Central Canada s Mining Hotspot: Northwestern Ontario

Transcription

1 Central Canada s Mining Hotspot: Northwestern Ontario

2 Agenda 1. Thunder Bay, Northwestern Ontario and the Mineral Sector 2. Scope of Ring of Fire Opportunity 3. Access Challenges in Northwestern Ontario 4. Historical Mineral Production in Northern Ontario 5. Ring of Fire Discoveries 6. Infrastructure Components of Ring of Fire 7. Current Status of Ring of Fire Projects 8. First Nations: Planning and Consultation Considerations 9. Forecast 10. Questions

3 Thunder Bay, Northwestern Ontario (NWO) and the Mineral Sector

4 Thunder Bay, NWO and the Mineral Sector Exploration and mining service centre: 21 exploration companies 60+ service and supply companies. Mine production history back to 1870 s. Recent evolution 1980 s Hemlo, LDI/Musselwhite 1990 s. Metal prices/discovery rates, 2003 to now put focus on Thunder Bay and NWO.

5 Thunder Bay, NWO and the Mineral Sector NWO home to 3 of the 4 largest gold mines in Canada. NWO produced 1.2 M oz of gold in North America s only primary palladium mine is Lac des Iles Mine, located north of Thunder Bay. Palladium used in catalytic converters. Mineral exploration will total $475 million for NWO (forecast). Mine production in Ontario (metallic, non-metallic, aggregate) will total $10 billion (2011 forecast) which equates to 23,000 direct jobs.

6 PC GOLD INC. TREASURY GOLD MAGMA METALS

7 Red Lake Gold Mine Goldcorp Inc. #3 Shaft

8 Musselwhite Mine Goldcorp Inc.

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10 Value of Mineral Production in Canada Total value of metallic minerals produced in Canada in 2009: $ billion. Total value of non-metallic minerals (diamonds, sand, gravel, cement, salt) produced: $ billion. Total mineral value: $26.6 billion. Total GDP contribution: $46 billion.

11 1. Human Resources Challenges Type Number of Jobs Management 1154 Engineering 934 Maintenance/Mechanical 754 Trade & Skilled 422 Mining Production 380 Geology & Geosciences 249 Technicians 197 Marketing & Commercial 262 Environmental 108 Executive 51 Mill & Metallurgy 71 Construction mining-related positions available in Canada as of October 27, 2011.

12 Challenges 2. Exploration and service and supply companies outgrowing their footprint. 3. Ontario has a narrow window of opportunity, both to take advantage of the vast new markets for our commodities, but also to redefine our competitive position in the new economic and industrial landscape that is being formed. Permitting and development timelines therefore have to be compressed on the large number of advanced exploration programs on the cusp of production. (Chris Hodgson, President, Ontario Mining Association). 4. Electricity rates for producers.

13 Scope of Ring of Fire Opportunity

14 Scope of Ring of Fire Opportunity Black Thor and 4 adjacent chromite deposits make up largest deposit of chromite in North America with potential production life of 100 years and gross value of $30 billion+. Chromite mined to produce ferrochrome for stainless steel industry. One of the most significant mineral developments in Central Canada in over a century. Historic opportunity to plan for economic development: 1. Strategic infrastructure 2. Partnerships and First Nations engagement 3. Value-added manufacturing 4. Land use planning 5. Training/employment.

15 Access Challenges in Northwestern Ontario

16 Railways and Major Roads in Central Canada One of the mining and exploration sector s most significant challenge is access. Aircraft (fixed wing and helicopter) and fuel, are huge budget items to the mineral sector.

17 Historical Mineral Production in Northern Ontario

18 Historical Mineral Production in Northern Ontario

19 Ring of Fire Discoveries

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21 Ring of Fire Discoveries $155 M spent on exploration in Ring of Fire in last 5 years. 35 exploration companies active, lead by Cliffs Natural Resources Inc square kilometres staked one of largest staking rushes in Canadian history.

22 Largest and first deposit to be developed by open pit methods 69.5 mt and grading 31.9% Cr2O3. Ring of Fire Discoveries

23 Ring of Fire Discoveries Wet, remote, no infrastructure. All activity is supported fixed wing or helicopter.

24 Ring of Fire Discoveries Importance of Chromite Oxide mineral Cr2O3. Strategic metal essential for industry and national security but North America has little/no supply. Used as an alloy to produce stainless steel (there is no substitute).

25 Infrastructure Components of Ring of Fire

26 Infrastructure Components of Ring of Fire Key Components Open pit mine and concentrator on site. Transportation, corridor, rail and all weather roads being assessed. Ferrochrome Processing Facility (FPF) at a location near north, requiring 300MW electricity. Thunder Bay generating station is 306MW facility that is back-up facility only to OPG. May be ideal as dedicated power supply to Cliffs and a FPF.

27 Infrastructure Components of Ring of Fire Key Considerations Transportation requirements include rail/road options. I.e. North/South Corridor 340 km. Electrical transmission mines and remote communities. Enhancing community infrastructure, water treatment, housing, airports.

28 Current Status of Ring of Fire Projects

29 Current Status of Ring of Fire Projects Cliffs Natural Resources Inc. commenced environmental assessment on Black Thor. Pre-feasibility study, environmental studies, bulk sampling/metallurgical testing. Noront Resources Ltd. Completed metallurgical testing at Eagles Nest drill results AT12 and assessment of Blackbird deposit Baosteel Corp. China now strategic investor.

30 Current Status of Ring of Fire Projects KWG Resources continued geotechnical assessment of N-S rail corridor. KWG filed application with PPP Canada to assist in funding. Total railway cost $1.984 Billion. Applied for licence to construct and operate short line railroad.

31 First Nations: Planning and Consultation Considerations

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33 Forecast

34 Employment Forecasts construction jobs direct operating jobs indirect/induced.

35 Comparative Construction Costs Ring of Fire (Forecast) Rest of Canada $ $4.6 Billion. Mine, railroad, power, road, mill, ferrochrome processor. $200 Million Musselwhite Mine, ON. $750 million Ekati Mine, NWT. $1 Billion Victor Mine, ON. $1.3 Billion Detour Gold, ON (forecast). $1.3 Billion Diavik Mine, NWT.

36 Timelines Environmental Assessment and feasibility studies Production decision Construction Production

37 Based on the history of other world class mineral deposit developments, only 20% of the wealth has been found to date in the Ring of Fire. - Dr. Jim Franklin

38 Questions?

39 For more information please contact: John Mason, Project Manager Mining Services, Thunder Bay Community Economic Development Commission (CEDC) P.O. Box 800 Thunder Bay, Ontario CANADA P7C 5K4 General Office: Toll Free: Fax: Website: