Friday 18th October 2019

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Posts tagged ‘nunavut’

Paved with promises II

October 9th, 2019

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

by Greg Klein

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

The Chinese government’s majority-held Izok Corridor project
would benefit from Canadian infrastructure. (Photo: MMG Ltd)

 

This is the second of a two-part series. See Part 1.

Canada would gain a deep-water arctic port, Nunavut would get its first road out of the territory and mineral-rich regions would open up if two mega-proposals come to fruition. Recent funding announcements to study the Northwest Territories’ Slave Geological Province Corridor and Nunavut’s Grays Bay Road and Port projects could lead to a unified all-season route from a highway running northeast out of Yellowknife to stretch north through the Lac de Gras diamond fields, past the Slave and Izok base and precious metals regions, and on to Arctic Ocean shipping.

In mid-August, as federal and NWT elections neared, representatives from both levels of government announced a $40-million study into a possible 413-kilometre all-season route linking the NWT’s Highway #4 with a proposed Nunavut road. The project would also extend the NWT electrical grid to the Slave region, which straddles both sides of the NWT-Nunavut border.

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

Isolated Grays Bay could become an arctic shipping hub,
helping fulfill a dream that dates back to John Diefenbaker
and, not exactly a contemporary, Martin Frobisher.
(Photo: Grays Bay Road and Port Project)

That same month the federal and Nunavut governments, along with the Kitikmeot Inuit Association, announced $21.5 million to study a possible 230-kilometre Nunavut section. That proposal includes building a deep-sea port at Grays Bay, about midway along the Northwest Passage. Supporters hope to reach the “shovel-ready” stage in two to three years.

A “champion and proponent” of the project, KIA president Stanley Anablak said, “We know that this is only the first step, but if it is constructed, this infrastructure project will be a game-changer with respect to improved community re-supply, marine safety, arctic sovereignty, regional economic development and international investment.”

KIA perseverance helped revive the proposal after Ottawa refused to provide majority funding for the $527-million estimate in April of last year, 18 months before the federal election.

Another supporter is MMG Ltd, with two advanced base metals deposits in the region: Izok holds 15 million tonnes averaging 13% zinc and 2.3% copper, while High Lake shows 14 million tonnes averaging 3.8% zinc and 2.5% copper.

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

The Nunavut portion of a grand trans-territorial proposal.
(Map: Grays Bay Road and Port Project)

The Kitikmeot region “hosts some of the world´s more attractive undeveloped zinc and copper resources,” MMG stated. “However, located near the Arctic Circle and with no supporting infrastructure, these resources have remained undeveloped since their discoveries roughly 50 years ago.”

But could a supposed nation-building project become a nation-buster, compromising sovereignty for the sake of another country’s new silk roads? The proposal’s main beneficiary “will be the Chinese government, more so than the government of Nunavut or the government of Canada,” Michael Byers told the National Post in August.

About 26% of MMG stock trades on the ASX. China’s state-owned China Minmetals Corp owns the rest.

Byers, a political science prof and holder of the Canada Research Chair in Global Politics and International Law, “does not see a problem with a Chinese-controlled company operating mines in Canada,” the NP stated, “but he wonders if the company will be allowed to bring in Chinese workers to build the road and if Canadian taxpayers should foot the bill.”

The prospect of a Chinese company importing Chinese workers for a Canadian resource project has already been demonstrated by HD Mining International. In 2012 the company planned to staff underground operations at a proposed British Columbia coal mine exclusively with Mandarin-speaking Chinese. The mine was later put on hold, but not before an 18-month bulk sampling program conducted entirely by Chinese workers.

A new Grays Bay port and 350-kilometre all-season road formed part of the 2012 pre-feasibility study for MMG’s proposed mine. The company has since backed away from the estimated $6.5-billion price tag, calling for collaboration with others to build regional infrastructure.

We know that this is only the first step, but if it is constructed, this infrastructure project will be a game-changer with respect to improved community re-supply, marine safety, arctic sovereignty, regional economic development and international investment.—Stanley Anablak,
president of the
Kitikmeot Inuit Association

Certainly other companies would benefit too, as would the communities represented by the KIA. And as for sovereignty, neglecting infrastructure would cause the greater setback. That’s the perspective of a Senate report issued in June that called for several measures to expand the northern economy and enhance its culture. “The impact of federal under-investment hits hardest on the Arctic’s greatest asset, Indigenous youth,” the committee emphasized. “Opportunities for nation-building can no longer be missed.”

Among the senators’ priorities were energy and communications, as well as transportation, for the benefit of communities and industry. The committee recognized that mining comprises “the largest private sector employer in the Arctic, contributing to 20% to 25% of the GDP of the northern territories and supporting about 9,000 jobs directly, or one in every six jobs.”

The report also noted “growing global interest in the Arctic and rising international rivalry outside of the Arctic. Several non-arctic states in Europe and Asia have developed arctic policies or strategies.” Canada’s sovereignty over the Northwest Passage and other arctic waters depends on the principle of use it or lose it, the committee suggested.

The Northwest Passage route to Asia had been an alternative considered by Baffinland Iron Mines, the Nunatsiaq News reported last month. With ambitious infrastructure proposals of its own, the Baffin Island company currently relies on  trans-Atlantic routes to Europe and has also used Russia’s Northern Sea Route to reach Asia.

As part of its Phase II plans to increase production, Baffinland has applied for permission to build the territories’ second railway, which would run north from the Mary River mine to the company’s Milne Inlet port, now reached by a 100-kilometre freight road. The new track would precede a 150-kilometre southern rail extension to a port the company would build at Steensby Inlet. The Steensby route and facilities received environmental approvals in 2014.

This is the second of a two-part series. See Part 1.

Related reading: Reaching arctic mines by sea.

Paved with promises

October 7th, 2019

The North’s infrastructure needs get some attention from campaigning politicians

by Greg Klein

This is the first of a two-part series. See Part 2.

Could this be the time when decision-makers finally get serious about Northern infrastructure? With one territorial election just concluded and a deficit-budget-friendly incumbent federal party campaigning for re-election, Yukon, Northwest Territories and Nunavut might have reason to expect definitive action demonstrated by men, women and machinery at work. But while some projects show real progress, much of Canada’s Northern potential remains bogged down in talk and studies.

The North’s infrastructure deficit gets some attention from campaigning politicians

That’s despite some $700 million allocated to the North in Ottawa’s pre-election budget and months of Liberal spending promises since then. Not all that money was intended for infrastructure, however, and even some of the projects labelled that way turn out to be social or cultural programs. Not necessarily new money either, much of it comes out of Ottawa’s $2-billion National Trade Corridors Fund, now two years into an 11-year program that promised up to $400 million for transportation infrastructure in the three territories by 2028.

Yukon, once again home to active mining, has $157 million planned to upgrade the North Klondike Highway from Carmacks up to the mineral-rich White Gold region, where the Dempster Highway branches off towards Inuvik.

The Klondike section slated for upgrades has connections to a new mine and a soon-to-be revived operation. Highway #11 turns east from the Klondike, meeting with a 90-kilometre year-round service road to Victoria Gold’s (TSXV:VIT) recently opened Eagle operation.

The Minto copper-silver-gold mine that Pembridge Resources plans to restart in Q4 has a 20-kilometre access road with seasonal barge service or ice bridge crossing the Yukon River to the Klondike Highway at Minto Landing. From there, the company will ship concentrate to the Alaska Panhandle deep water port of Skagway.

The North’s infrastructure deficit gets some attention from campaigning politicians

With no deep water facilities of its own, Yukon connects
with the Alaskan port of Skagway and, pictured above,
the B.C. port of Stewart. (Photo: Stewart Bulk Terminals)

Intended to increase safety and capacity while addressing permafrost thaw, the North Klondike Highway project gets $118 million from Ottawa and $29 million from the territory. The money will be spent over seven years beginning in 2020.

A July feasibility report for BMC Minerals’ Kudz Ze Kayah polymetallic copper mine foresees concentrate shipment along a 24-kilometre access road to southern Yukon’s Highway #4, part of a 905-kilometre journey to Stewart, British Columbia, the continent’s most northerly ice-free port.

Another project approaching development but more distant from highways, Newmont Goldcorp’s (TSX:NGT) proposed Coffee gold mine calls for a 214-kilometre all-season road north to Dawson City. But with upgrades to an existing service road, the route would require only 37 kilometres of new construction.

In the NWT, work began last month on the Tlicho all-season road to connect the hamlet of Whati with Yellowknife, 97 kilometres southeast. Expected to finish by fall 2022, the $200-million P3 project would replace an existing ice road, giving communities year-round access to the highway system and encouraging resource exploration and development.

[The Tlicho road], which includes Indigenous participation from the Tlicho Government, is great news for our industry and a positive step forward in addressing the infrastructure deficit in the Northwest Territories.—Gary Vivian, NWT and Nunavut
Chamber of Mines president

About 50 kilometres north of Whati, Fortune Minerals’ (TSX:FT) NICO cobalt-gold-bismuth-copper project undergoes studies for a scaled-down feasibility update in light of lower cobalt and bismuth prices. Fortune has already received environmental approval for a spur road to Whati, part of a plan to truck NICO material to Hay River where the territories’ only rail line (other than short tourist excursions in southern Yukon) connects with southern Canada.

A much more ambitious priority of the NWT’s last legislative assembly was supposed to have been the Mackenzie Valley Highway, a Diefenbaker-era dream that would link the territory’s south with the hamlet of Tuktoyaktuk on the Arctic Ocean. The subject of numerous studies, proposals and piecemeal construction for about 60 years, the proposal has received more than $145 million in taxpayers’ money since 2000.

A 149-kilometre stretch from Inuvik to Tuk opened in 2017, linking the ocean with the Dempster route to the Yukon. Now underway are studies for a 321-kilometre route between Wrigley and Norman Wells, where further driving would depend on an ice road. Assuming receipt of environmental approvals, native agreements and an estimated $700 million, the NWT’s last assembly hoped construction on the Wrigley-to-Wells portion would begin in September 2024.

Far more ambitious proposals for the NWT and Nunavut took initial steps forward with funding announcements made just prior to the federal election campaign’s official start. Part 2 of this series discusses the Slave Geological Province Corridor and Grays Bay Road and Port projects.

Nunavut art, Nunavut gold celebrate Nunavut anniversary numismatically

June 26th, 2019

by Greg Klein | June 26, 2019

A bit late for the April 1 birthday but an impressive work just the same, the Royal Canadian Mint has unveiled its latest collector coin commemorating Nunavut’s creation. The gold comes from two territorial mines and the design from a Nunavummiuq artist.

Nunavut art, Nunavut gold celebrate Nunavut anniversary

The most recent coin displays
Germaine Arnaktauyok’s work.

“The Mint is passionate about honouring Canadian talent and celebrating our exceptional cultural diversity through beautifully crafted coins,” said president/CEO Marie Lemay. “We are proud to honour Germaine Arnaktauyok’s artistic legacy, in pure Nunavut gold, to wish the people of this important territory a happy 20th anniversary.”

With one-tenth of an ounce of 99.99% yellow metal from Agnico Eagle Mines’ (TSX:AEM) Meadowbank and TMAC Resources’ (TSX:TMR) Hope Bay mines, the coin has a face value of $20 but sells for $359.95 in a limited edition of 1,500. The piece depicts an Inuit drummer that Arnaktauyok created for a circulating toonie struck in 1999 on the new territory’s birth. The flip side portrays the Queen.

Nunavut art, Nunavut gold celebrate Nunavut anniversary

A 2018 coin featured Andrew Qappik’s images.
(Photos: Royal Canadian Mint)

It’s the second coin in a year featuring Nunavut gold and artistry. In June 2018 the Mint released a $20 piece using Meadowbank and Hope Bay gold as the canvas for Andrew Qappik’s images of a walrus, ptarmigan, polar bear, bowhead whale and narwhal.

By far Nunavut’s largest private sector employer, the industry now has four territorial mines in operation, including Baffinland Iron Mines’ Mary River and Agnico Eagle’s Meliadine, which achieved commercial gold production just last month. Agnico Eagle also has Amaruq, a satellite project 50 kilometres northwest of Meadowbank, slated for commercial production in Q3.

At Hope Bay, TMAC hopes to begin production on its Madrid and Boston gold deposits in 2020 and 2022 respectively, adding to current output from the Doris operation.

Baffinland currently has community consultations underway as part of a Nunavut Impact Review Board process for two railways that the company proposes building to expand Mary River output.

Among Nunavut’s other promising projects are Sabina Gold and Silver’s (TSX:SBB) Back River gold project, which has received all major permits since reaching feasibility in 2015, and De Beers’ Chidliak project, subject of the giant’s buyout of Peregrine Diamonds last year.

Read more about the Royal Canadian Mint.

Margaret Lake Diamonds/Arctic Star Exploration move Lac de Gras project to drill-ready status

May 6th, 2019

by Greg Klein | May 6, 2019

Three seasons of state-of-the-art techniques have a Northwest Territories diamond project ready for the rig. The Diagras joint venture of Margaret Lake Diamonds TSXV:DIA and Arctic Star Exploration TSXV:ADD has now undergone geophysical strategies that weren’t used by previous operators but proved successful at Kennady Diamonds’ (TSXV:KDI) Kennady North, another project in the prolific Lac de Gras diamond field. With a permit already in hand, the JV has drilling planned for spring 2020.

Margaret Lake Diamonds Arctic Star Exploration move Lac de Gras project to drill-ready status

Margaret Lake holds the majority share of the 60/40 JV and acts as project operator.

Analysis of ground gravity, magnetic and electromagnetic surveys found compelling targets among 23 known kimberlites on the 22,595-hectare property. Among the examples are Black Spruce, where three distinct signatures from magnetic, gravity and EM data might represent different phases of the same kimberlite complex that could host different diamond grades and populations.

Jack Pine, one of Lac de Gras’ largest kimberlite complexes, revealed “a new kimberlite-like geophysical expression believed to have not yet been evaluated by drilling according to available public domain records,” the companies stated. Previous drilling at Jack Pine showed it’s “significantly diamond-bearing.”

The Suzanne kimberlite shows gravity and EM anomalies that likely weren’t adequately tested by a previous operator’s drill hole, therefore warranting further drilling.

Surveys over the HL02 kimberlite suggest “an untested gravity and EM target that breaks a diabase dyke,” the JV explained. “This is a classic compelling kimberlite drill target.”

EM anomalies at the Kong and Penelope kimberlites could represent untested kimberlites or kimberlite phases. Several other known kimberlites have yet to undergo modern geophysics, but remain open for surveys while next year’s drilling takes place.

Margaret Lake also has drilling planned for its recently optioned Kiyuk Lake gold property in Nunavut, just north of the Manitoba border. With analysis of detailed ground geophysics underway, the company plans a 5,000-metre program focusing largely on the property’s Rusty zone. Some historic, non-43-101 results from 2017 showed 26.48 g/t gold over 8 metres, 1.16 g/t over 38 metres, and 1.82 g/t over 122 metres. Margaret Lake may earn up to 80% of the 59,000-hectare property.

The company also holds a 100% interest in the eponymous Margaret Lake property, another Lac de Gras diamond project.

Margaret Lake Diamonds/Arctic Star Exploration begin new program on NWT diamond project

March 25th, 2019

by Greg Klein | March 25, 2019

State-of-the-art exploration techniques will target Lac de Gras diamonds as a new campaign begins on the Diagras joint venture. Detailed ground gravity, magnetic and electromagnetic geophysics will test areas around kimberlites discovered through historic work and around airborne geophysical anomalies that suggest potential kimberlites.

Margaret Lake Diamonds Arctic Star Exploration begin new program on NWT diamond project

Margaret Lake Diamonds TSXV:DIA and Arctic Star Exploration TSXV:ADD hold 60% and 40% respectively of the JV. Margaret Lake acts as project operator on the 22,595-hectare property in the diamondiferous Northwest Territories region.

The current exploration strategy uses techniques that weren’t used in historic work but proved successful at Kennady Diamonds’ (TSXV:KDI) Kennady North project. At Diagras, the strategy has located drill-worthy anomalies proximal to the property’s previously discovered Black Spruce, Jack Pine and Suzanne kimberlites. Historic drilling has found diamonds at Jack Pine.

Part of the program’s funding comes from the NWT’s Mining Incentive Program.

Last month Margaret Lake announced an imminent campaign on its newly optioned Kiyuk Lake gold project, a 59,000-hectare property north of the Manitoba border in Nunavut. Pending receipt of permits, the company plans 5,000 metres of spring drilling in a program that would also include ground magnetics. Historic drilling brought impressive near-surface results.

Back in the NWT, the company also holds the Margaret Lake diamond project.

Miners and explorers pick their spots in Fraser Institute’s latest report card

February 28th, 2019

by Greg Klein | February 28, 2019

Ontario dropped dramatically but an improved performance by the Northwest Territories and Nunavut helped Canada retain its status as the planet’s most mining-friendly country. That’s the verdict of the Fraser Institute’s Annual Survey of Mining Companies 2018, a study of jurisdictions worldwide. Some 291 mining and exploration people responded to questions on a number of issues, supplying enough info to rank 83 countries, provinces and states.

Canadian and American jurisdictions dominated the most important section, with four spots each on the Investment Attractiveness Index’s top 10. Combined ratings for all Canadian jurisdictions held this country’s place as the miners’ favourite overall.

The IAI rates both geology and government policies. Respondents typically say they base about 40% of their investment decisions on policy factors and about 60% on geology. Here’s the IAI top 10 with the previous year’s numbers in parentheses:

  • 1 Nevada (3)

  • 2 Western Australia (5)

  • 3 Saskatchewan (2)

  • 4 Quebec (6)

  • 5 Alaska (10)

  • 6 Chile (8)

  • 7 Utah (15)

  • 8 Arizona (9)

  • 9 Yukon (13)

  • 10 Northwest Territories (21)

Here are Canada’s IAI rankings:

  • 3 Saskatchewan (2)

  • 4 Quebec (6)

  • 9 Yukon (13)

  • 10 Northwest Territories (21)

  • 11 Newfoundland and Labrador (11)

  • 12 Manitoba (18)

  • 15 Nunavut (26)

  • 18 British Columbia (20)

  • 20 Ontario (7)

  • 30 New Brunswick (30)

  • 51 Alberta (49)

  • 57 Nova Scotia (56)

Despite Ontario’s fall from grace, the province’s policy ratings changed little from last year. Relative to other jurisdictions, however, the province plummeted. Concerns include disputed land claims, as well as uncertainty about protected areas and environmental regulations.

The Policy Perception Index ignored geology to focus on how government treats miners and explorers. Saskatchewan ranked first worldwide, as seen in these Canadian standings:

The evidence is clear—mineral deposits alone are not enough to attract precious commodity investment dollars. A sound regulatory regime coupled with competitive fiscal policies is key to making a jurisdiction attractive in the eyes of mining investors.—Ashley Stedman,
senior policy analyst,
the Fraser Institute

  • 1 Saskatchewan (3)

  • 9 New Brunswick (13)

  • 10 Quebec (9)

  • 11 Nova Scotia (24)

  • 14 Alberta (16)

  • 18 Newfoundland (10)

  • 24 Yukon (22)

  • 30 Ontario (20)

  • 33 Manitoba (27)

  • 42 NWT (42)

  • 44 B.C. (36)

  • 45 Nunavut (44)

The NWT and Nunavut’s indifferent PPI performance suggests greater appreciation of the territories’ geology boosted their IAI rank.

This year’s study included a chapter on exploration permitting, previously the subject of a separate Fraser Institute study. Twenty-two jurisdictions in Canada, the U.S., Australia and Scandinavia were evaluated for time, transparency and certainty. Cumulatively, the six American states did best, with 72% of explorers saying they got permits within six months, compared with 69% for the eight Canadian provinces, 53% for the two Scandinavian countries (Finland and Sweden) and 34% for the six Australian states.

A majority of respondents working in Canada (56%) said permitting waits had grown over the last decade, compared with 52% in Australia, 45% in Scandinavia and 28% in the U.S.

A lack of permitting transparency was cited as an investment deterrent by 48% of respondents working in Australia, 44% in Canada, 33% in Scandinavia and 24% in the U.S.

Eighty-eight percent of explorers working in the U.S. and Scandinavia expressed confidence that they’d eventually get permits, followed by 77% for Australia and 73% for Canada.

Saskatchewan led Canada for timeline certainty, transparency and, with Quebec, confidence that permits would eventually come through.

As for the IAI’s 10 worst, they include Bolivia, despite some recent efforts to encourage development; China, the only east Asian country in the study; and problem-plagued Venezuela.

  • 74 Bolivia (86)

  • 75 La Rioja province, Argentina (80)

  • 76 Dominican Republic (72)

  • 77 Ethiopia (81)

  • 78 China (83)

  • 79 Panama (77)

  • 80 Guatemala (91)

  • 81 Nicaragua (82)

  • 82 Neuquen province, Argentina (57)

  • 83 Venezuela (85)

Explorers made up nearly 52% of survey respondents, producers just over 25%, consulting companies over 16% and others nearly 8%.

“The evidence is clear—mineral deposits alone are not enough to attract precious commodity investment dollars,” said Ashley Stedman, who co-wrote the study with Kenneth P. Green. “A sound regulatory regime coupled with competitive fiscal policies is key to making a jurisdiction attractive in the eyes of mining investors.”

Download the Fraser Institute Annual Survey of Mining Companies 2018.

Margaret Lake moves fast on Nunavut gold acquisition

February 21st, 2019

by Greg Klein | February 21, 2019

Margaret Lake moves fast on Nunavut gold acquisition

Accustomed to working in Arctic conditions, Margaret Lake adds a Nunavut property to its NWT portfolio.

 

With an aggressive winter/spring campaign planned for a newly acquired project, Margaret Lake Diamonds TSXV:DIA turns its attention to Nunavut gold. The company announced its Kiyuk Lake option just last week, allowing up to an 80% interest in the 59,000-hectare property north of the Manitoba border. Now, assuming receipt of land and water use permits, Margaret Lake intends to start building an exploration camp next month in preparation for up to 5,000 metres of spring drilling. The agenda also includes ground magnetics.

Margaret Lake moves fast on Nunavut gold acquisition

Past drilling brought impressive near-surface intercepts
and identified a 13-kilometre strike open in all directions.
(Photo: Cache Exploration)

Drilling will target the Rusty zone, where some historic, non-43-101 results from a previous operator in 2017 brought the following near-surface results:

  • 26.48 g/t gold over 8 metres, starting at 108 metres in downhole depth
  • (including 92.76 g/t over 2 metres)

  • 1.16 g/t over 38 metres, starting at 58 metres
  • (including 3.98 g/t over 8 metres)

  • 1.82 g/t over 122 metres, starting at 188 metres
  • (including 3.34 g/t over 15 metres)

Additionally, a 2013 intercept showed:

  • 1.6 g/t over 249 metres, starting at 8.2 metres

Further 2017 work at the property’s Gold Point/East Gold Point zone yielded the following results:

  • 1.46 g/t gold over 64 metres, starting at 35 metres
  • (including 3.12 g/t over 14 metres)

  • 6.51 g/t over 10 metres, starting at 248 metres

True widths weren’t available.

Over 13,000 metres of historic work identified four mineralized zones as well as five more areas that have yet to be drilled. The property features a 13-kilometre strike that remains open in all directions, the company stated.

Subject to exchange approval, an initial 50% Margaret Lake stake in Kiyuk Lake would require the company to issue five million shares, buy three million of the vendor’s shares for $150,000, pay $100,000 within a year and spend $3 million within three years. An additional 30% would cost $5 million.

In the Northwest Territories, the company also holds the eponymous Margaret Lake diamond project and the majority interest in a 60/40 JV with Arctic Star Exploration TSXV:ADD on the Diagras diamond property.

Association for Mineral Exploration names 2018 award winners as Roundup approaches

December 6th, 2018

by Greg Klein | December 6, 2018

As Roundup approaches, the Association for Mineral Exploration names 2018 award winners

The Chidliak discovery brings another potential diamond mine to Canada’s Arctic.
(Photo: De Beers)

 

Mine finders, financiers and builders will be honoured, but so will others including educators and a gold panner, as well as leaders in social and environmental responsibility and in health and safety. It takes a wide range of abilities to supply the world with the stuff we need and the Association for Mineral Exploration recognizes diverse achievements in its Celebration of Excellence awards. Winners were announced on December 6 in advance of AME’s annual Roundup conference scheduled for January 28 to 31 in Vancouver.

As Roundup approaches, the Association for Mineral Exploration names 2018 award winners

Yukon Dan Moore shares an award with geologist
and social responsibility practitioner Peter Bradshaw.

Al McOnie, Seymour Iles and Jared Chipman of Alexco Resource TSX:AXR win the 2018 H.H. “Spud” Huestis Award for Excellence in Prospecting and Mineral Exploration. The trio gets credit for the recent discovery and delineation of over 60 million silver ounces in the Flame & Moth and Bermingham deposits in Yukon’s Keno Hill Silver District.

John McCluskey wins the Murray Pezim Award for Perseverance and Success in Financing Mineral Exploration. McCluskey played a crucial role in acquiring, financing and encouraging the discoveries of La India (Grayd Resources, bought out by Agnico Eagle Mines TSX:AEM in 2012), Mulatos (Alamos Gold TSX:AGI) and Kemess East (AuRico Metals, acquired by Centerra Gold TSX:CG in January), as well as his ongoing success as CEO of Alamos.

Eric Friedland, executive chairperson of Peregrine Diamonds (acquired by De Beers in September), Geoff Woad, former head of world diamond exploration for BHP Billiton NYSE:BHP and Brooke Clements, former Peregrine president, win the Hugo Dummett Award for Excellence in Diamond Exploration and Development for their part in discovering the Chidliak Diamond Province in Nunavut.

Tom Henricksen wins the Colin Spence Award for Excellence in Global Mineral Exploration  for “outstanding contributions to mineral discovery, and being involved in some monumental discoveries and/or acquisitions across the world.”

Matt Andrews and Monica Moretto win the Robert R. Hedley Award for Excellence in Social and Environmental Responsibility for their work with Pan American Silver TSX:PAAS.

Paycore Drilling wins the David Barr Award for Excellence in Leadership and Innovation in Mineral Exploration Health and Safety for the Paycore crew’s rescue operation following a helicopter crash.

Yukon Dan Moore and Peter Bradshaw share the Gold Pan Award for separate endeavours demonstrating “exceptional meritorious service to the mineral exploration community.”

As Roundup approaches, the Association for Mineral Exploration names 2018 award winners

Norman Keevil’s award honours his achievements
in B.C. and adjacent parts of the Cordillera.
(Photo: Teck Resources)

J. Greg Dawson and Victoria Yehl win the Frank Woodside Award for Distinguished Service to AME and/or Mineral Exploration for achievements that include Dawson’s research in land use planning and Yehl’s work as an AME organizer.

AME’s 2019 Outreach Education Fund grants $10,000 each to two groups: MineralsEd for the Kids & Rocks Classroom Workshop, and Britannia Mine Museum for its Education Program.

Norman Keevil, chairperson emeritus/special adviser for Teck Resources TSX:TECK.A/TSX:TECK.B and author of Never Rest on Your Ores: Building a Mining Company, One Stone at a Time, wins a Special Tribute for his achievements and contributions to exploration, discovery and development.

Congratulating the winners, AME chairperson ‘Lyn Anglin said, “The theme of AME’s 2019 Roundup conference is Elements for Discovery and these individuals and teams, through their remarkable efforts in elements of exploration, development and outreach, have generated discoveries and advancements which will bring benefits to the many diverse communities throughout British Columbia and Canada.”

Winners will be feted at the January 30 Awards Gala, part of AME Roundup from January 28 to 31 at the Vancouver Convention Centre East. Two days of short courses precede the event. Discounted early bird registration remains open until 4:00 p.m. December 14. Click here to register.

Read more about AME’s Celebration of Excellence award winners and their achievements.

Drill-ready money

November 19th, 2018

Canada’s hitting a six-year high in exploration spending

by Greg Klein

Canada’s hitting a six-year high in exploration spending

Osisko Mining’s (TSX:OSK) Windfall project offers one reason why
Quebec leads Canada and gold leads metals for exploration spending.
(Photo: Osisko Mining)

 

Blockchain might offer intrigue and cannabis promises a buzz, but mineral exploration still attracts growing interest. A healthy upswing this year will bring Canadian projects a nearly 8% spending increase to $2.36 billion, the industry’s highest amount since 2012. According to recently released data, that’s part of an international trend that puts Canada at the top of a worldwide resurgence.

The $2.36 billion allotted for Canadian exploration and deposit appraisal forms just a small part of the year’s total mineral resource development investments, which see $11.86 billion committed to this country, up from $10.61 billion in 2017.

Those numbers come from Natural Resources Canada, which surveyed companies between April and September on their spending intentions within the country for 2018. The $2.36-billion figure includes engineering, economic and feasibility studies, along with environmental work and general expenses.

Canada’s hitting a six-year high in exploration spending

Trial extraction for Pure Gold Mining’s (TSXV:PGM)
Madsen feasibility studies encourages interest in
Ontario’s Red Lake region. (Photo: Pure Gold Mining)

Of that number, Quebec edges out Ontario for first place with $623.1 million in spending this year, 26.4% of Canada’s total. Ontario’s share comes to $567.5 million or 24%. Last year’s totals came to $573.9 million for Quebec and $539.7 million for its western neighbour. Prior to that, however, Ontario held a comfortable lead year after year.

Third-place British Columbia gets $335.5 million or 14.2% of Canada’s total this year, an increase from $302.6 million in 2017.

On a per-capita basis, Yukon’s enjoying an exceptional year with an expected $249.4 million or 10.6% of Canada’s total. That’s the territory’s second substantial increase in a row, following $168.7 million the previous year.

Saskatchewan dips this year to $187.2 million (7.9%) from $191.2 million in 2017. But the Fraser Institute’s last survey of mining jurisdictions placed the province first in Canada and second worldwide.

Nunavut drops too, for the third consecutive time, to $143.9 million (6.1%), compared with $177 million in 2017. The Northwest Territories’ forecast declines to $86.2 million (3.7%) this year after $91.2 million last year.

Canada’s hitting a six-year high in exploration spending

Among companies leading Yukon’s exceptional performance
is White Gold TSXV:WGO, with substantial backing from
Agnico Eagle Mines TSX:AEM and Kinross Gold TSX:K.
(Photo: White Gold)

Especially troubling when contrasted with Yukon’s performance, data for the other territories prompted NWT & Nunavut Chamber of Mines president Gary Vivian to call on federal, territorial and native governments and boards to help the industry “by creating certainty around land access, by reducing unnecessary complexity and by addressing the higher costs they face working in the North. Sustaining and growing future mining benefits depend on it.”

The pursuit of precious metals accounts for $1.5 billion in spending, nearly 64% of Canadian exploration. Ontario gets almost 31% of the precious metals attention, with 27% going to Quebec.

Base metals, mostly in Quebec, B.C. and Ontario, get 15.5% of the year’s total. Uranium gets 5%, almost entirely in Saskatchewan. Diamonds get nearly 4%, most of it going to the NWT and Saskatchewan. But nearly 11% of this year’s total goes to a category vaguely attributed to other metals, along with coal and additional non-metals.

Getting back to this year’s exploration total ($2.36 billion, remember?), senior companies commit themselves to nearly 55%, compared with nearly 51% last year. But the juniors’ share remains proportionately much larger than the pre-2017 years.

Additional encouragement—and on an international level—comes from S&P Global Market Intelligence. Using different methodology to produce different results, the Metals and Mining Research team found worldwide budgets for nonferrous exploration jumping 19% this year to $10.1 billion.

Juniors have been reaping the biggest budget gains at 35%. Over 1,651 functional exploration companies represent an 8% improvement over last year and the first such increase since 2012. But that’s “still about 900 companies less than in 2012, representing a one-third culling of active explorers over the past five years.”

The most dramatic spending increase hit cobalt and lithium, this year undergoing an 82% leap in exploration spending. That’s part of a 500% climb since 2015, SPGMI says.

Canada’s hitting a six-year high in exploration spending

Nemaska Lithium’s Whabouchi project in Quebec
contributes to the enthusiasm for energy metals.
(Photo: Nemaska Lithium)

Even so, precious and base metals retained their prominence as gold continues “to benefit the most from the industry recovery.” The global strive for yellow metal will claim $4.86 billion this year, up from $4.05 billion in 2017. Base metals spending will grow by $600 million to $3.04 billion. “Copper remained by far the most attractive of the base metals, although zinc allocations have increased the most, rising 37% in 2018, the report states. “Budgets are up for all targets except uranium.”

SPGMI finds Canada keeping its global top spot for nonferrous exploration with a 31% year-on-year budget increase. Second-place Australia achieved a 23% rise. The U.S. total places third, although with a 34% increase over the country’s 2017 performance.

In each of the top three countries, over 55% of the budgets focused on gold.

“Improved metals prices and margins since 2016 have encouraged producers to expand their organic efforts the past two years,” commented SPGMI’s Mark Ferguson. “Over the same period, equity market support for the junior explorers has improved, leading to an uptick in the number and size of completed financings. This allowed the group to increase exploration budgets by 35% in 2018.”

Baffinland Iron Mines sets high Arctic high volume shipping record

November 8th, 2018

by Greg Klein | November 8, 2018

Competing with northern European coal and its own past performance, Baffinland Iron Mines claims the largest shipping program by volume for the Canadian and Scandinavian high Arctic. During an 86-day season that ended October 17, some 71 voyages carried an average 71,750 tonnes of iron ore each from the company’s Milne Inlet port at 71.25 degrees latitude. Destinations included continental Europe, the UK and, in a first for iron ore bulk transport, two trips along the Russian coast to Taiwan and Japan.

Total tonnage came to about 5.1 million, surpassing the previous 4.1-million-tonne record set by Baffinland in 2017. The ore comes from Mary River, 100 kilometres by road from the port.

Baffinland Iron Mines sets high Arctic high volume record

This year’s season included the world’s first two bulk transports
of iron ore through the Northern Sea Route to Asia.
(Photo: Baffinland Iron Mines)

President/CEO Brian Penney attributed “a successful, safe and responsible shipping season” to employees and shipping partners, as well as the support of northern Baffin Island communities and the Qikiqtani Inuit Association.

The Mittimatalik Hunters and Trappers Organization support an onboard monitoring program “to ensure no adverse environmental impacts or impacts on Inuit shipping vessels,” the company stated. “These programs combined scientific and traditional Inuit knowledge. No health and safety or environmental incidents occurred during the shipping program.”

An application before the Nunavut Impact Review Board proposes to replace Baffinland’s tote road with a railway linking the mine with Milne Inlet. Following community consultations, NIRB expects to make its recommendation in June, Baffinland communications officer Jason Leite tells ResourceClips.com. The federal cabinet decision should follow in 30 to 90 days.

The company also hopes to lay track south to a proposed Baffin Island port at Steensby Inlet. The Steensby route and facilities were approved in 2014, although market conditions prompted the company to scale its plans down radically to an Early Revenue Phase.

“The plan to go south to Steensby is still on the horizon and it’s part of our expanded growth outlook over the next decade, or even 15 to 20 years,” Leite says. “We’re taking a tiered approach to our expansion programs.”

The company’s eventual goal is 30 million tonnes per year. Last month Baffinland received federal approval to increase annual production from 4.2 million to six million tonnes despite a negative NIRB recommendation.

Held jointly by Nunavut Iron Ore and ArcelorMittal, Baffinland credits Mary River with “the highest grade of direct shipping iron ore in the world.”

Read more about Canadian arctic shipping.