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Ontario Mineral

ExplorationREVIEW FALL 2013

From Mars to Earth:

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How Martian technology can assist in mining and exploration activities

Understanding labour pressures in northern Ontario’s mining industry Kirkland Lake Gold completes hoisting increase; ore production to increase quarterly Overcoming difficulties as the ‘Ring of Fire’ advances toward production Technical analysis – a widely used tool for metals price evaluation ‘Off-site construction’ for the mining industry – getting started

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ExplorationREVIEW

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Message from the Premier - Kathleen Wynne

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Message from the Ontario Mining Association

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Understanding labour pressures in northern Ontario’s mining industry

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From Mars to Earth How Martian technology can assist in mining and exploration activities

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Health and safety enforcement in mining operations

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Kirkland Lake Gold completes hoisting increase; ore production to increase quarterly

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XPS successfully addresses three unique challenges in metallurgical testing Flowsheet development for Ivanplat’s Kamoa copper project

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Overcoming difficulties as the ‘Ring of Fire’ advances toward production

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Technical innovations in geochemistry

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‘Off-site construction’ for the mining industry – getting started

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Metals outlook: short term risky, long term more positive

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Exploring exponential possibilities

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Technical analysis – a widely used tool for metals price evaluation

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PDAC 2014 report

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Message from the Premier - Kathleen Wynne

Ontario government continuing to drive growth and prosperity across the mining sector The Ontario government is very proud of its status as the country’s largest producer of non-fuel minerals and a leading world producer of platinum, nickel, cobalt, gold, copper and zinc. Ontario is also proud to be a member of the select group of global destinations that produces, processes and markets diamonds. Ontario’s mineral production sector remains strong and was valued at more than $9.2 billion in 2012, with exploration spending of about $903 million. This ranks Ontario as the leading province in Canada for mineral development and exploration, accounting for about 23 per cent of total mining industry investment for the whole of Canada.

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Ontario Mineral Exploration Review

Currently, there are more than 300 mining companies actively exploring for minerals in Ontario and over 40 mines in operation. Guided by Ontario’s Mineral Development Strategy, and supported by a competitive tax regime and other important initiatives, the Ontario government is working hard to maintain and strengthen our province’s superior investment climate. Ontario is modernizing the Mining Act to more closely reflect today’s values and expectations when it comes to mineral resource development. These changes aim to encourage prospecting, staking and exploration for the development of mineral resources in a way that:

• recognizes and affirms Aboriginal and treaty rights • is more effective and efficient for industry • is more respectful of private landowners and minimizes the environmental impact of mineral exploration and development. The Mining Act Modernization rules, implemented on November 1, 2012, included new requirements for exploration plans and permits designed to require industry to consult with affected First Nations and Métis through the mining sequence, including early exploration activities. Ontario is also supporting the creation of mineral advisory positions in Aboriginal communities, tribal councils or other equivalent organizations


where there is a high level of exploration acthe Mining Act, we are encouraged by the tivity. This participation will help to ensure significant growth potential that can be seen Aboriginal communities have adequate caacross Ontario’s mineral production sector pacity to participate effectively in consultaand remain optimistic about our future. tion on exploration plans and permits and The Ontario government’s vision places closure plans. the province in a leadership role and encourBy working with our First Nations and ages the federal government, municipalities, Métis partners, municipalities and industry First Nations and industry to help build a representatives, our government is building solid foundation to enhance economic oprelationships that are key to providing cerportunities and drive growth that will create tainty and a strong foundation for mutually an even stronger economy. Mining Act Modbeneficial development. ernization is a key part of making that vision The Mining Act Modernization initiative a reality. is continuing to propose some significant The province’s approach to development changes to improve circumstances in areas in the Ring of Fire reflects that vision — a where mining exploration and development vision of smart, sustainable and collaborative might occur. The initiative is also helping to development. The Ring of Fire is an area in streamline processes, strengthen the industhe remote James Bay lowlands of northern try and bring a more balanced approach to Ontario which contains one of the most sigmineral exploration and development for nificant mineral deposits in the province, inthe benefit of everyone across the province. cluding the largest deposit of chromite ever Over the last 10 years, more new mines discovered in North America. It is estimated have opened right here in Ontario than anythat approximately 5,000 people a year would where else in Canada, with three more exbe directly and indirectly employed through THE the successful development of the Ring of pected to reach production this year —WHERE and WORLD’S MINERAL INDUSTRY MEETS at least two others set to come online in 2014. Fire. Since May 2012, the Ontario Ministry As our government continues to modernize of Northern Development and Mines has

participated in more than 50 meetings with First Nations communities near the Ring of Fire to discuss their full participation and engagement in the project. To further this process, Ontario was pleased to appoint former Supreme Court of Canada Justice Frank Iacobucci as lead negotiator on behalf of the province, who is engaging in ongoing discussions with Bob Rae, the lead negotiator for the Chiefs of the Matawa Tribal Council. With Mining Act Modernization and negotiations regarding the Ring of Fire underway, Ontario’s mineral development industry is entering a new era. The province will continue to strengthen relationships with Aboriginal communities, propose changes to the Mining Act to support a thriving minerals industry, and support the Ring of Fire and other mineral discoveries to drive economic activity and create new jobs that will benefit countless families across the province.

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Message from the Ontario Mining Association

What is mining going to do for Ontario in the next decade? To people inside the mining industry, this headline will perhaps be viewed as a rhetorical question. Those involved in the mineral sector know about the large capital investments, the thousands of direct jobs, the proliferation of indirect jobs providing supplies and services to mines, the provincial infrastructure built by and supported by mining, the communities it builds, and the taxes companies and wellpaid employees pay to support all Ontarians – and Canadians. In October, we looked closely at five of the 24 mines that the Ministry of Northern Development and Mines confirms opened in Ontario within the past 10 years. Now let’s see what new operations may be opening their doors in the not-too-distant future and providing their own additional contributions to Ontario’s society and economy. Vale is on schedule to bring the Totten Mine in the west side of the Sudbury Basin into the ranks of nickel and copper producers by the start of 2014. The company has invested $760 million during the past seven years to advance this base-metal project. During construction, there are about 500 people working on the site and when production begins, the mine will employ about 200 people. The company has signed an impact-benefit agreement with the Sagamok First Nation. This mine of the future will put into place some of the most advanced technology in mineral processing, automation and environmental management. Rubicon Minerals is an advanced-stage gold development company that is focused on the responsible and environmentally sustainable development of its Phoenix gold project in the Red Lake area. Production is scheduled to begin next year. The preliminary economic assessment indicates the Phoenix gold project has capital expenditures in the range of $214 million. The site is busy now with employees and contractors and the mine is expected to employ about 200 people when production commences. The mine is expected to produce an average of 160,000-plus ounces of gold annually with an anticipated mine life of at least 13 years. Also in Red Lake, Goldcorp is engaged in a multi-million-dollar expansion involving the enlarging and upgrading of the Cochenour shaft and the construction of a five-kilometre drift connecting to 6

Ontario Mineral Exploration Review

existing underground infrastructure. Production for the Cochenour project, which will contribute to the overall output of Goldcorp’s Red Lake mine, is expected to start in 2015. In 2012, Goldcorp’s Red Lake Mines produced more than 500,000 ounces of gold. The operation has about 1,280 employees, including contractors. In a different part of the province, Ontario Graphite plans to start up production in 2014 at its Kearney Mine, located between Huntsville and North Bay. The company intends to produce about 20,000 tonnes of graphite concentrate annually and a 30-plus year mine life is anticipated. The company says the operation will have a workforce of about 80. However, it notes that these well-paying direct jobs will lead to twice as many jobs in the supply and service sector. Numerous other mining companies – Glencore, KGHM International, Noront, Cliffs and Osisko among them – all have advanced projects with a strong likelihood of becoming mines within the next decade. However, geological, financing, production and environmental decisions all need to fall into place to turn these projects into new mineral producers. Whether looking back 10 years, forward two years – or a decade – mining brings major capital investments, employment in a multitude of forms both directly and indirectly, community-building activities, infrastructure development, and hundreds of millions of dollars in taxes for all levels of government, while producing commodities of value essential to modern society. However, perhaps the greatest commodity new mines bring to Ontario is hope. Hope for opportunities, hope for training, hope for meaningful employment, hope to build better health and education facilities, and hope for a brighter future. A University of Toronto study (“Ontario Mining: A partner in prosperity building”) shows the economic employment/creating/multiplying impact of mining. It indicates that for every direct job in a producing mine in Ontario, 3.75 indirect and supply and service jobs are created. We hope this starts to answer questions about what mining has done and will do for Ontario.


Understanding labour pressures in northern Ontario’s mining industry By Jamie Wolcottm Recent news on the labour and skills shortage forecast for mining in Ontario’s north has been met with some skepticism given the current economic climate and recent decisions to delay some advanced development projects. It’s important to take a long-term view – with many new projects anticipated over the next decade, mining will continue to be a key source of employment and prosperity for the region, but we do need to ensure the human resources are in place to meet this demand. The Mining Industry Human Resources Council (MiHR), forecasts that Ontario’s mining industry as a whole will need to hire approximately 59,000 workers over the next decade due to industry growth and to replace workers who retire or leave the industry for other reasons. This forecast accounts for a wide-range of mining activities including exploration, extraction, support services and mineral processing. To better understand the human resources (HR) challenges and what is driving the labour and skills shortfall faced by northern Ontario’s mining industry, MiHR partnered with six local workforce planning boards (Sudbury, Kenora/Rainy River, Cochrane/Timiskaming, Algoma, Nipissing, and Thunder-Bay) in order to provide a customized forecast of hiring needs over the next 10 years and support mining stakeholders’ ability to plan for future labour requirements. Stakeholders were consulted in each region (i.e., mining employers, educators, and other key informants) and their valuable perspectives were incorporated into the research. So what did the research tell us? While the six districts share a pressure to hire and replace workers, each has their own specific set of HR issues. To assist industry in addressing these challenges, it is important to understand the unique context of each community. For example, the Sudbury region is a well-established mining community that supports a large number of mining-extraction and supportservices employers, whereas the Kenora region places emphasis on mineral exploration and advanced development. Given their situations are unique, both regions face different hiring challenges over the next decade. Specific labour market pressures are identified in each district report: youth out-migration; the need to create sustainable communities—a reliance on mobile workforces; and the need to attract and

train Aboriginal peoples and immigrants—all of which negatively impact the industry’s capacity to fulfill its hiring requirements. But there were also common themes—for instance, the aging workforce and misperceptions of the industry among youth. MiHR’s forecasts also show whether the hiring pressure is mainly due to industry expansion or from an impending need to replace existing workers. Across all regions, an aging workforce means that the industry will soon be replacing a significant number of experienced workers—even before considering industry expansion. Therefore, attracting younger workers, retaining mature workers and implementing mentorship programs should be priorities to begin to mitigate the cost of replacing the retiring workforce. The occupational forecasts also enable industry and education stakeholders to plan ahead for the required skills that workers will need to take these jobs. So, we now know that the need for workers in Ontario is approximately 59,000 over the next decade; but how many workers can the region hope to attract? In addition to the demands from the industry, the pressure to find skilled workers also depends on the size and quality of the labour pool, and this is further compounded as mining employers across northern Ontario often compete for the same talent. MiHR’s forecast for available talent projects that Ontario’s mining industry as a whole will attract approximately 14,900 new entrants to the labour market for 66 key occupations over the next 10 years. While this number does not directly compare with the industry-wide hiring requirements forecast for all occupations, the forecast of 59,000 does strongly hint at the pressure that will be felt by the region. The next step would then be to better understand mobility of workers in the regions and identify where the available talent falls short of the hiring requirements. This will improve strategies and planning for labour market pressures moving forward. To read these reports in their entirety, please visit www.mihr.ca/en/publications or email research@mihr.ca. About the Author: Jamie Wolcott is an economist with the Mining Industry Human Resources Council. Fall 2013

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From Mars to Earth

How Martian technology can assist in mining and exploration activities By Jyoti Grewal, Technical Consultant – Northern ANI Is there life on Mars? This is a question that fascinates scientists and geologists all over the world. There are many similarities between Mars and Earth and by studying the surface morphology, chemical makeup, lithology, and geology of Mars, we may begin to understand how our two planets turned out so differently. The evidence of life or prebiotic chemistry can be analyzed by identifying rock types and their chemistry. Scientists have relied on robots and the rovers to go to Mars in order to gather meaningful data. The rovers carried a number of scientific instruments to analyze rocks including X-ray fluorescence (XRF) and X-ray diffraction (XRD) analyzers which measure elemental composition and mineralogy, respectively. To be able to go to Mars, these analyzers had to be portable and accurate. The Mars Science Laboratory (MSL) Rover chose InXitu’s portable rock and mineral analyzer to study the geology and environment of selected areas. The commercial version of the CheMin is the Olympus Terra XRD. These modern-day instruments can also help with mining, exploration and environmental activities back on Earth and with a much smaller budget. Initially conceived to perform chemical and mineralogical testing for NASA’s MSL mission, Olympus’s Terra™ is the first truly portable XRD system designed specifically for rock and mineral analysis. It is a rugged, fully portable field instrument that harnesses advanced dual-XRD/XRF technology and renders it for earthbound applications. The conventional XRF/XRD analyzers were too large and by combining both Olympus’s and NASA’s innovation, the Terra brings to life a new way of performing XRD and XRF measurements. The unit’s patented sample-handling system minimizes sample preparation time and achieves accuracy in peak identification, previously only available using laboratorybased systems. XRD data from the Terra can be readily analyzed using the software of a laboratory XRD instrument, or thirdparty applications. Utilizing software embedded in the unit itself, the user accesses the operating system through a wireless connection, allowing for a wide degree of flexibility in controlling the instrument and subsequent data handling. Available phase identification pattern-matching software provides a complete analysis using either publicly available diffraction pattern databases or common commercially available databases. Due to its unique powder-handling system, nonmechanical goniometers, and lack of complicated moving parts, the Terra is extremely well-suited for those applications where field portability and/or ease-of-use are an issue. 8

Ontario Mineral Exploration Review

Multi-analysis Benchtop XRD/XRF. Quick scan and minimal sample prep.

Along with quantitative mineralogy, another essential data set that is highly beneficial to the mining industry is multi-element compositional data. The Olympus Delta Handheld XRF Analyzer provides fast, non-destructive elemental analysis. It can be used in the field for immediate results which determines the next course of action. The Delta brings the power and flexibility of handheld XRF spectrometry to the field. Ruggedized and ultraportable, this fast technology provides accelerated testing times, allowing for hundreds more tests to be conducted per day with analytical confidence. The Olympus handheld XRFs are being used worldwide in mining and exploration projects. “We have been using our DELTA portable XRFs to rapidly collect multi-element data from drill core, RC chips and soils in the field and laboratory. These tools are being used in research and development projects to assess 3D spatial variations of geochemistry in large mineral systems (Au, U, Cu) that will effectively aid exploration targeting and better define locations for detailed sampling and further analysis. This technology has matured to the point that it can be effectively implemented in research projects as a front-line tool,” says Dr. James Cleverley, senior geo-


chemist at CSIRO Minerals Down Under Research Flagship who has used Olympus’s portable XRF analyzers to obtain quick and reliable results. The Delta’s real overall value is to get large and inexpensive data sets and make decisions in real-time with minimal reliance on off-site laboratory testing. In reference to the value portable XRF can bring to mineral exploration projects, a XRF user in Africa remarked, “If you are exploring for base metals and not using portable XRF, you are not doing the right thing by your shareholders.” With Olympus’s expertise in XRF, they were able to combine both XRF and XRD to introduce the BTX Profiler. The BTX Profiler carries on the revolutionary XRD technology employed in NASA’s “Curiosity” Rover. It combines with the highly acclaimed, award winning Earth-bound technology employed in Olympus’s analytical XRD and XRF instruments. Building on NASA and Olympus patents, the BTX Profiler is a leap forward in the technology of combined XRD and XRF analysis. The BTX Profiler provides comprehensive compositional materials analysis at both the structural and elemental levels. This multi-sample analyzer, which is able to analyze 20 samples simultaneously, is the only instrument on the market that will give you both qualitative and quantitative XRF and XRD data. The BTX Profiler, with its combined XRD and XRF technologies, affords economies of operational costs, space, and time with a seamless integration of data and results. Another popular field device is ASD’s TerraSpec mineral analyzer. The TerraSpec uses near infrared (NIR) spectroscopy for

Terra Portable XRD for mineralogy. Minimal sample prep allows for fast in-field analysis.

rapid, non-destructive identification of minerals. Used on outcrop, drill core, RC chips or powders, the TerraSpec assists the field geologist in identifying alteration mineralogy for faster, on-site delineation of mineral deposits. The Terra Spec will allow you to identify subtle changes in mineral chemistry (white micas, chlorites), providing enhanced vectoring capabilities such as mentioned by Barrick in 2007. In producing mines, the TerraSpec assists mine geologists in quantifying percentages of problem minerals like clays and talc that can affect the leaching

Fall 2013

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Delta Handheld XRF for on-site analysis of soils, cores, and cuttings in any weather condition.

Delta Handheld XRF. Fast, decisive results for mining exploration, grade control, processing and environmental management.

or floatation process and alter ore recovery. You can easily convert measured data into actionable information to help optimize processes or improve research. Some of these technologies that were invented for Mars have resulted in many applications on Earth. These compact and portable

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analyzers are being used in applications such as oil and gas, mining and exploration, among other uses. XRF, XRD and NIR are all technologies that are beneficial to the mining industry. These technologies not only save time and money but also give real-time quantitative and qualitative data with minimal sample preparation. The large inexpensive datasets gathered during an on-site analysis make possible a large potential reduction in dollars spent on lab tests while providing immediate information for on-site decision-making in advance of the lab. This is a key component in shortening the exploration timeline and condensing field seasons, making the most of budgets and tight exploration schedules. “We were able to save $900,000,� says Darren Holden, managing director of ABM Resources. ABM Resources used two portable XRFs during their two-year gold-copper project in Australia. In 2011, they collected 40,000 samples and tested them all with their Olympus XRF analyzers. This allowed them to prescreen the samples and therefore, they only needed to send 10,000 samples to the lab to analyze with ICP-MS. By eliminating nonviable targets, drilling and prospecting can be focused on the most favourable areas, resulting in more rapid prioritization and substantial cost-savings.

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Ontario Mineral Exploration Review


Terra Spec 4 Mineral Analyzer optimizes mining exploration and production with real-time mineral analysis.

Northern ANI paired up with only the best technology companies to bring innovative, intuitive, field durable, high-performance analytical instruments to identify any element, any compound and any material whether it is in the lab, in the field or on Mars. Juniors and majors alike are experiencing the significant benefits of XRF, XRD and NIR. For more information and to learn how XRF, XRD and NIR are being utilized and can apply to your projects, please visit www.northernani.com. Northern ANI is an authorized distributor for ASD and Olympus, worldwide leaders in scientific equipment. Northern ANI brings a superior suite of analyzers to market that provides qualitative and quantitative material characterization for detection, identification, quality control, process control, regulatory compliance, research and development for numerous applications including metallurgy and geochemistry. Northern ANI also provides comprehensive training, application development, SOP and method creation, QA/QC controls and advanced geochemical consulting. This allows Northern ANI to provide not only the best analytical tools, but also project and application-specific knowledge which bring a total economic solution to the mining, exploration and environmental market. No other organization pairs top technology with top industry expertise in a total package. For further information, please contact: Jyoti Grewal, B.Sc., Technical Consultant, Northern ANI Tel: (647) 927-2331 Jyoti@northernani.com Fall 2013

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Health and safety enforcement in mining operations By Madeleine Loewenberg, Associate – Norton Rose Fulbright The Occupational Health and Safety Act (OHSA) imposes a number of obligations on mine owners, operators, managers and supervisors, as well as officers and directors of mining companies. Being unaware of those obligations may result in prosecution by the Ontario Ministry of Labour (MOL). General and Specific Obligations The OHSA imposes general and specific duties on various workplace parties (including those in the mining industry) in the performance of work. For example, the legislation requires employers and supervisors to take “every precaution reasonable in the circumstances for the protection of a worker”. Among the general obligations imposed on workers is the duty to “work in compliance with the provisions of [the] Act and the regulations”. Officers and directors of a company must take “all reasonable care” to ensure that the company complies with the legislation, any orders or requirements written by MOL inspectors or directors, and any orders written by the Minister of Labour. In addition to the general duties that are imposed, the OHSA contains specific provisions applying to surface and underground mines and mining plants. More specific provisions, such as those contained in Ontario Regulation 854, Mines and Mining Plants (Regulation 854) are comprehensive and far-reaching. Regulation 854 regulates, among other matters relating to health and safety, the minimum age of workers in a mine and the number of hours that mine employees are permitted to work, required training programs, fire protection obligations, the manner by which haulage is to be 12

Ontario Mineral Exploration Review

carried out, the storage and use of explosives in a mine, the use of haulageways and landing cages, and the installation of electrical equipment. Two provisions of Regulation 854 provide an illustration of the reach and scope of these obligations. 112. A haulageway used by motor vehicles, other than motor vehicles running on rails, shall, (a) except where pedestrian traffic is effectively prevented, be at least 1.5 metres wider than the maximum width of a motor vehicle using the haulageway; and (b) where it is regularly used by pedestrians and it is less than two metres wider than the maximum width of a motor vehicle using the haulageway, have safety stations as prescribed in section 114 at intervals not exceeding thirty metres. 212(1) Chairs used for landing a cage shall be, (a) arranged to fall clear and remain clear of the shaft compartment when the cage is lifted off the chairs; (b) operable only from outside the cage; and (c) so arranged as not to distort the cage. 212(2) Chairs fastened to shaft station posts shall be of a chain type. The MOL requires that mine operators make themselves aware of the hazards inherent in mining operations and mineral exploration and of the general and specific obligations placed upon them by the OHSA. Mine operators will also be expected to take all reasonable precautions to avoid breaches of the legislation and to ensure the health and safety of those working in and around the mine.

“All Reasonable Precautions” Taking all reasonable precautions to prevent injuries or accidents imposes a high degree of responsibility on the workplace parties to proactively identify and address potential workplace hazards. General diligence with respect to health and safety matters, or reacting to health and safety incidents after they occur, will not suffice. The expectation of the MOL will be that a careful analysis of the specific hazards that may arise in the performance of work has been conducted; that measures were put into place to reduce or eliminate the hazards identified; that workers were properly trained and supervised with respect to the potential hazards; that the health and safety program in place addressed the hazards identified; that corrective measures were implemented to correct or remediate unsafe actions or workplace conditions; and, where a specific measure is set out in the applicable health and safety legislation, that it is being followed. For an employer, at a minimum, it will be necessary to prove the existence of a written health and safety program that addresses the hazards inherent in the work, and that the program was strictly adhered to. Among the other factors considered by a court in considering a due diligence defence are foreseeability of risk, training, supervision, and the employer’s general attitude about health and safety. Enforcement The MOL enforces the OHSA by a number of methods. One such method is the use of “blitzes” pursuant to the province’s Safe at Work Ontario compliance initiative. This initiative has seen monthly, targeted inspections of workplaces in key economic sectors


of the province since June 2008. Targeted inspections of mines and mining plants occurred in July and August, 2013. Another series of inspections related to ‘ground control’ is taking place this month. A further series of inspections related to ‘locking and tagging in mine hoisting plants’ will take place in January and February, 2014. In addition, the OHSA provides inspectors employed by the MOL with broad powers to inspect provincially regulated workplaces for compliance with the legislation. These powers may be exercised at any time, whether or not pursuant to a blitz, an anonymous complaint, or in response to a workplace accident. The powers of a MOL inspector include the ability to: 1. Enter any workplace at any time without prior notice or a search warrant; 2. Take any machine, device, article or thing from the workplace; 3. Require the production of any written documents or drawings; 4. Take copies of any written document or drawings; 5. Test machinery and equipment or to require the employer to pay for an expert to test machinery or equipment; and 6. Conduct private interviews of workers and others in the workplace without the right to legal counsel. Written Orders directing the employer (among others) to remedy unsafe conditions observed by the MOL are likely to follow an inspection. Whether or not the Order is satisfactorily complied with, the MOL may institute a quasi-criminal prosecution in relation to the issues raised by the Order. The most severe method of enforcement is prosecution. To be found to have failed to comply with the OHSA after a trial can result in severe penalties against an individual or a corporation. Individuals convicted of an offence under the OHSA are subject to maximum fines of up to $25,000 and/or 12 months in prison for each charge upon which a conviction is registered. A corporate accused faces a maximum fine of up to $500,000 for each charge upon which a conviction is registered. Any monetary penalty of more than $1,000 is subject to a 25 per cent victim fine surcharge. It is therefore exceedingly important to be aware of the statutory obligations imposed by the OHSA and, for mine operators, Regulation 854.

Ms. Loewenberg often assists clients in developing and implementing proactive workplace policies and initiatives designed to avoid conflict in the workplace, minimize employer liabilities and comply with health and safety, human rights and employment standards legislation. In addition, she has written and spoken extensively on issues related to the workplace, having been published and quoted in the Law Times, Canadian Employment Law Today, the Workplace News, the Canadian HR Reporter, the Canadian Safety Reporter and the Mercer CCH Reports. Madeleine Loewenberg, Associate, Norton Rose Fulbright Toronto (Royal Bank Plaza), Canada Tel: 416-216-3932 Email: madeleine.loewenberg@ nortonrosefulbright.com

Now, more than ever, owners and operators of mines and mining plants must make themselves aware of the duties and responsibilities that may apply to their operations and to retain qualified and experienced consultants to ensure compliance with the OHSA. About the Author: Madeleine Loewenberg practises all aspects of employment and labour law on behalf of employers in Ontario. Ms. Loewenberg has extensive experience representing clients involved in occupational health and safety, employment standards, wrongful dismissal, human rights, workplace safety and insurance board, grievance arbitration, and labour board proceedings. During the course of her practice, she has appeared on litigation matters before a number of Ontario courts, tribunals, boards of arbitration and arbitrators on behalf of clients.

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Kirkland Lake Gold completes hoisting increase; ore production to increase quarterly Kirkland Lake Gold Inc. is an operating and exploration gold company located in Kirkland Lake, Ontario, in the Southern Abitibi gold belt. In 2001, Kirkland Lake Gold acquired 13,000 acres of five contiguous formerly producing gold mines, which had historically produced 21 million ounces of gold grading 15.1 grams per ton (0.44 ounces per ton) primarily from the Main/’04 Break system. The current focus is on expanding gold production from the Main/’04 Break and a new discovery area, the South Mine Complex (SMC). When the camp was bought in 2002 by founders Harry Dobson and Brian Hinchcliffe, the $5-million purchase price included a significant amount of infrastructure, including a deep four-compartment shaft. Taking advantage of an empty com14

Ontario Mineral Exploration Review

partment in this shaft, Kirkland Lake Gold achieved a significant milestone in 2013 by more than doubling its hoisting capacity with the installation of personnel cages, and replacing the 10-ton skips with larger 12.5-ton skips. Prior to the completion of this project, just three compartments were in operation and had to move people, materials, equipment, and rock. As a result, hoisting rock was limited to just eight hours per day, 13 skips per hour, which translated to 1,000 tons per day hoisting capacity. The dedicated personnel cage enabled rock hoisting to move to 14 hours per day, which increased hoisting capacity to 1,800 tons per day in the interim. The installation of the larger skips further increased total capacity to 2,300 tons per day. A record hoisting day of 2,800 tons per day

was achieved in the summer of 2013. Kirkland Lake Gold is also working to improve the speeds within the two production hoists for a total hoisting capacity of 3,200 tons per day, expected next year. Kirkland Lake’s production profile is already benefiting from the hoisting capacity increase. Daily ore tonnages for the six months since the personnel cage installation have ranged from 1,000 to 1,063 tons per day, up from the 400 to 900 tons per day realized in past years. In addition to the ore production increase, the upgraded hoist reaps benefits across the board in terms of mine efficiency and productivity. Kirkland Lake Gold can now accelerate development of stopes in the higher-grade SMC, move equipment without interruption to production activi-


ties, and move shift crews into the mine in one hour, versus two. The hoisting project was part of a threephase, five-year expansion project the company commenced in January 2009, with the ultimate goal being to increase annual production rates to over 200,000 ounces and lower its operating costs. The first phase was completed successfully, on time and budget in summer 2010 and increased ore production to 700 to 900 tons per day. As a result, gold production during the Kirkland Lake Gold’s fiscal years 2011 and 2012 were 81,860 ounces and 100,275 ounces, respectively. Kirkland Lake Gold turned a net profit those years of $20.1 million in 2011 and $42.3 million 2012, and reinvested it toward the expansion capital program. Kirkland Lake Gold’s last fiscal year (2013) was concurrent with the hoisting project, which resulted in 91,518 ounces produced. Production was impacted by shutdowns necessary to complete the hoisting project, which led to fewer ounces for that fiscal year. Kirkland Lake Gold’s last planned shutdown of the hoist for expansion work was completed earlier this year. The major project of the second phase of expansion was the hoisting project; now that it is completed, Kirkland Lake Gold expects to reach its Phase 2 production rates of 1,400 to 1,600 tons per day by the third quarter of its current fiscal year 2014 (December 2013, January 2014). With most of the expansion programs completed, 2014 is poised to be a pivotal year for Kirkland Lake Gold. Ore production will ratchet up each quarter over the next 10 to 12 months to reach the ultimate Phase 3 production capacity of 2,200 tons per day. Once economies-of-scale are realized, combined with labour-productivity improvements and increased mine efficiencies, operating costs are expected to fall to less than $250 per ton. Additional capital savings to Kirkland Lake Gold come in the form of completing the expansion capital spend. Of the $95 million required to reach the 2,200 tons per day rate, $89 million has been spent. Going forward, capital spending will decrease substantially. At current gold prices, Kirkland Lake Gold expects to be free cash-flow positive within the first six months of 2014. As of December 31st, 2012, the reserves and resources on the South Mine Complex include 1,541,000 tons at a grade of 0.52 ounces of gold per ton (opt) for 808,000 Fall 2013

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KL GOLD  CAMP  CONSOLIDATED  UNDER  ONE  OWNER   EXISTING  INFRASTRUCTURE  SIGNIFICANTLY  LOWERS  CAPEX    

TSX /  AIM:  KGI  

PRODUCTION HOIST  UPGRADE  COMPLETE   RECORD  HOISTING  DAY  OF  2,800  TPD  IN  Q1   ONE YEAR AGO

FINAL

CURRENT

Cage

Cage

Cage

Skip 10t.  

Skip 10t.  

Cage

Cage

Cage

Cage

Cage

Skip 12.5t.  

Skip 12.5t.  

Cage

Cage

1,000 tpd

Cage

Cage

Cage

Skip 12.5t.  

Skip 12.5t.  

Cage

Cage

Cage

Cage

–  8 hours/day –  13 skips/hour –  10 tons/skip

Cage

–  14 hours/day –  13 skips/hour –  12.5 tons/skip

–  16 hours/day 2,275 tpd –  16 skips/hour –  12.5 tons/skip TSX /  AIM:  KGI  

16

Ontario Mineral Exploration Review

3,200 tpd

1

ounces in the proven and probable reserve category; 1,458,000 tons at a grade of 0.66 opt for 967,000 ounces in the measured and indicated resource category, with an additional 1,223,000 tons at a grade of 0.67 opt for 824,000 ounces. Mine-wide, including the South Mine Complex, the proven and probable reserves increase to 3,230,000 tons at a grade of 0.45 opt for 1,454,000 ounces; measured and indicated resources increase to 3,813,000 tons at 0.49 opt for 1,871,000 ounces, with an inferred resource of 2,238,000 tons at a grade of 0.52 opt for 1,157,000 ounces. Current exploration plans include extending the South Mine Complex to depth and to the east utilizing electric drills on the Macassa 5,300-foot level. An aggressive surface exploration program was initiated one year ago, aimed at defining near-surface mineralization in areas which had seen little exploration in the past.

1


XPS successfully addresses three unique challenges in metallurgical testing

Flowsheet development for Ivanplat’s Kamoa copper project XPS is at the forefront of High Confidence Flotation Testing (HCFT) technology, developing techniques that have helped reduce project scale-up risk with our clients. Recent work done by XPS on Ivanplats’s Kamoa project integrated minimum sample mass and safety-line models into common HCFT practice, along with new sampling models for drill core, to successfully address the prob-lem of limited samples. XPS worked with Ivanplats to gather a truly representative ore sample that was studied using our installed Electron Microprobe and FEG QEMSCAN to produce highly detailed mineralogical information from which critical metallurgical pro-cessing implications were formulated.

A new approach was used on the development of the flowsheet at Kamoa where the initial grinding strategy used the mineralogical data, saving both time and sample material by engaging appropriate grinds in the first tests. This avoided the typical practice of hunting test-by-test for the ideal grind. The XPS Mixed Collector system then selected candidate collectors from the data, resulting in accurate, rapid flowsheet development and delivering better grades and recoveries. The continued use of HCFT produced tighter metal balances as a result of the improved sampling and subsampling practice. The hypogene ore carried a range of copper sulphides including chalcopyrite, born-

ite and chalcocite with minor covellite, occurring at a very small mean grain size of seven to 27 microns. Because it would be uneconomical to grind ore down to these sizes to deliver good liberation before flotation, a strategy to float both middling and liberated copper sulphides in a staged grind format was formulated. This was compared to a conventional approach and produced much improved grade and recovery. A mixed collector suite optimized for flotation of middling particles was essential for the successful flotation of this range of sulphides. The optimized collector suite proved to be successful at floating liberated and middling particles to rougher and scavenger concentrates from the primary circuit. Fall 2013

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The process resulted in a milestone flowsheet producing improved concentrate grades and recoveries that warranted the launch of the project prefeasibility study less than one year from initial sample selection and delivery. Successful Chromite Ring of Fire Smelting Campaign XPS successfully conducted a pilot chromite smelting campaign using its state-ofthe-art 350 kW DC Electric Arc Furnace for KWG resources on their Ring of Fire ore deposit in northern Ontario. The campaign successfully demonstrated two critical pilot testwork goals. First, that high recovery and consistent grade during a continuous run of the ore was achievable and comparable to initial short duration tests (also conducted at XPS); and second, that tests on larger samples performed using larger-scale equipment was consistent with expectations. Making optimum use of the limited amount of sample material was of primary concern to KWG. Results were announced by KWG at the conclusion of the continuous smelting campaign. “The results con18

Ontario Mineral Exploration Review

firmed that very high chromium recoveries averaging 95 per cent can be achieved, producing ferrochrome alloy grades of 60 to 62 per cent chromium,” states Moe Lavigne, KWG’s VP of exploration and development. The test demonstrated that Black Horse massive chromite can be efficiently smelted in a DC furnace using moderate flux and reductant additions and manageable operating temperatures. “These are the highest grade ferrochrome results we’ve seen from Ring of Fire chromites,” says Lavigne. Unique Advanced Reserve and Resource Modeling Recently, XPS had the opportunity to work closely with a client to support geological modeling and ore reserve/resource estimation of a complex footwall ore body in northern Ontario. This particular ore region is a narrow-vein mining environment where massive copper-rich veins are erratic and often very challenging to model and interpret. This type of geological modeling represents an expansion of services from typical mineralogical analysis and geometallurgical support projects and is typically carried out by XPS geoscientists.

XPS relied on its sound analytical principles and extensive experience for detailed process review, process improvement and project execution in the field. The challenge of the project was to take a historical polygonal reserve/resource estimate and help transform it into a dynamic 3D working model that could be more readily used for mine planning, grade control, forecasting and longer-term strategic planning. Working closely with site geologists and senior personnel, XPS reviewed existing methodologies and interpretations to complete an updated ore reserve/resource estimate. The diversity and challenge of this effort was typical of what our clients bring to XPS. About XPS XPS is a licensed metallurgical engineering, technology and test services business offering industry leading expertise in orebody characterisation, flowsheet development, operational support, growth initiatives, and asset integrity management for most commodi-ties including gold, nickel, copper, zinc, PGEs, rare earth and industrial minerals.


Within our 70,000-square-foot technology centre, more than 50 industry proven engineers and technicians continue to develop products and solutions in response to operational needs of our customers. XPS services to clients include plant support, improving operational efficiency, and greenfield/brownfield project development through five distinct but integrated business groups representing the following key disciplines: Process Mineralogy – Services include Geomet Unit definition and sampling, ore characterisation studies, flowsheet development and optimization, including batch and continuous mini-pilot planttesting, process engineering consulting, and grinding process modeling. Extractive Metallurgy – Hydrometallurgical and pyrometallurgical expertise with a fully equipped laboratory to address metallurgical needs through onsite plant support, bench or pilot-scale test work, flowsheet and process design, process/simulation modeling and venture analysis studies.

Process Control – Advanced expertise in process control for mining, mineral and metallurgical processes around the world. Our focus is “best practices” process control to improve plant performance. Materials Technology – Dedicated to improving the reliability of critical equipment using proven materials engineering practices at essential stages of design, procurement and operation. We have extensive experi-

ence at mine sites, concentrators, smelters, refineries, leaching plants and acid plants. Plant Support – On-site technical assistance from a group of experienced metallurgists is available to assist with commissioning, process optimization, process review and de-bottlenecking, project management, troubleshooting, concentrate marketing development, plant surveys, sampling and modeling.

DECISIVE…DYNAMIC…DIFFERENT… Process Control

Process Mineralogy

Plant Support

Process Optimization, Controller & Control Solutions

Quantitative Mineralogy, Mineral Processing, Sampling & Statistics

Support Services in Start-up & Commissioning

XPS is a licensed metallurgical consulting, technology and test services business. We offer industry leading expertise in: •  Orebody characterisation •  Metallugical flowsheet development •  Operational support •  Growth initiatives •  Asset integrity management for most commodities including gold, nickel, copper, zinc, PGEs, rare earth and industrial minerals.

Modeling, Precious / Base Metals Piloting & Test Work

Materials Selection & Equipment Failure Analysis & Prevention

Extractive Metallurgy

Materials Technology

XPS Consulting & Testwork Services

6 Edison Road, Falconbridge, Ontario, Canada P0M 1S0

+1 705 699 3400 info@xps.ca www.xps.ca

Fall 2013

19


Photos courtesy of MacDonald Mines Ltd.

Overcoming difficulties as the ‘Ring of Fire’ advances toward production Without doubt, mining has played a primary role in the history of the province of Ontario. Previous exploration and development resulted in numerous highly productive mines which have brought wealth, jobs and opportunities to tens of thousands over the past century or more. Cities and towns sprung up in the wilderness and entire new industries have been born as a result of mining. And now, another relatively new region with virtually unlimited potential has become part of the Ontario mining picture. We are referring to the metals exploration area known as the “Ring of Fire” (ROF or Ring). The Ring is located approximately 500 kilometres north of Thunder Bay in a lightly populated area of northern Ontario, west of James Bay and north of CN’s main east-west rail line through Nakina. Significantly, it is an area with limited to 20

Ontario Mineral Exploration Review

nonexistent infrastructure as no road or rail transportation currently exists into the ROF. Quite surprisingly, the discovery of the region’s potential immense mineral wealth, particularly chromite, came about purely by accident in 2002 when DeBeers Canada was searching for diamonds. Word of pos-

By Leonard Melman

sible valuable ore bodies gradually spread, but the true exploration frenzy was ignited in 2007 with the publication of assay results by Noront Industries Ltd. at its Double Eagle Project. Extensive exploration work ensued and by June 2008, Noront was able to publish a “Technical Report and Resource Estimate” which showed in-


Ring of Fire map courtesy of Noront Resources Ltd.

dicated resources of 79.2 million pounds Ni; 47.6 million pounds Cu; 9,100 ounces Au; 66,200 ounces Pl; 230,500 ounces Pd and 224,100 ounces Ag. Within a short while, 35 companies or prospectors had filed claims in the region; but it was the development of the Black Thor Project’s chromite ore body by Cliffs Natural Resources subsequent to their acquiring that property from Freewest Resources and Spider Resources for $240 million in 2010 that truly illustrated the huge wealth-generating possibilities of the ROF. Besides Noront and Cliffs, other mining companies active in the ROF include well-known names such as KWG Resources, Probe Mines, Macdonald Mines Expl., Slam Exploration Ltd., Temex Resources and Trillium North Minerals. Chromite itself is used primarily as an alloy in the production of stainless steel. Four countries currently account for 80 per cent of world chromite production, includ-

ing distant nations such as South Africa, Kazakhstan, Turkey, and India while major consumers include China at 50 per cent of supply and the U.S.A. at 15 per cent. To date, most ROF exploration and development has been confined to a 12- by 20-kilometre zone lying inside its 5,000-square-kilometre overall area; within that relatively small zone, total mineral values variously estimated at between $50 billion and $100 billion have been discovered. Several estimates point out that if the ore-bodies are to be brought into full production, the expenditure of several billion dollars for refineries, production facilities, and mining equipment would occur and that many hundreds of high-paying jobs would likely become available. However, serious moves toward ultimate production have been impeded in recent years. These difficulties have fallen within three categories: infrastructure, environment, and aboriginal.

In terms of developing sufficient infrastructure to fully bring the ROF’s potentially huge mineral resources into production, enormous expenditures would likely be encountered for road or rail construction plus power generation on the order of approximately 300 Megawatts – greater than any existing electricity customer in Ontario. Expenditures for infrastructure advancement on the required scales are believed to be beyond the ability of any private corporation and so both the Ontario and federal governments have set up agencies to resolve this difficulty. The provincial government has recently set up a Ring of Fire Secretariat to advance mining developments under the leadership of Christine Kaszycki. In a recent statement to the press, she noted that if the ROF can be brought into production, “...The entire province will feel the positive economic impact, especially the north with its mining consulting and equipment Fall 2013

21


industries, as well as its supply and service sectors. We have to get it

animals such as bears, wolves, caribou and so forth; groundwater

right, especially for the Aboriginal communities...�

contamination and, in general, the degradation of a presently pris-

As might have been expected, environmental groups appear to

tine region on a scale comparable to the tar sands of Alberta.

be united against developing the ROF. In a recent edition in early

Ironically, advocates of fully developing productive mines point

November 2013, the influential Toronto Star newspaper asked for

out that enterprises on such an enormous scale have the poten-

comments from their readership; among the responses, readers

tial to advance the general economic structure of presently cash-

objected to the development because it could lead to dewatering

strapped Ontario in a manner similar to the economic contribu-

of huge areas of peat bog; impairment of the natural habitat for

tion of the tar sands to Alberta. Aboriginal communities appear to be taking a moderate stance, whereby they would appreciate the economic and job-training benefits which would accrue from mining in their territories, but they are also deeply concerned about preserving their natural environment. To date, several of the leading companies have expressed disenchantment with the slow pace of negotiations between industry, government and aboriginals and a few projects have been suspended, at least temporarily. However, there is general agreement that given the potential positive economic impacts related to ROF development, these conflicting problems will be resolved. We might add: the sooner, the better.

22

Ontario Mineral Exploration Review


Technical innovations in geochemistry By Matthew Leybourne, Senior Geochemist, ALS Minerals, Vancouverm At ALS Geochemistry, we are continuously striving to improve methods and develop innovative new techniques. Technical innovation is one of the cornerstones of the ALS Group. In the current economic climate, ALS Geochemistry is continuing to develop and provide tools to add value to our analytical services for our clients. To that end, we have further developed and extended our innovative core visualization tool, CoreViewerTM. CoreViewerTM enables the pairing of quantitative analytical data with real-depth visualization using a high-resolution digital reconstruction of the entire core. The core library and associated data is accessible through ALS WebtrieveTM and is archived in perpetuity and with high-level security protocols. First, high-resolution digital images of individual core boxes are reconstructed into a single digital “core strip” image. Depth intervals in which there are missing core or non-recovery of core are preserved in the final strip view. The process of conversion from core box to strip means that every pixel of the core is accurately depth-registered. Once the entire core photo suite is uploaded, all geochemical data associated with the core are linked to the photographs by depth. CoreViewerTM is then used to visualize the geochemical data in conjunction with the digital core strip. Downhole geophysical data can also be uploaded and integrated with the geochemical data. CoreViewerTM is being extended to provide the ability to visualize and integrate hyperspectral data. Spectral mineralogy derived from hand-held TerraSpec®-type devices, HyLoggerTM scanners, and core scanners can be incorporated into CoreViewerTM. Additional data that

can be extracted from individual spectra (e.g., the wavelength of the AlOH adsorption feature, as an indicator of changes in clay mineral composition) can be visualized with geochemical data and core photography. In addition to visualization of data stored on ALS servers, CoreViewerTM offers collaboration with a number of 3D mine-modeling software packages, permitting rapid connection of deposit models with core photographs, geochemical assay data, geophysical data and spectral mineralogy data. Thus, CoreViewerTM offers our clients a simple, rapid, yet highly powerful tool for the integration and visualization of their geochemical, geophysical and spectral data, along with high-resolution photography. This tool is available in real-time over the web, allowing secure access and collaborative data analysis anywhere in the world, at any time. The image shown here shows a 3D model of an ore deposit. When the user selects an interval on an individual drill hole in the model, a CoreViewerTM window opens at the relevant interval, with the strip at the bottom representing the reconstructed core strip imagery for the entire hole, and the image at the top showing the zoomed portion of the hole being investigated. In this example, the green and blue bars represent hyperspectral data of Fe minerals (hematite and goethite). The geochemical data (orange bars) spans the entire core, whereas the hyperspectral mineralogy is zoomed to the same scale as the upperzoomed core image.

1. Click on the drill hole you want to view. Drill hole

2. Your selection opens in a new browser window.

Fall 2013

23


‘Off-site construction’ for the mining industry – getting started By Laurie Robert

There is no doubt that a renewed awareness of “off-site construction” is climbing to an all-time high. Emerging project profiles, academic research studies, and reports such as Prefabrication and Modularization by McGraw Hill Construction, combined with the media hype surrounding high-profile, high-rise modular buildings going up in NYC or China, have piqued the interest of architects, owners, construction managers, and general contractors. And while you can likely find many articles written that explain why this is so, there are fewer articles written that explain how to work with off-site construction techniques to realize the best possible outcome. For mining operations, building a complete structure off-site under controlled conditions has many advantages. Construction activity on-site is minimized, resulting in less disruption and better safety. The accelerated construction process generally has your building completed in about half the time of conventional methods, and building in a controlled plant environment means less downtime, a reliable workforce, better QA, and less waste. In order to get the most out of this alternative project-delivery method, however, you must understand how the process works and how it differs from on-site construction. Here are three basic pre-construction tips that could help you get started. 24

Ontario Mineral Exploration Review

1. Research and prequalify the industry The commercial modular construction industry is comprised of two primary sectors – re-locatable buildings and permanent buildings – and while some companies do both well, others have more preference or depth in one over the other. Permanent modular (offsite) construction is gaining an increased foothold in the construction industry today in many markets. For the mining industry, workforce housing (temporary or permanent) is a widely recognized and highly utilized modular building application. Additionally though, companies are looking to modular construction for a variety of surface structures such as operations centres, mine dry buildings and administration complexes that are built for extended life and durability using steel and concrete. Industrial mine site locations can present a myriad of logistical challenges not found on a typical commercial building site, such as remote locations, high levels of daily surface activity, restricted or timed site access, as well as stringent document control, Q&A and inspection test plans, and most importantly, very rigorous health and safety protocols. It is prudent to match your facility requirements and site logistics to companies with similar prior experiences, so initiating a vendor prequalification process ahead of your actual bid process could be beneficial.


FROM CONCEPT... TO COMPLETION

Xstrata Nickel Rim South Project – 60,000 sq. ft. Administration/Dry modular facility built off-site by NRB, LEED Gold certified.

Building off-site reduces on-site activity, improving safety. Sophistication, strength, speed and sustainability are the cornerstones of buildings by NRB. Designed to meet your exact needs from architectural expression to operational requirements, our advanced off-site building technology and project delivery method gives you the permanence and performance of conventional construction, but in half the time. Building your project off-site in our controlled plant environment results in better waste management, less downtime and improved quality during construction. When an NRB building

arrives at your site it is already up to 95% complete, significantly reducing on-site activity as well as vehicular traffic from material deliveries and workforce travel. This results in a cleaner, safer construction site with minimal disruption to the busy mining operation. NRB works closely with you from design through to occupancy, for almost any type of commercial, institutional or industrial building application.

To find out all your possibilities today, call 1-888-249-9194.

Web: www.nrb-inc.com Email: inquiries@nrb-inc.com NRB Inc. 115 South Service Road W., P.O. Box 129, Grimsby, Ontario L3M 4G3 NRB (USA) Inc. 440 Wenger Drive, Ephrata, PA 17522 Specializing in the Mining Industry with permanent Mine Dry Facilities, Operations Centres and Administrative Offices.

BU ILD O FF- SITE ... SIMPLIF Y YO U R CON S T RU C T ION

Fall 2013

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2. Commit to the concept; complete the design A successful modular project requires some advance collaborative planning to avoid pitfalls that can occur when attempting to convert a conventionally designed building project over to a modular project too late in the game. The design team should consult with or include a qualified modular contractor who can guide the design process and optimize the use of modularization. While permanent modular construction can meet most any requirements for aesthetics, building science, mechanical and electrical systems, life safety and life-cycle durability – there are certain conditions inherent to the elemental design principles that need to be considered. 1. The Module layout. Breaking the desired floor plan down into workable modules requires planning. The module layout is determined by creating the most logical and cost-efficient way to achieve the desired floor plan for the owner, while allowing for all outside influences that impact, or are impacted, by this design. Some examples include: • Foundations. The final module layout determines the final foundation design requirements by establishing all bearingpoint locations and their loads. • Transportation regulations. Each three-dimensional module must travel over roads from the plant to the final site location, and local transportation regulations (which can vary geographically) will govern the maximum length, width and height these pieces can travel. High volumetric spaces, such as mine-dry facilities with hanging locker basket systems, would require the modules be split both horizontally and vertically. • Site access. Notwithstanding the restrictions that may be imposed by transportation, the modules must also be able to move through the site location, and be craned on to the foundations. Fencing, gates, adjacent structures and other obstructions must be considered when establishing the final sizes and configurations of the modules, or when determining the extent of site work that may be necessary. • Mechanical/electrical Systems. Because overall height of the module is also dictated by transportation, often mechanical duct systems are designed to work within less ceiling space. BIM is an effective tool to assist with layouts and clash detection. • Modular mate lines. The objective is to complete as much of the building off-site as possible, up to 90 per cent is common. Therefore, when configuring the modular floor plan, it is best to avoid locating windows, doors and plumbing fixtures across modular splits if possible, in order to reduce on-site work. 26

Ontario Mineral Exploration Review

The module layout needs to be completed by the modular builder, with the input of other stakeholders in the event some minor changes are needed. The final Modular Key Plan, as it is commonly known, is then “frozen” and becomes an essential part of the structural design process. 2. Final Design and Approvals. When formulating the project schedule, establish a reasonable but finite time to get the final design, submittals and approvals completed to 100 per cent and stay with it. Unlike conventional construction, where the length of the project schedule may permit decisions or changes to be made during construction, once the modular project hits the plant floor, contemplated changes or change directives can adversely affect the flow of the construction process and the schedule. In order to gain the optimal advantage of the accelerated scheduling, the objective is to avoid discontinuance, so capturing the complete design intent and code requirements upstream is necessary. The modular builder may also ask for staged approvals that best fit their production schedule, particularly for items on the critical path such as structural steel, so be prepared to review and approve the shop drawings as they are submitted. 3. Define the scope of work. During the pre-bid or pre-construction phase, establish, agree on and communicate the project scope of work that will be carried out by the modular contractor and that which will be carried out by “others”, (usually the general contractor) on the site. Typically the modular contractor is responsible for the final modular design, fabrication, transportation and setting on the foundation, as well as completing the remaining installation finishes of architectural, mechanical and electrical elements within the building itself. The general contractor may be responsible for all site work including foundations and final service connections to the building once it is in place. These scope elements can vary by project and by site depending on the needs and resources of the owner and the contractors, but regardless of the split in work, a Scope of Work document should be created, clearly defining the roles and responsibilities of all the stakeholders before the project begins. These are only three basic “pre-construction” guidelines to consider when exploring the innovative possibilities in off-site construction available today. To become more familiar with methods and materials, contact an industry provider in your area, or contact NRB through our website at www.nrb-inc.com. About the author: Laurie Robert is vice-president of sales and marketing for NRB Inc. in Grimsby, Ontario.


Metals outlook: short term risky, long term more positive By Leonard Melmanm For most of man’s recorded history, the interpretation of metals pricing followed easily understandable supply/demand fundamentals. Demand was comprised of both civilian and military requirements and supply was delivered from ongoing mining operations. When demand outstripped supply, prices rose and vice versa. The only monetary implications resulted from the use of gold and silver as history’s most important coins. However, with the advent of the modern economic era from the onset of the 20th century, a new and potent ingredient has been added to our calculations; namely, the influence of economic policy on metals demand and supply. This evaluation, in turn, follows two directions: general economic stimulation, which tends to increase demand for base metals plus silver; and purely monetary considerations which have their greatest impact on gold. The fundamental demand outlook for the second-half of 2013, particularly for the base metals and silver, was somewhat mixed, to put things mildly. Some important areas of the world, particularly including the European Economic Community (EEC) are continuing to endure recessionary conditions and physical demands are therefore constant to even diminishing. The U.S.A. and Canada are enjoying at least a modicum of growth and demand is, therefore, slowly increasing while China and India continue to experience significant growth rates with demand factors still on the rise. Two industries that use enormous amounts of base metals are residential housing construction and auto construction; both are experiencing some level of resurgence going forward, with auto manufacturing looking particularly solid. The latter accounts for a substantial portion of the world’s demand for iron, nickel and copper while housing starts are also on the rise, accounting for additional copper, aluminum, nickel and zinc demand. These factors appear strong going into 2014. One area of particular recent interest is Rare Earth Elements (REE), where there is a remarkable conflict of information. The number of uses for these metals continues to increase and the number of products manufactured is on the rise, but thanks to nanotechnology, the quantity of metal used for each unit of production has been steadily diminishing, with one factor offsetting the other. There is also the interesting fact that many REEs are used in the manufacture of many environmentalist-advocated products such as giant windmills and solar reflective panels—thereby placing substantial demands on the one industry environmentalists select for their most virulent criticisms. When we look at precious metals, there are four of greatest importance that we watch: gold, silver, platinum and palladium. The last two, while having some monetary implications, are primar-

ily industrial metals with their strongest demand coming from the auto industry; their price movements, therefore, can frequently act as “proxies” for the auto manufacturing industry as a whole. As noted, auto manufacturing appears to have entered a period of at least moderate growth and we would anticipate that platinum and palladium will move moderately higher during the latter part of 2013. Gold and silver, however, react much more powerfully to governmental financial policies—but we note one major difference between the two. Demand for gold stems primarily from its historical role as money on Earth and the price of gold most often moves in a direction opposite from the citizenry’s confidence in the management of its economic affairs. When confidence in government policies is high, the price of gold is frequently mixed to negative—and vice versa. Demand for silver, which also has an impressive monetary history, also relates to economic and political fundamentals in a manner similar to gold; but in addition, enjoys a vastly more important industrial component as an impressive array of new industrial and manufacturing applications for silver are being continually discovered, and this helps to support silver’s long-term price structure. One other consideration must be pointed out. Virtually all of gold’s new supply comes from mines that predominantly produce gold, while silver’s supply comes from both primary silver mines plus an important additional quantity of silver produced as a byproduct from base metals mining, with copper mines being a featured supplier. Whether misplaced or not, at present the public seems to have developed a degree of confidence in Fed chairman Bernanke’s ability to direct policy in such a manner as to avoid crises, and this has been putting downward pressure on the price of gold. We would anticipate some continuance of this force, but at the same time we would also point out that long-term dislocations within the monetary structure are becoming increasingly visible and the public’s confidence could turn sharply negative at any time. Putting all of these cross-currents together, it appears that economic strength during the second-half of 2013, particularly including housing and auto manufacturing, will remain strong, placing some upward pressure on base metals prices and, to some extent, on silver’s price. At the same time, precious metals prices appear likely to remain within a fairly narrow configuration as offsetting forces work one against the other. Fall 2013

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Exploring exponential possibilities The mineral exploration sector has achieved remarkable success across Canada, identifying significant additional mineral resources and creating strong economic possibilities for the surrounding communities. Ontario best demonstrates its exploration success at the “Ring of Fire”, an example of mining and community initiatives at the heart of the western James Bay frontier. Exp Services Inc. (“exp”) is pleased to be working with the companies and communities that are part of this world-class discovery. As highlighted in the past issue of the Ontario Mineral Exploration Review, exp continues to work alongside exploration groups providing detailed surveying and geomatic services critical to natural resource development. This was the theme of our previous article described by Paul Quesnel (OLS, Timmins, Ontario) and represents only one of the many comprehensive disciplines that exp offers to exploration and the mining industry as the whole. What makes exp the success that it is? It’s our ability to integrate with clients and understand those unique relationships that are needed to solve problems. In keeping up with the growth of the resource sectors, exp contin-

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AUDITING | PERMITTING | TRAINING

FIELD SUPPORT | SPILL PRODUCTS 28

Ontario Mineral Exploration Review

ues to expand its resource capital by adding a dedicated mining group to the office matrix that is based across northern Ontario under the management of Kevin McKay, P. Eng., senior infrastructure manager. This mining group includes Samuele Renelli, P. Eng., in North Bay; Bob Allen in Timmins; and Greg Hunt, P. Eng., in Sudbury. Collectively, this group shares an extensive background in the resource field and complements our existing expertise in diverse mining sectors. For example, the exp team led by Demetri Georgiou, MA Sc., P. Eng., in Thunder Bay helped gold miner Premier Gold meet its geo-environmental requirements, and the hydrogeological and site reclamations issues at the former Kam Kotia copper mine were addressed by Andy Schell, P. Eng., of Barrie, and Perry Sarvas, P. Geo., in Sudbury. Exp is recognized for its contributions in multiple engineering disciplines with award-winning project success in the building, engineering and environmental fields and has over 3,400 staff in 100 offices across North America. The company has made a commitment to mining and to social welfare that will be a model for resource development on all its projects. Expertise in mining is a tradition at exp and our


staff provides the highest level of quality engineering to the exploration and mining industry, from initial evaluation of mine feasibility to postconstruction monitoring. Exp engineers have undertaken mining projects across Canada, including mine planning and mine management, rock mass failure analysis and ground support, overburden dewatering and stripping, mine layout, supervision of construction, mine audits, environmental impact assessment for government approval, tailings disposal, post-construction monitoring, reclamation and closure. Exp offers laboratory testing for rock and mining materials. State-ofthe-art modeling and design technologies are utilized to offer the widest range of technical field services: • Mine planning and management • Geological mapping • Rock monitoring, rock-bolt testing and roof control stability • Numerical stress analysis and mine modelling • Production drill blast consultation and monitoring • Rock mass and pillar strength classification • Soil and rock grouting • Grouting to stop major water inflows in mine and underground structures • Tailings disposal design; licensing applications to post-construction monitoring • Laboratory testing of rock samples and mine backfill • Mine-closure planning • Environmental permitting • First Nations involvement

Brigus Gold Mine, 2012.

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Technical analysis – a widely used tool for metals price evaluation By Leonard Melman Unquestionably, the entire world of metals mining is of considerable importance to the province of Ontario in general, and to the northern and western portions of the province in particular. It might truly be stated that many mining communities such as Timmins, Sudbury, Kapuskasing, Thunder Bay, Red Lake, Kirkland Lake and North Bay have either expanded or contracted based on the fortunes of metals mining. To a large extent, those fortunes are dependent upon the prices paid for metals production. During times of high and rising prices for important metals such as gold, silver and copper, industry investment expands, jobs are created, and rising exploration activities open the doors to developing the great mines of the future. During

times of declining metals prices, all of those factors diminish. Therefore, analysis of information relating to metals price movements is of great importance to the industry in particular and the provincial economy as well - and there are two general methods of price evaluation and forecasting. These are fundamental and technical. “Fundamental analysis” relates to factors which help evaluate supply and demand, both present and future. These might include new mining production, industrial usage, development of new products, diminished production from aging mines, the level of economic activity, etc. “Technical analysis” can be defined as determining price history and makSome data provided by CRB

Monthly Nearby Gold(CMX) Stats Nov 2013 O 1323.1 H 1327.3 L 1235.8 C 1244.1 Chart H 1920.8 L 101.0

$1,930.00

2000.0

1800.0

1600.0

1400.0

1200.0

$1,095.00 50% correction

1000.0

800.0

600.0

400.0

200.0

Bull Trend

$260.00

0.0 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 As of 20131122

http://www.mrci.com/ (541) 933-5340/(800) 927-7259

30

Ontario Mineral Exploration Review

Copyright © 1989-2013 Moore Research Center, Inc. All Rights Reserved

ing projections based on chart appearance resulting from actual movements of the underlying security or commodity. While some observers are highly skeptical regarding the validity of technical analysis, many investors, brokerage houses, and even government agencies often place considerable weight on charting input. One advantage of technical analysis is that charts provide records of actual human investment activities and those patterns provide us with a record of what was done, not merely what was said. Many books have been written relating to technical analysis and there are a multitude of variations on the general theme. Perhaps the most important such volume is Technical Analysis of Stock Trends by Robert D. Edwards and John Magee, which has gone through many new editions and printings through the decades. Many of the principles related to technical analysis are identified and expanded upon within this volume’s pages. As mentioned, chart analysis provides us with a visible history of where the metals under consideration have traded and for this purpose, I prefer long-term charts. In this particular article, we are using 40-year charts of gold, silver and copper that give us a record to help identify periods of industry expansion versus contraction. For gold (Au), most observers recall the vibrant bull market of 1976-80 when the yellow metal soared from barely $100 per ounce to over $800; it was a period when mining activity virtually exploded upward. This was followed by varying degrees of bearish activity for more than 20 years, a general period when the mining economy shrunk. However, beginning in 2001, gold embarked on a period of rising vitality – and


expanding exploration and development

Some data provided by CRB

activities – until the historic high at $1,930 per ounce was achieved in mid-2011, prior

Monthly Nearby Silver(CMX) Stats Nov 2013 O 2189.5 H 2207.5 L 1970.5 C 1986.2 Chart H 4982.0 L 295.6

5000.0

to a decline to present levels which stood close to $1,275 in mid-November 2013. Silver’s (Ag) path has copied that of gold

4500.0

4000.0

in terms of bull or bear market timing, although the magnitude of some of its moves has varied from gold from time to time;

3500.0

3000.0

however, we see a markedly different aspect to copper’s (Cu) chart, and it identifies one of charting’s principle adages, which is that

2500.0

2000.0

a breakout from a long-standing trading zone can be of great significance. Please note that for 30 years, from about

Breakout

1500.0

Trading range

1000.0

1974 through 2004, copper traded inside a channel roughly bounded by $0.50 on the downside and $1.50 on the topside. When

500.0

0.0

copper finally broke out of that channel, it did so with a vengeance, soaring to over $4.00 per pound.

74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 As of 20131122

http://www.mrci.com/ (541) 933-5340/(800) 927-7259

Copyright © 1989-2013 Moore Research Center, Inc. All Rights Reserved

An important charting adage is to “never

Some data provided by CRB

fight the trend” and we turn to gold for an example. Please note the period from 1976

Monthly Nearby Copper(CMX) Stats Nov 2013 O 330.05 H 332.60 L 312.40 C 321.40 Chart H 464.95 L 51.30

500.00

through early 1980 when an investor might have been tempted to actually ‘short’ gold

450.00

(betting on lower prices) as it reached new record high levels, but the uptrend was powerfully gathering strength and until a

400.00

350.00

major ‘top’ was established, fighting that powerful trend could have been financially

300.00

disastrous. Another technical concept is that major trends can encounter substantial contra-

250.00

Breakout

200.00

moves, but history has shown that if such corrections return more than 50 per cent of

150.00

the prior advance, the major trend might be at a true end. We are currently faced with this concept in the price of gold where the bull move ran from $260 in 2001 to $1,930 in 2011 – a gain of $1,670. One-half that advance would be $835 and subtracting

100.00

50.00 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 As of 20131122

http://www.mrci.com/ (541) 933-5340/(800) 927-7259

Copyright © 1989-2013 Moore Research Center, Inc. All Rights Reserved

that number from the peak at $1,930 leaves us with a 50 per cent retracement level of $1,095 – perilously close to today’s price. Chart analysis can be an interesting and valuable tool in metals analysis and I would

Please recycle.

recommend a visit to a quality bookstore for those interested in further studies. Fall 2013

31


PDAC 2014 report By Jillian Mitchell

PDAC Executive Director Ross Gallinger, The Hon. Tony Clement, the Hon. Peter Kent, and PDAC President Glenn Nolan.

The city of Toronto reigns as the financial capital of the global exploration and mining sector. As such, the Queen City renders itself the ideal backdrop for the world’s largest mineral exploration convention, a role it has willfully adopted for over 80 years. In 2013, the annual Prospectors & Developers Association of Canada’s (PDAC) Convention contributed an estimated $80 million to the local economy and boasted a record 30,000 attendees from 126 countries, including 600 self-identified Aboriginal delegates; 50-plus members of parliament and government; 1,666 student delegates; and over 7,500 international delegates. It’s a

most successful feat, declares PDAC executive director Ross Gallinger, especially in the math of the current market downturn. The association holds similar hopes for the 2014 PDAC, which will be held March 2nd through 5th at Toronto’s Metro Toronto Convention Centre (South Building); subsequently, current registration hints that 2014 is well en route to replay last year’s victory. “In this downturn, we still see very strong signals of great participation—a lot of interest internationally, as well,” Gallinger says. “We see the PDAC Convention as the networking opportunity for the sector from a global perspective. That’s why we see it

Data management for mineral laboratories

Reliable data

Securely stored

for Easy access

Au Ag Cu Zn phone : 613-231-844 4 fax : 613-231-5552

32

384 Bank street, Su ite 330 Ottawa, ON K2 P 1Y4

Ontario Mineral Exploration Review

sales @ assaynet.com www.assayn et.com

as very pertinent. And the fact that it’s occurred over 80 years means that it’s predictable, timely, and people know what they’re getting.” “The TSX is the financing market for the resource sector. We have over 800 Canadian companies, which is far greater than any other market out there. This market has understood the business and therefore been very close to the sector as a consequence.” Each year, the four-day, early-March convention proves a wealth of opportunity— with an estimated 500 speakers; 1,000-plus trade show exhibitors; and over 200 educational opportunities; as well as many social and networking opportunities. The association’s official mobile convention guide, Mobi, proves a great complement to the event. “This year, there’ll be a lot of discussion around the current access to capital issues that the junior sector is experiencing. That will be top-of-mind,” says Gallinger, citing the Ring of Fire luncheon and the mineral outlook luncheon as must-see events. “The state of the industry is going to be very much topical, as is where we go from here.” The 2014 event will showcase the PDAC’s “new vision for future,” as outlined in the official strategic plan released in 2012. As Gallinger offers, the vision most appropriately builds upon the successes of the past while looking toward the future and well-complements the association’s rebranding of 2012. “The board approved a new strategy, which basically focuses priority on access to capital, access to land, and Aboriginal affairs. We’ve always been strong in those areas,” says the PDAC executive director. “Especially in the last year, we’ve really stepped up our game on finance taxation and securities. I really appreciate the efforts of the volunteers of PDAC who’ve come in to work together in this area.”

For more information, please visit the PDAC’s website: www.pdac.ca.


WHERE THE WORLD’S MINERAL INDUSTRY MEETS

ONLY GOING TO ONE MINING INVESTMENT SHOW THIS YEAR? MAKE IT PDAC. March 2 – 5, 2014 International Convention, Trade Show & Investors Exchange Metro Toronto Convention Centre Toronto, Canada convention.pdac.ca/pdac/conv/

Prospectors & Developers Association of Canada


Harnessing the power of mining for a sustainable future Abstract This is the first of a series of three articles which aim to create a change in mindset, attitudes and motivations towards mining that recognizes its true value to our modern-day society—one that enhances the environment and human wellbeing, while at the same time creates tremendous value for consumers and industry alike. It is time to collaborate to create a richer and more ethically compelling narrative of mining as a driver for a sustainable society. The goal of this first article is to advance the argument why mining is vital for a sustainable society. The second article shall discuss what role all stakeholders can play. The third article will present case-studies of government actions, corporate social responsibility and technological innovations which have contributed toward harnessing this potential. The authors welcome comments and suggestions for this and the two upcoming articles. Introduction Minerals and metals have played an important role in the development of humankind, from prehistoric times to the modern era. Life as we know it would be impossible without minerals and metals. As the global population grows, the demand for copper, coal, iron ore and other commodities will continue to rise. Yet, there is hardly any other sector which has created as much discourse or controversy. Mining is viewed as environmentally and socio-economically destructive. Such perceptions portray mining as dirty, destructive and sunset. But the mineral industry is both modern and technologically advanced, and includes many examples of responsible governance and sustainable development in both the developed and developing world. Models for benefit-sharing do exist, as do examples of environmental sensitivity. However, progress has been slow and incongruent. The discourse needs to move away from whether mining is good or bad, and move towards how to harness the technologies and collaborative models to guide future mineral development in a positive direction, embracing sustainability as a new engine for growth where we all benefit from mining’s vast potential. 1. Mining and Minerals in Modern Society It is impossible to imagine a world without mining. Since the beginning of time, man has mined minerals for its very existence. Thousands of years ago, the hunter, farmer, explorer and artisan relied on the use of rocks and minerals as tools and utensils for their sustenance. Today, everything from light bulbs, televisions and cars to pencils, toothpaste, makeup, and fruit juice are all made of mined minerals. If you can see it, touch it, taste it, smell it, or hear it, it is created from our natural resources. 34

Ontario Mineral Exploration Review

The mining industry is modern, dynamic, innovative and technologically advanced. It is one of the largest investors in, and users of, state-of-the-art technology. This includes GPS surveying, airborne technologies and down-hole seismic imaging technologies that allow exploration companies to locate new deposits not otherwise discoverable with traditional methods. Environmental technologies reduce energy consumption and the emission of greenhouse gas during smelting and refining, the most energy-intensive aspects of the industry. Information technology efficiently manages data from several sources and reduces the time and cost associated with managing and interpreting data. Communications technology has increased efficiency by, for example, using robots in the refining process, thereby eliminating the need for humans to enter dangerous work areas, and in turn increasing productivity.

Minerals and metals have played an important role in the development of humankind, from prehistoric times to the modern era. Not only is the mining industry creating technologies for its own advancement, it is also furthering our own modern-day innovations. The Northern Centre for Advanced Technologies located in Greater Sudbury has been, for the last 10 years, using its knowledge of mining technology to explore the final frontier. The not-for-profit organization has been working with National Aeronautics and Space Administration to develop drilling units and other equipment to allow for subsurface space exploration. These processes will be essential for future space exploration or even human settlements on the moon. Mining also serves as one of the greatest economic drivers of our time. The global mining industry drives more than 45 per cent of the world’s GDP, either on a direct basis or through the use of products that facilitate other industries. In Canada, a single mine that produces 6.7 million ounces of gold generates $3.2 billion in revenues, $1.9 billion in expenditures that support other industries, $400 million in wages, $660 million in corporate mining taxes, $23.8 million in local taxes, $1.5 million in direct donations to local charities, and employs 250 people. The Canadian mining industry is also the largest private employer of Aboriginal Canadians. And if mining is necessary to drive economic growth in the developed world, it is even more heavily relied upon in the developing world. Mining is vital to opening up frontier areas and provides economic development opportunities in remote communities.


For all its positive advancements, progress has been slow and industry has operated for too long without a true understanding of its overall impact on the world. Without proper regulation and enforcement, governments around the world have also helped perpetuate the negative impacts. As a result, the mining sector continues to be faced with negative perceptions and historical legacy issues which hinder positive and sustainable growth. 2. Mining and its Impacts on People and the Environment The mining sector is an intensive user of energy, water and land, and a significant generator of emissions and environmental waste which can cause significant harm to people and the environment. Inadequate mining, and social and living conditions, increasingly attract attention. Such adverse impacts on broader communities (including displacement and relocation), the environment, wildlife, and crops have yet to be effectively addressed. Meanwhile, labour disputes, civil unrest and illegal strikes are on the rise worldwide as more assertive communities in the developing and developed world seek to be recognized as true stakeholders. Intertwined with these risks are historical legacy issues, such as abandoned mines around the globe, which perpetuate health and safety risks and the negative stigma surrounding mining. The majority of the health problems in mining regions are caused by unchecked pollution and high levels of toxicity. The soil, water bodies, air and environment are polluted due to constant release of chemical wastes, dust generated by blasting and excavation, and the dumping of mine wastes and over-burden in the surrounding lands and rivers. People living nearby are constantly exposed and consequently develop respiratory illnesses, skin disease, and a deteriorating functionality of their organs. Women may be more likely affected due to their domestic household role, yet these unhygienic conditions affect children the most; more than one million children are doing poisonous work on the margins of the mining industry. Environmental impacts of mining are another area of significant concern. Mining is site-specific activity and the land is of

no use to mining companies in the pre- and post-mining periods. Removal of vegetation, water scarcity, and contaminated soil, water and dust in the atmosphere from mining disrupts the growth of entire ecosystems. With increasing awareness about the damaging effects of pollution in our soil, air and in our oceans, these have become critical issues for the global community. If not addressed correctly, these impacts will be permanent and irreversible. Abandoned mines only perpetuate these negative environmental impacts and reinforce the negative stigma associated with mining. Overcoming these effects is vital to the sustainable development of the mining industry. 3. What does Sustainable Development Look Like? According to the United Nations, sustainable development seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future. Far from requiring the cessation of economic growth, it recognizes that the problems of poverty and environmental degradation cannot be solved unless we have a new era of growth. It has been argued that economic development, reduction of poverty, and conservation of resources are equally essential pillars to sustainable development. A number of international guidelines have emerged to help companies shape their

Corporate Social Responsibility (“CSR”) practices. CSR is defined by the Government of Canada as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner. CSR has traditionally been reactive and associated with corporate charity and philanthropy—a means to build a good brand-image and cooperation from local community interests. The United Nations Guiding Principles on Business and Human Rights moved us beyond this idea, however. Governments have now affirmed that all businesses have a direct responsibility for their impacts on the environment and for preventing human rights violations, whilst ensuring that adequate remedies are available when abuses occur. The OECD, European Union, International Standards Organisation and others have now also aligned with the UN principles. We are seeing companies taking a more integrated approach to their CSR programs, considering the social and environmental consequences of their business activities. For example, Vale’s $2-billion Clean AER (Atmospheric Emissions Reduction) will reduce sulphur dioxide emissions at Vale’s Copper Cliff smelter in Sudbury by 70 per cent and dust and metal emissions by 35 to 40 per cent. The project will also create an estimated eight million person-hours of employment and $400 million a year of construction value. And Goldcorp has taken

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an active role in creating partnerships with the Aboriginal and Indigenous Peoples. On August 16, 2013, Goldcorp signed a Collaboration Agreement with Ontario’s Lac Seul First Nation that considers everything from future exploration activities on the Red Lake site to training and employment opportunities (which will require 1,280 workers) for Lac Seul members and upcoming financial contributions from Goldcorp for community initiatives. Sustainable companies are recognizing that by combining resources, labour and innovation, wealth can be greatly expanded. It is not a zero-sum game. CSR is becoming a proactive value-creation tool to innovate within business, develop human capital, enhance energy-efficiency and develop shared values with customers and the society at large. 4. The Way Forward: Proposals for a Sustainable Future in Mining Responsible development of mineral resources integrates stakeholder engagement, community development, environmental best practices, responsible resource use, respect for human rights, and provides fair labour conditions and health and safety standards for its workers. It helps parties express their interests and concerns in a constructive and proactive way and identify areas of mutual benefit viewing the community and environment as key stakeholders. The result is the prevention or resolution of conflicts and ultimately the economic and social development of a region in an environmentally responsible manner. Truly sustainable development includes a positive net return in all four areas: (1) Poverty reduction: creates employment, develops infrastructure, builds local community capacity; (2) Environmental: carbon positive, energy positive, water positive, materials positive, waste positive, and restorative to ecosystems; (3) Social: fair share of taxes, labour rights and safe working conditions, fair employee remuneration, family-friendly benefits, engaged employees, local workers, purchasers and investments, products and services build social capital; (4) Economic/Financial: financially sustainable, ethical business practices, transparent/engaged stakeholders, sustainable business model, policies and systems, sustainable value chain/lifecycle accountability. To make progress with these elements of sustainable development, institutional cooperation among key stakeholders including government, the mining industry and its associated organizations, and academic and educational institutions is vital. Institutional cooperation is defined as the ability of organizations to work proactively, cooperatively and collaboratively. Institutional cooperation is crucial for the simple reason that it is beyond the sphere of authority, capacity or control of any one entity. Neither the government, nor the private sector, alone, can achieve goals relating to sustainable development. When governments, civil society, mining companies and local communities get together, great things can be done. In Ontario, partnership between Barrick Gold Corporation and the Municipality of Greenstone played a key role in rehabilitating a highway corridor after 32 years of mine operations. Today, a Heritage Interpretive Centre and an 18-hole golf course stand as attractive tourism and income generator for the community. Similarly, following nearly eight decades of mine and smelter operation, cattails and reed grass now 36

Ontario Mineral Exploration Review

cover over 95 per cent of 170 hectares of active marshland around the Falconbridge smelter. Canada geese, black ducks, great blue herons, red-winged blackbirds, killdeer, muskrats and moose can now be seen at the marsh. At the exploration level, we have seen several companies enter into “interim” benefit agreements with affected Aboriginal groups respecting early-stage mineral exploration. These agreements have been of modest scope and not nearly as expansive as impact benefit agreements commonly associated with larger projects. Fostering strong relationships with communities is a long-term process. Laying the groundwork early on, through exploration-stage consultation or interim benefit agreements, may give exploration companies more success in gaining support for the project and developing a project that is sustainable over the long term. Furthermore, by collaborating with all affected stakeholders, greater value is created for the consumer. We are seeing examples of end-users such as electronic companies and jewellers take proactive action to collaborate with local communities, industry and government to create conflict-free supply-chains in regions suffering from years of war, such as the Congo. These programs not only directly reduce profits to fund illicit wars, they also attempt to address environmental devastation and create employment and better working conditions for the thousands of artisanal miners working in extreme conditions on the fringes of society. In return, a viable product is developed that can be readily traced and sold to the consumers who are demanding safe minerals in the products they purchase. The end cost to the company is significantly lower than each company undertaking its own intensive due diligence plan to uncover the sources of their supply chain. Yet there is a scarcity of tested models and frameworks which have been consistently successful to bring all stakeholders together to achieve sustainable development objectives. We propose that each mining jurisdiction establish a “Multi-Stakeholder Collaborative Council” with membership from all sectors mandated to advance sustainable mining. Having such a council will serve as a catalyst for establishing direction, priorities, dialogues and a legal framework to promote the development of cross-functional synergies and cooperation. With this, there needs to be incentive and economic drivers from the government to support innovation within the mining industry. New technologies are needed that create cost-effective and environmentally safe methods for extraction and operation. At the international level, we propose that the international community engaged in sustainable and responsible development with the affected governments of the mining jurisdictions pool together financial resources and human capital to set up a “Global Mineral Resource Development Fund” to address three key areas: (1) the rehabilitation of abandoned mines; (2) conversion of artisanal mining into legal mining; and (3) investment in the development of breakthrough technologies to conserve and manage resources such as water, energy, and land in a more environmentally, socially and economically responsible manner. Several successful natural resource-based collaborative groups have emerged around the world. They have leveraged their resource endowment into a knowledge advantage that can multiply the economic benefit of the resource and create high-tech, knowledge-econ-


omy niches. For example, Finland’s mining sector accounted for €85 million in exports in 2008; the country has also developed a strong mining technology industry which accounted for €1.5 billion worth of exports in 2008 and employed almost 40 per cent more people than the core mining industry. The Finns have managed to transform their relatively modest resource advantage into a strong knowledge advantage. The Canadian Government has recently amalgamated the Canadian International Development Agency with the Department of Foreign Affairs and International Trade. The newly restructured department is expected to create a larger role for the resource sector in foreign affairs and development policies. Resource extraction is a key tenant of the Canadian economy. According to Natural Resources Canada, the total value of Canadian mineral exports in 2012 was $92.4 billion, or more than 20 per cent of Canada’s total exports. Furthermore, Canadian miners explore and operate in 4,300 projects around the world. Sustainability and responsibility are increasingly the credentials required to operate in this global arena. Its future success is dependent on being as transparent as possible, which means establishing consistent and strong consequences for corporate behaviour abroad, including environmental damage, strengthening the role of the ombudsman and institutions in the countries where Canadian companies work. We have seen recent cases where Canadian mining companies have been held responsible for human rights abuses and degradation of the lands and waters where they are active in countries such as Eritrea, Greece, Papua New Guinea, Guatemala, and the Congo. Glenn Sigurdson, chair of the Responsible Minerals Sector Initiative at SFU’s Beede School of Business, states, “The discussion must go beyond economic questions, as important as they are, and become more inclusive. Everyone involved in the process—from environmentalists to miners, local governments to community groups—must understand that each has a vital self-interest in understanding what is going to work for the other side. For the miners, it’s an opportunity to tackle some of the toughest challenges facing the industry.” 5. Conclusion Development of mineral resources has been identified as a key driver of global economic growth, with the potential to transform economies and societies, including some of the world’s poorest nations. Mining is vital to our society and is here to stay. The discourse needs to move toward conversations about how to harness mining’s true value. The challenges facing the mining sector necessitate significant paradigm shifts from a reactive to a proactive approach, from traditional governance methods to collaborative public engagement processes, changes in attitudes and behaviours, and a willingness to address historical legacy and environmental damage issues, the deployment of breakthrough technologies, and above all, cooperation and collaboration among all major stakeholders for a shared vision and commitment to mining in a sustained manner until sustainability is embraced and integrated. Achieving sustainable development will require concerted collaboration and a commitment to a balanced approach that views risks as opportunities for growth and prosperity for all. We have only “scratched the surface” of mining’s vast potential.

The authors have been influenced by a number of organizations’ work on sustainable development in mining and by their own experiences working with diverse stakeholders in the mining and mineral sector. The views expressed here, however, are solely the authors’ and should not be attributed to any of their firms, clients, or respective associates. The material and information provided are for general information purposes and should not be relied on as legal or business advice or as a legal opinion. The authors make no claims, promises nor guarantees about the accuracy, completeness, currency, or adequacy of any information linked or referred to. References Bourgouin, France. “A Missed Opportunity: Mining for Sustainable Development.” Danish Institute for International Studies (DIIS), Jan. 2011. Web: <http://www.diis.dk/graphics/Publications/Policybriefs%202011/France%20Bourgouin%20pol%20brief%20 small.pdf>. “Bringing Rio Closer – Brundtland Commission.” The Regeneration Roadmap, 9 May 2012. Web: <http://theregenerationroadmap. com/wp-content/uploads/2012/02/Bringing_Rio_Closer_Brundtland_Commission.pdf>. Creamer, Martin. “Global Mining Drives 45%-plus of World GDP”, Cutifani.” Mining Weekly. N.p., 4 July 2012. Web: <http://www. miningweekly.com/article/global-mining-drives-45-plus-ofworld-gdp-cutifani-2012-07-04>. “Does Mining Cause Social Conflict?” The Fraser Institute. N.p., n.d. Web: <http://www.miningfacts.org/>. Heartfield, Kate. “Canadian mining firms have vital role in developing nations.” Edmonton Journal, June 11, 2013. Web: http:// www2.canada.com/edmontonjournal/news/opinion/story. html?id=520173e9-67e7-41ab-b61f-3c5d417b2761 “Impacts of Mining on Women’s Health in India.” MAC: Mines and Communities. Mines, Minerals and People, Apr. 2003. Web: <http://www.minesandcommunities.org/article.php?a=1817>. Ketels, Christian H.M., and Olga Memedovic.”From Clusters to Cluster-based Economic Development. International Journal of Technological Learning, Innovation and Development, 1.3 (2008): 375-92. Kolenko, Sean. “Goldcorp signs collaboration agreement with Ontario First Nation community.” Business in Vancouver, September 17-23, 2013. Marshall, Brendan. “Presentation to the Indo Canadian Chamber of Commerce.” The Mining Association of Canada. Lecture. “Materials: Gold, Precious and Diversified Metals, Mining, Packaging”. Macleans.ca. N.p., n.d. Web: <http://www2.macleans. ca/2012/06/14/266237/usine-cascades-lachate-2/>. McMenemy, Lauren. “Responsible Mining: Can It Work?” The Guardian, 21 Dec. 2012. Web: <http://www.guardian.co.uk/sustainablebusiness/responsible-mining-can-it-work>. Ontario Mineral Industry Cluster Council. “Ontario’s Mineral Industry Cluster: An Economic Powerhouse”. N.p., 2006. Web: <https://docs.google.com/file/d/0BxGW5Vpn-P5_ajE5TVNWalpVOEU/edit>. Ontario Mineral Industry Cluster Council. “Rehabilitated Mines Calendar”. N.p., 2011. Web: <https://docs.google.com/ file/d/0BxGW5Vpn-P5_YVg0am1fTC1MOU0/edit>. Fall 2013

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Sustainable companies are recognizing that by combining resources, labour and innovation, wealth can be greatly expanded. Pletcher, Fred and Molodecky, Sonia. “First Nations consultation requirements challenge ‘free entry’.” Business in Vancouver, September 17-23, 2013. Ramus, Joseph. “A Development Strategy Founded on Natural Resource-based Production Clusters.” CEPAL, 66 (n.d.): 105-27. “Responsible Mineral Development Initiative.” World Economic Forum, 2011. Web: <http://www3.weforum.org/docs/WEF_MM_ Report_2011.pdf>. Richards, Jeremy P. “The Role of Minerals in Sustainable Human Development.” Geological Society, London, Special Publications, 250.1 (2005): 25-34. Lyell Collection. Web: <http://sp.lyellcollection.org/ content/250/1/25.short>. Saxena, Prof N C. “Environmental Impacts of Mining.” (n.d.): 10919. World Wide Web. Schrecker, Ted, Hugh Mackenzie, and John O’Grady. Sustainable Development, Getting There from Here: A Handbook for Union Environment Committees and Joint Labour-management Environment Committees. Ottawa, Ont.: Canadian Labour Congress, 1993. Sigurdson, Glenn. “Mining report: Sustainability and responsibility are keys to Canadian mining success.” Business in Vancouver, September 17-23, 2013. Singh, Indira. “A Framework for the Sustainable Development of Turkey’s Mineral Wealth.” (n.d.). Singh, Indira. “Canada’s Vast Knowledge, Expertise and Experience Can Accelerate Mining Life Cycle in India at Every Stage from Exploration.” Business Times, XXIX.1 (2010): 21-23. Singh, Indira. “Mining – The Big Picture?” 2007 Lecture Series. Queen’s University. 29 Nov. 2007. Singh, Indira. “Natural Resources Based Clusters in the New Economy: Theory and Reality.” 4th Annual International Conference of the Competitiveness Institute. Tucson, United States. TCI Network, 28 Oct. 2001. Web: <http://www.tci-network.org/media/asset_publics/resources/000/000/391/original/ISingh.pdf>. Singh, I., and J. Evans.”Natural Resource-Based Sustainable Development Using a Cluster Approach.” Mining, Society, and a Sustainable World. Berlin: Springer, 2009. 189. Singh, Indira. “Ontario Opportunity: Achieving sustainable development of mineral resource development.” Ontario Mineral Exploration Review, Spring 2013. “Sustainable Development Sessions at Investing in African Mining Indaba.” African Mining Indaba. International Mining and Metals Council, 2013.Web: <http://www.miningindaba.com/>. The Canadian Chamber of Commerce. “Mining Capital: How Canada Has Transformed Its Resource Endowment into a Global Competitive Advantage.” The Voice of Canadian Business – Connect! Jan. 2013. Web: <http://www.chamber.ca/images/uploads/ Reports/2013/130130_Mining_Capital.pdf>. “The Role of Mining in National Economies.” International Council 38

Ontario Mineral Exploration Review

for Mining and Minerals (ICMM), Oct. 2012. Web: <http://www. icmm.com/document/4440>. United Nations. Report of the World Commission on Environment and Development: Our Common Future. UN Documents, 1987. Web : <http://www.un-documents.net/wced-ocf.htm>. York, Geoffrey. “Young and Dying: The Scandal of Artisanal Mining.” The Globe and Mail. N.p., 18 Aug. 2012. Web: <http://www.theglobeandmail.com/news/world/young-and-dying-the-scandal-ofartisanal-mining/article4487572/?page=all>. About the Authors: Indira Singh is the principal of Mining Consultancy International Inc. (MCI), a firm that specializes directly, and through its associates, in strategic planning, global and local cluster strategies, sustainable resource development, project management, and government and corporate relations. Indira recently concluded a 25-year career of public service in Canada, having worked in both Alberta and Ontario in the fields of research and analysis, strategic planning, policy development, service delivery and project management. Former executive director of the Ontario Ministry of Northern Development and Mines Cluster Council, Indira focused on creating sustainable economic development within the Ministry with various stakeholders to strengthen Ontario’s mineral industry competitiveness through cluster strategy development. Indira was the recipient of the highly covenanted Amethyst Award for transforming her organization, The Office of the Registrar General, into a highly customer-focused organization, as well as the Canadian Project Excellence Award for projects that fostered collaborative partnerships between provincial government, federal government and industry and the Amethyst Award for transforming the Ministry and work with Aboriginal communities. Indira has been actively involved in the Prospectors and Developers Association of Canada and the World Mines Ministries Forums. Indira now shares her expertise and knowledge with governments and industry around the world including India, Russia, Finland, Chile, South Africa and Sweden Colombia, Turkey and Kazakhstan. Email Indira at: MCInternational112@gmail.com. Sonia Molodecky has five years of experience in business and mining law at two of Canada’s largest law firms. Sonia is the founder and chair of the firm’s Latin American Group, and also founder and chair of the firm’s Corporate Social Responsibility Group which focuses on providing clients with advice on compliance measures with anti-corruption and bribery legislation, environmental matters and community consultation. Sonia has also worked for the Public Defender’s Office for Minors and Mentally Incapacitated in Argentina, for the United Nations Development Program in Ukraine where she worked for the prime minister of Ukraine developing democratic governance and anti-corruption policies and legal frameworks, and for the president of the Commission of Human Rights and Justice in Mexico. With her legal expertise, Sonia has extensive experience with negotiation of formal agreements between stakeholders, financial structuring of business interests, and building and developing investor and business relationships in new markets. Sonia is currently working on project with the mining industry, multi-national end users, governments, NGOs and local communities to implement a conflict-free gold supply chain in Colombia. Email Sonia at SMolodecky@blq.com.


Small business – big service By Melanie Veilleux of Hearst Air Service Ltd. and Desneiges Larose of the Hearst and Area Economic Development Corporation. Located on the northern tip of Highway 11 in Ontario, Hearst is a small town typically known for its forestry industry. With a long history of independent sawmills and a collaborative and innovative business culture that led to the first forest management shareholder coop model in 1986, the Hearst forestry sector has survived every boom-and-bust cycle the industry has faced. It is that very entrepreneurial spirit and history of collaboration that has contributed to making Hearst and its business community a valuable supply hub for the mining industry in Ontario’s far north. Mining exploration in the area has brought on transformative change to the regional economy and Hearst businesses have been paying close attention. With increased business for serving mining exploration camps in the far north in the past 10 years, Hearst Air Service Ltd., a charter company, observed opportunities for improving the way camps were supplied and serviced. Many of the supplies being used in the camps were products being shipped into Hearst from other regions, even other provinces. Labourers, drillers and stakers were being flown in from all parts of the country and equipment servicing and parts were considered a burden as camp managers assumed they were isolated, being so far from larger city centres. Even the logistics in getting fresh groceries and food products into camps was proving to be a challenge, as some camps were still purchasing from larger cities, trucking to the nearest airbase, and receiving partly filled orders after food had been stored along the way. It was apparent that Hearst businesses could fill those needs, and needed to demonstrate their capacity and step up to be a part of this industry’s success. Through the Hearst Chamber of Commerce and the local economic development corporation, Hearst Air gathered local suppliers, workers, and municipal officials to introduce them to the opportunities and needs related to these exploration camps. The aim was to work together to establish a resourceful entrepreneurial team to serve the mining industry in a way no other community could. A gathering of experts in hydraulics, fabrication, heavy machinery and diesel engine repairs was the starting point of new business relationships and growth. Businesses quickly collaborated and adapted to a new industry, making changes to their infrastructure, providing additional training for employees or adding new stock and inventory. It became very apparent to Hearst Air’s clients that these collaborations were contributing factors to the success of their projects. Mining companies saw immediate benefits and increased productivity that was directly related to the utilisation of Hearst Air and the team of suppliers in

the Hearst business region. The camps now seemed less “remote” and isolated due to the expediting of daily commodities from hardware stores, department stores, work clothes stores, safety equipment suppliers, and more. Personalized service, flexibility in scheduling, and availability are truly priceless characteristics when it comes to drill programs, remote accommodations, and long-distance shipping; this team of Hearst businesses have demonstrated their dependability, adaptability, and capacity to accommodate any situation or need. Change is inevitable but adaptation to that change is a choice. Hearst businesses, educational institutions, and the community at large are embracing changes brought on by mining exploration in the Ontario’s far north and demonstrating that although Hearst may be a small town, its resilience and larger-than-life ambition, paired with an eagerness to perform, is surpassed by none.

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Innovation centre features 3D scanning, printing, projection, robotics

WipWare Training Seminar attendees view a 3D printer at the Candore College Innovation Centre for Advanced Manufacturing (ICAMP).

WipWare President and SAMSSA Vice-president Tom Palangio stands outside his office in North Bay, Ontario.

WipWare Training Seminar attendees preview ICAMP’s 3D theatre.

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Ontario Mineral Exploration Review

WipWare Inc. is proud to be a sponsor of the Innovation Centre for Advanced Manufacturing (ICAMP) facility at Canadore College’s Commerce Court campus unveiled in September. ICAMP is a unique collaboration between the college, business and manufacturing sectors that offers development and expansion by allowing companies to test-drive new designs and prototypes, and improve products for the marketplace with state-of-the-art technology. “When we heard about ICAMP, we knew right away it was a great fit for WipWare and we’re proud to be part of such an innovative facility,” said WipWare president Tom Palangio. “Having the ability to prototype designs with 3D printers can only spur product development in ways we are just starting to understand. This component is an added feature to growth and innovation in northern Ontario and the Sudbury Area Mining Supply and Service Association (SAMSSA) mining cluster.” During the grand opening, guests were invited to see live demonstrations of the centre’s 3D simulation software, projectors, scanners and printers, as well as robotic devices. Small and medium enterprises will have access to technologies and automation to encourage manufacturing best practices, product prototyping and entrepreneurial leadership, and reduce environmental impacts. “This facility brings innovation, applied learning, leadership, and partnership to life,” said Canadore president George Burton. “Just imagine conceiving a new product idea and then being able to test its viability before the need for significant investment. That’s ICAMP, and we’re very excited to be open for business thanks to the support of government and industry.” ICAMP is an incubator facility designed for industry to assist in technology transfer, act as a retention tool, and stimulate business growth. Related websites for more information: www.samssa.ca http://www.canadorecollege.ca/ICAMP www.wipware.com


Ride the powertrain

Minimize downtime and maximize profit with Bull Powertrain

The booming mining industry has created a great demand on Canadian mining resources, such as skill trades, tires, and machinery components. In fact, some critical powertrain components and parts are quickly becoming very difficult to find. Mining companies know that they can’t afford long waits for critical parts. This is why Bull Powertrain has made it its mission to fulfil the growing need for “in-stock” parts and components in the offhighway powertrain market, especially in the mining industry. “To service our customers best in the powertrain industry”— this simple strategy has been at the heart of Bull Powertrain’s operation since its founding in 1977. Over the last 35 years, Bull Powertrain has held itself to a higher standard in the powertrain industry to make sure customers get the best service, best products, and best support. The staff at Bull has built a vast knowledge base in the industry, keeping up with the advances in technologies and changes within the industry. In the early years, Bull was comprised of a very small but dedicated team of five people who worked by this strategy. Today, the company has grown to now comprise 25 individuals who have kept the same hard work and dedication as their predecessors— and the same value is placed on service to the customer. In fact, this proves to be one of the greatest assets of the company, an understanding of the customer’s needs. Specializing in off-highway powertrain components, Bull has created a reputation of excellent service, dedication to their customers and expert knowledge of powertrain assemblies. The company understands that downtime needs to minimal, and so it strives to provide the best repair service, quality work and quick turnaround.

Bull is based in Sudbury, Ontario; this has given it the opportunity to specialize even further by supplying powertrain components and parts to the booming mining industry. At the beginning, the company simply provided service to the local mining sector, and now has gathered a network of customers who span the globe. Shipping internationally on a daily basis, distance is not a problem for Bull. Bull’s focus in mining has enabled staff to intimately learn the mining process, equipment machines, people and business. If you want a knowledgeable, understanding supplier for the powertrain components in your mining fleet, look no further than Bull Powertrain. The knowledgeable staff has experience working on all powertrain for mining equipment, enabling them to help with parts identification, and to help troubleshoot problems with your powertrain system.

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Bull Powertrain supports many product lines, but the core of its business is based in the Dana/Spicer/Hurth/Clark, Axletech/ Rockwell, and Kessler products. Bull supplies both new and rebuilt components and parts. Whether it’s a torque converter, transmission, axle, or other associated parts, Bull will rebuild, repair, or supply parts according to your powertrain needs. Bull’s component exchange program helps to minimize downtime and maximize profits by offering same-day shipping on over 300 new, rebuilt and tested components stocked within the building. Need a component repaired? Bull offers same-day repair return service on most components; a part goes on a mechanic’s bench at 8:00 a.m., and is out the shipping door at 5 p.m. that day. Bull has one the largest OEM parts and component inventories in the world and with our high availability and same-day shipping, we can ensure our customers’ productivity will be down for the minimum amount of time. The OEM products we carry and support, in addition to the previously mentioned lines, include Ausco, Superior Upbox, New Holland, New Process and Timberjack. With 300+ built components in-stock, they are ready to ship at a moment’s notice. Bull’s facilities have also grown, expanding a few years ago to a 25,000-square-foot building with a brand-new shop designed with ergonomics and safety in mind to ensure the team can work in the best possible manner. Bull has also installed all the most up-to-date working tools to ensure maximum performance can be achieved. This was done with the customer in mind, speeding up the processing time in the shop in order to get the components to the customer sooner, minimizing downtime. This year Bull has reached another milestone in its history, and has expanded its services again to better serve its customers. Bull carries components to manufacture or rebuild all driveshafts, from small PTO shafts to the larger industrial mining, forestry and highway applications. Sizes range from 1000 series to 1810 and SPL highway series, and from 4C to 10C and GWB 2000 series for off-highway applications. All components are genuine original manufacturer quality (Dana/Spicer, Rockford, GWB) and are assembled with new equipment utilizing the latest technologies. The driveline technician has over 20 years of experience and will help solve any driveline problems that you might have. We stock the most popular numbers and can manufacture to your specifications when required. This new aspect of the company is now operational and all driveline applications can be supplied. Bull Powertrain is confident that they will be able to meet any customer’s driveline needs. 42

Ontario Mineral Exploration Review


Why fabric-covered buildings are the ‘brite’ building choice for your mining operations By Kelly Thomson Your mine is expanding and you require numerous buildings for your operations. A fabric-covered building is the ideal building choice, offering unlimited uses and substantial benefits for your mining operations. Here are the top five reasons why fabric buildings are the “brite” building choice: 1. Natural light – the natural source of light that you receive from a fabric-covered building drastically reduces the need for electrical lighting. Therefore, you save money on installing costly lighting systems and you will not have to deal with high electrical bills. The inside of the building is bright, even on a cloudy day, making it a very enjoyable environment in which to work! 2. Clear span space – the truss design on the fabric-covered building provides remarkable storage/work space. There are no centre posts to contend within the building; thus, you are not paying for an abundance of building materials. On certain building 44

Ontario Mineral Exploration Review


series, there is enough room to unload or work on trucks right inside the building. 3. Versatility – a fabric-covered building can be used for anything! You can easily extend your building economically if needed in the future or if you don’t need it anymore, you have the option take it down and move it to the next jobsite. You can easily transform your building from one building use to another. 4. Installation and maintenance – fabriccovered buildings can be installed in as little as two days, so you are saving money on labour rates and your operation can be up-and-running quickly. They are also very low maintenance; no need to re-shingle or paint the roof after a few years. 5. Designed for your location – buildings can easily be delivered to remote locations and are designed for your specific building location. There are a variety of foundation options to choose from, such as blocks, shipping containers and pre-cast foundations. The buildings are engineered to meet the snow and wind loads in your area. Our product offers ranges in widths from 19-feet up to 160-feet wide, or any length required, and there are seven different building models from which to choose. Custom widths and designs are available for special applications. So if you are constructing a new building, consider the advantages of a fabric-covered building in your buying decision and the time and money you will save over the years. It just makes “cents”! To get started on your next building project, contact BriteSpan Building Systems today or visit us online at www.britespanbuildings. com. Fall 2013

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Portable Pitbull 2300 Screening Plant features redesigned conveyor, increased output, electric option TM

The rugged Pitbull 2300 Screening Plant manufactured by Lake Erie Portable Screeners gives mining operators, landscapers, contractors and municipalities a compact and portable machine that delivers maximum efficiency and high outputs with a wide range of materials such as topsoil, mulch, gravel and asphalt. It is available in both diesel and electric-powered models. Lake Erie Portable Screeners developed the Pitbull 2300 with simple operation, maintenance and transport in mind. The machine incorporates several unique features, such as full hydraulic operation, tubular frame construction, a Torflex axle and a reversible shaker, that set it apart for midsize screening projects. The company manufactures Pitbull 2300 frames with high-quality, structural tube steel. The tubular construction reduces noise and vibration, which in turn minimizes the risk of cracks and structural failures that are common in machines with C-channel construction. The screening plant incorporates heavy-duty materials throughout, each of the stress points are fully gusseted, and both attachment points and stress points are 100 per cent welded with high-strength steel. The result is a machine with a curb weight of 13,440 pounds. The Pitbull 2300’s 20-foot-long stacking conveyor adjusts hydraulically from heights of six feet, eight inches up to 13 feet to feed material directly into a tri-axle or dump truck. This allows users to create larger stockpiles, which increases efficiency by reducing the number of times equipment needs to be moved. These attributes, combined with the ability to place the ma46

Ontario Mineral Exploration Review

chine at the point of excavation, minimize spillage and dramatically reduce cycle times and haulage costs typically associated with loading and unloading material when using stationary plants. With the machine’s width of eight feet, four-and-a-half inches and either a standard pintle hitch or optional gooseneck towing package, the Pitbull 2300 is easy to move from site to site, as well. A 10K Torflex axle with oil bath hubs provides a cushioning effect so the unit tows smoothly and stress to the tow vehicle is reduced. Upon arrival, users can quickly and easily lower the unit to operating position with the hydraulic system, which eliminates pressure on the axle, tires or wheels during screening. The hydraulic system raises the machine back to towing position with the flip of a lever. The machine also features heavyduty suspension, electric brakes, and trailer lights for safe and legal travel.

The screening plant is equipped with a loading apron that accepts up to three yards of material at a time and up to five yards at a time with a slower dump speed. With its low dump height of 8 feet, 4½ inches, users do not need loading ramps; they can fill the hopper using typical construction equipment like skid steers, backhoes, loaders or excavators. The portable screening plant also includes an upper and lower screening deck, each with more than 41 square feet of screening area. The upper and lower decks are equipped with two sections of screening media on each deck. The company offers optional punch plate or finger decks for the top deck in addition to a wide range of screen sizes for processing all types of materials. Operators can quickly and easily change screens by loosening tension bolts that hold each one in place. The screeners also can be equipped with optional upper and lower discharge


The company also offers a 60-horsepower, 480-volt AC electrical package for applications in confined or enclosed spaces like tunnels, mines and indoor projects. chutes to allow for up to three different sizes of screened materials. In addition to the adjustable stacking conveyor, the Pitbull 2300 features a hydraulically driven transfer conveyor that moves screened material from the hopper to the stacking conveyor. Hydraulic motors on the conveyors provide continuous flow of power to achieve production rates up to 100 yards per hour of clean, saleable material. Because the conveyors are hydraulic rather than chain- or belt-driven like many competing models, the Pitbull 2300 eliminates the risk of power loss and downtime due to broken chains or belts.

The unitâ&#x20AC;&#x2122;s power plant is equipped with a reliable 47-horsepower Yanmar diesel engine that complies with 2008 EPA Tier 4 and EU Stage IIIA emissions standards. The engine compartment features large doors at the top and bottom that open wide for easy maintenance and repair access. The company also offers a 60-horsepower, 480volt AC electrical package for applications in confined or enclosed spaces like tunnels, mines and indoor projects. Lake Erie Portable Screeners designs, engineers and manufactures versatile, heavyduty, commercial-grade screeners and related equipment at its headquarters and manufac-

turing plant in Lake City, Pa. With 35 years of construction equipment manufacturing experience and expertise, the company understands the construction business and knows how to engineer products that will last under the toughest working conditions. Its durable and versatile Pitbull 2300 screens a wide range of materials, such as soil, mulch, asphalt, stone and gravel for use by mining operations, landscapers, energy facilities, contractors and municipalities, and more. For more information, visit Lake Erie Portable Screeners online at www.pitbullscreeners.com, email: info@pitbullscreeners.com; or check them out at www. facebook.com/pitbull.screeners.

Index to Advertisers ALS Minerals............................................................... 13

Kirkland Lake Gold Inc................................................. 15

Assaynet Canada Inc................................................... 32

Mining Extract Inc....................................................... 11

Blue Heron Environmental.......................................... 28

Mullen Trucking LP........................................................ 5

Britespan Building Systems Inc................................... 45 Bull Powertrain & Driveline Center.............................. 43 Cambridge House International Inc...........................OBC Exp.............................................................................. 29 Expedition Group of Companies..................................IFC Future Buildings..........................................................IFC

Norske Drilling............................................................ 22 NRB Inc....................................................................... 25 Prospectors & Developers Association of Canada........ 33 Ross Industries Ltd........................................................ 4 Terraquest Ltd............................................................ 41

Hearst Air Service Ltd.................................................. 39

Wilson Mining Products.............................................. 28

Hertz Equipment Rental.............................................. 10

Wisk Air Helicopters.................................................... 35

Innov-X Canada Inc....................................................... 9

XPS Consulting & Testwork Services............................ 19

Please support the advertisers who help make this publication possible. Fall 2013

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Ontario Mineral Exploration Review - Fall 2013  

The voice of Ontario’s mining and exploration industry, OMER carries regional mining reports, information on government programs related to...

Ontario Mineral Exploration Review - Fall 2013  

The voice of Ontario’s mining and exploration industry, OMER carries regional mining reports, information on government programs related to...