Ontario Mining Review Fall 2015

Ontario Mining Review

FALL 2015

Attention mining couples:

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Enhance your relationship with these tips

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Ontario Mining Review Message from the Minister of Northern Development and Mines, Michael Gravelle

4

Message from the President of Northwestern Ontario Prospectors Association, Bob Chataway

6

The top three issues in mining relationships… and how to overcome them

8

Sudbury’s vibrant mining community continues to look forward to future growth

12

Serpent River update proves promising

14

Little to no environmental impact

16

Large enough to service, small enough to care

19

Da-Lee gets down to business

20

To buy or hire?

22

PDAC 2016: Where the world’s mineral industry meets

24

Northwestern Ontario mining remains active while awaiting improving metals commodity prices

26

City Welding: A family business

28

Making sure the lights stay on

29

XL Shelter structural fabric buildings: The ‘new’ simple answer

30

Cover photo credit: envisiondigitalphoto.com.

Index to Advertisers Als Minerals.................................................................9

Higheye Aerial Imaging Inc........................................23

Association for Mineral Exploration Bc........................5

International Montoro Resources Inc.........................15

Britespan Building Systems Inc..................................17

Kirkland Lake Gold Inc................................................13

Bureau Veritas Minerals..............................................10

Norske Drilling............................................................27

Cambrian College........................................................20

Outfront Portable Solutions.......................................IBC

Cambridge House International Inc..............................7

Primemax Energy........................................................19

City Welding Sudbury Ltd...........................................28

Prospectors & Developers Association of Canada......25

Da-Lee Dust Control....................................................21

Terraquest Airborne Ltd..............................................27

Emerson Canada........................................................IFC

Trojan Tire....................................................................29

Fabrithane Industrial Products Inc..............................27

Valard..........................................................................11

Gal Power Systems................................................. OBC

Varis Mine...................................................................23

Fall 2015 PRINTED IN CANADA 11/2015

3

Minister’s Update

Ministry of Northern Development and Mines

By Michael Gravelle, Minister of Northern Development and Mines

Ontario has been a world leader in mining for more than 125 years. Mining has always been an important contributor to the provincial economy, particularly in the North.

In a global environment dominated by economic crises, fluctuating commodity prices and market volatility combined with fierce international competition, prospectors and miners face many challenges.

But together, we continue to overcome the obstacles and maintain Ontario’s position as one of North America’s premier mineral investment destinations.

Ontario is a major jurisdiction for both exploration and mine production. During the past decade, more new mines have opened here than in any other province, with more than 40 sites currently in operation. Another six mines are currently under construction. Some of these new sites will include surface operations, an impressive addition to our traditional underground mines.

While we have not been immune to the global downturn in exploration investment, we recognize the importance of continuing to work closely with industry to navigate through a difficult period.

Our ministry remains focused on promoting the mineral sector, driving growth and supporting an innovative and dynamic business climate. To that end, we have invested more than $160 million in exploration and mining activities since 2003.

And those efforts continue.

Renewing the province’s Mineral Development Strategy and modernizing our century-old Mining Act will help the mineral sector cultivate innovation and increase mineral discovery rates to remain globally competitive and capitalize on future opportunities.

We continue to work closely with industry, First Nations and Métis partners to reinforce our commitment to improve regulatory efficiencies without compromising environmental responsibilities.

A solid regulatory regime, combined with a competitive tax framework, will help motivate more investment into mineral exploration in Ontario.

Our government also continues to lay the groundwork for development in the Ring of Fire. In June, another milestone was reached when Ontario’s Ministry of the Environment and Climate Change approved Noront Resources’ Terms of Reference for the Environmental Assessment – with significant amendments – for its proposed Eagle’s Nest project in the region.

The secret of Ontario’s success as a mining sector leader is our resolute determination to foster collaboration, encourage industry growth and promote Northern Ontario as a superior destination for industry investment.

Even in this delicate global economy, Ontario’s mineral sector continues to demonstrate not only resilience to challenges, but also the confidence to seek new opportunities. There is no question that exploration and mining are key components of the economic engine that drives Northern Ontario, Ontario and Canada as a whole.

Our combined efforts will keep Ontario competitive and ensure that exploration and development remain viable for centuries to come.

Ontario has tremendous potential for expansion in mineral exploration development, and I am optimistic that our future is full of promise.

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Ontario Mining Review

Mineral Exploration Roundup 2016 January 25-28 Vancouver, B.C.

Roundup 2016 is this year’s must-attend mineral exploration and development event to gain vital industry insights and make valuable connections. Opportunities are tailored to your role within the industry, from networking events to technical sessions, and from the trade show to best practice showcase sessions, come connect and collaborate with industry leaders.

Learn more at www.amebc.ca/roundup

A message from the

Northwestern Ontario Prospectors Association

By Bob Chataway, president NWOPA

It’s déjà vu all over again.

The hills are alive with the sound of music and not much else. Who is making money these days? The mint? All is not well in our neck of the woods, but there is no use moving as it is the same across the land.

The exploration industry is caught in a perfect storm: commodity prices are weak; demand for goods is flat; ground rules are in a state of flux; investors have gone elsewhere; and option deals are nonexistent.

So what is there to do? That is a good question. Some have opted out of the industry in order to support their families. Some are digging in and upgrading their skill set for when the boom starts. Others are taking early retirement for now until they are lured back to the game they love.

On a lighter note, the NWOPA and several other associations (Canadian Institute of Mining – Thunder Bay; Community Economic Development Commission – Thunder Bay; Women in Mining – Thunder Bay; and the Ministry of Northern Development and Mines) brought the third annual Thunder Bay Mining Day to a large and enthusiastic public on June 6 this year.

The event was held at Prince Arthur’s Landing in Marina Park under the big tent. More than 40 exhibitors and individuals participated in games and activities with a mining-related theme. Activities included panning for gold, driving a mine truck on a simulator, operating a back hoe, identifying minerals and their common use in everyday items, winning bicycles in draws, finding treasures using geophysical instruments and more.

Also popular were the short talks on mining and the walking tour of the building stone used in the iconic buildings in Port Arthur. Kids were able to get up-close and inside a scoop tram, helicopter, jumbo drill and surface drill, all thanks to the generosity of the mining community.

We look forward to another successful event on June 4, 2016.

Please bring your neighbours out for an introduction to our industry. Check out our website at www.thunderbayminingday.ca for a full gallery of the day’s activities.

Happy holidays and may the winter winds be followed by warm, hard cash.

Cheers, Bob Chataway

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Ontario Mining Review

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The top three issues in mining relationships... and how to overcome them

By Angie Willcocks, Mining Family Matters psychologist

• T ry different ways of staying connected when one partner is away. Notes, letters, texts and phone and video calls will have you feeling closer.

• Try to work as a team even when your partner is away for work. Frequently use the term “we” in conversations. For example, use “What shall WE do?” about whatever the problem is (rather than “what are YOU going to do about it?” or “what do you want ME to do about it?”).

• Know yourself – notice your own thoughts and feelings and monitor your own behaviour within the relationship.

• Regularly check in with each other about how the lifestyle is going.

Alicia and Joe Ranford.

There’s no such thing as a perfect couple or a perfect relationship. All relationships have ups and downs, and in relationships where one partner works fly-in, fly-out (FIFO), the ups and downs can feel extreme. I know that many FIFO couples love the buzz of seeing each other again after time apart. I’ve heard many couples say that the high of the reconnection makes it all worthwhile. There’s no doubt in my mind that couples like these, who actually enjoy FIFO and all it brings, are those who understand how to manage the tricky parts of the lifestyle.

So what are those tricky issues to negotiate? Well, in my opinion, they are com8

Ontario Mining Review

munication, how time is spent and sex. I’ve compiled this list of dos and don’ts from conversations with couples who love FIFO, as well as those who struggle with it.

1. Communication DO: • Know your hot topics. What are you likely to argue or disagree about? Get a plan on how to deal with this properly so you can stop going over the same old ground. For example, if you find yourselves constantly arguing about how to discipline the kids, come up with a discipline plan.

DON’T: • Stick your head in the sand and hope problems will go away. Name the problems, and then work to solve them together.

• Personally criticize each other. Ever.

It’s fine to complain about a behaviour you’re not keen on (“I really don’t like it when you leave your work gear in the hallway”). However, do not say, “You’re such a lazy slob”.

• Expect deep and meaningful conversations every day. You wouldn’t have them if you both worked in a nine-to-five office job, so don’t expect them when one partner is away.

• Allow FIFO to be an excuse for bad relationship habits. “Side effects” of FIFO, like fatigue, can lead to bad habits if you’re not careful.

• And finally, remember that good communication does not mean endless talking about all your problems or difficulties. Good communication is a daily task

2. How time is spent Lots of FIFO couples argue about how each person spends their time. There are many variations on this: the home partner getting annoyed with how shift change is spent; how much time is (not) spent with family when they’re home; the away partner annoyed with how often the partner at home is going out; or how much time they all spend with extended family. There is no “one-size-fits-all” answer to this, but it’s worth remembering that arguments about how time is spent usually come down to differing priorities.

Angie Willcocks.

in a relationship: little things like saying “thank you”, making a cup of coffee, remembering to ask how things are for your partner and being aware of your own relationship behaviours.

DO: • Talk about priorities and areas of importance. You might not share your partner’s priorities and motivations around how time is spent, but when you hear about what is important to them, you might start to understand their reasons for spending their time the way they do.

For example, you might rate your family higher than friends in how you want to spend your time, but this doesn’t mean your partner will. Understanding each

•

•

•

• • •

other’s time priorities can lead to respectful compromises.

Agree on a realistic list of jobs/tasks that need doing while the away partner is home.

Let your partner know one or two fun/relaxing things you’d like to do when you’re together.

Be clear about who is responsible for which jobs. Allocate tasks by roster or list.

It sounds regimented, I know, but it saves a lot of arguments.

Build a support network of family, friends or paid help.

Plan on spending some time doing things separately when you’re together.

If you’re the away person, make sure you keep in contact with friends and family while you’re away – it will ease the pressure to see everyone and catch up every time you’re home. Try to keep important connections continuous.

DON’T: • Try to cram everything into the time your partner is away (if you are the home person). Young FIFO workers tell me they

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• A lways do things just to please your partner (this goes for both the home and away person). While compromise is obviously a very important part of a healthy relationship, always giving in to your partner’s priorities isn’t.

3. Sex and intimacy It’s an issue in many relationships, and sex and intimacy can definitely be affected

by FIFO. The pressure to squeeze all the loving into a week or so, and differing libidos (common in all long-term relationships) can leave one or both partners feeling disappointed, dissatisfied and disconnected.

Many FIFO couples love the buzz of seeing each other again after time apart, according to Willcocks.

feel under pressure when they’re home.

Their partner has often squeezed everything else in his/her life into that rostered time away, so they can be available 24-7 when they’re together. It sounds lovely in theory, but it’s a huge amount of pressure.

• E xpect to always agree on how each other’s time should be spent. The intensity of the time together can definitely add to the pressure for everything to be “perfect”, but it won’t be. There will be times when you disagree.

DO: • Stay connected when one of you is away for work. This could take the form of sexy text messages or phone calls if you’re comfortable with that, or little gifts or notes for each other.

• Think about your partner while you’re apart. Remember the things that first brought you together and what you love about them now.

• Work on breaking your “sex cycles”. If you always wait for your partner to initiate

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Ontario Mining Review

sex, you do it next time. If you always initiate in a certain way at a certain time, try something different and unexpected.

• Discuss your satisfaction with your sex life in a respectful way.

• Understand each other’s “love language”. Some people feel most loved when their partner makes love to them, others feel loved when their partner hangs out the washing and others still feel the love when their partner tells them how great they are. Gary Chapman has written an excellent book on the subject called The Five Love Languages – check it out.

DON’T: • Emotionally disconnect from your partner when you’re apart. I know this is a big ask. Some people protect themselves from feeling too lonely or sad by cutting off emotionally. While this can work OK in the short term, but it’s a habit that will add strain to a long-term FIFO relationship.

• Allow stress, worry and resentment into the bedroom. Work to resolve any problems outside of the bedroom (as much as possible).

• Withhold sex as a way to try to get your partner to understand your feelings.

This is serious miscommunication. They

won’t understand the message and the lack of intimacy is likely to contribute to any problems you already have.

• Worry if your sex life is not perfect. As a FIFO couple, you can always start fresh next time round. I think mining couples actually find it easier than most to break bad sex cycles.

There you have it – these are my tips for keeping your relationship healthy and happy. Good luck!

For further expert advice on mining and exploration relationships and parenting, visit the Mining Family Matters website at www.miningfm.ca.

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Sudbury’s vibrant mining community continues to look forward to future growth

By Leonard Melman

Without question, mining has been the single most important driving force behind the historic economic growth of the Sudbury, Ont. region and, without doubt, mining will likely play a significant role in the Basin’s social and economic future as well.

However, mining history within the Sudbury region has not followed a smooth and easy path of gradual and steady expansion.

Far from that being the case, there have indeed been periods of rapidly expanding prosperity, but these have been interspersed with other periods, including the present time frame, when mining matters have taken a somewhat negative turn.

From a historic point of view, mining began in the Sudbury region with the 1883 accidental discovery of ore containing nickel and copper values during preliminary blasting and excavation work for the Canadian Pacific Railway. This serendipitous event led to intense exploration and the sequen12

Ontario Mining Review

tial development of major area mines during the late 19th and early 20th centuries, a trend continued into the present time frame.

As geologic knowledge of the Sudbury Basin grew, a thesis developed that much of the area’s mineral wealth was created by a massive meteor striking the Earth near what is now the city of Sudbury approximately 1.85 billion years ago. Geologists theorize that this collision created a circular crater of immense depth containing great mineral wealth. According to geologic studies, the ore values were left along the crater walls and at depths approaching 10,000 feet (about 3,000 metres) below surface.

During subsequent millennia, continental drift is believed to have caused the circular crater to evolve into an oval shape, and through the era of modern mining, numerous mines have been developed around the perimeter of that extended oval-shaped

basin. Starting from the approximate city centre and proceeding in a clockwise direction, we find ore bodies – both active and inactive – with names such as Copper Cliff, Kelly Lake, Denison, Victoria, Totten, Trill, Windy Lake, PM, Morrison, Wisner, Broken Hammer, Parkin, Podolsky, Amy Lake, Victor Deep and Nickel Rim South.

As these projects were developed, two dominant companies emerged, Inco and Falconbridge. Under their leadership, the community of Sudbury thrived, periodically surging in population as new demand factors for their metals emerged such as military demands from both world wars and the discovery of nickel applications to steel processing. Despite periodic ups and downs, the city has grown from less than 10,000 people in 1921 to a Greater Sudbury population of more than 160,000 by 2011.

The growth of mining and smelting was not without problems, and these included

environmental devastation due to the previous technique of roasting ore over open coke beds and concomitant acid rains. As a result, area granite rocks became blackened and the Sudbury region also suffered a substantial loss of native vegetation.

Interestingly enough, the environmental damage became so widespread that when astronauts from the U.S. NASA space program were sent to Sudbury for special training, many observers believed that it was the bleak specter caused by environmental damage which was the reason for this special training. However, a CBC Radio study released in summer 2015 stated clearly that the NASA training at Sudbury was due to the similarity of the meteor crater rocks noted above to rocks which might be found on the lunar surface.

By the late 1970s, a widespread “re-greening” program was developed whereby the worst damage was covered first by lime and then by seeding to promote grass and native plant growth. In addition, more than nine million new trees were planted in the Greater Sudbury area by 2010.

Thanks to robust commodity metals economics, which developed in the first decade of this century, the area’s two major corporations became takeover targets with Falconbridge being eventually bought out by Swiss giant Glencore Xstrata and Inco being taken over by Brazil’s Vale Corp.

Inco had been in operation for more than a century and had grown into one of Canada’s major resource corporations. One of its landmark achievements was the construction in Sudbury of the world’s tallest smelter chimney, reaching a height of 637 feet above ground level. Vale made its takeover bid in 2006 in the amount of $19.4 billion, an offer which was accepted by Inco and approved

by Vale shareholders. Vale has pledged to continue both mining operations and exploratory/development works.

In 1928, businessman Thayer Lindsley paid $2.5 million for mining claims in the area and created Falconbridge Nickel Mines Limited. The new company took immediate steps to work the claims, and despite the stock market crash of 1929, it was able to sink a shaft and begin to develop the mine, as well as build a smelter. Since 1930, Falconbridge has maintained a refinery in Norway.

During the first decade of this century, a bidding contest developed for acquisition of Falconbridge, a war ultimately won

by Switzerland’s Xstrata Corp. Xstrata was subsequently bought out by Glencore, and the latter company continues to operate what they refer to as Integrated Nickel Operations including mining, smeltering and refining.

Current problems for the mining industry in the Sudbury Basin can be largely attributed to declining prices obtained for important metals mined within the district.

As an example, the price for nickel has fallen from near US$13 per pound in mid-2011 to below US$4.50 per pound fall 2015, while copper has fallen from over US$4.00 to near US$.25 per pound during the same period.

In addition, other area metals such as palladium, platinum and gold have also suffered through similar negative price performance.

Although these price declines have somewhat limited current activity, the area’s miners stand ready to actively contribute to Greater Sudbury’s and Ontario’s economic and social future.

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Serpent River update proves promising

By Melanie Franner

Since acquiring the Serpent River property in 2006, International Montoro Resources Inc. has been building up data on it slowly and steadily. The company’s latest 2015 program on the Elliot Lake-area property saw two holes drilled to depths of 1,005 and 1,317 metres respectively. Results from the two holes – PDH No. 1 and PDH No. 2 – are indicative of a potentially significant Ni-CuPGE mineral deposit.

From there to here The 1,840-hectare Serpent River property, which is located about 15 kilometres from Elliot Lake, has long been considered a potential uranium deposit. Historically, the property was shown to contain significant uranium mineralization. Information predating NI43-101 showed an indicated resource of 20,000,000 tons grading 0.037 per cent U308 or 14,800,000 pounds U308. This estimate was based on very limited drilling.

Montoro’s own drilling on the property has found uranium values in mineralized 14

Ontario Mining Review

quartz pebble conglomerates consistent with these historic results.

But a 2009 summary of Ontario Geological Survey field work showed a strong geophysical anomaly on the claims that were previously thought to be caused by iron formation. New interpretations of the Pecors Anomaly concluded it may be the result of a mafic-ultramafic body that could contain contact-style nickel-copper-PGE mineralization similar to that found near Sudbury.

Sediment sampling from nearby Pecors Lake has since shown high levels of nickel and chromium, which lent further weight to the analysis.

Recent work Additional airborne surveying and subsequent 3D modelling helped Montoro narrow the focus of its work to a concentrated area on the Serpent River property – now commonly known as the Pecors Anomaly – an inversion block measuring approximately seven kilometres long by three kilometres

wide. In the spring of 2015, the company then set about with a diamond-drill program.

“We drilled the first hole because it was located at the shallowest point where we expected to intersect the interpreted gabbro unit, the rock type which could host potential Ni, Cu and PGE mineralization within the Pecors Anomaly,” explains Gary Musil, president and CEO of International Montoro Resources. “We drilled the second hole approximately 650 metres northwest of PDH No. 1 at the point where the magnetic intensity in the Pecors Anomaly was the highest and in an area where we interpreted that a possible feeder dike could enter the magma chamber.”

As a result of a combination of the drilling and the use of down-hole probing technology, two distinct conductive anomalies were detected and modelled from PDH No. 2. At down-hole depths of about 580 to 590 metres, this shallow anomaly was 75 metres (246 feet) from the hole and coincides with the contact between the Huronian conglomerate and basalt. The second anomaly detected at 975 to 1,021 metres was only 70 metres (230 feet) from the hole and it coincides with a thick gabbro unit.

The main objective of the drilling and probing program was to better understand the geology and nature of the VTEM magnetic anomaly identified during the airborne survey and the 3D interpretation of the anomaly. On that score, the program paid off.

“The program was successful and the information obtained from the drill program will be very useful in the planning of a further exploration program,” says Don Hawke, consulting geologist for Montoro.

“Although only anomalous values of NiCu-PGE were received in the two holes, I

The main objective of the drilling and probing program was to better understand the geology and nature of the VTEM magnetic anomaly identified during the airborne survey and the 3D interpretation of the anomaly. On that score, the program paid off. remain optimistic that the results obtained through the recent programs give further evidence that the Pecors target may host a new deposit type in the Elliot Lake mining camp.”

Next steps According to Musil, Montoro has two options available in the immediate future.

“One, we could go back down, re-enter PDH No. 2 and then wedge off the hole near the anomalies in order to try to attain more data and intersect the conductors,” he explains. “Or, the more likely, a second option, is to use AMT magnetotelluric technology, which will allow us to conduct the survey from the surface in order to provide a better picture of any conductive targets within the

Pecors magnetic anomaly itself. This type of technology can provide data to a depth of about two kilometres.”

Musil adds that both options can be conducted at any time, even in the winter.

“We will focus on getting financing in place to move forward with either one or both options later this winter or early in the spring,” he concludes.

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Pecors Anomaly

Fall 2015

15

Little to no environmental impact

Remote building solutions that leave operating sites in their natural state

By Amanda Monaghan, marketing manager for Britespan Building Systems Inc.

Exploration companies are looking for ways to construct safe, strong and reliable site buildings for the exploration, processing and storage of commodities, as well as equipment storage buildings, and even worker housing for remote sites. And it is becoming increasingly important to leave exploration sites in their natural state.

Conventional buildings, such as steel buildings, have traditionally been the choice for these sites, but are they the best choice?

These buildings can be costly and difficult to ship to remote areas. They can also be time-consuming to construct, and are es16

Ontario Mining Review

sentially permanent structures. None of these are ideal in an industry that often requires buildings to be rapidly constructed, has a variety of building uses and may, at some point, have to be moved to a new work site.

One of the first things that make fabric buildings a preferred solution for mineral exploration companies is that they can either be permanent, temporary or entirely portable. This is achieved by offering a number of foundation options, from concrete blocks, shipping containers or a base rail foundation. These are all options for

temporary or portable building solutions, in addition to the many permanent options.

Fabric buildings can be completely deconstructed and moved or stored when a site is finished with it, creating little environmental interference.

Using shipping container foundations allows fabric building manufacturers to create hybrid building solutions that are particularly ideal for the exploration industry, because the containers themselves act not only as a foundation for the building, but also as functional space used for employee housing, change rooms, washrooms, workshops, storage, etc. This really allows fabric building owners to maximize the use of their buildings.

In addition to the foundation options, fabric buildings are also completely customizable, from door sizes and types, insulation option and length, width and height.

What would you use a fabric building for?

Just about anything. The buildings can be used for warehousing, workshops, vehicles, equipment and commodity storage and coverage for working machinery. The possibilities really are endless. The extra-high clear span design of the buildings allow for large and heavy equipment and machinery to operate within the building without issue. Fabric buildings also increase the longevity and maintain the condition of equipment and machinery by protecting them from the elements.

Employee safety and creating a healthy working environment is another reason fabric buildings far exceed traditional buildings. Customers of fabric covered buildings

All Weather, All-Purpose Modular & Permanent Building Solutions.

Why choose Britespan™ Building Systems • Portable, temporary and permanent solutions with flexible foundation options • Flexible foundation options including containers and base rail • Post-welding hot dipped galvanized steel for superior rust protection • Tested ability to withstand corrosive commodities • Extra high clearance for truck safety & unloading

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often say the environment is the most comfortable and safest environment for their workers, with superior air quality and ventilation, and the floods of natural light create a shadow-free, safe working environment.

And, of course, another reason fabric buildings are the ideal solution for exploration companies is that they can be constructed anywhere, no matter how remote the location. They are often built in less time than traditional buildings, making for almost immediate job sites.

CUSTOMER OVERVIEW A portable building solution was exactly what William Day Construction (Day Construction) was looking for when they chose a fabric building from Britespan Building Systems Inc. (Britespan) for a maintenance and heavy equipment storage building at the open-pit Hollinger Mine site in Timmins, Ont. Benoit Melançon is the site manager for Day Construction overseeing the Hollinger Mine project.

Day Construction purchased an Atlas Building Series on container foundation.

“The owner of Day Construction has a Britespan building of his own and suggested we look into purchasing a building from Britespan for the Hollinger site as well,” says Melançon. “We chose the building from Britespan for its portability. The container foundation allows us to deconstruct and move the entire building to a new explora18

Ontario Mining Review

tion site when we are finished.”

In addition to the building’s portability, the building was able to accommodate some of the more custom requirements that Day Construction needed, such as extra height and internal clearance for excavators with long arms, as well as all of the heavy equipment and vehicles within the building.

“We were also able to get an 18-by-18inch door for the building, which was great for the size of equipment we kept inside. We also were able to use the container foundation for storage.”

Day Construction worked with Britespan authorized dealer, Leisure Farms, out of Sturgeon Falls, Ont.

“Leisure Farms was great to work with,” says Melançon. “We had some issues with the ground settlement prior to construction. Leisure Farms prepared the site, levelled the ground and ensured that everything was ready for construction. Their team organized construction of the entire project, were very knowledgeable, and the building was constructed quickly so we could get back to business as usual and start using the building. Working with them was a really great experience.”

After using their Britespan building for some time now, Day Construction says some of the other features that made a fabric building the ideal solution for their operation is the natural light and ventilation.

“The natural light that floods into the building is great and creates a safe and well-lit environment. The ventilation was important because of the fumes that can sometimes be let off from the equipment.

So, combined, the building allows us to maintain a safe and comfortable working environment for our crews,” says Melançon.

As winner of the Industry Supplier of the Year Award for the 2015 Canada Oil & Gas Awards, Britespan is always striving to provide the best building solutions to exploration companies across Ontario, and growing and innovating with them as an industry partner. Working with expert dealers like Leisure Farms allows us to meet and exceed our customers’ needs and requirements, as well as the environmental demands of the operating sites.

Large enough to service, small enough to care Primemax Energy is a privately owned company based out of Cambridge, Ont. serving Ontario and parts of Quebec.

James S. Taylor started the company in 1992, recognizing a need for an alternative to the larger players in the propane industry.

Success has followed the company from its humble beginnings. Today, his son Michael is the president of Primemax Energy.

Primemax Energy is serious about customer service and being a responsible corporate citizen.

Here are a couple of examples of how the company works at being a good custodian of our environment. Workers have started converting their large units to run on a blend of propane and diesel, which they call the ecoblend system. Benefits include lower emissions, longer particulate filter life and reduction in diesel fuel, which saves money.

Primemax Energy manages propane levels in customer storage tanks with satellite monitors, which reduces the numbers of deliveries while ensuring security of supply.

The company also operates its transportation and supply division on a 24-7 basis. Its fleet is GPS-tracked so the dispatch office knows where and when products will arrive.

Primemax Energy wants the propane customers utilize at their mining operations to serve its purpose without stress.

Together with its installation partners, Primemax Energy can offer complete turnkey storage and vaporization systems, or just simply provide consistent supply and transportation of everyone’s propane needs.

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Fall 2015

19

Da-Lee gets down to business

Since 1972, Da-Lee Group has seen its fair share of changes throughout the years. As a family-owned and operated business, the company has served the needs of custom-

ers across Ontario and into the northern United States. The operating entities – DaLee Dust Control and Da-Lee Environmental Services – are known for providing

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Ontario Mining Review

top-quality products and customer service, safely and professionally.

Da-Lee Dust Control specializes in dust suppression and road base stabilization on unpaved roads, parking lots and horse arenas. The company supplies liquid calcium chloride for use in ready-mix concrete, wastewater treatment and as a liquid antiicer/de-icer on paved roads and aggregate operations in winter.

“There isn’t anything overly complicated about calcium chloride,” states Jonathan Hagen of Da-Lee Group. “Yet, the special properties of calcium chloride make it a versatile product for various applications within the mining industry.”

Da-Lee provides 28 to 42 per cent LIQUIDOW™ Calcium Chloride, an extensive range fitting a multitude of applications.

Application rates and methods vary depending on the specific goal, be it road dust

control or anti-icing/de-icing for successful winter operations.

“As regulations stiffen towards emissions and dust control, mine officials attempt to meet the local or provincial standards in the most economical way. This is where calcium chloride becomes a valuable product, specifically on haul roads, stockpiles and main parking areas,” Hagen says.

Where a more durable solution is required, Da-Lee offers a premium virgin oil product for dust control solutions on problem areas. This new, petroleum-based oil product is a highly durable and long-lasting solution to stabilize the road and control dust emissions. This past summer, an application at a site in Sudbury of the virgin oil product was tested by the industrial hygiene department and determined to be effective at eliminating fugitive dust emissions from the surface completely for an extended period of time.

Mines in northern Ontario encounter the challenge of cold winters. Da-Lee has been able to resolve winter freezing and dust issues in recent winter seasons for various mining companies. Around 30 to 32 per

cent LIQUIDOW™ Calcium Chloride can be used in cold weather applications to keep materials and aggregates free-flowing in stock piles and through conveyor systems. It removes ice glazing, prevents material from sliding down and assists in keeping the belt soft in spite of freezing conditions.

Da-Lee Environmental Services provides treatment, disposal, transportation and

handling of hazardous and non-hazardous waste from industrial and commercial customers. In 2015, Da-Lee Environmental built a brand new wastewater treatment plant which will allow for on-site treating and disposal of liquid industrial waste.

Da-Lee takes pride in providing exceptional products and service with strong customer focus.

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Fall 2015

21

To buy or hire?

My own Drone versus UAV service provider

When contemplating utilizing UAV/aerial applications in any operation, one of the first decisions required is whether to purchase the drone or engage a UAS service provider. If you are contemplating purchasing your own, the following are some points to consider.

Equipment Depending on your application, you will want a fixed wing UAV for large, open area projects. Or if you operate in smaller, confined areas, a VTOL multi-rotor may be a better option. The Internet and media is flooded with cool-looking “hobby� drones that you can buy starting at about $1,000.

If you are planning on using a drone for any surveying or mapping projects, you will need a UAV designed to carry more sophis22

Ontario Mining Review

ticated instruments and payloads. You can expect to pay $30,000 for a survey grade UAV. In addition, the support equipment (imaging equipment, base station, computer, extra batteries, transportation equipment) can easily double the UAV cost.

safety and many of the components must be replaced regularly. For example, batteries have a maximum charge or life cycle and, depending on use, will last about one year.

The LiPo batteries used in UAVs can cost hundreds of dollars each.

Maintenance/repairs Even for the experienced pilot, damage is inevitable. During the training phase, it is not uncommon for an inexperienced pilot to have numerous crashes costing thousands of dollars in parts, not to mention lost time. This combined with the harsh environment most commercial UAVs operate in means that the electronic equipment on board is more prone to fail due to excessive dust and weathering. Therefore, constant maintenance must be done to ensure

Regulations/training/ personnel In Canada, Transport Canada regulates the commercial use of all UAVs (regardless of size). All commercial use of UAVs in Canada requires both the crew (minimum of two trained persons) and the UAV to be certified. The regulations are constantly changing, and proposed new rules will place even more onus on the commercial side of UAVs. As part of Transport Canada’s regulations, commercial UAV liability insurance

is also required. Not only is it required by Transport Canada that UAV crews be properly trained, but, as with any equipment, competency training is also necessary. Acquiring skills to operate the UAV, imaging equipment, efficient workflow and safe operating procedures are just some of the areas which your crew must learn. In areas of low employee retention, constant (re)training of

employees into this specialized area could become a significate expense. Additionally, if the demand does not exist for regular usage, not only will crew proficiency suffer, but it will also result in underutilization the invested capital assets.

Data processing All of the equipment, training and data

acquisition are only half of the equation.

Without the software, computers and data processing knowledge to process the data, flying a UAV may as well be a hobby. Knowing the software is crucial.

If you chose to engage the services of a professional UAV service provider, the only thing you need to do is ensure they are certified and insured.

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Fall 2015

23

PDAC 2016: Where the world’s mineral industry meets

The world’s premier mineral exploration and development event is once again set to take place in downtown Toronto, Ont. The 84th edition of the Prospectors and Developers Association of Canada’s (PDAC) International Convention, Trade Show & Investors Exchange, which brings together thousands of investors, analysts, mining executives, geologists, prospectors, students and government officials from more than 100 countries, will be held at the Metro Toronto Convention Centre (MTCC) from March 6 to 9. More than 23,500 people attended in 2015.

“Canada is a world leader in mineral exploration spending and the PDAC Convention has gained a reputation for providing collaboration opportunities for the industry,” says PDAC president Rod Thomas. “Bringing government, key influencers and decisionmakers together means that the latest trends, technologies and challenges affecting our sector are brought to light and ultimately help Canada stay ahead of the game.”

For the first time, a one-of-a-kind assortment of 25,000 ores and minerals, many of which are from closed or inaccessible mines, will be showcased. The Kirwin Collection, on loan from the Royal Ontario Museum, will be displayed in Trade Show North, which returns to the North Building of the MTCC for the second year to host additional exhibit space.

24

Ontario Mining Review

The capital markets program, aboriginal program, short courses and workshops return in 2016, along with a keynote session about the future of exploration and development to 2026.

Technical sessions such as “What do mining analysts think of your company?” and “Supergiant porphyry Cu - Au deposits: Important global resources for the future” are expected to draw specialized audiences.

“Programming is designed to reflect current economic and industry trends being faced and provide education and networking opportunities to address them,” says Thomas. “The quality of networking and learning prospects on offer remains a prime attractor for attendees.”

As the PDAC expands its political influence, a heavier government presence is being felt. Former prime minister Stephen Harper attended the PDAC 2014 Convention – the first and only prime minister to do so. The following year, the federal government used the PDAC Convention as a platform to announce the renewal of the Mineral Exploration Tax Credit (METC) and the appointment of Jeffrey Davidson as Canada’s corporate social responsibility (CSR) counsellor for the extractive sector.

“We look forward to building upon our past success and continuing to make ours the world’s leading convention for people, companies and organizations in, or connected with,

mineral exploration,” says Thomas.

Some social highlights to look forward to at PDAC Convention 2016 include: • Awards evening: Outstanding achievements to the Canadian mineral industry are honoured.

• Mineral outlook luncheon: Don Coxe will discuss the status of the mining industry in Canada and globally – now and three years from now.

• Panel luncheon: A discussion on the major sectors of the macro-economy that are likely to initiate new growth in the metals market will be discussed.

• Prom night closing party: Feel the nostalgia as you close out the convention in your finest prom duds.

PDAC represents the interests of the Canadian mineral exploration and development industry. It is a national organization with more than 7,000 individual members and more than 1,000 corporate members.

The PDAC exists to promote a responsible, vibrant and sustainable Canadian mineral exploration and development sector. The PDAC encourages leading practices in technical, environmental, safety and social performance in Canada and internationally.

The early registration deadline is Feb. 5, 2016. More information is available at www.pdac.ca/convention.

ONLY GOING TO ONE MINING INVESTMENT SHOW THIS YEAR?

MARCH 6 – 9 PDAC 2016 CONVENTION HIGHLIGHTS • Technical Program featuring 18 sessions by industry experts • Over 1,000 exhibitors promoting technology, products, samples and claim results!

• Topical Short Courses

• Aboriginal, Capital Markets, Corporate Social Responsibility (CSR) and Student Programming • Popular networking events such as Luncheons, Awards Evening, Receptions and Closing Party

REGISTRATION OPENS IN DECEMBER www.pdac.ca/convention

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Northwestern Ontario mining remains active while awaiting improving metals commodity prices

By Leonard Melman

While many areas of Ontario have seen a reduction in mining activity due to declining metals prices, vast regions of Northwestern Ontario appear to have escaped the worst of this downturn and may even be enjoying a period of accelerating exploration and development. This area extends from Thunder Bay westward to the Manitoba border and north toward Hudson Bay. The Ontario Ministry of Northern Development and Mines lists four primary mining districts within this large area: Thunder Bay North, Thunder Bay South, Red Lake and Kenora.

One of the problems that mining enterprises must overcome in a remote region such as Northwestern Ontario is a general lack of infrastructure. Both of Canada’s major railroads operate trunk lines from Thunder Bay west to the Manitoba border, but there are no north-south lines at present. While the Thunder Bay South and Kenora districts have substantial quality highway coverage, only two main paved highways support traffic into more northerly areas. No 26

Ontario Mining Review

road access is available in the more northerly regions to the south of Hudson Bay. However, despite obstacles such as limited access, brutally cold winters and the existence of bogs and swampy areas, miners continue to be attracted by both the mining history and mineral potential of these districts.

Many of the deposits located in Northwestern Ontario have been found within greenstone belts located in Archean-age, metavolcanic, metasedimentary and intrusive rocks comprising a portion of the Uchi Subprovince of the extensive Canadian Shield. Greenstone belts have been recognized for their high-grade, potentially profitable, gold ore bodies.

The area’s recorded mining history began in the 1920s with the discovery of gold ore in the vicinity of Red Lake in the 1920s, leading to the development of early mines such as Howey, Moss, Pickle Crow, Sachigo River, Red Lake Gold Shore and Sand River.

In the early 1930s, a major American event heightened the rush to discover gold when Franklin Delano Roosevelt removed official conversion of American dollars into gold, and simultaneously raised the official price of the yellow metal from US$21 to US$35 – thus, in one stroke, dramatically increasing the potential profitability of gold discoveries. Mining in general also received an important boost from the armament and munitions buildups – both requiring major quantities of metals – which were associated with the Second World War. Eventually the Red Lake district became the most productive metals mining district in Northwestern Ontario with the discovery and development of important mines, including Campbell-Red Lake, Cochenour-Williams and Madsen. Gold production from the Red Lake district has been continuous since the 1930s and has amounted to more than 20,000,000 ounces to date.

The Madsen mine began production in 1938, and by the time it closed several years later, a total of 2.4 million ounces of gold had been recovered. In recent years, Pure Gold Mining Inc. had acquired the Madsen mine property as part of the third largest land package in the Red Lake district and has been using modern exploration techniques and a reinterpretation of the geologic setting to make new discoveries. According to geologists’ reports, current mineral re-

sources at the Madsen property include indicated mineral resources of 928,000 ounces Au grading 8.93 grams per tonne (g/t) Au and an inferred resource of 279,000 ounces Au grading 11.74 g/t Au. Infrastructure from historic mining operations remains in place including a 500-tonne-per-day mill, a 1,275-metre-deep shaft, 24 levels of underground workings, a headframe and a permitted tailings management facility.

The historic Cochenour-Williams mine, located just five kilometres west of the prolific Red Lake mine, is situated within the Red Lake greenstone belt and remained in production from about 1940 until 1971. Goldcorp Inc. has made re-development at Cochenour one of their high-priority projects and is continuing exploration and development work through the third quarter of 2015. According to a corporate information statement, the “Cochenour project is an important part of Goldcorp’s future plans in the Red Lake district.” One of the goals for the Cochenour project is to eventually provide feed for the Red Lake mine mill.

Goldcorp also owns and operates the Red Lake mine which has continued in operation from initiation of production right up to the present, and during 2014, gold production at Red Lake amounted to 414,000 ounces from high-grade ore averaging better than two ounces of gold per tonne. Goldcorp believes that recent investments in infrastructure and development will set up this famous mine “for many more years of long-term sustainable production.”

Although the Red Lake district is the only one in Northwestern Ontario with actual production, the Kenora, Thunder Bay North and Thunder Bay South districts are all prospective for exploration and development work. Active companies and their projects include:

KENORA DISTRICT New Gold Inc. with their Rainy River development project located 65 kilometres northwest of Fort Frances.

Chalice Gold Ltd. with their Cameron Gold project located 85 kilometres southeast of Kenora.

Manitou Gold Inc. with their Kenwest and Gaffney Extension projects near Dryden.

Treasury Metals Inc. with their Goliath Gold Project near Dryden.

Canadian Arrow Mines Ltd. with their Kenbridge project near Kenora.

THUNDER BAY SOUTH DISTRICT Canoe Mining Ventures Corp. with their Coldstream project west of Thunder Bay. THUNDER BAY NORTH DISTRICT Given the underdeveloped infrastructure in this region combined with uncertainties related to the adjacent “Ring of Fire” discoveries, there is relatively little active exploration work ongoing at present in this region of far northern Ontario.

It is a remarkable achievement for the mining industry in Northwestern Ontario to have sustained its current level of activity despite one of the most serious periods of commodity price decline on record. One can only speculate on the magnitude of the strong rebound in mining activity – and the strong contributions to Northwestern Ontario’s economy – which might be anticipated in an era of improving metals price structures.

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27

City Welding: A family business

By Robert Brouillette

In the beginning, City Welding was a one-man operation focused primarily on trailer hitches and road repairs to heavy equipment. Now, City Welding is a very well-respected mild steel, aluminum and stainless steel repair and custom fabrication job shop with about 40 employees.

From left: Gisele Brouillette, former mayor Marianne Matichuk, Georges Brouillette and Robert Brouillette.

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Ontario Mining Review

From lawyer to welder and general manager of a family welding business – and more recently taking over the family business started by my parents in their garage at home in 1974 – I have to say the journey has been both challenging and rewarding beyond my expectations.

After practising criminal and personal injury law for 10 years, and realizing that I was working to help retire several partners, I decided to return to the family welding business where I stated working when I was 12 years old. I simply could not pass up the opportunity to help my parents retire, especially my father who, at 70 years old, still works the tools. My father was the leading force behind the company while my mother handled the financial aspects of the company.

In the beginning, City Welding was a one-man operation focused primarily on trailer hitches and road repairs to heavy equipment.

Now, City Welding is a very well-respected mild steel, aluminum and stainless steel repair and custom fabrication job shop with about 40 employees.

I have experienced significant personal and professional rewards which will undoubtedly remain with me forever, and which will hopefully help me ensure my father and the company’s legacy for years to come.

I have learned so much about the business, and life in general, from my father. The choice to work alongside him has been the second best experience in my life – next to getting married and becoming a father, despite the fact that he strongly suggested and, in fact, fired me and suggested that I find other employment five weeks before getting married last summer.

It only took me nine years to get fired in a family business, so I gather both he and I did some things right. I suspect that mixing a workaholic father and stubborn son does generate interesting challenges in a family-run business.

My best advice to those embarking on a similar journey is to understand and appreciate that it is a journey not without challenges.

However, the personal and professional rewards are significant. Patience and understanding from all involved are mandatory.

Making sure the lights stay on The story of GAL Power

By Deb Smith

Within the relatively short time span of 30 years, GAL Power has grown from a one-man enterprise to a successful and proud company with more than 200 employees.

Built upon the strong and enduring foundations of vision and integrity, in only three decades GAL Power Ltd. has grown into a Canadian, leading supplier of standby power generators and climate control equipment. Operating on its four pillars of operation – rentals, sales, service and fuel – the company prides itself on providing customized power solutions that continue to fulfill commitment to social responsibilities.

Founded in 1985 by Guy Adrien Lapierre, the story of this company is about merging opportunity with customer service.

“Our founder started out selling light fixtures to contractors, but he quickly realized that what was lacking in the market was the need for energy efficiency and reliability,” says Martin Lopes, national director of the rentals department. “He decided then to offer that energy reliability in the form of generators to industries that required backup power in order to stay in business. He began selling generators on a small scale at first, and as the sales business grew, he found another gap in the market which was the need to service generators, and so a service division of the company was created.”

Over those first 10 years of operation, one thing led to another until it became clear that generator rentals could provide an even

better solution for many GAL Power customers. Lopes explains, “If a generator were to go down, it might take up to eight weeks to get replacement parts. Our customers couldn’t do without power; they needed to rent. So we started renting generators.”

It’s the simplicity of this business model that is the strength and the mantra of GAL Power: “What’s best for our customer is best for us.” Today, the company supplies power, usually emergency backup, to all industries – from government buildings, schools, hospitals, data centres to property managers of downtown skyscrapers to industrial customers such as mining, telecommunica-

tions and food and beverage, to name a few.

GAL Power also supplies electricity to some of the most remote areas of Canada.

About eight years ago, the company added temperature control to the rental side – heating and cooling, and has positioned itself with nine branches across Ontario and Quebec.

Within the relatively short time span of 30 years, GAL Power has grown from a oneman enterprise to a successful and proud company with more than 200 employees, earning its reputation of being wherever and whenever it is needed one customer at a time.

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XL Shelter structural fabric buildings: The ‘new’ simple answer

By Ed Vander Vegte, manager of sales and business development at XL Shelter, a division of OutFront Portable Solutions Inc.

Fabric buildings are becoming the new answer to simple, economical, storage and work areas. They are not only used in remote sites, but also in industrial and commercial parts of most municipalities. The ability to set them up not just on permanent locations, but also for short periods in order to continue a winter construction project, and then to re-purpose for another project, 30

Ontario Mining Review

makes this type of structure the right answer for a broad spectrum of projects. Versatility characterizes this type of structure.

Capstone Mining Corp. purchased this structure, which was first built as a washing station for the equipment down in the pit itself. Later, when it was not needed for this function, it was disassembled and moved up to ground level, rebuilt and insulated, and is

now used for a machine maintenance workshop. Due to the componentized nature of these structures, they can be built and shipped anywhere.

The time needed for design and build of a typical steel structure has become increasingly longer and more complicated, thus driving up the costs to create them. The structural fabric building can be construct-

ed in a much smaller window of time and cost a fraction of the price. The ability to use a variety of foundation solutions and much less intrusive construction methods make these buildings the way to go for versatile, adaptable structures.

For foundations, the following can be used: screw-in steel anchors, concrete piers, concrete pad, concrete pre-fab blocks in single or multiple layers and steel sea containers. For remote locations, containers are a real asset, since they can be filled with the building itself for shipping, along with other site materials that are required in the set-up of a remote base. The building can be put on containers that have been equipped for

security storage, offices, bunk houses, and tool and equipment lockers, to name a few.

These types of options can certainly minimize the cost effect of unfavourable ground conditions that can drive up the cost of traditional style buildings.

From an environmental standpoint, the

fabric structure also has an advantage in that it will have the smallest environmental impact as well, less ground work is needed and less lighting is required, since the building fabric allows the light in during daylight hours. As well, when it is time to move on, all components can be easily removed.

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We Will Keep You In Power

GAL Power is a team of power generator and temperature control specialists, trained to deliver solutions to meet each customer’s unique requirements.

Responsiveness, Agility and Safety is what our customers depend on us for!

Our customers choose us as their power solutions provider of choice not only because of well-maintained quality rental equipment, but also because of our highly trained customer centric personal.

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