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Mineral Exploration and Mining

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HAIDA GWAII / QCI<br />

LAND USE PLANNING<br />

MINERAL EXPLORATION<br />

&MINING<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


MINING SECTOR<br />

• What is a mineral resource?<br />

• <strong>Mineral</strong> development interests in<br />

l<strong>and</strong> use planning.<br />

• <strong>Exploration</strong> <strong>and</strong> Mine approval<br />

stages<br />

• Brief description of exploration<br />

<strong>and</strong> mining process.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


WHAT IS A MINERAL?<br />

• A mineral is any substance that has<br />

been formed by geologic processes<br />

<strong>and</strong> has a chemical composition<br />

expressible by a chemical formula.<br />

• <strong>Mineral</strong>s can be in the form of<br />

metallic ie. Iron, gold, silver, copper<br />

<strong>and</strong> industrial ie. Coal, clay, argillite<br />

<strong>and</strong> aggregates.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


WHAT IS AN ORE BODY?<br />

• An Ore Body is comprised of a<br />

metal bearing mineral or industrial<br />

mineral, mixed with barren matter<br />

called ganque, <strong>and</strong> is capable of<br />

being mined at a profit.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


MINERAL POTENTIAL<br />

• Produced for use in l<strong>and</strong> use<br />

planning processes<br />

• Ranks the l<strong>and</strong> base by its<br />

potential for discovery of mineral<br />

deposits<br />

• B.C. was divided into ‘tracts’ of<br />

similar geology<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


MINERAL POTENTIAL<br />

• Each tract was evaluated by panels<br />

of experts for the probability of the<br />

existence of undiscovered deposits<br />

of a specific type.<br />

• <strong>Mineral</strong> Potential evaluation is based<br />

on rigorous science <strong>and</strong> methods<br />

used by the United States Geological<br />

Survey.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


MINERAL POTENTIAL<br />

The limitations of the data are:<br />

• Dated<br />

• New theories <strong>and</strong> exploration will<br />

change map<br />

• New mining technologies <strong>and</strong> societal<br />

dem<strong>and</strong>s will change map<br />

• Analysis is regional in scale (1:100 000)<br />

• Only one of several maps needed to<br />

fully describe the mineral values in a<br />

region<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


Map of Metallic <strong>Mineral</strong><br />

Potential, Prospects <strong>and</strong><br />

Showings – See Atlas map<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


MINERAL OCCURRENCE IN<br />

HAIDA GWAII / QCI<br />

• 157 KNOWN MINERAL OCCURRENCES<br />

ON HAIDA GWAII / QCI - OF THESE<br />

THERE ARE:<br />

• 95 METALLIC MINERAL<br />

• 46 INDUSTRIAL MINERALS<br />

• 8 BITUMEN<br />

• 1 HOTSPRING - GEOTHERMAL<br />

• 7 COAL<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


MINING HISTORY ON HAIDA GWAII / QCI<br />

• 21 Past producing mines on Haida Gwaii /<br />

QCI<br />

• 16 of these produced less than 500 tonnes.<br />

• Largest mines were:<br />

– Jedway 1962 to 1968<br />

– Wesfrob Mines @Tasu 1967 to 1983<br />

• <strong>Mineral</strong> tenure has declined from 207 in<br />

1999 to 104 tenures as of March 2003<br />

• No mineral notices of work in 2001 & 2002.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


INTEREST STATEMENT<br />

• To work closely with the Haida Gwaii /<br />

QCI Community Planning Forum to<br />

develop a sound LUP with consideration<br />

to social, cultural, environmental <strong>and</strong><br />

economic values.<br />

• Promote mining <strong>and</strong> educate on the<br />

basis of present day st<strong>and</strong>ards <strong>and</strong><br />

regulations.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


INTEREST STATEMENT<br />

• Promote sustainability with consideration<br />

of social, cultural, environmental <strong>and</strong><br />

economic values.<br />

• Respect Aboriginal Rights <strong>and</strong> Title.<br />

• To develop a plan that provides maximum<br />

access to the l<strong>and</strong> for exploration <strong>and</strong> to<br />

ensure that l<strong>and</strong> tenure is secure to<br />

accommodate the development of an<br />

infrastructure for mineral extraction.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


COMMUNICATION<br />

• Communication with the sector will be by<br />

correspondence (minutes of meetings)<br />

<strong>and</strong>/or meeting with the represented<br />

organizations <strong>and</strong> groups as required. The<br />

Table member will consult with the l<strong>and</strong> use<br />

committee of the B.C. <strong>and</strong> Yukon Chamber<br />

of Mines <strong>and</strong> <strong>Mining</strong> Association of British<br />

Columbia to ensure that the message<br />

delivered is consistent with other l<strong>and</strong> use<br />

planning processes.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


EXPECTATIONS<br />

ACCESS TO AS MUCH LAND AS POSSIBLE<br />

ACCESS CORRIDORS<br />

SECURITY OF TENURE AND ACCESS<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


ACCESS TO LAND<br />

• <strong>Mineral</strong> deposits are rare <strong>and</strong> despite the<br />

best resource assessments available, it is<br />

often difficult to reliably predict where the<br />

next potential mineral deposit will be<br />

found. Therefore, the industry needs as<br />

much l<strong>and</strong> as possible open for<br />

exploration, knowing that it will use only<br />

a small fraction for mining.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


ACCESS TO LAND<br />

• As a result the government, in consultation<br />

with industry, has developed a Two Zone<br />

l<strong>and</strong> use model that can be applied to<br />

subsurface resources in British Columbia.<br />

• Within the Two Zone Model, one zone<br />

pertains to parks where mining is not<br />

allowed. This is clearly understood by the<br />

mineral explorer <strong>and</strong> mineral investor.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


ACCESS TO LAND<br />

• The other zone (which is really numerous<br />

zones from the perspective of the l<strong>and</strong><br />

planner, forester or biologist) is<br />

effectively the rest of the l<strong>and</strong> base where<br />

mining would be allowed, subject to<br />

meeting regulatory <strong>and</strong> legislated<br />

requirements.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


ACCESS TO LAND<br />

• The mineral industry would like to avoid<br />

being inadvertently affected by l<strong>and</strong> use<br />

designations that are targeted to restrict<br />

the activities of other industries or<br />

recreational interests within a planned<br />

non park area.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


ACCESS CORRIDORS<br />

• Advanced exploration <strong>and</strong> mine<br />

development generally require road<br />

access<br />

• The industry would like to insure that l<strong>and</strong><br />

use designations in one area do not<br />

preclude mineral activity in an adjacent<br />

area due to access restrictions along a<br />

potential transportation corridor.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


SECURITY OF LAND TENURE<br />

• On average, mines cost $100 million to<br />

discover <strong>and</strong> another $100 million to $1<br />

billion for development.<br />

• <strong>Mineral</strong> investors need a high level of<br />

comfort that mineral tenure is secure before<br />

making significant investments.<br />

• Need assurance that access corridors<br />

remain open.<br />

• <strong>Mineral</strong> tenure expropriation require<br />

compensation.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


Permit<br />

Amendment<br />

if more ore is<br />

discovered.<br />

MINE CLOSURE AND<br />

RECLAMATION MODE<br />

FULLY PERMITTED<br />

OPERATING MINE<br />

Possible<br />

EAO<br />

Process<br />

PERMITTING PROCESS:<br />

All statutory permits required. Reclamation<br />

Bonds posted. Closure plan submitted.<br />

EAO recommendations to<br />

appropriate ministers.*<br />

Yes – Project Approval Certificate<br />

No – Project Ends<br />

Mine reclaimed to<br />

approved plan.<br />

Indefinite<br />

monitoring.<br />

Claim is staked<br />

<strong>and</strong> registered<br />

by Free Miner<br />

Permit holder<br />

The<br />

Development Path of<br />

a Mine<br />

* <strong>Mining</strong> proponent may seek EAO approval<br />

concurrently with application<br />

for Mines Act Permit<br />

= Public Input<br />

BC Environmental<br />

Assessment Office <strong>and</strong><br />

Canadian<br />

Environmental<br />

Assessment review.<br />

Small Mine<br />

(75,000 tonnes<br />

per year).<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.<br />

Notice of Work Application<br />

Submitted<br />

What? Where?<br />

Needs<br />

Permit<br />

MEM assesses<br />

Notice of Work: possible<br />

referral to other<br />

organizations<br />

Needs No<br />

Permit<br />

AUTHORIZATION<br />

PROCESS<br />

Determine if the<br />

property is worth<br />

developing into<br />

a mine<br />

Submission of:<br />

APPLICATION<br />

FOR A MINE


PLANNING / PERMITTING<br />

• At the mine permitting stage,<br />

comprehensive environmental assessments<br />

are m<strong>and</strong>ated to deal with environmental<br />

concerns of a proposed mine much better<br />

than generalized planning zone language.<br />

• These assessments are essentially a high<br />

level of EBM planning.<br />

• Haida Gwaii / QCI LUP will become a higher<br />

level tool in the planning process.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


FACTS<br />

• Approximately 10,000 B.C. residents<br />

directly employed <strong>and</strong> 20,000 indirectly<br />

employed in the mining industry.<br />

• Significant decline in <strong>Mineral</strong><br />

<strong>Exploration</strong>.<br />

• Only about 1 out of a 1000 mineral<br />

showings are economic.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


FACTS<br />

• Mines produce high economic return<br />

for area disturbed. Average $150,000<br />

per hectare of l<strong>and</strong> used.<br />

• Less than 0.03% of l<strong>and</strong> base disturbed<br />

throughout the history of mining in the<br />

province, most of which has been<br />

reclaimed.<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.


AREA USED FOR EXPLORATION<br />

.<br />

AND MINING<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.<br />

TOTAL AREA OF B.C.<br />

AREA STAKED 6.0%<br />

AREA LEASED 0.1%<br />

AREA DISTURBED BY<br />

MINING 0.03%


IMPACT<br />

Impact at Various Stages of <strong>Mineral</strong> Development<br />

HIGH<br />

LOW<br />

NONE<br />

AREA OF LAND INVOLVED<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.<br />

MINING<br />

ADVANCED<br />

EXPLORATION<br />

EXPLORATION<br />

PROSPECTING


MINERAL DEVELOPMENT<br />

GIBRALTAR IN OPERATION FROM 1972 TO 1998<br />

TOTAL TONS MINED 700,000,000 TONS<br />

ORE MILLED 339,683,000 TONS<br />

COPPER IN CONC. 1,864,200,000 LBS.<br />

COPPER AS CATHODE 84,670,000 LBS.<br />

MOLYBDENUM 19,694,000 LBS.<br />

TOTAL REVENUE $1,662,000,000<br />

TOTAL AREA 1856 HA<br />

$ GENERATED /HA $895,474 / HA<br />

B.C. <strong>and</strong> YUKON CHAMBER of MINES<br />

MINING ASSOCIATION OF B.C.

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