Canadian Mining Magazine - Matrix Group Publishing Inc.

Canadian 

Summer 2011 

Mining 

Magazine 

Canada Post Publications Agreement Number: 40609661 

Mining in 

Alberta: 

Gaining Momentum 

Through Diversity

Canadian Mining 

Magazine 

Summer 2011 

Published By: 

Matrix Group Publishing Inc. 

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Number 40609661 

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Table of Contents 

Cover Section 

Mining in Alberta: Gaining Momentum Through Diversity 

Alberta’s Mineral Resource Base. ............................ 6 

Ensuring Growth Through Education ........................ 8 

Economic Impact of Alberta’s Mining Industry ................ 10 

Ironstone Resources’ Clear Hills Project ..................... 12 

Digging for Details 

HR Report - Workplace Diversity: A Core Value at Suncor Energy .. 14 

Transaction Report ..................................... 17 

Junior Mining News .................................... 19 

Tools of the Trade ...................................... 20 

News Watch: From Coast to Coast 

The North ............................................ 22 

British Columbia. ...................................... 23 

Alberta .............................................. 24 

Saskatchewan ......................................... 25 

Manitoba ............................................ 26 

Ontario .............................................. 27 

Quebec .............................................. 28 

Atlantic Canada. ....................................... 29 

Buyer’s Guide ..................................... 34 

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ON THE COVER: 

Big league opportunities: 

Finning’s teams in Edmonton 

and in the oilsands are looking 

to add more skilled technicians 

to service growing fleets of 

equipment. (Photo courtesy of 

Finning Canada.) 

Canadian Mining Magazine 5

Alberta Mining 

Alberta’s Mineral 

Resource Base: 

Gaining Momentum Through Diversity. 

By D. Roy Eccles and Gary V. White 

As of April 2011, Alberta had 

1328 active mineral permits 

for metallic and industrial 

minerals covering 

6,159,610 hectares. Based 

on corporate websites and news releases, 

mineral exploration companies searched 

for a diverse suite of commodities in Alberta, 

some of which include diamonds, 

uranium, polymetallic black shale, iron, 

placer gold, titanium-bearing minerals, 

magnetite, and lithium. 

Industrial mineral production included 

aggregate, sulphur, peat, salt, and silica. 

As of December 31, 2010 there were 

1,150 coal leases totalling 604,000 hectares. 

Coal production remained strong in 

Alberta with 13 mines producing approximately 

32 million tonnes during 2010. A 

summary of some of Alberta’s recent mining 

and mineral exploration highlights follows. 

Coal 

Alberta’s coal reserves are estimated 

at between 33-37 billion tonnes. During 

2010, there were 13 operating coal 

mines in Alberta with production dominated 

by subbituminous coal (24 million 

tonnes), followed by bituminous thermal 

and metallurgical coal (8 million tonnes). 

Coalspur Mines Limited is currently developing 

the Vista Coal project, a large 

scale, thermal coal project located near 

Hinton in west-central Alberta. A prefeasibility 

study by Coalspur Mines reports 

initial proven and probable marketable 

coal reserves of 260 million tonnes defined 

from a recoverable coal reserve of 

522 million tonnes. Coalspur estimates 

a 31-year mine life producing 9.0 million 

tonnes of saleable coal per year making 

this project North America’s largest dedicated 

export thermal coal mine. 

Several companies including Swan Hills 

Synfuels and Laurus Energy Incorporated 

are currently investigating opportunities 

to convert coals normally considered too 

deep for conventional mining into gas by 

in-situ coal gasification (ISCG). Swan Hills 

Synfuels in the Swan Hills area of westcentral 

Alberta proposes a 300 mega watt 

electricity generation plant by converting 

the coal resources into clean burning syngas. 

Rare metals 

Several companies have expressed interest 

in lithium from formation waters 

in the Swan Hills area in west-central Alberta. 

The interest is due to mid-1990s 

government reports showing that lithium 

concentrations of up to 140 mg/L 

in formation waters are associated with 

carbonate build-ups of the Leduc Formation 

in the Woodbend Group and the 

Swan Hills Formation of the Beaverhill 

Lake Group. During 2009, at least two exploration 

companies, Channel Resources 

Limited and First Lithium Resources Incorporated 

verified the lithium potential 

of the Swan Hills formation waters when 

they reported compositions of up to 112 

mg/L from brine-sampling programs of 

producing oil and gas wells in the area. 

In addition to lithium, these companies 

also reported elevated boron (223 mg/L), 

potassium (5,870 mg/L) and therefore the 

potential for a multi-element separation 

plant. Channel Resources has extracted 

a sample of approximately 2,000 litres of 

brine to test recovery methods and plans 

to generate resource estimates for lithium 

to an intermediary compound, up to 

88 per cent elemental bromine, up to 100 

per cent of the boron as sodium borate, 

and approximately 40 per cent potassium 

as carnallite salt. 

Testing also reported that potash (potassium 

chloride) can be separated from 

the carnallite with a greater than 70 per 

cent recovery of potassium. Future testing 

will pre-treat the brine to reduce overall 

calcium content potentially yielding 

greater recovery of potash and lithium. 

Uranium 

The western portion of the Athabasca 

Basin, which is underexplored but 

analogous to the highly mineralized unconformity 

style of the Eagle Point-Cigar 

Lake-McArthur River-Key Lake uranium 

belt, continues to attract exploration interest. 

Some of the companies actively 

exploring in the area since 2007 include 

Fission Energy Corporation (North Shore 

property), CanAlaska Uranium Limited 

(Alberta project on the western arm of 

Lake Athabasca), and Brazilian Gold Corporation 

(Rea project). In addition to interest 

in the Athabasca Basin, several 

companies including Fission Energy Corporation, 

Ultra Energy Limited, and North 

American Gem Limited, are investigating 

roll front-type uranium mineralization in 

other parts of Alberta including the Caribou 

Mountains in northern Alberta, and 

various portions of southern Alberta. 

Titanium (zircon) 

Titanium Corporation Incorporated 

hopes to develop technology to mine the 

sludge from oil sands tailings in northeastern 

Alberta for water, zircon, bitumen, 

and solvent. In theory, the project 

would reduce the environmental impact 

of oil sands production in north-eastern 

Alberta by reducing tailings pond emissions 

as part of a process to recover bitumen 

and heavy minerals, During October 

2010, Titanium Corporation Incorporated 

and Sustainable Development Technology 

6 Summer 2011 / www.canadianminingmagazine.com

Canada announced the successful completion 

of the first phase of its oil sands 

tailings pilot demonstration project. The 

demonstration pilot yielded between 70- 

75 per cent recovery such that Titanium 

hopes to recover annually 10-15 million 

cubic metres of water, 70,000 tonnes of 

zircon, three million barrels of bitumen, 

and 300,000 barrels of solvent from a typical 

oil sands plant. The next phase of the 

project will operate a pilot plant to evaluate 

froth treatment tailings from three oil 

sands operating sites. 

Polymetallic black shale 

DNI Metals Incorporated is exploring 

metalliferous (Mo-Ni-U-V±Zn±Cu±Co±Ag) 

black shale in at least two areas of Late 

Cretaceous Second White Speckled Shale 

Formation in the Birch Mountains area of 

northeastern Alberta. During September 

2010, DNI Metals Incorporated expanded 

its property interest and implemented 

stage-2 leaching tests. Bioleaching tests 

reported recoveries of Mo-15.6%; Ni- 

88.4%; U-88%; V-5.8%; Zn-82.8%; Co- 

88.1%. Metal recoveries measured 

without the addition of bio-organisms, to 

evaluate effects of biotic intermediation 

on metals recoveries, reported Mo2.5%; 

Ni-86.6%; U-81.9%; V-8.3%; Zn-83.7%; Co- 

83.2%; Cu-49.4%. The recoveries demonstrate 

that metals can be readily extracted 

from the black shale through bioleaching 

and that recoveries are high enough 

to warrant expansion of the test work. 

During February 2011, DNI Metals Incorporated 

drilled eight HQ diameter holes 

totalling 650 metres, on the Buckton and 

Asphalt properties for expanded bioleach 

test work and reserve estimates. 

Diamond 

During March 2010, Canterra Minerals 

Corporation completed a 54 drillhole 

program comprising 8,328 metres to 

test five high interest kimberlite bodies in 

the Buffalo Head Hills kimberlite field in 

north-central Alberta. The work, which 

was completed as part of a joint-venture 

agreement with Shore Gold Inc. and En- 

Cana Corporation, is expected to lead to 

the development of three-dimensional 

models for the K5, K6, K14, K91 and K252 

kimberlites. Diamond results are pending. 

In late 2009, Shear Minerals Limited 

commenced drilling at the Liege diamond 

Ironstone Outcrop along Rambling Creek. (Photo courtesy of Ironstone Resources Ltd.) 

project, located about 80 kilometres east 

of the Buffalo Head Hills kimberlite field. 

Shear tested three initial priority targets 

based on pipe-like features identified 

from seismic, high-resolution airborne 

and ground geophysical surveying completed 

between 2006 and 2008. The 

results of the drilling have not been disclosed. 

Ferrous minerals (Clear Hills iron 

deposits) 

During 2008, Ironstone Resources Limited 

drilled and recovered 385 metres of 

unoxidized iron ore from 47 out of 51 

drill holes that tested the Clear Hills ooidal 

ironstone deposits in north-western Alberta. 

During 2010, Ironstone released a 

National Instrument 43-101 compliant 

report highlighting 140 million tonnes 

of indicated resource (33% Fe, 0.22% 

V2O4) and 63 million tonnes of inferred 

resource (33% Fe). In addition, Ironstone 

embarked on a multidisciplinary program 

to determine if commercial grades of precious 

metals exist in the ore body, and 

cited 240 million tonnes of coal (lignite) 

within the boundaries of the property. 

Ironstone’s 2011 expenditure forecast includes 

drilling 160 drill holes to expand 

resource. To March 2011, Ironstone completed 

144 diamond core holes (12,000 

metres total drilling) for further resource 

estimates and announced the successful 

completion of a bulk sample pit at 

its Rambling Creek property, which removed10,000 

tonnes of ore for beneficiation 

feasibility trials. 

Magnetite 

In south-western Alberta, Micrex Development 

Corporation continues to 

move towards mine permitting of the 

Burmis magnetite deposit. At full production, 

Micrex hopes to mine between 

20,000 and 40,000 tonnes of finished 

magnetite product per year. A 10-12 

year mine life is anticipated. Through 

public consultation, Micrex has revised 

their proposed production system to 

use no water, process 100 per cent of 

the raw ore, eliminate tailings issues 

and extended the life of the proposed 

mine. 

Industrial minerals 

In June 2010, Athabasca Minerals Incorporated 

received its second straight 

honour of being the top aggregate producer 

in Canada as published in Aggregates 

and Road Building Magazine. With 

industrial mineral land holdings in the 

Fort McMurray and Peace River areas 

of northern Alberta, Athabasca Minerals 

delivered some 6.6 million tonnes 

of aggregate. The company is also pursuing 

other industrial mineral commodities 

including silica sand, limestone, 

gypsum and salt. 

M 

D. Roy Eccles was formerly with the 

Alberta Geological Survey and recently 

accepted a position with Apex Geological 

Ltd. 

Gary V. White works for the Alberta 

Department of Energy, Coal and Mineral 

Development. 




Ensuring Growth Through 

Education 

The U of A has positioned itself as a trustworthy resource for high-quality 

By graduates Jen Reid with a depth of knowledge which will serve them well in future careers. 

By Jen Reid 

The University of Alberta’s 

School of Mining and Petroleum 

Engineering is a 

necessary element in the 

Canadian resource sector. 

The mining industry requires staff 

who are capable, industrious and forward-thinking 

to keep up with continued 

growth, and these engineers 

must be able to hit the ground running. 

Home to a mining program which has 

continued to grow through times of recession, 

the U of A has positioned itself 

as a trustworthy resource for high-quality 

graduates with a depth of knowledge 

which will serve them well in future careers. 

Forty graduates per year emerge 

with a Bachelor of Science in Mining Engineering, 

making the U of A program 

the largest mining program in Canada. 

While 50 per cent of students opt for 

the five year co-op program over the 

four-year traditional stream, all undergraduate 

students come through an intense 

and immersive period of study 

which combines lectures from six venerable 

and energetic professors, leadingedge 

facilities, and frequent input from 

practicing mining engineers. 

The School resides in the Natural Resources 

Engineering Facility, completed 

in 2004, which houses all mining-specific 

labs for the study of rock mechanics, 

instrumentation, mine waste, and surface 

mining, as well as computer labs 

with mining-specific software and peripherals 

to assist with mine design activities. 

Combining this modern equipment 

with industry-provided samples including 

oil sands, suspensions, dragline 

ropes, tires and core samples provides 

students with hands-on experience 

from the beginning of their careers. 

“The practical side gets students 

realizing, and developing. They see 

their errors in measurement and can 

grasp exactly why those errors occur,” 

says mining professor Tim Joseph, adding 

that he believes getting out of the 

lecture hall is vital to the education of 

young mining engineers. 

Each of the 140 current undergraduate 

students is trained to understand the 

depth and breadth of evaluation needed 

for each mining project, and must adapt 

to the extremely varied environments 

which each mine can present. The overall 

mining curriculum is designed to ensure 

the students emerge from the 

program as capable and responsible engineers 

with an understanding of the 

economic, legal, environmental and social 

aspects of the mining industry. The 

School and its students consistently exceed 

expectations from industry, government 

and academia. 

The Faculty of Engineering and the 

region’s mining organizations provide 

more and more support for events and 

competitions, opening up opportunities 

for research through financial awards, 

and presenting incentives to submit to 

online journals and magazines. Other 

elements include frequent site visits and 

debates between mining and environmental 

engineering students, opening 

up opportunity to explore current situations 

and technologies beyond the 

mathematical elements. 

The School of Mining and Petroleum 

invites a number of guest lecturers 

to provide their unique reflections. 

These speakers are highly experienced 

A class trip near Butte, Montana. August 2005. (Photographer: Doug Booth.) 

mining engineers from major organizations, 

expounding on everything from 

economics to efficiency. The team of 

mining engineering professors hopes 

these interactions will better guide their 

graduating students as they step into 

the mining industry, which may lose 

a great deal of the expert knowledge 

in the coming decade as many of their 

more seasoned colleagues step into retirement. 

Adjunct professors from around the 

world and across the disciplines provide 

their perspectives each year; as Komatsu 

area manager John Sammut says, 

they’re here to ensure the environment 

maintains its essential academic focus, 

but is enriched and, as he says, “flavoured 

with reality.” 

Supported by a professoriate who 

have been honoured with numerous 

career recognitions, distinguished service 

medals and teaching awards in the 

last year alone, students are increasingly 

encouraged to perform research at 

the undergraduate level—with increasing 

summer research programs available—and, 

if they choose, to continue 

into graduate study. 

The University of Alberta’s mining 

faculty members are often acknowledged 

by their peers in industry and 

academia for being pragmatic and enthusiastic 

researchers, instructors and 

citizens of the mining community. With 

their active research and knack for instructing 

in disciplines across the spectrum 

from rock mechanics, blasting, and 

materials handling to resource management, 

equipment development, mine 

planning, economics and environmental 

elements, no stone is left unturned. 


While some might assume the proximity 

of the oil sands might have a disproportionate 

influence on mining 

education in Alberta, School of Mining 

and Petroleum director Clayton Deutsch 

indicates a more well-balanced approach. 

“There’s no question—the oil 

sands are in our backyard, but our students 

go to do underground mining in 

Manitoba and Saskatchewan, diamond 

mining up in the Northwest Territories, 

and internationally. We’re giving mining 

engineering degrees, not oil sands mining 

engineering degrees. With some of 

the local case studies, anecdotes and 

speakers, students might see more of 

the oil sands and get more of it in their 

work terms, but our education is very 

well-rounded. The students are prepared 

to work in any type of mining.” 

But how do you create leaders? Ask 

the leaders themselves. 

When the School of Mining and 

Petroleum was absorbed into the Department 

of Civil and Environmental Engineering 

fifteen years ago, the Mining 

Industry Advisory Committee (MIAC) 

was born. Composed of top executives 

and highly-experienced managers from 

more than fifteen Canadian mining organizations, 

the committee is progressive, 

integrative and highly effective, 

and now provides a model for similar industry 

groups. It continues to be highly 

involved in providing resources, guidance 

and advice to the faculty and administration 

involved with the mining 

group and maintains an extremely solid 

record of ensuring summer and permanent 

employment for mining students in 

recent years. 

The committee plays a major role 

in developing the school’s curriculum. 

Keeping up with industry standards and 

developing technologies can be a challenge, 

but the focus is to ensure the 

education—at the undergraduate or 

graduate level—is modern and comprehensive. 

Deutsch indicates that along 

with the 100 per cent employment rate 

for new grads, the students and industry 

have found symmetry in the mining program. 

“Our students have never come 

back and say they didn’t get the education 

they needed,” says Deutsch. “We’re 

very cognizant of the entire lifecycle of 

a mining operation and ensuring our 

Taken near Hinton, Alberta at Cheviot Mine, prior to the mine going into production. 

September 2004. (Photographer: Jennifer Williams/Tim Joseph.) 

students are able to be slotted in wherever 

they’re needed.” 

If the University of Alberta’s firstplace 

result in this year’s Mining 

Games indicates anything, the program 

recruits, and delivers, the very 

best in the business. Reports from employers 

have confirmed over recent 

years that graduates from the program 

are equipped with the knowledge, 

tools and skills required by 

industry, and often stand out from 

the crowd even in the early years of 

their careers. Those graduates continue 

to give back, with several highly 

distinguished alumni—including several 

Canadian Mining Hall of Fame inductees—remaining 

involved with the 

current mining students through scholarships, 

sponsorship and seminars. 

With a recent Fraser Institute survey 

declaring Alberta as the world`s 

most attractive jurisdiction for mineral 

exploration and development and naming 

the superior infrastructure as a major 

element, the key now is to ensure 

the School of Mining and Petroleum Engineering 

maintains that distinction by 

progressing and producing the best possible 

mining engineers available. Talent 

is the most critical resource in any 

economy, and the University of Alberta 

continues to find ways to nurture it by 

providing the best possible resources 

and opportunities for its students. M 

Jen Reid is the communications assistant 

for the Department of Civil and 

Environmental Engineering and School 

of Mining and Petroleum Engineering 

at the University of Alberta. Reid 

is a graduate of the Bachelor of Communications 

Studies from University of 

Calgary and is also an experienced technical 

writer, web writer, videographer/ 

editor and graphic designer. 




Economic Impact of 

Alberta’s Mining Industry 

Mining in Alberta—a sunrise industry. 

The world’s largest truck—the Caterpillar 797— 

at work in the oil sands. (Photo courtesy of Finning 

Canada.) 

By Laura Severs 

Alberta’s mining sector 

has set its eyes on its 

share of the size of the 

prize. 

That prize, according 

to a recently released 2011 report 

from the Edmonton-based Alberta 

Chamber of Resources (ACR), is huge. 

In the report, the ACR task force on 

resource development and the economy 

forecasts that over the next 10 

years, development of Alberta’s resource 

basket—ranging from oil and 

gas, minerals and forestry—could 

add $700 billion in incremental GDP, 

just under four million person-years 

of employment and more than $110 

billion in provincial government revenue. 

“What we have here in Alberta 

is what the world will need for (at 

least) the next 30 years and a lot of 

it is mined here—the oilsands, coal, 

and sand and gravel—and we’re hunting 

for diamonds and uranium,” says 

ACR Executive Director Brad Anderson, 

who emphasizes that mining in 

Alberta is a sunrise, not a sunset, industry. 

“The Alberta Chamber of Resources 

firmly believes that natural resource 

recovery and development 

have a strong future and will remain 

the motor driving the Alberta 

economy and a mainstay of the Canadian 

economy,” says Anderson. 

With the natural resource sectors 

accounting for about 22 per cent of 

Canadian GNP and about 62 per cent 

of Alberta’s GDP in recent years, including 

direct and indirect impacts, 

Anderson expects that the task force 

report will help to guide an orderly 

and responsible development of natural 

resources in Alberta. 

Initial reaction to the report has 

been positive, with work already 

underway on some of its recommendations. 

That bodes well for Edmonton, 

adds Edmonton Economic Development 

Corp. (EEDC) President and CEO 

Ron Gilbertson. “We’ve clearly set 

ourselves as the service sector for the 

heavy oil and the mining sector. The 

procurement side, production work, 

and manufacturing are predominantly 

coming out of Edmonton,” says 

Gilbertson. “That has a very positive 

impact on the economy. That’s where 

we’re going.” 

That impact is already evident with 

employment levels bouncing back 

from the lows of the recent recession. 

When the heavy oil sector—and 

its significant mining component— 

took a hit from the economic downturn, 

Edmonton’s unemployment 

level more than doubled in just nine 

months. Now unemployment numbers 

are down to the 5.7 per cent 

mark and approaching the five-percent-level 

where Edmonton will be 

in a structural employment situation. 

“Once we hit around five per cent unemployment, 

it’s considered almost 

as full employment,” says Gilbertson. 

Factor in the oilsands, the world’s 

third-largest reserves of oil, and the 

outlook for the future of the mining 

sector is even stronger. 

Over at Finning Canada, a division 

of Finning International Inc., the 

world’s largest Caterpillar equipment 

dealer, the mining sector is helping to 

drive the company’s Edmonton headquarters 

to new heights. Substantially 

improved profitability in Finning’s 

Canadian operations played a role in 

Finning International recording a 32 

per cent increase in revenue—at $1.3 

billion—in the first quarter of 2011 

compared to the first quarter of 2010. 

“We have a very optimistic outlook 

across our region, specifically in Edmonton 

with commodity prices and 

the demand for commodities increasing,” 

says Finning Canada Mining Vice 

President Gordon Finlay. “We look to 

help our customers achieve the lowest 

cost per ton in their mine operations. 

As a result, the demand for our 


services is growing. We see a huge opportunity 

for us to hire and develop 

more people to serve the industry.” 

Finning is looking to recruit an 

additional 400 heavy equipment technicians 

by 2012. 

In Canada, it employs 1,000 people 

in Edmonton, another 800 in the oilsands, 

and a total of 4,000 employees 

across western Canada, including 

more than 100 employees at the Ekati 

diamond mine in the Northwest Territories 

but which are also supported 

from Edmonton. 

“Edmonton, thanks to its central 

location, is well-situated to serve mining 

activity in western Canada,” adds 

Finlay, “And it’s one of our strategic 

goals to grow our mining business.” 

Meanwhile at OEM Remanufacturing, 

a Finning supplier, the future is 

looking bright. 

“Business is going strong and we 

are growing rapidly. We have hired 

about 55 people in 2011. We have 

hired 110 in people in 2010 and we 

expect to continue to hire another 

50 people this year,” says Craig Priddle, 

president and CEO of OEM, which 

is based in Edmonton. The company 

employs 520 people and is one of 

North America’s most advanced engine 

and powertrain component remanufacturing 

operations. “The level 

of activity in mining is what drives our 

growth. We expect to double in size 

over the next five years.” 

OEM’s expansion and hiring is 

based on a fair expectation of what 

the company thinks will happen. But 

they’re preparing for the possibility 

that they may have to double in size 

over the next three years. 

M 

Laura Severs is an Edmonton-based 

freelance writer whose work has appeared 

in newspapers, on websites 

and in magazines across Canada. For 

five years she was the Edmonton correspondent 

and reporter for the Calgary-based 

Business Edge newspaper. 

Severs also has a strong grounding in 

the new media sector, having worked 

on the editorial side of the team that 

introduced the Canada.com website 

now under the control of the Postmedia 

Network. 

She currently specializes in business, 

technical and travel writing. 

Unrivalled product support: Finning mechanic inspects Caterpillar D11 tractor ripper 

cylinder barrel. (Photo courtesy of Finning Canada.) 




Ironstone Resources’ Clear Hills Project 

Cementing Alberta as one of the world’s best places for resource development in minerals. 

By Andrew Reader 

In March 2011, the Fraser Institute 

announced that Alberta has 

surpassed Quebec as the world’s 

most attractive jurisdiction for 

mineral exploration and development, 

citing its resource-friendly government, 

competitive taxation regime and 

superior infrastructure as a few of its notable 

strengths. With over $70 billion in infrastructure 

development by Alberta’s oil and 

gas industry, the majority of the province is 

extremely amenable to mineral exploration 

and development. 

The oil and gas industry in Alberta has a 

history of exploration that spans over 100 

years, but the discovery of uranium mineralization 

at Rabbit Lake in 1968 changed 

much of the exploration focus in Alberta towards 

mineral exploration within the Athabasca 

Basin. More recently, the discovery of 

kimberlite pipes throughout Northern Alberta 

in the 1990s renewed the mineral exploration 

focus in Alberta. However, while 

the prospectivity for kimberlites and uranium 

in Alberta is well known, the existence 

of a significant open pit-mineable iron ore 

deposit remains largely unrecognized. 

Ironstone Resources Ltd. is a privately 

held Canadian exploration and development 

company with a resource portfolio 

focused on mineral exploration within Alberta. 

Headquartered in Calgary, Alberta, 

Ironstone has a significant land position in 

the Clear Hills region of northwest Alberta, 

which contains a world-class iron ore and 

vanadium deposit. The company is currently 

active in development of the Clear Hills 

ironstone deposit, recently completing a 

12,000 metre drilling program to increase 

its NI 43-101 compliant resource from 203 

million tonnes to 500 million tonnes. 

The Clear Hills ironstone deposit is located 

approximately 490 kilometres northwest 

of Edmonton. The deposit was originally 

discovered in 1924 by local trappers in the 

region, but was not seriously explored until 

its rediscovery in the early 1950s after the 

drilling of an exploratory oil and gas well 

which penetrated the iron-rich sandstone. 

Extensive exploratory drilling was completed 

in the late 1950s and early 1960s to delineate 

the deposit, and in 1980 the Alberta 

government assigned a resource of 1.124 

billion tonnes grading approximately 34 

per cent Fe (not fully NI 43-101 compliant). 

The size of this deposit makes it the largest 

known iron deposit present in the western 

provinces of Canada. Recent analytical work 

on the ore identified the existence of approximately 

0.22 per cent vanadium pentoxide 

(V₂O₅) in addition to the iron, which 

would represent a potential in-situ resource 

of 5 billion pounds of V 2 

O 5 

. 

Ironstone completed a 51-hole drilling 

program in the winter of 2008 on the Rambling 

Creek block at the northern end of the 

deposit which, in combination with the historic 

drilling through the 50s and 60s, was 

used to determine an NI 43-101 compliant 

resource of an indicated 139.6 million 

tonnes grading 33 per cent Fe and 0.21 

per cent V 2 

O 5 

, and an inferred 62.8 million 

tonnes grading 33.7 per cent Fe. The Rambling 

Creek block at the northern end of the 

deposit currently hosts the largest compliant 

vanadium resource in North America at 

646 million pounds of V 2 

O 5 

. 

In the winter of 2011 Ironstone completed 

a 144-hole drilling program to the 

south of the Rambling Creek block in order 

to expand the iron and vanadium resource 

on the Clear Hills property. The company 

expects to release its second NI 43-101 

compliant resource by September 2011, 

raising the total compliant iron and vanadium 

resource in the Clear Hills to 500 million 

tonnes. 

In addition to the drilling, Ironstone 

opened a 45,000 tonne bulk sample pit 

from which 10,000 tonnes of ore were extracted 

and stockpiled for process and pilot 

plant trials to be completed through 2011. 

The company will be producing a direct reduced 

iron product with over 90 per cent 

iron metallization along with a vanadium 

pentoxide co-product. The robust grain enlargement 

process deports away contaminants 

like phosphorus and silica from the 

nearly pure iron, while permitting extraction 

and concentration of the increasingly 

important vanadium commodity. 

The Clear Hills deposit is considered to 

be mineable through low cost and low impact 

open-pit mining methods. Due to oil 

and gas development in the Clear Hills, 

there is excellent local infrastructure including 

nearby gas pipelines for energy, coal for 

iron processing, roads into the mine site, 

and access to nearby rail for transportation 

to Pacific Rim and North American steel 

producers. 

Ironstone’s Clear Hills iron and vanadium 

project is expected to have an economic 

impact on the scale of the oilsands, 

clearly cementing Alberta as one of the 

world’s best places for resource development 

in minerals, alongside it’s rich heritage 

as Canada’s energy hub. 

M 

Andrew Reader is a recent graduate 

from the University of Calgary with a focus 

on mineral exploration, and is currently employed 

by Ironstone Resources Ltd. 

Completed bulk sample pit in March 2011. (Photo courtesy of 

Dan Christal.) 

Late-stage construction of bulk sample pit in March 2011. 

(Photo courtesy of Dan Christal.) 


Canadian Mining Magazine 13 

Alberta Mining

Workplace Diversity: 

A core value at Suncor Energy. 

By Lindsay Forcellini 

An increasingly competitive 

labour market is affecting 

all industry sectors, 

but particularly those that 

rely on skilled trades and 

highly educated professionals. The Canadian 

mining industry, with its strong 

commodity market and current growth 

projections, is particularly vulnerable to 

labour shortages. 

In addition, the industry is facing a 

demographic challenge; an aging population 

means that in the next 10 years 

alone, 40 per cent of the mining workforce 

will be eligible for retirement, driving 

the need for approximately 100,000 

new workers by 2020, according to 

MiHR’s latest labour market information 

report, Canadian Mining Industry 

Employment and Hiring Forecasts 2010. 

In Canada’s oil sands alone, employment 

is expected to double from 12,000 

to 24,000 by 2020, says Anne Marie 

Toutant, vice president of mining operations 

for Suncor Energy, located in Fort 

McMurray, Alberta. 

Diversity is an integral component of 

the HR solution and falls under one of 

Suncor’s four areas of operational excellence—people. 

“People are at the heart of each 

piece of equipment you operate, so for 

us, having an engaged, competent and 

effective team of people is really important,” 

Toutant explains. 

Attracting and retaining non-traditional 

sources of talent that have previously 

been under-represented in mining 

is critical to ensure the necessary people 

and skills are available in the short and 

longer term for the sustainability of the 

industry. 

But for Toutant, addressing the HR 

challenge is merely one advantage of 

building a diverse workforce. 

“We believe that better business 

decisions are made when a team is 

comprised of people who come from 

different backgrounds, have different 

Diversity is an integral component of Suncor’s HR solution. (Photo courtesy of MiHR.) 

educational training and different problem 

solving techniques,” affirms Toutant. 

“With that kind of diversity, you bring a 

unique view of the challenges and a 

more thorough and robust approach to 

finding solutions.” 

Diversity in thinking 

There are many opportunities to revitalize 

the workforce and diversify 

the potential talent pool. A number of 

groups that are currently under-represented 

in the mining industry, yet available 

in the general labour force include 

women, youth, new Canadians, Aboriginal 

peoples and workers from comparable 

industries that have experienced a 

downturn. 

MiHR plays a key role in taking on 

this challenge. Last summer, the Council 

received $850,000 in funding from 

Human Resources and Skills Development 

Canada for its new diversity research 

project, SHIFT: Changing the Face 

of Canada’s Mining Industry. The project 

will be developed over the next three 

years and includes a number of outcomes 

to reduce barriers to workplace 

diversity. The Take Action for Diversity 

report, published in May 2011, is one 

deliverable of the SHIFT initiative. The 

report was developed to assist employers 

in their efforts to attract and retain 

staff from specific pools of talent, including 

Aboriginal peoples, youth, women, 

new Canadians, mature/transitioning 

workers, and persons with disabilities. 

It provides valuable insight on the perspectives 

of members of these key target 

groups and aims to expand upon 

existing research by exploring industryspecific 

barriers to their inclusion in Canada’s 

mining industry. 

Suncor is a company that is making 

strides in workplace diversity. It recruits 

from seven to eight universities across 

Canada to tap into the full spectrum of 

talent students can offer. 

In 2010, about 6.4 per cent of Suncor’s 

mining workforce self-identifies as 

Aboriginal, which is just shy of the industry 

average of 6.5 per cent. Toutant says 

Suncor also encourages an open dialogue 

with Aboriginal communities by 

inviting elders to visit the mine site to 

share their knowledge about the local 

environment and cultural practices. 

Suncor is a strong supporter of the 

National Aboriginal Achievement Foundation, 

which provides pre-trade bursaries 

to help Aboriginal people achieve 

high school credentials or skill upgrades 

to enter trades professional careers. 

Suncor also supports Women Building 

Futures, a pre-trades program for underemployed 

or unemployed women, 20 

per cent of which are Aboriginal. This 

program provides an entry skill set for 

candidates to enrol in an apprenticeship 

program. 


Diversity is an important factor at 

all levels of an organization and Suncor 

is creating opportunities for female 

leaders to network, explains Toutant. 

Women make up about 22 per cent of 

the mining professional or staff positions 

and 12.4 per cent of the total workforce, 

with 60 women holding management or 

senior management positions at the Oil 

Sands facility. 

Partnering with the Suncor Energy 

Foundation in 2010, Suncor invited female 

leaders to participate in a Famous 

5 Speaker series, allowing them to share 

their experiences and providing opportunities 

for them to partner together. 

In 2011 those same leaders were asked 

to bring other Suncor women to the 

Famous 5 Speaker series. Suncor’s Taking 

the Stage workshop is an interactive 

session which enhances women leaders’ 

confidence by making them comfortable 

in the spotlight, unlocking the 

power of their voices, creating strong 

scripts and stories and achieving dynamic 

presence. 

A core value 

Enhancing workplace diversity offers 

many benefits, but it can be challenging. 

Toutant’s advice: Don’t get caught up in 

the numbers. 

“It’s important to know where you 

are and be focused on building toward 

a new future, but our aim is to get the 

best person for the job all of the time,” 

Toutant explains. “If you hold [diversity] 

as a core value, you have fewer pitfalls.” 

MiHR is committed to supporting 

the industry’s ability to actively engage 

non-traditional sources of labour 

and its newly-funded diversity project 

is poised to tackle this challenge 

and offer industry-wide benefits. Building 

upon MiHR’s previous work, Mining 

for Diversity (available at www. 

mihr.ca), SHIFT will address technology 

and intergenerational workforces, barriers 

to workplace diversity and best 

HR practices to increase Aboriginal inclusion 

in mining. 

M 

For more information on SHIFT, 

please contact MiHR’s Director of Attraction, 

Retention and Transition, Melanie 

Sturk at msturk@mihr.ca. 


Upcoming Events 

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Transaction Report 

Equinox acknowledges Barrick takeover offer 

successful and declared unconditional 

Equinox Minerals Ltd. announced on June 1, 2011 that 

729 million common shares of Equinox representing approximately 

83 per cent of the outstanding Equinox Shares on a 

fully diluted basis have been deposited into the offer by Barrick 

Gold Corporation to acquire all of the Equinox Shares at 

a price of C$8.15 per Equinox Share by way of a takeover bid. 

All of the conditions of the offer have been satisfied and 

Barrick has taken up all such deposited shares and will pay for 

all such shares by June 6, 2011. Barrick and its affiliates now 

collectively own about 747 million Equinox Shares, representing 

approximately 85 per cent of the outstanding Equinox 

Shares on a fully diluted basis. 

The offer has also been extended to enable the remaining 

Equinox shareholders to receive prompt payment of C$8.15 

(cash) per Equinox Share. Barrick will take up and pay for any 

Equinox Shares validly tendered within three business days of 

such tender. Barrick intends to acquire all Equinox Shares not 

tendered to the offer following its expiry pursuant to a compulsory 

acquisition or a subsequent acquisition transaction. 

The offer is now open for acceptance until 5:00 p.m. on 

June 14, 2011, unless the offer is further extended. Barrick 

expects to mail a formal notice of extension shortly. 

Equinox Minerals Ltd. is an international mining company 

dual-listed on the Canadian (Toronto) and Australian stock exchanges. 

Selwyn announces completion of acquisition of 

ScoZinc Ltd. 

Selwyn Resources Ltd. announced on June 1, 2011 the acquisition 

of all the assets of ScoZinc Ltd., including the Scotia 

Mine in Nova Scotia, through the purchase of all the shares 

of ScoZinc. As previously announced, the purchase price for 

ScoZinc was CAD$10 million, including certain payments 

made to the province of Nova Scotia related to increased 

bonding requirements for an amended reclamation and closure 

plan for the Scotia Mine and production royalties. 

“The completion of the acquisition of the shares of 

ScoZinc Ltd. marks a turning point, as it provides an early opportunity 

for Selwyn to join the ranks of the producers,” Dr. 

Harlan Meade, president and CEO of Selwyn, says of the acquisition. 

“The projected cash flows from the re-start of the 

Scotia Mine expected in early 2012 are strategically important 

to the securing of debt and equity for the development 

of the Selwyn Project that is being jointly advanced with its 

joint venture partner, Chihong Canada Mining Ltd., a wholly 

owned subsidiary of Yunnan Chihong Zinc & Germanium Co. 

Ltd. The commencement of production at the Scotia Mine 

should act as a catalyst for the revaluation of Selwyn and its 

Selwyn Project based on discounted future cash flows. Additionally, 

Selwyn is expanding its management team to undertake 

the re-start of the Scotia Mine, with the recent addition 

of several key senior management personnel as an important 

step in preparing for financing of the Selwyn Project.” 

Selwyn will shortly embark on the raising of US$30 million 

of debt financing to provide approximately US$20 million 

in re-start capital for the Scotia Mine and US$10 million 

in working capital. A new mine plan and economic model is in 

preparation to provide a more definitive estimate of operating 

costs and cash flow projections necessary for securing the 

approximate US$30 million for the resumption of operations 

at the Scotia Mine. 

Selwyn intends to resume definition drilling of known mineralization 

adjacent to the Main deposit in an effort to expand 

reserves and mine life. Drilling is also planned at the 

Northeast deposit after completion of drilling adjacent to the 

Main deposit. The Northeast deposit was initially permitted 

as a high grade underground mine. 

HudBay Minerals announces commencement of 

compulsory acquisition of remaining shares of 

Norsemont Mining 

HudBay Minerals Inc. announced on May 4, 2011 it is exercising 

its right under the compulsory acquisition provisions of 

the Business Corporations Act (British Columbia) to acquire 

all outstanding common shares of Norsemont Mining Inc. not 

already beneficially owned by it on the terms set out in its offer 

dated January 24, 2011, as extended (the “Offer”). Further 

details are provided in HudBay’s Notice of Compulsory 

Acquisition, which will be made available on SEDAR at www. 

sedar.com. 

Upon completion of the compulsory acquisition, HudBay 

intends to de-list the common shares of Norsemont from the 

Toronto and Lima stock exchanges and to cause Norsemont 

to cease to be a reporting issuer. 

As previously announced, HudBay has been successful 

in its bid to acquire Norsemont, having taken up a total of 

112,185,931 common shares of Norsemont validly deposited 

to the Offer, representing approximately 96.6 per cent of the 

issued and outstanding common shares of Norsemont not already 

owned by HudBay (on a fully-diluted basis). 

M 



Queenston discovers a new 

gold zone and updates drill 

results at Upper Canada 

Queenston Mining Inc. has announced 

results from an additional 44 

surface diamond drill holes (12,861 m) 

from the ongoing drilling program on 

the 100 percent owned Upper Canada 

property located in Kirkland Lake, Ontario. 

The drilling has expanded both 

the pit and underground resource potential 

and also resulted in the discovery 

of the new Northland Zone, it was 

announced June 7, 2011. 

The new drill holes are not included 

in the recent, initial mineral resource 

announced on the property 

that included an in‐pit indicated resource 

of 1,721,000 t grading 1.88 g/t 

(104,000 oz) and an in‐pit inferred resource 

of 1.273,000 t grading 1.86 

g/t (76,000 oz). The initial mineral resource 

also outlined an underground 

indicated resource of 238,000 t grading 

4.25 g/t (33,000 oz) and an underground 

inferred resource of 3,622,000 t 

grading 4.78 g/t (557,000 oz). The mineral 

resource estimate was prepared in 

accordance with NI 43‐101 by P&E Mining 

Consultants Inc. under direction of 

Qualified Person Eugene Puritch. 

Assay results from the recent phase 

of drilling are available at www.queenston.ca. 

“We continue to be pleased with 

the results at Upper Canada as drilling 

begins to extend the surface and 

underground resource potential. We 

are particularly excited with the new 

Northland Zone, where a significant 

width of gold mineralization has been 

discovered on surface north of the previous 

mine workings,” says Charles 

Page, president and CEO of Queenston. 

“The mineralization at Upper Canada 

remains open and drilling will continue 

with four rigs focused on building 

a larger resource on both the existing 

Junior 

Mining 

News 

and new gold zones. Upper Canada is 

a key ingredient in the company’s goal 

of advancing the Kirkland East Project 

towards feasibility and, ultimately, production.” 

“We continue to be pleased 

with the results at Upper 

Canada as drilling begins 

to extend the surface and 

underground resource 

potential.” 

Both shallow and deeper drilling will 

continue targeting both the open pit 

and deeper underground mineralization 

employing four drill rigs. The focus 

will continue along the main South 

Branch to further define and extend 

the open pit resource and the deeper 

C Zone. On the new Northland Zone, 

drilling will begin to step‐out both east 

and west along trend and a program 

of stripping and trench will expose 

the mineralization at surface. Drilling 

will also begin to test the potential for 

a bulk underground resource targeting 

the Upper L Zone. Past production 

from this zone totaled 439,000 ounces 

of gold from approximately 1,300,000 

t grading 11 g/t. The L Zone dips vertically 

and there remains a mineralized 

envelope measuring up to 40 m thick 

adjacent to the 2 m wide vein zone historically 

mined. If drilling can prove 

continuity, a potentially large tonnage 

underground mining scenario may exist 

at Upper Canada. 

Stornoway announces exploration 

drill program at Hammer property, 

Nunavut 

Stornoway Diamond Corporation has 

announced plans for an upcoming exploration 

drill program at the Hammer property 

located within the Coronation Gulf/ 

North Slave Diamond District of Nunavut. 

The Hammer property is a joint venture 

between Stornoway and North Arrow 

Minerals Inc. and hosts the Hammer kimberlite, 

which was discovered by prospecting 

in July 2009. The Hammer kimberlite 

has not yet been drill tested and the upcoming 

program will be designed to delineate 

its size and diamond content for 

the first time, it was announced May 25, 

2011. Concurrently, Stornoway intends 

to drill for the presence of additional undiscovered 

kimberlites associated with 

kimberlitic mineral trains that have been 

identified on nearby claims owned 100 

percent by Stornoway. 

Stornoway’s flagship property is the 

100 percent owned Renard Diamond 

Project in north-central Quebec, where 

a feasibility study and an associated environmental 

and social impact assessment 

are on track for completion in the 

third quarter of this year. On April 26, 

2011, Stornoway announced a $5.6M 

budget for complimentary grass roots exploration 

at several additional projects 

within Canada where the potential exists 

for new kimberlite discoveries. The 2011 

Hammer drilling represents an expenditure 

of $1.3M within this exploration program. 

The Hammer Property is located approximately 

500km north of Yellowknife, 

Northwest Territories and was acquired 

by the joint venture in October 2008. The 

Hammer kimberlite was first identified 

as a topographic anomaly at the head of 

a kimberlitic indicator mineral train with 

strong diamond inclusion chemistry. 

The goal of the program will be to delineate 

the true size and shape of the 

body, test for multiple phases of kimberlite, 

and collect sufficient samples to permit 

an estimate of diamond content. 

Stornoway Diamond Corporation is 

one of Canada’s leading diamond exploration 

and development companies, 

involved in the discovery of over 200 

kimberlites in seven Canadian diamond 

districts. 

M 


Tools of the Trade 

Yaskawa Releases the A1000 Variable Speed Drive 

The Drives & Motion Division of 

Yaskawa America, Inc. announces the 

release of the A1000 variable speed 

drive, a full featured drive, providing 

outstanding quality, performance, flexibility, 

and environmental friendliness 

through 1000HP. For new installations 

or retrofits, the A1000 provides a single 

robust solution, regardless of your 

application. 

Exceptional quality is the hallmark 

of Yaskawa products. This is demonstrated 

no better than in the new 

A1000, having a calculated design life 

that is twice as long as previous generations. 

Compatibility with interior 

and surface permanent magnet motors 

provides highly efficient, precision 

control with incredible performance, 

producing up to 200 per cent torque 

with or without feedback. 

User-friendly configuration tools, including a multi-language 

LCD display, parameter storage, application presets, 

and a portable USB copy unit make programming and configuration 

simple. DriveWizard® computer software delivers 

configuration, monitoring, and trending functions enhanced 

by direct connectivity through the A1000’s standard USB port. 

A significant quantity of control points 

are included as standard. For applications 

requiring more functionality, the 

A1000 offers three expansion ports for 

additional I/O, feedback, and network 

communications, including DeviceNet, 

EtherNet/IP, Modbus TCP/IP, Profibus- 

DP, PROFINET, and MECHATROLINK-II. 

Embedded applications functions, such 

as PID control, droop control, and function 

block programming provide system 

level control without the use of a standalone 

controller. 

Energy efficiency is maximized with 

variable speed control, and A1000’s integrated 

DC reactors reduce harmonic 

demand from the power system, contributing 

to a cleaner environment. 

Additionally, all materials used in the 

A1000 comply with the directive for 

Restriction of Hazardous Substances 

(RoHS). 

The A1000 drive is available in 200-240VAC Three Phase 

50/60 Hz (up to 175 HP), 380-480VAC Three Phase 50/60 Hz 

(up to 1000 HP), and 500-600VAC Three Phase 50/60Hz (up 

to 250 HP) ratings. In addition, the A1000 is designed for use 

around the world, and carries agency certifications for all major 

geographical regions. 


Introducing the New 

IMPACTO® DRYRIGGER’s Gloves 

Impacto Protective Products Inc. 

specializes in design, manufacturing 

and distribution of custom ergonomic 

products to help prevent cumulative 

trauma and repetitive strain injuries. 

One of the latest innovative products 

added to the Hand Protection 

Line is the DRYRIGGER, #WGRIGG. 

Durable design, oil and water resistant 

gloves help prevent hairline 

fractures, bruising and pinched fingers; 

protect the hand and fingers 

from impact and abrasion; designed 

to ensure excellent dexterity, fit and 

comfort. Ultimate hand protection to 

prevent finger pinching, severe cuts, 

abrasions and crushing injuries. The 

New IMPACTO DRYRIGGERs work extra 

hard to ensure protection! 

Features and Benefits: 

• Neoprene cuff offers excellent fit; 

• High-visibility yellow laminated 

fabric on the back of the hand 

repels oil and water; 

• Ultra Suede fabric in the palm 

repels oil and water; 

• Under layer of PVC nitrile offers an 

extra barrier of protection in oily 

conditions; 

• Silicone dots on the palm and 

fingertips provide excellent grip; 

• Heavy duty TPR padded across 

the knuckles ideal for confined 

spaces; 

• Heavy duty TPR on back of 

fingers, thumb & back of the 

hand protects against bruises and 

bumps; and 

• Durable patches in the webbing 

area assure long wear. 

Abitibi Geophysics contributes to 

Galahad Metals’ discovery of auriferous 

deposits 

Through the use of a new and better performing 

approach than conventional methods, 

Abitibi Geophysics has contributed to the discovery 

of a geophysical anomaly surveyed at 79.4g/t 

Au per 3.6 meters on the Regcourt property belonging 

to Galahad Metals located east of Val 

D’Or. 

The new H2H-3D-IP Approach 

The experience acquired by Abitibi Geophysics 

over the past 27 years in induced polarization 

drilling has uncovered a new and better 

performing approach in mineral exploration: 

the hole-to-hole IP technique with 3D modelling 

(H2H -3D-IP). 

The H2H-3D-IP radius of investigation is not 

dictated by the depth of the hole but by the spacing 

of the holes instead. A localized target near, 

or under the edge of the hole can easily be detected 

whereas with conventional methods, 

sensitivity declines toward the end of the hole. 

Because the technique is less sensitive to geological 

noise (in-hole type mineralization) than 

conventional techniques, it results in an improved 

resolution for signatures from distant sources. 

A 3D image of causative sources is produced 

using simultaneous inversion of information gathered 

in each of the pairs of holes. 

For more information contact: Abitibi Geophysics: 

Mr. Pierre Bérubé, Eng. and President: 

819 874-8800, www.ageophysics.com. 


News Watch: 

The North 

NORTHWEST TERRITORIES 

Northwest Territories Energy 

Report offers opportunities 

to develop alternative energy 

sources 

The Northwest Territories (NWT) 

Energy Report, released May 19, 2011 

by the Ministerial Energy Coordinating 

Committee (MECC), highlights opportunities 

to develop alternative energy 

sources, reducing the high cost of energy 

in the territory and an overview of GNWT 

energy projects and programs. 

“Early in the mandate of the 16th 

Legislative Assembly, our government 

made an unprecedented $60 million 

commitment to address energy issues 

in the NWT,” says Minister Bob McLeod, 

chair of the MECC. “The NWT leads the 

country in the installation of commercial 

wood pellet boilers, we have invested 

millions of dollars in energy conservation 

and efficiency programs and we continue 

our efforts to develop local sources of 

energy supply for communities.” 

The NWT Energy Report includes current 

information regarding a number of 

initiatives outlined in the NWT Energy 

Plan (2007), the NWT Greenhouse Gas 

Strategy (2007) and the Energy Priorities 

Framework released by the MECC 

in 2008. Also included in the report is an 

environmental scan of energy resources, 

development and use in the NWT and 

details on GNWT investment in energy 

programs and initiatives. 

By reducing imported fossil fuels and 

mitigating the environmental impacts of 

energy use, the GNWT is taking action to 

maintain an environment that will sustain 

present and future generations, a 

key goal of the 16 th Assembly. 

NUNAVUT 

Kivalliq presented with 2011 

Environmental Excellence Award 

by the KIA 

Kivalliq Energy Corporation is the recipient 

of the 2010 Environmental Excellence 

Award, presented by the Kivalliq 

Inuit Association (KIA). The company 

has been acknowledged for outstanding 

environmental stewardship at Kivalliq 

Energy’s Angilak Property in the Kivalliq 

Region. 

Kivalliq also congratulates Allison Rippin 

Armstrong, the company’s permitting 

and environmental consultant, who was 

jointly awarded the Mike Hine Award, 

in recognition of an individual who has 

made significant contribution to the mining 

industry in Nunavut. 

The awards were presented to both 

Jeff Ward, President of Kivalliq Energy 

Corporation and Allison Rippin Armstrong 

at the 2011 Nunavut Mining Symposium 

from April 5 -7, 2011 in Iqaluit, 

Nunavut. 

YUKON 

National Energy Strategy 

documents unveiled at Northern 

Premiers’ Forum 

Territorial Premiers met April 28, 2011 

to discuss issues of importance to northerners 

and all Canadians. The Northern 

Premiers’ Forum provides premiers with 

the opportunity to consider issues of 

common concern and develop northern 

solutions. 

Premiers discussed the Canadian 

Energy Framework currently being developed 

by federal, provincial and territorial 

Energy Ministers. Premiers 

agreed that establishing a shared vision, 

common principles and objectives 

will strengthen the efforts of all Canadian 

jurisdictions to work together. 

They noted the importance of a national 

energy strategy that reflects Canada’s 

unique energy challenges and opportunities 

from coast to coast. 

Two pan-territorial documents were 

released at the forum: the Pan-Territorial 

Adaptation Strategy (PTAS) and the Pan- 

Territorial Renewable Energy Inventory 

(PTREI). These papers will be an important 

contribution to the national discussion 

on Canada’s Energy Framework. 

The PTAS describes the challenges 

and goals of Canada’s three northern 

territories in addressing climate change. 

Yukon, Nunavut and the Northwest Territories 

agreed to share knowledge and 

best practices to address areas of concern 

for adaptation to climate change in 

Arctic regions. The territories will continue 

to work with Aboriginal governments 

and organizations and the federal 

government to ensure measures being 

taken in the three territories are 

coordinated between all levels of government. 

The PTREI identified ongoing 

efforts and opportunities in all three 

territories to shift to local and renewable 

energy supplies. Each territory continues 

to expand its use of renewable 

energy in ways that reduce the cost of 

providing energy to residents, communities, 

businesses and industry. Sharing 

of practices and experiences identified 

in this inventory strengthens knowledge 

of how to increase the supply of renewable 

energy. 

M 


Castle Resources to rehabilitate 

17 km tunnel at its Granduc Mine 

Procon Mining Partnership has been 

contracted to rehabilitate the 17 km 

Tide Tunnel at its Granduc Mine, British 

Columbia, with a proposed completion 

target of fall 2011, Castle Resources Inc. 

announced May 26, 2011. 

The Tide Tunnel connects the historic 

Granduc mine and mill site to a 51 km 

long road which leads directly to a yearround 

deep sea terminal in Stewart, BC. 

Rehabilitation of this tunnel will facilitate 

a more aggressive year-round drilling 

strategy as Castle seeks to prove up 

a significant copper resource and ultimately 

bring the Granduc mine back into 

production. 

Procon’s mandate is to re-establish 

tunnel ventilation, install bolts, mesh 

and shotecrete as required, determine 

quality of existing steel sets and replace 

where necessary and prepare the tunnel 

for the efficient movement of men 

and equipment. In addition, Procon 

will be rehabilitating select areas of the 

mine workings in preparation for the 

underground drill program. 

“The rehab of the Tide Tunnel is a 

key step forward for Castle Resources,” 

says Mr. Mike Sylvestre, president and 

COO. “Not only will it permit year-round 

underground access to drill stations but 

it will provide pre-development access 

and intelligence on the mine infrastructure 

which will be critical to the restart 

of the mine.” 

Yellowhead Mining 

Incorporated: drill hole HC11-87 

returns best intersection to date 

at Harper Creek 

Yellowhead Mining Inc. announced 

May 27, 2011 that Hole HC11-87 returned 

242.52 m of 0.39 Cu, 1.6 g/t Ag 

and 0.037 g/t Au, including 33.45 m of 

0.65 percent Cu, 2.1 g/t Ag and 0.071 

g/t Au and 17.62 m of 0.96 percent Cu, 

4.5 g/t Ag and 0.069 g/t Au. 

“Hole HC11-87 is the best hole 

drilled on the property to date considering 

width and grade, with 242.52 m 

grading 0.39 per cent Cu. This width of 

mineralization lies entirely below the 

pit limit established in the Preliminary 

Economic Assessment (PEA) and shows 

the potential to increase resources at 

depth within the pit outline,” says Ian 

Smith, CEO. “Holes HC11-85 and HC11- 

86 also demonstrate the potential to 

expand the resource to the north down 

dip and to the east along strike from the 

pit limit established in the PEA.” 

All core processing was undertaken 

by CME personnel. Drill core samples 

were analyzed for gold by fire assay 

with an AA finish and multi-elements 

by total digestion ICP-ES. Core samples 

returning greater than 2,000 ppm 

copper in the ICP-ES process were then 

assayed for copper. In addition to control 

samples inserted by CME, the analytical 

laboratory routinely inserted 

their own control samples, which consisted 

of standards, blanks and sample 

repeats. 

Happy Creek’s geophysical 

surveys identify new targets in 

Highland Valley B.C. 

Happy Creek Minerals Ltd. has received 

final results of a three dimensional 

induced polarization (3D IP) and 

magnetic geophysical survey performed 

on its Rateria property in the Highland 

Valley area, B.C., Canada. 

The geophysical surveys were performed 

by SJ Geophysical Consultants 

Ltd., of Vancouver, B.C., and covered approximately 

seven square kilometres in 

area that is located to the south of the 

company’s Zone 1 where drilling is currently 

underway. The 3D IP survey can 

obtain quality data to over 400 metres 

below surface in areas where extensive 

glacial till limited previous survey 

effectiveness. The recent surveys covered 

prospective geology, several copper 

prospects, positive copper values in 

stream sediment and over 90 per cent 

of the area is covered by glacial till. 

Results include large scale and positive 

chargeability values of six to 

greater than 13 milliseconds, with a 

background of around three milliseconds. 

In addition, low to moderate resistivity 

and low to moderate magnetic 

susceptibility are similar physical properties 

to where the company has previous 

success with drilling. One target 

News Watch: 

British Columbia 

area extends from the company’s Moss 

4 prospect southward for three kilometres 

and varies between 200 and 600 

metres in width and extends to over 

400 metres in depth. The Moss 4 prospect 

consists of a small outcropping 

copper zone, quartz vein boulders with 

up to 9.71 per cent copper in a grab 

sample, and stream sediment samples 

contain 971 and 575 ppm copper from 

the north and south end of the target 

area, respectively. These geochemical 

and geophysical results are thought to 

be very positive and reflect part of a favourable 

“corridor” that now extends 

over 8.5 kilometres through the property, 

with Zone 2 occurring at the north 

end. 

A second area of interest occurs 

around the Sho prospect that consists 

of a 15 metre long and 4 metre wide 

shear zone averaging 1.49 per cent 

copper and 8.4 g/t silver and is open 

in extent beneath glacial till. Historical 

percussion holes of around 40 metres 

in depth and located approximately 200 

metres west and 500 metres southwest 

of the Sho contain 0.10 per cent copper 

at the end of the hole and 6.0 metres 

of 0.38 per cent copper, respectively. 

Approximately one kilometre south of 

the Sho prospect, outcrop grab samples 

contain from 0.20 to 2.84 per cent copper 

and up to 12.8 g/t silver. 

M 


News Watch: 

Alberta 

Cleanup ongoing at pipeline leak northeast of 

Peace River 

The Energy Resources Conservation Board (ERCB) continues 

to work with Plains Midstream Canada, Alberta Environment 

and other appropriate agencies during cleanup 

efforts following a crude oil pipeline leak about 100 km 

northeast of Peace River on April 29, 2011. 

The break point of the pipeline has been isolated and 

there is no further flow of crude oil, ERCB announced May 

3, 2011. An estimated 4,500 m3 (28,000 barrels) of crude oil 

leaked and has collected along the pipeline’s 30-metre rightof-way 

and spread into nearby stands of stagnant water, 

where it is contained. 

Approximately 100 response personnel are on the scene 

working on containment, oil recovery, line repair and site remediation. 

Skimmers are collecting the oil from the water 

and soil cleanup preparations are underway. Staging areas 

are being established for separating oil and collecting waste 

from the site. There has been no migration of oil from the affected 

area, which is being fenced off. 

Plains Midstream staff confirmed the leak at 7:30 am on 

April 29. The leaked oil remains 300 metres from any flowing 

water or runoff. The nearest residence is more than seven 

kilometres away. Air monitors are in place at the site and 

have detected no hydrocarbon levels above Alberta Ambient 

Air Quality guidelines. There have been no injuries resulting 

from the incident and there is no threat to public safety. 

ERCB inspectors are at the site and an investigation is already 

underway. All appropriate authorities have been notified. 

Pipeline leaks in Alberta are rare. In 2009, Alberta’s pipeline 

industry set a record-low pipeline failure rate of 1.7 per 

1,000 kilometres of pipeline, bettering the previous recordlow 

of 2.1 set in both 2008 and 2007. 

New regulation helps enable carbon storage 

A new regulation establishes the process for companies 

to seek tenure rights to evaluate potential deep carbon 

storage sites for storing carbon dioxide, Alberta Energy announced 

April 28, 2011. The regulation for this greenhouse 

gas reduction technology will guide how large-scale carbon 

capture and storage projects will proceed in Alberta. 

Under the Carbon Sequestration Tenure Regulation, companies 

will apply for pore space tenure following the same model 

that is currently in place for petroleum and natural gas rights. 

Companies will need to continue to work with landowners to 

obtain surface access and the Energy Resources Conservation 

Board to obtain necessary approvals required by law. For example, 

these projects will need a well license before they can 

drill an injection well and an additional approval before they 

can begin commercial scale sequestration. Existing provisions 

available to landowners to intervene in the application process 

and to seek compensation remain. 

The regulation sets out several administrative details and 

processes that include: 

• Establishing a five-year evaluation permit to determine 

storage site suitability; 

• Establishing a 15-year sequestration lease for longer term 

commercial needs; and 

• Requiring permit and lease holders to submit monitoring, 

measurement and verification plans which must be 

approved by the Minister and updated every three years. 

Alberta sets single day land sale record 

The June 1, 2011 petroleum and natural gas land sale netted 

over $841 million and is the highest ever total from a land 

sale in the history of Alberta. This nearly doubles the previous 

high of $474 million set in December 2005. The sale also 

set a record for average price hectare of $3,110.85, surpassing 

the previous high of $2,185.03 set in July 2010. 

There were 390 parcels available for the sale. The top 

earner was a licence located north east of Rocky Mountain 

House which sold for over $106.5 million with an average 

price per hectare of $13,529.70. This parcel also bought in 

the highest ever bonus for a petroleum and natural gas parcel. 

The previous high was a petroleum and natural gas parcel 

sold on March 23, 2011 for over $96.5 million. Six of the top- 

10 all-time parcel were set on June 1. 

The record sale comes just months after the province 

set new records for calendar year ($2.39 billion) and fiscal 

year ($2.56 billion) sales as well as average price per hectare 

($2,185.03). 

M 


Boyd welcomes BHP Billiton 

relocation of management 

operations to Saskatoon 

Energy and Resources Minister Bill 

Boyd says BHP Billiton’s consolidation of 

the management of its Canadian mining 

operations in Saskatoon is great news for 

the province and further confirmation of 

the province’s robust mining industry. 

The company announced May 10, 

2011 it will be relocating its Diamond 

and Specialty Products business from 

Vancouver to Saskatoon. This division of 

the company has responsibility for BHP 

Billiton’s Saskatchewan potash projects, 

a diamond mine in the Northwest Territories 

and a mineral project in South Africa. 

Thirty positions are expected to be 

added to BHP’s Saskatoon office, which 

currently employs 69 people. The leadership 

team from Vancouver will be part of 

the move, including new Diamond and 

Specialty Products President Tim Cutt. 

“BHP Billiton has indicated its strong 

commitment to Saskatchewan and the 

major potash projects it is developing 

here,” Boyd says. “This relocation announcement 

underscores that commitment 

and the company’s desire to 

establish deep roots in our province.” 

BHP Billiton is one of a number of 

new companies involved in Saskatchewan’s 

potash industry, along with other 

international companies such as Vale 

and K & S Aktiengesellschaft. Boyd says 

the heightened interest in Saskatchewan 

potash shows an appreciation for both 

the rich and abundant resources here 

and the attractive business climate Saskatchewan 

offers for the industry. 

“Our existing potash producers are 

following through with more than $12.2 

billion worth of expansions to their 

existing mines over the next decade,” 

Boyd says. “Add to this the other projects 

on the drawing board by new companies 

and the future looks very bright indeed 

for our potash industry and, by extension, 

for the future of our province.” 

BHP Billiton is continuing to do feasibility 

work on its Jansen potash project 

near Lanigan. If the potash mine goes 

ahead, it would be the largest in the 

province. 

Saskatchewan major cities top 

economic growth in 2011 

The Conference Board of Canada released 

a report May 5, 2011 indicating 

Saskatoon and Regina will have the first 

and third highest economic growth rates 

in Canada in 2011. 

Saskatoon is forecast to have a 4.1 per 

cent increase in economic growth, the 

highest among major Canadian cities. 

Regina is expected to have a 3.1 per cent 

growth rate, ranking third in the study. 

“Increased economic activity in mining 

and energy will benefit the Saskatoon 

and Regina economies,” Enterprise Minister 

Jeremy Harrison says. “Saskatchewan 

has the edge over other regions 

of Canada and our resources are creating 

not only advantages for business but 

making us an attractive place for investors.” 

According to the report, Saskatoon, 

Edmonton and Regina are predicted to 

average the highest economic growth 

rates from 2012 to 2015. 

“With potash sales rising and a strong 

oil and gas industry, Saskatoon and Regina 

are major service locations that supply 

goods and expertise,” Harrison says. 

“We are encouraged that this positive 

trend will continue over the next three 

years, creating jobs, increasing investment 

and providing opportunities for local 

businesses.” 

PotashCorp invests $500,000 to 

grow next generation of skilled 

trades people 

Potash Corporation of Saskatchewan 

Inc. (PotashCorp) announced 

May 13, 2011 it will be donating 

News Watch: 

Saskatchewan 

$500,000 to the Saskatoon Trades and 

Skills Centre (STSC). The donation will 

be used to equip youth and adults 

with job-ready skills to enter Saskatchewan’s 

workforce. Bill Doyle, president 

and CEO of PotashCorp, made the announcement 

from the Centre’s 8,300 

square-foot industrial training facility, 

which has been renamed the “Potash- 

Corp Learning Lab” in honour of the 

donation. 

“Growing a new generation of 

skilled trades people is important 

to us,” says Doyle. “Right now, PotashCorp 

is investing more than $5 

billion to expand our mining operations 

across the province and we’ll 

be looking to fill hundreds of permanent 

jobs in our company. If we’re going 

to meet the challenge of feeding 

the world, we’re going to need talented 

and skilled people to make it happen.” 

A partnership organization between 

educational institutes and First 

Nations and Métis organizations, STSC 

works with industry partners to offer 

short-term training programs and 

skills courses to meet market demand 

and prepare young adults for 

careers in the trades. Approximately 

half of the centre’s students are 

Aboriginal and about 15 per cent 

are new Canadians. When these students 

complete STSC programs, they 

are skill-ready for jobs in the mining, 

manufacturing and construction sectors. 

On average, 80 per cent of STSC 

students successfully complete their 

programs, representing between 200- 

250 people each year. M 


News Watch: 

Manitoba 

Canada’s safest mines hail from 

Vale 

Vale’s steadfast commitment to health 

and safety was recognized by the mining 

industry May 31 when the John T. Ryan 

Trophy, honoring Canada’s safest metal 

mine, was awarded to the company’s T1 

and Birchtree Mines in Thompson, Manitoba. 

This marks the sixth time in seven 

years that a Vale mine has been designated 

the safest in Canada. 

Awarded by the Canadian Institute of 

Mining (CIM), the John T. Ryan Trophy 

goes to the metal mine with the lowest 

reportable injury frequency per 200,000 

hours worked in Canada. 

In a first for the award, T1 and Birchtree 

Mines tied for best safety performance 

in the country. 

“I could not be more proud of our employees 

for their performance in winning 

this award,” says John Pollesel, COO for 

Vale’s North Atlantic Base Metals operations. 

“It is because of our dedication to 

health and safety principles that we continue 

to be a national leader in this area.” 

Birchtree and T1 have decreased their 

respective medical aid frequencies by 

more than 50 per cent over the last five 

years. Equally impressive is the fact that 

neither mine has experienced a Lost-Time 

Injury (LTI) in nearly two calendar years— 

a span of 690 days for T1 and 662 days for 

Birchtree. 

Legislation introduced that would 

support economic development in 

Thompson 

Legislation has been introduced that 

would see the City of Thompson and Vale 

work together to create an economic diversification 

fund for the Thompson Nickel 

Belt region, Innovation, Energy and 

Mines Minister Dave Chomiak announced 

on June 3rd. 

“Vale’s announcement late last year of 

the closure of the smelter and refinery in 

Thompson by 2015 and the elimination of 

500 jobs has created a great deal of uncertainty 

about the future of Thompson,” 

Chomiak says. “The Thompson Nickel 

Belt Sustainability Act will ensure that 

Vale and Thompson continue working 

together to ensure value-added jobs can 

be maintained in the region.” 

Vale has already agreed to make payments 

in lieu of taxes in the amount of 

$6.25 million in 2011 and 2012. 

The province has supported the city 

and other key stakeholders on initiatives 

to strengthen and diversify the economy 

of Thompson and the region, says Chomiak. 

Manitoba and Vale both recognize the 

need to accelerate the economic diversification 

of Thompson with the pending 

closure of the smelter and refinery, says 

Chomiak. 

Chomiak announces $4.5 million 

to support three-year program 

Support for mineral exploration and 

mining in Manitoba continues with a 

$4.5-million, three-year extension of the 

Mineral Exploration Assistance Program 

(MEAP), Innovation, Energy and Mines 

Minister Dave Chomiak announced at the 

Prospectors and Developers Association 

of Canada Conference in March. 

“Renewing MEAP is a sound investment 

for our mining industry, 

communities and the economy,” says 

Chomiak. “MEAP attracts companies to 

explore in Manitoba, bringing investment 

dollars to the economy, creating jobs, 

adding to our geological knowledge base 

and increasing the potential to find new 

ore bodies that may be Manitoba’s next 

mine.” 

The three-year term for the $4.5-million 

program begins April 1. The program 

will provide funding of $1.5 million 

through one offering per year during the 

next three years. The general program 

provides assistance of up to 25 per cent of 

approved eligible expenses to a maximum 

of $200,000 per recipient per fiscal year. 

MEAP provides higher levels of assistance 

to encourage exploration in underexplored 

frontier regions and areas that 

need new discoveries to sustain existing 

communities such as Lynn Lake and Leaf 

Rapids, said the minister. 

With a progressive mining tax rate of 

10, 15 or 17 per cent based on profits and 

other mining tax incentives, Manitoba has 

among the most competitive mining tax 

regimes in Canada, said Chomiak. Manitoba 

increased the Mineral Exploration 

Tax Credit to 30 per cent in 2010, offering 

Manitoba taxpayers the most generous 

mineral exploration tax credit in the 

country. 

The province has been recognized nationally 

and globally as one of the best 

places for mineral exploration and mining, 

the minister added. For more than 

a decade, the Fraser Institute survey of 

mining companies has consistently rated 

Manitoba as one of the top 10 jurisdictions 

worldwide for mineral policies favourable 

to mining investment. M 


Vale and Xstrata announce 

agreement to Extend Fraser Mine 

Xstrata Nickel and Vale have announced 

a partnership to extend Xstrata’s 

Fraser Mine, north of the City of Greater 

Sudbury. 

“This is a great example of Sudbury’s 

two major mining companies coming 

together given current robust copper 

demand. This ultimately benefits both 

organizations, employees and the community 

at large,” says Marc Boissonneault, 

vice president of Xstrata Nickel’s Sudbury 

Operations. 

Under the terms of the Agreement, 

Xstrata Nickel will utilize its existing shaft 

infrastructure at Fraser Mine in Levack to 

mine mostly copper ore from a deposit 

of Vale ore bodies that are currently only 

directly accessible from Xstrata Nickel’s 

Fraser Mine head frame and supporting 

infrastructure. The project is expected to 

have a 10-year life and will result in the 

permanent recall of 75 production and 

maintenance workers back to Xstrata. 

Additionally, production at Vale’s Coleman 

Mine will be enhanced through the 

supply of increased fresh air ventilation 

from Xstrata. This will provide an immediate 

benefit of improved working conditions, 

and enable enhanced production 

and potential employment opportunities 

at Coleman’s 170 Ore Body mining project 

set to begin production in 2012. 

“This agreement generates significant 

benefits to both Companies and to the 

community as a whole by unlocking a resource 

that would not otherwise be productive”, 

said Jon Treen, general manager 

of Vale’s Ontario Operations. “It will lead 

to significant value generation and operational 

benefits for both companies for 

years to come.” 

Brigus Gold provides Black Fox 

Mine update 

Brigus Gold Corp. is pleased to provide 

an update on continuing progress at its 

Black Fox Mine. 

• The company expects the Black Fox 

Mine to produce between 16,500 and 

18,000 ounces of gold in the second 

quarter of 2011 (April to June). 

• The Black Fox Mine is expected to 

reach a steady state annual production 

level of 104,000 ounces of gold in the 

third quarter of 2011. 

• Ore production from both the Phase 2 

open pit and underground mine began 

at the end of March 2011 and has been 

ramping up since then. Commercial 

production from the Phase 2 open 

pit was achieved in April 2011 and 

underground production continues to 

ramp up with commercial production 

levels expected to be attained in June 

2011. 

• The company is currently mining 300 

to 400 tonnes per day (tpd) from 

the underground. Underground 

production is a combination of ore 

from the five mining stopes that 

are currently open and lower-grade 

development ore. Underground 

ore grades from the mining stopes 

are in line with the mine plan. 

Underground production, at an 

average grade of 6.2 grams per 

tonne (gpt), is expected to increase 

to 800 tpd by July and approximately 

1,000 tpd by year-end. The mine 

plan calls for 10 to 12 mining stopes 

to be available by year-end. 

• The Phase 2 open pit is currently 

providing 1,600 to 1,700 tpd of ore, 

at an average grade of 3.4 gpt, which 

together with underground production 

is maintaining the Black Fox Mill’s 

2,000 tpd throughput capacity. Open 

News Watch: 

Ontario 

pit ore grades are in line with the mine 

plan. Mining from the open pit will be 

reduced as higher-grade underground 

ore production increases through the 

year. 

“We are encouraged by the production 

growth at the Black Fox Mine,” says 

Wade K. Dawe, president and CEO of 

Brigus. “Increasing production levels and 

ongoing positive drilling results from our 

newly discovered 147 Zone confirm that 

we have turned the corner at Black Fox 

and set the stage for a positive second half 

of the year. We will reach steady state production 

of over 100,000 ounces annually 

in the third quarter.” 

In conjunction with the ramp up of 

underground production and ongoing exploration 

success, the company has commissioned 

an engineering study to review 

possible expansion scenarios for the Black 

Fox Mill. The results from this initial conceptual 

study will be provided before the 

end of June and will evaluate the opportunity 

for a multi-year phased increase in 

throughput from the current level of 2,000 

tpd to a Phase 1 level of approximately 

2,200 tpd and a Phase 2 level of approximately 

3,000 tpd. As part of the mill expansion, 

the implementation of a gravity 

circuit and additional leach capacity, are 

expected to improve the recovery rate as 

well as the overall production throughput 

capacity. 

M 


News Watch: 

Quebec 

Alexis initiates turnaround plan 

for Lac Herbin Mine 

Alexis Minerals Corporation announced 

on June 8, 2011 that it is 

launching the turnaround plan for the 

Lac Herbin mine. The plan involves the 

combination of intensive underground 

development, significant near mine exploration 

and the improvement of recoveries 

at the mill. 

Exploration work launched initially in 

the fourth quarter has focused on three 

potential zones near mine infrastructure, 

the BZ, FL and Apex zones. These 

zones are less than 300 metres from current 

underground infrastructure and 

have inferred mineral resources that are 

presently being drilled. 

Beginning June 6, 2011, an intensive 

underground development program has 

been initiated, with additional equipment 

and manpower being mobilized. 

The goal of this turnaround plan will be 

to increase operating flexibility by having 

a larger number of active stopes. The 

company’s current goal is to have up 

to five stopes available, which is an increase 

from the three stopes that operations 

were working with in 2010. Once 

this infrastructure is established, which 

should occur by the end of the third 

quarter, it is expected the operations 

should return to profitability with 2012 

production expected in the range from 

15,000 to 20,000 ounces leading to revenues 

from CAD $22 million to CAD $38 

million at current gold prices. 

Furthermore, as part of the turnaround 

plan, the company’s Aurbel mill, 

which has had year to date recoveries of 

89.3 per cent, is to be subject to certain 

improvements that aim to increase recoveries 

to 92 per cent. The Aurbel mill 

is located one kilometre to the east of 

the Lac Herbin mine. 

Alexis intends to maintain the current 

levels of drilling in order to expand its 

estimated mineral resources and to generate 

new exploration targets. Francois 

Perron, Alexis president and CEO, comments, 

“In a short period of time, our 

drilling efforts have been encouraging, 

and I look forward to reporting results as 

information becomes available. Pursuing 

the exploration program will improve 

our knowledge of the deposit to the east 

and to the west and potentially generate 

new targets for 2012 and 2013. The new 

plan will balance the production effort 

with the nature of the deposit and maximize 

flexibility for operations underground. 

This will allow operations to 

continuously adapt to the evolving nature 

of the veins we are mining.” 

Rio Tinto to invest $30 million in 

its Quebec refinery operations 

to supply growing demand for 

metal powders 

Rio Tinto a wholly-owned subsidiary 

of the Rio Tinto Group, announced on 

June 8, 2011 plans to invest $30 million 

to improve efficiency and increase capacity 

at its metal powders plant—part of 

its world class metallurgical complex in 

southern Quebec. 

The investment will be used to upgrade 

equipment and increase metal 

powder production capacity by more 

than 20 per cent over the next two 

years. Global demand for metal powders 

is driven mainly by the automotive 

sector where manufacturers are increasing 

their intensity of use to lower 

automobile weight and increase fuel efficiency. 

Metal powders are also used in 

the fabrication of home appliance and 

power tool components, welding rods 

and as food supplements. 

The upgrade and expansion will add 

10 new jobs to the company’s roster and 

significantly reduce the plant’s cooling 

water consumption. 

“We are investing in a strong future 

for RTFT, and believe this investment 

will also pay off for our customers, who 

rely on us for high quality products and 

services; and for our communities, who 

rely on us for good jobs, responsible environmental 

stewardship and ongoing 

contribution to the local economy,” says 

Dominique Bouchard, RTFT president. 

The investment is part of the company’s 

recently announced TiO2050, 

plan which calls for an investment of 

CAD$800 million to extend the life of RT- 

FT’s mine in northern Quebec—one of 

the world’s largest ilmenite deposits— 

and improve efficiency and throughput 

at its refining complex in southern 

Quebec. Ore extracted from mines in 

Quebec and Madagascar is refined into 

titanium dioxide feedstock, pig iron, 

steel, metal powders and other products 

at this complex. 

Century provides gold 

production update on the 

Lamaque Mine 

Century Mining Corporation announced 

on June 7, 2011 that its development 

plans for producing longhole 

stope ore from the North Wall at the 

Lamaque mine remain on target for July 

and will result in the planned noticeable 

increase in ore feed rates to the process 

plant for the third quarter. 

Stope ore mining at the Lamaque 

Project in the first half of 2011 has been 

restricted to the narrow vein structures 

within the Lamaque Flats, which has resulted 

in lower than planned tonnages 

and grades, as noted in the Q1-2011 production 

report. During this period the 

company’s development actions have 

been focused on accessing the targeted 

longhole tonnage ore reserves forecast 

in the North Wall area. Due to the 

excellent development rates provided by 

the mining contractor, CMAC, the mine 

is in a position to start longhole stoping 

in July. The North Wall ore targets due to 

their geometry are expected to provide 

a clear increase ore tonnage feed rates 

and in the grade versus those achieved 

to date, and by the end of the Q3-2011 

the company is targeting to be at the 

planned rate of 2,000 tonnes of ore per 

day. 

“The first half of 2011 has been an 

operational challenge with only mining 

access to the Lamaque Flats that has resulted 

in a lower than expected gold production 

from the Lamaque mine,” says 

Daniel Major, president and CEO of Century 

Mining Corporation. “Over the past 

months, the team at the mine has worked 

diligently to gain access to the longhole 

reserve targets in the North Wall area 

and expects to increase ore feed and gold 

production by mining these bulk tonnage 

stopes in July. We remain on track to 

achieving commercial production and the 

2,000 tonnes per day goal in the second 

half of the year.” 

M 


NEW BRUNSWICK 

SLAM completes $150,000 nonbrokered 

financing—funds for 

drilling gold, silver, and base 

metal deposits 

SLAM Exploration Ltd. announced on 

June 6, 2011 the completion of its nonbrokered 

private placement of 1,200,000 

flow-through units at a price of $0.125 

per Unit for gross proceeds of $150,000. 

Each Unit is comprised of one common 

share in the capital stock of SLAM issued 

on a flow-through basis and one-half (½) 

of one Common Share purchase warrant. 

Each whole Warrant entitles the holder 

thereof to acquire one non-flow-through 

Common Share at a price of $0.18 

per Common Share for a period of 12 

months and at a price of $0.36 per Common 

Share for an additional 12 months 

thereafter, expiring 24 months after the 

date of issuance. The Units are subject 

to a four-month and one day hold period 

from the date of closing. 

Norstar Securities LP placed all 

1,200,000 Units. Norstar received a cash 

fee of $10,500 and was issued 84,000 

finder warrants to acquire finder units; 

each finder unit consists of one common 

share in the capital stock of SLAM issued 

on a non-flow-through basis and onehalf 

(½) of one Warrant. All securities 

issued pursuant to the Offering are subject 

to a four-month and one day hold 

period from the date of closing. 

The proceeds of the Offering will be 

used to fund exploration on SLAM’s gold, 

silver and base metal projects in Canada. 

The Offering is subject to the approval of 

the TSX Venture Exchange. For further information 

please call Mike Taylor at 506- 

627-1353 or toll-free at 866-523-6719. 

NEWFOUNDLAND AND 

LABRADOR 

Calls for bids provide 

opportunities for future 

exploration and growth 

The 2011 Calls for Bids announced on 

May 13, 2011 by the Canada-Newfoundland 

and Labrador Offshore Petroleum 

Board (C-NLOPB) demonstrates a steady 

growing interest in the exploration opportunities 

and resource potential in 

Newfoundland and Labrador. 

“This year’s Calls for Bids show a significant 

interest by our industry partners 

in those areas of our province that 

to date have remained relatively unexplored,” 

says the Honourable Shawn 

Skinner, Minister of Natural Resources. 

“These parcels will lead to new exploration 

opportunities that may support 

future discoveries and the continued 

long-term development of our valuable 

resources.” 

The 2011 Calls for Bids consist of eight 

parcels of land in the Western Offshore, 

the Labrador Offshore, and the Flemish 

Pass/North Central Ridge regions. These 

areas have been previously assessed to 

identify any mitigative measures that 

may be required in relation to exploration 

activity on these parcels. The exploration 

rights to a total of 1,599,295 

hectares of land is up for bidding. The 

minimum bid for each parcel offered in 

the Labrador Offshore and the Flemish 

Pass/North Central Ridge regions is $1 

million. In the Western Offshore region, 

the minimum bid is $250,000. The 2011 

Calls for Bids provide the first public disclosure 

of new terms and conditions in 

the Western Offshore region. As a result, 

all offshore areas now have more 

flexible extension options. 

“In 2010, over $110 million in work 

commitments were received by the C- 

NLOPB bringing the total outstanding 

work commitments to almost $1 billion,” 

says Minister Skinner. “This provided 

a clear indication of the ongoing 

growth in exploration in offshore Newfoundland 

and Labrador.” 

Further details on the 2011 Calls for 

Bids can be found on the C-NLOPB’s 

website at www.cnlopb.nl.ca. The 

deadline to submit bids is November 15, 

2011 at 4:00 p.m. 

NOVA SCOTIA 

Road-building coalition upset 

by government’s plans to play 

a new and larger role in the 

industry 

A broad coalition of Nova Scotia 

road-building companies is asking the 

provincial government to reverse its decision 

to start its own road building and 

quarry operations. 

News Watch: 

Atlantic Canada 

“Government documents that came 

to light on March 11, 2011 reveal that 

bureaucrats have been secretly working 

for almost a year to create a Government 

Road Company,” said Grant 

Feltmate, the executive director of the 

Nova Scotia Road Builders Association 

(NSRBA). “The documents clearly show 

that the government has based its decision 

on dated, flawed and incomplete 

information that misrepresents our industry 

and how it operates. We don’t 

believe this plan will save the taxpayer 

any money.” 

The documents also indicate government 

will open pits and quarries on 

Crown lands as an essential part of its 

business plan. “Our members have invested 

millions of dollars in their pits and 

quarries. We were shocked to discover 

the government plans to open pits and 

quarries on Crown lands. As the roadbuilding 

industry is our largest Nova Scotia 

customer, this threatens our very 

livelihood,” says Scott Hoeg of the Mining 

Association of Nova Scotia (MANS). 

The documents also state the Government 

Road Company would ignore 

its own rules for hiring local independent 

truckers. In Nova Scotia, all provincial 

road-building contractors are required to 

use local truckers for 80 per cent of the 

work. This is designed to ensure there 

is a vibrant independent trucking sector 

throughout the province. “For many of 

our members, road-building work is essential 

for us to survive. This plan cuts 

us out of road-building work we are now 

doing,” says Wayne Onda, executive director 

of the Trucking Association of Nova 

Scotia. 

Ron Dunn, the president of the NS- 

RBA, says the industry is willing to work 

with government to meet its stated goal 

of getting maximum value for public 

money. “If the government’s goal is really 

to save the taxpayer money, we have 

lots of ideas that can help make this happen.” 

The Mining Association of Nova Scotia 

represents more than 100 companies 

and supports approximately 6,300 jobs, 

mostly in rural parts of the province. It 

contributes about $490-million to the 

provincial Gross Domestic Product. M 


Corporate Profile

Corporate Profile

Corporate Profile

Corporate Profile

Buyer’s Guide 

Air Carrier Services 

Wings Over Kississing..............................................20 

Bore Hole Survey and Supply 

Icefield Tools............................................................22 

Buildings 

Norseman Structures Inc.........................................13 

Catering 

Athabasca Catering..................................................25 

Earth Science and GIS 

Software 

Rockware Inc..........................................................IFC 

Environmental Products and Services 

Blue Heron – Solutions for Environmental 

Management Inc...................................................15 

Geophysical Survey and Supply 

Geometrics Inc ........................................................20 

Heat Transfer Equipment 

Joule Technical Sales Inc.........................................27 

Heavy Surface Mining Equipment 

P&H Mine Pro Services...........................................IBC 

Hydraulic, Pneumatic, Industrial 

Products 

Multi Power Products Ltd.........................................13 

Integrated Mining Services 

Hazco......................................................................31 

International Bulk Shipping 

Fednav Limited........................................................32 

Lime Products 

Graymont.................................................................23 

Locomotives 

Brookville Equipment Corp.......................................15 

Manufacturer Ground Control/Roof Control 

Products 

Jenmar Canada.......................................................30 

Mine Safety and Supply 

3M Canada................................................................3 

Mine Shaft Lighting 

Safety Lamp of Houston Inc.....................................16 

Mineral Exploration Firms 

Exploration Syndicate Inc.........................................33 

Mining Communication 

Minesite Technologies................................................4 

Mining Company 

Hudbay Minerals................................................... OBC 

Mining Equipment and Tools 

MTI – Mining Technologies 

International..........................................................34 

Mining Equipment Parts and Service 

P&H Mine Pro Services...........................................IBC 

Mining Machinery 

Marcotte Mining Machinery 

Services Inc............................................................9 

Mining Security 

Garda......................................................................11 

Multi-Purpose Rail and Wheeled Vehicles 


Open Pit – Surface Mining Conference 

International Research & 

Practice Council....................................................18 

Personnel Carriers 


Pneumatic Lamps/Air Lamps 

Safety Lamp of Houston Inc.....................................16 

Propane Supply 

Superior Propane.....................................................21 

Raise Climbers / Universal Rack and 

Pinion Hoists 

Arkbro Industries.....................................................18 

Regional Development 

Town of Lynn Lake...................................................26 

Trucking and Transportation 

Northern Resource Trucking Ltd. Partnership............16 

Underground Intelligence 

Mine Radio Systems Inc...........................................24

Canadian Mining Magazine - Matrix Group Publishing Inc.

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