Mining and Exploration highlightsmineralsnorth.ca/images/uploads/general/Paul_Jago.pdf · 2015. 11. 17. · 2 1 4 3 Brule - Walter Energy Inc (Western Coal Corp) • 1.4 Mt/y PCI

Mining and Exploration highlights

Omineca and Northeast Region, British Columbia, 2013-2014

C. Paul Jago Regional Geologist

Omineca/Northeast Prince George, BC

Image from Thompson Creek Metals Co Inc

Select projects in BC by deposit type

Coal

Polymetallic Zn, Pb, Cu, Ag, Au

Cu-Au

Au ± Ag

Specialty metals REE, Nb, Ta

Mo ± W

Ni

Northeast Region

• Peace River Coalfield

• 17% of BC coal production

• $81.6 M in exploration (2013)

• 83% - advanced stage projects

• $180 M in mine development

Exploration Expenditure

$81.6 M (down 25% YOY)

Drilling Meters

54,500 m (down 55% YOY)

• Quintette-Babcock

• Roman Mtn

• 5 projects in Environ Assessment

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NEBC Coal Mines

Willow Creek

Brule

Perry Creek

Trend

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Brule - Walter Energy Inc (Western Coal Corp)

• 1.4 Mt/y PCI coal product - target 2.0 Mt/y

• mining 3 seams in the South pit – expanding to North and Blind pits

• updated 5-year mine plan in 2014

• 17.5 Mt ROM reserves + 12.5 Mt resource (Meas.) >> 8 year mine life

Willow Creek - Walter Energy Inc (Western Coal Corp)

• 0.45 Mt hard coking coal (HCC) and PCI coal in 2013

• Apr 2013 - high cash-cost-of-sales ($150/tonne) = production curtailed 2/3

• processing plant running at half-capacity

• 18.6 Mt ROM reserves + 31.1 Mt resource (M&I) >> 16-20 year mine life

Wolverine (Perry Creek) – Walter Energy Inc (Western Coal Corp)

• 1.8 Mt/y HCC product - target 1.9 Mt/y

• completed mining in Phase 3 - mining Phase 4A, 4B

• 9.4 Mt ROM reserves + 15.1 Mt resource (Meas.) >> 3 year mine life

EB expansion - start-up in 2016-17 at 2.0 Mt/y HCC

• 15.6 Mt ROM reserves >> 8 year mine life

Trend Mine - Anglo American plc (Peace River Coal Inc)

• 1.7 Mt/y HCC product - 2013 mining in Phases 1, 3, and 4

• 12.8 Mt ROM reserves + 27.7 Mt resource (M&I)

Roman Mtn expansion - start-up in 2015 at 1.0 Mt/y HCC

• $50M Phase-1 (2013) of $200M multi-year construction project

• combined Trend-Roman mine to produce 2.5 Mt/y HCC

• RM - 35.5 Mt ROM reserves + 4.2 Mt resource (M&I) >> 16 year mine life

Coal Exploration projects 1. Dunlevy - Jameson Resources Ltd (NWP Coal Canada)

2. Gething - CDN Kailuan Dehua Mines Co Ltd

3. Carbon Creek - Cardero Resources Corp

4. Suska - Glencore

- JX Nippon Oil & Energy

5. Sukunka - Glencore

- JX Nippon Oil & Energy

6. Bullmoose Creek - CDN Dehua Int’l Mines Group

- CDN Bullmoose Mines Co Ltd

7. Murray River - HD Mining Int’l Ltd

8. Quintette-Babcock - Teck Coal Ltd

9. Roman Mtn, Roman NW, Waterfall -Anglo American PLC (Peace River Coal Inc)

10. Wapiti River - CDN Dehua Int’l Mines Group Ltd

11. Huguenot - Colonial Coal Int’l Corp

12. Wapiti East (phosphate) – Fertoz Ltd

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If all proposed mines became operational:

$3950 M capex

3500 jobs

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Omineca Region (North-central)

• $102.5 M exploration expenditure 2013

• 22% of provincial total

• 83% from advanced stage projects

• 62% from Blackwater project (New Gold Inc)

• 7% increase in Grassroots/Early stage (16%)

• $419 M in mine construction at Mt. Milligan

$102.5 M (down 37% YOY)

Exploration Expenditure

$80,300 m (down 73% YOY)

Drilling

(Thompson Creek Metals Co Ltd)

• 3 projects in Environ Assessment

Terranes (east to west):

Blue - Ancestral North America

Green - Quesnel Terrane (island arc)

Orange - Cache Creek Terrane (oceanic)

Pale green - Stikine Terrane (island arc)

Starting from Peace River coalfield...

-Exploration and Mining in British Columbia 2011

Omineca Region

start

Carbonatite Belt (niobium) Kechika Trough (Zn-Pb-Ag SEDEX) Toodoggone District (epithermal Au-Ag and porphyry Cu-Au ) Quesnel Terrane (porphyry Cu-Au ) Cache Creek Terrane (Fe-Ni alloy) Endako Batholith (porphyry Mo ±Cu ) Nechako Plateau (epithermal Au-Ag)

Carbonatite-hosted Nb

• Aley: Taseko Mines Ltd

- 2nd largest niobium deposit in world

- 10,000 t/d open pit operation >> 20+ years

- annually producing 12 Mlbs niobium ($350-400M)

- engineering mine components, TSF, power line

- metallurgical test work = 35%>>50% Nb concentrate

- 2012 resource est: 285 Mt at 0.37% Nb2O5 (M&I)

- containing 739 Mkg Nb (~$40/kg)

- Nb in pyrochlore, columbite, fersmite

- used in high-strength, low alloy steels

Rocky Mountain carbonatite belt

Niobium ore – magnetite-apatite-baddelyite

Central Zone

apatite-baddelyite fluorescence

SEDEX (baritic Zn-Pb-Ag) Kechika Trough

• Akie: Canada Zinc Metals Corp

- combining VTEM response with GIS data compilation

- 2013: 9-hole drilling program - 4 target areas

- new discovery – Sitka showing - eastern SEDEX horizon

• Kechika Regional: (includes Pie, Mount Alcock)

- 2013: 2795 km VTEM on remaining 8 core properties

- Pie, Cirque East and Yuen properties optioned to Teck

Cross Section 2900 South Showing Mineral Facies

Canada Zinc Metals Corp

-Cardiac Creek - open at depth (>800 m), along strike (>1300 m)

- 12.7 Mt at 8.4% Zn, 1.7% Pb, 13.7 g/t Ag (Ind.)

- containing 2.4 Blbs Zn, 472 Mlbs Pb, 5.6 Moz Ag

• Cirque: Teck Resources Ltd, Korea Zinc

- last work in 1995 - Prefeasibility study

- 18.5 Mt at 8.1% Zn, 2.2% Pb (reserves)

- multi-year exploration program

- deep drill targets on North and South Cirque

- testing westward extension of minz at depth

- soil program extended to Fluke and Elf

- optioned adjoining CZM properties in Sept 2013

Zn-Pb-Ag ore from Cardiac Creek deposit - Akie

Deep drilling at South Cirque

Looking out over North Cirque

SEDEX (baritic Zn-Pb-Ag) Kechika Trough

Toodoggone District

• Kemess Underground: AuRico Gold Inc

- March 2013 - Feasibility study results:

- Reserves: 100.4 Mt at 0.28% Cu, 0.56 g/t Au, 2.0 g/t Ag (Prob.)

- 619.2 Mlbs Cu, 1.8 Moz Au, 6.6 Moz Ag contained

- 24,650 t/d block cave operation for 12 years

- higher grade portion of Kemess North deposit

- use KS pit, half of mill circuit, infrastructure (buildings, power)

- 5-year construction project - $502 M capex – 100-400 jobs

N S AuRico Gold Inc

Mine Evaluation and exploration

- 9-hole program

- follow up 2007 drilling

- testing fault displacement of mineralization

- Au/Cu ratio increases towards core zone?

• Kemess East KN-13-02

• Mt. Milligan Mine: Thompson Creek Metals Co Inc

Quesnel Trough

- private equity Royal Gold Inc – 52% stake

- $1.57 B mine construction project

- $419 M capex in 2013 - $50 M in 2014

- 60,000 t/d over 22 year mine life - 0.84 strip ratio

- Aug 2013 - phased start-up began

- Oct 2013 - first rail shipment to Vancouver (5 Kt)

- Q1 2014 - 3 shipments of approx 10 Kt (DMT) each

- state-of-the-art zero-discharge operation

- 3 x 4 km footprint

- largest SAG mill in North America and tallest oprimary crusher in Canada

- first new BC greenfields mine in 15 years!

- reserves of: 477.5 Mt at 0.20% Cu, 0.39 g/t Au

- containing: 5.95 Moz Au , 2.10 Blbs Cu (Dec 31, 2013)

- first 6 years annually: 89 Mlbs Cu, 262 Koz Au

Mine Construction

• Decar: First Point Minerals Corp (40%)

- Cliffs Natural Resources Inc (60%)

- Baptiste deposit extended 580 m to NW

- volume: 3000 m x 150-1080 m x 540 m deep

- Mar 2013 - positive PEA for 4-stage open-pit

- 114,000 t/d over +24 year mine life - low strip ratio 0.17

- Nickel production: 82.4 Mlbs/y in ferronickel concentrate

- awaruite (Ni2-3Fe) - conventional mag and gravity separation

Ni-Fe alloy Cache Creek terrane

First Point Minerals Corp

- 1159 Mt at 0.124% Ni (DTR) containing 3.17 Blbs (Ind.)

4 km

1 km

Mo porphyry

• Endako Mine: Thompson Creek Metals Co (75%)

Sojitz Corp (25%)

- mining stockpiles, historic dumps, and fresh ore

- Super Pit expansion project continuing

- roaster shut down for retrofitting - shipping con to PA

- 29.1% reduced cash cost of production ($10.93/lb) YOY

- produced 9.07 Mlbs moly oxide (46.5% increase YOY)

- 52,000 t/d mill (operating at 45-60 Kt/d in 2013)

- 2014: reserves revised to 65.8 Mt at 0.052% Mo (P&P)

- mine life reduced to 3-4 years at $10/lb moly price

Francois Lake Suite – Endako Batholith

- photo courtesy of Thompson Creek Metals Co Inc

N

• Blackwater: New Gold Inc

Epithermal Au-Ag

- 2013 - Feasibility Study (>20,000 m geotech)

- 2014 - advance project through permitting

- 344.4 Mt at 0.74 g/t Au, 5.5 g/t Ag (P&P)

- containing 8.17 Moz Au and 60.8 Moz Ag (P&P)

- LOM production: 7.0 Moz Au, 30 Moz Ag

- 60,000 t/d processing plant - 17 yr mine life

- $1865 M capex (Rainy River = $885 M)

W

Nechako Plateau

700 drill holes in 2012 (>247,000 m)

3.37 gt Au, 12.3 gt Ag - BW-917

E

New Gold Inc

2013 Regional Program - 14 target areas

- 7 targets tested (22,500 m) - 3 with Au-Ag intercepts

- 2014: <15,000 m drilling planned

New Gold Inc

- >4200 m drilling in 2013

- 20.3 Mt at 0.50 g/t Au and 22.4 g/t Ag (Ind)

- 320 Koz Au and 14.6 Moz Ag (Ind) - up 63% and 54%

Epithermal Au-Ag

• Capoose New Gold Inc

Nechako Plateau

• 3T’s: Independence Gold Corp

- 12-hole drilling program (3863 m)

- Ted-Mint: 3.19 g/t Au, 33.5 g/t Ag over 11.3 m

- Larry: 2.09 g/t Au, 5.0 g/t Ag over 1.0 m

- Tommy: 2.74 g/t Au, 45.7 g/t Ag over 6.7 m

- >12 qtz-cbt veins <900 m length, <20 m true width

- 5.45 Mt at 2.52 g/t Au, 71.5 g/t Ag (Inf.)

- seeking bedrock source of high-grade float

- Big Bear - Parlane Resources Corp - 0.26 g/t Au over 330.7 m

- Trout- Venerable Ventures Ltd - 0.33 g/t Au over 47.8 m

- Key- now New Gold Inc – 0.38 g/t Au over 13.7 m

- TREK – Geoscience BC – >20,000 km2 - $4.1 M project

• other projects:

3T’s - Ringer Zone boulder

View north across Nechako Plateau

3T’s - Tsacha Property

500 m

N

2014 Outlook

- Mine construction (Roman Mtn)

- Surface facility & bulk sample (Gething, Murray River)

-EA reviews (Carbon Creek, Gething, Echo Hill, Sukunka, Murray River)

Northeast region

Omineca region

- Commercial production - residence construction (Mt. Milligan)

- Super-pit expansion (Endako)

- Complete permitting (Blackwater)

- Feasibility studies (Aley, Decar)

- EA reviews (Blackwater, Giscome, Kemess UG)

- Drilling programs (3Ts, Fawnie regional, Kliyul, Kemess East, Akie, Cirque)

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Google Earth database

screenshot

Q’s? Thank you.

[email protected]

Mineral Production in BC

$8.0 B

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9Total Mineral Production value in BC

(metals, coal, industrial minerals)

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Exploration Expenditures (metal and coal)

$476 M 81% from Northern BC

(42% NW, 39% NC-NE)

Linear regression increasing $476 M/y since 2003

Coal (60%) Copper (25%)

Forecast 2013 production value by commodity