PDAC Annual Report 2019

PERSEVERANCE IN A CHANGING WORLD

2019 ANNUAL REPORT

PERSEVERANCE IN A CHANGING WORLD 2019 ANNUAL REPORT

The Prospectors & Developers Association of Canada (PDAC) is the leading voice of the mineral exploration and development community. With over 7,500 members around the world, PDAC’s work centres on supporting a competitive, responsible mineral sector. PDAC is known worldwide for its annual PDAC Convention—the premier international event for the industry—that has attracted over 25,000 people from 135 countries in recent years.

Please visit www.pdac.ca

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President’s Message

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Year in Review

10 PDAC 2019 Convention 16 Awards 22 S-IMEW 2019 28 Cornerstone of a Nation 34 Membership Statistics

MESSAGE FROM THE PRESIDENT

prices—mainly gold and silver—have generated renewed investor interest and pushed the market value of mineral issuers higher over the last six months. With half of domestic and global exploration focused on gold and silver, the direction of these metals will likely determine the trajectory of industry investment over the short-tomedium term.

Along with the ability to thrive in uncertain market conditions, our industry continues to adapt to the expansive social and cultural movements that shape the way our members operate. As the leading voice of the mineral exploration community, PDAC’s work supports the mineral sector’s efforts to enhance its environmental and social performance, including the foundational role the sector will play in the transition to a low carbon future.

To support these objectives, PDAC continues to work with governments and advocate for policy such as: enhanced funding for, and growth in, northern communities; strengthening Indigenous-industry partnerships; improving transportation and energy infrastructure; enhancing investment in geoscience and innovation to help improve discovery rates; and establishing predictable, coordinated and effective regulatory regimes.

Over the past few centuries Canada has solidified its position as a global leader in mineral exploration and mining. From the first large-scale iron ore operation in Québec during the 18th century, to the rapid development of coal production in Cape Breton, to the discovery of precious metals and the push west to find new deposits such as nickel in Sudbury and the gold rushes of the Fraser Valley and Klondike, our sector has emerged as a cornerstone of this country’s prosperity and a respected voice around world.

Yet despite our achievements and global status, the boom and bust cycles that have molded our industry over the centuries are as prevalent as ever—testing our resiliency and resolve like never before.

Market uncertainty and fluctuations in commodity prices since the downturn of 2008 are now a part of doing business. Overall equity funding, for instance, was down this past year for the second year in a row and heading toward a decade low. Exploration spending is also down relative to last year, and overall financing activity is projected to decline further heading into 2020.

But there are signs that the sector is once again adapting and persevering. Canada still remains a global leader in financing with over 30% of all equity funds raised through Canadian exchanges (TSX/TSXV). Moreover, positive swings in metal

This past year, PDAC also launched a Gender Diversity & Inclusion: A Guide for Explorers to assist junior exploration and mining companies in their efforts to improve diversity and inclusion. The resource provides information and practical tools for implementing strategies that cultivate inclusive and diverse environments within companies, and the communities they engage within and operate in.

To keep our members up to speed on the latest trends and developments, PDAC started a series of webinars and a blog forum to provide a range of platforms for discussing issues that are shaping the sector. In addition, the association has expanded its student program to include new grads and early career professionals, while also providing resources and networking venues to showcase the vast array of career opportunities available in the sector.

Anchoring all of these activities is our annual PDAC Convention that brings together investors, analyst, executives, prospectors, geologists, students, Indigenous communities and government officials from all over the world to learn about the latest trends shaping the sector, and how we as a community can build a competitive, sustainable and responsible industry that meets the demand of a low carbon future for generations to come. Adapting to change has always been a hallmark of Canada’s mineral sector, and PDAC is committed to leading the way for our members in the years ahead.

Felix Lee President PDAC 1

YEAR IN REVIEW 2019 PDAC is proud to be the leading voice of Canada’s mineral exploration and development community, and to represent our 7,500 members in Canada and around the world. Here is a look back at some of the major news stories, developments and political decisions that shaped the sector in 2019.

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PDAC co-develops new IFRS resources As 2019 begins, the CPA/PDAC Mining Industry Task Force on International Financial Reporting Standards (IFRS) releases a new report on the capitalization of borrowing costs for mining companies.

As part of the Viewpoint Series, the reports outline factors to be considered in determining whether a mining company should capitalize borrowing costs, including defining qualifying assets, eligible costs and impairments. In addition, they examine leases, recognition issues and how IFRS 16 could impact accounting for some contractual arrangements within the mining industry.

BRITISH COLUMBIA PLEDGES TO MAKE MINING INCENTIVES PERMANENT British Columbia Premier John Horgan announces at Roundup 2019 in Vancouver in late January that his provincial government will make the Mining Flow-Through Share (MFTS) tax credit and Mining Exploration Tax Credit (METC) permanent.

The MFTS provides a non-refundable B.C. income tax credit to individuals who have purchased flow-through shares from a company operating in B.C. The tax credit is worth 20% of qualified mining exploration expenditures that the mining company flows through to the individual.

The METC is a refundable B.C. income tax credit for eligible individuals and corporations conducting grassroots mineral exploration in B.C., and is worth 20% or 30% of mining expenditures.

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PDAC launches webinar series To engage and inform members on industry developments, PDAC launches a webinar series available on its Members Portal. The first webinar in the series, “Make flow-through financing work for you: Practical tips for the deal and beyond,” provides insight into flow-through shares—an innovative financing tool that helped pave the way for some of Canada’s greatest discoveries. In the spring, PDAC held a second webinar “Small changes, big impact: Enhancing gender diversity and inclusion in mineral exploration”. At the end of the year, a third webinar is launched on “Strategies for strengthening company-Indigenous community partnerships: Examining capacity-related challenges.”

PDAC annual Ottawa Reception PDAC hosts its annual reception for parliamentarians, department officials and other guests in February to raise awareness about the mineral exploration sector and to highlight the PDAC Convention. PDAC representative, Felix Lee, and Parliamentary Secretary to the Minister of Natural Resources Paul Lefebvre provide welcoming remarks to guests.

Mineral exploration and mining sector at a crossroads PDAC and Oreninc launch the State of Mineral Finance 2019: At the Crossroads report at the start of the PDAC 2019 Convention in March. The report shows that exploration spending jumped more than 30% in Canada and almost 20% globally in 2018. However, the report highlights that financing weakened overall, stalling the investment rebound that emerged over the previous two years as global funding for exploration financing dropped 50% year-over-year.

“The mineral exploration and mining industry is still feeling the effects of declining investment across the world, and despite earlier signals that the worst of the downturn was behind us, investor confidence and spending hasn’t fully returned,” says PDAC President Felix Lee. The report indicates that Canada was not immune but better shielded from declining investment in 2018 as explorationspecific financing fell by roughly half the global decline at around 25% year-over-year. Also notable in 2018 was the +$500 million increase in funds flowing to exploration projects in Africa and Latin America.

NRCan projects Canadian exploration expenditures to drop Shortly after the PDAC Convention, Natural Resources Canada (NRCan) releases estimates indicating that 2019 exploration expenditures are projected to decline by roughly 7% across Canada, versus the year prior. Most alarming in NRCan’s estimates are the significant 20% and 30% spending drops in Yukon and the Northwest Territories, respectively.

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State of Mineral Finance 2019: At the Crossroads

PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA

PDAC welcomes Federal Budget 2019 Building on the 2018 Fall Economic Statement, PDAC is encouraged by the Federal Government’s 2019 Budget release in late March that includes measures aimed at helping Canada’s mineral sector enhance its competitiveness and features its global leadership position.

Federal Budget 2019 featured provisions that align with PDAC’s budget recommendations, including investments in Canada’s Arctic and northern regions, skills development, training and apprenticeships, and Indigenous Communities.

Budget 2019 confirmed tax measures, including the Accelerated Investment Initiative and the much celebrated five-year extension of the Mineral Exploration Tax Credit (METC). The extension of the METC until March 31, 2024 is the first multi-year renewal of the METC since its inception in 2000, something PDAC had long championed.

OTHER HIGHLIGHTS FOR THE MINERALS SECTOR INCLUDE: • An increase in the allocation of the National Trade Corridors Fund to northern regions by up to $400 million over eight years, starting in 2020–2021, for a total of $800 million to support infrastructure development.

• Enhanced funding to support planning by the Government of Northwest Territories for the proposed Taltson hydroelectricity expansion project.

• Additional funding to the Canadian Northern Economic Development Agency for its current economic development program.

• Funding for northern and Arctic communities for education and economic development programming.

• Investments in initiatives to support universal high-speed internet in rural, remote and northern communities.

• Funds for Crown-Indigenous Relations and Northern Affairs Canada to create the Northern Abandoned Mine Reclamation Program.

• Initiatives aimed at supporting reconciliation with Indigenous Peoples.

• Investments in Indigenous communities to work towards addressing gaps in socio-economic conditions and education.

• Investments in skills training, apprenticeship programs for skilled trades, and Indigenous education and training.

Federal Government appoints ombudsperson

In early April, International Trade Diversification Minister Jim Carr announces the appointment of Sheri Meyerhoffer as Canada’s first Ombudsperson for Responsible Enterprise (CORE). Minister Carr also announces a legal review to consider Canada’s legislative and policy framework regarding responsible business abroad, including an assessment of the application of the Inquiries Act to consider whether to provide the CORE with the tools to compel evidence.

PDAC continues to advocate on behalf of its members for a CORE with a mandate for collaborative dispute resolution using joint fact-finding, and does not support a CORE that is quasi-judicial with powers to compel documents or witnesses. A CORE with a mandate that is non-judicial and focused on joint-fact finding is fundamental to ensuring the CORE is truly constructive, solutions-oriented and credible.

Furthermore, the CORE should apply to all Canadian enterprises operating abroad and not just to three sectors.

PDAC SHAPES ONLINE CONVERSATIONS, NAMED TOP DIGITAL INFLUENCER With a score of 85%, PDAC is named the top Mining-Technology.com’s list of digital mining influencers in the first quarter of 2019.

GlobalData analyzed and ranked individuals and organizations from around the world who are active online and involved in mining.

Launch of new online community for venture-listed companies

The TMX Group launches a new online platform called the TMX Matrix to help investors discover emerging growth companies. Customizable company pages take the mining investor beyond traditional financial metrics with real-time quotes, financing activity, analytics, news, and rich custom content like videos and presentations.

Since its launch, over 200,000 investors have accessed the platform to view company profiles, market data, financing details, and additional company-uploaded materials.

Mining expenditure review table PDAC and Canadian Revenue Agency (CRA) collaborate to tackle the challenges related to Canadian Exploration Expenses (CEE). As a result, CRA publishes an extensive table to help clarify eligibility of various expenses, which we hope will benefit our members.

Amendments proposed to the Excise Tax Act Finance Canada proposes amendments to the Excise Tax Act (ETA) in May, coming on the heels of a prior proposal and consultation process in mid-2018. Amendments address a 2018 recommendation by PDAC to maintain the current “related tests” for companies operating through subsidiaries. PDAC submits another letter to Finance, highlighting the mineral industry’s concerns with the current proposal.

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PDAC LAUNCHES NEW CLIMATE CHANGE WEB PAGE PDAC develops and launches a new web page on climate change. It includes information about government legislation, a Greenhouse Gas (GHG) emissions calculator to help exploration companies predict their emissions, along with case studies, and a guidance on how to reduce GHG emissions at exploration sites.

OSC takes action to reduce the burden on mining issuers

The Ontario Securities Commission (OSC) announces in June that mining issuers can request reviews of public technical disclosure before filing a preliminary short-form prospectus. PDAC advocated for this change and applauds the OSC for its efforts in reducing regulatory burden on issuers.

“This initiative will provide greater deal certainty to Ontario mining issuers, helping them avoid potentially costly and disruptive delays in the offering process,” says Sonny Randhawa, OSC Director of Corporate Finance.

PDAC ENGAGES IN CHANGES TO PROJECT REVIEWS PDAC continues its active engagement in changes to project reviews in Canada through Bill C-69, Impact Assessment Act. Activities include an appearance before, and a written submission to, the Senate Standing Committee on Energy, the Environment and Natural Resources (ENEV), as well as numerous formal responses to Discussion Papers concerning regulations for the new Act.

PDAC engages in changes to Fisheries Act In support of mineral exploration, PDAC actively engages throughout the year in Bill C-68, which proposes amendments to the Fisheries Act. Involvement includes a submission to the Senate Standing Committee on Fisheries and Oceans (FOPO) and formal responses to Discussion Papers concerning the development of regulations for the Act.

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PDAC LAUNCHES GENDER DIVERSITY AND INCLUSION GUIDANCE To assist junior exploration and mining companies to improve gender diversity and inclusion in the workplace and in a community setting, PDAC launches “Gender Diversity & Inclusion: A Guide for Explorers”. The resource provides information and practical tools for implementing strategies that cultivate inclusive and diverse environments within companies and the communities they engage within and operate.

PDAC’s Diversity & Inclusion Working Group, comprised of 30 industry experts and leaders from 25 different organizations, collaborated in the development of the Gender Diversity and Inclusion guidance. The guidance becomes available as a standalone document on the PDAC website, and as a new chapter in the e3 Plus Social Responsibility Toolkit.

PDAC to host the Frank Arnott—Next Generation Explorers Award

PDAC signs on to host the inaugural Frank Arnott— Next Generation Explorers Award focused exclusively on bringing together the education and mineral resource sectors to address key industry challenges around the utilization and interpretation of exploration-relevant data.

The Frank Arnott challenge provides a means for geoscience students to “bridge the real world skills gap” by working collaboratively on an unstructured problem that will hone both their university-acquired and collaborative group skillsets on relevant applications used in the minerals exploration industry. The finalist presentations and awards ceremony will take place at the PDAC Convention starting in 2021.

Gender Diversity and Inclusion: A Guide for Explorers

ADDRESSING CANADA’S DECLINING MINING COMPETITIVENESS In July at the Energy and Mines Ministers’ Conference (EMMC) in Cranbrook, British Columbia, industry leaders propose recommendations for government action through the Canadian Minerals and Metals Plan (CMMP). The Canadian Mineral Industry Federation (CMIF), of which PDAC is a co-chair, proposes the following recommendations in support of the CMMP’s ambitious strategic directions: 1. Economic Development, Regulatory Certainty and Investment Competitiveness These include the effective and efficient regulation of the mining industry, such as sound implementation of the new Federal Impact Assessment Act, appropriate access to prospective lands, and continued and expanded investments in remote and northern infrastructure. Additionally, it is important that a strategic review of Canada’s tax regime be conducted with the aim of augmenting Canada’s investment attractiveness.

2. Advancing the Participation of Indigenous Peoples in the Minerals Sector Governments can support enhanced participation of, and partnerships with, Indigenous communities in the sector through foundational social investments in areas such as health, education and housing, and by providing funding for skills training and entrepreneurship to assist Indigenous Peoples in securing employment and business development opportunities generated by the industry.

Governments should also focus on adequately discharging its duty to consult.

3. Environment Addressing climate change while preventing carbon leakage is critical to ensuring Canada’s “best-in-class” mineral industry becomes a supplier of choice to meet global demand for raw materials in the most sustainable way possible.

Respecting the country’s biodiversity also continues to be a priority for the sector, and ensuring appropriate approaches to conserving species at risk will play a pivotal role in Canada’s exploration and mining future.

4. Science, Technology and Innovation The Federal Government should expand rigorous geological studies across Canada, particularly for mapping of remote regions in greater detail. Innovation, in everything from autonomous vehicles to mine electrification, is increasingly important to the sector. By investing in new exploration techniques and technologies, and providing financial support to catalyze private sector innovation investments, real progress can be made in energy efficiency, environmental protection and business productivity.

5. Communities Increasing collaboration between governments, industry and educational institutions to ensure new entrants to the mineral industry have the required skills is particularly important. It is also essential that governments work together to enhance support for initiatives to address barriers to diversity and inclusion in the mineral exploration and mining sector.

6. Global Leadership The Federal Government should continue to work with the private sector, including Canadian exploration and mining companies operating abroad, to leverage Canadian development activities and realize better outcomes for communities.

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Proposed changes to Migratory Birds Convention Act Expanding At-The-Market (ATM) Access The Canadian Securities Administrators (CSA) puts forth efforts to make ATM financing practical in Canada. CSA had proposed certain amendments to NI 44-102 (Shelf Distributions) to codify exemptions related to certain prospectus requirement into securities law.

PDAC responds to CSA’s public consultation on the proposed changes with recommendations that aim to ensure the ATM regime is an effective financing mechanism for all mineral industry issuers, including that ATM issuances should not be limited by a 25% Daily Cap (based on average volume traded) as proposed by CSA as it would result in excessively protracted timelines to raise capital for mineral industry companies, particularly for small-to-mid sized issuers. In addition, PDAC suggests that CSA consider the possibility of creating an ATM prospectus exemption.

PDAC makes a submission on Environment and Climate Change Canada’s proposed changes to the Migratory Birds Regulations (MBRs) and potential impacts on exploration projects across Canada.

INCREASED TAX ON STOCK OPTIONS PROPOSED Finance Canada proposes to limit stock option compensation by changing the tax treatment for options exceeding $200,000 per year. Finance recommends that: “A $200,000 annual limit will apply to employee stock option grants (based on the fair market value of the underlying shares at the time the options are granted) that can receive tax-preferred treatment under the current employee stock option tax rules”.

Canadian Controlled Private Companies (CCPCs) will be exempt from the new treatment. Public comments were sought to identify other companies (NON-CCPCs) that should be exempt. PDAC recommends companies generating less than $100 million in revenue be exempt.

PDAC engages in Climate Change Policy

Greenhouse gas (GHG) emissions legislation and policy continues to evolve in Canada and PDAC engages on the legislation and co-signs a submission with associations from various sectors on the Clean Fuel Standard. PDAC also makes a submission in response to government Discussion Paper, Carbon Pollution Pricing: Options for a Federal GHG Offset System.

CAPACITY-BUILDING FUNDING FOR INDIGENOUS COMMUNITIES To support PDAC’s priority of enhancing the participation by Indigenous Peoples in the mineral exploration and development sector, PDAC develops and launches a comprehensive online catalogue in August of all available federal, provincial, and territorial government capacity-building support programs that can serve to facilitate Indigenous engagement with the mineral development sector, and to contribute to active participation in related activities. There is no similar comprehensive compendium of cross-jurisdictional programming in Canada currently available to the public.

Organized by jurisdiction and spanning all stages of the mineral development cycle, the programs in the online tool outline all available programming and funding for consultation capacity, skills and job training, and economic development.

IMPROVING ACCESS TO THE TRADE COMMISSIONER SERVICE PDAC engages with Global Affairs and Canada’s Trade Commissioner Service (TCS) to identify potential challenges regarding application of TCS “client services” to Canadian junior exploration companies operating overseas. This results in a research report by the TCS on the issue and to demonstrate the value of Canadian exploration companies operating abroad.

Liberals win minority in Federal Election Justin Trudeau is re-elected as Prime Minister at the end of October. PDAC extends congratulations to all elected MPs and vows to work collaboratively with government on high-priority matters that affect the sector, such as responsible access to land, sound fiscal policy and regulatory certainty that supports investment in Canada, and improvements to discovery rates of the minerals and metals that are essential to everyday life and support a low carbon future.

“Canada is a mineral exploration and mining nation, and our sector generates significant economic and social benefits in remote communities, Indigenous communities, and large cities across the country,” notes PDAC President Felix Lee. “In order to maintain the opportunities provided by our industry, government support is critical.”

Mineral exploration and mining in Canada employs more than 630,000 workers, contributes more than 5% to the GDP ($97 billion), and is the largest private-sector industrial employer of Indigenous peoples in the country, as well as being a key partner of Indigenous businesses.

PDAC LAUNCHES NEW BLOG FOR GEOLOGISTS PDAC’s Geoscience & Innovation Committee launches a blog forum in November to engage members in an array of topics supported by guest authors to write about areas of familiarity within the Canadian geoscience and innovation space. The first post written by committee member Volker Möller looks at rise in popularity of QGIS as a standard GIS platform in Canada.

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PDAC 2019 Convention: PDAC Convention exceeded 25,000 attendees for second straight year The 87th edition of the PDAC Convention—the world’s premier mineral exploration and mining event—brought together over 25,800 prospectors, students, geologists, government officials, investors, analysts and mining executives from more than 130 countries.

PDAC was also pleased to host Canadian Prime Minister Justin Trudeau who spoke to an audience of 300 invited guests with outgoing PDAC President Glenn Mullan. The conversation with the Prime Minister centred on the Government’s support for Canada’s mineral sector through the recent renewal of the Mineral Exploration Tax Credit (METC) for five years, along with our leadership in Indigenous partnerships, responsible exploration, and how our sector can remain competitive on the global stage.

Photos: envisiondigitalphoto.com ???

“After my 44th straight year attending the PDAC Convention, the enthusiasm I saw from exhibitors and attendees in 2019 was among the best yet,” said Mullan. “Although we continue to face economic challenges and uncertainty, the mineral exploration and mining industry is experiencing a renaissance and renewed sense of confidence, once more highlighting its resilience.”

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PDAC 2019 HIGHLIGHTS • IMMS: PDAC, in partnership with the World Economic Forum, hosted the International Mines Ministers Summit (IMMS) for the fourth year, bringing together 24 Ministers responsible for mining from around the world. This year’s summit focused on the future of responsible mineral supply chains.

• CMMP and Canada Day: The Canadian Minerals and Metals Plan (CMMP) was officially launched to position Canada as the leading mining nation and to lay the foundation for lasting success at home and abroad. The inaugural Canada Day had sessions on diversity, Indigenous leadership, investment, innovation, clean technology and the future of the sector.

• Diversity: As part of the Sustainability Program, sessions examined gender diversity and inclusion in the workplace, as well as in the community setting. The sessions were followed by the Mining for Diversity Reception.

• PDAC 2019 featured more than 1,100 exhibitors, with over 500 at the Investors Exchange and another 600 at the Trade Show. After two years of sold-out exhibitor space and long waiting lists, Trade Show North was expanded to accommodate the growing demand.

• Attendees had an opportunity to attend 13 in-depth Short Courses led by industry experts, including: Applied structural geology of gold and base metal bearing hydrothermal mineralizing systems; Concepts and application of machine learning to mining geoscience; Disclosure do’s and don’ts; Fundamentos de estimación de recursos minerales (new for PDAC 2019 and instruction in Spanish only); Geology, genesis, and exploration for magmatic and magmatic-hydrothermal ore deposits; Geophysical and geochemical imaging of the continental upper mantle for mineral systems regional targeting; Health and safety in mineral exploration; Holistic exploration in covered terranes; Mining financial modeling; Recognizing the impact of political risk on mining operations; Reporting and benchmarking resource projects; Spectral geology; and The art and science of effective community engagement.

• Attendees enjoyed continuous networking opportunities— 600 people celebrated at the sold out Awards Gala & After Party where six industry leaders were honoured in recognition of their outstanding contributions to the minerals and mining industry, and the Grand Finale brought attendees together to celebrate the success of PDAC 2019.

PROGRAMS A highlight of the PDAC Convention, the Indigenous Program once again brought the mineral sector together with Indigenous communities and companies to exchange ideas, share information and network.

The platform has evolved into an important platform for fostering cooperative, respectful and mutually-beneficial relationships between Indigenous communities and industry. The 2019 Indigenous Program consisted of four sessions: 1 The mineral industry and Indigenous communities: Canadian and international experiences 2 The Aboriginal Forum: Innovative partnerships 3 Indigenous law and regulatory frameworks: The evolving landscape 4 Aboriginal participation in the mineral industry: Collaboration, training and engagement

Celebrating its 10th anniversary, the Sustainability Program, formerly the CSR Event Series, featured presentations and panel discussions highlighting key aspects of sustainable development, social and environmental performance. Attendees took part in 14 sessions on such topics as: Biodiversity and the future of the mining industry; Social license: A data-driven strategy; Gender diverse and inclusive workplaces; Designing sustainable prosperity; and Mining and climate change: Exploring drivers, trade-offs, and specific tool for understanding climate change risks and opportunities.

With investor confidence slowly gaining traction across the mineral industry, the Capital Markets Program provided attendees with discussions and expert analysis on the latest economic developments shaping the mineral sector. In total, 10 sessions were featured that focused on an array of topics, including: The value of human capital; Financing the mineral industry: Investment banker perspectives; Electrification revolution: EVs, energy storage and commodity inputs; M&A and consolidation in the mineral industry; and Capitalizing on the boom-and-bust cycle.

More than 1,050 students took part in the Student & Early Career Program, which continues to offer young professionals an opportunity to connect with industry leaders and peers from all over the world.

Students had access to an array of networking sessions and events, including the Student-Industry Networking Luncheon, Impress for success workshop, and the Flash Mentoring event that for the second year provided students with an opportunity to sit down in person and discuss their career objectives with leading industry professionals.

CHANGING OF THE GUARD The PDAC Convention is where a PDAC Presidency commences and ends. Glenn Mullan handed over the reigns to the association’s 37th President, Felix Lee (featured on page 14). PDAC loudly applauds Glenn for his dedication and tireless work on behalf of the sector and association over the past number of years, and warmly welcomes Felix in his new role.

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PDAC 2019 CONVENTION HIGHLIGHTS

25,843

Attendees

Outside of Canada the largest number of attendees came from: USA, Australia, United Kingdom, Mexico, Peru, Chile, Brazil, Argentina, South Africa, Germany, China 29.6% 132 1,054 >500 359 47

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International attendees Countries Students Self-identiďŹ ed Indigenous attendees Media Sponsors

INVESTORS EXCHANGE

531 497 19

Booths

Exhibitors Prospectors Tent

2,510 INVESTORS

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TRADE SHOW & TRADE SHOW NORTH

1,020 Booths

579 69

CORE SHACK

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Exhibitors

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Exhibitors Government exhibits

PRESENTATIONS & WORKSHOPS 19 13 44 117 778

Technical Sessions Short Courses Presentation & Reception Rooms Corporate Presentation Forums for Investors Speakers

AWARDS

PDAC

The PDAC was pleased to announce the 2019 award recipients in six categories for their outstanding leadership and contributions to the mineral exploration and mining sector.

Recipients received their awards and were celebrated at the Awards Gala & After Party during the PDAC 2019 Convention on March 5 at the Fairmont Royal York Hotel.

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MARY-CLAIRE WARD GEOSCIENCE AWARD WINNER This year’s recipient of the Mary-Claire Ward Geoscience Award is Andrew Steiner of the University of British Columbia.

Andrew received the award for his research that aims to map auriferous fluid pathways, identify the salient geological controls

on fluid flow, and assess the physiochemical evolution of ore fluids in the CTGDs of the Nadaleen trend, Yukon. Detailed geology maps of the deposit and surrounding areas were made, and a comprehensive structural study was undertaken. Ore fluid pathways were interpreted within this geological framework to establish the timing of Au-mineralization relative to deformation events, and to assess the significance of potential geologic controls on fluid flow.

Andrew received his award at the Student-Industry Networking Luncheon at the PDAC 2019 Convention. The award, comprising $5,000 and a certificate, is given annually and honours the memory of Mary-Claire Ward who died in 2004. Mary-Claire was the chair of the PDAC’s Geoscience committee, Chairman of Watts Griffis McOuat Ltd., and a Past President of the Geological Association of Canada.

She was a passionate advocate for the geosciences in Canada.

The intent of the award is to encourage and support a graduate student in Canada whose thesis contributes to our knowledge about the geological history of Canada. Mapping must be a significant component of the winning thesis.

The award is administered by the Prospectors & Developers Association of Canada (PDAC), the Geological Association of Canada (GAC), the National Geological Surveys Committee, the Canadian Geological Foundation, and Watts, Griffis and McOuat Ltd.

BILL DENNIS AWARD This award, named for a former president of the association, honours individuals who have accomplished one or both of the following: made a significant mineral discovery; made an important contribution to the prospecting and/or exploration industry.

Peregrine Diamonds Ltd. and BHP, Chidliak Team For the discovery of the Chidliak diamond district on Baffin Island, Nunavut Peregrine Diamonds Ltd. discovered the first kimberlites in the Chidliak diamond district of southern Baffin Island, Nunavut in 2008. By the time De

Beers Canada acquired the junior a decade later, 74 kimberlites had been discovered and a positive preliminary economic assessment (PEA) had been released showing that two of the kimberlites could support an operation producing 16.7 million carats over a 13-year mine life.

In the early 2000s, BHP Billiton focused its efforts on southern Baffin Island as a prospective area for diamond exploration. Although most agedating information suggested that the basement geology was not ideal to host economic diamond deposits, exploration manager Geoff Woad was sceptical of the studies and felt strongly that BHP should target the region. Looking to leverage its diamond exploration spending, BHP formed a strategic alliance with Peregrine to explore Baffin Island for diamonds and metals. After conducting a jointly-funded regional sampling program in 2005, enough kimberlite indicator minerals (KIMs) were recovered to justify a follow-up program.

In 2006, Peregrine took responsibility for sole funding, operating and property acquisition, leaving BHP with certain back-in rights. After a successful 2006 follow-up program, the first claims were

acquired in early 2007. The field program confirmed high diamond potential on the property. Chairman Eric Friedland kept the funding taps flowing during this period, while President Brooke Clements prioritized the project over all others during the tough equity markets of 2008.

By 2008, glacial till sampling had sufficiently outlined a target area where Peregrine initiated the first airborne geophysical survey. The diligent field crew combined geophysical interpretation and prospecting to identify the first three kimberlites at Chidliak on a real-time basis. The first kimberlite yielded a two carat gem quality diamond that same year.

Encouraged by the finds in 2008, BHP exercised its back-in rights to acquire a joint-venture interest and funded exploration programs for the next three years resulting in a rapid pace of kimberlite discovery.

When BHP decided to exit the diamond business in 2011, Peregrine purchased their entire 51% interest in the project for $9 million.

Peregrine also purchased BHP’s 2% retained royalty.

Persistent, methodical exploration paid off and by 2016 Peregrine had discovered a total of 74 kimberlites, the majority of which are diamondiferous. Today, it is now well-established that the Chidliak kimberlite field is hosted by old Archean terrain, confirming Woad’s early suspicions about the basement geology. Peregrine was able to hone in on the most prospective of the kimberlites and included two of them in a PEA released in mid-2018. The PEA outlines an open pit mine with a capital cost of $521 million, including a $95 million access road from Iqaluit, with an after-tax NPV of $669 million and an IRR of 31.2%.

In September 2018, De Beers Canada acquired Peregrine and all of its Canadian projects in a friendly deal priced at 24 cents per share, or $107 million. De Beers is planning to apply the “FutureSmart” approach to mining at Chidliak using innovative techniques developed by its parent Anglo American to shrink mining’s footprint and lower energy costs.

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DISTINGUISHED SERVICE AWARD This award recognizes an individual who has achieved one or more of the following: made a substantial contribution to mineral exploration and mining development over a number of years; given considerable time and effort to PDAC; made outstanding contributions to the mineral industry in the field of finance, geology, geophysics, geochemistry research, or a related activity.

Don Bubar For his contribution to building awareness of Indigenous issues among PDAC members, his support of geoscience education in Canada, and his exploration success During Don Bubar’s 40-year career as a geoscientist he has contributed to successful exploration in

Canada, and been a leading advocate for geoscience education. But his most enduring legacy may be his role in forging a better, more productive relationship between Indigenous groups and the minerals industry. As founder and head of PDAC’s Aboriginal Affairs committee, Don recognized the urgent need to bring the two groups together in dialogue about how exploration and mine development could support local communities through training, jobs, and business development.

Don graduated from McGill University with a B.Sc. in geology in 1977 and completed his M.Sc. at Queen’s University in 1981. He worked as an exploration manager for Aur Resources from 1984 to 1994 where, as Vice-President of Exploration, he helped guide the discovery of the Louvicourt copper-zinc

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mine near Val d’Or, Québec. He has been President and CEO of Avalon Advanced Materials since 1995, working to develop three advanced stage projects across Canada with the potential to provide critical metals and minerals for new technology applications.

Don was chair and co-chair of PDAC’s Aboriginal Affairs committee from its creation in 2004 until his retirement from the PDAC Board of Directors in 2013. During his tenure, the number of Indigenous participants at the organization’s annual convention grew exponentially and, in 2009, the PDAC signed a ground-breaking agreement with the Assembly of First Nations to promote participation of Indigenous people in the minerals industry. Through Don’s work, there is increased understanding by PDAC members about the importance of community engagement from the earliest stages of mineral exploration.

Don serves on the Advisory Board to the Faculty of Science at his alma mater McGill, and is a Director of the Northwest Territories and Nunavut Chamber of Mines. He has personally endowed three separate scholarships supporting at least six students annually at McGill and at Dalhousie University in Halifax.

In 2016, Don joined the Board of Mining Matters, a charitable organization with the mission to support geoscience education in the Canadian school system and increase awareness about the relevance of minerals and metals in modern society. In his latest role, he will advocate for Indigenous youth camps where the next generation of northerners will have the opportunity to explore career opportunities within the industry.

ENVIRONMENTAL & SOCIAL RESPONSIBILITY AWARD This award honours an individual or organization demonstrating outstanding initiative, leadership and accomplishment in protecting and preserving the natural environment, and/or in establishing good community relations during an exploration program or operation of a mine.

NexGen Energy For employing the latest technologies to reduce exploration’s environmental footprint and for fostering economic and social development in neighbouring communities through a variety of initiatives NexGen Energy, winner of the 2018 Bill Dennis Award for the discovery of the Arrow uranium deposit in Saskatchewan, has expanded its pursuit of excellence into the realm of environmental and social responsibility as Arrow advances towards development and production.

On the environmental front, the Vancouver and Saskatoon-based company is overhauling dated practices and implementing new technology to minimize its footprint. Directional drilling is testing several targets from a single location, significantly reducing the land disturbed by conventional drilling. At each drill site, centrifuges separate return water from mineralized cuttings to prevent contamination. Meanwhile, extensive studies are characterizing the existing environment to inform future planning, disturbed areas are being re-vegetated, and plans are underway to install a solar energy pilot project and construct energy efficient buildings.

NexGen is also leading the way in community engagement in northern Saskatchewan by introducing several initiatives designed to improve economic development, health and community well-being through sports and recreation. NexGen has focused on employment opportunities for La Loche and surrounding communities with a

rapidly increasing number of services and supplies being locally sourced. Through an alliance with the Breakfast Club of Canada, NexGen is feeding healthy breakfasts to over 1,100 students in three schools nearby. High school and post-secondary students are invited to explore different career options by participating in NexGen’s summer internship program, and qualify for bursaries to fund their university or college education. Over 29 students have completed this program since 2016. Additionally, youth have the opportunity to pursue active and culturally-rich lives as a result of ongoing sponsorships for local sport teams, music and dance clubs. Even the dogs are looked after: NexGen hosts a fostering program at its camp that gives homeless dogs a safe place to stay while they await adoption—some of which are adopted by NexGen’s staff.

The Arrow uranium deposit is expected to have a mine life of at least nine years, according to a pre-feasibility study completed in 2018. By offering hands-on work experiences and access to education, sports and cultural opportunities, NexGen is empowering the local population to build a positive future within their own communities and at the proposed mine. By implementing progressive environmental practices and devising innovative approaches to future challenges such as underground tailings storage, the company is ensuring the environment that surrounds them remains as unaltered as possible during exploration, development and mining.

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VIOLA R. MACMILLAN AWARD

SKOOKUM JIM AWARD

This award, which is named in honour of the PDAC’s longest serving president, is given to an individual or organization demonstrating leadership in management and financing for the exploration and development of mineral resources.

Recipients of this award have demonstrated exceptional achievement and/or service in a Canadian Indigenous-run service business for the Canadian mining industry or a Canadian Indigenous exploration or mining company, or have made a significant individual contribution to the mining industry.

Nemaska Lithium

Gordon Maxwell

The rapid growth of Nemaska Lithium exemplifies how swings in commodity markets can invigorate junior mining companies nimble enough to capitalize on them. When Nemaska started kicking rocks on the Whabouchi property in northwestern Québec in 2009, there were only a few grab samples and one significant lithium intersection—drilled almost 50 years previously—in the property’s exploration record. By successfully duplicating the historical results at a time when lithium was being recognized as a key component of cellphone batteries and other new applications, Nemaska was able to raise enough funds to finance further exploration of Whabouchi’s spodumene-bearing pegmatite zone.

Today, Nemaska is well underway on construction of a vertically integrated lithium operation, having raised a remarkable $1.1 billion through a combination of a bond offering ($455 million) a streaming agreement ($195 million) and a $454 million share issue partly taken up by the Québec government. The Whabouchi spodumene mine is expected to produce 213,000 tonnes of 6.25% Li2O concentrate annually that will be shipped to and processed at an electrochemical plant in Shawinigan to produce high-purity lithium hydroxide and lithium carbonate.

Nemaska is the brainchild of President and CEO Guy Bourassa, a lawyer with decades of experience in the mining industry. He negotiated the original acquisition of Whabouchi and went on to raise more than $150 million to develop the deposit to the point where Nemaska was able to secure

For his contribution to Canada’s mineral exploration and mining industry by helping to set the bar for drilling safety and community consultation Gordon Maxwell is a well-respected geologist and member of the

Sachigo Lake First Nation in Ontario. He is recognized for his leadership, dedication to health and safety, and talent for community consultation.

Born in Pickle Crow, Ontario, an abandoned gold mining town, Gord began his 39-year career as an exploration geologist for Noranda based in Thunder Bay. He has worked on projects across Canada and abroad for Noranda and its subsidiary Falconbridge, then later for Falconbridge’s successor Xstrata, and most recently for Glencore, which acquired Xstrata in 2013.

As a member of the Canadian Diamond Drilling Association (CDDA), Gord advocated for better risk management at the drill site. Drawing on his years of experience as an exploration geologist, Gord was able to contribute his knowledge of working alongside drillers to the discussion. He served on CDDA’s Western Safety group, and on the committee in charge of developing the Drilling Excellence Certification (DEC)—a new, higher standard for the drilling industry. For his contribution to health and safety in the field, Gord received the 2012 David Barr Award from British Columbia’s Association of Mineral Exploration (AME).

Gord also helped to set the bar for industry consultation with communities and Indigenous groups. When Xstrata was planning exploration around the Kidd Creek Mine in northern Ontario in 2008, Gord engaged in a clear, respectful and honest dialogue with the Wahgoshig First Nation, offering opportunities for community members to participate in the project. One of those opportunities was a six-month contract assisting the geological team. The woman selected for the contract went on to become the community’s environmental monitor for subsequent exploration, inspiring other Wahgoshig youth to consider applying for junior roles.

In 2010, Gord took on the demanding task of re-evaluating several closed mines Xstrata had inherited from Noranda. The exercise required coordinating teams of experts for every aspect of the revaluation from reprocessing thousands of diamond drill samples to resource modelling and project management.

Throughout his domestic and international career, Gord has demonstrated outstanding technical abilities, professionalism, and a commitment to safe and socially responsible exploration. He is a role model for Indigenous youth who aspire to a career in the industry.

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For demonstrating leadership in transforming a grassroots exploration property into a vertically integrated lithium operation in Québec that will provide a new source of supply for the surging lithium battery market

THAYER LINDSLEY AWARD This award recognizes an individual or a team of explorationists credited with a recent significant mineral discovery anywhere in the world.

Cardinal Resources For the 2014 discovery of the Namdini gold deposit in northeastern Ghana Despite some previous indications of gold mineralization, the Nangodi

off-take agreements for the mine’s production with several large end users worldwide. Bourassa also stickhandled development of a patented process to produce lithium hydroxide and lithium carbonate directly from spodumene, the key to building an operation that can compete with other lithium producers worldwide.

Global lithium demand grew about 17% in 2017 because of surging demand for the metal in batteries for applications ranging from cellphones to electric cars. The market is expected to expand even more significantly in the coming years as new technologies take hold. Nemaska’s large low-cost operation has the potential to produce 10% of the supply of battery-grade lithium hydroxide, currently the most sought after lithium compound.

The Whabouchi mine, located about 300 km north of Chibougamau near the Cree community of Nemascau, is expected to begin production in the second half of 2019 with 200 employees. The Shawinigan plant will come online a year later with 100 employees. Nemaska has signed an agreement with the Cree covering training, employment and revenue sharing and Nemascau has a significant equity stake in the junior.

Based on a 2018 feasibility study, Whabouchi has an after-tax NPV of $2.2 billion and an IRR of 56.0%. Reserves of 37 million tonnes grading 1.4% Li2O will support a mine life of 33 years. An even larger resource remains open, suggesting that the mine may provide the world with lithium for decades to come.

greenstone belt in northeastern Ghana was largely unexplored when Cardinal Resources, led by Archie Koimtsidis, decided to have a look.

The Perth-based company optioned the Namdini project within the belt in mid-2014 and immediately launched a small reverse circulation (RC) drilling program. The first holes intersected gold mineralization over respectable widths. Today, Namdini is considered one of the most significant gold discoveries in West Africa so far this century.

After Cardinal’s first successful exploration pass, encouraging results from subsequent RC holes gave the junior confidence to step out 600 metres along strike of the mineralized trend with its first diamond drill hole in 2015. The step-out intersected 87 metres grading 1.08 grams per tonne gold. On the strength of this, and other consistently positive results, Cardinal was able to raise AUD$5 million to further investigate the project in a tough financing environment for juniors. Soon after, several high profile investors, including New York-based VanEck, South Africa’s Gold Fields, and the Royal Bank of Canada, took positions in the junior and in mid-2017, Cardinal began trading on the Toronto Stock Exchange (TSX) to add to its ASX listing.

In the four years since drilling commenced, Cardinal has outlined one of the largest gold deposits discovered in West Africa since 2000. A 2018 preliminary feasibility study (PFS) indicates probable reserves of 4.76 million ounces of gold in 130 million tonnes grading 1.14 grams per tonne gold, plus another 6.5 million ounces of indicated resources. The deposit would support an open pit operation producing 361,000 ounces per year for 14 years at an all-in sustaining cost of US$769 per ounce. Namdini boasts an NPV of US$586 million and IRR of 38%, both after tax.

The location and characteristics of the Namdini deposit make it unique. Although Ghana is one of the Top 10 gold producing nations in the world, gold was never expected to be found in significant quantities in its northeastern regions where rocks are commonly concealed by the Volta River embayment. Secondly, unlike other deposits in West Africa’s Birmian gold province, which often resemble small pearls on a string, Namdini is a large, shallow standalone deposit.

The proposed mine development is expected to be a major source of new employment in northeastern Ghana—where there is limited commercial activity—and pave the way for geological interest in this previously underexplored region. By the third quarter of 2019, Cardinal expects to complete an already fully funded feasibility study that will form the basis for mine development.

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S-IMEW 2019 SMASHED 22

T

IT!

op geoscience students from across Canada were given the educational opportunity of a lifetime this past May when they participated in PDAC’s annual two-week StudentIndustry Mineral Exploration Workshop (S-IMEW) in Sudbury.

The program, now in its 13th year, is widely respected throughout the industry for its unique ability to take students from the classroom and into a world-renowned geological region of northern Ontario. S-IMEW provides students with access to exploration, drill and underground mine sites, as well as geophysical surveys, a smelter, presentations by industry leaders, and professional networking opportunities For the sector, S-IMEW plays an even greater role. As a skills shortage threatens to hit mineral exploration and mining over the next decade, programs such as S-IMEW provide an avenue to showcase the exciting careers available for geoscience students. Many S-IMEW alumni have gone on to have successful careers in Canada and around the world, with some coming full circle as volunteers to share their experiences with those coming up behind them.

All expenses for the workshop are covered thanks to the ongoing generosity of the sponsors, volunteers and PDAC.

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BEN EATON UNIVERSITY OF VICTORIA Q A Q A

24

Why did you choose to study geology?

The combination of multidisciplinary science, real-world applicability, and the sense of adventure and excitement testing your hypothesis in the mountains. The range of magnitudes, timelines and disciplines that are relevant in geology has continuously captured my interest and fueled my desire to study geoscience. Finally, I may be biased, but I have found the fellow students, professors, and industry mentors to be a hilarious, knowledgeable, supportive and outstanding community.

How would you describe S-IMEW to someone who isn’t part of the minerals and mining industry?

S-IMEW brings together 26 aspiring geologists to learn field skills, understand economics and social responsibility related to a career in Canada’s exploration industry.

The workshop provides an opportunity for geoscience students across Canada to form connections with other students and industry mentors, share their respective expertise and knowledge with each other, and learn relevant applicable skills from industry experts.

Q A Q A Q A Q A Q A

What was your favourite moment?

Exploration Mapping Day. We had been mapping a mineralized vein that required much bushwhacking and I got to experience my first Ontario swamp—a large two-foot-deep bog covered in a lovely foot of soft slush that came up to the mid-thigh. Once we all had fallen through twice we just went straight through it, and after an hour with half-frozen feet we broke out of the bush and came to our lunch spot, a beautiful old marble quarry in the sun to dry out our boots and practice our rock hammering skills.

What was your favourite day?

I was fortunate enough to have my birthday during S-IMEW on the field trip to Val-d’Or and Noranda. It was a perfect day road tripping with new friends, stopping at various outcrops to learn about the regional geology and mining history, dinner with mentors and industry professionals, and my fellow attendees and I decided to take it one step further to round out the birthday at a microbrewery in Val-d’Or. Shout out to Krishana and Ian Trinder for the road trip’s entertainment!

What advice do you have for future students considering a degree in geology?

Attend as many conferences and networking opportunities as possible (have business cards/ LinkedIn), and join a co-op and try to gain any relevant work or volunteer experience before you graduate. In terms of classes, use your electives for a minor that you enjoy and complements geoscience such as GIS, business, or computer science, and to work hard in mineralogy and petrography classes as they are the foundation to everything else in geoscience.

What was the most valuable take away from S-IMEW? Learning about the diversity of careers related to exploration and mining in Canada, and briefly getting to experience aspects of the careers through hands-on exercises, field trips and site visits. The workshop reinforced aspects of exploration I have been previously interested in and introduced new areas of interest I will pursue in the future.

What effects do you think S-IMEW will have on your career?

The network of fellow attendees (now friends), mentors, and industry connections will be vital to finding new opportunities and support moving throughout my career. Additionally, the industry-applicable skills and knowledge gained throughout the workshop will provide a relevant and transferable foundation for future work in exploration and geology.

S-IMEW had a greater focus on community relations and environmental practices than the classroom as well.

Q A Q A Q A Q A

Was there a speaker who inspired you?

If so, why?

Alan Coutts’ from Noront Resources at Dynamic Earth Welcome Reception was inspiring due both to his presentation and the audience of student attendees, organizers from Toronto, and industry professionals from Sudbury. Alan conveyed a palpable sense of excitement towards exploration that persisted throughout his years of experience, and an authentic commitment to social responsibility bringing the benefits of exploration in Canada to northern communities.

How was your first experience going into an underground mine?

It made me far more willing to look at opportunities to work underground than I had been previously, and I was amazed at all the logistics and coordination a mine required. The two-plus-metre thick mineralized vein with massive bornite at Coleman mine was an added bonus.

What did S-IMEW teach you that the classroom didn’t?

The most appreciable difference between S-IMEW and university is the classroom is taught by professors teaching with a research focus, whereas the workshop is intensive and taught by industry experts about the relevant topics in exploration, economics, geophysics and social responsibility. S-IMEW had a greater focus on community relations and environmental practices than the classroom as well.

Had you heard of S-IMEW prior to being nominated to it?

I had not heard of S-IMEW before the call for nominations at my university was announced. I will be encouraging other students to apply for the nomination for the years to come as the workshop has been one of my favorite and most beneficial experiences throughout my studies in geology.

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STEPHANIE WALMSLEY QUEEN’S UNIVERSITY Q A Q A Q A 26

Why did you choose to study geology?

I did not choose geology right out of high school. I first completed a business degree. After working for a few years, I decided to go back to school. I knew I wanted to do something in the science field, and I was fascinated by Earth history, earthquakes and mountains so I choose geology.

How would you describe S-IMEW to someone who isn’t part of the minerals and mining industry?

S-IMEW is a two-week gathering of highachieving, upper-year geology students from universities around Canada. Over the course of the workshop, students are exposed to a wide variety of mineral exploration topics, learning in the classroom and through field trips. Industry professionals volunteer their time to teach and mentor students in their field of expertise.

Students walk away from the S-IMEW experience with a broadened understanding of the Canadian mineral exploration industries in’s and out’s and perhaps a clearer plan for their future career.

What was your favourite moment?

I enjoyed collecting some really interesting rocks on the underground mine tour.

Q A Q A Q A Q A

What was your favourite day?

I enjoyed the Glencore day, visiting the exploration drill rig and learning about grade estimation.

What advice do you have for future students considering a degree in geology?

If you enjoy being outdoors, exploring and dealing with unexpected challenges, geology could be a great career choice.

Geology offers variety in your day-today life and requires constant learning.

It also allows you to combine another interest you may have into a career as a geochemist, geophysicist or an economic geologist, to name a few.

What was the most valuable take away from S-IMEW? One of the most common themes from speakers was the need to be flexible and take opportunities when they arise.

What effects do you think S-IMEW will have on your career?

I believe S-IMEW will provide opportunities throughout my career, because of the relationships formed with industry professionals and S-IMEW alumni.

2019 S-IMEW SPONSORS PREMIER SPONSOR Osisko Mining GOLD SPONSORS Abitibi Royalties Inc. Barrick Gold Corporation Foraco International SA Golden Valley Mines Ltd. Major Drilling International Inc. SGS Canada SILVER SPONSORS Agnico Eagle Mines Ltd. IAMGOLD Corporation SRK Consulting (Canada) Inc. Teck Resources BRONZE SPONSOR Yamana Gold Inc. CONTRIBUTING SPONSORS Karen Rees

Q A Q A Q A

How was your first experience going into an underground mine?

I have had the chance to go underground in my summer work, so it wasn’t my first time. However, it was my first time in Canada and in a Ni-Cu mine, so it was very interesting to see the differences in the mine design, safety and geology.

What did S-IMEW teach you that the classroom didn’t?

S-IMEW opened my eyes to the wide range of career options in mineral exploration. I also learned a lot about how the industry operates, the role of juniors vs. majors, and the economics behind mineral exploration.

Had you heard of S-IMEW prior to being nominated to it?

Yes, I was good friends with the previous Queen’s S-IMEW attendee. My university also advertises the workshop in an email to all students and faculty, so I was aware of it in first year.

IN-KIND SPONSORS Abitibi Geophysics Inc. Avalon Advanced Materials BWB Consulting Services CSA Global DeBeers Canada DGI Geoscience Inc. Eldorado Gold Lamaque El Olivar Imperial Falco Resources Exploration Services Geological Survey of Canada Geoscience North Geoscientists Canada Golden Valley Mines Ltd. Grenvyn Consulting Knight Piésold Consulting Lake Shore Gold Lamontagne Geophysics Ltd. LaSalle Exploration Corp.

Laurentian University Lucara Diamond Corp.

Magna Mining Corp.

Major Drilling International Inc. MERC, Harquail School of Earth Sciences Ministère de l’Énergie et des Ressources naturelles (MERN), Quebec Minalytix Mining Research Group Noront Resources Nova Mining Exploration Solutions Ministry of Energy, Northern Development and Mines, Ontario Orix Geoscience Power Metals Corporation Primero Proforma Adam Promotions Ronacher McKenzie Geoscience SGS Canada SOOP Strategies Sudbury Integrated Nickel Operations Sudbury Platinum Corp.

Teck Resources Vale Canada Ltd. Wallbridge Mining Company Ltd.

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THE CORNERSTONE OF A NATION To showcase and appreciate the vast contributions and impact of mineral exploration and mining, PDAC compiled data from every province and territory across Canada.

TOP 10

12

Indigenous people make up % of the labour force, and the mineral industry is the top private sector industrial employer of Indigenous peoples 28

MINERAL PRODUCTS Gold • Coal • Copper Potash • Iron Ore • Nickel Diamonds •Sand & Gravel Stone • Zinc •

The minerals sector directly employs

426,000 INDIVIDUALS

CANADA

And indirectly employs an additional

Canada’s mineral exploration and mining sector is a mainstay of the national economy that supports jobs and economic activity in every region.

208,000 INDIVIDUALS Together, direct and indirect employment exceeds

634,000 JOBS That’s 1 IN EVERY 29 JOBS in Canada Canadian exploration and mining companies have mining assets in over 100 countries worth nearly

$164 billion Canada produces some 60 minerals and metals at 200 mines and 7,000 sand, gravel and stone quarries a year worth nearly

$44 billion Domestic exports of mineral and metal products

$97.5 billion

The industry boasts the highest wages and salaries of all industrial sectors in Canada 29

BRITISH COLUMBIA Vancouver is a leading centre of expertise for mineral exploration and mining and is home to over 1,200 exploration companies.

$318.1 million invested in mineral exploration projects

$182.4 million

in exploration and $79 deposit appraisals

700

exploration companies are headquartered in British Columbia

million in

Exploration and deposit appraisal expenditures grew 7.16% from 2017 to 2018

$368 million Anticipated revenue paid to the provincial government by mineral exploration and mining from 2018 to 2019

38,000

More than people employed in mineral exploration and mining

2⁄3

The mineral sector employs over of all Indigenous people who are employed in the extractives sector

ALBERTA Home to the Western Canada Sedimentary Basin, underlying most of Alberta and containing vast mineral wealth.

4,700 MORE JOBS

(an increase of 4.8%) in mineral exploration and mining, including quarrying and oil and gas extraction in 2017

5.6%

of Canadian minerals are produced in Alberta

$2.4 billion $4.3 million $32.7 million $93.9 million worth of minerals produced

Saskatchewan accounts for 30% of the world’s potash production

Potash contributes

The province has over

18,000 JOBS in the minerals sector

$5.52 billion

to GDP

Mineral exploration and mining is the 3rd largest industry in the province

Mineral exploration and deposit appraisal expenditures

$165 million The value of mining

$5.7 billion

Value of exploration

Value of deposit appraisal

Value of mine complex development

30

SASKATCHEWAN Consistently ranked one of the world’s Top 10 jurisdictions for investment attractiveness, Saskatchewan is the global leader in potash and uranium production.

37.7

Makes up % of the country’s zinc output

MANITOBA Over the last 100 years, Manitoba’s minerals industry has developed over 70 mines and is the 4th largest primary industry in the province.

MANITOBA ALSO MAKES UP 10.1% 2.1%

3,808kg

Produced of gold in 2018

of Canada’s nickel Mineral exploration and deposit appraisal expenditures

10,000

Over PEOPLE employed in mineral exploration and mining

On a global level, Ontario ranks among the TOP 10 regions for exploration spending and production of platinum group metals (PGMs) and nickel

90%

of Canada’s gold

6.3%

12.7%

of Canada’s copper

of Canada’s silver

$54.7 million

151,000

More than people employed in mineral exploration and mining

Indigenous employment accounts for 11.2% of mineral exploration and mining jobs in Ontario

QUÉBEC One of the top jurisdictions in Canada for exploration and deposit appraisal expenditures.

of mining GDP stays in Ontario

1⁄5

$583 million 253,000

invested in mineral exploration and deposit appraisal in 2018 alone

of Canada’s mining output comes from Québec

active mineral claims

200

Mineral exploration and deposit appraisal expenditures total

Over mineral exploration projects

$593 million

39

The value of mining production in

mine sites operating in Ontario

Ontario

in 2018

$10.1 billion

Mineral exploration and deposit appraisal

$656.7 million

expenditures total

$3.05 billion $9.47 billion

invested in mining, with in total mineral shipments

ONTARIO’S TOP MINERALS: Gold • Palladium • Platinum Copper • Zinc • Diamonds Nickel • Cobalt • Silver Uranium (refining)

More than

103,000

people employed in mineral exploration and mining

ONTARIO The country’s centre for mineral exploration and mining financing, as well as Canada’s largest jurisdiction for mineral production, employment and investment.

Québec is ranked as one of the TOP 10 jurisdictions in the world for investment attractiveness

31

$6 million in minerals produced

PRINCE EDWARD ISLAND

NEWFOUNDLAND & LABRADOR

The two major resources P.E.I. are the soil and the sea. Mineral resources have not been discovered in commercial quantities, although trace deposits of coal, uranium, vanadium and other minerals exist.

Produces more iron ore than any other jurisdiction in Canada, is second only to Ontario in nickel production, and third in copper production behind Ontario and British Columbia.

116 kilotonnes of sand and gravel produced in 2017

NOVA SCOTIA Over the past 300 years Nova Scotia has supplied more than 20 different mineral products to domestic users and export markets around the world.

665 kg of gold produced

51,479 tonnes of nickel produced

NOVA SCOTIA’S TOP MINERALS

3,755 jobs in the minerals sector

Gypsum • Salt Limestone

$2.9 billion worth of minerals produced Value of mine complex development

Estimated field expenditures by the mineral exploration sector

$512.2 million

$17.3 million

Mineral development expenditures totals

$38.5 million 228

About companies and individuals hold exploration interests (licences or options) in the province

Value of exploration

Produced

2,392 kg of gold in 2018

That includes: 3 major, 11 junior, and 66 private companies, plus 148 individuals

$35.9 million Value of deposit appraisal

$1.3 million NEW BRUNSWICK

Mineral exploration and deposit appraisal expenditures

New Brunswick’s complex geological past has given rise to a diversity of metallic mineral resources.

$18.1 million 6,180 jobs in the minerals sector

32

The value of mineral production

$392.8 million

NEW BRUNSWICK’S TOP MINERALS: Zinc • Lead Metal smelting

YUKON The Yukon has a rich mineral exploration and mining history dating back to the famous Klondike Gold Rush, and is ranked as one of the Top 10 jurisdictions in the world for investment attractiveness.

Value of exploration expenditures

$109.4 million Value of deposit appraisal

$80.6 million Value of mine complex development

194

$14.2 million

exploration and extraction businesses in the region

Mineral exploration and deposit expenditures total

$172 million

Of Yukoners working in the goods producing sector, had jobs in the minerals industry

Mining and quarrying businesses reported

19.6%

$479.4 million

in revenues in 2016, accounting for 18.4% of all Yukon business’ gross revenues

Mineral exploration and mining accounts for

12.9%

of Yukon’s GDP

NUNAVUT Representing one-fifth of Canada’s land mass, Nunavut has tremendous resource potential and is a place of significant opportunity.

Total mining value is

N.W.T. is ranked as one of the TOP 10 jurisdictions in the world for investment attractiveness

$8.4 billion

In 2017 Nunavut’s mineral exploration and deposit expenditures were

$110.7 million Nunavut’s total mining production for 2018 is estimated at

Total estimated mining production in 2018 valued at

$2.11 billion $309.1 million in mine complex development

$1.164 billion, up $125 million (12%) from 2017

OF THIS Gold production value is

$595 million Iron ore is projected at

$564 million

NORTHWEST TERRITORIES

Silver production value is

$5.1 million

With three operating mines, the N.W.T. is the country’s dominant source of diamonds.

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2019 PDAC MEMBERSHIP STATISTICS INDIVIDUAL MEMBERS (excluding students)

5,528

Canada 3,558 NT NU YT BC AB SK MB ON QC PE NB NS NL

64%

21 12 34 832 124 69 57 1,932 323 1 38 63 52

USA 607

11%

International 1,363 Latin America / Caribbean Europe Australia Africa Asia

25%

548 297 178 171 169

PDAC MEMBERSHIP TREND Individual members Core Regular Senior Student Life Total Variance (%)

34

2009 2,061 1,976 509 606 208 5,360 -16%

2010 2,185 2,408 501 933 273 6,300 18%

2011 2,432 3,283 644 1,048 288 7,695 22%

2012 2,524 3,891 768 1,543 290 9,016 17%

2013 2,540 3,827 832 1,662 293 9,154 2%

2014 2,355 3,124 808 1,407 289 7,983 -13%

2015 2,068 2,794 792 1,228 283 7,165 -10%

2016 1,805 2,450 733 1,114 294 6,396 -11%

2017 1,636 2,713 688 1,092 396 6,525 2%

2018 1,619 2,981 728 1,074 406 6,808 4%

2019 1,603 2,767 733 897 425 6,425 -6%

1,091 75%

Canada NT NU YT BC AB SK MB ON QC PE NB NS NL

8%

USA

17%

INT 182 Europe 61 Australia 54 Latin America / Caribbean 32 Asia 19 Africa 16

897 90%

Corporate members Class A Class B Class C Class D Class E Junior Exploration Non-Mining Total Variance (%)

2009 17 4 15 16 8 561 374 995 4%

2010 19 5 16 19 18 545 402 1,024 3%

2011 26 10 20 22 17 577 430 1,102 8%

2012 24 8 23 24 15 651 525 1,270 15%

2013 25 9 22 21 18 583 556 1,234 -3%

2014 23 5 9 26 12 449 537 1,061 -14%

2015 20 9 10 18 12 384 507 960 -10%

2016 16 8 9 15 11 303 514 876 -9%

CORPORATE MEMBERS 822 2 4 2 290 32 16 10 339 102 6 9 10 87

STUDENT MEMBERS Canada NT NU YT BC AB SK MB ON QC PE NB NS NL

813 1 1 54 43 24 34 503 80 16 43 14

5%

USA

5%

INT 43 Europe 19 Latin America / Caribbean 16 Australia 4 Africa 2 Asia 2

2017 18 6 9 14 14 355 492 908 4%

2018 19 7 10 13 16 423 525 1,013 12%

41

2019 19 7 8 13 15 422 607 1,091 8%

35

PROSPECTORS & DEVELOPERS ASSOCIATION OF CANADA 800-170 UNIVERSITY AVENUE, TORONTO, ONTARIO M5H 3B3 PHONE 416.362.1969

INFO@PDAC.CA PDAC.CA

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