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FEATURE: With tax revenue sharing in place and the construction of the Northwest Transmission Line ready to begin, mining in B.C. is poised for resurgence

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Page 1: CIM Magazine November 2010
Page 2: CIM Magazine November 2010

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CONTENTSCIM MAGAZINE | NOVEMBER/NOVEMBRE | 2010

4 | CIM Magazine | Vol. 5, No. 7

12

24

NEWS 11 B.C. Aboriginal mine training partnership

underway Private and public sectors fund a program thatprovides Aboriginals with training and support by P. Caufield

12 Restoring the past Britannia Mine museum gets amakeover with a new name and new facilities by S. Stecyk

14 Outlook darkens for DRC developments Seizureof First Quantum’s mining projects has left the company withno choice but to turn to the courts by P. Diekemeyer

16 A clearer result ALS Environmental’s advanced massspectrometer provides mining companies with a highlyaccurate measure of metal concentrations in waterby P. Caulfield

UPFRONT 18 From the desktop to the mine face Next generation

simulators are reshaping mining training as well as the makeup ofthe industry by H. Ednie

20 An elegant alternative to smelting Revolutionaryhydrometallurgical process offers an economical andenvironmentally sound substitute to smelting by A. Lopez-Pacheco

24 Social capital A fund aimed at supporting Aboriginal businessentrepreneurs receives financial and managerial support from themining community by M. Eisner

26 Shaking off the past B.C. Minister of State for Mining RandyHawes discusses revenue sharing with First Nations, the NorthwestTransmission Line and mining development by R. Bergen

82

Annual Canadian Mineral Processors Operators’ ConferenceConférence annuelle des minéralurgistes du Canada

January 18–20, 2011 | 18–20 janvier 2011Westin Hotel | Ottawa, Ontario

rde43

Page 5: CIM Magazine November 2010

FEATURED PROJECTPROJET EN VEDETTE 38 The way forward In what is being hailed as renaissance in mining in B.C., Mt. Milligan will be

the first new mine to open since 1998 by P. Caulfield

42 Le chemin de l’avenir Dans ce que l’on pourrait qualifier de renaissance minière en C.-B., Mt. Milligan sera la première nouvelle mine à ouvrir depuis 1998

November 2010 | 5

28

COLUMNS 45 Supply Side by J. Baird

46 MAC Economic Commentary by P. Stothart

48 HR Outlook by L. Forcellini

50 Safety by H. Ednie

52 Innovation by S. Creighton

54 Eye on Business by J. Lewis and B. Harrison

56 Engineering Exchange by H. Ednie

58 Standards by S. Henley

60 Canadians Abroad by H. Ednie

62 First Nations by D. Curtis

64 Student Life by J. Dahme, T. Barrett

67 Women in Mining by B. Caelles

68 Mining Lore by C. Baldwin

CIM NEWS 71 Something old, something new CIM’s

Metallurgical Society rebrands itself by M. Eisner

72 No guts, no glory Greg Rasmussen revitalizes CIMbranch in Prince George by R. Pillo

73 One step at a time CIM’s IT project nears its firstobjective by A. Nichiporuk

74 Le passage progressif au nouveau systèmedes TI Le projet d’implantation des technologies del’information de l’ICM atteindra bientôt son premierobjectif

75 Éminente visite à Rouyn-Noranada JamesFranklin rend visite à la section Rouyn-Noranda de l’ICMpar C. Gagnier

76 A cohesive approach to improvingmetallurgical efficiency Distinguished LecturerNorman Lotter discusses process mineralogy by R. Pillo

77 Scholarship winner is mining her optionsSamantha Lickers is the winner of this year’s Taking FlightScholarship by M. Eisner

78 Mining rocks for Anne Belanger Scholarshipwinner is fascinated by rock formations by M. Eisner

80 Joint luncheon on food security Potash the hottopic at CIM Toronto Branch / CIM Management &Economics Society annual luncheon by R. Hutson

81 Rounding up exploration in Red Lake CIM RedLake Branch holds Exploration Roundup 2010 by C. Storey

HISTORY 86 The miners’ safety lamp by F. Habashi

88 Nevada-type gold deposits (Part 4) by R. J. Cathro

TECHNICAL SECTION 91 Canadian Metallurgical Quarterly 92 CIM Journal

IN EVERY ISSUE 6 Editor’s message 8 President’s notes / Mot du président 10 Letters 70 Calendar 79 Welcoming new members 80 Obituaries 93 Professional directory

FEATUREMINING IN B.C.L’INDUSTRIE MINIÈRE EN C.-B. 28 Power and the people With tax revenue sharing in place and the construction of the North-

west Transmission Line ready to begin, mining in B.C. is poised for resurgence by D. Zlotnikov

35 L’énergie et les gens Avec l’établissement du partage des revenus et la construction de laNorthwest Transmission Line prête à commencer, l’exploitation minière en C.-B. est bien placéepour la reprise

38

Page 6: CIM Magazine November 2010

Perhaps one of the most revealing indicators of theprevailing climate of optimism surrounding thefuture of the B.C. minerals industry is the rather

upbeat title that PricewaterhouseCoopers (PWC)bestowed to the latest installment of its annual B.C.mining survey: “Rock on.”* The report — the 42nd of itskind — summarizes the 2009 financial results and majortrends in the British Columbia mining industry. Keepingin mind that the survey was conducted during a yearmarked by the global slowdown, the tone of the report,as indicated by the title, is surprisingly upbeat. That isbecause despite a few sour notes and some definite har-

mony issues, the mining industry in B.C. is seemingly on a pathway to prosperity,albeit one that might entail some fine tuning.According to the PWC report, the B.C. mining sector contributed $5.7 billion to

the provincial economy in 2009. Pre-tax earnings totalled $2.3 billion, which repre-sented a decline from the all-time record of $3.2 billion reported in 2008, but stillrepresented historically high levels. When you consider that 60 per cent of allCanadian exploration and mining companies are based in B.C. and that there are 24mining projects in B.C. currently under review or in the permitting process, there canbe little doubt that the health of the B.C. mining industry — and the outcomes andoffshoots of the issues they are grappling with — will surely resonate across theCanadian mining industry as a whole.The feature article “Power and the people” examines two components vital to the

mining resurgence in B.C. — infrastructure development and Aboriginal engagement.Writer Dan Zlotnikov speaks with a variety of stakeholder representatives — includ-ing industry, association, government and First Nations — to capture their perspec-tives as to the potential roadblocks and gateways to recovery and expansion.In this issue you will also learn why so many eyes are trained on gauging the success

of our featured project — Thompson Creek Metals’ Mt. Milligan — which came close tonot happening at all. Peter Caulfield’s story highlights the complexities of the issues fac-ing the region and reinforces the integral role of early and effective engagement.Editor Ryan Bergen also had the opportunity to speak with B.C. Minister of State

for Mining, Randy Hawes, who candidly shares his views on revenue sharing, the B.C.Mining Plan and addressing hostility towards the mining sector.Be sure to check out the preliminary program for the 43rd Annual Canadian

Mineral Processors Operators’ Conference to be held in Ottawa from January 18–20,2011. If you’ve never attended before, then come discover why dedicated delegates— undeterred by the frosty clime — look forward with great anticipation to visitingthe nation’s capital the third week in January year in and year out.Finally, we are very pleased by the ever-increasing feedback we have been receiv-

ing at CIM Magazine. Please keep sharing your reactions and suggestions, as they areintegral to ensuring that we are hitting the right notes.

Angela Hamlyn, Editor-in-chief* The full PricewaterhouseCoopers report can be accessed athttp://www.pwc.com/ca/en/mining/mining-industry-british-columbia.jhtml

Striking the right cords

6 | CIM Magazine | Vol. 5, No. 7

editor’s letterEditor-in-chief Angela Hamlyn, [email protected]

Section EditorsNews, Upfront and Features:Ryan Bergen, [email protected] Stecyk, [email protected], CIM News, Histories and Technical Section:Andrea Nichiporuk, [email protected]

Technical Editor Joan Tomiuk, [email protected]

Publisher CIM

Contributors Jon Baird, Correy Baldwin, Teresa Barrett,Barbara Caelles, R. J. Cathro, Peter Caulfield, Steven Creighton,Dawn Curtis, Jocelyn Dahme, Peter Diekmeyer, Heather Ednie,Marlene Eisner, Lindsay Forcellini, Claude Gagnier, FathiHabashi, Stephen Henley, Bruce Harrison, Rick Hutson, LouiseBlais-Leroux, Josh Lewis, Alexandra Lopez-Pacheco, RobbiePillo, Paul Stothart, Carmen Storey, Dan Zlotnikov

Published 8 times a year by CIM1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: [email protected]

Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included;Quebec residents add $12.60 PST; NB, NF and NSresidents add $20.80 HST); U.S. and other countries,US$180.00/yr; Single copies, $25.00.

Advertising SalesDovetail Communications Inc.30 East Beaver Creek Rd., Ste. 202Richmond Hill, Ontario L4B 1J2Tel.: 905.886.6640; Fax: 905.886.6615www.dvtail.com National Account Executives 905.886.6641Janet Jeffery, [email protected], ext. 329Neal Young, [email protected], ext. 325

This month’s coverNeptune Bulk Terminals, North VancouverPhoto courtesy of Scott Robert Collins

Layout and design by Clò Communications.

Copyright©2010. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec.

The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada

Page 7: CIM Magazine November 2010

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Page 8: CIM Magazine November 2010

president’s notesThis fall, the successful rescue of the miners trapped in a San

Jose mine put mining and drilling in an enormously positive lightglobally for a change. Canadian companies were key to the rescue,with Cementation Canada, Precision Drilling and Atco all prominentat the site.The practices of Cementation Canada also held the spotlight at

the recent CIM New Brunswick Branch Annual Convention, wherethe company showcased its role in the successful rescue efforts,including the development of an innovative raise boring head. Weshould take this opportunity to pat ourselves on the back and rec-ognize that in safety, mine rescue and the broader area of corpo-rate social responsibility, this country’s best companies are globalleaders.Switching now to global markets, China’s voracious appetite for

minerals persists. The immediate impact has been very positive formine development across Canada, and British Columbia in particu-lar, the main focus of this issue. It is gratifying to see a robustpipeline of projects returning to a province with such a rich miningheritage.This fall, CIM hosted a pair of major events, the Conference of

Metallurgists in Vancouver and the MEMO Conference in Sudbury,which focused on the mining side of our activities. As always, safetyand maintenance were a major part of this exciting and very suc-cessful conference.At the CIM national office, I’m delighted to report that, due to the

hard work of the staff, the move to new facilities has gone very

smoothly and that the firstelements of our new IT infra-structure, the new ExhibitionManagement Module, weresuccessfully implemented inAugust.The other good news for

the future is that we currentlyhave over 1,800 students asmembers. This includes over100 from the new studentchapter at Queen’s University.Let’s engage them all andsupport their transition fromstudents to active contributorsto our industry.In conclusion, I would like to congratulate the team, led by the

Canadian Mineral Processors, who secured the International MineralProcessing Conference for Canada in 2016, a major coup to bring itback to this country for the first time in nearly 30 years.

Chris Twigge-MoleceyPresident

Cet automne, le sauvetage très réussi des mineurs emprisonnésdans la mine San José a mondialement mis les pleins feux, pour unefois extrêmement favorables, sur les forages et l’exploitation minière.Des compagnies canadiennes ont été l’une des clés du sauvetage;en effet, les compagnies Cementation Canada, Precision Drilling etAtco étaient toutes bien en vue sur le site.Les pratiques de Cementation Canada étaient aussi en vedette

lors du Congrès annuel de la Section Nouveau-Brunswick de l’ICM; lacompagnie a démontré son rôle dans les efforts fructueux du sauve-tage, dont le développement d’une tête innovatrice pour le forage demonteries. Nous devrions saisir cette occasion pour nous féliciter et recon-

naître que dans les domaines de sécurité, de sauvetage minier etcelui plus vaste de responsabilité sociale des entreprises, lesmeilleures compagnies de ce pays sont des chefs de file mondiaux.Passant maintenant aux marchés mondiaux, nous notons que

l’appétit vorace de la Chine pour les minéraux persiste toujours.L’impact immédiat a été très positif pour le développement minier àtravers le Canada et surtout en Colombie-Britannique; d’ailleurs, laprésente édition du Magazine y est consacrée. Il est valorisant de voirde nombreux projets solides revenir à une province possédant unhéritage minier aussi riche.

Cet automne, l’ICM a tenu deux grandes activités : la Conférencedes métallurgistes à Vancouver et le Colloque MeMO à Sudbury. Cedernier ciblait le volet extraction de nos activités. Comme toujours, lasécurité et la maintenance formaient la plus grande partie de cetteconférence dynamique et très réussie.Au bureau national de l’ICM, je suis heureux de vous dire que,

grâce au travail diligent du personnel, le déménagement dans nosnouveaux locaux s’est effectué de façon très ordonnée et que le pre-mier élément de notre infrastructure de technologies de l’information,soit le module de gestion des associations, est entré en ligne en août.L’autre bonne nouvelle pour l’avenir est que nous avons actuelle-

ment plus de 1800 membres étudiants, incluant plus d’une centaineprovenant du nouveau chapitre étudiant à l’Université Queen’s.Accueillons-les et aidons-les à passer d’étudiants à contributeursactifs de notre industrie.Pour conclure, je voudrais féliciter l’équipe, menée par la Société

canadienne du traitement des minerais, qui a réussi à obtenir que leCongrès de traitement des minerais se tienne au Canada en 2016,c’est un coup de maître de ramener ce congrès au pays après uneabsence de près de 30 ans.

Chris Twigge-MoleceyPrésident

Poised for growth

ICM bien placé pour croître!

8 | CIM Magazine | Vol. 5, No. 7

Page 9: CIM Magazine November 2010

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Page 10: CIM Magazine November 2010

lettersGetting it right

Hello Angela,My thanks for

the great job youare doing with themagazine. Keep upthe good work!

I am writing youabout a small inac-curacy in the fea-tured mine story —“A small window, abig opportunity” —printed on page 37 ofthe August issue ofCIM Magazine. Thephoto caption incorrectly refers to “First Nations”comprising over a third of the workforce at Mead-owbank. In actuality, Meadowbank employs localInuit people and Inuit are not First Nations. To helpwith future stories, a more general term for indige-nous people in Canada that can be used is “Aborig-inal,” which includes First Nations, Métis and Inuit.

The following government of Canada website isuseful in describing the many terms used by INACin describing the people it serves: www.ainc-inac.gc.ca/ap/tln-eng.asp.

Hope that helps in future editing.

Best regards,Tom HoeferExecutive director, NWT & Nunavut Chamber ofMines (former director of mineral & petroleumresources, Department of Indian Affairs & NorthernDevelopment – INAC)

Hi Tom,Thank you so much for pointing out the inaccu-

racy and please accept our apology for the oversight.Your letter has encouraged us to address the topic inthis issue’s First Nations column authored by DawnCurtis of Indian and Northern Affairs Canada NTRegion (p. 62-63). I think that it would be helpfulfor many of our readers to understand these impor-tant distinctions. In the meantime, I will share yourletter with the CIM Magazine staff to encouragegreater diligence in this matter going forward.Again, thank you for bringing this to our attention.

Regards,

Angela HamlynEditor-in-chief, CIM Magazine

An impressive record

Dear Professor Habashi, This brief note is in reference to your article,

“The beginnings of mineral processing research inCanada (Part 6),” published in the August2010 issue of CIM Magazine. I found the article ofsome considerable interest, since I have beenemployed by Sherritt and subsidiary companiesfor the past 25 years and your article makes con-siderable reference to the pioneering work ofSherritt in the field of hydrometallurgy. However,I was dismayed by the omission of the SherrittResearch Centre in Fort Saskatchewan in yourlisting of major metallurgical research centres in

Canada. Metallurgical research has been conducted withoutpause in Fort Saskatchewan since the Sherritt Research divisiontransferred from Ottawa in 1955, and a great many metallurgicalinventions have been developed and patented over the years basedon test results generated in the Sherritt laboratories.

This long history of technical innovation, along with an impres-sive record of translating hydrometallurgical developments into com-mercial reality, undoubtedly qualify Sherritt’s Fort Saskatchewanfacility as a major metallurgical research centre. Although specializ-ing in the development of processes involving autoclaves since the1950s, the Sherritt laboratory and pilot plant (now part of the SherrittTechnologies division) are equipped to evaluate a wide range of pro-cessing techniques, including size-reduction, flotation, liquid-solidseparation, purification, solvent extraction and electrowinning,allowing for integrated testing of several process steps into an overallmetals recovery process. Sherritt’s equipment has also been refinedover the years, to allow for pilot plant testing at a significantly smallerscale than that of historical pilot plants, which greatly decreases thecost of process development work.

Laboratory and pilot plant testing continues to be a key compo-nent of Sherritt's process development activities, and research metal-lurgists and technologists work alongside engineers and projectmanagers in Fort Saskatchewan on projects both for the corporationand for external clients. As a direct result of the process developmentand design activities conducted by this group, more than 35 commer-cial refineries have been built around the world in the past fifty years.I believe that the metallurgists, technologists and engineers whomake up Sherritt Technologies are justifiably proud of this record.

Yours sincerely,Mike CollinsManager, process development, Sherritt Technologies

Mike,Thanks for your note. Certainly I am aware of the excellent work

done at Sherritt’s Research Division, which I visited many years ago.I apologize for this lapse and I hope that this Letter to the Editor cor-rects the situation. Fathi Habashi

10 | CIM Magazine | Vol. 5, No. 7

Page 11: CIM Magazine November 2010

A partnership of public- and pri-vate-sector players was formedrecently to bring qualified Aboriginalcandidates into the mining industry inBritish Columbia. The group, consist-ing of mining companies, Aboriginalgroups, educational institutions andthe federal government, seeks to createjob opportunities and provide supportfor Aboriginals in the mining industry.

“Mining is the single largest pri-vate-sector employer of Aboriginals inCanada,” said Laurie Sterritt, execu-tive director, B.C. Aboriginal MineTraining Association (BCAMTA). “Butrelations between mining companiesand Aboriginal communities wherethe mines operate are not always opti-mal. Our approach offers stakeholdersa new way to work together that cre-ates the opportunity for employers,educators and BCAMTA candidates toreally understand what each of themneeds to be successful,” she explained.

The British Columbia Aboriginalmine training partnership, establishedin October 2009, is running a three-year program that provides skills train-ing in mining for Aboriginals andprepares them for employment. Theprogram is aimed at qualified candi-dates in the northwest and centralinterior of the province.

BCAMTA administers the project inconjunction with 16 partners, six ofwhich have made commitments toprovide 148 jobs for Aboriginal partic-ipants. The partnership provides can-didates with training-to-employmentplans that cover academic upgrading,job-specific training and apprentice-ships, retention counselling and otheron-the-job support.

“The partners are committed toensuring that Aboriginal people fullyshare in economic opportunities cre-ated by the mineral exploration andmining industry,” said BCAMTA chairLaureen Whyte in an announcement.

B.C. Aboriginal mine training partnership underway Program provides skills training and employment opportunities

By Peter Caulfield

“Aboriginal people in B.C. will haveaccess to skills training to participate inthe exploration and mining industry,and industry will benefit from accessinga quality pool of workers,” she added.

Sterritt said BCAMTA works withits partners to reduce barriers for Abo-riginals entering careers in mining.“We also provide candidates with arange of opportunities – entry-leveljobs, pre-trades training, apprentice-ships and coaching to help them lad-der-up to the next occupational level,”Whyte said.

The partnership, Sterritt explained,“provides a unique opportunity forpartners with different points of viewto come together and open the lines ofcommunication with each other. Ourefforts are already creating tangibleresults for Aboriginal communitiesand our corporate partners.”

Human Resources and Skills Devel-opment Canada is contributing $4.4million dollars; cash and in-kind con-tributions from industry and associa-tions account for the remaining $22.7million dollars required to support the30-month program, including wagesand benefits allocated to successfullyemployed candidates.

Leonard Jackson, BCAMTA pro-gram coach, explained that there

are more than 200 applicants, over125 candidates in various stages oftraining, and over 35 candidates injobs as a result of the program. “Inthe central interior, we are workingwith two operating mines, HighlandValley Copper and New Afton, andone developing mine in Princeton,Copper Mountain,” he said. “Candi-dates can apply to the programthrough the mining companies orthey can come to the BCAMTAoffices first.”

“Some of the Aboriginals who applyfor mining jobs don’t meet all the nec-essary qualifications,” Jackson said.“So we get involved to help providethem with the types of skills upgrad-ing they need in order to become bet-ter qualified.”

“At the pace we’re going, there is noreason why we won’t surpass ouremployment targets,” added Sterritt.“Our candidates are consistently com-ing in strong on skills-assessments andthey are really getting noticed byemployers. We are preparing BCAMTAcandidates to be ‘the best person forthe job,’ every time.”

Information about careers in exploration and mining and how the program works is available atwww.bcamta.ca. CIM

November 2010 | 11

BCAMTA graduates hired at New Gold (from left to right): Pat Gagnon, New Gold trainer; A.J. Lindley; Dustin Gordon;Denis DeRose; Darien Minnabarriet; Brad Neufeld; Cody Jules; and Leonard Jackson, BCAMTA regional manager.

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Page 12: CIM Magazine November 2010

news

12 | CIM Magazine | Vol. 5, No. 7

A piece of B.C. mining history wasrestored this fall with the re-opening ofthe new Britannia Mine Museum. Themuseum has just completed the secondphase of a three-stage redevelopmentproject using $14.7 million that itreceived in donations from the federaland provincial governments as well asfrom mining industry companies andexecutives.

The previously named BC Museumof Mining, located 40 kilometres northof Vancouver, is the site of the formerBritannia Mine that had been in opera-tion for nearly 70 years and was oncethe largest copper producer in theBritish Commonwealth. The last shift atthe mine was in 1974; in 1988 it wasdeclared a national historic site.

The museum project offers visitors aglimpse into what life was like for the60,000 people who worked and lived inthe town during the life of the mine, andalso showcases the seven decades ofmining history in the Britannia Beachcommunity. The site now boasts a brandnew visitor centre, courtesy of dona-tions from Lukas Lundin of LundinMining and Ross Beaty, CEO of Magma

Restoring the pastBritannia Mine Museum receives makeover

By Steve Stecyk

Energy Corp. The Beaty-Lundin VisitorCentre houses the theatrical miningexhibits, a mineral gallery, a theatrespace and a gift shop, as well the Cana-dian Mining Hall of Fame.

The museum had its grand open-ing in September and Kirsten Clausen,its executive director, is very pleased

with the renewed interest that it is nowreceiving. “We have really noticed a bigdifference in dwell time of folks,”saidKlausen. “They come thinking, ‘ok let’sgo spend an hour with the family, andwe’ll do this.’ And three hours later,you see them leaving and they’ve gotsmiles on their faces.”

As part of its upgrade project, the 20-storey historic mill building had all of its 14,416 window panes restored.

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The museum has received a strongfinancial support from the miningcommunity. Over 24 donors — rang-ing from associations to legal firms tooperations — have donated money tothe project.

But that was not the case at the out-set, when the project began eightyears ago. “The initial response wasdivided,” said Michael McPhie, direc-tor at the Association for MineralExploration British Columbia and co-chair of the Britannia Beach HistoricalSociety. “Certain individuals, alongwith the industry, felt it would be bet-ter just to tear all the old buildingsdown and cover the area with grassand move on. But then there was acore component of the industry thatthought it was a very iconic, impor-tant part of B.C.’s history. And really, Ithink the turning point for the projectcame primarily by the initial contribu-tion by Teck Corporation.”

Teck’s $750,000 donation wasmatched by Placer Dome (Placer Dome

was bought by Barrick Gold, the yearthe donation was given). An additional$2 million was raised by industry indi-viduals and companies. The funds,matched by the federal and provincialgovernments, were earmarked for therestoration of the historic mill build-ing, which remains the centrepiece ofthe mine.

The mill, a 20-storey building, con-tains one of the last remaining gravity-fed concentrator mills in North Amer-ica. In its prime, it processed 700tonnes of copper a day, as well as gold,silver, lead, zinc and cadmium. A fivemillion dollar boost in 2007 allowedthe structure’s foundations to besecured, and its 14,416 window panes,roof and siding replaced or restored.

The Britannia Mine Museum has anintact network of tunnels spanning 210kilometres that visitors can exploreusing an underground train ride thatgives them “a-day-in-a-miner’s-life”experience. “The public comes withthat expectation,” said Klausen. “And

November 2010 | 13

it is still one of the more popularthings. It’s a quirky thing. Goingunderground in a safe way gets peo-ple’s heart rate going.”

The museum has also addressed theissue of the impact that the mine hason the environment. The EPCOR Bri-tannia Mine water treatment plantcleans up water after years of damageresulting from acid rock drainage. Themine museum is a prime example ofthe industry’s ability to meet the envi-ronmental challenges posed by miningand learn from it.

“There were some environmentallegacies that needed to be cleaned up.But that has been done and now theproperty is being used as an educa-tional tool, as a place of discovery foryoung people,” said McPhie. “I think itrepresents the full life cycle of a projectand also that the industry has learnedfrom the past and is very much pro-gressing to a much lighter footprint onthe land in terms of environmentalprotection and stewardship.” CIM

Page 14: CIM Magazine November 2010

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14 | CIM Magazine | Vol. 5, No. 7

At one time, FirstQuantum Minerals’ opera-tions in the DemocraticRepublic of Congo (DRC)held great promise. ItsKolwezi tailings projectand Frontier copper mineemployed more than1,500 people, and thecompany, which investedclose to one billion dollarsin the mineral-rich WestAfrican nation, was one ofits largest mineral extrac-tors and taxpayers.

Today, First Quantum’shopes in the DRC are inruins and the company isembroiled in the courtsand international arbitra-tion, battling an array ofplayers that are divvyingup the spoils from its for-mer holdings. The finalblow came in late August,when Sodimico, a DRCstate-owned mining com-pany, ordered the com-pany to stop all miningoperations at Frontier, the last prop-erty it still controlled.

The Congolese property seizuresare forcing Canadian and internationalmining sector operators and develop-ers to reassess the risks involved indoing business in the developingworld. “The expropriations are a dra-matic symbol of the constant conflictbetween resource holding countries,usually in the emerging markets, andinvestors and sponsors, often from thedeveloped world and backed up byinternational financial institutions,”said Thomas Wexler, a partner atFasken Martineau LLP, and industryspecialist.

Signi Schneider, director of politicaland human rights risks at Export

Development Canada, agreed.“Experts have long been aware of avariety of political, currency andchange of government risks attachedto doing business in developing coun-tries,” said Schneider. “However whena big story like this comes around, itincreases awareness of these risks bothamong the general public andinvestors, who then tend to look forways to mitigate them.”

On paper, First Quantum Minerals’venture into the Democratic Republicof Congo looked well-structured. Thecompany already does business inMauritania and Zambia, two steadyjurisdictions in Africa. So an invest-ment in a more lucrative, thoughriskier, venture in the Democratic

Republic of the Congo looked like agood fit.

The Canadian company’s troublesstarted when the DRC governmentunilaterally reopened 63 mining con-tracts with international players,including First Quantum Minerals,and asked co-signors for additionalconcessions, upfront payments andthe like.

At one point, the DRC governmentsuddenly broke off talks, and thenquickly seized First Quantum’s Kol-wezi tailings project, and then morerecently, the Frontier Mine, which hadopened in 2007 and was expected toyield 1.43 million tonnes of copper inconcentrate during the ensuing twodecades.

First Quantum’s Frontier Mine, expropriated by the Democratic Republic of Congo, is now the subject of international arbritration.

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Outlook darkens for DRC developmentsRecent seizure of assets brings to the fore the risks involved in doing business in developing countries

By Peter Diekmeyer

Page 15: CIM Magazine November 2010

news

November 2010 | 15

Following the Kolwezi seizure,First Quantum Minerals asked theInternational Chamber of Commercein Paris to hold a hearing on itslegality, a move that company offi-cials believe triggered the Frontierseizure. For its part, the DRCannounced that it would investigateFirst Quantum for “suspected wide-scale misconduct.”

The DRC ranked 171 out of 179 inTransparency International’s 2008Corruption Perceptions Index, and182 out of 183 countries in the Inter-national Financial Corporation’s “easeof doing business” listing.

Yet despite the forbidding numbers,some companies appear to be willingto take their chances. “The DRC is ofcourse a special case, with richdeposits and unsettled politics,” saidWexler. “Increasing demand fromAsian buyers and companies will alsolead to further tie-ups with resourceholding countries, often to the detri-ment of more established owners orinvestors.”

First Quantum is not ready to giveup the fight any time soon. In mid-September, the company announcedthat it was taking further legal actionin the matter against players that par-ticipated in divvying up its formermining assets. Its primary targetsinclude two subsidiaries of EurasianNatural Resources, which, CliveNewall, president of First Quantum,said “…had plenty of notice that theywere dealing in stolen property.”

On October 1, the companyannounced that it was heading intointernational arbitration in Washing-ton, D.C. to regain its mining title toits Frontier Mine. The property hasbeen sold to a Hong Kong companynamed Fortune.

“We will continue to drive this legalprocess to its conclusion,” said Newellin a statement. “We are determined toachieve a just outcome and to upholdthe standards of good governance, notonly for our shareholders, but also forthe Congolese people.”

The Democratic Republic ofCongo’s embassy in Ottawa declinedto comment on the matter. CIM

Moving on upCIM incoming president-elect

CIM is proud to welcome Terence Bowlesas incoming president-elect. Bowles, whowas recently appointed president and CEOof the St. Lawrence Seaway ManagementCorporation, brings to the CIM executiveyears of executive-level experience andbusiness acumen. He recently retired fromThe Iron Ore Company of Canada wherehe was CEO and president since 2001.Under his tenure, the company improvedsafety standards, replaced and refurbishedaging equipment, and increased productiv-ity. Once the business process had beenimproved and streamlined, Bowles turnedhis focus to expanding production with a$1 billion capital investment.

A graduate of Laval University in chemical engineering, Bowles went on tocomplete his master’s degree in business administration at McGill University.He later completed the Advanced Executive Program at the Kellogg GraduateSchool of Management and also received the ICD.D designation from the Insti-tute of Corporate Directors Program.

In 1975, following the completion of his MBA, Bowles went to work for theDominion Bridge Company where he was put in charge of the marketing ofindustrial products, which dealt predominantly with the James Bay Hydrodevelopment project.

Bowles later returned to work for Quebec Iron and Titanium in 1976, where heheld various senior-level positions that included production director, vice-pres-ident of operations, senior vice-president planning, technology and finance,executive vice-president and president.

Bowles presently lives in in Montreal with his wife Lise. They have three sons.

John Blake has been appointed president and CEO of Luna Gold Corp.Blake, who has over 30 years of experience in the mining industry, wasrecently the chief executive and director of operations for the Indonesiansubsidiary of Newcrest Mining. He also served as CEO of AustraliaSolomons Gold Ltd., executive director of Agincourt Resources Ltd. andpresident of PT Agincourt Resources Indonesia. He remains a non-execu-tive director of Sihayo Gold, a company developing a gold mine in NorthSumatra, Indonesia.

Toronto-based Stonegate Agricom Ltd. has appointed James P. Geyer to theposition of vice-president, North America , with responsibility for the ParisHills phosphate project in Idaho. Geyer, who has more than 35 years ofexperience in mining operations, is a director of Gold Reserve Inc. andThompson Creek Metals Company Inc. Over the years, he has held severalexecutive positions, including senior vice-president for Gold Reserve andvice-president, operations at Pegasus Gold Corporation.

Page 16: CIM Magazine November 2010

news

ALS Environmental recently movedinto its new laboratory in the Vancou-ver suburb of Burnaby. The new facil-ity, which covers 41,000 square feet, isnotable for having one of the very fewcommercial high-resolution induc-tively coupled plasma mass spectrom-eters (HR-ICPMS) in North America.Tim Crowther, regional client servicesmanager, ALS Environmental, saidthere are only “one or two” in Canadaand “a few” in the United States. Onlyin Sweden is the instrument commonin environmental labs.

“The [instrument] is the mostadvanced technology available for ana-lyzing trace amounts of metals andone of the first broad applications in acommercial environmental laboratoryin Canada,” Crowther said. The HR-ICPMS is not another example of morepowerful technology for its own sake. “Environmental regulators are becom-ing more demanding, especially onmining and exploration work beingdone in northern Canada,” Crowtheradded. “They want lab tests that areaccurate and that can detect baselineconcentrations of metals and other

contaminants in the most pristinewaters in Canada, as well as tests thatcan check for the cumulative effect ofmetals over time. So we need to be ableto provide the service and the resultsthat the regulators, and our clients, askus to provide.”

The HR-ICPMS is about the size ofa sub-compact car. Manufactured by

Thermo Scientific, it costs over half amillion dollars. The instrumentenables the lab to test for extremelylow concentrations (parts per trillion)of metals such as cadmium, lead andzinc in water, fish, vegetation andblood samples, for example. It can alsoanalyze milligram quantities of sam-ples (e.g. from fish biopsies), which

ALS labratory’s highly prized high-resolution inductively coupled plasma mass spectrometer is one of a few commercially available units in North America.

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A clearer resultB.C. lab offers sharper tool for environmental monitoring

By Peter Caulfield

16 | CIM Magazine | Vol. 5, No. 7

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Page 17: CIM Magazine November 2010

enables it to examine the cumulativeeffects of metals in an environmentover time.

The analysis of a sample in the HR-ICPMS begins with the aspiration of aliquid into the instrument, which isthen introduced into a plasma torch.The temperature of the plasma torch isapproximately 6,000 degrees Celsius,or 10 times as hot as a typical pizzaoven. The hot plasma breaks the sam-ple into metal ions, which enables thelab to detect minute quantities of anymetal that may be present in the sam-ple. The more commonly used low-resolution spectrometers often cannotrecognize differences in the masses ofthe metal ions in the sample.

“To compare the HR-ICPMS to themore common low-resolution ICPMSis like watching high-definition ver-susstandard-definition television,”Crowther said. “The picture resolu-tion is far superior.”

Vancouver-based Lorax Environ-mental Services Ltd., an environmental

consulting company, has been makinguse of ALS’s high-resolution mass spec-trometer. Senior environmental geo-chemist Alan Martin said Lorax usesthe instrument for analyzing surface,pore and ground waters. The high-res-olution instrument is able to tacklecomplex contamination matrices, suchas seawater or saline groundwater,without loss of sensitivity.

“For pore water analysis, we haveto conduct all of our analyses on sam-ples that are only four to six mil-ligrams,” Martin said. “ALS hasconfigured its instrument so that it is compatible with these volume limi-tations.”

Martin added that the high-resolu-tion mass spectrometer is extremelysensitive, which enables it to detecttrace elements, even if the sample hasbeen diluted. “The high-res instru-ment also offers excellent spectral res-olution of specific isotopes, whichminimizes the potential for interfer-ence,” he said.

news

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In addition to the HR-ICPMS, thelaboratory has other instruments to dealwith even the most complicated (i.e.many interferences from other elements)samples, such as atomic fluorescencespectrometers (AFS). These spectrome-ters detect the fluorescence of thegaseous form of metals such as arsenic,selenium, antimony and mercury tomeasure their concentration in a sample.

“The spectrometer for mercury is agreat improvement in sensitivity overthe more commonly used atomicabsorption spectrometer and willallow parts-per-trillion levels of detec-tion in waters,” Crowther said.

Another bow in the ALS environ-mental quiver is a collision/reactioncell ICPMS (CRC). Crowther said theCRC measures water and soil samplesthat have a significant concentration ofmetals or chemicals that can interferewith the measurement of other metalsand is a significant improvement overthe more common low-resolutionmass spectrometer. CIM

Page 18: CIM Magazine November 2010

An array of simulator technologies is working itsway into the mining industry and proving to bepowerful tools for both human resources andinvestor relations. A number of Canadian compa-

nies are among the leaders of this new technologydevelopment. Whether the advances come from estab-lished simulator market forces like Montreal-basedSimlog and Edmonton’s 3D Interactive Inc., or from anewer player in mining simulation (but the world leaderin simulation for aerospace and defense), CAE, the nextcouple of years promises a major shift in mine simulationapplications.

Simlog has sold over 1,100 software licences to the min-ing, construction and forestry markets in 45 countries. Thesimulation software is developed in close collaboration withequipment manufacturers and training specialists to ensurethat the realism of the experience is communicated effec-tively to the student. “Compared to costly turnkeysimulators, ours are affordable and better for training basicskills,” says Mike Keffer, director of marketing, Simlog.

The PC-based platform requires a single computer andincludes a wide choice of USB-ready controls. “Each of ourten types of equipment simulators offers a choice of levels ofUSB controls, from inexpensive and not realistic to higherpriced, very realistic OEM controls built using real parts,”says Keffer.

Trainees work through a series of modules focused oncore skills, with exercises becoming increasingly difficult. Onscreen, a generic mine site is modelled under ideal

conditions, although plans are underwayto add slippery and wet driving conditionsas a future option.

Other developments in the worksinclude a redesigned hydraulic excavatorsimulator scheduled for later this year,incorporating new digging simulation andmuch more realistic soil interaction. “Thiswill then carry over to other simulators,such as a dozer simulator, to come in thefuture,” Keffer adds.

Bringing the classroom to lifePeace River Coal in British Columbia

was facing challenges of high operatorturnover. They approached NorthernLights College to create an Aboriginaloperator training program, which pilotedlast summer. The program includedSimlog simulator time and classroom time,as well as real equipment operation at the

mine site. Simulator performance results allow students totarget areas they need to better develop.

Donna Merry, a workforce training/continuing educationcoordinator at Northern Lights College, says the simulator isa valuable asset to the program. “The trainers found anincrease in student confidence and ability gained throughusing the simulator and program,” says Merry. “Now, all fiveof our pilot studentsare working as haultruck operators atPeace River Coal.”

The living mine3D Interactive (3DI)

is creating simulators formining that will usher in anew generation of technol-ogy application, says KellyMorstad, 3DI’s co-founder.“We’re taking advantage ofthe hardware technologynow available and the amaz-ing advancements in thevideo gaming world, andthen adding some propri-etary capabilities to fit inmining; the result is muchmore affordable, advancedsimulation technology.”

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upfrontT E C H N O L O G Y b y H e a t h e r E d n i e

From the desktop to the mine face Next generation simulators range from cost-effective to totally immersive

Screen shot of a fully simulated vehicle from 3DI’s Living Mine simulation package

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A scene from Simlog's mining trucksimulation software

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The mine’s topographical data can be uploaded from anumber of mine software packages or infrared cameras. Onceimported, the data is rapidly textured and rendered. “Yourvirtual as-built mine is ready to train truck operators on theintricacies of the new haul road, but go ahead and add icy ormuddy conditions while you’re at it,” Morstad says.

This year, 3DI will release their second generation of sim-ulated earth technology, which replicates how ore reacts toforces and allows users to dial-in the properties of the type ofore to simulate. “Are you moving hard rock, coal, oil sands oroverburden? Users are free to choose those qualities alongwith climatic conditions — any conditions that are pertinentto operation performance,” says Morstad.

Not satisfied with developing the skills of a single opera-tor, multi-users will connect via a network so even an entireshift can train on how to effectively collaborate to maximizeproduction and safety in multiple conditions. Sessions can becaptured and analyzed to support decisions on operatingpractices. “Operator efficiency directly relates to the drivers’ability to perform their role optimally in the complete drill-to-mill process,” Morstad explains.

Currently, this technology is running in beta and themulti-user interface is being assembled into the workflow.Field trials will begin next year with Barrick, and Morstadexpects to have the full product release by the end of the sec-ond quarter.

Jetting onto the sceneA world leader in modelling, simulation and integrated

training solutions for civil aviation and the military, CAE’slong-term strategy is to leverage its capabilities in new mar-kets — mining is one of them. Last April, CAE acquiredDatamine, a supplier of mine optimization software and con-sulting services. “We believe that by combining Datamine’s29 years of expertise and credibility in mining with CAE’s 60years of experience in simulation-based training, we willdevelop the industry’s most compelling technology and serv-ices geared towards increasing efficiency and improvingsafety of operations,” says Nick Leontidis, executive vice-president, strategy and business development at CAE.

CAE plans to build higher fidelity simulators than thoseemployed in the mining industry today. “Our market analysisshows the majority of simulator training in mining is forequipment familiarization and standard procedures,”Leontidis says. “We are working on a more immersive envi-ronment, based on our aviation full-flight simulators, whichwill allow mining operators to improve all aspects of theirdaily work and make it more efficient and safe.”

Through its Professional Services team, CAE has alreadyconducted work on mining control centres, visualization,database format and simulated vehicle movement for miningcompanies. By leveraging advanced simulation and systemintegration capabilities used for the military, CAE is workingon enhancing those solutions to enable the next generationof mining.

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upfrontT E C H N O L O G Y

New simulators pack HR punchThe scarcity of skilled operators is one of the key issues for

Barrick Gold Corporation today, as they have a number ofyoung, new employees joining their sites. Barrick views sim-ulation as a key tool to assist skills development. “This isparticularly true in countries where, for many, the mineequipment is the first vehicle they will have ever driven,” saysAndrew Scott, director of mining information technology atBarrick. The teamwork simulation offered by 3DI (and, it isexpected, CAE) shows much potential, he says.

Barrick is working with both 3DI and CAE to move theirsimulators forward in the mine environment. “We have a lotof sites with simulators, but have an appetite for better,cheaper, more capable products,” Scott explains. “There isquite a lot of work going on to fill that niche.”

“We’re using simulation not only for skill development,but also for site familiarization,” Scott adds. “Especially forour large, complex sites; we want to avoid our young opera-tors getting lost. It will also enable moving operators betweensites. They will be able to become familiar with the site priorto getting there.”

Scott expects training will be only one application for thenew simulation technology. “We’re now aiming to use the sim-ulation environment for testing, proof of concept and selling theidea of mine automation — it helps tell the story,” he says. CIM

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Page 20: CIM Magazine November 2010

Back in 2003, David Dixon, a professor at theUniversity of British Columbia’s Department ofMaterials Engineering, and then PhD student AlainTshilombo were conducting research on the kinetics

of leaching chalcopyrite, the major source of copper. “Alain ran some experiments to measure kinetics and to

bolster an electrochemical model he was developing,” saysDixon. “And basically the experiments worked way betterthan we expected. I looked at the data and it was so obviousto me there was a process buried in there.”

By June 2004, the researchers had unburied that revolu-tionary hydrometallurgical process and patented it asGalvanox™. It was a process they believed could offer aneconomical and a more environmentally responsible alter-native to smelting, something which existing

An elegant alternative to smeltingChalcopyrite leaching process leaves a smaller footprint

hydrometallurgical processes hadnot succeeded in doing to date ona widespread basis. As a result,approximately 80 per cent ofworld copper production is stillproduced by smelting chalcopy-rite concentrates.

“The efficient and easy andconvenient hydrometallurgicaltreatment of chalcopyrite has beencalled the ‘Holy Grail’ ofhydrometallurgy,” says Dixon. “Itwas viewed as the ultimate goal.There’s a huge amount of researchon the subject and most of it hasbeen more tragedy than comedy.We sort of felt we’d found theHoly Grail. It’s so easy, so straight-forward and the lowest cost of allthe existing hydrometallurgicaltreatments.”

“Sledgehammer free”In fact, Galvanox™ is a

groundbreaking shift from otherhydrometallurgical processes, allof which rely on what Dixondescribes as three sledgehammers:high temperature, ultrafine grind-ing and corrosive chemicals suchas chloride to extract the copperfrom the chalcopyrite. “All thesesledgehammers have technicaland economic drawbacks,” says

Dixon. “Galvanox™ is basically sledgehammer free. It runsat 80 degrees Celsius, which is well below the boiling point,it’s pure sulphate solution, there’s no chloride, there’s noammonia, there’s no nitrate, no chemical additives. Youdon’t even add sulphate because it comes from the ore itself.Everything you need for the leaching chemistry is gener-ated from the ore. You just add water and oxygen.”

“It’s actually a very simple process,” Dixon explains.“Instead of the sledgehammers, we use a catalyst, which ispyrite, and the pyrite typically comes from the ore. Whenpyrite particles come into contact with chalcopyrite parti-cles, they can alleviate the need for chalcopyrite to supportits own cathodic reaction. This means that chalcopyrite canbecome a pure anode and pyrite can become the surrogatecathode. This allows the chalcopyrite to break down

20 | CIM Magazine | Vol. 5, No. 7

upfrontP R O C E S S I N G b y A l e x a n d r a L o p e z - P a c h e c o

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unimpeded. This is called a “galvanic couple” and is whatgives Galvanox™ its name.”

Economically and environmentally, the advantages ofGalvanox™ are notable. “The plant emissions are very min-imal,” says Dixon. “It doesn’t generate a lot of acid, so wedon’t have voluminous tailings. The resulting sulphur iscompletely inert but you also have the option of recoveringthat sulphur separately and compressing it into bricks andmaybe even selling it to another company that could use it.”

Any hydrometallurgical process reduces the environ-mental footprint of ore processing in contrast to smeltingsimply because it cuts back on the need for shipping,since the ore can be treated on site at the mill. “Basically,the hydrometallurgical plant is an extension of the mill,but unlike the other processes, Galvanox™ can treat tail-ings,” says Dixon. “We have successfully piloted theprocess on a tailings material that had 0.85 per cent cop-per. And we were able to recover more than 90 per centof that copper.

What Galvanox™ would allow an operator with a low-grade deposit to do is to optimize the mill for clean,high-grade copper concentrate for shipping (and whenyou ship a 30 per cent concentrate, that’s more economi-cal than shipping a 25 per cent concentrate) and thentake the losses of copper into the tails and treat those andrecover that copper. That means, with Galvanox™ as partof the mill, your total recovery may go from 95 per centwith a medium-grade concentrate, which is expensive toship, to 98 or 99 per cent with a high-grade concentratethat is cheap to ship, and high-grade copper cathode fromthe tailings, which you can sell at a premium. So it reallysweetens the economics of the whole operation.”

Anticipating demandThe technology has impressed South

African-based Bateman EngineeringProjects: Global Technology, a divisionof Bateman Projects Limited, which in2007 acquired the rights to exclusivelymarket the Galvanox™ technology inabout 20 countries.

Since then, Bateman and UBC havepilot-tested three concentrates success-fully at a purpose-built testing facilityin Richmond, British Columbia, andhave been able to produce LME GradeA Copper Cathode using theGalvanox™ process. As well, “Batemanand UBC have studied and tested atbench scale over 30 different concen-trates from copper producing regionsthroughout the world,” says LinusSylwestrzak, technical manager,Leaching Centre of Excellence atBateman, which has identified more

than 15 greenfield projects where the Galvanox™ processcould be successfully applied.

The copper mining industry is facing challenges in thecoming decades as copper deposits become lower in gradeand difficult to recover economically. “Alternative technolo-gies will need to be developed and commercialized to satisfyworld demand for copper,” says Sylwestrzak. “Traditionalcopper smelters are placing ever-increasing restrictions fordeleterious elements such as arsenic on concentrates, butthe number of these types of copper deposits that are con-sidered for mining is increasing. Galvanox™ offers theopportunity to treat these types of copper ores economicallyand dispose of the deleterious elements in a safe, environ-mentally stable manner.”

It is also, says Sylwestrzak, a self sufficient process. “It isits own reagent maker by being able to generate acid andheat requirements for the process internally. This allows theprocess to reduce operating costs and not be reliant onother processes,” he explains.

“Significant opportunities also exist for current copperoperations to consider combining a Galvanox™ processwith a traditional smelter. It allows the traditionalgrade/recovery relationship that flotation concentratorsoperate at to be broken and to recover additional copperotherwise lost to tailings,” Sylwestrzak adds. “TheGalvanox™ process is flexible in being able to economi-cally recover copper from ore feeds as low as 0.85 per centcopper to grades of over 30 per cent.”

The next stepFor all its promise, Galvanox™ faces a hurdle — one

that has nothing to do with the technology itself. “Thehardest challenge with any technology is finding a mining

November 2010 | 21

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Page 22: CIM Magazine November 2010

company to partner you through the early development andcommercialization stages because the perceived risks arehigher,” says Sylwestrzak. “The mining industry is fairlyconservative, and large mining companies today will alwayswant to be the ‘first to be second’ because the risks of takingnew technologies into operating plants today are seen to bevery high. If someone else has taken the risk out of devel-oping the technology, the operating companies feel happierto consider and apply such new technologies.”

Bateman, however, is confident that it will be able to over-come this hurdle, not just because of its belief in Galvanox™,but also because it has previous success in commercializingand delivering two new leaching technologies to the coppermining industry: the Mount Gordon and Sepon Copperleaching processes. “We see the Galvanox™ process as astepping stone from those processes because they were aimedat treating only secondary sulphides, while Galvanox™ isable to treat both primary and secondary copper sulphides,provided a source of pyrite is available,” says Sylwestrzak.

“To ‘de-risk’ a project, Bateman and UBC complete aseries of amenability tests for prospective Galvanox™ plant

opportunities when an initial inquiry is made regarding theprocess,” Sylwestrzak explains. “This work only requiresone kilogram of copper concentrate and can be completedin six weeks. Following a review of the amenability testwork, Bateman recommends completing a scoping study,which produces high-level techno-economical evaluationfor the process so it can be compared against the costs ofdeveloping a concentrator and selling concentrate to asmelter for toll treatment. At the conclusion of these feasi-bility studies, the mine operator is able to make a decisionas to whether to proceed with the commercialization of theprocess or complete further work.”

Dixon understands the reluctance of mining companieswanting to avoid technological risk but he points out: “Inthe Galvanox™ process there’s exactly one part that has notbeen used before. Every other piece of technology in theflow sheet is absolutely dead-certain proven. There’s nothingnovel about the rest of the flow sheet. It’s very conventional.So there’s really only one element of technological risk andas soon as someone builds a plant and shows it works well,there will be zero technological risk.” CIM

Achievements

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upfrontP R O C E S S I N G

Cutting-edge business savvy BioteQ Environment Technologies Inc. has beenawarded the Business Excellence Award forOutstanding Innovation and Best Practice by theCanada China Business Council at a gala reception inBeijing, China. The award recognizes the success ofBioteQ’s strategies in the Chinese market, and this mar-ket’s impact on the company’s competitive edge andfinancial performance.

Brad Marchant, BioteQ’s CEO, was honoured to receivethis recognition, “China is an important market forBioteQ,” said Marchant. “Our success there is due to thecommitment of our joint venture partners, Jiangxi CopperCompany and our operations team. We anticipate contin-ued growth in China as we expand our portfolio ofindustrial water treatment projects.”

Going green makes good business senseThe Mining Association of BC (MABC) has awarded fiveworthy recipients with the 2009 BC Reclamation Awardsat a banquet celebrating excellence in mine reclamation.

MABC president Pierre Gratton congratulated the win-ners and applauded their strong commitment toreclamation. “As the current renaissance in B.C. miningtakes hold, the significance of reclamation cannot beoverstated,” he said. “The ability to open new mines is

not only based on economic feasibility, but also on thesize of the footprint, the impact on water quality and thereclamation design.” The recipients are: • Lehigh Materials, Sechelt Mine — BC Jake

McDonald Mine Reclamation Award• Northgate Minerals Corporation, Kemess South

Mine — Metal Mining Reclamation Citation • Teck Coal Limited, Elkview Operations — Coal

Mining Reclamation Citation • Alpha Gold Corporation, Lustdust — Mineral

Exploration Reclamation Citation • CertainTeed Gypsum Canada Inc., Windermere

Mining Operation — Quarry Reclamation Citation

Cameco makes “A” list of best employersCameco has been named one of “Canada’s Top 100Employers” in a national competition organized byMediacorp Canada Inc. and published in The Globe andMail. This is the second consecutive year the companyhas been lauded with this recognition. Now entering its12th year, the “Canada’s Top 100 Employers” competi-tion is an editorial project organized by MediacorpCanada Inc., a specialty publisher of employment guidesand periodicals. Cameco CEO Jerry Grandey is proud ofthe recognition: “This third-party recognition confirmsthat our company-wide effort to create a positive,respectful and diverse workplace is succeeding.”

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upfrontE D U C A T I O N / O U T R E A C H b y M a r l e n e E i s n e r

Sean McCormick figured he had nothing to lose, andeverything to gain, when he called up the managersof the Capital for Aboriginal Prosperity andEntrepreneurship Fund (CAPE). McCormick, the

36-year-old owner of Blue Moose Clothing Company Ltd.,read an article about the fund and decided he had a better-than-average chance of attracting their attention.McCormick, who is Metis, started his company out ofWinnipeg in 1997, producing authentic, high-quality moc-casins, mukluks, mitts and gauntlets, using traditionaldesigns dating back thousands of years. Selling mostly togiftware boutiques, in August 2009 he decided to launch theManitobah Mukluks brand to expand the line into thefootwear industry and go global. The CAPE Fund seemed anideal vehicle to help him grow.

Former Prime Minister Paul Martin and his son David setup the fund last year. It is a mid-market, $50 million, privateequity fund, which has attracted investors looking for a dis-ciplined, socially responsible investment vehicle that canalso provide positive rates of return. The mission of theCAPE Fund is to “further a culture of economic independ-ence, ownership, entrepreneurship and enterprisemanagement among Aboriginal peoples, on- or off-reserve,through the creation and growth of successful businesses.”Investments range from one million dollars to $7.5 million.

Social capitalMining firms back Aboriginal business development fund

“It’s hard for a small companyto handle exponential growth,”explains McCormick, who will usethe common equity investment ofbetween one million and threemillion dollars from the CAPEFund to help fuel the expansion.In addition to the dollars pro-vided, the fund is structured toprovide broad-based support.“The CAPE fund has a wealth ofvery successful business peoplethat have a lot of experience andprovide support to help smallbusinesses turn to medium-sizebusinesses — and that includesmanagement and financial sup-port,” he says.

Lofty intentionsWhen the Martin family estab-

lished the parameters of the CAPEFund, the goal was to provide cap-ital for investment projects whiledeveloping managerial skills and

entrepreneurial talent among Aboriginal Canadians. Theyapproached members of the business community to investin more than a financial strategy; they encouraged them tobe a part of the capacity building that many Aboriginal com-munities require to ease poverty and sharpen businessacumen.

“We wanted to attract Canada’s private sector to thisproblem and find a vehicle to get it involved,” explainsCAPE Fund’s David Martin. “Basically, the challenges for ourAboriginal peoples are economic and social, and they gohand in hand. You’re talking about the youngest and fastestgrowing segment of our population. Most are under the ageof 25, and it’s either going to be a lost opportunity if we don’taddress the issue or it will form part of a solution toCanada’s impending labour problem,” says Martin, who sitson the committee that decides which companies are consid-ered for CAPE funding.

In the last two years, approximately 200 companiesacross Canada have been vetted, with two so far receivingCAPE support, and others about to be completed. Alongwith Manitobah Mukluks, One Earth Farms benefited froma three million dollar investment in common shares as partof the company’s $42 million first-year fund raising led bySprott Resources. One Earth managed over 32,000 hectaresof agricultural land in 2010 on its way to its target of over

The management behind the Manitobah Mukluks brand has native roots and, backed by equity investment from the CAPEFund, global ambitions.

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400,000 hectares in the coming years, on tracts from Albertato Manitoba.

Setting the foundationPeter Forton and Alex Farley, the CAPE management

team, have extensive experience in private equity andinvestment banking. They are supported by an investmentanalyst and a member of the Missapawistik Cree Nation inManitoba. The managers’ roll is to promote the fund andseek out and evaluate promising investment opportunitiesthat match its mission. “We look to fund sustainable busi-nesses and increase the percentage ownership andmanagement involvement of our Aboriginal partners overtime,” says Farley. “For our investments to be successful, wemust generate both financial and social returns.”

“We are looking to fund the growth or the acquisition ofestablished medium-sized enterprises or businesses thathave the potential to reach this level; we are not looking tofund small gas bars or convenience stores,” says Farley. “Thefund can also do ‘startups’ but only where there is an expe-rienced joint venture partner with specific industrybackground in the business area of the enterprise. In theend, our objective will be to create and/or support thegrowth of seven to ten successful Aboriginal businessesacross the country, and prove that the CAPE model can workand is worthy of ongoing and increasing investor support.”

The business world comes togetherThe CAPE Fund has 21 investors from the banking, con-

struction, insurance and resource sectors, each of which hascontributed approximately $2.5 million. A representativefrom each company sits on the fund’s advisory committee.Six are from resource companies — Barrick Gold, Goldcorp,Teck, Xstrata Nickel, Nexen and Vale — yet there is no guar-antee the businesses chosen will end up in mining’sbackyard.

“Mining projects, by their nature, tend to be very capitalintensive and likely beyond the scope of direct investmentfrom the Fund,” says Forton. “Yet there are many spin-offbusinesses, such as construction, drilling, catering, trans-port, logistics, etc., that support the industry, which wouldbe targets for us where they involve Aboriginal partners.”

Paying it forwardPeter Sinclair, vice-president of corporate social responsi-

bility at Barrick Gold, sits on the advisory committee of theCAPE Fund. He says his company became involved becausethe social aspect of the fund reflects the corporate values atBarrick. “We think this is a fantastic initiative, with a uniqueapproach to support local Aboriginal-run businesses; thatwas really what caught our imagination. It has a focus onentrepreneurial activities that is very closely associated withhow Barrick started out.”

Supporting an initiative that does not necessarily havemining as its top priority is not a problem, says Sinclair.

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upfrontE D U C A T I O N / O U T R E A C H

“I think the main message for us is that this is very closelyassociated with our core values and philosophy as a com-pany: that is, business with an entrepreneurial flavour,driving economic and social growth. The dual mandate offinancial and social return is why we think this is a fantasticopportunity.”

Lee Nehring, vice-president of sustainability at XstrataNickel, also sits on the CAPE Fund advisory board. “Theability to raise equity is one of the greatest impediments toAboriginal businesses and that’s why the Fund is an oppor-tunity for Xstrata to be part of the solution,” says Nehring.

In the case of Xstrata Nickel, whose mining concerns arein close proximity to the Inuit, First Nation and Metis com-munities of northern Quebec and Ontario, the underlyingsentiment is that some of the fund’s investments will findtheir way to local businesses. “We hope the CAPE Fundinvestment will lead to greater investment to Aboriginals ingeneral and naturally we hope some of those will be close toour operations,” says Nehring. “Mining relies on a widespectrum of technical services, and buying local is veryimportant to our business. The Canadian mining industry isone of the largest employers of Aboriginals in the country,and anything that increases the number of Aboriginalemployees and contractors is a win for us.” CIM

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Mining put B.C. on the map,and the province remains fullof potential, but for years ithas seemed destined to

remain full of unrealized potential. Thecurrent government committed tochanging that. In 2003, as the sectorbegan to heat up, a government taskforce started work to develop a strategyto support a reinvigorated and sustain-able mining industry. The BritishColumbia Mining Plan was the result.The plan, released in 2005, listed a num-ber of actions to be taken related toAboriginal engagement, incentives,health and safety and access to land. InSeptember, CIM Magazine spoke to theHonourable Randy Hawes, B.C. Ministerof State for Mining, to discuss the planned and unplannedevents that have unfolded.

CIM: This summer yielded three revenue sharing agreementswith First Nations, inspiring some to declare a mining renais-sance in B.C. What do these agreements mean for the province?Hawes: It’s not a big secret that getting a mine permitted inB.C. has had a great deal of difficulty as we work through theconsultation/accommodation process with First Nations. Ithink we were ranked 78 out of 78 in the Fraser Institutesurvey related to the Aboriginal question. We made the deci-sion to change this and begin directly engaging FirstNations. The first two successes were the Kamloops areabands that we made an agreement with on the New AftonMine and now we have one with the McLeod Lake Band onMt. Milligan. In the case of the New Afton Mine the agree-ments are going to provide probably $30 million over the lifeof the mines, as well as jobs and training, which sends animportant message to First Nations across British Columbia.

CIM: Some suggest that these agreements are the “low hangingfruit” when it comes to reaching agreements with Aboriginalstakeholders. What do you believe these agreements mean forthe future?Hawes: I hope that what’s going to happen is other FirstNations are going to see the benefit that is going to directlyflow through these agreements, and when there is a revenueproposal in their territory, they’ll be anxious to sit down anddiscuss the same kind of thing with us. So I’m hoping that itmakes the whole process much easier and it is much morelike a partnership than the confrontational approach thathas characterized the past.

Shaking off the pastB.C. poised for development, says the government’s mining point man

CIM: What were the most important lessons you learned from the process ofworking out these first agreements?Hawes: First Nations negotiators arevery skillful — that was lesson numberone. These are not easy agreements toput together. The bigger lesson wasthat by working together in a coopera-tive framework we are able accomplishsome things that might otherwise havebeen much more difficult.

We have been talking to theNak’azdli, although we don’t have anagreement with them yet regarding Mt.Milligan. We are also talking to theUpper North Simalkameen aboutCopper Mountain, and we will be sit-ting down with the Tahltan, as Red

Chris gets underway.

CIM: If there are agreements to come, can we expect thatthey will be similar to the ones already completed?Hawes: For all agreements, the money needs to go intobuilding an economic base and community developmentin the First Nation territory. There is no fixed percentage;there is no dollar amount. There are many, many variablesthat go in: How big is the mine? What kind of revenue canwe expect? How big is the First Nation? How many FirstNations are going to be affected? It could be one minewith half a dozen bands sharing revenues.

CIM: We have not seen a progress report on the five-year-oldBC Mining Plan from the province since the recession hit.Beyond the revenue sharing work, what are the greateststrides that have been made since the update in early 2007? Hawes: We are continuing to push the federal governmentfor the “one project-one review” which was one of themajor elements of the mining plan. There has been a littlebit of progress. The feds have passed legislation that I thinkstreamlines the federal assessment process, but we are notwhere we want to be yet, although we have been workinghard on that. We have continued to be a leader in minesafety in Canada; we’ve put a safety audit program in place;the annual mine rescue competition has continued as well.We’ve spent quite a bit of money on reclamation. The flow-through share agreement has been extended to 2013. We’veextended the exploration tax credit until 2016. We’ve hearda lot from companies saying the permitting process is tooonerous, so we are asking them to make a multi-year application.

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upfrontQ & A b y R y a n B e r g e n

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upfrontQ & A

a mine permitted, through an environmental assessment,and operating would have been very remote. We will becompensating the companies that have tenure there. Thisisn’t a precedent for anywhere else. Of course, the industryis not happy with this decision, and I understand why. At thesame time, I think we have shown with other initiatives thatthe door is open for mining. We encourage it, we support it,but just not in the Flathead.

CIM: Is there anything you would like to challenge the industryto improve on?Hawes: Yes. It relates to the Aboriginal question. We areworking on revenue sharing, but it is absolutely critical —beginning with the exploration stage and further into devel-opment — to build a relationship with the First Nations.And you build that relationship by talking honestly andfrankly and by, wherever possible, providing employmentand training. It is very clear that those companies that havedeveloped a great relationship before we come in to talkabout revenue sharing make it a much easier process. Butwhen a company comes in and is a little high-handed andpasses off the responsibility of engagement to the province,it is a much tougher ride. CIM

We are also coordinating permits using a “single-windowapproach” for licensing, referrals, registrations andapprovals.

CIM: What about the Northwest Transmission Line and otherinfrastructure developments?Hawes:We’ve committed the resources and begun the devel-opment on Highway 37 electrification. That’s about as big asyou can get, in terms of infrastructure projects.

There are a number of mines that we believe are going tobe developed along Highway 37. With electrification, theeconomics for these projects begins to look a lot better. Weare really hoping the Galore Creek Mine goes ahead andthere are other mines up there that are going to becomemuch more viable.

Also, the port of Stewart is going to see some considerableenhancements, we believe. As a deep, all-weather port inNorthwest B.C., it is important, as there are a number ofmines that would be looking to use Stewart. The owner ofthe port there is quite happy to expand capacity as required.

CIM: Hostility toward mining is something everyone interested indeveloping the province’s resources must confront. If moreprojects get underway, how will the government address theresistance?Hawes: I think the response is through education, amongother things. There isn’t a day that anyone here could gothrough without using something that has been mined.There probably isn’t even an hour. People need to under-stand that products in our daily lives come fromsomewhere. Every time we have a mine proposal we havesomeone from the environmental community stronglyopposed to it. I’ve started challenging them: ‘If you don’twant to see mining in British Columbia, where do you wantto see it? Do you want to see it in weak states that don’thave the capacity to enforce labour and environmental stan-dards?’ We have high environmental standards and ourmines in B.C. are very safe. Our workers’ rights arerespected, and mining is the highest paying heavy industryon average. Many people already do understand this. InPrinceton, near the Copper Mountain Mine scheduled toreopen, one third of the town’s population came to an openhouse to have a hot dog and celebrate the occasion. I under-stand that sometimes people don’t want something in theirbackyard but, frankly, we need these minerals.

CIM: Following the recent decision to prohibit mining in theFlathead Valley, uncertainty about protected areas in B.C. con-cerns many in the mining industry. Are those concernswell-founded and if not, why not? Hawes: This decision was not just about mining. Discussionsabout the area had been going on for a long time betweenB.C. and Montana and the two federal governments. TheFlathead is a pretty unique place and the chances of having

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BC. “In the ‘90s, there was an exodus of mining companiesfor a whole host of reasons. The only reason the industrykept going was because there were some existing minesin place.”

But the past is the past, says Gratton, who believes theprovince is undergoing a mining renaissance. “The north-east coal region, which was down to no operating mines inthe early 2000s, now has four operating mines with thepotential to reach five or six in the next year,” says Gratton.“We’re also seeing a resurgence in base metal activity,” hecontinues, pointing out a number of projects in variousstages of permitting and commissioning.

In fact, the PricewaterhouseCoopers report lists nofewer than 13 projects in various stages of permitting, anda further seven engaged in exploration work. This explo-sion of activity has not gone unnoticed by the provincialgovernment, which has eagerly embraced the promise ofboth tax revenue and the new jobs these projects promiseto deliver.

To make the operating in the province a more appealingprospect, the B.C. government has acted in two directions

Despite its wealth of natural resources, BritishColumbia has had a difficult few years. Themountain pine beetle has bored into the heartof the province’s forestry industry, and theglobal financial crisis compounded the dam-

age. Similarly, mining — another pillar of B.C.’s economy —has suffered. An industry survey published by Pricewater-houseCoopers in May of this year highlighted the impact of2009’s decreased demand: virtually every type of mineralB.C. produces saw a drop in revenue. Metallurgical coal,which accounts for just over half of the province’s net min-ing revenues, was down 24 per cent in shipment volumesand saw a 40 per cent price decrease compared to 2008.

As a victim of the economic downturn, the province isnot unique. The mineral resource sector, however, has beenin the doldrums for some time. Randy Hawes, theprovince’s Minister of State for Mining, puts it simply: “Nonew metal mines have been started up in British Columbiain the past ten years.”

“We went through a pretty dismal decade,” explains PierreGratton, president and CEO of the Mining Association of

Imperial Metals’ Red Chris gold-copper-silver property lies on a plateau, 1,500 metres above sea level, 80 kilometres south of Dease Lake in northwest British Columbia.

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mining in B.C.

Power and the peopleInfrastructure and engagement vital to mining resurgence in B.C.By Dan Zlotnikov

Page 29: CIM Magazine November 2010

simultaneously: initiating new infrastructure developmentprojects and signing mining revenue-sharing agreementswith three First Nations bands.

“B.C. never entered treaties with most of the FirstNations,” Hawes explains. “The supreme court here hasruled that there are rights and titles that exist in B.C. thatwere not extinguished through treaty-making or any othermeans, so we are obliged by law to enter this consultationand accommodation process.”

A jolt of energyThe most prominent of the infrastructure projects is the

Northwest Transmission Line, or NTL, currently in the finalplanning stages at BC Hydro. The NTL is planned as a 335-kilometre, $404-million clean power expansion project fromthe Skeena substation near Terrace northward to a plannedsubstation at Bob Quinn Lake. Following the Highway 37 cor-ridor, this new 228-kilovolt extension will bring power to bothcommunities and industrial developments in B.C.’s northwest.

The line is an important catalyst for the level of miningactivity in the vicinity. Of the 20 exploration or development-

stage projects in the province, seven are located along theHighway 37 route. The importance of the NTL for theseprojects cannot be overemphasized. As Imperial Metalsstates on its webpage for the Red Chris gold-copper-silverproject, “The (2005) Red Chris feasibility study was basedon the assumption that power supply would be available atTatogga near Iskut, a distance of 23 kilometres from themine site.”

Another beneficiary will be the Galore Creek project, ajoint venture between NovaGold Resources and TeckResources. Rhylin Bailie, director of corporate and investorrelations, NovaGold, says the plan was always to bring apower line to the site, but now the project will be able to tieinto the new transmission line at a much lower cost.

“There’s been a lot of interest in the project, and a lot ofpeople are looking for it to succeed,” says Tim Jennings,senior project manager, Transmission & Distribution MajorProject Delivery at BC Hydro. “We’ve already signed on ananchor tenant and obtained federal funding for the project.”

That tenant, AltaGas, has inked a deal with BC Hydroworth $180 million, and is in the process of building the

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mining in B.C.

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mining in B.C.

$700-million 195 MW Forrest Kerr hydroelectric facility, tobe connected to the NTL at the planned Bob Quinn Lakesubstation.

Looking beyond the existing developments, the NTLpromises to have an enormous impact on future miningdevelopments in northwestern British Columbia. Compa-nies stand to realize significant cost savings by avoidingthe use of diesel generators, but a ready supply of cheap,green energy will also create opportunities for local busi-nesses, quite possibly in serving the needs of the nearbymines of the future.

The NTL is not the only provincial initiative. The CaribooConnector, a widening of 460 kilometres of Highway 97,is currently in the first stage of a $200-million construc-tion project. According to the Ministry of Transportation,Highway 97 has seen only a three per cent increase inpassenger traffic from 2000 to 2003, but heavy trucktraffic jumped by 28 per cent over the same period,prompting the decision for the expansion. Stretching fromPrince George in the north to Cache Creek in the south,the highway will offer a much-improved link between the

mining, forestry, and oil and gas centresand the southern part of the province —notably the port of Vancouver.

Rounding out the infrastructure growthscene is the Infrastructure Royalty CreditProgram, aimed at encouraging naturalgas and petroleum production in thenortheast of the province. Under this pro-gram, the province offers royalty credits tocompanies engaged in construction ofnew pipelines and roads. According to anAugust press release from the Ministry ofEnergy, Mines and Petroleum Resources,B.C. has awarded $485 million in creditssince the program’s introduction in 2004.For its investment, the province has seen71 new road-based and 83 pipeline-basedprojects take place.

Sharing the wealth of the earth

The other major government initiative isa landmark decision that will enable FirstNations stakeholder communities to bene-fit from the mineral wealth of their ances-tral lands. The B.C. government recentlyannounced the signing of two revenue-sharing agreements, known as economicand cultural development agreements(ECDAs). One is with the Tk’emlups andSkeetchestn First Nations, on whoseshared territory the New Afton project is tobe built, and the other is with the McLeodLake Indian Band, whose lands will hostthe Mt. Milligan copper-gold project,

recently scooped up by Thompson Creek Metals Companyin its acquisition of Terrane Metals Corp.

The response from the First Nations signatories tothe agreements has been quite positive. Chief ShaneGott friedson, of the Tk’emlups First Nations, says theprocess was ambitious and the agreement an importantmilestone.

“I think the deal-maker was that roughly a year ago, wehad a meeting with Premier Gordon Campbell, AttorneyGeneral de Jong, Aboriginal relations minister Abbott, andmyself and the chief of Skeetchestn,” says Gottfriedson.“We also invited Phil Fontaine, our national chief at thetime, to attend. Basically, it was a high-level protocol meet-ing, and we said, ‘Let’s try to work something out that isunique and that shows the goodwill of the two govern-ments, and let’s make it something that’s historic.’ We basi-cally came out with the agreement this summer, signingthe largest revenue-sharing agreement I’ve heard of withinCanada, and we’re pretty excited about that.”

From the government’s side of the process, MinisterHawes feels that the ECDAs are a very significant step

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mining in B.C.

towards improving the often strained relationshipbetween First Nations and mining companies. “I think they’re going to be the shin-ing beacon that will lead us into amuch better relationship in terms ofresource development in FirstNations territories,” he says.

The B.C. government’s position isthat the revenue-sharing agreementsare the way to proceed. “For everysignificant expansion or new mine inB.C., we’ll sit down with the FirstNation and negotiate revenue shar-ing,” Hawes says.

Prosperity in the balance

These first agreements areimportant advances, but the pathforward is still a challenging one. Taseko Mines’ Prosper-ity development, about 250 kilometres northwest of theNew Afton project, is not without controversy. The projecthas completed two distinct environmental assessmentprocesses, one provincial and one federal. In January, the

provincial government gave its approval to the project, butthe federal government has yet to make a final decision,

although the cabinet is expectedto do so imminently.

At issue, explains Brian Battison,vice-president of corporate affairs,Taseko Mines, is that in order tobuild the mine, Taseko will have todrain Fish Lake. “We searched longand hard for an alternative thatwould accommodate the retentionof the lake, and there just isn’t oneavailable; that’s because the orebody is immediately adjacent[downstream] of the lake,” heexplains. “In fact, were you to oper-ate this mine through its full minelife potential, the rim of the pit actu-ally would encroach on the lake.”

On the opposing side of the argument are the communi-ties of the Tsilhqot’in First Nation, that consider Teztan Biny— the Tsilhqot’in name for Fish Lake – to be their sacredancestral fishing territory. Stewart Phillip, Grand Chief of theUnion of British Columbia Indian Chiefs, does not accept

November 2010 | 31

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We’re caught in the middle

of a serious strugglebetween the First Nations

and the Crown about who has control

over the land.

— B. Battison

Page 32: CIM Magazine November 2010

Taseko’s position that there is no alternative to the drainingof the lake. “We’ve been down this road before with theKemess North project and I think that the mining industry issimply attempting to kick this door in,” he says. The KemessNorth proposal also required the destruction of a lake, andwas denied a permit for that reason.

“It will allow them to obliterate lakes, to have them des-ignated as tailing pond impoundment areas, and it will ben-

efit their bottom line,” Phillip says. “The expression I used isthat they’re going to have to sharpen their pencil more, andI think if they do that then we won’t have to do this againwhen the next company comes along.”

A deeper struggleWhile at first glance this confrontation is about a lake,

there are much deeper undercurrents and very serious andlong-term implications,whichever way the decisiongoes. “I don’t think we shouldlose sight of the fact that theTsilhqot’in national govern-ment, in particular the Tl’et-inqox-T’in, were verysuccessful in advancing theirAboriginal title and rightsissues through the courts,and that litigation is stillongoing,” says Phillip. “Had itnot been for a technicality interms of the pleadings, therewould have been a finding ofAboriginal title.”

Battison says Taseko is inan awkward position. “We’recaught in the middle of aserious struggle betweenthe First Nations and theCrown about who has con-trol over the land,” heexplains.

The ultimate questionbeing decided, Battison con-tinues, is “Do First Nations

mining in B.C.

Facilities including the snow canopy were installed at NovaGold's Galore Creek in 2007 before construction was suspended. Thecompany says it will release a pre-feasability study on the property next year.

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Imperial Metals’ Red Chris camp, situated 23 kilometres by road from Highway 37. Construction on larger camp facilities to house 60 employees is under construction.

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have a veto over land use in the province. Should the fed-eral government decide no to the Prosperity project, then itwould send a loud and resounding signal to mineralinvestors that I think could be interpreted as First Nationsdo in fact have a veto. And I think that would be viewed byoil and gas, forestry, mining, recreation, ranching, agricul-ture and tourism as a very troubling signal.”

Battison’s sentiments are echoed by the Mining Asso-ciation of BC’s Pierre Gratton. “A veto on decision-makingin the current context is problematic for, I think, all indus-tries in B.C. without clearly laid out rules that you couldfollow,” Gratton says. “Investors would be very wary ofspending years and millions of dollars meeting or exceed-ing regulatory requirements and reviews only to fail at thefinal hour because of opposition by one group or part of agroup.”

At the same time, Gratton adds, “I think opportunities forgreater engagement are worthwhile and important. FirstNations have lived in B.C. for thousands of years and theyshould be properly engaged and feel that they’ve had achance to participate effectively. I think there are obviouslyquestions coming from them or concerns that that’s notreally done effectively.”

Greater engagement is something Hawes advocates aswell, pointing out that while the mining companies are not

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required to negotiate IBAs with the First Nation stakehold-ers, having an IBA in place goes a long way to establishinga good relationship.

“We advise the companies, if you don’t develop a rela-tionship with the First Nations in whose territory you wantto establish, you’re going to be going down a very rockyroad,” says Hawes.

When asked whether she is concerned about the futureof her company’s projects if the First Nations in B.C.receive veto powers over mining development, Nova Gold’sBailie answers categorically “no.” “That’s why we get infrom day one and work with the First Nations groups,” sheexplains. “It’s so that we understand where they’re comingfrom and they understand where we’re coming from, andwe’re really working together to develop the project. I thinkthat makes all the difference in the world.”

If mining development is to continue in British Columbia,a balance will have to be struck between Aboriginal rightsand mineral investor certainty. The mid-year update to theFraser Institute report shows the province has climbed onthe subject of uncertainty over Aboriginal land rights. Itwas, prior to the revenue-sharing agreements, in fifth place– from the bottom. Clearly, companies are still concernedand many are certainly waiting for the legal landscape tostop shifting and the dust to settle. CIM

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Page 35: CIM Magazine November 2010

Malgré ses richesses naturelles, la Colombie-Britan-nique a connu des années difficiles. Le dendroc-tone du pin ponderosa a grandement nui à

l’industrie forestière, sans oublier la crise financière mondi-ale. L’industrie minière, un pilier de l’économie de cetteprovince, a aussi souffert. Un sondage publié par Pricewa-terhouseCoopers en mai dernier a souligné l’impact de lademande moindre en 2009. Les revenus provenant depresque tous les types de minéraux ont chuté. Le charbonmétallurgique, qui compte pour un peu plus de la moitiédes revenus miniers nets de la province, a vu le volume deses expéditions diminuer de 24 pour cent et son prixchuter de 40 pour cent par rapport à 2008.Randy Hawes, le ministre d’état pour les Mines, résume

simplement : « Aucune nouvelle mine de métal n’est entréeen production en Colombie-Britannique au cours des dixdernières années. »Pierre Gratton, président-directeur général de la Mining

Association of B.C., explique : « Nous avons eu une décen-nie difficile. Les mines existantes ont à elles seulespréservé l’industrie. » Mais c’est du passé, croit-il. « Larégion houillère du Nord-Est, qui n’avait aucune mine en

exploitation au début des années 2000, en a maintenantquatre et le potentiel d’en avoir plus l’an prochain. Plusieursprojets de mines de métaux sont à l’étape des permis et dela mise en service. » Le Gouvernement provincial veut aussi avoir une crois-

sance industrielle. B.C. Hydro construira sous peu uneligne de transmission de 344 km, la Northwest Transmis-sion Line. Ce projet d’expansion de 404 M$ partira de lasous-station Skeena, à proximité de Terrace, vers unesous-station planifiée au lac Bob Quinn. Cette ligne seraun important catalyseur.Selon Rhylin Bailie, directrice des relations corpora-

tives et avec les investisseurs chez Nova Gold, le projetGalore Creek, une coentreprise entre Nova GoldResources et Teck Resources, en bénéficiera grande-ment; le plan a toujours été d’amener une ligne électriqueau site, mais le projet pourra maintenant se raccorder àbien moindre coût.« Le projet de ligne suscite beaucoup d’intérêt », dit Tim

Jennings, directeur principal de projet, Transmission et Distribution, B.C. Hydro. « Nous avons déjà un locataire-cléet nous avons obtenu du financement fédéral. »

November 2010 | 35

l’industrie minière en C.-B.

L’énergie et les gens Les infrastructures et l’engagement sont essentiels à larelance de l’exploitation minière en Colombie-Britannique

Le terminal vraquier Neptune, la porte pour lesressources extraites de l’Ouest canadien, est situéà l’extrémité de la baie Burrard à Vancouver Nord.

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Partager la richesse de la TerrePour la première fois, les communautés des Premières

nations intervenantes bénéficieront de la richesse minéralede leurs terres ancestrales. Le Gouvernement de la Colom-bie-Britannique a récemment annoncé la signature dedeux Ententes de développement économique et commu-nautaire. Une entente a été signée avec les Premièresnations Tk’emlups et Skeetchestn; le projet New Aftonsera construit sur ce terrain partagé. L’autre entente a étésignée avec la bande indienne McLeod Lake pour le pro-jet cuivre-or Mt. Milligan. Selon le chef Shane Gottfriedson de la Première nation

Tk’emlups, l’entente constitue une importante étape-clé.« Je crois que la réussite de l’entente réside dans la ren-contre tenue il y a environ un an entre le Premier ministreprovincial Gordon Campbell, le procureur général provincialMichael de Jong, le ministre des Relations autochtonesGeorge Abbott, le chef de la nation Skeetchestn et moi-même. Nous avions aussi invité Phil Fontaine, le chefnational de l’époque. Nous nous étions dit : ‘Essayonsd’établir quelque chose d’unique et qui reflète la bonnevolonté des deux gouvernements.’ L’entente a été conçuecet été; nous avons signé la plus importante entente cana-dienne de partage des revenus que je connaisse. »Selon M. Hawes, ces ententes de développement

économique et communautaire constituent un pas impor-tant vers l’amélioration des relations entre les Premièresnations et les compagnies minières. Le Gouvernement dela C.-B. estime que ces ententes de partage des revenusconstituent la manière de procéder. Malgré ces premières ententes, le chemin est encore rem-

pli de défis. Le projet Prosperity de Taseko Mines est sujet àdes controverses. Le Gouvernement provincial a donné sonaccord mais non pas encore le Gouvernement fédéral.Selon Brian Battison, vice-président, Affaires corpora-

tives, Taseko Mines, Taseko devra drainer le lac Fish pourconstruire la mine. « Nous avons longtemps cherché une

alternative, ce n’est simplement pas possible parce que l’a-mas minéralisé est tout juste en aval du lac. Si la mine devaitdurer sa pleine vie, le bord de la fosse empièterait sur le lac. »Par contre, les communautés de la Première nation Tsil-

hqot’in considèrent Teztan Biny – le nom Tsilhqot’in pour lelac Fish – comme étant leur territoire ancestral sacré depêche. Stewart Phillip, le grand chef de l’Union des chefsindiens de la C.-B., n’accepte pas la position de Taseko qu’iln’y a pas d’autre option que de drainer le lac. « Nous avonsdéjà eu cette situation avec le projet Kemess North, quidemandait aussi de détruire un lac. Le permis avait alorsété refusé », dit-il. « Cela permettrait d’oblitérer des lacs oude les désigner comme bassins de résidus. Les dirigeantsdevront réviser la conception. »Alors qu’à première vue, cette confrontation concerne

un lac, des questions plus profondes et de sérieuses impli-cations sont en jeu. Selon M. Phillip, l’industrie minière nedevait pas forcer la promotion des projets. « Il vaudraitmieux dépenser du temps et des ressources pour établirdes relations avec les peuples autochtones. »M. Battison dit que Taseko se trouve dans une situation

compliquée : « Nous sommes au milieu d’une lutte entre lesPremières nations et la Couronne à savoir qui contrôle leterrain. Est-ce que les Premières nations ont un droit deveto sur l’utilisation des terres? Si le Gouvernement fédéraldevait dire non au projet Prosperity, les investisseurs com-prendraient alors que les Premières nations ont en effet undroit de veto. Les industries du pétrole et du gaz, des forêtset des mines, du tourisme et de l’agriculture le verrait aussicomme un signe troublant. »Pierre Gratton de la Mining Association of B.C. dit : « Dans

le contexte actuel, un veto sur la prise de décision sera prob-lématique pour toutes les industries de la C.-B. s’il n’y a pasétablissement de règles claires. Les investisseurs hésiterontà travailler durant des années et à dépenser des millions dedollars pour rencontrer ou dépasser les exigences réglemen-taires si, à la toute dernière heure, le projet échouait en raisonde l’opposition d’un groupe ou d’une partie d’un groupe. » Ilpoursuit : « Je crois qu’il existe de grandes possibilités. LesPremières nations vivent en Colombie-Britannique depuisdes milliers d’années; je crois qu’elles devraient concevoirqu’elles peuvent participer de manière efficace. Je croisqu’elles craignent que ce ne soit pas le cas. » « Nous avisons les compagnies de développer de

bonnes relations avec les Premières nations à qui apparti-ennent les terrains où elles veulent s’établir », dit le ministreHawes. « Sinon, elles pourraient se retrouver devant les tri-bunaux. »Rhylin Bailie de Nova Gold n’est pas inquiète de l’avenir

des projets de sa compagnie. « Nous travaillons avec lesgroupes des Premières nations dès le premier jour. Nousvoulons nous comprendre mutuellement; nous travaillonsensemble à développer le projet. »Pour que le développement minier puisse continuer en

Colombie-Britannique, il faudra trouver un équilibre entreles droits des Autochtones et la confiance des investis-seurs miniers. ICM

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l’industrie minière en C.-B.

NovaGold a construit des infrastructures, dont ce pont en 2007, sur la route menantau site Galore Creek avant que la construction n’ait été suspendue. La compagnie ditqu’elle diffusera une étude de préfaisabilité sur cette propriété l’an prochain.

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Engineers conducting environmental planning

T

The way forwardby | Peter Caulfield

Despite the fact that copper is trading today at about US$3.70, the Mt. Milligan project — the first new metal mine in BritishColumbia in more than a decade — very nearly didn’t happen.

Terrane Metals Corp. was created in 2006 when Goldcorp Inc.sold its copper and gold project, Mt. Milligan, to Rob Pease andhis partners. However, Terrane could not secure the financingto begin construction. “In the end, we had to sell the companyin order to build the mine,” says Pease, former president andCEO of Terrane. On October 20, 2010, Denver-based molybde-num miner Thompson Creek Metals Company acquired all ofthe issued and outstanding equity of Terrane. The total value ofconsideration paid to the shareholders of Terrane was approx-imately $700 million, of which approximately $420 millionwas paid in cash, and the remainder was from the issuance ofapproximately 24.3 million shares of Thompson Creek.

Industry analysts say the project, which should commenceproduction sometime in 2013, could kick start the B.C. min-ing industry as a whole, as well as benefit local First Nationsand job seekers in central B.C.

Shovel-readyMt. Milligan is 155 kilometres northwest of Prince George

in central British Columbia — about 150 kilometres northeastof Thompson Creek’s Endako Mine. Mt. Milligan has provenand probable reserves of about 2.1 billion pounds of copperand six million ounces of gold. Average annual production overthe 22-year lifespan of the mine is forecast to be 81 million

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pounds of copper and 194,000 ounces of gold. The mine couldcreate up to 400 permanent jobs.

Pease says Mt. Milligan is completely engineered, financedand has almost all of its permits in place. “The mine will be aconventional truck-and-shovel open pit operation that willproduce copper concentrate with a high gold content,” Peasesays. Mt. Milligan will be developed over the next two and ahalf years. Commissioning of the mine and mill complex isexpected in 2013.

Development is scheduled to com-mence late in 2010. Key components ofthe project include a 54,000 tonne-per-day copper flotation process plant, tail-ings storage facility, plant ancillary facili-ties and a 92-kilometre power transmis-sion line. Upgrading of a 26-kilometre-long mine access road was 90 per centcomplete this fall.

“At the plant site we’ve cleared thebuilding area, and a 600-man construc-tion camp is being assembled.” saysPease. “We expect to be finished thatpart of the project by the end of 2010,and then we can start pouring concreteand erecting mine buildings in spring2011.”

Pease adds that according to the minedevelopment plan, the pit will be dug infall 2011. “By late summer of 2012, wecan start processing ore, with full com-mercial production by the end of 2012 orthe beginning of 2013,” he says. The con-centrate will be transported to port facil-ities on the coast and shipped tosmelters in Japan and Korea.

A smooth transitionIn acquiring Terrane, Thompson Creek

has diversified into copper and gold, bothof which are trading at high prices now.For its part, Terrane, a Vancouver-basedjunior, has found a way to finance con-struction of the relatively large open pitproject.

“Terrane couldn’t finance Mt. Milliganitself,” explains Pease. “For one thing,market conditions weren’t favourable.For another, our corporate structure wassuch that an equity issue would haveseriously diluted the stock and thereforewould have been very risky for our share-holders. We liked Thompson Creek and

liked the management, so we agreed to be taken over. Now,Mt. Milligan will be their number one growth asset.”

Thompson Creek chairman, CEO and director KevinLoughrey says there are a number of reasons behind his com-pany’s decision to get into the copper business. “Until nowwe’ve been a pure moly company, and we like the moly busi-ness,” he explains. “But there are strategic advantages indiversifying. In addition, we had concluded the market wasn’t

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that amount, $226.5 million waspaid at the closing of the Terraneacquisition in October and theremaining $85 million will be paidduring mine construction. In addi-tion, Royal Gold will pay $400 perounce for the first 550,000 ouncesand $450 per ounce thereafter.

The reason for the agreementwith Royal Gold is to reduceThompson Creek’s up-frontexpenses, says Loughrey. “Goldstream agreements are becomingmore common as a way to financemine construction.”

An engaged communityMt. Milligan will be the first

new metal mine to open in B.C.since the Kemess copper andgold mine opened in 1998. LenaBrommeland, chair of theAssociation for MineralExploration British Columbia,says the development will bene-fit the province’s mining indus-try, the region and the provinceas a whole. “B.C. is well-endowedgeologically and it is well-knownas a mining centre of excellence

around the world, but the real indicator of success is a newmine opening,” she says. “It will attract investors and focusthe attention of explorers.”

The local benefits are also very real. “The forestry industry incentral and northern B.C. has been hit hard by the mountainpine beetle kill and a new mine in the region will bring new jobsand new economic activity,” Brommeland, a native of the area,says. “The people living in communities like McKenzie and FortSt. James are very excited.”

Terrane’s Pease says his company has had a good workingrelationship with the McLeod Lake Indian Band, with manyband members working on the construction site. In addition,the band recently signed an Economic and CommunityDevelopment Agreement with the B.C. government wherebythe band will share the mineral tax revenue generated by themine, which lies within its traditional territory. Pease says hehopes the Nak’azdli Band of Fort St. James, the other FirstNation to be affected by the mine, will sign a similar resource-sharing agreement.

Pease adds Terrane has been largely successful in its nego-tiations with local First Nations because the company hasdealt with their concerns in an open and transparent manner.

going to reward a pure moly company witha premium on its share price.”

Thompson Creek went looking foracquisitions, but found there were no bigmoly opportunities available that fit theircriteria. “So we started looking elsewherefor opportunities,” Loughrey says. “We asked our shareholderswhat they thought of diversification and most were eitherpositive or neutral.”

Loughrey says he doesn’t expect the company will have asteep learning curve for the Mt. Milligan project. “Except forsmelting, the mining methods used for moly and copper-goldare similar,” he says. “Furthermore, many of our staff are expe-rienced in mining and processing copper and gold.”

Thompson Creek has no plans at the moment to makemajor adjustments to Terrane’s mine development plan,according to Loughrey. “Once we get going, however, we willprobably make a few changes,” he says. “Thompson Creek hasaccess to more financing than Terrane. We might decide tospend more in order to get more.”

Dipping into the gold streamA portion of Thompson Creek’s financing for the develop-

ment of the project is coming from a gold purchase agree-ment with Royal Gold, whereby the latter will purchase 25 percent of the gold produced over the life of the mine at Mt.Milligan. Under the terms of the transaction, Thompson Creekwill receive staged cash deposits totalling $311.5 million. Of

Employees logging core samples

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For example, in response to requests from First Nations,Terrane made changes to the project design, including reloca-tion of the water supply pond, re-alignment of part of thetailings dam and location of the concentrate rail load-out sothat it avoided traffic through Fort St. James.

In addition, Terrane and the Vancouver Island University andCollege of New Caledonia delivered a three-week environmen-tal training program, resulting in many First Nations graduatesworking with Terrane’s consultants on the Mt. Milligan envi-ronmental baseline program. First Nations were also employedon project operations, including field work,exploration and road maintenance.

Environmental impactTerrane has minimized the mine develop-

ment footprint by clustering mine develop-ment into approximately 1,825 hectaresspread over less than five kilometres,explains Pease. It also avoids environmen-tally sensitive areas, with no lakes beingused for tailings impoundment. The tailingspond and plant site are located immediatelyadjacent to the open pit. Waste rock dumpswere eliminated by incorporating waste rockinto the construction tailings pond, andexisting logging roads and right-of-wayswere employed for access wherever possi-ble, in order to minimize clearing.

Pease says Mt. Milligan will have a stripratio of one tonne of ore for 0.8 tonnes ofwaste, which is low for an open pit mine.When the mine is decommissioned, it willbecome a man-made lake. The tailings pondwill be fully reclaimed and returned to a nat-urally vegetated state.

“No smelter contracts have been signedyet, but we don’t expect any problems inthat regard,” Pease says. “The concentratethat will be produced will be clean andlow-risk.”

Much-needed momentumHopes are high in B.C. that Mt. Milligan will

spur the province’s sluggish mining industry togreater expansion. Tom Schroeter, presidentand CEO of Vancouver-based junior FjordlandExploration Inc., says the $915 million capitalcost to put the mine into production will be aneconomic and social boon to central B.C.

“And it will undoubtedly have trickle-down effects in the area,” says Schroeter.“Four hundred full-time jobs are nothing to

sneeze at these days.” He says the project will be a shot in thearm for the mining industry in British Columbia.

“Production at Mt. Milligan will start and maintain a much-needed momentum of new mine starts in B.C., including NewAfton and Copper Mountain over the next few years, with manymore on the books,” adds Schroeter. “And Terrane’s diligence indealing with the First Nations issue is to be applauded.”

Mt. Milligan might benefit Fjordland, too. “Our explorationfocus is on the discovery of gold, copper and molybdenumdeposits in British Columbia,” Schroeter explains. “We have twoprojects very close to or bordering the Mt. Milligan property.” CIM

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projet en vedette

L

Le chemin de l’avenirLe projet cuivre-or de Mt. Milligan

Lorsqu’en 2006 Rob Peaseet ses partenaires (TerraneMetals Corp.) ont acheté leprojet cuivre-or Mt.Milligan de Goldcorp Inc.,ils ne trouvaient pas definancement pour com-mencer à construire.« Nous avons dû vendre lacompagnie pour construirela mine  », dit M. Pease,ancien président-directeurgénéral de Terrane. Le 20octobre 2010, la minièrespécialiste du molybdène,Thompson Creek, a acquisTerrane. La valeur de lacontrepartie payée auxactionnaires a été de 700 M$, soit environ 420 M$ comptantet 24.3 millions d’actions de Thompson Creek.

Le projet Mt. Milligan est situé à environ 150 km au nord-est de la mine Endako; il contient des réserves prouvées etprobables d’environ 2,1 milliards de livres de cuivre et 6 mil-lions d’onces d’or. Au cours des 22 années de vie prévues, lamine devrait produire annuellement 81 millions de livres decuivre et 194 000 onces d’or; 400 emplois permanents serontcrées. « L’exploitation sera conventionnelle  : une fosse à cielouvert avec camions et pelles. La mine produira un concentréde cuivre avec une forte teneur en or qui sera acheminé parcamion à Fort St. James, d’où il sera transporté par rail àVancouver Nord et par bateau à des fonderies au Japon et enCorée », dit M. Pease. La mine et l’usine devraient être misesen service en 2012-2013.

En juin 2010, Terrane a accordé le contrat d’ingénierie-appro-visionnement-construction à AMEC Americas Limited et à FluorCanada Ltd. pour construire, entre autres, une usine de traite-ment du cuivre par flottation, une installation d’entreposage desrésidus et une ligne de transport d’énergie de 92 km.

« Terrane ne pouvait pas financer Mt. Milligan sans aide »,explique M. Pease. « Les conditions de marché étaient défavor-ables et une émission d’actions aurait été très risquée pour nosactionnaires. » Nous étions d’accord pour une prise de contrôlepar Thompson Creek. Selon le président-directeur général deThompson Creek, Kevin Loughrey, la courbe d’apprentissage nesera pas trop difficile. « Sauf pour la fusion, les méthodes d’ex-ploitation du cuivre-or et du molybdène sont semblables. »

Une partie du finance-ment de Thompson Creekprovient d’une entented’achat d’or avec RoyalGold, ce dernier achetant 25pour cent de l’or produit aucours de la durée de vie de lamine. Selon l’entente,Thompson Creek recevrades paiements comptantsétalés totalisant 311,5  M$;de plus, Royal Gold paiera400  $/once pour les550  000 premières oncesd’or et 450  $/once par lasuite.

Terrane s’entend bienavec la bande indienne de

McLeod Lake, dont plusieurs membres travaillent à la con-struction. La bande a signé une Entente de développementéconomique et communautaire avec le Gouvernement de laColombie-Britannique stipulant qu’elle obtiendra une partiedes revenus fiscaux générés par la mine. M. Pease souhaiteque la bande Nak’azdli de Fort St. James signe une ententesimilaire. Selon lui, les négociations ont été fructueuses en rai-son de la transparence des négociations et de l’acceptationpar la compagnie de changer l’emplacement de certainescomposantes du projet.

Terrane, la University of Vancouver Island et le College ofNew Caledonia ont élaboré un programme de formation per-mettant à de nombreux membres des Premières nations detravailler à diverses phases du projet : études environnemen-tales, exploration et entretien des routes.

Terrane minimise son empreinte en regroupant ledéveloppement et en évitant les endroits sensibles, tels queles lacs, pour la disposition des résidus. Les haldes de stérilesont été éliminées en incorporant la roche stérile dans la con-struction du basin de résidus et les chemins forestiers exis-tants ont été utilisés lorsque possible.

Mt. Milligan sera la première nouvelle mine en Colombie-Britannique depuis l’ouverture de la mine Kemess en 1998.Selon Lena Brommeland, présidente de l’Association for MineralExploration British Columbia, et Tom Schroeter, président-directeur général de la compagnie junior Fjordland Exploration,ce développement profitera à l’industrie, à la région et à laprovince, attirant des investisseurs et des entrepreneurs. ICM

Photo aérienne du projet cuivre-or Mt. Milligan situé à 155 km au nord-ouest de Prince George dans le centre de la Colombie-Britannique.

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NEW — Certification in Ore Reserve Risk and MinePlanning OptimizationSpread over a period of four months, this four-week course isdesigned for busy mining professionals who wish to updatetheir skills and knowledge base in modern modelling tech-niques for ore bodies and new risk-based optimization method-ologies for strategic mine planning. Gain practical experienceby applying the following hands-on concepts and technicalmethods: methods for modelling ore bodies; stochastic simula-tions, case studies and models of geological uncertainty; anddemand-driven production scheduling and geological risk.Instructor: Roussos Dimitrakopoulos, McGill University, Canada •Date: May 2011 • City: Montreal • Info:www.mcgill.ca/conted/prodep/ore

Theory and practice of sampling particulate materi-als (Part 1) and QA-QC, mine, and project audits(Part 2)Develop an understanding of the theory of sampling particulatematerials, its practice, scope, limitations and appropriate appli-cations. Learn the eye-opening facts you may have overlookedor ignored until now about the consequences of bad samplingand the difficulties of good sampling, as well as the unsus-pected amplitude of economic ramifications of poor sampling.Instructor: Dominique François-Bongarçon, AGORATEK, UnitedStates • City: Montreal

Strategic Risk Management in Mine Design: FromLife-of-Mine to Global OptimizationLearn how you can have a significant, positive impact on yourcompany’s bottom line by utilizing strategic mine planningmethodologies and software; improve your understanding ofstrategic mine planning and life-of-mine optimization con-cepts, as well as your understanding of the relationship ofuncertainty and risk, and how to exploit uncertainty in orderto maximize profitability. Note: The strategic mine planningsoftware used is Whittle; an optional half-day skills refresherworkshop on Whittle available.Instructor: Gelson Batista, AMEC, Canada, Roussos Dimitrakopoulos,McGill University, Canada, and Gerald Whittle, Whittle Consulting,Australia • City: Montreal

An Introduction to Cutoff Grade Estimation: Theoryand Practice in Open Pit and Underground MinesCutoff grades are essential in determining the economic fea-sibility and mine life of a project. Learn how to solve most cut-off grade estimation problems by developing techniques andgraphical analytical methods, about the relationship betweencutoff grades and the design of pushbacks in open pit mines,and the optimization of block sizes in caving methods.Instructor: Jean-Michel Rendu, Executive Consultant, Snowden,Australia • City: Montreal

Geostatistical Mineral Resource/Ore ReserveEstimation and Meeting the New RegulatoryEnvironment: Step by Step from Sampling to GradeControlLearn about the latest regulations on public reporting ofresources/reserves through state-of-the-art statistical andgeostatistical techniques, how to apply geostatistics to pre-dict dilution and adapt reserve estimates to that predicteddilution, how geostatistics can help you categorize yourresources in an objective manner, and how to understandprinciples of NI43-101 and the SME Guide.Instructor: Michel Dagbert, Geostat Systems Int., Canada, Jean-Michel Rendu, Executive Consultant, Snowden, Australia, andRoussos Dimitrakopoulos, McGill University, Canada • City: Montreal

Mineral Project Evaluation Techniques andApplications: From Conventional Methods to RealOptionsLearn the basics of economic/financial evaluation techniques,as well as the practical implementation of these techniques tomineral project assessments, how to gain a practical under-standing of economic/financial evaluation principles, and howto develop the skills necessary to apply these to support min-eral project decisions.Instructor: Michel Bilodeau and Sabry A. Abdel Sabour, McGillUniversity, Canada • City: Montreal

Seminars to watch for

Page 44: CIM Magazine November 2010

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Page 45: CIM Magazine November 2010

For years, CAMESE has lamentedthe fact that there is no quantitativemeasure of the revenues, job creationor GDP contribution of the supply sideof the mining industry. While theextractive and processing elements arerelatively easily captured by econo-mists, the supply of the input goodsand services that mining companiesneed is much more difficult to quantify.

This is due to the fact that miningsupply covers a wide range of sub-sectors as diverse as geophysical surveys, drilling services, software,consulting engineering, miningmachinery and shaft sinking. Thecompanies providing these goods andservices are usually not classified asbeing within the mining industry, sostatisticians include their contribu-tions in other parts of the economy.

After encouragement fromCAMESE, Natural Resources Canadaundertook a study of the mining sup-ply sector and published its findings in2000 in the report, “Canadian suppli-ers of mining goods and services: linksbetween Canadian mining companiesand selected sectors of the Canadianeconomy.” Although it offers a consid-erable amount of useful material, itfalls short of quantifying the economiccontribution of the mining supply sector.

In recent publications, the MiningAssociation of Canada (MAC) statesthat “there are over 3,200 Canadiangoods and services firms that providetechnical, legal, financial, accounting,environmental and other expertise tothe mining industry.” While this is alarge number of companies, there is nomeasure of the value of those inputs.Even if the annual revenues of thesefirms were known, the sum would bemisleading because the revenues ofmost of them must come from manysectors, not only mining.

In its “Facts & Figures” publica-tion, MAC states that “The miningindustry’s impact extends beyond its

significant direct GDP contribution.For example, the industry contributesover half of Canada’s rail-freight rev-enues and Canadian port tonnage.”

It adds: “The Canadian investmentservices sector is also a prominent sup-plier to the mining industry. Duringthe past five years, fully 32 per cent ofglobal mining capital and 82 per centof global financing transactions werehandled through the Toronto StockExchange. It is estimated that severalthousand Canadian brokers, analysts,exchange workers, consultants, tradefinance experts and securities lawyersdraw benefit from the strength of themining industry.”

The Ontario Mining Association(OMA) approached the contributionof suppliers in another way in a 2007publication entitled “The economicimpacts of a ‘representative mine’ inOntario.” This report, based on a“model” mine, shows how 480 jobs inthe production phase of a mine (directemployment) create 1,103 jobs in theupstream supply chain (indirectemployment) and another 697 posi-tions (induced employment) in theeconomic activity that is generatedwhen the employees of the mine andtheir suppliers spend what remains oftheir wages after taxes and savings.The ratio of indirect to direct employ-ment in this study is 2.3.

The Quebec Mining Association andQuebec Mineral Exploration Associa-tion have approached the problem intheir recently published results of astudy on “Quebec’s min-eral industry cluster:socio-economic contribu-tion to the development ofQuebec and its regions,”which claims 36,000 min-ing jobs in the provinceagainst 16,000 in the sup-plier network. It is likelythat the mining jobsinclude more than extrac-tion and concentrating,

The economic impact of mining supply� Jon Baird A page for and about the supply side

of the Canadian mining industry

Author

Jon Baird, managingdirector of CAMESE andthe immediate pastpresident of PDAC, isinterested in collectiveapproaches to enhancingthe Canadian brand inthe world of mining.

and carry downstream into metal pro-duction and fabrication.

A new survey, prepared for theOntario North Economic Develop-ment Corporation by Doyletech Cor-poration, demonstrates the impor-tance of mining supply in NorthernOntario. This study was based oninterviews with 150 mining supplycompanies and then extrapolated tothe approximately 500 firms andorganizations in Northern Ontario, allof which derive more than 50 per centof their revenues from supplying themining industry.

The result shows total annual rev-enues of the mining supply sector inNorthern Ontario of $5.6 billion, withemployment of 23,000 people. Thedirect employment for the extractionand concentrating part of the miningindustry is estimated at about 10,000(OMA reports 16,000 in the wholeprovince), so the ratio of supplier jobsto mining company jobs is once againabout 2.3.

Thus, there is a good deal of qual-itative and semi-quantitative evi-dence that the employment of themining supply sector in Canadaexceeds that of the mining industryitself. Given the difficulty of usingstandard statistical methods to cap-ture the value of mining supply, itwill take more study, perhaps usingthe Northern Ontario methodology,for the full economic impact of themining “cluster” across Canada to befully recognized. CIM

supply side | COLUMNS

November 2010 | 45

Page 46: CIM Magazine November 2010

COLUMNS | MAC economic commentary

As a consequence of its fundamen-tal role (such as turning rock into99.99 per cent pure metal), the Cana-dian and global mining industry facesa range of environmental challengesrelating to water use, tailings manage-ment, air emissions and energy effi-ciency, among others. And, as a conse-quence of its global presence andimportance in developing countries,the sector faces a range of social issues— Aboriginal relations, communityengagement, social and health invest-ments, etc.

On these two inter-related themes,there is no shortage of demands placedupon the mining industry. In assumingits responsibilities, the industry investsheavily in schools, roads, hospitals,clinics and nutrition programs, amongother initiatives, and adheres tonumerous standards and protocols inaddition to host government laws andregulations. One MAC member com-pany has reported fully 15 codes andprotocols that guide its global practicein the area of corporate social respon-sibility. These actions and investmentsare for the betterment of Canadian andglobal society, just as the productsthemselves, as built from minerals andmetals, contribute to an improvedquality of life.

However, one socio-environmentalarea that does not receive sufficientattention in Canada, and whereCanada arguably lags behind Europe,China and other regions, relates to therecycling of metals. While the Cana-dian mining industry is well preparedto re-process recycled metals, there is aneed for other segments of Canadiansociety to step forward in this area —particularly consumer groups, NGOsand governments — and to push forgreater responsibility on the part of allCanadians.

Environment Canada estimatesthat electronic-waste volumes are

increasing by around four per centannually in our country. Electronicsmanufacturers have helped create aculture in western society of “dispos-able” technology — one that isembraced by Canadians seeking thelatest electronic toy. Canada’s tele-phone and cable giants, focused onselling the latest gizmo and locking inmulti-year service contracts aroundthese products, generally view twoyears as a reasonable technology lifes-pan for their cell phones. Laptops, per-sonal computers, iPods and flat-screentelevisions also tend to fall out offavour after two to three years, andbasement cupboards and garagesacross the nation are consequentlyfilled with this “old” waste technology.

Beyond the volumes of garbageassociated with this wasteful culture,the e-waste issue also raises concernsregarding the release of metals andother potential pollutants once protec-tive casings are broken during dis-posal. Electronic products, whether

cellular phones, laptops or systemizedcomponents in automobiles, typicallycontain a couple dozen different met-als ranging from lead and boron tonickel and cadmium. In most Cana-dian regions, the flow of recycledmaterials depends upon a responsibleconsumer having to research whatoutlets may exist in the region, drivingthe e-waste to these outlets, and occa-sionally having to pay a fee on top ofthe inconvenience. Without a betterorganized and properly incentivizedsocietal e-waste recycling system inCanada, it is inevitable that greatervolumes of these metals will end up inlandfills. This outcome not only dam-ages the environment, it represents aloss of wealth associated with other-wise recoverable minerals — particu-larly at high metal prices.

The recycling issue tends to receivegreater attention internationally. EUenvironment ministers, for example,are presently examining a proposal onsustainable materials management,

46 | CIM Magazine | Vol. 5, No. 7

It’s time for Canada to get seriousabout metals recycling� Paul Stothart

A Teck employee holds shredded end-of-life electronics, also known as e-waste, that has been diverted fromlandfills.

Photo courtesy of Teck Resources Limite

d

Page 47: CIM Magazine November 2010

which envisions a move from wastepolicies toward life cycle policiesinvolving the extraction, productdesign, production, consumption anddisposal phases. This ongoing exer-cise to promote responsible use ofmaterials will likely be considered inthe context of a 2011 European Com-mission decision to adopt a roadmapon resource efficiency. An EU e-wastedirective has already required that alle-scrap be recycled. Countries suchas China also tend to have aningrained recycle and reuse culture,reflective of its historic need for rawmaterials, where scrap metal serves asan important input to the country’smanufacturing processes.

For its part, the Canadian miningindustry is well prepared to supporta stronger Canadian societal effortin metals recycling. For example,Teck Resources is using furnace and metallurgical processing capac-ity in its Trail, BritishColumbia, facility toprocess e-scrap and,in so doing, recoverszinc, lead, indium,cadmium and othermetals. The wasteplastic and wood areused in co-generatingenergy and steam,

while silica and iron waste is re-usedin cement production. Xstrata’sHorne smelter in Rouyn-Noranda,Quebec, also uses precious metal-bearing recyclable materials as feed-stock in producing 99 per cent anodecopper. Xstrata recently completed aninvestment that doubled the Hornesmelter’s e-scrap recycling capacity.(The fact that e-scrap reprocessing,desirable as it is, consumes more per-unit energy is a point that should beconsidered in any future governmentgreenhouse gas mitigation policiesaimed at the smelting and refiningsegment).

The future growth of such busi-nesses in Canada will depend on theextent to which manufacturers, retail-ers and consumers are required bygovernment policy to take responsi-bility for life-cycle management andstewardship of the products they pro-duce and consume. CIM

November 2010 | 47

Author Paul Stothart is vice-president, economic affairs, atthe Mining Association ofCanada. He is responsible foradvancing the industry’sinterests regarding federal tax,trade, investment, transport andenergy issues.

The essential reference on Canadian mining

The 40th edition of the

Mining Association of Canada’s

Facts + Figures 2010

Now available at

www.mining.ca

Page 48: CIM Magazine November 2010

toward completion of a full MBA degree. In 2009, the pro-gram was recognized by the Canadian Council on Learningunder “Sharing the Flame: Recognizing Excellence in Learn-ing,” which was designed to honour innovative and effec-tive learning programs.

Teck’s “Emerging Leader Program” is targeted at individ-uals who have the potential to become senior leaders withinthe organization. Development and mentoring programsfocused on long-term investment in employees are recog-nized as key components of employee engagement andretention strategies. “One of our key priorities is keeping ouremployees motivated and engaged,” Utley says.

Teck’s performance management program, “BuildingStrength with People,” charts an employee’s progress andcareer ambitions. Employees and their supervisors have con-structive conversations around performance, developmentand career planning. These conversations facilitate ongoingcoaching and feedback, and help employees set objectives tohelp them achieve their career goals. “We know what keepspeople motivated is knowing clearly what is expected ofthem and then getting feedback on their progress and beingrecognized for their accomplishments,” explains Utley.

Teck also has several programs in place to minimizeemployee turnover. The company closely monitors itsturnover rate, conducts exit interviews and performs regularmarket reviews to ensure its compensation is competitive. Inaddition, Teck offers technical development and supervisoryand leadership training programs to its employees. “Our

COLUMNS | HR outlook

48 | CIM Magazine | Vol. 5, No. 7

Rapid economic change isa reality that makes strategiclong-term workforce plan-ning a challenge. In mining,plans tend to focus on short-term operational objectivesrather than long-term strate-gic human resources man-agement. In order to dealwith the impact that eco-nomic cycles have on indus-try employment and meetfuture HR needs, an indus-try-based, longer term work-force strategy would be a sig-nificant asset.

Following a number ofregional HR forums acrossCanada, industry representa-tives have clearly expressed aneed for timely, reliable andrelevant labour market information and resources for work-force planning to help mitigate the consequence of rapid andsignificant changes in the supply of skilled workers

Broadly speaking, MiHR recommends a two-prongedapproach in planning for the forecasted labour shortage.First, employers can continue their efforts to make the mostof all available sources of talent. Strategies for this approachinclude creating a culture of inclusion in the workforce andincreasing the representation of women, new Canadians andAboriginal peoples. Second, the industry can increase pro-ductivity through investments in workforce training anddevelopment, combined with emphasis on innovation andsupport for technology advances.

Teck Resources Limited is an example of one Canadianmining employer that is taking a multifaceted approach toworkforce planning. The company’s strategy is to first focuson understanding its workforce before identifying possiblegaps and developing possible solutions, explains Jim Utley,Teck’s vice-president of human resources.

Teck has a number of programs that demonstrate thecompany’s commitment to the training and development ofits employees, such as its Graduate Diploma in BusinessAdministration which, through a partnership with SimonFraser University, offers MBA-level courses relevant to Teck’sbusiness needs. Since it was established in 1996, over 200employees have taken courses within the program and 38employees have completed all required courses for thediploma. Twenty-five of these employees are now working

Managing the cycle through long-termworkforce planning� Lindsay Forcellini

Teck employees participating in the Emerging Leaders Program.

Photo courtesy of Teck Resources Ltd.

Page 49: CIM Magazine November 2010

commitment to employee development programs is a wayfor Teck to show our employees that they are valued andappreciated,” says Utley.

In addition to having a comprehensive workforce plan-ning strategy, Utley stresses the importance of understand-ing your own workforce data, demographics and forecasts,and says reliable labour market information is an importantresource for the industry as we work together to address theskills shortage. CIM

HR outlook | COLUMNS

November 2010 | 49

Author As marketing and communicationscoordinator, Lindsay Forcellini is responsiblefor supporting MiHR’s communications andonline media initiatives, and coordinating theproduction of marketing and communicationsmaterials. Formerly a writer for NaturalResources Canada, she holds a bachelor’sdegree in journalism from CarletonUniversity.

Coming soon from MiHRMiHR has developed two new resources, slated to launch thisfall: the “Canadian Mining Industry Employment and HiringForecasts 2010” report and “Mining HR Forecasts” toproactively address these challenges and help industry byproviding timely, mining-specific labour market informationemployers can utilize in their workforce planning.

Developed under the Mining Workforce Information Network(MIWIN), these resources provide the most extensive researchand analysis on Canada’s mining labour market andworkforce planning to date. The report provides an economicoverview of the Canadian mining industry and its labourmarket, as well as discussion on key labour market trends,including employment, labour productivity, educationalattainment, employment relations, workforce demographicsand diversity. Mining HR Forecasts is a website that includesan employment forecasting tool that allows users to generatecustom reports for specific forecasting needs.

Page 50: CIM Magazine November 2010

COLUMNS | safety

Across the industry,people often identify thesame important steps toensuring that a strongsafety culture is enactedthroughout an operationor company. Most profes-sionals, for example, saysafety is a “top-down”issue — that executivesmust demonstrate theircommitment to safety ifthey expect the entireworkforce to place it at thevery top of the priority list.

But what does “top-down” really mean? Howdo you ensure leaders aredemonstrating a real com-mitment to safety, ratherthan simply expressingplatitudes?

At Taseko Mines, anelaborate system of policies,procedures and practiceshas been developed to ensure that a true safety culture thrives.From shareholders to on-site employees, the commitment tosafety is demonstrated in a concrete, visible fashion.

Performance-based investingShareholders are increasingly basing their investment

choices on performance measures that extend beyond thebottom line. “The shareholders don’t really make demands,but they are certainly very interested, and concerned, aboutour performance,” says John McManus, senior vice-presi-dent of operations at Taseko Mines. “We report on health,safety and environment to them, so when they make theirinvestment decisions, they think positively about us.”

The BOD comes to siteThe restart of Taseko’s Gibraltar Mine initiated the hir-

ing of new employees, which required reorienting the safetypractices of these new hires to that of Taseko’s culture. “Wehave to reinforce what we expect,” McManus explains.“Getting the corporate governance manual — whichincludes sections on health and safety standards — in thehands of every new employee is one of the first steps.”

With this onslaught of new employees, the board ofdirectors decided it was time to become proactive in its role

Walking the talkTaseko leaders take concrete steps to enforce safety� Heather Ednie

of verifying safety standards. So about a year ago, the Envi-ronmental Health & Safety Committee, comprised of threeboard members, was created. The committee is responsiblefor reviewing the mine’s environmental, health and safetyperformance, as well as auditing procedures, standards andtraining. The committee also regularly visits the mine siteto meet with employees and interview senior staff. “It reallydemonstrates the importance of safety to the corporation,”McManus adds. “Their goal is to ensure that we have theproper policies and mechanisms in place to meet corporatesafety requirements.”

Taking it even one step further, each member sitting onthe committee completed Gibraltar’s employee safety orien-tation and training. “In a lot of mines, you may never see adirector set foot on site,” McManus says. “This committeereally drives the message home to our employees that safetyis a condition of employment here at Taseko.”

Safety is the new “hello”The corporate management is responsible for ensuring

the company operates to the standards set by the board. Itis here that a real commitment to safety must be demon-strated to convey its priority through to the operations. Oneway in which this is accomplished is by insisting safety be

50 | CIM Magazine | Vol. 5, No. 7

The board of directors’ Environmental Health & Safety Committee visit to the SAG mill at Gibraltar. From left to right: JohnMcManus, senior vice-president, operations, Taseko Mines; Laila Potvin, manager of milling, Gibraltar Mines; Richard Mundie,director, Taseko Mines; Williams Armstrong, director, Taseko Mines; and Wayne Kirk, director, Taseko Mines.

Photo courtesy of D

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And

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Page 51: CIM Magazine November 2010

safety | COLUMNS

the first topic of all meetings and key discussions. Case inpoint, Dave Rouleau, the company’s vice-president of min-ing operations, has a daily discussion with the GibraltarMine general manager at 9:00 a.m. “The first item on theagenda of our calls is safety,” Rouleau says. “We talk aboutincidents, concerns and meetings. Only after he’s debriefedme on the safety performance do we go on to discuss production.”

The policy of kicking off all discussions with safety is alsopracticed on site, during meetings between the mine man-ager and his superintendent, the department heads, and soon through the line. “People are aware they need to knowwhat’s going on with respect to health and safety as it will bethe first thing asked by their supervisor,” McManus adds.

Corporate management demonstrates its commitment tosafety in other ways:• The Whistle Blower Program provides employees with a

safe and anonymous means of reporting concerns backto corporate.

• Safety is part of corporate management’s goals and objec-tives, and part of their annual reviews.

• Those sitting at the corporate management level are ulti-mately held responsible for the mine’s safety perform-ance. For example, at quarterly BOD meetings,McManus must report on Gibraltar’s safety performancein the context of all other mines in British Columbia. “Itreally gets your attention,” he says. “I know I’m account-able, and the directors are listening.”

Safety is everyone’s businessA real safety culture is nurtured by frequent on-site inter-

actions between management and the workforce, whichnecessitates having quite an array of practices in place.“Our safety policy dictates that no job is so urgent that wedon’t have time to do it safely, but we must constantlyremind people of that,” McManus says. “We must providetraining, develop procedures to enable safety practices, pro-vide the equipment to do jobs safely and create proceduresto deal with incidents. Our employees have to know we will

November 2010 | 51

enforce them — if someone refuses to work safely, theywon’t work here.”

Some additional ways site management demonstratestheir commitment to safety include:• An Occupational Health and Safety Committee com-

prised of members of the site management team and theworkforce, which meets monthly to review incidents andreports. Their aim is to find ways to further improvesafety performance.

• The requirement of all employees to successfully com-plete Gibraltar’s safety training programs, SAFESTART™(advanced safety awareness and safety skills training)and SAFETRACK™ (observation and feedback training)from Electrolab.

• A Safety Awards Program, which is based on both per-sonal and on-site performance.

• Requiring department heads be held accountable forsafety performance. As there is no safety manager atGibraltar, the Human Resources Department acts as aservices group to all of the departments, providingresources, materials and training. Department headsreport to the general manager, who reports to Rouleau, thevice-president. “It’s a short chain of command of account-ability,” Rouleau says. “This way, we’re all accountable.”

Committed to upward movementAfter five years of operation, efforts to cultivate the safety

culture on site have evolved. “The longer you work withpeople the better; it takes a while to get used to newapproaches,” says McManus. “Our safety performance todate, I’d say, is adequate, but requiring improvement. We’vehad some incidents, but people responded well. It takes awhile to build a culture.”

Although Gibraltar’s safety performance is comparable tothe other B.C. mines, their commitment to improving it andbeing the best is robust. “The overriding idea is that each ofus is responsible for our own actions and will be heldaccountable,” McManus says. “You can’t ‘pass the blame’ —it’s all of ours. And we’re committed to making it work.” CIM

Page 52: CIM Magazine November 2010

COLUMNS | innovation

Meeting industry’s needsInnovative microanalysis centre offers extensive analytical solutions� Steven Creighton

in Canada, France, Germany, Australia and theUnited States. “It will save time and allow us tobe more efficient in making leading-edge deci-sions for our uranium exploration programs,”shares Annesley.

Exploration, mining and processing usingthe Advanced Microanalysis Centre

The Advanced Microanalysis Centre’s analyt-ical capabilities are beneficial in exploring for awide variety of commodities. A few industry-specific examples include:

Diamonds: Electron microprobe analysis ofkimberlite indicator minerals for major andminor element concentration to identify G10

garnets indicative of high diamond potential; trace-ele-ment analysis by laser ablation mass spectrometry for Ni-in-garnet thermometry.

Uranium: The Advanced Microanalysis Centre canprepare thin sections of mineralized and other radioactivematerials for petrographic descriptions and other analy-ses; the electron microprobe can be used for U-Th-Pbanalysis of uraniferous minerals from which chemicalages can be calculated. XRF analysis offers whole-rock

52 | CIM Magazine | Vol. 5, No. 7

In February 2010, theSaskatchewan ResearchCouncil (SRC) announcedthe opening of a new labora-tory facility — the AdvancedMicroanalysis Centre — cen-tred on two pieces of equip-ment designed for micro-scalechemical analysis: a CamecaSX-100 electron microprobeand a New Wave UP-213 laserablation system coupled to aquadrupole mass spectrome-ter.

The Advanced Microanaly-sis Centre comprises severalsample preparation facil-ities and additional ana-lytical equipment — twocomplete thin sectionlaboratories, one ofwhich is dedicated to thepreparation of thin sec-tions from radioactivematerial and is located inan area licensed by theCanadian Nuclear SafetyCommission (CNSC) forhandling uranium ore,X-ray fluorescence(XRF) and X-ray diffrac-tion (XRD) analysis. Ascanning electron micro-scope (SEM) for high-resolution imaging com-pletes the analyticalservices the centre offers.

These new services,in combination withthose offered by SRCGeoanalytical Laboratories, offer an extensive set of analyt-ical solutions to service the mining industry’s needs in asingle location, helping ensure that all data and samplesare kept secure and confidential.

The new equipment and range of analyses have beenwell received by clients. Irvine Annesley, a senior geologistwith Saskatoon-based JNR Resources Inc., says the centreallows him to use microanalytical techniques inSaskatchewan that were previously only available elsewhere

Above: SRC’s Steven Creighton operates the Cameca SX-100electron microprobe designed for micro-scale chemical analysis. Left:SRC’s Radhika Udinoor-Palliath conducts X-ray diffraction analysesfor mineral identification.

Photo courtesy of Saskatchewan Research Co

uncil

Photo courtesy of Saskatchewan Research Co

uncil

Page 53: CIM Magazine November 2010

chemical composition including SiO2 and a separate,independent assay for total U (as U3O8). XRD analysis iscommonly used to identify clays in alteration halosaround uranium mineralization.

Potash: XRD analysis is useful for identifying the min-erals present both in the ore and in insoluble material. Fur-thermore, the clay minerals in the insoluble fraction can bemeasured semi-quantitatively by XRD. XRF analysis isused for whole rock chemical analysis and includes halo-gen (F and Cl) analysis.

Oil sands/shales and coal: The primary thin section labis capable of producing thin sections of semi-consolidatedmaterial and ultra-thin sections (<10 �metres thick) of coal.XRF can be used to analyze oil sands/shale without theneed for special sample preparation (e.g. extraction ofhydrocarbons) including the analysis of potentially toxictrace metals (As, Se, etc.) or secondary products in tailings(e.g. Ti, Fe).

Gold: SEM is commonly used for examining the mor-phology of gold grains as an indication of transport dis-tance. Electron microprobe analysis of trace amounts ofgold in sulfide minerals can be useful for tracing disperseddetrital grains to their source.

Rare earth elements (REE): Electron microprobe analy-sis of REE-bearing minerals is useful for identifying notonly the concentration of the REE present, but also thematrix type (phosphate, carbonate-fluoride, silicate oroxide). XRF analysis can provide the total rare earthoxides (REO) concentration of a bulk sample.

Developing new paradigmsWhile the Advanced Microanalysis Centre is able to

provide the routine analyses required for mineral explo-ration, access to equipment normally available only inuniversities provides the opportunity for collaborative,client-focused, applied research projects. One of theAdvanced Microanalysis Centre’s main goals is to workwith mineral exploration companies to assist in develop-ing new exploration paradigms that will result in new dis-coveries and maximize value-added products in existingdeposits.

The facilities, expertise and technologies offeredthrough the new centre will also provide the capabilityand infrastructure needed to develop these new paradigmsin applied research and support service for resource explo-ration, mining, processing and development in otherareas.

Complementary research facilities such as SRC Envi-ronmental Analytical Laboratories, as well as otherresearch labs such as the nearby Canadian Light Source(CLS) synchrotron, offer an impressive array of researchcapabilities in a wide range of disciplines. While the min-ing industry is one of the Advanced Microanalysis Centre’skey clients, other research areas, such as biomedicine,materials and biotechnology, are using these combinedcapabilities.

innovation | COLUMNS

The centre is already working in close collaborationwith the CLS synchrotron in Saskatoon and can providesupport to synchrotron users. A significant benefit of thiscollaboration is that researchers will have informationabout the chemical composition of materials prior to usingsynchrotron technologies. SRC’s proximity to the CLS syn-chrotron makes this cross-collaboration a natural out-growth of the increased knowledge-based infrastructure ofthe combined facilities at both laboratories, thereby pro-viding valuable support to the mining industry.

SRC is also using the centre to work with the Univer-sity of Saskatchewan’s Department of Geological Scienceson joint projects. As well, Dr. Annesley of JNR ResourcesInc. is collaborating with the centre to develop new explo-ration tools. CIM

Author Steven Creighton’s expertise is indiamond exploration, kimberlite geology andmantle petrology. He is highly qualifiedusing electron and X-ray analysistechniques, and leads a team of expertsand manages the Advanced MicroanalysisCentre at Saskatchewan Research Council.

November 2010 | 53

Page 54: CIM Magazine November 2010

COLUMNS | eye on business

54 | CIM Magazine | Vol. 5, No. 7

In August 2010,British Columbiabecame the first provinceto share royalties col-lected from specific min-ing projects with FirstNations. It remains to beseen whether B.C.’s newapproach to royalty shar-ing will be a one-off or ifit will set the pattern forother B.C. mines andCanadian provinces.

The government ofBritish Columbiaannounced two separateagreements with FirstNations to share a por-tion of provincial miningroyalties derived fromthe production of miningprojects currently underdevelopment. The firstagreement, with theStk’emlupsemc of theSecwepemc Nation, per-tains to the New Afton Mine nearKamloops. The governmentannouncement indicates the agree-ment will allocate approximately $30million, just under one-third of thetotal provincial royalties anticipated tobe collected over the expected 12-yearlife of the project. The New AftonMine, a copper-gold project owned byNew Gold Inc., is located at the site ofa historic open pit mine and involvesnew underground operations. Con-struction is underway in anticipationof production commencing in 2012.

The second agreement, with theMcLeod Lake Indian Band, is inrespect of the Mt. Milligan Mine westof MacKenzie. The governmentannouncement says it involves areported $35 to $38 million inprovincial mining royalties, antici-pated to be distributed to the bandover the estimated 23-year life of the

“There’s royalty sharing in them thar hills!” How will the recent B.C./First Nations agreement affect future negotiations? � Josh Lewis and Bruce Harrison

project. Minister of State for MiningRandy Hawes did not disclose whatportion of provincial royalties thissum constituted, so it is not clear if asimilar sharing formula was used forthe two agreements, although heemphasized that each such agreementis a one-off, without a set template.The Mt. Milligan project has beendeveloped to this stage by TerraneMetals Inc., which has been recentlyacquired by Thompson Creek MiningLtd. The project obtained a provincialenvironmental assessment certificatein 2009 and anticipates copper/goldproduction to commence in 2012.

These agreements are the latest stepin the development of the B.C. gov-ernment’s Aboriginal relations policyresulting from the Haida decision in2004, when the Supreme Court ofCanada recognized that the govern-ment is under a duty to consult with

First Nations and, where necessary,accommodate First Nation interestswhere Aboriginal rights and title areasserted. The province released itsNew Relationship policy in May 2005,which was followed in November2005 by the Transformative ChangeAccord. Two objectives of the policiesare to “reconcile Aboriginal rights andtitle with those of the Crown andestablish a new relationship based onmutual respect and recognition,” and“to close the gap in economic oppor-tunities by considering the implemen-tation of revenue-sharing agree-ments.” This is the first major devel-opment since the ill-fated Recognitionand Reconciliation Act, which wasdrafted in the spring of 2009 followingconsultation with First Nations, butnever made it to the B.C. Legislature.It would have recognized both Aborig-inal and Crown title to provincial land

Members of the Stk’emlupsemc of the Secwepemc Nation join for a drumming circle during the historic mining revenue-sharingagreement signing on August 24, 2010.

Photo courtesy of B

.C. M

inistry of Energy, Mines and

Petroleum

Resou

rces

Page 55: CIM Magazine November 2010

and reconciled the competing claimsthrough benefit distribution structuressuch as royalty sharing agreements.

Mining companies with projects inBritish Columbia have historicallyborne the burden of consultation andaccommodation with First Nations,often entering into Impact BenefitAgreements and AccommodationAgreements. It remains to be seen whateffect provincial royalty sharing mayhave on that practice. However, somespeculative observations can be made:• While the B.C. government appears

intent on proceeding with a strat-egy of recognition and reconcilia-tion, the firestorm of public, aborig-inal and industry criticism sur-rounding the failed Recognition andReconciliation Act has caused them,at least for the moment, to chart adifferent course — albeit to whatwill likely be a similar destination.It appears that the government maybe pursuing the royalty-sharingaspect of the Recognition and Recon-ciliation Act on a case-by-case basis,rather than in a broadly sweepinglegislative instrument.

• It is not clear what effect a newpractice of royalty-sharing agree-ments will have on a project propo-nent’s financial contribution toaccommodation; however, royaltysharing will hopefully contribute toan alignment of interest between theproponent and the First Nations.Some First Nations have discoveredthat the value of negotiated accom-modation regrettably is almostalways dependant on the projectbeing developed and is illusory ifthe project is abandoned, delayed orunable to be permitted. Uncertaintyin negotiations can often stem fromthe parties’ inability to recognizeeach other’s interests and the poten-tial impacts, both good and bad, ofthe project. Agreements like thesewould not eliminate that issue, butmay alleviate a major sticking pointby aligning the interests of thoseparties that stand to benefit from aproducing mine and allowing nego-tiators to focus greater attention onthe remaining issues.

• Although promising in somerespects, these agreements may bethe low-hanging fruit on the roy-alty-sharing agreement tree. Bothprojects involve relatively amicablerelationships and are at an advanceddevelopment stage. Locations thatinvolve overlapping or disputedFirst Nation territorial claims, lessconciliation or smaller royalties willnot lend themselves to easy, pre-dictable outcomes and agreements. The B.C. government remains firm

in its stance that these agreements do

not constitute recognition of full abo-riginal title. However, this initiative isthe first of its kind in Canadian his-tory and does constitute a construc-tive effort to attempt to reconcile thepositions of First Nations and theprovincial government. Whether it issuccessful and British Columbia’s leadis followed by other provincesremains to be seen, but First Nations’pressure across Canada with respectto title is not expected to abate, andcreative, progressive solutions mustbe found. CIM

eye on business | COLUMNS

November 2010 | 55

Authors

Josh Lewis (left) and Bruce Harrison areVancouver members of Fasken Martineau’sGlobal Mining Group. Having spent substantialportions of their lives living and working in theinterior of British Columbia, they have aspecial interest in the developing relationshipbetween resource companies and FirstNations, both in B.C. and across Canada.

.With over 40 years of engineering and manufacturing experience, IEMoffers a wide range of bulk materials handling equipment for miningApron Feeders - Belt Conveyors - Belt Feeders - High Lift Conveyors

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Page 56: CIM Magazine November 2010

COLUMNS | engineering exchange

Over the course of 44 years ofoperation, tailings solids had col-lected in the holding ponds atXstrata Copper’s Kidd Operations inTimmins, Ontario. By 2008, upwardsof 10 feet of material had accumu-lated and was threatening the opera-tion’s capacity to manage and treatwater flows from storms and springmelt. Fortunately for Kidd, Consoli-dated Giroux Environment, a dredgecontractor with the ability to modifyits machinery to handle just such achallenge, was able to provide aquick solution.

The Kidd Operations, includingboth the underground mine andlarge base metals processing facili-ties, began in 1966. “The tailingshave evolved over the years,” saysDavid Yaschyshyn, superintendent,environment and hygiene, XstrataCopper Kidd Operations. “Westarted with conventional slurry discharge and then movedto thickened tailings in 1973. In fact, we pioneered alongwith E.I. Robinsky Associates the first thickened tailingssite in North America.”

Today, the tailings management area spans 1,250hectares, half of which is used for active tailings deposi-tion. The operation utilizes a low-density sludge treatmentsystem, whereby lime is added to treat the acidic tailingswater. As the elevated tailings deposit has an average slopeof two per cent, water run-off can carry some tailings withit. “With all the weather extremes in this part of the world— freeze, thaw, rain storms, drought, spring snowmelt —it leads to erosion of the tailings,” Yaschyshyn adds. “Thiswill be ongoing until the tailings deposit is closed. Erosioncarries tailings solids into our two water treatment plantholding ponds, which, over time, will fill in if not managed.”

Remediating the holding pondsAiming to improve the pond capacity at Kidd, Golder

Associates determined that dredging the ponds was themost reliable and cost-efficient option, based on previousdredging experience on site. The firm then prepared thedesign reports and construction drawings to be used, andprovided periodic monitoring services to review the pro-ject’s progress. Consolidated Giroux was contracted to

Dredging up businessInnovative equipment takes on challenging environments� Heather Ednie

dredge the ponds, which, complicating the situation evenfurther, also contained old trees, stumps and sunken tim-ber that needed to be removed along with the tailings.

To deal with such a situation, the company designedand built the AquaMaster, a self-propelled barge that oper-ates as support equipment for the larger dredges. It pos-sesses a number of practical features, including spuds, sta-bilizers and a hydraulic boom that can be retrofitted with asludge press, debris bucket, excavator bucket, cuttingtalon, tree shearer or jackhammer. “The most importantfeature, for Kidd Operations, was the guillotine shear,”explains Clarence Giroux, president, Consolidated Giroux.“With it, we can cut a 14-inch diameter tree 20 feet under-water.”

In addition to the innovative modifications it made to machinery, Giroux retrofitted all of its dredges withdouble-walled fuel and hydraulic tanks to prevent spills.It also equipped all of its dredges, barges and the Aqua-Master with biodegradable hydraulic oil.

As Giroux dredged the holding ponds, they removed thetrees and other large debris with the AquaMaster, andhauled the material to shore using a transport bargeequipped with a hydraulic moving floor. A modified 915Mud Cat was then used to remove the tailings from thepond and return them to the tailings cone. This machine,modified by Giroux, is made of stainless steel to prevent

56 | CIM Magazine | Vol. 5, No. 7

Re-established holding pond in foreground with terraced dredged tailings storage cells on the slope of thickenedtailings deposit

Photo taken by Guy Talbo

t of Talbo

t Surveys

Page 57: CIM Magazine November 2010

Quadra has been servicing the mining industry across Canada and Alaska for over 20 years.

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engineering exchange | COLUMNS

corrosion in such an acidic environment. It also features a350-hp engine (the standard is 238 hp) that drives a screwpump instead of the typical closed-face impeller pump,which enables the machine to handle tree branches andheavy debris lying within the settled tailings.

In the future, work in the holding ponds will be done ona more regular basis. “Ongoing maintenance will preventthe ponds from filling in and needing such a large clean-ing,” Yaschyshyn adds.

Routine dredging of settling pondsDue to the cold weather in the winter, dredging is lim-

ited to the ice-free period from May to November. Part ofthe water treatment process requires the addition of lime tothe acidic water (to create a hydroxide) in the on-site set-tling ponds, leaving a hydroxide sludge and some unspentlime behind. Giroux dredges these settling ponds toremove the hydroxide and unspent lime, and returns it tothe tailings area for storage. Dredging is routinely carriedout once a year, unless a situation calls for a higher fre-quency. “For example, Giroux may dredge the entire pondone year, then just do half of it the following,” saysYaschyshyn. “The frequency is based on our needs.”

The water in the settling ponds tends to have a high pHlevel, due to the addition of lime. This basic environmentis also corrosive, attacking materials such as aluminumand brass. As such, Giroux ensures that the equipment ituses in those ponds is not made of, or equipped with, anyof those materials. As well, the basic environment canleave a brownish coating of scale — up to one-eighth inch— on all the equipment, which must be water or sand-blasted off.

Another challenge for Giroux is having to move materi-als over a long distance. “For a normal dredging job, wetypically move materials about 4,000 feet,” Girouxexplains. “At Kidd, it’s in the vicinity of 7,000 to 8,000 feet,requiring a lot of extra pipeline and booster stations topush the materials through. We have about 30,000 feet of

November 2010 | 57

high-density polyethylene (HDPE) pipeline on site— it offers a good abrasion resistance.”

A perfect fitGiroux operates 14 dredges for their various con-

tracts and, over the years, they have been proactivein ensuring the equipment best suits the job andmeets stringent environmental standards. “Everydredge that we have bought has been modified inour shop to fit the specific job we are working on,or to meet our safety standards,” Giroux explains.

Consolidated Giroux has turned out to be theright size fit for Kidd Operations’ requirements.“They are not too big, not too small,” Yaschyshynadds. “There are some very large dredging outfits inthe Alberta oil sands and elsewhere. In our experi-ence, Giroux is dependable and obviously environ-mentally conscious. Finally, here at Xstrata Copper,

we’re very safety conscious and Giroux has been maturingwith our safety requirements. They’ve adopted our stan-dards and procedures.”

Consolidated Giroux is happy to follow the safetyguidelines set forth by Xstrata Copper. “We’ve trained ourguys accordingly,” says Giroux. “And we are proud of ourgood safety record there.” CIM

The AquaMaster and transport barge in action at Kidd Operations

Photo by Eug

ene Ro

usselle, dredg

e manager at C

onsolidated Giro

ux

Page 58: CIM Magazine November 2010

COLUMNS | standards

58 | CIM Magazine | Vol. 5, No. 7

With the privatization of manyRussian mining companies in theearly 1990s, the question of interna-tional financing of Russian miningoperations first arose. All miningoperations had sets of resource/reserve estimates that could be usedin the valuation process, but unfortu-nately these followed a classificationstandard that could not easily be rec-onciled with others, such as the CIMStandards & Guidelines for Resources& Reserves and the JORC Code, bothconventionally used on internationalmarkets.

Many different mappings wereproposed between the Russian andinternational classifications, but thesediffered according to the deposit typeand depending on their authors’views on the reliability of Russianexploration and reserve estimationmethods.

As a result of the uncertainty, mostprojects were deemed to require anew independent deposit modellingexercise by a “bankable name” inter-national consulting firm. This ledrapidly to new problems. The esti-mates produced by such studieswould often be irreconcilably differ-ent from the Russian numbers. Thissometimes led to real problems, bothin the markets and governmental,when reported resources and reserveswere very different from thoseapproved by GKZ (the State Commis-sion on Mineral Reserves).

However, a review of the definitionsand use of both the CRIRSCO-alignedand Russian classification systems formineral resources and reserves showedthat the differences were much lessthan had been imagined. Even the def-inition of the Russian “CompetentExpert” was surprisingly similar tothat of the (Canadian) Qualified Per-son or (international) Competent

New guidelines for international reporting of Russian mineral resources and reserves � Stephen Henley

Person (QP/CP), although the moreprescriptive Russian system allows lessscope for professional judgement.

Development of the guidelinesdocument

In 2006, a working group wasestablished jointly by CRIRSCO andGKZ to investigate the possibility ofsetting up conversion proceduresbetween the Russian and interna-tional reporting systems. The ideawas to avoid the subjective questionsof relative reliability and confidence,and to work purely from the pub-lished definitions. By 2008, it wasagreed in principle that a set of con-version guidelines could be devel-oped. In early 2010, a consultationdraft of the guidelines document waspublished. By July 2010, the consul-tation was completed and the docu-ment formally published on August25 of this year.

This document provides generalguidance for conversion from Russianclassified mineral resources to inter-national CRIRSCO-aligned classifica-tions. Under all circumstances, theactual conversions and final decisionsrest with the professional judgementof the QP/CP. The conversion is inone direction only, from Russian tointernational. The opposite directionis not possible, as the Russian

classification has a larger number ofcategories. It also is not a requirementbecause the Russian system is itselfintegrated with procedures and docu-mentation formats, which areunlikely to correspond directly withthose used internationally.

Mapping Russian to CRIRSCOclassifications

In broad terms, the translation issimple. Russian categories map tomineral resources:• C1, B, A map to Measured

Mineral Resources• C2 maps to Indicated Mineral

Resources• P1 maps to Inferred Mineral

ResourcesIn more complex deposits (Russ-

ian “complexity class 4”) there will berelatively little C1 material and thiswill map to Indicated MineralResources. The Russian P2 and P3categories of “prognostic resources”have no CRIRSCO equivalent, andexpress more general concepts ofmineral potential of a region. Themapping is shown in a generalizedform in the figure.

Often C2 and C1 resources arequoted, but they are “authors’ esti-mates” and have not been registeredwith GKZ. These have therefore notpassed through the associated “expert

Generalized view of the guideline classification mapping. Please note that in more complex deposits, no resourcesof categories B and A are reported, and C1 will map to Indicated Resource rather than Measured Resource.

RussianP3 P2 P1 C2 C1 B A

CRIRSCONo Inferred Indicated Measured

equivalent

Page 59: CIM Magazine November 2010

Author

Stephen Henley is an independent consulting geologistwith extensive experience on projects in Russia-CIS. He iscurrently the independent geological adviser to the boardof Petropavlovsk plc and an equity participant inindependent Russian PGM explorer OAO Pana. He isdeputy chairman of PERC and a PERC representative onCRIRSCO. Steve was a co-founder of Datamine andchairman of the company from 1981 to 1993.

have been derived from GKZ-registeredresource estimates, as they relate to min-ing operations that otherwise would nothave been permitted.

In summary, there is now a set ofguidelines to assist the QP/CP toreport Russian resources and reservesunder international standards with-out needing a separate deposit model-ling exercise. The QP/CP must take

responsibility for assuring himself/herself of the veracity of the estimatesand of all the modifying factors.

For further information, downloadthe guidelines from www.crirsco.comor www.perc.co. Detailed informationon the Russian reporting system isavailable at www.gkz-rf.ru, but beforewarned that most of what is avail-able here is in Russian. CIM

standards | COLUMNS

November 2010 | 59

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review” independent audit whichcan, and does, modify reported fig-ures. For this reason, it is not recom-mended, in general, that theseauthors’ estimates be converted tohigher than the Inferred category.

The GKZ registration procedure doestake into account most of the modifyingfactors that would need to be consideredin transferring material to mineralreserves. However, it does not take intoaccount any adjustment for losses ordilution. For this reason, the QP/CPwould need to apply his/her own judge-ment (as always) in transferring anymaterial to reserves categories. Theremay be Russian “Exploitation Reserves”defined informally at mining operationsthat will incorporate loss/dilution fac-tors, which may be usable, or the QP/CPmay need to form his/her own opinionon these and all other modifying factors.By definition, Exploitation Reserves will

Page 60: CIM Magazine November 2010

COLUMNS | canadians abroad

Sean Waller, president of CandenteCopper, has worked all around theglobe. His experiences have taken himfrom Asia to South America, withstops in Australia and Europe alongthe way. Although his work currentlycentres in Peru, where his company’sprimary project — Cañariaco — is inthe feasibility stage, Waller has spentmost of his career as an engineeringconsultant.

“People don’t really appreciate thetechnology transfer by Canadiansworking overseas, especially bythe consulting industry,” Wallersays of his fellow Canucks.“Canadian companies do a hugeamount of consulting overseas— all of it is technology transfer.Also, Canadian engineering firmsare highly sought-after interna-tionally,” he adds.

Globe trotterOriginally from Vancouver,

where he still resides, Waller’sinternational experience datesback to 1988, when he beganworking in Indonesia for KilbornEngineering (now SNC-Lavalin).Eager to discover the world aroundhim, he was happy to see work assign-ments abroad quickly come his way.“If you’re going to work in consulting,you’d better be willing to travel,” heexplains, having spent much of 1988to 2000 in Indonesia (even living therefor three years in the early 1990s)working at Freeport Indonesia’s Grass-berg copper/gold mine.

In Waller’s case, when presentedwith the opportunity to travel, it neveroccurred to him to say “no.” “As ayoung engineer, it’s so rewarding,” hesays. “You not only gain technicalexpertise, you also gain exposure andbenefit from learning about other cul-tures. I found wherever I worked, thehost people were very open to us being

Technology transfer is a global gameCandente’s Sean Waller learns life lessons working abroad� Heather Ednie

there. They wanted to learn aboutCanadian practices and teach us theirways as well.”

The dawning of a new centurybrought about new travel destinations.In 2000, Waller spent time in Australiafor while working with SNC-Lavalin.He followed that up with several engi-neering and business trips to Africa.Since 2004, he has spent a great deal oftime travelling in South America forAMEC and, more recently, for Can-dente. These days, much of his work ison the business side of the industryand includes time in Europe attendinginvestor meetings.

Embracing diversityWhen working in Indonesia

throughout the 1990s, Waller learned to

speak the local language. “If you want towork overseas, especially if you’respending a lot of time in one country,learn the language,” he advises. “It’seffective for work and a polite thing todo.” Although he was set to begin tak-ing Spanish lessons two years ago, hisplans were delayed until this fall, prima-rily due to his role as a member of theCIM Council and taking on chairing theCIM Conference and Exhibition 2010.Waller also finds that, when workingabroad, it is very rewarding and enjoy-able to take the time to get to know thepeople you are working with outside ofwork. “It is a terrific way to gain newfriends, as well as a real insight into theirculture,” he adds.

During his stay in Indonesia, a pre-dominantly Muslim country, Waller

60 | CIM Magazine | Vol. 5, No. 7

A recent view of the Candente Copper Canariaco Norte exploration camp and proposed minesite in the Andes of NorthernPeru — the project that takes up most of Waller’s time these days.

Photos cou

rtesy of Sean Waller

Page 61: CIM Magazine November 2010

realized how important it is to be aware of the local cus-toms. “I learned it’s considered very rude to point atpeople,” he recalls. “You do it with your thumb instead,or wave — you must make a conscious effort.”

Although he does not have children himself, Wallerhas observed that for families, working overseas can bea great experience, especially for those with young chil-dren. “Usually there are very good facilities for them,”he says. “As well, they can acquire another languageand benefit from being exposed to a different culture.When I was at Freeport in Indonesia, only men couldwork, but many wives came with their husbands andkids, simply for the experience.”

According to Waller, he has learned more from all ofhis travelling than he has in any classroom. His experi-ences have shaped the way he thinks and influenced hisoutlook on life. “In my early thirties, when I startedworking overseas for the first time, it taught me we’re allthe same, with the same basic values,” he explains. “I’venever forgotten that, no matter where I am.” CIM

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Page 62: CIM Magazine November 2010

Much of Canada’s mineralresources are located in areas cov-ered by historic treaties, moderntreaties (land claims agreements),self-government agreements, orthe existing and asserted Aborigi-nal rights of one or more Aborigi-nal groups. When starting a proj-ect in a particular area, it is impor-tant to get to know which groupsyou need to engage and what isexpected of you to move throughthe permitting, licensing andapproval processes.

The Canadian Constitutionrecognizes three Aboriginal peo-ples: Indians, Métis and Inuit.Although they are often referredto collectively as “Aboriginal peo-ples,” these are three distinct peo-ples that are further divided into many different groups andcommunities with unique histories, languages and cultures.

“First Nation,” a term that came into common usage inthe 1970s as an alternative for some uses of the word“Indian,” is now commonly used; however, it has no legaldefinition. The term “First Nations peoples” refers to Statusand Non-Status Indians in Canada. Some use First Nation toreplace the word “band” in the name of their community orreserve.

Currently, there are 615 First Nation communities inCanada, which represent more than 50 collective groups,and 50 Indian languages.

“Inuit” are the Aboriginal people of circumpolar Canada.About 45,000 Inuit live in 53 communities in Nunatsiavut(Labrador), Nunavik (Quebec), Nunavut and the InuvialuitSettlement Region of the Northwest Territories. Each ofthese four Inuit groups has a settled land claim.

“Métis” refers to persons of Aboriginal and non-Aborigi-nal ancestry who identify themselves as Métis and belong toor have ancestral ties to a Métis group distinct from otherAboriginal peoples. Métis groups have unique histories andcultures based on their First Nation and European roots.

Land, resource and self-government agreementsIn much of Canada, there are historic treaties between

First Nations peoples and the Government of Canada — theCrown — that date back to the 1700s, and as recently as

Canada’s Aboriginal groups: rights, treaties,land claims and consultationBuilding relationships early makes good business sense� Dawn Curtis

1921. In parts of Canada where historic treaties were notentered into, or where there was disagreement over themeaning and implementation of the original treaties, theCrown established the Comprehensive Land Claims processto negotiate rights of land title, use and occupancy. This“modern treaty” process began in the 1980s, and the agree-ments are commonly referred to as “land claims.”

For example, in the Northwest Territories, Canada agreedto use the comprehensive claim process to negotiate a mod-ern treaty with the Dene and Métis because of disagreementover the meaning and implementation of original Treaties 8and 11. More recently, self-government agreements are beingnegotiated along with land matters — referred to as land,resource and self-government processes.

Sometimes an agreement may include more than oneAboriginal group, as in the case of the Sahtu Dene and MétisComprehensive Land Claim Agreement that includes bothSahtu Dene and Métis beneficiaries. Other agreements mayinvolve only one group — for example, the Inuvialuit Settle-ment Agreement for the Inuvialuit.

It is important for businesses to recognize the distinctionbetween Canada’s Aboriginal peoples, and they must alsounderstand how these distinctions may impact their busi-ness. Companies need to get to know the regional or localhistory and context in their project area. When planning andconducting mining exploration and development initiatives,a company must engage government and Aboriginal

COLUMNS | first nations

62 | CIM Magazine | Vol. 5, No. 7

Aboriginal engagement in Nahanni Butte, NWT, on the Canadian Zinc Prairie Creek Mine project

Photo courtesy of C

anadian Zinc Corpo

ratio

n

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| COLUMNS

November 2010 | 63

first nations | COLUMNS

representatives early to learn about the specific rights andprocesses that apply.

Modern land claims agreements are constitutionally pro-tected, having force of law under Section 35 of the CanadaCharter of Rights and Freedoms, and include detailed provi-sions to guide consultation with Aboriginal people on deci-sions that could affect them. In addition, individual Aborig-inal groups and organizations may have their own protocolsand exploration and development requirements for industry.And even if a group does not yet have a signed land, resourceand self-government agreement, or “modern treaty,” theymay have negotiated interim measures agreements for thearea under negotiation.

The existing rights of groups without a modern treaty, orwho only have a historic treaty, are also constitutionally pro-tected. In this case, the Crown’s duty to consult has beendefined in common law through decisions of courts, notablySupreme Court of Canada decisions Haida, Taku and Mikkisew.

What does this mean for an exploration or developmentcompany?

Any project or activity — large or small — requiring afederal approval, license or permit, and/or which couldadversely impact established or potential Aboriginal andtreaty rights, could trigger the Crown’s legal duty to consult.

The courts have stated that third parties, such as develop-ers, do not have a Section 35-based legal duty to consultwith Aboriginal people. The Crown, while it may delegateprocedural aspects of consultation to third parties, has solelegal responsibility for any consequences that flow from itsactions and interactions with third parties that mayadversely affect Aboriginal and treaty rights.

However, normal due diligence and similar businesspractices that are carried out by a company in the course ofits interactions, relations and dealings with Aboriginalgroups, such as engagement and consultation, may be takeninto account when the Crown is assessing consultation obli-gations related to permits and licenses.

For example, a mining exploration company may meetwith an Aboriginal group to explain a proposed drillingexploration project, answer any questions and possiblyaddress their concerns. If the duty to consult arises in this

Moving on upJames M. Dawson has been appointed director andvice-president, exploration of Wolverine MineralsCorp. Dawson, a registered professional engineer withover 40 years of fieldwork experience, has beeninvolved in many exploration discoveries, includingthe Blackdome Mine, Frasergold and Taurus proper-ties in British Columbia, and the Big Horn Mine in Ari-zona. Dawson was also part of the original Pan Oceanteam, which made the discovery of the Lac Cinquanteuranium deposit in Nunavut in 1975.

particular case (i.e. the Crown decision that would allow thepermitting of the proposed project), the Crown might takethe company’s consultation efforts and actions into account,as well as consultation that the Crown may have conducted,when assessing its consultation obligations.

Experience has shown that forging strong, respectful rela-tionships with Aboriginal groups early in the process is agood business practice. Getting accurate information is animportant first step that allows companies to engage earlyand build relationships. It is also a good business practice torecord and document all activities, meetings, discussions,issues, commitments and outcomes related to consultation.

All parties benefit from proactive consultation and face-to-face engagement. In short, building relationships andsharing information with potentially affected Aboriginalgroups from the very beginning of your project planningmakes good business sense. CIM

Author Dawn Curtis is a seniorcommunications officer with Indian andNorthern Affairs Canada (INAC) NT Region,and lives in Yellowknife, NorthwestTerritories. Her work involves supportingINAC NT Region’s Aboriginal and TerritorialRelations Directorate.

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Page 64: CIM Magazine November 2010

COLUMNS | student life

64 | CIM Magazine | Vol. 5, No. 7

EVENTS TO WATCH FORWINTER 2011CIM is launching student chapters atuniversities across the country. Next stops: Laval University, McGill University/ÉcolePolytechnique (February 3rd) and the Universityof Toronto (Lassonde Institute).Info: [email protected]

MARCH 17, 2011CIM Saskatoon Branch Student Paper Night6 pm @ The Sheraton Cavelier HotelInfo: [email protected]

Queen’s University launches CIM student chapter � Jocelyn Dahme

Helping studentsconnect withindustry� Teresa Barrett

Tapping into the next generation ofhighly qualified professionals is vital toensuring a bright future for the miningindustry, and CIM is committed to help-ing make that happen. We are currentlyin the process of establishing a CIM stu-dent program that will help studentsconnect with industry professionalsthrough the implementation of CIM stu-dent chapters on CEGEP and universitycampuses, developing enhanced studentprograms at our conferences, and pro-moting CIM scholarships and bursaries.Already, CIM has:• Launched student chapters at the

University of Saskatchewan, Queen’sUniversity and Cégep de l'Abitibi-Témiscamingue in Rouyn-Noranda.

• Confirmed the launching of studentchapters at four additional universi-ties, three of which are taking placein the first quarter of 2011.

• Developed a student program fornext year’s CIM Conference & Exhi-bition in Montreal that will connectsecondary and post-secondary stu-dents with industry veterans at M4S(formerly Mining in Society).

• Committed to supporting teams par-ticipating in next year’s CanadianMining Games taking place fromFebruary 24 to 27 at the University ofAlberta.In an effort to lighten the financial

burden that plagues many universitystudents, CIM offers more than 50scholarships and bursaries awardedthrough CIM National, its branches andsocieties, as well as through the Cana-dian Mining and Metallurgical Founda-tion. Watch for a complete list of CIMscholarships and bursaries in the nextissue of CIM Magazine.

For further information about CIM’sstudent program, contact Teresa Barrett,CIM’s membership liaison agent, [email protected]. CIM

The Canadian Mining and Metallurgical Foundation (CMMF) table at the Queen’s CIM Student Chapter launch.From left to right: Vic Pakalnis, Professor in Mining and Sustainability; Glenn Clark, President of CMMF; KellyBateman and Stephanie Zimmerling, Queen’s students; and Chris Twigge-Molecey, President of CIM

Photo courtesy of A

dam Walker

On September 21, 2010, a group made up of 82 students, faculty and CIMmembers gathered at the Clark Hall Pub at Queen’s University to celebrate thelaunch of the new Queen’s CIM Student Chapter.

CIM president Chris Twigge-Molecey spoke to the crowd about the vastarray of careers, challenges and innovations in the mining industry today. Ofparticular interest to the students in attendance were his opinions on the indus-try’s future and the growing opportunities in China and South America, forwhich he recommends learning Mandarin and Spanish as two emerging lan-guages of importance to global mining.

The new CIM Student Chapter at Queen’s University will give student mem-bers the opportunity to make new contacts and learn first-hand from industryveterans. Students will also be able to take advantage of networking opportuni-ties at CIM meetings and career forums to help them in their searches for sum-mer jobs or post degree employment.

Queen’s University is excited to welcome CIM to its campus. The students arelooking forward to nurturingtheir relationship with the Cana-dian mining, metals and energyindustries through such a cele-brated organization and areready to explore the future ofCanadian mining alongsidetheir industry counterparts. CIM

Author

Jocelyn Dahme is asecond-year miningengineering student at Queen’s University.

Page 65: CIM Magazine November 2010

women in mining | COLUMNS

November 2010 | 65

Although historically mining hasbeen an industry dominated by men,written and photographic recordsdating back to the early 1800s existindicating that women worked inthe coal industry in England andWales; took part in the California,Alaska, Yukon and BC gold rushes;and have prospected throughoutNorth America since the mid-1800s. In fact, one of Canada’s mostsuccessful prospectors, the leg-endary Viola MacMillan, evenbecame the first female president ofthe Prospectors and DevelopersAssociation of Canada in 1944 — aposition she held for two decades.

Despite this background,women entering mining-relatedcareers in the 1960s and early1970s found themselves theobjects of some curiosity, asdemonstrated by letters sent in toadvice column gurus Ann Lan-ders (Vancouver Sun, circa 1974-75; see p. 65) and Dear Abby(Toronto Sun, December 1975; seep. 66). The Northern Miner foundthem rare enough to be newswor-thy and thus began assigning sto-ries to Nean Allman, the newspa-per’s first female reporter and firstgeologist on staff.

“The editor liked my story somuch that he suggested I take thewomen I interviewed out for lunch,”recalls Allman. “The four of us who meton that occasion had such a great timethat we decided to continue thelunches, which gradually grew as morewomen began working in the industry.It wasn’t called ‘Women in Mining’ inthe early days, though. It was just alunch between some of the womengeologists in town, a chance to meetlike-minded souls since there weren’tvery many women in the industry andmost were relatively isolated and

junior, and they never met othersacross a table doing business.”

By 1973, then-president of the Geo-logical Association of Canada (GAC),Ward Neale, drew attention to the factthat, “Out of a GAC membership of2,000, there are only three dozenfemale members.” In an effort toaddress this issue, GAC created theStatus of Women Geoscientists Com-mittee and appointed Nean Allman tohead it. The committee’s findings were

published in GAC Information Circu-lar No. 2 in 1976, bringing about anawareness of women working in thegeoscience profession.

Early beginnings: a sisterhood was born

Not all of the women’s groups wereprofessional organizations, but rathera means for the wives and daughters ofthose working in the industry tobecome acquainted. In 1921, the

Answer: For a woman who is “not worried”

you sound pretty upset. Cool it, dear. If your husband’s job con-

sists of training new crew members, you’d better accept the fact

that some of those crew members are female. What you describe is

the result of women’s insistence that there be no discrimination

on the basis of sex. So, we have to take the bitter with the sweet.

P.S. Before I get clobbered by a few thousand lady geologists, I

want to go on the record as dissociating myself from that com-

ment about their looks. Please don’t put the wife’s words in my

mouth. I make enough gaffes on my own.

Dear Ann: My husband is a geologist for a major oil company.Recently he had to take a young woman geologist out to an oilwell to train her. They were together constantly for three weeks,travelled thousands of miles alone in the car, ate all their mealstogether, even slept out on the rig.I’m not worried about the physical attraction, because mostwomen geologists are so ugly they could go lion-hunting with aswitch. I do resent the proximity between the two of them forthat length of time and have told him so. He swears everythingis strictly business.

Why should women who choose to stay home and be wives andmothers have to put up with such stuff just so these liberatedwomen can prove themselves in a man’s field?What about the oil companies? They profess to care about thewelfare of their employees. Why not their employees’ wives? Iwonder how other wives feel about these situations and howthey deal with their anxieties.

— Geologist’s wife

Circa 1974 – 1975

Where it all beganA look at women’s groups in the Canadian mining industry� Barbara Caelles

Page 66: CIM Magazine November 2010

Women’s Association of the MiningIndustry of Canada — Toronto(WAMIC) was founded by EdithTyrrell, wife of famed geologist JosephBurr Tyrrell, “to foster friendshipamong women connected to the min-ing industry.” The association handedout their first scholarships in 1939and, in 1964, the WAMIC Foundationwas formed to provide scholarships,bursaries and awards to undergradu-ate students across Canada.

In 1975, the Greater VancouverMining Women’s Association(GVMWA) was formed as a “fellow-ship organization for spouses of peo-ple connected with the mining indus-try.” By 1977, it had evolved into acharitable organization whose man-date was to raise public awareness ofmining through education. Over theyears, members have raised a consid-erable amount of money to supportscholarships, science fair awards and aminerals education program.GVMWA also organized a StudentNetworking Evening for six yearsuntil Lynn Anglin and the Associationfor Mineral Exploration of BC took itover and made it an integral part of theannual Mineral Exploration Roundup.

CIM also played a role in promot-ing women’s groups early on. At itsannual conference in 1977, CIM heldits first technical sessiongeared specificallytowards women,“Effects of miningcommunity livingand isolation,”which attracted acrowd of morethan 400 people.Today, CIM holdsa Women in MiningForum and Recep-tion each year aspart of its annual con-ference and has aWomen in Mining col-umn in each issue ofCIM Magazine.

Women in Mininggroups

Across the country,informal gatherings

66 | CIM Magazine | Vol. 5, No. 7

CANADAwimcanada.org

Manitoba [email protected]

Northern [email protected]

Quebec (WIM Val-d’Or) [email protected]

[email protected]

Toronto women-in-mining.com [email protected]

Vancouver amebc.ca/wim-vancouvermining.bc.ca/women_in_mining.htm

[email protected]

UNITED STATESWIM National womeninmining.org [email protected]

Women In Mining Education Foundation (WIMEF) [email protected]

California [email protected]

Denver [email protected]

Nevada [email protected]

Student ChaptersMissouri University of Science and Tech-nology (MS&T)[email protected]

WIM groups around the world

Dear Abby,

My husband works in the coal mines and I just found outthat they recently hired some women to work right along-side the men!

Abby, I don’t want my husband working with women. I’vetalked to lots of other wives, and they feel the same wayabout it. We can see nothing but trouble ahead. What canwe do about it?

— Cumberland, KY

December 1975

Dear Cumberland,

You may not dig your husband working with women, but it’s

highly unlikely that “his” and “her” coal mines will become a

reality.

I personally dig equal opportunities for women — above or below

ground.

evolved into more structuredgroups. The handful of geologiststhat used to meet for lunch grewthroughout the 1980s and 1990sand eventually became Women inMining (WIM) Toronto.

WIM Vancouver had its beginningsin 2002 when Diane Gregory and Imet at a Mineral Exploration Group

(MEG) lunch and decided it was theright time to try to form a group simi-lar to the one that existed in Toronto.Within a few months, a 20-nameemail list grew to over 100 names, andtoday stands at over 400.

In addition to WIM Canada (theonly national non-profit organiza-tion), WIM networking groups havealso formed in Manitoba, Northern

Page 67: CIM Magazine November 2010

Ontario, Quebec (WIM Val-d’Or) andSaskatchewan.

Giving backWhile networking remains the pri-

mary goal of WIM groups, manywomen also feel a profound sense ofwanting to give back to the commu-nity, to educate others about theirwork, and to help out in some tangibleway.

In 2007, a team made up of WIMToronto members took part in theWeekend Walk to End Breast Cancerand raised over $200,000 to becomethe top fundraising team. That sameyear, WIM Vancouver organized across-Canada team in the Run for theCure and raised over $30,000. Twoyears later, the team was the 15thhighest grossing fundraiser in Canada,and just this past year, WIM Vancou-ver won the CIBC Corporate SpiritAward for being the top fundraisingteam (raising nearly $50,000) at theVancouver Canadian Breast CancerFoundation CIBC Run for the Cure.

Fundraising efforts carried out byWIM groups began generating consid-erable publicity. At a monthly lunch-eon in Toronto following the 2007Weekend Walk to End Breast Cancerand Run for the Cure, the scheduled

teleconference attracted calls fromBrazil, the United States and England.We suddenly became aware of theexistence of other WIM groups aroundthe world, as well as individualsinspired to set up groups where therewere none.

In terms of education, WIM Van-couver has worked in tandem withSheila Stenzel, director of the MineralResources Education Program ofBritish Columbia, Mining Associationof BC, to promote geosciences byoffering high school students theopportunity to complete a short workterm with a mining company. Thegroup has also taken a leadership rolein mentoring. Most recently, at theUniversity of British Columbia’sWomen in Science (WISE) 2010Career Evening, WIM Vancouvermembers spent one-on-one time with

November 2010 | 67

Author

Barbara Caelles is a professional geoscientist with 40years of experience in the mining industry. She was anexploration field geologist before turning to consulting tobalance her profession with motherhood. She is afounding member of the Vancouver Women in Mining.

Virginia Polytechnic Institute & StateUniversity (VA Teach)[email protected]

[email protected] ausimm.com.au/Content/default.aspx?ID=236

WIMARQ (Women in Miningand Resources Queensland)[email protected]@bigpond.comwomeninminingqueensland.com

WIMARV [email protected]

WIM [email protected]

Perth Blogwimwa.wordpress.com [email protected]@momentumpartners.com.au

[email protected]@apoyoconsultoria.com

[email protected]@nblgold.com

SOUTH [email protected]@mweb.co.zawww.sawima.co.za

[email protected]

[email protected]@yahoo.com

UNITED [email protected]

INTERNATIONAL womeninmining.net rimmrights.org

OTHER WOMEN’S ORGANIZATIONSGreater Vancouver MiningWomen’s Associationwww.gvmwa.com

students, offering advice on how toprepare for a career in science andengineering.

Here to stayFrom a single association in the

1920s to an ever expanding network,these groups continue to provide guid-ance and leadership to young women,and contribute substantially to theircommunities and charitable causes. Tolearn more about how you can becomea member, please consult the sidebarfor a complete list of groups aroundthe globe.

AcknowledgmentI would like to acknowledge and

extend thanks to Nean Allman for hersuggestions in putting this articletogether, and for her encouragementand support over the years. CIM

Page 68: CIM Magazine November 2010

The four funerals of Sophia CameronDeath and riches in the Cariboo Gold Rush� Correy Baldwin

Abrutal winter had just set inwhen Sophia Cameron wasburied, with as much dignity

and ceremony as was possible, in a tincasket beneath an abandoned cabindeep in the wilderness of BritishColumbia. It was 1862 and the Cari-boo Gold Rush was in full force.

Sophia was the only white womanin the area at the time, and all 97 of theneighbouring miners came to pay theirrespects. Little did they know howoften this ceremony would be repeatedbefore Sophia could finally rest inpeace. Only her husband, JohnCameron, had a notion of the difficul-ties that lay ahead, burdened as he waswith a promise to return her body totheir home in Ontario, or what wasthen known as Canada West. Cameronwas aware of both the difficult journeyback and the untold riches that layahead.

For the time being, Cameronpressed ahead, working the claim theyhad staked just two months earlier. Hispatience paid off, and in late Decem-ber, two months after his wife’s death,Cameron found gold.

Despite the harsh winter, he movedquickly, hiring 75 men and workingthem around the clock on three shifts.After a month of hard labour,Cameron offered $12 a day and a$2,000 bonus to any man who wouldhelp him carry Sophia’s coffin out ofthe Cariboo.

When it all began John and Sophia had met in their

youth, both raised on farms nearCornwall, Ontario. After setting their

sights on marriage, Cameron went toCalifornia to work the gold mines,then to the Fraser Canyon Gold Rushin British Columbia in 1858. The rushonly lasted a couple of years andCameron soon returned to Cornwallto marry Sophia.

After the Fraser River gold driedup, prospectors began exploring fur-ther north into the Cariboo region,whose watersheds drained into theFraser. They found gold in 1861, thesame year that Sophia gave birth totheir daughter, Alice. When they heardthat gold had been discovered, thenew family packed up to join the Cari-boo gold rush.

They arrived in Victoria in Febru-ary 1862, after a long journey aroundSouth America by ship. But the triphad been too arduous for the 14-month-old Alice, who died just daysafter their arrival. Weary, broke and inmourning, John and Sophia relied on afriend for the necessary provisions tocontinue on to the Cariboo Trail.

The trail was an unreliable paththat wound its way north over moun-tain passes, through deep canyons andpast roadhouses named 100 MileHouse and 150 Mile House. Whenthey finally arrived at the gold rushtown of Richfield late that August,they staked a claim on nearby

Freight wagons along the Cariboo Wagon Road (circa 1867)

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68 | CIM Magazine | Vol. 5, No. 7

Page 69: CIM Magazine November 2010

Williams Creek. Sophia had a share — rare for a woman at the time— as did the five men they were travelling with.

Winter in the bush was difficult, with bitter temperatures and inad-equate shelter. It was here that Sophia succumbed to typhoid fever inlate October, whispering to her husband her dying wish to be buriedin Ontario.

Bringing Sofia homeThroughout all of February, Cameron and several other men care-

fully inched Sophia’s coffin south over the frigid mountain trail,through deep snowdrifts and thick forest, abandoning the coffin atleast once in a blizzard to take shelter for the night, then continuingon in the morning.

Death was all around them. The smallpox epidemic had just sweptthrough the Pacific Northwest, arriving in Victoria from San Franciscoin March 1862, most likely from a miner travelling to the Cariboo. Ittore through communities and utterly devastated the Native popula-tion, even reaching the distant mining towns and roadhouses alongthe Cariboo Trail. To those who lived along the trail, the sight ofSophia’s toboggan-bound coffin would have been both frightening andfrighteningly familiar. For Cameron, the memory of death was follow-ing him and meeting him at every stop.

Cameron made it to Victoria that March. Knowing the bounty ofgold that awaited him back in the Cariboo, he had Sophia’s coffinfilled with alcohol to preserve her body and arranged for a second bur-ial in Victoria, and then returned to his claim for one more season.

And a good season it was. Cameron bought out neighbouringclaims, hired more men and oversaw what had become one of thelargest operations in the Cariboo. His work camp soon grew into atown, named Camerontown. In October, he returned to Victoria withhis fortune, disinterred Sophia’s coffin and boarded a ship back toCornwall. He arrived that winter and fulfilled his promise, burying hiswife just after Christmas 1863.

Cameron remarried two years later and built an impressive man-sion in nearby Summerstown. But as the years went on, Sophia’s fam-ily grew suspicious of his wealth and Sophia’s death. Cameron hadrefused to let Sophia’s father see his daughter’s face before she wasburied. He was also secretive about the extent of his wealth, andextravagant and rash in the ways that he spent it — including a hostof investments and business ventures, many of which fell flat.

Rumours began to spread. Some suspected that Cameron had leftSophia buried in the Cariboo or in Victoria, while others suggestedhe had sold her into slavery. Whatever the story, the family becameconvinced that Sophia’s coffin was filled not with her remains, butwith gold.

Cameron finally relented to their mounting accusations and in1873, he once again raised Sophia’s coffin. It was opened, revealingher remarkably preserved body, still submerged in alcohol. Allrumours were finally laid to rest, as was Sophia. Cameron moved hercoffin to Summerstown and buried her — for the fourth and final time— near the mansion that he had built from their Cariboo gold. CIM

Page 70: CIM Magazine November 2010

calendarCIM EVENTS

Toronto Branch Luncheon meetingDecember 9 | Toronto, ONContact: Rick HutsonEmail: [email protected]

Edmonton BranchTechnical Meeting December 13 | Edmonton, ABContact: Fenna PoelzerEmail: [email protected]

Section de QuébecConférence de James Franklin, Éminent conférencier del’ICM13 décembre | Québec, QC Responsable : Pierre VerpaelstCourriel : [email protected]

Saskatoon GeoSectionTechnical MeetingDecember 13 | Saskatoon, SKContact: Gary YeoEmail: [email protected]

Los Andes BranchPresentation on Bioleach and Radomiro TomicDecember 20 | Santiago, ChileContact: John Selters Email: [email protected]

43rd Annual Canadian Mineral Processors Operators’Conference/43e Conférence annuelle desminéralurgistes du CanadaJanuary 18-21 | Ottawa, ON www.cmpsoc.ca/annual-conference.cfm

Saskatoon BranchEnvironmental NightJanuary 20 | Saskatoon, SKContact: Paul Labbé Email: [email protected]

Section QuébecPrésentation – conférencier à confirmer 24 janvier | Québec, QC Responsable : Pierre VerpaelstCourriel : [email protected]

Saskatoon BranchUranium Night February 17 | Saskatoon, SK Contact: Paul Labbé Email: [email protected]

AROUND THE WORLD

MPES 2010 – Mine Planning and Equipment SelectionDecember 1-3Esplanade Hotel Freemantle, Freemantle, Western Australiawww.ausimm.com.au/mpes2010

American Hall of Fame Banquet and FundraiserDecember 4Tucson Marriott University Park Hotel, Tuscon, AZ, USAwww.miningfoundationsw.org

ACG In-Pit Waste Storage and Management SeminarDecember 8-10Novotel Langley Hotel, Perth, Australiawww.acg.uwa.edu.au

Mineral Exploration Roundup 2011January 24-27Westin Bayshore, Vancouver, British Columbiawww.amebc.ca

Water in the Southern African Minerals Industry 2011February 15-17Ingwenyama Conference & Sport Resort, Mphumalanga, South Africawww.saimm.co.za/saimm-events

2011 SME Annual Meeting & Exhibit and CMA 113thNational WesternFebruary 27-March 2Colorado Conventions Center, Denver, CO, USAwww.smenet.org

PDAC 2011March 6-9Metro Toronto Convention Centre www.pdac.ca

Minefill 2011March 21-25The Table bay Hotel, Cape Town, South Africawww.saimm.co.za/minefill2011

Asia Mining Congress 2011April 4-8Marina Bay Sands, Singaporewww.terrapinn.com/2011/asiamining

Paste 2011 – 14th International Seminar on Paste andThickened TailingsApril 5-7Esplanade Hotel Fremantle, Perth, Western Australianwww.paste2011.com

70 | CIM Magazine | Vol. 5, No. 7

Page 71: CIM Magazine November 2010

What’s in a name? Everything, andthat is why last month, the Metallurgi-cal Society of CIM announced it waschanging its name to the Metallurgyand Materials Society of CIM.

Incorporated in 1967, the 1,700-member society represents the techni-cal diversity of the metals, mineralsand materials community, and is dedi-cated to expanding the professionalhorizons of its members to better servethat sector of the industry.

Including materials in the officialname was a move that just madesense. The society has traditionallybeen associated with the productionand processing of metals, but theengineering of materials is verybroad and encompassing. Non-metallic materials, such as compos-ites and ceramics, have been arounda long time and have always beenintegral to the society’s mission andactivities.

“It’s not like some of these materi-als are absolutely new,” explains GregRichards, president of the Metallurgyand Materials Society (still referred toas “MetSoc”) and an engineer withTeck.

But alongside the familiar are thenew, emerging materials that havegained prominence in the last fewdecades, such as nanomaterials andbiomaterials, adding to the potentialbreadth and scope of the society.

“We’ve always recognized theimportance of materials in MetSoc, butas the field diversifies and grows, thereis a need to indicate to the professionthat we will cover these as well as thetraditional areas of metallurgy,” addsRichards.

Another driver behind the initiativewas globalization. It was becomingevident that among other metallurgicalsocieties, there was a growing trend torecognize the inclusion of materials as

a way to better represent the full fieldand what it entails.

And finally, as long as MetSoc wastweaking its name to reflect the inclu-sion of materials, it was decided thetiming was right to re-think and re-vamp the mission statement.

“To a degree, we want to signal tothe profession that this is a Canadianorganization within CIM and we areserious about materials,” explainsRichards. “If there were any ambiguityor doubts in the past about who wewere seeking to serve, then here’s theanswer. We just want to recognizewhat we’ve already been doing andthat we are committed to it, will con-tinue to do it, and will do more tobring in materials.”

The end result is a blending of theold with the new, reaching out to mate-rials on the one hand, while recogniz-ing the history and core strength thatexists in the Metallurgical Society. CIM

November 2010 | 71

cim newsSomething old, something newCIM Metallurgical Society gets new name

By Marlene Eisner

Page 72: CIM Magazine November 2010

cim news | award winner

Three years after the CIM NorthCentral BC Branch in PrinceGeorge, British Columbia, had shutits doors, tenacious CIM memberGreg Rasmussen decided that it wastime to step up and make a differ-ence. Having attended the neigh-bouring CIM South Central BCBranch’s Annual Meeting in Kam-loops and witnessing its tremen-dous success, Rasmussen realizedthe future looked promising forPrince George’s mining communityand embarked on a journey to revi-talize the once dormant branch.“The mining industry within thePrince George area was active, but itneeded to remain connected,”recalls Rasmussen. In November2007, after months of intense work,Rasmussen single-handedly deliveredthe jumping point that catapulted thebranch back onto the networkingscene.

For his singular efforts in organiz-ing the inaugural one-day conference,Rasmussen received the CIM District 6Distinguished Service Award this pastMay. From registration management tobooking presenters, Rasmussen did itall. “At first, I was oblivious to whatwas involved and as it got moreentailed, it grew into more work,”recalls Rasmussen. “But, as I have beenknown to have a stubborn streak, Idecided to follow it through. I just hadto give it a try.”

For most, organizing an event mayseem like a daunting task, especiallywhen tackling it alone. But for onewho is coping with Attention DeficitHyperactivity Disorder (ADHD), it canpose even greater challenges. “When I was growing up, coping with the disorder was hard on my parents,”Rasmussen acquiesces. “But with time,I learned to cope with it and actuallybecame really good at multitasking.”When it came to organizing the con-ference, Rasmussen took it one step at

No guts, no gloryHow one CIM member breathed new life back into Prince George’s mining community

By Robbie Pillo

a time, selected the speakers accordingto local issues, made calls to promotethe event, secured sponsorship andcalled upon CIM’s Distinguished Lec-turers Program to secure his keynotespeaker.

The one-day conference drew over50 delegates who listened to keynotespeaker Glenn Nolan, former Chief ofthe Missanabie Cree First Nation, andsix other technical presentationsbefore gathering at a closing dinner.Rasmussen also chaired an annualgeneral meeting and purposely held itduring the lunch hour to ensure thatall 50 delegates would be present tocast their votes and answer his call toaction for branch executive volunteers— and it worked. A new executive waselected with Rasmussen at the helm.

Since then, the event has growninto an annual two-day conferenceand doubled in delegates, presenta-tions and topics. A portion of the pro-ceeds generated from the 2008 annualmeeting went to support the NorthernBC Friends of Children Society, a non-profit organization assisting familieswith children with extraordinary med-ical needs, a tradition that the branchhas since kept.

Rasmussen’s first brush withCIM conferences some years agowas a memorable one. When hemoved to Huckleberry Mines aschief metallurgist, his new millsuperintendent surprised himwith the news that he was notonly to attend the Annual Cana-dian Mineral Processors Opera-tors’ Conference (CMP) inOttawa, but also expected to givea presentation. “He made it soundlike he was sending me on a trip,but in reality, he had somethingelse mind,” he recalls, laughing. Itwas the first time Rasmussen everspoke in front of large group andhe ended up relishing the learningexperience. The conference was a

real eye opener as to the benefits ofbeing part of a professional organiza-tion and the industry. “I have alwaysbeen a strong supporter of CIM and itsvalues,” he says. “It provides an essen-tial knowledge-sharing network.”

Whether starting a new branch orrejuvenating a pre-existing one, theprocess is not an easy feat. Rasmussensuggests talking to other localbranches and CIM National, whichwill provide support, contacts, ideasand help in promoting your event. “Itwas only after the branch was rein-stated that I spoke to other localbranches, particularly the CIM SouthCentral BC Branch,” he recalls. “I wishI had done it sooner.”

In 2009, Rasmussen moved to Van-couver and has remained quiteinvolved with his CIM family — he wasField Trip Chair of the CIM Conferenceand Exhibition 2010, regularly attendsCIM Vancouver Branch meetings, andwill pop into the local CIM branchmeetings whenever in the PrinceGeorge and Kamloops areas. “Network-ing and gaining new knowledge andinsights — this is what I retained fromattending that first CMP meeting, and itis what CIM is all about.” CIM

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Rasmussen receiving award at this past year’s CIM Conference &Exhibition from then president of CIM Michael Allan.

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ONE STEP AT A TIMECIM’s IT project nears first milestone

By Andrea Nichiporuk

The first stage of Phase 1 of CIM’s information technology infrastructure overhaul project is nearing completion.“This is a major milestone for us,” says Jean-Marc Demers, CIM’s senior director of business management andstrategic development. “We have completed the designs, are finalizing the analysis and are almost ready to go livewith the association/contact relationship management (CRM) system.” This means that CIM National office staff willnow be able to work directly with the new CRM system, allowing them to manage data and orders more efficiently.

Managing made easyThe new CRM system will enable CIM to better

manage member relationships, member types, duesand interactions between CIM members at all levels.As well, its automated dues billing functionality facili-tates the handling of large quantities of dues renewals— something the old system would have difficultydoing. Some of the other features the CRM systeminclude the ability to: • Gather information such as areas of interest,

professional expertise and job functions• Maintain and use an unlimited number of main

and alternate contact details• Track company/subsidiary relationships• Transmit information to contacts using their

chosen means of communication• Tag members according to membership type• Record member history• Track the membership application process• Bundle other purchases with dues billing• Record changes to member profiles

without difficulty• Process membership dues and renewals• Automate the delivery of notices and group billing• Offer members the option to auto-renew their membership • Support anniversary and calendar-year membership

renewals

In essence, this is a flexible system with the built-in capability to grow alongside CIM.

Engineering a more efficient websiteWith architectural renderings of the new CIM website now

completed, the project has segued into the detailed engineer-ing phase, which is expected to take upwards of 12 to 18months. The figure provides a look at the new, more user-friendly design.

Going forwardIn the coming months, CIM will be set to begin promoting

the new website’s functionalities to its members. It is alsoworking towards being ready to demonstrate some of thesefeatures at next year’s CIM Conference & Exhibition in Mon-treal.

A project of immense proportions such as overhaulingCIM’s information technology infrastructure is a necessarystep towards providing an optimal level of service to its mem-bers and the industry, as well as building a formidable asso-ciation. CIM

STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 Membership Implement CIM website, product Events, Onsite functions multi-language sales and exhibits Technical papers registration

features (abstracts) and registration

CIM – A COMMUNITY FOR LEADING INDUSTRY EXPERTISE

Phase 1

The new look of the CIM website

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UNE ÉTAPE À LA FOISLe projet des TI de l’ICM s’apprête à franchir

une première étape importanteLa première étape de la phase 1 des travaux de restructuration des technologies de l’information de l’ICM est surle point de s’achever. « Il s’agit d’une étape importante pour nous », a déclaré Jean-Marc Demers, directeur prin-cipal, gestion des affaires et développement stratégique de l’ICM. « Nous avons terminé la conception, nous final-isons l’analyse et nous sommes presque prêts à mettre en route le système de gestion de la relationassociation/contact (CRM). » Le personnel du bureau national de l’ICM sera ainsi en mesure de travailler directe-ment avec le nouveau système CRM et pourra gérer les données et les commandes plus efficacement.

La gestion simplifiéeLe nouveau système de gestion de la relation

association/contact (CRM) permettra à l’ICM de mieux gérerses relations avec ses membres, les types d’adhésion, les coti-sations et les interactions entre ses membres à tous lesniveaux. De plus, l’automatisation de la facturation des cotisa-tions facilite le traitement du renouvellement des cotisations engrande quantité, chose que l’ancien système avait de la diffi-culté à faire. Voici quelques-unes des autres fonctions du sys-tème CRM :• obtention de renseignements, comme le domaine d’in-

térêt, l’expertise professionnelle et la fonction profession-nelle;

• conservation et utilisation d’un nombre illimité de coor-données des contacts principaux et suppléants;

• suivi des relations société/filiale;• transmission de l’information aux contacts par les moyens

de leurs choix;• repérage des membres par type d’adhésion;• conservation des antécédents des membres;• suivi du processus d’inscription des membres;• intégration des achats à la facturation des cotisations;• inscription facile des modifications aux profils des mem-

bres;• traitement des cotisations et du renouvellement des adhé-

sions;• automatisation des envois d’avis et de la facturation en

groupe;• option de renouvellement automatique de l’adhésion pour

les membres;• traitement des anniversaires et du renouvellement annuel

des adhésions.

En somme, il s’agit d’un système souple ayant la capacitéde croître avec l’ICM.

La conception d’un site Web plus efficaceLes rendus architecturaux du nouveau site Web de l’ICM

étant terminés, les travaux sont passés à la phase de l’étude

technique détaillée, laquelle devrait prendre de 12 à 18 mois.La pièce jointe donne un aperçu de la nouvelle conceptionplus conviviale.

À venir Au cours des prochains mois, l’ICM sera prêt à com-

mencer la promotion des fonctions de son nouveau site Webauprès de ses membres. Il se prépare également à faire ladémonstration de certaines de ces fonctions au Congrès etSalon commercial de l’ICM de l’an prochain.

Un projet d’une grande envergure comme la restructura-tion des technologies de l’information de l’ICM constitue uneétape qu’il faut nécessairement franchir pour assurer unniveau optimal de service à ses membres et au secteur, ainsique pour bâtir une association exceptionnelle. ICM

ÉTAPE 1 ÉTAPE 2 ÉTAPE 3 ÉTAPE 4 ÉTAPE 5 Fonctions Application des Site Web de l’ICM, Événements, Inscription

des membres fonctions multilingues ventes de produits documents techniques sur le siteet expositions (résumés)

et inscription

ICM — UNE COMMUNAUTÉ POUR UNE EXPERTISE DE PREMIER PLAN

Phase 1

Nouvelle conception du futur site Internet de l’ICM

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November 2010 | 75

Le 28 septembre dernier, devantune quarantaine de personnes à uneconférence de la section Rouyn-Noranda de l’ICM, le docteur JamesFranklin, Éminent conférencier del’ICM est venu tracer les possibilitésafin d’augmenter le taux de succès descampagnes d’exploration minérales.

Un examen des tendances mondi-ales concernant la demande de métauxtels le cuivre, le zinc, l’or, le fer, l’ura-nium, le platine, les terres rares, lemolybdène, le tungstène, le chrome etle nickel démontre que les besoinsseront multipliés dans les prochainesannées. Actuellement les nouvellesdécouvertes ne parviennent tout sim-plement pas à remplacer le matérielminé. Plusieurs facteurs expliquent cefait. Ainsi, même si l’on recycle de plusen plus, une portion des métaux est etsera toujours irrécupérable. De plus, lademande du marché des pays émer-gents croitra de façon exponentielle(sans compter la propre croissance dela demande des nations développées).Au cours des dernières décades, lesdécouvertes de gisements géants(notamment en métaux de base) ontété relativement peu nombreuses. Unedes conséquences est que le simpleremplacement de tels gisements néces-site la découverte d’un nombre impres-sionnant de dépôts de moyenne oupetite taille. Depuis des temps immé-moriaux notre niveau de vie étant lié àl’usage et à la disponibilité desminéraux, la simple conservation duniveau de vie actuel à l’avenir requiertl’amélioration de l’efficacité de noscampagnes d’exploration. Cesdernières devront ainsi être moinscouteuse (en temps et en argentdépensé par tonne trouvée) et cemême si les gisements exploités sontplus profonds. Comment y parvenir?

Plusieurs pistes de solutions ont étésuggérées par le Dr Franklin. Première-ment le concept de développementdurable deviendra inévitable. Nous

Éminente visite à Rouyn-Noranda : un appel à de nouvelles solutionsPar Claude Gagnier

devrons aussi améliorer la récupérationdans les usines de traitement ainsi quela vitesse de remise en états des sitesminiers. Le plus gros de l’effort devracependant venir des géosciences. Lesfutures découvertes nécessiteront uneexploration novatrice. Afin que par-venir à numériser puis informatiser lesbases de données servant à l’explo-ration minérales et définir de nouvellescibles d’exploration, nous devrons :développer des modèles de gisementsmétallifères plus descriptifs; mieuxdétecter les attributs critiques des gîtesen utilisant des critères quantitatifs(numérisables); mieux comprendre lesrelations entre les dépôts et la géologierégionale; mieux utiliser l’informationdisponible.

Pour y parvenir la recherche multi-disciplinaire sera de mise. Les critèresdéfinis comme étant les plus utiles(type de roche, altération, assemblagesminéralogiques) devront être car-tographiés de façon à ce qu’uneanalyse informatique puisse les traiter(une codification est impliquée).

Des sources non-conventionnellesde métaux devront être examinées : ilne faut pas avoir peur de sortir des sen-tiers battus. Par exemple, si nous con-sidérons les nodules de manganèseprésents sur les fonds océaniques : lecontenu en métal est élevé, quels sont

donc les défis technologiques? Si cesderniers étaient insolubles dans lepassé, le sont-ils toujours aujourd’hui?

Comparativement à nos compéti-teurs (notamment l’Australie), leCanada investit relativement peu dansle domaine de la recherche appliquéeaux mines. Notre compétitivité risqued’en payer le coût à long terme. Unerecherche efficace implique un partagedes coûts entre l’industrie et le gou-vernement.

Le réchauffement planétaire et l’ou-verture des voies de navigation dansl’Arctique canadien ouvrent unénorme potentiel pour l’explorationminérale. En effet les coûts de trans-port devraient diminuer, l’explorationsera facilitée et plus économique.

Le Dr Franklin a terminé sa con-férence en nous parlant du CCIM : leconsortium canadien en explorationminérale. Cet organisme de recherche enexploration implique plusieurs grosjoueurs de l’industrie tels Barrick, DeBeers, Vale, Teck, Cameco, Kinross,Goldcorp ainsi que des compagnies ju -nior et des universités. Un de ses objec-tifs est d’identifier les besoins enexploration pour les 5 à 10 prochainesannées.

� Claude Gagnier est président de lasection Rouyn-Noranda de l’ICM.

ICM

James Franklin examine de nouvelles solutions

Page 76: CIM Magazine November 2010

cim news

Upon his arrival in 1997 at Falcon-bridge Ltd. (today Xstrata Process Sup-port) as superintendent of mineralprocessing, Norman O. Lotter wasgiven an open opportunity when itcame to improving the efficiency ofexisting concentrator operations. Fastforward ten years, Lotter and his teamsuccessfully adapted the existing high-confidence flotation testing (HCFT)into a hybrid approach with comple-mentary technologies. This providinga platform to quantify the full potentialof an ore body in a concentrator and tospecify an optimum flowsheet thatwould deliver this potential. As amember of this season’s CIM Distin-guished Lecturers Program, this leaderin process mineralogy guides usthrough the learning process behindthe research of “Modern flowsheetingtechnology.”

CIM: What was your approach to improvingconcentrator efficiency? Lotter: I put together two five-yearplans where one would build upon theother. The first plan (1997-2002) wasaimed at the dimension of time; inother words, building the process min-eralogy team to address performanceimprovements for existing concentra-tors that were in production. The sec-ond step (2002-2007) focused on thedimension of space — looking at theentire ore body from a more predictivepoint of view, using modern process-ing mineralogy. This naturally resultedin working with viable new mine proj-ects, and this is where the much largervalue was realized.

CIM: How did adapting the existing HCFTlead to an improvement in efficiency? Lotter:HCFT originated in South Africain the late eighties and early nineties,and was based on platinum mineralprocessing. The adaptations we made

A cohesive approach to improving metallurgical efficiencyXstrata’s Lotter met challenge head on using process mineralogy

By Robbie Pillo

required establishing different sam-pling requirements and modifyingexisting sample preparation protocols.We embedded this approach into astandard practice. This means startingfrom representative sample material,and then identifying and reducingmeasurement errors in flotation test-ing so that you will have a 95 per centlevel of confidence in the metallurgicalresults that you report.

This approach also ensures propercharacterization of the ore body fromtrue samples in a manner that easilyidentifies the processing implications.In particular, it captures variations inthe ore body and when properly trans-lated into the flowsheet design, mini-mizes the risk that unexpectedresponses will develop in concentratoroperations.

CIM: How do you capture variations in theore body? Lotter: We achieve this by analyzingand testing several drill core samplesfrom a mineral resource. Individualassays of metal grade in the drill corewill provide some idea of bulk oregrade, but it is insufficient for predict-

ing the metallurgical performance ofthe ore resource. By stratifying thesampling of drill core, more accuratesampling equations result and, conse-quently, a more representative sampleof ore resource will be achieved. Theflotation testing of several samples ofdrill core now adds measurements thatquantify that variation. In a new mine,we absolutely prefer to work from drillcore as the sample material.

CIM: Why is working from drill core a betterapproach? Lotter: In taking the conventionalapproach when sinking a pilot shaftdown the middle of the ore body, youare essentially extracting a couple ofhundred tons of ore from that particu-lar point. You have no guarantee thatthe rest of the ore body has similarcharacteristics. But the drill corecomes from holes through the fullspace of the ore, across a grid. Theyexpose the full variation of the ore farbetter than the pilot shaft. Anotherdrawback to the pilot shaft is that it ismore costly and time consuming. Drillcore sampling will save millions ofdollars and at least one year to 18months in the project’s timeline. Drillcore is produced in the normal courseof exploration activities; all we ask isthat the geologists receive additionalfunding and schedule to do a little bitmore drilling — it’s a marginal costcompared to the conventional prac-tice.

CIM: What do you think are the best prac-tices in variability testing? Lotter: The best practice of processmineralogy will first look at drill coretesting and divide it into Geomet Units(ore types). We will then characterizesamples according to these units. Thisis one of the key pieces in modernprocess mineralogy, in that the charac-

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terization of the Geomet Unit is notonly geological and mineralogical, it isalso metallurgical — part of thatdescription derives from flotationtests. Characterization of these unitswill result in very accurate mineralprocessing prediction. This also helpsin identifying problematic ores. Run-of-mine sampling identifies the exis-tence of a metallurgical problem, butcharacterization of the individualGeomet Unit will help you pin downthe culprit.

CIM: You mentioned earlier that the firststep in your plan involved building aprocess mineralogy team. What was inplace before then? Lotter: After a couple of months of visit-ing many of Falconbridge’s operationsand projects in 1997, it was clear to methat there was an opportunity todemonstrate the value of process min-eralogy. Geologists and mineral proces-sors were (traditionally) regarded astwo separate disciplines. In addressingthe specific needs of the projects, thisconvention needed to be changed tobring out the full flowsheeting needs.This was achieved by appointing asmall multi-disciplined team in thetechnology centre at Sudbury.

CIM: How did creating a cohesive teambenefit the operation? Lotter: There was a fair amount of on-the-job cross-training between mineralprocessors and geologists. It’s anapproach that was put together with adeliberate vision. It encouraged repre-sentatives of both groups to work andtalk together and, quite naturally,cross-disciplinary information flowed.People have inquiring minds and wantto make a contribution. This exchangehelped us to ask the right questions —a key step at the beginning of theprocess, leading us to success. Webecame a balanced team; a strong teamwith different skills that workedtogether very easily. CIM

November 2010 | 77

Scholarship winner is mining her optionsBy Marlene Eisner

Samantha Lickers’ interest in min-ing engineering came alive in2007 at the Mohawk College inHamilton, Ontario, when she tooka certification program in pre-trade and pre-technology. The 25-year-old former Buffalo, NewYork, resident moved to Canadafive years ago to be closer to herfamily in Six Nations and said thatthe one-year course at the collegeopened her eyes to the world ofmining.

“It was a general introductionto different courses, such as construction, automotive class, welding, com-puter classes and AutoCAD; a little bit of everything,” Lickers says. “I knewthat was the direction I wanted to go into but I wasn’t sure where, and havingthe background from that program helped me decide to go into engineering.”

Lickers is this year’s winner of the $1,000 Taking Flight Scholarship. Inher scholarship application letter, Lickers described the many areas of min-ing that attracted her interest, from exploration and travel opportunities, tohealth and safety and working in an environmentally responsible manner.She even considered becoming a mining safety officer.

In June, she graduated from Cambrian College’s two-year mining engi-neering technology program and decided to continue her studies. She is nowenrolled in the two-year civil engineering program at Laurentian Universityin Sudbury, Ontario, and says the scholarship money will come in handy tohelp pay for books and rent so that she can focus on her school work.

“I still have an interest in mining engineering, but I want to keep myoptions open for now,” she explains. “I’ve changed my mind on how to goabout it. I wanted to go to work but then decided to continue on to school.”

In two years, she will decide which direction to take; she will either applyto the two-year mining engineering program at Laurentian or go elsewhereto continue in civil engineering.

“What I like about mining is that you’re getting resources needed to sus-tain life,” Lickers says. “There are so many things that mining is used for; itgoes into everything that affects everyday life.” CIM

Watch for a listing of

CIM scholarshipsand bursaries

in the next issue of CIM Magazine

Page 78: CIM Magazine November 2010

Mining rocks for Anne BelangerBy Marlene Eisner

Not many people get to han-dle a gun or be up close to fieryfresh lava, but at 21, this year’swinner of the $2,000 Scotiabankand Scotia Capital MarketsScholarship has done all thatand more.

Anne Belanger, who is in herfourth year studying earth sci-ences at Dalhousie University inHalifax, recently had a uniqueexperience. “In Hawaii, one ofthe highlights was we got to seeand poke flowing lava. I think

it’s a geologist’s dream to do that; our group got lucky,” says Belanger about a12-day field school trip she attended in early September. “You have to hold thehammer in one hand and guard your face with the other. You could only staythere for 15 seconds at the most due to the radiating heat.”

In September 2008, after completing a Dalhousie Earth Sciences FieldSchool, Belanger realized she wanted geology to be a part of her life. It was therethat she came to appreciate rocks and rock formations. In the summer of 2009,while working in Iqaluit, Nunavut, with the Canada-Nunavut GeoscienceOffice, she became enraptured with the beauty and adventure of the North.

“It was my first time on Baffin Island and just the scenery and the topographyof the area, as well as being transported by helicopter, was unreal to me at thetime,” Belanger says. “There were a lot of fjords and amazing scenery that mostpeople don’t get to see; it was an exhilarating experience for me.”

It was then she discovered the line of work that she wished to pursue. “Thefield work I did exposed me to exploration and economic geology in general,”explains Belanger. “The basis of mining is that you’re doing geology to gainmoney for the economy. I find a genuine interest in it, in all the environmentalprocesses and metamorphic reactions involved in creating the rocks that we seeevery day. There’s a lot that goes into it and it’s interesting to find out how it allworks together.”

During her field study this past summer with the Geological Survey ofCanada on the Melville Peninsula in Nunavut, Belanger was a junior geologist.She lived in tents at the Barrow River camp with about 20 other geologists andstudents. Each day, she and a partner would be picked up by helicopter anddropped off at a designated spot. Armed with an air photo, a GPS, a hand-heldcomputer and a shotgun, they walked the path, recording the rocks, the miner-als in the rocks and interesting structures.

“It’s mandatory to work up North and have a gun license,” she explains.“There were polar bears at the end of the summer, and they go on land, so youtake a shotgun.”

Belanger says she would like to take a year off to gain experience working inthe mining industry and to travel after she finishes school, but then plans to goback for her master’s in 2012. In the long term, her goal is to work in explo-ration geology and academia.

“Ideally, I’ll probably get a PhD and have it tie in with industry, so I can doresearch about economic geology,” she adds. “It’s a lot about finding out howdeposits are formed, so if there is a gold deposit, I would be responsible for findingout how it was formed and then a company can look for similarities and find dif-ferent deposits.” CIM

scholarship winner

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Abdelgawad, Borhan, QuebecAdamcryck, Mark, OntarioAdelman, Jessica, QuebecAgopian, Jack, British ColumbiaAlberda, Philip, AlbertaAllum, Ronald, British ColumbiaAl-Mangour, Bandar, QuebecAmir Farzadfar, Seyed, QuebecArmstrong, Danielle, British Columbia

Arnaly, Joshua J., British ColumbiaAskari, Forogh, OntarioBains, Sarbjyot, Newfoundland and Labrador

Baker, Randal, USABeaudoin, Raphael, QuebecBekkering, Janpeter, USABeland, Stephane F., British Columbia

Bell Laxer, Corey, QuebecBergeron, Paul G., Nova ScotiaBertrand, April, Nova ScotiaBhatnager, Mohit, British Columbia

Blacklock, Scott, SaskatchewanBlais, Jason, British ColumbiaBlais, Adrien, SaskatchewanBlezy, Kevin, SaskatchewanBorkar, Hemant, QuebecBoschma, Adrielle, British Columbia

Bosman, Wayde, British ColumbiaBowles, Terence F., QuebecBridge, Nathan, OntarioBrisson, Stephanie, QuebecBrouk, Dagmar, AustraliaBurke, Jeffrey, Nova ScotiaCampos Alvarez, Nelson, OntarioChakraborty, Abhishek, QuebecChan, Jessie WH, British Columbia

Chattopadhyay, Kinnor, QuebecChau, Jennifer, British ColumbiaChen, Dan, QuebecCheung, Yuk-Ming, ChinaChristakos, Jennifer, OntarioChristman, Paul, OntarioChristmas, Sarah, New BrunswickChu, Haley, British ColumbiaChu, Evan, British ColumbiaChun Ng, Siu, British ColumbiaClark, Lawrence, USAConstan, Eric, QuebecCorbett, Colin, Nova ScotiaCross, Brad, SaskatchewanD’Angelo, Francesco, QuebecDavaanyam, Zorigtkhuu, British Columbia

Davidson, John C., AlbertaDavis, Sarah, British ColumbiaDesjarlais, John, Saskatchewan

Desmeules-Roy, Olivier, QuebecDhadda, Rimmy, OntarioDiCecco, Sante, OntarioDixon, Arlene, OntarioDrianov, Petar, QuebecDugalic, Matt, OntarioEdrisy, Afsaneh, OntarioEduardo Martinez, Jose, British Columbia

Eun Lee, Choong, British Columbia

Fawcett, David A., British Columbia

Fitzsimonds, James, AlbertaFord, Joshua, Nova ScotiaFoster, Kyle, British ColumbiaFoster, Kristin, OntarioFraser, Grather (Duke), Nova Scotia

Frey, Alex, British ColumbiaFry, Clayton, New BrunswickFulcher, Michael, OntarioGagnon, Philip, Nova ScotiaGalbraith, Taylor, SaskatchewanGarcia-Vasquez, Magaly, British Columbia

Gayle, Richard, OntarioGervais Robert, Laurent, QuebecGill, Jaspreet, QuebecGluck, Thomas, British ColumbiaGraham, Matthew A., British Columbia

Gray, Dianne, British ColumbiaGrey, Karen, New BrunswickGriiffiths, Jillian, Nova ScotiaHassan, Karim, AlbertaHewitt, Kelsey, SaskatchewanHill, Maureen, OntarioHoladay, Brendan, SaskatchewanHood, Shawn, British ColumbiaHoward, Tyler, SaskatchewanHowlett, Brian, OntarioIbrahim, Hanaae, OntarioIlcas Kaluw, Ilamba, South AfricaIp, Stephen, British ColumbiaIrbaz Shah, Syed, QuebecIslam, Aminul, Nova ScotiaJeBailey, Elias, Nova ScotiaJung, Christin, British ColumbiaKao, Jason, British ColumbiaKearns, Andrew, OntarioKelly, Eric, USAKennedy, Chris, OntarioKhattar, Elias, Nova ScotiaKin Tang, Cheuk, QuebecKonkin, Stephen, British Columbia

Laliberty, Mike, OntarioLam, Jerome, British ColumbiaLee, Dale, AlbertaLentz, Carlin, New Brunswick

Leung, Andrea, AlbertaLeung, Jonathan L., British Columbia

Levesque, Jason, New BrunswickLewis, Mark, SaskatchewanL’Heureux, Simon, QuebecLi, Canran, British ColumbiaLi, Zhen, British ColumbiaLiu, Chen, British ColumbiaLoo, Jetzen E., British ColumbiaLopez, Leonel, USAMacDonald, Michael, Nova ScotiaMacInnis, Linette, Nova ScotiaMacPherson, Kim, British Columbia

Magaisa, Dominic, AlbertaMain, Anson, OntarioMalard, Nicolas, QuebecManacsa, Pierro, ManitobaManavalan, Sathyanarayanan,Newfoundland and Labrador

Mangi, Mansoor, PakistanMcColl, Darryl, British ColumbiaMcLaughlin, Kathryn, OntarioMcLean, Gordon Ernest, Nova Scotia

Mercier, Louis, OntarioMillis, Dean, SaskatchewanMiranda Sanchez, Esther Milagros, Manitoba

Moore, Meghan, ManitobaMorales Higa, Ken, QuebecMorden, Robert, OntarioMorrison, Ian, British ColumbiaMullard, Zoe, British ColumbiaMullen, Daniel, British ColumbiaNadeau, Marie-Michèle, QuebecNash, Gregory, British ColumbiaNashaat, Marc, OntarioNeufeld, Chad, British ColumbiaNguyen, Travis, British ColumbiaNizami, Rabi, OntarioO’Sullivan, Michael John, QuebecPalkovits, Frank, OntarioPatsa, Lena, British ColumbiaPersaud, Daniel, OntarioPeterson, Kenton, SaskatchewanPharasi, Sid, OntarioPittman, Darren, Newfoundland and Labrador

Poirer, Francis Ritchie, QuebecPrimak, Jason, QuebecProulx, Donald, QuebecQuan, Jia, British ColumbiaRace, Thomas, New BrunswickRahardjo, Anthony H., British Columbia

Ramyead, Yovan, British ColumbiaRattanpal, Ramneek S., British Columbia

Rempel, Stephen, British Columbia

Richards, Michael, New BrunswickRiopel, Michel, OntarioRitchie, Erika, SaskatchewanRoberto Oliva, Edgar, QuebecRohead-O’Brien, Hayley, New Brunswick

Saldana, Felipe, British ColumbiaSalehipour, Rouzbeh, British Columbia

Sarmiento, Diana, AlbertaSarwar, Sarmand, PakistanSehasothy, Jeyen, OntarioSekhon, Chan S., British ColumbiaSergy, Sheila, Yukon TerritoriesShahirnia, Meisam, Nova ScotiaSherman, Jeffrey, OntarioShi, Lei, British ColumbiaShteyner, Oleg, OntarioSibley, Tyler, AustraliaSmith, Alex, New BrunswickSmith, Sandra, OntarioSoomro, Farooq, PakistanSpeta, Michelle, AlbertaStamenov, Toma, British ColumbiaStrahl, Bryan, British ColumbiaSutherland-Dean, Jessica, OntarioSweet, Greg, Nova ScotiaTang, Kaijun, ManitobaTao, Hai Yuan, British ColumbiaThatcher, Peter, British ColumbiaThiessen, Eric, OntarioToro Taylor, Juan Carlos, ChileTran, Tony L., British ColumbiaTripathi, Nagendra, OntarioUnderhay, Sara Lise, OntarioVan de Wille, Philip, QuebecVan de Wille, Mathieu, QuebecWalker, Stephen, OntarioWallace, Vanessa, Nova ScotiaWatters, Mike, OntarioWeatherwax, Erin, British Columbia

Weins, Kurtis, British ColumbiaWillett, James, SaskatchewanWilliams, Daniel, Nova ScotiaWilliams, Troy, OntarioWilson, Ryan, SaskatchewanWitow, Darryl, OntarioWolf, Anton, OntarioZhuang, Quan, QuebecZimmer, Myles, SaskatchewanZou, Yu, Quebec

Corporate membersAdrok Ltd., United KingdomBateman Technologies Corp., Alberta

CK Logistics, Quebec

CIM welcomes new members

Page 80: CIM Magazine November 2010

cim news

80 | CIM Magazine | Vol. 5, No. 7

Joint luncheon on food securityBy Rick Hutson

On September 16, the CIM TorontoBranch and the CIM Management & Eco-nomics Society held their annual jointluncheon featuring David Davidson, partnerand senior analyst at Paradigm Capital, whogave an engaging presentation on “Potash —Why all the Drama?” to over 100 industrymembers and interested parties.

Although potash has generally beenunder the investment radar, according toDavidson, there are compelling reasons forbelieving that potash demand will grow andconsequently secure Canada’s position as aleading producer. Not only does Canadahave approximately half of the world’sknown potash reserves, PotashCorp is theworld’s largest producer of potash at 10 mil-lion tonnes per year and is projected to growto 16 million tonnes by 2015.

As Davidson noted, the world populationis projected to top eight billion by 2020,with China and India leading the way. Mostof this growth will be concentrated in urbanareas and with economic growth, increasingdisposable incomes, increasing food con-sumption and little arable land to add, pres-sure is mounting on food producers to meetthe growing demand.

Because potash fertilizer is the singlebiggest influence in raising crop yields, itsdemand is growing as a result. About 80 percent of the world’s potash production is con-sumed by countries with little or no potashreserves. Therefore, demand for potash isexpected to continue to grow with a positiveimpact on the holder of approximately 50per cent of the world’s potash reserves(Canada) and the world’s largest potash pro-ducer (PotashCorp).

In recognition of his taking the time tospeak to the group, the CIM Toronto Branchwill be making a donation to the PDAC Min-ing Matters program and presented Davidsonwith a plaque noting the donation.

A copy of Davidson’s talk is available onthe CIM Toronto website at www.cim-toronto.org.

� Rick Hutson is chair of the CIM Toronto Branch.

CIM

ObituariesGiorgio Massobrio: 1927–2010A leader with an “iron fist and velvet glove”

By Steve Stecyk

Born in Genoa, Italy, a city renowned for itsRenaissance culture, Giorgio Massobrio played acentral role in the modern rebirth of the steelmakingindustry both in Italy and Quebec.

He graduated magna cum laude in electricalengineering from the University of Genoa in 1951 andshortly thereafter began his career at ITALSIDER steelcompany. He took part in the Marshall Plan, themassive U.S.-directed European reconstructioninitiative following World War II, training at ARMCOSteel Corp in the United States, and helped in therebuilding of the Italian Steel industry. Massobrio

eventually rose through the ranks and was appointed executive vice-president ofITALSIDER in 1971 and was elected to its board of directors. In 1974, he wasappointed Commendatore della Repubblica Italiana, a distinguished honourbestowed upon him for his role in the reconstruction of the Italian Steel industry.

Massobrio brought his talents and fortitude to Canada in 1977, where heaccepted a position at United States Steel Corp. He later went on to become thepresident and CEO of its subsidiary, Québec Cartier Mining, from 1980 to 1992,and was chairman of the board until 1994.

In 1989, CIM awarded him with the prestigious INCO Medal for his contribution tothe restructuring of the iron ore industry in Quebec. He was later electedpresident of CIM in 1995–1996 and was credited for steering CIM back onto asolid financial path. Don Worth, incoming CIM president at the time, thanked himfor successfully applying his senior executive talents to the challenge of balancingthe Institute’s books. “We needed his iron fist and velvet glove,” said Worth.

Massobrio continued to apply his expertise as the general chairman of the CIMCentennial Conference Organizing Committee in 1998. In recognition of hiscontribution as past president and hard work toward the centennial celebrations,he was awarded the CIM Distinguished Service Medal in 2000. He also servedas the director of the Mining Association of Canada and as a board member of LeConseil du Patronat de Montréal.

Massobrio was also the author of many technical papers on open hearth andbasic oxygen steelmaking, as well as the use of computers for production controland management information systems. Throughout his life, Massobrio met manychallenges, which he faced head on and with success and dignity. He passedaway on September 4, 2010.

Steve Brosseau, a member of CIM since 1996, died on September 24, 2010.

Kenneth E. Daniel joined CIM in 1958 and achieved Life Member status in 1994.He passed away on July 14, 2010.

Nicholas Robb became a member of CIM in 1962 and a Life Member in 1995.He died on July 4, 2010.

Page 81: CIM Magazine November 2010

Field trip attendees enjoy afternoon at Turcker’s Knob

Rounding up exploration in Red Lake By Carmen Storey

The CIM Red Lake Branch Exploration Roundup 2010 was held this past June atthe Cochenour Hall in Red Lake, Ontario. Over 40 participants attended themorning session presentations, which focused on exploration in the Red Lakecamp. Kicking off the session, Andreas Lichtblau and Carmen Storey of the RedLake Resident Geologist Office gave an overview of local exploration activities ofthe previous year. Other speakers included Ian Russell of Rubicon Minerals andJim Rogers of Mega Precious Metals who presented in-depth updates on theirrespective companies’ projects. Over 20 people were treated to an afternoon fieldtrip, led by Goldcorp’s chief geologist Dean Crick, to Tucker’s Knob — a newstripped outcrop area — courtesy of Goldcorp Inc.’s Red Lake Mines.

� Carmen Storey is a director of the CIM Red Lake Branch.

CIM

Way to go team!This past August, the CIM National Office “CIM – Cure in Motion” team trekked throughthe streets of Montreal and surrounding areas to raise close to $14,000 for the PharmaprixWeekend to End Women’s Cancers. The Montreal walk raised $5.1 million that will benefitthe Montreal Jewish General Hospital Segal Cancer Centre.

From left to right: Robertina Pillo, Lise Bujold, Jean Vavrek, Joan Tomiuk, Teresa Barrett and Anne Brosseau.

Page 82: CIM Magazine November 2010

www.cm

psoc.ca �

General Information | Renseignements générauxThis year’s conference, taking place in the Confederation Ballrooms at the Westin Hotel, willfeature presentations on various aspects of mineral processing including: plant design and plantimprovements, operations, new ideas and technologies, precious metals, laboratory and pilotplant testing.

La conférence se tiendra à Ottawa, à l'Hôtel Westin, Salle de bal Confédération et comprendrades présentations traitant de divers aspects minéralurgiques tels que les opérations minières,l’optimisation des usines de traitement, la flottation, les technologies avancées, le traitementde l’or et la comminution.

Registration | InscriptionPre-registered delegates can pick up their registration kits at the conference registration desklocated on the 4th Floor of the Westin Hotel on Monday between 19:00 and 22:00 and Tues-day to Thursday between 7:00 and 15:00. New registrations will be also taken during thesetimes.

The pre-registration fees (tax included) are• $450 – CIM/AIME/TMS members• $100 – CIM member retirees (60+)• $600 – Non-members (includes a one-year membership to CIM)

Registration includes access to the conference, coffee breaks, Tuesday’s luncheon, Tuesdayevening’s social reception, Wednesday evening’s reception/dinner, and conference proceed-ings.

Note: To pre-register, the registration form must be received by December 31, 2010. Conference registra-tion and attendance at social events should be indicated on the form or upon registration online atwww.cmpsoc.ca. Requests for refunds must be made in writing prior to December 31, 2010. After thatdate, an administration fee of $100 will be charged for new and/or cancelled registrations.

Tous les délégués inscrits à l’avance pourront recevoir leur trousse d’inscription en se pré-sentant au bureau d’inscription, 4e étage de l’Hôtel Westin, le lundi soir entre 19h et 22h etdu mardi au jeudi de 7h à 15h. Les autres délégués qui désirent participer à la conférencepourront également s’inscrire à cet endroit, aux mêmes heures.

Les frais de pré-inscription (taxe incluse) sont de : • 450 $ pour les membres de l’ICM, TMS et AIME• 100 $ pour les membres de l’ICM retraités (60+) • 600 $ pour les autres participants (inclus un abonnement d’un an à l’ICM)

Ces frais donnent droit : aux conférences, aux pauses-café, au dîner le mardi, à la réceptionsociale le mardi en soirée, à la réception/souper le mercredi et à une copie des comptes rendus.

N.B. : Les formulaires de pré-inscription doivent être reçus avant le 31 décembre 2010. Veuillez vous ins-crire à la conférence et aux activités sociales en remplissant un formulaire d’inscription ou encore enligne au www.cmpsoc.ca. Les demandes de remboursement doivent être faites par écrit avant le 31décembre 2010. Après cette date, des frais de 100 $ s’appliqueront aux nouvelles inscriptions ainsiqu’aux inscriptions annulées.

Page 83: CIM Magazine November 2010

November 2010 | 83

On behalf of the executive committee, I am delighted to extendan invitation to you to attend the 43rd Annual CanadianMineral Processors Operators’ (CMP) Conference. Mineralprocessors add value by improving metallurgical performance,

reducing costs and increasing margins from mined ore. Over the years,they have demonstrated leadership in continuously improving thetechnology and tools they use and the processes they manage.Challenging metallurgy, environmental issues and operating conditionsboth domestically and abroad continue to test the limits of mineralprocessing ingenuity.

At the Canadian Mineral Processors Operators’ Conference, delegates willlearn how their colleagues are improving the efficiency of their plants andmills, and how others solve sometimes complex and difficult problems.For over 40 years, the conference has provided a forum forcommunicating best practices in our industry and facilitated networkingwith colleagues, suppliers and researchers.

This year’s Technical Program promises to continue that tradition withtopics ranging from operations and plant optimization to advancedtechnologies, gold processing and comminution. The mineral processingbest practice guideline for evaluation of mineral deposits will also bepresented for discussion in a special session during the technicalprogram. The Student Mixer, a not-to-be-missed event, provides anopportunity for tomorrow’s leaders to meet some of industry’s finest.

Amidst all of the networking and knowledge sharing lives a fierce rivalrythat, by Canadian standards, can only be settled one way — on the ice.Once again this year, the East and West teams will battle for the RayMcDonald Trophy. Make sure you are there to cheer on your favouriteteam.

Personally, the CMP conference remains integral for professional andtechnical development, along with being a fun time to catch up with peersin the industry. I trust you agree and look forward to seeing you in Ottawathis coming January.

Dominic FragomeniConference chairman

Au nom du comité organisateur, il me fait grand plaisir de vousinviter à participer à la 43e Conférence annuelle desminéralurgistes du Canada. Les minéralurgistes ajoutent de lavaleur en améliorant le rendement métallurgique, en réduisant

les coûts et en augmentant les profits des minerais extraits. Au fil desannées, ils ont démontré un leadership dans l’amélioration constante destechnologies et des outils qu’ils utilisent et des procédés qu’ils gèrent. Desenjeux métallurgiques, des environnements et des conditions de travaildifficiles, au pays et à l’étranger, mettent continuellement à l’épreuve leslimites de l’ingéniosité en traitement des minerais.

Lors de la Conférence des minéralurgistes, les délégués apprendrontcomment leurs collègues améliorent l’efficacité de leurs usines et commentd’autres règlent des problèmes parfois complexes et difficiles. Depuis plus de40 ans, cette conférence a été le forum pour communiquer les meilleurespratiques de notre industrie et elle a encouragé l’établissement de réseauxavec des collègues, des fournisseurs et des chercheurs.

Le programme technique de cette année promet de continuer cettetradition avec des sujets couvrant les opérations et l’optimisation desusines et les technologies avancées jusqu’au traitement de l’or et à lacomminution. La Rencontre avec les étudiants, une activitéincontournable, fournira aux chefs de demain l’occasion de rencontrerl’élite actuelle de l’industrie.

Parmi tout le réseautage et le partage de connaissances, il existe unesérieuse rivalité, qui, selon les normes canadiennes, ne peut être régléeque d’une seule manière, sur la glace. Encore une fois cette année, leséquipes de l’Est et de l’Ouest du pays joueront pour l’obtention du TrophéeRay McDonald. Soyez présents pour encourager votre équipe préférée.

Sur une note plus personnelle, je considère que la Conférence desminéralurgistes constitue une partie intégrale du développementprofessionnel et technique, en plus d’être une occasion plaisante derenouer avec des collègues de l’industrie. Je suis certain que vous serezd’accord avec moi. Il me fera grand plaisir de vous voir à Ottawa enjanvier prochain.

Dominic FragomeniPrésident de la Conférence

Short Course | Cours abrégéA short course on “Sampling in the mineral processing discipline — a practical primer” will beheld Monday, January 17. The $300 fee includes meals and course material. Attendance is lim-ited, so please register early.

Un cours abrégé portant sur “Sampling in the mineral processing discipline — a practicalprimer” sera donné le lundi 17 janvier. Le coût, pour assister à ce cours, incluant le matérielet les repas est de 300 $. Les places disponibles étant limitées, veuillez vous inscrire le plustôt possible.

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Page 84: CIM Magazine November 2010

Provisional Technical Program |Programme technique provisoire

TUESDAY

8:15 Opening remarksDominic Fragomeni (CMP2011 conference chair)

Operations 8:30 PLENARY: Better flowsheeting with modern processmineralogyN.O. Lotter (CIM Distinguished Lecturer)

9:10 Flotation flowsheet development at Teck HighlandValley CopperJ. R. Hernandez-Aguilar and J. Basi

9:35 Agnico-Eagle LaRonde plant: metallurgical challenges present and futureP. Blatter, J. Cayouette and P. Cousin

10:00 Coffee Break10:30 Uranium milling in Northern Saskatchewan’s

Athabasca Basin: past, present and futureC. Edwards

10:55 Case study of thickened tailings at Goldcorp’s Musselwhite Mine in Northern OntarioS. Longo, J. Girard and S. Kam

11:20 Operating practices at Peñoles Concentrators – MexicoR. Espinosa

11:45 Modelling of the dry magnetic separation process at Rio Tinto Fer et Titane C. Bertrand, C. Bazin and P. Nadeau

12:10 Beer & Sandwich Lunch

Plantoptimization 13:30 Optimizing Plant 2 at Kinross Paracatu, the world’s

largest tonnage lowest grade primary gold millingoperation G. Junior, W. Philips, R. Thorpe, C. Martin, R. Henderson and K. Ford

13:55 Updating the Lucky Friday mill — experiences in revamping a historic milling operationR. Mondragon, D. Dean, C. Aguilar, B. Hancock and C. Martin

14:20 Formulation and plant trial of a mixed collector suite for eland platinumN. O. Lotter, R. Monnapula, J. Oliveira, D. Fragomeni and D. J. Bradshaw

14:45 Coffee Break15:15 Contaminant problems in Agrium’s Canadian

phosphate businessJ.-F. Boulanger, J. Culverhouse, D. Grimm and K. Harding

15:40 Gold recovery improvements at Fort Knox Gold Mine mill, AlaskaB. Musgrove, J. Oleson, H. Propsom, K. Ford and R. Henderson

16:05 Improving fluorine-bearing minerals rejection in the flotation development of a Brazilian sulphide copper ore A. Tavares, D. Couto and K. Gonçalves

84 | CIM Magazine | Vol. 5, No. 7

Authors | AuteursAuthors, session chairs and regional representatives must register as confer-ence delegates. A speakers’ breakfast will be provided on the day of thepresentation at 7:00 to be held, tentatively, in the Alberta Room. Authors areto contact John Chaulk (613.947.0394, [email protected]) for presen-tation information.

Tous les auteurs, les présidents de sessions et les représentants régionauxdoivent s’inscrire comme délégués à la conférence. Un déjeuner sera servi lejour de leur présentation à 7h dans le Salon Alberta (à confirmer). Auteurs,veuillez contacter John Chaulk (613.947.0394, [email protected])pour obtenir de l’information au sujet des présentations.

Accommodations | HébergementA special rate of $186 (single/double) and $226 (deluxe) has been negotiatedfor a block of rooms at the Westin Hotel. The hotel will only guarantee theserooms until January 3, 2011 — book you room early to avoid disappoint-ment. Book directly with the Westin Hotel at T: 613.560.7000 or F: 613.560.2707 (reference the Canadian Mineral Processors Operators’ Conference) or online through the link on the CMP website.

Un nombre limité de chambres a été négocié avec l’Hôtel Westin à un tarifspécial de 186 $ en occupation simple/double et 226 $ pour une chambre deluxe. Veuillez noter que les chambres sont retenues à votre intention jusqu’au3 janvier 2011 — réserver votre chambre le plutôt possible afin d’éviter desinconvénients. Les réservations peuvent être faites en communiquant directe-ment avec l’Hôtel Westin (tél. : 613.560.7000 ou téléc. : 613.560.2707). Sivous réservez par téléphone, prière d’indiquer que vous participez à la Confé-rence des minéralurgistes du Canada. Vous pouvez également réserver votrechambre en ligne à partir de notre site internet.

Companion Program | Programme d’accompagnementThe Companion’s Program this year includes:• Visit to the newly renovated Canadian Museum of Nature• Coffee & Tea Social• Lunch and a show at the National Arts Centre• Wine and Food Tasting event

Note that the $50 fee to participate in the program does not include a ticket tothe Wednesday Reception and Awards Dinner.

Cette année, le programme d’accompagnement offrira : une visite au MuséeCanadien de la Nature tout nouvellement rénové, une réception sociale (thé etcafé), un dîner-spectacle au Centre National des Arts ainsi qu’une dégusta-tion de vins et divers aliments. Le coût de ce programme est de 50 $ sanstoutefois inclure le billet du souper de la réception et remise de prix qui auralieu le mercredi soir.

Page 85: CIM Magazine November 2010

Social Program | Programme socialeAll activities take place at the Westin Hotel, unless otherwise indicated.

Tous les activités se déroulent à l’Hôtel Westin, sauf si indiqué autrement.

Monday | Lundi19:00–22:00 Early conference registration [4th Floor]

Inscription anticipée à la conférence [4e étage]20:00–23:00 Student Mixer [Quebec Room, 4th Floor]

Soirée-rencontre des étudiants [Salle Quebec, 4e étage]

Tuesday | Mardi7:00–8:15 Authors’ Breakfast [Alberta Room]

Petit déjeuner des auteurs [Salle Alberta] 7:00–15:15 Registration [4th Floor]

Inscription [4e étage]12:10 Beer & Sandwich Social [4th Floor]

Activité sociale avec bière et sandwichs [4e étage]19:00 Hockey Cup Challenge [Carleton University]

Partie de hockey [Université Carleton]21:00 Chairman’s Reception [Governor General’s Ballroom]

Réception du président [Sal de bal Gouverneur Général]

Wednesday | Mercredi7:00–8:15 Authors’ Breakfast [Alberta Room]

Petit déjeuner des auteurs [Salle Alberta] 7:30–15:15 Registration [4th Floor]

Inscription [4e étage]11:30 Annual Business Meeting (all welcome)

[Confederation Ballroom]Séance administrative annuelle (ouverte à tous) [Sal de bal Confédération]

18:00 Executive Reception [Colonel Bay Suite]Réception de la haute direction [Suite Colonel Bay]

18:30 Reception [4th Floor]Réception [4e étage]

19:30 Annual Banquet [Confederation Ballroom]Banquet annuel [Sal de bal Confédération]

Thursday | Jeudi7:00–8:15 Authors’ Breakfast [Alberta Room]

Petit déjeuner des auteurs [Salle Alberta] 8:00–15:15 Registration [4th Floor]

Inscription [4e étage]

WEDNESDAY

Flotation 8:30 On the role of bubble size in column flotationJ. R. Hernandez-Aguilar

8:55 A review of flotation columns application in roughercircuitsM. Massinaei, M. Oliazadeh, S. Zeidabadi andM. R. Yarahmadi

9:20 A protocol for conducting plant trials testinggrinding media to determine recoveryimprovements: The Ernest Henry Mine plant trialC. J. Greet, J. Twomey and A. Chung

9:45 Coffee Break10:15 Evaluation of environmentally friendly collectors for

xanthate replacement J. Dong and M. Xu

10:40 Development of AERO® MX3048 Promoter forMMG’s Sepon Concentrator, South Central Laos P. Riccio and T. Moore

11:05 Millerite and its impact on Cu/Ni separationM. Xu, F. Ford and V. Lawson

11:30 Annual Business Meeting

Advanced 13:30 A new ERA tool for state-of-the-art metallurgicalTechnologies balance calculations

L. Lachance and F. Flament13:55 Control system performance assessment –

best practicesM. Ruel

14:20 Galvanic interaction and particle size effects in self-heating of sulphide mixturesR. Payant, F. Rosenblum, J. E. Nesset and J. A. Finch

14:45 Coffee Break15:15 Quantitative characterization of the REE minerals by

QEMScan from the Nechalacho heavy rare earthdeposit, Thor Lake Project, NWT, CanadaT. Grammatikopoulos, W. Mercer, C. Gunning and S.Prout

15:40 Process mineralogy of Sudbury platinum groupminerals as determined by mineral liberation analyzerF. D. Ford, C. R. Wercholaz, A. W. Lee and M. Xu

Special 15:55 NI-43-101: Best practices in mineral processing T. Lipiec

THURSDAY

8:35 TBD

Gold Ore 9:00 Beneficiation of concentrated ultrafine suspensionswith a Falcon UF concentratorJ. S. Kroll-Rabotin, F. Bourgeois and É. Climent

9:25 Improving the gold gravity performance: aninvestigation into the laboratory and plant gravityrecoveriesS. Koppalkar, A. Bouajila, C. Gagnon, S. Makni and G. Noel

9:50 Coffee Break10:15 The use of diagnostic testwork and CIP/CIL

modeling to improve the metallurgical performanceat two IAMGOLD operationsC. A. Fleming, M. Ourriban and P. Pelletier

10:40 Application of CELP for leaching gold and silverfrom high grades ores: case studiesG. Deschênes and M. Fulton

11:05 Estimation errors for gold inventory in large carbon-in-leach tanksG. Blanchette, C. Bazin and P. Blatter

11:30 New method for speciation of free cyanide alongwith Zn & Ni cyanide complexes from industrial goldleachingE. G. Langeroudi, É. Proulx, C. F. Petre, A. Azizi, C. Olsen, C. Gagnon, P. Blatter and F. Larachi

11:30 Lunch

Comminution 13:30 Sophisticated ring geared mill drives: features andexperiencesM. Ruffi and M. van de Vijfeijken

13:55 Pump and cyclone design/optimization to maximizegrinding circuit efficiency: a systematic methodR. McIvor

14:20 Grinding: Why so many tests?A. Doll and D. Barratt

14:45 Coffee Break15:15 Measuring parameters for SAG mill design and

optimisation: a comparison of the JK drop weightversus shortcut methodsS. Stark, S. Bajic, T. Dam and C. Bailey

15:40 Determining ore breakage characteristics using thesteel wheel abrasion testT. Chenje, P. Radziszewski and V. Olivas

16:05 Effect of grinding operation on product morphologyin stirred millsR. Roufail, B. Klein and R. Blaskovich

16:30 Conference Adjourns

November 2010 | 85

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H I S TO R I C A L

metallurgy

The Industrial Revolution began in the eighteenth cen-tury in the United Kingdom following a number of innova-tions in three major sectors — textiles, steam power andiron founding. In the case of the latter two, the steam enginewent from being used to pump out mines to attaining wide-spread use in power machines in the 1780s, and cokereplaced charcoal in the smelting of iron, which resulted inan increase in the production of pig iron for use in machin-ery and construction. A large quantity of fuel was needed topower a steam engine. Forests were shrinking at a quickpace; therefore, attention turned from wood to coal as apotential fuel source. The use of the newly invented safetylamp in the mines meant that coal mining was now rela-tively “safe.” What ensued was a shift from a wood-burningto a coal-burning economy.

The miner’s lamp played an important role during thisperiod. Coal mining was dangerous, due to the presence ofmethane in many coal seams. Miners going undergroundwith an oil lamp or torch ran the risk of igniting the methaneand causing an explosion. However, a certain degree of safetywas provided by the safety lamp, which was invented in 1816by Sir Humphry Davy (1778-1829) and independently byGeorge Stephenson (1781-1848). The lamp consisted of aflame surrounded by a cylinder of metallic gauze, whichallowed oxygen to penetrate through and feed the flame. Theheat of the flame was dissipated by the metal and as such,prevented explosive gases outside the lamp from igniting.

The lamp was immortalized by numerous artists. It wasdepicted in memorial statues and by at least two large mon-uments — one in the United Kingdom and the other inGermany. The British monument, constructed in 1998 byJim Roberts, a 1992 graduate of Sunderland University, islocated outside the Stadium of Light in the one-time coalmining district of Tyne & Wear in Sunderland. It serves as areminder of the former Monkwearmouth Colliery, the siteon which the stadium was built. The other monument wasconstructed between 1998 and 2007 in Moers, Nordrhein-Westfalen, Germany, by Otto Piene, a graduate of theMunich Art Academy. The monument stands 30 metreshigh, is made of steel and glass, and is meant to recall the

coal mining activity in the region. It was named “Geleucht,”which loosely translates to “once was shining.”

The safety lamp was also depicted on a number of postagestamps. For example, a Spanish stamp issued in 1995 showsa safety lamp with an underground mine in the background.It also refers to the Mining Museum in Asturias, an old min-ing district in north western Spain. Stamps honouring thecoal mines of the Saar Territory in Germany1 include: oneshowing a canary still being used in the 1930s to warn min-ers of lethal doses of explosive methane gas; one showing asafety lamp with wagons loaded with coal; and one showinga miner holding a safety lamp in his hand. Safety lamps alsoappear on German, Hungarian, Czechoslovakian andLuxemburger stamps. Safety lamps also appear on the coat ofarms of the Koumac Province of New Caledonia and thePetrosani mining district in Romania. The Romanian stampshows the pick and hammer — the miners’ symbol — and apneumatic drill. The miners’ lamp has also been introducedto the coat of arms of many mining towns, such as the min-ing town of Nučice, Czech Republic.

It was around 1910 that the battery-operated electriclamp was introduced, gradually replacing the Davy–Stephenson lamp. It was safer and its design provided betterlighting. CIM

1 Saar or Saar Territory (German: Saargebiet) lies between Germany and

France, was created by the Treaty of Versailles in 1919 after World War I

with Saarbrucken as its capital, and has important coal mines and an inten-

sive steel industry. It was administered by France, under League of Nations

supervision pending a plebiscite to be held in 1935. The plebiscite resulted

in an overwhelming majority in favour of re-union with Germany. After

World War II, the territory was placed under French occupation and

detached from Germany. It was returned to Germany in 1957.

The miners’ safety lampA historical essay

By Fathi Habashi, Laval University

Suggested readingsHabashi, F. (1999). Mining and Civilization. An Illustrated History. Québec City: MétallurgieExtractive Québec. Distributed by Laval University Bookstore.

Habashi, F., Hendricker, D., & Gignac, C. (2010). Mining and Metallurgy on PostageStamps. Québec City: Métallurgie Extractive Québec Distributed by Laval UniversityBookstore.

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17

13 14

Opposite page: 1. Spanish stamp; 2. Saar stamp; 3. A Hungarian stamp; 4. A Czechoslovakian stamp; 5. A Luxemburger stamp; 6. A NewCaledonian stamp; 7. A Romanian stampThis page: 8. An oil lamp used in under-ground mining; 9. An ancient Greek carry-ing torch; 10. A safety lamp; 11. HumphryDavy; 12. George Stephenson; 13.Memorial for the 28 victims of the mineaccident on pit “Vereinigte Präsident” in1936 in Bochum Cemetery. Designed byWilhelm Wulff (1891-1980); 14. Monumenthonouring miners at the Faculty ofArchitecture, University of Bratislava,Slovakia; 15. Location map of Sunderland,United Kingdom; 16. Miner’s helmet withbattery operated lamp; 17. Coat of arms ofthe mining town of Nucice, Czech Republic;18. Miners’ Lamp monument at theStadium of Light in Sunderland; 19.“Geleucht” by day; 20. “Geleucht” by night

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Nevada-type gold deposits (Part 4)By R.J. “Bob” Cathro, Chemainus, British Columbia

At the end of 2008, nearly 50 years after the Carlin deposit was discovered,Nevada ranked as the fourth largest gold-producing area in the world afterChina, Australia and South Africa. Moreover, it was the world leader in termsof gold production per unit area (611 tonnes per million square kilometres).Production that year of 5.7 million ounces (54 per cent from the Carlin Trend)came from 19 major mining operations, while at least 68 companies (juniorsand majors) drilled at a minimum of 123 projects. At the end of 2008, the min-ing industry held 70.2 million ounces of gold reserves in Nevada, enough tosustain production at current levels for about 12 years, plus another eight yearsin the resource category (Price, 2008). The 2008 production was actually 35 percent lower than the peak production of 8.85 million ounces in 1998 (Driesner& Coyner, 2009).

The Carlin trend is now recognized to be a 60-kilometre long, northwestalignment of predominantly carbonate-hosted gold deposits, which Newmontcontinued to dominate until the late 1980s and early 1990s. It began to losethe lead after American Barrick Resources, a subsidiary of the Toronto-basedcompany, acquired the Goldstrike property at the north end of the trend fromWestern States Minerals Corporation and Pancana Minerals in January 1987for $62 million. Reserves at that time were 19.6 tonnes (0.63 million ounces)in 10.3 million tons of oxide ore grading 1.9 g/t (0.055 oz/ton). Barrick recog-nized the depth potential and expanded the Goldstrike orebody into a diversegroup of Carlin-type deposits, including some of the largest and highest gradeexamples known. One spectacular hole drilled into the heart of the Meikledeposit in 1989 intersected 136 metres of 16.1 g/t (0.47 oz/ton) betweendepths of 416 and 548 metres. At the end of 2001, the largest deposit, Betze-Post, contained approximately 1,244 tonnes (40 million ounces), and Meiklecontained 198 tons (7 million ounces) at an average grade of 24.7 g/t (0.72oz/ton). Goldstrike is part of a larger sub-district that had a total gold endow-ment, at that date, of 1,960 tonnes (63 million ounces) within an area of 8.5by two kilometres, placing it among the largest concentrations of gold onearth. This success was a product of the evolution in understanding of geologyand ore controls, supported by the application of geochemical and geophysicalexploration techniques (Bettles, 2002).

Most of the Goldstrike mineralization is hosted by limy to dolomitic mud-stones of the Devonian Popovitch Formation and brecciated limestones anddolomites of the Devonian-Silurian Bootstrap Limestone unit. The age of thegold mineralization is approximately 39 Ma, coeval with late Eocene dykes.Gold deposition favours the presence of reactive carbonate, porosity, perme-ability and the presence of iron, which can be sulphidized to form auriferouspyrite. Dissolution of carbonate has produced collapse breccias, which com-monly host high-grade ore. The deposits have strong structural controls, withenhanced fracturing within 300 metres of the contact of a Jurassic dioriteintrusion providing a first-order control of the Betze-Post deposit. Most of thegold in unoxidized ore is found in arsenian pyrite overgrowths on pre-orepyrite and is associated with Hg, Sb and Tl. Marcasite and arsenopyrite are alsopresent and the total volume of these sulphide minerals averages about 5 percent. Supergene alteration has produced oxide ores to depths of up to 200metres. At the Betze and Deep Post sub-deposits, mineralization occurs asstacked ore zones that attain a vertical range of 450 metres adjacent to the Postfault system (Bettles, 2002).

“One thing we did was kind of reintroduce the

idea of prospecting. People in the States didn’t

necessarily believe in prospecting. They

thought you had to have either a geologist or

more sophisticated exploration, but my expe-

rience in Canada indicated that prospecting

was still very useful… Anyway, we introduced

the idea of prospectors, and also the idea of an

incentive bonus, which I always thought was a

good idea. There again, that came from

Canada because they didn’t do that much in

the United States. Canada was very strong

on that.”

~ Livermore, 2000

“There are many fine geologists who are sim-

ply not good prospectors… In Canada,

(Newmont) used prospectors extensively and

found them to be very effective if they were

knowledgeable about a particular area or

type of mineralization.”

~ Livermore, 1996

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November 2010 | 89

New occurrences of sediment-hosted, micron gold min-eralization were discovered in central Yukon from 2008 to2010 by ATAC Resources Ltd. and are currently the subjectof intensive exploration. While some of the new depositsappear to have strong similarities in mineralogy, alterationand geological setting to Carlin-type deposits, it is stillmuch too early to know if they will have the size and gradeto be economic. Current results are available on the com-pany website at www.atacresources.com/s/home.asp.

The new Yukon discoveries were made in an area thathas been tramped over by experienced prospectors forabout 130 years, first for placer gold, later for silver-leadveins, and more recently for uranium and base metals. Thisis an excellent example of how difficult it can be to dis-cover micron gold mineralization, and another reminderthat mineral exploration often requires an enormousamount of faith and persistence.

The first prospectors who entered the new gold districtwere the vanguard of the vast army that had been gradu-ally working its way northward and systematically scour-ing the Cordilleran drainages for placer gold in the searchfor another California goldfield. After being slowed tem-porarily by the Cariboo Gold Rush in southern BritishColumbia in 1860 (Sutherland Brown & Ash, 2009), theadvance scouts encountered widespread small- and inter-mediate-size placer deposits throughout northern BritishColumbia, southern Yukon Territory and eastern Alaska.In 1896, they found the rich Klondike camp in westernYukon, which triggered the famous Gold Rush of 1898. Itis situated at Dawson City, near the InternationalBoundary, approximately 250 kilometres west of the ATAC

Wall-rock alteration is very criticalin the formation of Nevada-typedeposits. The most salient features arecarbonate, in the form of decalcifica-tion (calcite removal) and moreadvanced decarbonatization (calcite/dolomite removal); silicification, par-ticularly within structural conduits;argillic alteration of primary silicateminerals; and gold-enriched sulphida-tion of reactive iron to form gold-bear-ing sulphide minerals. The generalalteration progression includes the fol-lowing major assemblages (from distalto proximal): limestone (calcite +dolomite + illite + quartz + Kspar +pyrite), to weak to moderate decalcifi-cation (dolomite halo), to strong decal-cification, to decarbonatization (quartz+ kaolinite/ dickite + pyrite +/- gold;(Teal & Jackson, 2002).

This wealth and mineral potentialhas generated a vast amount of geo-science research and has contributedenormously to the science of economic geology. However,there does not appear to be a consensus yet on terminol-ogy. I have used the term “Nevada-type” as a generic termfor non-intrusive-related, disseminated, carbonate sedi-mentary rock-hosted, low-temperature, stratabound, struc-turally controlled, micron-gold mineralization. “Carlin-type” should refer strictly to deposits in the Carlin trend,which are in different host rocks than the Getchell,Winnemucca and other trends, and thus have differentalteration and mineralization. The terms “noseeum” and“invisible” have been replaced by “micron” to define thefine-grained nature of the gold.

Most deposit types, such as porphyries, skarns, VMS andsedex deposits, are widely distributed around the globe. Onthe other hand, there are a few major mining camps, suchas gold at Witwatersrand, South Africa, and nickel atSudbury, Ontario, and Norilsk, Russia, that appear to havevery few duplicates elsewhere. In spite of 50 years of famil-iarity and its obvious economic potential, and even thoughthe price of gold has increased about thirty-fold in thisperiod, discovering evidence of Nevada-type gold mineral-ization outside Nevada and Utah has proven elusive and itmay be a member of the latter group with geographic con-finement. Five deposits identified as Nevada-type were firstrecognized in Guizhou Province, China, in 1980 and simi-lar mineralization has been reported in Shaaanxi, Hunanand Hubei provinces (Cunningham et al., 1988). However,the deposits are reportedly still quite small by Nevada stan-dards. Additional deposits that may be Nevada-type arereported from Sarawak Indonesia, Iran, Africa and Peru(Arehart et al., 2003).

Nevada gold production, 1960-2008 (Driesner & Coyner, 2009)

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discovery. Klondike attracted many of the most experi-enced and hardiest prospectors on the continent to Yukon,along with many more “cheechakos” (greenhorns) whoproceeded to pan virtually every small stream and tribu-tary, including the belt of rocks hosting the ATAC discov-ery. Although several significant placer deposits werefound to the south and west, gold panning of the ATACproperty was unproductive.

The gold prospectors also discovered rich silver-bear-ing galena veins that were not economic at the time. Oneof those veins later became part of the Keno Hill silvercamp, Canada’s second largest, which produced 6.6 mil-lion kilograms (214 million ounces) of silver, 323 thou-sand tonnes (711 million pounds) of lead and 198 thou-sand tonnes (437 million pounds) of zinc between 1919and 1989 (Cathro, 2006). The silver camp, whichattracted periodic waves of experienced prospectors whoscoured the surrounding district for more rich veins, is sit-uated only 60 kilometres south of the Tiger zone on theATAC property.

In 1959, Amerada Petroleum Corporation constructedthe Wind River Trail, a 250-kilometre winter road from theend of the highway system at Keno Hill, to support explo-ration drilling farther north. The winter road followedoverburden-filled valleys and actually crosses the ATACproperty. Then, in 1964, the Geological Survey of Canada(GSC) conducted Operation Keno, its first large helicopter-supported, regional stream sediment, water, heavy mineraland rock sampling project, which covered 4,900 squarekilometres (1,900 square miles) at a field expenditure costof only $82,000. As (bad) luck would have it, the northernboundary of the GSC survey only covered the south side ofthe ATAC property and the creek draining the Tiger Zonewas not sampled, possibly because it is difficult to land ahelicopter nearby. No other gold occurrences have beenfound on the south side of the claims.

In 1979, a joint venture of several energy companies,which was searching for large sedex lead-zinc-silverdeposits, visited the ATAC property and examined asmall area of poorly exposed, intrusive dykes and sillssituated about 3.5 kilometres from the Tiger Zone.Weathering had exposed a small iron-stained, tremoliteskarn zone containing minor amounts of scheelite, chal-copyrite and pyrrhotite that had developed in calcareousrocks. The joint venture, which staked claims in the areain 1979 that partially covered the Tiger Zone, was notroutinely assaying for gold, which was common practiceat the time because of the low gold price. In any event,detailed sampling would have been needed to obtain significant gold assays.

ATAC first visited the tungsten skarn in 2006 to deter-mine if any gold was associated with it and found that aniron oxide cap at the edge of the Tiger zone had a higharsenic background. Reanalysis for gold gave enoughencouragement to warrant systematic geochemical sampling

and prospecting in 2007 and led to the first drilling in2008. That resulted in an extensive staking program cover-ing almost 200 kilometres of strike length of Paleozoic car-bonate rocks that are sandwiched between two regionalthrust faults. In 2009-10, ATAC discovered another signif-icant gold occurrence (Osiris) about 100 kilometres east ofTiger and confirmed with drilling that it was a Carlin-typedeposit.

More than a century passed between the first examina-tion of the ATAC property by gold prospectors and therecognition of Nevada-type gold mineralization. The prin-cipal reason for that delay was the absence of placer goldin the creeks or visible gold in the talus. The fact thatmicron gold deposits are so rare outside Nevada, which islocated thousands of kilometres to the south, undoubtedlyplayed a part during the last 50 years. We can safelyassume that the central Cordillera between Nevada andYukon will see a lot more exploration in coming years.

AcknowledgmentsRob Carne of ATAC Resources kindly provided informa-

tion about the new Yukon discoveries as well as Nevadareferences and skilled editing. Information about the GSC’sOperation Keno was supplied by Chris Gleeson, one of theprincipals involved in the design, field operation and pub-lication of the data. CIM

ReferencesArehart, G. B., Chakurian, A. M., Tretbar, D. R., Christensen, J. N., McInnes, B. A., &Donelick, R. A. (2003). Evaluation of radioisotope dating of Carlin-type deposits in theGreat Basin, Western North America, and implications for deposit genesis. EconomicGeology, 98, 235-248.

Bettles, K. (2002). Exploration and geology, 1962 to 2002, at the Goldstrike property,Carlin trend, Nevada. In T. B. Thompson, , L. Teal, & R. O. Meeuwig (Eds), Gold depositsof the Carlin trend. Nevada Bureau of Mines and Geology, Bulletin 111, p. 54-75. (Thispaper was first published in Integrated Methods for Discovery: Global Exploration inthe Twenty-First Century. Society of Economic Geologists Special Publication No. 9,April 2002, p. 275-298.)

Cathro, R. J. (2006). The history and geology of the Keno Hill silver camp, YukonTerritory. Geoscience Canada, 33(3), 103-134.

Cunningham, C. G., Ashley, R. P., Chou, I.-M., Zushu, H., Chaoyuan, W., & Wenkang, L.(1988). Newly discovered sedimentary rock-hosted gold deposits in The People’sRepublic of China. Economic Geology, 83, 1462-1467.

Driesner, D., & Coyner, A. (2009). Major mines of Nevada 2008: Mineral industries inNevada’s economy. Nevada Bureau of Mines and Geology, Special Publication P-20,p. 23.

Livermore, J. S. (1996). Carlin-type gold exploration in Nevada since the Newmontdiscovery in 1961: 1996 Jackling Lecture. SME-AIME Transactions, 300, 79-83.

Livermore, J. S. (2000). Prospector, Geologist, Public Resource Advocate: Carlin MineDiscovery, 1961. An oral history conducted in 1992, 1997, and 2000 by E. Swent andM. Fuerstenau, Regional Oral History Office, The Bancroft Library, University ofCalifornia, Berkeley. Available athttp://content.cdlib.org/view?docId=kt796nb3xp&brand=oac&doc.view=entire_text

Price, J. G. (2008). Overview, in The Nevada Mineral Industry 2008. Reno: NevadaBureau of Mines and Geology, Special Publication MI-2008.

Sutherland Brown, A., & Ash, C. H. (2009). The history and geology of the CaribooGoldfield, Barkerville and Wells, BC. Geoscience Canada, 36(1), 1-31.

Teal, L., & Jackson, M. (2002). Geologic overview of the Carlin trend gold deposits. InT. B. Thompson, L. Teal, & R. O. Meeuwig (Eds.), Gold deposits of the Carlin trend.Nevada Bureau of Mines and Geology, Bulletin 111, p. 9-19.

Page 91: CIM Magazine November 2010

technical abstractsCANADIAN METALLURGICAL QUARTERLY

Excerpts taken from abstracts in CMQ, Vol. 49, No. 3.Subscribe—www.cmq-online.ca

Droplet Solidification of ImpulseAtomized Al-0.61Fe and Al-1.9FeH. Henein, Department of Chemical and MaterialsEngineering, University of Alberta, Edmonton, Alberta, V. Buchoud, École des Mines de Nancy, Parc de Saurupt,Nancy cedex, France, R.-R. Schmidt, Stiftung Institut fürWerkstofftechnik, Bremen, Germany, C. Watt, Department ofChemical and Materials Engineering, University of Alberta,Edmonton, Alberta, D. Malakho, Department of MaterialsScience and Engineering, McMaster University, Hamilton,Ontario, C.-A. Gandin, CEMEF UMR CNRS-ENSMP 7635,École des Mines de Paris, Sophia Antipolis, France, G. Lesoult, École des Mines de Nancy, Parc de Saurupt,Nancy cedex, France, and V. Uhlenwinkel, Stiftung Institutfür Werkstofftechnik, Bremen, Germany

High-Temperature Oxidation ofBessemer MatteM. Muinonen, Vale – Technical Services Limited,Mississauga, Ontario, G. Plascencia, CIITEC – IPN,Cerrada Cecati, Catarina, Mexico, and T. Utigard, MaterialScience and Engineering, University of Toronto, Toronto,Ontario

Slag Chemistry of the Mitsubishi S andCl Furnaces at the Xstrata Copper-KiddMetallurgical SiteP. Coursol, N. Tripathi, P. Mackey, Xstrata ProcessSupport, Falconbridge, Ontario, T. Leggett and A. Salomonde Friedberg, Xstrata Copper-Kidd Metallurgical Site,Xstrata Copper, Timmins, Ontario

Investigation of the Arc ErosionBehaviour of W-Cu CompositesK.-H. Tseng, Department of Mechanical Engineering, Far East University, C. Kung, Department of ComputerApplication Engineering, Far East University, T.-T. Liao,K.-Y. Chen and D.-P. Han, Department of MechanicalEngineering, Far East University

ABSTRACT Thermogravimetric oxidation tests were carried out on Bessemer mattescontaining copper, nickel and sulphur to investigate the feasibility of high temperaturefluid bed roasting. It was not possible to heat the nickel-copper sulphide particles in aninert gas since the discrete particles would melt before reaching the required temper-atures, resulting in large liquid droplets. The sulphides were therefore heated in air,leading initially to sulphate formation and oxidation of metallics, followed by sulphatedecomposition and sulphide oxidation. It was found that below 900ºC the oxidationkinetics were too slow for any practical application. Above 1050°C, the copper-nickeloxide calcine starts to agglomerate due to sintering. In the suitable operating rangefrom 900ºC to about 1050ºC the rate of oxidation was found to increase with increas-ing temperature.

ABSTRACT The Kidd Creek smelter of Xstrata Copper employs the Mitsubishi Process.The present paper focusses on the slag and matte chemistry of the smelting furnace(S-Furnace) and the cleaning furnace (CL-Furnace). In particular, the slag chemistry ineach of these furnaces was investigated using the Factsage™ software to betterunderstand the impact of slag and matte compositions on the slag liquidus and theoxidic copper content of the slag. In order to perform the calculations to the requireddegree of accuracy, all degrees of freedom for each system were fixed with respect toactual industrial parameters such as the slag, matte and gas phase compositions foreach furnace. The results are presented and discussed with respect to the current oper-ation of the S-furnace and ideas for potential improvements are also identified.

ABSTRACT In practical applications, silver-based composite materials have been usedfor high load bearing or high class contact materials. However, composites such asCdO-Ag and silver-based SnO2, TiO2 and ZnO are not economically feasible due to tox-icity concerns and cost effectiveness. On the other hand, copper matrices are widelyused for electrical contact applications in a diverse range of fields. In this study, parti-cle-reinforced copper (W-Cu and TiC-Cu) composite powders were fabricated using anovel electroless copper plating process. Electrical contacts made of pure Cu and theCu matrix powders were employed for dynamic electrode tests. The specimens weresubjected to 1,000 and 10,000 arc breakings to study the effects of arc erosion on thecontacts as well as their make-and-break life. Results show that the contacts made ofpure Cu had the greatest loss of mass and the shortest life while the W-Cu compositespreserved most of their mass; in addition, the W-Cu composites with finer W particles(1 mm) outperformed the rest of the composites.

ABSTRACT Al-0.61wt%Fe and Al-1.9wt%Fe alloys were atomized in helium and nitro-gen atmospheres, using impulse atomization. It is found that assuming that the eutecticis composed of a-Al and Al4Fe phases, the undercooling is about 10ºC and 17ºC forthe 0.61 and the 1.9 wt% Fe alloys. The maximum solubility of Fe in the primary a-Alphase is 0.068 wt% and 0.12 wt% in the 0.61 and 1.9 wt% Fe alloys and the eutec-tic is found at 3.1 and 5.5 wt% Fe for these two alloys, respectively. Calculated coolingrates using the metastable values of the phase diagram for each alloy showed that thecooling rates ranged from 20 to 10,000 K/s. The measured cell spacing l, was linkedto the cooling rate CR according to the equation l= B SCR-n where B and n are con-stants, depending on the composition of the alloy. Good agreement was found betweenthe experimentally determined coefficients B and n and those calculated from thecoarsening model proposed by Kurz and Fisher [1].

November 2010 | 91

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technical abstractsCIM JOURNAL

Toward optimum value inunderground mineschedulingB. Maybee, Curtin Graduate School ofBusiness, Perth, Australia, L. Fava,Symbioticware, Sudbury, Ontario, P. G. Dunn, Curtin University ofTechnology, Perth, Australia, S. Wilson,Mine Advantage Inc., Toronto, Ontario,J. Fitzgerald, Scotia Capital, Toronto,Ontario

ABSTRACT The scheduling of underground mining activities is a complex task that must simultaneouslysatisfy a large number of constraints. A schedule optimization tool (SOT) for underground mine planning isdescribed and its use for investigating strategic decisions is illustrated through a case study. The maincomponents of the SOT include (a) a genetic algorithm that searches for optimal schedules, (b) guidancefor the application of heuristic rules, and (c) sliding, which implements just-in-time development. Findingsindicated that preliminary scheduling performed before invoking the SOT, intended to provide a good start-ing point for the search, did not ultimately lead to higher value schedules.

RÉSUMÉ Le séquencement des activités minières souterraines constitue une tâche complexe qui doitrépondre à de nombreuses contraintes simultanément. Un outil d’optimisation du séquencement (SOT) pourla planification souterraine est décrit et son utilisation pour analyser les décisions stratégiques est illustréepar une étude de cas. Les principales composantes du SOT comprennent (a) un algorithme génétique quirecherche des séquencements optimaux, (b) des lignes directrices pour l’application des règles heuristiqueset (c) la construction par poussage, qui met en œuvre le développement juste à temps. Les résultats démon-trent que le séquencement préliminaire effectué avant de faire appel au SOT, ce qui devait fournir un bonpoint de départ pour la recherche, ne conduisait pas en bout de ligne à de meilleurs séquencements.

ABSTRACT The influence of using different extraction processes (caustic versus non-caustic) on thethixotropic strength of oil sands fine tailings is examined, as is the influence of adding a coagulant to causticfine tailings. The thixotropic strength of fine tailings at large void ratios manifests itself as a bonding or gelstrength that has been widely noted both in the laboratory and in the field. This gel strength has a significantinfluence on preventing the initial consolidation or settlement of fine tailings. Differences between the fine tail-ings’ thixotropic strength development are explained based on their physical and chemical characteristics.

RÉSUMÉ L’influence de l’utilisation de différents procédés d’extraction (caustiques p/r non caustiques) surla résistance thixotropique des fins résidus de sables bitumineux est étudiée, en plus de l’influence de l’a-jout d’un coagulant aux résidus fins caustiques. La résistance thixotropique des résidus fins à de grandsindices de vides s’exprime par une force de liaison ou de gel qui a été bien reconnue, au laboratoire et surle terrain. Cette résistance de gel a une influence significative sur la prévention de la consolidation initialeou du tassement des résidus fins. Les différences entre la résistance thixotropique des divers résidus finssont expliquées en se basant sur leurs caractéristiques physiques et chimiques.

ABSTRACT Agnico-Eagle’s LaRonde mine is one of the deepest mines in Canada. Ground conditions in thedeeper levels can be very challenging, ranging from hard and brittle, to soft and squeezing. As a result,rock mechanics and ground control practices have had to evolve considerably to accommodate progres-sively deeper mining activities. This paper focuses on the deeper levels of mines and how the difficultground conditions encountered there have influenced the mining strategy. The first section examinesground control practices and support systems in highly stressed, poor quality rock. The evolution of levellayout is also presented. Finally, improvements in stope sequencing are reviewed.

RÉSUMÉ La mine LaRonde d’Agnico-Eagle est l’une des mines les plus profondes au Canada. Les con-ditions de terrain aux niveaux les plus profonds peuvent poser d’importants défis; en effet, le roc peut varierde dur et cassant à mou et plastique. Par conséquent, les pratiques de mécanique des roches et de con-trôle du terrain ont dû évoluer considérablement pour correspondre aux activités minières de plus en plusprofondes. Cet article porte sur les niveaux miniers les plus profonds et sur la manière dont les conditionsdifficiles de terrain ont influencé la stratégie minière. La première section examine les pratiques de con-trôle du terrain et les systèmes de soutien dans le roc de piètre qualité soumis à de fortes contraintes.L’évolution de l’aménagement des niveaux est aussi présentée. Finalement, les améliorations dans leséquencement des chambres d’extraction sont analysées.

Influence of extractionprocess and coagulantaddition on thixotropicstrength of oil sands finetailingsW. G. Mille, WorleyParsons Services,Perth, Australia, J. D. Scott and D. C. Sego, University of Alberta,Edmonton, Alberta

Review of miningpractices at depth atAgnico-Eagle’s LaRondemineF. Mercier-Langevin, Agnico-EagleMines Ltd., Cadillac, Quebec

Excerpts taken from abstracts in CIM Journal, Vol. 1, No. 3.Subscribe—www.cim.org

Page 93: CIM Magazine November 2010

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November 2010 | 93

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voices from industry

94 | CIM Magazine | Vol. 5, No. 7

British Columbia’s mining sector is on the cusp of arenaissance. Several new mines have opened or are inconstruction, while other major projects are in final

stages of regulatory approval. Driven by the demand fromemerging markets, strong commodityprices have spurred a renewed interestin the province’s major commodities —steelmaking coal, copper, gold andmolybdenum. If all goes well, the sectoris poised to grow by some 30 per cent inthe next five years.

B.C.’s renaissance is clearly drivenby its greatest strengths: a solid geo-science database, low-cost power,skilled labour, good infrastructure andone of the most competitive tax juris-dictions in North America. The provinceis also known for some significant chal-lenges — perhaps the greatest of these isnavigating the quagmire of Aboriginalissues. However, there is now growing

optimism that we are headed in a new and positive direction in this area due to some bold new initiatives byindustry and the province.

British Columbia is different from the rest of Canada.Land claims here remain largely unsettled. The courts con-tinue to rule on the nature and extent of Aboriginal rights,and with each decision, new expectations are created on allsides about the nature of Aboriginal interests and themechanisms and depth of consultation required from gov-ernments and industry.

First Nations in B.C. have long asserted that Aboriginaltitle, which is claimed the province over (and some due tooverlapping claims), means that First Nations are in a posi-tion to decide on the kinds of activities that take place onthe land and collect a share of the revenues generated bythe development of the resources. Disagreements with bothlevels of government on these issues have been the rootcause of many confrontations, lengthy delays and lostopportunities, with industry often the “ham in the sand-wich,” left trying to advance projects through direct nego-tiations with First Nations communities.

The concept of having First Nations benefit directlyfrom resource developments in their traditional territorieshas been evolving over the last decade. This year, for thefirst time, groundbreaking resource revenue-sharing

agreements have been concluded between the provinceand three First Nations communities involving two newmining projects: the Tk’emlups and Skeetchestn IndianBands (New Afton) and the McLeod Lake Indian Band (Mt.Milligan). Through these agreements, the province willshare a portion of the mineral tax paid by the mines withthese First Nations.

In the first agreement between the province andSkeetchestn Indian Bands, the two participating FirstNations will share 37.5 per cent of the mineral tax in con-nection with the New Afton Mine. The province estimatesthe financial benefit to be $30 million for the two commu-nities over the life of the mine (expected to be 12 years).The McLeod Lake agreement is linked to the Mt. Milliganproject and provides for 15 per cent revenue sharing forthe band, worth approximately $35 million to the McLeodLake Band over the life of the mine. Negotiations withother bands for other new mines or major mine expansionsare in progress.

There is no legal requirement for the province (orindustry, for that matter) to share revenues, nor does thenew revenue-sharing policy affirm or deny rights and titleclaims. However, revenue sharing is a meaningful way tobuild relationships and align the economic interest of gov-ernment, proponents and the participating Aboriginalcommunities in the success of a mining project.Environmental issues, jobs, training and community bene-fits will continue to be at the forefront of negotiationsbetween companies and communities, but government-to-government revenue-sharing agreements will set a newstage for successful and collaborative negotiations.

Industry is optimistic about the positive influencethese agreements will have on Aboriginal relations andthe competitiveness of the B.C. mining sector with otherjurisdictions. The province is showing the rest of thecountry, and indeed the world, that relationships thathave been riddled with conflict and confrontation in thepast can be redefined based on respect, collaboration anda common interest in the socio-economic well-being ofcommunities.

It is hoped that as more agreements of this kind areconcluded, Aboriginal community support for mining willincrease and that to First Nations, as much as non-Aboriginal communities, building a mine in an area willcome to represent the socio-economic healing and growththat is desperately needed in so many communities. CIM

Breaking new ground in B.C. Aboriginal relationsBy Zoë�Younger, vice-president, corporate affairs, Mining Association of British Columbia

Page 95: CIM Magazine November 2010

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Page 96: CIM Magazine November 2010

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