british columbia mining, advanced projects and exploration · spectrum project (au) (skeena region)...

Gordon Clarke

Mineral Development Office

Sparwood Coal Symposium 2015

British Columbia

Mining, Advanced Projects and Exploration

REGIONAL GEOLOGIST OFFICES

• Five Regional Geologists • Eight Natural Resource Regions

OUTLINE

• Mining Overview

• New Mine Projects

• Proposed Mine Projects

• Exploration Overview

• Summary

MINING PRODUCTION

2014

Estimated

Production

$7.0 Billion

40%

36%

7%

6% 5% 4%

1% 1% .06%

Preliminary Estimated Value of Mineral Production in BC - 2014

Coal

Copper

Gold

IM

Aggregates

Moly

Silver

Zinc

Lead

Coal

Copper

NRCAN Preliminary Estimate

MINING PRODUCTION 1995-2014

2011 Peak

$9.0 Billion

2014

$7.0 Billion pre est.

BC METAL MINES

Eight Active Metal Mines

• six large producers

• two small producers

Two Suspended Operations

• Mount Polley (tailings breach)

• Myra Falls (temporary)

BC COAL MINES

(2013)

• 2014 started with nine producers

• 2015 six producers due to drop in

coal prices

• Temporary shutdowns and layoffs

for current operations

INDUSTRIAL MINERAL

MINES AND QUARRIES

• Significant contributor to

B.C. economy

• 35 operations province wide

NEW LARGE METAL MINE

PROJECTS

• Red Chris (Cu-Au)

RED CHRIS

Imperial Metals Corporation

Reserves of over 301.5 Mt grading 0.359% Cu and 0.274 g/t Au

• Cu-Au porphyry

• Projected capital cost $643 M

• Conventional open pit mine

• Infrastructure Northwest Transmission Line

• Proposed 38,000 t/d, 28 year mine life

• First Cu concentrate shipped April 11, 2015

• Plant commissioning ongoing

PROPOSED COAL MINE PROJECTS

East Kootenay Coal Field

• Crown Mountain

• Coal Mountain Phase II

• Fording-Swift

Peace River Coal Field

• Murray River

West Coast Region

• Raven


CROWN MOUNTAIN

NWP Coal Canada Ltd.

• 74.9 Mt (M+I)

• 1.7 Mt per year (16 year mine life)

• Open pit operation

• Pre-application stage of EA

COAL MOUNTAIN PHASE II

(Marten Wheeler)

Teck Coal Limited

• 2.25 Mt per year (34 year mine life)

• Open pit operation


FORDING-SWIFT

Teck Coal Limited



(cont.)

MURRAY RIVER

HD Mining International Limited

• 314 Mt (M+I)

• EA Certificate decision expected in

2015

• Completion of 1500 m decline and

bulk sample expected in 2015

RAVEN

Compliance Energy & LG International Investments Ltd.

• Forecast production 1.9 million tonnes/year

• Expected mine life 15.5 years

• Environmental assessment pre-application (recently

withdrawn, under revision)

PROPOSED INDUSTRIAL MINERAL

MINE PROJECTS

• Aggregate (Aggregate)

• Giscome (Limestone)

• Kootenay West (Gypsum)

• Wapiti East (Phosphate)


MINE PROJECTS

Wapiti East (Phosphate) Fertoz International Inc.

• Inferred resource 1.54 Mt

(21.6% P2O5)

• Trenching and bulk

sampling will continue in

2015

• Small mine application

submitted (< 75,000 t/y)

Giscome (Limestone) Graymont Western Canada Inc.

• Construction planned mid-2015

• Projected production 2016

• Estimated minimum 50 year

mine life

Kootenay West (Gypsum) CertainTeed Gypsum Canada Inc.


• Estimated reserve 15 Mt

• Proposed 400,000 tpy

• Proposed 2017 start up

• Estimated 38 year mine life

Aggregate (Aggregate) BURNCO Rock Products Ltd.

• Proposed 1.5 Mtpy

• EA application information

requirements approved


MINE PROJECTS (cont.)

PROPOSED METAL MINE

PROJECTS

19 Proposed

Metal Mines

KSM

Seabridge Gold Inc.

BRUCEJACK

Pretium Resources Inc.

• Au – Cu – Ag – Mo

• BCEAO approval in July

• Federal EA approval in December

• Early stage construction permits

granted

• M+I Resource, 2.78 Bt at 0.55 g/t

Au, 0.21% Cu, 2.9 g/t Ag and .006%

Mo (0.5 g/t Au eqiv. cut off)

• 10,302 t bulk sample

• ~ 17.7 g/t Au

• ~ 14.9 g/t Ag

• Updated feasibility study in

June 2014

• 18 year mine life

• Production target 2017

• Zijin Mining invests $81 M

in project

• Recent BCEAO approval

• Recent cooperation and

benefits agreement with

Nisga’a Nation

SILVERTIP

JDS Silver Inc.

TULSEQUAH CHIEF

Chieftain Metals Corp.

•Cu – Zn – Pb – Ag – Au ; U/G mine

• Positive feasibility study update

October 2014

• 1,100 t/d; 11 year mine life

•Environmental assessment permit in

effect

•Ag – Pb - Zn mine

•Applications Small Mines Act Permit,

Environmental Act Permit

•Concentrator stored in Watson Lake

• Site preparation in progress

GALORE CREEK Teck and NovaGold Resources

• Cu-Au

• 95,000 t/d; 18-year mine life

• On hold due to costs

SCHAFT CREEK

Teck and Copper Fox Metals

• Cu – Au – Mo

• Feasibility study released

• 130,000 t/d, P+P Reserve,

941 Mt 0.27% Cu, 0.19 g/t

Au, 0.018% Mo, 1.72 g/t Ag


• Environmental baseline

studies in progress

• $4.8 M work program for

2015

KEMESS UNDERGROUND (KUG)

Aurico Gold Inc.

• Cu – Au

• Positive Feasibility study

• 24,650 t/d block cave operation

• 12-year mine life

• Infrastructure from former

Kemess South Mine

• Permitting application planned

ALEY

Taseko Mines Limited

•Nb

• September 2014, proven and probable

reserves of 84 million tonnes grading 0.50%

Nb2O5

• Successful production of a niobium

concentrate

• Favourable economics

• Project description submitted to BCEAO

and CEAA

DOME MOUNTAIN Metal Mountain Resources Inc.,

Gavin Mines Inc.

•Au – Ag

•Mines Act permit amendment

submitted

• 135,000 t at 11.2 g/t Au

•Up to 250 tpd operation planned

BLACKWATER

New Gold Inc.

• Au - Ag

• Entered EA

• Feasibility study: Proposed 60,000 t/d


• Large, low grade open pit operation

• $8 million program for 2015

NEW PROSPERITY

Taseko Mines Ltd.

• Proposed 70,000 t/d Cu – Au mine

• Second Federal permit rejection Feb, 2014 for

project as proposed

• Applications for judicial reviews of federal decision

BLACKDOME (Elizabeth)

Sona Resources Corp.

• Au – Ag (Underground)

• Eight Year mine life 200 tpd operation

• Resource 605,000 t @ 10.4 g/t Au

• Ore mined from Elizabeth will be milled at past-

producing Blackdome Mine (permitted 300 tpd)

BRALORNE Avino Silver & Gold Mines Ltd.

• Au (Past Producer)

• Acquired by Avino October 2014

• Permitted (small mine) but currently on care and

maintenance

• Exploration ongoing to evaluate new mine plan

SPANISH MOUNTAIN Spanish Mountain Gold Ltd.

• Shale-hosted Au - Ag

• Preparing for Environmental

Review

• Prefeasibility study

completed

• M+I Resource 238 Mt 0.46

g/t Au, 0.69 g/t Ag


AJAX

KGHM Ajax Mining Inc.

• Proposed expansion of historic Cu – Au mine

to 60,000 t/d

• Environmental Assessment Application

planned for early 2015

HARPER CREEK

Yellowhead Mining Inc.

•Cu – Au – Ag

•EA accepted for review by

BCEAO in Dec, 2014

•Amended feasibility study

released

• 70,000 t/d, open pit

Ruddock Creek

Imperial Metals / Mitsui / Itochu

• Pb – Zn proposed U/G operation

• Pre-application

stage of EA

•Drilling and

bulk sampling

programs

Morrison

Pacific Booker Minerals Inc.

• Planned ore production rate of 30,000

tonnes/day

• Mineable reserve (proven/probable) of

224.25 Mt with an average grade of

0.330% Cu, 0.163 g/t Au and 0.004% Mo

• EA rejected by BCEA in 2012 but PBM

has been allowed to respond and a review

is in progress

• Past producing Mo-Ag mine

• Received amended Mines Act Permit

and EA application accepted by

Federal government

• Road, camp construction and

infrastructure improvements

• Proposed 40,000 t/d, 16 year mine life

KITSAULT

Alloycorp Mining Inc. PROPOSED METAL MINE SUMMARY

PROPOSED METAL MINES

• Substantial inventory of mineral resources

at the proposed mine stage

EXPLORATION

EXPENDITURES 1995-2014

Total for 2014 $338 M • $233 M – Metal plus other

• $105 M – Coal

Decrease of $138 M

from 2013

EXPLORATION EXPENDITURES BY STAGE 2014

MINERAL CLAIMS

New Mineral Claims

by Year (Ha)

• 2014 total 942,181 (Ha)

• 2013 total 246,156 (Ha)

COAL LICENSE

APPLICATIONS (Ha)

• 2014 Applications 75,952 (Ha)



SELECTED EXPLORATION

PROJECTS

• -Although exploration expenditures have

declined, work was still carried out on

numerous exploration projects in 2014

• -Early stage programs were however

generally scaled back and work was

concentrated on advanced projects

• -For 2015, financing is still limited and

many companies have yet to announce

plans

Selected Metal Exploration Projects

Cirque Project (Zn, Pb, Cu) (Omineca Region)

Teck Resources Limited

Sedimentary Exhalite Target

•Drilling, mapping and

sampling planned for 2015

Akie Project (Zn, Pb, Ag) (Omineca Region)

Canada Zinc Metals Corp.


• 5,000 m drilling program

planned for Cardiac Creek

deposit in 2015

Kemess East Project (Cu, Au) (Omineca Region)

AuRico Gold Inc.

Porphyry Target

• A minimum 30,000 m drilling

program planned for 2015


(cont.)

Col-Later Project (Cu, Au, Ag) (Omineca Region)

Pacific Empire Minerals Corp.

Porphyry Target

•Drilling follow up of IP targets

planned in 2015

Blackwater Regional Project (Au, Ag, Zn, Pb, Cu, Mo) (Omineca Region)

New Gold Inc.

Porphyry Target

•Continued drilling, trenching and geophysics planned for

Blackwater South and Key areas in 2015


(cont.)

Vine Project (Pb, Zn, Ag, ±Au) (Kootenay-Boundary Region)

PJX Resources Inc.


•Drilling program planned for

2015

Lucky Mike Project (Cu, Au, Mo) (Thompson-Okanagan Region)

Plate Resources Inc.

Porphyry Target

• $1 million exploration program planned for 2015


(cont.)

Ben Project (Ni) (Thompson-Okanagan Region)

Westhaven Ventures Inc.

Ultramafic Target

• Prospecting, mapping and

sampling program underway

•Drilling program planned for

2015

Aspen Grove Project (Cu, Zn, Mo, Ag, Au) (Thompson-Okanagan Region)

Kaizen Discovery Inc.

Porphyry & VMS Targets

• 3D IP survey and 7,000 m drilling program

planned for 2015


(cont.)

Eaglehead Project (Cu, Au) (Skeena Region)

Carmax Mining Corp.

Porphyry Target

•Re-logging and sampling of historic

core planned

• Some verification drilling planned

KSP Project (Au, Cu) (Skeena Region)

Colorado Resources Ltd.

Porphyry Target

•Drilling program planned

for 2015


(cont.)

Hat Project (Au, Cu) (Skeena Region)

Doubleview Capital Corp.

Porphyry Target

•Drilling program planned

for 2015

Premier Project (Au, Ag) (Skeena Region)

Ascot Resources Ltd.

Vein/Breccia Target

• 2015 drilling program

underway


(cont.)

Spectrum Project (Au) (Skeena Region)

Skeena Resources Ltd.

Vein/Breccia Target

• Financing of $8.1 million

announced secured

• Planned 10,000 to 12,000 m

drill program

•Aim to establish 43-101

resource by end of 2015

Tanzilla Project (Cu, Au, Mo) (Skeena Region)

Kaizen Discovery Inc.

Porphyry Target

• Planned 1,500 m drilling

program for 2015

Selected Coal Exploration Projects

Michel Creek Project (Kootenay-Boundary Region)

CanAus Coal Limited

•Continued drilling planned for 2015

Groundhog Project (Omenica Region)

Atrum Coal NL

•High grade and ultra high grade

anthracite coal

•Bulk sample (of up to 100,000 t)

planned for 2015

Selected Industrial Mineral

Exploration Projects

Driftwood Magnesite Project (Kootenay-Boundary Region)

MGX Minerals Inc.

•Mining lease application made

• Environmental baseline studies underway

•Drilling planned for 2015

SUMMARY

• Estimated value of mine production similar to 2013

(2014 preliminary estimate, $6.98 B vs 2013 revised,

$7.11 B)

• New, large mine development continued, Red Chris

follows Mt. Milligan (2013) and New Afton (2012)

• British Columbia has numerous advanced projects that

should move forward and continue the trend of mine

development

• While venture capital access is limited, a number of

exploration programs expected for 2015

INERNATIONAL EXPOSURE

MDO Office

• British Columbia government profiles

opportunities in the province and the

global reach of the industry

• Cooperates in trade missions and meets

with inbound investors

• The Mineral Development Office may be

able to help you profile your project or

company

Information documents of

various types are available

www.empr.gov.bc.ca/mining/investors

british columbia mining, advanced projects and exploration · spectrum project (au) (skeena region)...

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