Canadian Mining Journal 01-01-2016

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January 2016

C A N A D A ’ S F I R S T M I N I N G P U B L I C A T I O N

www.canadianminingjournal.com

A CLOSE LOOK AT

FIRST NATIONS &

MINING RELATIONS

JOURNEYA TOUGH

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We are proud to partner with Aboriginal communities and companies to develop

innovative outreach and engagement programs across Canada. By working

together, we can build sustainable solutions for our clients in the mining and metals,

energy and infrastructure sectors.

To learn more about how Aboriginal communities and Hatch are partnering to

create positive change, visit hatch.ca.

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Building a stronger future—together


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For More InformationPlease visit www.canadianminingjournal.com for regular updates on what's

happening with Canadian mining companies and their personnel both here

and abroad. A digital version of the magazine is also available at

www.digital.canadianminingjournal.com

Coming in February

Canadian Mining Journal features

Mining in Ontario, plus its PDAC

Issue.

ABOUT THE COVER

This month’s cover photo of Mark

Amarok, Chesterfield Inlet, Nunavut

by Dave Brosha Photography,

Long Creek PEI.

January2016

C A N A D A ’ S F I R S T M I N I N G P U B L I C A T I O N


A CLOSE LOOK AT

FIRST NATIONS &

MINING RELATIONS

JOURNEYA TOUGH

FEATURES

FIRST NATIONS AND MINING RELATIONS8 THE ENVIRONMENTConcern for “The Environment” is one of the many things that both the First

Nations and the Canadian Mining Industry have in common.

10 FIRST NATIONS MINER Indigenous Junior Miner takes aggressive leap into ownership of NWT mining company.

16 PARTNERING HELPS SAVE FISHERIES B.C. mining company partners with five Indigenous communities to help protect

aquatic environment near mine.

20 INDIGENOUS ROAD BUILDERS PROVIDE VITAL LINK First Nations company keeps vital road into Ontario diamond mine safe and open

year round.

22 INDIGENOUS WOMEN ASK QUESTIONS It’s been a year since the Native Women’s Association of Canada was formed, and

during that time, they’ve taken a serious look at job opportunities in the mining industry.

24 THE MINING ASSOCIATION OF CANADA’S PERSPECTIVE MAC President and CEO Pierre Gratton addresses the Canadian Aboriginal Minerals

Association’s 23rd Annual Conference in Vancouver and “Mining and Indigenous

Peoples: Canada’s Future.”

COAST-TO-COAST-TO-COAST REVIEW

27 MINERAL EXPLORATION & DEVELOPMENT IN THE WESTAn overview of activities on the west coast of Canada provided by the Association

of Mineral Exploration British Columbia (AME BC).

28 MINERAL EXPLORATION & DEVELOPMENT IN THE EASTAn overview of activities on the east coast of Canada provided by the Department

of Natural Resources, Government of Newfoundland and Labrador.

DEPARTMENTS

5 EDITORIALLike most January issues of magazines, the editorials focus on the year ahead and

Canadian Mining Journal is no exception. This month Editor Russ Noble talks about

the sad situation the mining industry is in but goes one step further to talk about The

Environment too, and how it’s being equally challenged by these tough times.

6 LAWJames Clare, a Partner with the Toronto-based law firm of Bennett Jones, looks at

the TSX Venture Exchange’s response to the commodities slump.

7 FIRST NATIONSA regular column by First Nations of Ontario.

8 CSR & MININGA regular column by Michael Torrance, a lawyer in Norton Rose Fulbright’s Toronto

office, on Corporate Social Responsibility.

34 UNEARTHING TRENDSBruce Sprague, a Partner and EY’s Canadian Mining & Metals Leader, Vancouver,

looks at First Nations’ women as an untapped resource and possible solution to

Canada’s skilled labour shortage.


CANADIANCANADIANMiningJournalMiningJournal

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JANUARY 2016 VOL. 137, NO. 1

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Established 1882Canadian Mining Journal provides articles and information of practical

use to those who work in the technical, administrative and supervi-sory aspects of exploration, mining and processing in the Canadianmineral exploration and mining industry.Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG L.P. Mining.BIG is located at 38 Lesmill Rd., Unit 2. Toronto, ON, M3B 2T5. Phone (416) 510-6891.

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January 2016 Vol. 137 — No. 1

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EDITORIAL

By Russell Noble

“No work” isthe least ofour worries

Now that we’re heading into what forecasters say will be another dismal year, it’s hardto get excited about the months ahead knowing we’re going to continue hearingmore about layoffs, care and maintenance, and worst of all, outright closures.

After the past couple of years of what the industry has experienced, the words “TheyShoot Horses, Don’t They?” the title of Horace McCoy’s 1935 novel, and later of a 1969movie by the same name starring Jane Fonda, pretty much describes the ‘put me out of mymisery’ feeling that many in the mining industry are feeling.

But, like all doom-and-gloom stories, there’s usually something good to say and thank-fully, and somewhat surprisingly, that’s where the theme of this issue: “First Nations and theCanadian Mining Industry” comes in with a ‘positive’ message that’s encouraging foralmost all miners.

As both sides of the fence have known for years, the words “First Nations” and “Mining”haven’t necessarily homogenized to make for a creamy-smooth feeling towards the use oflands and the extraction of the minerals they contain.

In fact, it’s safe to say that it’s been an oil-and-water relationship for centuries, but like I just said, things are looking a little more positive thanks to the recent emergence and under-standing that there’s far more at stake than territorial lands and their contents.

The Environment is something that almost everyone now agrees is far more importantthan quibbling over boundaries and minerals because, as witnessed at the recent WorldClimate Summit in Paris, France, where even the United States, Russia and China agreedon climate-change issues, Mother Nature has been beaten to her knees because of emissionsfrom the industrialized world.

And, admit it or not, the resources industry is partly to blame for the mess of the world.But to get back to my point of First Nations and Mining Industry relations, the recent

federal election and the subsequent meeting of Prime Minister Trudeau with the Assemblyof First Nations, was a decade-late meeting that at least showed that the federal government was about to listen to the “canaries of the coal mine,” as First Nations communities weredescribed at a recent conference in Vancouver because, “they’re out there to warn.”

Those phrases were used during one of the presentations at the Canadian AboriginalMinerals Association’s three-day conference where more than 500 delegates from across thecountry heard speakers from First Nations and mining companies alike, talk about a num-

ber of things, and in almost every case, The Environment was mentioned.It was a common thread throughout the Conference, and regardless of who was speak-

ing, the message was clear; it’s time to clean up our act. And the “our” was collective, and not directed at any one group because as everyone in

the room agreed, the issue at hand (The Environment) was far more important than terri-torial rights and mining privileges.

As I quoted at the outset, “They Shoot Horses, Don’t They?” and unless everyone pullstogether, and that certainly means First Nations and the Mining Industry, then the forecast-ers I mentioned earlier will be predicting dismal times far beyond the coming year. CMJ

mailto:[email protected]:[email protected]://www.canadianminingjournal.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.canadianminingjournal.com/


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In 2015, Canada’s junior stock exchange, the TSX VentureExchange sunk to levels that a few years ago would havebeen inconceivable. This drop, caused primarily by thesustained slump in commodities, led the S&P/TSX Venture

Composite Index to sink below 500 points for the first timesince the TMX group bought the Canadian Venture Exchange in2001. The low point represents a 29% drop from where theTSXV started at the beginning of 2015 and a staggering 85%drop from its peak in 2007.

A primary cause of the exchange’s poor performance has beenthe extremely challenging market conditions facing extractiveresource issuers. At present, more than 70% of the companieslisted on the exchange operate within the mining or energy sec-tor. After a two plus year depression in mining equities, com-bined with weak prices for most metals, as well as well as hydro-carbon products, junior resource issuers have fallen out of favour with investors.

TSXV White PaperThe TSXV, conscious of the market realities facing its issuers,and with the aim of attracting new investment, conducted alengthy consultation process with clients and stakeholders. Theseconsultations focused on identifying new initiatives to respondto realities facing its listed issuers and other market participantsin light of the sluggish capital market conditions. The outcomeof the consultations was a White Paper, issued on December 17,2015. It contains proposed broad based reforms to variousTSXV rules, policies and strategies aimed at fostering renewedinterest in the exchange and its services. The full text can be

found at: https://www.tsx.com/resource/en/1252.The recommendations of the White Paper were synthesized

into a three-pronged strategic reform program. The first andsecond prongs of this program are particularly relevant for cur-rent and potential resource based issuers.

Cost of complianceThe first prong of the program focuses on reducing the cost ofcompliance, a primary area of concern for most resource issuers.The White Paper proposes a number of rule changes including:

eliminating the general requirement for sponsorship of

new issuers undertaking a reverse takeover (RTO), change of

business (COB) or other business combination narrowing the application of shareholder approval require-

ments for inactive issuers undertaking an RTO or COB implementing a director and officer “NEXUS-type” status

certification program to reduce or eliminate ongoing require-ments for certain individuals extending the shelf life of on-file personal information

forms for directors and officers from three to five yearseliminating escrow requirements that overlap with similar

requirements of the Canadian Securities Administrators implementing an automated system for transaction filing

and accelerating response times to speed up overall transactionprocessing

Attracting new capitalThe second prong of the White Paper’s strategic reform pro-gram focuses on attracting new and more diverse capital to theTSXV. The initiatives proposed under this prong are less tech-nical and less defined than those proposed under the firstprong, but include commitments to undertake active andongoing promotion of TSXV-listed issuers through roadshowpresentations to fund managers, retail investors, investmentadvisors and banks and research analysts; instituting an ongo-ing streaming summary service of available public offerings;and introducing a new market making program to be adminis-tered by the exchange.

TSXV seeking feedback While the exchange has committed to implementing the above

listed reforms under an “aggressive timeline,” prior to doing so itplans to host a series of town hall meetings where it will entertainfeedback on the strategy and proposed initiatives. In the comingmonths, existing issuers and other interested parties who may beimpacted by these reforms should carefully monitor the develop-ments, and provide feedback as appropriate.

Whether these initiatives will be successful in achieving theirintended results remains to be seen, but given the extremelychallenging market environment for resource issuers, the pro-posed reforms should be implemented efficiently and effectivelyto reduce the headwinds facing junior issuers. CMJ

JAMES CLARE is a partner with Bennett Jones in Toronto.

LAW

By James Clare

TSXV response to

commodities slump

6 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

https://www.tsx.com/resource/en/1252https://www.tsx.com/resource/en/1252


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T

he Truth and Reconciliation Commission’s six-vol-ume, 2.3-million-word final report was issued onDecember 15, 2015. It not only contains stories fromsurvivors of residential schools, but a set of 10 guid-

ing principles and 94 recommendations or Calls to Action. While the federal, provincial and territorial governments

must act upon the majority of the 94 recommendations, thereare also recommendations for all sectors of society, including thechurches, media, arts, academia, and industry.

For example, the churches now have less than 90 days beforeissuing a joint statement by March 31, 2016, on how they willimplement the spiritual and religious components of the UnitedNations Declaration on the Rights of Indigenous Peoples(UNDRIP).

The churches must also reject the concepts – such as “terranullis” and the Doctrine of Discovery -- used by the church andstate to assert sovereignty over Indigenous peoples and their lands.

However, I must point out that First Nations do notexpect industry to atone for the sins of the past. But we do,however, expect to be treated as equals, and as the rightfulowners of the land.

Mining companies in Canada must recognize and acknowl-edge the era of Reconciliation as common place in all of itsdealings with First Nations as it relates to mining exploration,development, extraction and remediation. This also includestraining and educating management and staff on First Nationhistory, culture, human rights, and anti-racism.

Here are some key points to consider: The Truth and Reconciliation process is becoming an institu-

tion in Canada that will inspire and influence positiveapproaches to relationships between Canada and its FirstPeoples.

Implementing the United Nations Declaration on the Rightsof Indigenous Peoples (UNDRIP) and respecting Treaties is amajor focus within the TRC Calls for Action.

Business and industry in all Canadian sectors are beingprompted by the TRC Report to become aware of the reportand make efforts to build bridges. This will close the divide

between First Nations and Industry that was created as a

result of ignorance of history of Canada’s Indian ResidentialSchool past.

First Nations deep connection to the land is evident in lan-guage, culture, and world view – this is a key focus in manyof the calls for action.

The respect and responsibilities that First Nation peoples havefor the land is an important element to the process ofReconciliation that is now being recognized by federal juris-diction. As noted in the 2015 Speech from the Throne, theenvironmental assessment process will soon become formal-ized, adding First Nations to the decision-making process asit pertains to the protection of the environment.

Benefits to First Nations regarding mining development arealso a key factor in reconciliation. The era of sealing a dealsolely with an IBA, (Impact Benefit Agreement) is a thing ofthe past. First Nations seek to take on their roles as govern-ments, beneficiaries and providers for their people.

The ‘Reconciliation Lens’ can be a way for industry to createstronger relations, avoid conflicts, build strong business partner-ships and help achieve collective prosperity with First Nations. In conclusion, here are four key messages that sum up the

outcomes from acting upon Reconciliation and forming a newrelationship with our Peoples.1. Reconciliation can be a benefit to building strong mining

partnerships with First Nations;2. Reconciliation as a policy approach for mining companies

will expedite relationship-building beyond most conflictsthat arise out of resisting First Nation history and Culturalcompetence;

3. The cost benefit to a Reconciliation approach in the miningindustry is invaluable;

4. Reconciliation in Canadian mining can cultivate a social con-sciousness that could define the industry as a 21st centurylegacy maker.

I look forward to continued dialogue with the mining indus-try as we work together on making 2016 a breakthrough year forpositive change. Together, we will build a better, more inclusive

Canada for our children, and future generations. CMJ

By Ontario Regional Chief Isadore Day, Wiindawtegowinini

Mining must includeTruth & Reconciliation

FIRST NATIONS

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ENVIRO

THE

P h o

t o :

T h i n k s t o c k . c o m

THE WORLD AGREES: ENOUGH IS ENOUGHBy Russell Noble



NMENT Mother Nature can’ttake it much longer

Ever since John Cabot landed in Newfoundland in1497 and started trekking westward into the unknown,exploration and later development has left its mark onThe Environment.

In fact, it’s left more than a mark; it’s scarred the earth forev-er thanks to an unquenchable thirst for discovery, but like it ornot, the world wouldn’t be what it is today if not for yesterday’sadventurers.

Regardless of how appreciative we are to John Cabot and TheVikings before him, Mother Nature has taken the brunt of their

quests through the loss of trees, the displacement of wildlife,polluted waterways and often the disappearance of fish, andmost recently in the news, air quality because of toxic emissionsresulting in climate changes.

In just over 500 years, the world has gone from pristine topolluted, and it wasn’t until recently when the “World LeadersUnanimously Agreed” at the United Nations’ Climate Summitin Paris, France, that everyone became more aware of the factthat the world has had enough; it can’t take any more.

And that’s when The Environment started receiving the worldwide attention it deserves.

“And, it’s about time,” says The Assembly of First Nations of

Canada, and the 634 bands it represent across the country,because that’s what indigenous people from coast-to-coast-coast want most… a clean, safe, and bountiful place to live and work.

As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Association’s meeting in Vancouver said latelast year: “We’re the canaries in the coal mines, we’re out there to warn.”

Philosophical, yes, straightforward, no question, but more-over, it was a sincere and insightful message that FederalIndigenous Affairs Minister Carolyn Bennett later echoed bysaying, “There is every evidence Canada’s Aboriginal Peoples areindeed on the front lines of climate change.”

As already mentioned, concern for the well being of TheEnvironment is a centuries-old topic for discussion, and whenyou look at the photo on these pages, it’s hard to understand howmankind can do what it’s doing to endanger such perfection.

But it is, and doing so at such an alarming rate that no matter

what the 197 world leaders agreed to in Paris last year, scenes likethis are being threatened around the world every day, and unless we take The Environment seriously, future generations will haveonly photographic images of the ‘Way We Were.’

Thankfully, both the First Nations and the Canadian MiningIndustry are two groups working on improving the ‘Way We Are’ so that future generations don’t have to look back on refer-ence material to see how things used to be.

Stories on the following pages take a closer look at FirstNations and Mining Relations and how they’re working in har-mony and in the best interest of everyone, and everythinginvolved. CMJ

FIRST NATIONS and MINING


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NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE

LEAP INTO OWNERSHIP IN MINING ECONOMYBy Northern Correspondent Bill Braden

BOLD &

BRAVE


T wo years ago, the Dene of the NWT bold-ly jumped into the dragon’s jaw andlaunched their own mining company.

The targets: significant polymetallicpotential near Great Bear Lake, and dia-monds near the Ekati and Snap Lake mines.

The vision: be more than a source oflabour and supplier of services to other miners. They want to be

their own stand-alone producer, among the first in Canada topursue indigenous mine ownership.

Wait a minute. Aren’t First Nations usually railing againstresource development, the constant thorn in mining’s side? Andin the face of NWT’s gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions, what is driving a home-grown indigenous company to dothis in the first place?

Aerial photo of the mill and camp at Terra Silver Mine,abandoned near the south shore of Great Bear Lakesince 1985. Photo courtesy of DEMCo. LP.


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“The main thing is people want toparticipate and take ownership. It’scoming from the simple statementsthat have been made at the DeneNation assemblies for years,” saysDarrell Beaulieu, the President andCEO of Denendeh InvestmentsIncorporated (DII) and its latest ven-ture, DEMCo Ltd.

“No one ever said we are againstbusiness or development. We said we want to be participants in development,meaningful participants.”

To a considerable extent, that hasindeed been the case in the NWT.Beaulieu points to the prosperous part-nerships among more than 60 NWTindigenous businesses and diamondgiants De Beers, Dominion and RioTinto.

Between 1996 and 2011, $4.2 bil-lion or 33 per cent of their northernspend was with indigenous companiesand almost 9500 person years of

employment were filled by indigenous workers in that period, about 25 percent of the total labour quantum.

But he wanted to go beyond the jobsand service/supply deals, and take theambitious jump to the equity level. Thecurrent slump in mining activity, anderoding values on existing properties,gave momentum to Beaulieu’s plan tocreate DEMCo in the spring of 2013.

“So the timing to pick up propertiesand/or junior mining companies is

upon us,” said DII’s website at the time.



Darrell Beaulieu, CEOof DEMCo LP, and thisyear’s winner of theSkookum Jim Award fromPDAC for outstandingachievement andcontribution to mining

by an aboriginal groupor individual.



It continued on a note of high optimism: “The silver lining topresent and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamentalchange in First Nation participation in resource development inthe Northwest Territories and Canada.”

The soft-spoken Beaulieu, 58, is an Akaitcho Dene born andraised in Yellowknife who has earned numerous accolades for hisleadership. The most recent is the 2016 Skookum Jim Awardfrom the Prospectors and Developers Association of Canada,acknowledging significant achievement and contribution tomining by an indigenous group or individual.

He’s is no stranger to indigenous and northern corporategovernance. He’s a three-time Chief of the Yellowknives FirstNation, and has held directorships with Northland Utilities, theNWT Business Development and Investment Corporation, and

numerous industry associations. And he’s no stranger to mining either, as one of his first jobs

was with Noranda Exploration doing EM surveys, mapping,prospecting, claim staking and general exploration work.

Beaulieu has been an influential advocate for Dene invest-ment through the parent group, Denendeh InvestmentsLimited Partnership, an alliance of 27 First Nations communi-ties across the NWT. It boasts a diverse portfolio including oiland gas drilling services, electric utilities, communications, realestate, and now exploration and eventually mining.

Optimistic Start

To get DEMCo set up, Beaulieu hired Yellowknife prospector

Trevor Teed into the shop as exploration vice president. Teedbrought with him a hunch he’d been plugging away at for

almost two decades: the potential for a new discovery in theCamsell River region southeast of Great Bear Lake, directlyunder four historic silver producers that operated from the1960s to 1985.

”I suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it, not silver,” says Teed.“Darrell agreed, and despite the initial doubt of two of our threecontract geologists, our initial thoughts have been proven andthere is IOCG at Camsell River.”

“First it was kind of a desktop job,” says Beaulieu. “The data was all over the place. We had to go to the United Sates, Alberta,BC, the Geoscience office here in Yellowknife, personal homes,and at site too. ... it was amazing where all the data ended upafter 30 years.”

They resampled thousands of metres of decades-old core atsite (that saved millions of exploration dollars). The results, firstdisclosed in late 2014, proved out their early optimism.

“Back in the 70s they were only looking for silver. We lookedat the core and did some more prospecting, and we found thathey, there’s a lot of gold there. What’s more, after our first fieldseason, was confirmation there’s a huge magnetic body therealso. It looks like we have an IOCG deposit.”

Beaulieu is too savvy to get excited at this point, but polymet-alic IOCG deposits (Australia’s mammoth Olympic Dam is one)can be truly massive. The discovery of the zone, estimatedroughly at some seven by 16 kilometres in size, was firstannounced in late 2014.

Teed says he had taken his hunch to other miners, but creditsBeaulieu with the vision and the belief to carry it forward. Hisinvestigation so far has uncovered an extensive magnetic zoneunder the old silver digs.

“It is a significant event. I think that when the rest of Canadacatches up to what we have, we’re going to see significant explo-ration again in the areas,” predicts Teed.

That significance is backed up by mapping and geophysical

Noel Michel of Lutsel K’e takes a break duringa prospecting trip near Great Bear Lake.Photo courtesy of DEMCo. LP.

DEMCo Exploration Vice-president Trevor Teed, CEO Darrell

Beaulieu, and COO Margaret Gorman. billbradenphoto


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work carried out by the Geological Survey of Canada, and theNWT Geological Survey over the past decade.

Geologist Scott Cairns, Manager of Bedrock Mapping andMineral Deposits at the NTGS’s Yellowknife office, says thehistoric production of silver and uranium is indicative oflarger polymetallic IOCG deposits in the Great Bear magmat-ic zone.

“They are definitely in a high mineral potential area there,”says Cairns, adding that DEMCo’s claims are at the north end ofthat zone, while Fortune Mineral’s NICO project, about 200kmto the south, is on its southern edge.

Cairns says federal GSC geologists have recently completed alarge study of alterations that can help identify IOCGs. “Sothere’s an enormous volume of work of geophysical characterisa-tions, ways to track down where these potentially valuabledeposits might be hidden,” he says.

DEMCo’s IOCG discovery has not sparked any new rush ofinterest in the region. But on a territory-wide basis, says Cairns,the number of inquiries, website and office visits to his library,and data bases, has been spiking in the past few months.

“I think what we’re seeing is that while it’s difficult to fundboots-on-the-ground exploration, companies are doing theirhomework right now and will be using that when conditionsimprove.”

In The Game As of late December 2015, DEMCo was fully engaged in plan-ning the 2016 field program, which Beaulieu hopes will includeairborne geophysical work as well as more ground sampling.They will spin off another subsidiary, Camsell River MineralsLtd., to carry the project.

But, just like any other junior, the team will be out therelooking for private cash during one of the metal market’s deepestand most prolonged slumps.

And predictably, that’s not the only hurdle. The claim blockis within an overlapping boundary of both the Tlicho and Sahtuland claim regions.

The four old mines on the claim block are among dozensacross the NWT deemed for rehabilitation by the federal govern-ment. There is an existing airstrip, but land access would largelybe on the historic Denison Ice Road from Behchoko, firstopened in the 1960s, but dormant for 30 years.

Yet another layer is working with the NWT Government, asit gets used to managing the mines portfolio after its transferfrom Ottawa to the NWT in April of 2013.

And, because DEMCo’s parent corporation is governed by analliance of all NWT’s First Nations - and it’s their money that’sat risk - Beaulieu also has to satisfy a board that isn’t all thatfamiliar with being on the investor side of the mining equation.

Was it a hard sell to get his board on side in the first place?No, says Beaulieu, pointing to DII’s investment of about $2

million in cash and time to date. “The hard sell is going to be

finding the money to add value without diluting too much.”He says he’ll be walking the floors at the Vancouver

Cordilleran Roundup and Toronto’s PDAC in 2016, promotingDEMCo.

The Camsell project is where DEMCo is now fully focused,but it is also invested in the NWT’s prolific diamond fields.

In the Lac de Gras region east of the Ekati diamond mine, theFin claim block hosts known diamondiferous kimberlites, whilethe Jen block has six known geophysical targets that have not yetbeen drilled.

The Jaedenz block, sandwiched between the Gahcho Kue andSnap Lake mines, was explored and drilled by both De Beers and

Winspear in the 1990s.


Yellowknife-born Trevor Teed, prospector and DEMCoVP of Exploration, at the Camsell River properties.Photo courtesy of DEMCo LP.

Among the available resourcescombed over by DEMCo werethese teetering core racks, somedating back decades.Photo courtesy of DEMCo LP.


14/36

No work was done during the 2015 season,and the company has not yet announced whether it will commit anything this year.

An Indigenous Advantage?Does being an Aboriginal-owned venturemean DEMCo will get a better receptionfrom investors, or an easier ride through theNorth’s rocky regulatory regime?

“We haven’t really pushed it,” saysBeaulieu. “We’re focussed on doing our ownthing for now. It takes time to grasp andunderstand what is it you have? [We’re ask-ing] the same type of questions that any junior asks, wearing the same boots, samegloves. We know it’s a high-risk business, butit’s a high reward too. Whoever is in there has

really got to manage, and you’ve got to beable to sustain your own neck. In terms of theregulatory regime, that is an independentprocess, we respect it and expect to be treatedlike everyone else.”

In a February, 2015, interview with thebusiness magazine Corporate Knights, he didallow that having the Dene communities athis own board table gives him a home-courtadvantage.

“I think community engagement is ourcompetitive edge. And that edge is available

because we are a Northern Dene-owned com-


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pany. And we’re operating in a territory where indigenous peoplehave a significant influence on our activity,” he said.

Don Bubar, as President and CEO of Avalon Rare Metals Inc.,and in previous roles with the PDAC, is a passionate advocate forindigenous inclusion in Canada’s mining sector. He believes thatfuture mineral exploration in northern Canada will be led by indig-enous businesses.

“It is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of amineral development business with title to active projects. DarrellBeaulieu and DEMCo are providing the leadership for the DeneNation in going down this path,” said Bubar in an email.

“Part of the challenge the industry faces is simply creating morepublic awareness of the importance of the industry to the northerneconomy, especially for aboriginal communities. Eco-activists havebeen successful in demonizing the industry in the North. DEMCohas a key role to play in changing the perception that mineralexploration and development creates only unwanted environmentalimpacts, without creating significant economic benefits for north-

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COMMUNITY

EFFORT HELPSSOLVE FISHWAYPROBLEMBy Russell Noble

PARTNERSHIPA WINNING


Shannon Haizimsque, Chief Operating Officer of the Yinka DeneEconomic Limited Partnership, the commercial business arm of the

Wet’suwet’en First Nations at the Huckleberry Mine site. Adjacentphoto shows a series of steps lined with geotextiles and anchoredwith rock fill as part of the mine’s Fish Compensation Plan.


17/36

Almost everybody associates the

name “Huckleberry” with MarkTwain’s Huckleberry Finn and hiscomrade Tom Sawyer, but in themining community, Huckleberryis also the name of a Canadianmine that has been in productionin northwestern British Columbia

since October 1997. Huckleberry Mines Ltd. is an active open-pit copper/molyb-

denum mine located approximately 100km south of Houston,B.C.. Production rates (in 2014) were 34 million pounds ofcopper, 2,202 ounces of gold, and 183,218 ounces of silver and,like many mines today, it’s owned by a consortium of companiesunder one name, Huckleberry Mines Ltd (HML) of Vancouver.

The mine is owned and operated by Huckleberry Mines Ltd., which in turn is owned 50 per cent by Imperial MetalsCorporation of Vancouver, and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation, Dowa MiningCo. Ltd., and Furukawa Co.

Partnering with First NationsSince 2013, Huckleberry Mines Ltd. has signed communication& partnership agreements with five separate First Nations orga-nizations: Wet’suwet’en First Nation, Cheslatta Carrier Nation,Office of Wet’suwet’en, Nee Tahi Buhn Indian Band, and SkinTyee Nation.

Marke Wong, Manager of Environmental & Community Affairs for Huckleberry Mines Ltd. says, “These types of agree-ments have been instrumental in the success of HuckleberryMine. Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties;and this has increased First Nations access to economic opportu-nities such as job training, employment and service contracts,and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractors.”



HUCKLEBERRY MINE



For example, Wong says Huckleberry works directly with theeconomic development arm of its partners to provide training, jobs and developing on-call labour contracts, including the Yinka Dene Economic Development Limited Partnership (YLP),(Wet’suwet’en First Nation); the Nootsenay Enterprises,(Cheslatta Carrier Nation); the Hunust’ ot en Investment Corp(Nee Tahi Buhn Indian Band); and the Skin Tyee Nation.

He says, that in 2014 and 2015, the company spent morethan 1200 hours of on-the-job training to students and internsfrom the Wet’suwet’en and Cheslatta Carrier First Nations whorecently graduated from the Northwest Community College’sSchool of Exploration and Mining, Environmental Monitoring Assistant Program (EMAP) and other programs.

In keeping with Huckleberry’s involvement with the commu-nity, the company also supports the College of New Caledonia’sMineral Processing Assistants Course by providing instructors,on-site mill tours, and job opportunities at the mine. Severalmember of the Nee Tahi Buhn Indian Band have been workingas on-call positions as environmental monitors and confinedspace guards in the mill. Huckleberry staff regularly respond tocommunity requests to attend, speak and sponsor communityevents such as career days, annual meetings, mine tours andtraditional community gatherings.

“Developing successful mining arrangements with Indigenouspeople isn’t only about technical astuteness, it’s about relation-ships, reconciliation and the balancing of interests” says Wong.

It’s obvious from these brief examples that HuckleberryMines Ltd. is taking its work with the First Nations seriously, butit’s more than that.

Mike Robertson, Chief Policy Advisor, Cheslatta CarrierNation says, “In 2005, the Cheslatta Carrier Nation challengedthe mine of its commitment to sound environmental manage-ment. During the subsequent 10 years, Huckleberry manage-ment and staff committed to engage our people directly inplanning and implementing a progressive reclamation program

of old mining zone areas and in the development of new zones.

Just like the re-vegetated dams and tailings sites, our environ-mental relationship has blossomed too.”

Chief Rene Skin, Skin Tyee Nation added, “Marke Wong ofHuckleberry Mines has participated in our Nation’s annual gath-erings including community open houses and cultural camps. He’sengaged directly with our youth and elders for the past two years.He has been diligent in keeping us informed of changes to theon-going miner operation and opportunities for our people.”

Managing Impacts and Restoring the LandLike all mining, there’s a certain impact to the natural environ-ment, and following the closure of a mine, there are permanentchanges to the landscape. The Huckleberry Mine is no exception.

Conventional drilling, blasting, loading and hauling using acombination of electric drills and shovels, diesel hydraulic exca-vators, and both 100 and 150-ton diesel-powered haul trucks areused to process approximately 17,000 tonnes of ore a day.

Milling is accomplished by grinding the ore in a 9.75m diam-eter SAG mill and then through two ball mills. The resultingslurry is processed by flotation to produce a concentrate of 27per cent copper that is subsequently shipped by truck to the portat Stewart for storage and shipment to Japan.

Tailings from the milling process is discharged into a tailings

management facility; and supernatant water is discharged to theaquatic environment through a pipeline to a submersed outfalland diffuser located in Tahtsa Reach, part of a man-made hydro-power reservoir developed in the 1950s. All water dischargedfalls within their provincial and federal permit limits.

With this comes noise, dust, and all of the other factors asso-ciated with mining but, as mentioned earlier, HuckleberryMines Ltd. is aware of the situation and addresses them throughits Environment and Community Affairs Program, whichincludes a Fish Habitat Compensation Program.

And, it’s because of its efforts in this area, that HuckleberryMines Ltd recently received the 2014 B.C. Metal Mine

Reclamation Award from the B.C. Technical Research Committee

Aerial photo of Huckleberry Minelocated between HuckleberryMountain and Tahtsa Reach.



on Reclamation (BCTRCR), and the Mining Association ofB.C. (MABC) in recognition for outstanding practices in its fishhabitat restoration program; a program that actually increased

the available fish habitat in the area of the mine; as well as itssuccessful relationship building efforts with First Nations.Even before the mine was built, the company recognized that

its mine’s footprint could have an impact on the available fisher-ies habitat in the area. In particular, “Creek 4,” a knownfish-bearing stream was expected to be impacted; and so a plan was made to conduct some habitat enhancements in the area.

Fisheries surveys conducted by Hatfield Consultants ofNorth Vancouver identified nearby “Creek M” which at thetime, was not a fish-bearing stream due to a naturally occurringbarrier to fish –i.e. a steep gradient reach that stopped any fishfrom reaching a headwater pond.

Huckleberry Mine’s plan involved constructing a series of stepsor weirs lined with geotextiles and anchored with rock fill. These works were constructed by a team from Cariboo Divers fromdesigns prepared by Hatfield Consultants.

Subsequent fish surveys conducted between 2001 and 2011showed initial success and that adult rainbow trout were present inthe headwater pond and juveniles were present in the lower reaches.

However, subsequent surveys conducted between 2008 and2011 indicated that the juvenile fish numbers decreased torecord lows in 2011. The decline in fish numbers was attributedto failure of the weirs in the lower and middle fishways, causing juveniles to become stranded in isolated pools, and precludingadults from reaching the preferred spawning habitat between thelower and middle fishways.

When initial monitoring of the remediated area in 2013 and2014 was conducted, Environmental Monitoring Assistantsfrom the Yinka Dene Economic Limited Partnership and theNootsenay Enterprises Ltd. were called to assist in the evaluationof the stability of the constructed works as well as presence offish, and the structural integrity of the fishways have remainedintact through high-flow periods, with no erosion or undermin-ing of the weir structures.

Cody Reid, Deputy Chief & Environmental Coordinator,Nee Tahi Buhn Indian Band said, “The design, constructionmonitoring and maintenance of the Creek M fishway has led to

an overall net increase in fish habitat in the area surrounding themine in Tahtsa Reach.” And David Belford, Mineral and Natural Resources Liaison

Officer, Wet’suwet’en added,” The HML Environmental team,and participating consultants, are to be commended on theirproactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine foot.”

During the 2013 fish survey, 39 rainbow trout were captured,the largest number of fish observed since 2008. These observa-tions were made even while construction of the middle reachfishways was ongoing.

Marke Wong says that Huckleberry’s plans are to continuemonitoring to confirm the effectiveness of the restoration work,including hydraulic functioning, physical stability and structuralintegrity, fish distribution and net gain.

From the operation of a mine in the mountains, to the refur-bishing of a fishway in a local waterway, Huckleberry MinesLtd., continues to show its appreciation and respect for theenvironment and the First Nations communities it works with inBritish Columbia.

Perhaps the most important message for industry is that theexample set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to havemeaningful dialogue, and understanding develops on both sides,then the path to cooperation and partnership is open.

In the case of Huckleberry Mine, this has led to the devel-opment of partnerships that have helped it expand its opera-tions; and have help provide support during tough economictimes.

The nomination of Huckleberry Mines Ltd. for the 2014 BCMetal Mine Reclamation Award came from its First NationPartners because, as Chief Karen Ogen said, “Our partnership with Huckleberry Mines has made a big difference in our smallcommunity. Since the 2013 partnership agreement was signed,our people have benefitted from jobs, training and businessopportunities. Our experience with Huckleberry has been verypositive and we have greatly appreciated Huckleberry’s efforts

to engage with our community and to work with our businessarm, the Yinka Dene Economic Partnership. The Wet’suwet’enFirst Nation is very pleased to nominate Huckleberry Minesfor this award.”

And lastly, Mike Robertson added, “ The Cheslatta CarrierNation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam. Wehave our members employed by Huckleberry Mines, and wemaintain regular contact with its staff and management on allaspects of operations. We support the nomination because we areconfident they will continue and enhance their innovative andprogressive practices of returning the land to a near natural,

self-sustaining state.”

CMJ


HUCKLEBERRY MINE

Material for Huckleberry Mine’sstep-building program being delivered

to the site by helicopter.



FIRST NATIONS COMPANY PROVIDES

VITAL ROADBUILDING SERVICES

TO REMOTE COMMUNITIESStaff Report

REWARDS

ROAD

to




K imesskanemenow is a Cree word that means, “Thisis our Road,” a fitting name for the winter roadmanagement company that is owned and operated

by four northern First Nations; Attawapiskat, Fort Albany, Kashechewan, and Moose Cree.Their company, Kimesskanemenow Corporation, (also

known as K Corp) was founded in 2001, and for the past 15years, has been responsible for building and maintaining the Western James Bay Winter Road (JBWR), which starts inMoosonee and travels 312km up the western coast of James Bay,connecting the communities of Fort Albany and Kashechewan,and eventually ending at the Attawapiskat First Nation.

The road is a lifeline to the remote areas in the James BayLowlands of Northern Ontario and without it, existing and futuredevelopment of this part of the country would not be possible.

In fact, it’s thanks to the road that K Corp helped build thatcompanies like De Beers Canada are in the north.

As most people know, De Beers Canada made internationalheadlines when it built the Victor Mine in 2006, (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of AttawapiskatFirst Nation.

Since the open-pit mine began production in 2008, with anannual tonne processing capacity of about 2.7 million tonnes, andan annual carat production capacity of 600,000 carats, it has provento be a key to Northern Ontario development and its communities.

With an estimated mine life to 2018, the Victor Mine’s ener-gy and equipment needs will continue for at least two more yearsand, according to K Corp, cannot be met without the JBWR.

Air transport is prohibitively expensive, so the winter road isconsidered by far the most affordable way to supply the remotemine with the necessary 450 loads of cargo, and 10 to 11 millionlitres of diesel fuel that it consumes each year.

But the Victor Mine is not the only site that requires a reliablesupply of goods and services. Similar transportation challengesalso face other remote northern First Nations communities thatneed to truck goods and fuel via seasonal winter roads.

With the exception of Moose Cree First Nation, which has arailway line to Cochrane, air travel is the only transportationavailable year-round for the three other First Nations, which for

most community residents is prohibitively expensive.Thanks again to the JBWR, it provides a critical socio-eco-

nomic tie between the communities as well as a significantsource of employment, and to keep relationship going,Kimesskanemenow Corporation and De Beers Canada haveentered into a productive partnership.

In 2004, the two parties signed a Winter Road Agreement, which was re-negotiated in 2014. Under the agreement, DeBeers pays the bulk of the costs of the road’s construction andmaintenance costs, while the balance of the costs are provided bythe Provincial and Federal governments.

Kimesskanemenow Corporation is guided by three central

priorities: Building capacity in its communities, ensuring that its

member communities receive maximum benefits, and mainte-nance of traditional culture, which naturally includes environ-mental protection.

The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members.

To do this, the road is constructed and maintained entirely bylocal community members, either as direct employees or throughlocal contractors. This has required developing capacity, which thecompany has done through training and education programs.

The practical effect of these guiding principals is that duringthe winter months, roughly 200 individuals work on the road,helping ensure that the road brings economic benefits to individ-uals, families, and communities.

For many, seasonal employment gained through constructingand maintaining the winter road is the only consistently avail-able work in the community. Furthermore, dividends from thecompany go back to the hands of the communities to be used asthey see fit.

Finally, Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities, witheach of the four communities allotted an annual amount.

Reflecting the corporation’s central values, the money is usedto fund initiatives that benefit youth, the environment, or main-tain traditional ways of living.

One example of the programs that the corporation helps fundis CreeFest, a celebration of Cree culture that is held annually in

the Mushkegowuk communities.The company also funds the Edward W. Chilton scholarship

at Northern College in honour of the late Ed Chilton, the com-pany’s first president. The scholarship is awarded to communitymembers to further their education.

K Corp’s list of smaller grants, available online, include manycommunity and cultural programs that maintain the vitality ofall these communities.

Kimesskanemenow Corporation maintains an important pieceof infrastructure that benefits the communities and allows for theongoing operation of the Victor Diamond Mine. As a cooperative venture, the corporation has proven itself to be invaluable to both

the communities and the mining company. CMJ

Thanks to the efforts of K Corp,the Western James Bay Winter Roadprovides access to the remote areasof Northern Ontario.



WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report

I

t’s been just over a year since the Native Women’s Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada(AANDC) to identify and ask questions about the barriers

indigenous women face, and secondly, to get direct and honestanswers as to what are the realistic opportunities for them in themining industry.

Basically, as the headline says, they want to know where theystand insofar as their positions within the mining industry areconcerned.

The questions NWAC put on the table at a recent forum inOttawa entitled, Bridging the Gap: Aboriginal Women andResource Development, dealt with two perspectives; the firstlooked into resource development corporations and sought tounderstand what these corporations knew about aboriginal women, and the second was from aboriginal women and howthey viewed the mining industry with regards to economic devel-

opment and employment opportunities.The forum was attended by an impressive gathering of female

indigenous leaders and representatives from the resource devel-opment sector. A full list of the participants is featured in theadjacent box.

The intent of the engagement/discussion session was to initi-ate a constructive dialogue amongst the participants with theoverall goal of: increasing the labour market participation of indigenous

women in the resource development sector; ensuring indigenous women’s voices are heard in the devel-

opment of these projects;

sharing of information on the industry; and

discussing the various opportunities and barriers facingindigenous women who wish to work in the industry.

A DISTINGUISHED PANEL OF WOMEN

ATTEND OTTAWA FORUM

Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc. (Rainy River Project)Karina Kesserwan Kesserwan (Law – Strategy – Solutions)Stacey Jack New Gold Inc. (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro Ottawa

Jamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest Products

Marilyn Capreol Shawanaga First NationPamela Eyles BC Native Women’s AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Women’s AssociationMarian Horne Yukon Aboriginal Women’s CouncilNoreen McAteer Alberta Aboriginal Women’s SocietyVerna Polson Quebec Native Women Inc.Tori-Lynn Wanotch Saskatchewan Aboriginal Women’s Circle Corp.Beverly Blanchard Native Women’s Association of CanadaSydney Ducharme Native Women’s Association of CanadaClaudette Dumont-Smith Native Women’s Association of CanadaDan Peters Native Women’s Association of CanadaMerv McLeod McLeod-Wood Associates Inc.

Nancy Wood McLeod-Wood Associates Inc.

Beverly Blanchard, (standing), of the NativeWomen’s Association of Canada, addressesdelegates attending a forum in Ottawa entitled:Bridging the Gap: Aboriginal Women andResource Development.



It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skillsand Employment Strategy (ASETS), a project funded by

Employment and Social Development Canada (ESDC), thatfocuses primarily on indigenous women and provides funds foreducation and training, job support, and targeted wage subsidies(TWS) to assist employers in hiring indigenous women.

An overview of indigenous women was given with the intentof pointing out that the term Indigenous covers First Nations,Metis and Inuit. Coupled with the terminology, there is also asignificant lack of understanding about where indigenous women are located in Canada.

Although 52 per cent of the indigenous population in Canadais women, much of the attention focuses upon indigenous women who live on First Nations reserves. There is, however, a significantportion of the population who reside in urban centres.

In fact, 70 per cent of the indigenous population in Canadanow live in urban centres.

With the interaction between the indigenous communitiesand resource development industries primarily focused onreserves, there may be a significant portion of the indigenousfemale population that is not being considered for employment

and/or economic opportunities.For example, when impact benefit agreements (IBAs) are

completed, they tend to be locally focused and may not consider

indigenous women that do not reside in the community orindigenous individuals who are not members of the particularcommunity.

From the indigenous women’s perspective at the forum, it wasnoted that indigenous women’s opinions on the resource devel-opment sector were varied and divergent. Like most things inlife, there were some women who are in favour of the miningindustry, and there are some who are against it.

Many who are against the sector perceived it to be counter tothe traditional role of indigenous women as water-keepers andcaretakers of Mother Earth, but on the other hand, researchfound that there was also a significant percentage of indigenous women who were ambivalent towards the industry.

Due to length and detail of the forum (from which this article isbased) the information has been drastically reduced to fit the space.

For complete details and a copy of the full Bridging the Gap: Aboriginal Women and Resource Development Report, pleasecontact Beverly Blanchard, Strategic Policy, Partnership andPlanning, NWAC, Ottawa. [email protected] CMJ

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A

s probably many of you know, times are tough rightnow. Commodity prices are slumping across theboard, affected by an overall slowing global economythat is being felt throughout Canada.

But, even during a stubborn downturn in global demand formany minerals and metals, it’s no time to get down on miningbecause mining never goes away.

Minerals and metals are the very foundation of virtually all ofthe goods we depend on in our daily lives. The world will con-tinue to need mining, and Canada can, and should continue tobe an important place where mining happens.

A Look at Market ConditionsSo, first, how bad is the market?

Global economic growth has been volatile in recent years.

Every time the Bank of Canada, the IMF, World Bank or othersmake growth projections, it seems they amend them a fewmonths later and always downwards. With few exceptions, theglobal economy is not doing well at all.

The key economy for the mining sector is China, whichtoday consumes almost 50 per cent of the world’s minerals andmetals. And China’s growth rate has been slowing, along withgrowth rates in other emerging markets, like Brazil, Mexico andseveral Asian and African countries, that are also falling.

The one major exception is India, whose growth is around7.5 per cent and, with its 1.3 billion people, is seen as the nextChina in terms of minerals and metals consumption as the coun-

try begins to rapidly industrialize.

A Bedrock of the Canadian EconomyEven in a slump, mining’s contribution to Canada is enormous.

Despite some job losses at some operations, mining and min-eral processing are directly employing more than 375,000Canadians, including well over 10,000 Indigenous Canadians,paying the highest average industrial wage in the country.Mining remains proportionally the largest employer of indige-nous Canadians.

Mining accounts for roughly 20 per cent of the overall valueof Canadian exports, valued at nearly $90 billion.

Nationally, we pay an average of $3.8 billion annually incorporate taxes and royalties to federal, provincial and territorialgovernments.

Mining companies are also paying significant royalties to indig-enous communities across the country, indirectly through govern-

ment resource revenue sharing and, in some cases, directly. We’re also supporting the second largest mining-supply sector

in the world. More than 3,700 companies provide a wide spec-trum of services to the Canadian mining industry, with anincreasing number of these being indigenous-owned businesses.

A major challenge facing mining in Canada’s north today isits lack of infrastructure. The north is our industry’s future, butthe territories and the northern parts of our provinces lack criti-cal infrastructure—roads, electricity, ports, railways—to servicemines and get products to market.

This lack of infrastructure is felt by communities, many ofthem indigenous, located in the north.

According to the Mining Association of Canada’s (MAC)

MINING AND

INDIGENOUS PEOPLES.

CANADA’S FUTURE By Pierre Gratton

Delegates attending the 23rd Annual

Conference of the Canadian AboriginalMinerals Association in Vancouver listento talks during the three-day event.

P h o t o :

T r a c e y

S a n d e r s P

h o t o g r a p h y




research, it costs about 2 to 2.5 times as much to build andoperate a gold and base metal mine in northern Canada, off grid,than in the south.

We should be looking at ways to level the playing field in thenorth where infrastructure is lacking. Canada needs a strategiccollaboration involving industry and governments, federal, pro-vincial, territorial and Indigenous, to get this nation-buildinginfrastructure in place.

This can be done by increasing government investment innew infrastructure, or by using the tax system to offset some ofthe costs incurred by companies for infrastructure componentsthat also provide a broader public good.

Additionally, there is the issue of indigenous rights and titleand how this affects the project certainty.

Much is made of how the constitutionally protected rights ofindigenous peoples to be consulted and, if necessary, accommo-dated for activities on traditional indigenous territories affectsproject timelines and certainty.

Connected to this is the concept of social license, which ingeneral terms defines the support earned by proponents to pro-ceed with and operate their project.

The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects?

That is a very complex issue.The Supreme Court of Canada, in its recent decision on the

Tsilhqot’in First Nation’s claim, recognized indigenous title, afirst in Canadian law.

It also provided clear guidance on the criteria needed todemonstrate title, and on the rights and obligations that flowfrom that, in the process also identifying where title was foundnot to exist.

It is a significant decision that provides us all with much moreclarity going forward.

But back to the question of the veto.The Court clearly recognizes that, in some circumstances, the

right to title can be limited by the Crown. So, there is no abso-lute veto under Canadian law, even in the case where title hasbeen proven.

But, for the Crown to place limits on indigenous title, it hasto demonstrate both a compelling public interest for the project

as well as ensure that future indigenous generations will not bedeprived from the benefit of the land were the project to goahead – a very significant test.

At its core, the decision continues a balancing act betweenempowering, and limiting the authority of both indigenous peo-ples and governments. The Court was very wise.

So what does this mean for proponents?There is the law, and then there is reality. No proponent

wants, or should want to build a project that is unwelcome oropposed by local communities. This is, quite frankly, an unsus-tainable option and one best avoided. And, most communitiesare open to the opportunities mining brings, and increasingly so.

Let’s look at reality in a different way.

Today, there are more than 250 agreements between miningcompanies and indigenous communities across the country. It isdecidedly rare that projects proceed without impact benefit or

other such agreements concluded.These agreements, which have matured with time and experi-ence, provide significant local benefits and assurances, including:

*Commitments on business procurement and, often, assistancein setting up or enabling aboriginal-owned companies to takeadvantage of the business opportunities mines provide.

*Agreements with respect to the incorporation of traditionalknowledge in mine planning and environmental monitoring andoversight.

*Support for skills training and mentoring.*Direct economic or financial benefits.Some of these agreements are transforming communities in

very significant ways.Newgold’s New Afton project in Kamloops is one such exam-

ple. The diamond mines in the NWT are others, as is Voisey’sBay. We are seeing high levels of indigenous participation, ashigh as 60 per cent in the case of Voisey’s Bay, increasing levelsof post-secondary education, and significantly improved eco-nomic and social outcomes.

Nonetheless, it is undeniable that the negotiation of theseagreements takes time. Trust must be built between the parties,and indigenous communities rightly want to understand thenature of the physical and environmental impacts of the pro-posed mine prior to it proceeding.

Mining Association ofCanada President andCEO Pierre Grattonaddresses delegates inVancouver at the 23rdAnnual Conference ofthe CanadianAboriginal MineralsAssociation.

Photo by Tracey

Sanders Photography.

P

h o t o :

T r a c e y

S a n d e r s

P h o t o g r a p h y


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Building and maintaining trust is ongoing; engagement hasto be systematic and continuous, embedded in corporate practic-es and culture. We have to be open about what we do andinvolve indigenous peoples in parts of our business that matterto them, and offer training that supports such involvement.

Aboriginal communities should also invest in acquiringknowledge of the mining business. Many now have; those thatdon’t, can reach out and learn from others.

Second, communities should set out their expectations clear-ly, so that proponents may understand them. Such expectationscan be with respect to how consultation is to be conducted, thesocial and environmental values that must be respected, andexpectations for participation in benefits.

Investing in new business endeavours to service and supply

the mine and other activities in the region, is also wise.In October, a new federal government was elected promising

reconciliation with indigenous peoples.I say, “about time.”It’s about time the federal government settled the many unresolved

land claims across this country. Land claims, when they have beensettled, create healthier conditions that make doing business easier,make partnerships easier to form and make them more enduring.

The new government has promised to accelerate the moderntreaty process, to which I say again, “about time.”

It’s about time all governments recognized that royalty reve-nues should be shared with indigenous communities.

Sharing resource revenues will help unleash economic devel-

opment and will send a profound recognition of who has inhab-ited the land for millennia, and who will be there when themines, and the mining companies are gone.

It’s about time governments took a consistent, coordinatedapproach to its consultation and accommodation obligations.Government employees should also receive training in consultation.

It’s about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fullyparticipate in the economy and bring hope and opportunity fortheir children.

The new government has promised significant increases ineducation funding and said they will increase funding for indig-enous skills training by $50 million per year. This is good news.

While the mining sector and indigenous peoples in Canada

have made great progress together over the past few decades, it isneither right, nor prudent, for governments to sit back and onlyengage when environmental assessments or permitting obliga-tions compel them to.

Canada’s mining sector, while going through difficult times atpresent, remains strong and has a bright future, but it is not afuture to be taken for granted. CMJ

PIERRE GRATTON is President and CEO of the Mining Association of

Canada. This article is based on portions of a speech Mr. Gratton gave at

the recent Canadian Aboriginal Minerals Association’s 23rd Annual

Conference in Vancouver. For a full copy of Mr. Gratton’s speech, pleased

contact MAC.


Aerial view of Capstone’s massive Minto Mine in Yukon.Because the mine is situated on land owned by theSelkirk First Nation, 100 per cent of the royalties accrueto the First Nations development corporation and the

Selkirk First Nations citizens.


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The year 2015 was a critical time for the Associationfor Mineral Exploration British Columbia (AMEBC) to champion the investment, exploration andmineral development potential of BC.

AME BC believes that it is possible to have both a strongmineral exploration and development industry, and a sustain-able, healthy environment.

Globally, the mineral exploration and development industryhas been experiencing a significant downturn, and BC, and therest of Canada are not immune to this reality. Despite the chal-lenges this presents, the industry (much of it based in BC), con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians.

Generally, BC has attracted a gradually larger share ofCanadian mineral exploration investment over the past fewyears, and has held its own on a global scale. However, provincialand federal government policies and First Nation perspectivesregarding natural resource development, and access to minerallands, need to be better aligned to help ensure that BC continuesto attract investment in mineral exploration and development.

Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits thatare so vital to our quality of life in BC, and Canada, as a whole.

The mineral exploration and development industry is centralto BC’s export-driven economy, spurring positive regionalsocio-economic activity, providing thousands of family sustain-ing jobs, producing the commodities that we need, use andconsume every day and contributing hundreds of millions ofdollars every year to support education and health care.

Such contributions should not be taken for granted. Despitethe current downturn, policy-makers must take concrete stepsnow to position the industry for future success.

The first major event of 2015 for AME BC was our annual

Mineral Exploration Roundup conference, and the Association wasable to claim credit for Premier Christy Clark’s announcement toexempt exploration activities from permit fees, and the announce-ment of $6.3 million in increased funding for the province’s Minesand Minerals Division to support permitting and inspections.

The provincial mining flow-through share program was alsoextended through the end of 2015.

On a national scale, there was a commitment by the federalgovernment in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and communityconsultation expenses; however, a timeline for the implementationof this measure is still uncertain as of December 2015.

As per AME BC’s Strategic Plan, aboriginal relations and

engagement continues to be a top priority area for our member-ship. AME BC hosted the third annual Gathering Place at theMineral Exploration Roundup 2015 conference, and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand.

AME BC continues its work to strengthen relationships withaboriginal communities, leaders, and organizations. Specifically, AME BC has taken the lead and engaged in very positive andmutually respectful discussions with representatives from the BCFirst Nations Energy and Mining Council (BC FNEMC).

In fact, AME BC signed a memorandum of understanding with the BC FNEMC in July 2015. AME BC also maintainsstrong business relationships with the Industry Council for Aboriginal Business.

In September, AME BC signed a memorandum of under-standing with the Association of Professional Engineers andGeoscientists of BC (APEGBC), formally building ties betweentwo century-old organizations with a commitment to increasethe prestige and esteem of professional geoscience and engineer-ing in the province.

AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness ofmineral exploration among the public. For the first time, it alsosponsored prospector training in the First Nation community ofTsay Keh Dene to a very enthusiastic and receptive audience.

In November, following engagement with officials from boththe State of Alaska and Government of BC, AME BC supporteda memorandum of understanding signed between the two juris-dictions to enhance communication and access to informationbetween jurisdictions without the need for federal interventionor an International Joint Commission.

In light of these successes, however, AME BC members facedcontinual challenges, both real and perceived, in accessing the

land base to conduct mineral exploration and development.Evolving land access and use decisions and restrictions along the

central and north coast, and in the Northwest, south Chilcotin,areas southeast of Prince George, and the south Okanagan were afocus of committee and staff efforts through the year.

Although AME BC has had successes in communicating thevalue of minerals as a hidden resource with government officialsand communities, the provincial government lacks a coordinatedapproach to planning, communicating and implementing deci-sions affecting the mineral land base.

In 2016, AME BC will continue championing the need foraccess to the land with the provincial government to provide

certainty for its members. CMJ

By David McLelland, Chair of the Board of Directors, AME BC andGavin C. Dirom, President & Chief Executive Officer, AME BC

A Message fromthe AME/BC

COASTAL ROUNDUP


David McLelland Gavin C. Dirom



Newfoundland and Labrador is one of the foremostproducers of iron and nickel in Canada, rankingsecond in production of both metals amongCanadian jurisdictions in 2014. It also produces, or

has significant resources of a wide range of other commodities;including copper, zinc, gold, uranium, rare earths, granophilemetals, industrial minerals and others.

With such world-class resources, diverse geology, and consid-erable exploration upside, it clearly represents an excellent min-

eral investment destination in a stable, development-friendly jurisdiction.

Here’s a look at some of the projects that support that statement.

Mining and Processing DevelopmentsDuring the first half of 2015, Vale Newfoundland and LabradorLimited (VNL) produced 29,000 tonnes of nickel, 13,400tonnes of copper, and 495 tonnes of cobalt from its Voisey’s BayMine in Labrador. In August, the provincial governmentannounced that underground mining at Voisey’s Bay had beensanctioned by VNL’s parent company, Vale.

Construction is projected to start in 2016 with ore produc-

tion beginning in 2020.

In July of 2014, VNL achieved a major milestone at its LongHarbour hydromet processing plant with the production of itsfirst nickel. The facility is currently processing a combination ofimported, low-impurity nickel matte and concentrate fromVoisey’s Bay, while construction work continues elsewhere onsite.

The plant will process only Voisey’s Bay high-grade concentrate.The Iron Ore Company of Canada (IOC) has been produc-

ing iron ore at the Carol Lake project in western Labrador sincethe 1960s. Total shipments (pellets + concentrate) for 2015 are

expected to be about 17 million tonnes. The new Wabush 3iron-ore deposit has cleared environmental assessment; howeverdevelopment has been delayed due to the weak outlook for ironore markets.

Rambler Metals & Mining plc operates the Ming copper - goldmine near Baie Verte in northeast Newfoundland. The companyproduced a positive prefeasibility study relating to integration ofthe Lower Footwall Zone mineral resource into the life-of-mineplan for the operation. The plan would extend the projected minelife to 21 years, while optimizing the mining and milling process-es. Year-end (July 31) results for fiscal 2015 show production of4,733 tonnes of copper metal, 5,335 ounces of gold, and 39,706

ounces of silver from 17,309 dry tonnes of concentrate.

R&D PROVIDES MINING INDUSTRY

WITH A MUCH-NEEDED BOOST

By Phil Saunders

TIMING isEVERYTHING

Vale’s nickel processing plant.



COASTAL ROUNDUP

Rambler also announced a definitive agreement withThundermin Resources Inc. whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler. This enables

Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio. Anaconda Mining Inc. announced new resource calculations

for its Pine Cove gold mine and Stog’er Tight gold deposit nearBaie Verte. The latest figures indicate total gold resources in allcategories of about 129,000 ounces at Pine Cove, and about50,000 ounces at Stog’er Tight.

The company sold 15,821 ounces of gold in fiscal 2015 (toMay 31).

Tata Steel Minerals Canada Limited (TSMC), a joint venturebetween Tata Steel of India and New Millennium Iron Corp.,operates a high-grade iron-ore mine in the Menihek area ofnorthwestern Labrador. TSMC shipped its first load of iron inSeptember 2013; shipments in 2015 (to September 15) were 1.4million tonnes.

Canadian Mining Journal 01-01-2016

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