl, a significant increase over the 9.6 M t produced in 2009. Saskatchewan’s three potash producing companies, Potash Corporation of Saskatchewan, The Mosaic Company, and Agrium Inc., have all reported increases in potash sale price and sales volumes in the first half of 2011,

and preliminary indications are that production is on pace to meet or exceed the record level of 16.5 M t KCl set in 2007. It is estimated that between 2004 and 2020 the province’s three producers will invest up to $13 billion to upgrade and expand existing mining facilities to increase provincial productive capacity by over 90 per cent. Saskatchewan continues to be the world’s largest producer of potash typically accounting for about one third of global production and 40 per cent of global trade. Many potash exploration companies are continuing to advance projects that range from grass-roots to the feasibility study stages. BHP Billiton Ltd. (BHP) has advanced its Jansen potash project to the feasibility study stage and recently received approval of its Environmental Impact Assessment (EIA). BHP, which to date has announced planned investments of $1.2 B in the Jansen Project, has also completed construction of a refrigeration plant is continuing to drill the 55 000 m, in 89 holes, which will be required for ground freezing in preparation for shaft excavation. The company hopes to begin producing saleable potash in 2015, and eventually ramp production at Jansen up to 8 M t per year. BHP is continuing exploration and evaluation at its Boulder, Young and Melville project areas. The company also announced it will relocate

its Diamonds and Specialty Products division from Vancouver to Saskatoon to be closer to its potash operations. BHP estimates that it has now invested about $2 B total in its Saskatchewan potash projects. Shortly after receiving approval of its EIA, Potash One Inc. announced that it had agreed to a friendly $424 M takeover by K+S Canada Holdings Inc. (K+S), a wholly owned subsidiary of German based K+S Aktiengesellschaft. Potash One’s principal asset was the Legacy solution mining project, adjacent to Mosaic’s Belle Plaine solution potash mine. K+S, Europe’s largest potash producer, stated that it intends to build a 2.7 M t per year mine at a cost of approximately$2.5 B. Brazilian miner Vale S.A. also announced that it has entered into the preliminary feasibility study stage at its Regina solution mining project, for which the company expects a board decision on advancing the project to production in 2012. Recently Rio Tinto PLC announced it had partnered with North Atlantic Potash Inc. (North Atlantic), the Canadian subsidiary of Russia’s JSC Acron, in an attempt to develop a new greenfields potash mine. North Atlantic also announced that it had sold eight of its 26 potash dispositions to Yancoal Canada Resources Co. Ltd. (Yancoal) for $110 M. Yancoal

Saskatchewan has mineral wealth that few other places can match. Our province is the world’s largest producer of potash and one of its leading uranium producers. We’re Canada’s third largest coal producer, and have great potential in base metals, gold, diamonds, rare earth elements and many other minerals. Saskatchewan’s business-friendly atmosphere includes: • Top-quality geoscience information • Competitive taxes, royalties and fees Go to www.er.gov.sk.ca and find out more about opportunities in Saskatchewan.

Northern Prospector 2011-2012

19


SASKATCHEWAN REVIEW is a division of the Yankuang Group Co., Ltd., a large Chinese state owned enterprise which is also China’s fourth largest coal producer. In addition to its purchase of dispositions from North Atlantic, Yancoal also announced it had purchased, for $150 M, eleven potash permits from Devonian Potash Inc., a private company. Several other junior companies such as: Western Potash Corp. (Milestone project); Encanto Potash Corp (Muskowekwan project); Karnalyte Resources Inc. (Wynyard project); and M & J Potash Corp. (Hanley project) are also continuing with potash exploration and evaluation projects. COAL In 2010, Saskatchewan’s three coal mines Boundary Dam, Bienfait, and Poplar River, operated by Sherritt International Corp., produced 10.1 M t of coal, a slight decrease from the 10.3 M t produced in 2009. Production for 2011 is forecasted to be at similar levels as 2010. Saskatchewan is Canada’s third largest coal producer behind Alberta and BC and in recent years has typically accounted for about 15 per cent of national production. Nearly all of the coal produced in Saskatchewan is consumed for thermal power generation, which currently produces about 60 per cent of the province’s electricity.

The bulk of the province’s coal exploration in 2010 and 2011 was in the Hudson Bay area in east-central Saskatchewan. Goldsource Mines Inc. has now drilled over 140 holes on its Border coal property and has discovered 17 coal deposits, some with cumulative coal intersections up to 126.5 m in true thickness. The project has an Indicated Resource of 63.5 M t and an Inferred Resource of 89.5 M t of sub-bituminous A to sub-bituminous C coal. Goldsource is currently drilling to expand resources and to investigate new anomalies. In September 2011, Goldsource announced that it had entered into a merger agreement with Zero Emission Energy Plants Ltd. (ZEEP). ZEEP is a private Bermuda company at arm’s length to Goldsource that was founded in 2008 to commercialize and deploy certain gasification technologies (the “PWR Technology”) developed by Pratt & Whitney Rocketdyne, Inc. Other companies such as Saturn Minerals Inc. and Westcore Energy Ltd. have also made discoveries of significant thickness of coal in the Hudson Bay area. Most companies active in the area are investigating the feasibility of using the coal for coal gasification or coal to liquids applications. DIAMONDS The combined Star-Orion South Kimberlite project is the most advanced diamond project in the province. The project is operated by Shore Gold Inc. (Shore) and is jointly owned by Shore and the Fort à la Corne (FALC) Joint Venture (JV). The FALC JV is made up of Shore’s 100 per cent owned subsidiary, Kensington Resources Inc. (66 per cent), and Newmont Mining Corporation of Canada Ltd. (34 per cent). On the project Shore has: completed exploration, signed First Nation and local community cooperation agreements, submitted an Environmental Impact Statement, and completed a full feasibility study. The study concluded that 34.4 million carats, at an average value of US$242 per carat, could be extracted from the probable reserves of 279 million tonnes of kimberlite, which has a weighted average grade of 12.3 carats per hundred tonnes. It is estimated that the proposed mine would have a 20 year

life and that total capital costs would be about $2.5 billion. RARE EARTH ELEMENTS (REE) At least four companies are currently involved in REE projects in the Zemlak, Beaverlodge, and Wollaston domains, and in the Athabasca Basin. Great Western Minerals Group (GWMG) has an advanced project at Hoidas Lake which contains combined Indicated and Inferred Resources of 2 560 835 t at 2.43 per cent total rare earth oxide (TREO) in the JAK Zone. GWMG is also currently evaluating its Douglas River project in the Athabasca Basin, where chip samples returned up to 8.75 per cent TREO comprising 99.9 per cent heavy rare earth oxide/TREO. Quantum Rare Earth Developments Corp. is evaluating its Archie Lake property in the Beaverlodge Domain, where old assessment work reports grades ranging from 1.5 to 29.2 per cent total rare earth elements. Eagle Plains Resources Ltd. and 99 Capital Corp. reported REE analytical results from their Kulyk Lake project, which contained TREO concentrations up to 55.9 per cent. Other companies are investigating the potential for REE associated with uranium deposits. For further information on mining and mineral exploration in Saskatchewan please contact: Jason Berenyi, P.Geo. Assistant Chief Geologist Saskatchewan Geological Survey Minerals, Lands, and Policy Division Saskatchewan Ministry of Energy and Resources 200-2101 Scarth St. Regina, SK S4P 2H9 (306) 787-2579 Jason.Berenyi@gov.sk.ca or Gary Delaney, Ph.D., P.Geo. Chief Geologist Saskatchewan Geological Survey Minerals, Lands, and Policy Division Saskatchewan Ministry of Energy and Resources 200 - 2101 Scarth Street, Regina, SK S4P 2H9 Ph: (306)787-1160 Gary.Delaney@gov.sk.ca. ✖

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20

2011-2012 Northern Prospector

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21


SASKATCHEWAN MINING ASSOCIATION

MINING:

Investing in Saskatchewan

By The Saskatchewan Mining Association

It’s shifting our national focus from central Canada to Saskatchewan, and attracting global interest. It bodes well for the coming decades in our province and our mining industry. It’s $43 billion – the cumulative projected investment in new mines and expansions in Saskatchewan over the next 20 years. Saskatchewan Mining Association (SMA) members were surveyed to determine projected and confirmed capital investments over the next 20 years, as well as the approximate value of new

mine output resulting from new investments, the number of jobs that would be created, and issues related to these expansions. The study concentrated on the exploration and extraction of 11 different resources including, coal, diamonds, gold, potash and uranium. “When we say mining is great for Saskatchewan, this report shows why,” says Pam Schwann, SMA executive director. “The well-being of our province is supported in many significant ways by the

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2011-2012 Northern Prospector

mining industry, and that will continue in the years ahead.” Schwann points to the analysis of 2008 which showed that the industry directly contributed $2 billion to provincial revenue to support government programs and services; this amounted to 20 per cent of the government’s total budgeted revenues. Approximately 15,100 additional workers will be needed in the mining industry in the next 10 years. As Schwann points


SASKATCHEWAN MINING ASSOCIATION out, “These are quality, long-term jobs, with about 120 different career options. This will be a real boon to communities that previously lacked employment opportunities, especially in rural and northern Saskatchewan. In 2009, employees living in northern Saskatchewan earned over $75 million. These are quality fulltime jobs. Compared to construction, for example, the average weekly salary for a Canadian mineworker was 58 per cent higher; in forestry, it was 59 per cent higher.” Amid this good news is the sobering reality that you have to go to the resources; they can’t come to you. To create mines, you need roads, power grids, air services, rail lines, water systems, communications and other infrastructure. As with any economic development strategy, government investment plays a key role in helping to develop the infrastructure that in turn attracts investment. This is especially important to the future vitality of rural and northern communities. Two key challenges to growth in the mining sector were identified as availability of power infrastructure and road infrastructure. In terms of road infrastructure, this means improving major transportation arteries – such as Highway 16 (Yelllowhead) particularly between Saskatoon and Lanigan, and northern Highways 102 and 905 – to accommodate increased industrial and commuter traffic. In terms of power infrastructure, secure, dependable baseload power is fundamental for the industry to operate and thrive. At Cameco’s Key Lake operation alone, it is estimated that the loss of operational capacity due to power outages has cost the equivalent of roughly $55 million in uranium production. This also translates into a corresponding loss in royalties paid to the Province of Saskatchewan and a loss of revenue to SaskPower. As Kelvin Dereski, past president of SMA and general manager of Mosaic Potash Esterhazy notes, “Companies making multi-billion investments in the Province, as our companies are doing, need to have the confidence that the required baseload power generation, transmission and distribution infrastructure will be in place to support their investments and operations. Consequently, the issue of a stable and secure power generation, transmission and distribution system is fundamental for the growth of our industry, and the growth of Saskatchewan.” In response, SaskPower has announced

an action plan spanning from 2010 to 2033, which includes record capital investments. Even with the challenges, the $43 billion prediction is attainable. Firstly, it is not based on just one resource, but rather a wealth of resources, each with its own market fluctuations. Secondly, companies and their investors will remain positive about Saskatchewan for good reason, despite concerns by some observers that the November 2010 ruling on the attempted buyout of PotashCorp has sent a negative message to the rest of the world. Another

reason is that mining is long-term, where patience is key and planning and development is framed in years and decades. In the mining world, twenty years is just around the corner. The prediction is something to be celebrated, wherever you live in Saskatchewan. Just as our resources are diversified, so are their locations. Be it coal in the southeast corner, potash in the central region, or uranium, gold, diamonds and base metals in the north – the benefits of these and other minerals could be realized more than ever before. ✖

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PROFILE

LEAVING NO STONE UNTURNED

Mike Muzylowski, Canadian Mining Hall of Fame inductee, caps off a memorable career By Melanie Franner

Mike Muzylowski can be described as a man who takes a shine to things right away. He is happily married to his childhood sweetheart, Lesia, and has four kids, all of whom he is mightily proud. At age 77, Muzylowski has travelled the world several times over and has reached dizzying heights in the Canadian mining industry. But, it wasn’t until he was at the University of Manitoba that Muzylowski first heard the word “geology” – a word that would eventually set the stage of his future career. A PAINFUL START While working on the family farm in Shoal Lake, Manitoba, Muzylowski was subject to the teachings of his father and older brother. He obediently picked out the larger rocks that dotted his family’s fields and when told that the smaller rocks also needed to be cleared – otherwise they would grow into larger ones – set to the task with a fierce determination.

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2011-2012 Northern Prospector

“I had nothing but respect for my father and brother,” he recalls, laughing at how the story would come back to haunt him. When Muzylowski got to university, he was told to pick an additional course to round out his studies. “The one word I didn’t recognize was geology so I said ‘Sign me up for geology’.” A couple of weeks into the course saw Muzylowski and his classmates on a field trip exploring some of the local geological formations firsthand. The group visited Stonewall and then Stony Mountain. “When we went to Stony Mountain, I saw this big stone sitting above the ground, so big that it had a building on top of it,” remembers Muzylowski. “I was awestruck.” Later that day, the geology professor asked his students to write a treatise on how the rock formations came to be. Muzylowski recalls that his treatise was short and to the point. “I wrote about how the stones on our farm grew larger unless they were removed right away,” he says. “And then I said that if it were up to me, I would have removed that stone before it had the chance to grow to that size.” NEW BEGINNINGS Despite the rough induction into geology, Muzylowski pursued his love of the science and eventually saw himself immersed in the mining industry. It was in 1970 while working at Hudson Bay Mining and Smelting that he got the phone call that he attributes to changing his career. “I was working in Flin Flon,” he says. “The operator called and asked me to hold for a call from Stockholm. I thought it was a joke because I didn’t know anyone in Stockholm.” That call soon led to Muzylowski accepting a leadership role in Vancouver for a company called Granges Exploration. He would spend the next 23 years there before a change in ownership ended with a “Golden Handshake.” After coasting a bit, Muzylowski signed on as a Director with Callinan Mines. By June of the following year, he was President. Callinan recently split into Callinan Royalties Group and Callinex Mining Inc. Muzylowski remains a Chairman of the former and President and CEO of the latter.] A SPECIAL TRIBUTE Muzylowski estimates that during his career, he was a member on various teams that collectively created $50 billion or more through mining exploration – not bad for a farm boy from Shoal Lake. When he first heard about his nomination into the Canadian Mining Hall of Fame, Muzylowski initial thought that he was too busy finding new mines. Since then, he admits that his feet are still floating on air. “When I started out in this industry, I knew that I was strong and hard working,” concludes Muzylowski. “I had no inkling whatsoever that I would end up in management. I just went with the flow.” ✖


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PROFILE

A tribute to

Fred Heidman By Steve Masson

Fred Harris Heidman was one of a kind; the last of the old time Mining Recorders and greatly respected by all in our industry. He was a tireless worker for the exploration industry, always willing to do what he could and at the same time bringing a sense of optimism. He played an integral part of the development of Manitoba’s mineral wealth during his tenure as claim inspector and Mining Recorder. All of us at the Manitoba – Saskatchewan Prospectors and Developers Association are truly saddened by Fred’s untimely and sudden death in July of 2011. He was a helpful, encouraging, honest and a dear friend to all who made our business in staking and holding mining properties. In his many years he developed many close friendships. The old timers, who knew him well, knew he had the best for our industry in his heart and a personal touch that set him apart from all others. The younger ones of us were amazed at the depth and breadth he brought to solving issues. To the prospector he was a trusted friend who was there to help, not hinder. When he left the Mines branch we all knew it was the end of an Era where a mining judge who knew the Mining Act and knew the regulations could direct a situation at all levels so that justice not only prevailed but was expedient. He gave us that and more. His stories of life in the bush and about long gone prospectors and old showings brought them alive, almost as if we were sitting around some long ago camp site fire or trench with prospectors, smoking their pipe or sharing the dream of riches just a little further below. He made us want to lace on our boots and grab our pick, axe and packsack, just to see what had so fired the old-

Fred at the “First Pour” of gold from the New Britannia Gold Mine.

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2011-2012 Northern Prospector

Fred staking a mining claim. (quote “Between you and I and the No. 1 Post”)

timers imagination. He had that effect. We too began to plan and dream of the next prospecting day where we could again explore, maybe find what they might of missed, or better, what was lost in time and memory. Many an old record, map or report he would bring out, and it held its own magic that begged us to seek “was there more.” In many a phone call he would remind a prospector and Company that a claim may be coming due, and if was not already done, that they had time to still act to keep it. That exists no more. Fred was raised in Toronto Ont. but as a child always had an interest in mining exploration. Fred spent a year in Dawson City, Yukon in 1956, where he worked on the gold dredges just before they quit operating. One of those gold dredges still bears his name carved into the wall. Fred told stories of while working on the dredges they would run into ivory tusks of Mammoths. They were so plentiful, all they did was stop the dredge to cut them out of the way and then continue the dredging. It was there he caught the romance of the industry and the bug of looking for buried treasure. He also learned to love the north. While in the Yukon Fred became a big fan of Robert Service, whose poetry was of prospectors and their experience during the gold rush. Fred would often, in his phone calls or in quiet company, recite Robert Service’s poetry by heart. One portion of a Robert Service s poem he recited often was: “you will find a tattered tent-pole with a ragged robe below it; You will find a rusted gold-pan on the sod; You will find the claim I’m seeking, with my bones as stakes to show it; But I’ve sought the last recorder, and He’s –God” Fred started his real mining explor ation in Red Lake Ont. where


PROFILE

Fred loved all outdoor activities, including fishing, where he would paddle the Mystic Creek chain of lakes to a special lake he only referred to as, “Secret Lake marked X” on the map in his heart.

Fred helping a prospector after his retirement.

Fred in his office in The Pas.

he held and prospected his own claims. He also took on claim staking and line cutting contracts. He left Red Lake and went to The Pas in 1972 as the mining claims inspector and in 1979 was promoted to the Mining recorder. He made many good friends with people in the mining industry. It was said many times that people in the mining industry liked Fred as mining recorder. “When you went into his office Fred knew what you wanted because he was had been on that side of the fence before.” Fred always had a special place in his heart for the prospector [the little guy ] He would go the extra mile to help him out; he was more than happy to grab his axe put on his snowshoes and help the guys out when ever needed. Fred retired at 65 in Sept. 2000. He spent much of his retirement at his cabin at Rocky Lake. Fred loved all outdoor activities, including fishing, where he would paddle the Mystic Creek chain of lakes to a special lake he only referred to as, “Secret Lake marked X” on the map in his heart. With a smile and a gleam that comes from a life he loved and that he shared with his wife Anita, his children and grandchildren. Moose hunting was a favourite with son Warren where Fred the seasoned Moose caller would often bring the moose in for Warren to have first crack at a shot. Later with son Steven deer hunting became a passion. Fred always had time for a story or a joke, but what I personally remember most is how he set fire to your imagination with prospector tales of discovery and staking rushes. His enthusiasm was contagious and carried many prospectors through some down times in our industry-not to lose hope- he had seen the cycles all before. Today his son Warren carries on a portion of that legacy as one of Manitoba’s prominant claim-stakers and bushman. Fred was truly a remarkable man. We shall truly miss him and we shall not forget the legacy he left or the good personal times we shared with him. To quote Fred as he would often say when he attending the funeral of an old prospector and friend “I will meet you at the end of the Portage my friend”. ✖ Northern Prospector 2011-2012

27


SNOW LAKE GOLD COUNTRY’S RECREATIONAL PARADISE

Snow Lake looks forward to a prosperous several years By Beverley Atkinson, Community Development Officer, Town of Snow Lake

HudBay Minerals’ Lalor Lake Project has catapulted Snow Lake to a booming future. Along with Alexis Minerals gold exploration in anticipation of reopening the Snow Lake Mine, exploration companies working long hours and finding a treasure trove of minerals, and new businesses such as Bac Tech Environmental Corporation building a bioleaching plant, it’s tapping all local resources to meet the demands. The construction at the new Lalor zinc mine is well under way, with an additional capital expenditure investment of $144 million to build a new concentrator and paste backfill plant at Lalor instead of refurbishing the company’s existing Snow Lake concentrator. The high quality and large mineral deposit at Lalor encouraged this additional investment, and initial production is planned for the second quarter of 2012. The current operating Chisel North mine is expected to reach the end of its mine life in 2012. 28

2011-2012 Northern Prospector

The Lalor shaft to the Chisel North mine will be completed in early 2012, and further exploration will then determine the gold, other precious metals and copper deposits. With anticipated gold deposits, the Lalor mine project has a predicted life of thirty years. VMS Ventures Inc. and HudBay Minerals Inc. have a joint venture on four properties in Snow Lake area, namely Super Zone, Northeast, Northwest and Tower. VMS also has wholly owned property where they are conducting exploration. Housing has become a huge challenge in Snow Lake, and the town is purchasing new residential, commercial and industrial property from the province. Most residential lots are now developed. All municipality owned town and cottage lots have sold, and there is just one private lot for sale. Currently, there are no apartments available, and only a few houses for sale. As well, most of the mobile home lots have been rented.


With the much appreciated support of HudBay Minerals and the federal and provincial governments, the new state-of-the-art wastewater treatment plant will be completed in the spring of 2013. The new plant will allow development of new residential and cottage subdivisions to house the predicted 600 new workers that will be needed by Lalor and other mines. This number does not include service workers that will be required by restaurants, gas stations and new businesses that will evolve as Snow Lake’s population is expected to double. A new water treatment plant was completed in 2006. Bac Tech Environmental Corporation has won the contract for tailings reclamation of the old Nor Acme arsenopyrite stockpile in Snow Lake using bioleaching technology to stabilize the high levels of arsenic and reclaim the gold contained in the stockpile. Construction of the plant is anticipated to begin in 2012, and the predicted project life is six to seven years. To meet the demand for new housing, in the next few months construction is scheduled to begin on privately owned condo units and a life lease apartment building. Snow Lake’s Twenty Year Sustainable Community Plan, which won the 2010 Manitoba Municipal Excellence Award in the sustainable plan area, is a valuable guide to orderly extensive residential, commercial and industrial development which will take place in the coming years. New infrastructure will change the face of Snow Lake, but it is eagerly anticipated by residents. The town was built because of mining, and they can see the future of their town will be secure because of mining. For more information visit www.snowlake.ca or contact: Beverley Atkinson Community Development Officer Town of Snow Lake Box 40, Snow Lake, Manitoba R0B 1M0 Phone: (204) 358-7630 Fax: (204) 358-2112 Email: snowlake_cedo@mts.net. ✖ Northern Prospector 2011-2012

29


SNOW LAKE GLITTERING COLD

Alexis Minerals continues with their Snow Lake mine

The Snow Lake mine, wholly-owned by Alexis Minerals, is proudly located within the community of Snow Lake, Manitoba and can be found 685 kilometres north of Winnipeg. The former producing mine was taken over by Alexis through the purchase of Garson Gold in April 2010. This historic mine was in operation from 1949 to 1958 and then from 1995 to 2005 with recorded production of over 1.44 million ounces. Since then, the project area has been expanded to cover almost 4,840 hectares. The Snow Lake property is road accessible from Winnipeg, the provincial capital of Manitoba. The major population centres for the region are Flin Flon to the west-southwest of Snow Lake and Thompson to the northeast. The topography and physiography are typical of the pre-Cambrian shield in Manitoba, consisting of low rolling hills composed of bedrock outcroppings. The climate is generally cold, but the operating season is year round with the usual winter storms which are common in the northern portions of Canada. One of the main structural features of the Snow Lake property is the north-northwest trending McLeod Road Thrust fault. The McLeod Road Thrust fault is the structural break that occurs between the metavolcanic (Amisk Group) and metasedimentary (Missi Group) assemblages and defines the western extent of the deposit on the property. The current feasibility report suggests that production from the Snow Lake mine could be over 80,000 oz a year for five years. As 30

2011-2012 Northern Prospector

of December 2010, current measured and indicated resources are approximately 728,000 oz and inferred resources are 336,700 oz. This makes the Snow Lake mine an important asset to Alexis as the company continues to explore the area. Of particular interest, are the #3 Zone and the Main Mine Zone. Recent drill results from these areas suggest that there is additional mineralization between these zones that are of interest. The company also plans to drill many of the nearby zones at Snow Lake, including the Boundary, Kim, Caper and Birch. A new team has been mobilized to undertake a regional exploration effort which should lead to a better understanding of the potential in the area. In addition to exploration activities, the company is also ramping up to restart production. The infrastructure at the Snow Lake mine includes a fully-permitted 2,000 tonne per day modern mill and tailings facility, and associated plant, and equipment. The mill was built in 1995 by the Kinross/High River Gold joint venture as the New Britannia Mine and operated until 2005–the mill remains in excellent condition. The ore bodies continue to be accessible through the Main Mine shaft and the #3 Zone ramp. Alexis currently maintains all permits and environmental licenses. In January of 2011, Alexis appointed a new President and CEO, Francois Perron. Perron was most recently the President and CEO of Golden Goose Resources. Following Perron’s appointment, Alexis also appointed Gerald Thornton as Vice President, Operations (Man-


SNOW LAKE

itoba) to oversee the Snow Lake operations in April of 2011. Alexis feels that using a decentralized approach to managing its properties will better position the efforts of the company. Commenting on the Snow Lake mine, Perron said: “The Snow Lake project is now at the point of nearing the production decision; current efforts are centered on the finalizing of the project financing, building the team to deliver a mine as outlined in the feasibility study, and the evaluation of several opportunities to further optimize our plans. These efforts, enriched by our operating experiences, should provide for a project that will unlock significant shareholder value.” Alexis also holds assets in some of Canada’s richest mining regions — Val-d’Or & Rouyn-Noranda, Quebec with over 1,000 square kilometers of property. Gold production is a priority as Alexis is targeting growth in gold production levels reaching an annual rate of production of approximately 100,000 oz by the end of 2013. ✖ 32

2011-2012 Northern Prospector


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33


SNOW LAKE BUGGING OUT BacTech Environmental Corp. is using bioleaching technology in Snow Lake

In late 2010, the Mines Branch of the Manitoba Department of Innovation, Energy and Mines issued a Request for Proposal to clean up a 60-year old stockpile of arsenopyrite concentrate located in the community of Snow Lake, Manitoba. This pile was created in the 1950s as a by-product of gold production from the Nor Acme Mine. The refractory nature of the ore and its high arsenic levels prohibited the processing of the concentrate using conventional smelting methods. After the Nor Acme Mine shutdown in 1991, the province was left with a 250,000-tonne stockpile associated with numerous environmental and health concerns. Acid Mine Drainage and the leaching of arsenic and other metals into surrounding areas was beginning to affect the health and quality of nearby soils, vegetation, sources of water and communities. For over 50 years, both the community of Snow Lake and the province of Manitoba have been waiting for a technical breakthrough that would remediate the stockpile, recover the valuable gold and prevent future contamination from occurring.

34

2011-2012 Northern Prospector


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LOCATIONS Manitoba Snow Lake Mine Quebec Lac Herbin Mine sĂůĚ͛KƌĂŵƉ ZŽƵLJŶͲEŽƌĂŶĚĂĂŵƉ CONTACT INFO dŽƌŽŶƚŽKĸĐĞ͗ Tel:нϭϰϭϲϴϲϭͲϱϴϵϵ DŽŶƚƌĞĂůKĸĐĞ͗ Tel:нϭϱϭϰϲϲϳͲϮϯϬϰ Email:ŝŶĨŽΛĂůĞdžŝƐŵŝŶĞƌĂůƐ͘ĐŽŵ Alexis Minerals Corp. ϲϱYƵĞĞŶ^ƚƌĞĞƚtĞƐƚ͕ ^ƵŝƚĞϴϮϱ dŽƌŽŶƚŽ͕KŶƚĂƌŝŽ Dϱ,ϮDϱ FIND US ON

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2011-2012 Northern Prospector

OUR BUGS EAT ROCKS In April 2011, BacTech Environmental Corp (BacTech), a Canadian cleantech company currently listed on the Canadian National Stock Exchange (CNSX: BAC), was awarded the contract to recover payable metals for its own account from the stockpile while treating the contained arsenic. BacTech will use its commerciallyproven proprietary bioleaching technology to eliminate the source of Acid Mine Drainage and stabilize existing arsenic values into a benign form. The ability of the bioleaching process to liberate the contained precious and base metals allows BacTech to provide a long-term remediation solution at no cost to the government, taxpayer or community. In fact, BacTech will pay a royalty to both the provincial and municipal governments as an added benefit. BacTech’s interest in the project stems from test work completed in 2010 whereby bioleaching technology was determined to be well suited for the stabilization of the high levels of arsenic in the stockpile. This will be the first commercial bioleach facility in North America.

“This is a major step forward for BacTech as we position ourselves as a leader in the field of tailings reclamation. It is a highly visible project whose success could lead to bioleaching playing a prominent role in future clean ups in North and South America.” – Ross Orr, President & CEO


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Our Bugs Eat Rocks! BIOLEACHING A Game Changing Technology in the Tailings Reclamation Industry BacTech Environmental Corporation, a junior Canadian clean tech company currently listed on the Canadian National Stock Exchange (CNSX: BAC), has developed and commercialized its proprietary bioleaching technology to remediate abandoned mine tailings. Bioleaching employs the use of naturally occurring bacteria, harmless to both humans and the environment, in reactors (tanks) to liberate precious and base metals from difďŹ cult to treat ores, concentrates and tailings. The bacterial process, which occurs under optimal operating conditions, works by oxidizing sulphides, the primary source of Acid Mine Drainage, and stabilizing toxic heavy metals into benign compounds. Thus, BACOX bioleaching addresses several tailings-related environmental issues at once, while generating revenue that can effectively fund the remediation process. Construction will soon be under way in Snow Lake, Manitoba for the ďŹ rst ever bioleaching plant in Canada (and North America). This project, with the ability to process over 100 tons/ day, will remediate a 50-year old arsenopyrite stockpile that was handed over to the province of Manitoba after the original company went bankrupt. In the long run this bioleaching plant will be able to process a wide range of tailings and other stockpiles from around the area, thus providing a cost-effective remediation alternative that will be applied to other mining-affected regions in Canada and the United States.

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2011-2012 Northern Prospector

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SNOW THE STOCKPILE Based on recent assay results from a sonic drill program, the stockpile is estimated at approximately 250,000 tonnes with an average grade of approximately 9.6 grams per tonne of gold. This is a confirmation of the historic data provided by the Manitoba Mines Branch in the Request for Proposal. The stockpile is six metres to 10 metres high and encompasses an approximate area of 19,500 m2. Conceptually, the plant may also have value in being capable of treating other refractory type gold and base metal concentrates in the region, and efforts to incorporate this concept may be made at the design stage. If the concept is incorporated as part of the project plan then, clearly, this adds additional value to the project in creating a regional bioleach facility for treating other materials. ✖

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Northern Prospector 2011-2012

39


HUDBAY MINERAL INC.

Optimized for success By John Vincic

HudBay Mineral Inc.’s fully-owned Lalor project is on a fast track to become HudBay’s next major underground mine. The Lalor project helps affirm HudBay’s already strong, five-year production profile from our three large-scale, long-life assets. Copper production is now expected to increase by 155 per cent over the next five years while gold production is projected to increase by 105 per cent and zinc production by 60 per cent. The Lalor project is located in the Chisel Basin of the Flin Flon Greenstone Belt (FFGB), a prolific zinc-copper-gold region in northern Manitoba where several other mines have been developed. Intense exploration has identified separate and distinct zinc, gold and copper-gold zones since Lalor was discovered in March 2007. Based on current data, Lalor is estimated to hold the second-richest metal deposit ever discovered in the FFGB. Lalor also has the strategic advantage of being only three kilometres from HudBay’s existing Chisel North mine. Because of its close proximity to Chisel North, HudBay’s board of directors approved funding for the construction of an underground threekilometre ramp from the Chisel North mine to Lalor in October 2009. Progress on the planned 3,200 metre access ramp at the Lalor project continued during the quarter and is now close to 2,500 metres since the start of the project in December 2009. The ramp remains on track to be completed in the second quarter of 2012. HudBay expects to complete the ramp to the 810 metre below surface level with multiple headings by the fourth quarter of 2011 and the company plans to reach the ventilation shaft site in the first quarter of 2012. HudBay will then start diamond drilling from underground and proceed to the main production shaft location. 40

2011-2012 Northern Prospector

In August 2010, HudBay made a full commitment to the development of the Lalor project by authorizing the $560 million capital expenditure necessary to put the project into full production. The go-ahead decision was based on the resource identified to date and estimates of potential grades and quantities of the gold zone and copper-gold zone, along with other available information such as cost estimates and portions of the engineering design, which had been completed to a level suitable for the feasibility study. In addition to making a construction decision at Lalor, the company also began trade-off studies to determine whether to refurbish the existing Snow Lake concentrator or whether to construct a new concentrator at the mine site makes more economic sense. HudBay completed those studies in July 2011, which supported an enhanced production rate of 4,500 tonnes per day made possible by the construction of a new concentrator and paste backfill plant. These improvements are expected to increase the company’s overall capital expenditure investment by $144 million for a total of $704 million, which includes approximately $120 million spent to date. “The new concentrator, with a higher production rate and related efficiencies, together with a paste backfill plant, is expected to allow for an extended mine life and enhance the economics of the Lalor project,” says David Garofalo, president and chief executive officer. The decision to build a new concentrator and paste backfill plant changed certain assumptions made in HudBay’s preliminary economic assessment with respect to Lalor, as disclosed when the company announced its full commitment to the project on August 4, 2010. These changes are outlined in the table below:


HUDBAY MINERAL INC. Optimized Lalor

Lalor – Aug. 4, 2010

Construction CAPEX

C$ 704M

C$ 560M

Annual Sustaining CAPEX

C$ 22M

C $15M

Production Rate

4,500 tpd

3,500 tpd

Mining Costs

$36 per tonne

$56 per tonne

Milling Costs

$16 per tonne

$24 per tonne

Metallurgy

95% Zn 86% Cu 66% Au 60% Ag

95% Zn 90% Cu 80% Au 75% Ag

“Because of the high quality of the Lalor deposit, we pursued a fast-track commitment to Lalor in August 2010, which was based on the robust economics that were achievable from refurbishing our existing concentrator,” says Garofalo. “However, Lalor is a large enough deposit to support a new, dedicated concentrator, and we are pleased to commit to a further investment in the future of our Manitoba operations.” In addition to advancing the Lalor project toward production, HudBay is conducting extensive exploration at Lalor, which remains highly prospective and underexplored. Exploration in 2010 indicated significant potential for additional gold mineralization at Lalor and raised the possibility of discovering new gold and copper-gold zones and extending existing zones. It also confirmed the continuity of the copper-gold zone, which remains open down plunge. “We will continue to drill from surface in 2011 to evaluate opportunities along strike and the periphery of the deposit,” says Garofalo. “We also intend to conduct extensive underground exploration at Lalor, including definition drilling on the gold zone and copper-gold zone, when ramp access to the deposit has been completed.” The Lalor project’s development and site construction are proceeding on schedule. Initial production from the 3,200 meter access ramp is scheduled in the second quarter of 2012 and commissioning and first production from the 985 meter production shaft and new concentrator are anticipated in late 2014. The construction of the new 4,500 tonne per day concentrator is expected to begin in early 2013 and is scheduled for completion in late 2014 to coincide with the completion of the production shaft. Further production optimization from Lalor is expected as HudBay optimizes precious metal recoveries and also study the possibility of using more of the production shaft, which will have a total capacity of 6,000 tonnes per day. HudBay believes further metallurgical testwork is warranted before finalizing the design of a precious metal recovery process with the new concentrator. Once HudBay gains underground access to Lalor in 2012, the company will also be able to support this analysis with actual ore production from the gold zones at Lalor. By waiting on a decision, HudBay preserves its optionality without jeopardizing the ability to maximize precious metal recoveries by the time we reach peak gold production at Lalor. The combination of location, exploration results and mine development timing, attach high strategic significance to Lalor. The now optimized Lalor project further strengthens an already compelling investor proposition for HudBay with additional production upside over the next five years still to be defined from exploration and precious metal recovery optimization. These attributes make Lalor an extremely attractive development project and HudBay’s top priority. ✖

“We will continue to drill from surface in 2011 to evaluate opportunities along strike and the periphery of the deposit,” says Garofalo.

Northern Prospector 2011-2012

41


MEGA PRECIOUS METALS

REALIZE THE POTENTIAL

Mega Precious Metals Inc. moving up in the mining world Mega Precious Metals Inc. (Mega), headquartered in Thunder Bay, Ontario, is committed to an accelerated growth strategy and has selected their projects based on defined economic goals and is strategically working to advance their projects to create shareholder value. Mega’s focus on rapidly growing gold resources has been successful in delineating measurable value on their properties in northern Manitoba and Red Lake, Ontario. The mining and exploration background of Mega’s management and the board coupled with their “get it done” attitude has ensured continued resource growth, and will assist with the realization of the goal to attain positive cash flow from all operations, making Mega an undervalued company with excellent upside. WORKING TOWARD PRODUCTION Mega’s most advanced project is the 100 per cent owned Monument Bay project located 570 kilometres northeast of Winnipeg, and 340 kilometres southeast of Thompson, Manitoba. On June 27, 2011 Mega announced a 47 per cent increase in the gold resources at Monument Bay. The deposit, that spans less than four kilometres of the 25 kilometre length, is now estimated to contain NI 43-101 compliant Measured Resource of 221,510 tonnes grading 12.48 g/tonne, plus an Indicated Resource of 2,199,100 tonnes grading 7.12 g/ 42

2011-2012 Northern Prospector


MEGA PRECIOUS METALS

tonne, plus Inferred Resources of 6,147,000 tonnes grading 6.01 g/tonne using a 3.0 g/tonne cut off grade. Previously (February 1, 2009), the deposit reported an Inferred Resource of 6,300,000 tonnes grading 5.98 g/tonne at a 3 g/tonne cut off grade which equates to 1,294,999 contained ounces. The updated report of June 27, 2011 represents the addition of resources in the Measured and Indicated categories. Summer / fall 2011 Mega will conduct a 15,000 metre drill program designed to extend known mineralization and upgrade current inferred resources into the measured and indicated categories. In order to maximize the addition of near surface, potentially bulk mineable Measured and Indicated Resources, the majority

of the program is focused on the Western corridor of the deposit. This corridor, including the “Burn Zone” is at least 3,000 metres in strike length, > 50 metres wide, upwards of 900 metres in depth and hosts nine of the 19 mineralized structures. All of the drilling Mega has completed to date continues to deliver robust widths, grades and significantly expand the mineralization. Furthermore, Mega believes that ramp access mining the top 500 metres of the deposit may yield > 2,000,000 ounces of gold. Conceptually, this has the potential for a 20-year mine life at a production rate of 100,000 ounces per year, at a target cash cost of less than $600 per ounce. Mega’s long term plan is to review the entire 375 square kilometre property for additional

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Tron Power Inc. was established by the Des Nedhe Development Inc., on behalf of the English River First Nation through the acquisition of the assets and senior management of a successful Saskatchewan-based construction company, Tron Power Ltd. in 1997. Tron Power’s management team will continue its commitment to providing excellent services and developing the northern workforce under the guidance of the English River First Nation Chief and Council.

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Northern Prospector 2011-2012

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MEGA PRECIOUS METALS for Q1, 2012, with advanced exploration development and test mining.

targets. However, the goal of the current 2011 program is to outline sufficient near surface measured and indicated resources to demonstrate positive economics for combined bulk surface and selective underground mining operations. The ad-

dition of near surface bulk mineable material could potentially double the target production rate to 200,000 gold ounces per year. The project remains on track for an upgraded resource in late 2011, and Preliminary Economic Assessment (PEA)

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2011-2012 Northern Prospector

UNTAPPED POTENTIAL OF RED LAKE GOLD CAMP Mega’s North Madsen property, located in the prolific Red Lake Gold Camp, lies within the Madsen Mine Trend, home to five past producing mines. Mega believes that the property is part of a much larger gold system that encompasses the adjacent Howey, Hasaga and Gold Shore mines. Red Lake has produced more than 25 million ounces of gold to date and continues to produce approximately 700 thousand ounces of gold per year from the district’s production base at Goldcorp’s Red Lake Gold Mine. When compared to other camps, Red Lake is a young and developing camp where consolidation and improvements to processing technology, and “big picture” economics will improve margins and drive future success. Diamond drilling to date has outlined a total of seven mineralized structures that host three different styles of mineralization. In June 2010, Mega released an NI 43-101 resource on the first of these mineralized structures, the “Laverty Dyke Zone.” The 2011 program has significantly expanded the Buffalo Extension mineralization both laterally and vertically. Continued exploration success on the project has indicated that the deposit remains open in a number of directions, highlighting the potential for additional resource expansion on four of the seven mineralized structures. Summer gold results on the Buffalo extension include 31 metres at 4.4 g/t, eight metres at 2.15 g/t and 16 metres at 1.65 g/t. Recently Mega completed an updated NI 43-101 resource that included the Laverty Dyke Zone and six other mineralized structures located within the project. Highlights of the updated mineral resource estimate include: • A >2,700% increase in Measured and Indicated resources to 937,167 ounces; • A >11,000% increase in Inferred resources to 379,026 ounces; • Some 85% of the Measured and Indicated resource ounces are categorized as Measured; • Sensitivity analysis indicated robust economics, excellent potential to improve resource grades at lower gold prices and higher cut off grades; and • Resources remain open at depth and along strike; Additional targets not currently included in this resource estimate will be followed up this winter and the potential for further resource additions in nearby areas is excellent. Mega’s exploration model and business plan for the North Madsen Project, which is based on Mega’s President & CEO, Jim


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MEGA PRECIOUS METALS

Rogers’ belief that the future of Red Lake will include open pits and a large central milling facility, is consistent with that of Goldcorp who during their May 20, 2010 Investor Day presentation discussed “District Optimization” and confirmed the evaluation of a Red Lake (Balmertown) open pit as a strategic priority. Based on Mega’s 2011 results and ongoing delineation of potentially pittable resources at North Madsen, Mega believes that near term production from a smaller facility located at the project would be economic, but that a larger scale operation that

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2011-2012 Northern Prospector

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incorporates partnerships with adjacent land owners could have greater value for all participants. HIGH GRADE POTENTIAL EXPLORATION Mega’s Headway property abuts Goldcorp’s Red Lake Gold Mines southern border, and lies just two kilometres south west of the Goldcorp “High Grade Zone.” The Headway program is based on the presumption that the Red Lake Gold Mines mineralized horizon continues down plunge to the south west within the deep rooted north east extension of the Madsen Trend. The property appears to have all of the essential geological elements including a well-developed intersection pattern of stratigraphic, shear/ deformation zones that are associated with the high grade gold system on the adjacent mine properties. The Bonanza Replacement High Grade Zone is postulated to be hosted in Balmer age rocks occurring below the unconformity with the Confederation age rocks at 1,500 to 2500 metres deep. The range of diamond drill intercepts carried out under NI-43101 compliant guidelines by King’s Bay in 2005 include, 63.52 g/t over 0.5 metres and 3.08 g/t over 10.8 metres. Highlights of historical, none NI-43101 compliant exploration includes 0.61 oz/ton gold over 3.08 feet in drill core (H-13) and several surface grab

samples exceeding 1.0 oz/ton gold. Gold is developed within quartz-carbonate +/tourmaline +/- arsenopyrite veins associated with quartz-feldspar porphyry dykes that intrude altered and sheared mafic volcanics. These quartz-feldspar porphyry dykes are deep-seated structures that are intruded during the late stages of ore emplacement. This is evidenced by their structural relationships adjacent to and within the “ESC” and “High Grade” zones of Red Lake Gold Mines. Deep drilling technology is allowing Mega to explore for the high grade, bonanza, replacement-type zones below the unconformity, in the underlying Balmer Rocks. Based on drilling to date, the Headway Geological Model has been confirmed and Mega continues to be committed to extending the deep drilling to test the projected high grade target horizon. This model for exploration is similar to that recently utilized by Gold Eagle Mines that resulted in the discovery of the Bruce Channel deposit in Red Lake. REALIZE THE POTENTIAL Mega Precious Metals in an attractive prospect for investors looking for a junior with a mix of projects to provide limited downside risk and multiple upside opportunity. Mega trades on the TSX Venture, under the symbol MGP. For further information call Jim Rogers, 807-766-3380, or visit www.megapmi.com. ✖

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Northern Prospector 2011-2012

47


VALE

FOR YEARS TO COME Vale’s three keys to success in Manitoba

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48

2011-2012 Northern Prospector

Five years have passed since Vale set roots in Canada. In that time the company has demonstrated, through numerous financial and social investments, that it’s Canadian operations are key to the company’s global success. The company is crystal clear about its definition of success: it wants to be the biggest and the best, which means not only owning market cap, but also leading the industry in areas such as safety, sustainability and innovation. Recent actions, like capital investment announcements, aggressive exploration and the formation of new community partnerships, affirm that the Thompson Nickel Belt, in particular, is integral to achieving the company’s global vision. Despite recently announced changes to the operation (it will transition to mining and milling only by 2015) Manitoba Operations remain a prominent arm of Vale’s Canadian business. FIRST: AN INVESTMENT PLAN TO MATCH FUTURE AMBITIONS In November 2010, Vale announced an unprecedented $10 billion investment package in its Canadian operations, most of which will be spent by 2015. A portion of this investment plan is earmarked for the development of a 1-D, a new mine in Thompson. 1-D is approximately 4,200 feet underground and four miles north of the main plant site. The overall 1-D mine plan includes several areas that contain more than seven million tons of reserves containing an estimated 500 million plus pounds of nickel. “1-D is now in the later stages of Vale’s comprehensive evaluation and study phase. We know the ore is there, and we’re now determining the best way to access it” explains Lovro Paulic, one of three general managers for the Manitoba Operations. “By considering this massive investment in a new mine development project, Vale has shown it is keen on Thompson and is committed to operating in the area for the long-term.” According to Paulic, other investments in the operations include upgrades to the mill in the order of about $150 million, as well as new training and technology initiatives for the mines. “We have a bright future in mining and milling in our Manitoba Operations. The investments we’re making and planning for


VALE will serve us well for the long-term,” he says. SECOND: INVESTING BEYOND OUR OPERATIONS Vale’s investments in community initiatives and organizations within Thompson suggest that it is a company that measures its business strength not only on production and profit, but on the strength of the community it is a part of. In May of this year The City of Thompson and Vale together announced the launch of an economic diversification Working Group to advance initiatives to broaden and strengthen the economic base of the City of Thompson and the broader region. Also in the spring of 2011, Vale announced yet another $1.5 million contribution to the Thompson Regional Community Centre, bringing its total investment to $3 million. Vale is a community partner of choice in Thompson, making investments in the organizations that strengthen the future of the city. “Vale’s support helped us provide a safe supportive environment for children of Thompson over the Summer Holidays,” explains Aaron Sauve, the drop-in director at the Boys and Girls Club of Thompson. And, Grant Kreuger, Technical Vocational Coordinator for the Frontier School Division also speaks to the value in partnering with Vale. “Vale’s partnership helped us to plan future expansion into all of the mechanical trades at our Northern Technical Training Centre in Cranberry Portage,” he states. Stu Waring, another general manager for Manitoba Operations, points out that “investing in the programs that bolster our community is a must – the people and the businesses that make up our community are critical to our success, and playing an active role in the well-being of these individuals and groups is paramount.” THIRD: INVESTING IN OUR PEOPLE Vale’s national and worldwide commitment to safety is truly showcased in Thompson. Manitoba’s Birchtree and T1 mines tied for the 2010 John T. Ryan National trophy, awarded annually to Canada’s safest mine. “Nothing is more important than safety,” Waring affirms. “It is the company’s top priority to invest in the systems and processes that ensure every employee goes home safe at the end of their shift.” While the Ryan trophy recognizes safety performance specific to the mines, Vale established new standards of safety excellence across the breadth of its Thompson operations last year. Taken together, the mines, mill, smelter and refinery im-

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VALE proved their combined disabling injury from a frequency rate of 7 in 2000 to an all-time low of 0.7 in 2010. Vale attributes these achievements to the introduction of SafeProduction – a safety program adopted in Thompson in 2003 as a joint initiative of management, the United Steelworkers Union Local 6166 and employees. Waring, who oversees the mines explains that “there are 500 or so employees working at T1 and Birchtree mines and this award spoke to their commitment to SafeProduction. Our employees, and their efforts, are embodying the company’s objective to operate the safest mines in Canada, and the world.”

City of Thompson Mayor, Tim Johnston, accepts a $1.5 million donation to the Thompson Regional Community Centre from Vale executives Steve Wood, Vice President, Mining and Milling, North Atlantic Region (L) and Lovro Paulic, General Manager, Smelter and Refinery, Manitoba Operations (R)

PUTTING IT ALL TOGETHER In the past five years, Vale has demonstrated a resolute determination to secure its long-term presence in Thompson, to be an engaged member of the Thompson community and a proponent for its employees’ well-being. The city continues to offer high-quality service providers, skilled employees, rich ore deposits and a landscape and quality of life second to none, making it an ideal place for Vale to conduct business successfully; today and for years to come. ✖

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2011-2012 Northern Prospector


VICTORY NICKLE

FULL STEAM AHEAD Victory Nickel Inc.’s Minago Nickel Mine Project has been given the green light

The road to building a mine is a long and sometimes bumpy one. Some of the steepest hills involve exploration, completing a feasibility study and permitting. Over the past several years, Victory Nickel Inc. (TSX: NI) has successfully scaled these hills and more, successfully delineating and permitting one of Canada’s largest undeveloped sulphide nickel deposits at its 100 per cent owned, royalty free, Minago project. Now financing and building a mine are the next steps. Located 255 kilometres south of Thompson, Manitoba on that province’s prolific Thompson Nickel Belt, Minago has not only a large known nickel resource but substantial exploration upside, tremendous added value in a hydraulic fracturing (“frac”) sand by-product from the deposit and excellent infrastructure. The involvement with Minago goes way back, back further than even the history of Victory Nickel itself. Nuinsco Resources Limited (TSX: NWI) purchased the Minago property in 1999, and worked to uncover the full potential of the deposit. After completing a Preliminary Economic Assessment (Scoping Study) on a combined open pit and underground mine in 2006, Minago, along with Mel and Lac Rocher, two other sulphide nickel projects owned by Nuinsco at the time, were spun off to create Victory Nickel. In December 2009, a feasibility study, which incorporated only the open pit portion of the mine, confirmed that the development of a mine and concentrator was technically and commercially feasible at the Minago site. Efforts to improve on and optimize the feasibility study began immediately. The entire Minago resource is contained in an area known as the Nose Deposit, a folded domain of ultramafic rock. This is where all of the resources that to date have been used in economic evaluation (both the scoping and feasibility studies) of Minago are located. And, importantly and as noted above, the only resource used to assess the economic viability of the project in the feasibilNorthern Prospector 2011-2012

51


VICTORY NICKLE ity study is located within the confines of the open pit – none of the underground resource has been factored in. In early 2010, an aggressive 23-hole drill program began on the Nose Deposit to attempt to increase the amount of material in the proposed open pit. Results from the 2010 winter drill program exceeded expectations and successfully expanded the pit-constrained nickel resource at Minago. The Measured and Indicated NI 43-101 pit-constrained resource grew to 302.3 million pounds of sulphide nickel (NiS), up 23.9 per cent from the 243.9 million pounds estimated in the 2009 feasibility study. Tonnage increased in the Measured and Indicated pit-constrained resource by 20.6 per cent to 31 million tonnes (measured: 8.2 Mt grading 0.473 per cent NiS; indicated: 22.8 Mt grading 0.432 per cent NiS) from 25.7 million tonnes (measured: 6.6 Mt grading 0.488 per cent Nis; indicated: 19.1 Mt grading 0.410 per cent Nis) and the average grade of the Measured and Indicated pit-constrained NiS resource increased to 0.443 per cent, from 0.430 per cent. This represents a potential open pit mine life of 8.6 years, made 1.5 years longer, based on a 10,000 tonne per day mining rate. Additional drilling in early 2011 led to unpredicted advancements in the Nose

Victory Nickel Inc. Victory Building Suite 1802, 80 Richmond Street W. Toronto, ON M5H 2A4 416-363-8527 www.victorynickel.ca admin@victorynickel.ca TSX Symbol: Ni Developing One of Canada’s Largest Sulphide Nickel Inventories s&OURSULPHIDENICKELPROJECTSIN-ANITOBAAND1UEBEC ÂŻ-).!'/ ÂŻ-%, ÂŻ,!#2/#(%2 ÂŻ,9..,!+%/PTIONEDTO0ROPHECY0LATINUM s&INANCINGUNDERWAYFORFULLY PERMITTED 40$-INAGO-INEIN-ANITOBA s!BILITYTOPRODUCEWORLDSHIGHESTGRADENICKELCONCENTRATEAT-INAGO s6ALUABLECO 0RODUCTAT-INAGO^  TONNESOFFRACSAND s!DDITIONALPRODUCTIONPOTENTIALEXPLORATIONUPSIDEFROM,AC2OCHERAND-EL s3TRONGMANAGEMENTANDBOARD s5NDERVALUED,OWENTERPRISEVALUEPERPOUNDOFNICKEL

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2011-2012 Northern Prospector


VICTORY NICKLE

Deposit at Minago, identifying a previously unknown western extension of nickel mineralization in the Nose Deposit. Three drill holes, totalling 1,095 metres, tested the western extremity of the Nose Deposit in an attempt to define a western limit to the near-surface, open pittable nickel mineralization. All holes intersected a number of intervals of serpentinized ultramafic rock with significant nickel mineralization, demonstrating that nickel mineralized rock extends farther west than previously interpreted. “The presence of such intervals serves to highlight the potential for enhancement to the open pittable nickel resource at Minago and the potential to extend the open pit mine life,” commented Paul Jones, vice-president, Exploration. “Of particular significance are the robust total-nickel grades that have been encountered in the intersections – generally at the upper-end of the grades encountered in the Nose Deposit.” With the increase in pit-constrained resource and mine life came an improvement in Minago’s economics. The base case IRR increased to 22.9 per cent from the original estimate of 17.7 per cent and the NPV at a six per cent discount rate rose by $317.9 million CDN, or 79 per cent, to $720.5 million CDN, compared

with the 2009 feasibility study. Undiscounted cash flow increased to greater than $1.5 billion CDN. Minago’s nickel endowment not only includes the resources contained in the Nose Deposit pit and the underground resource beneath it, but also mineralization in the North Limb, a near surface domain of ultramafic rock very similar to the Nose Deposit. Extending about 1.5 kilometres to the north of the Nose Deposit, the North Limb has been known as nickel bearing for some time. But additional drilling done in 2011 added sufficient data to calculate an NI 43-101-compliant Exploration Target Mineralization Inventory (“ETMI”), the first indication of mining potential in the North Limb zone. The ETMI incorporated all drilling completed to date on the

Additional drilling in early 2011 led to unpredicted advancements in the Nose Deposit at Minago, identifying a previously unknown western extension of nickel mineralization in the Nose Deposit. Northern Prospector 2011-2012

53


VICTORY NICKLE North Limb and established the target estimate at between 21 million and 34 million tonnes grading 0.49 per cent to 0.59 per cent total nickel, based on a 0.30 per cent total nickel cutoff and 2.43 tonne/ m³ bulk density. This ETMI demonstrates the potential for a second open pit on the North limb that could extend mine life even further. Victory Nickel is committed to building a strong working relationship with the government of Manitoba and surrounding Aboriginal communities, and has taken a thorough, cooperative and transparent approach to regulatory issues, community engagements and environ-

mental matters throughout exploration, feasibility and, perhaps most importantly, the permitting process. As a result, Victory Nickel was awarded, in August 2011, its Environment Act Licence from the Manitoba government paving the way for the construction, operation and subsequent decommissioning of the Minago mine. This makes Victory Nickel one of the few companies with a viable, permitted mining project ready to move forward in Canada. With this permit in hand, Victory Nickel Inc. can begin pre-stripping the openpit this winter. Construction is expected to create roughly 600 jobs and the mine

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2011-2012 Northern Prospector

will create about 400 full-time jobs once in production. Victory Nickel’s Board of Directors has approved proceeding to full development at Minago, and management is proceeding to seek joint venture interest and raise $75 million needed to fund activity through 2012. While nickel gets the most attention at Minago, one of the more unique features of this large and valuable project is not a metal at all, but a high-value by-product with the potential to generate substantial revenues - frac sand. Frac sand is used in the oil and gas industry to increase flow to the wellhead. Vast quantities are consumed in hydraulic fracturing and demand for frac sand is expected to increase as shale gas plays in Canada and the US rise to prominence. At Minago, frac sand is contained in a sandstone layer approximately 10 metres thick and overlying the nickel deposit. This layer must be removed as part of pre-stripping the open pit to expose the nickel mineralization and, according to engineering firm Wardrop, a Tetra Tech Company, the proposed pit area contains a marketable frac sand resource of 11.2 million tonnes, with additional tonnage potential for the future. It’s important to remember that the sandstone layer is not confined to the Minago pit area, and that this resource estimate doesn’t consider the potentially significant additional tonnage of frac sand that exists outside the open pit limits and which could conceivably be mined using conventional underground mining methods. The demand for high-quality frac sand, such as the resource at Minago, should continue to expand given the development of unconventional oil and gas resource plays in North America. Having both nickel and frac sand resources makes Minago an even more attractive mining prospect. As René Galipeau, vice-chairman and CEO, recently stated, quoting one of Victory Nickel’s institutional shareholders: “Minago is a very good nickel project. Minago is also a very good frac sand project. Together, Minago is an exceptional mining project.” Victory Nickel Inc. (TSX: NI) is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-complaint nickel resources. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing four properties; Minago, Mel, and Lynn Lake in Manitoba, and Lac Rocher in northwestern Quebec, and by evaluating opportunities to expand its nickel asset base. ✖


CARLISLE GOLDFIELDS

NEW BEGINNINGS

Carlisle Goldfields Limited – A revitalized company, positioned for growth Carlisle Goldfields Limited is a junior mining and development stage company engaged in the acquisition, exploration and development of gold and silver projects primarily in northern Manitoba. The company’s principal asset exists at the past- producing MacLellan Mine in Lynn Lake, Manitoba where 144,000 ounces of gold and 432,000 ounces of silver were produced between 1986 and 1989. Carlisle’s 20,000 hectare land package consists of 29 known satellite deposits, five of which demonstrate significant historical resources and three (including MacLellan) which were past gold producers. In January 2010, the company implemented strategic management changes in line with its goal of achieving proper market recognition for the value of its core assets and to ultimately reward loyal shareholders. This began with the installation of Bruce Reid as president and CEO. Reid has more than 30 years of direct ex-

perience in the mining industry. He brings to the company a unique combination of expertise in both corporate finance and mining exploration. A new, experienced board of directors was also put in place. Carl McGill remains as the only director from the company’s origin in 2007, and has assumed the role of vice-president, corporate development. The management team was also bolstered with the addition of an established mining industry CFO, a vice-president of operations, a vice-president of engineering and a special geologist advisor to the board. The company has also maintained the services of its’ QP and vice-president of exploration, Peter Karelse. Accomplishments of the new management team and board of directors have been extensive. After a de-listing of the company’s common shares on the Toronto Stock Exchange for market capitalization defi-

Carlisle management is of the firm belief that this gold deposit is of sufficient merit to justify undertaking preliminary engineering, environmental and metallurgical studies aimed at completing the characterization of the context of the mineralization. ciency reasons in June 2009, a re-listing on the Canadian National Stock Exchange executed by new management occurred in June 2010. Subsequently the company’s shares were re-listed on the Toronto Stock Exchange effective June 29, 2011. This gives the company much needed market exposure and liquidity in support of its’ business objectives. In August 2010, an updated NI 43-101 compliant technical report pertaining to the MacLellan Mine site was produced. This report incorporated 8,100 metres of drilling that were not included in the past report, as the company was only as of Au-

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Northern Prospector 2011-2012

55


NEW 43-1101 RESOURCE ESTIMATES TOTAL RESOURCE ESTIMATES IN TONNES

(Measured & Indicated plus Inferred)

9,700,00

10

1,164,400

1.2

9 8

4,200,000

1

6 5 4 3

969,680

2

1,836,000

1,076,000

1

5,500,000

open pit resource

0.8

622,000 ounces from underground

0.6

412,200

0.4

141,912

181,500

0.2

542,400

ounces from open pit

0

From

1985-198 historical productio n

Resource estimate at mine clos ing

9

1989

From

JUNE 2008

1985-19

historical 89 producti on

AUGUST 2010

TOTAL SILVER RESOURCE ESTIMATES IN OUNCES (Measured & Indicated plus Inferred) 9,344,000

10

6

4

N/A Not availab le

N/A JUNE 2008

672,200

2

0 AUGU ST 2010

Resource estimate mine closat ing 1

989

JUNE 2008

AUGUST 2010

OPEN PIT POTENTIAL Nearly 600,000 oz located in an open pit down to a depth of 220 meters.

8

Not availab le

(in millions)

underground resource

7

(in millions )

(in millions )

Carl McGill (416) 278-8406 cmcgill@carlislegold.com

TOTAL GOLD RESOURCE ESTIMATES IN OUNCES

(Measured & Indicated plus Inferred)

0

Bruce Reid (647) 500-4495 br@carlislegold.com

Carlisle GoldďŹ elds Ltd. (TSX-CGJ) 401 Bay Street, Suite 2702, Toronto, Ontaro Canada, M5H 2Y4

Average grade 3.14 grams/ Au/T plus 32 gram Ag/T or US$ 150 in ground value per tonne. At 2,000 T/day this open pit portion of the deposit will produce 75,000 ounces AuEq for eight years.

TOTAL OPEN PIT AND UNDERGROUND RESOURCE ESTIMATE AT 0.65 g/t AuEq CUT-OFF GRADE


CARLISLE GOLDFIELDS gust, 2010 under new management able to pay the assay lab in order to release results. The report estimates 5.3 million tonnes containing 658,200 ounces Au at an average grade of 3.85 g/t AuEq in the measured and indicated category and 4.4 million tonnes containing 506,200 inferred ounces AuEq at an average grade 3.56 g/t AuEq. Of particular interest is the fact that nearly half of the ounces in this new resource are contained in an open pit down to a depth of 220 meters. Carlisle management is of the firm belief that this gold deposit is of sufficient merit to justify undertaking preliminary engineering, environmental and metallurgical studies aimed at completing the characterization of the context of the mineralization. To that extent the company’s initial NI 43-101 resource estimate will form the basis of a new Preliminary Economic Assessment (PEA). The PEA will assess the capital and operating costs of re-commencing operations and the feasibility of the overall project at a preliminary level. Targeted completion date is Q4 2011. Carlisle’s management team has been able to raise approximately $14 million from Q4 2010 to the end of Q1 2011, all on a non-brokered basis. The company has stated a working capital deficiency in its financial state-

ments since Q3 2008 are due in large part to being assessed by Canada Revenue Agency (CRA) for not spending sufficient funds on qualifying Canadian Exploration expenses within the prescribed times to meet the company’s renunciation obligations for funds raised in 2006 and 2007 flow-through share financings. In this respect, the company has accrued a liability of $1,407,000 to meet this possible obligation in its’ financial statements. Management has been actively pursuing this matter with CRA, and due to recent negotiations, the company appears to be able to clear this position with a payment not in excess of $425,000. The extinguishment of this obligation should be concluded by no later than end of Q4 hence overcoming a significant working capital deficiency. In March 2011, Carlisle closed on an option to purchase the Last Hope Gold property approximately 20 kilometres south-east of Lynn Lake. The property has a non-compliant resource of nearly 900,000 tonnes of mineralized material at a grade of 9.4 grams per tonne. This represents over 270,000 ounces of gold, most of which is within 150 metres of surface.

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In April 2011 the company announced the commencement of a 45,000 metre drill program. The phase I program is intended to expand and improve confidence in the zone defined in the MacLellan Resource estimate issued August 2010. The Phase II program objective is to assess the definition of the MacLellan Extension Area. Significant key catalysts between now and the end of Q1, 2012 are as follows: • Settlement of CRA liability PEA for MacLellan Mine Site • Anticipated positive drill results from the 45,000 metre drill program • An updated resource estimate for the MacLellan site • New 43-101 resource estimates for the three properties as defined by the MacLellan extension area The management team at Carlisle is pleased with revitalization efforts that have been made within the company. Bruce Reid, president and CEO states, “We firmly believe that with the repositioning of the company, and in anticipation of critical milestones being achieved, 2012 will be an exciting and rewarding year for all shareholders.” ✖

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Northern Prospector 2011-2012

57


POTASHCORP

ROOM TO GROW

As PotashCorp expands, the need for skilled people increases as well PotashCorp is a global leader in the fertilizer industry producing three main crop nutrients – Potash, Nitrogen and Phosphate. Our company is growing – we have ongoing expansion projects underway at many of our potash facilities creating over 500 new positions to be filled between 2011 and 2013. PotashCorp’s growth and expansions mean more jobs in Saskatchewan and New Brunswick – expected to reach nearly 3,000 by 2013, more than double the number of people PotashCorp employed in 2001. Global populations are rising and the need to produce more food per acre is helping drive demand for potash and other essential crop nutrients. To help meet this need and position our company for its next stage of growth, in 2003 PotashCorp embarked on what would be a CDN $7.5 billion expansion program to improve operational capability at every potash mine site. This undertaking is expected to increase operational capability to 17.1 million tonnes by 2015, a significant increase from when the program began. PotashCorp’s long-term thinking, including the commitment and execution of its potash expansions, has it poised to 58

2011-2012 Northern Prospector


POTASHCORP dramatically increase its potash production just as global demand for the essential crop nutrient rises. This is a very exciting time to join our team. Our recruitment efforts are underway and we are looking for people who share our vision of playing a key role in the world’s food solution. Our expansion projects are creating career opportunities in all areas of our company. We are looking for engineers, skilled trades people, safety professionals, labourers, IT professionals, accountants and human resources professionals. We invest in you and your career – we’re looking for hard working, motivated people who thrive in an environment that offers opportunities for growth and development. We show our commitment to supporting the advancement of our employees by setting and measuring targets each year for internal promotions in management positions and we continue to exceed our internal promotion targets. We value building and fostering relationships in our communities and we listen and look for ways to improve quality of life in and around communities near our operations, cultivating support and creating economic and social stability. Our award-winning safety performance reflects our commitment to getting you home safely every day. By training our

managers and employees to the highest industry standards, we create a culture of safety awareness that will keep you on your toes and on the job. These expansions have impacts far beyond increased potash production. They

create jobs, support local businesses and communities and have a significant positive impact on the economy – in Saskatchewan and beyond. Visit www.potashcorp. com for more information on expansions and to see current job opportunities. ✖

Where great careers grow www.potashcorpjobs.com

Northern Prospector 2011-2012

59


ST. EUGENE MINING CORPORATION

MANY MINES

ST. EUGENE MINING CORPORATION LIMITED

On its way to delivering significant value for shareholders

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2011-2012 Northern Prospector

St. Eugene Mining Corporation Limited (TSXV:SEM) is actively exploring for and developing gold properties, in both Manitoba and Saskatchewan. The company’s three main assets are the Tartan Lake Gold Mine Project in Manitoba (“Tartan Lake�), and the Amisk Gold Joint Venture Project (“Amisk Gold JV�) and the Amisk North Gold Project (“Amisk North�), both located in Saskachewan. All three projects are located in the prolific Flin Flon Greenstone Belt. Both Tartan Lake and Amisk Gold JV projects have been act ively explored historically, however, no significant work was completed on either project for more than 20 years. During 2010, the company took the necessary steps to upgrade the resource estimates on each property in order to become compliant with current NI 43-101 standards. TARTAN LAKE St. Eugene acquired Tartan Lake from Claude Resources Inc. (“Claude�) in 2008. Tartan Lake was a past-producing gold mine that produced 48,000 ounces between 1987 and 1989. The project consists of a 440 MT/day cyanide gold concentrator (largely intact), related infrastructure and a decline providing access to developed mining blocks within the Main and South Zones to a vertical depth of 320 metres. The property has hydro connections and is accessible by road from the nearby mining town of Flin Flon, which is 26 kilometres away. Tartan Lake’s independent NI 43-101 compliant resource estimate (completed by MineTech International Ltd. and released November 2010) resulted in an indicated mineral resource of 1,000,000 tonnes at 4.0g/t Au (130,000 ounces) and an additional inferred mineral resource of 1,900,000 tonnes at 3.9g/t Au (240,000 ounces). The resource estimate also concluded that the underground mine workings and the existing concentrator can be put back into limited service, sufficient for mining and processing a 10,000 tonne bulk sample, with minimal time and capital requirements.


ST. EUGENE MINING CORPORATION

St. Eugene completed an airborne VTEM and magnetics survey on Tartan Lake in the spring of 2011. All of the geophysical anomalies are contained within a geological structure that trends east-west away from the main Tartan Mine and have a similar signature to the shear zones that contain the past producing high grade Main and South Zones. These high priority targets were included in the recently-completed Phase 1 drilling program (4,123 metres). The results were encouraging, with all 19 holes intersecting gold mineralization in shear zones. Significant results included 27.57 g/t Au over 0.69 metres in hole TL-11-03 and 29.6 g/t Au over 0.50 metres in hole TL-11-05. AMISK GOLD JV In early 2010, St. Eugene entered into a joint venture with Claude (35 per cent St. Eugene / 65 per cent Claude) in the Amisk Gold JV, located in Saskatchewan, approximately 22 kilmometres southwest of Flin Flon. Originally explored for narrow vein, high grade gold and silver potential, the Amisk Gold JV has evolved as a large tonnage, low grade target due to the identification of widespread gold and silver over significant core lengths. The Amisk Gold JV’s independent NI 43-101 resource estimate (completed by SRK Consulting (Canada) Inc. and released April 4, 2011) resulted in an indicated mineral resource of 921,000 ounces at 0.95 g/t AuEq and an additional inferred mineral resource of 645,000 ounces at 0.70 g/t AuEq. In the summer of 2011, the company announced step-out and infill drill results, which successfully expanded the system along strike by an additional 400 metres to the southwest and 150 metres to the north of and below the conceptual open pit. Significant results included 1.02 g/t Au and 2.6 g/t Ag over 39.08 metres in hole AL–11-292 and 0.92 g/t Au and 7.9g/t Ag over 36.60 metres in hole AL-11-298. In August 2011, the company announced the results of a detailed metallurgical laboratory testing program that was conducted by Inspectorate Metallurgical Division and managed by John Starkey, P.Eng. Three composite samples from the high grade, average grade and low grade ore, weighing a total of 217 kilograms, were selected from the diamond drill core collected during the 2011, 2010 and historic drill programs. Tests showed that gold

recovery of 90 per cent and silver recovery of up to 93 per cent can be obtained using cyanidation with carbon-in-pulp technology. Additional drilling and assaying at the Amisk Gold JV are ongoing. At the time of printing this article, holes totalling metres had been completed to date. AMISK NORTH In early 2011, St. Eugene announced that it had staked 26 new claims (approximately 10,000 hectares) adjacent to and north of the Amisk Gold JV. St. Eugene believes that Amisk North covers geophysical anomalies and potential mineralized extensions from the Amisk Gold JV. In May 2011, Claude elected that five of St. Eugene’s newly staked mineral claims (representing approximately 1,880 hectares) become part of the Amisk Gold JV, in accordance with the area of influence provisions of the joint venture agreement. In summer 2011, St. Eugene completed a 1,584.5 kilometre airborne VTEM and magnetics survey on Amisk North. Six geophysical anomalies and 23 geophysical targets were identified in the survey. The geophysical signatures are similar to structures that host gold deposits in similar Achaean terrains worldwide, and the geophysical survey delineated a number of strong conductive bodies believed to be associated with sulphide mineralization across the property. “With a short timeline and minimal capital expenditures to put Tartan Lake back into production, a proven producing partner in Claude at the Amisk Gold JV and additional upside at Amisk North, we believe that St. Eugene is on its way to delivering significant value for shareholders,” comments Jennifer Boyle, chief executive officer of St. Eugene. St. Eugene is attractive to investors interested in a gold exploration company with exciting prospects in both Manitoba and Saskatchewan. The company is listed on the TSX-V under the ticker “SEM”. Please refer to our website at www.steugenemining.ca and www.sedar.com for additional information and important disclosures pertaining to information contained in this article. For further information, you may also contact Jennifer Boyle, chief executive officer, at 647-344-3158, jennifer@ capexgroupinc.com. ✖ Northern Prospector 2011-2012

61


COPPER REEF

COPPER REEF

has a well balanced portfolio of gold and base metal properties Copper Reef Mining Corporation, based in Flin Flon, Manitoba, holds exploration properties throughout the Lynn Lake and Flin Flon Greenstone Belt in both Manitoba and Saskatchewan. This year Copper Reef has concentrated on two major base metal projects and one major gold Property. In addition two lesser gold projects very evaluated. More information on any of the active projects can be found at our website, www.copperreef.com BASE METAL PROPERTIES The two major base metal projects are the Smelter Property and the Hanson Lake Property. At the time of writing Copper Reef was drilling a deep seismic target on the Smelter Property located approximately 200 metres north of the Callinan orebody and one kilometres north of Hudbay Minerals Triple Seven Mine. The Smelter claims are thought, from lithoprobe data, to be underlain by the same volcanic rocks which host the Callinan and Triple Seven orebodies. Examination of recent 3-D geophysical seismic surveys have indicated two areas of strong sonic reflectivity on the smelter claims. The seismic anomalies

62

2011-2012 Northern Prospector

appear to have similar reflectivity as the Callinan orebodies which were traversed on some of the same seismic lines that crossed the smelter claims. The western seismic anomaly is made more attractive because it is coincident with a positive gravity anomaly and is directly on strike

with the Triple 7 orebodies. The current drill program, which began in the spring of 2011, is nearing completion, reaching a depth of 2300 metres as of October 17, 2011. (see diagram). So far at least one sulphide horizon has been identified.


SYMBOL: CZC: CNSX

ALBERTS LAKE

CANADIAN NATIONAL STOCK EXCHANGE

Issued & Outstanding Fully Diluted

97,754,634 122,035,262

DIRECTORS & OFFICERS

CORPORATE INFORMATION

Robert N. Granger, Q.C. Stephen Masson,MSC.,P.Geo. David W Kendall, FCA Laara Shaffer William J. Jackson, B.A.Sc. Harry Barr David S. Kennedy Edward G. Thompson William J. Phillips Greg Campbell

Address Phone Fax Email URL Listing Auditors Solicitors Transfer Agent Investor Relations

Chairman & Director President, CEO & Director CFO & Treasurer Corporate Secretary Assistant Secretary Director Director Director Director Director

WWW.COPPERREEF.COM

12 Mitchell Road, P.O. Box 306, Flin Flon, Manitoba R8A 1N1 204-687-3500 204-687-4762 more@mts.net http://www.copperreef.com Date Friday, February 22, 2008 McGovern, Hurley, Cunningham, LLP, in Toronto. Taylor McCaffrey LLP, in Winnipeg. Equity Transfer and Trust Co, in Toronto. 204-687-3500


COPPER REEF HANSON LAKE PROPERTY The Hanson Lake Property occupies the former Hanson Lake Mine which produced 147,000 tonnes of 10 per cent zinc, 5.8per cent lead, 0.5 per cent copper and 137 g/t silver between 1967 and 1969. A 1100 metre long group of north trending Airborne Electromagnetic Anomalies just within the western boundary of the property, known as the South Bay Horizon, forms an exciting target for finding another or larger Hanson Lake type orebody. The company completed its second phase of drilling this winter which had encouraging copper, zinc and silver intersections and has now just received a compilation of the down hole geophysical data from the holes drilled into the South Bay Horizon. This down geophysical hole survey performed by Koop Geotechnical Services is used to point to where to drill the centre of the body and hopefully the best mineralization. The data, along with drill holes plotted in three dimensional space, show a number of conductive plates (mineralized lenses) plunging to the southwest identifying several new drill targets. (see vertical long section diagram) Copper Reef plans to drill these targets in the next 2012.

COPPER REEF RELEASES NEW GRADES ON WIDE INTERSECTIONS Copper Reef Mining Corp. has released results from the screen metallic gold assays as well as silver assays on four of drill holes into the Alberts Lake gold zone located in the central Flin Flon belt of Manitoba. Screen metallic assay is a way to capture coarse gold in drill core samples by pulverizing the entire sample then screening out all the coarse gold before carrying regular assays on the fine gold that went through the screen. To some extent, this removes the nugget effect. The screen metallic assays of gold were only slightly higher in some holes, indicating that coarse gold is present only locally and that most of the gold is of fine-grain size. This is positive in the sense that wide variations in grade will be minimal and that generally assay results should reflect closely the true grade of the intersection.

Core length (m) DDH AL-11-57tw Includes DDH AL-11-61Btw Includes Includes DDH AL-40tw Includes DDH A1-11-72tw Includes

27.9 4.5 55.1 2.85 1.5 30.9 2.2 26.4 1.85

Regular assay Au (g/t) 3.19 10.76 1.02 6.82 9.71 1.36 5.37 -

Screen metallics Au (g/t) 3.46 12.19 1.02 6.87 14.6 1.39 5.83 1.14 4.55

Assay Ag (g/t) 9.1 33.5 2.4 14.0 14.6 2.3 10.5 -

From these drill holes, results indicate that only minor coarse gold exists locally and that most of the gold is finely disseminated throughout the deposit. An example of coarse gold portion would be a 1.5-metre intersection of DDH-AL61Btw, which when assayed with the screen metallic method, increased from 9.71 grams per tonne to 14.6 grams per tonne. These recent drill holes were twin holes using HQ over the smaller BQ-sized core of holes drilled during the 1980s. The larger HQ core is approximate three times larger by volume of the older BQ core. The size of the core also appears to have had little effect on the grade between the new and smaller older holes, again suggesting that the gold is, for the most part, more uniformly finely distributed throughout the Alberts Lake deposit. Approximately 30 new holes are being planned to expand and outline this gold zone in 2012.

64

2011-2012 Northern Prospector


COPPER REEF GOLD PROPERTIES ALBERTS LAKE PROPERTY Copper Reef main Gold Target this year was our Alberts Lake Property located 20 kilometres east of the city of Flin Flon. The Albert’s Lake deposit has been tested over a 500-metre strike length and to a depth of 400 metres and remains open in all directions. Values up to 125 grams per tonne were noted in drill core with best intersection over all being 10.89 g/t Au over nine metres at 225 metres vertical depth. Approximately 60 holes have been drilled into the zone to date. A historical non-NI 43-101-compliant reserve estimate of 400,000 tonnes at 7.3 g/t Au was reported by Granges Inc. in the 1980s. The shear zone which hosts the Albert’s Lake gold zone (which is up to 25 m wide) lies between a gabbroic intrusion and felsic volcanic rocks. In 2010, the drill hole data were entered into Surpac Software and new sections were constructed to review the Albert Zone’s drill holes.

This past summer Copper Reef twinned four holes on the Alberts Zone to confirm continuality of grade and verify assay intervals. Copper Reef also twinned these holes with larger core and used an assay method that better reflected grades where there is coarse gold. MINOR GOLD PROPERTIES JEWEL BOX This summer the jewel Box property, located 30 km east of Flin Flon near the Sherridon Railway Line, was explored for the first time by Copper Reef. The old trench area as well as the surrounding property brought back chip samples which assayed up to 33.7 g/t gold, confirming high concentrations of gold reported in old three old drill holes which assayed up to 500 g/t gold over narrow intersections. A program of line-cutting, mapping and prospecting, magnetic and VLF-EM surveys is planned for the fall of 2011, with a winter drill program to follow.

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COPPER REEF KISSISSING PROPERTY (SHERIDAN BASE METAL CAMP, FLIN FLON BELT) A 2 km zone of gold mineralization has been traced through prospecting this fall. It lies south of, and appears to follow an airborne electromagnetic anomaly of the same length, which has not yet been tested by drilling. Values range from 1.13 to 10.39 g/t gold at the main showing. An additional 60 rock samples along the horizon were taken for assay. Two unreported trenches along this gold trend were also sampled. Copper Reef is planning a drill program to test this wide zone of gold mineralization as well as the flanking 2km long airborne conductor. The Company has acquired additional claims in the area currently totalling over 1600 hectares. ✖

Section View Looking North West

Selected assay intersections are shown. 66

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WILDCAT EXPLORATION

NEW DISCOVERIES

Wildcat Exploration’s gold, base metals focus in central Canada

The roots of Wildcat Exploration Ltd. [WEL-TSXV] are in Manitoba’s well-established Rice Lake gold camp. The area’s pedigree has recently been upgraded by the continuing exploration successes of Wildcat’s neighbour, San Gold Corporation, with total published gold reserves and resources now exceeding three million ounces. The company’s expertise in the miningfriendly central Canadian provinces led Wildcat to expand into additional promising gold and base metal projects in several established camps. All of Wildcat’s gold properties are located in the Uchi subprovince, which has produced more than 30 million ounces of gold collectively from the Red Lake, Pickle Lake and Rice Lake gold camps. In the Rice Lake greenstone belt, near Bissett, Manitoba, Wildcat has five goldfocused projects. In August, 2011 the company signed an option agreement with San Gold involving the Jeep, Mike Power and Poundmaker properties. John Knowles, Wildcat’s president and chief executive officer, says, “By partnering with San Gold, with its nearby mill and proven mining and exploration teams, we have reduced the economic hurdle to advance our properties while accelerating the exploration of three projects in the vicinity of San Gold’s Rice Lake Project. 68

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WILDCAT EXPLORATION This transaction also brings up to $2 million into Wildcat’s treasury, allowing us to accelerate investigations on Wildcat’s gold and base metal projects in Manitoba and Ontario.” Under the terms of the option agreement, San Gold may earn an 80 per cent interest in the three projects by expending $5.1 million on exploration activities over a four-year period. Additionally, over a three year period San Gold will be required to make cash payments to Wildcat in aggregate of $1.0 million and, subject to regulatory approval, subscribe for an aggregate of $1.0 million of Wildcat shares via private placement. San Gold is the operator of the exploration program for the duration of the option agreement,, and the planned 5,000 metre drill program in winter 2011/12 will partially build on the results of Wildcat’s recent work. In 2010 Wildcat’s geologists compiled and ranked more than twenty gold prospects in the Uchi geological subprovince. They visited two properties before freezeup, and as a result staked ten claims covering 2,400 ha at McVicar Lake, about 80 kilometres west of Pickle Lake, Ontario. Since the initial staking, Wildcat has twice expanded the property, which now stands at 22 claims covering 5,248 ha. Known gold mineralization at McVicar occurs in four main zones: the Altered and North Flexure Zones, the Shonia #1 Zone and the Chellow Vein. Historically these zones have been tested with near-surface drilling, and are open along strike and at depth. Gold assays from the Altered Zone include intersections of 5.7 g/t across 7.1 metres and 14.3 g/t across 14.6 metres. Gold assay results from the North Flexure Zone include 9.3 g/t over 2.0 metres, from the Shonia #1 Zone, 4.4 g/t over 2.3 metres and from the Chellow Vein, 1.2 g/t over 0.3 metres. Recent mapping and sampling have resulted in a new gold discovery south of the Chellow Vein. In addition, the company’s geological investigations have improved the potential for defining low grade, bulk tonnage gold at the Sor Lake and Shonia Zones. The McVicar property exhibits several areas and styles of gold mineralization and Wildcat is planning a diamond drill program for winter 2011/12. Tom Lewis, VP of Exploration, comments, “Our results to date on McVicar show good exploration potential for high grade gold mineralization in the claims between the Chellow vein and the pastproducing Golden Patricia Mine to the southeast. We are also interested in the blue-grey quartz occurrences that we found for the first time during our followup work in July southeast of the Chellow vein, for which there are 30 samples still out for assay. In addition, as a result of new outcrop exposures from a forest fire 12 years ago, our geologists are gaining

new information on the property. At the Altered, Shonia and Sor zones, historic exploration focused on high grade vein deposits, whereas Wildcat is assessing the low grade, bulk tonnage potential of narrow pyrite-quartz veins and pyrite-bearing granites. ” Wildcat’s Reed copper-zinc-silver prospect in the Flin Flon-Snow Lake greenstone belt is located between the Reed Lake copper deposit of HudBay Minerals Inc. and VMS Ventures Inc. to the south and the Rail copper-zinc deposit immediately to the north. The company’s geologists have identified a favourable felsic/mafic contact, with associated mineralization grading 1.58 per cent copper in a shear

Box 460 St. Theresa Point Manitoba R0B 1J0 Email: mhaent@mts.net

zone. In addition, based on strong and extensive chlorite alteration and nearby conductors the company carried out a VTEM airborne survey in early October to assist in identification of targets in the planned 2011/12 winter drilling program. In the Thompson Nickel Belt, Wildcat is earning a 100 per cent interest in the Burntwood nickel project, located 55 kilometres southwest of Thompson, from senior producer Anglo American plc. The option agreement calls for Wildcat to spend $2 million over five years and in the summer of 2011 Wildcat commissioned geophysical surveys to supplement surveys done by Anglo American, with a winter drill program to follow. ✖

Phone: Toll Free: Fax: Store:

(204) 462-2159 1-888-299-8307 (204) 462-2830 (204) 462-2283

www.alair-mhaenterprises.ca

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GOLDER ASSOCIATES

GREEN GOLD

Golder Associates prides themselves on staying on the forefront of sustainable technology

Stakeholder engagement is an important aspect of understanding a community’s perspective on projects impacting their area.

Economists are forecasting recovery for the American economy over the next two years, which has Saskatchewan resource companies anticipating increases in resource prices and demand. With the United States accounting for over 60 per cent of Saskatchewan’s trade, this anticipation is justified but spot prices and the bottom line are not the only thing resource companies are focused on. Companies are looking to the “triple-bottomline,” strategically planning to balance their financial needs with those of the environment and communities in which they operate. Seeking new ways to advance business opportunities for corporate shareholders, while also caring for the environmental and the social stakeholders where their companies operate, allowing for preservation for generations to come. When Golder Associates (Golder) started as a geotechnical engineering firm over 50 years ago, it grew strategically to meet client development needs, while looking for ways to preserve the earth’s integrity. This was done by focusing on establishing a strong suite of integrated engineering and environmental services. Today, Golder has positioned itself as a sustainability specialist offering earth, environment, socioeconomic and stakeholder engagement services. The Golder office in Saskatoon, has been working with mining firms across the globe for over 30 years, creating tried and true methods for sustainable resource development. Ron Barsi, a Golder principal in Saskatoon, believes “sustainable development” needs to be implemented by pragmatically looking down from 30,000 feet above, examining a project from its concept to its final closure. From there one sees how the engineering, environmental, social and economic aspects of a project may interact, or overlap and on some occasions compete 70

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GOLDER ASSOCIATES sectors. Clients have come to Golder requesting custom GoldSET© databases to meet their own sustainable parameters. To meet the increasing demand for sustainable engineering and environmental services in the resource sector, Golder has recently acquired the Marston group of companies and HB Lanarc. Marston is a full-service mining consultant that specializes in mine planning and geologic expertise. The acquisition boosts Golder’s capabilities as a global leader in mining by expanding its mine planning and resource evaluation capabilities in energy minerals. Marston’s focus on technical excellence and working closely with clients is an excellent

match with Golder’s core values and the expectations of its mining clients. HB Lanarc is a full-service “green solutions” consultant that specializes in planning and design for sustainability, adding to Golder’s environmental service offerings. As Saskatchewan prepares itself for another resource boom, stakeholders want to make sure the “boom” is productive, but not destructive. Golder is prepared to work with industry and lead the way with the latest sustainable practices for resource clients throughout the province and the globe, allowing for Saskatchewan’s future not only to prosper, but be preserved. ✖

Regular environmental monitoring of projects sites are essential for maintaining a blalnced environment.

for limited corporate resources. The key objective is to plan early and plan ahead to establish win-win solutions, using integrated engineering and environmental planning to grow a client’s business and the surrounding communities they operate in. Golder prides itself on staying on the forefront of sustainable technology. The company has developed a “sustainability decision making support tool,” which is a multi-criteria analytical tool that evaluates the strengths and weaknesses of its engineering projects with respect to the dimensions of environmental, social and economic parameters. The tool, called GoldSET© (Golder Sustainability Evaluation Tool), allows for the comparison of different options on a balanced, impartial and comprehensive basis. As such, it can help identify optimal solutions for decision-making based on the principles of sustainable development, expanding the traditional analytical framework to take into account environmental and social performance in addition to financial performance for growing companies looking to develop new projects. Leveraging Golder’s scientific and technical skill set, GoldSET© is used to assist in the selection of appropriate options for a given project. The tool has been used in numerous projects over the last few years in Canada, the U.S., Europe and Australia. Initially developed for site remediation, the web-based application is now used by Golder internationally on a variety of projects in mining and its other

HOW DO YOU PLAN FOR TOMORROW, TODAY? JUST ASK GOLDER.

For over 50 years, Golder has been trusted to deliver sustainable solutions to clients locally and throughout the world. With services from concept to closure, Golder can help you strive for operating excellence, accountability and transparency by building sustainability into all your projects. Engineering Earth’s Development, Preserving Earth’s Integrity.

Canada + 800 414 8314 solutions@golder.com www.golder.com

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TRANSWEST AIR

FLYING HIGH

Transwest Air continues on path forward to success

By Melanie Franner

Contract Diamond Drilling Newer - All Hydraulic Super 300‘s or B-20’s Experienced Management and Drillers Skid-Portable and Heli-Portable Rigs 23 Delaurier Drive | PO Box 819 | St. Rose du Lac, MB | R0L 1S0 P. (204) 447-2755 | F. (204) 447-2904 | TF. (866) 817-5720 | bodnar@mts.net Contact: Nick Bodnar or Joe Bodnar

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Transwest Air is deeply rooted in Saskatchewan aviation history. Since its creation through the merger of Athabaska Airways and Air Sask (La Ronge Aviation) in August 2000, Transwest Air has become one of the largest independent air carriers in Canada. Today, its helicopter division remains a vital part of the growing company and one sure to set the stage for future growth ahead. Northern Prospector magazine sat down with Blake Mitchell, Director of Flight Operations, Helicopter Division, Transwest Air, to ask him a few questions about the continued success of the company, to what he attributed that success and to where he envisioned the company going in the future. Here is a short synopsis of the interview. NP: When did Transwest Air start its helicopter division? How does it differ today from when it first began? Mitchell: Transwest Air started its helicopter division in 2000 with the merging of Athabasca Airs and La Ronge Aviation/AirSask Aviation. Athabasca Airways was founded in 1955 but had been operating helicopters since the late 1960s. La Ronge Aviation was founded in 1960. At the time of the merger, Transwest Air had three Bell 206 Jet Rangers. Four helicopters have since been added: a Bell 206 Long Ranger, two Bell 407 helicopters and a Bell 205A1+. The Bell 205A1+, in particular, is a multi-purpose helicopter that is versatile in handling any remote job throughout Saskatchewan. It can be configured to seat up to 14 passengers, one or two pilots, or 4000 lbs of cargo internally, giving it a maximum internal lift of 10,200 lbs. The maximum speed of the 205A1+ is 204/km/h. Its cruising speed is 180km/hr and it has a flying range of 553 km. NP: To what do you attribute this growth and the need to acquire the extra helicopters? Mitchell: Transwest Air attributes the growth of its helicopter fleet primarily to the renewed interest in mineral exploration in Northern Saskatchewan, as well as the desire to meet the needs of its customers. As such, Transwest Air needs to have the appropriate helicopters


TRANSWEST AIR

to perform the tasks on hand. For example, Transwest Air needs to have machines capable of accommodating the heavier lifts required for moving and setting a drill and transporting passengers, such as the Bell 407 and Bell 205A1+ respectively. NP: Please describe the different types of services that the helicopter division provides? Mitchell: The company helicopters are operated on a call-when-needed basis. They are used primarily for exploration, staking, line cutting, drill support, drill moves and forestry support work, such as fire suppression, inventory, timber typing, tree planting and enforcement. The Ministry of Environment also hires our helicopters for completing such tasks as wildlife inventory, bison capture, habitat studies and water surveys (when the helicopters are outfitted with floats). SaskPower also uses the helicopters for line patrol and maintenance. Plus, the machines are used for aerial photography and cinematography. Other services include urban construction, med-evac, passenger transport, crew changes in remote locations and sightseeing rides. NP: How does your helicopter division differ from other companies/divisions out there? What makes you and/or your services unique? Mitchell: Transwest Air has over five decades of history in Saskatchewan. It re-

mains a Saskatchewan owned and operated company, whose fleet, service and experience are unparalleled in the province. The helicopter division of Transwest Air differs from others in that it is able to offer a combined service, using both the helicopter division and the fixed wing division. This

makes the work more cost effective for the customer. For example, Transwest Air is able to fly the bulk of the equipment, as well as the fuel, camp supplies, etc. to a specific location (staging area) using our fixed wing aircraft. From there, we are able to fly to the area where the loads are required. Under normal circumstances, these areas would be inaccessible by any other means. NP: What would you say are some of the challenges involved in flying into small, northern mining communities? Mitchell: Transwest Air has had, and will continue to strive toward, maintaining a good relationship with the people of the northern communities. For this reason, there are very few challenges involved in flying into the small, northern mining communities. NP: Where do you see the helicopter di-

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TRANSWEST AIR

Toll Free Reservations 24 Hour Dispatch

1.800.667.9356 1.866.989.2677

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YOUR AIRLINE,

The Bell 205A1+, in particular, is a multipurpose helicopter that is versatile in handling any remote job throughout Saskatchewan. vision five years from now? How will you get there? Mitchell: I would have to say that the future of Transwest Air is very dependent on the economy. I would very much like to see the helicopter division continue to grow, but again, that would depend on continued interest in the mineral resources of the north, as well as the required funds for the discovery and development of these resources. Hopefully, both will be in place to support our continued growth and the ongoing needs of our customers. ✖

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ABITIBI GEOPHYSICS

GOOD QUESTIONS, BETTER ANSWERS

An interview with Abitibi Geophysics Inc. Northern Prospector Magazine: I understand that Abitibi Geophysics is placing emphasis on innovation, and last winter you announced the co-founding of the International Laboratory for Mining Geophysics with University du Québec en Abitibi-Témiscamingue. Why is your firm so focused on innovation? Abitibi Geophysics Inc.: We are responding to our clients needs. Generally, the mining industry needs and wants more discoveries to meet the world’s demand for minerals. In recent years, the discovery ratio has been inverse to exploration expenditures. Our clients expect us to provide effective tools that will allow them to explore deeper and in more difficult environments. We believe that through innovation we can develop new technologies to help the exploration industry find more mines. The Athabasca Basin produces 1/3 of the world’s uranium supplies and continued exploration in this basin requires looking under 1,000 metres of sandstone. Likewise, in Manitoba the fa-

vourable greenstone belt disappears under the Proterozoic. To increase the rate of discovery exploration is moving into these more challenging environments. We joined our key clients who formed the Canadian Mining Innovation Council (CMIC). The objective of the Council is to assist the mineral industry in developing new approaches, tools and methods, through relevant R&D activities to aid new discoveries and increase training of highly qualified personnel. Our clients believe that more cooperative R&D initiatives will yield innovations that will help improve the rate of discovery. The International Laboratory for Mining Geophysics (ILMG) will have a group of researchers working on innovations that will have a positive impact in the short/medium term discovery rate of mining deposits. Abitibi Geophysics sees a recurrence of common exploration challenges from many companies and across many environments. We can be the catalyst to bring those challenges

to the ILMG and in this way we can help the university to address specific needs of the industry. It is another opportunity to focus R&D on relevant exploration challenges. NP: Identify a recent innovation you have introduced to the market place. AG: We had several innovations over the past few years. However, we are most recognized for the InfiniTEM® system, because it was introduced back in 2004 and has since then been credited with several discoveries. InfiniTEM® is a time-domain electromagnetic system with a unique loop configuration that can detect sub-vertical conductive mineralization down to 1,000 metres. More recently, to enhance the power and flexibility of our EM systems we started producing our own instrumentation. Through our persistence and innovation we now have the most powerful, accurate and energy-efficient TDEM instrumentation in the market. In spring, 2010 we introduced Holeto-Hole 3D Induced Polarization (H-2-H Northern Prospector 2011-2012

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ABITIBI GEOPHYSICS

Ag

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Time-domain electromagnetics InfiniTEM - deep TEM Frequency-domain electromagnetics Resistivity / Induced Polarization Gravity / GPS Magnetics Gamma-ray spectrometry Borehole logging .5 Long Vertical Interpretation Abitibi R

We can help you find a mine QUALITY

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www.ageophysics.com 1-888-673-2001 76

2011-2012 Northern Prospector

3D IP) to the market place. The H-2-H 3D IP configuration was developed to increase the radius of detection around and below the drill holes compared to what can be achieved with a classical borehole IP survey. Considering the affordability and effectiveness of H-2-H 3D IP, it is now accepted as a strategic tool by companies that have experience with it. 3-D imaging has made this method more powerful and useful than classical borehole IP for mapping disseminated sulphides associated with gold, PGE, rare earths and base metals. Over the past few months we have completed several experimental/production IPower3D® induced polarization surveys. Until recently, induced polarization was generally used with an in-line current/ potential electrode configuration such as pole-dipole and dipole-dipole. Abitibi Geophysics developed a 3-D configuration (IPower3D®) and corresponding processing software, which has proven to be very effective in penetrating overburden. We were successful in getting bedrock responses in the Casa Berardi gold mining camp in Quebec, a region well known for its thick, conductive overburden. This past summer we successfully used the system on Baffin Island on a gold exploration project. NP: Do you work with students wishing to get into the mining exploration industry? AG: Yes, this year we hired four students for summer work, and four graduates for permanent positions. We have the management structure to train young people who are keen to learn, enjoy the challenge of mining exploration and the thrill of discovery. Not all students are university graduates specializing in geophysics. We also hire technical school graduates whom we train to become geophysical instrument operators, electronics

maintenance technicians, surveyors, and data compilation technicians. It is a twoway street working with young people; they have limited experience but they come with new ideas and many questions, and over the years among those new ideas we have uncovered gems. We also assist students conducting mining geophysical research. For example, this past winter we conducted a timedomain electromagnetic survey to provide high quality data for a research project under the direction of Dr. Richard Smith at Laurentian University; we provided data and assistance to a M.Sc. student researching interpretation procedures for InfiniTEM data under the direction of Dr. Colin Farquharson at Memorial University; and similarly we worked with a M.Sc. candidate working on an interpretation approach titled “Artificial neural network applied to InfiniTEM”, under the supervision of Dr. Li zhen Chang at University of Québec at Abitibi-Témiscamingue. More than 60 per cent of our staff is bilingual, which gives us the flexibility to work with students from across Canada. NP: Given the global economy’s current turbulence, what’s your perspective on the mining industry? AG: The sky is blue. We believe that worldwide demand for metals will generally increase for many years as close to four billion people in the world are industrializing and acquiring products from sinks to cell phones. In addition to growing demand we are experiencing an increased reliance on geophysics to help with exploration in deeper and more challenging environments. However, regardless of how optimistic the future is, we all know that mining exploration is a cyclical business and we have to be careful not to overextend ourselves in the buoyant years. ✖


CANADIAN WESTERN BANK

THE WORKING BANK

Great things happen when your bank is working for you

Just as your business is different from your competitors, Canadian Western Bank (CWB) is different from other banks. As the largest Canadian owned bank headquartered in the west, the people at CWB understand the unique personal and business banking needs of Western Canadians, which is one of the reasons why they’ve become known as The Working Bank™. “When you bank with CWB, you quickly see that it is banking with a difference,” says Dwayne Demeester, AVP & Branch Manager CWB’s Saskatoon North Landing branch. “Our clients work hard so we have to work just as hard to meet their needs,” comments Demeester. “It’s about delivering personalized service and understanding the needs of our clients. Many financial institutions take a cookie cutter approach to business lending, but at CWB, we recognize every client and loan is unique.” So what does CWB look at when evaluating your business financing needs? It boils down to the 5 C’s. CASH FLOW CWB looks to see if you have adequate cash flow to repay the loan along with all of your other business expenses. Evaluating your cash flow from the past three years is a good predictor of your future cash flow and ability to repay your debts. Character CWB places a lot of weight on the people behind the business and the loan. “We take the time to get to know our clients and what they personally bring to the table,” says Demeester. This includes looking at the personal credit histories, assets and cash flow of the principals on the loan. CWB looks at previous work, business and educational experiences to evaluate how you will personally contribute to your business’ success. Northern Prospector 2011-2012

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CANADIAN WESTERN BANK COLLATERAL Banks always require a borrower or guarantor to offer tangible assets such as land, equipment, vehicles, inventory and accounts receivable to secure a loan in the event it cannot be repaid. CWB first looks at assets connected to the business, but if these are not sufficient, then outside or personal assets will be considered. Capital It is important to show your banker that you have a personal investment or a stake in the company. The best vote of confidence a business can get is having its owners put their own money on the line. To a bank, this is an indication that you are less likely to walk away from the business and the loan. CWB considers the amount of equity or money you have put into the company or that has been built up through profits (retained earnings). CONDITIONS CWB does its homework on the factors and influences outside

of your direct control. Your industry, the competition, trends and economic conditions are reviewed and considered so CWB can better understand the environment in which your business will operate. Knowing about the 5 C’s of your business is important when approaching a bank to discuss your business financial needs. It is basis of the relationship, like a first impression, so be honest and be knowledgeable. CWB has been doing business in Western Canada for over 25 years, so it understands the unique challenges faced by businesses here. It’s important to go beyond just the numbers and get to know the people and the business, which is why Demeester and his team visit their clients at their place of business on a regular basis. “We aim to be more than just our client’s banker. At CWB, we strive to be our client’s business partner,” he says. “Each of our customers’ businesses are unique, so we have to be unique in our approach to banking.” ✖

CWB does its homework on the factors and influences outside of your direct control. Your industry, the competition, trends and economic conditions are reviewed and considered so CWB can better understand the environment in which your business will operate.

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DISCOVERY MINING SERVICES LTD.

KEEPING YOU COVERED

Discovery Mining Services Ltd. are the most experienced remote camp providers in Canada Discovery’s core strength is our experience, ability and willingness to respond 24/7 to meet our client’s needs. In 2008, Discovery provided a wide range of services to over 100 clients. These clients required logistics, service, and expediting to their 39 camps, and an additional 42 rental camps. Camps ranged in size from two to 21 tents accommodating up to 48 people. Our professional staff is always pleased to handle any aspect of your project to ensure it is safe and efficient.

Over the last 19 years, Discovery Mining Services Ltd. has been providing and constructing remote, portable and flyable allweather exploration camps that can accommodate anybody from two to 80 people. These camps have been constructed in the most remote sites in Canada from the east coast of Newfoundland to Nunavut’s Baffin Island to Banks Island in the NWT and the northern reaches of Manitoba, Ontario, Alberta and Saskatchewan. We are simply the most experienced remote camp providers in Canada. We take the worrying out of your hands by offering full planning, cost comparison, mobilization and construction of remote camps from the boardroom to the field. We also have a provision of complete rental camps that range in size from portable early stage grassroots programs to more advanced camps that can accommodate larger crews for drilling, sampling and geophysical work. Our provision of camps range from one tent to 30 tents as the project dictates. Amenities in these camps include all the requirements from complete kitchens, dry/shower tents, offices, sleepers and core logging tents. As well, all of our camps can be broken down to fit in a twin otter or, in the back of a truck, as they are all lightweight and portable. In addition, these camps can come with complete communication systems, as per your requirements, covering both voice and Internet specifications. Our construction crews have a minimum of 15 years experience working in the most extreme locations in Canada under the most adverse weather and transport challenges. They come prepared with the knowledge and tools to get the job done right and are trained in firearm safety, first aid and wildlife management. From Weatherports to Jutland’s to Weatherhavens, our inventory is extensive and covers all the environmental and geoNorthern Prospector 2011-2012

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DISCOVERY MINING SERVICES LTD. graphical challenges. We also carry an inventory of helicopters that have slingable, fluorescent orange, eight foot-by-eight foot emergency drill shelters. Our success is based on the success of our customers. We will provide high-quality camp services on-time and at competitive prices. We also keep our plans and schedules written with a pencil. We are our client’s main point of assistance, and they are always counting on us to get things up and running again. EXPEDITING Discovery Mining Services management team is dedicated to providing our clients with the best in planning, strategy, cost, and organization. We are committed to giving the support your program needs to succeed. Our 24/7 operation is designed to keep our clients comfortable and confident knowing there is knowledgeable and reliable sources at our end at all times.

LOGISTICAL SUPPORT We feel that providing qualified logistical support for exploration programs allows the geologist to concentrate on geology and not project management. The value we bring to a program in cost savings, on time performance, and reliability as experienced logistic and field personnel will keep the program on schedule, under budget, and direct the savings into work on the ground where it is meant to go. For more information please visit them online at www.discoverymining.ca. ✖

First one in...

last one to leave

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ACTIVATION LABORATORIES LTD. Figure 2: SGH Saddle Node Bifurcation commonly termed as a “Rabbit-Ear” Anomaly overlaid with coincident CSAMT response – North Arizona Uranium – Makapuu Uranium Breccia Pipe.

3D-SGH

Spatiotemporal geochemical hydrocarbon targeting signatures for mineral and petroleum exploration By Dale Sutherland, Activation Laboratories Ltd.

SGH is a geochemistry that has been termed as “Soil Gas Hydrocarbons” since its inception in 1996. From years of research, use in exploration and from recent developments of a new 3-dimensional model, a truer terminology for SGH would now be “Spatiotemporal Geochemical Hydrocarbons.” It is an accepted fact today that bacteria are ubiquitous and are feeding on deposits even at great depths. Laboratory experiments have shown that, in the death phase of these bacteria, the hydrocarbons they have synthesized are released. The mix of hydrocarbons provides a geochemical signature that starts its ascent due to effusive processes (Klusman and Saeed, 1996) and enters into a Redox zone. The model by Hamilton (2004) describes these “reduced chimneys” over ore bodies and other reduced features as having very strong redox gradients both horizontally and vertically. Redox-induced spontaneous polarization has then been proposed as the cause of large self potential (SP) anomalies over these buried features. The resultant electrochemical processes occur throughout the entire sequence of cover materials to the surface (Hamilton, 2009). The SGH geochemistry detects up to 162 of the heavier hydrocarbons in this mixture in the C5 to C17 carbon range. This portion of the signature contains 19 different chemical classes or groups of hydrocarbons. Their different chemical characteristics determine a variation in their rates of rise through the Redox zone in the over-

burden which results in a geochromatographic separation of the hydrocarbon flow. In an electrochemical system, nonlinear chemical systems are able to self-organize taking on ordered states such as spatially periodic variations of concentrations of chemical species (Strasser, 2000). The geochromatographic separation of the different classes of hydrocarbons results in self-organized pathways that reflect the physics of the electrochemical cell. Figure 1 illustrates one example of the 3D-Spatiotemporal selforganized hydrocarbon pathways of the 3D-SGH Model developed from three classes of hydrocarbons. This new geochemical model, formalized in January 2011, was presented at the International Applied Geochemistry Symposium in August 2011, and was developed from observations of SGH hydrocarbon flux anomalies from over 500 orientation and exploration surveys. Once these compounds reach the surface, taking a convenient surficial sample of peat, humus, soil, lake-bottom sediment or even snow coupled with an SGH analysis will provide a snap-shot of the occurrence of these hydrocarbon fluxes in a survey grid. These hydrocarbon pathways undergo various bifurcations that explain geochemical rabbit-ear, nested halo and other types of anomalies. Figure 2 illustrates a rabbit-ear anomaly or saddle-node bifurcation of the pathway of a class of hydrocarbons observed above a Northern Prospector 2011-2012

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ACTIVATION LABORATORIES LTD.

SGH anomaly around Gold mineralization in difficult terrain – Mali, Africa

Uranium Breccia pipe in Northern Arizona. Figure 3 illustrates an SGH anomalies outlining Gold mineralization from samples taken in difficult terrain in Mali, Africa. The specific mixture of the hydrocarbon class pathways found over a target results in a forensic signature that identifies the mineralization present and is able to discriminate false anomalies over barren systems from those over mineralized bodies. Many templates of hydrocarbon class signatures have been defined with pathways that vector to blind mineralization and also identify the target type as either copper, gold, nickel, uranium, SEDEX, VMS, lithium pegmatite, polymetallic and kimberlite to over 750 metres in depth, as well as for coal, gas, conventional and unconventional oil plays, in a very wide variety of geologic and geographic settings.

Figure 1: Example of Self-organizing Hydrocarbon Pathways (Ben Pilgrim, Graphic Artist, Toronto Ontario)

The Actlabs Group of Companies is proud to announce the installation of two new full labs in Red Lake and Timmins as well as a sample preparation facility in Dryden. We have also expanded all our existing laboratory facilities to better serve the Ontario mining and exploration markets.

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Red Lake 6 Dryden

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1

Ancaster (Headquarters)

For more information, call us or visit our website.

Activation Laboratories Ltd. 1336 Sandhill Drive Ancaster, Ontario L9G 4V5 Tel: (905) 648-9611 Toll Free: 1 (888) 228-5227 Fax: (905) 648-9613 ancaster@actlabs.com www.actlabs.com Actlabs is accredited to the ISO/IEC 17025 Quality System and to NELAC in the United States for specific registered tests. Actlabs Group of Companies

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The benefits from using the 3D-SGH geochemistry are: • SGH is well known for its success in areas of difficult or disturbed terrain and/or complex overburden; • Redox conditions and self-potential electromotive forces aid the geochromatographic separation of the hydrocarbon classes. Their differential in time during ascent through this electrochemical cell results in regular and symmetrical self-organized hydrocarbon pathways providing spatial vectoring anomalies at surface; • The unique hydrocarbon fluxes are detected as clear symmetrical anomalies; • The occurrence of specific hydrocarbon classes defines a template as a forensic signature to identify the type of target mineralization or play at depth; • The interpretation of the presence of predictable 3D spatial hydrocarbon anomalies provides the highest confidence in interpretation. • The SGH analysis remains the same, but the interpretation of the data using this new 3D-SGH model adds another layer of confidence and may potentially enable a statement regarding depth to the target. ✖


VEYANCE TECHNOLOGIES INC.

NEW TO YOU

Veyance Technologies Inc. offers the industry two new products

Veyance Technologies Inc., the exclusive manufacturer of Goodyear Engineered Products, has introduced Cord Guard XD at the SME annual meeting & exhibit. Cord Guard XD incorporates new technology to reliably identify longitudinal rips in steel-reinforced conveyor belts and stops the operation of the conveyor system to minimize belt damage. At the same time, it monitors and tracks the condition of the steel cable reinforcements deep within a belt to identify any damage that may not be visible on the surface. “Cord Guard XD uses patent-pending inserts to detect belt rips caused by an object that becomes stuck in the conveyor structure,” says Bret Hall, general manager conveyor belt and conveyor belt services for Veyance Technologies. “When an issue’s detected, the tool promptly stops belt operation to minimize rip damage, helping reduce a mine’s total cost of ownership for conveyor belts.” Patented RFID technology is used to uniquely identify each of the rip inserts in the event that they are damaged, permitting Cord Guard XD to correlate its rip insert map with the physical conveyor belt to reduce nuisance alarms.

“Cord Guard XD helps miners prepare for the unexpected,” he says. “By monitoring the reinforcing cords inside steel cable belts, Cord Guard XD identifies and tracks any damage helping operators avoid a catastrophic event and providing vital information for planning belt repairs or replacements.” Hall explains that it also has the capability to shut down the operation of the belt if significant damage is detected that requires immediate attention. “Cord Guard XD’s control unit can be accessed via Ethernet connection to a computer or a plant’s operations network. The output includes an easy-to-understand dis-

Attendees at the 2011 SME show in Denver also go to preview the strongest Flexsteel conveyor belt in the world at the Goodyear Engineered Products booth. Northern Prospector 2011-2012

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VEYANCE TECHNOLOGIES INC.

play showing the full width and length of the conveyor belt,” says Hall. The location and identification of each rip insert is prominently displayed. When an insert is damaged, the image changes to reflect the location and extent of a rip. The same output also shows the location and severity of any damage to the reinforcing cords inside steel cable belts. Attendees at the 2011 SME show in Denver also go to preview the strongest Flexsteel conveyor belt in the world at the Goodyear Engineered Products booth. Manufactured by Veyance Technologies, formerly Goodyear Engineered Products, the Flexsteel ST10,000 belt has set a new bar for extended overland conveying with the ability to carry more material over greater distances or on higher lifts. The belt is capable of conveying 10,000 tons per hour (tph) of ore the height of the Empire State Building, in a single flight or conveying material overland 25 miles in a single flight, according to Terry Graber, Veyance’s world wide technical manager for conveyor belts. “The heart of the Flexsteel ST10,000 is the splice,” says Graber. “With a belt of this magnitude, it’s all about making sure the steel-cord splices will hold up in service. We’re the only belt manufacturer with development capabilities to test splices in-house at these high tensions.” Graber explains that Veyance’s two-pulley dynamic splice tester has allowed the world’s leading conveyor belt manufacturer to quickly advance splicing technology for high tension Flexsteel belts to meet the demanding splice standard set by DIN 22110, Part 3. “This gives Veyance conveyor belts a huge competitive advantage in heavy-duty mining and other highly demanding applications,” he says. Supported by rigorous testing on Veyance’s two-pulley dy-

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namic splice tester – one of two machines in the world capable of such testing – the Flexsteel ST10,000 uses an innovative splice design that has been confirmed at over 50 percent dynamic splice efficiency. “The splice strength we’ve proven in our Marysville, Ohio, Conveyor Belt Technical Center shows that the ST10,000 is the highest tensile strength belt in the world,” says Graber. “In addition, it allows for the highest lift or drop and the longest continuous flight without transfer points. Simply put: it’s stronger than any other belt out there.” The longer flight capability of the ST10,000 allows mining operations to span farther distances without transfer points, meaning less product degradation and less conveyor system maintenance. Improving operations by eliminating dusting, noise and chute blocking are additional factors that lead to lower capital costs for mines. “With the ST10,000 you could redesign the 8-mile, 5,000foot descent of the Los Pelambres conveyor system north of Santiago, Chile, with two flights instead of three,” says Graber. “This is just one more way Veyance conveyor belts are continuing to bring miners lower cost-per-ton conveyed.” Veyance Technologies, Inc. is the exclusive manufacturer of Goodyear Engineered Products worldwide, including Goodyear-branded air springs, automotive belts and hoses, power transmission products, conveyor belts and services, industrial & hydraulic hose, rubber track and molded products. GOODYEAR® trademarks are used by Veyance Technologies under license from The Goodyear Tire & Rubber Company. For more information go to http://www.goodyearep.com/. ✖


POWER UP YOUR CONVEYOR BELT ConquestXP™ Fortified with the power of Fortress™ Technology DUAL LAYER TWILL

The new ConquestXP™ primary crusher belt has the power to keep your bottom line on its shoulders. Your business is too important to leave in the hands of a mortal conveyor belt. Thankfully, tough just got tougher – much tougher ™ – with ConquestXP . An industry leader in strength and impact resistance, the ConquestXP™ conveyor belt was developed to withstand the harshest aboveground belting environments out there, day in and day out. Backed by the power of Fortress™ Technology, and innovation in rubber compounding and reinforcement technology, ConquestXP™ is built to excel in impact and puncture resistance. Available with Goodyear Engineered Products compounds like Defender®, Stacker®, Survivor® and Global X®, this belt is ready for anything you can throw at it.

For more info, call 1-888-275-4397, or visit www.goodyearep.com/ConquestXP

The GOODYEAR (and Winged Foot Design) trademark is used by Veyance Technologies, Inc. under license from The Goodyear Tire & Rubber Company. Goodyear Engineered Products are manufactured and sourced exclusively by Veyance Technologies, Inc. or its affiliates. CONQUEST XP is used under license from The Goodyear Tire & Rubber Company. ©2011 Veyance Technologies, Inc. All Rights Reserved.


NORSEMAN STRUCTURES

BUILD UP - Norseman Structures introduces new building designs After months of research, engineering and design, Norseman Structures has introduced two new buildings to the steel framed, fabric covered building market. The A-Series building is the cost effective, engineered building solution perfect for manufacturing facilities, warehousing operations, salt and sand storage, riding arenas and airplane hangars. The building is available in 30-

feet to 70-feet widths, manufactured to any length. The six-foot and eight-foot leg options provide increased clearance, allowing for improved storage capacity. Designed with functionality and cost in mind, this building is available in a variety of mounting options, resulting in versatile installation, decreased shipping and foundation costs and reduced labor and installation expenses.

"MUFSOBUJWF #VJMEJOH4PMVUJPOT Norseman Structures clear-span buildings provide a strong alternative building solution for mine site operations. Our structures are ideal for: • Exploration, staging and warehousing • Concentrate and bulk storage • Permanent or temporary facilities • Infrastructure weather protection • Workshops, garages and maintenance

$IFDLPVUPVS/&8XFCTJUFXXXOPSTFNBOTUSVDUVSFTDPN 5' 86

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The F-Series building is the heavyduty, wide span premier engineered building solution for large scale operations. This building is available in 90foot to 130-foot widths, manufactured to any length. The I-beam leg provides flexibility in sidewall height, allowing for various overhead door and side entrance options. As well, the straight sidewall design allows customers to utilize complete square footage and store oversized items and materials directly against walls. For added building security, the straight sidewall design permits various exterior finishes, such as metal cladding. Some applications for this structure include sports centers, commodity and equipment storage and production plants. Both the A-Series and F-Series buildings are available worldwide and designed in accordance with structural requirements of the International Building Code, CSA A660-10 and CSA S367. Norseman Structures operates over 200,000 square feet of quality controlled manufacturing space and, combined with an extensive distribution network and corporate offices, is a world leader in the manufacturing and distribution of steel framed, fabric covered buildings. They are committed to becoming the leading and most respected supplier of innovative building solutions in the world. Norseman Structures – Fiercely Reliable since 1921. ✖

Norseman Structures operates over 200,000 square feet of quality controlled manufacturing space and, combined with an extensive distribution network and corporate offices, is a world leader in the manufacturing and distribution of steel framed, fabric covered buildings.


CANDIG

EXCAVATION NATION

CanDig’s portable digging

machine is all over the world Portable Digging Solutions

Soil Sampling Auger Now Available!

CanDig specializes in portable, remote digging solutions for mining exploration, for which a key market is the ability to excavate exploration trenches in difficult terrain. “We needed a small excavator that could be used for mineral exploration that was helicopter portable. The CanDig excavator appeared to be the best one as it was lightest and had already proven its worth as a trenching machine,” says 2011 Prospector of the Year, Shawn Ryan from Ryanwood Enterprises. “It was instrumental in the white gold discovery of Underworld Resources in the Yukon. Now we are using eight of them on other Yukon projects with great success. The CanDig Mini Excavator follows up soil anomalies and

“Mining CD21” www.candig.com 1-800-509-5656 Northern Prospector 2011-2012

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CANDIG A Bell Long Ranger helicopter can easily carry the excavator to the exploration site or we break it down into two pieces when using the smaller Bell JetRanger 206 helicopter.” can dig down to eight feet in depth. A Bell Long Ranger helicopter can easily carry the excavator to the exploration site or we break it down into two pieces when using the smaller Bell JetRanger 206 helicopter.” Attributes include, stability on uneven ground, its helicopter transportability and the fact that it is fully equipped with multiple spare parts. It now also has an auger feature that adds to its probing capabilities. This summer, there were about 40 CanDigs trenching in the Yukon, searching for promising new drill site locations. To date, CanDig has built more than 230 mini excavators, which operate in the Americas, Europe and Africa. ✖

CUSTOM MADE

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Jacques Proulx Ph: (306) 425-2520 Cell: (306) 425-7650 Fax: (306) 425-3871 Email: jpent@sasktel.net P.O. Box 746 LaRonge, SK S0J 1L0 Hot Shot Delivery Services Available in: • Brass • 12L14 Steel • Stainless Steel

We stock what others don’t even make! Metric Specialists

Proud to support the Mining Industry in Northern Saskatchewan

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Outpost Camp Supply, Boat & ATV Rentals, Storage, Trucking (Vans, Decks, Scissorneck 10 Wide). Grant & Lynnette Merriman

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Business 306.425.3715 Fax 306.425.3609 Grant’s Cell 306.425.7681 Ryan’s Cell 306.425.7563 Lynnette’s Cell 306.425.8189

For all your mining and exploration needs


BRITESPAN BUILDING SYSTEMS

HAVE YOU COVERED

BRITE Building Solutions by BRITESPAN Building Systems Based in Ontario, Canada, BRITESPAN Building Systems is a premier Canadian manufacturer and distributor of fabric covered buildings with a dealer network across Canada and the U.S. With over 16 years experience in the fabric building industry, they have supplied and constructed over 5,000 fabric covered structures for several different applications including mining, municipal, aggregate, warehousing and agricultural. They have also constructed buildings as small as 24-feet wide by 30feet long to and as large as 160-feet wide x 937-feet long. From big to small they can cover it all. Product offers range in widths from 24feet to 160-feet too any length required. Custom widths and designs are available for special applications. They company’s free span design allows for optimal storage space. Some of our building models can achieve an interior 50-foot height in the centre of the building. This allows for trucks to enter the building and dump directly inside, eliminating time and labour moving materials in and out of the building. Also, the fabric cover provides great lighting and eliminates the need for costly electrical installations and operation. This creates a safe working environment for your employees. Northern Prospector 2011-2012

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BRITESPAN BUILDING SYSTEMS The building seems bright even on the cloudiest of days. BRITESPAN has three different building models to choose from. The Atlas Series is an arch building available in widths from 24-feet to 82-feet wide. The Genesis Series is a rounded peak building that is available in widths from 60-feet wide to 160feet wide, while the Epic Building has an A-pitch roof line and is available in widths from 60-feet to 160-feet as well. Customers can check out the building’s profiles online to see what building model best suits their needs. The company’s buildings can be customized to meet specific requirements, includ-

ing special door requirements, conveyor systems, internal liners, insulating heating and more. The unique design of the structures allows for cost effective and reduced installation times. Many different foundations can be used including poured walls, sea containers, cement blocks, floating slabs and grade beams. Most buildings can be easily relocated or extended if required. CSA/A660 certified, BRITESPAN Buildings are engineered to meet and exceed the site specific wind, snow and rain loads. BRITESPAN Building Systems can help you with your fabric covered building project from start to finish. Their qualified dealers and building consultants have years of

experience and can recommend the right building solution for you. BRITESPAN CAN CONSULT WITH YOU REGARDING: • Foundations • Cover Replacements for ANY type of fabric building • Capacity calculations • Bid Specifications • Dismantling Buildings • Service or repairs • Yearly maintenance inspections For more information, visit us online at www.britespanbuildings.com. ✖

PLEASE SUPPORT THE ADVERTISERS WHO HELP MAKE THIS PUBLICATION POSSIBLE.

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HUB MINING

KNOW YOUR RISKS

Some risks to mining companies are clear, while others are not

At every stage of development, mining faces multiple risks, each with the power to cause extensive loss of life, equipment, production or income. Some of these risk exposures are the same as any typical business, but others are outside any normal business risk. These nontypical risks can be significantly understated, as they are beyond the norm. What are these risks, and what can be done to done about them? Everyone understands the risks that are typically insured – fire, flood, damage to plant and equipment. Loss-control engineers can assist in reducing fire exposures by improving water availability in dry areas. Liability exposures can also be reduced by blocking off old portals and adits to prevent trespassers from straying into them. And then there are risks that are poorly understood, and yet can make a huge difference to the survival of a mining company, such as: • Loss of profits, not only from events Northern Prospector 2011-2012

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HUB MINING that directly affect the company’s plant and equipment, but also from events that occur to essential suppliers’ plant and equipment – like a transmission line failure offsite that stops all power to the site; or a fire at a third party’s mill contracted by your company to process ore • Loss of life or damage caused by contracted aircraft/helicopters • Expropriation or other government action, such as Venezuela’s nationalization targets, or Zimbabwe’s requirement of more than 50 per cent local ownership • Pronounced commodity price increases which cause very large uninsured losses in profits if any event stops production and your business interruption limit has not been amended Additionally, a common issue that the insurance industry has addressed very poorly is the fact that, in some areas of insurance, taking the cheapest offering may be a very bad decision, as it may not address all your critical needs. The very best way to use insurance to cover all your insurable risk is to choose one single broker, and based upon the broker’s knowledge of the mining industry will canvass the entire market place and present several options to you. The broker’s comparison of coverage terms will then have been negotiated with each insurer, and one insurer leveraged against all others. in this manner, the non-business risks can, where appropriate, be transferred to insurers, with the best price/coverage combination which makes sense to you. If you would like to know more about these, or any other issues, please call HUB’s mining team –Travis Kenzle, Mining Practice Leader – at (604) 331-5467, or go online to www.HUBmining.com. ✖

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RANA

BREATHE EASY

The importance of providing respirable air for underground mine refuge stations and mobile refuge chambers Randy Waylett, Manager, Sales & EngineeringRANA On-site Gas & Mine Refuge Systems (Manufacturing)

Mine refuge stations and mobile refuge chambers play a very important role, both in the immediate safety of an underground mine worker in the event of an emergency, fire or hazardous gas release and in the overall planning of a mine rescue strategy. Having the ability to thoroughly plan a well thought out rescue, with adequate time for implementation and then execution, greatly ensures the safety of both the rescue team and the trapped miners. Simple human “breathing” within a closed space (mine refuge station or mobile refuge chamber) results in carbon dioxide (CO2) being dispersed into the air and oxygen being removed. Over time critical breathable air levels must be maintained in

these locations to ensure safety and sustain life, giving the mine rescue team as chance to execute their well trained practices. Sources of breathable air considered by the mine typically include: • Mine compressed air supply • Oxygen candles • High pressure oxygen cylinders • Natural mine ventilation Each of these methods only deals with a portion of the equation when all the safety factors are considered in ensuring the respirable air is sufficiently being supplied. The ability to supply oxygen that is consumed is a relatively simple process. What is significantly more difficult is the ability to remove the carbon dioxide. With each exhaled breath, the CO2 dissipates to every corner of the refuge station. Any system that does not address the proper control of carbon dioxide levels should not be considered. Therefore the use of just oxygen candles, oxygen cylinders or mine compressed air is not appropriate, especially if the design of the refuge station or chamber is to be air tight. RANA Mine Refuge Systems manufactures the RefugeOne Breathable Air Centre, which is used to maintain the safe levels of both carbon dioxide and oxygen for a specified period of time which corresponds to the mine’s safety rescue strategy. The RefugeOne Air Centre has been developed to both remove carbon dioxide and replenish the oxygen at carefully measured levels, depending on the number of people inside the refuge station, the size of the refuge station and the duration of protection time (typically 36, 48 or 72 hours). The RANA RefugeOne Breathable Air Centre is an independently run system with its own back-up power system (DC batteries) that can maintain safe breathable air levels. The RefugeOne Air Centre has been carefully tested and specifically developed for this application. With easy to use instructions, the RefugeOne Air Centre is used as either primary or secondary breathable air sources to ensure all kinds of emergency possibilities are covered. Whatever your mine rescue strategy is, be assured your breathable air source is covered. Given that the activity in mines is continuously developing and moving, the location and number of people in certain areas also changes. Therefore strategy reviews should be done on each refuge station within the mine on an ongoing basis. Irrespective of the method used to provide respirable air, all personnel working underground should be well trained on the effective use of the respirable air source being supplied to mine refuge stations and mobile refuge chambers. Ongoing service and training on these systems is critical to the mine safety plan. ✖ Northern Prospector 2011-2012

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RAPID-SPAN

BUILDING BRIDGES

Rapid-Span’s quality products and services have generated the company’s strength in the marketplace

Rapid-Span consists of a group of companies that specialize in the manufacture of steel, precast and timber components for the transportation industry, and in particular, bridges. The company manufactures bridges for a wide range of industries including, industrial (oil and gas, forestry and mining), highways, municipal, pedestrian and railway. With production plants in B.C. and Alberta, they have been supplying bridge systems and components to the industry since 1983 throughout North America and overseas. Rapid-Span’s industrial bridges are custom designed and built to meet the special requirements of the forestry, mining and oil and gas industries. Their bridges come in a variety of sizes, types and loading requirements. These bridges are designed for easy transportation and quick installation. Rapid-Span also has a broad range of bridge styles available that can be used for permanent, semi-permanent or portable applications. In addition to their well known reputation as a steel fabricator, Rapid-Span’s CSA certified precast plant is continuously producing products for the bridge industry from whole bridge systems to various components. These products offer excellent quality and value to customers. Some of the precast bridge related products include:

• Prestressed box and “I” beams • Small to medium span slab bridges • Open bottom culverts • Precast deck panels and ballast walls • Substructure elements • Stay-in-place deck forms The company’s fabrication facilities make use of overhead cranes, fully automated subarc gantries, CNC burning

equipment and other specialized and custom built equipment. Their precast prestressed facility utilizes heated beds and steam generators for efficient production and curing. By constantly striving to reduce cycle times and maintain quality, Rapid-Span can provide customers with the most cost effective solutions to fast track project needs.

Rapid Span - Serving The Bridge Industry For Over 25 Years!

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1-800-661-2047 www.rapidspan.com

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RAPID-SPAN

Quality products and service have generated the company’s strength in the market place. Customers know their orders are filled with close regard to quality, a respect for deadlines and dedication to customer service. The company adheres to a strict and comprehensive quality management program. All products must comply with high standards and are subjected to rigorous testing to ensure they exceed industry standards. Rapid-Span

has developed systems to endorse their commitment to quality, and this commitment to quality is confirmed with their ISO9001, CISC, AISC, and CSA quality certifications. For more information on how Rapid-Span can assist you with your next bridge project, please see their website www.rapidspan.com or give them a call at 1-800-661-2047 to discuss what options are available. ✖

Cradle to cradle

Exploration, feasibility, due diligence, engineering and operations through to mine closure. Our global experience give you expert, integrated solutions on every phase of your mining project. Same team — start to finish.

.com > 1,000 professionals • > 40 offices • 19 countries • 6 continents

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Rapid-Span’s industrial bridges are custom designed and built to meet the special requirements of the forestry, mining and oil and gas industries.


SAO

COLOUR OF SAFETY

Using the right colours and contrasts on signage create a safer work environment By Darren Mirau, OVC Coordinator at the Saskatchewan Association of Optometrists (SAO)

An important factor in creating a visually safer environment is to create as much contrast as possible. Contrast is directly related to visual acuity. Colour contrast is best when complementary colours are used, as the greatest “colour difference” can be obtained. This contrast shortens visual search and perception time and therefore serves as both a safety and a performance function. A quicker reaction time is a safer reaction time. Three areas of colour coding standards include equipment, pipelines and accident prevention signs and have become essential in the industry. Most people are probably unaware of what meanings specific colours have in the world of safety. Seven basic colours are used to identify hazardous and emergency areas and when used in conjunction with letters and symbols, will make signs easily identifiable. Some examples of colour usage are: RED INDICATES FIRE HAZARDS, DANGER, EMERGENCY STOP LOCATIONS AND FIRE PROTECTION EQUIPMENT. ORANGE TRIANGLES OR ARROWS WILL HIGHLIGHT DANGEROUS PARTS OF MACHINES AND EQUIPMENT THAT COULD CRUSH, SHOCK OR CUT. YELLOW OR BLACK AND YELLOW CHECKERS/ALTERNATE STRIPES WILL INDICATE POTENTIAL HAZARDS AND UNSAFE PRACTICES. THIS ALSO CAN INDICATE CAUTION AGAINST SLIPS, FALLS, TRIPPING OR GETTING STUCK BETWEEN OBJECTS.

More examples of colour contrast can be found when compressed gases are used. Colour is an important identifier of what the specific gas is, such as gas used for medicinal purposes and indicated with the name of the gas being lettered on the cylinder and marked with a definite colour. In areas of immediate danger, signs with the word “danger” should be written in white on a red oval inside a black rectangular panel. Triangular shaped fluorescent yellow/orange colouring with a dark red reflective border will be used to identify “slow moving vehicles.” Biological hazards will be indicated with white tags or fluorescent orange or orange/red symbol/colour signs.

Psychological effects of colour include its influence on size, temperature, space, hardness and weight. Moods and feelings can be affected by colour and thus reflect on levels of comfort and productivity. Blue and green are soft colours that make objects appear larger, colder and receding. Red, white and yellow are hard colours that make objects appear smaller, warmer and move forward. Therefore, we can determine that the use of colour, whether to attract our attention, to warn of potential danger, to indicate materials in use, or to create a psychological affect in our work environment, is a visual stimulant that can be considered a significant factor in creating a safe industrial setting. ✖

Occupational Vision Care Program Tailor Our Program To Meet Your Company’s Safety Eyewear Needs

The Saskatchewan Association of Optometrists

BLUE IS USED TO DISCOURAGE USE OF UNSAFE EQUIPMENT OR ON BULLETIN BOARDS AND INFORMATION SIGNS.

108-2366 Avenue C North

GREEN IDENTIFIES THE LOCATION OF FIRST AID AND SAFETY EQUIPMENT.

www.optometrists.sk.ca

PURPLE IN CONJUNCTION WITH MAGENTA AGAINST A YELLOW BACKGROUND, THREE SPOT TRIANGULAR DESIGNS DENOTE NUCLEAR RADIATION HAZARDS. BLACK AND WHITE STARS IDENTIFY TRAFFIC PATTERN.

Saskatoon, Saskatchewan S7L 5X5

Phone: (306) 652-2069 Email: saoovc@sasktel.net

TAKE RESPONSIBILITY FOR YOUR EMPLOYEES EYE SAFETY

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HORIZON STRUCTURES

GIVE ME SHELTER

Horizon Structures portable buildings providing shelter where ever you need it Alberta’s Horizon Structures is a family owned and operated business that produces high-quality, portable steel and fabric covered buildings that are ideally suited to the mining industry. These structures that are easy-to-transport, easy-to-assemble, and they provide topnotch protection from the elements for your mining and drilling equipment. Robert La Porte, owner and operator of Horizon Structures, and his team of building professionals have more than 30 years experience in the covered building industry. All structures are designed and built to 2006 International Building Code standards by Canadian engineers using hot rolled, black steel pipe frameworks and high-grade polyethylene and PVC fabric covering systems. These are the some of the highest quality materials available and will ensure easy maintenance and superior strength and longevity. Horizon Structures uses hot dipped galvanized metal for all of its frameworks. Hot dip galvanizing is the only process that meets ASTM 123 standards for the corrosion protection of steel. This method protects the steel by putting it through a series of chemical baths before dipping it into a last 840° bath in which zinc chemi-

cally bonds to the steel. In the technique’s final step, the newly galvanized material is exposed to a natural cycle of temperature and atmospheric change which causes a patina to form on the zinc and affords the steel maximum protection. Steel frameworks can be powder-coated with a drip-free finish that not only looks great but provides your building with an additional layer of protection against rusting, chipping, scratching, and fading. All building covers are constructed of 12 to 14 oz. /yd2 polyethylene fabric and 32 oz. PVC fabrics. Coverings for larger buildings (80’-200’ wide) are stretched over individual bays. A key advantage of Horizon Structures’ individual bay system is that it offers considerable cost savings in terms of repairs and time. Bay covers can be replaced bay by bay instead of having to replace a building’s entire covering system at once. Individual bay replacement also means that you do not have to find alternate shelter for equipment during repairs; equipment can be shifted into a different bay during down time. Horizon Structures uses Keder attachments to secure covers to frames and, because the attachment system is frictionless, it does not create weak spots in the

Missinippi Airways serving the north since 1987 w w w. m i s s i n i p p i a i r. c a

The Pa T P s 1-87 8 7-6 7- 0000 7160 716 16 0 Tho o mps mpson pson o 1 on 1-877 1877-67 -677-1 7 7-1670 670 Flin F Flo Fl Fli Flon 1-877 7 -800-0 0 377

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Individual bay replacement also means that you do not have to find alternate shelter for equipment during repairs; equipment can be shifted into a different bay during down time. fabric while it is on the truss system. This further reduces maintenance and repair costs. Like friction, Tightening straps in the middle of the building while performing routine maintenance can also create weak spots in the fabric. Horizon Structures eliminates this possibility because all cover maintenance is performed at ground level. Not only is this better for your covering, but it’s safer and easier for your staff too. Not only are Fabric covers attached to the settle framework, they are also anchored to the building’s foundation using coated steel cables. These coated steel cables do not unravel like rope or other lower quality anchoring methods do, so cables will also require less replacemend anr repain. Horizon Structures can provide you with structures ranging in size from 26 to 200 feet wide. Foundational options depend on the size of the building and can includg pre-cast blocks, Jersey barriers or T or L panels. For added stability, wind cable and wind reducer supports are incorporated into the steel frameworks of larger buildings to ensure your building withstands the very harshest weather. Horizon Structures provides a truly superior outdoor building for all your mining and storage needs. Our experienced and knowledgeable sales team will work with you to provide you with a customized structure that explicitly meets your mining and drilling requirements. To learn more about Horizon Structures and its products, visit us at www.horizonstructures.ca or contact us toll free at 1.888.923.3829. ✖


MACPHERSON LESLIE & TYERMAN

KNOW THE LAW

Some legal matters of note that affect Saskatchewan’s mining industry By Danny Anderson and Penny Yeager, MacPherson Leslie & Tyerman LLP, Mining Practice Group

There is no shortage of legislation that applies to exploration and mining operations in Saskatchewan. However, not all practical questions may be easily answered by pouring through the statutes and regulations. Natural resource development continues to be strong in Saskatchewan, and below are a few topical matters that we have been assisting with recently. UNITIZATION ARRANGEMENTS It is common in the potash industry for producing companies to consider a unitization arrangement with the Saskatchewan Crown and other holders of “subsurface minerals,” including potash. Mineral legislation, along with associated regulations, contains general authority for the Crown to enter into unit agreements. However,

MINERS INCORPORATED

the legislation does not specify terms for a unit agreement. In general, a unit agreement relates to a specific area that a potash company desires to mine. Within that area, the potash company will, to the extent possible, arrange to lease potash lands that it does not own. The company will often also request that all lessors, including the Crown, enter into a unit agreement for the orderly production of all potash in the given area. After a unit agreement has been signed by the parties, the following principles generally apply: • All of the potash lands that the company owns and is leasing are considered to be a single, consolidated unit for production purposes. • No matter where the potash company mines in the unit area, every party to the unit agreement will receive royalties as

Norwest Manufacturing DIVISION OF PRENDIVILLE INDUSTRIES LTD.

Geological Instruments, Gold Panning Supplier, Compasses, Magnifiers, Sample Bags & Containers, Books, Mineralogical Supplies, Field Appeal, Tools, Worldwide Shipping Phone: 208-628-3247 Fax: 208-628-3749

Website: www.minerox.com Email: sales@minerox.com

Box 265 Thompson, MB R8N 1N1 Phone: 204-677-5060 Fax: 204-677-5964 jgjuneau@norwestmfg.com Manufacturers of: Shipping Boxes Pallets Core Trays HT certified CA-00128

Supplier to Northern Canada and the Pacific Rim. Supplier of specialty wood products to Vale and northern Manitoba for over 40 years.

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MACPHERSON LESLIE & TYERMAN potash is mined. If a unitization arrangement was not in place, parties would receive royalties only when their own mineral lands are mined. • The royalty rate payable to each party (except the mining company) is set out in the lease between each lessor and the mining company. • Royalty payments are made on a pro rata basis, based on the aggregate number of potash acres that a particular party has in the unit area, divided by the aggregate number of all of the parties’ aggregate potash acres in the unit area. SURFACE LEASES IN NORTHERN SASKATCHEWAN Companies that want to mine minerals in northern Saskatchewan must generally negotiate with the Saskatchewan Crown to obtain any surface rights they need for their projects. Within the past couple of years, the process for obtaining a Crown surface lease became a bit more straight-forward. The previous requirements of obtaining Saskatchewan Cabinet approval and having company-specific regulations implemented no longer apply. Currently, companies enter into negotiations with the Ministry of First Nations and Métis Relations. A proponent is also required to conduct an environmental im-

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pact assessment and receive the approval of the Minister of Environment before a project can proceed. In addition, there is a consultation process where the proposed project’s effect on the Aboriginal or Treaty rights of First Nations and Métis people in the area must be considered. Finally, the requisite permits and licenses must be obtained. For uranium companies, this would include obtaining applicable licenses from the Canadian Nuclear Safety Commission. MINERAL TITLE HELD IN THE NAME OF A DECEASED INDIVIDUAL Mining companies operating south of the northern administration district often need to obtain mineral rights from private persons. In such circumstances, it is important to examine the title to the applicable mineral lands in order to determine who the mining company should be contracting with. Occasionally, surface or mineral titles are registered in the name of a deceased individual. Before such lands can be purchased, leased or otherwise disposed of, the title must be transferred out of the name of the deceased person and into the name of the appropriate living person. If the title in question is registered solely in the name of a deceased individual, the title must be transmitted into the name of the

deceased’s “personal representative” - either an executor under a will or an administrator under letters of administration. To accomplish the transmission, certain applications must be made to Court and to our land titles system. If the property in question is registered jointly in the names of a deceased person and a living person, the title can be transferred into the name of the surviving person. A copy of the Saskatchewan Vital Statistics death certificate is required. If title to the property is in the name of a minor, a proposal must be made to the Saskatchewan public guardian and trustee before the title can be dealt with. This proposal requires the consent of the minor (if he or she is over the age of 14) and the minor’s property guardian. If the minor has no property guardian, then the consent of his or her legal custodian is required. If the public guardian and trustee determines that the particular property arrangement is in the best interests of the minor, consent will be given. The applicable contract will then be binding on the child. Danny Anderson and Penny Yeager have extensive experience with MacPherson Leslie & Tyerman LLP’s Mining Practice Group, and are very pleased to be able to assist Saskatchewan’s mining industry during such busy and exciting times. ✖


PAJARI INSTRUMENTS LTD.

ON THE LEVEL

Pajari Instruments Ltd. introduces e-SYNC, a new survey system location. The e-SYNC also has a multi-shot timed function where it can record up to 1,000 surveys in a single trip down (or up) the hole. This mode operates much in the same way as the single shot, except that the operator will be stopping a definable number of times at user definable time intervals. Finally, there is an automatic mode where the e-SYNC senses non-movement of the instrument for one minute to activate a survey reading. After any of these methods, the instrument is then retrieved, and the data is downloaded to the hand held computer. The operator then can view the survey, and save it to the hand held computer for later review. The data is also date and time stamped to give the project management some piece of mind that the surveys were done when expected. At Pajari Instruments, the company pride themselves on providing the customer a complete survey solution. Along with e-SYNC, they stock a multitude of survey accessories from core retrieval and orientation to hole inclination survey, wedge setting and directional drilling applications. They can also provide customers with customization of existing products, or custom designed products. “We are very knowledgeable in surveying methods and best practices and we have been educating the industry for over 65 years. We can help you understand the need and the limitations of current surveying methods, and how best to maximize your accuracy or speed,� says Sherry-Anne Pajari, Pajari Instruments Ltd. ✖

e-SYNC Surveying Instrument Inclination and Toolface Measurements In Boreholes Drilled In Any Direction

Pajari Instruments Ltd. has been building instrumentation for the mining, exploration, directional drilling and oil and gas markets for over 65 years. They design, build and service all instrumentation in house at the company’s facility in Orillia, Ontario. The eSYNC, the newest instrument to come into production, measures inclination and tool-facing (roll) with dependable, known accuracy. For all of its unique features, it is surprisingly affordable for those jobs requiring inclination and/or tool-facing in core orientation, wedging, directional drilling, camera orientation and casings cut-outs. The e-SYNC was designed and built to perform reliably in fast paced and physically demanding conditions and its distinction in this area has been field-proven. An important feature of the design is that the hardened stainless steel housing is not opened as all procedures are accessed from outside the instrument housing and all components operate on rechargeable batteries - no pressure container needed. Water damage is a thing of the past. The e-SYNC operator can configure the survey into three different modes. The data can be obtained through a single shot timed survey, where the operator sets the time delay on the surface with enough time to get to the survey location, places the instrument in the survey location and waits for the time to countdown. The time it takes to actually record the survey is less then a minute, so the limiting factor is how fast you can get the tool to the survey

BENEFITS s s s s s s s s

!COSTEFFECTIVESOLUTIONFORCONTINUOUSORPERIODICSERVICE %MBEDDEDWIRELESSCOMMUNICATIONELIMINATESTHENEEDFORON SITE USERACCESSINTOTHEBODYOFTHEINSTRUMENT3URVEYRESULTSCANBE DISPLAYEDWITHOUTREMOVINGTHEINSTRUMENTFROMTHESURVEYTRAIN 5SERINTERFACEPROVIDESEASYINSTRUCTIONSELIMINATINGTHENEEDFOR SPECIALIZINGTRAINING 4IMESTAMPINGANDOTHERSECURITYFEATURESGIVECONlDENCETHATTHE SURVEYSAREPERFORMEDASSPECIlED !SELF TESTISPERFORMEDONTHEINSTRUMENTSENSORSBEFOREEACHSURVEY WHICHINCREASESRELIABILITY4HESTABILITYINDICATORINDICATESWHETHEROR NOTTHEINSTRUMENTMOVEDWHILETHESURVEYWASBEINGRECORDED )NSTRUMENTDESIGNINCLUDESREDUNDANTSENSORAXES 5SERFRIENDLYTOUCHSCREENINCORPORATESLARGEBUTTONSFOREASEOF USE INAVARIETYOFENVIRONMENTS 3URVEYSCANBEDOWNLOADEDTOEITHERACOMPUTERORLAPTOPFOR FURTHERPROCESSING INTRODUCTORY PRICE E 39.# T )NCLINATIONROLL   E 39.# I )NCLINATIONONLY   Limited time offer. Subject to change without notice.

PAJARI INSTRUMENTS LTD. (EAD/FlCE #ARLYON,INE /RILLA /. #ANADA    4EL    &AX SALES PAJARICOM\WWWPAJARICOM

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TIGERDALE ENTERPRISES LTD.

HAVE IT IN THE BOX

Tigerdale Enterprises Ltd. celebrates five years of business due to a group of visionary entrepreneurs In June of 1996, in the small community of Pleasantdale, Saskatchewan, the final bell rang for the students of Pleasantdale Central School. The school was slated for demolition by the school division, however a group of local businesspersons put together a proposal to save the building and the company Tigerdale Enterprises Ltd. was formed. Tigerdale Enterprises Ltd. is not only a property owner but is also the business name for the manufacture and selling of coreboxes, core box lids, coreracks, marking blocks and surveyors lath, all used in the exploration and mining industry. Yvette Dudar, office manager says there are several factors that has made Tigerdale Enterprises so unique and viable in it’s first five years of business. “I think our ability to understand that the exploration industry is not a nine to five business and our willingness to be available after hours and weekends and holidays has certainly helped us along the way. We strive to work with the customer to ensure they receive their orders on their schedule or time-frame,” she says. And, what customers are ordering are “western style,” or plywood bottomed core boxes, constructed in a fashion that does make it

We ship Canada-wide and pride ourselves on fast friendly service. Western Style core boxes manufactured with plywood bottoms and extra screws and nails for added strength. We carry NQ, HQ, BQ, Lids, marking blocks, surveryors lath. Custom sized boxes are manufactured upon request.

Core Racks with treated wood and metal tubing - both in NQ and HQ sizing.

Enclosed Core racks protect your core from the elements .

PO Box 58 201-1st Street South Pleasantdale Saskatchewan S0K 3H0 T (306) 874-5540 | F (306) 874-5568 E tigerdale-enterprises@hotmail.com | www.tdecoreboxes.ca

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Tigerdale Enterprise Ltd. Core Boxes and Racks


TIGERDALE ENTERPRISES LTD.

Tigerdale Enterprises Ltd. is not only a property owner but is also the business name for the manufacture and selling of coreboxes, core box lids, coreracks, marking blocks and surveyors lath, all used in the exploration and mining industry. a much stronger, and more durable than some competitors’ boxes. While the bulk of their business is in the NQ or HQ sizing, they also make BQ, NQ2, PQ and other custom sizes. They also manufacture several styles of core racks to house the core boxes and have provided skid trailers on occasion. Tigerdale Enterprises ships Canadawide from coast to coast. “I believe our coreboxes have been used in just about every province and territory with perhaps the exception of PEI and Nova Scotia,” says Dudar. Staff consists of local residents, in-

cluding Dudar and her husband Rob, the company’s on-site journey-man carpenter, and on occasion ,completes special projects for customers. With over 20,000 square feet of usable floor space, Tigerdale Enterprises has several businesses renting floor space, including a Canadian based diamond drilling company, and a coffee shop that serves as a town meeting place most mornings

Tigerdale is very open to meeting potential clients as well. The company has a booth the Saskatchewan Geological Conference in Saskatoon every year, and invites people to stop in or come by the plant in Pleasantdale. “We here at Tigerdale feel confident that we manufacture a superior product. Our intention is to be one of those businesses that is here to stay for many years to come,” says Dudar. ✖ Northern Prospector 2011-2012

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G&B

COVER UP - G & B Portable Fabric

Buildings Ltd. offers HiQual portable fabric buildings Do you need a building that’s portable, can be erected in hours rather than weeks and has unlimited uses? HiQual Portable Fabric Buildings, offered by G & B Portable Fabric Buildings Ltd, a building everyone can use. HiQual started operations in 1978 in a small Winnipeg shop focusing on the manufacturing of livestock handling equipment. By working together closely with their dealers and customers, the product line has been constantly expanded and updated to include numerous patented items, such as fabric covered steel frame buildings, that have been highly sought after. Quality and innovation, combined with value have been the bench marks that have made HiQual a recognized industry leader. The company’s goal continues to be to provide greater value with new products that better meet the needs of their customers, while maintaining a level of quality that is unsurpassed in the industry. CWB certified welding staff ensure that each weld and truss are manufactured to the highest standard. Membrane fabric cover steel buildings are the leaders in growth and popularity over the last 10 years, and the company is leading the way in construction techniques and designs that their customers are demanding. The company’s building are designed with the latest modern technologues that are available to maximize the strength and durability of a balanced framework. Their research and development team apply standard techniques to bring the buildings to a physical failure point to ensure their performance int he field. The company also uses outside engineering firms to assist and qualify

the design and performance of the structures during these tests. All HiQual products are finished with their distincitve HiQual Brown Powder Paint. This finish and colour have become wellknown in the industry for its long-lasting quality which provides a glass-like, non-abrasive, smooth finish to prevent any premature wear in the future. Every HiQual structure also includes high solar energy values and high light transfer. During daylight hours, the company’s buildings will be up to 20 F warmer than a conventional building, and up to 80 per cent light transfer allows for a high degree of comfort and enjoyable working conditions. The building’s round over design is proven to be the configuration that provides the best performance and longevity of all the main covers. Care must be taken at all times to ensure the covers are tight to the frame members and not allowed to vibrate in windy conditions. Any straight line roof configurations are considered to be less that adequate for maximizing the longevity of the covers. All HiQual buildings are pre-engineered and are modular in design allowing several buildings to be “connected” to each other, offering unlimited lengths. Simplicity is the rule, with minimal heavy equipment required. Low cost foundation options can meet most of their customer needs. With the recent expansion of their Winnipeg-based production facility, HiQual once again has shown their commitment to quality, innovation, safety, value and customer service in everything they do. ✖

24’to 86’ WIDE Clear Span Buildings

ALL MODELS INCLUDE THESE VALUABLE BENEFITS: t Fabric over steel buildings allow up to 70 percent interior light transfer t Round Over Roof Design maximizes life of fabric by as much as 25% t Buildings are all clear span allowing for maximum use of space t Buildings can be easily relocated 104

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Phone: (204) 299-6338 www.gandbbuildings.com


ARGO

THE YEAR IN ARGO

The most capable, low-impact, amphibious and extreme performance vehicles for drilling, exploration and mining fleets Mining and mineral extraction involves overcoming many difficult challenges; maintaining an all-season, all-terrain vehicle fleet should not be one of them. Work crews and equipment must have the freedom to traverse miles of undeveloped wilderness for prospecting new mining sites, conducting environmental surveys and managing drilling rigs during any time of the year over an endless variety of solid and semi-liquid terrain. ARGO’s flagship HDi and Centaur models offer the best of all worlds for Fleet Managers operating in remote areas. These unique machines have a low relative cost, in comparison to tracked hydrostatic vehicles or helicopters, and balance a low terrain impact with a high payload capability for both personnel and gear. ARGO’s HDi and Centaur lineup provides the best value, extreme-terrain capable solutions for delivering work crews and the ability to deliver equipment anywhere it is needed. Areas inundated with temporary flooding, criss-crossed by small streams, or dominated by a tailings pile are no match for these vehicles. Decades of experience in the most rugged places on earth help ARGO to offer machines that are low-maintenance anad extremely reliable. Why utilize a fleet of different tracked vehicles, UTVs, trucks, snowmobiles and small boats? One amphibious ARGO, carrying cargo and up to six passengers, can do it all. Fully enclosed cab and track kit options will ensure that valuable personnel

resources stay productive and will allow work to be completed in an efficient manner regardless of the environment. In addition, ARGOs have an endless variety of accessories and customization solutions that capitalize on the expansive rear cargo area (ARGO) or mounting frame (Centaur). Options for exploration and drilling fleets are almost limitless, including cargo boxes, drills, cranes, tool kits, and much, much more! Mounting systems for extra fuel or a spare tire, a winch, or a cargo bed liner to protect the vehicle from abrasive tools and mineral samples are also readily available. 2012 ARGO HDi and Centaur – a low cost solution to replace expensive hydrostatic vehicles when people and equipment transport is required ARGO has outfitted its top-of-the-line 2012 ARGO 8x8 750 HDi with the advanced features that exploration utility fleet managers are looking for lighter steering effort for all-day ease-of-use, a more powerful drive train for accomplishing the most rugged tasks, comfortable seating, massive storage space and a more durable. AMPHIBIOUS UTV Extreme Off-Road Performance design to maximize utilization - getting the job done anytime of the year. The 2012 ARGO HDi and Centaur fleet is fuel efficient, simple to maintain, and enviNorthern Prospector 2011-2012

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ARGO ronmentally friendly due to its very low ground pressure. The patented ADMIRAL transmission takes the driving experience of the full skid steering system to a level never seen before in this price range. The all season 2012 ARGO 8x8 750 HDi pairs the ingenious triple-differential ADMIRAL steering transmission with a powerhouse 31-hp fuel-injected engine to create something truly unique: an all-terrain, amphibious off- roader that turns with ease in high gear, while maintaining its amazing, onthe-spot maneuverability in low gear. For 2012, ARGO is introducing a new high torque alternative, allowing the operator to improve performance and mobility in extremely difficult terrain conditions. ARGO’s 2012 models continue to benefit users with a quiet muffler and improved engine compartment cooling. For more comfort, all liquid cooled 8x8 ARGO models can be equipped with optional suspension seats and a convenient entry step. The heavy duty Centaur 8x8 DT, with its 3 cylinder liquid cooled 34 hp turbo diesel engine, provides more power and load capacity when the mounting of cranes, drills, cargo boxes and fire & rescue equipment is required. In addition, the Centaur comes with a wide range of track solutions for extreme terrain performance. THE FREEDOM TO DEVELOP AND MANAGE VALUABLE RESOURCES This remarkable vehicle family offers a suite of premium features not found anywhere, including the ARGO’s unique 25” offroad amphibious tire, providing greater ride comfort, all- terrain traction and propulsion over water. In addition, ARGO offers a wide selection of extreme performance tracks that virtually go through any terrain. Large triple-sealed outer bearings and heavy-duty axles enhance durability and life expectancy in demanding off-road conditions.

The overall result: a superior amphibious UTV for up to 6 passengers that is simply in a different league. The 2012 models reflect ARGOs industry-leading advancements in steering efficiency, low maintenance and ergonomic design. For 2012 there is wide selection of ARGO models: ARGO 8x8 750 HDi Special Edition, ARGO 8x8 700 HD, ARGO 6x6 650 HD, ARGO 8x8 700 HD EU, with road approval for Europe, as well as the entry model ARGO 8x8 Frontier 650, providing great value at the most attractive price. All 2012 ARGO vehicles are available in tundra, yellow, blue, black, and red. In addition, ARGO is introducing an advanced environmentally friendly Gardobond® metal coating process providing significantly improved performance and durability, without containing any hazardous heavy metals. In summary, ARGO’s new 2012 HD Series are a quantum leap in all-terrain extreme versatility, performance, comfort, power, and ruggedness. When mining The ARGO product line is designed for mining, resource exploration, utility construction and maintenance, the public sector, as well as agriculture and forestry. This versatile all-season workhorse can be equipped with optional accessories such as rubber tracks, convertible top, receiver winch, windshield, bilge pump, spare tire and fuel carriers, cargo box liner and many other endless custom solutions for any given task. Engineered and produced continuously since 1967, every ARGO is backed by decades of unrivaled experience in the design and manufacturing of off-road vehicles. Today, ARGO is the world’s leading manufacturer of lightweight amphibious vehicles and innovative off-road platforms. ✖

•Amphibious* •All Season •All Terrain •All Wheel Drive •Up To 6 Passengers*

Guertin Equipment 1-877-274-6288

ARGOutv.com/exploration

WINNIPEG MANITOBA

204-255-0260

guertin.ARGOutv.com

Vehicles shown with optional accessories. * ARGO models only. Does not apply to CENTAUR 8x8.

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DSG POWER SYSTEMS

RELIABILITY AND ECONOMY These are the hallmarks of DSG Power Systems

Saskatoon’s DSG Power Systems is a well-known name in the diesel power industry on the prairies, having made itself known since 1983 in the engine distribution and repair segment. In 1989, the company, with it’s eye on the effects of the move to ultra-low sulphur diesel fuel and the accompanying changes to diesel fuel injection systems, made a move into the premium diesel fuel treatment market. Establishing its 4+ line of fuel enhancement and treatment products, the company made their mark in reducing maintenance costs, while reducing fuel consumption and emissions in many industries.

Since the move to its new 31,000 square foot facility in Saskatoon at the beginning of 2000, the company has made another bold move - building and supplying generator sets to the exploration, mining, oilfield and agricultural industries.

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DSG POWER SYSTEMS

“With our background in engine sales, and increasing demand for generator sets from all market segments, it just made sense for us to make the move into power generation packaging.” – Percy Hoff, President and CEO DSG Power Systems has quickly become known as a fast and reliable source for diesel and natural gas powered generator sets, with sales currently growing at more than 30 per cent per year. “The advantage we have is flexibility,” says Percy Hoff, president of DSG. “We

OSPREY WINGS

are able to be quite nimble with our production, and therefore can tailor most applications to suit our customer’s needs.” A real strength for DSG in the power generation market is their line of superquiet diesel-powered generator sets. More and more exploration companies are

LTD.

NORTHERN SASKATCHEWAN AIR CHARTER SERVICE

Providing Charter Services in Northern Saskatchewan Since the 1970s! AIRCRAFT OPERATED • De Havilland DHC-6 Twin Otter • De Havilland DHC-3 Turbo Otter • De Havilland DHC-2 Beaver • Cessna C-185 • Beach 1900 D Box 990, La Ronge, Saskatchewan S0J lL0

P. (306) 635-2112 | F. (306) 635-2116 | E. fs.ospreywings@sasktel.net

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concerned about providing quiet power at their camps, explains Hoff and the company is able to provide generator sets with very low noise levels. DSG recently supplied Hathor Exploration with two super-quite gensets for the Athabasca Region camp. The Yanmar powered units are rated at only 63dB(A) at seven meters, which is extremely quiet, explains Hoff. Building and selling generators is one thing, but being able to offer backup service is extremely important in this industry, and that is where DSG Power Systems shines. “Our business model is based on trust with our customers. Every DSG employee understands that our customers pay their wages, and therefore we value them like gold,” he says. At 60 years old, Hoff still keeps a steady eye on the business, even after 27 years of operation. It is important, he feels to let everyone know that he is still passionate about the business, and cares about each and every customer. “This has been the hallmark of our business since 1983,” says Hoff and it is not about to change. ✖


MARCH CONSULTING ASSOCIATES

HOME BASE

March Consulting Associates Inc. are specialized in Saskatchewan

Based in Saskatoon, Saskatchewan, March Consulting Associates Inc. is a multi-discipline engineering company with specialized expertise in the Canadian mining industry. March provides engineering, procurement, project and construction management services to a variety of resource-based industrial and commercial enterprises and has been doing so since 1999. Employees are drawn from a diverse group of professionals, the core of which have been active in the Canadian mining industry for decades. Brought together under March, they have executed multi-discipline projects of varying magnitude for all of the major mining companies in Saskatchewan, continually increasing March’s expertise in the industry. March’s mining project experience runs the spectrum from capital cost estimates and feasibility studies, to turnkey EPCM/ EPC mine expansions and asset integrity work; March is equipped to serve clients at any stage of a project’s lifecycle. Mining projects, studies, and reviews are becoming increasingly important due to the ongoing global desire for Saskatchewan’s abundant natural resources such as potash, gold, diamonds, oil and uranium. March continues to invest in the development of its expertise in all aspects of the mining industry from pre-feasibility to startup, operation and decommissioning. March has particular expertise in: • Concept development • Feasibility studies • Cost estimation • Environmental assessment • NI 43-101 reporting • Asset integrity

Engineering services are provided in a number of disciplines including mechanical, structural/architectural, civil, mining, process, electrical, instrumentation and safety. Projects are executed by project, and construction management professionals and a team dedicated to the delivery of client-tailored, industry leading project services. These include scheduling, cost estimating, risk management, quality management, safety services, procurement, environmental assessments and permitting. March is proud to call Saskatchewan home. As the largest Saskatchewan-owned industrial multidiscipline engineering consultancy in the province, it believes in the endless potential of the province. With March, you receive the best of both worlds: the experience, sophistication and capability of an engineering firm with international experience, along with the agility, flexibility and adaptability of a Saskatchewan-based company. Combine that with expertise in Saskatchewan potash, uranium, base and precious metals and you have an organization that is ready to deliver quality work in any phase of a project. Northern Prospector 2011-2012

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MARCH CONSULTING ASSOCIATES

The company prides itself on remaining at the forefront of safety and environmental risk assessment practices and trends. The company prides itself on remaining at the forefront of safety and environmental risk assessment practices and trends. This commitment to safety and environmental management has given rise to a corporate culture of success that emphasizes excellence in safety performance and environmental stewardship. Employee-owned, March employs over 100 personnel with a wide range of global and local expertise. Dedicated to diversity and equal opportunity, approximately 30 per cent of our technical staff are internationally educated and approx-

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imately 25 per cent are women. March employs individuals from Asia, Africa, Europe, North and South America, and are committed to helping foreign trained employees succeed in their new country by developing programs tailored to assist each individual, whether with language

training, adapting to Canadian business culture or professional registration. From conceptualization to completion, March’s team of dedicated professionals brings world-class experience to every facet of a project. ✖


FUTURE BUILDINGS

BUILDING A BOND

Digging around for a good supply partner? Future Buildings is a gem

Future Buildings started out producing steel Quonset huts for farmers, loggers, fishermen and First Nations bands across Canada. Over 30 years later, Future Building is one of the leading Canadian manufacturers of custom-designed steel buildings in North America and around the world. With collectively hundreds of years of design and engineering experience in-house, including a state-of-the-art production facility, it has established itself as a supplier of choice for many of the big names in the mining industry. Future Buildings also has established a large footprint in commercial sectors that include all areas of government, agriculture, military, transport and energy. Mining companies and their engineering firms or contractors come to Future Buildings looking for clear span steel structures to use for everything from mineral storage, well shelters, mine caps as well as conveyor belt covers, maintenance buildings, garages and personnel facilities. Northern Prospector 2011-2012

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FUTURE BUILDINGS Mining companies and their engineering firms or contractors come to Future Buildings looking for clear span steel structures to use for everything from mineral storage, well shelters, mine caps as well as conveyor belt covers, maintenance buildings, garages and personnel facilities. What really sets Future Buildings apart from other building companies is a thorough understanding of industry-specific requirements and an expertise in design-to-delivery project management. Many mining projects have been awarded to Future Buildings because of project knowledge and the relevant expertise of the team in these critical areas: Schedule Impact – planning for sufficient project turn-around time; Cost Analysis – adhering to the budget and ensuring a costefficient structure that is designed to code; State-of-the-art Engineering – producing and sending codecompliant Engineered Drawings quickly and efficiently; Additional Safety Factors – understanding when any special structural requirements are necessary and their impact to the bottom-line; Also, because of the large number of mining jobs specifically in Quebec, Future Buildings has its own valuable resource in that it is equipped with a fully bilingual in-house technical and engineering support team. They are accredited engineers, familiar with all regions, who are able to provide sealed, certified drawings compliant with local building codes.

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The size of Future Buildings and its infrastructure is one of its greatest competitive advantages. It is a large enough company to set the bar for new technological advances , having produced the world’s widest clear span arch building ever erected – yet it is small enough to operate with an all-department focus to meet a client’s tricky design request or seemingly impossible delivery deadline. For a client, it comes down to a professional reliability and assurance that Future Buildings will complete the project estimate timely and accurately and that the building itself will be delivered to spec, on-time and on-budget. The specialists in Future’s commercial department are proud to have developed some of the most creative structural solutions for their mining clients - a building designed to be an underground cafeteria – another structure erected on stilts so that it could be built directly on bedrock – fully transportable buildings that could be moved from one well site to another. Future Buildings has also delivered to some of the most remote, limited access locations in the world - northern Russia for example. This speaks volumes about Future Building’s commitment to quality assurance, logistics and shipping protocols, even when some projects are somewhat challenging. Repeat business and professional referrals are a strong statement of capability for Future Buildings and this motivates the company every day to be the best project partner in the business. This objective is evident in the volume of steel service buildings designed, manufactured and delivered to mining sites across the country and globally. Future Buildings is proud to have supplied quality steel building solutions to companies such as Alexis Mining, Bema Gold, Cameco Corp., Diavik Diamond, EastWest Gold, IAMGOLD, Makivik Corp., Nova Gold and Xstrata Copper. ✖


CATRON

GOOD TO HEAR

Cattron’s SIAMnet™ system provides underground data and voice communication Cattron, a unit of Laird Technologies, a leading global manufacturer of remote control products and professional services for the industrial, mining, commercial mobile and railroad markets, announces the new SIAMnet™ underground communication system which combines the speed of Fiber Optic System data communication with Leaky Feeder voice communication at a fraction of the cost of installing the two systems individually. While most systems can provide varying levels of voice communication within a relatively low price range, the same cannot be said for high speed data communication and in our digital age, telephones (VOIP) and IP cameras work from the same network as email and other office applications. Rather than installing only a voice communication system, Cattron’s SIAMnet makes it possible to install one system that will support current data communication needs, as well as the expanding data communication needs of the future. A traditional Fiber Optic System is perfect for transporting large amounts of data over long distances, but when data needs to be transported to multiple locations that are relatively close to each other, a fiber optic system becomes expensive and less versatile. In the event of an explosion or damage from a vehicle, the fiber cable is difficult to repair, causing lengthy delays and lost communication with your workforce. The option of buying spare

cables to replace damaged ones is costly and involves downtime and lost communication during installation. A fiber optic system is also unable to transport the electrical energy that different apparatus’ need to operate, necessitating either a separate electrical network in parallel with the fiber cable or the installation of ac outlets. Leaky Feeder coaxial cable with imperfect shielding works for voice communication and for low speed data communication needs. Cable television is able to provide high speed data to its subscribers and it is this same high speed technology that the Cattron SIAMnet system uses to provide communication with underground miners. If a coaxial cable is damaged, it can be repaired in minutes. It also can transport the electrical energy needed for other underground operations. SIAMnet is able to provide the voice communication of a Leaky Feeder and data communication at a speed that is very similar to a fiber optic cable at a cost that is much less than the cost of installing two separate communication systems. With over 65 years of radio frequency (RF) and industrial remote control experience, Cattron Group companies have a total installed base of over 150,000 remote control systems throughout the world. ✖

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SRC

GOOD SCIENCE

SRC offers diverse range of world-class mining services

The Saskatchewan Research Council (SRC) offers Smart Science Solutions™ in uranium, potash, diamonds, oil shale, rare earth elements and other commodities. SRC’s world-renowned experience and research background allows us to continually improve the reliability of processes and analyses, helping ensure our clients’ success. GEOANALYTICAL SERVICES SRC has been providing high quality uranium analysis for more than 35 years. In the past year, SRC’s Geoanalytical Laboratories have expanded to meet the increase in exploration of uranium and gold. The labs have been instrumental in providing high-quality analytical resources that have helped in the development of uranium exploration and mining in Saskatchewan and around the world. Licensed by the Canadian Nuclear Safety Commission (CNSC), the laboratory safely receives, processes and archives radioactive samples. SRC’s Geoanalytical Laboratories recently purchased a highresolution inductively-coupled plasma mass spectrometer (HRICPMS) in order to provide high-quality isotopic data to clients. By studying three isotope systems (lead, lithium and boron), possible research areas for vectoring toward uranium deposits will be identified. “We are currently investigating the isotopic systematics in the Athabascin Basin,” says Rob Millar, associate scientist at SRC. “The new equipment will help us to trace fluid flow path and indicate potential uranium sources.” The laboratory also participates in a proficiency testing pro114

2011-2012 Northern Prospector

By Jaime Procknow

gram organized by CANMET for base metals and precious metal assaying. As well, the lab has an ISO 17025 accreditation for mineral analysis testing. For nearly four decades, SRC’s Geoanalytical Laboratories have been providing expert services to the exploration and mining industries by offering a diverse range of analytical mineral exploration packages. From kimberlite processing to diamond recovery to uranium, potash, gold and rare earth analyses, the Geoanalytical Laboratories deliver customer satisfaction with relevant, timely and cost-effective services. ADVANCED MICROANALYSIS CENTRE™ In early 2010, SRC’s Advanced Microanalysis Centre™ opened to offer clients in the mining and minerals industries leadingedge services that were previously unavailable in Saskatchewan. The Centre, along with our Geoanalytical Laboratories, supplies all of the necessary analytical tools for mineral exploration for everything from sample preparation right through to trace element analysis. This is all performed in one convenient location. With another expansion announced last fall, the Centre has become a one-stop shop for clients both in the province and across the country. “This expansion will allow the Advanced Microanalysis Centre to provide an even more robust array of services to a broader client base here in Saskatchewan and well beyond,” said SRC VicePresident of Mining and Minerals, Craig Murray. “These services will bring added value and complement the services already offered by our Geoanalytical Laboratories.”


SRC Geoanalytical Laboratories

Exploration solutions in: Uranium  U3O8 (wt%) analysis

w w w. s r c . s k . c a

 Multi-element ICP-OES and ICPMS packages  Trace element ICPMS  High resolution ICPMS  Gold and base metal analysis  Rare earth element analysis  Licensed radioactive facility Contact: Uranium Services Tel: 306-933-8118  Fax: 306-933-5656  Email: geolab@src.sk.ca

Potash  Dedicated facility

Diamonds  Macro diamond recovery  Micro diamond recovery  Kimberlite indicator mineral processing and recovery  High security facility Contact: Diamond Services Tel: 306-933-7177  Fax: 306-933-7197  Email: geolab@src.sk.ca

Advanced Microanalysis Centre™  Custom analytical packages (XRF)  Quantitative Mineralogy (EPMA)  Trace Element Analysis (LA-ICP-MS)  Isotope Analysis (HR-ICP-MS)  High Magnification Imaging (SEM)  Qualitative and quantitative analysis (XRD)  Petrography-slide preparation and interpretation Contact: Minerals - Advanced Microanalysis Centre Tel: 306-933-7893  Fax: 306-933-7446  Email: microlab@src.sk.ca

Mineral Processing and Metallurgical Testing  Lab, bench and pilot-scale testing  Process engineering and development for uranium,

potash, rare earth elements, gold and base metals  Process optimization  Environmentally sustainable extraction processes  Effluent treatment and tailings management Contact: Minerals - Mineral Processing Tel: 306-964-2008  Fax: 306-933-7446 Email: mineralprocess@src.sk.ca

Contact the Saskatchewan Research Council (SRC) for a complete list of services or visit our website at www.src.sk.ca and click on labs.

ISO/IEC 17025: 2005 Accredited Facility


SRC MINERAL PROCESSING AND METALLURGICAL TESTING Mineral Processing is a technology that is quickly emerging as a critical service need in North America. SRC is excited to offer this service as one of many in a long list of superior services we provide to the mining and minerals industry. The Mineral Processing and Metallurgical Testing services build upon existing capabilities and strengths offered in SRC’s Geoanalytical Laboratories and the Advanced Microanalysis Centre™. Providing lab, bench and pilot plantscale testing are some of the key mineral processing services that SRC offers, along with developing process models for potash, uranium, rare earth minerals, gold and base metals, among others. In a province where potash and uranium account for approximately 30 per cent of the world’s supply and rare earth elements are becoming increasingly valued for their properties used in batteries and technological instruments, SRC is pleased to offer this integral testing service. By delivering high-quality processing and metallurgical testing for the mineral-producing industry, SRC will ensure leading-edge support capabilities are available for clients’ success here and around the world. For a complete list of service offerings, go to www.src.sk.ca or email info@src.sk.ca. ✖

With another expansion announced last fall, the Centre has become a one-stop shop for clients both in the province and across the country.

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FORDIA

DRILLING GEM Fordia’s Vulcan 26mm is engineered to go deeper Fordia has consolidated its technology leadership with the introduction of its latest innovation in diamond tools – the Vulcan 26mm. Allowing important savings, it has already proven its efficiency on drill sites, thanks to its patent-pending water management system. Specifically designed for deep hole drilling, the Vulcan 26mm offers greater lifespan than a 12mm and increases the number of metres drilled per shift. The result is significant increase in productivity and time savings. “The Vulcan 26mm offers unprecedented lifespan,” says Fordia’s R&D Director. “It delivers as much as double the lifespan of a standard diamond tool. With this extended lifespan, the drill string does not need to be pulled up as often, reducing the amount of drilling downtime.” With the industry’s highest diamond impregnation, the Vulcan 26 mm offers unparalleled advantages. The secret of the Vulcan 26 mm’s longevity is its water management system. It is composed of underbridge destructible barriers, currently patent-pending, which manages the water and drilling debris better than any competitive product and protect the tool, offering longer lifespan. The destructible barriers push the water circulation all the way to the top of the bit to ensure cooling and consistent wearing in order to optimize use of the tool and avoid premature eroding. As part of the Vulcan Series of products, the Vulcan 26mm benefits from the proven technology used in earlier products – the entire series has the patented bridge technology. The series’ 16mm and 26mm crown heights can be applied on Fordia’s top-selling matrices, such as HERO and T Xtreme, making it extremely flexible in meeting the varied needs of different drill sites. Vulcan 26mm performs best in medium to hard

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FORDIA With the industry’s highest diamond impregnation, the Vulcan 26 mm offers unparalleled advantages. The secret of the Vulcan 26 mm’s longevity is its water management system. It is composed of underbridge destructible barriers, currently patent-pending, which manages the water and drilling debris better than any competitive product and protect the tool, offering longer lifespan.

ground types and is best used when applied on matrices designed for the same ground. For optimal use, Fordia recommends either pie-shape or turbo pie-shape configurations. Deep hole options are also available for the Vulcan 26mm; CB250 facilitates the passage of the core bit in the wedge and CB112 eases the hole entry and offers greater alignment. Both virtually eliminate the risk of catching and dramatically reduce the amount of water wasted. ABOUT FORDIA Fordia offers global drilling solutions to its customers with a complete range of diamond tools, equipment and accessories for the mineral exploration and geotechnical industries. The company is a worldwide leader in its industry, offering quality products that meet the specific needs of drilling companies while providing outstanding customer service and technical support. Fordia’s corporate culture is dedicated to continuous improvement and bases its business practices on the values of respect, communication, innovation, teamwork, excellence and responsible wealth creation. Fordia employs some 220 people in Canada and throughout the world. The company has offices on all continents and is represented by its branches and distributors in some 30 countries.

We Help Protect the Environment t4&37*/(5)&.*/*/(*/%6453: t"*35"9*4&37*$& t$)"35&3)&-*$015&34&37*$& t4&37*/(5)&.05*0/1*$563&*/%6453: t)&-*$015&3'-*()553"*/*/( t$0/53"$54&37*$&

1-800-782-0780 401 Helicopter Dr., ST. Andrews Airport, St. Andrews, MB R1A 3P7

For further information about Fordia, please visit www.fordia.com. ✖

Winnipeg (204) 338-7953 Rankin Inlet (867) 645-3885 Thompson (204) 677-3720 Gillam (204) 652-2212 Garden Hill (204) 456-2655 The Pas (204) 623-4595

OUR STUDENTS REACH NEW HEIGHTS UNDERGROUND Introducing the Northern Manitoba Mining Academy (NMMA). Opening this fall in Flin Flon, Manitoba. This new facility will offer a range of programming in the geosciences, as well as simulated underground mining training and top-quality labs. To find out more about education and research opportunities, please contact the NMMA executive director at (204) 687-7038.

WWW.UCN.CA

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OWN YOUR FUTURE UNIVERSITY COLLEGE OF THE NORTH


RDH MINING EQUIPMENT

SUPPLYING THE NORTH RDH Mining Equipment can help in even the toughest environments

Below: Just off the coast of the Arctic Ocean, an RDH Drillmaster 200 drills a tunnel in temperatres below minus 30 degrees Celcius.

RDH Haulmaster 800-26 with ejector box working deep underground in Quebec.

Tight delivery schedules, transporting to remote locations, winter ice roads, cold weather… these are just a few of the difficulties mines face when operating in Canada’s north. When choosing a supplier for their underground fleet, a mine needs to choose wisely and a supplier who has experience working under these conditions is a must. RDH Mining Equipment, a Canadian owned and operated mobile mining equipment manufacturer, located in Northern Ontario, has over 25 years of experience working, supplying, servicing and living under such harsh conditions. The team has equipment working underground in some of the world’s toughest locales; Nunavut, Saskatchewan, Africa, Siberia, Northern Quebec, and perhaps the most dangerous of all … New York City. When delivering equipment to Canada’s remote north, the team at RDH understands the importance of meeting delivery schedules. Ice roads break up quickly and Arctic waters can freeze unexpectedly. If the machine isn’t ready in time it just can’t wait until the next shipment, it may have to wait until the next winter. With eight pieces of equipment currently in use and with more on order, Claude Resources Inc. (TSX-CRJ; NYSE Amex-CGR) can attest to RDH’s ability to deliver quality equipment to remote locations on schedule. The Seabee Gold Operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately 125 kilometres northeast of the town of La Ronge, Saskatchewan and about 150 kilometres northwest of Flin Flon, Manitoba. Access to the mine site is by fixed wing

aircraft from La Ronge or Flin Flon to a 1,275 metre airstrip located on the property. Equipment and heavy supplies are trucked to the site via a 60 kilometer winter road from Brabant Lake on Highway 102. The winter ice road is typically in use from January through March. Despite the logistical challenges that are posed by the mines location, RDH has excelled with its reliability and service, becoming one of the mines preferred suppliers. Once the equipment gets to the mine the work has just begun. Training, supplying parts and providing service are also very important parts of the mobile equipment package. RDH has identified three elements that are key to ensuring quick and effective parts and service supply to even the most remote areas. First, it has an established network of shipping and logistics specialists that it can access to ensure speedy delivery of parts and equipment across the world. Second, RDH keeps an extensive supply of spare parts in stock for its customers and uses common components across its product line to minimize spare part supply requirements. Finally, the team has a dedicated group of highly trained technicians who are ready to travel to any location to service equipment or train staff. While service and parts are key factors to an equipment manufacturer’s success, it all boils down to the equipment. And when Northern Prospector 2011-2012

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FORDIA

A three cubic yard Muckmaster 300D, working nearly 2,000 metres above sea level on a mountain in Siberia.

it comes to underground mining equipment it is pretty simple… tough, tough, tough. Equipment must be designed to take whatever a miner gives it; a muck pile, the wall, full throttle, full load, hot, cold, dry, wet. RDH has kept its designs simple avoiding complexity when possible. This ensures that equipment can be maintained and repaired quickly, simply, at the mine, by mine mechanics. As a leading player in narrow vein mining equipment, RDH has been focusing much of its resources recently on expanding its broad line of equipment. Currently, it offers the broadest range of equipment available on the market; one to three boom drill rigs, roof bolters, 4-30 ton trucks, LHD’s, scissor-lifts, boom trucks, service/lube vehicles, personnel carriers, block-hole jumbos, ejector boxes and buckets, custom designs, and ultra low profile equipment. The ultra low profile equipment provides many advantages to the user. They mine less waste rock resulting in increased tonnage of higher grade material. Processing and refining efficiency is improved, as ore di120

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lution is reduced and grade is increased. While interest in narrow vein equipment is growing, RDH also has vast experience in equipment designed for medium sized operations. Recently, RDH Mining Equipment has delivered the first piece of equipment to Breakwater Resources Mine Langlois since the recent acquisition of Breakwater Resources by Nyrstar. The Haulmaster 800-26 haul truck is fitted with an ejector box and is the second of two 26-ton ejector box haul trucks supplied to the mine. The Haulmaster truck fitted with the optional ejector box allows the mine to haul high capacity loads in areas that were previously limited to LHD’s. The Haulmaster, along with the Drillmaster, Boltmaster, and Liftmaster, are also available in MSHA approved “Permissible” models, which are certified to work in potentially explosive environments such as coal or tunneling projects. In addition to expanding its product line, RDH, in its on-going efforts to ensure customer satisfaction and expand markets, has recently established equipment distributors in Chile, Russia, and Africa.

The distributors have proven to be highly effective at supplying parts, service, and equipment within their established territories. Besides offering the full range of machinery needed for underground mines, RDH also distinguishes itself by incorporating standardized components across its line of equipment. Standardized equipment reduces the amount of spare parts the mine needs to keep in stock; reducing inventories and improving the bottom line. RDH is dedicated to taking customer service to the highest level—and keeping it there. “If we have a problem that we can’t solve on the phone, we have someone on site within 24 hours wherever possible,” says RDH President, Kevin Fitzsimmons. “Our customers really appreciate that. Customer service is what drives repeat business. If you can’t take care of the customer, someone else will … and we don’t plan on giving anyone that opportunity.” ✖


THE NEW STANDARD IN SAFETY Born and fostered in Saskatchewan, Regina’s own Haztech Fire and Safety is fulfilling a much-needed gap in the health and safety field among Saskatchewan’s industrial worksites. Since their inception in 2006, Haztech has been established as a leader in providing integrated medical, safety and training services throughout Saskatchewan and into neighbouring provinces. Haztech is devoted to providing unsurpassed service with safety, quality and regulatory compliance at the forefront. The management and staff at Haztech uphold their business’ core values each and every day. Following safe work procedures; investing in their people; operating with leadership, integrity and professionalism; continuously improving to set new standards in today’s industry; and, researching to adopt the latest in technology and safety equipment—these are the guiding principles. Every day these principles dictate how they operate in respect to co-workers, clients, the community, and the environment. Haztech Fire and Safety continues to push the industry to adopt higher standards through their comprehensive support and reinforcement of some of Saskatchewan’s largest mining, oil and gas, forestry and industrial construction site operations. “We believe in the importance of industrial

workplace safety,” says Scott Rodonets, Operations Manager, “and this is truly reflected in our passion for the services we provide—such as onsite medical services, high angle and confined space rescue, medical and safety training, and occupational health services. As well, all of our employees have extensive training and experience, so you can rest assured that all work crews are in good hands.” Looking towards the future of health and safety, Haztech is currently focusing efforts on some of its northern projects, including providing employment opportunities to First Nations communities of the north. They are training groups to become qualified through their medical and safety programs, with the goal of helping them join the workforce within their own communities. Haztech boasts over 47,000 consecutive safe man-hours without an incident for 2011. As their company grows they continue to refine safety programs and processes to protect their team, and yours. The focus at Haztech Fire and Safety is to ensure that everyone goes home safely to their families, and they are proud to meet this goal on a daily basis. Visit them online at www.haztechsafety.com for details.


TOROMONT CAT

EXPANDING SERVICES

Toromont CAT now offers customers a devoted mining division along with their staple departments Toromont CAT is a proud partner of the northern Manitoba mining community. With branches in Thompson and Flin Flon Manitoba, they are well situated to support business partners. The company itself covers a mass area which includes Manitoba, Ontario, Newfoundland, Labrador and Nunavut. We have over 50 locations located throughout

our company that not only covers mining, but also supports truck engines, forklifts, CCE, heavy equipment, crushing/spreaders and the energy division. What makes us so unique is the ability to provide a one stop shop for our customers in the north. “Take any mine site in northern Manitoba and you will find customers require some or all of the different types of equip-

ABOVE OR UNDERGROUND TOROMONT HAS ROCK SOLID MINING SOLUTIONS

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ment that we provide. The great thing about it is that our customer can call one location in their area and we will ensure they get looked after,” says Kevin Haiko, product support manager for the Thompson/Flin Flon branches. Mining has become such an important part of the business that in the recent months Toromont has introduced a separate mining division. The company has put together a group of expert employees within the company focusing solely on mining and finding new ways to help customers become more efficient and put more money in the bank. “We never have stopped at just providing the equipment either. We provide an array of services to our customers that they can take advantage of,” he says. “ECommerce (on-line banking), PartStore (on-line parts ordering), fleet analyzing, fleet/equipment tracking programs and operator/technical training are some of the top most common services that our customers can take advantage of. Not to mention, we have a group of experienced field service technicians with an expertise in mining.” They help service over 50 pieces of underground LHDs and trucks in northern Manitoba, and are supported with fully craned service trucks, five service bays and a fantastic group of staff at each of the respective northern branches. “If you ask any of our customers about our equipment itself, they will express how impressed they are with the performance,” says Haiko. “One thing we do not shy away from is quality and longevity. We build our machines to last. But, don’t take our word for it. Take a look at any competitor piece of equipment and compare it to our top notch products. Everything from the sheet metal, major components and guarding are designed to last with the mine. We also provide an impressive reman program for our customers to take advantage of. Our equipment is so robust that you can keep the equipment for thousands of hours and then work with your local rep on a rebuild schedule that fits your mines needs.” “Toromont CAT is proud to be a part of Manitoba’s northern mining community. Our company is growing daily to meet the needs of customers, and we understand the individual needs not only a customer may have, but also a mine site. Thanks for all your continued business and please don’t hesitate to come knock on our door. We look forward to serving you.” ✖


FLY YOUR WAY

GOOD SPIRIT AIR SERVICE

Good Spirit Air Service is ready to take clients to the next level Good Spirit Air understands the needs of today’s business people. Getting our guests quickly, efficiently with safety as a priority, from location to location is not just important, it is a must. Taking part in multiple meetings in one day at several locations in today’s world is a challenge faced by many major business operations. Another need that has been recognized and acted upon by Mike and Carol is need to get skilled workers to the job site. Today’s skilled workers come from many areas and work in remote locations of northern Canada. Good Spirit Air is a significant player in getting those workers from their homes to those job sites and back again, in a safe, efficient and always timely manor. With the addition of a new 10,800 square-foot hanger and facilities dotted across northern Saskatchewan, Good Spirit Air Service is ready to take you, your family, your staff and your business to the next level. As our motto says “Good Spirit Air…Making Time Fly Your Way!” ✖ Take a passion for aviation, the ability to operate a growing business and great people and you have Good Spirit Air Service. Good Spirit Air came about when Michael and Carol Yaholnitsky realized that Yorkton, Saskatchewan was well situated geographically and demographically to support a charter air service. There vision was to start an air charter service. Good Spirit Air is a division of Mike and Carol’s first aviation business, Miccar Aerial, a well established crop spraying operation since 2006 and still going strong today. With the development of Good Spirit Air, the couple’s self appointed mandate was to operate a customer service-oriented, safe, efficient and reliable charter service. That was several years ago. Today, Good Spirit Air operate a modern growing charter service with a fleet of three Beechcraft King Air B200s. The executive workhorse of the air, the B200 was the logical choice for them to build upon their charter business. Featuring pressurized cabins, high back leather seating, room for eight with a cruising speed of 300 mph. The King Air B200 is fully equipped for flight in all forms of weather to any destination one may choose. Good Spirit Air Charter Service is a company based on family ideals and where one’s word is still a bond. A warm and friendly company who believe in small town values while operating in a modern technological aviation world. At Good Spirit Air, every one of the 16 staff members, some of them family and the remainder treated as such, has a role to play in the overall operation of the business. Yet each member is invited to participate in the future planning and development of the company at every stage. A rather unique situation in today’s fast paced business world.

AIR CHARTER SERVICE

We’ll Make Time Fly Your Way

www.goodspiritair.com 306-786-3345 Northern Prospector 2011-2012

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CAITHNESS

STRAIGHT TALK

Caithness Communications Group is a leader in mining and natural resources communications Raising capital and communicating with your investors requires focused communications strategies. You must continually build your brand in the marketplace. Getting the attention you desire when everyone in your peer group seeks the same audiences requires communications methods that make you stand out from the crowd. Caithness can be your communications partner in developing and executing these strategies. Caithness Communications Group is celebrating an anniversary in January 2012. It will mark our 25th year in business. We have seen a lot of changes over the years. Websites didn’t exist when we started in 1987, and computers were just beginning to be introduced to the graphics business. Corporate videos carried a price tag similar to full-length movies. The development of technology has changed the way we all communicate and Caithness has embraced these advancements. Caithness is a ‘strategic design and communications agency’ that has become a leader in mining and natural resources communications. We develop brand strategies and design logos for start-ups and growing companies. We design and produce annual reports, in-

vestor fact sheets, dynamic Power Point presentations, as well as trade show booth graphics. We have developed an advanced web platform for our clients’ websites that will accommodate the latest advancements in web/internet communications. Streaming video, RSS feeds, social media and streaming to hand-held devices are all included in this platform. Are you short of location photography and video footage? No problem we will provide both for you. Call us today to see how we can help. We have a communications strategy to fit every budget. ✖

Caithness is a ‘strategic design and communications agency’ that has become a leader in mining and natural resources communications.

CAITHNESS COMMUNICATIONS GROUP

Branding & Logo Design 3D Animation & Mining Videos Virtual Mine Site Video Tours Location Photography & HD Video Filming Presentations

Annual Reports Trade Show Booth Graphics Website Strategies & Website Development Investor Fact Sheets Corporate Apparel

Contact us at 905-470-2100 or rcampbell@caithnessinc.com www.caithnessinc.com 124

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Meetah Building Supplies CREE NATION STRATEGICALLY MOVES TOWARDS SELF SUFFICIENCY In 1997 forward thinking leaders of Nisichwawaysihk Cree Nation at Nelson House strategically chose to derive additional economic benefit from the monies being spent on local housing projects by establishing its own building material and supplies business.

Box 416 Nelson House Manitoba R0B 1A0 Tel (204) 484-2340 Fax (204) 484-2855 gwilzer@mymts.net

Meetah Building Supplies has grown from its first order for some of the materials for a 15 house project to where it now supplies entire house packages from foundation to finishing including electrical, plumbing, heating, sewer and water, appliances and furniture. Kitchen cabinets and exterior doors designed and manufactured by local people to meet unique northern requirements allows Meetah the flexibility to respond quickly to short time lines and specific needs not easily met by mainstream manufacturers. By joint venturing and working co-operatively with friendly general contractors on larger local commercial and residential projects expertise was gained to birth a construction arm called NCN Builders. A member of the Manitoba New Home Warranty Program and a certified R2000 Builder NCN Builders has completed residential and commercial projects in various northern communities including Thompson. Years of experience gained expediting materials over winter roads to remote communities has helped position Meetah Building Supplies in northern Manitoba to be of service to the players in the mining industry interested in working with First Nation businesses to develop mutually beneficial long term relationships.

www.meetah.ca


QUANTUM MINERALS

Quantum Minerals: Moving Forward For Quantum Minerals Corp. [QMC – TSX.V], the true potential for its Manitoba properties began with the examination of historical drill hole data, a follow-up of a Crone Geophysics Pulse EM (PEM) survey and the recent air-borne VTEM plus Time Domain EM system survey. The VTEM survey identified 21 additional targets on its coppergold massive sulphide Rocky Lake projects (Rocky Lake and Rocky-Namew projects) in the world-renowned Flin FlonSnow Lake mining district. Out of the 21 targets identified, 15 would go on to be classified as first-priority targets. The VTEM survey covered all of the project licenses and claims for a total of 2,142 line kilometres with 160 metre line spacing over an area of 316 square kilo metres. Performed by Geotech, the air-borne VTEM plus Time Domain EM system has been shown to locate discrete conductive anomalies, as well as mapping lateral and vertical variations in resistivity. These conductors could represent hidden volcanogenic massive sulphide mineralized bodies at depth. “Geotech’s VTEM survey shows very large targets on our project which are worth exploring given the location and proximity,” says Balraj Mann, president and CEO of Quantum Minerals. “This is in addition to the large Crone Pulse EM target identified on License 219A, which confirms that the target areas are much bigger than we expected. I am eagerly looking forward to our next stage exploration drilling program.” No previous work program had been carried out in the target areas, aside from the QMC’s Rocky Lake Crone Geophysics Pulse EM survey targets and historical drilling by the Hudson Bay Company (later renamed HudBay Minerals - HBM) on the main Rocky Lake Mineral Exploration License 219A. The mineralization on License 219A was discovered in 1987 by HBM after airborne surveys identified a five kilometres conductor and a ground EM outlined 1,500 kilometre conductor. HBM had diamond drilled 10 NQ and BQ holes totaling 2,292 126

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metres in three programs: five in 1987, three in 1990 and two in 1991. QMC has cut a new grid over the HBM anomaly and completed the Crone PEM survey. The PEM survey delineated a very prominent conductor anomaly shown in the attached figure. QMC received the necessary permits to drill the PEM conductor anomaly with total drilling anticipated to be 2,500 metres. “As suggested by the PEM survey anomaly, perhaps some of the strongest portions of the original Hudson Bay electromagnetic anomaly were not adequately tested,” says Mohan Vulmiri, geologist and director of Quantum Minerals. “By carrying out the drilling on the footwall side of the potential mineralized body, it appears that HBM originally missed the main target of a massive sulphide mineralized body. This theory is further evi-


QUANTUM MINERALS

denced by copper mineralization intersected in the HBM drilling that presented as stringers and could represent footwall stringer mineralization.” Quantum Minerals has not only its own data to process, but can look over the previous work done in the area by HBM and Inco, which included airborne

In Step With Your Safety Footwear Needs! 343 Park Street Regina, SK. Phone: 721-9667 20-510 Circle Drive E. Saskatoon, SK. Phone: 249-5524 Kenaston Place Centre Winnipeg, MB. Phone: 489-0064 305 McPhillips Winnipeg, MB. Phone: 772-3433

www.workauthority.ca 128

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surveys, ground geophysics and drilling, leading to the 1984 discovery of the Namew Lake Ni-Cu mine, approximately 10 km to the Northwest of the Rocky Lake massive sulphide target. The Rocky Lake projects share the same Namew Gneiss Complex host rocks as the Namew Lake mine, which produced 2.57 million tonnes grading 0.63% copper and 1.79% nickel. The Namew Gneiss Complex is composed of highly metamorphosed rocks believed to be derived from Amisk Group volcanic rocks, the host rocks of the Flin Flon-Snow Lake mining district. With the flurry of historic and on-going mining activity in and around Flin Flon, only 65 kilometres to the north, and Snow Lake, 100 kilometres to the northeast, it’s no wonder that the mining community still looks favourably at this region as a hub for Central Canadian mining activity. For QMC, the fact that the legacy of the Flin Flon-Snow Lake mining district goes back 84 years is to be respected, as the region is still a powerhouse in the Canadian mining world. From the founding of Hudson Bay Mining and Smelting’s mining infrastructure that brought power, rail and workers to the region through to today, its successor, HudBay Minerals, is still a chief player in the region. Re-

cent joint venture deals like that of the HBM partnership with VMS Resources on the nearby Snow Lake property make the area friendly for junior explorers. Thanks to data provided by previous work from HBM, as well as favourable infrastructure in the region credited to work done by HBM over the years, QMC is poised to help continue within the region’s mineral legacy through its exploration and development. Today’s copper prices are also providing what could be an enhanced economic environment for this region, and encouraging junior explorers like QMC to develop and attract the partners it needs to continue moving forward. QMC is also active in other jurisdictions of Manitoba. They recently acquired the Cinder Lake Rare Earths (REE) project in Northeastern Manitoba. Extensive research was carried out on the Cinder Lake Complex by the Department of Geological Sciences at the University of Manitoba, and QMC believes that this project has great potential. REE mineralization is associated with the Cinder Lake alkaline intrusive complex, the only known occurrence of feldspathoid rocks in Manitoba. ✖


INDEX TO ADVERTISERS Abitibi Geophysics Accurassay Laboratories Action Mining Services Inc. Activation Laboratories Ltd. Alair MHA Enterprises Ltd. Alex MacIntyre & Associates Limited Alexis Minerals Corporation Anglo American Exploration (Canada) Ltd. Argo BacTech Environmental Corporation Bodnar Drilling Ltd. Breaker Technology BRITESPAN Building Systems Inc. Buhlman and Associates Inc. Caithness Communications Group Calm Air Canadian Western Bank CanDig Mini Excavators Inc. Capital Canvas Carlisle Goldfields Cattron Group International Churchill Gateway Development Corporation Columbia Steel Casting Co. Inc. Copper Reef Mining Corporation Custom Helicopters Ltd. Danatec Educational Services Ltd. Dimatec Inc. Discovery Mining Services DSG Power Systems Enduride Canada Usa Inc. Fordia Future Buildings G & B Portable Fabric Buildings Ltd. G.E. Environmental Solutions Inc. GL Mobile Communications GMR Electric Motors Ltd. Golder Associates Good Spirit Air Service Grandeur Industrial & Commercial Buildings Haztech Fire And Safety Services Inc. Horizon Structures Hub International Insurance Brokers Industrial Equipment Manufacturing Ltd. J.P. Enterprises Incorporated Kal Tire Kramer CAT Lee’s Construction Ltd. M.A.R.S.H. Expediting MacPherson Leslie & Tyerman LLP Manitoba Innovation, Mines & Energy March Consulting Associates Inc.

76 33 38 16, 82 69 48 36 16 106 37 72 110 90 20 124 78 3 87 11 56 67 33 31 63 118 24 20 80 107 45 117 112 104 54 108 21 71 123 54 121 25 92 46 88 69 47 44 88 IFC 10 13

McCann Equipment Ltd. Meetah Building Supplies Mega Precious Metals Inc. Millennium Mechanical Miners Incorporated Missinippi Airways Nickel City Motors Ltd. Norseman Structures Norseman Supply Northlands College Norwest Manufacturing Nutana Machine Ltd. Osprey Wings Ltd. Pajari Instruments Ltd. Perimeter Aviation Potash Corp Pronto Airways Provincial Helicopters Ltd. Quantum Mineral Corp Rana Mine Refuge Systems Rapid-Span Structures Ltd. RDH Mining Equipment Robertson Trading Ltd. Ross Industries Ltd. Rosta Inc. Saskatchewan Ministry of Energy and Resources Saskatchewan Research Council Scott Pump Service Ltd. Snow Lake Home Building Centre Srk Consulting St. Eugene Mining Corporation Technosub Telstar Hydraulics Ltd. The Pritchard Group The Saskatchewan Association of Optometrists Tigerdale Enterprises Ltd. Toromont CAT Town of Snow Lake Transwest Air Tron Power Inc. University College of the North Vale Veyance Technologies Victory Nickel Inc. Westburne Electric Supply Western Heritage Wings Over Kississing Work Authority Zemco Door Products

49 125 OBC 14 99 98 23 86 4 21 99 47 108 101 60 59 91 22 127 93 95 IBC 22 21 55 19 115 70 39 96 35 57 88 84 97 102 122 34 74 43 118 7 85 52 14 100 41 29 50

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Manitoba Prospectors and Developers

Association Inc.

Winter 2010-2011 Première édition Inaugural edition

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