2013 Winter - Prospectors and Developers Association of Canada

InBrıefWinter 2013PDAC President visits Mexico, Peruand Guatemala with Governor GeneralThe Governor General of Canada in the Main Courtyard of the GovernmentPalace in Lima, Peru.to discuss the challenges and opportunities the industry currentlyfaces at home and abroad. “I spent considerable time discussing theimportance of mineral exploration and mining to the GovernorGeneral, the MPs and Diane Ablonczy (Minister of State of ForeignAffairs),” says Glenn, “and during our conversations I highlighted thePDAC’s leadership and work in creating awareness of best practicesin environmental sustainability, social engagement, and the healthand safety of the workers in the industry.”As for Glenn’s impressions of the Governor General? “He’s anunbelievably kind and thoughtful person, and someone who is hardto keep up with! He and his wife were on the move all day and nevershied away from meeting others and sharing their experiences. I feltvery proud to join them in representing Canada.” UCALL IT AN OPPORTUNITY OF A LIFETIME for PDAC President GlennNolan. From November 30 to December 7, Glenn travelled with HisExcellency the Right Honourable David Johnston, Governor General ofCanada, to Mexico, Peru and Guatemala on a series of diplomatic visitsto share expertise and discuss issues surrounding trade, security,education and innovation.Glenn, who was part of a delegation that included the GovernorGeneral’s wife, Mrs. Sharon Johnston, along with Canadian leadersfrom the fields of business, politics, education, social justice anddevelopment, said the trip provided him with an opportunity to “seefirst-hand the importance of the role of Governor General on theinternational stage, and the importance that the Canadian miningindustry plays in the economic development and social advancementof these particular countries.”Highlights for Glenn included participating in a tour of theBombardier Aerospace facility in the state of Querétaro in Mexico,taking part in a panel discussion on education, innovation and trade,as well as participating in a roundtable with Canadian businessleaders working in Guatemala.The trip also provided Glenn with a chance to learn more about thepositive impacts that Canada’s mineral exploration and miningindustry is having on each of the countries’ national economies, andGlenn speaking at Rafael Landivar University in Guatemala City.Glenn receiving thanks from the Governor General in Peru for taken part inthe delegation.The newsletter of the Prospectors & Developers Association of CanadaCe bulletin est également disponible en version française. Voir www.pdac.ca pour une copie.

Nations people in Canada’s exploration andmining industry, and cooperation on publicpolicy issues of mutual interest.As of February 2012, more than 180agreements have been signed betweenmining companies and Aboriginal commun -ities or governments in Canada, according toNatural Resources Canada. Projects rangefrom grassroots exploration plays toproducing mines across the country.Another significant milestone was thePDAC’s establishment of the Skookum JimAward. First presented in March 2008, theaward recognizes exceptional achievementand/or service from an Aboriginal-runbusiness, or an individual who has made asignificant contribution to the industry. The2013 winner is Windigo Catering LimitedPartnership, a catering company in north -western Ontario that specializes in a varietyof on-site management and light mainten -ance services.“Having the board recognize theimportance of Aboriginal entrepreneurs andSkookum Jim medal with ribbon.Photo Credit - Gill Gracie, Opportunity North magazinemovers and shakers that have exemplified astrong commitment to the industry wassignificant,” says Nolan.Since the Aboriginal Program wasGlenn Nolan, PDAC President; Phil Fontaine, former National Chief of the Assembly of First Nations inCanada; Jon Baird, past PDAC President, at AFN Assembly July 2008.launched at the PDAC Convention in 2006,it has grown exponentially in quality andquantity. With two days of sessions (increasedfrom one half-day session at its inception)devoted to Aboriginal programming, theconvention is a unique opportunity forcompanies and communities to network,create partnerships, and share knowledge.Aboriginal participation at the conventionis expected to continue to grow in 2013, saysLesley Williams, the PDAC’s Program Managerfor Advocacy and Issues Manage ment.Programming in four separate sessions willfocus on building capacity, promotingexcellence in engagement, and addressingsubjects such as consultation andcommunity-company agreements. Mean -while, throughout the rest of the year thePDAC will continue to develop tools to buildawareness around the mineral developmentsequence and opportunities that exist, andencourage increased and meaningfulAboriginal participation in the industry, addsWilliams.Apart from the Aboriginal Program at theconvention, PDAC Aboriginal Affairsundertakes initiatives and activities topromote greater understanding and cooperationbetween Aboriginal communitiesand the mineral industry in Canada. Whileadvocating for policy, such as governmentresource revenue sharing and the resolutionof land claims, the PDAC participates inconferences and meetings central toAboriginal issues in Canada. Thedevelopment of research and tools such asthe Exploration and Mining Guide forAboriginal Communities is also an integralelement of the department.The opportunity for constructiveengagement and Aboriginal participation inthe sector is not lost on governmentrepresentatives at the provincial and federallevel. “We talk a lot in public policy about jobswithout people and people without jobs and Ithink that is the key to this obvious marriageof Aboriginal people, particularly their youth,and the mining industry,” says Liberal MPCarolyn Bennett, who attended PDAC 2102and is Vice-Chair of the Aboriginal Affairs andNorthern Development committee at thefederal level.Nolan agrees with such a sentiment andenvisions a future in which communities takeownership of exploration programs, hire theirown people, and secure licences to developprojects. When such a vision becomes areality, the PDAC Aboriginal Affairscommittee will have fulfilled its mandate.Until then, there is more work to be done. UBy Virginia Heffernan3

PDAC 2013 AwardsDaniel G. Wood is the recipient of this year’sThayer Lindsley Award for his leadership ofexploration teams responsible for numerousdiscoveries of mineral deposits in a varietyof geologic settings with an aggregate grossvalue in excess of $100 billion.Mr. Wood retired from mineral explora -tion in late 2008 after 24 years with BHP andalmost 18 years with Newcrest MiningLimited, leading teams exploring for a rangeof mineral resources in Australia, SEAsia/SW Pacific and the Americas. Duringhis career, the teams he led produced coal,Thayer Lindsley AwardThis award, honouring the memory of one of Canada’s greatest mine finders, recognizes anindividual or a team of explorationists credited with a recent significant mineral discoveryanywhere in the world.Pretivm Resources is the recipient of thisyear’s Bill Dennis Award for advancing theBrucejack Property’s Valley of the Kings intoa world-class, high-grade gold deposit.Pretivm’s Brucejack property innorthwestern British Columbia is a highgradegold project, and the Valley of theKings portion of Brucejack property is aworld-class gold discovery. High-grade goldresources in the Valley of the Kings (5.0 g/tgold-equivalent cut-off ) now total 8.5million ounces of gold in the IndicatedResource category (16.1 million tonnesgrading 16.4 grams of gold per tonne).Bill Dennis Awardgold, gold-copper and copper-molybdenumdiscoveries in Australia, Indonesia andPeru. The list of discoveries by these teamsis extraordinary in its variety of geologicsettings, in the number of commodities andin the aggregate gross value of thedeposits—in excess of $100 billion.Mr. Wood joined Newcrest Mining duringits formation in 1990, and from the mid-1990s, as Executive General ManagerExploration, he led its highly successfulexploration team that was judged by theMetals Economics Group of Canada to havebeen the world’s most successful goldexplorer from 1992-2005.Mr. Wood is an Advisory Board memberof the WH Bryan Mining and GeologyResearch Centre at the University ofQueensland where he is an AdjunctProfessor and strong advocate for enhancedgeological input into mass mining research.He was jointly awarded the Joe Harms Medalby the Geological Society of Australia fordiscovering the Cadia gold-copper depositsin NSW, and is the 2013 recipient of theSME's Robert M. Dreyer Award. Mr. Wood isa Fellow of the Society of Economic Geolo -gists in the U.S.This award, named for a former president of the association, honours individuals who haveaccomplished one or both of the following: made a significant mineral discovery; made animportant contribution to the prospecting and/or exploration industry. The award may also beused to recognize an important mineral discovery in Canada.Recognizing the potential of the Valley ofthe Kings, which was first discovered in2009, Pretivm’s CEO Robert Quartermainbought the Brucejack Property when hestarted the company in 2010. Althoughprospecting had been carried out on theproperty for several decades, it was thePretivm team under Mr. Quartermain’sleadership that turned the deposit from aninteresting but remote exploration projectinto a world-class gold discovery with theadvance of the Valley of the Kings. Since2011, Pretivm’s successful explorationprogram saw the resource base for theValley of the Kings increase to the current8.5 million ounces of Indicated gold.Viola R. MacMillan AwardThis award is named in honour of the PDAC’slongest serving president and is given to aperson or company demon strating leader ship inmanagement and financing for the explorationand development of mineral resources.New Gold Inc. is the recipient of this year’sViola R. MacMillan Award for demonstratingleadership in management and excellence inbest practices in bringing the New Afton mineto production. New Gold’s New Afton coppergoldmine, located in Kamloops, is a largeunder ground copper-gold deposit that isexpected to produce, on average, 85,000ounces of gold and 75 million pounds ofcopper per year over a 12-year mine life. Thedeposit has 1.0 million ounces of proven andprobable gold reserves and 1.0 billion poundsof proven and probable copper reserves.New Gold recognized early on that a strongrelationship with local First Nations was thekey to a successful project. In 2008, a groundbreakingagreement was formed betweenNew Gold and local First Nations. The NewAfton Participation Agreement, which coversfour areas—environment, employment andtraining for band members, business oppor -tun ities, and socio-economic contribution—isconsidered a best practice in Canada.Mary-Claire WardGeoscience AwardDanielle Thomson hasbeen chosen as thisyear’s Mary-Claire WardGeo science Award recip -ient for her researchproject “Sedi men tology,sequence stratigraphy,and stable isotope strat -igraphy of the Tonian-Cryogenian ShalerSuper group, Victoria Island, NorthwestTerritories.” Danielle is a PhD student atCarleton University.The award, comprising $5,000 and acertificate, is given annually to a graduatestudent in Canada to honour the memory ofMary-Claire Ward who died in 2004 and wasa passionate advocate for geosciences. Atthe time of her death, Mrs. Ward was thechair of the PDAC’s Geoscience committee,chairman of Watts Griffis McOuat Ltd., and apast president of the Geological Associationof Canada.4

PDAC 2013 AwardsDistinguished ServiceAwardThis award recognizes an individual whohas achieved one or more of the following:made a substantial contribution to mineralexploration and mining development over anumber of years; given considerable timeand effort to the PDAC; made outstandingcontributions to the mineral industry in thefield of finance, geology, geophysics,geochemistry research, or a related activity.Ronald P. Gagel is the recipient of this year’sDistinguished Service Award for hisoutstanding contribution to the mineralindustry in the field of finance, and for hiscontributions to the PDAC.Mr. Gagel, a chartered accountant withmore than 30 years of professionalexperience, predominantly in the miningsector, has been an active PDAC committeemember since 1991 and a board membersince 1997. Ron’s background in miningfinance, accounting and taxation hasprovided outstanding support to thefinancial activities and affairs of the PDAC,particularly through his work on the Financeand Taxation committee.Ron was part of the team that successfullylobbied the federal government to implementthe Mineral Exploration Tax Credit (METC)—afederal tax credit program that has helpedCanada capture and maintain its position asthe number one country in the world formineral exploration spending. In 2011, whenCanada moved to International FinancialReporting Standards (IFRS), which createdunique challenges for junior mining com -panies, the PDAC and the Canadian Instituteof Chartered Accountants created the MiningIndustry Task Force on IFRSs. Under Ron’sleadership as Chair, the task force haspublished a series of nine papers on applyingIFRSs in the mining industry.Environmental & Social Responsibility AwardThis award honours an individual or organization demonstrating outstanding initiative,leadership and accomplishment in protecting and preserving the natural environment and/or inestablishing good community relations during an exploration program or operation of a mine.Cameco Corporation is the recipient of thisyear’s Environmental and Social Responsi bilityAward for its outstanding accomplish ments inestablishing good community relations in itsexploration and mining operations.Cameco has a five-pillar Corporate SocialResponsibility (CSR) model designed toensure local community support andproactive environmental stewardship. Thefive pillars are: Community Engagement—Cameco engages communities throughoutproject development phases to ensure localpeople are aware of and understand thecompany’s activities and have opportunitiesWindigo Catering Limited Partnership is therecipient of this year’s Skookum Jim Awardfor its achievement as a CanadianAboriginal-run business and its service tothe Canadian mining industry.Windigo Catering, located in north -western Ontario, is solely owned bythe Windigo First Nations of BearskinLake, Cat Lake, North Caribou Lake, SachigoLake and New Slate Falls. Boasting an 83%First Nations employment rate, thecompany employs 60 people, all of whomare hired from the area. Profits from theSkookum Jim Awardto provide input; Environmental Steward -ship—Cameco creates proactive planswherever it operates to minimize its impacton the environment; Workforce Develop -ment—Cameco focuses on training,education and recruitment in northerncommunities and seeks to employ as manynorthern people as it can for itsSaskatchewan mining operations; BusinessDevelopment—Cameco prefers northernownedbusinesses in procuring goods andservices for its Saskatchewan operations aspart of a strategy to build sustainable, localenterprises that will continue to generateopportunity for local people after miningends; and Community Investment—Camecoinvests in key areas that will assistcommunity development, education andliteracy, youth and health and wellnessinitiatives.Cameco has been recognized as anindus try leader in CSR by Aboriginal associa -tions and industry rankings.Recipients of this award will have demonstrated exceptional achievement and/or service in anAboriginal-run service business for the Canadian mining industry or a Canadian Aboriginalexploration or mining company, or have made a significant individual contribution to themining industry.business go back to the membercommunities.Windigo specializes in providing cateringservices to industry, including remotecamps. In addition to catering, Windigooffers laundry, camp management,janitorial, light house keeping and heavydutyjanitorial services. Windigo currentlyprovides these services to Goldcorp’sMusselwhite Mine at their remote fly-incamp on Opapimiskan Lake.Now that Windigo has successfullymanaged its contract with Musselwhite, it islooking at expanding and recently com -pleted a five-year plan. The company hasdeveloped a website and other marketingmaterials with plans to pursue additionalaccounts. Windigo, currently based in SiouxLookout, is planning on opening an office inThunder Bay to access the potentialopportunities associated with mineralexploration in the area.5

PDAC 2013 INTERNATIONAL CONVENTION PDAC 2013 INTERNATIONAL CONVENTIONTechnical Program showcases silver, iron ore and Arctic diamondsThe Technical Program at PDAC 2013 opens on Sunday, March 3, withfour sessions: Commodities and Market Outlook, Land AccessChallenges and Solutions, Maximizing the Value of Your Companyand New Mines in the Central and Southern Andes.On Monday morning, March 4, sessions taking place include theKeynote Session: Risk and Reward in Mining Exploration andDevelopment, Development Issues Pertaining to Mines and MineralDeposits: Capex and Low Grades, and Building Aboriginal Capacity forEconomic Independence. A session on Canada in 2013, and another onDiamonds in the Arctic, will be held in the afternoon following theMineral Outlook Luncheon where Tom Butler of the World Bank willdiscuss Trends in Emerging Markets—A World Bank Perspective.Short Courses at PDAC 2013At PDAC 2013 there will be a record number 15 Short Courses tochoose from, which all attendees have the chance to sign up forprior to the start of PDAC 2013.Pre-convention Short Courses given on Friday through Sundaymorning (March 1, 2 and 3) cover such topics as Health andSafety in Mineral Exploration, New Mines in the Old World:The Untapped Mineral Potential of Europe, A Practical Guideto Land Management in Canada and High Impact Communications.The always popular Investment Fundamentals full-day seminar,now in its eighth year, will also be available on the Saturday andincludes presenters from mining companies, consulting firms andthe brokerage community.Once the convention is up running, there are three Short Coursesto choose from on the Wednesday. A day-long Geophysics forEveryone short course will be given by KEGS in the morning, whilethe always popular DMEC Workshop series will take place in theafternoon and features a discussion on the undercover explorationof the northern copper belt of Chile.To purchase tickets to any of the 15 Shorts Courses, visit:www.pdac.ca/pdac/conv/2013/presentations-shortcourses.aspxTechnical sessions on Tuesday morning, March 5, include Financing ina Volatile Market, Iron Ore in Canada, and Large Igneous Provincesand Metallogeny, while sessions on Australian Au and Cu Deposits,Geophysics, and the Emerging Metalloctects of Northern Canada willbe held in the afternoon following the International Panel Luncheon.Closing out the Technical Program on the Wednesday morning will bethe The Silver Session, Specialty Metals and Minerals, Ontario’s Ringof Fire, and the ever popular New Discoveries and Developments.For more information on the 21 sessions that are part ofTechnical Program at PDAC 2013, visit:www.pdac.ca/pdac/conv/2013/presentations-tech-sessions.aspxMobile Convention Guide (Mobi)Expanded FREE Wi-Fi service for 2013:• Registration area and Wi-Fi Café,Level 600• Wi-Fi Lounge, mezzanine leveldirectly above the south entrance• Hallways outside of the exhibit hallsand meeting rooms, Level 700 & 800Search for exhibitors, technicalsessions or speakers, and findattendees in real-time through theuse of integrated social media linksthat allow you to plan onsitemeetings and build your schedule onyour smartphone.Mobi runs smoothly on the iPhone,iPad, Blackberry, Palm, WindowsMobile, Nokia Symbian and AndroidGoogle phones. Scan this QR code toget started. If you need assistanceusing Mobi, just look for the MobiMasters in the red shirts.Register and/or buy tickets for SHORT COURSES, LUNCHEONSAND EVENING EVENTS (subject to availability) atwww.pdac.ca (click on PDAC 2013 Convention)6

PDAC 2013 INTERNATIONAL CONVENTION PDAC 2013 INTERNATIONAL CONVENTIONMineral Outlook LuncheonMonday, March 4Room 718, 12 noon to 2:00 pmTom ButlerPDAC welcomesTom Butler, GlobalHead of Mining at theInterna tional FinanceCorpora tion (IFC), amember of the WorldBank Group. Butler willdiscuss Trends inemerging markets –A World Bank perspective.PDAC is proud topartner with the IFC.TO PURCHASE TICKETSTO THELUNCHEONS(subject to availability)PLEASE VISIT US ONLINE ATwww.pdac.ca(Click on PDAC 2013)Tickets are $70 eachLuncheons—MTCC, South BuildingInternational Panel LuncheonTuesday, March 5Room 718, 12 noon to 2:00 pmJoin us for a sit-down lunch and glass ofwine as Strategies to revive the juniors ispresented. This animated panel discussionwill cover, among other things, the value offinancing, mergers, joint ventures and royaltiesin terms of how best to benefit fromthem, as well as the inherent risks andobstacles. The make-up of the equity marketand how new vehicles such as ETFs areaffecting equity pricing will also beexplored.ModeratorRaymond Goldie, Senior Mining Analyst,Salman Partners Inc.Guest PanelistsEric Sprott, CEO, Chief Investment Officer,Sprott Asset Management LPNed Goodman, President and CEO,Dundee CorporationJohn Kaiser, Editor, Kaiser Research OnlineInnovation LuncheonWednesday, March 6Room 718, 12 noon to 2:00 pmCanada’s global successin mining can betraced to the emergenceof smart policiesand innovativeprivate institutionstailored to the uniqueattributes of theThe HonourablePerrin Beattymining industry.Luncheon guestspeaker, theHonourable Perrin Beatty, President andCEO of the Canadian Chamber ofCommerce, will present How Canada hastransformed its resource endowment into aglobal competitive advantage. This presentationis sure to attract community andindustry leaders, investors, PDAC membersand convention delegates.7

DiamondTeck Resources LimitedPlatinumGoldcorp Inc.Barrick Gold CorporationIBK Capital Corp.PatronErnst & YoungPwCRenvest Global Resource FundTMX GroupVale Canada LimitedPremierOsisko Mining CorporationDeloitte & Touche LLPAnglo American Exploration(Canada) Ltd.Canaccord GenuityFranco-Nevada CorporationKPMGSilver WheatonProud Convention SponsorsGold PlusKinross Gold CorporationWaterton Global ResourceManagementAgnico-Eagle Mines LimitedCelerant Consulting, Inc.CIBC World Markets Inc.IAMGOLD CorporationKGHM International Ltd.National PostRio TintoSNC-Lavalin Inc.Xstrata PlcGold1984 Enterprises Inc.AECOMAeconAurizon Mines Ltd.DRA GROUPFreeport-McMoRan Copper andGold Inc.GE CanadaGlobal Mining FinanceGowling Lafleur Henderson LLPGrant Thornton LLPHudBay Minerals Inc.Inmet Mining CorporationNewmont Mining CorporationPan American Silver Corp.Primero Mining Corp.Royal Gold, Inc.Tourism TorontoVotorantim Metals Canada Inc.BronzeBaker & McKenzie LLPHallmark InsuranceMNP LLPRaymond James Ltd.RBC Capital MarketsScotiabankShamrock Enterprises Inc.Silvercorp Metals Inc.Standard CharteredConventionAccentureAvanti Management &Consulting LimitedPeter BojtosCHF Investor RelationsClean HarborsLoewen, Ondaatje, McCutcheonLimitedNewsfile Corp.S&P Capital IQFront cover photo credits: Rideau Hall ©Her Majesty The Queen in Right of Canada represented by the Office of the Secretary to the Governor General (2012) and Sgt. Ronald Duchesne, Rideau HallCe bulletin est également disponible en version française. Voir www.pdac.ca pour une copie.Prospectors & Developers Association of Canada Publication Agreement #40042453135 King Street EastToronto, Ontario, Canada M5C 1G6