B.C., YUKON and VANCOUVER AS the WORLD's MINING BAROMETER 2017 Dear Reader

2017 Mining & Exploration in BC - Innovation - First Nations Yukon Mining & Exploration - From Vancouver to USA & Mexico to USA Vancouver Mining & Exploration - From Yukon B.C., YUKON AND VANCOUVER YUKON B.C., AS THE WORLD'S MINING BAROMETER AS THE WORLD'S

B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Dear Reader,

We are happy to present Global Business Report’s (GBR’s) Industry Explorations British Columbia and Yukon and Vancouver as the World’s Mining Barometer 2017. This year has been a turning point for the mining sector globally and where better to begin 2017 than in Vancouver, the World’s Mining Barometer, to analyse the pickup in the global exploration playground for our international readers. Through extensive interviews with executives based in Vancouver and operating in British Columbia, Yukon, Mexico and USA, we had the opportunity to understand the strategies that decision makers had taken to survive the last few years and the trends they January 22-25, 2018 are betting on for the year to come. At the AMEBC’s Roundup in January, optimistic geologists predicted that the copper price would increase by 20% by the end of the year, a figure that today looks probable. January 23-26, 2017 Along with improving market conditions, British Columbia has seen a resurgence, Where leaders in mineral particularly in early stage exploration. Those lucky enough to have further developed exploration connect projects attracted attention from Toronto investment houses and international mining companies, specifically in the North West where golden child Pretivm poured its first gold Stay up-to-date online at bar at Brucejack in June. amebc.ca/roundup Following Goldcorp’s acquisition of the Coffee Project, there was a domino effect in Yukon during the first half of 2017, which saw majors investing into an array of gold projects. The region has benefitted from technological developments, a pro-mining government and increased gold prices, and two new mines are soon set to begin production, in addition to Capstone’s copper Minto which has just a few years of mine life left. The region now boasts investment from Kinross, Barrick and Agnico Eagle, to name a few. During our research, it was key to gauge the level of confidence from the financial community. Evidently, projects seeking smaller investments had challenges knocking at the doors of financial institutions, compared to investors such as Eric Sprott who invested US$20 million into Ascot’s Premier property. Alternative financing and an uptick in retail investor activity was helpful for those who started to put drills in the ground this summer, and market performance has overall been stable. Vancouver is home to the majority of the globe’s juniors and many major mining companies, all of which benefit from easy access to investment as well as a high quality of life. Whilst many remain within the Canadian border, we also caught up with previous interviewees who had ventured south to the USA and Mexico, which are favoured for their faster permit processing times and untapped potential. Across the board, companies have created innovative strategies to mitigate risk and accepting a ‘new normal’ in the industry, as we will explain in the following pages. Please share with us your feedback on the report with an email to apascoletti@gbreports. com or end a tweet @gbreports. Enjoy the read!

Project Director Laura Brangwin

Global Business Reports_Aug20_2017_PP.indd 1 8/20/2017 11:27:25 PM Mining in Yukon Arctic B.C. Mining Ocean A guide to the province’s producing operations, A look to the gold rush in this First Nations relations North-western territory and innovative operating solutions 8-33 54 – 67

Vancouver: N Exploration in North YUKON B.C. America’s TERRITORY Whitehorse Analysis of an increase in Mining Hub exploration activity for the province Investors are looking south for opportunities

34 -52 68 -92

Paci c Ocean Mining in B.C. Yukon Mining

8. An Introduction to British Columbia 56. Yukon: Where Mining Past and Present Meet British Columbia 10. Interview with Mining Association of B.C. 58. Map: Yukon Mining and Exploration Projects BRITISH 11. Map: Mines in British Columbia 2016 & Yukon COLUMBIA 12. Interview with Ministry of Energy, Mines and 59. Interview with White Gold Corp Canada Petroleum Resources 61. Interview with Victoria Gold Corp United States 13. Mineral Production in British Columbia 63. Interview with Alexco Province Capital 16. Interview with Copper Mountain Mining 65. Interview with Goldcorp Corporation City 17. Navigating the Regulatory Framework 18. Interview with Teck Resources Vancouver: North America’s Mining Hub 20. Interview with IDM Mining 21. Interview with Avino Silver and Gold Mines 70. Vancouver: North America’s Mining Hub 23. Innovation, Optimization and Automation 72. Highlight Projects in USA and Mexico 24. Interview with Shahram Tafazoli 74. Interview with KPMG 26. Interview with RMS-Ross Corporation 75. Interview with BMO Capital Markets Vancouver 27. Interview with Golder Associates Interview with RBC Capital Markets Victoria 29. First Nations: A future of cooperation 77. Insights from Experts 31. Interview with Tahltan Central Government 78. Interview with Endeavour Silver 32. Map: First Nations in British Columbia 79. Mexico 82. Interview with Bravada, Manex Resource B.C., Yukon and Vancouver as Group The World's Mining Barometer 2017 Industry Explorations Exploration in B.C. 83. USA Global Business Reports 86. Interview with Trilogy Metals Saguenay This research has been conducted by 36. Exploration in British Columbia 87. Interview with Mineral Mountain Resources Laura Brangwin, Eduardo Arcos 37. Interview with Association for Mineral 88. Graphite and Kevin Norchi Exploration 91. Interview with BBA Edited by Mungo Smith Québec 40. Map: Geological Map of British Columbia 92. Interview with SNC-Lavalin Graphic design by Gonzalo Da Cunha Atlantic 42. Interview with Evrim Resources A Global Business Reports Publication Trois-Rivières 43. Interview with Atlas Drilling 93. Company Index For updated industry news from our Ocean 46. British Columbia’s Mineral Exploration Tax 95. Credits on-the-ground teams around the world, Saint-Jérôme please visit our website at gbreports.com, Sherbrooke Incentives (AMEBC) subscribe to our newsletter by signing up 47. Interview with OK2 Minerals to our VIP list through our website, Montréal or follow us on Twitter: @GBReports 48. Interview with Skeena Resources; Ottawa Interview with Ascot Resources 48. Interview with Jim Pettit 50. Interview with Pacific Empire Minerals Interview with Commander Resources Ltd 0 75 150 Kilometers 51. Interview with ML Gold 52. Junior Company Index 0 75 150 Miles

Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 GBR • Industry Explorations • B.C., YUKON AND VANCOUVER

MINING IN B.C.

“British Columbia is one of the most transparent, fair and rigorous jurisdictions in the world… If the government could help with the financing of infrastructure to access ore projects, it would make many more projects feasible, as they sometimes require billions of dollars in development capital. Other than that, I do not think there is much missing in B.C.”

- Robert McLeod, president, director and CEO, IDM Mining Image courtesy of Motion Metrics EDITORIAL Global Business Reports Global Business Reports EDITORIAL

An Introduction to MINERAL PRODUCTION ($ millions) British Columbia Source: BC Stats

7, 000 6,750 6,500 An abundance of skills and a rich geology 6,250 should ensure a sustainable recovery for 6,000 5,750 mining in Western Canada 5,500 5,250 5,000 4,750 4,500 4,250 4,000 3,750 3,500 3,250 3,000 2,750 Commodity boom and bust cycles over the the Fraser Institute, B.C. ranks 27 among force, and a stable political and economic attractive mining projects in North Ameri- 2,500 2,250 past decade have made investors in the min- the world’s most attractive jurisdictions for environment. These strengths are contrib- ca. These developments have boosted com- 2,000 ing sector increasingly wary. Whereas as investments, beating world-renowned min- uting to renewed interest in the province, petitiveness in some of B.C.’s most remote 1,750 recently as 2011 majors and juniors would ing destinations such as Colorado, Chile or as companies based in B.C. and the rest of regions by drastically reducing operational 1,500 fearlessly embark on property acquisitions South Africa. Canada look back home for opportunities costs. However, exploration is not confined 1,250 8 overseas – often overlooking geopoliti- British Columbia has no shortage of min- under new market conditions. to the Golden Triangle. In the Highland Val- 1,000 9 cal risks and long-term economic hurdles eral wealth: it hosts vast gold and copper Completion of long-awaited infrastructure ley area, home of the great copper porphyry 750 500 – they are now in the hunt for projects of- porphyry deposits, together with equally projects during the downturn years has also deposits that B.C. is traditionally known 250 fering safety and certainty to their invest- impressive coal, silver, and nickel reserves. contributed to an uptick in exploration ac- for, several noteworthy projects are gaining 0 ments. It is under this paradigm change that Moreover, B.C. is the only Canadian prov- tivity in the province, mainly the Northwest traction. Huge exploration potential lies in 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 British Columbia (B.C.) has re-emerged ince hosting molybdenum deposits. This Transmission Line and the Iskut extension, the province: only 0.05% of land in B.C., as one of the world’s most attractive min- mountainous province offers a favorable which has resulted in major developments a province roughly as large as Nigeria, is ing jurisdictions. According to the annual legal framework, competitive and improv- in the so-called ‘Golden Triangle’ of north- used for mining purposes, evidencing the Copper Ores and Concentrates Unwrought Aluminum

survey of mining companies conducted by ing infrastructure, a highly skilled labor western B.C., which hosts some of the most immense potential for the industry. Molybdenum Ores and Concentrates Unwrought Lead Like every other mining jurisdiction, Brit- ish Columbia faces its own issues that could Zinc Ores and Concentrates Unwrought Zinc BRITISH COLUMBIA AT A GLANCE BRITISH COLUMBIA’S MAIN EXPORT MARKETS (2016) deter investments, namely disputes with Other Coal Source: IMF Source: BC Stats First Nations over land tenures, but also water permitting and compliance with envi- VALUES ($,000,000) ronmental regulations. Although the indus- % OF TOTAL % OF TOTAL Capital: Victoria United Kingdom try could hardly be described as buoyant, 2007 2016 Population: 4,648,055 (2016) clear signs of a turnaround have emerged. Head of Government: Germany Through infrastructure developments and Premier John Horgan (NDP Party) Mainland China , GDP: $250 billion (2015) highly automated operations at mining GDP growth: Hong Kong 3.7% for 2016 (Statistics Canada) sites, British Columbia has proved that the Taiwan Real GDP Growth: right elements are in place to compete with 3% for 2017 (estimate) Japan , any other jurisdiction. Furthermore, B.C. 1.8% for 2018 (estimate) GDP Per Capita: $49,286 (2015) South Korea , serves as Canada’s gateway to Asia, still Unemployment rate: 5.6% (May 2017, Statistics India the fastest-growing region in the world, and Canada) the main driver of commodity consump- Total Mining Sector Employment Figures: 38,155 Australia International exports (% of GDP): 22.1 (2015) tion for years to come. From legislation to Mining, quarrying and oil and gas extraction growth of Mexico market performance of British Columbia’s 3.3% in 2016 United States , Exports: $39 billion (2016, BC Stats). Wood products, main commodities, we identify a favorable metallic mineral products, energy products, machinery Other , change in tide for the mining sector in this and equipment, pulp and paper products. Pacific coastal jurisdiction, where immense TOTAL INTERNATIONAL EXPORTS 39,011 potential still lies. ▬

downturn in the coal industry, production did 5. Huckleberry 6. Mount Polley decrease, as four mines in the Northeast went MINES IN 2016 Revenue: $62.766 million 2016 Revenue: $131.5 million into care and maintenance between 2014 and Produces: Copper, molybdenum Produces: Copper, gold 2015. Two out of the four mines are now op- BRITISH Proponent: Huckleberry Mines Ltd. / Proponent: Imperial Metals erating again, bringing hundreds of jobs back Imperial Metals Status: Operating in that region. We say that ‘mining builds COLUMBIA Status: Operating Mine Life: to 2025 communities’ and in this case, we can see Mine Life: to 2022 Type of Operation: Open Pit how that becomes a reality. There remains Type of Operation: Open Pit Summary: Mount Polley, located in potential for coal projects to become coal- 1. Highland Valley Copper, Logan Lake Summary: Huckleberry, copper/ south-central British Columbia, Canada, making mines in the near future. Consider- 2016 Revenue: $750 million 3 molybdenum mine, is located 88 is an open pit mine which produces ing the role that steelmaking coal makes to Produces: Copper, molybdenum kilometres from Houston, British copper and gold. The target production society’s transition to a lower carbon econ- Proponent: Teck Resources Columbia, Canada. From this year on, for 2017 is 25-28 million pounds copper omy – from transit to infrastructure to wind Status: Operating Imperial Metals holds 100% of the and 55-60 thousand ounces gold. Open turbines – the future for steelmaking coal in Mine Life: to 2026 mine’s shares through its wholly owned pit operations are crucial in 2017, as it is B.C. looks bright. Type of Operation: Open Pit subsidiary HML Mining Inc. The mine expected that all the annual production Summary: Highland Valley Copper, runs all year round; nonetheless, in derive from these. The public remains concerned about the located in south central British August 2016 it closed due to care and Bryan Columbia, Canada, produces copper environmental impact of the mining indus- maintenance. 7. New Afton try following the Mount Polley disaster. and molybdenum concentrates through 2016 Revenue: $287.2 million Cox What role does the association have in ad- the process of autogenous and semi- Produces: Copper, gold dressing these concerns? autogenous grinding and flotation. The Proponent: New Gold Inc. BC: The breach at the Mount Polley mine crusher relocation project, increasing Status: Operating President and CEO was a significant incident and we fully- ac access to over 30 million tonnes of Mine Life: 12 years (from 2012) MINING ASSOCIATION OF knowledge its impact; this is not something reserves, was completed in 2015. Teck Type of Operation: Underground BRITISH COLUMBIA that happens every day. Immediately follow- has a 100% interest in the mine. Summary: New Afton is located northeast ing the incident, our members took the nec- 4 of Vancouver and 10 kilometers west of essary steps to ensure information was being 2. Gibraltar, Williams Lake Kamloops, British Columbia, Canada. It 10 Could you give an example of how the shared with members of the community and Produces: Copper, molybdenum is 100% owned by New Gold Inc. The 11 MABC supported operators in readjusting the general public about tailings facilities Proponent: Taseko Mines Ltd. reserve consists of 1.2 million ounces during the downturn? at their sites. Understanding the root cause Status: Operating gold, 4.2 million ounces silver and 1.1 BC: During the downturn, a number of our of the Mount Polley incident provided im- Mine Life: 22yrs (from 2015) 5 billion pounds copper. sites had to make the difficult decision of portant learnings to improve the regulatory Type of Operation: Open Pit ceasing to operate due to commodity prices. framework in B.C., however, we also learned Summary: Gibraltar, Taseko Mines 8. Copper Mountain These decisions are difficult because they about the importance of sharing information Limited 75% owned copper-molybdenum 2016 Revenue: $278 million (277,996) not only affect the company but they also with the general public. Today, all informa- mine, is located near Williams Lake in Produces: copper, gold, silver 2 6 affect workers, their families and the com- tion related to tailings facilities is available central British Columbia, Canada. It is Proponent: Copper Mountain Mining munities where the activity takes place. In online; this is an important step toward trans- the second largest open pit copper mine Status: Operating late 2015, after a significant drop in prices for parency and accountability not only for in- in Canada and the fourth largest in North Mine Life: 17 years (from 2015) our primary commodities (metallurgical coal dustry but also for government. America. The reserve consists of 3.1 Type of Operation: Open Pit and copper), our members came together to billion lbs of copper and 55 million lbs of Summary: Copper Mountain mine identify a common strategy to avoid further What are the opportunities for British Co- molybdenum. is located near Princeton and close impact. It did not take long to identify oppor- lumbia’s mining sector for 2017? to Vancouver in southern British tunities to work together. The result of these BC: Are we facing the beginning of the new 3. Red Chris 4. Mount Milligan Columbia, Canada. It has a resource discussions was the establishment of a 5-year cycle with things improving? Absolutely, 2016 Revenue: $295.3 million 2016 (October- December) Revenue: of approximately 5 billion pounds of Produces: Copper, gold US$55.4 million copper. The ownership of the mine is 75% deferral payment plan option for electricity there is a lot of optimism although commod- 7 costs depending on commodity prices; the de- ity prices remain volatile. Do we have the Proponent: Imperial Metals Produces: Copper, gold Copper Mountain Mining Corp. and 25% 1 ferral program includes commercial interest. opportunity to grow and be a key economic Status: Operating Proponent: Thompson Creek Metals Inc. Mitsubishi Metals Corporation. to 2043 This program greatly helped mines to con- driver for British Columbians? Absolutely, Mine Life: Status: Operating Type of Operation: Open Pit tinue operating and avoid further workforce there is no doubt that will happen. Mine Life: 24 years (from 2014) Summary: Red Chris Mine, which reductions during the downturn. We had a provincial election and now have Type of Operation: Open Pit consists of 77 mineral tenures, is Summary: Mount Milligan is located in a new government. This provides for an im- 8 located in northwest British Columbia, Could you provide an insight into the portant opportunity to have a meaningful Mc Load Lake, between Mackenzie and Canada and produces copper and gold. Fort James, in in central British Columbia, importance of the coal industry to Brit- conversation about mining in the province; The mine’s ownership and operation Canada. Centerra Gold acquired the mine ish Columbia and the current state of the a discussion that acknowledges the contribu- correspond to Red Chris Development on October 2016. It produces copper market? tions this industry has provided, continues to Company Ltd. (RCDC). The production and gold and possesses 256,847 tons of BC: We remain one of the primary exporters provide and will provide into the future to the target for 2017 is 85-92 million pounds proven Cu/Au reserves and 239,362 tons of steelmaking coal in Canada - it is one of citizens of BC, especially considering that copper and 40-45,000 ounces gold. of probable reserves. the principal commodities for B.C. With the mining contributes to a low carbon future. ▬

and this is certainly the case in B.C - my targets. We have been a leader in reducing Mineral Production ancestors were miners. We continue to green-house gas emissions, now the rest of work on ensuring that we are competitive the world is heading in that direction and in B.C., so as an example we are starting we want to continue to lead. When mining the Mining Jobs Taskforce working with leaders come to B.C., they can know they in British Columbia all stakeholders, to provide good family- are part of that leadership for the rest of supporting jobs for communities through- the world. out B.C. and look at the sustainability of As production figures rebound, miners in BC are cautious jobs, which means the sustainability of The previous government made invest- industry in this province. ment into power infrastructure which and taking precautions against future volatility was well received by the mining in- A concern for investors looking to Brit- dustry. What efforts will the new NDP ish Columbia has been collaborations government be making to support the with First Nations, what would be your growth of the B.C. mining industry? message to the investment community An example that this government took Hon. on this topic? on days after being sworn in, was with In 2017, Canada is at the beginning at an Teck Resources, which is one of British Minister era of reconciliation with First Nations Columbia’s top employers. Teck was sell- and changing how we work together for ing its shares of the hydro-electric dam, the better. Our particular government has and under the previous government they Michelle been very clear that building meaningful were struggling to get a deal with the B.C. partnerships with First Nations is one of crown corporation, BC Hydro. It was so Mungall our top priorities and we are going to be imperative to have a strong relationship looking at that from industry as well. The between the government and Teck for the In line with surging exploration activity, A turnaround in fortunes reality is that the mining industry in B.C. future viability of jobs in the Kootenay re- production figures for British Columbia 12 Ministry of Energy, has already started off on a good foot in gion, but also because Teck is such an im- have experienced an important uptick over Overall, eight metal mines and seven coal “ 13 Mines and Petroleum Resources building relations with First Nations. portant employer for B.C. Our government the last year. The British Columbia Min- mines are currently in production in Brit- BRITISH COLUMBIA We have over 200 First Nations in B.C. stepped up to the plate, and we worked istry of Energy and Mines estimates the ish Columbia. Of these, one metal mine and I recently just met with many of them with Teck and got a deal so that the dam re- total value of mine production for 2016 and five coal mines are operated by the to talk about their working relations with mains in the public sphere, so that portion at CAD$7.1 billion, representing a 21% Vancouver-based giant Teck Resources. mining companies in their region, which of Waneta Dam has now been purchased increase year-on-year and the province’s Teck’s Highland Valley Copper mine, the for the most part, are positive and long- by B.C. Hydro and has a deal with Teck to highest annual figure since 2012. This largest open-pit copper mine in Canada, standing working relationships and it is continue delivering power to their opera- uptick in the value of mineral production has produced in excess of 120,000 mt/y imperative that we continue to build these. tions. We want Teck to be here, they have contributes to the positive turnaround in of copper since 2014. The company an- What marks British Columbia (B.C.) Together, we have been working on regu- such strong roots in the Kootenays. It was business sentiment as majors are begin- nounced in late 2016 that its wholly owned We have a steady stream of work as a premium mining investment desti- latory framework not only for inter-gov- a win-win situation for B.C. and Teck, and ning to reap the benefits of higher - com subsidiary, Teck Highland Valley Copper from our main clients, and we have nation and how do you aim to keep it ernment relationships, but also how we that is the way we want to be working with modities prices. B.C.’s main commodities, Partnership, had entered an exploration seen great opportunities to advance competitive? all work with industry. It is encouraging is the industry. coal and copper, comprised 46% and 31% and material purchase agreement with ju- projects in this type of economic We have a long history with mining, and that industry, First Nations communities, respectively of the province’s total min- nior company Nicola Mining at the latter’s environment. There is funding a well-established regularity system and local, provincial and federal governments At this turning point for the global mining output. Meanwhile, gold has gained nearby Thule Copper property. In the coal- available for the right kind of projects, infrastructure, so in terms of government are all committed to build relations on the ing industry and British Columbia with ground and now represents 10% of B.C.’s rich southeastern British Columbia Teck bureaucracy we know how to be efficient framework of reconciliation. the new NDP government, what is your mining output by value, up from 7% two operates the Coal Mountain, Elkview, and the right kind of projects will and are constantly looking for improve- vision going forward and what would years prior. Fording River, Greenhills and Lines Creek return investment. ments. With the new NDP government, we The Mount Polley disaster was a huge you like to achieve in the coming years? Likewise, exports of metallic mineral coal mines. want to ensure that the sector can continue learning curve for the British Columbi- British Columbia and Canada in relation products from British Columbia increased Substantial coal potential also lies in doing well. We are working with indus- an mining industry. What is your mes- with the rest of the world is being pre- by 9% during 2016, reaching CAD$4.8 northeast British Columbia, a region that try, communities, First Nations and local sage to mining leaders with regards to sented with some very exciting opportuni- billion and representing over 12% of the boasts competitive infrastructure vital for governments to build the taskforce up so environmental impact? ties in terms of leading with a new look to province’s total exports. Additionally, coal producing areas, such as major rail- - Simon Cmrlec, it can provide strong recommendations to I think it is important that industry rec- our relationship with the environment and coal exports posted strong growth of 33%, way links. In line with industry trends, as- president North America, government in how we can best support ognises that their employees do not want building reconciliation with First Nations. reaching CAD$4.2 billion and represent- set consolidation in the region is expected, Ausenco. the industry. to be drinking dirty water, breathing dirty The new NDP government, with Premier ing almost 11% of B.C.’s total exports, with majors looking to increase supply as Investing anywhere in Canada is going to air, and they want to be growing their food John Horgan and myself, are very much mainly driven by strong demand from markets continue to pick up. be a good investment for the mining in- in clean soil. We have a responsibility as looking forward to working with industry Asia. In fact, roughly 60% of British Co- Teck has greatly benefitted from a marked dustry, we are a stable country with well- government and industry to ensure that we on forging these paths forward, building lumbia’s metallic minerals and coal ex- surge in the price of steelmaking coal dur- established relationships with the industry are protecting our land and water, as well on our past strengths and coming out to ports were shipped to destinations across ing 2016, which rose from below $80/ going back over a century in many places, as meeting our green-house gas reduction build a better B.C. ▬ the Pacific in 2016. mt to above $300/mt in November last ” Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations EDITORIAL Global Business Reports Global Business Reports EDITORIAL

Image courtesy of Skeena

We“ have no debt on our balance sheet and we are currently fully financed up to the point of making a construction decision on Kemess Underground…We expect to continue exploring Kemess East in the future, as the deposit remains open in several directions.

- John Miniotis, VP corporate development, AuRico Metals

year. Since then, however, prices have was 35,000 mt/day. Moreover, the com- shi Metals and the advantages of operat”- dropped and have fluctuated between $150 pany was cash flow positive during the ing in Canada given the current exchange and $200 during 2017. Teck was the best past year and was able to pay $35 million rate versus the U.S. dollar, Jim O’Rourke, performing stock in the Toronto Stock towards debt. The company implemented director and CEO at Copper Mountain, Exchange in 2016 and the company an- several technological changes in the utili- noted: “We have a very good relationship nounced that the annual profit attributable zation of trucks and modified its pit design with Mitsubishi. Our life of mine con- to shareholders for 2016 had reached $1.1 to utilize short hauls to increase produc- centrate is shipped to their smelters and, billion, up from $188 million in 2015. tivity. These developments led to the re- through our agreement, we are paid LME Teck has not been the only company ben- duction of operational costs to $1.25 per prices and get benchmark TC/RC rates… efitting from a major shift in fortunes over mt. Moreover, Copper Mountain also has We went out of our way to make sure that the past year. At Copper Mountain Mining noteworthy exploration potential at its site, we were buying as much as we could with Corporation average production of 41,200 having replaced everything it has mined Canadian dollars and this worked out re- mt/day was achieved during the last quar- in reserves already. Speaking about the ally well. Roughly 80% of our cost base is 14 ter of 2016, while its benchmark capacity company’s production deal with Mitsubi- in Canadian dollars, including wages and 15 power.” Additional operating metal mines in Brit- ish Columbia include Centerra Gold’s Mount Milligan, Taseko’s Gibraltar mine, New Gold’s New Acton and Imperial Met- als’ Red Chris, Huckleberry and Mount Polley mines. Aside from Teck, Conuma Coal and Hillsborough Resources also operate coal mines in the province. Over the coming year, selected mines are projected to come out of care and maintenance as commodity prices increase and their gains appear more sustainable. It is important to note that the B.C. government, together with the Mining Associa- “Thus far in 2017, companies are focusing tion of British Columbia, scaled up efforts less on balance sheets and more on income during the mining downturn to prevent statements and growing their businesses… “ more mines going into care and main- we also anticipate more IPOs over the next Injection hoisting is an innovative concept that we were working on…We were tenance by enacting a five-year deferral two years.” co winners of the big #DisruptMining prize and won the people’s choice award, program for power costs at mine sites, an With production figures rebounding meaning that the audience was impressed by this technology. Now, we are extremely welcome development for the strongly in 2016, companies envisage to looking at a site where we can develop a full-scale prototype. industry and communities heavily reliant sustain growth this year. Nonetheless, on mining activity throughout the prov- persisting volatility in the markets could ince. derail British Columbia’s production re- Moreover, the financing community has covery. In this regard, it will be important - Roy Slack, started to highlight the companies’ will- for mining companies to implement the president, ingness to gradually increase production right mechanisms to shield their opera- following a tumultuous period, as Jason tions against future price shocks, some of Cementation Canada. Neal, global co-head of mining and met- which are already evident at sites across als group at BMO Capital Markets notes: the province. ▬

What was Copper Mountain’s strategy How would you describe the explora- Navigating the to fare the period of low copper prices tion potential in the property and what and what strategy is in place following is your program for this year? your very positive results in 2016? The interesting part is the west end of pit Regulatory Framework At the end, it is all about people and we two. Last year we had a very small pro- have an excellent crew. For the third con- gram, we drilled about 5,000 meters and secutive year, we won the award for the added about 10 million tons. This year we Balancing Regulations, Safeguards and Incentives safest mid-size mine in British Columbia. are planning to drill 10,000 meters in the This speaks well of our employees and same area. It is quite advantageous to grow how they work together. There is no ques- the pit in that direction. With our exploration that with the drop in the copper price tion program, we have replaced everything British Columbia hosts some of the most project is the world’s largest undeveloped eyeing a 1,000 mt/d operation with produc- in 2015, things were difficult and looking we have mined and we still have excellent eye-catching mining projects in North gold project, based on mineral reserves. The tion of 80,000 oz/y gold. Red Mountain’s bleak, but it is amazing how everyone came exploration potential. America, thereby contributing to the re- latest inferred resource estimates at its Deep proximity to the town of Stewart makes together: the province, shareholders and newed buzz in the sector. The first is Pre- Kerr deposit total 19 million oz. gold and transportation and operational costs more suppliers. We were able to make some big How has the deal with Mitsubishi Metals tivm’s Brucejack, a high-grade (16 g/mt 1.92 billion mt copper grading 0.4%. Capi- competitive, adding to the already econom- Jim cuts in our cost structure. With B.C. Hydro, been favorable for both parties? gold) underground mine, with proven and tal costs for KSM are expected at US$5.5 ic viability of the project. Additionally, the the industry negotiated a power payment We have a very good relationship with probable mineral reserves at its Valley of billion and the project has an expected mine company has enjoyed constructive relations deferral plan. As part of this scheme, we Mitsubishi. Our life of mine concentrate is O’Rourke Kings deposit of 8.1 million oz. gold and an life of 51 years. KSM has received approval with the local Nisga’a First Nation thereby got up to a 75% deferral on our power costs shipped to their smelters and, through our estimated mine life of over 18 years. Pre- from provincial and federal authorities and facilitating the development process. IDM of roughly $30 million. Everyone wanted agreement, we are paid LME prices and tivm’s success in developing the Brucejack is only the second metal mine to do so in the is expected to announce a construction de- to keep operations running and we did not get benchmark TC/RC rates. Moreover, we mine has encouraged companies looking to past five years in B.C. cision in the last quarter of 2017 at the earli- want layoffs. We are a non-union operation train people at the mine, we have a metal- advance B.C.’s next breakthrough project Like Seabridge, IDM Mining is currently est. Reflecting on the company’s develop- and as a result, the site is like a big family. lurgist and mine engineers, which is benefi- Director and CEO and the mine is expected and poured first developing its flagship Red Mountain proj- ments in 2016, Robert McLeod, president In 2016, we set new records with regard to cial for both of us. COPPER MOUNTAIN gold in June 2017. ect in the Golden Triangle. The company and CEO at IDM, declared: “2016 was a our mine production and mill production. A MINING CORPORATION Another widely followed success story has capitalized on existing infrastructure transformative year for the company. We 16 big part of that was our secondary crusher, How has the Canadian exchange rate 17 comes from Seabridge Gold, whose KSM and work performed in the property and is raised US$20 million… Raising money which was key. During the last quarter of worked to your advantage? 2016, our operations averaged 41,200 ton We adjusted this at the start of 2016. We a day, while our benchmark capacity was went out of our way to make sure that we 35,000 t/d. There were many things that were buying as much as we could with had to come together and the rise of cop- Canadian dollars and this worked out re- per prices in the latter part of the year was ally well. Roughly 80% of our cost base is very beneficial. We ended up the year being in Canadian dollars, including wages and cash flow positive and we paid $35 million power. However, we get our diesel from toward debt during the year. In summary, Washington state, as we were able to se- 2016 was a very good year for us. cure our required supply of 30 million li- ters per year by 5 cents less than in Canada. What specific measures have you taken “ toward cost optimization? What are your perspectives for the cop- We have implemented several technological changes such as a We have implemented several technologi- per market? cal changes such as a dispatch system for I think that with China consuming 50 per dispatch system for the mine that has the mine that has been very successful as cent of the world’s copper, a lot is going been very successful it allowed us to increase our truck capacity. to depend on the China market, and to an as it allowed us to increase our truck Our maintenance has improved with it, as extent the U.S. The deterioration of grades capacity…We were able to look at has the utilization of trucks. With the dis- in Chile and Peru should bode well for the pit design and utilize short hauls, patch system, you have a record of every a company like us, since we have a very which increased the productivity of moment when the trucks stop or need fuel. clean concentrate that can be blended. With our trucks without any added cost. We also have GPS technology and pressure the downturn in the copper price over the gauges in the tires that are transmitted back last couple of years, there has not been to the dispatch system. Most importantly, much effort to get new mines and, as a con- we were able to look at the pit design and sequence, we could see a very big swing utilize short hauls, which increased the pro- in prices upwards. To some extent I think ” ductivity of our trucks without any added there is a shortage of concentrate. ▬ cost. Our cost is now $1.25 per Mt, which is as high as you get in operations worldwide.

for this project has not been easy because of the conditions of the markets but there is significant interest from our shareholders, par- Jeff ticularly as these projects in Canada are rare. There is tremendous “ exploration potential as well, which we will continue to perform.” During the first quarter of 2017, Toronto-based AuRico Metals re- Hanman ceived environmental approval from the Canadian Environmental Assessment Agency (CEAA) and the British Columbia Environ- We are in partnership with Samsung, we sell them 100% of mental Assessment Office (EAO) for its wholly-owned Kemess our concentrates in Mexico. They want their raw materials Underground project. Following this development, AuRico is look- for electronics and construction sourced because they Vice President, Corporate Affairs ing forward to an eventful year, when a financing and construction have ethical funds. They hired SRK Engineering, toured TECK RESOURCES decisions are expected. The company has a strong balance sheet the property and ultimately put the seal of approval for the due to a strong portfolio of royalties and no debt. Speaking about project. the strengths of the project, John Miniotis, VP of corporate development at Aurico elaborates: “The Kemess underground project In terms of future growth demand, had been discovered prior to the formation of AuRico Metals and Asia, and specifically China, continues is located only 6 km away from significant infrastructure at Ke- “to be the major driver of demand for our industry. - David Wolfin, mess South, which we estimate has a current replacement value president and CEO, of approximately $1 billion, providing the project with a huge ad- Avino Silver and Gold Mines ” vantage. We are happy to be active in British Columbia, which is known for its bulk tonnage copper-gold porphyry deposits and at Kemess we have over 12 million gold equivalent ounces in all With steelmaking coal prices surging over the past year, has Teck outlined plans to categories add capacity at its British Columbia sites? With a handful of mines expected to emerge from care and mainte- With respect to steelmaking coal, our focus remains on operating excellence and con- nance, Nicola Mining is a company well placed to profit from these trolling costs to take advantage of the current positive price environment. We have an- developments as it possesses a newly built mill among its assets, as nounced 2017 steelmaking coal production guidance of 27 to 27.5 million tonnes well as mine and milling permits. Together, these have the potential

of serving as a consolidator for small gold and silver mine projects As Canada’s largest diversified mining company, what will be Teck’s main focus 19 elsewhere in the province, as an amendment to the mill permit al- areas over the coming years? 21 In terms of Teck's focus over the coming years, we have a strong internal pipeline of long-term growth projects in stable jurisdictions that we see driving the future growth ” of our company. This includes the Fort Hills oil sands project, in which Teck is a 20% partner. First oil from Fort Hills is anticipated by the end of 2017. We are also advancing our Quebrada Blanca Phase 2 copper project in northern Chile, which is currently moving through the regulatory review process and we could be in a position to make a decision by mid-2018. Nueva Unión, which is currently in the pre-feasibility stage, is one of Latin America’s most significant undeveloped copper-gold-molybdenum projects. This innovative partnership between Teck and Goldcorp combines two stand-alone projects, resulting in one project with a longer mine life at a lower cost and improved capital efficiency.

70% of Teck’s exports are destined to Asian markets. Where do you expect growth in demand for the next years? In terms of future growth demand, Asia, and specifically China, continues to be the major driver of demand for our industry. It is anticipated that China will grow by around 6.5% this year, which is larger than the annual GDP of Switzerland. Sustaining that level of growth will require more of the products we produce. In addition, India is now leading demand growth for steelmaking coal, as their focus continues to be on urbanization and infrastructure that supports increased demand for steel.

Teck achieved an impressive turnaround in the marking during 2016. What makes Teck’s stocks a safe bet for investors? Looking ahead, Teck is in a strong position financially. We have a portfolio of long-life operations, well positioned on the global industry cost curves to perform well throughout the market cycles, and we are advancing a number of world-class, long-term growth projects. Reflecting that view, we have recently doubled the dividend with the possibility of higher dividends at year end, depending on market conditions and company performance. ▬

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Can you provide a brief history and How would you describe the permitting overview of IDM’s Red Mountain proj- process in British Columbia? Can you provide an overview on Avino What are Avino’s plans for Bralorne and ect? British Columbia is one of the most trans- and the company’s operations in British the adjacent properties? We acquired the property in 2014, which parent, fair and rigorous jurisdictions in Columbia? We have other properties in that area, as was the bottom of the bear market. We the world. The stages of the application Avino has been around since 1968, it is a there were all kinds of little mines. We capitalized on the extensive previous work process are clearly delineated. When we family company founded by my father. He think there is still opportunity to find mill that had been done and we identified that file our application, the maximum time was a mining stockbroker and liked to ac- feed that would be processed at the cen- we had an economically viable project. that the regulators can take to give a deci- quire properties near operating mines. In tralized mill in Bralorne. Once we get There has never been any production in sion is 180 days. This is a great advantage B.C., we finalized the acquisition of the more cash flow, we will perform more ex- Red Mountain but you can move 2,500 in comparison to other jurisdictions. The Bralorne mine in 2014. We are very famil- ploration work. We did some drilling after tons per day, as there is some infrastruc- Mount Polley incident has resulted in a tre- iar with our assets, since we have acquired the amalgamation of the mine in 2014. We ture in place. This has really helped our mendous amount of emphasis into proper properties in that district for a very long just issued a new resource assessment last project’s economics. The two best things tailings design and water management at time. Bralorne is made up of three mines, year, which grew. We feel that because of Robert about the ore body are that it is high grade, the provincial and federal level. Teams David which collectively produced over 4 mil- the geological settings of the mines, new it averages 8 and 10 grams per ton, and now set goals that are peer reviewed mul- lion oz. of gold from the Great Depres- discoveries will continue at depth. Of that it is wide and amenable to bulk under- tiple times with emphasis on BAT or best sion years to the late 60s. Other companies course, there are risks, but we are mitigat- McLeod ground mining, averaging from 16 to 40 available technology. It is a very rigorous Wolfin have tried to reopen the mine but have not ing them by spreading out costs, which meters wide. We knew this was going to process. We had to undertake an extensive been successful. We have been working on is an approach we took in Mexico which be a very low cost producer. Capital costs amount of baseline work to make as robust the environmental process but since the worked successfully. We are working to are of about $85 million and we expect our tailings facility as possible. In my opinion Mount Polley disaster, this has taken lon- upgrade, expand and modernize the mill feasibility in or around that range, which B.C. is probably just one of the best juris- ger than initially expected. We have raised at Bralorne by moving the crushing circuit President, CEO & Director is affordable for a junior company such as dictions in terms of regulations. In the case President & CEO and fortified our tailings dam, we have to a separate building which will free up IDM MINING IDM. We are looking at a 1,000-ton per of Red Mountain there are no environmen- AVINO SILVER installed a microfiltration water treatment space in the main mill building enabling day operation and the project should pro- tal sensitivities as there are no fisheries or AND GOLD MINES plant and we are hoping to reopen the mine us to install larger capacity ball mills and 20 duce 80,000 oz. per year. salmon habitats and there are very low en- later this year. more flotation cells. ▬ 21 vironmental risks. When is IDM expected to announce 19 construction? What could the B.C. government do to lows the company to receive material from any point in B.C. Peter Probably in Q4 of 2017 or Q1 of 2018, at foster investment? Espig, CEO at Nicola Mining declared: “We are the only milling TSX.V, NYSE/MKT – Symbol ASM the earliest. We are going to go into con- On the exploration side, the great Cana- facility in British Columbia that owns its land freehold. Aside from avino.com struction ourselves. For this, we have a dian advantage is the flow-through tax owning the approximate 900 acres of industrial zoned land, permit- tremendous team. On the engineering side credit. However, Manitoba and Quebec ting was expedited because the entire site is brownfield. These fac- we are working with JDS Mining and En- have a more competitive flow-through tors were instrumental in expediting the amendment to our M-68 ergy, a boutique-engineering firm that has scheme than B.C. This makes a big dif- mine permit. Environmental impact studies can cost millions of worked on noteworthy projects. In terms ference in terms of investments going to dollars and they often dissuade investors because there is no guar- SILVER & GOLD MINES LTD of financing, since it is an affordable proj- the ground. If the government could help antee of getting a permit. Indeed, since then we have been able to ect with a quick payback, it would prob- with the financing of infrastructure to ac- secure multiple milling and mining partnerships with high-grade “ ably stand a pretty decent debt facility. cess ore projects, it would make many properties.” B.C. is probably just one of the best more projects feasible, as they sometimes A similar approach has been adopted by Avino Silver and Gold jurisdictions in terms of regulations. How would you describe IDM’s market require billions of dollars in development Mines, a company with over four decades of experience in Brit- In the case of Red Mountain there are performance and capital raising efforts? capital. Other than that, I do not think there ish Columbia. Avino holds the Bralorne property in southwestern no environmental sensitivities as there 2016 was a transformative year for the is much missing in B.C. B.C., where it has raised and fortified the existing tailings dam and Resilience. Innovation. Enterprise. are no fisheries or salmon habitats and company. We raised 20 million dollars. We installed a microfiltration water treatment plant as part of the en- A Proven Model for Growth there are very low environmental risks. have three significant corporate sharehold- Can you provide some closing remarks vironmental assessment process. The company has further prop- ers: Kinross, Osisko Mining and Premium for our readership in regards to the Red erties in the region with the aim to consolidate assets. “We have Gold and we are 55 percent institutionally Mountain Project? other properties in that area as there were all kinds of little mines. Expanding and modernizing the Bralorne held by top funds out of Toronto, New Red Mountain is a low cost, low capex, We think there is still opportunity to find mill feed that would be York and Europe. Raising money for this high-grade underground bulk mineable processed at the centralized mill in Bralorne…Of course, there are Mine, historically one of British Columbia’s ” project has not been easy because of the project in a favorable jurisdiction, coupled richest gold operations. risks but we are mitigating them by spreading out costs, which is conditions of the markets but there is sig- with tremendous exploration upside. We an approach we took in Mexico and worked successfully,” declared nificant interest from our shareholders, think 2017 is going to be an even more David Wolfin, president and CEO at Avino. Avino is a successful miner operating in particularly as these projects in Canada transformative year for IDM. Projects like With outstanding natural beauty and a long tradition of environ- Mexico and Canada. are rare. There is a tremendous exploration Red Mountain are extremely rare to find, mental activism, British Columbia has placed special emphasis potential as well, which we will continue anywhere in the world. ▬ on environmental regulations, particularly after the 2014 Mount 2016 Net Income $0.05 per share. to perform. Polley tailings dam disaster. In this regard, environmental ser-

Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations Avino 1/4 p Global Biz report advert 3 (RIE).indd 2 2017-05-18 11:58 AM EDITORIAL Global Business Reports Global Business Reports EDITORIAL

Innovation, Optimization and Automation

Responsible and smarter mining

The Canadian mining industry has for de- tive in the long run. Fortunately, leading on artificial intelligence (AI) with a Deep cades been at the forefront of innovation companies servicing clients in British Co- Learning team dedicated to that effort. It and technological developments. This has lumbia, Yukon, and internationally are tak- currently operates AI via tooth detection proved a major advantage during the re- ing the necessary measures to help clients systems on loaders and excavators and the cent period of low commodity prices, with optimize processes and profit from new company plans to replicate this technology Canadian operators cutting down costs technologies. for autonomous cars in mining operations. through increases in productivity and the Situated inside the University of British Moreover, Motion Metrics is developing adoption of new technologies that make Columbia’s main campus in Vancouver, AI solutions to make the rock fragmenta- their operations more efficient. Commod- Motion Metrics has, for over 15 years, de- tion process (comminution) more efficient: ity prices aside, innovation will be key for livered innovative solutions to the mining “We are using stereo imaging, which gives companies that want to remain competi- industry. The company is currently focused us a 3D measurement of the rock and, 22 25 23

Image courtesy of Strongbow vices providers are helping clients in the sector to mitigate risks from every stage of the mining life cycle but particularly during the planning and development phase, helping them understand and “ comply with stricter government regulations. “The Mount Polley breach certainly put a spotlight on dams and the potential impacts The downturn also brought about a lot of budget cutting. of dam failures… In British Columbia, the government has made Over the past year, I have seen more IT budgets getting risk analyses of dams a top priority and expects the engineering and approved, which indicates mining companies are more operations aspects of tailings facilities to be well understood… The bullish about the market this year. Mining companies are government wants to understand the risks associated with dams in spending money on analytics, visibility, ERPs, and system earlier stages of a project than they did ten years ago,” explained consolidation. Marc Wen, senior partner at Environmental Resources Manage- ment (ERM). Production results in 2016, coupled with the industry’s newly found optimism for development and construction, should bode well for - Sean Bredin, a return of capital influx to British Columbia, as Simon Cmrlec, president of North America at Ausenco, stated: “Ausenco has seen national mining leader, an increase in activity in mining recently, particularly involving BDO Canada early-stage gold and base metal projects. We have a steady stream of work from our main clients and we have seen great opportunities to advance projects in this type of economic environment. There is funding available for the right kind of projects and the right kind of projects will return investment.” ▬

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23 What have been Motion Metrics’ major downturn, 2016 was the best year in our therefore, a more accurate reading. From developments over the past few years? company’s history in terms of revenue. there, all the data is uploaded into a cloud Recently, Motion Metrics pivoted towards We attribute this to a wider diversity of server, which makes it easier to examine a focus on artificial intelligence, and we products and increased accessibility to our the rocks and then scale blasting efforts now have a Deep Learning team dedicated services. We see a significant opportunity up or down,” explained Shahram Tafazoli, to that effort. The purpose of artificial in- across the market to optimize the fragmen- president and CEO at Motion Metrics. telligence is to replicate human reasoning, tation process. In my opinion, comminu- Although Motion Metrics has typically but much faster. We are now in the data tion is far from optimized, and our technol- served larger companies in the industry, labeling phase in which we assign data ogy is applicable across the world. Tafazoli declared that diversification of points to different parts of an excavator’s their client portfolio is a priority: “We shovel, for example. We ultimately want How will you ensure your technology eventually want all mines to access our to replicate the technology behind autono- does not reduce the number of mining technology, therefore, we have developed mous cars in the mining industry. Cur- jobs? a handheld fragmentation analysis device rently, our missing tooth detection systems Our ultimate goal is not to eliminate jobs, that has nearly doubled our customer base for loaders and excavators already operate but rather to enhance the quality of the because it is a much simpler, more afford- using artificial intelligence. We are also more menial jobs and ultimately make able product. We have also begun selling Shahram bringing artificial intelligence to the rock those employees safer. Safety is a major our system as a service on a subscription fragmentation process. Two to four percent issue in mining, particularly in less devel- basis.” of total global electricity consumption is oped countries. Autonomous and semi- Besides innovations on modularity and Tafazoli attributed to comminution, and our goal is autonomous mining operations mitigate commonality of parts to improve techni- to streamline this process and make it more much of the inherent safety risk. I believe cal service and support, equipment pro- energy-efficient. To accomplish this, we there is a step between human intelli- vider RMS-Ross has focused on provid- are using stereo imaging, which gives us gence and artificial intelligence, which is ing tailored-made recovery systems. “It a 3D measurement of the rock and, there- human-assisted artificial intelligence. This is important to ensure that our customer’s President and CEO fore, a more accurate reading. From there, is where the menial, unsafe jobs will be expectations are in line with ours, so the MOTION METRICS all the data is uploaded into a cloud server, reallocated. There is also a lot of pressure 27 which makes it easier to examine the rocks from investors for companies to increase 24 and then scale blasting efforts up or down. their safety measures and keep their risk 25 We also provide expert opinion and analy- lower. For instance, we are already seeing sis as a service. Comminution is five times autonomous trucks and drills in the mining more expensive at each stage of the frag- industry. mentation process, and our experts make “ sure the comminution is optimal before Have you felt the effects of the uptick in moving onto the next stage. Eventually, the mining market? our crushers and conveyor belts will be We are well-known for being a non-min- Gekko’s background is strongest in able to read the rocks and send this data to ing industry company developing mining gold and silver, and our plants are the cloud. We are also aggressively moving technology, and have a loyal base of cus- typically in demand at sites that are in the direction of autonomous mining, and tomers. The uptick has been apparent, but remote or difficult to access. The we aspire to be a key player in this space in Motion Metrics performed well throughout the next few years. the downturn regardless. We like to keep modular nature of our plants makes “Currently, our missing tooth detection a mix of employees from both mining and them nimble and easy to construct. systems for loaders and excavators What is your strategy to reach out to non-mining backgrounds because we want already operate using artificial smaller mining companies? to be exposed to a number of different per- intelligence. We are also bringing Motion Metrics’ main focus has tradition- spectives and keep in touch with the latest artificial intelligence to the rock ally been on larger companies because that advances in the broader tech industry. Now, - Greg Rasmussen, fragmentation process. Two to four segment of the market is more lucrative. however, we are at a stage where we need vice president of However, we eventually want all mines more mining experts to train our artificial percent of total global electricity sales and operations, to be able to access our technology so we intelligence. In the mining market, we have Gekko Systems consumption is attributed to have developed a handheld fragmentation recently noticed more openness to new comminution, and our goal is analysis device that has nearly doubled our technology and more of a need for mining to streamline this process and make it customer base because it is a much simpler, companies to improve their efficiencies. more energy-efficient. more affordable product. We have also be- Good ore is getting increasingly difficult to gun selling our system as a service, as op- access, and technology is needed to do this. posed to just the device, on a subscription Certain technology companies likely did basis. Half of our staff is allocated toward not feel the same effects as other types of ” research and development, with a particu- service companies during the downturn, as lar focus on product development and ex- mining companies used that time to focus panding our market. Despite the mining on innovation and increasing efficiency.▬ Image courtesy of Skeena Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations” INTERVIEW Global Business Reports Global Business Reports EDITORIAL INTERVIEW

How did RMS-Ross adapt to the global How does RMS-Ross compete with 25 mining downturn? large, international companies that now equipment that we provide is used in the RMS-Ross decreased manufacturing em- operate and sell in North America and best manner and that the recovery system torically fully leveraged it for the mining ployment, but we kept all of our engineers. abroad? is designed around properly conceived industry. At the start of 2016 we reorga- Typically, engineers are very busy supply- There has recently been huge promotion mineralogical test work. The main goal is nized our business such that we now have ing the manufacturing team with drawings and advertising by Chinese manufactur- to help customers advance their projects a mining unit as a global operating com- and modifications. With a decrease in or- ers, which profit from much cheaper labor in the most efficient and effective manner ponent of the company, in order to serve ders, however, the engineers had time to costs. Our products are generally more possible for their success,” stated Scott our mining clients better. Our clients op- completely redesign and revamp our prod- expensive than Chinese products, but they Plummer, president at RMS-Ross. erate globally, so it is natural for us to do uct lines. We fully used any spare time to are also generally much higher-quality. While technology remains one of the main the same. This has improved the way we consult with our customers who had been Customers all over the world understand driving factors in optimization at produc- share resources, expertise and knowledge using our products over different periods that Canadian equipment companies make tion sites, companies are looking at inno- to bring the right people regardless of the of time. We determined any issues at all high-quality products that are superior in vative, yet simple ways to enhance optimi- geography for any project. Scott that they had in their applications, as well design and also are built more robust to zation. Montreal-based BBA has focused as modifications that would improve our last longer, and are as a result, much more on presenting its clients the best strategy Andrew How has the industry responded to the products and their ease of use of these cost-effective in the long-run. The fact that to make the most of existing resources and Mount Polley disaster? Plummer systems. The engineers then took this our products are long-lasting also makes it infrastructure. “In our front end studies Haynes AH: We have certainly seen the impacts on feedback and created entirely new updated easier on our services team and saves our mining division, we ensure that we op- the industry post-Mount Polley. We have designs. customers on operational costs. timize the operating costs of the project played a key role in the remedial works As a result, we were able to make our as those are often more important to the at Mount Polley, and helping the mine products more modular, which increased Which innovation trends have you no- overall project economics than the initial recommence normal operations. Addition- capital. We usually review the project’s President the ease of assembly. Modularity implies ticed in the mining equipment industry? VP Mining North America ally, we are working with our other clients, highlight opportunities that would help RMS-ROSS CORPORATION ease of manufacturing, as well as shipping, In addition to modularity, commonality of GOLDER ASSOCIATES looking at their tailings facilities, reducing and assembly, which makes things easier parts, and increased robustness, a popular us to compress the footprint of the proj- risks, and improving the performance of 26 for both the customer and the manufactur- trend in the industry is preemptive prob- ect and enhance overall optimization…for their facilities. In B.C., the industry has 27 ers. We focused on creating a commonality lem solving for customers. For example, example, we have helped clients reduce developed a stronger appreciation that of parts to greatly reduce the overall num- we sometimes receive high quality labo- energy costs by performing ore sorting successful tailings facilities require a com- ber of parts required for different products. ratory test results that have been carried and separation as early in the process as bination of good design, good operating This simplifies the assembly and reduces out by a customer, but that have not been possible, as crushing and grinding are very practices, strong stewardship, and ongoing the number of spares required. thought through in a process methodol- energy-intensive…our team is often called interaction between the designer and user. ogy and therefore do not provide us with to help our industrial clients across Canada It is a process that evolves progressively Where have you seen the biggest pickup any of the information required to design to implement innovative control strategies and cooperation is needed. in projects over the past year? an optimal recovery system. We want to to reduce costs or improve quality of re- The largest increase of RMS-Ross’ new be able to recommend a body of test work covery,” declared Colin Hardie, director How has Golder integrated the environ- project complete recovery system sales that gives us clear insights and knowledge of mining and process studies, Mining and mental component into your projects? have come from Canada, which is differ- and allows us to scale logically from lab Metals, at BBA. AH: This is not a new thing for us; we have ent for us. We have projects all over the work and pilot test work to full scale op- On the exploration front, survey and geo- Can you provide an overview of Gold- been on this path for a decade and believe “Now, we are building several complete world, in over 60 countries, but before last eration. It is great to have an elemental physics companies have noted behavioral er’s current operations in B.C.? we are one of the few consultants that are mining circuits for British Columbia, year, it had been awhile since we had many analysis, but we need to know particle changes from their clients as they become AH: We have a broad range of projects, in- effective at truly integrating environment which are some of the most exciting in Canada, and especially in British Co- size breakdowns, where certain values lie, more risk-averse amid volatile market cluding those in operating, expansion, and and engineering. Our approach is such projects we have ever seen. Most of lumbia, apart from selling certain compo- and how to separate certain elements. We conditions. “Before, our clients from the planning stages in British Columbia, the that we start with the desired environment mining sector used to purchase our servic- the instances began as gold projects, nents. Now, we are building several com- need to know that our equipment is going Northwest Territories and Yukon. We serve outcomes and this drives the engineering. es before they started mine planning and these projects from several offices, and our but through advanced laboratory plete mining circuits for British Columbia, to work in a customer’s application before We have been successful in a number of which are some of the most exciting proj- selling it to them. It is important to ensure the feasibility study phase, but now they Vancouver office also serves the global projects that integrate these components testing and separation work, we were ects we have ever seen. Most of the in- that our customer’s expectations are in are asking for our services before they put market, given Vancouver’s importance for and our clients benefit from this process. able to identify whole new streams of stances began as gold projects, but through line with ours, so the equipment that we a foot on the ground,” stated James Hume, the mining industry. We are running proj- When you get the design right from the be- profit centers that would have advanced laboratory testing and separation provide is used in the best manner and that president at Eagle Mapping, a survey com- ects across the globe from Vancouver in ginning, integrating the right components, otherwise gone to tailings ponds. work, we were able to identify whole new the recovery system is designed around pany specialized in Lidar technology. collaboration with our colleagues in Latin it accelerates the permitting process and streams of profit centers that would have properly conceived mineralogical test At a time when capital raising remains a America, Australasia, Europe and Africa. costs go down. otherwise gone to tailings ponds. In sev- work. The main goal is to help customers difficult task, companies want to limit their Moreover, every step of the design needs eral cases, almost all of the heavy mineral advance with their projects in the most ef- risk before embarking on a drilling pro- How does Golder benefit from its global to be focused on what the closure and post- concentrates can be separated through a ficient, effective manner possible for their gram. Skytem, a survey company, aims to presence in terms of sharing knowledge closure outcome will be. There is zero tol- ” help clients reduce this risk: “Realistically, series of advanced separation approaches, success. ▬ and expertise? erance for short-term resource exploitation to be as many as 7 or 8 different high grade our confidence level for targeted drilling AH: We have had this advantage for a long leaving long-term liabilities for tax pay- pay products. from data modeling averages about 60 to time. In some ways, I think we haven’t his- ers. ▬ 28

Image courtesy of Copper Mountain First Nations

A future of cooperation

Together, British Columbia and Yukon are becomes of utmost importance. Speaking “Triton has worked cooperatively for over home to 212 First Nations, jointly concen- about this, David Wolfin, president and 25 years with First Nations throughout trating the greatest diversity of aborigi- CEO at Avino Silver and Gold Mines, said: B.C. and the Yukon territory. This has led nal cultures in Canada and representing “To address the labor shortage, over the last to formalized business partnerships with roughly one-third of all First Nations in the two years, we have focused our attention a number of First Nations communities, country. This great diversity and heritage on education and training. In conjunction and these relationships are mutually ben- are source of regional pride and showcase with North Island College, Sandvik, and eficial… Mining companies are becoming the cultural richness of these jurisdictions. with funding coming from the provincial more sensitive toward First Nations land Given the region’s long history of mining, and federal government, we have success- claims and traditional territories, and it relations between First Nations and the fully held two underground mining training benefits them to engage members of the industry date a long way back with highs cohorts for members of the local First Na- local communities in both the assessment 28 27 and lows over time. In British Columbia, tions Communities. Thus far we have had and permitting phases as well as the con- 29 70% of being able to select drillable targets. Having two separate tensions between the mining sector and 22 graduates complete the program, and we struction and operational phases,” declared dipole moments allows for very high resolution mapping from First Nations have been particularly scru- have begun hiring them at the mine.” surface to depth. Additionally, the preliminary data inversions we tinized, often disregarding the progress in Avino is looking to restart operations at collect are returned to our clients within 48 hours of flying. This is negotiations over time and the changing its Bralorne mine and is currently working particularly important in remote locations as it allows companies approach of companies toward First Na- with Thompson Rivers University, North “ tions groups. Efforts to ameliorate relation- Island College, the Center for Training Ex- to make quick decisions about whether or not to expand the sur- I support comprehensive agreements ships have involved provincial and federal cellence in Mining and other mining com- vey over areas of interest before the aircraft and field crew leave that involve the provincial and federal the survey area.” explained Gary Tipper, regional sales manager governments, namely the B.C. Treaty Pro- panies to develop a B.C.-wide accepted governments as well as First Nations at Skytem. cess, with roughly 70% of First Nations curriculum on underground mining. Similarly, Quantec Geoscience, a company specialized in devel- engaged. Contractors and service companies have governments. These parties need to CAN’T AFFORD TO GET IT WRONG? oping DC resistivity IP chargeability (DCIP), and magnetotelluric The governments of Canada and Yukon also placed special emphasis on hiring lo- get together to agree on all aspects (MT) systems, noted that companies want to extract as much data have settled 11 agreements, three of which cals wherever they operate. An example of of each different case. Examples that JUST ASK GOLDER. and information as possible before taking their projects forward: are outstanding, with First Nations. Land this is Atlas Drilling, a Kamloops-based these negotiations can be successful “Clients ranging from major mining companies to small junior claims in this territory provide First Na- company that has worked in major projects include the Squamish Woodfibre LNG miners have embraced the innovative survey systems for DCIP tions with access, rights and obligations throughout British Columbia. “Particularly proposal. and MT acquisition. As a result, the systems have been deployed to land and resources, providing more in remote areas, Atlas tries to hire locally Complex geology, remote sites and regulatory approvals are for exploration programs all over the world and the demand for certainty regarding land management and and hold local onsite training sessions. just some of the challenges faced in mining projects. these types of survey has continued to grow,” declared Robert resource development. Although sources When we began working at the Red Chris - Dave Porter, Integrating your engineering and environmental studies can of tension with the mining industry have mine, we held training sessions with Im- Hearst, chief geophysicist at Quantec. CEO, result in a more robust design and can streamline the planning arisen in the past, disputes are rare, thereby perial Metals for the local First Nation… Developments on big data and AI obey the needs of clients for First Nations Energy and Mining process, avoiding unnecessary delays and costly rework. real-time data access in order to make the necessary decisions facilitating the entry of companies to this At the time, we had half of our crew from Council of British Columbia at mining sites, regardless of the stage along the mining value territory. First Nations employees from this program Let Golder’s global team of over 1700 mining consultants help chain. Therefore, we expect important innovations on this front Mining companies recognize the impor- working for us,” declared Jamie Lyons, you advance your project along the right path. for years to come, particularly in British Columbia, which for tance of engaging with First Nations and owner at Atlas Drilling. decades has developed a reputation of a mining innovation hub. local communities and understand that With mining companies becoming increas- Important clusters for the industry have been developed in greater cooperation is beneficial for everyone- in ingly aware of the importance of engage- Vancouver, from environmental services to artificial intelligence volved. In certain areas of British Colum- ment with First Nations from the early [email protected] applications, the city will stand as a major mining innovation hub bia and Yukon, labor shortages can cause stages of a project, EPCMs and consulting www.golder.com for the foreseeable future, ready to export its technologies to the delays in taking projects forward, and companies rank First Nations relations as world. ▬ therefore fostering trained and skilled labor one of their main competitive advantages.

John Rithaler, senior environmental scientist at Triton What have been the key topics of en- of fear. To overcome those fears, we had Environmental Consultants. gagement between the Tahltan Central three rounds of meetings. After the tailings In recent years, there have been encouraging develop- Government and the mining industry? pond issue, we took our scientific experts, ments showcasing the fruition of negotiations between Over the past year, we have pursued thor- negotiators, lawyers and representatives governments at every level, the industry, and First Na- ough communication agreements with ex- to speak about how we were changing the tions, serving as a reminder that involvement of every ploration companies by which we have set agreement to enhance the environmental stakeholder and party is of paramount importance when the stage for these companies to come into provisions, mitigation measures, and the taking a project forward: “I support comprehensive our communities and meet with all three involvement of the Tahltan people in the agreements that involve the provincial and federal gov- Tahltan governments twice a year, once project. Ultimately, from those changes, ernments as well as First Nations governments. These pre-exploration season and once post ex- the open communication and the benefits parties need to get together to agree on all aspects of ploration season. We also hold a job fair si- package, in April of 2015, they put their each different case. Examples that these negotiations multaneously with pre-exploration season trust in the agreement, as well as our lead- can be successful include the Squamish Woodfibre LNG meetings. We have quarterly newsletters ership, with 87% support in a referendum proposal,” stated Dave Porter, CEO of the First Nations that update members on these projects and vote. Energy and Mining Council of British Columbia. we also have an industry newsletter to in- In fact, companies are so mindful of First Nations rela- form Tahltans which exploration, logging, Have you noticed any behavioral chang- tions that majors increasingly consider previous engage- Chad and tourism companies operate in their es from exploration and mining com- ment with them as a determining factor before acquiring territory, what they are going to be doing panies when dealing with the Tahltan a stake or full ownership of a given project. A notewor- over the exploration season, and what em- government? thy example of this is Goldcorp and its Coffee Gold proj- Norman ployment and contract opportunities there Since I have been involved, the Tahltan ect: “The reserves and prospectivity [of the Coffee Gold may be. We are trying to set things up so government has become much more as- project] were very attractive, but more importantly, the we do things in partnership, with open and sertive with the companies. Every year, management of Kaminak had done a great job in terms Day honest communication avenues. When we as our government becomes stronger, our of reaching out to the communities and the authorities, do it that way there is much less mistrust leadership is becoming stronger as well. A building relationships and addressing any concerns and more sharing of the economic benefits combination of these things has allowed about the project from the beginning… Goldcorp already President of exploration. us to be assertive and build relationships has 22 agreements with First Nations around the country, TAHLTAN CENTRAL and trust with these companies. Across the 31 which has helped build the long-term partnerships to op- GOVERNMENT Do you think the current training and board, we have seen exploration compa- erate our projects,” declared Brent Bergeron, executive government initiatives to empower the nies more willing to enter agreements with vice president of corporate affairs and sustainability at Tahltan people are sufficient? us because they see the value in the agree- Goldcorp. I cannot speak of federal or provincial ments and the value in having a partner- Although the synergy between the industry, government initiatives. However, last year we created ship with the Tahltans. and First Nations shows increased dynamism, nego- our own employment and training depart- tiation processes can still be improved. Robin Junger, ment called TahltanWorks, through which What further benefits would you like to national co-chair, Aboriginal and Environmental Law we are setting up a lot of our own train- see in impact agreements in the future? Groups at Mc Millan LLP explains: “We at times see a ing and employment initiatives. The fact I would like to see more co-management considerable degree of inconsistency in how the govern- that we have started our own department benefits that would eventually lead to com- ment implements its legal duties to First Nations. Since is going to be a huge benefit to the Tahl- plete management by First Nations. I think the ability to negotiate successful deals with First Na- tan people and I give credit to our Tahltan the economic benefits could increase, es- The world’s leading tions is directly correlated to the government’s position Central Government for its creation. Our pecially on the contracting side. With a on permitting, we believe it is essential for the govern- “I think the economic benefits could goals are to make sure that as a nation, we Nation like ours, that has its own corpo- ment to have a solid decision making process and to stay increase, especially utilize as many opportunities as possible. ration with amazing operators and people global provider out of the private negotiation altogether.” on the contracting side. With a We want to have the highest employment who know the land best, I would like to Governments have successfully completed major in- Nation like ours, that has its own of any First Nation in the province and in see our people taking on the bulk of the frastructure projects in the busy Golden Triangle area, corporation with amazing operators the country. contracts. largely through cooperation with First Nations. These and people who know the land best, I of EHS, risk and projects will ultimately bring about the economic op- Could you elaborate on how the Tahl- Do you have a final message for the min- would like to see our people taking on portunities that local communities need. In Yukon, simi- tan people and the Red Chris mine were ing community in British Columbia and lar infrastructure developments will be required to take the bulk of the contracts. able to come to an agreement after the our international readership? social consulting projects forward. For these, First Nations cooperation opposition and demonstrations in 2014? The Tahltan Nation is an excellent ex- will be imperative, but encouraging precedents indicate Many of the Tahltan people knew about ample of an indigenous group in British services these will materialize in the coming years. the Red Chris mine from the early stages, Columbia, Canada, and the world, that is Security of investments, legal certainty and stability are ” however, we did not get an impact benefit building a good system to work with the B.C.’s and Yukon’s main competitive advantages. The agreement until after the mine was built, industry and create more certainty for all fact that First Nations are increasingly receptive of min- which was an oversight by the former stakeholders from an early stage; the key ing projects fosters encouraging prospects for the indus- leadership. When I came on board, after to this is having open communication, re- www.erm.com try and their communities, thereby pointing to a prosper- the mine was built, there were tailings spect and entering mining ventures as part- ous future for both parties. ▬ issues at Mt. Polley, which caused a lot ners rather than strangers. ▬ The business of sustainability

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EXPLORATION IN B.C.

“This jurisdiction is politically and environmentally stable, and is very favorable to work in. There is very little risk and our projects are cost effective. These characteristics are very well received by the markets.”

- Andrew Bowering, chairman and director, ML Gold Corp Image courtesy of Skeena EDITORIAL Global Business Reports Global Business Reports INTERVIEW

Image courtesy of Skeena

Exploration activity in British Columbia with the new provincial government in addi- is set to increase in 2017 following three tion to the BC mining exploration tax credit, Exploration in years of stagnant activity. What are the which encourages corporate investment in driving factors behind this increased dy- mineral exploration. We will continue to namism? advocate for those strong economic support British Columbia We are proud of British Columbia’s long, mechanisms. rich history of exploration and development. The sheer knowledge and expertise available During the downturn, financing for grass- across the Province that is housed in more roots exploration projects was scarce, with than 800 mineral exploration and mining industry analysts predicting a shortage of companies, service and supply companies this type of projects in the pipeline over and academic institutions is a huge advantage the coming years. Do you think this is ac- A dearth of financing has not prevented some and when that comes together with higher curate? What is your assessment on early- successful exploration from taking place and prices for metals (particularly for gold, cop- stage exploration projects in B.C.? drillers are gearing up for a busy season per and zinc), we see expanded exploration The downturn – perhaps surprisingly - has in British Columbia. As an association rep- brought about a renaissance in grassroots- Edie resenting mineral explorers active in British stage mineral exploration according to data Columbia, we work hard to ensure our mem- collected by the province of BC in collabo- bers have fair access to the land base and also ration with AME and EY. Our 2016 survey Thome have all available tools to help them make the demonstrated that 73% of respondents were Over the past three years, attention has largely centered on the best choices related to safety, health, environ- focused on grassroots or early stage explo- struggles of British Columbia’s mineral exploration sector, as the mental protection and respectful engagement ration. Investment in this type of explora- number of juniors established in the province has decreased by of local communities and Aboriginal peoples. tion has increased from $49 million to $57 roughly 30%, thereby reflecting the state of the global mining in- million between 2014 and 2016, although dustry during this time period. Nonetheless, exploration projects President and CEO What are the main deterrents for explora- spending in advanced exploration declined in B.C. have silently moved forward and are increasingly garner- ASSOCIATION FOR MINERAL tion in British Columbia as expressed by from $290 million to $148 million over the ing attention from investors both local and overseas, drawn by the EXPLORATION AME’s members? same time period. What we have also noticed 36 advantageous conditions that this jurisdiction offers. Many issues have been resolved over time is that companies with established projects – 37 with the guidance from our members. AME including Pretium at Brucejack, IDM Mining will continue to listen to members and col- at Red Mountain, Seabridge Gold at KSM The Start of a Busy Season laborate with regulators, First Nations and and AuRico Metals at KSM – are also invest- stakeholders to find solutions to current- is ing in further exploration in areas that may After leaving behind what was a harsh winter in British Colum- sues. I believe that our members want fair, be many kilometres, or at the very least a he- bia, in 2017 the industry is preparing for what promises to be balanced and workable solutions. Predict- licopter ride, away from the main deposit but the busiest drilling season over the past four years. It is no news ability and clarity on the regulatory pro- show very promising geology. that exploration activity has seen brighter days, but improving fi- cesses are important. A general, fact based nancing conditions, major infrastructure developments, and gov- understanding of the importance of success- For over 100 years, AME has supported ernment incentives have helped juniors and producers push their ful mineral exploration to responsible mining the industry in the province. What are exploration programs forward. and the value that that brings to Province and your prospects and goals to keep the as- Market developments over the past 12 months and forecasts for communities is imperative and a goal of the sociation’s record over the coming years? the upcoming year have also helped buoy investors’ sentiment. Association. Tax structures that allow ex- The AME staff, with guidance from our vast Copper, which accounts for roughly 8% of B.C.’s exports, has “ ploration and development to continue with and accomplished membership, the Execu- experienced a surge of over 30% in its price since hitting an all- Investment in [grassroots or early certainty are also an area of focus for AME tive Committee and the Board will refresh time low of $1.94/lb in January 2016. Analysts expect this spike stage exploration] has increased from currently. our Strategic Plan for a three-year period that in copper prices to continue throughout 2017 and are even more $49 million to $57 million between will begin in September 2018. Until then, and bullish in the long run, as global demand for electric vehicles 2014 and 2016, although spending in How is the government cooperating with in this upcoming year, we will focus on some accelerates, together with China and India’s middle class expan- advanced exploration declined from the industry to foster exploration activity? key areas of the current 2013-2017 Strategic sion. Gains in gold prices, currently hovering above the $1,200 $290 million to $148 million over the In addition to collaborating with industry Plan. AME will continue to support a healthy mark, have also attracted exploration dollars to B.C.’s prolific same time period. on solutions to ensure reasonable access to industry by working collaboratively on fair northwest, a region of striking beauty and immense gold reserves. land, the BC government has invested in both and reasonable access to land for exploration Following four years of steep declines, coking coal prices have geoscientific research through its own BC purposes, to ensure appropriate economic rebounded since 2016, reaching levels last seen in 2012 amid sup- Geological Survey as well as through a great mechanisms are available and to further in- ply concerns from Australia and policy changes from the Chinese ” not-for-profit organization, Geoscience BC. clusive Aboriginal relationships across the government. Even more encouraging is the performance of zinc. Previously, the BC government has partnered Province. And of course, we will throw an Following a gain of 60% in 2016, this commodity has contin- with the federal government on its super-flow annual Roundup conference that you just ued its honeymoon with the markets, buoyed by limited supply through share program, which provides a tax can’t afford to miss – we look forward to and higher global demand. These developments have raised the credit for individuals investing in mineral ex- hosting 6,000 from at least 40 countries from economic feasibility of projects in B.C. From copper porphyry ploration, and we expect this to be continued January 22 to 25, 2018 here in Vancouver! ▬ 38

Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations Image courtesy of Skeena EDITORIAL Global Business Reports Global Business Reports EDITORIAL “ “ Companies are coming back to Canada, where Companies also want on-demand and customizable data reporting. exploration has been picking up lately. Geopolitical risk People are becoming increasingly aware of the importance of data, and security are becoming more of an issue as of late and particularly in mining, where data is an exploration company’s primary companies are shifting their attention to deals that are asset. secure in the long run.

- Warren Carvey, - Harlan Meade, business development manager, president and CEO, acQuire Technology Solutions Copper North Mining

36 ” environments to high-grade gold deposits, the wider northwestern region of B.C., an velopment to this previously remote area, the region’s attractiveness for investors. “Before the Sprott invest- provide maximum leverage to the gold price. We do that through” exploration activity is heating up in this ju- area that is known for housing some of the particularly from the mining sector. ment, our only realistic way forward was to define a reserve on a the concept of increasing our gold resource ounces on a per share risdiction, raising expectations for the new province’s most important mines, mainly Government incentives, namely the min- small portion of the property, go into production on that and use basis. If we raise funds for drilling or acquisitions, we expect to discoveries that the industry desperately the Premier Gold mine, Snip and Eskay ing flow-through share tax credit, which the resulting revenue to explore the rest of the property. Now, we offset the equity dilution with accretion to ounces. We have been needs. Creek mines. A spur line, the Iskut exten- allows individual investors to claim an in- have the luxury of being able to keep exploring first, which is less successful on this objective for almost 18 consecutive years,” The 2015 completion of the Northwest sion was completed in 2015, extending come tax credit of up to 32% when buying dilutive and our preferred route…we think that with the under- stated Rudi Fronk, chairman and CEO at Seabridge. Transmission Line, a 229 KW project ex- further north to the Tatogga Lake Substa- shares in mining exploration companies in ground drill program we can come up with a near term high-grade Earlier stage projects will also enjoy a busy season. OK2 is extending 344 km from the Skeena substa- tion. Together, these projects represented B.C., has also been largely beneficial for underground operation. This will be our focus for 2017,” declared pected to complete approximately 3,500 meters of RC drilling 38 tion near Terracem to a new installation at an investment of over CAD$900 million juniors and has helped sustain exploration Robert Evans, CFO and director at Ascot Resources. and perform preliminary diamond drilling of up to 2,000 meters 39 Bob Quinn Lake, has boosted prospects for and are expected to attract industrial de- activities during the downturn. Nearby, positive results continue for Seabridge at its KSM proj- on the West Zone of its Pyramid property, located north of the ect. With reserves reaching almost 39 million oz. of gold and just over 10 billion tonnes (mt) of copper, Seabridge is now looking Attention Shifts Northwest to expand its Iron Cap zone at KSM, already the world’s largest undeveloped gold project. Results at Iron Cap from 2016 yielded The so-called Golden Triangle in north- a gold grade of 60% higher than the existing gold reserve grade western B.C. will host the most extensive and a copper grade 20% higher than the current copper reserve drilling programs in the province. Over the grade. New discoveries this season will continue to add value to past decade, this region has attracted the Seabridge’s shareholders, an important focus for the company bulk of exploration investments and has throughout the development of KSM. “Our strategy is designed to seen major projects move forward, such as IDM’s Red Mountain, Pretivm’s Bruce- jack and Seabridge’s KSM. Ascot Resources’ plans for this season in- “ clude 120,000 meters of surface drilling to The terms of the joint venture deal with Antofagasta are establish an initial 2 to 3 million oz. high- mutually beneficial. They are grade gold resource at its Premier/Dilworth receiving 500 square kilometers of prospective ground in property. An additional 20,000 meters of the Golden Triangle. It is a 13-year deal, and if Antofagasta underground drilling will explore grass- goes to the end of that term, there is an average of $3 roots targets in the northern portions of million in expenditures each year. the property. Ascot’s program will be one of the most extensive in the province this year, with the company eyeing an eventual - Paddy Nicol, 10 to 20 million oz. gold resource. The president & CEO, property’s privileged location, together Evrim Resources with significant resource potential and the company’s advantageous assets, led to a $20 million investment from Eric Sprott last year. This investment altered Ascot’s plans at Premier/Dilworth and showcases

Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports Global Business Reports B.C., YUKON AND VANCOUVER” AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations EDITORIAL

“ Activity has centered in the north of the province and into Yukon and the Northwest Territories. Companies are looking for the next big mine and since most of the bottom half of the province is thoroughly explored, attention has focused in the north. I think this trend will continue in the coming years.

- James Hume, president, Eagle Mapping ” Golden Triangle region. The company has already spent roughly $4 million in exploration work, using the most successful techniques for porphyry exploration in the Quesnelia Terrane, where the province’s largest copper-gold porphyry deposits are located. OK2 will also con- duct a detailed evaluation of its Kinskuch property, consolidated in October 2016. On taking the project forward, James Currie, president and COO commented: “Small work programs were done at Pyramid 40 every year starting from 2013, but because of adverse mining conditions, most of the funding came from the officers and directors of the company, as well as friends and family. Every work program has resulted in the discovery of new mineralization and we now realize that Pyramid is a large copper-gold porphyry system”. Likewise, Aben Resources expects a busy drilling season at its For- rest Kerr property. Previous exploration work at the property had focused on finding a VMS style of deposit but the region has opened up to structurally controlled hydrothermal high-grade quartz systems, following Pretivm’s success at Brucejack. Over 100 holes have been drilled in the three properties that now make up Forrest Kerr. Aben has already assembled this information into a single data compilation study and this year’s drilling program intends to concentrate on three areas to confirm results from previous work, which includes a historic hole that intercepted 22.4 g/t gold over 11 meters in the northern area of the property. Jim Pettit, president and CEO at Aben, highlighted the importance of previous work performed in properties across B.C., as well as the advantages of operating in the province: “[B.C.] offers stability, which is a key point, together with the geography. Another advantage is the quality of the people that you find. If you are going to perform exploration work, you definitely want to find projects that have a history and lots of data, which you can remodel and use for future work. It is important to have projects with background, as pure grassroots projects are tough to sell unless there is a very strong market sentiment. Similarly, Metallis Resources has assessed geological and geochemical data for its Kirkham property, where the company will perform a summer drilling program to identify porphyry and shear-vein targets. Fiore Aliperti, president and CEO at Metallis, is positive about the company’s prospects for this year and has highlighted the potential at Kirkham, situated just 20 kilometers from the famous Eskay Creek 42

Industry Explorations EDITORIAL Global Business Reports Global Business Reports EDITORIAL

40 mine: “Our team has identified some provincial government is also very sup- of current market conditions, it can be Golden Triangle area in B.C., which is a highly prospective targets. These targets portive through providing mining infra- challenging to secure partnerships, but we new move for us. This is a hot exploration are consistent geologically with two of the structure and developing new geoscience believe that by adding significant value to and mining area; there have been some Jamie most productive deposit types in the Gold- databases.” certain assets we will be able to achieve wonderful discoveries and a lot of explo- en Triangle region... We are very excited at Commander Resources has four prop- favorable terms with multiple partners. To ration activity in the district. We acquired the prospect of having multiple chances to erty assets in B.C., of which the October accomplish this, we intend to add value large district-scale land packages by con- Lyons find an economic deposit on our property Dome gold skarn property is the most ad- in the form of drill data. For this, we pur- solidating lands owned by individuals or capable of bringing substantial returns to vanced. Furthermore, the company’s most chased an RC drill. We believe that during companies that could not afford to keep Owner our investors.” advanced royalty is the Boundary Zone of 2017 we will be able to identify our best going…We amassed all exploration infor- ATLAS DRILLING The importance of historical data, read- its Mount Polley project, currently held by targets for partner-funded advancement in mation and plugged it into our database ily available and integrated by the British Imperial Metals. Commander owns 90% 2018,” declared Brad Peters, president at and Geographical Information system. We Columbia Geological Survey, remains a of that royalty, although production is not Pacific Empire Minerals. have now begun to do some geophysical major advantage for juniors and prospect scheduled until 2026. Prospect generators typically investing work on the properties ourselves”. Could you please give us an overview of Atlas Drilling? generators in the province at a time when Following the downturn in the industry, outside of British Columbia have been With an extensive property portfolio in Since we aquired Atlas Drilling in 2006, we expanded from three rigs to just over 30. data is increasingly considered as an asset prospect generators are looking at innova- lured by the Golden Triangle’s growing British Columbia, Colorado Resources We originally only had skid-mounted drill rigs, but when we purchased F Boisvenu of utmost importance for decision mak- tive ways to add value to their project port- attractiveness and major developments. has good reasons to be optimistic about its Drilling, this gave us underground and fly drilling capabilities which we have expanded ing prior to acquisitions and investment folio in order to lure investors and secure Such is the case of Millrock Resources, properties in the Golden Triangle. During dramaticly. Underground mining has been in higher demand in parts of British Columbia decisions. In this regard, Robert Cam- partnerships. Pacific Empire Minerals has a company with properties in the United the downturn, the company struggled to recently because it is more cost-effective than surface or fly drilling. We operate in most eron, president and CEO of Commander successfully done so by acquiring its own States and Mexico that has entered this keep exploration programs moving for- of the major mines in British Columbia, including Red Chris, Mount Polley, Gibraltar, Resources noted: “Our business model is RC drill and adding value to its properties northwestern region of B.C. Speaking ward but has embarked on the changing and Afton. We also own Interior Helicopters, which makes it easier for us to supply an all particularly effective in British Columbia in the form of drill data. “We are always about the opportunities for the company, tide taking place since 2016. Adam Travis, in one service and a fast parts delivery. Equipment and parts supply is one of the biggest because the government has datasets avail- looking for partnership opportunities but Gregory Beischer, president and CEO CEO at Colorado elaborates on the compa- challenges to operating in remote locations. able that we leverage to find new projects, one of the challenges for prospect genera- at Millrock notes: “We very recently ac- ny’s new gold project, KSP: “The project which is lacking in most jurisdictions…the tors is deal flow and deal terms. Because quired mining tenures in the Stewart, is located in the heart of the Golden Tri- What is Atlas’s competitive advantage? angle, and it is approximately 300 square Atlas relies on our experience, job completion and our cost effectivness for new busi- kilometers. With the completion of $6 ness, but we also focus heavily on safety and enviromental responsibility, which is be- million in exploration work, we will have coming increasingly important for mining companies and their shareholders. Our safety 42 What are the advantages of your Ball Creek joint venture? reached 51% ownership of the project, and budget has seen a significant increase over the years. We have also heard that, with all of 43 The terms of the joint venture deal with Antofagasta are mutually beneficial. They are our goal is to reach 80% ownership. In the drilling expected to happen this summer, there will be a shortage of diamond drills receiving 500 square kilometers of prospective ground in the Golden Triangle. It is a 2014, the British Columbia government’s and crews. Mining companies sometimes buy their own drills when they cannot afford 13-year deal, and if Antofagasta goes to the end of that term, there is an average of $3 geologists visited the site, remapped the the service, but that can end up being more costly without the expertise available from million in expenditures each year. They will earn up to 70% over that time, and Evrim area, and determined that the geology is experienced companies. An added advantage to having so many drills is that we can al- will be the operator of the project for the first five years. The deal really shows that major very similar to Seabridge Gold’s KSM ways replace one very quickly if a signifagant repair happens which cuts any downtime, joint venture partners can be brought into the region, as they are the first major company mine and Pretivm’s Brucejack Mine. De- and this makes us more reliable to our clients. In the process of being very accessible for to enter in the past decade. This is attributable to all of the research and development spite the downturn we have been able to our clients, we are available 24/7. Clients also appreciate the diversity of our equipment, that has taken place in the region over the past few years, as well as the new high-power keep the project in good standing.” and we typically have a drill available for any type of project. If we do not have a drill, transmission line and successful First Nations negotiations. We worked hard to partner Although the Golden Triangle area is still we will get it, and if we cannot get a drill, we will make it. ▬ with a company like Antofagasta that has the financial wherewithal to support a broad based regional program at Ball Creek. Typically, juniors have to drill and hit something significant mineralization right away in order to attract investment.

What are your plans for continued investment in British Columbia? In December 2016, Evrim picked up the Axe project in southern British Columbia. This Paddy project was taken over from a company under distress during the downturn. We decided to invest in high-quality projects that have had good work done in the past but perhaps were not followed up on as a result of the downturn, and the Axe project fits this profile. Nicol We have begun reinterpretation work on the property, and we plan to follow up in the spring and prepare it for a potential joint venture partnership. The Golden Triangle is still very attractive to us, but the uptick in the market has made assets more expensive. Regardless, in British Columbia our focus will remain on copper porphyry targets. President & CEO EVRIM RESOURCES How has the First Nations negotiations process been for Evrim? We believe that a successful outcome can be achieved between First Nations and industry as long as there is a respectful dialogue between both parties. That said, Evrim has a very early-stage presence in the area, and we have not yet begun drilling or carrying out operations of any significance. We engaged early with the Tahltan nation, and we hired a consulting firm to help us facilitate a discussion and negotiation process that we expect will happen soon. ▬

- Adam Travis, CEO, Colorado Resources ” Another major development in this regard property, yielding a perfect donut-shape anomaly, typically asso- yielded impressive results which have garnered attention from the is Antofagasta’s entry to the region. The ciated with large porphyry systems. “The property contains a 7 markets. As a result, EnGold now has a dual exploration focus in London-based major has signed a joint x 6 km IP chargeability anomalous area, with an alkali gold-rich the property with encouraging gold, copper, silver and magnetite venture with Evrim Resources to develop copper porphyry target, similar to the discoveries that led to Red potential. David Brett, president and CEO at EnGold, expressed the Ball Creek property, located just 60 Chris and Mount Milligan. We have identified the structure at the notable optimism on the project’s prospects: “We see our new km. southwest of Imperial Metals’ Red center of the pyrite halo system of 2 km wide, which will be the copper/gold/silver discovery area and the Aurizon Gold zone as Chris mine. Elaborating on the terms of primary target for exploration. We are fully funded to perform our having high grade, low cost underground potential. The lower the deal, Paddy Nicol, president and CEO drilling program this summer, which consists of four 700 meter footprint and capex of underground operations relative to open ” at Evrim noted: “The terms of the joint NQ core holes,” stated Andrew Bowering, chairman and director pit mining has garnered them growing respect in the markets.” dominated by juniors, majors are starting venture deal with Antofagasta are mutu- at ML Gold Corp. 47 45 to become more active in the region, either ally beneficial. They are receiving 500 sq. British Columbia’s location along the Pacific Rim has helped it by new partnerships or existing royalties. km. of prospective ground in the Golden secure investments from Asian powerhouses that regard projects Barrick Gold has worked with Skeena re- Triangle. It is a 13-year deal and if Antofa- in the region as highly attractive given the appetite for commodi- sources since the latter acquired the Snip gasta goes to the end of that term, there is ties of their economies. Last year, Serengeti Resources reached an gold project in March 2016. In this regard, an average of $3 million in expenditures agreement with the Korean trading company Posco-Daewoo Cor- World class, high grade, Walter Coles, president and CEO at Skee- each year. They will earn up to 70% over poration for its Kwanika copper-gold project, located near the city na, commented: “Barrick Gold inherited that time and Evrim will be the operator of Fort St James in central British Columbia. “Daewoo invested low cost, gold and silver the asset when they acquired Homestake of the project for the first five years. The $1.2 million for a 5% direct interest in the project…the invest- in British Columbia’s Mining Company in 2001…[Barrick] is deal really shows that major joint venture ments went principally toward drilling, which yielded some very not interested in a mine that might only partners can be brought into the region, as encouraging results”, stated David Moore, president and CEO at Golden Triangle produce 100,000 to 150,000 ounces per they are the first major company to enter in Serengeti. year, but they will get royalty payments if the past decade.” In the Kootenay Arc region of southeastern B.C., Margaux Re- we go into production. Also, if we make sources is developing its polymetallic property portfolio, includ- a new discovery over 2 million oz., Bar- ing gold, lead-zinc, tungsten, silver, bismuth and molybdenum. rick has the ability to buy back 51% of the Other Golden Triangles Margaux’s four properties stand in close proximity to each other, company at three times our cumulative thereby making it possible to consolidate assets and share infra- expense. The deal was structured as a win- Fortunately, exploration activity is far structure. This model has proved promising for the company. “We win for both companies.” from confined to the Golden Triangle, as are looking to acquire more properties and our aim is to stay with- Skeena Resources envisages a drilling pro- companies look at projects throughout in the region of our existing portfolio and continue to consolidate TSX-V: AOT gram of 15,000 meters of surface and un- the province benefitting from existing in- our core area of interest… Once we bring all of our resources derground drilling at Snip this year, which frastructure, closeness to operating sites under a 43-101, we will then commence a pre-economic assess- should lead to an initial 43-101 resources and vast potential. These characteristics ment followed by a pre-feasibility. We do not have a lot of over- estimate in late 2017. Moreover, during can be found at ML Gold’s Pinnacle Reef head expenditures and our fundraising goes toward groundwork. 1550 – 505 Burrard Street Vancouver, BC V7X 1M5 the second quarter of 2017, the company property, located just 50 km northwest of In 2017, we plan to spend $1 million on drilling at the Jackpot, T. 778-725-1060 filed a technical 43-101 for its Spectrum- Centerra Gold’s Mount Milligan Mine. Bayonne, and Sheep Creek properties,” stated Ryan Bignucolo, F. 778-725-1070 GJ copper-gold project, also located in the The company signed an option agreement vice president of business development at Margaux. contact: Lisa Chapman at Golden Triangle. Skeena is currently eval- with Pacific Empire Minerals to perform Stories of impressive turnarounds are starting to become more [email protected] uating and assessing the development of exploration work on the property, previ- common as the industry leaves behind the downturn. In this re- www.ascotgold.com Spectrum-GJ, which already counts with a ously known as Later. Since then, ML gard, EnGold Mines serves as a noticeable example. The com- preliminary economic assessment. Gold has performed an IP survey in the pany’s Lac La Hache property, in the Cariboo region of B.C., has

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Can you provide a brief overview of OK2? cus on Pyramid. The opportunity to acquire a James Currie & JC: Most of our group had previously worked second project, in Northern BC arose and we British Columbia’s Mineral together with a company called Orko Silver now hold 50 km2 in the Kinskuch Lake area Corp, which developed a large silver project at the south end of BC’s Golden Triangle. In Exploration Tax Incentives George Cavey in Mexico that was sold to Coeur Mining in the fall of 2016, we decided to re-brand the 2013. After Orko Silver was sold, the group company and we came up with the OK2 name JC: President and COO acquired a shell called Gold Jubilee Capital as a link with the old Orko Silver. Interest- GC: Vice-President Exploration Corp. and started performing grassroots ex- ingly, Orko’s old trading symbol “OK” was Jonathan Buchanan, a recent PDAC survey stated that flow- Inclusion of Costs Incurred for OK2 MINERALS ploration work in the Golden Triangle area of still available, so we were able to secure that Director, Information & Public Affairs, through shares and the associated federal Environmental Studies and Community northern British Columbia, on what is now the as OK2’s trading symbol. Association for Mineral Exploration METC for individuals are critical to their Consultations 186 km2 Pyramid property. Small work pro- survival and a direct incentive to attracting grams were done at Pyramid every year start- What type of existing infrastructure is and sustaining further investment. The Association for Mineral Exploration ing from 2013, but because of adverse mining ready for use at these properties? British Columbia’s tax incentives for Furthermore, 61% said the dollars raised (AME), together with the Prospectors conditions, most of the funding came from the GC: Kinskuch is located just north of the old mineral exploration are available to have led to new discoveries, providing & Developers Association of Canada officers and directors of the company as well Kitsault molybdenum mine, there is a road and individual investors as well as corporations, economic stimulus in typically more (PDAC) has advocated for the inclusion as friends and family. Every work program has a hydro dam that service the area as well as active members of partnerships and remote areas of the country that include of costs incurred for environmental studies JC resulted in the discovery of new mineraliza- other logging roads east of the property. High- individuals conducting grassroots mineral Aboriginal communities. and community consultations as CEEs tion and we now realize that Pyramid is a large way 37 is located within the western edge of exploration. Such tax incentives have Although these tax credits are aimed eligible for both provincial and federal tax copper-gold porphyry system. At the time, we the Pyramid property and the new BC govern- facilitated mineral exploration across at Canadian investors, the ensuing incentives. This eligibility was recently were also looking for opportunities abroad but ment financed powerline to the new Red Chris British Columbia, but particularly in areas exploration increases the companies’ confirmed in January 2017 through the GC we ultimately decided to forego them and fo- mine is only 100km south of our property. ▬ such as the province’s Golden Triangle attractiveness to overseas investors as revision of federal legislation to include in 45 and other remote areas. well. Both the BC MFTS and the federal the definition of CEE: Also in southern British Columbia, Evrim Resources is involved of Atlas drilling, stated: “The market is certainly more optimistic METC have been renewed annually via the “…an expense incurred for environmental in early exploration work at its 100%owned, 50 km2 copper-gold this year compared to the last few years and there appears to be Individual Tax Credits – Flow-Through provincial and federal budgets, as they are studies or community consultations… Axe Project, located 30 kilometers north of Copper Mountain’s more money circulating around the sector. There may be a bit of Shares seen as a vital component of government to obtain a right, license or privilege for namesake mine. The company highlights the property’s favour- a lag this year but, by 2018, drillers should be back to making support of the mineral exploration and the purpose of determining the existence, able location, together with promising mineralization to attract money. There are a lot of great projects in British Columbia that 46 47 Flow-through shares are seen as a uniquely development industry. All major parties in location, extent or quality of a mineral partners for its development, as Evrim has successfully done for have had great drilling results but not enough funding, so hope- Canadian way to attract investment in both the federal 2015 election campaign resource in Canada.” Further, the Canada its projects. Paddy Nicol, president and CEO at Evrim explains fully they are able to move forward soon.” ▬ resource development. The incentive and the British Columbia 2017 election Revenue Agency released updated the company’s rational behind the Axe acquisition: “We decided program allows a company to fund its campaign, for example, pledged their guidance as to the application of these to invest in high-quality projects that have had good work done qualifying Canadian Exploration Expenses support of flow-through shares in their rules for Canadian taxpayers. in the past but perhaps were not followed up on as a result of the (CEEs) through an individual’s investment platforms. AME supports and applauds the changes to downturn, and the Axe project fits this profile. We have begun in shares in the company incurring the federal legislation allowing for exploration reinterpretation work on the property, and we plan to follow up in expenses by flowing those CEEs to the Corporate Tax Credits companies to include certain environmental the spring and prepare it for a potential joint venture partnership.” investor directly to deduct against other and community consultation costs as Optimism amid increased activity from mining companies and individual taxes. In addition to the CEEs, Corporations and active members of CEE. The tax incentive programs offered juniors has already reached service providers. Atlas Drilling, a the individual receives a tax credit at both partnerships conducting grassroots mineral and the amendments to tax legislation company that has performed work in most of the major mines in the federal and provincial level. These exploration in British Columbia may are a clear recognition by the federal B.C. such as Red Chris, Gibraltar and Afton. Jamie Lyons, owner are commonly referred to as “super flow- qualify for tax credits as well. In British government of not only the increasing through” shares. Columbia, the Mining Exploration Tax expenditures allocated to exploration At the federal level, the government Credit (BC-METC)2 is calculated as 20% budgets by companies in these areas, but provides a non-refundable 15% federal of qualified mining exploration expenses more importantly properly engaging with “ [B.C.] offers stability, which is a key point, together Mineral Exploration Tax Credit (METC), less the amount of any assistance received Aboriginal peoples and the importance of which is harmonized with most Canadian or receivable. environmental stewardship. This view is with the geography. Another advantage is the quality provinces. In British Columbia, for To be eligible, qualified mining exploration shared by AME. Tax incentives allow for of the people that you find. If you are going to perform example, individuals can claim a non- expenses must be incurred before January economic development in remote areas exploration work, you definitely want to find projects that refundable tax credit (BC MFTS) equal 1, 2020 for determining the existence, that, in the absence of those tax incentives, have a history and lots of data, which you can remodel and to 20% of their British Columbia flow- location, extent, or quality of a mineral may not see any substantive exploration use for future work. through mining expenditures, and together, resource in British Columbia. The credit activity and as a consequence, the benefits the METC and BC MFTS can result in applies to exploration for all base and that accrue to the communities affected. ▬ a combined investment tax credit for an precious metals, coal and some industrial - Jim Pettit, individual resident in British Columbia of minerals. president and CEO, approximately 32%. 1 Over the past ten years starting in 2007, 1 Aben Resources Flow-through shares are not simply an enhanced rate of 30% has been To the extent the individual is subject to individual income tax in British Columbia. popular; they are seen as vital to the available for qualified mineral exploration 2Not to be confused with the federal METC Canadian mineral exploration industry. undertaken in areas affected by the non-refundable tax credit offered to individual In fact, more than 80% of respondents to mountain pine beetle. investors referred to earlier in this article. ” Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations INTERVIEW Global Business Reports Global Business Reports INTERVIEW

How has Skeena Resources aimed for higher, and infrastructure in the Golden What are Aben’s plans for its Yukon properties this year? success during the mining downturn? Triangle has vastly improved. Addition- Jim At one point we had six properties in Yukon, with the Mackenzie Skeena Resources has multiple projects, ally, we already know the gold is there and Mountains being a primary focus. However, when activity slowed all of which are in different stages. One of that it is high-grade, so our biggest risk is down in the Yukon we narrowed our area of opportunity to the our main themes has been contrarianism. simply trusting the data we have collected. Pettit Justin Property. We decided to concentrate our efforts on the east- When the market was down a couple of Gold mining is still an extremely risky ern side of the Yukon, where the Justin Property is located. This years ago, we thought it was a good op- business, but our goal is to try to protect Property is tied on to Golden Predator’s “3 Aces” project where portunity to buy assets. The key to deal- against the commodity price risk. Also, they are having quite a bit of success. Back in 2012 we discov- ing with the mining industry’s volatility the fact that our chairman, Ron Netolitzky, ered the POW Zone on the Justin Property. We drilled 12 holes is buying when no one is interested and has discovered some of the highest-grade during that program and all the holes that were completed to tar- selling when the interest returns. Another mines in the province has instilled confi- President & CEO get depth on the POW Zone intersected gold mineralization. This theme has been avoiding grassroots explo- dence in our investors. ABEN RESOURCES system is identified as a very large intrusion-related gold system ration and only pursuing post-discovery (IRGS). The majority of the intrusive stock and its surrounding assets where, through our expertise, we see Do you have any plans to expand out- contact aureole have yet to be tested and remain high priority tar- Walter a path to make the deposit much bigger. side of the Golden Triangle? gets for future exploration and drilling. A third theme has been paying as little for Skeena Resources is always open to evalu- new assets as possible to mitigate risk. Our ating new projects, but we are thus far What are your prospects for the next couple of years? Coles Snip project is an example of this model content with our location in the Golden What are your longer-term plans for Forrest Kerr? We still have to consolidate 100% ownership at Forrest Kerr. being successful. We paid just over 2 mil- Triangle. Projects that are close in proxim- There are three to four areas that we want to concentrate on. We The prospects for the properties that we have are good and we lion shares upfront, that equated to about ity to each other are at an advantage be- want to confirm and analyze what has already been drilled. There emerged in a good shape at the end of the recent down cycle. We $150,000, for a project that had not pro- cause assets from multiple projects can be is an area that we think has a similar geography to Pretivm but so plan to keep the momentum we gathered and take the projects duced gold since the 1990’s, when nearby consolidated. Snip and Spectrum-GJ are far has the least amount of information. We spent $100,000 at the forward, since you want good news before you go back to the President & CEO infrastructure was poor, operations were only a 20-minute helicopter ride from each end of last summer on sampling and various field work. It is a markets. With the right strategy, the chances of success are higher. SKEENA RESOURCES LIMITED costly, and gold prices were declining other, so it is also easy to shift people or question of spending money wisely and having the success early Having 3 projects helps with the chances for success and it al- significantly. Today, gold prices are much resources back and forth. ▬ in the program. The long-term plans will really depend on our lows us to work on a year-round basis which is also better from a 48 success early. market perspective. ▬ 49

Can you provide an overview of Ascot’s will be one of the largest drilling programs Premier/Dilworth is a 105 sq. Km. property and this year’s projects? in the province. When we first started drilling program is designed to come up with a high-grade re- Ascot acquired an option on the Dilworth work on the property, we focused on the source of between two to three million oz. gold. We think, with property in 2007 and the contiguous Pre- northern portion, defining a bulk tonnage the underground drill program, we can come up with a near- mier property in 2009. The Premier/Dil- target. We have a resource there of about term high-grade underground operation. This will be our focus worth is our flagship property. It is a world four million oz. of gold, which represents for 2017. In the bigger picture, we think, there is potential for a class, high-grade gold and silver prospect about 30% of the total northern target. We 10 to 20 million oz. gold resource on the property. in the Golden Triangle area of northwest are now focused on the southern part of We have a very loyal base of shareholders who year after year British Columbia. We own our own dia- the property, around the old Premier mine kept us financed through the downturn. mond drill rigs and our drill costs are about which is substantially higher grade. The a third of the industry average. These low reason we had not started at Premier was How have shareholders reacted to these developments? Robert costs are mainly due to the fact that the the wealth of existing data on this part of The shareholders regard recent developments as a validation of property is accessible by road from the the property that needed to first be -com our asset. The property has huge potential but for a long time nearby town of Stewart, the elevation of piled in to an up-to-date database. during the market downturn it did not receive much interest. Evans the property is low and, as Premier was a Before the Sprott investment our only re- Progress was slower than we would have liked but now, we past producer, there is existing infrastruc- alistic way forward was to define a reserve believe, we have exciting times ahead of us. The major mining ture in place. on a small portion of the property, go in companies are telling us that they have done all their trimming Last year, we received an investment of $20 to production on that and use the resulting and asset disposals and are now looking to see where their fu- million from Eric Sprott. This money will revenue to explore the rest of the property. ture production will come from. This is where Ascot is ahead CFO and director be spent in 2017, we expect to do 140,000 Now, we have the luxury of being able to of the game because, unlike many juniors, we were able to ad- ASCOT RESOURCES meters of surface drilling and 27,000 me- keep exploring first, which is less dilutive vance our project during the downturn. 2017 will be a very tell- ters of underground drilling. I believe this and our preferred route. ing year for Ascot. ▬

post downturn has been the prospect genera- they completed three drill holes, all intersect- three drill holes we realized we were moving away from an intrusive tor business model. We have been very fortu- ing anomalous intervals of gold mineraliza- event. We decided to seek old data and we found that in 1989 BP nate to have supportive shareholders that have tion. We expect them to return in 2017 and Andrew Minerals performed an extensive IP survey in the northern part of allowed us to take advantage of the situation test the northern portion of this target area. On the property before shelving the project and leaving B.C. altogether. and remain aggressive during the downturn. Wildcat, we recently completed IP surveys When we reviewed the old IP data, we realized there was a perfect We were able to acquire assets that we identi- over a new target area are looking to test this Bowering donut-shape anomaly, which is the shape that the best porphyry sys- fied and advance them to the best of our capa- new chargeability anomaly with RC drilling tems tend to have. Ever since that discovery, we realized we would bilities during those market conditions. in 2017. We have a JV agreement with En- not have issues to raise money and scale up our exploration program. Gold Mines at the Red JV property and are How is your property portfolio structured? looking forward to advancing this project as What have been the major developments since then? We now have 10 properties. We started out well. Remaining projects will be advanced by The property contains a 7x6 kilometer IP chargeability anomalous with one project and over the course of four Pacific Empire during 2017 with RC drilling. Chairman and Director area, with an alkalic gold rich copper porphyry target, similar to the years we have identified opportunities and ML GOLD CORP discoveries that led to Red Chris and Mount Milligan We shot four added them to the portfolio. We prefer to Are you exploring further partnership op- lines of IP just a month ago and we have identified the structure near Brad stake ground but we are also open to partner- portunities? the center of the pyrite halo system of 2 kilometers wide, which will ships and joint ventures. Three of our prop- We are always looking for partnership op- be the primary target of exploration. We are fully funded and per- erties stand out as being at a more advanced portunities but one of the challenges for pros- mitted to perform our drilling program this summer, starting in July. Peters stage, these are Later, Wildcat and the Red JV. pect generators is deal flow and deal terms. The program consists of four 700-meter NQ core holes. It is a very On the Later property, we were fortunate to Because of current market conditions, it can Can you provide us with an overview on the Pinnacle Reef (for- exciting project because if we find what the data suggests, this will President attract OZ Minerals as a partner in 2014. It is be challenging to secure partnerships, but we merly Later) project? have a great potential. Moreover, the project area counts with great PACIFIC EMPIRE MINERALS a covered target where OZ completed three IP believe that by adding significant value to cer- Pinnacle Reef, formerly Later, is ML Gold’s current priority. Two infrastructure in regards to roads and power accessibility. surveys over a large area and in two of these tain assets we will be able achieve favorable years ago, our geologist came across with an opportunity in the pro- survey areas, identified large chargeability terms with multiple partners. To accomplish lific Quesnel Terrane in central British Columbia. OZ Minerals had What are the advantages of operating in B.C.? Can you provide an overview of Pacific anomalies. OZ then drilled six holes in two this, we intend to add value in the form of performed exploration work on the property in 2015 and they were This jurisdiction is politically and environmentally stable, and is Empire? areas, with the first hole intersecting intrigu- drill data, especially newly acquired RC drill vectoring towards something more significant. From the onset, the very favorable to work in. There is very little risk and our projects Pacific Empire began as a private company ing intervals of anomalous gold in an area that data. For this, we have purchased an RC drill, idea was to continue drilling, as we had to spend exploration money are cost effective. These characteristics are very well-received by the 50 in 2012 and since has been focused on the had never been drilled. However, they decid- currently in production and scheduled for de- to get an interest in the project. This was appealing for us, as we are markets. As a company, we are always looking for expansion, par- 51 acquisition, advancement, and discovery of ed to drop the option as they were focused on livery shortly. We believe that during 2017 constantly looking for new opportunities. Interestingly, after our first ticularly in northwestern United States and in British Columbia. ▬ high-quality gold-rich copper porphyry assets copper. Subsequently, we signed an option we will be able to identify our best targets for in British Columbia. Our strategy during and agreement with ML Gold Corp and in 2016 partner funded advancement in 2018. ▬

What were Commander Resources’ main We also added to our portfolio when we quired the Rebel zinc property, we have a legacy property called developments during the mining down- acquired four properties and royalties from Ominica, and our two flagship properties are the Mount Polley turn, and in what shape did the company Bearing Resources. Commander Resources copper porphyry and October Dome gold skarn properties, the lat- emerge from it? now has twelve properties, a strong roy- ter of which is the most advanced. We are in the process of finding Like most junior companies, Commander alty portfolio, and a significant number of a partner to help take it to the next stage. The Rebel property is an Resources struggled throughout the down- shareholdings. We follow the prospect gen- example of a property we found through data mining. We lever- turn, and we experienced repeated down- erator business model, which focuses on aged government mineral occurrence databases, regional stream sizing of land, office space, and personnel. protecting the capital structure of the com- geochemistry databases, and geological databases to select the We entered the downturn with a strong pany. We typically advance our projects to property for acquisition. The entire process from concept to ac- asset base, but to survive it, we liquidated the pre-drilling stage and then partner with quisition was done from our office. We are always looking for ad- and monetized some of the shareholdings other companies for the heavy lifting. That ditional assets this way. We have been approached by companies we had in other mining entities. In 2016, way, we collect option payments, share interested in reviewing the data on the Rebel property. Rebel is the we were also able to monetize some of our payments, and possibly royalty payments. least advanced property we currently have, but it has zinc, which Robert Aston Bay shares as part of the project re- The goal of this business model is to live is very topical right now. We currently have seven projects in our structuring which brought in $1 million, off these payments so as to avoid another royalties portfolio. The most advanced project in the portfolio is and gave us enough money in our treasury financing round and to expose shareholders a Teck project in central British Columbia that has a small but Cameron to start doing significant work again. Our to multiple exploration plays. steady cash flow. The next-most advanced royalty is the Boundary focus in 2016 was to revisit our old proper- Zone of our Mount Polley project that Imperial Metals now holds, ties, bring them up to current status in terms Can you please give us a brief overview of and we own 90% of that royalty. Mining is not scheduled until President & CEO of data management and land maintenance, your British Columbia projects? 2026, but mine plans are constantly changing. ▬ COMMANDER RESOURCES and then start an aggressive marketing pro- Commander Resources has four property LIMITED gram to bring in partners for our projects. assets in British Columbia. We recently ac-

Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations INDEX Global Business Reports Global Business Reports INDEX m m m m m 2017 Drilling program 15,000 meters TB D 2,000 meters TB D TB D TB D 1,500-2,000 meters TB D TB D TB D 4,500 m 2017 Drilling program 120,000 TB D TB D 6,000 40,000 2,500 TB D TB D 13,000 TB D TB D Stage Stage Exploration Exploration, NI 43-101 Exploration Exploration Exploration Exploration Exploration Exploration, NI 43-101 Exploration Exploration Exploration, NI 43-101 Exploration, NI 43-101 Exploration Exploration Exploration, Preliminary Economic Assessment, NI 43-101 Exploration Exploration Exploration, Pre-Feasibility Study Exploration, Preliminary Economic Assessment, NI 43-101 Exploration, Preliminary Economic Assessment, NI 43-101 Exploration, Preliminary Economic Assessment, NI 43-101 Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Feasibility Study Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration, NI 43-101 Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration, Pre-Feasibility Study, NI 43-101 Exploration Exploration, Preliminary Economic Assessment, NI 43-101 Exploration Exploration Exploration Exploration Exploration Exploration, NI 43-101 Exploration Exploration Exploration Exploration Exploration, NI 43-101 Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration Exploration, NI 43-101 Exploration Exploration Exploration, NI 43-101 Exploration Exploration Exploration Exploration Exploration Exploration, NI 43-101

52 53 Location Golden Triangle Golden Triangle Golden Triangle South-Central B.C. Southwest B.C. Golden Triangle Golden Triangle Central B.C. Northwest B.C. Southwest B.C. Yukon Northwest Territories Northern B.C . Central B.C. Northern B.C . Central B.C. Golden Triangle Northwest Territories Northern B.C . Northern B.C . Golden Triangle South-Central B.C. South-Central B.C. South-Central B.C. South-Central B.C. South-Central B.C. South-Central B.C. Yukon Yukon Northern B.C . Central B.C. Central B.C. Northeast B.C. Golden Triangle Yukon Yukon Yukon Yukon Yukon Northern B.C . South-Central B.C. Northern B.C . Central B.C. Central B.C. Southeast B.C. Southwest B.C. Yukon Location Golden Triangle Central B.C. Golden Triangle Northwest B.C. Golden Triangle Golden Triangle Golden Triangle Golden Triangle Golden Triangle White Gold District, Yukon Northeast B.C. Central B.C. Central B.C. Yukon Yukon Central B.C. Yukon Yukon Northwest B.C. Northwest B.C. Northern B.C . Golden Triangle Yukon Northwest Territories Saskatchewan Golden Triangle Central B.C. Central B.C. South-Central B.C. South-Central B.C. South-Central B.C. Golden Triangle Golden Triangle Golden Triangle Northern B.C . Golden Triangle Yukon Yukon Yukon Yukon Yukon Yukon Vancouver Island Central B.C. Northern B.C . Northern B.C . Central B.C. Central B.C. Quebec Metal/Commodity Gold Gold, Silver, Copper Silve, Lead, Zinc Copper Silver Gold, Copper Copper, Gold Nickel Gold Gold, Silver Copper, Gold Copper, Gold, Silver Copper Copper, Gold Copper, Gold, Silver Copper, Gold Copper, Gold Gold, Copper Gold Gold, Copper Gold, Copper, Silver Gold, Copper Copper Lead-Zinc Gold Lead-Zinc Zinc, Tungsten, Gol d Gold Copper, Gold Gold Copper, Gold, Molybdenum Copper, Gold Copper, Gold Zinc Gold, Silver Copper, Gold Gold Gold, Silver Gold, Copper Gold, Silver Copper, Gold Copper, Cobalt, Gol d Copper, Gold, Nickel Copper, Gold Gold, Copper Silver, Lead, Zinc Gold Silver, Gold Metal/Commodity Copper, Gold, Silver, Mo Copper, Gold Gold, Silver Copper, Gold Copper, Gold Copper, Gold Gold, Silver, Copper Copper, Gold Gold Gold Gold, Silver, Copper Niobium Manganese Gold Gold Copper Gold, Silver Gold Coal Coal Copper, Gold, Molybdenum Gold Gold Gold Gold Silver Gold, Silver Copper Gold, Silver Copper Gold Gold Gold Gold Gold, Lead, Zinc Gold Silver, Gold, Zinc Gold Gold Gold Gold Gold, Silver Gold Gold, Copper Copper, Gold Copper, Silver, Gol d Copper, Gold Gold, Silver Gold, Copper Gold, Copper Magnetite Project Snip Spectrum-GJ Porter-Idaho Thule Copper Treasure Mountain KS P North ROK Decar Atlin Thorn Rogers Creek Carmacks Redstone Thor Kwanika UD S Milligan West KS M Courageous Lake Kemess Underground Kemess East Kirkham IK E Kootenay Arc Bayonne Jackpot Jersey-Emerald Sheep Creek Olympic Flume Omineca Mt. Polley October Dome Rebel Zinc Red Mountain Hopper Project Midas Touch Hartless Joe Mint Mount Hinton Zymo Iron Lake Indata Naggi e Big Valley Slocan Bralorne Eagle Property Project Ball Creek Ax e Premier/Dilworth Pyramid Kinskuch Trek Newmont Lake JW Royce/Porc 390,000 hectares Rocher Deboule Lonnie Virgil Artillery Peak 3 Aces Brewery Creek Yellowhead Hess Einarson Flatbed Huguenot Ootsa Forrest Kerr Justin Selwyn Recce Chico Dolly Varden Lac La Hache Red JV Prospect Valley Shovelnose Snooka Creek Scottie Gold Four- J Black Hills Hazelton Foremore/Wishbone Plateau Lucky Strike Summi t Freegold Mountain Tad/Toro Severance North Island Silver Hope Atty Pil Pinnacle Reef Pinnacle Reef Block 103 s s eabridge Gold ast eld Resources londike Silver nGold aci c Empire Minerals Company Skeena Resources Nicola Mining Colorado Resources First Point Minerals Brixton Metals Carube Copper Copper North Serengeti Resources S Commander Resources IDM Mining Strategic Metals E K Evrim Resources Ascot Resources OK2 Minerals Romios Gold Resources White Gold Corp American Manganese Golden Predator Anthill Resource Colonial Coal Gold Reach Resources Aben Resources Dolly Varden Silver Corp E P AuRico Metals Metallis HDI Amarc Margaux Resource Avino Silver and Gold Mines Westhaven Ventures Rotation Minerals Jaxon Minerals Goldstrike Resources Triumph Gold North Isle Copper and Gold Finlay Minerals ML Gold Corp Company

Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 GBR • Industry Explorations • B.C., YUKON AND VANCOUVER

YUKON MINING

“The advantage of operating in Yukon is that it has a great education and recreation system for families. However, we are going to have issues on shortages of skilled labor. Therefore the government and companies will have to enhance training through institutions like Yukon College. Mining companies have been very supportive on this front.ˮ

- Ron Light, General Manager at Minto Mine, Capstone Mining Corp Image courtesy of Prophecy Platinum Image courtesy of Prophecy EDITORIAL Global Business Reports Global Business Reports EDITORIAL

Yukon: Where Mining Past heap leach project and Goldcorp is currently in the process of and Present Meet reviewing and optimizing Kaminak’s feasibility study along with developing infrastructure. The feasibility study performed by Ka- “ minak established a 10-year mine life based on a small portion on the overall land package. Therefore, Goldcorp believes reserves The vast and lonely territories of Yukon have at Coffee to be much greater. The company will build a camp I am a huge believer in the White Gold district and the this year to sustain operations. Healthy community and govern- Yukon as a whole. I think there will be more discoveries and long been known to contain riches. Now ment relations under Kaminak were among the main incentives that will attract more companies and interest to the area. majors and juniors are using newly built roads for Goldcorp’s $520 million acquisition of the Vancouver-based Very little exploration has been done in the Yukon to date, and infrastructure to extract them. junior miner back in July 2016. Brent Bergeron, executive vice- I believe this is the opportunity. president of corporate affairs and sustainability at Goldcorp explains: “The reserves and prospectivity were very attractive, but more importantly, the management of Kaminak had done a great job in terms of reaching out to the communities and the authori- - David Schmidt, ties, building relationships and addressing any concerns about the CFO, project from the beginning…the project is being extremely well- White Gold Corp received, because people had been waiting for one of the major companies to come back to Yukon.” For decades, Yukon has failed to live up to its mining potential. REAL GDP BY INDUSTRY - ANNUAL GROWTH RATE Goldcorp’s commitment to the Yukon has been proved further by This territory, roughly as large as Spain, currently hosts only one Source: Department of Finance; Statistics Canada; IMF the company’s decision to acquire a 19.9% stake in Triumph Gold 56 Yukon Canada during the first quarter of 2017. Triumph Gold is actively explor- 57 major operating mine - Capstone’s Minto copper mine. Despite 10% its widely acknowledged mineral wealth, companies have been ing its Freegold Mountain project, undertaking a 13,000-meter 8% ” reluctant to invest heavily in Yukon as they focused on overseas drill program this year. The project is located in the Dawson acquisitions during the boom years and cited high operational 6% Range, in proximity to the Coffee Gold project. Elaborating on

costs in this territory during the downturn. Yukon can be a harsh 4% the details of the Goldcorp deal, Paul Reynolds, president and territory to operate in given its vastly under-populated nature and CEO at Triumph Gold states: “We had been in talks with Gold- 2% the remoteness of some of its regions. Additionally, harsh winter corp since mid last year. Toward the end of 2016, things started conditions can make exploration activity possible only during the 0% to materialize as the market showed notable improvements and summer months, while water scarcity and lack of access to power -2% Goldcorp reiterated its commitment to the Yukon…With the deal,

can dent operations. -4% we still have 100% ownership in all of our properties but we have However, recent developments suggest that a paradigm change a big shareholder in Goldcorp and we have access to their techni- -6% is in the works. Vancouver-based giant Goldcorp acquired Kami- cal team. I see it as a win-win for both of us.” nak Gold in July 2016. Its Coffee Gold project is a high-grade, -8% Another major with an established presence in Yukon is Kinross 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Gold which, like Agnico Eagle, acquired a strategic share of 19.9% of White Gold Corp. This newborn company owns roughly REAL GDP BY INDUSTRY (2007 US$ millions) 40% of the prolific White Gold district, with an estimated 1 mil- YUKON AT A GLANCE Source: Department of Finance; Statistics Canada lion oz. in gold reserves. Source: IMF More recently, Newmont announced an agreement to explore Public Sector Mining, Quarrying and Oil and Gas Other Industries and develop Goldstrike Resources’ Plateau property, while Bar- rick announced an agreement with Atac resources to acquire up to Capital: Whitehorse 2,250 Population: 37,858 (2016) 70% of its Orion project. This stampede of investments has raised 2,000 Head of Government: prospects for the mining industry in Yukon, which may ultimately Premier Sandy Silver (Yukon Liberal Party) 1,750 36% GDP: $2.295 billion deliver the economic opportunities and development that the ter- 1,500 GDP growth: 8.2% for 2016 (Statistics Canada) ritory needs. 1,250 13% Real GDP growth: 40% The White Gold District, located south of the historic mining 0.1% for 2017 (estimate) 1,000 0.2% for 2018 (estimate) 5% town of Dawson, has experienced notable interest from prospec- Unemployment rate: 4.5% (May 2017, Statistics Canada) 750 tors and majors alike. Therefore, it was no surprise when Agnico Value of mineral production: $409 million (2016) 500 Mining exploration expenditures: $87.9 million (2016) 55% 51% Eagle and Kinross decided to take a stake in White Gold Corp., a 250 Mining Development expenditures: $11.9 million (2016) newly created company with a talented exploration team led by Contribution of Mining, Quarrying 0 the renowned prospector Shawn Ryan, credited for the discovery and Oil and Gas to GDP: 13% (2015) 2005 2015 of Golden Saddle. White Gold Corp. holds the largest land pack- 60

Yukon Mining and Exploration Projects 2016 David Schmidt & MINING AND EXPLORATION PROJECTS

Commodity Permitted Mine Exploration Projects - Deposit Type Old Crow Silver Producing Porphyry/Sheeted Vein Gold Skarn/Replacement Shawn Ryan Temporary Closure Copper Permitted Sediment Associated DS: CFO Jade Vein/Breccia SR: Chief Technical Advisor Nickel +/- PGE In Assessment Volcanic Associated Lead/Zinc WHITE GOLD CORP In Progress Mafic/Ultramafic Associated Tungsten Unknown (TSX-V: WGO) Completed Unknown Drilling Program Expenditures Projects with >$500,000 in expenditures are large symbols Indicates Drilling Program Projects with <$500,000 in expenditures are small symbols

MAP FEATURES

Community Generating Stations Capital City Diesel Deep Water Port Hydroelectric Transportation Routes Liquified Natural Gas Primary Highway N Transmission Line Alaska o rthw Secondary Highway < 138 kV Parks and Protected Areas es 138 kV From White Gold’s perspective, why is Can you provide an overview of your t National/Territorial Park Terri Proposed Infrastructures Interim Withdrawn Yukon increasingly attractive for min- property portfolio? 59 Foothills Pipeline ROW t North Rackla o Mineral Tenures ing companies? DS: Our 30 properties range from early r Transmission Line ie Hall Creek s Staked in 2016 DS: White Gold Corp is a public company stage, to advanced drill targets, to proper-

Dawson City Brewery EAGLE Active and Pending Creek Nadaleen based in Toronto, Canada that owns a port- ties with historic resources. Our original McConnell's GOLD Tiger Trend Dublin Gulch Jest Lone Star DS Red Mountain Bermingham folio of quartz claims covering 390,000 portfolio consisted of mostly grassroots Leota KENO HILL Kate Goodman Grabben Gold SILVER DISTRICT Mars Project hectares in the Yukon’s White Gold Dis- projects that we acquired from Shawn, Flame & Moth Aurex Mayo Lake Old Cabin 0 100 200 Eureka Dome trict. The company’s shares trade on the and this year we have expanded our port- Rosebute Rainbow Kilometres Eureka QV Mayo TSX Venture Exchange in Canada under folio with the acquisition of Kinross’ Yu- Dubloon January, 2017 Lucky Strike Moosehorn Crooked Plateau South MACTUNG the ticker symbol WGO. kon portfolio, which included the Golden

Ballarat Coffee VIP Project The Yukon is extremely underexplored. Saddle and Arc deposits that have historic Project

Boulevard White Gold The fact that large mineral systems have resources ranging from 1M to 1.5M oz of CASINO Regional White Regional Canadian Rude MINTO already been proved in some areas but gold, with opportunity for significant ex- Creek Creek Gold Golden little or no work has been done attests to pansion we believe. This built a diverse Beaver Creek OOO Horseshoe Selwyn Carmacks Project this. To me, it is completely wide open; portfolio with both resource expansion po- Freegold Copper Mountain

Caribou Creek WS the government is very friendly and will- tential and exploration upside. Tinta Hill Klaza Carmacks ing to help, with both the federal and ter- Sked Ross River ritorial governments making significant Can you elaborate on the company’s ex- infrastructure investment in the region. ploration program for this year? Wellgreen 3 Aces SR There have been a number of high-profile SR: We have a budget of $15 million to Kluane Kudz Ze Kayah Tobi Lake West WOLVERINE discoveries in the White Gold District in drill 200 holes a year over the next three Spy Hopper Mars recent years, including the Golden Saddle years. We plan to re-evaluate the entire Salloon Enjolras Teslin Mountain and Coffee Deposits, totaling over 7M oz district and not to focus on one specific

Hartless Joe of gold in the White Gold District, each of property. If we find something substantial Haines Junction Whitehorse which were discovered by our Chief Tech- we will return with a new program. The Hyland Gold nical Advisor, Shawn Ryan, who joins me business plan of systematically evaluat- today. We are the largest land holder in the ing every project is what attracted Agnico

Rancheria White Gold District, owning approximate- Eagle to join us as a 19.9% partner. There Watson Lake Rancheria Area ly 40% of the claims and have assembled should be at least one deposit but there is a team that has been directly involved in a high probability of two or three deposits, British Columbia every major discovery in the district. based on our research and the data we have The exploration activity data represented on this map were ▬ Skagway compiled by the Mineral Resources Branch. compiled in the district.

Haines Please contact [email protected] for further information. Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations EDITORIAL Global Business Reports Global Business Reports INTERVIEW

57 age in the district and has ambitious plans “I am a huge believer in the White Gold soon followed and the deal with Newmont What have been the major develop- breakeven but considering that our cash for the future: “We have a budget of $15 district and the Yukon as a whole. I think was finalized in March, thereby altering ments for Victoria Gold over the past costs are less than $650 per ounce, it leaves million to drill 200 holes a year over the there will be more discoveries and that will Goldstrike’s plans for the property: “We year? us with a big margin at current prices. next three years. We plan to re-evaluate attract more companies and interest to the plan to go into the field this summer with 2016 was a transformational year for Vic- the entire district and not to focus on one area. Very little exploration has been done the largest exploration campaign in our toria. We received our final permit for the What are the particularities of operat- specific property. If we find something in the Yukon to date, I believe this is the history, comprising systematic exploration Eagle Gold Project in late 2015, so we were ing in the Yukon and what are your substantial we will return with a new pro- opportunity.” and drilling, and significantly ramping up John able to speak to the advancement of Eagle prospects for this region? gram. The business plan of systematically Denver-based Newmont announced its en- the Plateau project… This agreement fur- being a fully permitted project throughout Yukon is very much under-explored. The evaluating every project is what attracted try to Yukon with the announcement of a ther demonstrates their [Newmont’s] level 2016. In September 2016, we issued an up- challenge with exploration in Yukon is that Agnico Eagle to join us as a 19.9% part- $53 million dollar deal with Goldstrike Re- of commitment to the Yukon and shows McConnell dated feasibility study that has very good it’s only possible for four or five months ner. There should be at least one deposit sources. Goldstrike has developed the Pla- that Newmont recognized the unique op- results, so we started to gain more atten- of the year. This means it takes triple the but there is a high probability of two or teau project since 2010 with encouraging portunity to control an entire new district- tion. It is rare to come by a fully permitted amount of time to do the same amount three deposits, based on our research and results after every drilling program over scale gold system under one umbrella. project, with extremely good economics of exploration than it would take in a the data we have compiled in the district,” the years. This resulted in the Cordilleran They have an excellent global reputation, that is based in as safe a jurisdiction as Yu- warmer climate, such as southern Ontario. President and CEO stated Shawn Ryan, chief technical advisor Round Up and PDAC inviting Goldstrike district scale ability, experience and ,of kon. In 2016, we conducted a $5 million I think that getting Eagle into production VICTORIA GOLD at White Gold Corp. to display its drilling highlights in their course, the funding required to explore exploration program, which, due to mar- and Goldcorp’s acquisition of the Coffee David Schmidt, CFO at White Gold Corp. core shack in 2016, including an intersec- and develop something of this scale and CORPORATION ket conditions, was the first time in three project has brought new focus on the Yu- 60 is also bullish on the district’s and the Yu- tion of 13.25 g/mt gold over 17.5 m and magnitude. Newmont has all the attributes years that we had done any exploration. In kon. The good news is that the production 61 kon’s prospects, citing immense potential: 35.28 g/mt over 5.7 m true width. Interest needed for proving up economic reserves May 2016, for the first time since 2011, we phase can be year-round. I foresee a signif- right through to development and produc- did a financing which brought in strategic icant movement of companies from other tion,” declared William Chornobay, chief investors: Tom Kaplan’s Electrum Group Canadian mining jurisdictions to Yukon in operating officer at Goldstrike Resources. invested $16 million in Victoria Gold, and the near future. When we first went to Yu- However, majors will not be the only driv- Sun Valley Gold invested $8 million. Tom kon in 2009, there were about 20 compa- ers of exploration activity. Golden Predator Kaplan is recognized by many as a very nies exploring. By 2011, there were prob- will continue to carry out a major drilling savvy investor. These investments along ably about 150 companies exploring, and program at its 3 Aces property this year. with our exploration results and feasibility by 2015, there were about ten companies The company has achieved an impressive study, helped to take our market cap from exploring. I anticipate that in 2017, that turnaround over the last year, reaching a $40 million to more than $300 million. We number being around 50 or 60. market capitalization of over $120 million have also recently reached an agreement and increasing its land position from 250 with BNP Paribas to arrange a US$220 Have you encountered any hurdles in to 375 square km. In order to achieve this, “ I think that getting Eagle into million debt facility. The project’s capital the First Nations negotiation process? Golden Predator performed a bulk sample production and Goldcorp’s acquisition costs amount to US$300 million and we First Nations relations is work, you have at the Ace of Spades zone of 750 mt last of the Coffee project has brought have US$40 million in our treasury. This to keep at it and it’s a real team effort. We year. Using gravity feed the company was new focus on the Yukon. The good leaves a funding gap. We are looking at have a person on our team that has been able to produce an 88 oz gold bar, using news is that the production phase can various alternatives to fill this gap; it could dealing with the First Nation of Na-Cho 10% of the sample. This subsequently be year-round. I foresee a significant be through equity, royalty or another stra- Nyak Dun for more than 20 years, and attracted investors, namely Eric Sprott, tegic investor. We hope to finalize the debt knows everyone in the community. We movement of companies from other McEwen Mining and Power One. Golden this spring and provided that we secure the have engaged with the First Nation and as Predator has also enjoyed great coopera- Canadian mining jurisdictions to additional funds we can start construction a result, we were able to sign a full ben- tion from the Yukon government and the Yukon in the near future. this year. The time frame for construction efits agreement in 2011. I believe it isa Kaska Nation to take the project forward, is short so that will enable us to be in pro- good agreement because it has survived thereby facilitating the development of duction in 2019. three elections. We respect that we oper- necessary infrastructure to carry out ex- ate within their traditional territory. Our ploration work. ” What are your expectations on the price intent is to mine the gold and to ensure that Victoria Gold will devote further explora- of gold for the project to be successful? we return the land as close as possible to tion funds at Olive-Shamrock, while si- For the feasibility study we used gold at how we found it in the beginning, while multaneously preparing for construction $1250. The project break-even is less than providing sustainable benefit to the com- at its Eagle Gold project. “We acquired $900. You never build a project just to munity. ▬ 64

What have been the major develop- contributed $US50 million to help us put ments over the past year for Alexco? this district into production. It just happens It has been a busy year for Alexco. We that the formula we set out in 2008 does have consolidated our silver resources not meet the requirements of today’s min- in the Keno Hill Silver District. We have ing configuration. We are re-negotiating published updates to those resources, one this agreement so instead of Silver Whea- of them being a fairly large silver resource ton paying $3.90 an ounce for the 25% while the others are smaller but with very silver stream that Silver Wheaton receives high grades. We used all of that informa- from Keno Hill, that payment will be vari- tion to produce an updated preliminary able on the basis of monthly silver price economic assessment and we published a and silver grade for material processed new mine plan. through our mill. It is a very innovative mechanism and it has a floor and ceiling Clynton R. What are the highlights of the PEA? to calculate the production payment on a The highlights are primarily eight years of monthly basis. I will be very interested to mine life, averaging grades of 843 grams see what the reaction is in the industry be- Nauman per ton silver. This will clearly be one of cause it has a lot of advantages in terms of the best in class silver operations in the efficiency at the mining level for Alexco, world, producing an average of 3.5 million and it ensures that we will continue to op- ounces of silver over that 8 year period and erate at low points of the pricing cycle. It is more than 4 million oz. a year in the first good deal for both companies and that was President and CEO 3 years. All in sustaining costs are around quite an achievement. ALEXCO $13.5 for the entire production period and close to $12 in the first two to three years. How is the state of infrastructure sur- We are pretty excited and we are going to rounding Keno Hill? 63 systematically move forward and advance Infrastructure is an issue for the industry as the project towards production. there are huge but stranded opportunities in the Yukon. Keno Hill is blessed with be- What deposits will see the most activity? ing on the road system and along the pow- The plan would be to mine 400 tonnes a er grid. Our most important issue is that day and the entire production period will our power grid needs to be upgraded. It is be underpinned by about 260 to 270 tonnes an old grid and not as reliable as it should a day from the Flame and Moth deposit. be. We produce concentrates and truck Overall, we are talking about more than 1.6 them some 500km to Skagway, which is a million tonnes at 498 g/ton indicated re- deep-water port in Alaska. We rely on that source at F&M. This translates to 650,000 infrastructure and we will be supportive to to 700,000 tonnes of potentially mineable any development. “The highlights are primarily eight material at 666 g/t. Moreover, these fig- years of mine life, averaging grades ures will be supplemented with production How would you describe the Yukon gov- of 843 grams per ton silver. This will from Bermingham for the first six years, at ernment’s efforts to boost mining? clearly be one of the best in class silver 130 to 140 tons a day. That diluted mate- You now have major players entering the operations in the world, producing an rial arrives to the mill at about 1.2 kg/tonne Yukon and there will be others. This has silver. Production from Lucky Queen at a happened, in my view, because of the ef- average of 3.5 million ounces of silver similar +1.0 kg/t silver will follow toward fort that the government has put in in the over that 8 year period. the end of the mine life. There are a lot last 4 to 5 years. The Yukon government more tonnes available, this just happens to is very active in marketing the Yukon as be what we put in the 8-year plan. Without a friendly place for investment. There are doubt, in my view, it is one of the best sil- going to be more major discoveries in the ” ver opportunities in the world. Yukon, there is no question about that. Moreover, the safety of the jurisdiction is What were the reasons behind the going to become more and more important amended silver purchase agreement for mining companies. From the Alexco with Silver Wheaton? perspective, we have world-class silver At the end of the day, we wouldn’t be here deposits in a jurisdiction where our assets without Silver Wheaton. They originally are 100% safe. ▬

Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations Global Business Reports Global Business Reports EDITORIAL

done a great job in terms of reaching out to the communities and the authorities, building relationships and addressing any con- “ Brent cerns about the project from the beginning. We have an initiative called Towards Zero Water or H2zero, How did the local population receive Goldcorp's arrival to the that we call our 'moonshot'. We are looking at ways to Bergeron Yukon? drastically reduce the amount of water that is contained in The project is being extremely well received, because people had the entire process at a mine site, lower our overall footprint been waiting for one of the major companies to come back to the and move towards having a self-contained operation that Yukon. One of the big concerns people have is how quickly all of only puts water into it once and then continually reuses these projects are going to move forward. This overall economic and recycles it. boom is not going to happen in a very short period of time. It’s a Executive VP, process. Part of our plan working with them is to help with their Corporate Affairs economic development plan, to see if we can be a catalyst and and Sustainability - Brent Bergeron, ensure the social and economic benefits of our operation reach the GOLDCORP next generation as well. executive VP, Corporate Affairs and Sustainability, How important is it to promote economic development be- Goldcorp yond Coffee's estimated 10-year mine life? What was the rationale behind the Coffee acquisition? The feasibility study done by Kaminak established a 10-year mine Canada is a great place for us to continue investing our money, life for Coffee; that just took into account a very small portion of because there are rich resources and we work very closely with the overall land package they had. We believe there is a lot more the government through the Mining Association. We already have potential. We have also been very clear that we are not going to 22 agreements with First Nations around the country, which has the Yukon just for the Coffee project. We are going to the Yukon 60 ” helped build the long-term partnerships to operate our projects. to build a camp, which includes other properties in the area, and the Dublin Gulch property in 2009 and since then, have devoted The Yukon government had made significant efforts to be in touch this way we should extend our presence in that jurisdiction for most of our efforts on developing Eagle. Only in the last couple with us. The Kaminak Coffee project was a very interesting proj- more than ten years. Also, we do not want to be the only company of years we have looked at the wider regional potential. We have ect: it is a conventional heap leach operation, which is not techni- that operates in the area. Once our operation is completed, the now identified through geochemistry and geophysics about 15 cally complicated. The reserves and prospectivity were very at- capacity that it is going to be built should be used by other opera- 64 km of mineralized trend with numerous targets. Two years ago tractive, but more importantly, the management of Kaminak had tions in the Yukon. ▬ 65 we focused on an area called Olive-Shamrock, which now has a reserve of which some is included in the feasibility study. This year we will spend a further $6 million on exploration: $3 million the Flame and Moth and Bermingham deposits in the recent past. at Olive-Shamrock and an additional $3 million doing prelimi- In fact, our exploration team has added about 23 million oz. to our nary exploration work at additional targets we have identified,” indicated resource base at 800 g/mt silver in the last three years declared John McConnell, president and CEO at Victoria Gold. with discovery costs hovering around 50 to 55 cents per oz.” Victoria has attracted interest from renowned investors the likes Project generators are certain about Yukon’s golden future and of Tom Kaplan’s Electrum Group and Sun Valley Gold, which have consolidated strong property portfolios during the down- together invested $24 million in what will be Yukon’s next operat- turn, foreseeing the arrival of majors and juniors over the coming ing mine. The past year was a transformational period for Victoria years. Such is the case of Strategic Metals, a project generator Gold, with major favorable developments unfolding that will lead company with one of the most diversified asset portfolios in this to the completion of Eagle. Speaking about the company’s results territory. “Strategic Metals has acquired over 100 projects in the over the past 12 months, McConnell adds: “These investments, Yukon as well as a few in British Columbia and the Northwest along with our exploration results and feasibility study helped to Territories. Our properties are particularly attractive because we take our market cap from $40 million to more than $300 million. own 100% of them and have no underlying NSRs. While we We have also recently reached an agreement with BNP Paribas to ultimately aim to sell our projects before the drilling phase, we do arrange a $220 million debt facility…the time frame for construc- have the permitting in place to drill up to 3,000 holes or 500,000 tion is short so that will enable us to be in production in 2018.” m if we see the value in taking our projects further than initially Alexco is another well-established player in Yukon that has had intended. The longer we stayed in the Yukon during the downturn, a very eventful year. In 2016, the company consolidated its silver the more we saw favorable projects opening up. We have begun resources in the Keno Silver District, having published updates to to feel an uptick in 2017 and we have had a lot of interest in our its resources to produce an updated preliminary economic assess- properties, but we are waiting for the upswing to mature to get ment and mine plan. Among the highlights are eight years of mine more value. Once we make a sale, there will be a domino effect. life, averaging grades of 443 g/mt silver, which will be one of the Success breeds success,” declared Douglas Eaton, president and best in class silver operations in the world, producing an average CEO at Strategic Metals. of 3.5 million oz. silver over that 8 year period. Speaking about With attention shifting north, B.C.-based juniors are starting to re- the company’s prospects, Clynton Nauman, president and CEO at assess opportunities and re-start projects in Yukon. A case in point Alexco, noted: “ I like to think that Alexco is the leading candi- is Aben Resources, a Vancouver-based junior eager to kick-start date for exploration success in the Yukon. We are solid, system- exploration at its Justin property. “I was not planning to perform a atic explorers and we have been rewarded with the discovery of lot of work on Justin but this has changed since there is renewed

Global Business Reports Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations Global Business Reports Global Business Reports THOUGHTS

Image courtesy of Commander Resources

“We are working with GroundTruth for the drilling program and we are using a new technique, which is fast, cost-effective and environmentally friendly. What used to take three field seasons now takes around a month, so this $15 million dollar budget is, in reality, more like a $60 million budget. The new technique answers questions far quicker, sometimes too quick for many juniors.”

- Shawn Ryan, chief technical advisor, White Gold Corp.

“The Yukon is a great place to do business and its untapped mineral potential is becoming very apparent. Large companies are looking for a place where there is still near surface high-grade gold to be found in a politically stable environment.”

- William Chornobay, COO, Goldstrike Resources

“In 2017, we are running a $4 million exploration program, of which $3.5 million will be devoted for diamond drilling. We have significant resources already but we are looking to expand existing interest in Yukon and Justin is a great prop- “ resources and develop surrounding areas. Exploration drilling totaling 12,000 metres will be focused erty. We drilled 12 holes and hit in 10 of Strategic Metals has acquired over in three zones: Generation zone, with 3,000 meters, and the rest will be split between Revenue them. We plan on doing geochemical and 100 projects in the Yukon. Our and Nucleus.” geophysics work and put it all together,” properties are particularly attractive declared Jim Pettit, president and CEO at because we own 100% of them and Aben. have no underlying NSRs. While we Yukon possesses noteworthy competitive ultimately aim to sell our projects advantages. Landholding costs amount to - Paul Reynolds, before the drilling phase, we do have only $100 per claim annually, making the president and CEO, the permitting in place to drill up to territory attractive for project generators Triumph Gold and prospectors. First Nations disputes, 3,000 holes or 500,000 m if we a frequent source of concern for inves- see the value in taking our projects tors in neighboring British Columbia, are further. rare in Yukon. On the infrastructure front, both the federal and Yukon government “A few years ago, Chinese companies focused primarily on the energy sector, but there has been have made emphasis on the construction a shift in focus toward copper and gold. China has a high demand for ore concentrates that can be of highways and roads across the territory, - Douglas Eaton, devoting roughly 27% of all infrastructure transported back to China for smelting, so within the next five years, Chinese companies will likely president and CEO, increase their investment in Western Canada.” investments to these types of projects and Strategic Metals enhancing Yukon’s connectivity. These strengths, together with high-grade gold deposits scattered over tens of thousands of square kilometers, will continue to play - Wanjin Yang, to Yukon’s advantage opening a new chap- chief geologist, ter in the territory’s history that should be Anthill Resources closely followed. ▬

B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports” Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 GBR • Industry Explorations • B.C., YUKON AND VANCOUVER

VANCOUVER, NORTH AMERICA'S EXPLORATION CAPITAL

“There is a large talent pool in Vancouver, which benefits from the crossover between the tech sector and the mining industry. In Vancouver we have a phenomenal opportunity for those two sectors to work closely together and the entrepreneurial nature of the city makes it a very dynamic mining hub.”

- Philippa Wilshaw, partner, GVA Mining Industry Leader, KMPG Canada Image courtesy of Katie Bromley EDITORIAL Global Business Reports Global Business Reports EDITORIAL

Image courtesy of Katie Bromley 70 71 Vancouver: North America’s Exploration Hub

At first glance, Vancouver is one of the world’s most aesthetic cit- major consultancies and multinational law firms. Of these, Toronto or silver in Mexico, Vancouver-based companies possess the most Nonetheless, natural beauty and access to capital markets do not ies, surrounded by snow-capped mountains and with a unique ge- serves as the leading financial hub, home to the TSX and TSX Ven- comprehensive portfolio of projects and operating mines in the con- suffice to retain the spot of North America’s exploration hub at a ography featuring peninsulas and islands surrounded by the cold tures markets, and hosting majors such as Barrick, IAMGOLD, and tinent. time when major cities compete fiercely to attract investments and waters of the Pacific Ocean. Besides its remarkable natural beau- Kinross. Meanwhile, the vast majority of Canadian juniors have Vancouver’s close-knitted mining community, much smaller than know-how. Therefore, major mining clusters have been developed ty, this booming city houses the largest concentration of mineral made Vancouver their home. Easy access to the Toronto markets, Toronto’s, has proved largely beneficial for juniors, facilitating in Vancouver to enhance the city’s competitiveness, with major exploration companies in the region and in fact, the world, with a favorable business environment, and a strong entrepreneurial and inter-company interactions, acquisitions and overall dynamism. universities, government and the private sector getting on board. Vancouver-based companies hosting the largest share of mineral international community have turned this metropolis of roughly 2.5 Speaking about the city’s strengths, Michael D. Scott, director of “There is a large talent pool in Vancouver, which benefits from the exploration projects in North America. It is commonly said that million inhabitants into the world’s mineral exploration epicenter. global investment banking at RBC Capital Markets notes: “Vancou- crossover between the tech sector and the mining industry. In Van- whenever activity picks up along downtown Vancouver’s tree-lined Moreover, the city’s high quality of life, often ranking in the top ver has historically been a very supportive jurisdiction for junior couver, we have a phenomenal opportunity for those two sectors avenues, mining projects worldwide soon follow. Of the 976 mining three among world cities in Mercer’s Quality of Living Ranking and mining companies. There are high net worth individuals in Vancou- to work closely together and the entrepreneurial nature of the city companies listed in the TSX Venture exchange, mostly comprising the Economist Intelligence Unit’s Global Livability Ranking, make ver that understand the mining space very well and that is often makes it a very dynamic hub,” explains Philippa Wilshaw, partner, juniors, over 60% are headquartered in British Columbia, with the Vancouver an extremely appealing destination for global investors. important to get these discoveries and companies off the ground. GVA mining industry leader at KPMG Canada. vast majority based in Vancouver. Although Vancouver remains the world’s mining barometer, the Importantly, in Vancouver, there is a great deal of overlap and fa- With innovation clusters, a strong financial community and the Canada has for decades been at the forefront of the global mining city’s preeminence is particularly striking in regards to its com- miliarity within the professional community, and this tends to be city’s entrepreneurial nature, Vancouver will undoubtedly remain industry, with its companies present in virtually every mining juris- panies’ presence in North America, with major projects sprawl- highly productive to get things accomplished. Vancouver remains one of the major mining hubs for years to come and its position as diction across the globe. Two major Canadian cities, Toronto and ing from the western edge of Alaska to the deep tropical forests very much a mining-centric town, at least from a public markets North America’s exploration hub seems unrivalled as its companies Vancouver, stand out as global mining hubs by financial institutions, of southern Mexico. From graphite in Alaska to gold in Nevada, perspective.” are once again eager on investing closer to home. ▬

HIGHLIGHT PROJECTS IN USA AND MEXICO

C T M S D 1 TX NET P P 2 TX E E VANCOUVER 72 E 73 TXE OT N E N E TXER NEEX E P P E T N P E 10 TX NE P P P P O TX P OT PO O PE 1 7 I TXIPT XI R P N 12 O 2 R TXN P E PE 11 TX NE E E 10 TX R P E 11 TX E XON P E 12 N TX NR P E 1 R P TX RP OTX RP P P 1 1 TX I E E T 1 TX P N 17 1 1 O 1 P 1 R TX R P P N E E T 17 T R TX TN OT O T I 7 P 1 T TX NET T P N

centres of excellence, including in tradition- have an impact on the growth of the industry. private equity is involved, the asset is typically at a later-stage. Private equi- al mining centres such as Denver, Toronto, Notwithstanding this, I also believe that ne- ty companies are more likely to put up the money to invest in development Johannesburg and Perth. More recently we cessity becomes the mother of all invention Jason when a resource is already established and risk is lower rather than fund have added Singapore and Beijing, recogniz- and companies that have strong projects and exploration. Early-stage exploration projects are almost always funded by ing the important flows of capital from these management teams will be successful in the public equity and are funded often by flow-through share tax credits. Tra- centres, although not necessarily being min- longer term. Moreover, we have definitely Neal ditional private equity firms have not invested heavily in mining in part ing jurisdictions per se. We are able to lever- seen more activity over the past six months because there are many moving underlying price assumptions on both rev- Global Co-Head of Mining age our network to deliver the best service and we hear of higher confidence levels in enue and cost line. Hedging the revenue is one thing, but it is easy to get and Metals Group to our clients, whether on a local or global the capital markets for 2017 and 2018. These stung on costs. BMO CAPITAL MARKETS scale, ensuring that our clients have access to developments raise hopes for improved ac- global teams with knowledge of their busi- tivity in B.C. and Yukon, which already have What are the key jurisdictional incentives that drive exploration? ness and expertise. Vancouver is an amazing an established mining tradition and skilled How did BMO’s role as a financial advisor change through the global There are a few factors that drive exploration. The flow-through share tax city in terms of the concentration of mining workforces. Optimism seems higher than it mining downturn? credit is obviously helpful, and every province must employ it or else they companies. Moreover, the city is very entre- has been over the past few years and mining Mining is a cyclical business and commodity prices have been very vola- will lose business to other provinces. Geological prospectivity is also very Philippa preneurial and a lot of capital is raised here. is a very resilient industry. tile, so the main focus over the past few years has been balance sheet man- important. The most important factor, though, is the feasibility of a discov- Our Vancouver-based clients have opera- agement. At the onset of the downturn, there was quite a bit of leverage ery actually becoming a mine. Wilshaw tions across the globe and KPMG is able to What are KPMG’s main competitive ad- added to balance sheets through acquisitions for cash, and investors were serve them wherever they operate. vantages? looking for balance sheets to be deployed rather than shares being issued. What developments do you expect from clients this year? KPMG is able to distinguish itself from the As a result, companies built up more debt. At the same time, there was Thus far in 2017, companies are focusing less on balance sheets and more Partner, GVA Mining Industry Leader cost inflation on the operations side of the business, and cash flow from on income statements and growing their businesses. We have recently spent KPMG IN CANADA How would you describe mining activity competition by our global footprint and the in British Columbia and Yukon? ability to bring that global expertise and tai- operations was not generated as expected. In 2015 and 2016, there were more time on M&A deals, and we expect to see more consolidation, par- I would say that the industry has had difficul- lor it to meet the needs of our local clients. opportunities to acquire assets that would typically not be sold, but were ticularly among companies who have built assets in the past few years, ties over the past years and activity has been Wherever our clients are going we can ac- divested as part of deleveraging. BMO advised companies buying and sell- as well as equity financing centered around project development. We also How does Vancouver complement KP- slow, due to a period of lower commodity company them because we have the same ing these assets, or we were involved in financing companies that were anticipate more IPOs over the next two years. Recently, investors have been MG’s global presence for clients in the prices and lower levels of investment. Most standards, systems and quality in our servic- acquiring these assets. more interested in base metals than they are in precious metals. Exploration mining industry? of the larger mining companies have worked es worldwide. We are the biggest accounting expenditures have been light, but improving. Before getting involved in any We look at the mining industry from a global their way through from an efficiency per- firm in British Columbia, which means we What are the benefits of an early-stage IPO or RTO versus private project, BMO sends its own geologist and engineer to inspect it. Most in- 74 perspective and we serve our clients with spective and have gotten used to the environ- our clients benefit from more breadth and equity funding? vestors do not have the luxury of geologists and engineers who answer only 75 their global strategies in mind. We focus on ment they are now operating in. Where the expertise. Ultimately, our clients tell us that There are far fewer assets that are in the hands of private equity, but when to them and our diligence is therefore important to our equity franchise. ▬ the services that are meaningful to our cli- industry has been particularly challenging it is all about the relationships that we have ents across the world and we tailor them to is for smaller companies, as they have been with them and that we really understand their the local context. We have 14 global mining unable to raise exploration capital. This will business. I think this differentiates us. ▬ capital markets arena, there are very few public investable companies in the zinc space, so the few companies that do exist have benefitted from this TSX-V TOP PERFORMERS IN MINING improving tone. Metallurgical coal is another example of a commodity that Source: TSX Venture Exchange Michael D. has demonstrated a strong recovery and improved investor sentiment over Company Market Capitalization Change 2015-2016 % the last 12 to 18 months. Lithium X Energy Corp 1.244 Scott When assisting Vancouver based companies with operations abroad, Director, Goldmining Inc. 531 in what regions have you witnessed more interest? Global Investment Banking Yukon is an area where RBC is seeing a great deal of activity. We worked RBC CAPITAL MARKETS Wealth Minerals Ltd 1.320 for Goldcorp in acquiring Kaminak Gold last year and I think that has created somewhat of a domino effect of other companies entering the Pure Gold Mining 521 In the junior market, what trends have you identified over the past area. There remains a lot of investor interest in the Yukon. In B.C., the year? Golden Triangle region has been a focus for investors over the last year. Golden Predator Mining Corp 1.547 In the last 12 months, we have witnessed a recovery in the resource sector Low-risk, prolific jurisdictions like Ontario, Quebec and Nevada remain broadly. I think junior companies have probably benefitted the least during preferred geographies as well. Otherwise, Latin America will continue to SilverCrest Metals Inc. 2.938 this recovery, although access to capital for junior companies has improved attract interest, with certain geographies seeing a renewal in investor inter- somewhat. What we have seen over the last couple of years is an evolution est. Argentina and Ecuador, as examples, would appear to be increasingly Victoria Gold Corp 403 to an environment in which companies that have the right capital markets accessible places to do business. profile are still able to raise money, but quality assets and top-tier manage- IMPACT Silver Corp 580 ment teams are paramount to success. What role will foreign exchange play for investments in Canada? We are seeing more companies that have historically not deployed capital Golden Arrow Resources Corp 510 In what commodities have you seen more dynamism? into Canada more interested in doing so as a result of the cost advantages The precious metals space has been very dynamic in the last 12 to 18 the depreciation of the Canadian dollar has afforded. This depreciation has Cordoba Minerals Corp 577 months. Copper has also been a real focus as investors are still actively had material and positive cost impacts on anyone with operating assets in looking for new opportunities as worldwide demand continues to grow. Canada and the implication is that companies, who were previously work- On a shorter-term basis, we have seen a lot of buoyancy in zinc. In the ing in far flung jurisdictions, now can look closer to home. ▬

INSIGHTS FROM EXPERTS

“Aon’s environmental risk experts recently developed a breakthrough reclamation surety bond solution as a superior alternative to traditional reclamation security typically satisfied through letters of credit. The solution was created for mining companies seeking to free up restricted capital secured for reclamation purposes. This benefits clients in all phases of the project life cycle: Pre- construction, construction, production, and care and maintenance.”

- Andrew Russell, senior vice-president, mining practice leader, AON Risk Solutions

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“The segment of the value curve we consider is taking pre-production assets into production. “Getting our risk-reward equation right is how we make the most money for our shareholders and Therefore, we are specifically looking for teams of individuals who have experience building or we do that by finding unearthed value the rest of the market has not yet seen.” turning around mines on time and budget.”

- Nolan Watson, - Caroline Donally, president and CEO, director, mining deal team, Sandstorm Gold Denham Capital

“Junior mining companies are more willing to raise capital to put together larger, stronger “The market began to take off in the fall of 2015 when we saw consolidation of Canadian brokerages exploration programs that will elicit better results than in the past few years. Money is available for and publicly listed junior mining companies. That volume has picked up dramatically in the past six these companies and this should result in more discoveries.” months, and our Vancouver office has processed more than 350 non-brokered private placements over the past 23 months, the majority of which were junior financings.”

- Mike White, president and CEO, - Mark Redcliffe, IBK Capital executive vice-president, Mackie Research Capital

Mexico Can you give us an overview of your next How have you engaged with communi- two mines, El Compas and Terronera? ties in Mexico? In March, we announced a Preliminary We believe a happy community leads to Economic Assessment for El Compas, fol- a happy mine. Creating benefits for all lowed by a production decision. We are stakeholders is core to our sustainability currently awaiting our explosives permit policy. The first thing we do when we start and we expect to break ground at the end a project is build relationships with the Favorable regulatory of this quarter. El Compas is a small but community. In Mexico, the new mining environment attracts very high-grade mine project, very accre- duties were intended for the government to investments tive to cash flow. It has a four and a half reinvest these into federal, state and mu- year mine life, with a $10 million capex nicipal infrastructure projects but to a large and only a 6-month development timeline. extent, we are not seeing those funds be- We think the project is very scalable and ing put to use yet. Therefore, we continue Bradford we can extend mine life and expand opera- to invest in community projects ourselves tions through exploration and acquisitions because we cannot drop the ball on com- in the district of Zacatecas. munity engagement. Cooke In April, we released a Pre-Feasibility Study on Terronera recommending pro- What are your plans for future explora- duction. We plan to make a production tion and acquisitions? decision as soon as we receive the environ- We are perhaps the most proactive of all mental permits, which should happen in the silver mining companies at investing CEO three months or so. We hope to break the in exploration, not just brownfields but ENDEAVOUR SILVER ground in the third quarter with production greenfields exploration also. In addition to Canada’s mining preeminence is particu- scheduled to commence at the end of 2018. our three development projects, we have a larly evident in Mexico, where companies 78 Terronera is a large, high grade silver-gold number of exploration projects in Mexico have invested and operated since the coun- mine project that could become our largest and Chile. Guadalupe y Calvo is perhaps try opened its doors to the global mining and very low cost mine. It has an initial 7.5 the most advanced of these. We kept the industry in the 1990’s. Canada remains the year mine life, a $69 million capex and an company’s core group of exploration peo- largest foreign investor in Mexico’s min- 18 month development time line. It is also ple and properties through the downturn so ing sector, with projects scattered across its very scalable and we have already discov- that we could stay ahead of the curve. territory, from the desert of Sonora to the ered a second orebody with many prospec- tropical forests of Guerrero. tive vein targets yet to be drilled. Where would you like to see the com- Vancouver-based Endeavour Silver serves pany in two to three years time? as a landmark example of the fruitful re- How has Endeavour enhanced the effi- We plan to build three new mines and grow lationship between Mexico and Canada in ciency of its operations? our production by 50% over the next three regards to mining investments. The com- We made great strides in the last five years years. The new mines will not only expand pany arrived in Mexico in 2003 because at cutting our operating costs. We have our production, they are also higher qual- there was a flat 30% tax structure and the reduced and re-trained our work force, ity mines, so should help drive our oper- “We are perhaps the most proactive government was open to facilitate business we brought in more advanced mining and ating costs down to the lowest quartile in for the sector. Although since then a 7.5% of all the silver mining companies drilling equipment, for greater mechani- the silver sector. All-in sustaining costs royalty on profits has been introduced, at investing in exploration, not zation coupled with better management. (“AISC”) for El Compas are expected to be the Mexican government is still hailed for just brownfields but greenfields In February, we hired a new VP of opera- about $9.50 per ounce silver. Last year, the its receptiveness and the ease of expedit- exploration also. In addition to tions, formerly from Goldcorp, and who company’s AISC costs were around $12.50 ing permits. Endeavour Silver remained our three development projects, we is a great addition to our team. We are per oz silver. Terronera looks even better proactive throughout the bull market and have a number of exploration projects hiring a new VP of engineering and new with AISC forecasted to be less than $5.00 emerged from the downturn with three in Mexico and Chile. managers of mining, metallurgy and geol- per oz silver. These two new mines will development projects in its pipeline to ogy. The purpose of these new hires is to have a big impact into turning Endeavour fuel production growth over the next three form a talented project development group into a more efficient producer. Last but not years. The company announced a prelimi- responsible for developing our new mines, least, we want to reload the development nary economic assessment for El Compas, ” including El Compas, Terronera and Par- pipeline with some new larger projects so located in the silver-rich state of Zacatecas, ral. Quality control and the introduction we have longer mine lives and investors in March and is currently awaiting its ex- of new technologies will also be essential can take comfort in owning shares of a plosives permit to break ground at the end parts of their tasks. Since starting the com- company with a great future. ▬ of the second quarter. El Compas is a small pany, we have always pursued a philoso- but very high-grade project, with a low $10 phy of continuous improvement. million capex and a short six month de-

Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports Global Business Reports EDITORIAL Global Business Reports Global Business Reports EDITORIAL

Image courtesy of SilverCrest Metals

lives and investors can take comfort in economic opportunities and well-paid jobs. Engineering and toured the property and owning shares of a company with a great Ralph Shearing, president at Telson Re- ultimately put the seal of approval for the future”. sources describes the dynamic around the project. In 2016 we closed the deal, they Mexico has retained its attractiveness as a community relations at the company’s Ta- gave us $10 million in the way of an off- major mining jurisdiction largely as a re- huehueto project: “The local community is take agreement. That money will be netted sult of reasonable timeframes in permitting located onsite, and Telson has a long term off deliveries.” and environmental studies. These aspects agreement with them in place. The local Vancouver-based companies will retain are of paramount importance for compa- residents want the work and the develop- their appetite for investments in Mexico as nies amidst the unpredictability of the mar- ment and they even act as our security be- long as this Latin American country keeps kets witnessed over the past three years. cause they want us there. We have made offering favorable conditions for explora- Eric Fier, president and CEO at SilverCrest a point to foster a good relationship with tion, permitting and operations. Mexico’s Metals elaborates: “I have worked in over the community over the past 20 years. Du- proximity to Canada and apt weather con- 30 countries worldwide. From Siberia to rango, in general, is one of the most pro- ditions for exploration year-round make it Indonesia to Africa, and I would say Mexi- mining regions in Mexico, and there is far a go-to choice for juniors based in North co is at the top of the list for one of the best less risk to operating there than what may America’s exploration capital. ▬ 80 countries to be in. The number one reason be perceived.” 81 is that it is very reasonable to permit and Last June, Telson commenced pre-produc- hopefully it will remain this way. To give tion mining at its gold/silver Tahuehueto an example, Santa Elena was permitted project in Durango. Additionally, the com- under international standards, with envi- pany completed this year the acquisition of ronmental baseline studies and community 100% of the Campo Morado Mine, previ- relations studies in over a year and a half. ously owned by Nyrstar Mining. Telson is “ Once we did all these studies and handed placing a special emphasis on maximizing in our application for permitting, we had recoveries of all economic metals at Cam- an open pit, heap leach permit within six po Morado, including gold, silver, zinc, There are three major factors that months.” lead and copper. have helped us maintain and improve Fier developed the Santa Elena mine in Avino Silver and Gold Mines has also got our efficiency. First, Mexican mining the northern state of Sonora, now operated a long history of operating in Durango, engineers…second, we have been by First Majestic, and in 2015 created Sil- where its namesake property and the San velopment timeline. Moreover, in April the company released a verCrest Metals. The company’s flagship Gonzalo Mine are located. Together, these lucky in that the ground is exceptional pre-feasibility study on Terronera, located in the western state of property is Las Chispas, conveniently lo- silver, gold and copper producing mines and third, our miners are quite Jalisco. Endeavour expects to break the ground in the third quarter “We spent two years putting together the land package for cated between Santa Elena and the Mer- have broken production records for the talented and methodical and their of 2017 and commence production at the end of 2018. Terronera Las Chispas. The whole premise for SilverCrest Metals is to cedes Mine. SilverCrest Metals is under- company over the past two years. Most im- flexibility is extremely beneficial. has an initial 7.5-year mine life and has the potential to become undertake the same phased approach that has worked very taking a drilling program to build resources portantly, Avino serves as an important ex- the company’s largest mine when operational. Speaking about the favorably for us in the past. We have a lot of experience in around the asset in order to reach a critical ample for producers in Mexico and world- company’s prospects, Bradford Cooke, CEO at Endeavour Silver, mass with favorable economics. wide, as the company has partnered with that area and we have built strong relationships. - Frederic Davidson, declared: “We plan to build three new mines and grow our produc- As in every mining jurisdiction, commu- the South Korean electronics giant Sam- president and CEO, tion by 50% over the next three years. The new mines will not only nity relations play a major role in project sung to sell 100% of their silver concen- Impact Silver expand our production, they are also higher quality mines, so this development in Mexico. In this regard, we trates in Mexico. Speaking about this land- should help drive operating costs down to the lowest quartile in - N. Eric Fier, have noted a favorable reception from lo- mark agreement, David Wolfin, president the silver sector. All-in sustaining costs (AISC) for El Compas are president and CEO, cal communities to mining investments and CEO at Avino explains: “They [Sam- expected to be about $9.5 per oz. silver. Last year, the company’s SilverCrest Metals throughout the country. Rural communities sung] want their raw materials for electron- AISC costs were around $12.5 per oz. silver. These two new mines in Mexico are less developed and more vul- ics and construction sourced because they will have a big impact on turning Endeavour into a more efficient nerable than its counterparts in Canada and have ethical funds and on their stock they producer. Last but not least, we want to reload the development the United States and therefore are very re- don’t want bad press that could lead to a pipeline with some new larger projects so we have longer mine ceptive to mining projects that bring about boycott of their products. They hired SRK

Industry Explorations B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Global Business Reports” Global Business Reports B.C., YUKON AND VANCOUVER AS THE WORLD'S MINING BAROMETER 2017 Industry Explorations” INTERVIEW Global Business Reports Global Business Reports EDITORIAL

Image courtesy of Shutterstock Lawrence USA Page & Robert MacDonald With a shared border of 5,525 miles, Can- ada and the United States are two closely LP: Chairman linked economies and the mining industry RMD: VP of Geological Services clearly showcases this trend. Canadian BRAVADA companies are increasingly looking south MANEX RESOURCE GROUP of the border as they become mindful of investments in safe and stable jurisdictions such as the United States, one of the most What are Bravada’s plans for the Wind resource to a higher category, begin pre- advanced mining jurisdictions in the world Mountain property? liminary development studies such as in- but with great potential, particularly along RM: The plan is to drill two or three Proof- ternal scoping, PEA, further metallurgy, underexplored regions in the Midwest and of-concept holes this Fall to determine if Prefeasibility to a point where a produc- Alaska’s vastness. the high-grade “feeder” is located where tion decision can be made. Options avail- Trilogy Metals already holds a 43-101 we think based on our 3D geologic mod- able for Southern Silver as we continue resource on its Arctic and Bornite prop- elling. to advance the project is; to continue as erties in Alaska. At 36 million mt of 6% 82 a joint venture partner with Electrum and copper equivalent, Arctic is one of the 83 To what do you attribute Bravada’s suc- maintain our position into production; highest-grade open pit copper projects in cess in attracting noteworthy partners Electrum may offer to acquire a 100% of the world. Trilogy plans a $7 million drill- for the development of your properties? the project (requires a third party valua- LP ing program this summer and envisages a RM: Bravada conducts significant geolog- tion); A merger with Sunshine Silver Mine pre-feasibility study by the first quarter of ic work to develop high-quality explora- (owned by Electrum); A buyout by a third tion targets that could develop into mineral party. deposits that are of the size and grade that will be attractive to major mining compa- What are the key characteristics that nies. you look for in a project and what “ are the key features of Bravada’s and Nevada is a very mining friendly What are your exploration plans for Southern Silver’s property portfolio? state and there is a highly qualified Quito and Baxter and what are your RM: For Bravada, ultimately we look for technical workforce. The state and longer term plans for these properties? projects that we think can develop into RM: Kinross has begun its third phase of high-margin, large gold deposits that will the regulators are knowledgeable and exploration drilling at Baxter and Coeur be attractive to major mining companies. helpful to the mining industry at large. is planning to begin its second phase of Nevada has an unusually large number of The government is very stable, which exploration drilling at Quito. Drilling at such deposits, as shown by the amount adds to it being a good jurisdiction to RMD Quito is restricted until after July 1st to ac- of gold produced for decades. Important be in. commodate migratory birds that may pass new discoveries continue to be made in through the region. Our longer-term plans the state; thus, it remains the focus of our for these two properties depend on results exploration plans. We specifically look for - William Howald, from these partner-funded exploration pro- projects where we can identify specific president and CEO, grams. work that will advance the project towards Rye Patch Gold the identification and development of a What are the particularities of Cerro high-margin, large deposit. We then evalu- Las Minitas and what is Southern Sil- ate the risk to reward ratio of acquiring ver’s strategy in advancing the project? that property and doing the required work RM: Our strategy for advancing the Cerro to bring in an appropriate funding partner Las Minitas project is to continue to define for further development. ▬ the po-tential size of the deposit, move the

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Patch, shared his insights on the advan- the volume of snow that hits the region. tage of operating in the region: “Nevada Colorado Resources has been looking at is a very mining friendly state and there is projects in warmer climates and we an- a high qualified technical workforce. The nounced on December 2016 that we have state and regulators are knowledgeable optioned a property in Nevada…We had and helpful to the mining industry at large. been considering acquiring the property in Rye Patch controls a trend in Nevada that Nevada for about three to four years. The has operations and a pipeline of resource silver lining of the global mining down- projects, which is ideal because the com- turn is that exploration projects are more pany can grow organically.” affordable.” Interest in Nevada has also come from Although operational costs in the United B.C.-based juniors that regard this state as States can often exceed those in Cana- a viable alternative for projects during the da and certainly those in Mexico, large harsh winter months in British Columbia swathes of territory remains underex- and Yukon. Such is the case of Colorado plored and projects with very favorable Resources whose CEO Adam Travis not- economics can be developed. Additionally, ed: “As much as we love British Colum- hype around the Trump administration’s bia and as much as infrastructure has im- promises on tax incentives and infrastruc- 84 proved over the years, exploration remains ture developments have raised prospects 85 challenging in the winter months due to for industries such as mining. ▬

2018. Trilogy entered into a 50/50 JV with South Dakota. One such company is Min- meters drilling in 2017, divided equally 2012 in the Rochford district clearly dis- South32 to develop Bornite, envisaging a eral Mountain Resources, which currently between the Standby mine deposit and the pels that theory. We believe we have five $10 million investment per annum over the holds one of the most extensive gold dis- South Cochrane trend. Based on initial ex- separate Homestake-style gold trends lo- next three years. Bornite contains roughly tricts in the country. Since 2012, Mineral ploration work, the company believes that cated within our present land package that 6 billion lb of copper at 1% open pit and Mountain focused on an area locally called the Rochford district hosts a Tier 1 gold could host large-scale deposits.” 3% underground. Speaking about the com- the Rochford Gold District, centered about system with more than one economically Further south, the Western state of Nevada pany’s strategy to maintain shareholder 26 km south of the renowned Homestake feasible deposit. Nelson Baker, president is experiencing renewed interest from gold value, Rick Van Nieuwenhuyse, president mine in South Dakota, which was continu- and CEO at Mineral Mountain, elaborat- prospectors and companies with strong and CEO at Trilogy, noted: “Trilogy Met- ously mined for 135 years. Over the years, ed on the strengths of the project: “After ambitions. Like much of the Western Unit- als’ strategy, in short, is to execute our the company consolidated a large contigu- Nevada, the Homestake Gold Trend is the ed States, the appetite for gold of its earli- plan. We will continue working toward ous land package and has since performed second largest gold-producing area in the est settlers shaped Nevada’s history. This our pre-feasibility study on Arctic and we the first high-resolution airborne Mag-Em United States. Over the past year, we have year, Rye Patch Gold became the state’s will look forward to some exciting drill- survey in the area. Remarkably, the com- been offered several opportunities to joint newest gold producer. The company holds ing results at Bornite later this year. Inves- pany was able to consolidate the land venture our 100% owned Rochford proj- the Florida Canyon mine operation, which tors can look forward to a lot of news-flow package and existing data dating from the ect, but we prefer to enhance the value of has a capacity of 180,000 ounces of gold from this year’s activities.” early 1900s during the worst period of the this project by drilling our most advanced per year. Additionally Rye Patch controls In the mainland United States, companies downturn. However, as market conditions Homestake-style target…For over a centu- 45,000 acres of land and the company ex- are increasingly looking at assets in de- have improved, Mineral Mountain is now ry, the global mining industry viewed the pects to become North America’s next mid- veloped jurisdictions with a long tradition poised to move forward with an aggres- Homestake mine as a unique event. Our tier gold producer over the coming years. in mining, such as Nevada, Colorado, or sive exploration plan, comprising 20,000 research and database compilation since Bill Howald, president and CEO at Rye

Can you elaborate on Trilogy’s work is sufficient capital to get both projects Homestake Mine having made several gold intersections are experiencing rapid and plans for its properties? through to a construction decision. underground visits, and, I was always in- rises in their share price along with large Trilogy Metals has published a 43-101 trigued by the unusual size and the high volumes of trading. We have been through resource on both the Arctic and Bornite How has Trilogy Metals raised capital? grade of the deposit. Recently, we also many similar cycles and, from our experi- properties, known collectively as the Up- Aside from the money spent by sharehold- learned that the mine had never ran out of ence, this is usually the first important sig- per Kobuk Mineral Projects. The Arctic ers, Trilogy Metals has not done a true mineable ore and closed in 2001 because nal that investors are once again interested property is the most advanced of the two, financing since we spun out from- Nova the deposit had gotten too deep and too in investing in advanced exploration. and we are currently working on a pre-fea- Gold. In 2015, however, we acquired a hot to work at the deep levels. Profitable sibility study for it. We recently updated company called Sunward that had $20 mil- production in the latter years of the mine’s What are your capital-raising efforts the resource estimate by doing all the in- lion in cash, but was trading in the market history became a serious issue. During looking like this year? fill drilling and publishing a new indicated at a $10 million value. We acquired that the last twenty years of Homestake’s mine We are planning to raise $3.7 million just resource that was about 50% bigger than company for $23 million in Trilogy shares. life, management dedicated a $70 million to drill our Standby Mine target which, Rick Van the previous resource. At 36 million tonnes Along with the $20 million in cash came budget specifically to find other peripheral, based on our database, is a compelling of 6% copper equivalent, I cannot think of a large copper-gold asset in Colombia, Nelson near surface iron formation hosted gold Homestake-style target. Prospects for rais- a higher-grade open-pit copper mine in which we sold in August 2016. Combining deposits along the Homestake Gold Trend. ing capital have improved significantly Nieuwenhuyse the world. We have planned a $7 million the sale of that asset with the original ac- Baker This program resulted in two new discov- since early March 2017 especially for drilling program for this summer with the quisition of shares, we raised $33 million eries; the first, a rich high grade gold de- advanced gold projects like our Rochford objective of releasing the pre-feasibility for only $23 million. posit 2 miles north of the mine, and, the Gold Project. study by Q1 2018. In addition to the re- second discovery, a Homestake-style gold source update, the metallurgy, hydrology, How would you compare the permitting zone down plunge from the Standby Mine What are the strengths of operating in a President and CEO pit slope stability, and geotechnical work processes between the US and Canada? President and CEO located 26 km to the south of the mine. jurisdiction like South Dakota? TRILOGY METALS have all been completed. Now we have to The permitting processes in the US and MINERAL MOUNTAIN Primarily due to market conditions and The State of South Dakota and, in particu- determine the best location for the mill, Canada are quite similar, each having fed- RESOURCES low gold prices both new gold discoveries lar, the Homestake Gold Trend area is in 86 tailings, waste rock storage and mine sup- eral and state or provincial oversight and were never developed. a safe, mining friendly jurisdiction with 87 port facilities to complete the pre-feasibil- regulations. One advantage Alaska has above average infrastructure, low cost ity study by Q1 2018. over Canadian jurisdictions is the relation- What are your exploration plans for Ro- of exploration with a strong available la- The Bornite property is substantially larger ship the Alaskan Native Corporations have chford? bor force. Homestake Mining Company, than Arctic, containing roughly six billion with the mining industry. Alaska settled its Conceptually, we are planning to drill mined continuously for 135 years and was pounds of copper at 1% copper open-pit aboriginal entitlement rights under a piece 20,000 meters in 2017, divided equally be- one of the first mining companies to list on and 3% copper underground grades. We of legislation called the Alaskan Native tween the Standby Mine deposit and South the New York Exchange. The Homestake are still determining whether the cobalt Claims Settlement Act in 1971. We work Cochrane trend. Typically, our method of Mine is known globally as the largest and found on the property will become part of with the NANA Regional Corporation, drilling will be to target the gold zone with richest gold deposits if it’s kind. In South our resource. We have only been exploring an Alaska Native Corporation which has a pilot hole, and, based on positive analyti- Dakota, local communities and the gov- the property for three years, so we made a long history of mining gained by de- cal results of the mineralized intersection, ernment recognize the economic impact a strategic decision to focus on Arctic veloping and operating the Red Dog zinc we drill a series of multi-directional holes that the mine had in the state and its impor- and find a partner to help us with Bornite, mine with Teck. Red Dog has paid NANA off that pilot hole. This drilling plan mini- tance to the local economics in the nearby which we did by announcing an option to about $1.5 billion in royalties, which has mizes actual drilling costs and greatly re- communities by creating jobs. For exam- 50/50 joint venture with South32. South32 gone toward funding the Northwest Arctic duces surface disruption. ple, the Wharf Mine, a few miles north of is a large metals mining company produc- Borough government and the local school Can you provide us with an overview of Our database compilation is also telling us the Homestake Mine, is currently an opening a variety of metals; however, they do district. We reached an agreement with the Rochford Gold System? that we need to pick up a couple of other pit producing mine in the area adjacent to not currently have a copper producing as- NANA in 2011 and they have been very Our technical team had extensive inter- strategic land packages after securing the a ski hill, a testament of the community set in their portfolio, which makes us an supportive of our efforts to advance the national experience with iron formation necessary financing to acquire these prop- working in harmony with mining. Our cor- attractive investment for them. We had Upper Kobuk Mineral Projects. hosted gold deposits including the Black erties. We are also planning to expand our porate mandate is to be responsible, cor- expressions of interest from other com- Hills, such as in the Mount Magnet near airborne Mag-EM survey both north and porate citizens by exploring sensibly and panies, but South32 proposal recognized What is your strategy to maintain share- Kalgoorlie in Western Australia as well as south of the present survey area and have by protecting our environment. During the the value of the work we have put into the holder value going forward? the Meliadine (Nunavut, Canada) deposit a professional geophysical consulting drilling programs, we guard against drill property, as well as the amount of capital Trilogy Metals’ strategy, in short, is to ex- and the Musselwhite deposit in North- group further massage and refine the sur- fluids spilling into the local watersheds, our shareholders have invested. The value ecute our plan. We will continue working western Ontario, Canada . I attended and vey data. As well, we would like to com- and we re-seed all of our drill set ups and of the deal is based on what our sharehold- toward our pre-feasibility study on Arctic graduated from the South Dakota School plete an airborne gravity survey over some access roads. To maintain a strong rapport ers have spent on the property, as opposed for completion in Q1, 2018, and we will of Mines located in Rapid City, South Da- parts of the property to better define the with the local governing bodies and the to the market’s perception. South32 will look forward to some exciting drilling re- kota. The Homestake Mine was a major thicker parts of the iron formation bands. Bureau of Land Management, we engage invest $10 million per year for three years sults at Bornite later this year. Investors economic stimulator for both Rapid City As evidenced lately, the industry right now the top-consulting firms that are familiar ($30 million) and then to form a 50/50 JV can look forward to a lot of news-flow and the School of Mine. While attending is very susceptible to new gold discover- with the drill permitting process to help us they must contribute $150 million. That from this year’s activities. ▬ the university, I became familiar with the ies and companies announcing significant guide us. ▬

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Image courtesy of Katie Bromley

The need to develop cleaner technologies ongoing urbanization trend worldwide, the Tesla’s models are far from being a com- fact, graphite prices are largely determined will be one of the main innovation need to develop efficient and clean means mon sight in metropolises worldwide, its by its consumption in steel, a market that drivers for years to come. The rhetoric of of transportation for hundreds of millions products’ potential is highly praised and has remained stagnant over the past years. “ politicians and the business community of new urbanites globally has become im- the motor industry has bet on an electric However, graphite will be increasingly tied increasingly stresses the need to protect perative in order to avert environmental future with BMW, Nissan, Daimler, and to the electric battery market for vehicles the environment by improving means crises with grave health consequences. others announcing ambitious plans. and energy storage as both synthetic China is the main producer of graphite in the world but our operations are much of transportation, energy storage and It is under these circumstances that zero- This paradigm change has brought atten- graphite and natural spherical graphite for more environmentally friendly compared to the Chinese. In our case, we will generation capacities. In every industry, emissions mobility has emerged as one tion to the commodities needed to produce anode material is used for these batteries, not use acid. It is an awareness issue that is coming more into the light because the economic incentive for developing of the most followed-after technological lithium-ion batteries, mainly cobalt, nick- comprising roughly 15% of the total consumers are increasingly mindful of where their devices were made and under products and technologies that are also trends. For years, automakers have focused el, lithium, copper, and graphite. These so- cost of a cell. In order to highlight the environmentally friendly is imperative on producing more efficient, less fuel in- called ‘green metals’ have garnered atten- importance of graphite for years to come, what conditions. but analysts increasingly agree that eco- tensive vehicles but only as of late has tion as of late since demand is expected to Tesla CEO Elon Musk has declared: “Our friendly also means business-friendly, and the impetus of totally electric cars gained soar importantly as the transport industry cells should be called Nickel-Graphite, the mining community has already paid traction. In this regard, the Silicon Valley moves toward an all-electric future. Esti- because primarily the cathode is nickel and - Anthony Huston, attention to this trend. electric carmaker Tesla is largely behind mates suggest that by 2035 there could be the anode is graphite with silicon oxide.” president and CEO, According to the latest figures by the Unit- the hype in the car industry’s electric revo- over 140 million electric vehicles circulat- Conservative estimates suggest that the Graphite One ed States Environmental Protection Agen- lution. This company founded only in 2003 ing, up from just over one million today. battery anode market for graphite will cy, roughly 14% of global greenhouse gas has already exceeded the market value of Despite the name, lithium-ion batteries have tripled from 2015 to 2020, to at least emissions were derived from transporta- legendary industry giant Ford Motor Com- contain from seven to ten times more 250,000 tonnes. Nonetheless, graphite tion and in the United States, the share is pany and briefly exceeded that of - Gen graphite than lithium, partly the reason production is confined to only a handful of almost twice as large, accounting for 27% eral Motors in April to become the United why graphite has until now, been countries, with China alone accounting for of total greenhouse gas emissions. With the States’ most valuable automaker. Although somewhat overlooked by the markets. In 65% of global graphite production.

Image courtesy of Katie Bromley

What have been the major developments for their buck and really make a drastic for BBA over the past year? and dramatic improvement in their project The past year has been very exciting for before it gets built. We are a very strong BBA as we have come through the down- company in commissioning and the start- turn in a very good shape and our backlog ing up of projects. In the end we want to be increasing. We are a fairly diversified com- with our clients during their operations and pany, with mining and energy related work help them on optimization and efficiency. being fairly balanced in terms of revenues. Usually the consulting and engineering We see activity increasing in the mining companies do the design but do not stay sphere. We are building a laboratory in the along as the projects mover forward, how- Toronto area to provide proprietary metal- ever, we want to be on site during the lurgical testing, to allow our engineers to whole period. We find that this serves as Colin practically test some of their ideas and to feedback and continuous improvement for support our in-house design capabilities. our clients and us. Hardie We are broadening our scope, looking at resource modeling and resource estimates How do you help clients reduce opera- while we also have a new teams with ex- tional costs? pertise in environment/permitting, tailings In our front end studies mining we ensure management facility design and under- that we optimize the operating costs of ground mining engineering. With these de- the project as those are often more impor- Director, Mining and Process Studies, velopments, we are going to be able to be tant to the overall project economics than Mining and Metals a one-stop shop for companies that want the initial capital. We usually review the BBA to have one solution provider. All of this projects and highlight opportunities that 90 growth has been organic and our company would help us to compress the footprint of 91 is on the lookout for small engineering and the project and enhance overall optimiza- consulting companies in the Vancouver tion. We are very good at making the best Chinese dominance over the graphite Tesla’s $5 billion battery Gigafactory in Jamie Deith, president at the company area to support our strategy there. economic project, for example we have market has not only worried clean-energy Nevada. Speaking about Graphite One’s explains: “We have a long-term supply helped clients reduce energy costs by per- investors but also consumers, worried prospects, Anthony Huston, president and contract with a rather large American What is your growth strategy in British forming ore sorting and separation as early that the raw materials used to power their CEO, explains: “Graphite One’s goal is graphite purchaser for 3,000 tons per Columbia and Yukon? in the process as possible, as crushing and day-to-day devices are often mined in to process and upgrade the graphite at our year, and they could potentially purchase Currently we prove services on automa- grinding are very energy-intensive. precarious conditions and under dubious plant in Alaska. It must be economically considerably higher quantities than that… tion, electrical engineering and mechani- environmental circumstances. viable and we are currently working from a logistical perspective, Eagle cal engineering from our Vancouver office What trends have you identified in terms Therefore, the mining community has paid closely with the Alaskan government. We Graphite is by far the closest graphite but we would like to have more of a local of demands from your clients? increased attention on the development are hoping the state government helps us project to what is expected to be the biggest presence. We are trying to find a group that Clients are increasing asking for commis- of graphite projects in jurisdictions that with power costs so that we can keep our source of demand in North America, is in the geotechnical and environmental sioning, ramp up assistance, and long term are ethically more aware, such as North operation local instead of using a plant which is Reno, Nevada. There is a nearby engineering sphere, especially in B.C. be- strategic planning. They’ve cut back on in America. In the northernmost U.S. state in Washington state…Graphite One is rail line that connects us to Nevada with cause our environmental group in Eastern house technical teams and this represents of Alaska, Vancouver-based Graphite One financed through the pre-feasibility stage, a single carrier. We also have the most Canada does not know the local regula- an opportunity for us. Unfortunately, peo- Resources is developing its namesake which we did through capital markets. Our environmentally-pristine operation that I tions and conditions in B.C. We like to be ple left the industry during the downturn project, with favorable results so far. next step is to find a joint venture partner am aware of in the graphite market.” close to our clients and this has been our and there is a shortage of mining engineers. Graphite One’s average grade is about to take the project to the next level, and Over the coming years, graphite projects strategy throughout Canada. In the current cycle, studies that were used 7.2%, more than the average grade of we aim to find this partner in the next six worldwide will receive a boost from a long- a couple of years ago have had to be up- the second largest graphite project in the months.” term surge in demand. Most importantly In what stage of the mining value chain dated, so we have had to re run these and United States, standing at about 2.5%. Located just 35 kilometers from the city for the region, North America is poised is BBA more active? review scenarios. Moreover, companies Moreover, the nature of the graphite of Nelson in British Columbia, Eagle to be a driver of graphite exploration We are just getting involved in the re- are increasingly looking at ways to reduce would allow manufacturers to use up to Graphite owns one of the two operational and production for the coming years, as sources estimation and evaluation area. the size of projects while making their 75% of the material because it is found in flake graphite mines in North America, the US-based companies outline ambitious Our strongest point is in front end studies, operation lives longer. Regulations on the a natural spheroidal form. The company Black Crystal Graphite Quarry. Over the plans in electric vehicle production and where our experts can bring added value to environmental side are changing and this is not only bullish on the graphite market past year, the company has successfully energy storage batteries, while expressing our clients. At the moment we are a little will result in companies getting second but also on graphite projects in North taken the project forward and in July, it their desire to source their raw materials less active in the project execution phase opinions and perform tailings dam safety America, as the region currently hosts announced a $30 million financing from to environmentally-friendly mining because there aren’t many projects in the analyses. We are involved in this aspect only two flake graphite facilities, despite San Francisco-based US Capital Partners. jurisdictions, such as the United States and pipeline. We think that in the front end and we count with experience in the min- increased demand and the opening of Speaking about Black Crystal’s strengths, Canada. ▬ studies area we can give clients better bank ing and hydro dam industries. ▬

What have been the major develop- you look at ore piles that need blending, Production, Development & Exploration page(s) ments and focus areas for SNC-Lavalin we use GPS tracking so that the operator Aben Resources 38, 45, 46, 51, 63, 64 over the past years? can know which piles have what varying Agnico Eagle 55, 57, 58 SNC-Lavalin is made up of four sectors, ore percentages. Another example is the Alexco 61, 62 including Mining & Metallurgy. Our main automation of trucks and mining equip- American Manganese 51 regions of operations for Mining & Met- ment, a lot has been done on this front but Anthill Resources 51 Ascot Resources 36, 37, 43, 46, 47, 51 allurgy are EMENA and Latin America now we are working in the integration of AuRico Metals 14, 19, 35, 50 while we also have a strong presence in this so the client can operate from a remote Avino Silver and Gold Mines 10, 11, 15, 26, 37, 41 North America, Australia and South Af- control center. We can provide data for our Bravada Gold Corporation 72, 82 rica. In terms of commodities, we think clients but the biggest challenge is to bring Brixton Metals 50 copper will become increasingly impor- the right data to make the right decisions. Carube Copper 50 tant because of the continued decrease of Colonial Coal 51 stockpiles. We think that we are heading SNC-Lavalin was awarded the Cana- Colorado Resources 41, 42, 50, 85 José J. toward a situation where demand is going dian Consulting Engineering Award Commander Resources 40, 48, 49, 50, to outstrip supply. Our Chile office has perfor your work on Goldcorp’s Eleonore Copper Mountain Mining 14, 16, 45 Copper North 37 formed really well, we have grown tremen- mine, to what do you attribute this rec- Suárez Defiance Silver 72 dously and we have secured a lot of proj- ognition? Dolly Varden Silver Corp 51 ects. Alumina is another commodity that We were honored to receive that award. Eastfield Resources 50 is looking positive, specifically in Africa. One of the things that our CEO acknowl- Endeavour Silver 72, 78, 79, 80 Fertilizers have also experienced a boom, edges is that we are a company that is EnGold 43, 51 President, Mining and Metallurgy and we are have significant experience people-oriented. I experience that in our Evrim Resources 37, 40, 42, 45, 51 Finlay Minerals 51 SNC-LAVALIN with ammonia and with non-ammonia projects in Turkey or Chile. Our culture is based fertilizers. Finally, we are looking to understand our clients, to address their First Point Minerals 50 92 at minerals for batteries for electric cars, needs and when we make mistakes, we Gold Reach Resources 51 93 Goldcorp 18, 30, 54, 55, 59, 62, 63, 72, 75, 78, 92 such as lithium and graphite. Overall, we recognize the mistakes and correct them. Golden Predator 51, 58 do not expect to see a lot of big projects Goldstrike Resources 51, 55, 58, 65 in 2017. However, we have changed our How is the company innovating on the Graphite One 72, 90 strategy and now roughly 40% of our work sustainability and environmental front? HDI Amarc 50 is devoted to sustaining capital projects, as This is one of the areas that I am more IDM Mining 17, 20, 35, 36, 50 opposed to working only on big-scale proj- proud of as we really stand out in terms Impact Silver 72, 81 ects. This strategy has allowed us to fare of technology. Our Chile office is a leader Imperial Metals 14, 40, 42, 49 the fluctuations of the commodities cycles. on thickened tailings technology, which Jaxon Minerals 51 means that we extract the water off the tail- Klondike Silver 50 Levon Resources 72 What are the key characteristics that ings and stack the tailings. This substan- MAG Silver 72 you look for in projects? tially decreases any problems with the dam Margaux Resources 43, 50 The rate of return, which should be be- failures. The imprint that we foresee from Metallis 38, 50 tween 12-15%. Second is that the miner our design is harmless to the environment. Mineral Mountain 72, 84, 87 has a supply chain, meaning that the ore ML Gold Corp 33, 42, 43, 48, 49, 51 that will be mined and produced already What are you finals remarks for our in- New Gold Inc. 11 has a market. Finally we want to have international readership? Newrange Gold 72 volvement in the project. If a project is vi- North America is an area of increased fo- Nicola Mining 13, 19, 21, 50 able as far as rate of return, off-takes and cus. We want to make sure that we find the North Isle Copper and Gold 51 OK2 Minerals we can be involved in terms of engineering right projects. When you look at our Min- 37, 38, 45, 51 Pacific Empire Minerals 40, 42, 48, 51 procurement and construction, and opera- ing and Metallurgy sector, it is evident that Romios Gold Resources 51 tions and maintenance then we are very in- we are different from our competition. We Rotation Minerals 51 terested. operate from pit to port and from studies Rye Patch Gold 72, 83, 85 to project exception, with a strong opera- Seabridge Gold 17, 35, 36, 37, 41, 43, 50 What trends have you noted on automa- tions experience. This makes us different. tion and technological implementations? We place a big emphasis on diversity, and You need to look at the whole supply chain. culture, and we are close to our clients, to When you look at stackers and/or reclaim- understand and meet their needs. In this ers, in many cases they can be automated regard, project assurance, done with zero because it is a dangerous operation and harm, on budget, on schedule, and at the you can be operate them remotely. When highest quality levels, is our trademark. ▬ This list intends to include just a representative sample of companies operating in the BC and Yukon Mining sector, and as such it should not be considered a guide to take investment decisions.

EDITORIAL AND MANAGEMENT TEAM

Production, Development & Exploration page(s) Serengeti Resources 43, 50 SilverCrest Metals 72, 80, 81 Project Director: Laura Brangwin ([email protected]) Skeena Resources 36, 42, 46, 50 Project Journalist: Eduardo Arcos Southern Silver 72, 82 Journalist: Kevin Norchi SSR Mining 72 Strategic Metals 50, 63, 64 Editor: Mungo Smith ([email protected]) Taseko Mines 11, 14 Operations Director: Miguel Pérez-Solero ([email protected]) Teck Resources 11, 12, 13, 18, 49, 86 Graphic Design: Gonzalo Da Cunha ([email protected]) Telson Resources 72, 81 Graphic Design (adverts): Özgür & Deniz ([email protected]) Thompson Creek Metals Inc. 11 General Manager: Alice Pascoletti ([email protected]) Trilogy Metals 72, 83, 84, 86 Triumph Gold 51, 55, 65 Victoria Gold 59, 62 Westhaven Ventures 51 Your opinion is important to us, White Gold Corp 51, 53, 57, 58, 65 please be in touch to share your comments on this report!

Government, Associations and Financial Institutions For updated industry news from our on-the-ground teams around the world, Association for Mineral Exploration in British Columbia 35, 44 please visit our website at gbreports.com, BMO Capital Markets 14, 75 subscribe to our newsletter through our website, Mining Association of BC 10 or follow us on Twitter: @GBReports Ministry of Energy, Mines and Petroleum Resources BRITISH COLUMBIA 12 RBC Capital Markets 71, 75 94 95

THANK YOU Services Ausenco 13, 22 AON Risk Solutions 76 Atlas Drilling 29, 41, 45 We would like to thank all the executives and authorities that took the time to meet with us. BBA 27, 91 Also, special thanks to: BDO Canada 22 Cementation Canada. 15 Denham Capital 76 ERM 22 ASSOCIATION OF MINERAL EXPLORATION OF BRITISH COLUMBIA (AMEBC) First Nations Energy and Mining Council of British Columbia 29, 31 http://amebc.ca/ Gekko Systems 25 Golder Associates 27 FIRST NATIONS ENERGY AND MINING COUNCIL OF BRITISH COLUMBIA IBK Capital 76 fnemc.ca KPMG 71, 74 Mackie Research Capital 77 MINING ASSOCIATION OF BRITISH COLUMBIA (MABC) Mc Millan LLP 30 www.mining.bc.ca Motion Metrics 23, 24, 25 Quantec Geoscience 28 RMS Ross 26, 27 MINISTRY OF ENERGY, MINES AND PETROLEUM RESOURCES Sandstorm Gold 77 www2.gov.bc.ca SkyTem 27, 28 SNC Lavalin 92 MINING SUPPLIERS ASSOCIATION OF B.C. (msabc) miningsuppliersbc.ca

TAHLTAN CENTRALGOVERNMENT http://tahltan.org/

This list intends to include just a representative sample of companies operating in the BC and Yukon Mining sector, and as such it should not be considered a guide to take investment decisions.