Mining in Ontario and Toronto’S Global Reach 2020

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020

Finance - Production - Exploration - International Projects - ESG Engineering & Consulting - Battery Metals - Innovation Dear Reader,

Global Business Reports (GBR) is delighted to be back in Ontario to provide our annual guide to the current mining landscape in Canada’s largest mineral producing province. In this edition of our Industry Explorations series, GBR pays special attention to Toronto's influence across the full value chain, from its financial institutions on Bay Street, the mining producers and juniors headquartered in the city with operations across the globe, to its innovation-led service sector. GBR’s research team was stationed in Toronto for three months, conducting face-to-face interviews with key decision makers throughout the industry to provide a holistic view of the companies and themes shaping the industry.

When researching the previous edition of this report, a wave of M&A activity had just begun, sparked by the all-share merger between Barrick and Randgold. One year later, and a glance at the map of Ontario mines shows a remarkable transfer of assets, with operations controlled by Goldcorp, Tahoe Resources, North American Palladium and Detour Gold now in the hands of Newmont, Evolution Mining, Pan American Silver, Impala Canada and Kirkland Lake Gold.

While producers have been making hay while the sun is shining, spurred on by gold at a 7-year high, the junior exploration community has languished with a dearth of financing available despite the cannabis and crypto booms subsiding. The likes of Great Bear Resources and Wallbridge Mining, however, have shown that the best projects can still attract substantial investment and trade at eye-catching multiples. The need to replace reserves is becoming more pressing and the global demand for metals has yet to diminish, so, for the mining-savvy investor, this is an opportune time to capitalize on high-upside, undervalued assets.

As environmental, social and governance (ESG) criteria move to the forefront of strategy for mining companies, investors, and governments alike, Ontario’s mature service sector has adapted to offer solutions that create a more sustainable, responsible, mining practice. An emphasis on innovation is no longer an afterthought; mining companies are looking to optimize production and efficiency. For a cyclical industry, the risk of standing still and not evolving should not be an option.

We would like to thank all our interviewees that have taken the time to provide their insights into the market. To all our readers, we encourage your feedback, and welcome interest in being interviewed for future reports.

When it comes to mining, what happens in Ontario, invariably does not stay in Ontar- io. In fact, it has the potential to influence the global sector. The following pages are an illustration of the sentiment of one of the world’s preeminent mining jurisdictions.

Alice Pascoletti General Manager Global Business Reports GBR Editorial Analysis CONTENTS / Mining in Ontario and Toronto’s Global Reach 2020 Arctic Ocean GBR journalists provide unique and first hand analysis Canada and insights into all aspects of National Capital the Ontario mining industry Province Capital after months on the ground Introduction to Ontario Global Reach

8, 22, 34, 50, 8. Introduction to Ontario 64. Toronto’s Global Reach 0 75 150 Kilometers 12. Factsheet 67. Interview with Torex Gold Resources 0 75 150 Miles 13. Interview with the Minister of Energy, 68. Interviews with Dundee Precious Metals 64, 78, 88, 100 Northern Development, Mines and and Teranga Gold N Indigenous Affairs, Government of 69. Interview with Global Atomic Ontario 70. Interview with Trigon Metals 14. Interview with Ontario Mining 73. Thoughts: Toronto’s Influence on Mexico Association (OMA) 74. Interviews with INV Metals, Adventus 15. Interviews with the Canadian Institute of Mining and Aurania Resources Mining Metallurgy and Petroleum (CIM) 75. Interviews with Steppe Gold and Ion and Natural Resources Canada Energy 16. Interviews with Women on the Move and PDAC 18. Interview with Laurentian University 19. Interview with Ormston List Frawley LLP The Battery Metal Supply Chain

78. The Battery Metal Supply Chain Expert Opinion Toronto’s Financial District 80. Expert Opinion Article: The Lithium Ion Battery Megafactory Supply Chain – Articles A Global Perspective 22. The Home of Mining Finance 81. Interview with Avalon Advanced Metals 23. Factsheet 83. Interview with Conic Metals Thought leadership from the 24. Interview with Toronto Stock Exchange 84. Interview with VanadiumCorp leading specialists on optimized and TSX Venture ExchangePaci c 85. Interviews with Frontier Lithium, Fortune cut-off grade determination 26. Interview with IBK CapitalOcean Minerals and First Cobalt and the lithium ion battery 27. Interview with Haywood Securities 30. Interviews with Red Cloud Securities and megafactory supply chain Global Mining Capital 31. Thoughts: Advice from the Investment Engineering and Consulting 46, 80 Community 88. EPCM and Consulting 90. Interview with Cementation Americas Mining in Ontario 91. Interview with DRA Global 92. Interview with Black Rock Engineering 94. Interview with SRK Consulting 34. Mining Production in Ontario 95. Interviews with CSA Global and 36. Interview with Newmont Environmental Resources Management 37. Interview with Barrick Gold 96. Interview with minera Solutions 38. Interview with Kirkland Lake Gold 97. The Big Four Have Their Say on ESG 39. Interview with Wesdome Gold Mines 40. Mining Operations Map 44. Interview with Almos Gold 45. Interview with De Beers Group Innovation 46. Expert Opinion Article: Modifying Factors and Optimized Cut-Off Grade Industry Determination 100. Innovation 102. Interview with Center for Excellence in Mining Innovation (CEMI) O N T A R I O Thoughts 103. Interview with Mining Suppliers Trade Canadian Exploration Association (MSTA) Advice and quotes from 107. Interview with Epiroc Canada industry leaders on attracting 50. Canadian Exploration 108. Interview with SafeSight Exploration investment, ESG, mining 52. Interview with Generation Mining 109. Interviews with Minetell and Maestro 53. Interview with Great Bear Resources Digital Mine in foreign jurisdictions and MINING IN ONTARIO AND 54. Interview with Noble Mineral Exploration 110. Final Thoughts TORONTO’S GLOBAL REACH 2020 innovation 58. Interview with O3 Mining 112. Company Directory Industry Explorations Global Business Reports 59. Interview with Talisker Resources 114. Credits Ottawa This research has been conducted by 60. Interview with Rockcliff Metals Ben Cherrington, Margarita Todorova 31, 97, 110 61. Factsheet and Diego Brando

Edited by Mungo Smith Graphic design by Gonzalo Da Cunha Toronto Atlantic A Global Business Reports Publication Ocean For updated industry news from our on-the-ground teams around the world, please visit our website at gbreports.com, subscribe to our newsletter by signing up to our VIP list through our website, or follow us on Twitter: @GBReports GBR • Industry Explorations • MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020

INTRODUCTION TO ONTARIO

» The minerals and metals we responsibly produce are irreplaceable components of daily life and modern technology. They are the building blocks that enable the construction of everything from life-saving medical devices to planet-saving clean technologies. As such, they are the foundation of Ontario's innovation- oriented, high-tech, creative economy. «

- Chris Hodgson, President, Ontario Mining Association (OMA)

Image courtesy of Fireweed Zinc EDITORIAL Global Business Reports Industry Explorations EDITORIAL

INTRODUCTION TO ONTARIO asked what steps the Ontario government gold and PGM space as Impala Platinum the minds of investors: “The effects are still agement takes all the credit, but when is taking to reduce red tape and stream- acquired North American Palladium for visible, and we see management and in- the share price drops, they argue it is not line the mining process, Minister Rickford C$1 billion in October, Kirkland Lake Gold vestors are still treading carefully.” management’s fault but the commodity pointed to the four mining-related clauses stunned the market with its acquisition of At the Denver Gold Forum in September price’s fault,” said Robertson, pointing to A global mining in the “Better for People, Smarter for Busi- Detour Gold for C$4.3 billion in Novem- 2019, the month gold traded at a six-year the post-2013 write-downs that caused ness” project. ber and China’s Zijin Mining Group bought high breaking the US$1,500 barrier, the shareholders to demand new leadership powerhouse facing Firstly, creating certainty for proponents Continental Gold for US$1.3 billion in main themes were the growing impor- and direction. submitting a closure plan by creating a December. By mid-December 2019, 348 tance of ESG (Environmental, Social and competition 45-day timeline for the ministry to make a deals worth more than US$30.5 billion had Governance) to investors, and companies decision; secondly, to streamline process- been agreed, according to Refinitiv Eikon emphasizing their commitment to remain Growing disparity: producers thrive as es and lessen confusion by amending the data. This figure is up from US$10.8 billion disciplined with capital allocation despite juniors languish regulatory framework; thirdly, amending in 2018 and even surpasses the previous the rapid generation of free cash flow that the mining rehabilitation code to ensure high of US$25.7 billion from 2010. flourishing precious metals prices were The OMA represents the mining produc- Ontario’s position as one of the world’s pre- influence, but even from a mining finance that it refers to the most recent version One of the most noticeable differences generating. This prudent approach from ers active in the province who, by all ac- eminent mining jurisdictions is clear from a standpoint, the days of spending an after- of dam safety; and lastly, improvements between the boom-time M&A surge in senior management is a legacy, you would counts, had a stellar year in 2019. Three number of metrics. As Canada’s leading noon on Bay Street to raise project finance to the land mass administration system to 2010 and the 2019 activity has been the like to think, of the numerous failed ex- of the eight mining companies in the in- producer of minerals, valued at C$10.1 bi- are no longer. make it easier for stakeholders to merge lack of premiums linked to the transac- cesses of the previous upcycle. augural TSX30 in 2019 – a list that recog- llion in 2018, with the second largest num- High energy and labor costs and lengthy individual claims. “The timeline to open tions, most notably Barrick’s no-premium Shareholders want management to show nizes the top 30 performing stocks on the ber of mining companies headquartered permitting processes are two of the main a mine is not at the speed of business or acquisition of Randgold, and the modest accountability and discipline throughout Toronto Stock Exchange over a three-year in one city (Toronto is second to Vancou- issues facing Ontario. Fortunately, the pro- commodity markets, and we are working 18% premium paid by Newmont for Gold- the entire commodity cycle, according to period – are Ontario mining producers ver) and as the traditional home of mining vincial government – led by Doug Ford’s to correct this,” acknowledged Minister corp. “The financial strategy we are seeing Ian Roberston, executive vice president of headquartered in Toronto. The success of finance on Bay Street where the TSX is Progressive Conservative Party, elected on Rickford. from companies is still very conservative,” communication strategy at strategic share- Kirkland Lake Gold (number four on the found, Ontario’s influence reaches far be- June 28, 2018 – and a network of mining “Ontario is blessed with commodities that commented Daniel Ricica, partner of KP- holder advisory firm Kingsdale Advisors: TSX30 and the best performing mining yond the borders of the province. associations are cognizant of these chal- are currently in demand, and the market MG’s energy and natural resources divi- “When times are good, mining compa- stock), North American Palladium (16) and However, remaining competitive in a lenges and have been proactive to estab- has been doing well, but in order to keep sion, explaining that, despite the robust nies may paint an overly optimistic picture Wesdome Gold Mines (19), shows that mi- global market place cannot be main- lish a more favorable climate for mining our industry thriving, we have to be com- gold price, a seven-year downturn and of where the company is and where the ning in Ontario can thrive despite high la- tained through reputation alone, and de- investment. petitive in the global arena,” stated Chris previous misuse of capital are still fresh in company is heading. In these cases, man- bor and energy costs. spite impressive production figures and a In his interview with Global Business Re- Hodgson, president of the Ontario Mining world-class mining ecosystem, there are ports, Greg Rickford, Minister of Energy, Association (OMA). signs that Ontario’s traditional position Northern Development, Mines and In- To this end, tangible progress has been of dominance has started to wane. The digenous Affairs from the Government of made, as dialogue between the OMA, Fraser Institute’s Mining Investment At- Ontario, emphasized a focus on key areas the government and Ontario's Workplace Increasing Exploration Success tractiveness Index ranked Ontario number in order to position Ontario as the lead- Safety and Insurance Board (WSIB) caused 20 in 2018, behind British Columbia (18), ing mining jurisdiction in Canada, includ- WSIB to end its unfunded liability charge, Nunavut (15), Manitoba (12), Newfound- ing expediting regulatory processes for reducing the employer's average premium land & Labrador (11), Northwest Territories mine production, strengthening spaces for rate to 17%. “These kinds of successes are

(10), Yukon (9) and Québec (4). Of course, industry-wide dialogue and creating fo- always the result of collaboration,” reflect- Mineral Exploration Research Centre the majority of these jurisdictions do not cused task groups to resolve a backlog of ed Hodgson. at the HARQUAIL School of Earth Sciences come close to matching Ontario’s global project-specific issues immediately. When “With high priced labor your competitive- Our goal is to advance the fundamental ness is in productivity,” noted Roy Slack, science that will discover the next president of the Canadian institute of Mi- generation of orebodies while training ning, Metallurgy and Petroleum (CIM), highly qualified personnel for careers » highlighting Canada’s role as a leader in in the minerals industry. implementing battery-operated and au- We want to maintain Ontario as one of the most competitive places for tonomous equipment, alternative energy We work with industry on collaborative exploration and reduce the regulatory burdens for extraction. Our goal sources and environmental responsibility. research projects across the world to is to provide the conditions so that mines can actually open, supporting “These advances help to offset the costs support the development of new all stages of the business. of deeper mines and higher labor and are exploration methods and technologies. critical to obtaining the social license we merc.laurentian.ca need to operate in a sustainable manner,” he added. - Hon. Greg Rickford, Minister of Energy, School of Earth Sciences Northern Development, Record M&A activity sweeps the HARQUAIL École des sciences de la Terre Mines and Indigenous Affairs – Government of Ontario industry Located in Sudbury, Ontario, a world class mining district, we provide 2019 ended much the way it started, with unrivaled exploration-focused research and educational opportunities. « a wave of high-profile M&A deals in the MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 8 Industry Explorations Global Business Reports 9 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 EDITORIAL Global Business Reports Industry Explorations EDITORIAL

The majors also had an outstanding 2019, If low commodity prices can no longer be maturely, effectively stunting the growth of The need to diversify of mining recruitment firm CJ Stafford & female-owned businesses to their first as Barrick saw its profits rise 45% to a re- blamed, what is causing this? “The con- these businesses at critical early stages.” Associates. US$1 million in revenue. cord US$1.37 billion in Q3, Newmont suc- solidation of the brokerage industry has The road block of lengthy permitting, an- Another factor holding the mining industry As well as the pressing need for young One of the companies involved in the Ar- cessfully brought its new Borden “mine of meant a reduction in retail investment. other thorn in the side of cash-strapped back from fulfilling its potential is a lack of professionals in the mining industry, a temis project is Covergalls, which designs the future” online in Timmins in October, Whilst before investment in junior mining juniors, has also been noticed by service diversity in the workplace. The Canadian continued lack of gender diversity is limit- and manufactures coveralls and safety and Vale commenced the C$750 expan- stocks used to be commonplace, that it is companies such as South African OEM mining industry is projected to need to hire ing the talent pool: “Though the number equipment for women in mining. Alicia sion of its Copper Cliff mine in Sudbury on no longer the case,” suggested Denis S. Multotec: “Regulatory frameworks are al- roughly 80,000 workers by 2030, accord- of females graduating in engineering sci- Woods, Covergalls creator, started the the back of a robust nickel forecast. Frawley, partner at Ormston List Frawley ways important, but we need to make sure ing to the 2020 Canadian Mining Labour ences has increased across the board, the company for practical reasons: “When I en- For the junior exploration sector, the con- LLP. that the junior companies that are invest- Market 10-Year Outlook by the Mining In- percentage of women in mining has hardly tered the mining industry approximately 20 text is vastly different. In Q1 2016, when Another factor is predatory short selling of ing in exploration see their projects come dustry Human Resources Council (MiHR). changed over the last decade and remains years ago, I had to buy my work gear, and, the gold price spiked by 15%, equity stocks, according to Terry Lynch, founder to fruition closer in time,” commented In a country with low unemployment and around 16%,” added Stafford. to my surprise, there was absolutely noth- raises trebled in the following months. In of the Save Canadian Mining advocacy Anthony Artin, product and business de- high competition, the need to convince This sentiment was echoed by Heather ing for women,” she reflected. 2019, gold reached record highs in Cana- group, being backed by the likes of Eric velopment manager at Multotec Canada. young people and women to work in mi- Gamble, CEO & founder of Women on In the years since, Woods has presented dian dollars, but investment has not trick- Sprott, Rob McEwen and the OMA. In An example of the disparity between pro- ning has never been as pertinent. the Move, whose Artemis project offers the Covergalls brand in front of Dragons led down to the junior market. Despite 2012, the Investment Industry Regulatory ducers and explorers is illustrated by the Dr. Ross Sherlock, director of the Min- a capacity building program that accel- Den and has been approached by New- the 2019 slowdown of both the cryptocur- Organization of Canada (IIROC) and the current client base of Major Drilling, with eral Exploration Research Centre (MERC) erates business outcomes for women mont, Yamana Gold and Kinross, who are rency boom of 2017 and the burgeoning Canadian Securities Administrators (CSA) a 90/10 percentage ratio of seniors and at the Harquail School of Earth Sciences entrepreneurs in the mining and metals all looking to diversify their workforce. As cannabis market of 2018, retail investment removed a trading rule known as the “tick intermediates versus juniors, according to (HES) at Laurentian University in Sudbury, industry: “Over 30% of Canadian univer- the brand gains traction, Woods has the in- has not yet returned to mineral explora- test,” which had restricted short selling president and CEO Denis Larocque. How- commented on how the perception of mi- sity graduates that study STEM (science, tention of expanding internationally: “Cu- tion in Canada. This is not an Ontario- to positive price changes at the time of ever, offering optimism for the exploration ning industry jobs does not align with the technology, engineering, and mathemat- rrently all production is done in Canada, specific situation, as S&P Global Market the sale. “The current rules in our equity sector, Larocque compared the current reality: “Youth often perceives resource ics) courses are women. However, a very but with the recent launch of our innovative Intelligence metals and mining research markets have created an environment for climate to the start of the last upcycle in development, including oil and gas, as small percentage of women see mining as workwear program and “3 levels of engage- reported global exploration budgets had predatory short selling practices to thrive, 2004: “We are now seeing the same phe- low-tech, manual and environmentally a feasible career path,” she stated. ment” we are partnering with clients like declined by US$300 million, or 3%, in particularly on our vulnerable junior mar- nomenon with seniors investing in junior destructive. However, those with direct ex- The Artemis project has been orchestrat- Yamana and the communities surrounding 2019. Furthermore, Australia spent more kets,” said Lynch, continuing: “For smaller companies, which I believe will soon be perience with the industry soon realize the ing collaboration between mining com- their operations to uplift the communities on exploration than Canada for the first cap mining companies, short selling activ- attracting more investment into the junior opposite is true. Resource development panies such as McEwen Mining, Dundee and make them a part of the manufacturing time in 18 years. ity spooks true investors into selling pre- sector.” is one of the most beneficial activities for Precious Metals and Yamana Gold to take process of Covergalls workwear. ■ society that can create a lasting positive legacy.” Laurentian University has partnered with entrepreneurial companies such as Orix Geoscience to show the benefits a career in geoscience can offer, including aspects of the outdoors, technology, creativity, environmental sustainability and innovation. “Cutting edge new tools are being used to solve geoscience problems and discover new resources. Seeing the modern image of geoscience has proven to be inspirational,” added Sherlock. Orix Geoscience now employs over 60 people in three offices in Toronto, Sudbury and Winnipeg and was recognized by the Globe and Mail as one of the Top 50 Work Places in Canada. Over 50% of Orix’s employees are women, and 15% to 20% are foreign-born, according to the company’s co-founder Shastri Ramnath, who helped launched the “Shattered Glass” initiative to promote women to company boards. “Most of Orix’s workforce are millennials, and we think they have the right mindset – wanting to do something meaningful at work but also enjoy a work/life balance.” “To remain competitive mining companies must adapt to the new generation of talent, their demands, ambitions and aspira- tions,” suggested Chris Stafford, president

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 10 Industry Explorations Global Business Reports 11 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 FACTSHEET Global Business Reports Industry Explorations INTERVIEW

MINING PRODUCTION 2018 BY PROVINCE Where is your attention focused to im- principles and values. We can never build a mine that is proximal but not ac- Source: Natural Resources Canada prove the mining sector in Ontario? We are working on expediting regulatory cessible to communities; the positive ef-

C$000 processes for mine production, strength- fects of an operation must reach every- 12,000,000 ening spaces for industry-wide dialogue, one. Mines have the potential to be the and creating focused task groups to im- life source of a town, bringing job pros- 10,000,000 mediately resolve a backlog of project- pects and kick starting other businesses. specific issues. In terms of Indigenous consultations, we 8,000,000 One of our priorities is to help enterprises are developing a standardized approach with their residual regulatory matters so to memorandums of understanding and 6,000,000 that they can move to their next stage impact-benefit agreements. We want to

4,000,000 of development. Our strategy has been establish bilateral agreements that are to form teams of senior elite talent and standardized, have realistic expectations, 2,000,000 ministry officials that work intensively to and allow for clear timeframes. solve project specific issues. We want to 0 provide immediate and individualized so- Can you comment on the infrastructure Greg lutions for operations at an impasse. The plans at the Ring of Fire? teams deal with challenges at all stages The corridor will link communities and C$000 C$000 C$000 of the mining cycle from exploration to extend access to health and social ser- Ontario 10,060,429 Northwest Territories 2,110,526 New Brunswick 344,809 Rickford closure plans. This is part of our broader vices as well as technology. The reasons Quebec 9,986,901 Alberta 2,031,743 Yukon 216,767 strategy to assist with issues that stem to develop go beyond mining. We know British Columbia 9,656,918 Manitoba 1,504,155 Prince Edward Island 4,569 from an excess of red tape. that the mineral profile is world-class and We are working to establish forums that that there is immense potential to create Saskatchewan 6,737,090 Nunavut 1,164,280 bring together the entire complexion of wealth. Because of its resource and size, it Newfoundland and Labrador 2,817,075 Nova Scotia 371,538 Total Canada 47.006.800 senior stakeholders in the sector. The aim can be transformative asset for the prov- is to strengthen the dialogue at an indus- ince. try level and tackle a mining agenda col- Minister of Energy, laboratively. The Premier left a mandate How should the industry address the ONTARIO ANNUAL GDP PER WORKER (2015) EXPLORATION PLUS DEPOSIT Northern Development, for this initiative and is continuously up- human resource issue of a growing Source: Ontario’s Panel on Economic Growth and Prosperity (Dec 2016) APPRAISAL EXPENDITURES BY Mines and Indigenous Affairs C$ dated on its findings. skills deficit? 300,000 MINERAL COMMODITY SOUGHT, 2019 GOVERNMENT OF ONTARIO Our role as government is to create the Source: Natural Resources Canada What is the Ministry doing to reduce conditions that stimulate the workforce 250,000 the red tape and streamline the mining for the industry. With that being said, I be- 200,000 process? lieve there is tremendous opportunity to “Better for People, Smarter for Business” mobilize an Indigenous workforce. 12 % 150,000 is our project to make regulations more of the mining workforce is Indigenous and

100,000 efficient. It aggregates policies across all I believe this percentage can grow. » ministries and there are four clauses spe- 50,000 cific to mining. One – creating certainty How can Toronto retain its position as a ONTARIO for proponents submitting a closure plan 0 global mining leader? by creating a 45-day timeline for the min- We want to maintain Ontario as one of the Mineral Ore Motor Vehicle and Finance and Life Economy “Better for People, Smarter for Mining Parts Manufacturing Insurance Sciences Average istry to make a decision. Two – to stream- most competitive places for exploration Business” is our project to make line processes and lessen confusion by and reduce the regulatory burdens for ex- regulations more efficient... amending the regulatory framework. traction. Our goal is to provide the condi- ONTARIO CAPITAL INVESTMENT IN MINING The timeline to open a mine is Three – an amendment to the mining re- tions so that mines can actually open, sup- Source: Ontario’s Panel on Economic Growth and Prosperity (Dec 2016) habilitation code to ensure that it refers porting all stages of the business. Many $ million C$ millions not at the speed of business or to the most recent version of dam safety. companies are based here but do not nec- 3,500 Base Metals 136.1 commodity markets and we are Four – improvements to the land mass ad- essarily operate here: I intend to correct 3,000 Precious Metals 335.7 working to correct this. ministration system to make it easier for this. Incentives and regulatory frameworks 2,500 stakeholders to merge individual claims. play an important role and we are working Iron - 2,000 The timeline to open a mine is not at the to address both aspects. Through policy Uranium - speed of business or commodity markets corrections we can energize the sector. I 1,500 and we are working to correct this. am a firm believer that the conditions ex- 1,000 Diamonds 10.1 « ist to fuel a bull market. If we provide the right conditions to encourage the industry 500 Others 33.3 How can the authorities help balance mine development with the consider- at a provincial level, the effects will reach 0 Total 515.2 ations of Indigenous communities? Toronto and this will help boost its role as 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Canada’s value proposition is its set of a capital lender worldwide. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 12 Industry Explorations Global Business Reports 13 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

What have been some of the key milestones achieved by the OMA in the last two How can Canada maintain its competi- create and deliver knowledge, to create a years? Roy tiveness in a global market despite robust network, and to facilitate mineral First and foremost, we’re continuing to make strides on our safety performance. Over high labor costs? literacy and public awareness. the past 30 years, we’ve improved lost time injury frequency by 96%. In 2016 and 2018, Canadian mining has been very innova- our industry met its zero-fatality objective - a significant achievement on our way to Slack tive in many areas; its mineral processing In what path would you like to see the achieving zero harm. These kinds of successes are always the result of collaboration. technology is only one example. We are industry moving beyond 2020? We’re proud of the work we do with the government and other partners to build a the leading country in implementing bat- One of CIM’s three main aims is to im- world-class safety culture, and we are committed collaborating on a number of other tery-operated and autonomous equip- prove public awareness and mining lit- files that have a big impact. For instance, we’ve had a constructive dialogue with the ment, and a leader in alternative energy, eracy. The public must realize that miner- Workplace Safety and Insurance Board that resulted in the WSIB ending its Unfunded President as well as in safety and environmental als and mining will be a big part of the Liability charge, leading to a reduction in premium rates – a big boost for competi- CANADIAN INSTITUTE OF responsibility. These advances help off- solution to climate change, enabling tiveness. Energy is also a large component of our cost structure in Ontario, so we are MINING, METALLURGY AND set the costs of deeper mines and higher electric, battery and alternative energy working with the government to have industrial energy pricing that is more transparent, PETROLEUM (CIM) labor and are critical to obtaining the so- solutions. Electric equipment in under- more predictable, and lower cost. We’re also putting in programs and adopting new cial license we need to operate in a sus- ground mines also reduces ventilation re- technologies to help reduce energy consumption. tainable manner. quirements, which is typically the largest People are realizing they have to imple- single power draw in underground mi- Chris How does the OMA’s “Meet the Miners” event bring together industry, government innovative ideas. We are seeing a ning. Not only does it change the power ment and communities to address pertinent issues? more open industry not only in discuss- source, it reduces the power need. We have a long history of working constructively with governments and communities ing innovation but integrating it in prac- Additionally, I feel our industry has gone Hodgson of interest to build consensus on issues that matter to our industry and to the people tice. Canada must be a leader in this from a state of compliance to one of of this province. For the past 41 years, OMA has hosted a Meet the Miners event at regard in order to be economically sus- commitment. It is not only about adher- the Ontario Legislature. The day includes meetings, presentations by thought leaders, tainable. ing to the laws and regulations. We must panels that tackle key challenges and opportunities facing the industry, and a large re- go beyond that. For instance, the Cana- ception. It is an opportunity for industry leaders to meet with policy-makers and ministry Can you elaborate on the One CIM ini- dian industry has become a leader in re- staff, hear what their priorities are, and to share our successes and concerns. Meet the tiative? lations with First Nations peoples and the Miners is about making the connections between our policy-makers’ objectives and The CIM has been around for a long time environment. This creates new standards what mining can deliver, provided we have good policies and governance structures and the goals have not changed. They and, while the industry has done well in President in place. are strong goals that help our industry: to this regard, it must continue to do so. ■ ONTARIO MINING ASSOCIATION (OMA) How important is the mining industry to Ontario’s economy? Though the number fluctuates with various commodity price changes, mining in On- What does the Canadian Minerals and nearly as long-term in the Western world tario has revenues of around C$10 billion per year. The industry creates 26,000 direct Janice Metals Plan (CMMP) hope to achieve? as they are in China. jobs and approximately 50,000 indirect jobs in mineral manufacturing and processing. CMMP was initiated approximately three It is important to note that the average weekly wage in Ontario mining is 77% higher years ago, and is a pan-Canadian strat- Could you expand on NRCan’s Mining than the average industrial wage in the province, so these are good, high-paying jobs. Zinck egy for metals and minerals that has been Value for Waste program? The impact of mining goes beyond mineral extraction and processing. co-developed by the federal, provincial The tailings challenge in Canada is enor- » and territorial governments. The CMMP mous. Approximately 200 million mt of Can you elaborate on the importance of strengthening relationships between mi- was formally launched at PDAC 2019, and tailings are produced annually in Canada. determines priorities and objectives for After decades of mining and processing, As 2020 marks our association’s ning companies and local communities? We aim to trigger growth and diversification in the local economy. While important in Director – Green Mining Innovation, six areas: economic development and the metal value of historic tailings is sig- centennial, we also want more any community, this approach is imperative in remote ones, where mining can have an CanmetMINING the competitiveness of the minerals and nificant, and there is an equivalent level people in the province to discover outsized impact. Aligning interests and reconciling values with Indigenous communi- NATURAL RESOURCES CANADA metals sector; advancing the participa- of liability. Couple this with the public and embrace all that our industry ties is an important element in our relationship-building. Over the last few decades, tion of Indigenous peoples; communi- concern regarding mine waste, the op- has become over the past 100 Indigenous-industry partnerships have evolved tremendously through the conclusion ties; Canada’s global leadership; envi- portunity to re-examine these wastes as years, and all it has to offer. This of various types of agreements related to mine development. These have proven to ronment; and science, technology and resources is very compelling. In fact, the innovation. The first in a series of action grade of some tailings far exceeds what is is why we launched #ThisIsMining, be successful in securing benefits for many Indigenous communities. We are working with the government to ensure that an equitable model for Resource Revenue Sharing plans will be launched at the PDAC in mined today. As well tailings often con- a campaign that aims to surprise further aligns community and industry interests and development goals. 2020. tain several of the critical minerals such as and inspire, motivating people to tungsten and rare earths. The Mining Val- form opinions about our industry Where would you like to see the Ontario Mining industry by the end of 2020? Why does China hold such dominance ue for Waste program is a pan-Canadian based on curiosity, discovery and We would like to see Ontario as the number one mining jurisdiction for capital, not only over the critical mineral space and how effort to develop tools, technologies, engagement. invested in operating mines, but also in juniors, as a robust mining cycle relies on vi- can countries such as Canada catch up? and policies to de-risk and accelerate brant mineral exploration that leads to discoveries, which can be turned into new mines. China’s dominance in the critical miner- demonstration and full-scale waste re- As 2020 marks our association’s centennial, we also want more people in the province al space started 30 years ago and their processing / repurposing projects. The to discover and embrace all that our industry has become over the past 100 years, and long-term strategy allowed them to beat goal is to reduce mine waste liability and « all it can offer. This is why we launched #ThisIsMining, a campaign that aims to surprise competitors. At that time, everybody was environmental impact, while providing and inspire, motivating people to form opinions about our industry based on curiosity, comfortable allowing China to supply local and national value for Canada (jobs, discovery and engagement. ■ products. Our resource strategies are not resources, etc.). ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 14 Industry Explorations Global Business Reports 15 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports 2020 March 1 – 4 Can you introduce Women on the Move (WOM) and outline the company’s vision? Metro Toronto Convention Centre Heather Women on the Move (WOM) is Canada’s leading business accelerator for female business owners/entrepreneurs ready to scale. Our value proposition to the community is that we Toronto, Canada take female-owned businesses to their first US$1 million in revenue. Currently, less than Gamble 1% of female founders achieve over a million dollars in annual revenue and we believe that these businesses just need some capacity building to achieve success. The company was established in 2014 and has since trained, coached and advised over 1,000 female founders. WOM’s main goal is to equip female founders to establish successful and sustainable business ventures, with a mission to have 10,000 women achieve this success. CEO & Founder WOMEN ON THE MOVE How did you get the idea for WOM’s mining and metals-focused Artemis project? REGISTER AT pdac.ca/convention My first client was a mining engineer based in Santiago, Chile – a single consultant who wanted to start a business. We worked together to get her company to US$1 million in Purchase an All Access Pass and enjoy unlimited programming, networking events & more! revenue, which was achieved within a very short amount of time. Working with this client, I was introduced to the mining industry. A significant number of women in the mining industry heard about the momentum we were building and approached WOM for assistance. I realized that it was not possible to only be helping one business at a time and had to come up with a plan to build capacity in a collective. This is how the Artemis project was born. The program is designed to equip women entrepreneurs with senior level sales training, senior level sales coaching, senior level sales business introductions and senior level sales business connections. EXPAND YOUR NETWORK Do you think many women see the mining industry as a feasible career option? Over 30% of Canadian university graduates that study STEM (science, technology, en- 25,000+ attendees gineering, and mathematics) courses are women. However, a very small percentage of women see mining as a feasible career path. Looking at the sector, De Beers is the only from 132 countries mining company which has demonstrated that they are committed to attracting women into the industry. ■ GAIN INSIGHTS FROM How did PDAC 2019 compare to previous editions of the event? INDUSTRY EXPERTS Felix What set PDAC 2019 apart from previous conventions is the fact that it was attended by Canada’s head of state, and was the second time a sitting Canadian Prime Minister has 780+ speakers Lee visited and spoken at the event. In Q3 2019 there were raises in the precious metal prices, but equity has not returned to the junior market. What do you attribute this to? The amount of equity raised dropped off significantly in 2018, to the extent that the ACCESS TO CAPITAL amount of equity raised in 2018 was actually below the previous low in 2013, and it President seems that even a lesser amount of equity is going to be raised in 2019. 2,500+ investors PDAC To that end PDAC is encouraging the government to keep in place certain fiscal incentives to drive investment into the exploration side of the business, such as the maintenance of the flow-through share (FTS) regime as well as the renewal of tax credits. Ap- proximately 80% of all equity raises for exploration in Canada have been flow-through, PROMOTE YOUR BUSINESS which illustrates its importance. What do you think that Canada can learn from other jurisdictions to help foster a 1,100+ exhibitors better mining climate? Finland is a prime example of the value of infrastructure and how it can assist exploration and mining. Infrastructure plays a huge role in bringing down the overall cost of exploration, and that is why PDAC continues to advocate on a federal level for investment to develop the far North.

What do you think Canada should do to maintain its role as a global mining leader? Historically, Canada has enjoyed a dominance in the mining industry, but we should not rest on our past laurels and recognize the fact that Canada faces increasing competition. We should push for increased government geoscience programs in order to collect more geological data. Ultimately, explorers go where there is information and where 2020 there is sufficient infrastructure in place to make a project economically feasible. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 16 Industry Explorations

Global Business_PDAC20_ad.indd 1 2019-09-23 12:21 PM INTERVIEW Global Business Reports Industry Explorations INTERVIEW

gas because of the pipelines. Mining is Denis S. not viewed as being that closely related Dr. Ross to climate change and therefore it does not have that dynamic, however, this Sherlock Frawley may change in the future when the general public realizes how important strategic minerals are for technologies such as electric vehicles. Mining in Canada is more of provincial responsibility.

Director of the Mineral Exploration Research Centre (MERC) What type of mining clients does Partner LAURENTIAN UNIVERSITY Ormston List Frawley work with and ORMSTON LIST FRAWLEY LLP what can the firm offer them? Ormston List Frawley works with junior and exploration-stage mining companies. What is the focus of the Mineral Ex- utilize the details of the data being gen- How can the mining sector become Our lawyers recognize that business and ploration Research Centre (MERC)? erated and consequently industry has a more attractive career option for a Which mining-related projects of inter- boutique brokerage firms that specialize legal needs in the mining space are dis- Our goal is to advance the fundamental become data rich and knowledge poor. young talent pool? est has Ormston List Frawley LLP been in mining dominate the capital markets. tinct from those of other industries, espe- science that will discover the next gen- MERC and HES are combating this trend Youth often perceives resource develop- involved in in the last 12 months? cially for small to mid-cap companies. We eration of orebodies. Our belief is that by fostering a deeper understanding of ment as low-tech, manual and environ- An important client of Ormston List Fraw- To what extent do federal elections im- understand that they need legal coun- the discovery of orebodies has the big- ore systems to produce geoscientists mentally destructive. However, those ley is Noble Minerals. We are assisting pact the country’s mining climate? seling that is affordable, quick, relevant gest multiplier effect in the creation of who are better equipped at interpreting with direct experience with the industry them on matters related to a large pro- Regardless of which political party wins and convenient. In addition to this, we new wealth for society. complex multi-parameter datasets and soon realize the opposite is true. Re- perty they own of more than 50,000 hect- in Canada, the transition is relatively are also able to fulfill many of the back- MERC works with industry and govern- can navigate within a data-rich work en- source development is one of the most ares in Northern Ontario. smooth for mining and there is rarely a office functions related to documentation ments on collaborative research projects vironment. beneficial activities for society that can dramatic impact. I do not think the Gen- and permitting that companies without across Canada and the globe. These Industry over the last decade has shifted create a lasting positive legacy. Sudbury, Can you expand on how changes to eral Election is that interested in minerals, their own legal departments cannot fulfill projects support the development of its focus to brownfield exploration be- is a great example of what mining has the Canadian Securities Laws have im- a more relevant issue for them is oil and alone. ■ new exploration methods and technolo- cause of unsatisfactory returns from its made possible and what opportunities pacted the regulatory framework in gies while training highly qualified per- greenfield exploration efforts. However, await a new generation of geoscientists. Ontario? sonnel for careers in the minerals indus- with sustained exploration, brownfield We are working to help younger genera- The regulator is moving to a model where try, academia and government. MERC environments will inevitably deliver tions see this reality. We have partnered data collection is prioritized. The report- facilitates and manages research pro- declining results. MERC’s Metal Earth with entrepreneurial companies such as ing of extra information has made trans- jects, typically field-based and explora- project is focused on reducing the risk Orix Geoscience to show that a career actions longer and more complex. Addi- tion related. Our largest current project in greenfield exploration by helping to in geoscience can include aspects of the tionally, Canada has the oddity of having is “Metal Earth,” a C$104 million, seven- identify higher probability targets in outdoors, technology, creativity, envi- many security jurisdictions. Each province year, applied R&D effort supported in under-explored areas. ronmental sustainability, and innovation. has its own set of regulations. Often there large part by the Canada First Research Seeing the modern image of geoscience are many similarities and regulations Excellence Fund (CFREF). MERC also of- How will the Metal Earth project im- has proven to be inspirational. across provinces can be harmonized. fers short courses and modular courses pact geological exploration? However, increasingly we are seeing more targeted at industry professionals, which Metal Earth is a large multidisciplinary What makes the Laurentian University exceptions, and this has complicated are run in partnership with industry research project, led by MERC, focused outstanding for students interested compliance. Nevertheless, the Regulation events such as the PDAC and Roundup. on understanding the Earth’s early evo- in geology? Commission has announced that they are MERC is a part of the Harquail School of lution and processes that led to differ- Laurentian is one of the few universi- looking for ways to reduce the regulatory Earth Sciences (HES) here at Laurentian ential metal endowment in Precambrian ties sitting in a world class mining hub burden. University in Sudbury, Ontario. HES is rocks. Metal deposits occur in clusters, with a full range of exploration, mining, a comprehensive geology department with some areas of the earth’s crust re- smelting and refining activities. Besides Despite favorable precious metals offering BSc, MSc and PhD programs in- markably rich in metal deposits, and MERC and the Harquail School of Earth prices, the junior mining sector is still cluding options for a thesis based MSc other areas of similar geology with rela- Sciences, Laurentian also has the Good- struggling to raise capital. Do you think in geology or applied MSc in mineral ex- tively few deposits. By understanding man School of Mines, the Bharti School the equity markets have changed or ploration. the processes that result in these differ- of Engineering and the Mirarco Mining has the money yet to trickle down? ences and making the process mapable Innovation Institute. The Ontario Geo- The consolidation of the brokerage indus- How is innovation impacting geologi- and predictable, industry will possess a logical Survey, Geoscience Laboratories try has meant a reduction in retail invest- cal exploration? significantly more effective exploration and Ministry of Northern Development ment. Whilst before investment in junior Innovation in exploration has introduced tool to focus its greenfield exploration and Mines are also housed in the same mining stocks was commonplace, that it new and complex datasets, faster and efforts. This tool will be exportable to building as MERC and HES. There are is no longer the case. Investment spe- more effectively, with an increased de- other jurisdictions of similar geology ample opportunities for students to gain cialized in mining attracts people within gree of resolution. However, geoscien- such as the Birimian of West Africa and valuable industry experience through- the industry and those with specialized tists are often unable to interpret and the Guiana shield of South America. out their education. ■ knowledge, not the wider public. The

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 18 Industry Explorations Global Business Reports 19 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 GBR • Industry Explorations • MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020

TORONTO´S FINANCIAL DISTRICT

» My theory is that there has been a renaissance in mining, whereby a lot more is demanded from companies as the sector in general has matured. The companies, the environment and investors have all changed, demanding greater ROI. «

- Dean McPherson, Head of Business Development – Global Mining, the TSX and TSX.V

Image courtesy of Zia Syed on Unsplash EDITORIAL Global Business Reports Industry Explorations

TORONTO: THE HOME OF MINING FINANCE EQUITY CAPITAL RAISED BY MINING COMPANIES ON THE TSX AND TSXV The challenge 2019 C$12.5 BILLION of attracting 2018 investment C$6.5 BILLION 2017 C$8.5 BILLION

PERCENTAGE OF GLOBAL MINING FINANCINGS THAT TOOK PLACE ON Toronto remains the global investment engine of the mining In October 2019, the TSX30 program was launched to high- THE TSX AND TSXV IN 2019 industry through its stock exchanges, mining-focused finan- light the top 30 performers on the main exchange over the cial services, consultants, legal advisors and banks that have last three years based on dividend adjusted share price ap- a long history of financing projects from early stage explora- preciation. Considering the challenging market conditions in 48% tion through to production. With almost twice the number that time period, it is a welcome surprise that eight of the of the number of mining of mining companies listed on the TSX and TSX.V (approxi- companies on the list are in the mining sector, five of which financings globally mately 1,200) compared to its nearest competitor, the ASX, are headquartered in Toronto, with Kirkland Lake Gold be- even companies that have never had or will likely never have ing the fourth best performer overall with over 600% return. operations in Canada choose to be headquartered in Toronto “The program showcases that investors can still receive great 33% for its access to capital. returns in the mining market,” commented Dean McPherson, of the mining equity capital raised globally head of business development – global mining at the TMX Group, noting the significant role that management and jurisdiction play in encouraging investor appetite. Although these success stories are encouraging, they do not NUMBER OF MINING COMPANIES paint the full picture. While the incredible performance of ON THE TSX AND TSXV a small section of the industry is an encouraging sign mov- TSX ing forward and should attract some investor confidence, a lack of new listings and the continued struggles of the junior community to attract finance have created a chasm between 212 those who produce, and those who explore. A clear illustra- TSXV tion of the challenging financial climate facing the industry came from Triple Flag Precious Metals Corp, which decided 926 to pull the plug on its planned C$360 million IPO in Decem- TOTAL ber 2019, citing difficult market conditions and a lacklustre demand for new mining issues. “In terms of new listings and financings, 2019 has been a bit 1,138 volatile, not only for the mining sector but across the board,” acknowledged McPherson, before noting that this is truly a global issue, as the number of new listings on TMX Group’s NUMBER OF NEW MINING COMPANIES equity exchanges in 2019 still outweighed those of its major LISTED ON THE TSX AND TSXV IN 2019 competitors combined. TSX In such a context, companies need to cast their nets wide when sourcing capital, and a roadshow that includes the 7 United States, Europe and Asia requires juniors to demonstrate more than just promising drill results. “My theory is that TSXV there has been a renaissance in mining, whereby a lot more is demanded from companies as the sector in general has ma- 28 tured. The companies, the environment and investors have TOTAL all changed, demanding greater ROI,” reflected McPherson. Despite the struggles of the junior market, the outlook for metal demand is robust, and the fact remains that mines need 35 28>> MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 22 Industry Explorations Global Business Reports 23 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations TSX 30

"In October 2019, we launched the TSX30 program which "The devil is in the details; we understand this and it is how highlights the top 30 performers on the exchange over the we drive our business model. We focus on our business, In 2018, you mentioned that there was Can you elaborate on the launch of the last three years based on dividend adjusted share price ap- knowing the fundamentals of our operations and make deci- a return of investor confidence. Over inaugural TSX30 program? preciation. Eight of the companies were mining companies, sions to support people. We put a lot of effort and invest- the last year, how has this progressed? In October 2019, we launched the TSX30 with Kirkland Lake Gold being the fourth best performer ment into exploration, and this has helped the company to The last 12 months have been good for program which highlights the top 30 overall with over 300% return. The program showcases that significantly add to reserves and resources at both Macassa TMX Group and its equity markets, To- performers on the exchange over the investors can still receive great returns in the mining market. and Fosterville, while increasing production and reducing unit ronto Stock Exchange (TSX) and TSX last three years based on dividend ad- We also noticed that management and jurisdiction plays a sig- costs at both of these mines.” Venture Exchange (TSXV), which remain justed share price appreciation. Eight of nificant role in encouraging investor appetite.” global leaders in the mining sector. 2018 the companies were mining companies, was particularly encouraging; we had a with Kirkland Lake Gold being the fourth - Dean McPherson, - Anthony (Tony) Makuch, notable presence in the number of large best performer overall with over 300% Head of Business Development – Global Mining, President and CEO, financings done globally as TSX issuers return. The program showcases that in- Toronto Stock Exchange and TSX Venture Exchange Kirkland Lake Gold accounted for approximately 30% of vestors can still receive great returns in global mega-financings. the mining market. We also noticed that One of the major trends we saw in 2018 management and jurisdiction plays a sig- was an increase in M&A activity, includ- nificant role in encouraging investor ap- ing the Barrick-Randgold merger and petite. Mining companies have to dem- Dean the Newmont-Goldcorp merger, both of onstrate to the market that they have the which decided to list in Toronto. We have structures and controls in place to show seen this trend continue in 2019 with the how investment money will be spent. McPherson recent North American Palladium acqui- Rank Company HQ Location 3-Yr Share Price sition by Impala Platinum. What is TMX Group’s strategy to ex- 4th Kirkland Lake Gold Ontario +605% In terms of new listings and financings, pand its global reach? 2019 has been a bit volatile, not only for We are the only global stock exchange the mining sector but across the board. in Latin America with a full-time presence 5th Trilogy Metals British Columbia +503% We are seeing the market pick up and in the region. Approximately 45% of the number of new listings have started the projects that are represented in our to increase in Q3 2019, a trend we ex- market are outside of Canada, and Latin 9th Head of Business Development – Ivanhoe Mines British Columbia +312% pect to continue into 2020. America contributes to 20%. Global Mining Africa is also a strong market, we have TORONTO STOCK EXCHANGE In the first half of 2016, the gold price offices in China, and are developing busi- 11th Labrador Iron Ore Royalty Company Ontario +282% AND TSX VENTURE EXCHANGE increased by approximately 20% and ness in Australia, Israel, and Kazakhstan. equity raises almost tripled. In Q3 Once Australian companies get beyond 2019, a similar rise in gold prices took a US$100 million market cap, they tend 15th Anglo Pacific Group United Kingdom +185% place, but equity raises have not in- to look at TMX as they see us as a gate- creased to the level we have seen be- way to larger pools of capital. fore. What do you attribute this to? 16th North American Palladium Ontario +183% » I believe that it has a lot to do with struc- As a final message to the global mining tural changes in the marketplace, as well community, what does TMX Group as two new industries competing in the have to offer in 2020? 17th TMX Group offers the most Gran Colombia Gold Ontario +178% market – cannabis and Bitcoin. From TMX Group offers the most seamless seamless and largest access to a stock exchange perspective, this is and largest access to global capital for global capital for the mining sector. 19th healthy as you want more industries for the mining sector. No other exchange Wesdome Gold Mines Ontario +172% No other exchange can offer a investors to be able to diversify their port- can offer a mining ecosystem of bankers, mining ecosystem of bankers, folio. My theory is that there has been a research analysts and traders, all of which research analysts and traders, all renaissance in mining, where a lot more can ensure success post listing. We offer is demanded from companies as the sec- a complete service that extends beyond "We believe that the only way to show value to our sharehold- "The royalty model can present significant value from a cash- of which can ensure success post tor in general has matured. The compa- the initial capital raise. ers is through continued exploration success and we still have flow perspective and is more attractive in many cases than listing. nies, the environment and investors have We maintain a competitive advantage a significant amount of exploration potential. Wesdome is cu- owning the underlying mine. While a number of traditional all changed, demanding greater ROI. through innovations such as the Capital rrently focused on the Abitibi belt. Once we are well on our mining investors may want the leverage to the commodity With the increase in commodity prices, Pool Company (CPC) program, which we way to get Kiena restarted and reach 100,000 oz of produc- price that comes with owning the equity of an operator, many we saw a notable surge in financing ac- developed for our Venture market. We tion at Eagle River, the company will be in a position to look other investors prefer to forego that leverage and the associ- « tivities, especially below the US$50 mil- have also brought on a team member at acquiring more assets” ated risk in exchange for a more secure stream of earnings.” lion financing levels. We have not seen whose sole focus is to investigate and a mega-raise yet, but we believe that it evaluate ways in which we can remove is just a matter of time before it will hap- barriers to the movement of capital - Duncan Middlemiss, - John F. Tuer, pen as investors are still waiting for the across our markets on a global level. ■ President and CEO, President and CEO, volatility in the market, due to the trade Wesdome Gold Mines Labrador Iron Ore Royalty Company (LIORC) wars, to subside.

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 24 Industry Explorations Global Business Reports 25 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

How has the finance market for mining companies evolved since we last spoke What financial services does Haywood nancings and closely with the company in September 2018? Securities offer and how important is on M&A activity, including the acquisi- We have seen a rise in the price of precious metals, led by gold. We are seeing the mining sector for the business? tion of the Beta Hunt mine in Australia, greater stability in pricing and this is a strong indicator that we continue to transi- Haywood Securities was established in which has produced some of the largest tion from a bear market to a bull market after years of consolidation in mining and 1981 and is predominantly resources and gold specimens in Australian history. metals. Gold and palladium have been strong performers and we expect silver to mining focused. We are a full service in- Haywood Securities was also the sole perform even better in the medium term. Nickel and cobalt are getting traction vestment bank and one of the largest in- bookrunner on Steppe Gold’s C$25 mil- as well. These metals are ones to look out for because of the rise in the market for dependently (employee) owned private lion long form prospectus IPO in 2018 electric vehicles, and an interest in where the supply will be sourced over the long investment dealers in Canada. We offer a – the only main board TSX mining IPO term. breadth of product offerings such as typ- in 2018. This really speaks to the chal- There is definitely a swing in sentiment as we are seeing interest in minerals even ical investment banking, equity research, lenges in the mining space. With regard by the generalists. You can see this in the attention being given to the best junior institutional sales and trading, corporate to M&A, we helped Minera Alamos ac- companies with high-grade reserves. Grade is of crucial importance to investors finance, private placements, ECM, and quire Corex Gold in Mexico, as well as La these days. M&A. We also have a large wealth man- Fortuna from Argonaut Gold. A comment that applies to any exploration discovery is that continuous explora- agement group with approximately C$8 tion and expansion of a deposit are important for the company’s market valuation. billion in assets under administration. In 2019, despite a strong gold price, Michael F. Always adding net new mineralization is necessary to fuel higher prices. If a com- Ryan Most of our services in each facet are equity raises have not returned to the pany’s sole focus turns to infill drilling, converting inferred resource to indicated, or geared towards small to medium capital market. Have there been structural measured, this might be an indication that the stock has reached its limits. players. Technical due diligence is the changes in the way companies raise White Matthiesen most paramount part of our business, money or is it a matter of time before Can you comment on the potential you see in MacDonald Mines’ SPJ project coupled with people. We have several equity returns to the market? near Sudbury? PhD geologists, Master’s mining engi- When gold was in the US$1,200 to SPJ ticks many of the boxes, including a good location and land package. There neers and a very strong technical team US$1,300 range over the last five years, is a past producing mine which, in its time, produced high-grade material. There on the research side who are dedicated the mining fund managers were trying to are solid fundamentals so that if you have exploration success, you have access to to find the best assets and investors. outperform their index. Now, gold prices necessary infrastructure to develop a mine. In terms of discoveries, there are many Mining is and will always be the number have broken through the technical resis- drill holes with visible gold, which is a good start. Next, one wants a sense as to the one sector within Haywood Securities. tance and increased to the US$1,400 to President and CEO Managing Director – Investment Banking thesis for the potential size. In this case, the project thesis is a reinterpretation of We want to ensure that we are properly US$1,500 range. A significant amount IBK CAPITAL CORP. an old mine and deposit expanding beyond past limits. If they can show that their HAYWOOD SECURITIES positioned with the right people and of generalist investors looked at their reinterpretation is correct with successful drilling and continued high-grade gold skill sets for the inevitable mining bull portfolios and saw that they were under- discovery then the project has a lot of promise. market. Our focus is on the best man- weight in gold. There was a flow of funds To compare to Great Bear two years ago, we are in a different market, and potential agement teams and high quality assets into the gold space, but it is generalists new discoveries are getting attention earlier on. That is good to see. that can have scale and be attractive to a coming in and they go first to the largest larger company down the road. and most liquid names that are already The investment boom in Cannabis seems to be subsiding. Do you think this in production. At the same time, we have will impact the climate for mining investment? What makes a mining company attrac- seen a lot of consolidation on the fund » It is difficult to compare across markets because mining and cannabis are very dif- tive to investors today? management side of the business and ferent. Cannabis is a very new investment option and there is still a lot of money » Currently, people want to see free a significant number of the larger mi- to be made in this space, especially globally. However, in the Canadian cannabis cash flow and high margins. In the ju- ning funds and their parent entities have What I like about an early bull space, investors have begun to sober up and look at attractive opportunities else- There is now the opportunity for nior space, projects that are advanced been merging. The funds are seeing market is that it separates the where. Mining is receiving renewed attention because of a few recent high-profile longer term investors to look at enough so that people can see a path generalist money coming into the large good from the bad. In the early success stories. Generalists are starting to reawaken to the possibility of making to production and are backed by a good and mid-caps and, from their perspec- the undervalued juniors and take days of a bull market, investors money in mining. The mining sector has a lot of value to regain and the appreciation management team and good investors, tive, it is riskier to pick a micro-cap that advantage of the current market. are very critical and cautious, in the prices of precious metals and battery metals is starting to attract attention. will attract interest. Capital is migrating could double when some of these inter- If you have the ability and patience which means they are careful to more secure jurisdictions and inves- mediates have been doubling. This has What advice would you give to junior companies looking to raise capital in to analyse and evaluate assets tors are willing to pay a premium for created a large valuation gap as bigger about where they put their today’s markets? and teams, which is our company’s stability, a factor that is more important companies have been trading at much money. Management has to What I like about an early bull market is that it separates the good from the bad. In sweet spot, you will find great than it was a few years ago. better multiples. be very convincing in order to the early days of a bull market, investors are very critical and cautious, which means Haywood Securities believes that this opportunities. obtain capital. they are careful about where they put their money. Management has to be very Can you give some examples of recent is not sustainable in the medium term. convincing in order to obtain capital. There must be a strong vision that is backed deals Haywood Securities has been in- There is now the opportunity for longer with historical data and reliable results, as well as a tested team that can be trusted volved in? term investors to look at the underval- to deliver results. Management must convince investors that, not only is there po- « Haywood Securities recently acted as ued juniors and take advantage of the « tential for profitable discoveries, but that their theories are well supported and lead underwriter and sole bookrunner current market. If you have the ability make sense. Junior companies must have well-defined targets and avoid rushed for a C$18.5 million bought deal for RNC and patience to analyse and evaluate as- decisions like drilling. Investors will be put off if due diligence and planning are not Minerals. We have worked closely with sets and teams, which is our company’s prioritized. There is a lot of competition for funding. Being thorough with a strategy RNC Minerals for the last four years and sweet spot, you will find great opportu- and prepared for execution is far more attractive than rushing to get results. ■ acted as lead on each of their equity fi- nities. ■

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<<22 to be discovered, financed and put into continuous exploration and expansion interest: “Capital is migrating to more zations, will greatly reduce the upfront porate access marketing for compa- of physical assets in the precious metals production – a process that does not of a deposit are important for the com- secure jurisdictions, and investors are funding requirements of what is already nies,” said Tatters, mentioning the wide space. Michael Albanese, Tradewind’s happen overnight. A distressed mar- pany’s market valuation,” said White, willing to pay a premium for stability, a a low capital cost operation,” stated platform of services Red Cloud offers CEO, expanded on how his company ket also presents opportunities, and pointing to the success of GBR’s strat- factor that is more important than it was Jason Kosec, Minera Alamos’ vice presi- that goes well beyond the offerings of is making it easier, more cost effective the disparity between bullish precious egy to continually step-out and add a few years ago.” dent of business development. traditional brokerages including retail and more secure to buy, sell and hold metals prices and declining junior share new mineralization at its Dixie project. Alex Pernin, CEO of newly formed Star marketing, social media services, advi- precious metals: “We make it very easy prices is not sustainable. “There is now “If a company’s sole focus turns to infill Royalties, spoke of the advantage royal- sory, graphics support, video services for retail individuals to purchase me- the opportunity for longer term inves- drilling, converting inferred resource to The rise of the royalty & ty and streaming companies provide in- and web development. tals through a network of brokers that tors to look at the undervalued juniors indicated or measured, this might be an streaming model vestors with commodity price leverage, Unlike traditional brokers whose out- handle our product. The gold and silver and take advantage of the current mar- indication that the stock has reached its expansion and optimization upside, reach is restricted to trading clients, is held physically at the Royal Canadian ket,” observed Ryan Matthiesen, man- limits,” he concluded. Gold and palladium producers were reserve and resource growth, as well as Red Cloud’s institutional portfolio man- Mint – which is a sovereign and secure aging director of investment banking Keith Spence, president & CEO of Glob- not the only mining players to enjoy a exploration potential, without the as- ager outreach is over 250 globally reg- location – and we use blockchain tech- at Haywood Securities, adding: “If you al Mining Capital, echoed the sentiment fruitful 2019. Another group, those in sociated mining costs, nor operations istered companies in the mining space nology to maintain and record owner- have the ability and patience to analyze that preparation is key, suggesting that the royalty and streaming space, has management. Emphasizing the vast dif- and does not require a company to ship.” and evaluate assets and teams, you will junior companies often go public too been growing exponentially over the ference in the operational management trade. “We communicate our research Additionally, Tradewind’s Origins tool find great opportunities.” hastily: “If a company remains private, last decade, regardless of market condi- of a mining company compared to a to companies via links to our website allows buyers to specify criteria to puts its house in order, gets rid of some tions. Since 2008 when Franco-Nevada royalty and streaming company, Pernin so they can register with us,” explained purchase metal from a certain mine, of the risks and then goes public, it will resumed trading, the core royalty and observed: “When I was at Barrick Gold, Tatters, concluding: “It is a truly unique method of production and geography. Raising finance in 2020: have a better product to offer the mar- streaming group is up roughly 470%, in we had 14,000 employees and a US$20 monetization system focused for our “Tradewind’s ORIGINS solution makes What are investors looking for? ket.” comparison to the S&P 500, which is up billion market capitalization; Franco- corporate clients.” ESG principles tangible and action- Noting a significant structural change 96%, gold bullion up 87% and the S&P/ Nevada also had a US$20 billion market One of the recent entrants to the mi- able,” said Albanese, continuing: “As With further M&A activity expected in mining industry financing, Spence TSX Global Gold Index down 25%. capitalization but had 34 employees.” ning finance market, and one of the a miner, you will also benefit because between the precious-metals mid-tiers explained that a strong retail base had Two of the inaugural TSX30 cohort are most innovative, is Tradewind Markets, you will be able to showcase that you and “cannabis 2.0” on the horizon as made Toronto into a global financial royalty and streaming companies – An- which has built a technology platform are producing according to responsible edibles, beverages and vaping prod- center for mining, but the amount of glo Pacific group (#15), the only royalty Modern finance for digitizing the ownership and trading standards.” ■ ucts enter the Canadian market, the institutional money grew and eventually and streaming company listed on the competition for investment dollars the retail market disappeared: “Many London Stock Exchange, and Labra- If the definition of insanity is doing the looks set to remain stiff in 2020. How, investors have left the mining space af- dor Iron Ore Royalty Company (LIORC) same thing over and over again and ex- then, can the downtrodden junior com- ter losing huge amounts of money due (#12), which owns a 7% royalty on Iron pecting different results, there is a case munity stand out from the crowd? to major financial disasters and scan- Ore of Canada (IOC), a 15.1% equity to be made that a number of those limit- “What I like about an early bull mar- dals during the last 20 years, such as interest in IOC, and a commission that ing themselves to sourcing investment ket is that it separates the good from the massive gold mining fraud by Bre-X pays 10 cents per tonne of all product through traditional sources deserve to the bad,” stated Michael White, presi- Minerals.” produced at IOC. be sectioned. While that may seem a dent and CEO of IBK Capital, the pri- A reoccurring theme in Global Business John Tuer, president and CEO of LIO- tad harsh, the fact that financing has vate investment firm that has helped to Reports’ research and interviews was RC, reflected that, while the TSX30 is a declined whilst gold has reached record raise finance for the likes of Great Bear the growing importance of team and nice snapshot of a three-year period of highs in Canadian dollars surely implies Resources (GBR) – the standout junior jurisdiction. Terry Harbort, president both capital gains and dividends, it is that change is necessary. Fortunately, a stock of 2019. “Management has to be and CEO of Talisker Resources and VP the company’s longer term returns that number of players in the mining finance very convincing in order to obtain capi- exploration for Sable Resources, related he is most proud of: “Since our IPO in space have broken from the traditional tal. There must be a strong vision that is how over the last 10 years, there have 1995, LIORC has returned over 14% per mould to offer the market something backed with historical data and reliable been approximately 200,000 drill holes year to our shareholders. The return on different. results, as well as a tested team that can drilled in the global mining industry, yet the TSX over the same period of time Red Cloud Securities (formerly Red be trusted to deliver results,” explained only 38,000 of these drill holes actually was about 7%.” Cloud Klondike Strike) rebranded in White, noting that investors will be put had a significant intercept. “The discov- From a macro perspective, mining com- 2019 to demonstrate its position as a off if due diligence and planning are not ery rate in the industry is 0.6%, so in- panies typically use royalty and stream- modern-day, next-generation broker- prioritized in the rush to drill. “There is vestors want to invest in the 0.6% of the ing when equity becomes more expen- age firm, according to its new CEO a lot of competition for funding. Being industry that has actually found some- sive and when their share prices are Bruce Tatters. Explaining how a 90% thorough with a strategy and prepared thing,” said Harbort, noting that Sable down. While the model was originally reduction in institutional commissions for execution is far more attractive than Resources’ team has been responsible focused on producers’ non-core assets, in the brokerage industry over the last rushing to get results,” he added. for discovering approximately 40 mil- it is now becoming increasingly popular two decades has severely hollowed out From the point of view of the investor, lion oz globally. among project developers that require corporate access services in the small what should exploration companies fo- Ryan Matthiesen commented that financing, such as Minera Alamos, which cap universe, Red Cloud decided not to cus on to impress the market, and are advanced projects in the right loca- announced a C$14 million royalty/equity have a trading operation like traditional there indications that a stock may have tion with a clear path to production, construction package with Osisko Gold legacy brokers have adopted since their reached its peak? “A comment that ap- backed by a good management team Royalties in December 2019. “This part- inception. “Our institutional equity de- plies to any exploration discovery is that and strong investor base, will attract nership, coupled with targeted optimi- partment focuses on institutional cor-

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 28 Industry Explorations Global Business Reports 29 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations THOUGHTS

What were the factors behind the recent rebranding of Red Cloud Securities? ADVICE FROM THE INVESTMENT COMMUNITY Bruce Red Cloud Securities rebranded to demonstrate its position as a modern-day, next- generation brokerage firm. The company differs from other brokerage firms in the sense it does not have a trading operation like traditional legacy brokers have had Tat ters since their inception. Our institutional equity department focuses on institutional cor- “A comment that applies to any exploration discovery is that continuous porate access marketing for companies. This corporate access service assists investment banking departments in revenue-generating capabilities. The current problem exploration and expansion of a deposit are important for the company’s in the brokerage industry is that institutional commissions are down 90% over the last market valuation. Always adding net new mineralization is necessary to fuel two decades. This phenomenon severely hollowed out corporate access services in higher prices. If a company’s sole focus turns to infill drilling, converting CEO the small cap universe. inferred resource to indicated or measured, this might be an indication that RED CLOUD SECURITIES Chad Williams, the founder of Red Cloud, started the firm on the premise of charg- the stock has reached its limits.” ing corporate clients directly for corporate access services, offering both service excellence and a platform of services well beyond the offerings of traditional brokerages. These 25 or 30 additional services are diversified retail marketing, social media - Michael F. White, services, advisory services, graphics support, video services and web development. President and CEO, Working with Red Cloud’s forward-looking integrated model of both brokerage and IBK Capital non-brokerage-related services for market outreach serves clients exponentially better than traditional brokerages.

Mining investment has been hard to come by in recent years, especially for juniors. How can Red Cloud help in this regard? “One of the inherent problems in my opinion, is that it is easy for junior Red Cloud provides a much broader marketing distribution outreach than typical companies to go public on the Toronto stock exchanges. Too many brokerage firms. Although the institutional outreach might appear similar, our insti- companies go public before they should… If a company remains private, put tutional salesforce is both focused on mining and on corporate access, not distract- its house in order, gets rid of some of the risks and then goes public, it will ed by bothering institutions for trading business. Red Cloud’s institutional portfolio have a better product to offer the market.” manager outreach is over 250 globally registered in the mining space. We are not confined to the outreach of traditional brokers where their outreach is restricted to trading clients. Red Cloud does not require a company to trade. We communicate our - Keith Spence, research to companies via links to our website so they can register with us. ■ President and CEO, Global Mining Capital

Can you introduce Global Mining Capital Corp and describe the profile of pro- Keith jects it invests in? Global Mining Capital is a private equity firm that invests in late-stage development projects globally. At that stage most of the project risks usually have been removed, “In the junior space, projects that are advanced enough so that people can Spence except the financial risks. We invest in gold and base metals such as zinc and copper, see a path to production and are backed by a good management team as well as battery metals, such as nickel, cobalt and lithium. We try to find low-risk and good investors will attract interest. Capital is migrating to more secure jurisdictions, such as Canada, Australia, certain jurisdictions in Africa and certain jurisdictions and investors are willing to pay a premium for stability, a factor jurisdictions in South America, where political risk is manageable. Global Mining that is more important than it was a few years ago” Capital has Chinese partners and go where our partners go. We have teams in To- President & CEO ronto, Vancouver and Hong Kong. GLOBAL MINING CAPITAL CORP Most of Global Mining Capital’s investments tend to be beyond US$100 million, and - Ryan Matthiesen, we prefer deals in the US$300 million to US$500 million space. Managing Director – Investment Banking, Haywood Securities With a dearth of equity available for juniors, do you think there have been structural changes in the way mining companies finance projects? There has been a significant structural change. The retail investor has left the mining space for investments such as bitcoin and cannabis. The fact that the mining sector in Toronto had a strong retail base and people were willing to invest in a junior “The number one thing a public company can do, especially if they are in a company stock made it a global financial center for mining. However, the amount space that is subjected to large fluctuations in commodity prices, is to make of institutional money grew and the retail market has gradually disappeared. Many sure they have a strong relationship with their shareholders and are building retail investors have left the mining space after losing huge amounts of money due relationships on an ongoing basis” to major financial disasters and scandals during the last 20 years, such as the massive gold mining fraud by Bre-X Minerals. Currently, most financing comes from private equity firms, other institutional sources - Ian Roberston, or larger mining companies acting as financiers. Without a solid retail investment Executive Vice President – Communication Strategy, class, the mining sector is not going reach high market prices. It is incumbent on Kingsdale Advisors firms to bring credibility back to the mining space. ■

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MINING IN ONTARIO

» Through the use of electric vehicles, we will be able to reduce 7,000 mt of greenhouse gas emissions and associated maintenance costs, as well as save the consumption of 2 million liters of diesel and 1 million liters of propane. «

- Marc Lauzier, General Manager - Porcupine Gold Mines, Newmont

Image courtesy of Epiroc EDITORIAL Global Business Reports Industry Explorations EDITORIAL

MINING PRODUCTION IN ONTARIO operations, which also include the Hoyle Pond underground A golden age for Ontario mid-tiers mine and the Hollinger open pit mine. The three operations combined should deliver approximately 300,000 gold oz/y, ac- The darling of the Canadian mining industry over the last four cording to Marc Lauzier, Porcupine Gold Mines’ general man- years has been, without a doubt, Kirkland Lake Gold (KL Gold), Majors streamline ager, who commented that Borden is expected to produce with a remarkable rise that saw its stock rise from under C$3 in approximately 1,800 mt/d at about 6 grams of gold per tonne. January 2016 to a high of almost C$65 in Q3 2019 as its market operations after “Borden’s digital mining technologies, low carbon-energy ve- cap broke the C$12 billion threshold. KL Gold’s serene prog- hicles and modern health and safety controls position it as one ress was – at least temporarily – halted on November 25th, as mergers of the world’s most technologically advanced mining opera- the market reacted in shock to the company’s all-share acquisitions,” stated Lauzier, who expects Borden to be fully electric tion of Detour Gold Corp for C$4.9 billion, a 24% premium to by 2021. its valuation at the time. The Canadian and Ontario governments each provided New- When questioned about initial market skepticism to the Detour mont with C$5 million for the electrification of the mine, which transaction, KL Gold president and CEO Tony Makuch spoke can be seen as a model of modern resource development of the value he sees in adding a third high quality asset to the from both environmental and cost standpoints: “Through the KL portfolio with a large reserve to support mining for over use of electric vehicles, we will be able to reduce 7,000 mt of 20 years. "We have already taken two “under-loved” assets at In the wake of the two super mergers concluded in early 2019, restructuring decisions taken by both companies has been to greenhouse gas emissions and associated maintenance costs, Macassa and Fosterville, and turned them into industry lead- there was uncertainty surrounding how the world’s two larg- focus on top-tier assets, trimming the fat to reduce costs and as well as save the consumption of 2 million liters of diesel and ing mines through investments in exploration, infrastructure, est gold miners, Newmont and Barrick Gold, would deal with optimize operations. 1 million liters of propane,” explained Lauzier. equipment and development,” he stated, continuing: "Detour their assets in Ontario. Would Newmont manage to sell its Red Mark Bristow, Barrick’s president and CEO, spoke on the rea- Further northwest, Newmont suspended operations at its his- is in our back yard in northeastern Ontario, we know the geol- Lake mine? Would it begin operations at the new Borden mine soning behind the merger with Randgold: “Through the merg- toric Red Lake mine in July before selling the asset to Austra- ogy here well, and bring a lot of synergies." in 2019? Would Barrick maintain its headquarters in Toronto er, we obtained the possibility of having six or seven of the top lian company Evolution Mining for US$375 million in Novem- Another low-cost, high-grade gold producer from Ontario that despite its CEO being based abroad? Would Barrick’s Hemlo 10 assets in the world. If you have an asset portfolio like this, ber. Evolution Mining will also pay an additional US$100 million enjoyed a tremendous 2019 was Wesdome Gold Mines, hav- mine survive the cut as the company decided to sell off non- you can create a standout business. If you want to be dominant in contingent payments upon discovery of new resources. The ing sustained exploration and production success at its Eagle core assets? in the gold mining industry, it is not about size, but about value Australian company says it plans to spend US$50 million on River mine in Ontario and with a second high potential asset Crucially for the Ontario mining industry, the answer to all of and the quality of the assets,” he stated. exploration and invest US$100 million in existing operations to with its Kiena mine in Québec. Before becoming Wesdome the above was a resounding yes. The common theme in the Bristow commented that Barrick’s success in 2019 was due to a revitalize the historic mining camp. 42>> focus on youth, praising his new management team for closing four big deals in 10 months – the Barrick-Randgold merger, the Nevada consolidation, the acquisition of Acacia Mining and the sale of KCGM. “One of the things we were focused on during the merger was to create a more agile, fit for purpose and modern corporate structure. You can have the best assets in the world, but without the right people, they are useless,” elaborated Bristow, who likened the previous incarnation of Barrick to a “patient in intensive care” when discussing a possible merger with John Thornton in 2015, emphasizing how the new generation of young talent brought in has re-energized the company. This philosophy has been applied to Barrick’s Hemlo operation in Thunder Bay. The project has undergone a modernization process to reduce an average employee age, which sat at 57 before the restructuring. “During our due diligence on Hemlo, we did not have a consensus on whether it was a good or bad operation, but it was clearly old fashioned,” reflected Bristow, noting that a voluntary separation package offered to many of the mine workers had been accepted by all. “The next steps at the mine will be to phase out the open pit operation and move to an underground contract mining model, with the objective to upgrade Hemlo to a Barrick Tier 2 asset and extend its Life of Mine well into the future,” he explained, concluding that Hemlo today is a more lean, agile, modern and profitable mine. A major milestone for the Ontario mining industry was celebrated on October 1, 2019, as Newmont’s new Borden “mine of the future” entered into commercial production. Located near Chapleau, under 200 km from Timmins, the Borden mine sits under the umbrella of Newmont’s Porcupine Gold Mines

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What was the vision behind the merg- age employee age of 57. We recently of- er between Barrick and Randgold? fered many of the employees a voluntary Marc Barrick is a great company, but unfortu- separation, which they have all taken. nately fell on some hard times. When I Hemlo today is a more lean, agile, mod- Lauzier started Randgold 24 years ago, I modern and profitable mine. The next step eled the vision of the company on the will be to phase out the open pit opera- early Barrick. The vision was focused tion and move to an underground con- on value, agility, quality assets, and be- tract mining model, with the objective to ing prepared to take risks, with great upgrade Hemlo to a Barrick Tier 2 asset leadership at the top. Barrick developed and extend its Life of Mine well into the General Manager - Porcupine Gold Mines some management issues that took the future. company to the edge so I started talk- NEWMONT ing to John Thornton in 2015, discussing What is your philosophy for mining in a possible merger. What attracted me foreign jurisdictions? to Barrick was the quality of its assets. I believe that you mine a national asset. Can you provide an overview of New- oz/y gold. The Dome mine ceased op- emissions and associated maintenance There were three Tier 1 assets – Cortez Whatever way you operate it, it belongs mont’s Porcupine Gold Mines opera- erations in 2017, but ore from our three costs, as well as save the consumption Mark Hills, Goldstrike, and Pueblo Viejo, and to the host country, and you have a duty tions? operations is sent to the Dome process- of two million liters of diesel and one another three potential Tier 1 assets – to deliver value out of that asset other- The company’s Porcupine Gold Mines ing facility using a circuit that includes million liters of propane. Turquoise Ridge, which has since come wise you should leave it in the ground. operations include the Hoyle Pond un- crushing, grinding, gravity concentra- Bristow to fruition, Veladero, and the Porgera JV. The value of that asset should be divvied derground mine, the Hollinger open tion, cyanide leaching, carbon in pulp Can you elaborate on Newmont’s re- Through the merger, we obtained the up into various segments, and most im- pit mine, and the recently inaugurated recovery, stripping, electrowinning and lations with the indigenous communi- possibility of having six or seven of the portantly back into the communities and Borden underground mine. Located in refining. ties in the Timmins and Chapleau re- top 10 assets in the world. If you have an the population of that country. We have and around the Timmins, the Porcupine gion? asset portfolio like this you can create a to ask ourselves, why has mining got district has produced more than 67 mil- The Borden mine has been heralded As our Porcupine mines are spread standout business. such a bad name? You cannot blame the lion oz gold since 1910. Hoyle Pond has as Ontario’s “mine of the future”. across the Timmins and Chapleau re- markets. Poverty is a responsibility we all been in operation in excess of 30 years What are some of the latest technolo- gion, we have agreements with eight How has the structure of the company have to deal with. As a public company, President & CEO and, currently, approximately 60% the gies being used in the mine? communities – four in the Timmins area changed since the merger? you have an obligation to bring to ac- gold produced at Porcupine comes Borden’s digital mining technologies, and four in the Chapleau area. We pro- BARRICK GOLD You can have the best assets in the world, count natural resource extraction across from this operation. At Hoyle Pond, low carbon-energy vehicles and mod- vide benefits to these communities and but without the right people, they are the globe regardless of where you oper- mechanized cut and fill and longhole ern health and safety controls position proactively reach into those communi- useless. What had made Randgold such ate. mining methods are used to recover the it as one of the world’s most technologi- ties for talent. Porcupine Gold Mines’ a success was its management structure. ore, and the mine typically produces ap- cally advanced mining operations. We First Nations employment numbers are We did not have a head office but rather Where does Barrick see the most op- proximately 150,000 oz/y gold. continue moving Borden towards an all- approximately 10% and we are continu- a corporate office, which is now the cor- portunity for growth moving forward? The remaining 40% of the ore comes electric mine. Currently, all of the drill- ously working to increase local, First Na- porate office for Africa and the Middle East Africa is an exciting region for the from the Hollinger open pit mine which ing operations, rock support systems, tions representation in our workforce. East. To set up the right corporate struc- company, and we have now expanded is as much a reclamation project as a mi- personnel carriers, and scoops that ture, you need the right management our footprint from North Eastern DRC ning project. Hollinger was mined until move the rock to the trucks are electric. What are Porcupine Gold Mines’ prin- » systems and modern strategies together into Tanzania, which basically falls in the late 1960s as an underground op- We are working with a few suppliers to cipal objectives and targets for 2020? with younger people in your business. In the same geological province. With the erations, after which some companies acquire battery operated trucks, which The Borden gold project replaced the the merger, we transported the Rand- launch of Twiga Minerals in Tanzania we mined some ‘glory holes’ near the sur- will replace our remaining diesel oper- Dome mine, which was shut down in Through the merger, we gold model to a much bigger organiza- are breaking new ground and pioneering face and left a bit of an environmental ated vehicles in the near future. We ex- 2017, meaning that production at Por- obtained the possibility of having tion and have achieved success in only the way we share the economics of mi- mess. When Newmont acquired the pect to be fully electric by 2021. cupine will only increase slightly in the six or seven of the top 10 assets 10 months, thanks to a set of young, ning with host countries in a developing property, we put a plan together to We are implementing better tracking short-term. However, at Borden there is but top-end executives who represent world. in the world. If you have an asset mine near the surface while address- and ventilation-on-demand systems in great possibility for expansion through a standout team in the mining industry. Canada is a standout jurisdiction for find- portfolio like this you can create ing the stoping issues to stabilize the the Borden mine, as well as new blast- further exploration. Since the merger, This team has already closed four big ing big mines. Although there has been a ground. Our operations are funding the ing technologies that improve accuracy the implementation of Newmont’s Full a standout business. deals – the Barrick-Randgold merger, the bit of a drought in Canadian exploration rehabilitation of the of the impacts from and reduce the amount of explosives Potential continuous improvement pro- Nevada consolidation, the acquisition for a while, the opening up of big gold/ historic mining operations. needed. We are also focused on man- gram will allow us to enhance safety, of Acacia Mining, and more recently the copper porphyries in British Columbia is The Borden mine near Chapleau is New- aging our water use as efficiently as productivity and efficiency. Newmont sale of KCGM. developing a new frontier. Some of the mont’s newest operation and has been possible. aims to always operate in a safe, envi- « older regions in Ontario and Quebec in commercial production since 1 Oc- As a reward for our investment into safe ronmentally responsible and sustain- Can you elaborate on Barrick’s new also hold great potential. Look at how tober 2019. As one of the most techno- and sustainable mining, the Canadian able manner while achieving competi- strategy for the Hemlo mine in On- Australia has been so successful in rein- logically advanced mines in the world, and Ontario governments each provid- tive productivity and cost targets. This tario? venting itself through creative and pen- Borden is expected to produce ap- ed the company with C$5 million for the will allow us to compete internally for During our due diligence on Hemlo, we etrative exploration. Archean rocks pro- proximately 1,800 mt/d at about 6 g/mt electrification of the mine. Through the capital to invest in future expansions did not have a consensus on whether it duce surprises and I believe in Canada gold. The three operations combined use of electric vehicles, we will be able that generate superior returns in a safe was a good or bad operation, but it was there are still great opportunities that lie should deliver approximately 300,000 to reduce 7,000 mt of greenhouse gas and responsible manner. ■ clearly old fashioned, and had an aver- within the ground ■

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What has been the basis of Wesdome Gold Mines’ success over the last three years? Anthony Wesdome has a crystal clear strategy about building Canada’s next mid-tier gold producer. For us, mid-tier has a floor of 200,000 oz/y. The way we are going to suc- (Tony) ceed in this strategy is through the company’s two primary assets – the Eagle River mine in Ontario and the Kiena mine in Quebec. Eagle River has been in production for many years, and the exploration and production success we have had with this Makuch mine since 2016 has given us the confidence that we will be able to develop a platform of at least 100,000 oz/y with an expanding mine life and profitability.

President and CEO Can you provide details of Wesdome’s flagship project, the Eagle River com- KIRKLAND LAKE GOLD plex? Currently the reserves at the Eagle River complex stand at just over 400,000 oz at 12 g/mt. The guidance for 2019 was 72,000 to 80,000 oz, all coming from the Eagle River complex with the majority coming from the underground mine and a small por- Kirkland Lake Gold (KL) was the num- ville and turned them into industry mine. The new program for Robbins Hill tion from the open pit which is starting to deplete. Initially we thought that we were ber one mining stock on the inaugu- leading mines through investments in involves the development of twin 3 km Duncan going to mine 16 g/mt, but we have been producing at 21 g/mt. ral TSX30. What are the main factors exploration, infrastructure, equipment exploration ramps from the existing un- that have contributed to the compa- and development. Detour is in our back derground mine workings at Fosterville What is the current status of the Kiena project and timeline for its develop- ny’s remarkable performance? yard in northeastern Ontario, we know to the newly discovered mineralization Middlemiss ment? The devil is in the details; we under- the geology here well, and bring a lot at Robbins Hill. The Kiena project is in advanced exploration stages. The advantage Wesdome has is stand this and it is how we drive our of synergies. At Macassa, a near surface resource that this project is a fully built, fully permitted mine, and the resources which we have business model. We focus on our busi- was previously discovered along the been able to explore and define better are incredibly high grade – almost 18 g/mt in ness, knowing the fundamentals of our How has Kirkland Lake Gold incor- Amalgamated Break. Recent drilling the indicated and 15 g/mt in an inferred resource. The timeframe and capital input operations and make decisions to sup- porated new technologies at its Ma- at depth has identified mineralization to get the Kiena mine restarted is estimated to be fairly low. We have recently up- port people. We put a lot of effort and cassa mine? along the Amalgamated Break at depth dated our resource estimate and combined measured and indicated resources are investment into exploration, and this The Macassa mine is leading the in- below 5,800 feet. It is important to note approximately 740,000 oz. in our high grade A Zone. The updated estimate includes President and CEO has helped the company to significantly dustry in the use of battery powered that the past mining in Kirkland Lake drill data as of August 6, 2019 and includes an additional 140 drill holes, for a total of add to reserves and resources at both production equipment, including LHDs has been entirely on the “Main or 04” WESDOME GOLD MINES 36,050 m drilled since October 12, 2018. Macassa and Fosterville, while increas- or scoop trams and underground haul Breaks and South Mine Complex. The This year we will have spent C$27 million on the Kiena project, completely funded by ing production and reducing unit costs trucks. The mine has worked closely Amalgamated Break is emerging as the Eagle River project. Wesdome has invested heavily in exploration at Kiena over at both of these mines. Both the nature with its suppliers and manufacturers to a potential new mining front and we the last four years as we believe that we really have a superior geological asset which of the high grade in these deposits and develop and trial the first underground have announced the development of we have to prove out. We are in the process of completing a PEA of which some of the prospective geology at these mines mine trucks and scoops, but also in an exploration ramp from surface into the sections are conducted at a PFS level, with results expected to be released in have been a big part of value creation. developing the battery systems and the new mineralization to support ad- April 2020, which will then define the company’s next steps. The company leads its peer group by charging methods to be used. The mine vanced exploration including both un- investing more money on a per ounce originally started with 20 mt under- derground diamond drilling and bulk Do you expect M&A activity to pick up as precious metals prices continue to of production basis into exploration. ground (u/g) trucks, and is now working sampling. This ramp can also provide » rise? We have also delivered value to share- on the third generation of u/g trucks for a new ore source for the Macassa The M&A space has been quiet for some time as people who had made a foray into holders through capital investment. with capabilities for 40 mt payloads. Mill, and allow for further exploration such activities had been punished by low commodity prices and market reaction. This equipment not only has support- both on strike and to depth along the We are confident that we will Mining was not showing great returns for investors, who then started to look at other The Detour Gold acquisition was met ed the production growth at Macassa Amalgamated Break. This is exciting be able to keep growing the industries. Industry-wide we are seeing a lack of exploration by majors, but I believe by some skepticism by the market. since 2015, but also improves working as it can lead to the development of a company organically. We believe that we will start seeing more M&A activity moving forward. The recent acquisition What would you say to those who conditions in the mine through less heat whole new mine in Kirkland Lake after of North American Palladium by Impala Platinum, for example, is good for the M&A that the only way to show value question the decision? and noise generation. 100 years of mining. front. Since the rules have changed and companies are now allowed a 105-day win- We see Detour as a unique opportunity For Northern Territory in Australia, the to our shareholders is through dow, more companies are seeking partnerships and mergers. for the KL and Detour shareholders. For Can you elaborate on the company’s company has been aggressively explor- continued exploration success KL, it provides a third high quality asset new projects for 2020: Robbin’s Hill ing the Cosmos, Union Reef and Pine and we still have a significant Where would you like to see Wesdome by the end of 2020, and what is the in our portfolio. Detour is already a long at Fosterville, the Amalgamated Creek properties over the last three amount of exploration potential. focus of the company moving forward? life mine with a large reserve to support Break at Macassa, and exploration years. The Lantern discovery has been By 2020, I would like to see the Eagle River project ramping up towards a production mining for over 20 years. We see signifi- work in the Northern Territory? a game changer for the Cosmos mine, of 100,000 oz/y. I would also like to have a restart plan in place for the Kiena mine cant exploration upside in the current At Robbins Hill, the company has and this supported our decision to re- and perhaps have some pre-production activities underground. pit area that can support growth in mine achieved significant exploration suc- start the Union Reef mill in October We are confident that we will be able to keep growing the company organically. We life, but also help to lower costs and in- cess with surface drilling following the 2019. We have spent the last two years « believe that the only way to show value to our shareholders is through continued crease production through improved same exploration thesis and findings exploring the Lantern discovery at the exploration success and we still have a significant amount of exploration potential. productivity and higher throughput. from the Phoenix and Lower Phoenix Cosmos mine, including underground Wesdome is currently focused on the Abitibi belt. Once we are well on our way to We have already taken two “under- systems the host the Eagle and Swan development, diamond drilling, map- get Kiena restarted and reach 100,000 oz/y of production at Eagle River, the com- loved” assets at Macassa and Foster- ore bodies at the current Fosterville ping and bulk sampling. ■ pany will be in a position to look at acquiring more assets. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 38 Industry Explorations Global Business Reports 39 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 MAP Global Business Reports GOLD MINES Name Company 1 Bell Creek Mine Pan American Silver MINING OPERATIONS MAP 2 Black Fox Mine McEwen Mining Inc. Source: Ontario Mining Association 3 Detour Lake Gold Mine Kirkland Lake Gold 4 Eagle River Mine Wesdome Gold Mines Ltd. 5 Hemlo Mine Barrick Gold Corp. 6 Hollinger Mine Newmont - Porcupine Gold Mines 7 Holloway – Holt Mine Kirkland Lake Gold Ltd. Number of Mines in Ontario 8 Hoyle Pond Mine Newmont - Porcupine Gold Mines Metal Mines 28 Gold Mines 19 9 Island Gold Mine Alamos Gold Inc. Base Metal Mines 9 Iron Mines 1 10 Macassa Mine Kirkland Lake Gold Ltd. Platinum Group Metal Mines 1 11 Mishi Gold Mine Wesdome Gold Mines Ltd. Non-Metal Mines 9 12 Musselwhite Mine Musslewhite - Newmont Major Industrial Mineral Operations 9 13 Rainy River Mine New Gold Inc. Total Mines 39 14 Red Lake Gold Mines Evolution Mining 15 Taylor Mine Kirkland Lake Gold Ltd. 16 Timmins West Mine Pan American Silver Attawapiskat 17 Young – Davidson Mine Alamos Gold Inc. 12 18 Sugar Zone Harte Gold 19 Borden Mine Newmont - Porcupine Gold Mines

14 Moosonee BASE METAL MINES Red Lake 20 Kidd Creek Mine Glencore PLC 21 Sudbury Operations: KGHM International Ltd. Morrison Mine Kenora 22 Sudbury Operations:

3 Coleman Mine 25 13 Copper Cliff North Mine Marathon Vale S.A. 18 5 20 15 Creighton Mine 2 Thunder Bay Timmins 1 6 8 7 19 Garson Mine 9 16 10 11 17 4 6 Kirkland Totten Mine Wawa Lake 23 Sudbury Operations: Cobalt Nickel Rim South Mine Glencore PLC Fraser Mine Sault Ste. Marie 23 Sudbury 22 21 North Bay IRON MINES

24 Tomclid Iron Mine Ferromin Inc. Ottawa 8

24 1 7 PLATINUM GROUP METAL MINES 25 Lac des Iles Mine Impala Canada Toronto 2 MINE LOCATIONS 3 MAJOR INDUSTRIAL MINERAL OPERATIONS Numbers relate locations to names in charts 4 1 Blue Mountain Operations (nepheline syenite) Unimin Canada Ltd. London Metal Mines 2 Goderich Brine Field (salt) Compass Minerals Canada Corp. Windsor 3 Goderich Mine (salt) Compass Minerals Canada Corp. Gold 9 Base Metal 5 4 Hagersville Mine (gypsum) CGC Inc. Iron 5 Ojibway Mine (salt) K+S Windsor Salt Ltd. Platinum 6 Penhorwood Mine (talc) Imerys Talc

Industrial Mines/Quarries 7 St. Lawrence Mine (wollastonite) Canadian Wollastonite 8 Tatlock Quarry (calcium carbonate) OMYA Canada Inc. 9 Windsor Brine Field (salt) K+S Windsor Salt Ltd. MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 40 Industry Explorations EDITORIAL Global Business Reports Industry Explorations EDITORIAL

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Gold Mines’ president and CEO in 2016, Duncan Middlemiss ESG at the forefront of strategy dresses ESG issues. “Government, investors and communities was instrumental in the growth of St. Andrew Goldfields prior are interested in understanding what responsible gold mining to its acquisition by Kirkland Lake Gold. Under his leadership, looks like,” said Terry Heymann, CFO at the World Gold Coun- Wesdome’s stock has risen from under C$2 in July 2016 to over Speaking at the Northern Miner’s Progressive Mine Forum in cil, continuing: “We consulted across stakeholders and wrote C$10 dollars in December 2019, and shows no sign of slowing Toronto, October 2019, Claudia Mueller, associate director a set of principles that recognized and consolidated existing down. “Wesdome has a crystal clear strategy about building of the Global Mining Management program at the Schulich standards and instruments. By defining what constitutes re- Canada’s next mid-tier gold producer,” stated Middlemiss, School of Business, proclaimed that the next generation of sponsible gold mining, we created a credible platform through before going on explain how Wesdome’s exploration and pro- mining leaders will arrive with a “tsunami” of environmental, which mining producers can provide confidence that their gold duction success at Eagle River – producing at 21 g/mt in 2019 social and governance (ESG) concerns. is being produced responsibly.” – has allowed the company to accelerate the investment pro- Furthermore, the number one consideration in EY’s Top 10 In December 2019, at the Energy & Mines World Congress in gram into the complex: “This includes enhancing the tailings business risks and opportunities in mining 2020 is license to Toronto, Gold Fields’ CEO Nick Holland spoke of the expo- capacity, improving the mill by adding a Falcon gravity con- operate (LTO), an issue that has evolved into something more nentially rising cost of energy combined with the increasing centrator and developing the proper drilling platforms within than simply social license. “Looking at the list year-over-year, effects of climate change becoming a pertinent issue that the the mine.” we have seen a big shift from the traditional corporate social industry must address. Success at the Eagle River mine has also funded the C$27 mil- responsibility approach towards adopting a holistic environ- De Beers, the biggest player in the global diamond market, lion advanced exploration program at Wesdome’s Kiena proj- mental, social and governance strategy,” observed Theo Yam- has the ultimate goal of becoming the first company in the ect in Québec, with a PEA expected to be released in April eogo, co-leader of mining and metals Canada at EY. world to have a carbon-neutral mine, according to Nom- 2020. “The advantage Wesdome has is that this project is a From BlackRock CEO Larry Fink’s open letter to the mining pumelelo (Mpumi) Zikalala, managing director of De Beers fully built, fully permitted mine, and the resources that we have industry, to the appointment of the environmentally conscious Managed Operations, who spoke of the company’s Project been able to explore and define better are incredibly high Mike Henry as CEO of BHP Billiton in January 2020, the larg- Minera research and development initiative to investigate the grade – almost 18 g/mt in the indicated and 15 g/mt in an in- est players in investment and mining production are prioritiz- potential for carbon-neutral mining: “We are working in col- ferred resource,” said Middlemiss. ing responsible mining, with ESG at the forefront of company laboration with scientists and academics from five universities A Toronto-based gold miner to have successfully made the strategy. across Canada and Australia... Together, we are examining dif- transition to mid-tier status in recent years is Alamos Gold, With this in mind, the World Gold Council, the market develop- ferent mineral carbonation technologies and testing them out with mines in Ontario and Mexico and advanced stage de- ment organization for the gold industry backed by 26 of the in laboratories and on mine sites. We are very excited as this velopment projects in Turkey. In 2014, Alamos Gold had one world’s leading gold mining companies, has established an could usher in a whole new era of sustainable mining,” she producing mine, Mulatos, producing approximately 145,000 overarching framework for responsible gold mining that ad- explained. ■ oz/y of gold. By 2018, the company was producing 500,000 oz/y from four different operations, going from roughly 1.8 million oz of reserves, to approximately 9.8 million oz. John McCluskey, Alamos Gold’s president and CEO, touched on the company’s philosophy to operate in a counter cyclical fashion: “While other companies were making large market transac-

Image courtesy of De Beers - Reclamation supervisor at Victor Mine, Ontario tions, we were generating free cash flow. When the market came off dramatically and companies had to deal with the debt of their acquisitions, Alamos Gold had over US$400 million in » cash with no debt.” In Ontario, Alamos Gold has been building out the lower mine infrastructure at its Young-Davidson mine, which will essentially set the mine up to operate for the next 20 years, according to We consulted across stakeholders and wrote a McCluskey: “The mine is currently built to operate at approxi- set of principles that recognized and consolidated mately 6,500 mt/d, but with the addition of the lower mine existing standards and instruments. By defining infrastructure, we will be able to handle 8,000 mt/d, which is what constitutes responsible gold mining, we the capacity of our mill. This matched capacity will give Alamos Gold an increased production profile, and as the economies of created a credible platform through which mining scale work in our favor, we will also be able to reduce costs.” producers can provide confidence that their gold is Alamos Gold has also enjoyed success at its Island Gold mine. being produced responsibly. Acquired in late 2017, there was initial skepticism from the market surrounding the price for the asset, but in the two years since, the acquisition has proven to be a valuable acquisition, - Terry Heymann, with increased throughput at the mine raising production from CFO, roughly 100,000 oz/y to approximately 145,000 oz/y in 2019. All the power you need. World Gold Council “We saw an excellent resource that had been ignored for a Cut emissions, boost productivity and enhance health & safety – all number of years and could be converted to reserves on a one to one basis,” commented McCluskey, citing aggressive ex- while lowering your total cost of operation. ploration budgets that have exceeded US$20 million as having epiroc.com converted a substantial amount of reserves, which will lead to « an updated resource estimate being released in early 2020. MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 42 Industry Explorations Global Business Reports 43 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

How has Alamos Gold more than tre- one basis. Throughout 2018 and 2019, ble production in five years? we have been drilling at the Island Gold Nompumelelo The company tends to operate in a very project aggressively with exploration counter-cyclical fashion. While other budgets of US$20 million per year. We companies were making large mar- have significantly grown the resource (Mpumi) ket transactions, we were generating base while converting a substantial free cash flow. When the market came amount of resources to reserves. An up- Zikalala off dramatically and companies had to dated resource will be released in early deal with the debt of their acquisitions, 2020. Alamos Gold has also increased Alamos Gold had over US$400 million throughput at the mine, which has al- in cash with no debt. We only started lowed us to increase production from Managing Director to look at acquisition opportunities af- roughly 100,000 oz/y to approximately DE BEERS GROUP MANAGED OPERATIONS ter the market correction occurred, and 145,000 oz/y in 2019. these transactions were at much more reasonable prices. In 2014, Alamos Gold What is the current status of the com- had one producing mine, Mulatos, pro- pany’s Mexican assets? How has De Beers Group restructured technologies that we need to apply to products. Over the years, the De Beers John ducing approximately 140,000 oz/y of When Alamos Gold started production its management to consolidate its reduce our mining footprint with mini- Group has made investments into hav- gold. By 2018, the company was pro- at Mulatos there was a seven-year mine South African and Canadian assets? mal impact to the environment. ing a responsible footprint and we rec- ducing 500,000 oz/y of gold from four life, and now, 15 years later, there is still The restructuring is subsequent to a ognize that millennials want to know that McCluskey different operations, going from rough- a seven-year mine life. We did not ac- strategic review which identified key Can you elaborate on De Beers the diamonds they are buying serve a ly 1.7 million oz of reserves, to 9.7 million quire a discreet ore body, but rather an success factors for our upstream busi- Group’s aim to build mines that leave greater purpose and therefore we con- oz. We have been reinvesting the cash entire district of mineralization which ness. The new business, De Beers Group no footprint? tinue to create awareness of our socio- flow generated back into our big expan- ranks sixth in the world in terms of size. Managed Operations, will streamline De Beers Group has recognized that we economic investment and sustainable sion projects, and making big capital in- We have been exploring the area for operational management and identify need to find new and sustainable ways initiatives. vestments which we believe will increase many years and have managed to find a synergies to create a more sustainable to recover diamonds. We have made Through our Building Forever strat- the life of our mines significantly. We are number of satellite deposits outside of business in the two countries. significant studies that showed that egy we are focused on implementing now reaching a point where we will be the main Mulatos pit, where we contin- approximately half of our emissions cu- sustainable initiatives to ensure that President, CEO & Director able to harvest the benefits of this big ue to mine and expand high grade gold Where is the company currently fo- rrently come from the use of fossil fuels, we build a positive, lasting legacy that ALAMOS GOLD capital investment. mineralization. cused in Canada? with the other half coming from the use will endure long after the last De Beers We are excited about our operations in of electricity. We are implementing the Group diamond has been mined. We What have been the main milestones At what stage of development is the the Northwest Territories. The plant at Project Terra initiative to address key work in partnership at a local, national achieved at Alamos Gold’s Ontario Kirazli project in Turkey? the Gahcho Kué Mine, a joint venture energy and carbon impacts and we are and global level, particularly in two ar- operations in the last year? Alamos Gold’s work in Turkey over the between De Beers Group and Mountain setting targets for reducing our carbon eas in which we believe we're uniquely We are in the process of building out the last years has been focused attaining Province Diamonds, was designed with emissions and greenhouse gas emis- placed to make a significant impact: lower mine infrastructure at the Young- all the permits we needed to develop a capacity of 3 million mt/y. The team sions. 'Standing with Women and Girls' and Davidson mine in Ontario, which will the Kirazli project, the last of which was has since been able to improve the ef- Project Minera is De Beers Group’s re- 'Protecting the Natural World'. essentially set the mine up to operate received in March 2019. Construction ficiency of the plant which can now search and development initiative that Regarding our commitment to stand- » for the next 20 years. By spring 2019, activities had been ramping up through comfortably process an additional 10% is investigating the potential for carbon- ing with women and girls, in Septem- we were able to show that we had com- the spring; however, in October 2019, we above its capacity rate. sequestration. We are working in col- ber 2017 we announced our three-year pleted most of the blasting and rock-re- suspended all construction activities on In Ontario and Manitoba we are con- laboration with scientists and academics partnership with UN Women. Through In 2014, Alamos Gold had lated work in terms of preparing for the the Kirazli project, pending the renewal ducting exploration in several projects from five universities across Canada and this, De Beers Group became a HeFor- one producing mine, Mulatos, installation of both the machinery and of our Turkish mining concessions, which resulting in numerous exciting drill tar- Australia. Together, we are examining She Thematic Champion and is commit- producing approximately infrastructure that we would need. We expired on October 13, 2019. gets. We are also working with Adia Re- different mineral carbonation technolo- ted to standing with women and girls 140,000 oz/y of gold. By 2018, are now on schedule for the completion sources to investigate the Lynx projects, gies and testing them out in laboratories throughout our company, within our co- the company was producing of the lower mine expansion in the first Alamos Gold was awarded best CSR which have returned abundant microdia- and on mine sites. We are very excited mmunities and across our brands. We 500,000 oz/y of gold from four half of 2020. The mine is currently built practice in 2019 by the Mexican Cen- monds, and with Tri Origin Exploration as this could usher in a whole new era of also have the ambition to leave a last- to operate at approximately 6,500 mt/d, on their projects in the Abitibi area. sustainable mining. ing and positive legacy across every different operations, going ter for Philanthropy (Cemefi). Can but with the addition of the lower mine you explain the factors behind this In Nunavut, we continue to progress part of our business, while also helping from roughly 1.7 million oz of infrastructure we will be able to handle recognition? the Chidliak project with drilling, envi- How has the evolving consumer de- to strengthen the relationship between reserves, to 9.7 million oz. 8,000 mt/d. This award acknowledges our successes ronmental baseline studies and geo- mographic for diamonds impacted people and nature through our commit- At the end of 2017, Alamos Gold ac- with the voluntary relocation of resi- logical and geotechnical assessments. the market? ment to protecting the natural world. Be quired Island Gold. There was a lot of dents from Mulatos to Matarachi. Ala- De Beers Group continues to see the There are many different consumers in it through the 200,000 hectares we have skepticism in the market on why we mos Gold worked closely with the co- acquisition of Chidliak project as part of the market with different preferences. set aside for conservation, the nature « made this decision, especially at the mmunities, investing in several projects the purchase of Peregrine Diamonds as The younger generations still have a reserves we own and manage across price that we acquired the asset. We that will provide long-term benefits, a profitable investment with high poten- strong desire for diamonds, but they ex- southern Africa or our translocation of saw an excellent resource that had been including the construction of 21 new tial. Linked to the Chidliak diamond re- hibit different behaviors than previous 200 elephants to a country that desper- ignored for a number of years and could homes, a new school, church and medi- source, we have initiated Project Arctic generations. Millennials value authen- ately needs them, we believe in the im- be converted to reserves on a one to cal clinic. ■ Fox, which is involved with identifying ticity, uniqueness and ethically-sourced portance of forever. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 44 Industry Explorations Global Business Reports 45 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 EXPERT OPINION Global Business Reports Industry Explorations EXPERT OPINION

Modifying Factors and FIGURE 1 Optimized Cut-Off NPV FOR VARIOUS COG

Source: SRK, 2020 Grade Determination NPV ($ million) 80

50 Gary M Poxleitner, PEng, PMP Practice Leader/Principal Consultant 40 SRK CONSULTING (CANADA) INC. [email protected] 30 [email protected] 20

0 2008 2010 2012 2013 2015 2017 COG

TABLE 1 BIO Cut-off grade (COG) is a standard, cally, it is value in the form of NPV and REVENUE ing factors are used in the industry, a This resulted in the material not being industry-accepted method used to de- internal rate of return (IRR) but may 2019 survey of approximately 100 glob- able to cover all costs and therefore Gary M Poxleitner is involved in leader- termine which part of a mineral deposit also include a COG that produces high al mines and projects were accessed. lower NPVs. Inversely higher COG sce- ship within the mining consulting indus- Metal Price ($) 100% to include in a Mineral Resource or a metal content or ounces at the risk of Table 1 summarizes our findings as to narios of 5.0 and 5.5 g/mt generated try and provides technical advice, mine Mineral Reserve estimate, or poten- resulting in lower net present value Mill Recovery (%) (Fixed) 100% the modifying factors used along with high feed grade but the tonnes were and project reviews, due diligence and tially in an operation’s Life of Mine Plan (NPV). the percent of those surveyed that ap- too low to cover all the fixed operating audits, cut-off grade analysis, operating (LOM). It is the minimum grade (or val- The widely-adopted method to calcu- Payable Metal (%) 85% plied them. costs and capital costs. This is summa- cost estimation, mine design and econo- ue) at which mineralized material can be late the COG is a break-even method- A strategic optimization methodology rized in Figure 1. mic and productivity improvement stud- Treatment and Refinery ($) 80% economically mined or processed. The ology. This approach accepts mining can be used to select the preferred Aside from NPV, other corporate ob- ies, as well as training and mentoring in selected COG is essentially a trade-off material which will generate revenue Transportation ($) 75% COG. It involves first running multiple jective criteria are also accessed, such all aspects of mine orebody extraction in between the revenue (inclusive of loss- from the sale of the finished product scenarios at a range of different COGs as long life mine life, scenario with low the underground environment. This in- es) that the potentially-economic mate- that is equal to the cost of certain modi- Royalties (%) 75% inside a flexible evaluation model. A upfront capital, or high ounces. These volves high level concept projects, PEA, rial contributes to the mine’s cash flow fying factors, such as mining, process- Mill Recovery (Variable) 20% mine plan is first performed for each criteria are compiled and summarized in PFS, Feasibility, project execution and vs. the cost to extract that same mate- ing, general administrative expenses COG (balancing effort with value), thus the form of a decision matrix tool. This operational assistance. He assists clients rial. COG is an essential parameter for (G&A), sustaining capital costs, treat- producing a mine schedule. Costs are approach is developed collaboratively in providing innovative albeit practical determining reserves, for generating ment and refining of contained metal(s) UPSTREAM (OPERATING) COSTS then included for each scenario and with mine planners and stakeholders, solutions to complex problems. production and business plans, and as- and is often inclusive of applicable roy- then fed into the economical model. where each objective is ranked for each Gary's technical experience covers a certaining the potential profitability of alties. The pitfall here is that it does not Mining Cost 100% This then produces an individual NPV COG scenario against the weighted wide range of commodities, geographic a stope or open-pit bench. guarantee that the orebody will cover and IRR for each COG scenario. The objectives. Depending on the selected and mining settings. Selecting the correct COG is essential. those costs that are excluded from the Milling Cost 100% highest value scenario for the related company criteria, mine site preferences Gary a professional engineer registered in Ontario and a professional project It affects the mine plan, cash flow, mine calculation (such as initial capital cost). G&A 90% COG may then be agreed as the pre- and the ranking, the results will be a cost, sustainability and profitability of It also does not clarify what technical ferred option. COG which combines all these criteria. manager, he has previously held positions the operation. However, the work re- and economic modifying factors to Dilution 70% Figure 1 demonstrates an example of Selecting a COG with prudence will as Vice Chairman of Camiro, Membership quired to generate the optimum COG include, which can have wide implica- an underground gold mine that we ac- set the course for your entire opera- Chair of the CIM Sudbury Branch, and is Sustaining Capital 55% is often not given the requisite atten- tions on the future and profitability of cessed with this approach. In this exam- tion and environment. Determining the currently on the Canadian CIM Council tion and diligence. the mine Corporate G&A 25% ple, a COG of 4.5 g/mt produced the correct modifying factors will assist in and Chair of the CIM Underground Mi- The process of selecting a COG should The decision of which modifying fac- greatest value overall. Additional sce- getting the right answer and taking a ning Society. Gary has a P.Eng in Mining begin with an understanding of what tors to include is often left to the per- Profit Margin 10% narios, using lower COGs of 3.0 g/mt strategic optimization approach will Engineering and a graduate from Lauren- the over-arching corporate and mine sonal judgement of mine professionals. and 3.5 g/mt, led to higher production ensure that all objectives are reviewed, tian University, Canada (1991). Project Capital 10% objectives are for the deposit. Typi- In determining which common modify- tonnages with low plant feed grades. validated and considered. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 46 Industry Explorations Global Business Reports 47 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 GBR • Industry Explorations • MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020

CANADIAN EXPLORATION

» I keep reading that people are never making discoveries, the rate of discoveries is going down. The funny thing, well, I guess I’m the sucker then because I keep buying guys who say they’re making discoveries. «

- Eric Sprott

Image courtesy of Sable Resources EDITORIAL Global Business Reports Industry Explorations EDITORIAL

CANADIAN EXPLORATION However, the discrepancy between the producers and juniors transformed from another high-grade gold in quartz vein sto- Mercedes mine in Sonora, Mexico, and the company hopes to is not sustainable, as depleting reserves and declining ore ry, to being something entirely different now,” he continued, increase production by advancing its portfolio of exploration grades incrementally increase the necessity for new discover- likening the deposit to Hemlo as the mineralization is more assets, which includes properties in Ontario. The Thunder Bay- ies to be funded, developed and brought into production. disseminated in the rock, rather than in veins, with intercepts based company announced in December 2019 that it would A suffering junior In his interview with Global Business Reports, Barrick president of high-grade gold mineralization going right to surface. “GBR re-establish exploration on its Red Lake projects in 2020, in- and CEO Mark Bristow named Canada as a “standout jurisdic- is a great example of why our industry exists. There is hope for cluding a renewed focus at the company’s 100%-owned Hasa- market waits for tion for finding big mines,” pointing to the opening up of big the exploration sector when you see good drilling results in a ga project. “Premier Gold Mines’ growth strategy is focused gold/copper porphyries in British Columbia and the potential mature jurisdiction. We believe that thinking out of the box can on reaching mid-tier producer status,” stated Ewan Downie, the tide to turn of the older regions in Ontario and Québec to be reinvented lead to significant discoveries, and the Dixie project is testa- president and CEO, adding: “We envision the potential to through creative and penetrative exploration. “Archean rocks ment to this,” he concluded. quadruple production organically over the next five years.” produce surprises, and I believe in Canada there are still great A Red Lake redemption is in the works as Rubicon Minerals opportunities that lie within the ground,” reflected Bristow. attempts to rise the Phoenix Gold project from the ashes after This sentiment was echoed by Shastri Ramnath, president, its meltdown in late 2015. At the helm of this task is president, Palladium reaches all-time highs CEO and director of private project generator Exiro Miner- CEO and director George Ogilvie, who was instrumental in im- Despite robust metals prices and gold breaking the US$1,600 als Corp: “Our philosophy is that there are many deposits out proving operations at the Macassa mine and completing the When producing the previous version of this report in Decem- threshold for the first time since 2013, funding has been harder there waiting to be found,” said Ramnath, suggesting that the acquisition of St. Andrew Goldfields as the CEO of Kirkland ber 2018, palladium’s remarkable performance was one of than ever to come by for Canadian exploration companies. The belief that all the easy discoveries have been found is mislead- Lake Gold. He described how results of the 35,000-mt bulk the key talking points, headlined by the now-acquired North cannabis hysteria and cryptocurrency boom have died down, ing, and the reason discovery rates are down is in part due to sample processing at the Phoenix Gold project reconciled American Palladium’s Lac des Iles mine near Thunder Bay. but generalist investment has yet to return to the exploration the nature of the value chain. “Exploration has been pushed even better than expected with the new geological model While the outlook for 2019 was bullish, few would have pre- sector, preferring to invest in low-cost producers showing free down to the juniors; juniors are publicly traded and therefore developed by Rubicon Minerals in 2018: “We managed to dicted just how well the platinum group metal (PGM) would cash flow. “The funds are seeing generalist money coming into have short term pressures from stakeholders. This results in mine 5,200 oz of gold from the three test stopes, whereas the perform, as rising demand from the hybrid automobile indus- the large and mid-caps and from their perspective it is riskier management decisions such as focusing on a small geologi- model predicted approximately 4,500 oz. There was a 14% im- try combined with a continued eight year deficit drove up the to pick a micro-cap that could double when some of these in- cal deposits for drilling that could simply be an anomaly,” she provement over and above what the NI 43-101 2018 Mineral price by 83% for the year. On December 17, for the first time in termediates have been doubling,” explained Ryan Matthiesen, explained. Resource Estimate predicted, in addition to 7% more per mt history, palladium broke the US$2,000/oz threshold, becoming managing director of investment banking at Haywood Securi- Some of the standout Canadian exploration projects in 2019 and 6% better grade.” more valuable than gold has ever been (US$1,917 per ounce ties. “This has created a large valuation gap as bigger compa- belong to Vancouver-based companies active in Ontario, or Premier Gold Mines is already a multi-asset producer through in 2011). nies have been trading at much better multiples,” he added. Toronto-based companies exploring the provinces and terri- its 40% interest in the South Arturo property in Nevada and 55>> tories away from their home base. With this in mind, instead of focusing solely on exploration projects in Ontario, we wanted to expand the coverage of Toronto’s junior community and highlight some of the best projects throughout Canada.

Golden opportunities at Red Lake

Red Lake in Northwestern Ontario has been a hive of activity in 2019, as Newmont sold its Red Lake mine to Australian company Evolution Mining for US$375 million in November, Pure Gold Mining began construction at its Madsen Gold mine in September and a host of juniors ramped up exploration at the historic mining camp. The best performing junior stock of Q4 2018 made further strides in 2019, as extensive exploration of Great Bear Resour- ces’ (GBR) Dixie project at Red Lake produced spectacular result after spectacular result, seeing the Vancouver-based junior’s share price rise from C$2 in January to a high of C$9 in September. “Approximately 12 months ago, we only had two zones discovered, but we have now increased this to seven discovered zones,” stated Chris Taylor, GBR’s president and CEO, who elaborated on how, through regional drilling and the use of government data, GBR discovered a new zone of shallow high-grade gold associated with silicification of host rocks related to a crustal-scale structure, called the LP fault. “The fault marks a contact between mafic and felsic/intermediate rocks and is spatially associated with an 80 m to 200 m wide quartz sericite zone associated with highly anomalous to high-grade gold mineralization,” explained Taylor. “The Dixie project has

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Great Bear Resources (GBR) has been mineralization observed over 300m of the great success story of the Cana- apparent width. Gold mineralization ex- What were the circumstances surrounding the creation Generation Mining dian junior mining community in the tends to within meters of surface in both in 2018? last 12 months. What were the key discovery drill holes and this discovery Generation Mining is a mining explorer and developer with a focus in platinum milestones that contributed to this marks the largest apparent concentra- group metals and specifically palladium. The company was incorporated at the be- success? tion of near-surface high-grade gold in- ginning of 2018 as a spin-out of Pine Point Mining when this company was acquired Great Bear Resources (GBR) has been tersected at the Dixie property to-date. by Osisco Metals. The company started with some exploration projects that built fortunate to experience a sequence of Drilling 1km southeast of the Auro Zone on Pine Point’s existing exploration work and their portfolio of properties. At the back to back gold discoveries on the Di- the new “Viggo Zone” has extended the end of 2018, we reached out to Sibanye Stillwater to coordinate an option deal on xie property. Approximately 12 months LP Fault gold mineralized system to 4km the Marathon PGM asset in Northern Ontario. We struck a deal in April 2019 to ago, we only had two zones discovered, of strike length, which remains open to acquire up to 80% of the Marathon PGM asset. but we have now increased this to seven extension. The first drill hole testing the discovered zones. The LP fault transects “North Fault” has intersected Hinge What type of resource is Generation Mining’s flagship Marathon PGM project the property for approximately 18km of Zone style gold-bearing quartz veins. in Northern Ontario? strike length. Follow-up drilling will test this new 18km In 2019, we came out with an update to the resource done by our predecessor. The Dixie project has transformed from long target which parallels the LP Fault. Jamie We identified 3.2 million oz of palladium, 1.2 million oz of platinum, 400,000 oz Chris another high-grade gold in quartz vein Au and 800 million lbs Cu. This works out to 7.1 million oz of palladium equivalent story, to being something entirely differ- Do you think that there is any interest in the measured and indicated category. It is the largest undeveloped project of ent now. The mineralization along the LP to consolidate the Red Lake region? Levy palladium in North America. The property has an area of 200 square kilometers. Taylor fault has very large-scale potential, and There is a lot of speculation on the con- Later on we added two satellite deposits and a further 1.5 million oz measured there are big intervals of high-grade solidation front, and we have had op- and indicated, and an additional 900,000 oz inferred. There is a lot of exploration gold mineralization going right to sur- portunities presented along the lines of up-side to find more palladium and higher-grade material. The property is also face, but it is not in veins. The mineral- consolidation. However, we are much privileged in terms of infrastructure. ization is more disseminated in the rock, more interested in determining and similar to something like the Hemlo de- showing the market how much gold we Considering the scale and potential of the Marathon Project, how was it left posit. have. available until 2019? We have had interest in our property President & CEO President & CEO We got the asset at a fortuitous time. Stillwater had acquired Marathon PGM in Considering the grades GBR has from mining companies and investors GENERATION MINING 2010 for US$118 million. Over the next couple of years, they worked to get the GREAT BEAR RESOURCES found at Dixie and its location in the across the board, but we are not in a rush property into production, before reaching a deal with Mitsubishi where they sold Red Lake Camp, how was it not devel- to make any transactional decisions. A 25% of the company for US$81.5 million. Mitsubishi wanted to secure the uptake. oped before? story like GBR helps attract investor in- In 2014, Stillwater did an internal feasibility draft that was never released. From the There is very little bedrock exposure on terest back to the mining industry. We findings and the inability to raise money, the project was abandoned. The com- the property. On average there is ap- want to continue developing a good mi- pany was also spread thin financially because they had acquired Peregrine Metals, proximately a 4m deep gravel blanket ning industry story so that speculative a mining company with their main asset in Argentina for US$450 million. There that covers the project. It is very shallow dollars can return to the sector. were management changes and Stillwater was sold to Sibanye. The merger was gravel cover, but it covers everything up » for US$2.2 billion and the purchase was primarily motivated by Stillwater’s assets which means if you are prospecting in Where would you like to see GBR by in Montana. When we approached them, they had no interest in developing the » the area, you do not see bedrock and the end of 2020? In 2019, we came out with an property in Ontario. Sibanye’s focus is in production rather than in developing the you are not going to find gold unless By the end of 2020, GBR hopes to have a mines. For this reason, we managed to get the asset on very favorable conditions. you drill. maiden resource published. We are fully update to the resource done by GBR is a great example of why funded to define our resource and the our predecessor. We identified 3.2 our industry exists. There is Do you expect palladium’s remarkable upward trend to continue? In October 2019, GBR announced new results might come a little sooner than million oz of palladium, 1.2 million I expect the price of palladium to continue increasing as supplies have been in hope for the exploration sector near-surface high-grade zone discov- the market expects. If we reach mutually oz of platinum, 400,000 oz Au deficit for the last six to seven years. Palladium requirements for emission convert- when you see good drilling eries at the Dixie project. Can you agreeable terms, we might also enter and 800 million lbs Cu. This works ers in electric cars rose from three grams to five, which will also cause the demand results in a mature jurisdiction. elaborate on these findings? into a strategic investment transaction. to increase. I understand above ground stockpiles of palladium have been used to out to 7.1 million oz of palladium We believe that thinking out of From our ongoing, fully-funded 90,000m We are open to collaborating with par- regulate the commodity’s price but these are starting to run out. Finally, there has drill program at the Dixie project, three ties for the advancement of the project. equivalent in the measured and the box can lead to significant been increased awareness of the commodity and this has strengthened demand. new gold discoveries have been made – We aim to always be ready to develop indicated category. It is the largest discoveries, and the Dixie project Yauro, Viggo, and the North Fault. The the project to where we can take it to, undeveloped project of palladium What are Generation Mining’s most important short-term goals moving for- is testament to this. new Yauro Zone is located between the but we are open to operational partner- in North America. ward? Yuma and Auro discoveries along the ships. Generation Mining’s immediate objective is to secure the 80% share of the Mara- LP Fault, and a structural dilation has GBR is a great example of why our in- thon Gold project and this means investing US$10 million dollars over the next localized multiple high-grade gold min- dustry exists. There is hope for the ex- four years. The company has managed to raise substantial capital and see its stock « eralized intervals. The Yauro Zone oc- ploration sector when you see good « price almost treble in 2019, so we have the means to keep exploring within the curs near a deflection point in the trend drilling results in a mature jurisdiction. property and capitalize on its potential fully. One of our key goals is to complete of the LP Fault and consists of several We believe that thinking out of the box a definitive feasibility study in 2020. If you are looking for a PGM name in a safe gold intervals spanning two drill holes can lead to significant discoveries, and jurisdiction, keep an eye out for Generation Mining. ■ collared 125m apart, with intervals of the Dixie project is testament to this. ■

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<<51 What is the focus and strategy of No- level, which is the drilling phase, can be How then, did Toronto-based junior “With North American Palladium gone timately discovering over 10 million oz ble Mineral Exploration? picked up by third parties. That allows Generation Mining manage to acquire and Stillwater logged up, where are you of gold at Canadian Malartic. In recent Noble is a Canadian-based junior ex- us to take back equity positions in those a 51% interest in the Marathon palla- going to get palladium exposure? There years, no group has performed as much ploration company following the project companies and provides Noble with an dium project in Ontario from Sibanye are not many investment alternatives for exploration in Canada as the second generator model, holding approximate- additional liquidity opportunity and at Stillwater in 2019 for total consideration palladium, so an asset in a secure juris- incarnation of the company, reaching a ly 79,000 hectares of mineral rights in the same time it does not incur the risk of under US$6 million, considering that diction is highly attractive,” continued staggering 1 million meters of drilling in the Timmins/Cochrane area of Northern of drilling on those other targets. At Stillwater had acquired the project in Weyrauch. September 2019 in only four years. Ontario, upon which we plan to gener- some point down the road, given the 2010 for US$118 million when palladium Now, in O3 Mining, the third iteration of ate joint venture exploration programs. spend-to-earn model, Noble will have was worth less than US$1,000/oz? Jamie the Osisko Mining Group has been cre- The company also holds a portfolio of the right to be a JV partner with that Levy, Generation Mining’s president, Québec: a world-class mining ated with the intention of adding signifi- securities in its JV partners plus a gold- third party. CEO and director, expanded on how jurisdiction cant value to the Garrison and Marban streaming and royalty interest in the the project had been abandoned due assets in Ontario and Québec, accord- Wawa-Holdsworth property. We are fo- What potential do you see in the Proj- to Stillwater’s inability to raise money All neighborly rivalries aside, Québec is a ing to Jose Vizquerra, O3’s president, cused on seeking JV partners to further ect 81 land package and what type and its financial outlay with the US$450 world class mining jurisdiction, reaching CEO and director. In July 2019, O3 Mi- expand on all of the company’s explora- of exploration techniques are being million acquisition of Peregrine Metals. the number four spot in the Fraser Insti- ning completed an RTO with Chantrell tion and development programs. utilized? “There were management changes tute’s annual rankings in 2018 and num- Ventures, transferring a portfolio of Vance Project 81 is a contiguous parcel of land and Stillwater was sold to Sibanye. The ber one in Canada. The province could exploration projects including Marban In December 2019, Noble announced covering all or parts of 14 townships merger was for US$2.2 billion, and the and should be used as a model for how and Garrison. Additionally, a portfolio the completion of the Crawford Nick- adjacent to the Kidd Creek mine com- purchase was primarily motivated by collaboration between the provincial of selected securities was transferred by White el-Cobalt project property transfer plex, which has been in production for Stillwater’s assets in Montana,” ex- government (with their pro-mining tax Osisko, which ended with just over 53% to Canada Nickel. Can you explain 53 years and has produced 160 million plained Levy, elaborating: “When we incentives), financial institutions (such as of O3 Mining’s outstanding shares. the transaction? mt. It is not uncommon for mega VMS approached them, they had no interest Investissement Québec and Caisse de Despite challenging conditions for ju- The compensation for Noble in order deposits to be associated with other in developing the property in Ontario. dépôt) and industry can help fulfill the niors, Vizquerra and O3 Mining have to transfer the Crawford Nickel-Cobalt satellite deposits that could run up to Sibanye’s focus is in production rather potential of a resource-endowed region. shown that the right projects with the assets was C$2 million in cash and 12 50 million mt. than in developing the mines. For this The first incarnation of Osisko Mining right backing can make quick prog- million shares of Canada Nickel. An ad- reason, we managed to get the asset un- defined a new style of mineralization in ress, as the company has raised over ditional benefit for the termination of Financing for juniors has been hard to der very favorable conditions.” Archean aged gold-only porphyries, ul- C$28 million to advance its exploration President & CEO the JV and the agreement with Spruce come by. Do you see the tide turning “The Generation Mining team nego- NOBLE MINERAL EXPLORATION Ridge Resources (Spruce) was that we in 2020? tiated an outstanding deal for their picked up an additional 2 million shares I think it is a matter of time before equi- shareholders.,” affirmed Ryan Matthie- of Spruce. Spruce will end up with 10 ty flows back into the market. As politi- sen from Haywood Securities, the sole million shares of Canada Nickel, 5 mil- cal or geopolitical risks start to stabilize, bookrunner on the financing. lion of which will be spun out to the whether it be the US-China trade deal Generation Mining can increase its inter- Spruce shareholders. The 10 million or the 2020 presidential election in the est in the Marathon PGM and joint ven- Canada Nickel shares that are being US, uncertainty comes out of the mar- ture to 80% by spending C$10 million spun out to the Noble shareholders ket. All economies want to grow their and preparing a PEA within four years. and 5 million Canada Nickel shares to infrastructure and the demand for com- Derrick Weyrauch, president and CEO of the Spruce shareholders will generate a modities remains robust. New projects Canadian junior Palladium One Mining » float of 30%. This float is going to help will have to be developed and these re- with projects in Finland and Ontario, create the public market once Canada quire capital. Looking at the nickel-co- observed that there is no easy solution Nickel starts trading on the Venture Ex- balt scenario, huge growth is expected to supply the palladium deficit, let alone The Canada Nickel deal is tangible change. An important part of the trans- from the battery and electric vehicles deal with the increase in demand that proof of the potential of our action was the negotiation with the roy- industry. is coming from diesel conversion and stricter standards. “What is really fasci- land package, and we intend to alty holder to reduce the royalty from a 5% NSR to a 2% NSR. As a result, the Do you have a final message for po- nating is the supply side. The existing continue developing projects into reduction is going to make the project tential partners? producers are constrained from target- 2020 and beyond. available to far more participants: ma- Partnering with Noble Mineral Explora- ing that commodity and supplying the jors and mid-tiers. It is contemplated tion means partnering with a historically incremental demand,” explained Weyr- that after we agree on the closure to emblematic team with a reputation for auch, noting that 10% of global supply the spin off, there will be additional op- success and an unbeatable knowledge is coming from two primary players and « tion and JV deals put together on other of the area and the business. The Can- 90% is a by-product of other mining – of nickel assets. ada Nickel deal is tangible proof of the which over 40% is coming from Russia As a second point, the deal leaves all potential of our land package, and we and South Africa. of the VMS assets on Noble’s Project intend to continue developing projects If South Africans are getting two or 81 land package open for exposure. into 2020 and beyond. We are looking three times the platinum for the palla- We have taken out all of the early stage at anywhere between a C$15 and C$20 dium they are producing, they cannot risks of airborne geophysics and data million spend over the next 36 months simply increase production as this would compilation to the point where the next with 8-10 partners. ■ further depress the platinum market.

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projects and acquired properties for a total value of roughly toward the end of 2020 with the goal of moving towards a pro- A path to near-term copper MINERAL EXPLORATION AND DEPOSIT APPRAISAL EXPENDITURES C$50 million to consolidate its portfolio in Québec. “These duction decision in 2021. “Troilus Gold Corp has over US$400 production in Manitoba Source: Natural Resources Canada initiatives allow us to move closer to our goal of becoming a million in inherited infrastructure and over 6 million oz in re- multi-million ounce, high-growth company, with over 61,000 sources, having added more oz in the last two years than any Gold miners made hay while the sun Juniors Seniors ha of prospective ground,” stated Vizquerra, adding: “O3 gold company in the world,” affirmed Reid. was shining in 2019, as expectations of C$ million Mining‘s properties hold 3.6 million oz of measured and in- U.S. Federal Reserve rate cuts and geo- 5,000 dicated resources at 1.26 g/t of gold and 1.5 million oz of in- political tension mounted between the 4,500 ferred resources at 2.14 g/t of gold, positioning us as a Tier 1 A new greenstone belt and “the crown jewel of Canadian United States and China to create the company in the junior mining space.” mining” in British Columbia perfect storm for the safe haven pre- 4,000 Another well-funded, Québec-focused junior is Troilus Gold cious metal. Copper, on the other hand, Corp, which acquired the past-producing Troilus gold mine At Roundup 2020 in January, the Association for Mineral Ex- suffered as trade tensions threatened 3,500 in Northern Québec in 2016 and worked privately on the as- ploration (AME) awarded its 2019 Celebration of Excellence demand outlook from China, which ac- 3,000 set before going public in January 2018. The Troilus mine was H.H. “Spud” Huestis Award for significant contributions to counted for 49% of global refined cop- previously operated by Inmet Mining, which produced ap- enhancing the mineral resources of BC and/or Yukon to Peter per consumption in 2018. 2,500 proximately 2 million oz of gold and 70,000 mt of copper in Fischl of Westhaven Ventures. Fischl was recognized for his However, copper is “poised for liftoff” a US$300/oz gold environment when it first entered produc- role in the discovery and ongoing definition of the South Zone in 2020, according to Jefferies analyst 2,000 tion and operated profitably for the next 14 years. Justin Reid, high-grade epithermal gold-silver deposit at Westhaven’s Christopher LaFemina, who pointed to 1,500 Troilus Gold Corp’s CEO and director, related the impressive Shovelnose project in the newly emergent Spences Bridge low copper inventories, high short posi-

resource growth his company has achieved through explora- Gold Belt (SBGB) in southern British Columbia. tions, supply constraints and better de- 1,000 tion: “Troilus publicly raised US$25 million with the help of 25 Toronto-based junior Talisker Resources was able to gain con- mand creating conditions for the metal global institutions and commenced an initial drill program of trol of 85% of this new gold belt in the largest single staking to rally, in a note to clients. This opti- 500 36,000 m. This exploration took the resource from 2.5 million in B.C.- history, staking nearly 190,000 hectares in a 6-hour mism is matched by the likes of Goldman oz to approximately 5.1 million oz. We then drilled an addi- period, according to president and CEO Terry Harbort. “Dur- Sachs, Morgan Stanley, Bank of America 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 tional 35,000 m and increased the resource to 6.4 million oz. ing the 2019 field season, we conducted an aggressive ex- and Citi, which see copper rising with an Today, we have the largest developing gold asset in Québec.” ploration campaign with 22 geologists in the field collecting improving global economy. Having raised almost US$50 million in under two years and approximately 2,500 silt fraction first order stream sediment In May 2019, a three-way tie up between million mt each,” revealed Ross, discuss- in unison before,” he said, elaborating: maintained a tight share structure, Troilus aims to start a PFS samples resulting in over 100 new anomalies and, to date, 10 private equity investor Greenstone Re- ing the company’s asset portfolio in the “We conducted a peer-reviewed study defined drill targets,” he said, adding that a planned budget sources, capital merchant bank Norvista Flin Flon-Snow Lake District in Manitoba of our conceptual method and gained Refer to the CTMF website for details. of C$3.6 million has been allocated to continue the explo- and the Rockcliff exploration company near on the Saskatchewan border. agreement that it could be possible to SME’s 8th Annual Current Trends in Mining Finance (CTMF) Conference ration at Spences Bridge in 2020, with Talisker’s specialized run by Ken Lapierre came together with Ross explained how Rockcliff is taking an produce at a mining rate of 2,000 mt/d. Managing Risk and Identifying greenfields team, in parallel to its program at the newly ac- a clear strategy of moving into copper innovative approach to change the way This is more than double the traditional Opportunities in a Disruptive World quired Bralorne Gold Camp. production, according to Alistair Ross, people see narrow veined, steeply dip- rate and would turn the seven-year proj- “The crown jewel of Canadian mining” was how Harbort de- president and CEO of Rockcliff Metals ping ore bodies, with the aim of mining ect into a three-year project.” Connecting Mining, Finance and Engineering Executives™ scribed Talisker’s Bralorne Gold asset in British Columbia, and Corp. “The initial work is to bring three a lot more on a daily basis than would With this timeframe, the project would JOIN US! the market seemed to agree, with the company’s share price of the company’s resources, Tower, Tal- traditionally be expected: “This is thanks rely on power generators instead of tra- May 10th - May 13th, 2020 doubling in the wake of the November 2019 acquisition. The bot and Rail, to an indicated level of be- to the adoption of a digital mine site de- ditional hydro lines, be less intrusive to at the Offices of Shearman & Sterling, New York, New York Bralorne Gold Camp is the source of the prolific Fraser River al- tween 3% and 4% copper equivalent, sign from the onset and from combining the environment and leave a minimized SME’s 8th annual Current Trends in Mining Finance Conference is intended for luvial gold rush of the 1860’s, producing 4.2 million oz of gold with a target size of approximately 2.5 technologies that have not been used footprint. ■ senior executives andmining industry executives and specialists including at 17.7 g/t for over fifty years. Two of the mines in the camp, bankers, advisers, analysts, investors, portfolio managers and engineers. Core to the conference will be discussion of the outlook, trends and issues impacting Pioneer and King, were closed in the mid 1960s whereas the raising capital in the global mining industry. Speakers at the conference and Bralorne mine continued until the early 1970s. “The gold price six workshops will discuss case studies about how management and investors then was US$35 per ounce; that’s about US$220 per ounce use technology and best practices to anticipate, manage and track technical and non technical and financial issues and risks associated with mining projects. in today’s dollars. I doubt there would be many mines today

For more information about the conference, the three networking receptions, and four workshops visit: economic at US$220 gold,” observed Harbort, adding: “With http://community.smenet.org/currenttrendsinminingfinance/home?ssopc=1 a highway right to it, a camp, a mine and tailings permit, and

Registration is Open ■ Register Early for Discounts ■ Sponsorships are Available being connected to grid power with a hydro plant several kilo- The organizing committee welcomes abstracts from you. Send them to [email protected] meters away, we view Bralorne as a world class opportunity.” THANK YOU TO OUR SPONSORS! In northwestern British Columbia, Romios Gold Resources an- Get noticed! Sponsor SME’s 2020 CTMF conference. nounced assays from its summer exploration program on its large claim holdings in the Golden Triangle. The results confirmed and expanded the porphyry copper-gold potential of two major prospects – Trek and JW – as well as outlining other high-potential targets, according to president, CEO and director Tom Drivas. “All of Romios’ projects are located adjacent to producing mines and/or major deposits nearing the production stage,” noted Drivas, suggesting that the econom- The Conference format allows delegates to exchange ideas with the ics of Romios’ projects benefit greatly from existing or improv- speakers during Q&A periods and receptions throughout the event. ing infrastructure.

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NYSME4907 2020 CTMF QtrPg.indd 1 12/17/19 3:08 PM INTERVIEW Global Business Reports Industry Explorations INTERVIEW

“The Crown Jewel of Canadian Mi- face vein extensions. Come spring, we ning” what can you tell us about the will be conducting a systematic review Jose recent Bralorne Acquisition? of all occurrences and anomalies on the The Bralorne Gold Camp is one of the 4200 hectare land package, many of Vizquerra highest-grade, most structurally con- which have never been drilled. tinuous gold deposits in Canada. The source of the prolific Fraser River alluvial Bralorne isn’t the only interesting gold rush of the 1860’s, Bralorne pro- land package in Talisker’s portfolio, duced 4.2 million oz at 17.7 g/mt for over can you elaborate on the Spences fifty years. On average, for every 50 me- Bridge exploration program? President, CEO & Director ters they extracted at depth, 115,000 oz Our focus prior to the Bralorne acquisi- was recovered from the 30 mesothermal tion was greenfields exploration for low O3 MINING INC. veins that were mined. Two of the mines sulphidation vein systems in the emerg- in the camp, Pioneer and King, were ing Spences Bridge Gold Belt. The belt closed in the mid 1960’s whereas the went from frontier to emerging in Sep- Bralorne mine continued until the early tember 2018 with the discovery of the Terr y 1970s. The gold price then was US$35/ Shovelnose deposit by Westhaven Ven- What were the circumstances sur- mately 61,000 ha covering an extraordi- Currently, our ongoing drilling program oz, that’s about $220/oz in today’s dol- tures. Talisker was able to gain control rounding the creation of O3 Mining? nary land position along the prolific Lar- is focused on the Central and East Ca- lars. I doubt there would be many mines of 85% of this new gold belt in the larg- O3 Mining is the third iteration of the der Lake-Cadillac fault. This was built dillac properties – Alpha, Akasaba and Harbort today economic at US$220 gold. With a est single staking in British Columbian Osisko Mining Group. It was created up after the acquisition of properties East Cadillac projects. During the first highway right to it, a camp, a mine and history, staking nearly 190,000 hectares with the intention of adding significant from Alexandria Minerals, Chalice Gold months of our drilling campaign in Al- tailings permit, and being connected to in a 6-hour period. We have recently value to the Garrison and Marban as- Mines, and Harricana River Mining. pha, new drill intercepts confirmed the grid power with a hydro plant several increased this land holding to 230,000 sets in Ontario and Quebec. In July of Additionally, we own the Garrison proj- extension of the Bulldog mineralized kilometers away, we view Bralorne as a hectares by identifying other similar cre- 2019, O3 Mining completed a reverse ect in Northern Ontario, located in the structure located 1,500m to the east of world class opportunity. taceous belts with the same structural takeover transaction with Chantrell Larder Lake Mining Division, as well as the original discovery. More important- and metallogenic framework. During Ventures. The transaction was final- the past-producing Buffonta mine and ly, this demonstrated the potential for What’s your view of the upside po- the 2019 field season, we conducted an President & CEO ized with the company being renamed Gold Pike mine properties. gold-bearing structures in the Pontiac tential at Bralorne? aggressive exploration campaign with to O3 Mining, and Osisko transferring O3 Mining‘s properties hold 3.6 million sediments. For our winter campaign, TALISKER RESOURCES We have an excellent database of his- 22 geologists in the field collecting ap- the Marban and the Garrison projects, oz of measured and indicated resources two additional drill rigs will be on the toric drift samples and drilling for the proximately 2500 silt fraction first order and other exploration properties to O3. at 1.26 g/mt Au, and 1.5 million oz of recently discovered Bulldog zone, Bralorne complex and have been able stream sediment samples resulting in Additionally, a portfolio of selected se- inferred resources at 2.14 g/mt Au, that which has returned important gold val- to wireframe numerous drill targets di- over 100 new anomalies and, to date, curities were also transferred by Osisko, positions us as a Tier1 company in the ues including 10.87 g/mt Au over 4.5m. rectly along strike and at depth of the 30 10 defined drill targets. With a planned which ended with just over 53% of O3 junior mining space. These excellent results will help focus mined veins. Most of these targets are budget of US$3.6 million we will con- Mining’s outstanding shares. Since its our expansion drilling to the west of the from 250m to 750m from surface. 29 of tinue the exploration at Spences Bridge inception in 2019, O3 Mining has raised What distinguishes the Osisko explo- Bulldog discovery. Additionally, we will the veins were historically mined to less in 2020 with our specialised greenfields over C$28 million to advance its exploration model? be exploring the high-grade compo- than 900m depth whereas the 77T Vein team in parallel to our Bralorne pro- ration projects and acquired properties The Osisko approach to exploration has nent of the Marban project to prove the was mined to 1.9 km. From the historic gram. for a total value of roughly C$50 million always distinguished itself from its com- continuity of this high-grade zone. » sampling during mining we see incred- to consolidate our portfolio in Quebec – petitors, through the intensive drilling ible continuity of grades above 15 g/mt Talisker had a lot of land in southern these initiatives allow us to move closer campaigns they performed. We believe Why do you believe Québec is the Bralorne produced 4.2 million for up to 750m along strike and up to BC, why do you like southern British to our goal of becoming a multi-million in building mines not just finding re- best mining jurisdiction in the world? 1.3km down dip. We see no geological oz at 17.7 g/mt for over fifty Columbia so much? ounce, high-growth company, with over sources. O3 Mining embraces the same We believe that the capabilities for ex- reason why this wouldn’t continue. Our When you compare the costs in the area 61,000 ha of prospective ground. discipline by taking a systematic ap- ploration are exceptional in Quebec years. On average, for every 50 first phase of drilling will be to test these we operate to the Golden Triangle, our proach to our exploration and drilling, for three main reasons. Through its meters they extracted at depth, near to surface targets and then to test exploration is significantly cheaper. Our O3 Mining has a significant land pack- and our advantage is that we already long history in mining, there are a vast 115,000 oz was recovered from deeper potential to show that the his- geologists can easily drive to the field age in Quebec and Ontario. Can you have four areas where a resource exists. amount of talented professionals in the the 30 mesothermal veins that toric continuity continues below the old from Vancouver, we have no need for The strategy in Val D’Or is to minimize region and the Quebec community ap- provide an overview of the compa- were mined. mines. Considering the historic produc- building camps or helicopter support ny’s portfolio of assets? the risk and maximize the upside. O3 preciates the value of mining and un- tion average was in excess of 100,000 oz and we have a whole list of eager drill O3 Mining has a unique portfolio of as- Mining will focus on expanding areas derstands the benefit that it can bring. per 50m panel, we believe we have po- companies just up the road in Kamloops, sets in Quebec and Ontario, spanning where resources exist but our explora- Also, attaining financing is easier com- tential to add a lot of ounces at depth. so our drill costs are US$150-200/m all- more than 460,000 ha. Our current fo- tion style will reveal the real size of the pared to other jurisdictions, with flow- « in instead of US$500-550/m. When you cus is in the Val D’Or camp, where at different projects. through shares schemes that boost What is your timing on beginning ex- combine this with our extended field least four world-class deposits have Our team has come up with an aggres- exploration activities in the province. ploration at Bralorne? season of 10-11 months against 3-4 been discovered (Canadian Malartic, sive exploration program for our Val Finally, the regulatory environment is We are fully funded and permitted to ini- months up north, it means that more of La Ronde, Sigma-Lamaque and Bus- D’Or properties to confirm, upgrade favourable as the rules are clear and tiate drilling at Bralorne in Q1, 2020. Our our money goes into the ground faster, quet) and 30 million oz of gold has been and increase the current resources with predictable to obtain the social license initial program will consist of 10,000m leading to a shortened discovery time- produced. We currently own approxi- a 50,000m drill program. to operate. ■ with 3,000m targeting the close to sur- line. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 58 Industry Explorations Global Business Reports 59 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations FACTSHEET

Can you provide a brief overview of a timely manner and with constructive GOLD PRICE EVOLUTION USD/T.OZ Rockcliff Metals Corp? consultation processes with First Na- Source: Kitco The Rockcliff that is being traded today tions. 1,650 on the CSE is very different to the one 1,550 1,500 that was traded on the TSX.V. In May How is Rockcliff integrating techno- 1,450 2019, there was a three-way tie up be- logical solutions into its operations? 1,400 tween Greenstone Resources, a private Our whole approach is to change the 1,350 equity investor; Norvista, a capital mer- way people see narrow veined, steeply 1,300 chant bank from Toronto with strategic dipping ore bodies. We want to mine 1,250 property interests; and the Rockcliff a lot more on a daily basis than would Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 exploration company run by Ken Lapi- traditionally be expected. This is thanks erre. The outcome of the three parties to the adoption of a digital mine site coming together was a clear strategy of design from the onset and from com- SILVER PRICE EVOLUTION USD/T.OZ Source: Kitco moving into copper production. The ini- bining technologies that have not been 19.50 tial work is to bring three of the compa- used in unison before. It could be pos- 19.00 ny’s resources, Tower, Talbot and Rail, sible produce at a mining rate of 2,000 18.50 18.00 Alistair to an indicated level of between 3% mt/d. This is more than double the tra- 17.50 17.00 and 4% copper equivalent, with a tar- ditional rate and would turn the seven- 16.50 get size of approximately 2.5 million mt year project into a three-year project. 16.00 15.50 Ross each. Additionally, we are continuing to Finally, we will have a fully electric mo- 15.00 explore other narrow vein steeply dip- bile fleet underground. No diesel un- 14.50

ping ore bodies to add to the pipeline derground makes a big difference to Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 of our first three projects. The beauty the health of on-site workers and to the of the tie up is that we obtained access environment. to a fully permitted mill that was origi- PALLADIUM PRICE EVOLUTION USD/T.OZ Source: Kitco nally a nickel processing facility that can What are your projections on how 2,600 be easily permitted for copper treat- the market for copper will evolve? 2,400 President & CEO ment. We have a seven year lease on I believe there will be a copper price of 2,200 ROCKCLIFF METALS CORP the Bucko Mill and have completed the around US$3. We are targeting a mi- 2,000 necessary test work to allow us to file a ning method that will allow us to gen- 1,800 notice of alteration to transition the mill erate a positive cash flow even at the 1,600 from a nickel to a copper processor. low parts of the cycle. The adoption of 1,400 electric vehicles in the world automo- Can you comment on the Flin Flon bile fleets will represent increased cop- Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 District in terms of its geology and per demand because the copper re- infrastructure? quirements in electric vehicles are four COPPER PRICE EVOLUTION The Flin Flon-Snow Lake District is on to five times those in cars with diesel or USD/LBS Source: Trading Economics the border with Saskatchewan and gas engines. 3.00 » stretches significantly into Manitoba 2.95 2.90 and is one of the most prolific green- What are Rockcliff’s main targets for 2.85 2.80 stone belts in the world. We want to mine a lot more on a the next two years? 2.75 The infrastructure is excellent with exist- In the next three to four months we 2.70 2.65 daily basis than would traditionally ing rail and road networks. The rail line will have Preliminary Economic Analy- 2.60 be expected. This is thanks to the 2.55 that feeds Thompson has been heavily ses completed for the Rail, Talbot and 2.50 adoption of a digital mine site invested in by Vale and the owner. Tower Deposits. We will then begin design from the onset and from a bankable feasibility study on one of Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 combining technologies that have How do you view Manitoba as a mi- those in the second quarter of 2020, ning jurisdiction? for completion by end of 2020, includ- not been used in unison before. NICKEL PRICE EVOLUTION Manitoba is excellent for permitting ing any work needed in the Bucko Mill. USD/MT Source: Trading Economics matters and assistance with logistics. They are near-surface deposits that do 19,000 We have met with the Conservation not require expensive shafts or compli- 18,000 17,000 and Climate, and the Agricultural and cated engineering – the rock character- 16,000 « Resource Development Ministries. The istics are known due to the long history 15,000 ability to meet first hand at a ministry of mining in the area. Concurrently, we 14,000 13,000 level is special. When we expressed our will finalize our financing plan and our 12,000 time frame for permitting, they were permit applications. The construction 11,000 collaborative and enthusiastic. The ex- of the mine and work on the mill will ploration work permits were granted in then be able to commence in 2021. ■ Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 60 Industry Explorations Global Business Reports 61 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 GBR • Industry Explorations • MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020

GLOBAL REACH

» I believe that you mine a national asset. Whatever way you operate it, it belongs to the host country, and you have a role to deliver value out of that asset, otherwise you should leave it in the ground. «

- Mark Bristow, President & CEO, Barrick Gold Corp.

Image courtesy of Barrick Gold Corp. EDITORIAL Global Business Reports Industry Explorations EDITORIAL

TORONTO’S GLOBAL REACH On that note, Global Business Reports’ annual guide to the On- directed towards strengthening the company’s balance sheet, passed by Sunshine Silvers’ claims associated with its 95 million tario mining industry would not be complete without an inves- de-risking its Media Luna project and advancing its proprietary oz Los Gatos discovery. “Initial sampling confirmed the valid- tigation into a variety of Toronto-based mining players plying Muckahi Mining System. ity of the first target with 3/4 of samples in the 100-900 g/mt their trade in countries with better coffee than Tim Hortons. The first blast of TXG’s innovative Muckahi Mining System (pro- Ag range. The project is drill ready, with permitting underway,” Mine the mines Although jurisdictional stability has grown in importance in the nounced “Muck-ah-high”) took place in April 2019 and has said Obradovich, while discussing Sable’s portfolio of assets, eyes of investors in recent years, the tantalizing combination of been garnering attention from mine operators looking to re- which also includes projects in Argentina and Peru. abroad, mine the underexplored and highly mineralized land with low operating duce costs and optimize production. “If there is the potential of The Canadian/Mexican alliance is also being utilized to costs continues to attract mining entrepreneurs. reducing costs by 30%, making an all-electric mine without any strengthen the flow of mining talent throughout the LATAM markets in Toronto greenhouse gasses and producing less waste rock that must region via Toronto-based recruitment agency Viarmosa Inter- come to surface, you are going to attract interest from indus- national. “I realized that there were so many good mining com- Are you a Mexican or a Mexican’t? try,” remarked Stanford, who believes that once the integrated panies headquartered in Canada which were struggling to find Muckahi system is demonstrated, it will become one of the cor- skilled labor and the right expertise for their operations in Latin While populist rhetoric from the President of the United States nerstones of TXG’s growth strategy. America,” observed executive partner, Victoria Moreno, add- continues to stoke the price of gold and depress the price of Minera Alamos is an advanced-stage exploration and developing: “Mexico has a very rich mining culture and a large mining copper, further south, the election of a populist of a different ment company with a growing portfolio of high-quality Mexican workforce with skills and experience which can be used in op- “I always say asset quality overrides jurisdiction,” professed leaning, Andrés Manuel López Obrador (also known as AMLO), assets, which, according to vice president of business develop- erations elsewhere in Latin America.” Barrick chief Mark Bristow, a philosophy clearly shared by many sparked fears that Mexico’s government could interfere with a ment Jason Kosec, has found a niche in the market: “There are mining companies headquartered in Toronto. From the biggest myriad of mining projects, many of which belong to Canada- a lot of orphaned assets that are not getting enough value on fish down to the micro-cap juniors, Canada is awash with com- based companies. Fortunately, AMLO announced that he will junior explorer’s books. Our strategy is to develop low capex Diverse opportunities across Africa panies headquartered in the home of mining, but with opera- not interfere with current mining concessions. On the other assets while expanding the near mine resource and pursuing tions abroad. hand, good luck getting new ones: "We will maintain these con- complementary strategic acquisitions.” London and Australia form natural hubs for Africa-focused mi- Access to the capital markets and financial institutions, a wealth cessions, and we are not going to cancel them, but now we are With near-term production targeted, Minera’s Santana project ning companies, and China’s growing influence in the region is of mining expertise and a diverse international community all also not going to continue issuing new mining concessions, be- is forecast to be in production in Q3 2020 and the Fortuna proj- apparent from its control of the cobalt supply chain in the DRC make Toronto an ideal hub for deal making and orchestrating cause a lot have been handed out," the Mexican president de- ect in Q4 2021; Kosec praised the transparency of the Mexican to its strategic infrastructure investments in East Africa. How- financial support. As the home of the PDAC convention, which clared in a press conference in Zacatecas state in August 2019. permitting process, highlighting: “Typically, the process takes ever, there are a number of success stories from the Toronto mi- hosted attendees from 132 countries in 2019, what happens in For those with concessions in hand, Mexico remains an excel- less than 12 months.” ning community active in Africa, with Teranga Gold being one Toronto invariably reverberates around the mining world. lent jurisdiction: “Mining is part of the fabric of the country and While brownfield projects that reinterpret historical data and of the standout performers in 2019. the country has many very strong mining laborers and profes- utilize different exploration models can occasionally unearth “It has been a year of highlights for Teranga Gold,” enthused sionals,” commented Taj Singh, president and CEO of Discov- elephants, such as Osisko’s Canadian Malarctic discovery, es- Richard Young, president and CEO, who, in early December, ery Metals (DSV), the well-funded silver explorer that received tablishing a new greenfield belt is the holy grail of exploration. announced plans to acquire the Massawa gold project from considerable financial backing in 2019, including C$12 million While greenfield exploration has fallen out of fashion with the Barrick Gold. A non-core asset for Barrick, Massawa is ideally from Eric Sprott in 2019 alone, who now owns 20% of the com- public markets, Sable Resources, led by a management team located right next door to Teranga’s flagship Sabodala gold op- pany. “In terms of costs to build a project and run a mine, it that has been responsible for discovering approximately 40 mil- eration in Senegal and within 30 km of its plant. “As one of the ranks very favorably to other nations in North America and lion oz globally, is focused on developing its large portfolio of highest-grade undeveloped open-pit gold reserves in Africa, South America,” related Singh, adding: “Permitting and com- greenfield projects to resource stage by utilizing an upper level the addition of Massawa is a game changing event for Teranga,” munity engagement is transparent also and moves at a much epithermal strategy, according to president, CEO and chairman Young stated, commenting that the acquisition is set to acceler- better pace than other countries in this part of the world.” Tom Obradovich. Sable signed an option agreement to obtain ate the repositioning of Teranga into a low-cost, mid-tier gold Also active in Durango state, Excellon Resources’ Platosa mine 100% of the Margarita project, located in a region encom- producer. 71>> has been Mexico’s highest-grade silver producer, according to Brendan Cahill, president and CEO, who gave his views on the fundamentals of the precious metal with industrial uses: “At some point in time the global debt overhang has to be addressed. When those fractures start coming in to the market, gold and silver will be the place to be. We are already seeing this: there is huge sovereign buying of gold, and with negative interest rates there is no holding cost in gold. Silver is ultimately going to follow gold and then outperform it; but will not act independently.” On the gold side, one of the established Toronto-based mid- tiers active in Mexico is Torex Gold Resources (TXG), which saw its share price double from 2018 to 2019, a reflection of the transition of the company’s El Limón Guajes mine to steady operation following the resolution to an illegal blockade in early-2018. “Since then, the mine has lived up to its potential, delivering record gold production in Q3 2019, following a record quarter in Q2 2019,” clarified Fred Stafford, TXG’s president and CEO. Operational performance combined with a resurgent gold price has allowed Torex to generate strong cash flow, which has been

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 64 Industry Explorations Global Business Reports 65 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 GLOBAL REACH Global Business Reports Industry Explorations INTERVIEW

TORONTOS From September 2018 to September when the machines are integrated into a GLOBAL 2019 Torex Gold Resources’ (Torex mining system, that the system performs Gold) share priced doubled. What has at the design rate. REACH been the basis of this success? The first big implementation decision Torex Gold’s share price performance has been taken. With the functional ca- over the last 12 months reflects the pabilities of the equipment proving up as transition of our El Limón Guajes mine per design, a decision has been made to to steady state operation following the dedicate the ELD deposit to testing the This map includes those projects and companies mentioned in this editorial. It does not represent resolution to an illegal blockade in ear- machines together as an integrated sys- a complete list of exploration and production projects in the regions highlighted, and is ly-2018. Since then, the mine has lived tem. Once the integrated system is dem- intended for reference purposes only. up to its potential, delivering record onstrated we anticipate using it as one of gold production in Q3 2019, following the cornerstones of our growth strategy. a record quarter in Q2 2019. The operational performance in combination with Has Torex Gold been receiving global COMPANY TICKER COUNTRY PROJECTS MINERAL STAGE a resurgent gold price has allowed Torex Adventus Mining Corp TSX.V: ADZN OTCQX: ADVZF Ecuador Curipamba Project Cu, Au, Ag Prod, Dev, Expl. interest in Muckahi, and which type of Alamos Gold TSX:AGI NYSE:AGI Mexico (Sonora) Mulatos Au Production to generate strong cash flow, which we companies have been contacting you? Mexico (Sonora) El Chanante Au Production have directed towards strengthening our We have been receiving questions from Turkey Kirazli Au, Ag Development, Expl. Fred Turkey Aği Daği Au, Ag Development, Expl. balance sheet, advancing our proprietary various sources, especially from base Mexico Esperanza Au, Ag Development, Expl. Turkey Camyurt Au, Ag Development, Expl. Muckahi Mining System, and de-risking metal miners. If there is the potential of Aston Bay TSX-V: BAY, OTCQB: ATBHF United States Buckingham Gold Project Au, Cu, Zn Development Stanford our Media Luna project. reducing costs by 30%, making an all- Aurania Resources TSX-V: ARU Ecuador Lost Cities Project Au Exploration Barrick Corporation TSX: ABX, NYSE: GOLD United States (Nevada) Nevada Gold Mines Au Production The operational performance in 2019 electric mine without any greenhouse US (Montana) Golden Sunlight Au Production has been anchored by better than ex- gasses, and producing less waste rock Saudi Arabaia Jabal Sayid Cu Production Democratic Republic of Congo Kibali Au Production pected output from the open pits and that must come to surface, you are going Peru Lagunas Norte Au Production Mali Loulo-Gounkoto Au Production Sub-Sill underground deposit. Explora- to attract interest from industry. We will Zambia Lumwana Cu Production tion continues to find more resources wait until we prove Muckahi up before Mali Morila Au Production Papua New Guinea Porgera Au Production from Sub-Sill and ELD. These higher- giving definitive answers to the ques- Dominican Republic Pueblo Viejo Au Production grade underground deposits provide a tions posed. Cote d'Ivoire Tongon Au Production President & CEO Argentina Veladero Au Production nice sweetener to the open pits, which Muckahi will fit in any type of under- Chile Zaldívar Cu Production TOREX GOLD RESOURCES Discovery Metals TSX.V: DSV Mexico Puerto Rico Ag, Zn, Pb Exploration are already relatively high-grade with a ground mine, except a block cave op- Mexico Minerva Ag, Zn, Pb Exploration reserve grade of 2.9 g/mt gold. The pro- eration, given fragmentation is the key Mexico Cordero Ag, Zn, Pb Exploration Mexico Monclova Ag, Zn, Pb Exploration cess plant has performed excellently in variable to control. We believe we can Excellon Resources TSE:EXN Mexico La Platosa Ag Production terms of recoveries, and we are making potentially triple the productivity of an INV Metals TSE: INV Ecuador Loma Larga Au Exploration Kirkland Lake Gold TSX: KL, NYSE: KL, ASX: KLA Australia Fosterville Au Production steady progress at achieving targeted underground mine given the ability to Australia Northern Territory Au Exploration throughput of 13,000 mt/d. achieve continuous mucking at the face, Ion Energy na Mongolia Baavhai Uul Li Exploration Minera Alamos TSXV: MAI Mexico La Fortuna Au, Ag, Cu Development conveyors to transport ore directly from Mexico Santana Au Development Mexico Los Reyes Au, Ag Development The first blast of Torex Gold’s Muckahi the stope to surface, and fewer stopes in Neo Lithium Corp TSXV: NLCX Argentina Tres Quebradas Li Development Mining System (Muck-ah-high) took cycle. Omai Gold Mines na Guyana Omai Gold Mine Au Exploration, Dev. Steppe Gold TSE: TSGO Mongolia Altan Tsaagan Ovoo Au, Ag Production place in April 2019. What is the strat- Mongolia Mungo Discovery Au, Ag Exploration Mongolia Uudam Khundii Au, Ag Exploration egy for the development and imple- What does the near-term future hold Teranga Gold Corp TSX: TGZ, OTCQX:TGCDF Senegal Sabodala Au Production mentation of this technology? for Torex Gold, and what would the Cote d'Ivoire Miminvest Joint venture Au Exploration » Cote d'Ivoire Afema Joint Venture Au Exploration Muckahi is a very different approach to company like to achieve? Senegal Massawa Au Production material and personnel transport in an We have achieved full year gold produc- Burkina Faso Wahgnion Au Production Torex Gold Resources TXS: TXG Mexico El Limon Guajes Mining Complex Au Production If there is the potential of reducing underground mine. The primary innovation of 430,000 oz (+/- 7%) in 2019 and Mexico Media Luna Au Exploration tion is conveying muck from the tunnel- will look to replicate a similar perfor- Sable Resources TSXV: SAE Mexico Margarita Ag Exploration costs by 30%, making an all-electric Mexico Vinata Au, As, Sb, Hg, Ba Exploration ing face or production stope directly to mance over the next few years. The solid Mexico El Escarpe Ag Exploration mine without any greenhouse Argentina Don Julio Au, Cu Exploration surface or the shaft loading pocket. To cash flow from El Limón Guajes is ex- Conic Metals Corp TSXv: NKL Papua New Guinea Ramu Nickel Cobalt Operation NI, Co Production gasses, and producing less waste make conveyors practical, innovation pected to provide the capital required to First Cobalt TSXV: FCC, OTCQX: FTSFFS US (Idaho) Iron Creek Project Co, Cu Exploration rock that must come to surface, Premier Gold Mines TSX: PG Mexico Mercedes Au, Ag Production was required to steepen the ramps from advance Media Luna to production and US (Nevada) McCoy-Cove Au Exploration you are going to attract interest a conventional 7 degrees to 30 degrees. prove out Muckahi. We believe Muckahi US (Nevada) Rye-Goldbanks Au Exploration US (Nevada) Cove Au, Ag Advanced Expl. from industry. 30-degree ramps cannot be excavated gives Torex Gold a spectacular platform US (Nevada) South Arturo Au Production with rubber-tired equipment, so a further from which to grow. We want to deliver Trigon Metals TSXV:TM Namibia Kombat Cu Development Namibia Gross Otavi Cu, Ag, Pb Exploration innovation was required. The adaption on these aspects while maintaining the Namibia Harasib Cu Exploration Palladium One TSXV:PDM Finland Läntinen Koillismaa Project PGI, Ni, Cu Exploration of a roof mounted monorail system made social processes that have been success- Global Atomic Corp TSX: GLO Niger Dasa U Development it possible to move equipment without ful to date. We try to create a work expe- Turkey Befesa Silvermet JV Zn Production « Dundee Precious Metals TSX:DPM Serbia Lenovac Au, Cu Exploration rubber tires. The strategy for develop- rience where people willingly give their Serbia Tulare Au, Cu Exploration ment is first to prove that the machines best, and the workplace is organized Serbia Timok Gold Project Au Exploration Bulgaria Krumovgrad Au, Cu Production we have designed can achieve their such that teams giving their best can be Bulgaria Chelopech Au, Cu Production Namibia Tsumeb Cu Production purpose, and then to demonstrate that safe and highly productive. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 66 Industry Explorations Global Business Reports 67 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

Dundee Precious Metals (DPM) an- ducing 173,000 oz of gold and 37 million Rick nounced record gold production for pounds of copper. 2019. What were the main factors be- Can you provide an overview of Global Atomic Corporation’s dual focus in hind these results? Which technologies implemented in Niger and Turkey? Howes This was as a result of our successful your mines in the last two years have Global Atomic Corporation is a Canadian company trading on the TSX that is ad- construction, commissioning and ramp- had a particularly good impact? vancing the high-grade, large DASA uranium deposit in the Republic of Niger. The up completion in 2019 of our newest We have implemented a new flotation DASA project has a resource of 250 million pounds uranium and is in the middle President & CEO gold mine in Bulgaria, the Ada Tepe technology called Staged Flotation Re- of three existing plants, with excellent access to infrastructure. In addition, Global DUNDEE PRECIOUS METALS mine (previously referred to as the Kru- actors in both our Chelopech mill and Atomic benefits from the significant dividend stream generated by its share in the movgrad Project). This is a high grade, in our new Ada Tepe mill. This has sig- Befesa Silvermet zinc concentrate production facility in Turkey. We are differenti- low cost, open pit gold mine with an 8 nificantly reduced energy requirements ated from other junior companies in that we have a positive cash flow and second, year mine life, which will produce over and has shrunk the footprint required we have a project that is large, high grade and can be permitted very quickly. 100,000 oz/y for the first 5 years on compared with conventional flotation average. We completed the construc- cells. We are currently working to imple- What is the timeline for development for the DASA uranium project? tion and commissioning of the mine in ment this full strategy in our mills. The permitting window in Niger is four to six months – as long as you provide a June of last year and ramped up to full We have implemented autonomous feasibility study and an environmental impact statement, both of which we are cu- production by September, generating drones for mapping of the underground Stephen G. rrently working on. 57,000 oz of production to the end of mine excavations, and in particular, the 2019. The first full year of production open stope blasts. This allow us to get Can you elaborate on Global Atomic’s recently expanded zinc processing from Ada Tepe will be this year, so we close to real-time feedback on the de- Roman plant in Turkey? should see another record year of gold sign and allow us to optimize the drilling Befesa Silvermet acquires electric arc furnace dust (“EAFD”) from steel mills and production in 2020 also making us the and blast design to achieve minimal di- recycles the EAFD through its Waelz kiln to produce a high-grade zinc oxide con- largest gold producer in Europe. Our lution (overbreak) and maximum recov- centrate which is sold to zinc smelters throughout the world. We just commissioned Chelopech Gold Copper mine, also in ery. ■ the new plant in Turkey, which had been shut down in 2019, so we could complete Bulgaria, had another strong year pro- the construction. Global Atomic’s EBITDA from 2018 was US$13 million, and the new plant should double that in 2020 as it has twice as much throughput.

President & CEO How do you view the fundamentals of zinc and uranium pricing? In December 2019, Teranga Gold an- below budget and two months ahead of GLOBAL ATOMIC CORPORATION The trade tension between China and the USA has affected base metal pricing in- Richard nounced the acquisition of the Mas- schedule. cluding copper and zinc, and Chinese exports to the United States are down 25%. sawa gold project from Barrick. How Commencing in 2020, Wahgnion is ex- Zinc is trading at around US$1/lb, down from a high of US$1.50 a year ago. I expect significant is this acquisition for the pected to increase company-wide an- construction will recover providing relief to base metal prices. Once things settle, Young company’s development? nual production by 50% and play an the price should start rising to US$1. 10 or US$1.20/lb. In early December, we announced our important role in advancing Teranga I think the uranium market will stabilize and start to move up as utilities that have plans to acquire the Massawa gold proj- towards its vision of being a mid-tier been accessing the secondary market start seeing reserves dry-up. The Kazakhs ect from Barrick Gold. Massawa is lo- gold producer. And while Wahgnion is have started a new marketing project and taken Kazatomprom public. Clearly, it is cated in Senegal, right next door to our a smaller operation than Sabodala, it is in their interest to increase the value of their asset. Between the Kazaks and Cam- President & CEO flagship Sabodala gold operation and lower cost and is expected to double eco, the two biggest producers, they have cut back some production to stabilize TERANGA GOLD within 30 km of our plant. mine-level free cash flow. the market. Being a lower quartile producer we can weather lower prices and when As one of the highest-grade undevel- Wahgnion was one of three assets ac- » they rebound we should be making a lot of money. oped open-pit gold reserves in Africa, quired by Teranga as part of our pur- the addition of Massawa is a game chase of Gryphon Minerals in 2016. From an environmental Where would you like to see the company by the end of 2020? changing event for Teranga. Massawa The acquisition also included two ex- By the end of 2020, we would like to have the mining permit process complete so is expected to transform our Sabodala ploration properties in Burkina Faso: standpoint, compare the amount we can move ahead with construction of the DASA mine. Once we have the capex mine into a top tier asset with higher Golden Hill and Gourma. Golden Hill of resources needed and nailed down, we could leverage the cash flow to raise financing, as we would like grade and an extended mine life, and is now our most advanced-stage ex- footprint left by a large-scale to keep share dilution to a minimum and expect to have sufficient capital to go accelerate the repositioning of Teranga ploration property and, in February of solar or wind power installation, through the feasibility study process. In Turkey, we expect to see greater revenue into a low-cost, mid-tier gold producer. this year, we announced an early-stage to nuclear alternatives such as now the new facility is up and running and would also like to have debt related to initial resource. Multiple high-grade, the plant completely paid off. a small modular reactor (SMR), What have been the main milestones near-surface and deeper gold discover- and you will realize the uranium’s achieved by Teranga Gold over the ies at Golden Hill indicate district-scale Do you have a final message for the readers of Global Business Reports? last 12 months? potential. sustainable value to our future. Global Atomic has two very solid businesses that we feel are going to do well in As of the beginning of November, Teran- both the near and long term. Zinc is a very valuable metal that is used to galvanize ga’s newest mine, Wahgnion, located in How has Sabodala performed in this steel and augment soil fertility – with robust demand forecasts for both uses. Spe- southeast Burkina Faso, achieved com- time period? cific to our project, Turkey is the second largest steel producer in Europe, the eighth mercial production. Wahgnion is our Last year we delivered our third con- « largest in the world, and gets 80% of its material for production from scrap. We second producing gold mine and was secutive year of record production with have excellent access to steel mills in the vicinity that supply our feed. A high-grade completed approximately US$15 million 245,000 ounces of gold. ■ zinc producer in Turkey is excellent from a business case. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 68 Industry Explorations Global Business Reports 69 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations EDITORIAL

<<65 Image courtesy of Major Drilling Can you provide an overview of Trigon Metals and the company’s portfolio of Additionally, Teranga’s newest mine, projects in Africa? Wahgnion, located in southeast Burkina Trigon Metals is a TSX.V-listed, Toronto-based junior focused on African copper. Faso, achieved commercial produc- The past-producing Kombat mine in Namibia is Trigon’s flagship asset, and has tion C$15 million below budget and a clear and quick path to be brought back in to production in one of the premier two months ahead of schedule in Au- destinations for mining around the world. gust 2019. “We are really pleased with Additionally, we recently acquired the Silver Hill project in Morocco, an earlier stage the work of our team and contractors asset with vast exploration potential, with ancient slags grading 2.5% Cu distributed throughout this project and in particular widely across one third of the concession surface. Trigon’s local partners have also with the fact that it was completed with discovered silver at the property recorded in shallow drill holes (1m at 623 g/mt Ag no lost time incidents over 5.3 million or 4m at 263 g/mt Ag at 35m depth). hours worked,” added Young. In the neighboring Republic of Niger, Why did the Kombat mine stop producing in 2008 and what are the necessary Global Atomic Corporation is advanc- steps to bring it back into production? ing its large, high-grade, DASA uranium Mismanagement from the previous owners was the overarching theme, but specifi- deposit with a resource of 250 million cally there was a flood that forced the closure of the mine. At the time just after the pounds and located in the middle of three Jed global financial crash, they were not able to go back to capital markets to finance existing plants. In contrast to the majority themselves out of the issue. They had a guarantee that had been put in place with of junior companies, Global Atomic ben- the Namibian government to do the expansion and the holders ended up taking efits from a positive cash flow from the Richardson the mine. significant dividend stream generated The key now is putting together the necessary finance to restart the operation. We by its share in the Befesa Silvermet zinc have been looking at ways to do this without a lot of dilution. In March 2018, Trigon concentrate production facility in Turkey, entered into an agreement with a Chinese engineering and procurement group which was upgraded in 2019 and forecast call Xinhai, which is working on a study to present to Chinese banks, allowing us to to double throughput in 2020. use the export credit facilities of the Chinese government. The actual construction Stephen G. Roman, Global Atomic’s pres- is properly financeable in today’s market: observed Ali Haji, CEO of Mongolian of the mine would take only six months, and studies suggest that the capex for ident and CEO, would like to have the mi- “Country risk is what it is; the real risk is lithium-focused exploration company Ion construction would be only US$7.5 million for an open pit resource. However, we ning permit process complete by the end the next dollar,” he reflected, continuing: Energy, which plans to go public in early President & CEO are looking at a blended open-pit/underground operation for higher grade mate- of 2020 so that the company can move “If I come to you and say I need US$100 2020. TRIGON METALS rial, which would incur a slightly larger capex but would ensure a longer life of mine. ahead with construction of the DASA million and I only raise US$50 million, Half of Ion Energy’s board is Mongolian, mine. Elaborating on the outlook for then I am in trouble because a half built including Bataa Tumur-Ochir, the new What are your thoughts on the current climate for raising finance as a junior, uranium, Roman said: “From an environ- mine is worth nothing. Too often, mines president and CEO of Steppe Gold ap- and why do you think it has been so difficult despite robust metals prices? mental standpoint, compare the amount have been built on excel spreadsheets pointed in December 2019. Since its IPO Although there have been structural changes to the way projects are financed, I of resources needed and footprint left by without taking practical realities and the in May 2018, Steppe Gold has made rapid think this has not changed as much as some people would point to. There is still a a large-scale solar or wind power instal- myriad of risks associated with develop- progress completing the mine build at its fair bit of investment capital for exploration. The trouble is at this mezzanine level lation to nuclear alternatives, such as a ment into consideration. In a sense, the ATO project, commissioning the crush- where you have done all your studies and have an operation you are trying to put small modular reactor (SMR), and you will market is a little smarter now, and com- er, completing a trial mining phase at a in to production, it is very difficult to raise finance. The problem lies with a previous realize uranium’s sustainable value to our panies need to work harder to prove their positive grade reconciliation of 2.3 g/mt misuse of capital by the junior/development market, as companies were building future.” value.” gold and receiving the last of its permits mines with the view to sell them – rather than really building to move into sustained On the other side of the continent, Bar- in December 2019 to move into produc- production. The few companies that have successfully navigated the path from ex- rick expanded its footprint from north- tion. Aneel Waraich, Steppe’s executive » ploration to production, such as Osisko, are held in a rarefied air because of they eastern DRC into Tanzania, creating a Mongolia ramps up mining vice president and director, explained are the exception rather than the rule. new operating company called Twiga development how the company’s projected sustaining Country risk is what it is, the real In Trigon’s case, that is why we looked at what is properly financeable in today’s Minerals Corporation in partnership with costs going into 2020 are approximately risk is the next dollar... Too often market and decided on a low-capex restart. Too often mines have been built on the Tanzanian government to manage Mongolia’s mining minister, Dolgorsüren- US$650/oz including refining and royal- the Bulyanhulu, North Mara and Buzwagi giin Sumyaabazar, reassured Rio Tinto in ties: “In Mongolia there is a skilled labor mines have been built on excel excel spreadsheets without taking practical realities and the myriad of risks associated with development into consideration. In a sense, the market is a little smarter mines. “With the launch of Twiga Minerals November by declaring that the com- force at a cheaper cost than anywhere spreadsheets without taking now, and companies need to work harder to prove their value. in Tanzania, we are breaking new ground pany’s US$7 billion expansion of the Oyu else in the world. This means that we practical realities and the myriad of and pioneering the way we share the eco- Tolgoi underground copper-gold mine, were able to build our mine cheaper than risks associated with development Do you have a final message for mining investors? nomics of mining with host countries in a the second largest copper deposit in the anywhere else. We had equipment com- into consideration. In a sense, the I want to emphasize the two key points on how you make money in mining invest- developing world,” stated Bristow. world, will not be stopped. The minister’s ing in from China, which meant that logis- market is a little smarter now, and ment. Firstly, through discovery: drilling and creating value for a piece of land where Trigon Metals is a Toronto-based junior words eased fears the government could tical lead times were quite quick and the there was no value before. Secondly, the transition from spending to earning as a focused on African copper, with projects try to renegotiate contractual agree- costs were also relatively cheap.” companies need to work harder to mine comes into production. Trigon has both of those opportunities in the Kombat in Namibia and Morocco. Elaborating on ments after the Mongolian parliament Underlining Steppe Gold’s focus on be- prove their value. mine in Namibia for a very low capital expenditure, and the Silver Hill project in Mo- the company’s decision to focus on a low- backed a petition to revise documents coming a mid-tier Mongolian precious rocco which has superb exploration upside. There are a lot of risks in mining, in both capex restart at its flagship past-produc- related to the asset’s development. “The metals company, Waraich gave his out- geology and investment capital. Managing those risks is something Trigon will do ing Kombat mine asset in Namibia, Jed government understands that mining is look for the new year: “By December « very well because we operate in premiere jurisdictions that are very mine-friendly Richardson, president and CEO, under- a major contributor to the GDP and pays 2020, Steppe Gold will be in commer- and friendly to international investment. ■ lined the importance of looking at what the vast majority of taxes in the country,” cial production and at full run rate at the

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 70 Industry Explorations Global Business Reports 71 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 EDITORIAL Global Business Reports Industry Explorations THOUGHTS company’s heap leach operation. We will mately 20%, according to president, CEO chairman of Omai Gold Mines. After pro- TORONTO’S INFLUENCE IN MEXICO also have completed strong exploration and director, Christian Kargl-Simard. ducing 3.7 million oz between 1992 and programs on our ATO, Mungu and UK Adventus has not been impacted by any 2005 at an open pit average grade of 1.7 projects.” political and social turmoil in Ecuador, g/mt and annual production between Bayar Baatar, principal consultant and and Kargl-Simard has noticed continual 250,000 and 350,000 oz, the mine closed founder of Toronto-based Baatar Con- improvements to the mining landscape: in 2005 due to low gold prices. “There is a developing sovereign debt crisis and the prospect for risk-mitigation assets is strong. sulting, commented that Steppe’s ap- “In the last 12 months the government “The Omai gold mine is extremely un- But the real trade may take time to crystalize, so it’s simply the classic question of, can you stay pointment of a Mongolian national as has made further mining policy improve- derexplored,” said Clement, mentioning solvent longer than the market stays irrational? Or, do you have the nerve to complete the trade? CEO is proof that the country is catch- ments including the elimination of the that the limited drilling performed did, Nevertheless, at some point the global debt overhang has to be addressed. When those factors ing up with its human capital to act on sovereign adjustment and VAT on capital however, show that gold mineralization start coming into the market, gold and silver will be the place to be. We are already seeing this: a world stage in resource development. items for mining projects,” he said, not- continues both along strike and to depth there is huge sovereign buying of gold, and with negative interest rates there is no holding cost in Additionally, Erdene Resource Develop- ing that the government sees the mod- from both of the historic mining pits. ment Corp becoming the first company ern mining industry being potentially “Our geological team also has extensive gold. Silver is ultimately going to follow gold and then outperform it; but won’t act independently.” to be dual-listed in Mongolia and the TSX the main economic driver for the country knowledge of the Omai deposit and the “is a landmark move for the country and moving forward. “Ecuador is developing Guyana shield in general, and we believe - Brendan Cahill, President & CEO, demonstrates the government’s interest into a mining country which is open for that resources at Omai will be increased Excellon Resources in seeing its citizens – the ultimate ben- business with government and business significantly to re-establish a major new eficiaries of the natural resources of the leaders in the country working to attract gold mining opportunity in Guyana.” country – share the risk and reward of mi- further investment. In 2018, there was ning projects via stock ownership.” approximately US$1.7 billion in foreign “The Minera Alamos team has successfully built three mines in the last 12 years, including founding direct investment into Ecuador, of which Exploring the United States Castle Gold and developing the El Castillo mine for US$8 million, which was later sold to Argonaut two-thirds were investments into the mi- Gold for US$130 million. We are focused on opportunistically acquiring and developing high-quality Ecuador: vast resource potential vs. ning industry,” he noted. Closer to home, Toronto-based junior mining assets that are close to production, capable of high operating margins, and modest in size. Toronto-based junior INV Metals has the Aston Bay decided to shift its focus from social tension Minera Alamos currently has two assets in Mexico; the La Fortuna open pit gold CIL project in backing of IAMGOLD with a 35.6% stake, base metals in Nunavut, to gold in the Durango and the Santana open pit heap-leach development project in Sonora.” A milestone was achieved by Ecuador’s and Dundee Precious Metals with a 19.5% U.S. state of Virginia. Nevada may be the burgeoning mining community in 2019 stake, partnerships that Candace Mac- most famous and most prolific gold-pro- as Lundin Gold poured its first gold bar Gibbon, INV Metals’ CEO, believes will ducing region in the United States, but - Jason Kosec, VP Business Development, from the giant, high-grade Fruta del help the company grow. Currently devel- Virginia was the center of gold mining Minera Alamos Norte project in November. However, oping its Loma Larga project, the eighth prior to the California gold rush, related mining development has not been plain lowest cost gold development project Thomas Ullrich, Aston Bay’s CEO. “We sailing in 2019 for the mineral-rich South in the world (according to miningintel- believe that there is great potential in “Mexico, in our minds, is still one of the best mining jurisdictions in the world. As I said, it ranks as American country that many believe will ligence.com), she stated: “Ecuador’s employing modern techniques and mi- be the next hotspot of world mining. mineral potential is vast, I believe it is ning methods to an area that has been the first silver producer in the world but also ranks among the top countries in gold, copper, zinc, In October 2019, after the government one of the few mining jurisdictions where minimally explored since 1850. Geo- lead and coal. Mining is part of the fabric of the country and the country has many very strong announced IMF imposed austerity re- “elephants” can be found in greenfield chemistry, geophysics, drilling and mine mining laborers and professionals. In terms of costs to build a project and run a mine, it ranks very forms and the end to a fuel subsidy, exploration.” dewatering/pumping technologies are all favorably to other nations in North and South America. Permitting and community engagement is protests brought Quito to a standstill subsequent innovations,” he explained. transparent also and moves at a much better pace than other countries in this part of the world.” for 10 days. “The government is now in Aston Bay acquired Don Taylor’s private a position where it must decide whether Guyana’s extractive industries to company Jack's Fork Exploration (JFE), to implement austerity policies, which rejuvenate economy which included the Blue Ridge project. - Taj Singh, President & CEO, could possibly drive political instability Don Taylor, the former COO of Arizona Discovery Metals and hamper economic growth, or run the The new decade looks bright for Guy- Mining and the 2018 Thayer Lindsley risk of alienating international organiza- ana, as the IMF has forecast the South Award winner for his discovery of the tions during a time of significant financial American country’s GDP will triple within Taylor deposit in Nevada, has also joined “In Mexico, we signed an option agreement to obtain 100% of the Margarita project, located in a need,” reflected Keith Barron, chairman the next five years, making it the fastest- Aston Bay as a technical advisor. “The and CEO of Aurania Resources. growing economy per capita in the world. Buckingham gold property was the first region totally encompassed by Sunshine Silvers’ claims associated with their 95 million oz Los Gatos In November, Aurania announced it had The main driver will be ExxonMobil’s vast agreement we signed in early 2019, and discovery. Initial sampling confirmed the validity of the first target with 3/4 of samples in the 100- found vestiges of an old road at the cen- Stabroek Block offshore oil discovery, we have already started drilling opera- 900 g/mt Ag range. The project is drill ready, with permitting underway. Also in Mexico, the Vinata ter of its flagship asset, The Lost Cities which is expected to go into production tions there. Considering the way the mar- project is an advanced asset generated by BlueJoint Resources as part of their extensive greenfields Cutucu project, which it believes provides in 2020. ket has turned toward gold with its rise exploration program. The silica textures observed and geochemical signature of low anomalies evidence that its project sits within one of Natural resource extraction has been in price and away from base metals, our of Au, strongly anomalous As, Sb, Hg and Ba, and low Ag, Cu, Pb and Zn are characteristic of the Ecuador’s lost gold mining centers. foundational to Guyana’s economy for efforts will continue to focus on gold in Another Toronto-based junior exploring many years, with the past-producing Virginia,” explained Ullrich, noting that upper levels of an epithermal system.” in Ecuador is Adventus Mining, which, in Omai gold mine being the largest em- when the market’s appetite for base me- 2019, updated the existing high-grade ployer in Guyana and representing 23% tals improves, Aston Bay has significant - Tom Obradovich, President & CEO, resource at its flagship Curipamba proj- of the country’s GDP during its produc- copper, zinc and cobalt plays to explore Sable Resources ect, increasing the grade by approxi- tive years, according to Denis Clement, further. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 72 Industry Explorations Global Business Reports 73 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

What have been the main milestones What is the current status of the Mun- Candace Christian Dr. Keith Aneel achieved by Steppe Gold over the last gu Discovery and its timeline for de- 12 months? velopment? MacGibbon Kargl-Simard Barron Steppe Gold has managed to complete The Mungu gold and silver discovery is Waraich the mine build at its ATO project and located immediately northeast of the President, CEO & Director commissioned the crusher. The com- current resource at the ATO project. It CEO Chairman & CEO ADVENTUS MINING pany has been trial mining at ATO since is a structurally controlled epithermal INV METALS AURANIA RESOURCES November 2018 and completed Phase gold-silver system with localized bonan- CORPORATION Executive Vice President & Director I mining in the Spring with 275,000 mt za grades. STEPPE GOLD mined at a positive grade reconciliation Since listing, Steppe Gold has managed of 2.3 g/mt Au for approximately 17,000 to drill another 11,000 m in 2019. Some oz Au. of this drilling was done on Mungu, some In Mongolia there is a skilled labor force was done on the Mungu Gap, and some at a cheaper cost than anywhere else was done on ATO 2 and ATO 4. These in the world. This means that we were results will be tied into our resource up- able to build our mine cheaper than any- date. Mungu has never had a resource where else. We had equipment coming put out and we will thus reveal a maiden in from China, which meant that logisti- resource in the update. cal lead times were quite quick and the costs were also relatively cheap. Our Does Steppe Gold plan to drill the Uu- projected cast costs going into 2020 are dam Khundii (UK) project in 2020? approximately US$550/oz, including re- Steppe Gold did not have the chance Can you provide an overview of INV What have been the main milestones Can you take us through the major defining costs and royalties, and we expect to drill our UK project in 2019, based on Metals portfolio of projects in Ecuador? achieved by Adventus Mining Corp. velopments of Aurania Resources over the sustaining costs to be approximately time and resources. However, we have INV Metals acquired the Loma Larga gold- (Adventus) over the last 12 months? the past 12 months? US$650/oz. We are also very fortunate done all the groundwork and have four copper-silver project from IAMGOLD in When we last met, Adventus was prepar- Aurania Resources has completed a drill that the price of gold is working in our discoveries which we would like to follow 2012. INV Metals published the results of a ing for three significant airborne geophys- program on our Crunchy Hill gold tar- favor. up on. ■ feasibility study in November 2018, which ical programs on its projects in Ecuador. get. The result did not come out exactly confirm Loma Larga is a robust project With the surveys completed, we have de- as we expected, and when we analyzed with a 30% after tax IRR and a 5% after tax veloped 14 regional targets at Curipamba the data, we found that we have the NAV of US$486 million at a gold price of outside of the known El Domo deposit right type of alteration, but probably did What were the circumstances sur- Can you comment on the current mi- US$1,450 per ounce. Loma Larga will be an and approximately 20 copper-gold por- not go deep enough on this target. We Ali rounding the creation of Ion Energy ning environment in Mongolia? underground mine with an initial 12 year phyry targets at the Pijili and Santiago moved on to another target, Yawi, where and how the company has leveraged It has been reassuring to receive a uni- mine life, producing over 200,000 oz/y projects. drilling equipment has been mobilized to its relationships in Mongolia? fied pro-mining message from both and employing almost 500 employees On the ground at our three projects, we site for the scout drilling on the first of Haji Ion Energy is a private company incor- political parties with the 2020 election when in production. We will be focused on have been working on soil sampling, chip the epithermal targets. The plan is to drill porated in 2017 and has been engaged coming up in June. The government the advancement of Loma Larga in 2020, sampling, trenching and reconnaissance three to four holes of between 350m and in the business of seeking and identify- understands that mining is a major con- with the goal of commencing construction on all the identified geophysical targets, 500m in length on each of the identified ing lithium assets in Asia. Ion Energy was tributor to the GDP and pays the vast CEO in 2021. We also hold 4 greenfield explora- with the view of ranking them ahead of targets. looking at lithium assets in Mongolia and majority of taxes in the country. We have tion projects in Ecuador. drilling. ION ENERGY was seeking a licence. It took some time not seen any drawbacks and we have a From an engineering and development What is Aurania Resources doing for for the licence to come to tender and we positive outlook for the mining climate in How do you view Ecuador as a mining perspective, we have updated the exist- the environment and the communities only won the licence in March 2019. Mongolia. jurisdiction? ing high-grade resource at Curipamba, in the vicinity that the company works Ecuador is an emerging mining jurisdiction increasing the metal grades by approxi- in? Can you provide details of the com- What do you believe is the company’s and the government’s willingness to sup- mately 20%. For the first time, we have We are committed to work with our host pany’s flagship Baavhai-Uul project? strategic advantage moving forward? port the industry is very apparent. Ecua- a measured component to the overall communities and find solutions which will The licence is approximately 81,000 Ion Energy has the advantage that we dor’s mineral potential is vast. I believe it is resource and have also put economics benefit all. To date, we have had more hectares. Ion Energy’s competitive ad- are extremely close to market, the ter- one of the few mining jurisdictions where behind the project through a PEA, which than 1,000 indigenous persons working vantage is the fact that the company’s rain is favorable, the climate is ideal, and “elephants” can be found in greenfield ex- shows a 40% after tax rate of return, a less for the company. In many cases this is the land package sits only 20km away from we are in close proximity to infrastruc- ploration. than two year payback, and approximately first paying wage these people have ever the largest consumer of lithium in the ture. Terrain has a great impact on costs 100,000 oz AuEq production for 15 years. had. We have set up and privately fund- world – China. We are still very much as well as time it takes to production. We What are INV Metals’ short-term objec- ed the Step Forward Foundation which greenfield and have an extensive explo- think we can move quite quickly and aim tives moving forward? What is Adventus’ vision for the future? is implementing health and education ration plan for the next 12 months that to be in production within the next 24 to In addition to our focus on advancing We aim to get to a construction decision initiatives in the communities, especially we will begin executing following the 36 months. We believe that the poten- Loma Larga, we expect to commence an on our existing El Domo resource at Curi- for the young people. We have opened a RTO. We have identified two targets on tial in the lithium market is vast and we initial 2,000m drill program at Tierras Col- pamba in 2022. We expect to be drilling health clinic for five communities. ■ which to focus on, primarily around the would like to become the largest lithium oradas to test the areas where high grade at Curipamba imminently, and Pijili and areas where we initially performed sam- holder in the Asia Pacific region. ■ gold was discovered. ■ Santiago during 2020. ■ pling.

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 74 Industry Explorations Global Business Reports 75 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 GBR • Industry Explorations • MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020

THE BATTERY METAL SUPPLY CHAIN

» We have to look at supply chains and value chains in terms of what is driving the development. Instead of driving development from the resource, it should be driven from the magnet, battery or end product. «

- Janice Zinck, Director – Green Mining Innovation, CanmetMINING, Natural Resources Canada

Image courtesy of First Cobalt EDITORIAL Global Business Reports Industry Explorations EDITORIAL

THE BATTERY METAL SUPPLY CHAIN

rates for EVs, China leads comfortably with 6%, compared allowing China to supply products. Our resource strategies ed in North America, an absence of near-term supply looks North American to 2.6% in Europe and North America, and 2.2% for the rest are not nearly as long term in the Western world as they are set to be rectified by Toronto-based company First Cobalt, of the world. However, adoption rates are less of a cause for in China,” she remarked. which recommissioned its cobalt refinery in Ontario in part- collaboration in the concern than the fact that China currently dictates the supply “Canada is well-positioned to occupy a greater space in the nership with Glencore in early 2019. Glencore said in August dynamics for the majority of metals used in the production of value chain, but we need to be more strategic and invest in that once a definitive feasibility study for a planned expan- EVs and batteries. developing those resources,” added Zinck, commenting that sion is completed, which is expected to happen in early 2020, effort to catch up The fact that Tesla chose Shanghai as the location of its Gi- Canada is rich in mineral resources and has the necessary it would invest another US$40 million into recommissioning gafactory, built the plant in less than one year in 2019, and expertise, but needs to accelerate the pace at which it is and expanding the refinery, located 600 km from the U.S.- with China quickly raised an additional US$1.6 billion (through a con- advancing projects. “We have to look at supply-chains and Canada border. “The intention is to complete the feasibility sortium of state-backed Chinese lenders) in December for a value-chains in terms of what is driving the development. In- study by Q1 2020 and recommission the plant under its cur- plant expansion, is emblematic of the speed and assertive- stead of driving development from the resource, it should be rent 12 tonnes per day (mt/d) throughput rate in late 2020. ness being shown by the Chinese in the battery race. The driven from the magnet, battery or end product.” Thereafter, we expect to permit and commission a 55 mt/d new plant is expected to double production capacity of Tes- expansion, which will take approximately 12 months,” elabo- la's Model 3 sedan, will be the company's first manufactur- rated Trent Mell, president and CEO of First Cobalt. Although the United States and China announced a pre- ing site outside the US, and China’s first vehicle plant wholly Breaking the DRC/China stranglehold on cobalt liminary “phase one” trade agreement in December 2019, owned by a foreign company. the future of their economic relationship remains uncertain. On January 9, 2020, Prime Minister Trudeau and President Currently, 72% of cobalt mine supply is controlled by the DRC Lithium’s supply and demand outlook A defining feature of the Trump administration’s economic Trump announced the Canada-US Joint Action Plan on and 60% of refinery supply is Chinese. At the Pilot Law LLP policies has been its embrace of international trade protec- Critical Minerals Collaboration had been finalized, aimed round table held in October titled “Trade and other Interna- “Despite volatility, the market for lithium is robust,” assessed tion, and while the United States holds the upper hand in to advance the countries’ mutual interest in securing supply tional Law Issues Which May Impact Your Mining Business,” Paul Fornazzari, partner at Fasken, observing that there is most markets, China’s dominance in the battery metals sup- chains. Canada is already a leading producer of nickel and discussion centered around how the North American auto- now clear and likely irreversible growth in demand for lithium ply chain is indisputable. Electric vehicle (EV) sales grew to cobalt and has another 70 advanced projects for both me- motive industry is exposed to battery supply squeezes by as car companies, spurred by the success of Tesla, undergo a more than two million units globally in 2018: an increase of tals, according to a July 2019 presentation by Hilary Morgan, way of political instability in the DRC or Chinese trade tactics. process of completely switching production to EVs or bring- 63% on a year-on-year basis. Comparing the 2019 adoption director of international affairs at Natural Resources Canada. Robin Goad, president and CEO of Fortune Minerals, echoed ing out new electric car lines. “If production of EVs rises to just Additionally, Canada is home to 16 advanced rare earths the conference’s mood when he stated: “Having control over 30% of total vehicle production, there is not enough lithium projects and 17 advanced and near-stage lithium projects. the critical minerals used in the batteries and the other parts production to meet the demand created by this growth,” he “Governments are now recognizing the need to create criti- needed to make EVs, means [China] can also influence where added, noting that only a relatively small amount of lithium is cal minerals supply chains outside of China,” reflected Don new factories will be built to produce these vehicles.” used in each battery and so it is unlikely to run the risk of be- Bubar, president and CEO of Avalon Advanced Materials Through investments in infrastructure and business interests ing “engineered down” in the various battery formulations. and one of the leading North American voices in the field of from state-owned enterprises, China has accrued consider- The production of lithium comes from two main sources – ex- rare metals and critical minerals. “There is more urgency for able influence over the vast Central African nation. Although tracting lithium concentrate from brine waters, a complicated other countries to develop their own critical minerals supply efforts are being made to diversify production, the DRC’s but low-cost process, and hard rock lithium, which is easier to chains due to the risk of China restricting supply,” he added, role within the cobalt supply chain is expected to increase explore, mine and process, but often comes at high produc- continuing: “We have all of these minerals in the ground in to 75% of global mine supply in 2020 rather than decrease. tion costs. The lithium triangle that straddles Chile, Argentina Canada, and the time has come for us to take advantage of However, Goad highlighted the growing importance of trans- and Bolivia possesses 54% of global lithium brine resources, the opportunity by extracting these minerals and creating parent cobalt supply from a consumer standpoint: “Ethical whereas Australia possesses the “mother of hard-rock lithium the value-added in Canada.” raw material procurement and supply chain transparency are deposits” – the Greenbushes deposit. Trevor Walker, presi- Mark Warner, lawyer at Pilot Law LLP, suggested that Canada also important to global manufacturers that do not want their dent and CEO of Frontier Lithium, stated that the company’s has the potential to be one of the countries to benefit from brands tainted by materials that are associated with conflict, PAK asset in the Electric Avenue district of Northern Ontario the current trade war by becoming a reliable alternative sup- child labor, dangerous working conditions or environmental contains drill intersections with grades and thicknesses com- plier for the United States, but such a context depends on the degradation.” parable to the Greenbushes deposit. “Electric Avenue is the Canadian mining industry actually being able to get resour- From 2016 to 2018, the price of cobalt more than doubled, premier hard rock lithium jurisdiction in North America. It ces out of the ground. “The trade war has shown the need for climbing above US$42/lb in early 2018 before increased arti- boasts the highest grade and the lowest impurity resources a counter point to China. The demand and need is definitely sanal supply from the DRC caused the price to drop and pla- on the continent,” he said. there, but the question is if there is political will from North teau to its five-year median of around US$16/lb. However, the Walker went on to mention that establishing a stable and se- America, including Canada, to take advantage of this oppor- fundamentals for cobalt are robust with demand accelerating cure supply chain in the West will not happen overnight and tunity,” Warner pointed out, noting that Canada has seen a incrementally due to its use in the cathodes of lithium-ion should be approached in steps. For Frontier Lithium, the first significant amount of mining investment coming from China, batteries needed for automotive electrification, in station- initial market to target will be the industrial market, supplying which could create challenges in the development of a North ary storage cells to make electricity use more efficient and clean high-grade concentrate for the large glass manufactur- American supply chain. in portable electronic devices. Frank J. Basa, president and ers, as the use of lithiated glass in mobile phone screens has Janice Zinck, director of green mining innovation at Canmet- CEO of Canada Cobalt Works, gave his take on cobalt’s out- become widespread. “If you have the opportunity to build a MINING, part of Natural Resources Canada, commented that look: “This price move [from October 2016 to January 2018] mine, first producing concentrate for the industrial market is China’s dominance in the critical mineral space started 30 is generally regarded as the beginning of a mega trend with how to build a reliable feedstock that allows access to down- years ago and their long-term strategy allowed them to over- stable supplies forecast to fall short for several years.” stream,” he added, noting the convenience of the OEMs take competitors: “At that time, everybody was comfortable While a number of high-potential cobalt projects are locat- present in Detroit and Southern Ontario. 82>>

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 78 Industry Explorations Global Business Reports 79 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 EXPERT OPINION Global Business Reports Industry Explorations INTERVIEW

The Lithium Ion Battery Don Megafactory Supply Chain BIO Robert Colbourn holds the position of Bubar Manager – Benchmark Membership at - a Global Perspective Benchmark Mineral Intelligence, a London based price reporting agency and market intelligence firm covering the lithium ion battery supply chain. Robert’s primary role is editor of Benchmark Minerals’ online content and analysis, and quarterly review President & CEO Robert Colbourn magazine. AVALON ADVANCED MATERIALS Manager – Benchmark Membership

BENCHMARK MINERAL INTELLIGENCE Benchmark Mineral Intelligence (Benchmark Minerals) is the world’s leading IOSCO-regulated price reporting agency Can you introduce Avalon Advanced ect remains inactive while we await new Avalon was named among Corporate (PRA), proprietary data provider, and Materials and describe the company’s market opportunities. Knights’ “future 40 responsible cor- market intelligence publisher for the lithium focus? At Separation Rapids, Avalon has an in- porate leaders in Canada”. To what do The world is undergoing a global energy Batteries are becoming a fundamental ion battery to electric vehicle (EV) supply Avalon Advanced Materials is a min- teresting opportunity to produce a high you attribute to this recognition? storage revolution in which the advent aspect of the 21st century’s economy. chain. Our granular and expert focus on eral development company focused on purity lithium mineral product for the For eight years, we have produced an an- the entire supply chain makes us unique: of electric vehicles (EVs) and the emer- But batteries have complex and global rare metals and critical minerals for use glass and ceramics industry. While ev- nual sustainability report that meets the from lithium and cobalt mining through to gence of energy storage has sparked a supply chains, with a number of raw main clean energy and new technology, eryone recognizes the need for lithium Global Reporting Initiative’s standards, the manufacturing of cathode and anode wave of lithium ion battery megafactory terials required. functional materials, to battery cell and EV such as rare earths, lithium, tantalum, in re-chargeable battery technology, and this attracted the attention of Cor- construction. production. cesium, indium and tin. We were one of few investors are aware that lithium is porate Knights. A megafactory is a battery factory ca- the early movers in the space as we saw often the key ingredient in innovative, Avalon is a leader among junior miners pable of producing 1 gigawatt hours Feeding the lithium ion battery a bright future for these elements when new high-strength glass and ceramic in adopting best practices to reduce its (GWh) or more of battery cells per year. revolution the latter producing 4% of the world’s new technologies started to create new products, such as display screens. For environmental footprint, prevent water Right now, each GWh equates to ap- lithium chemical supply and zero re- demand. Governments are now recog- these applications, the high purity (but contamination and engage with local proximately 15,000-16,000 electric ve- The lithium ion battery supply chain is fined cobalt supply. nizing the need to create critical miner- very rare) lithium mineral petalite is often communities. Acting sustainably creates hicles (EV) with an average battery pack developing at different rates globally Once these raw materials have been als supply chains outside of China. We preferred. Separation Rapids represents company value by reducing risk for all size. The number of megafactories in and different points of the supply chain made suitable for use in batteries, the have all of these minerals in the ground one of the few significant potential new stakeholders and by optimizing oppor- production and planned for production are at different stages of development. next stage of the supply chain is anode in Canada and the time has come for us sources of supply in the world. tunities for individual and community continues to increase. Without battery Right now, China is dominating the lith- and cathode material production for to take advantage of the opportunity by prosperity. Many critical minerals are vi- megafactories, the EV industry would ium ion battery supply chain. The first use in battery cells. This is another step extracting these minerals and creating Can you explain the development tal enablers of clean technology, such as not be capable of challenging and dis- stage of the supply chain is raw material dominated by China, with the country the value-added in Canada. model Avalon is looking at for East renewable energy sources and energy- placing the auto industry’s internal extraction. Some of the key battery raw accounting for 74% of cathode capacity Kemptville? efficient automobiles. As a mineral de- combustion engine. materials include lithium, cobalt, nickel and 82% of anode capacity globally in What are the main projects Avalon is At East Kemptville in Nova Scotia, Avalon velopment company focused on critical Since Tesla announced its first Gigafac- and graphite. Once extracted, these 2019, whereas the US had no capacity, focusing on? is looking at the potential to efficiently minerals, it is a strategic advantage for tory in 2014, Benchmark Mineral Intel- raw materials need to be processed into according to Benchmark Minerals Cath- We have five critical minerals projects extract tin from previously-mined waste us to integrate principles of sustainabil- ligence has been tracking the global de- material suitable for batteries. Each one ode and Anode Market Assessments. in Canada, including three in Ontario: materials using new low-impact ore-sort- ity into our corporate strategy in order to velopment of battery megafactories. At will follow a different processing route Finally, looking at battery cell produc- the Separation Rapids Lithium, Lilypad ing technology. The model also involves align with cleantech customers, who au- that time, Elson Musk said of his Nevada depending on many different factors, tion where these supply chains all meet, Cesium-Tantalum-Lithium and War- some select mining of higher grade fresh dit their supply chains to ensure they are battery factory plans: “it’s not just go- following a nuanced and complicated China had 83 megafactories in the pipe- ren Township Anorthosite projects are ore that will be used to create a clean tail- sustainably produced. ing to be the biggest lithium ion battery process. line with 1,526 GWh of capacity where- all in Northern Ontario. Avalon’s other ing cover for the stacked tailings and fully factory in the world, but it will actually Approximately half of the world’s lith- as the USA has 7 megafactories in the projects include the Nechalacho Rare remediate the long term acid mine drain- How can governments be proactive be bigger than the sum of all lithium ion ium supply is initially extracted from pipeline with 206 GWh of capacity for Earths project in the Northwest Territo- age environmental liability at the site. towards establishing critical minerals factories in the world.” hard rock deposits in Australia, howev- 2029. ries and the East Kemptville Tin-Indium What potential do you see in the Will supply chains? This sparked a worldwide battery arms er, the bulk of this is then sent to China The 2010s saw China develop its lithium project in Nova Scotia, as well as a new Scarlett REE project in southern Illinois? In 2019, the United States and Canada race. for processing. In 2019, Benchmark Min- ion battery supply chain, from raw ma- project, Will Scarlett, in the US looking Will Scarlett represents an exciting op- agreed to collaborate in the effort to es- Five years ago, in Q1 2015, there were erals estimates China will produce 60% terial supply to battery production. This at extracting rare earths from coal mine portunity to participate in implemen- tablish domestic supply chains. I believe only three megafactories planned for of the world’s lithium chemical supply. has been a strategic goal of the Chinese wastes. tation of an innovative, new extraction that the area where the government can development. As at the end of Decem- Cobalt is another interesting case; the government as it built out its electric technology to recover rare earths from be most helpful is in facilitating the R&D ber 2019 there were 115 plants in the Democratic Republic of the Congo pro- vehicle industry. The rest of the world What are your priorities in Ontario? coal mine wastes. We see the potential to of the process technology needed to pipeline according to the Benchmark duces over two thirds of the world’s co- has started to take note, with initiatives Separation Rapids Lithium remains our create a new supply chain in the United extract critical minerals and establishing Minerals Lithium Ion Battery Megafac- balt, but refined cobalt supply is again and political consensus developing in top priority in Ontario, although we are States by taking advantage of the fact demonstration scale pilot plant facilities tory Assessment. If all of these mega- dominated by China, controlling nearly Europe and the USA. The 2020s will in the process of re-activating our Lily- that there are many coal mines that have to support new producers’ development factories are built, by 2029 they would 70% of production. The contrast be- see the rest of the world attempting to pad Cesium-Tantalum-Lithium project. elevated concentrations of rare earths in plans. ■ have a total capacity of over 2,220 GWh. tween China and the US is stark, with catch up. ■ The Warren Township Anorthosite proj- wastes and acid mine drainage.

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On the lithium brine side, Toronto-based Neo Lithium is de- the Mongolian authorities are supporting mining projects How did the Cobalt 27 acquisition lead to the creation of Conic Metals? veloping its Tres Quebradas project in the province of Cata- that can provide a cleaner source of energy, according to The largest shareholder of Cobalt 27 was a Swiss investment group, Pala Invest- marca, Northern Argentina, having raised C$90 million in Ali Haji, CEO: “Ion Energy has received a significant amount ments. In April 2019, they approached us with an unsolicited offer for the company. under four years, US$40 million of which has been invested of government support as lithium is deemed a green metal. Discussions with shareholders led to a revised and improved offer for two of Cobalt in the property, according to Carlos Vicens, Neo Lithium’s Ulaanbaatar is not only the coldest city in the world, but also 27’s assets and the transaction was concluded on 25 October 2019. That left us with CFO. Acknowledging that the investment climate has been the most polluted as it sits in a valley powered and heated a joint venture interest in Ramu, our nickel-cobalt project in Papua New Guinea, challenging for juniors regardless of metal value, Vicens ex- by coal.” and a collection of 11 other royalties, including Dumont, a nickel-cobalt project in plained that lithium investors tend to come from a different Echoing the thoughts of Carlos Vicens, Haji mentioned the Québec, and the Turnagain project in British Columbia, as well as other royalties in pool to precious metals specialists: “Financial markets are not attractiveness of strategic investment in the lithium space: Canada and Australia. We created Conic Metals Corp., a new public company to buoyant at the moment, however lithium is a strategic asset, “We have been speaking to the Japanese, Koreans and Ger- hold those assets, and started trading on the TSX Venture Exchange in November which sets it apart. Instead of attracting typical corporate fi- mans as they are the drivers behind EVs and the demand for 2019. Conic is an acronym for cobalt and nickel together, so that there can be no nancing such as bank financing and equity capital markets, lithium in the future. Obtaining strategic capital at the early confusion in the company’s focus. the asset is interesting for a partner with a strategic vision for stages of the project brings in partners that want to be with the resource. For example, a battery producer, a cathode- us through the course of the project lifetime.” What interest does Conic have in the Ramu mine in Papua New Guinea? material maker or an OEM.” Justin We have an 8.56% joint venture interest in the Ramu nickel-cobalt operation. It is While creating a North American battery metals supply run by the Metallurgical Corporation of China (MCC), which is a subsidiary of the chain would benefit governments in the region, exploration Nickel: the electric base metal China Metallurgical Group Corporation, a Chinese state-owned enterprise publicly companies these days can rarely afford to pick and choose Cochrane listed in Hong Kong and Singapore. MCC is a global construction and engineering where investment dollars come from in the interests of politi- Nickel was the best performing base metal in 2019, spurred firm and has been operating the mine since 2012. Based on resources, Ramu has a cians. Therefore, proximity to the Chinese market has clear on by the announcement from the Indonesian government in 30-year mine life and is one of the top 10 nickel-cobalt projects in the world. Nickel advantages, and strategic Chinese investment often comes September that a ban on the export of raw nickel ore would is one of the few base metal commodities that has performed exceptionally well with a more long-term vision that North American money has be brought forward from 2022 to January 2020. While the over the last six months and Ramu continues to generate significant free cash flow. lacked. With this in mind, Ion Energy’s Baavhai-Uul project bulk of the nickel market is currently driven by stainless-steel in Mongolia is ideally located a mere 20 km away from the demand, it is estimated that as much as 50% of the nickel Which of Conic’s royalties do you see particular potential in? largest consumer of lithium in the world – China. Additionally, market could serve EV and energy storage applications mov- The biggest royalty Conic received is from Dumont, a construction-ready, fully per- President & CEO ing forward, which would result in US$70 billion having to be mitted, nickel-cobalt mine in Québec. It is a joint venture between Waterton and invested in new nickel mines over the next decade, revealed CONIC METALS CORP. RNC Minerals. The second significant royalty is the Turnagain nickel-cobalt project Justin Cochrane, president and CEO of Conic Metals Corp in British Columbia, which is owned by Giga Metals. Companies such as Tesla are (Conic). looking for ethical and clean sources of nickel and cobalt, and Dumont and Turn- Conic, the spin out of Cobalt 27 Capital Corp that was ac- again are perfect projects for that. In addition, Conic has royalties in Australia – the quired by Pala Investments in October 2019, owns an 8.56% Flemington project, owned by Australian Mines, and Nyngan, a nickel-cobalt-scan- joint venture interest in the Ramu project in Papua New Guin- dium project, owned by Scandium International Mining. ea, run by the Metallurgical Corporation of China (MCC), a subsidiary of the China Metallurgical Group Corporation, a Why do you think Chinese investors seem to have a more long-term vision than Chinese state-owned enterprise publicly listed in Hong Kong their North American counterparts? and Singapore. Speaking of the difference between Chinese China has been investing in projects such as Ramu, as well as projects in Indonesia and Western investors, Cochrane observed: “The Chinese go » and the Philippines, but does not have a big stake in Class 1 nickel projects – the into countries long term and help communities by providing higher quality nickel that is required for batteries. The Chinese go into countries infrastructure and other services. At Cobalt 27, we found that The Chinese go into countries long-term and help communities by providing infrastructure and other services. the investment horizon was very short for many of our inves- At Cobalt 27 we found that the investment horizon was very short for many of our long-term and help communities tors, and this trend can be seen more and more in the mining investors, and this trend can be seen more and more in the mining sector today. sector today.” by providing infrastructure and Conic regards having MCC as a partner in Ramu as a significant benefit. Not only Ontario is also famous for its nickel production, with majors other services. At Cobalt 27 we has MCC done a tremendous job building and operating Ramu, China is the largest Vale and Glencore dominating supply from the Sudbury Ba- found that the investment horizon foreign investor in Papua New Guinea by a wide margin and MCC continues to in- sin, home of the Big Nickel – a landmark on the bucket list of was very short for many of our vest in local infrastructure and community projects to benefit the local communities every Northern Ontario-enthusiast. Jason Jessup, CEO and around the Ramu operation. investors, and this trend can be director of private Sudbury-based junior Magna Mining, not- seen more and more in the mining ed that when his company acquired its flagship Shakespeare Where would you like to see Conic Metals by the end of 2020? project in 2017, nickel was C$4/lb, and the price has almost sector today. By the end of 2020, we will ensure investors are significantly better educated on doubled since. Expanding on supply and demand dynamics the quality and value of our Ramu joint venture interest and royalty portfolio. At the for the base metal, Jessup remarked: “To make projections same time, Conic will continue to work with our Chinese partners to evaluate op- on the price it is important to look at the stock piles. They « portunities to bring forward some of the Ramu cash flow directly into the company, have been coming down steadily in the past two years, and and/or to repay our existing JV debt. Once that debt is repaid, the Company stake we are at a point where we can expect the price will begin to in Ramu automatically increases to 11.3%. In addition, Conic will continue search- reflect that,” further pointing to the impact supply issues from ing for new royalty, streaming and other investment opportunities, with a particular Indonesia and the Philippines will have moving into 2020. ■ focus on nickel and cobalt. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 82 Industry Explorations Global Business Reports 83 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

Adriaan Trevor Robin Trent Bakker Walker Goad Mell

President & CEO President & CEO President & CEO FRONTIER LITHIUM FORTUNE MINERALS FIRST COBALT President & CEO VANADIUMCORP

Can you introduce VanadiumCorp and issue, do not degrade and can deep 1.08%. The Lac Dore vanadium project explain the company’s focus? cycle repeatedly without any degrada- compares favorably to many vanadium VanadiumCorp Resource Inc. is an inte- tion or thermal runaway. The batteries deposits currently in production in other grated company developing an exclusive also have the unique ability to charge countries. The 2019 drill program tar- supply chain for next generation vana- and discharge power at different rates as geted the company’s Lac Doré vanadium dium redox flow batteries (VRFB). The vanadium is both the anolyte and catho- prospect where historical drilling and company has jointly developed process lyte of the battery, which means you have surface channel sampling conducted be- technology that mitigates the cost and a full separation of power and energy. tween 1958 and 2013 have revealed over Can you comment on the denominated Can you provide an overview of For- What were the circumstances sur- carbon footprint of vanadium which is With VEPT, vanadium batteries would 2 km long by 200 m wide and open at “Electric Avenue” – where Frontier tune Minerals and the NICO project? rounding the creation of First Cobalt? successfully tested on many global feed- represent a truly sustainable energy stor- depth corridor hosting multiple zones of Lithium is the largest land holder? Fortune Minerals is a Toronto Stock Ex- First Cobalt was established in March 2017 stocks. The company’s vanadium rich ti- age technology many times cheaper than vanadium-bearing vanadiferous(titano) Electric Avenue is the premier hard rock change listed mining company with a as a direct response to the electric vehicle tanomagnetite resource base is located current energy sources. magnetite “VTM” mineralization. The lithium jurisdiction in North America. It focus on producing critical materials for (EV) revolution. Within the first year and in Québec, and the first VRFB production completed 2019 drill program was the boasts the highest grade and the lowest new technologies and the growing green a half, we amalgamated four companies facility is located in Karlsruhe, Germany. What is XRG and what makes it differ- largest conducted on the project since impurity resources on the continent. It was economy. Having all of its assets in North with extensive property and assets in ent than competing technologies? 1970. Assay results will target a resource discovered by the Ontario government in America makes Fortune a future reliable both Canada and the United States. As Can you elaborate on VanadiumCorp- XRG® is next generation VRFB energy statement and technical report in 2020. the nineties and there has been minimal producer in metal markets otherwise a result, First Cobalt today has three key Electrochem Processing Technology storage technology developed with exploration. Recently, we tied up a 26,500 dominated by geographic concentration assets; the Ontario Cobalt Camp, a more (VEPT)? VanadiumCorp’s wholly owned GmbH How do you see the fundamentals of hectare land package of the most prospec- of supply in counties with political risks. advanced asset in Idaho called the Iron In 2016, after a decade of vanadium re- subsidiary in Germany. What sets XRG® vanadium moving forward? tive grounds on the “Avenue”. The land For tune’s primar y asset is its wholly-owned Creek, and the only permitted primary co- source development in Québec, Vanadi- apart from competing technology is Our company is focused on the bright fu- package includes the PAK deposit, the ini- and vertically-integrated NICO Cobalt- balt refinery in North America capable of umCorp chose to explore innovative new components are both manufactured ture vanadium in energy storage. In flow tial discovery, and the Spark deposit, the Gold-Bismuth-Copper project, comprised producing material utilized in Li-ion bat- approaches for processing to address the sustainably and are 100% reusable and batteries, vanadium can be reused forev- most recent discovery and other showings. of a planned mine and a concentrator teries. largest industry challenges and the glob- recyclable. XRG® is uniquely powered er, as it is both the anolyte and catholyte We have invested over C$1 million in the plant in the Northwest Territories, and a al shortage of battery grade vanadium. by its own supply chain and integrates in liquid flow battery architecture. This past year developing Spark. There are drill refinery in Southern Canada. NICO was an Can you give insights into First Cobalt’s VanadiumCorp partnered with Electro- the leading improvements in flow bat- is unique in the entire energy industry, intersections with grades and thicknesses in-house discovery from 1996 and is now Iron Creek deposit in Idaho and project chem Technologies & Materials and de- tery architecture. With the lowest cost which is why we have developed our own comparable to the “mother of hard-rock at the development stage. The Company in Ontario? veloped a chemical process method ap- and carbon footprint, XRG® intends to version of the vanadium redox flow bat- lithium deposits”, the Greenbushes de- has delineated a reserve, completed engi- Iron Creek is a primary cobalt deposit in plicable for vanadium, iron and titanium. revolutionize energy projects, renew- tery “VRFB” with industry veterans and posit in Australia. neering reports and feasibility studies, test Idaho and is our most advanced explora- The core benefit VEPT is that it enables able energy and entire power grids. A strategic plans to commercially produce mined the deposit, validated the process tion project. The Idaho Cobalt Belt is the efficient and green recovery of vanadium partnership focused model that utilizes VRFBs in the near term. Why is it important to establish a do- technology with pilot plant tests, and has only place, outside of Morocco, where for infinite use in vanadium batteries. the strength of industry leading com- mestic supply chain of critical miner- completed the environmental assessment you can find significantly sized (large) panies allows further product evolution What would you like to achieve with als? to build the facilities in the Northwest Ter- primary cobalt deposits. We have drilled What are the characteristics and ben- and cost-effective manufacturing. The VanadiumCorp in the next two years? We are very mindful of the need to devel- ritories. We are currently optimizing the cobalt and copper mineralization at Iron efits of vanadium redox flow batteries acquired facility for planned production We hope to reach commercial produc- op localized supply chains and work hard project while seeking a strategic partner Creek over an almost 1 km strike length (VRFBs)? is located in Rastatt, Germany and news tion of VRFBs directly or through contract to make sure that we keep control of a stra- to secure the project financing. and up to 300m down-dip depth. Miner- Vanadium represents approximately 80% is pending. manufacturing within the next two years. tegic resource. Currently, all arrows point alization is contained along a metasedi- of vanadium redox flow batteries (VRFB) VanadiumCorp’s key focus is vanadium to China with regard to the conversion of Do you have a final message for the au- mentary rock horizon and is considered and the electrolyte within the VRFB is What are the latest updates from the for energy storage, and XRG® next gen- critical elements such as cobalt and lithi- dience of Global Business Reports? stratabound lending a high confidence 100% reusable and lasts forever. VRFBs Lac Doré project in Québec? eration VRFB energy storage techno- um. We think it is a flawed model and does The world requires technology metals and in cobalt and copper continuity. We have are a mature technology capable of The wholly owned Lac Dore vanadium logy vastly supersedes anything that has not serve well future EV markets of EU and we can expect strong demand for metals published an ore resource in 2018 and will storing an unlimited amount of energy. project encompasses a high-quality va- come before it. We are confident this will N.A. Washington and Ottawa are working like cobalt, particularly from countries soon provide an update showing the re- VRFBs do not generate heat, they absorb nadium bearing titaniferous magnetite revolutionize the cost and sustainable na- very closely to make sure that there is more with reliable production and supply chain source is of reasonable size and is open intermittent renewable energy without deposit with a concentrate grade of ture of energy storage moving forward. ■ balance between the East and the West. ■ transparency. ■ to warrant continued exploration there. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 84 Industry Explorations Global Business Reports 85 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 GBR • Industry Explorations • MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020

ENGINEERING & CONSULTING

» The overall environmental awareness of individuals, who may also be stakeholders and investors in mining companies, is pressuring the industry to become aware of these issues. Sustainable technologies are available and there is more interest from mining companies. That being said, acting green can be difficult if a company does not have the right people to address these issues and manufacturers to provide equipment. «

- Eric Lannegrace, Managing Director & Founder, minera Solutions

Image courtesy of Teranga Gold EDITORIAL Global Business Reports Industry Explorations EDITORIAL

EPCM & CONSULTING Why is the service sector taking the M&A route instead of safely isolated with the push of one but- urged companies not to underestimate quiring companies to understand, quan- growing organically? “Over the last 12 months, the market has ton,” explained Visser. the value and need of doing test work, tify and mitigate water impacts associat- consolidated and there appears to be a decline with respect to In the consulting space, world-leading as insufficient metallurgical work in the ed with mining, Pouw gave the example the execution of larger projects,” explained Justin Taylor, pres- environmental and sustainability adviso- study phase can lead to costly impacts of a change to the federal Metal and Growth through ident, CEO and director of Toronto-based engineering firm ry group ERM (Environmental Resources later on in the project lifecycle. Diamond Mining Effluent Regulations Halyard, which has noticed an emphasis on smaller projects, Management) acquired mining consul- coming into effect in 2021, that will lower consolidation sustaining capital and brownfield upgrades. “The big play- tancy CSA Global in July 2019. “Both limits on some metals and impose a new ers, who historically have tended to focus on large projects, companies were looking to grow and di- Water management limit on un-ionized ammonia for effluent have been trying to get back into the smaller projects seg- versify their services,” said Stan Wholley, discharges at all mines in Canada. ment as there is currently a dearth of multi-year project execu- president of the Americas at CSA Global, “I have seen the mining sector’s views “My advice to project developers is to tion work,” he added, noting that a significant amount of the who mentioned that the synergies and on water change a lot in a relatively short look at, and plan, water management available project work is currently focused on upgrading and shared culture between the two organi- period of time,” observed Kristin Pouw, early on. This will give you the best changing facilities, rather than building new ones. zations made the merger seamless. principal consultant and water manage- chance of avoiding risks and successfully In April 2019, Australian EPCM giant WorleyParsons an- “CSA Global was undertaking more ment specialist at SRK Consulting, not- tackling issues,” suggested Pouw, high- Consolidation in 2019 was not only confined to the precious nounced the completion of the US$3.2 billion acquisition of study work as we transitioned but had ing that today there is a better appre- lighting the benefits of looking at water metals producers, as a number of engineering companies and Jacobs ECR (Energy, Chemicals and Resources) division, re- to outsource services, such as environ- ciation of the resource, as both a liability management at an integration level – consultancies joined forces to enhance their product offerings branding to “Worley” in the wake of the transaction. “This mental, social license and permitting. and an asset. “Water management is combining water, waste, and mining. “If to a market increasingly looking to trim down its supplier base merger is about more than capacity and capability. It’s about At the same time, ERM had recognized becoming an important consideration you do not have the necessary internal as a focus on streamlined operations sharpened. The industry opportunity. The opportunity to become the partner of choice a shift in the mining industry where infor investors,” she added, expanding: capabilities, seek expert help to develop preference for engineering companies with the capabilities to for our customers, the employer of choice for our people and vestors were demanding stronger re- “Evidence of this increase in attention is a water management strategy appropri- design and manage projects from cradle to grave has been to deliver enhanced returns for our shareholders,” said CEO quirements for environmental, safety that frameworks for disclosing informa- ate to the site’s climate, geology, geog- steadily growing during the downturn, with miners preferring Andrew Wood. and governance. Reflecting this change, tion on water-related risks and financial raphy and regulatory framework. This to outsource to contractors rather than take on the risk of long- One of the Ontario-based engineering companies to have ERM was searching for a group with an and social penalties are being devel- will help you to avoid poor decisions term salaries. Perhaps the highest profile example of this was grown through acquisitions in 2019 was Cementation, which excellent reputation in the mining mar- oped, and companies are developing that initially seemed appealing from an Barrick’s decision, announced in November 2019, to switch its acquired California-based materials handling company Terra ket that could assist them in growing in and implementing internal standards for economic perspective and to ensure that Hemlo operation to a contract mining model, laying off many Nova Technologies (TNT) in March 2019, having previously ac- this area,” explained Wholley, who men- water management planning.” your project goals remain deliverable,” of its ageing workforce in the process. quired Montréal-based company Merit Consultants in January tioned that 2019 was CSA Global’s best On the trend of regulatory changes re- she advised. 93>> 2016. Roy Slack, director of Cementation Americas, expanded year to date, pointing to increasing de- on the reasoning behind the acquisition: “As the mining indus- mand for hydrogeology services as one try is starting to realize that solutions must be found with re- of the company’s global growth drivers. gard to tailings, the Terra Nova Technologies acquisition could “Access to water is always an issue and not have come at a better time,” he stated, commenting that it is getting more scrutiny as it becomes TNT has been involved in many projects where the safe han- a scarcer resource globally in light of dling of tailings was a focus. “We as an industry need to find a people’s fears about climate change,” Is your mine solution and I believe that Terra Nova Technologies may be a he concluded. big player within this space,” he continued. “We feel the brand of mining is at a tip- design based on In recent years Cementation has worked on some of the stand- ping point. It is fighting an ambition to out mining projects in Ontario, including the shaft design- be seen as attractive to its customers, sound geology? build for Glencore’s Onaping Depth project near Sudbury, the investors, employees and wider society design and construction on new headframes and refurbish- – while facing the reality of tailings fail- ment of two shafts for Compass Minerals at its Goderich Salt ures, fatalities, and sometimes question- Mine, and the shaft extension at Alamos Gold’s Young David- able practices, or jurisdictions that put .com son mine. “It is a design-build project and a very unique de- profit before people,” reflected Louise sign utilizing a large diameter borehole as a production shaft,” Pearce, global mining lead at ERM, who Slack said of the Young Davidson contract. spoke of the “mining trust gap” – a grow- Another Sudbury-based engineering consulting company to ing divide between what companies do have leveraged its business partnerships to achieve growth is and what they say, and the perception Black Rock Engineering, which span out from from Ionic Engi- of how our stakeholders interpret that. neering five years ago but remains part of the Ionic Techno- “The wider the gap, the harder it is to logy Group. “Consulting engineering is different from ma- rebuild trust – especially when it comes chine design and by spinning off we can now focus on our core to ESG related issues,” she added. strengths,” remarked Christina Visser, General Manager, who This sentiment was echoed by David elaborated on her company’s focus on innovation, working in Middleditch, business development collaboration with Ionic Mechatronics as the first certified Safe- manager at Blue Coast Research: “Trust Box integrator. “SafeBox takes the principles of machine safety has been eroded, partly because com- and applies them to industrial applications. In a plant with mul- panies did not successfully deploy capi- tiple crushers and conveyors, we were able to implement the tal from the last boom cycle – invest- technology so that the entire system can be shut down and ment is more cautious.” Middleditch

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As market conditions have slowly improved, have you noticed an uptick in mining activity in Canada? When the mining industry rebounded, we saw big capital projects that were on Pierre hold go online again. We also saw certain groups with high-grade portfolios attaining funding. It seems like grade is what interests investors. The junior companies, Julien even in the gold market, are still experiencing challenges. This is where the opportunity for mid-sized companies comes in. A junior with a medium grade gold deposit, even if it is an advanced project, may be struggling to attain capital. If there is a mid-sized group with cash, they can partner with the junior to move the project forward. The time has come where mid-sized companies and majors are working up the appetite for mergers and acquisitions. Executive Vice President, Americas Region DRA GLOBAL What are some of the main projects Cementation has been involved in in On- tario in the last 12 months? Onaping Depth, a Glencore project near Sudbury, is an iconic project for Cemen- tation. We have been working on the engineering for the project off and on since How was 2019 for DRA Global and what nance and asset optimization. The broad- is well prepared to assist clients in miti- Roy 1998 and we are very pleased that the project has been approved and Cementation were the main milestones achieved by ly specialized business will service this gating these risks. We have developed is Glencore’s shaft design-build contractor for the project. the company? market and secure a pipeline of future world class capabilities in game changing Ontario was where we started in 1998 and, although we have expanded our ser- We began 2019 with the redomiciling of growth opportunities in EMEA (Europe technologies such as sensor based ore Slack vices and carry out work around the world, this area continues to be a strong market our corporate head office to Perth, Aus- Middle-East and Africa) and elsewhere. sorting, coarse particle flotation, direct for us. tralia, following the group restructure The combined company is set to enjoy flotation and dry-stack tailings. As an op- which saw DRA become an Australian strong positions in all key geographies erator of over 30 process plants, we have Has Cementation been involved in the Ring of Fire development to date? company in mid-2018. and markets and create a more diverse also developed and deployed extensive We have also been working with Noront Resources over the years, looking at the un- We also welcomed SENET into the DRA and balanced global portfolio. remote digital analytics and control tech- derground design for their McFauld Lake project in the Ring of Fire. The challenges group in April 2019 and over the past nologies. at the Ring of Fire are not necessarily mining related, but more so infrastructure and months this partnership and specifically Do you believe North American mi- On the design front, we’re making sure we social issues. The question about all-season access is not only about getting to the the addition of SENET’s capabilities and ning is experiencing a period of ex- are part of this transformation and DRA Director mine site, but also accessing a number of remote communities, which can result experience in hydrometallurgy have add- pansion after the downturn? has responded to the growing digital de- CEMENTATION AMERICAS in positive benefits but may also create some challenges for communities as well. ed to DRA’s minerals processing capabili- We’re hearing chatter about miners re- mand through paperless workflows, au- ties. maining committed to supply and capital tomated 2D drawings from intelligent 3D Can you give insight into Cementation’s acquisition of Terra Nova Technolo- In 2019, we expanded our footprint into restraint, prioritising joint ventures and models, 3D Scanning, virtual reality and gies? two new regions. An office in Lima, Peru brownfield investment, and also a strong the implementation of a globally acces- As the mining industry is starting to realize that solutions must be found with regard was established and has quickly ramped demand for cobalt, driven by the rapidly sible design data storage and reporting to tailings, the Terra Nova Technologies acquisition could not have come at a bet- up to approximately 35 employees deliv- growing electric vehicle and battery stor- repository. Our engineering teams have ter time. Terra Nova Technologies is a materials handling company and has been ering services to Tier 1 operators in the age sectors. This will prompt significant been driving innovation across numerous » involved in many projects where safe handling of tailings was the focus. We as an region. A presence was also established investment in growing the mineral sector projects and this remains a focus area for industry need to find a solution and I believe that Terra Nova Technologies may be in Vancouver with great prospects for in the Americas. We anticipate that gold DRA. As we extend our range of a big player within this space. 2020. will remain at the forefront but we’re also New technologies help our clients to Cementation has a global footprint with a focus on design and build. Traditionally We are also excited about the opening of seeing substantial activity in the copper maximise their return on investment but services within the project life we have done more of the project lifecycle than other contractors and the company our new office in Moscow and have com- sector. The battery elements (cobalt, also help us to deliver a superior solu- cycle we believe that there are continues to expand its capabilities, service offerings and footprint through M&A. menced work for Polyus Gold. lithium and graphite) also continue to be tion. We can plan better for DRA and our additional benefits to having quite active and we are ready to provide clients, and anticipate challenges well in one integrated group providing What are Cementation’s objectives and strategy moving forward? Can you comment on the company’s our clients with the support they need. advance. a full range of project services Capital projects in mining and industry in general struggle to meet budget and merger with SENET and its signifi- for mining clients. Better project schedule goals. Cementation is structured and continues to evolve to meet those cance to DRA Global’s growth plans? How are new technologies shaping What is DRA Global’s outlook for 2020 challenges through early contractor involvement and a wider range of integrated With SENET joining DRA Global the con- budget and schedule forecasting the mining industry and how is DRA and what are key areas the company services. Cementation has always been focused on safety and understand that our solidated organization is without ques- Global incorporating them into pro- will be focusing on? through integrated teams, better clients are looking for safe work and engineering that adds value, and a contractor tion the number one provider of services jects? For 2020 and beyond, we are setting identifying and mitigating risk willing to work with them to meet budget and schedule challenges head on. As we to the resources industry across the Afri- The digital transformation of the mining new goals focused on delivering ever on projects, and all the other extend our range of services within the project life cycle we believe that there are can Continent. The merger has combined industry has remained topical for some greater value to our clients and improv- benefits that come from a design- additional benefits to having one integrated group providing a full range of project two exceptionally successful companies time now. Increased adoption of auto- ing our own internal standards for ser- build approach. services for mining clients. Better project budget and schedule forecasting through with complementary skill sets to enhance mation technology by companies across vice delivery excellence as well as risk integrated teams, better identifying and mitigating risk on projects, and all the our offering to clients with interests in the the globe is driving growth of the smart management. Safety and sustainability other benefits that come from a design-build approach. We are a project based African projects market. mining market. Clients are looking for en- will be recurring themes within many of company and have established and work to what we call our best for project phi- This collaboration creates an African and hanced safety, productivity, and sustain- our strategies. Our collective efforts will « losophy, which helps align the efforts of contractor and owner. So our objective is to Middle Eastern powerhouse in mining ability. However, innovation can be risky aim to support our clients in the mining deliver successful projects for our clients and our strategy is through design-build and minerals processing, project delivery and the capital intensive nature of our in- industry and our other sectors at achiev- solutions through a wider span of the project life cycle. ■ (EPC and EPCM) and operations, mainte- dustry requires a unique approach. DRA ing these goals. ■

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<<89 Spinning out from Ionic Engineering was definitely Eric Lannegrace, managing director action, it was at this moment. How could In November 2019, the Global Tailings the right decision as it gave us our own iden- and founder of Minera Solutions, a new a catastrophe on this scale, at a mine site Review drafted a new standard that Christina tity and the ability to do things our own way. Montreal-based consultancy with a net- owned by one of the five biggest mi- would “develop a robust, fit-for-purpose Consulting engineering is different from work of partners to provide a one-stop ning companies in the world, take place international standard for the safer man- Visser machine design and by spinning off we can shop for environmental management so soon after similar failures in 2015 and agement of tailings”. The challenge for now focus on our core strengths. considerations, explained: “The overall 2017? mining companies will now be how to environmental awareness of individuals, Geotechnical engineer, Nadine Miller upgrade existing operations to meet What services does Black Rock offer in who may also be stakeholders and inves- PhD, was appointed a director of Wes- these standards. Westpro Machinery has General Manager each of its core strength areas? tors in mining companies, is pressuring dome Gold Mines in part for her exper- provided mineral processing technology BLACK ROCK ENGINEERING Mechanically, Black Rock prides itself in the industry to become aware of these tise with tailings management. Speaking solutions to the mining industry for over our vast capabilities with mechanical equip- issues. Sustainable technologies are frankly about the tailings issue currently 34 years, and has seen an increased de- ment and infrastructure. Some of our core ca- available and there is more interest from facing the industry, Miller related that few mand for tailings management services Can you give an overview of Black Rock Engineer- pabilities within this area include mine dewatering, mining companies. Acting green can be mining companies have high-level spe- in recent years, according to Niraj Dave, ing and the history of the company? HVAC, slurry pumping and piping, compressor systems, difficult if a company does not have the cialists in-house: “Large companies have Westpro’s regional process technology Black Rock Engineering is an engineering consulting company bulk materials handling, pneumatics and hydraulics, machine right people to address these issues and tailings review boards, with renowned manager: “It is important for mining com- based in Sudbury, Ontario. We have been operating as Black safety systems, and more. We were involved in an interesting manufacturers to provide equipment. If engineering specialists to ensure over- panies, and us as engineers, to make sure Rock for the past five years, but prior to that, we were part dewatering project for Lakeshore Gold. This was an energy a mining company wants sustainable mi- sight; however when mine staff receive that we provide the right solutions which of Ionic Engineering and we remain part of the Ionic Techno- project where we reviewed dewatering systems and how they ning, Minera can help with water, energy these reports do they truly understand can prevent any catastrophic event,” said logy Group. Today, our focus is on engineering consulting for could be made more efficient in terms of energy consump- and energy storage, but it comes down what they are reading?,” she questioned, Dave, acknowledging that global tailings mining, heavy industry and some commercial and municipal tion. to getting the equipment in place.” explaining that for someone to fully com- regulations are becoming stricter and clients. Our strengths are in the mechanical, electrical, auto- Our electrical and automation group is mainly involved in “Mining companies are more cognizant prehend a geotechnical engineering re- the industry is going through a learning mation and energy areas. Black Rock’s dedicated team of en- power distribution, power management, battery storage sys- of environmental needs and are making port, they would need to be a geotechni- process. “Westpro has designed and gineers, designers and project managers boasts decades of tems, process controls, instrumentation and automation. We moves towards looking at more environ- cal engineer (where the working degree manufactured a solution to dewater and experience from new construction to brownfield projects to are currently working on a project where we are implementing mentally friendly operations,” opined is a masters). “The problem is, if every treat tailings before they are sent to the feasibility and reliability studies. battery charging stations for an underground mine. Through Jerry Hanna, president and founder of mine wanted to hire a specialist in tailings tailing ponds,” he added, commenting We started during a downturn in the mining industry, but our implementing battery storage solutions, energy studies, Clearflow Group, which has been sum- dams, they would not be able to do so, as that Westpro can help clients by bring- business has developed significantly over the last few years. backup generator systems, monitoring and targeting, and moned to some of the major mining there are not enough geotechnical engi- ing in tailing technologies at the front energy management services, Black Rock can reduce our cli- disasters across Canada, including the neers. It is an extremely specialized dis- end that can thicken the slurry before it ent’s energy costs while improving their processes. highest profile environmental incident cipline with few graduates,” she added. is filtered. in Canadian mining history in 2013. “Six How can the industry as a whole deal with On the topic of how to deal with tailings, Black Rock also has a strong focus on innovation. What years later, we continue to provide our its tailings issue? Janice Zinck, director of Douglas Morrison, president and CEO of type of technologies do you work with? technology and expertise to this com- Green Mining Innovation at CanmetMIN- the Centre for Excellence in Mining In- Black Rock has successfully implemented automation systems pany,” stated Hanna, whose company ING, Natural Resources Canada (NRCan), novation (CEMI), commented that most in some of the toughest environments. We did the detailed manufacturers the patented Water Lynx suggested that NRCan’s Mining Value of the changes currently being consid- design for Electrale Innovation’s hydraulic air compressor Gel Block Flocculant, designed to assist for Waste program could turn a liability ered address the monitoring of tailings demonstration plant, and we are also working in collaboration clients to achieve a rapid reduction of to- into an opportunity: “After decades of storage facilities and the removal of wa- with Ionic Mechatronics as the first certified SafeBox integra- tal suspended solids for the safe release mining and processing, the metal value ter from behind the containment struc- tor. SafeBox takes the principles of machine safety and applies of water into the environment. of historic tailings is significant and there tures. “While these changes should de- them to industrial applications. In a plant with multiple crush- is an equivalent level of liability. Couple crease the risk of catastrophic failure of ers and conveyors, we were able to implement the technology this with the public concern regarding tailings storage facilities, this is not the so that the entire system can be shut down and safely isolated The critical issue of tailings mine waste, the opportunity to re-ex- only risk posed by mine tailings; fugitive with the push of one button. SafeBox saves our clients’ time amine these wastes as resources is very toxic dust severely impacts both local co- and money while making the work environment safer. On January 25, 2019, two years on from compelling,” remarked Zinck, observing mmunities and neighboring ecologies,” In the past, the mining industry was sometimes slow to adopt the Mariana tragedy in Brazil, disas- that approximately 200 million mt/y of explained Morrison, revealing that CEMI new technology, but that’s been changing in recent years. ter struck again, as the tailings damn at tailings are produced in Canada alone, believes a completely new approach to We’re seeing electric mines, autonomous equipmen, and Vale’s Brumadinho mine in Minas Gerais noting that the grade of some tailings far mine tailings management, one that re- energy initiatives. We’re lucky to be a part of it and we’re burst, killing 293 people and causing exceeds what is mined today, and these moves contaminants from the materials excited about the future. extensive environmental damage in the tailings often contain several critical min- left exposed to the environment, can region. At Exposibram in Belo Horizonte, erals such as tungsten and rare earths. be achieved. “Ensuring that the environ- Can you elaborate on the work Black Rock has done with August 2019, photos of all 293 victims “The Mining Value for Waste program is ment around mining operations will be North American Palladium? were placed around Vale’s stand in the a pan-Canadian effort to develop tools, secure from any long-term risk of expo- Black Rock worked with North American Palladium on an un- exhibition hall. Before the first presenta- technologies, and policies to de-risk and sure to toxic materials will make it much derground fueling station, including the transfer of diesel from tion at the tailings management round accelerate demonstration and full-scale easier to obtain permits and license to surface to the underground space. One of the challenges was table, the lawyer representing the victims waste re-processing/repurposing pro- operate and will see new mines come that we could not allow excessive pressure to build up in the and their families described in detail how jects. The goal is to reduce mine waste into production sooner,” he added, un- fuel pipe, which was accomplished by measuring and limiting the chemical waste that had descended liability and environmental impact, while derlining the importance for the industry the flow. Even though it was a mechanical piping project, the upon the town had killed them. If ever providing local and national value for to demonstrate progress in improving its controls were extremely important. ■ the industry needed to be shocked into Canada.” environmental performance. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 92 Industry Explorations Global Business Reports 93 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations INTERVIEW

How did the purchase of ACA Howe more corporate facing roles. The com- Stan International expand CSA Global’s pany was undertaking more study work Kristin North American presence? as we transitioned but had to outsource CSA Global purchased ACA Howe, a services, such as environmental, social li- Pouw Wholley well-known Canadian consultancy firm, cense and permitting. At the same time, in 2016 and used it as a platform to ex- ERM had recognised a shift in the mining pand our business in North America. We industry where investors were demand- transitioned from a junior exploration- ing stronger requirements for environ- focus to mid-tier production assets-fo- mental, safety and governance. Reflect- President – Americas cus and diversified our services in geolo- ing this change, ERM was searching for a Principal Consultant CSA GLOBAL gy, exploration and mineral resources to group with an excellent reputation in the include technology, data analytics and mining market that could assist them in SRK CONSULTING mine engineering, which has enabled us growing in this area. to reach a broader selection of the mining community. Has the recent strong performance by the Australian mining industry been Have you seen changes in the approach Diamond Mining Effluent Regulations dation of ammonia occurring with their Can you elaborate on the recent ac- reflected in CSA Global’s business? to water-management, both from a there will be lower limits on some metals existing water management infrastruc- quisition of CSA Global by ERM? In terms of financial performance, our business and government perspective? and a new limit on un-ionized ammonia ture. The idea was to promote the right CSA Global was recently acquired by year ending June 30, 2019, has been the Today, there is a better appreciation of for effluent discharges at all mines in biogeochemical conditions so that more ERM (Environmental Resources Manage- best year in our history at CSA Global. the resource as both a liability and an Canada. ammonia would be attenuated by micro- ment) in July 2019, a world-leading en- We have spent a lot of effort making asset. There have also been regulatory Specifically in Ontario, in 2020 there will organisms. vironmental and sustainability advisory this happen – restructuring the business changes requiring companies to under- be some minor changes coming in indus- group. CSA Global was growing rapidly in the period 2013 to 2015, focusing on stand, quantify, and mitigate water im- trial effluent discharge permitting at the What are the main risks and consider- and had expanded our service offering high-quality staff, making sure we have pacts associated with mining. One of Ministry of the Environment, Conserva- ations for a mining operation from a beyond our core strength in geology, an excellent service mix that matches our the drivers for this increase in concern tion and Parks. Generic discharge autho- water management standpoint? mineral resources and mining into hy- client base and looking to expand that is that the impacts of climate change on rizations granted under the Municipal- There are some broads sets of precau- drogeology/hydrology, technology and client base. ■ water resources are becoming evident Industrial Strategy for Abatement will be tions that I would urge decision-makers and observable. This is especially true replaced by site-specific permits. This to consider taking. The first involves en- in places with high water risks. One ex- is part of a shift towards receiver-based suring that the site has an adequate water Have you noticed increased attention model focused on sustainable mining ample is northern Chile, where there permitting as opposed to emitter-based supply, that the water balance considers Louise to ESG issues in the mining industry? practices developed in consultation with are competing agricultural and indus- permitting. a range of climatic conditions, and that Trends around climate change, techno- the industry and stakeholders. Through trial demands for groundwater resources The Ontario Ministry of Energy, Northern discharge requirements are understood. logy transformation and global inter- our service lines, we help our clients and an increasing scarcity of surface wa- Development and Mines is now respon- Evaluate enough different scenarios to be Pearce connectedness, coupled with recent incorporate sustainable practices into ter. Another example is Peru, where the sible for the review and construction in- comfortable there will be sufficient water catastrophic mining disasters, have put their business – at both a site and cor- rapid retreat of tropical glaciers in the spection of new tailings dams as well as to support operations. pressure on the mining and metals eco- porate level. Examples include: Provid- Andes—where much of Peru’s mining oc- the review of dam safety reports and dam Secondly, engage with regulators and system to operate and use resources ing expert support to the G20 Financial curs—is threatening water supplies for safety inspections for existing tailings communities early in the process of de- more efficiently, safely and responsibly. Stability Board’s Task Force on Climate- downstream communities and industries. dams. veloping a water management strategy. Global Mining Lead As a result, the sector is under close scru- related Financial Disclosures (TCFD); Another driver for the increase in water- The current Ontario provincial govern- Make sure that permitting requirements ENVIRONMENTAL RESOURCES tiny from all its stakeholders. We feel the helping clients to understand their water related concern is recent tailings failures ment has also promised stronger en- are well understood and that the commu- MANAGEMENT (ERM) brand of mining is at a tipping point. It’s risks from a catchment-wide perspective; and the increased appreciation for wa- forcement of environmental legislation nity is on board. fighting an ambition to be seen as attrac- contributing to the development of inter- ter’s role in dam failures and dam failure by expanding the use of fines for environ- And thirdly, make sure you have a good tive to its customers, investors, employ- national and local mining benchmarking consequences. mental contraventions. compliance record and that your water ees and wider society - while facing the standards. In terms of business, water management management infrastructure is doing what reality of tailings failures, fatalities, and is becoming an important consideration Which notable water management it was designed, built and permitted to sometimes questionable practices, or ju- How has the acquisition of CSA Global for investors. Evidence of this increase in projects has SRK been involved in re- do. Keep up with inspections, monitor- risdictions that put profit before people. enhanced ERM’s service offering? attention is that frameworks for disclosing cently? ing, and maintenance. Update models as We have labeled this growing divide ‘the The addition of CSA Global’s services, information on water-related risks and fi- One of our current projects has to do required to reflect changes to water man- mining trust gap’. It’s that difference be- including their core geology and opera- nancial and social penalties are being de- with mitigating ammonia at a gold mining agement infrastructure. tween what we do and what we say, and tional performance, provides enhanced veloped, and companies are developing operation in Northern Ontario, where we My advice to project developers is to the perception of how our stakeholders capabilities for us to address our clients’ and implementing internal standards for completed an evaluation of different am- look at and plan water management early interpret that. issues and challenges across the full life water management planning. monia reduction and treatment options. on. This will give you the best chance of cycle of their business. Other recent ac- Our role was to identify the solution or avoiding risks and successfully tackling is- Can you provide examples of innova- quisitions such as The Fifth business, a Can you comment on how the regula- solutions that would provide the great- sues. Also look at water management at tions utilized by ERM that are contrib- change management consultancy and tory framework in Ontario is evolving? est benefit with the lowest implementa- an integration level—combining water, uting to more environmentally-friend- the think tank, SustainAbility have also One change that will come into effect in tion risk. In parallel, we carried out a trial waste, and mining. ■ ly mining practices? significantly enhanced our service offer- 2021, is that under the federal Metal and aimed at enhancing the natural degra- ERM’s ‘The Mine We Want to See’ is a ing to mining clients. ■

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 94 Industry Explorations Global Business Reports 95 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 INTERVIEW Global Business Reports Industry Explorations THOUGHTS

We want customers to contact us so that we can THE BIG FOUR HAVE THEIR SAY ON ESG provide the equipment via the manufacturer Eric that we represent. Minera also works closely with companies that it does not represent. Lannegrace We do not necessarily sell their products, but can facilitate business with them. The The EY Top 10 business risks and opportunities 2020 survey found that the top four considerations relationships we have with service provid- for mining companies are: License to operate (LTO), future of work, digital and data optimization, ers, legal companies, integrators and EPCs and reducing carbon footprint. Looking at the list year-over-year, we have seen a big shift from the Managing Director & Founder all over Canada are the true value our com- traditional corporate social responsibility approach towards adopting a holistic environmental, social MINERA SOLUTIONS pany offers. and governance strategy. That’s why we weren’t surprised to see LTO at the top of the list for the second year in a row. But considerations for LTO have evolved and are now more than just social. Which are some of the companies Minera As our clients face a broader set of political, social, consumer and economic stakeholders, how they collaborates with? What was the motivation and vision behind creating Minera works with WesTech, a well-established company define LTO will change. minera Solutions? from the United States. They have 500 employees globally, I have 20 years’ experience and a master’s in environmental and can cover most of the needs in the mining sector, espe- - Theo Yameogo, Co-leader – Mining and Metals Canada, Ernst & Young science, and the industry’s emphasis on the environmental cially around mine water treatment. For the biological side, impact of mining has been growing incrementally, which is we work with Nexom, a local Canadian company with a depth why I wanted to create a company that was truly focused on of expertise in this area. We also work with EHP Environment, mining and the environment. a Finnish company that provides equipment and data ser- In the past, companies often did not put their ESG statements at the forefront. However, it is now Instead of integrating product lines, I downsized the busi- vices for remote monitoring particularly well-adapted to cold evident that they must get in front of the issue and demonstrate their contributions to government ness model of Minera to be a manufacturing agent, therefore climates. We may add one or two specialized manufacturers and the community from an early stage. Transparency is very important and companies are now opening the doors to all integrating companies and EPCs. My to complete our offer. The idea is to have synergy between being upfront and transparent on how mining in a community can be beneficial, for example expertise is in water treatment, but I know that environmen- these companies – they gain from being on the minera plat- through employment and local investment tax contributions to local governments and through tal directors of companies also have to deal with renewable form, but minera also provides value for people and compa- environmental responsibility. energy and energy storage. That is why Minera has brought nies that are related to mining, but do not have access to the two renewable energy and energy storage experts into the market. company. - Daniel Ricica, Partner – Energy and Natural Resources, KPMG What is Minera’s growth strategy moving forward? Why do you think environmental issues become so impor- Things have been moving so fast for minera that managing growth is certainly a challenge. We are obtaining external tant to mining companies recently? Mining is an inherently risky business. If you are in a jurisdiction that does not have a similar The overall environmental awareness of individuals, who may help from consultants and mentors, and have found investors regulatory framework to Canada, it is important to address all the ESG issues. Without thorough also be stakeholders and investors in mining companies, is interested in minera as they see the growth potential and the pressuring the industry to become aware of these issues. Sus- impact we can have. Based on my experience of the water due diligence in this regard you will be unable to run operations efficiently and your licence tainable technologies are available and there is more interest treatment industry, I am looking more into business partners to operate could disappear. Whether it is through consultation with local governments or from mining companies. That being said, acting green can be than employees; people that will bring their networks and full communities, companies need to ensure they have a good ESG strategy and engage early with difficult if a company does not have the right people to ad- dedication to the project. all the stakeholders. That will take the political risk down. We have seen things like tax increases dress these issues and manufacturers to provide equipment. As a business owner, I am trying to obtain balance and do not or local blockades when this aspect has been ignored. In Canada we have a strong framework want to be only focused on gold or iron ore. Being involved in of governance. Companies have to view transparency as more than compliance – there is an Can you explain how Minera’s business model works? Ontario is important, but having projects elsewhere in Cana- Minera Solutions will act as a one stop shop for a mining da is important as well, as far as diversification and spreading opportunity to tell the story of how mining is contributing to economic development and how it can company’s environmental needs. We obtain information from the network is concerned. provide opportunities for all stakeholders. manufacturers and make it available to potential customers. Do you have a final message for the audience of Global - Kevin Chan, National Mining Leader, PwC Canada Business Reports? Minera is concentrating on work in Canada, where there are currently many opportunities on the environmental side. We are client-focused and understand that relationships and rep- Social license is a key and recurring issue around the world. There is increasing demand on the part utation are built over time and based on success, so we are in of communities to share in the benefits of a project and the expectations for mining companies to this for the long-term. demonstrate their integrity and safety in operations continues to rise. Based on my experience and the network I have, I believe Predictability and stability are conducive to good business and poor social responsibility the best solution for responding to environmental needs is compromises companies by exposing them to strikes and blockages. There is an opportunity to add to work with one company that has a broad spectrum of partners and solutions to be able to respond to a multitude of real value to communities and create a symbiotic relationship for success. Companies must look environmental issues. Minera Solutions has a simple business past compliance and go beyond the bare minimum regulatory and legal guidelines. model that is totally dedicated to the mining sector, with access to tier 1 manufacturers that are able to fully cover mining - Andrew Swart, Global Mining and Metals Leader, Deloitte needs. ■

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INNOVATION

» I would like to see the industry embark on digital transformation, as well as profound innovation. This is foundational to revolutionize the sector. The digital revolution is the new normal. But it doesn’t necessarily mean that all companies must address this subject in the same way — there are opportunities for each company to do something different. «

- Theo Yameogo, Co-leader – Mining and Metals Canada, Ernst & Young

Image courtesy of Epiroc EDITORIAL Global Business Reports Industry Explorations EDITORIAL

INNOVATION has to change: “After the last downturn, there has been a fo- volume of mineable ore and increase the life of mine,” he ex- cus on what we must do in order to survive moving forward,” plained, adding: “This requires us to implement whole-scale he said, explaining that this encompasses two aspects: having change in metal mining operations globally within the next a social license to operate, and integrating technology more decade. The innovation imperative for mining globally is to The risk of efficiently. “I still see companies struggling on the second achieve a radical increase in the electrification of the econo- aspect. I think both the understanding of the need and the my; the consequences of failing are not trivial.” standing still will are there at a corporate level but operationalizing those Innovation of any kind, be it incremental or step-change, re- changes has been more challenging. The difficulty comes in quires buy in from all parties. However, the initial push must integrating new technologies into an already established sys- come from the creators and developers of new technologies, tem,” remarked McEachern. and in this chapter we will explore some of the companies For Douglas Morrison, president & CEO of the Centre for leading this charge. Excellence in Mining Innovation (CEMI), economic pressure will be the driving factor for the implementation of technology that significantly reduces the costs for metals needed to SMEs and start-ups: the lifeblood of innovation achieve electrification of the economy. “Climate change will Operational costs are rising, mines are getting deeper, ore worked in other industries, when you approach a company soon begin to threaten coastal infrastructure on a scale which Although there are mining companies at the forefront of inno- grades are declining, exploration success is decreasing and with a new technology, if they realize it will optimize perfor- most economies will not be able to tolerate,” stated Morri- vation, such as Torex Gold Resources, Dundee Precious Me- environmental regulations are becoming stricter. All of these mance and cut costs, they are willing to be first-adopters. Mi- son, warning that if the demand for metals means the price tals and Newmont, the small and medium enterprises (SMEs) factors are underpinned by a seven-year downturn that has ning companies, on the other hand, almost always ask “who of copper, nickel and lead increases, it will be harder to drive whose sole business is to create and develop mining tech- seen investment leave the mining sector. When looked at from else has this in their mines?” observed Nadine Miller, strategic lower-cost carbon out of the economy and the trends in cli- nologies are often the real agents of change. Across Canada a macro perspective, the climate is ripe for new innovations to advisor at the Awz HLS Fund and director of Wesdome Gold mate change will continue. there are a number of world-leading mining-tech hubs, most dramatically reduce the cost of production, improve explora- Mines. Morrison insists that we need to see greater volume of base notably in Sudbury, Val-d’Or, Toronto, Vancouver and Mon- tion success and reduce environmental impact. In such a con- “When I entered the industry in the 1970s, there were signifi- metal production, but at a lower price point, and this cost re- treal. Collaboration between innovation-focused associations text, innovation should be a necessity, rather than an option. cant changes taking place,” said Alex Henderson, president duction must come not only from prospective mines which such as CEMI, NORCAT and COREM with the start-ups and However, the mining industry’s adoption rate for implement- of Alex Henderson Consulting, who mentioned that a high may not come into production within a decade, but from SMEs betting their houses on the success of their ideas, have ing new technologies lags behind other heavy industry such degree of everything the industry does today was developed current mines as well. “If we change the cost of production spawned numerous technologies that are impacting the glob- as the chemical, automotive and oil and gas sectors. “Having during this period. “I often ask clients to show me what is significantly, we change the cut-off grade of ore, expand the al mining industry. 104>> different in the new mine they are developing from previous mines that have been built. They usually answer that there is nothing different,” he added. There are reasons for this caution. Mining is an inherently risky business, from early stage exploration that raises vast sums of money to invest in ventures statistically unlikely to be developed, through to the complicated and dangerous process of extracting ore in a remote location at depth. By the time a mine is ready to go into production, tried and tested methods are often more attractive to operators looking to guarantee output for management and shareholders. Jeff More, president and CEO of MineSense Technologies, touched on the practical reality mines have to deal with: “By definition, mines have a lot more complexity than other industries. For example, when your industrial processes are inside of one building you have more flexibility to try new things in comparison to the mass scale in a mine,” he reflected, noting however, that the rate of adoption for new technologies in mining is starting to accelerate. Chrysalix Venture Capital, a global technology venture capital fund that specializes in transformational industrial innovation, was one of the companies to have funded MineSense Technologies. Charlie Haythornthwaite, senior partner at Chrysalix, suggested that the various pressures facing the mining industry are starting to force companies to change their approach: “Generally, there is renewed recognition that sustaining incremental innovation may no longer be enough and there is an ever greater need for step-change solutions.” Driving stability through 6th Sense implementation by utilizing great This sentiment was echoed by Ryan McEachern, managing people, processes and technologies. director of the Mining Suppliers Trade Association (MSTA) epiroc.com Canada, who acknowledged that the industry knows that it

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CEMI’s first annual Future of Deep Mi- batch process, roughly 80% of energy cial and environmental responsibilities ning Conference was held in Septem- is used for moving the equipment and – it is about expediting the process. ber 2019 in Toronto. What does the 20% of the energy is used to move the Ryan We have created requirements that ex- event aim to achieve and what were ore itself. On a conveyor belt, approxi- tended the timeline from discoveries to its main themes? mately 95% of the energy is used to McEachern production. The aim should be to con- The aim of the conference was to pro- move the product and only 5% of energy dense that without reducing the quality file the kinds of technologies which have is used to move the belt. The challenge of the regulation. been under development in Canada in deep underground mining is that the over the last four years. We believe that ore product is too dense and heavy for Managing Director Do you see the adoption rate for new SMEs are the most innovative compa- belts to be effective. Designs of steel technologies improving? MINING SUPPLIERS TRADE nies and we wanted to showcase the conveying systems, which will consume After the last downturn, there has been diversity of these innovative companies. approximately 25% of the energy for the ASSOCIATION (MSTA) CANADA a focus on what we must do in order We wanted to highlight that we are in a moving parts of the equipment and 75% to survive moving forward. This en- time where if you create an environment of the energy to move the ore, will allow compasses two aspects; having a so- where people have opportunity, the in- mines to move the ore faster and much cial license to operate and integrating novators will take the opportunity and more energy-efficiently than using con- technology more efficiently. I still see Douglas run with it. ventional batch processes. What is the mandate and member- ered a value proposition but now it is companies struggling on the second The first day of the conference was fo- ship structure of the Mining Suppli- implied that whatever you are doing is aspect. I think both the understanding cused on production intensity, which Do you believe the implementation ers Trade Association (MSTA)? done in a safe and responsible manner. of the need and the will are there at a Morrison is everything to do with getting to the new technologies will be driven by so- The MSTA is the national voice for the You must differentiate yourself in your corporate level but operationalizing ore faster and moving ore to mill more cial pressure? mining services and suppliers sector. ability to implement a solution that will those changes has been more challeng- quickly. The second day was focused on I believe that economic pressure will The association’s mandate for over 38 improve productivity in a cost effective ing. The difficulty comes in integrating energy consumption, where there was drive the implementation of technology years has been to serve its members in way. The productivity improvements new technologies into an already estab- emphasis on ventilation systems and to significantly reduce the cost of the connecting them to opportunities to are usually in terms of connectivity or lished system. battery systems for production vehicles. metal society needs to achieve electrifi- grow their business. MSTA’s three pil- reducing the time required for a pro- cation of the economy. Climate change lars of purpose are networking, mining cess. What does the MSTA’s annual forum How can CEMI assist SMEs to pene- will soon begin to threaten coastal intelligence information and education, held in Toronto in November aim to President & CEO trate the mining market? infrastructure on a scale which most and advocacy. Our members are mostly Can you expand on MSTA’s provision achieve? CENTRE FOR EXCELLENCE IN CEMI typically does not help SMEs with economies will not be able to tolerate. small to medium enterprises and they of advocacy services? In 2019, the theme is “Unleashing the MINING INNOVATION (CEMI) the sales process, but our role in the eco- But if more demand for metals means represent the whole life cycle of mining. We advocate by providing advice to Canadian Mining ecosystem”. The in- system is to develop government fund- the price of copper, nickel and lead in- federal and provincial agencies when tent is to provide a platform for com- ed programs to accelerate the process creases, it will be harder to drive lower- How do you view the current climate they are making policy decisions. The panies to show their work and contribu- of delivering the SMEs product or ser- cost carbon out of the economy and the for Canadian mining service provid- main focus is to instruct government on tions worldwide; from the government vices into the economy. We will first do trends in climate change will continue. ers? how it can enable the sector’s growth. I to mining services providers, mining a profile of the SME to find any gaps in We need to see greater volume of base There are three main aspects. There is a believe there are two guiding principles companies and all stake holders. I be- their business capabilities and then find metal production, but at a lower price commitment to reducing water intensi- on how to do that. Reducing the bar- lieve we succeeded in our goals and ob- other small companies in the ecosystem point. Therefore, it is paramount we sig- ty, reducing energy intensity and reduc- riers of doing business and increasing jectives of this event. We also wanted that they can work with to fill these gaps, nificantly reduce the cost of base metal ing environmental footprint. If you are a the access to opportunities. This can to convey the message that we are a and we also assist SMEs to find more production, not only from prospective company that is providing services ad- have many shapes and forms, and come trusted and ethical partner of choice to » established companies that might be- mines which may not come into produc- dressed to one of these solutions, you from different angles such as infrastruc- develop your mineral resources. We are come partners. We aim to solve SME’s tion within a decade, but from current are in high demand. ture, taxation, funding innovation. planning for our 2020 event and look The innovation imperative for technical issues as well as commercial mines as well. If we change the cost of The market favors services that improve Facilitating business does not mean forward to another great networking mining globally is to achieve and business issues in order to get their production significantly, we change the productivity. Safety used to be consid- that the industry should reduce its so- event. ■ a radical increase in the product or service to the market faster. cut-off grade of ore, expand the volume of mineable ore and increase the life of electrification of the economy; From an innovation standpoint, what mine. Extracting more metal from mines the consequences of failing are do you believe is the next big thing in already in production gives us more time not trivial. underground mining? to find new mineable deposits and bring Continuous transportation systems for them into production. We will also have moving ore out of the mine are the next to find ways to mine much smaller and GET CONNECTED « big thing in underground mining. Deep more remote deposits whilst still being mines with dynamic, seismic conditions profitable. This requires us to implement TO A WORLD OF POSSIBILITIES are not conducive to fixed infrastructure whole-scale change in metal mining op- that can be damaged. Instead, simpler, erations globally within the next decade. mobile equipment systems are required. The innovation imperative for mining Ryan McEachern We have to move away from batch trans- globally is to achieve a radical increase [email protected] portation systems to continuous trans- in the electrification of the economy; the portation systems. In a conventional consequences of failing are not trivial. ■

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Image courtesy of SafeSight Exploration Mining, Wesdome Gold Mines and Bar- 2017. In 2018, VRIFY had four clients using its platform, and rial handling: “RFID has a reliability of between 70% to 80%, rick. “After just under three years in the by the end of 2019 the client-base had grown to approxi- compared with the Peytec standard of 99%. These tags also field, SafeSight has already flown over 100 mately 110 companies. So why has this new approach to pre- have the issue that when buried they cannot be detected, operational missions, so despite bringing senting information become so popular? “Mining companies and when a problem is detected it is too late. The Muck Puck innovation into a conservative industry, have traditionally relied on two-dimensional tools to convey tags can send their signal through 20 tonnes of muck pile, we have tangible proof that the best tech- three-dimensional stories, but investors and stakeholders are which means drivers can know what they are carrying. In other nologies can be adopted,” he concluded. demanding more in the current market,” explained De Jong, words, Peytec’s product closed the gap between automated Another Sudbury-based company to continuing: “They want information presented in a way that quality assurance and quality control. This can represent sav- have had considerable success dissemi- allows them to actually understand where the investment po- ings of eight to nine figures.” nating its technology is Maestro Digital tential lies. On the other side, companies deserve a chance Some companies move into the mining when they see their Mine, which now supplies solutions to to differentiate themselves from all the noise in the market technology can be applicable to the sector, others are born over 130 mines world-wide, according to if they have an opportunity worth considering. That’s where from first-hand experience, noticing issues that need address- Michael Gribbons, co-founder and vice VRIFY comes in.” ing and coming up with solutions accordingly. The latter is the president. Maestro launched its Zephyr When it comes to step-change technology, the potential to re- case for Minetell, whose founder & CEO Michael Hartley was AQS solution in May 2019, a low-cost duce the cost of material movement from US$3.27 to US$0.16 working as an enterprise risk manager in the mining sector and air quality monitoring station for under- per ton is the type of impact that mining companies cannot noticed that companies could not answer two fundamental ground mines, after studying market data afford to ignore, or perhaps, may find hard to believe, accord- questions: What is their material risk exposure and how effec- to find out what its users were buying and ing to Jim Fisk, executive chairman of Rail-Veyor. Rail-Veyor’s tive are critical controls at any one moment in time? From this designing a product to fit a profile that conveyor belt ore transportation technology has been imple- basis, Hartley created Minetell to gather intelligence to pro- matched 75% of these buyers. “The flaw mented in mines across four continents, including Agnico vide decision-makers with information that improves critical of many technology companies is to hang Eagle’s Goldex mine in Val-d’Or. Although the technology has control performance and minimizes unacceptable exposure on to a product and fail to innovate, and gained traction through high-profile collaborations, Fisk com- to material risks, with the vision to use performance data to the innovation cycle is slow,” observed mented that a resistance to change is still apparent when one change the way companies manage risk. “We see huge value Gribbons. does not have an engaged audience willing to consider a new in actually stewarding a project, rather than just minimizing When asked which factor seemed to be process. “Many companies just look at the capital cost and the likelihood of events taking place. We must get away from top of the agenda of mining companies forget about the operating cost, but in my experience mines the notion that risk management is perfect until something in 2019, Gribbons replied unequivocally shut down because of high operating costs, not because of catastrophic happens,” he remarked. that productivity has been the number high capex,” he said. one focus. “A 10% reduction in energy While some innovations change or reinvent processes that use does not have the same impact as a have been in place for years, others enhance what is already in 10% increase in production,” he said, un- use. This is the case of Deep Cryogenics International, the Hal- derlining the importance of understand- ifax-based start-up which addresses abrasive wear problems <<101 ing the operating principles of a mine and for mining tools and components. “Making items last longer The Sudbury and North Bay area in Northern Ontario is the how mine managers are being compensated. “The primary is the eternal engineering challenge and this is what the Deep home of the largest mining service sector hub in Canada. Al- focus is on tonnage feeding the mill and second is health and Cryogenics process does,” stated Jack Cahn, founder and though steeped in mining tradition, the modern day Sudbury safety. Energy is important but it is nowhere near those two president, who explained how the deep cryogenics process Basin region is far from old-fashioned, with a high-tech ecosys- parameters,” he added, noting that Maestro’s solutions can takes the nitrogen in the air, separates and chills it to -196 C tem of companies producing ground-breaking technologies. help dramatically in all three areas. before warming back up and imparting a permanent wear re- One such company is SafeSight Exploration, which celebrated Revolution Mining Software (RMS) is another Sudbury-based sistance to the metals. “The process uses no chemicals, leaves its one-year anniversary of an underground drone program tech company with a focus on optimization. Incorporated in no waste, causes no harm, is not dangerous, is environmen- with Newmont in 2019. “This rugged utility drone integrates 2014 for the commercialization of SOT, the Schedule Optimi- tally neutral, infinitely renewable and recyclable,” he added. the latest LiDAR technology with an open platform flight zation Tool, the software was initially developed at MIRARCO controller and has the ability to go anywhere that a human (Mining Innovation, Rehabilitation and Applied Research Cor- should not go. The time for collecting data is also significantly poration) at Laurentian University. Lorrie Fava, RMS’ president, Toronto’s mining-tech hub reduced with the DB3 product being able to do a complete explained how MIRARCO’s Ventilation Constraint Module scan in approximately 15 mins,” explained Mike Campigotto, (VCM) interacts with SOT to facilitate the generation of op- The second biggest mining service hub in Canada outside of president of SafeSight, who commented that his company is timized schedules: “By interacting with a ventilation network Sudbury is, surprisingly, Toronto. Despite being located rela- evolving to become more than just an underground drone solver, the VCM automatically generates airflow-based con- tively far from mine sites, service companies in Toronto reap specialist: “We are becoming a company that solves problems straints on the equipment over the course of the mine life. the benefits of being located close to mining companies’ HQs with innovative technologies rather than limiting ourselves to Using these constraints, SOT generates life-of-mine schedules and the money markets, as well as a broader technology hub one type of technology. We can essentially become the tech- with maximized net present value (NPV) that are feasible from headlined by the world-class MaRS Discovery District, North nology extension of an innovation manager in a mine.” a ventilation perspective.” America’s largest urban innovation hub. On the subject of new-technology implementation, Campig- On the West Coast, one of Canada’s most successful mining- One of the mining-focused start-ups located at MaRS is Pey- otto acknowledged that the majority of mining companies do tech companies in the last two years has been Vancouver- tec, which launched its Muck Puck product in 2018, and had not want to be first-adopters, but having a high-profile part- based VRIFY. Stephen De Jong, VRIFY’s CEO and founder, sold north of 1,000 units by October 2019, according to Pey- nership can lead to further collaborations once the innovation developed an app that uses 360 degree imagery to market man Moeini, president & CEO. Moeini explained the benefits has been proven, as has been the case with SafeSight which Quebec-based gold exploration company Integra Gold, of the Muck Puck over RFID (Radio-frequency identification) built upon its work with Newmont to collaborate with Redpath of which he was CEO before the company was acquired in – the most commonly used quality-control product for mate-

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Minetell wants companies to move from results thinking to “We always get asked, why go electric? I think the question performance thinking, in a move away from the “react, repair, should rather be, why use diesel?,” questioned Brian Huff, co- repeat” philosophy that is currently prevalent, to rather seek- founder and vice president of technology at Artisan Vehicles, Jason ing information that helps proactively predict and prevent fail- the California-based company that exclusively designs and ures. “The absence of failure is not a metric of success and builds BEVs for the mining industry. Acquired by Sandvik in Smith that is the big difference between results thinking and per- February 2019, Artisan grew its reputation through collabora- formance thinking,” he elaborated, giving the example of the tion with Kirkland Lake Gold in Ontario with its Z50 50-tonne extractive industries’ obsession with a totally recordable in- haul truck, the latest and largest in the company’s line of BEVs. jury rate that drives companies to fall foul of ‘Goodhart’s Law’ “Electric vehicles have many benefits as they increase health – when a metric becomes a target, it ceases to be a useful and safety, reduces costs and optimize operations. I would like metric. to see the conversation change from why go electric to why General Manager One of the key takeaways from our research in Toronto was the use diesel,” added Huff. EPIROC CANADA importance of developing technology with the user in mind, At the top of the service sector food chain, Epiroc maintained something Tony Makuch underlined during his fireside chat its leading position in Canada in 2019, despite an industry at the Northern Miner’s Progressive Mine Forum in October still yet to fully crawl out of the downturn. Jason Smith, gen- 2019 – you need the operator on board for any technology eral manager of Epiroc Canada, spoke of an evolving dynamic to be successfully adopted. Shelby Yee, CEO and co-founder where mining companies are requesting, rather than waiting How has business been for Epiroc in about Epiroc’s SmartROC D65 surface ing to look for technologies which can of RockMass Technologies, spoke of how her company’s main to be convinced of, new innovations: “These days clients are Canada in the past 12 months and drill rig, which is making evolutionary improve efficiency and productivity. Axis Mapper product was developed with users at the fore- coming to us asking for the latest technologies, rather than the has there been progression with the strides and was deployed with New- For example, these days clients are com- front of its philosophy: “One of our core beliefs is that success other way round, as mining companies have seen tangible evi- move towards electric vehicles? mont at the Hollinger open pit mine in ing to us asking for the latest technolo- will come from building the product in the hands of users… dence of the competitive advantages innovation can bring,” 2019 has been a good year for Epiroc Timmins in 2019. This tried and trusted gies, rather than the other way round, as Users want digital solutions that work, can be used every day said Smith, observing that new technologies must be scaled and we remain excited about the future. rig now has Epiroc’s innovative automa- mining companies have seen tangible and are not overly complicated.” in collaboration with customers in such a way that exposure is In terms of BEV development, Epiroc is tion-ready platform as its foundation. It evidence of the competitive advantages RockMass Tech’s Axis Mapper is used for obtaining real-time limited during the ramp up and learning phase. now on generation two and has more has the intelligence and power to con- innovation can bring. In collaboration joint orientations and geotechnical data in underground en- To cater for a wide market, Epiroc also offers a unique op- than 100,000 hours of operational ex- sistently and efficiently drill high-quality with customers, we must scale new vironments, with the goal of maximizing engineers’ efficiency portunity to its customers with the Battery as a Service (BaaS) perience just in Canada. Currently, we blast holes with accuracy and precision technologies in such a way so that ex- and providing accurate, actionable data. “Users have told us solution where the end-user does not need to invest in the have implemented battery technolo- and is loaded with smart features such posure is limited during the ramp up or the greatest benefit is that the Axis Mapper integrates data battery pack and only pays for their usage. “As well as the gies in our 14-tonne Scooptram ST14, as automated drilling and rod handling. learning phase. collection very quickly with data visualization and that they cost benefits, there is a positive environmental impact as the Minetruck MT42, and drill rigs, but this Digitalization is picking up tremendous have better data to work with in real time. It can turn a six- customer takes ownership of the “full circle of life” of the bat- technology will be rolled out into Epi- momentum here in Canada and globally What are Epiroc Canada’s key focus hour process into minutes whilst still generating accurate and teries, including second powering options right up to the re- roc’s entire product portfolio. within our industry. At Epiroc, we opti- areas moving forward? consistent datasets,” related Yee. cycling and reuse of some materials – a win for our customers, mize our customers' value chain through Epiroc is focused on sustainability and Another common theme in the innovation lifecycle is the role for us and the environment,” added Smith. Can you explain the benefits of Mobi- automation, system integration and in- innovation and always will be. The big- of universities in the research and development of new tech- The Sudbury-based OEM formally known as Minecat decided laris technology? formation management. We call this 6th gest single driver of change in the rock nologies, a dynamic leveraged by ApoSys Technologies, which to rebrand as Kovatera in 2019, to signify the company’s new Part of Epiroc’s digitalization offering is Sense and it enables a smart, safe and excavation business is, without a doubt, has collaborated with the University of Toronto and Princeton direction on a number of fronts, including a more global out- the Mobilaris product portfolio includ- seamless operation. the advent of automation. Additionally, University to create a laser alignment device with drilling rig look, a new lean manufacturing process, and the release of ing situational awareness, emergency Epiroc also offers a unique opportunity the amount and quality of resources setup. Oliver Wang, ApoSys Tech’s CEO, shared his thoughts new products in the EV space, according to general manager support and ventilation on demand. The to its customers with the Battery as a Canada gives us a positive outlook for on the importance of practical implementation for innovative Will Gove. “There are two green colors in Kovatera’s new logo offering is an important part to optimize Service (BaaS) solution where the end- the region. What differentiates Epiroc in technologies: “The most important thing in technology devel- which is symbolic of the company moving towards greener our customers' value chain through sys- user does not need to invest in the bat- the market is the technologies and so- opment is not innovation but its application. It is not a ques- and renewable technologies,” explained Gove, who noted tem integration and information man- tery pack and only pays for their usage. lutions that we bring to the table, and tion of how innovative a technology is but how useful it is and that while the demand for EVs is increasing exponentially, he agement. The Mobilaris product allows As well as the cost benefits, there is a we aim to be a partner to our customers how easily it can be integrated. The product drives the market expected diesel machinery is still going to play a role in the real-time location, tracking and moni- positive environmental impact as the so that the products Epiroc develops fit and vice versa. We need to work closely with the customer so mining industry for at least the next two to five years. toring of vehicles, personnel and any customer takes ownership of the “full seamlessly into their mining operations. that both parties can understand the business case.” In parallel with the move towards electrification, the move to- equipment using a mixture of technolo- circle of life” of the batteries, including This customer-focus will continue as we wards automation is also gathering pace, as exemplified by gies from various vendors. It is the best second powering options right up to the constantly help them make their opera- Finish OEM Normet, whose North American headquarters is fit for homogeneous and cost-efficient recycling and reuse of some materials – tions more sustainable, safe and effi- OEMs leading the electric revolution in Salt Lake City and has a base in Subdury, Ontario. Greg solutions to track assets in the mine. To a win for our customers, for us and the cient. Hallett, Normet’s senior vice president for North America, ex- integrate planning data, machine pro- environment. An example of Epiroc’s commitment to While the move to battery electric vehicles (BEVs) at mine sites panded on how the company’s SmartSpray line was inspired duction and maintenance data or sensor stay close to its customers is the estab- is still at a relatively nascent stage, every OEM we interviewed, by customer feedback relating that the quality of the sprayed data into one decision support system With regard to innovation, miners are lishment of a remanufacturing facility in without exception, was keen to underline its focus on the tran- concrete can variate critically between operators: “Normet is will help you increase the production ef- often risk-averse. Have you noticed Sudbury with a focus on underground sition to electric. At new mines, such as Newmont's Borden thus developing its products so that the operator effect to the ficiency and safety of your mine. an uptick in the demand for new tech- equipment and operations. We hope operation in Timmins, electric vehicles are already the norm result is minimized and productivity of spraying is increased,” nologies? to open the doors of the new facility by and, as public pressure on diesel emissions intensifies and said Hallet, adding: “The ultimate goal would be for our spray- What are some of the latest products Generally no one wants to be the first Q1 2020, which will initially service local prominent examples of the cost and environmental benefits of ers to achieve a level of automation where operator confidence added to Epiroc’s automation fleet? adopter of new technologies. However, consumption, but also the North Ameri- BEVs become more prevalent, staying with diesel power will becomes less important and the machine can autonomously We have added more products to our I believe that the industry mindset is can, South American and international become a risk. deliver the outcome the customer is looking for.” ■ automation fleet and are very excited changing and mining houses are start- markers if the demands are there. ■

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What was your vision and motivation more conservative and take a first to be How did your experience in the extrac- confidence that material risks are being to create Safesight Exploration? second strategy. Fortunately, SafeSight Michael tive industries help form your ambition well mitigated. Our collective intention was twofold. We has found the people who want to em- to create Minetell? Minetell is working to develop an ESG felt that we could make a great contribu- brace innovation and they have found While working as the enterprise risk man- index that is performance-based to help tion to the digital transformation plat- value in our products which has enabled Hartley ager in the mining sector, I noticed that decision makers understand where to al- form in mining and that the technology us to rapidly develop technologies and companies could not answer two funda- located capital and resources. A perfor- would dramatically change the level of put them into actual practice. The mining mental questions: What is our material risk mance-based index gives stakeholders safety in the mining industry. All of the sector is looking to digitally enable itself exposure and how effective are critical the confidence and comfort that the as- technology that we use in our innova- in one form or another. controls at any one moment in time? I cre- sociated results are repeatable. This helps tions is really at the bottom of its evolu- Founder & CEO ated Minetell to gather intelligence to pro- to differentiate a company from its peers, tionary curve and has nowhere to go but Can you explain the benefits of Safe- MINETELL vide decision-makers with the information and could be the difference in opening a upwards. SafeSight’s team of experts Sight’s DB3 drone technology? that improves critical control performance door into a new jurisdiction. have applied a passion for thinking and SafeSight’s leading product with the and minimizes unacceptable exposure to seeing things differently beyond the lat- most demand is the DB3 LiDAR enabled material risks, with the vision to use perfor- What are your views on the adoption- est drone, LiDAR, battery and camera drone technology. This product is ideal mance data to change the way companies rate of new technology in mining? technology and toward client challenges for surface or underground georefer- manage risk. We must get away from the Instead of implementing the technology, Mike underground. The result has led to col- enced LiDAR scans and has the benefit notion that risk management is perfect un- we are focusing on getting companies to laborations with leaders in the digital of increased safety, improved reconcili- til something catastrophic happens. adopt it. There has to be engagement. It transformation of mining and the creation, reduced dilution and improved has to be treated as a change-manage- Campigotto ation of step change solutions. block scheduling. This rugged utility Have you seen environmental and risk ment project. The client must think about drone integrates the latest LiDAR tech- awareness improve in recent years? what the future state looks like and whether How has the company evolved through nology with an open platform flight con- We are experiencing an age where wealth the technology aligns with it. If you are not its collaborations with mining industry troller and has the ability to go anywhere is being transferred from boomers to mil- treating technology adoption as a change partners? that a human should not go. The time for lennials. At the very time the industry management project you are going to fail. We have just celebrated the one year collecting data is also significantly re- needs capital, capital is fleeing because Unless you get the buy-in from everyone anniversary of Newmont’s underground duced with the DB3 product being able we are not giving investors what they want. operating it, it is not going to work. A com- drone program collaboration with Safe- to do a complete scan in approximately They are looking for evidence-based infor- pany ignores the human component of President Sight. Their team have been believers 15 mins. mation, founded in data, to give them the technology adoption at its peril. ■ SAFESIGHT EXPLORATION from the get-go and had the attitude We like to proliferate the technology of wanting to lead digital transforma- with clients by selling them an activa- tion to a higher level of production and tion model where they actually have to What has been the important mile- Which factor seems to be top of the safety. This high-profile partnership has activate the program with intention. It Michael stone achieved by Maestro Digital Mine agenda of mining companies: energy led to collaborations with Redpath Mi- usually starts with clients using Safesight (MDM) in 2019? efficiency, productivity, or safety? ning, Wesdome Gold Mines and Barrick. for a few service calls, after which they The Zephyr AQSTM Air Quality Station, Productivity, definitely. A 10% reduction We are starting to realize that although will buy the technology and go through Gribbons a new product launched at the CIM Con- in energy use does not have the same im- drones are our first love, we are becom- a training program so they can progress vention in Montreal 2019, has been a huge pact as a 10% increase in production. We ing a company that solves problems with on their own. As we get to know a client, success. The Zephyr AQS™ is a low-cost understand the operating principles of a » innovative technologies rather than limit- we start to recognize some of the chal- air quality monitoring station for under- mine and how mine managers are being ing ourselves to one type of technology. lenges they run into. We have therefore ground mines that now completes inter- compensated. The primary focus is on ton- Co-Founder and Vice President – We are starting to realize We can essentially become the techno- developed other tools such as robots nally with the gold standard – Vigilante nage feeding the mill. Sales & Marketing that although drones are our logy extension of an innovation manager and trucks for LiDAR enabled ground AQS™ air quality station. MAESTRO DIGITAL MINE We now supply technology solutions to first love, we are becoming a in a mine. With digital transformation, support, which is ideal for high risk or What is in store for Maestro Digital mines are appointing innovation lead- high ventilation areas where drone flight over 130 mines world-wide. An important Mine in 2020? company that solves problems ers, but they do not always have the in- may not be feasible. development in 2019 was entering the This year we are releasing MaestroLink™ with innovative technologies frastructure from a technology perspec- Argentinian market through partnerships Server. Now that we have thousands of rather than limiting ourselves to tive to give them the tools to innovate. How will the company manage growth with Newmont and Yamana Gold. Vigilantes on the field and several hundred one type of technology. We can For a company to thrive they need to as its technologies and services con- of Zephyrs, managing them effectively in essentially become the techno- continuously innovate and Safesight is tinue to gain traction? Does MDM tailor its products depend- the field requires on-going calibration and capable of being the partner that leads We have become highly efficient in inno- maintenance. All of Maestro’s products are logy extension of an innovation ing on client and mining environment? this march. vation, project development and manu- Because we are permanently innovating fully digital and have significant informa- manager in a mine. facturing, using lean methods and agile to cater to the mining operator’s needs, tion in the form of status bits to determine Do you think the mining sector has project management strategies and can they value our support and are repetitive the health of the sensors and the complete started to embrace new technologies thus do a lot with few people. We are try- customers. The products we develop are a system. To leverage this information, Mae- « and innovation? ing to be mindful of our resource growth direct response to operator needs and we stroLink™ was developed to monitor the Currently, there is a lot of noise but still and we are very selective with who we distinguish ourselves in providing ongoing equipment and allow easy and quick deci- not enough action. There are a few com- work with. We choose our clients as support to clients. That is the key to hold- sions from a centralized location. ■ panies that want to be first and want to much as they choose us, which allows for ing a reputation and allows us to go from lead the industry, but the majority are every implementation to be successful. ■ mine to mine.

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 108 Industry Explorations Global Business Reports 109 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 CONCLUDING THOUGHTS Global Business Reports Industry Explorations CONCLUDING THOUGHTS

“We have to ask ourselves, why has mining got such a bad name? You cannot blame “Canada is well-positioned to have a greater space in the critical mineral supply chain, the markets. Poverty is a responsibility we all have to deal with. If there is no focus on but we need to be more strategic with regards to our resources and in investing in contributing to the economy and societal needs of a country, there is a great possibility developing those resources. Junior companies are trying to survive in a tough market. of destroying very viable economies.” We have to look at supply-chains and value-chains in terms of what is driving the development. Instead of driving development from the resource, it should be driven - Mark Bristow, from the magnet or battery.” President and CEO, Barrick Gold - Janice Zinck, Director – Green Mining, CanmetMINING, Natural Resources Canada

“Our philosophy is that there are many deposits out there waiting to be found. There is a misleading belief that all the easy discoveries have been found. We believe there is a systemic explanation why discovery rates are down. Exploration has been pushed down to the juniors; juniors are publicly traded and therefore have short term pressures from “The digital evolution is uncontestable. It is the only way to run your business, can help stake holders. This results in management decisions such as focusing on small geological optimize and cut costs, and can also be used to address three key concerns: license to deposits for drilling that could simply be an anomaly.” operate, talent and ESG. We must rethink energy and digital provides the necessary tools, allowing us to track consumption and think about how to optimize it.” - Shastri Ramnath, President, CEO and Director, - Theo Yameogo, Exiro Minerals Corp Co-leader – Mining and Metals Canada, EY

“Youth often perceives resource development, including oil and gas, as low-tech, manual and environmentally destructive. However, those with direct experience with the industry soon realize the opposite is true. Resource development is one of the most “We are experiencing an age where wealth is being transferred from boomers to beneficial activities for society that can create a lasting positive legacy. We are working millennials. At the very time the industry needs capital, capital is fleeing because we are to help younger generations see this reality” not giving investors what they want. They are looking for evidence-based information, founded in data, to give them the confidence that material risks are being well - Dr. Ross Sherlock, mitigated.” Director of the Mineral Exploration Research Centre (MERC), Harquail School of Earth Sciences, - Michael Hartley, Laurentian University Founder and CEO, Minetell

“The amount of equity raised dropped off significantly in 2018, to the extent that the amount of equity raised in 2018 was actually below the previous low in 2013. PDAC is encouraging the government to keep in place certain fiscal incentives to drive “I believe that economic pressure will drive the implementation of technology to investment into the exploration side of the business, such as the maintenance of the significantly reduce the cost the metal society needs to achieve electrification of the flow-through share (FTS) regime as well as the renewal of tax credits. Approximately economy. Climate change will soon begin to threaten coastal infrastructure on a scale 80% of all equity raises for exploration in Canada have been flow-through, which that most economies will not be able to tolerate. But if more demand for metals means illustrates its importance.” the price of copper nickel and lead increases, it will be harder to drive lower-cost carbon out of the economy and the trends in climate change will continue.” - Felix Lee, President, - Douglas Morrison, PDAC President and CEO, Centre for Excellence in Mining Innovation (CEMI)

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 110 Industry Explorations Global Business Reports 111 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 COMPANY DIRECTORY Global Business Reports Industry Explorations COMPANY DIRECTORY

COMPANY/ INSTITUTION WEBSITE COMPANY/ INSTITUTION WEBSITE

Adventus Mining Corporation adventusmining.com KPMG home.kpmg/ca/en/home.html Alamos Gold www.alamosgold.com Labrador Iron Ore Royalty Corporation www.labradorironore.com Alex Henderson Consulting www.linkedin.com/in/alex-henderson-39671831 Laurentian University laurentian.ca ApoSys Technologies www.aposystech.com Maestro Digital Mine www.maestrodigitalmine.com Appia Eneregy Corp www.appiaenergy.ca Magna Mining Corp magnamining.com Artisan Vehicles www.artisanvehicles.com Major Drilling www.majordrilling.com/en Aston Bay astonbayholdings.com Minera Alamos Inc www.mineraalamos.com Aurania Resources http://www.aurania.com Minera Solutions www.minera.solutions Avalon Advanced Materials www.avalonadvancedmaterials.com Mineral Exploration Research Center (MERC) merc.laurentian.ca Awz HLS Fund www.awzventures.ca Minetell www.minetell.ca Barrick Gold www.barrick.com Mining Suppliers Trade Association (MSTA) mstacanada.ca Bataar Consulting www.linkedin.com/in/bayarbaatar Ministry of Energy, Northern Development and Mines www.mndm.gov.on.ca/en Benchmark Mineral Intelligence www.benchmarkminerals.com Multotec Canada multotec.ca Black Rock Engineering www.blackengtech.com Natural Resources Canada www.nrcan.gc.ca/home C.J. Stafford and Associates cjstafford.com Neo Lithium Corp www.neolithium.ca Canada Cobalt Works www.canadacobaltworks.com Newmont www.newmont.com Canadian Institute of Mining, Metallurgy and Petroleum (CIM) www.cim.org Noble Mineral Exploration www.noblemineralexploration.com/s/Home.asp Cementation Americas en.cementation.com Normet www.normet.com Chrysalix Venture Capital www.chrysalix.com Northern Light Technologies northernlighttechnologies.com Centre for Excellence in Mining Innovation (CEMI) www.cemi.ca O3 Mining o3mining.ca Clearflow Group clearflowgroup.com Omai Gold Mines www.omaigoldmines.com Conic Metals Corp www.conicmetals.com Ontario Mining Association www.oma.on.ca/en/index.asp Covergalls covergalls.com Orix Geoscience www.orixgeo.com CSA Global www.csaglobal.com Ormston List Frawley LLP www.olflaw.com De Beers Group www.debeers.com Palladium One Mining Inc www.palladiumoneinc.com Deep Cyrogenics deepcryogenics.com PDAC www.pdac.ca Deloitte www2.deloitte.com/ca/en.htm Peytec www.peytec.com Discovery Metals dsvmetals.com Pilot Law LLP pilotlaw.ca DRA Global draglobal.com Premier Gold Mines www.premiergoldmines.com Dundee Corporation dundeecorp.com Proactive Investors www.proactiveinvestors.com Dundee Precious Metals www.dundeeprecious.com PwC Canada www.pwc.com/ca/en.html Epiroc www.epiroc.com Red Cloud Securities www.redcloudfs.com ERM www.erm.com Revolution Mining Software www.revolutionmining.com Ethiopian Airlines www.ethiopianairlines.com Rockcliff Metals Corp rockcliffmetals.com Excellon Resources www.excellonresources.com RockMass Technologies www.rockmasstech.com Exiro Minerals Corp www.exirominerals.com Romios Gold Resources www.romios.com EY www.ey.com Rubicon Minerals www.rubiconminerals.com Fasken www.fasken.com/en Sable Resources sableresources.com First Cobalt www.firstcobalt.com SafeSight Exploration www.safesightxp.com FLSmidth www.flsmidth.com Sandvik www.home.sandvik/en Fortune Minerals www.fortuneminerals.com SRK Consulting /www.srk.com/en Frontier Lithium www.frontierlithium.com Star Royalties starroyalties.com Generation Mining www.genmining.com Steppe Gold steppegold.com Global Atomic Corporation www.globalatomiccorp.com Talisker Resources taliskerresources.com Global Mining Capital Corp globalmining.ca Teranga Gold www.terangagold.com Gold Fields www.goldfields.com Torex Gold Resources /www.torexgold.com GoldSpot goldspot.ca Toronto Stock Exchange www.tsx.com Government of Ontario www.ontario.ca/page/government Tradewind Markets www.tradewindmarkets.com Great Bear Resources greatbearresources.ca Trigon Metals www.trigonmetals.com Haylard www.halyard.ca Troilus Gold Corp www.troilusgold.com Haywood Securities www.haywood.com Viarmosa International www.viarmosainternational.com Hispanics in Mining hispanomine.com VRIFY www.vrify.com IBK Capital Corp www.ibkcapital.com Wesdome Gold Mines www.wesdome.com INV Metals www.invmetals.com Westpro Machinery Inc. www.westpromachinery.com Ion Energy www.ionenergy.co Women on the move womenonthemove.club JDS Energy & Mining Inc www.jdsmining.ca World Gold Council www.gold.org Kingsdale Advisors www.kingsdaleadvisors.com Kirkland Lake Gold klgold.com This list intends to include just a representative sample of companies operating in Ontario’s mining sector, Kovatera www.minecat.com and as such it should not be considered a guide to take investment decisions.

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 112 Industry Explorations Global Business Reports 113 MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 CREDITS Global Business Reports

EDITORIAL AND MANAGEMENT TEAM

Project Director: Ben Cherrington ([email protected]) Project Coordinator: Margarita Todorova ([email protected]) Journalists: Ben Cherrington ([email protected]) and Diego Brando ([email protected])

Executive Editor: Mungo Smith ([email protected]) Operations Director: Miguel Pérez-Solero ([email protected]) Graphic Design: Gonzalo Da Cunha ([email protected]) Graphic Design (ads): Özgür & Deniz ([email protected]) General Manager: Alice Pascoletti ([email protected])

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THANK YOU

We would like to thank all the executives and authorities that took the time to meet with us.

Also, special thanks to:

The TMX Group www.tmx.com

Ontario Mining Association (OMA) www.oma.on.ca

Centre of Excellence for Mining Innovation (CEMI) www.cemi.ca

Mining Suppliers Trade Association of Canada (MSTA) www.mstacanada.ca

Canadian Institute of Mining, Metallurgy & Petroleum (CIM) www.cim.org

MINING IN ONTARIO AND TORONTO’S GLOBAL REACH 2020 114 Industry Explorations