22nd May 2015

GOLD MINING: Arctic discount ‘no longer relevant’ – by Kip Keen (Mineweb.com – May 22, 2015)


Sabina Gold & Silver also fleshes out smaller mining project it plans to study further.

Bruce McLeod, Sabina Gold & Silver President and CEO, was frank about the prospects of funding a $600 million gold project in Canada’s remote North. He said financing it would be “challenging and dilutive” during a conference call held Thursday to outline the basics of a new feasibility study of the Back River gold project in Nunavut, Canada.

It’s a challenge that is especially true for Arctic mine developers. Indeed McLeod spoke of an Arctic discount owing to other mines or projects in the north that did not, at least initially, live up to expectations.

“The Meadowbank project had a difficult start,” McLeod noted. “Newmont took a significant write down on Hope Bay. And these last two events led to what we believe is a significant arctic discount.”

If that Arctic discount is something of a reality, McLeod acknowledged, it’s unwarranted, he argued. “We also believe these events are no longer relevant,” he said. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles | 0 Comments

21st May 2015

A Mining Investor’s Guide to Toll Milling in Peru – by Jamie Keech (CEO.ca – May 21, 2015)


In the late 1990s a small Canadian junior mining company bought an exploration property in southern Peru with a plan to capitalize on the newly opened market after two decades of internal conflict and civil war.

Just 100 km north of the Atacama Desert, the driest place on earth, the property consisted of hard earthen mountains, trickling riverbeds and the occasional cactus. Nestled in one rocky corner was a small, half-built gold processing plant. The mill came with the exploration property, almost as an afterthought, a redundancy that was easier to give away than tear down.

The junior was headed by Jean Martineau, a French-Canadian pulp and paper mill operator turned broker turned CEO.

Jean’s days as a broker had left him with one overriding view of the junior mining sector: it ran on a terrible business model – constantly raising money, diluting value, and rarely benefitting investors.

An experienced operator, Martineau decided the best way to fund exploration was to generate cash by getting the small mill on site up and running, purchasing ore from nearby small-scale miners as feed and processing it at a profit. Read the rest of this entry »

posted in Canada Mining, Latin America Mining, Northern Ontario/Canada Regional Media | 0 Comments

21st May 2015

Western Nunavut miner calls feasibility study “very compelling” (Nunatsiaq News – May 21, 2015)


But Sabina Gold and Silver Corp. will look at trimming project costs

“Very compelling” — that’s how Sabina Gold and Silver Corp. describes the results of a new feasibility study for its Back River gold project in western Nunavut.

Bruce McLeod, Sabina’s president and CEO, said in a May 20 news release that the feasibility study “demonstrates the potential of Back River to be a significant Canadian gold producer.” But getting the mine up and running will take deep pockets.

The feasibility study calculated the initial capital cost of the Sabina mine at $695 million, with another $539 million needed to sustain operations.

On the other hand, over the mine’s 10-year proposed lifespan, its gross revenues could reach $4.5 billion. However, Sabina said it recognized that “financing such a project in current market conditions would be challenging.”

So Sabina may look for a “more easily financeable project in the current capital markets environment,” the release said. Read the rest of this entry »

posted in Canada Mining, Gold and Silver, Northern Ontario/Canada Regional Media | 0 Comments

21st May 2015

Alcan Aluminium Limited History (1902 – 2000)

For a large selection of corporate histories click: International Directory of Company Histories

Strength, growth and value are at the core of Alcan’s strategic intent. We do more than make and sell aluminum–we build alliances with all our stakeholders. We also take pride in developing and delivering value-added differentiated aluminum products making Alcan the partner of choice. Strength reflects Alcan’s strong financial state, its healthy debt-to-equity ratio and improved profitability.

It also signifies the quality and dedication of Alcan’s employees. Finally, strength together with light weight, thermal and electrical conductivity, barrier qualities, infinite recyclability and many other characteristics make aluminum … the material of choice.

Growth is working with all our stakeholders to develop and deliver value-added, differentiated aluminum products, bringing increased value to our customers. It means continuous improvement in everything we do–earnings, technology, employee development, safety, and environmental stewardship. Growth is about looking to a new future as we enter the new millennium–fully optimizing our existing assets and aggressively pursuing opportunities to grow shareholder value.

Value is the reason we’re here. It is an ongoing commitment to our shareholders, to our customers, to and by our employees to create value in everything we do. It also symbolizes Alcan’s values–our ethics, our conduct, our reputation. Read the rest of this entry »

posted in Aluminium, Canada Mining, Mining Company History, Quebec Mining | 0 Comments

20th May 2015

Norman B. Keevil: A lifetime of achievement at Teck – by Anthony Vaccaro (Northern Miner – May 19, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

In 1979 The Northern Miner named Norman B. Keevil its Mining Man of the Year, citing the impressive string of mine constructions he presided over in the 1970s. Since winning that award Dr. Keevil went on to ensure Teck was part of some of the biggest mining projects over the next 30 years, such as Hemlo, Voisey’s Bay and Antamina.

At the same time Dr. Keevil and his team were building Teck into one of the world’s largest producers of metallurgical coal. For this unparalleled track record and for his unchallenged reputation for honesty, fair dealing and supportiveness, on the occasion of its 100th anniversary, the Miner can find no person more deserving than Dr. Norman B. Keevil to be the recipient of its Lifetime Achievement Award.

In 1939, scientists Albert Einstein and Leo Szilard sent a letter to U.S. President Franklin Roosevelt after three German scientists in Berlin split the atom.

The experiment put the Nazis on a path to building the atomic bomb, and knowing this, Einstein and Szilard compelled Roosevelt to counterpunch — with the Manhattan Project.

The point man for the project was to be Harold Urey, the leading scientist on isotope separation. One of Urey’s first tasks was to assemble a team of leading scientists to help beat the Germans in the race for the atomic bomb. Read the rest of this entry »

posted in British Columbia Mining, Canada Mining, Canadian Media Resource Articles, Northern Miner - Mining Person of the Year Award | 0 Comments

20th May 2015

Op-ed: ‘Zombie’ Canadian mining company, Infinito Gold, stalks Costa Rica – by Rick Arnold (Tico Times – May 20, 2015)


Rick Arnold is a retired Canadian social activist who has lived and worked in Costa Rica.

Most of us are familiar with zombies featured in scary B movies, otherwise known as the living dead. Now a recent study by Tony Simon, co-founder of the Canadian entity Venture Capital Markets Association, has found that there are some 588 junior resource firms with negative working capital (more dead than alive) listed on the Toronto Stock Exchange Venture Exchange (TSXV).

These include Infinito Gold, the Calgary-based mining company that is still fighting over its defunct open-pit gold mine project in Costa Rica.

This appears to be contrary to the Venture Exchange’s continued listing requirements, which stipulate that firms have to be able to show at least 50,000 Canadian dollars ($41,000) in working capital (more alive than dead). Mr. Simon uses the term “zombie company” for corporations bleeding red ink and suggests that the TSXV follow its own rules and de-list them right away (and protect the small investor).

Mr. Simon has Infinito Gold sitting at #587 on his “zombie” list — sporting the second greatest negative working capital, a whopping negative $127 million. Read the rest of this entry »

posted in Canada Mining, International Media Resource Articles, Latin America Mining, Mining Conflict | 0 Comments

19th May 2015

Editorial: Renewed focus on mine safety in Ontario (Northern Miner – May 13, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

A newly released coroner jury’s verdict and recommendations stemming from the two-week inquest into the deaths of two miners at Vale’s underground Stobie nickel mine in Sudbury, Ont., in 2011 has met with wide approval from all players in the tragedy.

Jason Chenier, 35, and Jordan Fram, 26, were killed on June 8, 2011, when a run of muck overcame them while they worked at the 3,000-foot level near the No. 7 ore pass. They were moving muck through a transfer gate when a sudden release of 350 tons of sandy muck and water broke through the gate. Both miners died from smothering and compressional asphyxia, and Chenier also suffered blunt-force injuries.

It turns out a crash gate into the area where the two were working had been left open, so the muck, which had been stuck in the ore pass, came loose and flooded the area.

After pleading guilty to three of six charges in 2013, Vale received the largest Occupational Health & Safety (OH&S) fine ever issued in Ontario for the violations. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Mining Labour Issues and History - Sudbury and Global, Mining Tragedies, Ontario Mining, Vale | 0 Comments

15th May 2015

Osisko wades into iron ore amid ‘perfect’ market for royalty companies – by Damon van der Linde (Financial Post – May 15, 2015)

The National Post is Canada’s second largest national paper.

MONTREAL – Osisko Gold Royalties Ltd. says it has confidence in its recent acquisition of a stake in Labrador Iron Ore Royalty Corp., even if its shareholders don’t quite know what to make of the investment at a time when the metal’s price languishes near half its value of a year ago.

“We understand that there are cycles and ‘buy low, sell high’ is easy to say but hard to do,” said Osisko CEO Sean Roosen. “In this case and time, when everyone is running for cover, that’s when we want to wade in. I think we bought it right.”

Osisko announced Friday in its quarterly earnings release that it has amassed a 9.75 per cent interest in Labrador Iron Ore Royalty since the start of the year.

“The way we look at this, this gives us a relatively low-risk access to short-term dividend cash flow and that helps us with our numbers,” said Roosen.

Osisko is a mining royalty company, meaning it has agreements giving it the right to a share of income from mines operated by other companies. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Gold and Silver, Iron Ore, Labrador Iron Trough, Quebec Mining | 0 Comments

15th May 2015

Close the gap between Canada and its aboriginal people: AFN chief – by Kim MacKrael (Globe and Mail – May 14, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

OTTAWA — The leader of the country’s largest aboriginal group is calling on Ottawa to close the gap between Canada and its aboriginal people as the UN prepares to adopt a new set of sustainable development goals.

Perry Bellegarde said in an interview Wednesday that the federal government should invest more in education, training and housing to bring conditions for aboriginal Canadians in line with the rest of the country. The National Chief of the Assembly of First Nations said he plans to bring that message Thursday to a gathering of international development experts and non-governmental organizations in Gatineau, Que.

Mr. Bellegarde’s comments come as the United Nations prepares to adopt a new set of global targets to replace eight millennium development goals when they expire at the end of this year. The new objectives will cover 17 target areas, ranging from ending poverty to combatting climate change and reducing inequality. Unlike the previous goals, the new targets have been explicitly developed to be universally applicable, which means wealthy countries like Canada will be expected to work toward achieving them alongside lower-income countries. Read the rest of this entry »

posted in Aboriginal and Inuit Mining, Aboriginal and Inuit Non-Mining Issues, Canada Mining, Canadian Media Resource Articles | 0 Comments

15th May 2015

BCSC clears short seller Jon Carnes of fraud in Silvercorp case – by Peter Koven (National Post – May 15, 2015)

The National Post is Canada’s second largest national paper.

Short seller Jon Carnes has been cleared of fraud allegations by a British Columbia Securities Commission panel, which found his attacks on Silvercorp Metals Inc. were not prohibited. The panel did, however, raise serious concerns with his conduct.

“While we may find Carnes’ conduct unsavory, we do not find it was clearly abusive to the capital markets,” the panel said in its decision. The panel added that it is “not our role to sanction conduct we find morally unsupportable.”

In an interview Thursday evening, Carnes said he was “relieved” by the decision. “That’s always the right word to use in a situation like this,” he said.

He added that he still believes Silvercorp is the party the BCSC should have been targeting, and he thinks the commission should be held “accountable” for its allegations against him. He also disagreed with assertions that there was anything “unsavory” about his actions.

Carnes, a hedge fund manager better known by the pseudonym “Alfred Little,” is one of many short sellers that accused Chinese companies of fraud a few years ago and helped to get them de-listed from North American exchanges. Read the rest of this entry »

posted in Asia Mining, Canada Mining, Canadian Media Resource Articles, Gold and Silver | 0 Comments

15th May 2015

CSIS warns of ‘extremist’ opposition to oil and gas sector – by Alex Boutilier (Toronto Star – May 15, 2015)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

An internal threat overview by CSIS warns the federal government of “extremists” that have “converged” to oppose natural resource development.

OTTAWA—Canada’s spies are warning the federal government about an “extremist” threat to natural resource development, internal documents show.

“Extremists” have united both in person and online in their opposition to Canadian natural resource projects, according to a September 2014 “threat overview” prepared by CSIS for Public Safety Minister Steven Blaney.

The heavily censored document does not outline specific threats or projects, nor does it single out particular groups. But it lists the threat between sections on terrorist travellers and a growing anti-Muslim movement advocating violence in Canada.

The CSIS report, obtained under Access to Information law, mirrors strong language in a January 2014 report from the RCMP warning of an “anti-Canadian petroleum movement.” Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Oil and Gas Sector-Politics and Image | 0 Comments

13th May 2015

Canadian mining company spied on opponents and activists in Brazil – by Heriberto Araújo and Anna Veciana (The Guardian – May 13, 2015)


Mining company Kinross’s ambitions to create most productive gold mine in Brazil plagued by health risks and threats to activists and opponents

Paracatu, Brazil – Despite her advanced age, Juliana Morais da Costa still retains enough strength in her hands to hold the heavy bateia. “I began to pan gold when I was five. We started at 5am until 4pm. It was tough work, but I did it because it was the only way to be economically independent,” remembers Morais, 86.

Her home city of Paracatu is the epicentre of Brazil’s mining production, in the north of the state of Minas Gerais, which generates almost one-third of Brazil’s total mining production.

The exploitation of gold started in Paracatu as early as 1722. But the days of the garimpeiros, or gold hunters, are long gone. Since the 1990s the hunt has moved from the river banks to underground deposits. Dynamite, excavators and chemicals replaced the garimpeiros, who were pushed out from a business that had sustained hundreds of families.

In 2005, Canadian company Kinross – which is listed in the New York Stock Exchange and owns gold mines in Chile, United States, Russia and Ghana, among other countries – took over the mining concession in Paracatu. Read the rest of this entry »

posted in Canada Mining, Gold and Silver, International Media Resource Articles, Latin America Mining | 0 Comments

12th May 2015

Nunavut review board decision on uranium mine “not what we expected,” Areva says – by Sarah Rogers (Nunatsiaq News – May 11, 2015)


But Areva will go on with summer exploration work

Areva Resources Canada Inc. says it is “disappointed” with the Nunavut Impact Review Board’s recommendation that the mining company’s uranium project not go ahead.

After almost six years of environmental assessment, the NIRB recommended May 8 that Areva Canada’s proposed Kiggavik mine, in exploration outside of Baker Lake, “should not proceed at this time.” The NIRB decided that, because Areva cannot provided a definite schedule for the project’s launch, the board cannot do an accurate assessment of the project’s environmental and social impacts.

But Barry McCallum, manager of Nunavut affairs for Areva, said the company submitted what it believed was a “sound” final environmental impact statement. “It’s not what we expected,” he said. “We were transparent in our plans to develop.”

The poor market conditions under which AREVA was developing its uranium project meant the mine’s timeline was never certain, although McCallum assured the project is part of the company’s plans. Read the rest of this entry »

posted in Aboriginal and Inuit Mining, Canada Mining, Northern Ontario/Canada Regional Media, Uranium | 0 Comments

12th May 2015

Mining heavyweights seek to build mid-tier gold producer in $190M Newmarket-Crocodile merger – by Peter Koven (National Post – May 12, 2015)

The National Post is Canada’s second largest national paper.

TORONTO – Several mining industry heavyweights have teamed up in a deal they hope will be the first of many as they seek to build a new mid-tier gold producer.

Newmarket Gold Inc. and Crocodile Gold Corp. announced a friendly $190 million merger on Monday that will give Newmarket control over most of the combined board and management team.

Crocodile is an established gold producer in Australia, while Newmarket is little more than a shell company at present. However, Newmarket boasts some very big names on its board, including entrepreneurs Lukas Lundin, Randall Oliphant (of New Gold Inc.) and Raymond Threlkeld (of Rainy River Resources Ltd.). The company’s plan is to use the Crocodile mines as a platform to buy more high-quality gold assets under the “Newmarket” name.

“There is lots of competition for assets, but that’s why we put this team together,” Newmarket chief executive Doug Forster said in an interview. Read the rest of this entry »

posted in Australia Mining, Canada Mining, Canadian Media Resource Articles, Gold and Silver | 0 Comments

11th May 2015

Transparency act could muddy things with FNs, assoc. warns – by Jonathan Migneault (Sudbury Northern Life – May 11, 2015)


Aimed at corruption, Mining Assoc. prez says act could be used against First Nations

A new transparency act for the mining industry may go too far when it comes to First Nations, says the Mining Association of Canada.

The Extractive Sector Transparency Measures Act (ESTMA), which received royal assent in December 2014, and is expected to come into effect in June, requires mining companies to publicly disclose payments greater than $100,000 they make to foreign and domestic governments.

“It’s an anti-corruption measure,” said Pierre Gratton, the president and CEO of the Mining Association of Canada. “By having companies disclose what they pay, then citizens of those countries can ask questions about what their governments might be doing with that money.”

The act’s purpose, as it appears in the document itself, is to “implement Canada’s international commitments to participate in the fight against corruption through the implementation of measures applicable to the extractive sector, including measures that enhance transparency and measures that impose reporting obligations with respect to payments made by entities.” Read the rest of this entry »

posted in Aboriginal and Inuit Mining, Canada Mining, Northern Ontario/Canada Regional Media | 0 Comments

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